save on car insurance

While economists are predicting that the economy may improve in the next few years, it’s still in the dumps. Job losses are high, debt is expanding, retirement accounts are shrinking, and many people are losing their homes to foreclosure. Times are more difficult now than they have been in recent years, and we are all looking for ways to save money wherever possible.

You may be tempted to drop your car insurance, but that’s a bad ideal. In every state of the US, you are required to carry a certain amount of auto coverage, remember? If you’ve been responsible in paying off your bills, have a decent credit rating, and you’re a good customer and driver, there’s a good chance that you can find the same level of coverage that you currently have for a lower cost.

If you haven’t made timely payments, or you’ve found yourself in multiple collisions, you won’t have nearly as much negotiation room. But there are still some things you can do to increase the chances of lowering your car insurance rates.

How to save money on your insurance premiums

No matter what your situation is, chances are you will be able to save some money on your current auto insurance coverage. All it takes is a little effort. Even if you’re able to save only $10 per month, that’s money that can be spent elsewhere. Like paying off other bills!

Sometimes it can be as simple as a phone call. Don’t be afraid to give your insurance provider a call. You’d be surprised what kind of discounts you could get. Just ask!

Raise your deductible. This can be a good way to save money on your auto insurance. Raising your deductible can have a big effect on what you pay for your coverage. Don’t get greedy and raise it too high though, even if you think you’re the one of the best drivers on the road. It’s wise to also make sure that you have some money saved up to pay for the deductible, in case you are in an accident.

Shop around. If you haven’t explored the many auto insurance options you have available to you you are missing out. In more stable economic times, people would go years without checking how their current policy stacks up against other options. But now we can’t afford to be so care-free. Many websites will give you a number of quotes if you enter your zip code.

Try re-evaluating your insurance needs and balancing your coverage types. Your needs may different than you thought.

Side note to consider: There’s a good chance that your checking account and credit card balances don’t have as much padding as they did six months ago. If your auto coverage is paid automatically via debit or credit card, make sure you have enough money on hand to continue your coverage, otherwise you may be subject to a rate increase on your premium.

In this economy, it pays to check around. Deals can be found if you look. It doesn’t hurt to make a few phone calls and see if you can save on your car insurance.

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save money with some unusual steps

There are literally hundreds of ways to save money on car insurance. Most of them revolve around discounts, and you’ve already heard all about them. It seems like the same 10 pieces of information tend to pop up everywhere you go! There are some people, however, who have taken the quest for great car insurance rates a step farther and firmly cemented a place for themselves in the Car Insurance Savings Hall of Fame! Here’s a look at some strange and not-so-strange ways of knocking big bucks off your car insurance and the costs that go along with it so you can put that money to better use.

Barter with your repair shop. This isn’t directly related to saving money on your car insurance premiums, but I read an article the other day that I thought was absolutely brilliant. Associated Content author Amy Barnes was explaining how she had worked out a deal with her local repair shop to help cover the cost of her deductibles (the amount of money you pay to cover what your insurance company won’t). Since her deductibles were about $1,000 dollars she agreed to provide them with $1,000 worth of advertising. Quid pro quo indeed!

Become a hermit. Hey, you laugh, but if you’re not out on the roads you’re not paying for your insurance. Thanks to the Internet, becoming a high tech hermit is easier than ever! You can order your groceries online, request delivery of just about everything and only venture out when it’s time to go to the doctor or make your annual visit to your mother’s for Christmas. (Missing that just isn’t worth it-you’re going to get more than a couple hundred dollars worth of guilt absolutely free every birthday and holiday for years!) The low mileage discounts will do wonders for your ability to pay your insurance premiums.

Sell your sports car and trade it in for a clunker. Hey, those high test cars are expensive to insure, because they’re going to be expensive to replace! Trade that in for a $1,000 special and you’ll be able to use the difference in their sale price to foot the bill for your car insurance for years.

