There is a very good chance that you are — this very moment — paying too much for your car insurance. There is an even better chance that you could get a better rate, from another insurance company, than you could from your existing insurer.
So why not take an hour or so and review your policy for potential savings? Or, if you're fed up with the high insurance rates from your current insurer, shop around for a new company.
The Internet has created increasing competition between car insurance companies. It is easier than ever for consumers to shop for low insurance rates, to analyze coverage and compare premiums. Still, studies have shown that people don't shop around for insurance in the same way they might shop for a new car. Also, people tend to stay with the same car insurance company for years. Why not prove these studies wrong? Put the power of the Net to work for you and save money in the process.
You can save on auto insurance in five ways:
1. Make sure you get all discounts you qualify for
2. Keep your driver's record clean and up-to-date
3. Adjust your coverage to assume more risk
4. Drive a "low profile" car equipped with certain money-saving safety features
5. Shop around for a good, low cost insurance provider
First, let's look at the discounts you might qualify for. Discounts fall into a number of categories:
* Low-risk occupations
* Professional organizations
* Combined coverage
* Discounts for safety features
* More risk assumed by driver
* Discounts for senior citizens
Low-Risk Occupations
Insurance is a numbers game. Adjustors collect information about what types of people get into accidents. Over the years they see a trend. Drivers that work as engineers tend to get into fewer accidents. Why? It would be fun to speculate about the reasons (pocket protectors — need we say more?) but the insurance companies don't really care about that. All they know is that, in fact, engineers are a low risk. Since there is less chance that they will wrap their cars around the trunk of a horse chestnut tree, they charge engineers less for insurance. Simple.
But you say you are a teacher instead of an engineer? You might still be in luck. There may be discounts for teachers. You never know unless you ask — and unless you shop around. Not all insurance companies are the same.
Professional Organizations and Auto Clubs
Have you ever been about to pay $100 for a hotel room, only to discover that a AAA discount saves you 15 percent? Now you're paying $85 and feeling proud of yourself. It's similar in the insurance business. Affiliation with AAA — and certain other professional organizations — will lower your rates. You should check with your employer to see if there are any group insurance rates. At the same time try checking directly with the insurance company representative when you inquire about the cost of policies.
Combined and Renewal Discounts
A big source of savings is to insure your cars with the same company that insures your house. Make sure you ask if combined coverage is available. This will lower your payments on your car insurance and make your homeowner's policy cheaper too.
It's also important to make sure you are getting a "renewal" discount that many car insurance companies offer. This is a discount given to people who have been with the same insurance company for an extended period of time. If you have carried insurance with a company for several years, and not had an accident, your insurance company likes you. Think about it. You paid them a lot of money and they didn't have to do anything except send you bills and cash your checks. True, they were ready to do something if you got in an accident. But you didn't get into an accident so they're happy and want to continue their relationship with you. A renewal discount is a good incentive to urge you to return. And it's a good reason for you to stay with them.
Discounts for Auto Safety Features
Auto safety features will also lower your payments. Heading the list of money saving safety features is antilock brakes. Certain states — such as Florida, New Jersey and New York — encourage drivers to buy cars with antilock brakes by requiring insurers to give discounts. Check to see if you live in such a state, or if the insurance company you are considering gives a discount for this feature. Automatic seatbelts and airbags are also frequently rewarded with insurance discounts.
Assume More Risk
Two powerful ways to bring your coverage down is to assume a higher risk. This is done in two ways. The most dramatic reduction can be realized by dropping your collision insurance on an older car. If the car is worth less than $2,000, you'll probably spend more insuring it than it is worth. The whole idea of driving an older car is to save money, so why not get what is coming to you?
Another way to redesign your policy — and save money in the process — is to ask for a higher deductible. The deductible is the amount of money you have to pay before your insurance company begins paying the rest. In other words, you pay for the little dings and bumps and let your insurance company pay for the heavy hits.
For example, a common deductible amount is $500. This means if an accident you're in causes $1,500 worth of damage, you pay $500 and the insurance company pays $1,000. You could, however, set your deductible to $1,000. This still covers you against heavy losses, but it may decrease your monthly premium by as much as 30 percent.
As a final note, if you are being strangled by high insurance costs, keep this in mind when you go car shopping next time. The more expensive and higher-performance the car is, the higher the premium will be. This is particularly true of cars that are frequently stolen, or are expensive to repair. The insurance company keeps this in mind when setting its insurance rates for this vehicle. Shop for a low-profile car and get your kicks in other ways. You'll love the savings you'll see on your auto insurance.
Wednesday, December 24, 2008
low auto insurance for all
#1 Choosing your limits based on the minimums your state requires rather than the type of vehicle you drive.
Of course it's important to be legal - companies won't sell you auto insurance below state minimum requirements, but choosing just those minimums may leave you with the risk of large out-of-pocket expenses if you ever have to use your insurance for a claim. If you drive a mid-size SUV and you hit another vehicle, the damage could be extensive. If your state only requires a $10,000 minimum for property damage and you cause $15,000 in damage to a Mercedes, guess who's responsible for the remaining $5,000? That's right: You are, not your insurance company. So when you choose your insurance limits, think about the size of your vehicle and how much damage you could cause with it. If you're not able to pay large chunks of money out of pocket, you might want to choose higher limits.
