Something everyone is thinking about these days is saving money, especially on their auto insurance policy. Since you’re required to have auto insurance in most states, it’s really up to you to figure out how to find the best policy that saves you the most money when you buy your insurance. It’s important that you keep your insurance company up to date on life-changing events, because those events may affect your insurance rates and even qualify you for discounts. For example, getting married, having a child, becoming a senior citizen, getting a new job, and improving your credit score may all affect your auto insurance rates.
Discounts are helpful, but the best overall way to help your insurance rates stay low is to drive slowly and safely. It might be wise to learn new driving skills if you are habitually a speedy driver that likes to get places as fast as possible, or an impatient driver that often uses unsafe driving techniques. You may be able to get an excellent discount rate on a policy even when you have a ticket, but it will still cost more than if you had never gotten the ticket in the first place.
It’s tempting to think that a radar detector or other device will assist you in evading speeding tickets, but they generally don’t. You might not remember to use your detector or device, and law enforcement often can find ways around such gimmicks. Remember, your insurance rates can go up with only one speeding ticket. The only sure way keep your insurance rates down is to not speed and to watch out for other drivers that may be acting in an unsafe manner.
Shopping for car insurance quotes can be a bit confusing on its own, but once you see how wide the price range is for similar policies it gets even more confusing. How can insurance companies charge different rates for policies that are virtually the same? If there is no difference in the way each company looks at data about accidents, why is that same data treated differently? The insurance companies have their own methods of determining the weight of each risk factor, so the rates of similar policies from different companies can vary. This is why one company’s policy can be very expensive while another company’s can be more affordable.
The best way to get a car insurance quote without actually applying for insurance with several different companies is to get quotes online at websites like CarInsurance.com. Along with finding quotes online, you can actually purchase insurance online, too, with an independent insurance agent. Do most of the work online proves to be a more efficient use of time because you only enter your information one time with one broker or one agent. The methods that each insurance company uses to measure risk will become more obvious to you once you begin searching for policies. You may come across companies that offer discounts for buying multiple policies instead of just one because their goal is to have a few customers with several policies. However, an agent who is associated with many companies knows better the demographics that are weighed in determining policy rates. Websites like CarInsurance.com provide this data to visitors in the CarInsurance.com Premium Index.
Make the most of your time, energy and money by saving it by using the internet to search for vehicle insurance quotes. You can get several quotes and one time and compare them all in one sitting. Once you find one that suits you, you can purchase it online and print you proof of insurance straight from your computer. The situation could not be any more convenient.
Here is a great Google Car Insurance Knol that has more information about why different companies charge different rates.
No insurance agent wants his/her client to begin looking elsewhere for better deals and discounts with other companies. When you start looking at policies with other companies, the agent risks losing your business. However, if you start by asking your insurance agent about discounts that you possibly qualify for, you could end up with a much better deal than you originally bargained for. Ask your agent about your policy and the rates associated with it. Once you ask, your agent will be more likely to go to ends to meet your needs and requests to keep you as a client because you have given him or her the extra push.
Once you ask your agent about discounts and alternate policies, allow a few days or maybe even a week for an answer for your inquiries. This keeps the agent from being afraid of losing your business. Often, this is enough to get overall better service from your agent. Allow him or her to shop around for you and present you with any findings. With any luck, they did find something that you approve of and he/he retains your business. However, if the results are not what you want and you find better information with your own efforts, then do what is best for you. Pick the policy that is best suited to your needs and provides a little less strain on your financial health.
The advent of the Internet has allowed consumers to bypass the time consuming task of calling several insurance companies to get quotes. Instead of hours on the phone, you can comparison shop in a few minutes the various rates and coverage offered by different companies. There is no set time frame for doing this, and it is wise to do it every so often, maybe every few months, to look around and see if you can find a better deal. When you do look into different insurers, do not worry about the company affecting your credit by checking your score. They do not do an in-depth analysis, so it won’t affect your score adversely.
The reason that the company checks into your credit score is to assess with the Department of Motor Vehicles and with the various credit reporting agencies. This is to see if late payments, a wreck or even a speeding ticket is on file that would affect the rate you pay each month. If you have something aversive on your driving record, it takes only a period of five years for it to be cleared off for many of the minor violations. If you have had credit problems in the past, and you have been able to bring it up by paying off debt, your insurer may be unaware of your new score. If you check around on the market and comparison shop on quotes, you will probably be able to locate a better insurance rate.