Buy a horse and buggy. Trading in four wheels for four hooves might not be the best choice for your living room, but it’ll do wonders for your car insurance rates!

Go for minimum liability on your car. Most experts recommend you carry minimum liability levels of at least $100,000 per person and $300,000 per accident. That’s well above the bare minimum in every state. If you really want to save money on your car insurance, dice and slice your  coverage. You might find yourself paying thousands of dollars in damages, but you’ll be able to save at least a couple hundred dollars a year. Keep yourself out of trouble and it should pay off in twenty years or so!

Michael McDonough is a National Account Executive for QuoteScout.com. To find out more about to save money on your car insurance rates visit them on the web at http://www.QuoteScout.com

Article Source: http://EzineArticles.com/?expert=Michael_F._McDonough

Photo credit: stock.xchng

Getting a driver’s license is a coming-of-age for many kids. It’s their ticket to freedom, no longer having to rely on family and friends to get around. But there’s a price to be paid for freedom: high insurance rates.

There are a variety of factors that determine the cost of your car insurance premiums. Here are some tips to help you lower your insurance costs.

Look for Car Models with Lower Insurance Costs
Before you buy a new or used car, look into the costs for insuring it. Car insurance premiums are based in part on the car’s sticker price, the cost to repair it, its overall safety record, and the likelihood of theft. High-end luxury cars and performance vehicles cost more to repair, maintain and insure than family sedans. The same applies to classic cars: the more expensive to buy, the more expensive to repair, maintain and insure.

To help you decide what car to buy, you can get information from the Insurance Institute for Highway Safety (www.iihs.org).

Safety Makes a Difference
Keeping a safe, clean driving record can lower your rates. Choosing a car with additional safety equipment can mean discounts. Taking a driver training or accident prevention course may qualify you for lower premiums. Ask your agent for details.

Combine your Insurance Policies with One Company
Many insurance companies will give you a price break if you have more than one type of insurance with them. You can combine homeowners and auto insurance, and you may get a break for having multiple cars insured with the company. You may also have lower rates if you’re a long-time policy holder. It still pays to shop around, because you may save more money by combining policies from different companies compared with a multi-policy discount. Generally speaking, however, you will save money by combining your insurance with one company.

Request Higher Deductibles
A deductible is the out-of-pocket amount you will be required to cover in the event of a loss. The higher the deductible on your car insurance policy, the lower your premium.

Increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15 to 30 percent. Going to a $1,000 deductible can save you 40 percent or more. Before choosing a higher deductible, be sure you have enough money set aside to pay it if you have a claim.

Changes in Your Life?
Are you still insuring drivers who no longer live with you? Do you drive less for your job than you used to? Have you just gotten married, or graduated from college? Are you living in a different part of town? Is your teenaged driver getting good grades in school? All of these things affect how much you pay and could result in discounts.

Reduce Coverage on Older Cars
Consider dropping collision and/or comprehensive coverages on older cars. If your car is worth less than 10 times the premium, purchasing the coverage may not be cost effective. Auto dealers and banks can tell you the worth of cars. Or you can look it up online at Kelley’s Blue Book (www.kbb.com). Review your coverage at renewal time to make sure your insurance needs haven’t changed.

Maintain a Good Credit Record
Building and maintaining a solid credit history can reduce your insurance costs. Insurance companies are increasingly using credit scores to determine the cost of auto insurance coverage. Pay your bills on time, don’t obtain more credit than you need, and keep your balances as low as possible. Pay off your revolving credit accounts if at all possible, and close any accounts you’re not using. Check your credit record on a regular basis, and correct any errors promptly so that your credit records are accurate. You may want to subscribe to a service that periodically updates you on any changes or issues with your credit rating.

