Auto Insurance Learning centreTeenage Auto Insurance - 10 tips to lower premiums for young driversChoosing the right auto insurance company A couple of tips about choosing the right auto insurance company. What to do in the event of a car accident? Its unfortunate, but incident has to be reported. Follow the procedure mentioned. Is it better to have higher or lower deductibles on my policy? Deductibles form your part of the payment towards insurance coverage. |
Car Insurance
15 tips to lower your car insurance premium - Part IAny driver should have auto insurance (unless the driver opted for ’Financial Responsibility’). In case you are searching for ways to spend less but still obtain the coverage that you require, here you will find some tips you can use.Improve your driving recordImproving your driving record is the most crucial action you can take, to reduce your automotive insurance rates.In many states, the BMV department has a "point" system, currently in use to monitor your driving history. Usually, each kind of violation (at-fault accidents, moving violations, driving under influence, parking tickets, and so on.) is allocated a specific point value. If you have one such violation, the proper quantity of points are put onto your entire driving history (these points expire after a certain period, usually two years). More points indicate a worse driving record. In case a look up of a person’s driving history reveals unfavorable details, possibly their insurance rates would be higher. Insurance companies usually work with their own unique "point" method to ascertain the degree of the increase (if perhaps any). Consider higher deductiblesAn insurance deductible is the total amount that you have to pay in case of a car accident, before your insurance provider pays on your claim. The deductible amount also is one of the leading components in deciding your automobile insurance payments. With a higher deductible, your monthly insurance payments will be lower.Agents and insurers allow drivers to raise deductibles during the tenure of the policy, to help lower their insurance premium. Raising your deductible is a good deal, especially if you are looking for low cost car insurance. This is especially true if you are a careful driver, as you may never have to pay the deductible. So, figure out the difference in premium between a low deductible and high deductible policy, and see if it is worth going for the high deductible policy. Premium for a $1,000 deductible plan could be 40% lower than premium for the minimum deductible plan. Do comparison shoppingThere would be many auto insurance agents in your local area. There are several of them that work online only. So, getting an auto insurance quote would not be difficult. However, each quote would provide different coverage levels for each of the different components of auto insurance - liability coverage, bodily insurance and so on. So, how do you compare the quotes so that you get the lowest possible rate, and yet maintain the amount of coverage you need? (Then there are also the factors of reliability of the insurer to pay on claims, and the service level provided by the insurer).Get insurance quotes from agents online or directly from insurers by calling their toll-free numbers. Take notes about the premium and coverage offered. Next, call up local insurance agents, either by looking them up in a phone book or by visiting their offices. Get their quotes, and compare them with the quotes you obtained from agents online. Remember to ask friends and family members about their insurers and the rates they are paying. Also ask about any negative information they may have about their insurers. The company you choose should be able to pay up on claims when it’s time. So, check if the insurer is financially strong. You can find this out from rating companies such as Standard & Poor's ( http://www.standardandpoors.com/ ) and A.M. Best ( http://www.ambest.com ). Also look at consumer reports and consumer magazines for such information. Is it an old car? You could reduce the coverageIf your car is old, consider taking only the minimum coverage (i.e. liability coverage) as mandated by your state. If the market value of your car is low, you may be paying an excessively high amount for comprehensive coverage and / or collision damage. You could refer to Kelley Blue Book ( www.kbb.com ) for information about the market value of your car.Improve your credit scoreInsurance companies use your credit score to price insurance policies. So, improving your credit score can cut your insurance premium. To improve your credit score, take only as much credit as you require and be regular in paying your bills. You can order a free copy of your credit report annually from www.myFICO.com . Review the report and correct any errors it may have, to improve your credit score.Get Storage Insurance if you are not driving a vehicle year roundIf you use your vehicle only for a part of the time during a year (a seasonal vehicle), or use the vehicle for show, then consider putting the vehicle into storage when it is not in use. Storage insurance is much cheaper.You have to remember to not drive your vehicle if you only have storage insurance on it (it is not legal to do that). When you need to drive it, you first need to inform your insurance company, and they will change your vehicle over to the normal insurance. Storage insurance covers the damages to your vehicle while it is in storage. Depending on the kind of vehicle you have, it may still be a large expense if your vehicle is damaged during storage. So make sure to maintain storage insurance on your vehicle while it is being stored away.
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