Monthly Archives: July 2016

How to Lower Your Auto Insurance

Car insurance is an expensive business but one that cannot be ignored if you are a car owner. To drive without your vehicle being insured is a crime in almost all states and provinces in North America where the guilty party faces serious penalties and may also lose his or her driving privileges. Nevertheless, it is possible for one to reduce the cost of car insurance by carefully selecting only options that are necessary.

If you happen to drive an older inexpensive car or a car with high mileage, then you may not want to go for the full coverage. Full coverage covers the cost of damage to the other party along with any damage to your car. Other protections under full coverage include theft and vandalism. You could lower your insurance rate if you choose liability only policy. It is always a good idea to select the highest liability coverage. Although this will cost a bit more, it is absolutely essential. Liability is one area where you do not want to cut coverage. Just imagine if you happen to be in an accident where the other party claims bodily injury which could cost hundreds of thousands in medical bills plus unpaid time off from work.

Another smart way to reduce the rate is to bundle your home, life and car insurance together with the same company. In many cases the provider can give you a discount when they manage multiple insurance policies for you. This is because most companies would offer you discount in order to sweeten the deal to acquire more business from you.

Maintaining good driving record is another way to get better rates. Many insurance companies have various programs such as ‘safe driver’ discounts program which can save you money if you have maintained a clean driving record. Therefore, the next time you are about to speed, think about the definite price hike on your auto insurance rate, and that may keep your feet from pressing too hard against the gas pedal.

If you are only using your car for casual driving and are not driving long distances every day, you need to communicate this information to your provider or agent. Rates vary based on how much you drive. The reason for this is that there is more chance of accidents if you happen to be on the road more often than not.

Your car’s safety features can also save you money when applying for insurance. Many providers will lower the rate if your car has safety features such as automatic air bags, anti lock brakes and automatic seat belts. Anti theft devices and alarm systems are also the favorites of insurance companies as they help to keep your car less accident prone as well as they reduce the chance of theft and vandalism. Again make sure that you discuss these features when applying for your car insurance.

Last but not the least; make sure that you get quotes from various different companies as the rate varies largely from one provider to another. Once you have compared all rates and policies, then you can choose the best insurance rate and the best policy that is right for you.

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Tips For Saving on Auto Insurance

Paying for auto insurance is not what most people love doing, but it’s something we all need to do. While different states have different minimum requirements when it comes to auto insurance, about every state require car drivers to have some sort of auto insurance coverage, it’s the law.

Auto insurance is expensive, and its price will continue increasing, that’s why I’ve writing this simple guide containing some tips on how to save on auto insurance.

The Car You Drive

The make, model and year of you car is probably the most important factor when it comes to the cost of your car insurance. The best way to start saving money is by using a car that is cheaper to insure! The rule is simple, the newer and more expensive your car is, the more expensive your insurance will be.

Auto Insurance Discounts

As you may already know there are many factors that insurance companies look at when giving you a car insurance quote, but what you may not know is that most insurance providers offer different types of discounts, see if you qualify for any of these and take advantage of it. Here’s a list of some of them:

  • Good Driver – You may qualify for a good driver discount if you haven’t had any accidents or traffic tickets in the past 3 to 5 years, don’t expect this to apply to you automatically, if you haven’t had accidents or tickets in the past 3 to 5 years ask for it!
  • Safe Vehicle – If your car has an alarm, anti-theft system, airbags, ABS, automatic seat belts or other safety features, you may be able to save some money.
  • Military – Military personnel can easily obtain car insurance discounts.
  • Low Mileage – Do you live near work? if you drive short distances to work you can get a discount from your insurance provider, it’s easy, the less you drive the less likely you are to be involved in an accident.
  • Age – Older drivers pay less, as simple as that.
  • Multiple Vehicles – Having multiple vehicles under the same insurance policy can save you money.
  • Multi-Policy Discounts – A good way to save on insurance is to cover all you insurance needs under the same provider, that includes life insurance, home insurance and of course auto insurance.
  • Student Discounts – College graduates can obtain good discounts from most insurance companies.

Your Credit Score

Having a good credit history will not only get you low interest credit cards or loans, but it will also help you to save money on auto insurance.

Shop Around

Another great way of saving on auto insurance is by shopping around, there are many websites out there that allow you to see multiple car insurance quotes instantly, once you find the one that best fits you go can apply right there. By doing this, you may end up saving hundreds or even thousands of dollars a year in auto insurance.

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7 Auto Insurance Tips You Should Know

  1. If you have never purchased auto insurance before, do some research, before you sign any kind of a policy. Be sure to understand the coverage, terms and conditions. Remember that there is plenty of help available. If you do not understand terminology, use an insurance term glossary, as you may not fully understand the used terms.
  2. Is the auto insurance company a reputable insurer? Check out the company that you are planning to use. Talk to others. They may have had good or bad experiences. That way you will be able to make a more informed decision.
  3. Weigh the cost of the premiums on your policy against your actual coverage. Are you comfortable with the coverage? Keep in mind that you may add or reduce according to your needs. Find out exactly what kind of rates are being offered by a variety of carriers.
  4. Make certain that the coverage that you choose to invest in, gives you adequate coverage for the full cost of vehicle repair, or replacement if you feel your vehicle has current value worth insuring. If you’re financing or leasing a vehicle, make sure that your requested coverage satisfies your contract.
  5. If you’re eligible for discounts, take advantage of them. Many will skip out on savings which could’ve been adding up over time. Some discounts are automatic and some will require your volunteered notice such as low-jack and driver safety discounts.
  6. Be careful in terms of clauses in your contract. Watch out for excluded drivers and realize that they will not be covered and should not drive your vehicle. You do not want any uncovered losses at a later date.
  7. Find out what you will be required to pay up front in terms of repairs, if you are involved in an accident (deductibles). Will the insurance company assist you in any other way, i.e. in terms of towing, rental car expenses? Some don’t find out that they don’t have a rental car until an accident occurs.
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