Liability Coverage
Liability is the primary, and usually mandatory, part of auto insurance coverage. Liability coverage saves your personal assets when you’re liable for destroying someone else’s car or injuring someone. Liability is usually quoted as a three-part number like “100/300/50.” That means for any one incident, you’re covered for $100,000 in bodily injury per person, $300,000 in bodily injury total, and $50,000 in property damage. 100/300/50 is the minimum coverage recommended by the auto insurance industry, but requirements vary from state to state. South Carolina, Virginia, Tennessee, New Hampshire, and Wisconsin are five states that do not require liability coverage.

Comprehensive Coverage
Pays for losses from fire, theft, storm, etc. Comprehensive coverage typically covers damage to your insured car not caused by collision (a covered accident with another car). This coverage typically includes, among other things, damage caused by falling objects, fire, theft and vandalism, explosion, earthquake and more.

Collision Coverage
Relates to damage which occur to your own vehicle. This coverage typically pays for damages to your car as a result of a an accident with another car or something else (for example, running into a tree on an icy street). This coverage provides for the repair or replacement of your insured vehicle, up to the Actual Cash Value of the vehicle. Actual Cash Value takes into account depreciation of your car due to age, use, and wear and tear.

Bodily Injury
Pays for injury to others when you are at fault.

Property Damage
Covers property damage when you are at fault.

Medical Expenses
Pays for your own or your passenger’s medical expenses. Medical Payments coverage provides payment for reasonable and necessary medical treatment for bodily injury caused by a covered accident, regardless of who was at fault. That treatment includes, among other things, x-rays, surgery, ambulance, physicians, hospital, and funeral expenses.

Personal Injury Protection
In no-fault states, this covers a broad assortment of medical expenses. This typically provides coverage for an insured person for certain reasonable and necessary expenses. The types of expenses vary by state. Some examples of typical expenses include: medical and hospital expenses, income continuation, loss of services, funeral expenses, and child care expenses for bodily injury caused by a covered accident, regardless of who was at fault. It’s only available in certain states.
Coverage for you if other driver is not insured or is underinsured.

In addition to basic auto insurance, consider these optional services to provide added protection for your vehicle:

Mechanical breakdown Insurance, Emergency Roadside Assistance and Towing Service
When you or your loved ones are stranded and need help, they’re as close as the telephone. With an optional Towing and Road Service, you can reach them 24 hours a day, 365 days a year. It only takes one toll-free call. If you choose a Sign and Drive Road Service, you won’t need a credit card or check to get the help you need.

Car Rental Reimbursement
After a car accident, you may need to rent a car while yours in being repaired. This coverage can usually be bought from your car insurance company. Car rental reimbursement coverage pays a flat sum to assist you with the expenses that you may incur following an auto accident.

Auto Glass Replacement
Auto Glass Replacement is an optional program that takes the headache out of repairing or replacing damaged or broken auto glass. Sometimes included in a comprehensive coverage.

Save on insurance for teenage drivers

Getting a drivers license is one of the rites of passage for most teenagers in the United States, and insurance companies are well aware of the risks that these inexperienced drivers pose. For parents, adding a teenage son or daughter onto their insurance policies can be a big hit to the wallet. The Insurance Information Institute estimates that adding a young driver can increase rates by 50 to 100 percent. It may be tempting to just take away the keys, but before you do that, read on for some ways to keep younger drivers safe on the road, while reducing the costs for auto insurance.

Maintain a Clean Driving Record

One of the things that can cause insurance premiums to go through the roof is to have a DUI conviction. Driving while under the influence of alcohol can be extremely costly – in New Jersey, for instance, the total cost for one DUI for an underage drinker can run up to $24,000 (source: Municipal Alliance for the Prevention of Substance Abuse). This includes increased insurance premiums, legal fees, and other fines. A young person with no previous convictions who is convicted of a DUI could face insurance premiums raised to thousands of dollars for at least three years, according to David Snyder of the American Insurance Association.

In addition, simple steps like always using a seatbelt and driving close to the speed limit can greatly reduce the chances of having a moving violation on the record of a young driver.