Another area of concern for many insurers is when they see that a driver has a lapse, or a period of time when they did not carry insurance. Your insurance background is a judgement marker when a company decides your rate. The best avenue to take if you have been without insurance for a time, but have renewed with the same company is to keep with them. Do this for a good length of time, and this will improve your history when viewed by another insurer. If you are able to stay with a company for a long time, you may also get a break on your rate for being a loyal customer.
If your family only owns one car, it is not uncommon to allow worries about your insurance rates to effect whether or not you decide to buy another one. Thankfully, this should not be a cause for alarm. Buying a second car won’t double your premiums. In fact, you can actually save yourself some money.
The discount that you receive when you add one or more cars to your auto insurance plan can be very extensive, and in many cases if you add another car to your plan with nothing other than liability coverage, you might actually see your monthly insurance payments go down rather than up. Believe it or not, adding another car to your insurance plan is actually one of the easiest ways to save money on your auto insurance. Still, there are a number of things that you should consider before you decide whether or not to get a second car.
First of all, adding a second car to your plan with full coverage, as opposed to liability coverage, will not cause your insurance rates to go down. If, on the other hand, you put the second car on liability coverage only, your total payment may actually go down. This means that you will actually pay less each month for insurance if there are two cars on your plan than if there is only one.
In order to make sure that you get the best rate possible, you need to make sure that the car you purchase has a high safety rating. A sports car will not give you the insurance reduction you are looking for. If you are buying the new car so that your teenager will have his or her own car, make sure that they are driving the car with liability coverage, not the one with full coverage. This will keep your payments as low as possible.
You can only place a car under liability coverage if you can buy it outright. If you are making monthly payments through an auto finance company or a bank, you will not be able to put the car on liability insurance. Finance companies require you to purchase more coverage. If you do buy a car outright, this means that you will save money because you will pay less for insurance, and less for the car itself.
Anyone looking to save money on car insurance will need to keep their eyes open for the best discounts, different coverage types, and even car makes/models to ensure that they are getting the best possible deal on auto insurance. It is possible to scour local insurers and the Internet for the best discount, but the real deal might actually be found in a little secret that auto insurers hide from policyholders without a keen eye: there is often a hidden fee being assessed each time policyholders pay their auto insurance premiums.
Here’s what happens: Many insurers actually charge customers to make each and every payment. Some charge $7 or more per payment! Think about it this way: if a customer was presented with monthly, quarterly, semi-annually, and annual payment options, they could save $56 a year by opting for quarterly payments, $70 by opting to pay their auto insurance premium twice annually, and $77 if an entire year’s payments were made up front. These savings are above and beyond almost any other form of savings, and can be quite substantial. After all, who would refuse the additional savings of up to $77 per year above and beyond their best possible deal?
Some insurers also offer discounts above and beyond this per-transaction fee discount to people willing to pay their auto insurance premiums in advance. The reasoning behind this additional discount is fairly simple: it reduces the overall risk of not being paid. Simply put, insurers need to pay their own bills on time and have to rely on policyholders sending in timely premiums. A certain percent of premiums arrive late or do not arrive at all, and that necessitates an accounts receivable department as well as the loss that the insurer takes if they pass an account on to collections. All of this risk can be mitigated by accepting larger payments that cover greater blocks of time, and that allows the insurer to feel more comfortable offering a lower rate. After all, a consumer with money in the bank is likely to prove far more responsible than a consumer that is barely making ends meet and living paycheck to paycheck.
Consumers that do find it difficult to get enough money together for a quarterly or even semi-annual payment should try to find creative ways to use funds. For example, a tax return could go towards paying bills that could be paid with paychecks at the same price, or it could go towards getting a substantial discount on auto insurance premiums.
There are several ways to reduce the cost of your auto insurance; however, the majority of companies that sell the insurance will not inform you about them. The best way of cutting down on the amount you are spending on it is to adjust your deductible. Not too many people are aware of this option.
You can realize a substantial decrease in your payments whenever you raise your deductible amounts. It is important to point out that the Collision and Comprehensive sections of an insurance policy each have a distinct level for the deductible. Make an appointment with your agent or simply call him/her to find out exactly what is covered under each of these sections of your policy. After you find that out, then you can decide which of the deductibles you want to raise in order to achieve great savings on this insurance.
Upon finding this information out, the next thing to do is to compare the current policy that you have to a new policy with the changes you require. Have them both in front of you and carefully go over them and see just how much of a difference in price the changes are going to make. Take into consideration what the new price is alongside how much your deductible will be going up to.