#2 Choosing an auto insurance company by price alone rather than by what's offered for the price.
If you get several auto insurance quotes and you base your choice on who charges the least without examining what they offer for the price, you might be selling yourself short. Make sure your quotes are as similar as possible to see what the best deal is, and choose similar limits across all quotes to compare apples to apples. Also, consider a company's availability before you purchase a policy. Some companies may not offer 24/7 access to their customers. Progressive does.
#3 Not being up-front about your driving history. If you don't disclose tickets, accidents or other moving violations during a quote, your rate may not be accurate. So, while the price may be enticing at first, you may be in for a surprise when you actually purchase the policy. Insurance companies will find out about driving histories because they check your driving records, and they'll adjust the price of your policy accordingly. So it really is to your advantage to tell a company about your driving history up-front to get a more accurate rate.
#4 Assuming all auto insurance companies are the same.
While insurance companies are regulated on a state-by-state basis, not every insurance company will offer the same products and services in a given state. Before you choose a company, make a list of what's important to you. Is it price? Convenience? Repair options? Types of parts used? Once you have your list, ask each company about the items on your list to see who can meet your needs the best. Progressive offers options such as our concierge level of claims service, which caters to customers who prefer convenience and efficiency. This service allows customers to drop off their vehicles at a claims service center while Progressive takes care of everything else. You simply return when your car is repaired and ready to go. The time-saving aspects of this service are a big selling point for Progressive customers who've used our concierge service. So before you buy an auto insurance policy, see what a company offers that fits your needs. You'll discover that not all companies are the same. #5 Choosing insurance coverages that could be available through other avenues.
Think about whether coverage options are duplicated elsewhere before you purchase your auto insurance policy. For instance, if your manufacturer's warranty is still active, or if you have AAA, towing many be covered if your vehicle breaks down on the side of the road. In these cases, you wouldn't need to purchase Roadside Assistance coverage on your insurance policy since you'd be covered for towing elsewhere. If you're on a budget and already have health insurance that covers injuries caused in an accident, you may be able to bypass Personal Injury Protection and/or Medical Payments coverage, but only if they're not required by law in your state. If you've tricked out your car with custom parts, you may not need Custom Parts and Equipment coverage during the first year if you chose a warranty plan that covers damage to those parts. Finally, you may not need Loan/Lease Payoff coverage through your insurance company if you've already purchased it through your finance company. This may be built into your monthly payments as part of your loan insurance. If it's too late to remove the loan insurance, there may be no need to purchase Loan/Lease Payoff coverage through your auto insurance company, too. Consider who offers the best protection - and at what price - to determine what works best for you.
#2 Choosing an auto insurance company by price alone rather than by what's offered for the price.
If you get several auto insurance quotes and you base your choice on who charges the least without examining what they offer for the price, you might be selling yourself short. Make sure your quotes are as similar as possible to see what the best deal is, and choose similar limits across all quotes to compare apples to apples. Also, consider a company's availability before you purchase a policy. Some companies may not offer 24/7 access to their customers. Progressive does.
#3 Not being up-front about your driving history. If you don't disclose tickets, accidents or other moving violations during a quote, your rate may not be accurate. So, while the price may be enticing at first, you may be in for a surprise when you actually purchase the policy. Insurance companies will find out about driving histories because they check your driving records, and they'll adjust the price of your policy accordingly. So it really is to your advantage to tell a company about your driving history up-front to get a more accurate rate.
#4 Assuming all auto insurance companies are the same.
While insurance companies are regulated on a state-by-state basis, not every insurance company will offer the same products and services in a given state. Before you choose a company, make a list of what's important to you. Is it price? Convenience? Repair options? Types of parts used? Once you have your list, ask each company about the items on your list to see who can meet your needs the best. Progressive offers options such as our concierge level of claims service, which caters to customers who prefer convenience and efficiency. This service allows customers to drop off their vehicles at a claims service center while Progressive takes care of everything else. You simply return when your car is repaired and ready to go. The time-saving aspects of this service are a big selling point for Progressive customers who've used our concierge service. So before you buy an auto insurance policy, see what a company offers that fits your needs. You'll discover that not all companies are the same. #5 Choosing insurance coverages that could be available through other avenues.
Think about whether coverage options are duplicated elsewhere before you purchase your auto insurance policy. For instance, if your manufacturer's warranty is still active, or if you have AAA, towing many be covered if your vehicle breaks down on the side of the road. In these cases, you wouldn't need to purchase Roadside Assistance coverage on your insurance policy since you'd be covered for towing elsewhere. If you're on a budget and already have health insurance that covers injuries caused in an accident, you may be able to bypass Personal Injury Protection and/or Medical Payments coverage, but only if they're not required by law in your state. If you've tricked out your car with custom parts, you may not need Custom Parts and Equipment coverage during the first year if you chose a warranty plan that covers damage to those parts. Finally, you may not need Loan/Lease Payoff coverage through your insurance company if you've already purchased it through your finance company. This may be built into your monthly payments as part of your loan insurance. If it's too late to remove the loan insurance, there may be no need to purchase Loan/Lease Payoff coverage through your auto insurance company, too. Consider who offers the best protection - and at what price - to determine what works best for you.
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