Keep Your Grades Up

Many insurance companies offer discounts for students who maintain a 3.0 or B average and who are enrolled full time in high school, community college or university.

Taking a local accredited driver safety class may also lead to a discount, or help to remove points from a young driver’s license after an accident or violation. Check with the National Safety Council for information on where to take a driver safety course. They can also provide information regarding state certified programs that offer courses for point reduction, car insurance discounts, drivers education classes, or retraining.

There are many drivers education companies which offer comprehensive training that can provide courses in defensive driving. These can help to bring down premiums for auto insurance.

Be Involved in your Community

Some insurance companies offer discounts for young drivers who are a part of civic or community organizations, such as Scouting, or even for volunteering at a local hospital or nursing home. Insurance companies are looking for evidence that a young driver is less of a risk, and many are willing to reward those who have spent time bettering their community. When doing comparison shopping, ask to find companies that reward community involvement.

Choose Your Car Wisely

Driving the newest sportscar may be a dream of younger drivers, but it’s probably not the best way to minimize insurance costs. The type of car driven is a large factor in determining how much premiums will be.

Choosing a safer car can save up to 50 percent on auto insurance. SUVs, sports cars, expensive luxury cars, and high performance cars are considered to be higher risk by insurance companies, and you’re going to pay more to insure them.

While it may seem to be “uncool”, younger drivers may want to consider driving a less glamorous, but safer car. A Honda Civic or a Volvo will usually have lower insurance rates than a sports car. Older cars may not have airbags, and that will also raise rates. Consumer Reports also has some recommendations for young drivers, including the Toyota Camry LE and the Mazda3.

Benefits of Safety Features

Insurance rates are also often discounted for cars with added safety features, such as automatic seat belts and anti-lock breaks. Side-impact airbags may also help. Stability control features may also taken into account when insurance companies determine risk.

Photo credit: flickr

When you purchase insurance for a used car, there are some key factors that you need to consider.

Minimum Liability Coverage

In the United States, each state sets minimum requirements for insurance coverage. In New York State, for example, the minimum requirements for auto insurance coverage are $25,000 per person/$50,000 per incident for injury, $50,000/100,000 for death, and $10,000 for property damage caused by any one accident.[1] Check with your state Department of Motor Vehicles to see what the minimum requirements are where you live.

It’s important to keep in mind that these are the absolute minimum limits required by law. It would be a very good idea to carry more than that in coverage for bodily injury and liability/property damage. If you are the cause of a multiple car accident, or are at fault in an accident where a few people are injured, the costs will add up quickly. The additional premiums that you will pay for more coverage is well worth it, and may pay for itself with one incident.

Comprehensive and Collision Coverage

Another consideration is the deductible amounts that you need to have for your used car. The higher your deductibles, the lower your premium will be for the year — but it also means that you would pay more out of pocket if you have an accident. There are two different kinds of deductibles: comprehensive and collision. Comprehensive coverage pertains to any damage that may be caused by things such as acts of God, hit and run drivers, vandalism, or hitting an animal. Collision comes into play when you actually hit another vehicle while on the road. Comprehensive claims do not change your future premiums for insurance, but collision clams will usually have a negative affect what you pay for car insurance. It often makes sense to have a lower comprehensive deductible, and a higher collision deductible, since comprehensive claims may be smaller. Glass is usually covered under the comprehensive deductible, but some insurance companies may have a $0 deductible for glass coverage. Ask your insurance agent about this.

If Your Used Car is Worth Less than $2000

If your used or older car is worth less than $2000, then you should only carry liability insurance. If you have comprehensive coverage, you may end up paying more for the deductible than the vehicle is worth. Don’t forget about the bodily injury liability coverage, however, as this could cover you if you are at fault in an accident and there are injuries. You cannot simply claim that you don’t have the money to pay for the injuries or property damage, you will be liable for those costs if you have insurance or not. So, make sure your coverage is adequate, even on an older or used car.