Something that numerous drivers will do to give themselves peace of mind and eliminate stressful worrying is to have a special account set up containing the amount of their deductible so that they know they have the money if needed. As often as they are able to, they keep putting money into this account. By knowing that the money is there, they can then periodically continue to raise the amounts of their deductibles and receive lower prices on their auto insurance.
Car insurance seems so easy to buy on TV. Commercials portray it as a simple process with very little involved other than pointing and clicking. If you take a few minutes to prepare in advance, it really might be that easy. Follow these steps to make sure you’re not spending more effort than you have to in order get online insurance quotes.
•It’s important to have all of your paperwork before you begin to browse. It’s easier to find what you’re looking for if you have all of the information you need beforehand. It helps things move along much faster.
•It’s helpful to not get sidetracked. Set aside a couple of hours to pay attention to what each company wants. Just because several companies are asking the same questions doesn’t mean that every company will. It’s important to be on your toes to notice any changes that might come along.
•Try to reduce the amount of noise in your immediate environment. Kids and pets often make a lot of noise, but you may have to tune it out briefly in order to be able to concentrate on searching. If you have very young children, try to hire a babysitter or send them to a friend’s house so that you can focus on finding quotes.
•Think about what you really want in an insurance policy and try to prioritize. For example, if the rates and service for a particular company are good, but they do not offer something extra such as roadside assistance, it might be best to rethink if you really need it. It might be possible that you already have roadside assistance through another organization, such as AAA or your cellular phone company. It’s important to not pass up a good rate because policy you may want to buy is lacking something very minor.
It is a common practice to shop around and compare prices before buying anything that significantly effects your financial situation. The same ought to go for anybody deciding who they would like to buy their car insurance from. Unfortunately, car insurance companies intentionally make it difficult to compare plans between different providers. There is no universal, tiered grouping of insurance plans. One car insurance company’s basic plan is different from another’s.
In order to make sure that they are getting the best deal that they can, people shopping around for car insurance need to be sure that the plans that they are comparing are offering the same coverage. This can be a very confusing process, as the wording of the plans is often intentionally wordy, full of jargon, and difficult to understand. Fortunately, their are insurance brokers who can be found just about anywhere, and they can assist you in finding the best deal available for your needs. They do this by breaking down the coverage offered by all of the various companies, interpreting the jargon provided by the insurance providers and giving you the plain English version.
Always be sure that the options you are comparing are the same; don’t compare apples and oranges. You should start by making sure you know what kind of coverage you really need for your specific vehicle. If you are still making payments on the car, the finance company will typically require you to buy more expensive car insurance that offers more coverage than is required by law. Make sure that your plan covers at least these basic requirements. Beyond that, you should think about how much you will be able to pay in the event of an accident. If your plan doesn’t cover everything, you should make sure that you will have enough money in the bank to pay for the rest. Once you have decided how much coverage you want, just make sure that the plans you are comparing are offering that level of coverage.
Some people have anxieties about purchasing anything using the internet, and when it is something as financially important as car insurance, the fear can hit them twice as hard. There are two common worries that people have about online auto insurance. The first is the concern about whether or not the rates shown online are trustworthy. The second common fear is that online car insurance companies are incapable of understanding people’s unique situations and dealing with them on a case by case basis.
Myth #1: Online Auto Insurance Rates are Less Accurate:
This is not true. The fact of the matter is, even if you visit a car insurance company and speak with somebody in the flesh, they will still determine your insurance rates using a computer system. Your insurance agent will use a computer in order to find out how much you will be paying for premiums. Online insurance companies are doing the same thing they always have been. The algorithm that they use to asses your risk and determine what rate they should charge you in order to ensure a profit is the same algorithm they have always used. The only thing that the online insurance companies are doing differently is cutting the agent out of the equation. Your rate is determined using the exact same mathematical formula that an agent would use. In some cases this means that you will actually be paying less, because the insurance company doesn’t need to pay an agent.
Myth #2: Online Car Insurance Companies are Inflexible:
Drivers often have special situations that can effect their needs. When you sign up for auto insurance online, you will be asked a series of questions. In most cases, at least one of the questions will be relevant to your circumstances. If the questionnaire does not address your specific issue, online car insurance companies still have call centers. You can contact them and speak directly with another human being about your concerns. They are trained to handle your situation intelligently and guide you through the process of how to go about resolving it.