SR22 can make car insurance a challenge

Finding affordable car insurance after a DUI / DWI conviction can be a challenge. Many car insurance companies will either cancel your policy outright, or raise your rates astronomically after a drunk driving conviction.

Rates for auto insurance coverage are determined by the amount of risk involved. The higher the risk of having a claim, the more expensive it will be to purchase coverage. Your driving record has a huge impact on the caculation of these risk factors, and therefore affects your premiums. Any tickets, accidents, or drunk driving arrests will all be considered when your insurance company calculates your insurance costs.

What is an SR22 filing?

If your driving privileges have been taken away after a DUI conviction, you will need to receive an SR22 document from your insurance company stating that you have insurance coverage. It’s not insurance, but rather an agreement between the insurance company that issued the SR22 document, and your state Department of Motor Vehicles (DMV). When you apply for car insurance after a DUI, your carrier will issue the SR22, and you can file this this with the DMV to have your license reinstated.

Essentially, the SR22 is a statement from the insurance company that they will inform the DMV of any lapses in your insurance coverage or changes to your policy.

It is a requirement that a driver convicted of drunk driving or a DUI offense have SR22 auto insurance. This is a high risk policy that guarantees the state DMV that the policy holder has the required minimum insurance coverage, and it is filed by the insurance company on your behalf. Your drivers licence will not be reinstated without the SR22, if it is required, and in most cases it must be kept on file for a minimum of three years from the date that driving privileges are reinstated.

The SR22 insurance filing can be filed electronically in most states, and will expedite the restoration of your license and getting you back on the road.

When shopping for an SR22 policy, be sure to get as many quotes as possible. There shouldn’t be any obligation or charge to find out the price of coverage. When reviewing your options, be sure to consider more than just the price. Compare the terms and conditions, coverage amounts, lapsed coverage policies, and any required down payments.

Photo credit: flickr

Overall, you should select an insurance company with fair rates, financial strength and good service. 

Here are some things to look for:

Financial Stability and Ratings

Researching an auto insurance company’s financial stability will prove your car insurance provider’s ability to pay claims. Many companies rate insurance carriers, including Standard & Poor, A.M. Best and Moody’s Investor Services (These are available in most public libraries). You can also check with Consumer Reports for ratings of car insurance companies. Your state insurance office can provide you with rankings of insurance agents relative to others in your area.  Another thing to check is how long the company has been in business. That may provide some indication of stability.

Licensing

Check to make sure that the insurance company is licensed to offer insurance in the state where you live. This means that you may have the ability to seek assistance from your state insurance department if there’s a problem.

Customer Service and Satisfaction

When looking for a car insurance company, you should also research the customer service and satisfaction ratings.  You can find this kind of information online, or by contacting your state insurance regulatory office, or the Better Business Bureau (BBB). Another excellent source of information can often be found by asking your coworkers, friends or family. Find out what insurance companies they have experience with, and how they feel about their experiences as a customer with those companies. You can also check with a local body shop to see what insurance companies they would recommend, since they deal with insurance claims day in and day out.

Availability of Local Agents

Is it important to you to have a responsible and knowledgeable insurance agent located in your local area? It can be reassuring to have a local agent who you can call if you have a claim, or any administrative issues. The right agent can be very helpful in making decisions, and explaining what the right levels of coverage might be for your specific situation. Many larger companies have networks of agents all over the United States. If you are comfortable with not having a local agent, you may be able to save money by comparing online quotes from any number of nationwide insurance providers.

Ease of Submitting Insurance Claims

The speed in which the insurance company responds to claims may also be something to consider. When you have an accident or some other claim, or are in need of roadside assistance, it may be critically important that your insurer responds quickly. Many of the larger insurance companies offer 24/7 assistance by calling a special claims hotline. You can find statistics for claim handling through various sources online, or by contacting the company directly.

Compare Rates and Discounts

Shop around, and find which companies offer the best combination of premium rates, reliability and discounts for your situation.