Auto Insurance Tips

Auto insurance is important protection for you, your family, and other people on the road. There are a large number of company’s that sell insurance. Rates can vary a lot so you can save by getting quotes from multiple companies. You will often get additional discounts by combining your auto and homeowners or renters coverage with the same company. The agent you choose to do business with should explain your coverage’s and options to your satisfaction.

Coverage laws differ by states but generally there is a minimum coverage required and an option to purchase more. As an insurance agent I know that many people will ask for the minimum amount of coverage. In Texas that is 20/40/15 which means $20,000 per person for liability insurance (if you hurt someone), $40,000 liability maximum per accident, and $15,000 for property damage. THIS IS NOT ENOUGH! If you hurt someone in an accident there is a very good chance the injury will be greater than $20,000. It is not uncommon for an injury to be $100,000 or more. The minimum for property damage is also too low to properly protect you and other motorists. Ask your agent to give you information on the incremental cost for higher levels of protection. The maximum available for liability is typically around $500,000. This is good coverage but still may not be enough, especially if you have a lot of assets. If you want more coverage than the auto policy offers you can buy an umbrella that adds an additional amount. For property damage the maximum offered is typically $100,000. Keep in mind that there are vehicles on the road that are valued at 100K or even more.

In most states there is uninsured motorist coverage available at extra cost. This pays you if an uninsured or under insured mororist injures you or your property. This is good coverage to get if it is affordable for you. You can also purchase medical coverage. If you already have health insurance you may want to decline this to reduce your insurance cost. Other options to discuss with your agent could be towing coverage, rental reimbursement, gap insurance and possibly other coverage’s. A good agent should talk to you about every possible discount available from the company. These could include things like a vehicle alarm system, multiple vehicles in the household, drivers training, affinity group, (teacher, police officer, fireman, etc.), electronic fund payment, etc..

Some other ways to save on your insurance could be to have a very inexpensive car and only buy liability insurance. This can save a lot, especially for a young driver. You can also check with your agent for tips on what cars have lower rates before buying a new vehicle. In general, moderately priced 4 door sedans are on the low side. You can also save by having a larger deductible for your collision coverage. Ask your agent about the cost difference for different deductible amounts.

Looking to get a cheap insurance rate? Here are the top 10 money-saving auto insurance tips that will save you a bundle on your auto insurance.

1. Consolidate Your Policies

Placing your homeowners or renters insurance and your auto insurance with the same insurance company can save you 5% to 15% on you insurance premium. Plus, you’ll only have one company to deal with.

2. Increase Your Deductible

The deductible is the amount of money you have to pay toward a claim before your insurance company will pay. By increasing your deductible you’ll lower your insurance premium. Increasing it from $200 to just $500 can save you up to 30% on your auto insurance.

3. Get Safety Discounts

Most insurance companies will give you a discount for having safety features like air bags, anti-lock brakes, and automatic seat belts.

4. Get Security Discounts

You can get a good-sized discount for having a car alarm, anti-theft device, or electronic disabler installed on your car.

5. Get Low Mileage Discounts

Most insurance companies will give you a low mileage discount if you drive your car less than the average driver.

6. Ask About Other Discounts

Insurance companies offer all kinds of discounts – senior discounts, safe driver discounts, driver education discounts, good student discounts, military discounts, and law enforcement discounts. Ask your insurer about all the discounts that are available to you and have them included in your policy.

7. Buy a Low-Profile Car

Cars that cost a lot to repair, like high-end sports cars, and cars that are targeted by thieves, cost a lot more to insure than less expensive late model sedans.

8. Maintain a Good Credit Rating

Believe it or not, your credit rating is now used by some companies to rate your insurance premium. To lower your premium, take a look at your credit rating and see if you can improve it, or choose a credit company that doesn’t use credit ratings to judge insurance risk.

9. Drop Collision and Comprehensive Coverage

Collision coverage pays to repair your car when you’re in an accident, and comprehensive coverage pays for repairs caused by fire, vandalism, and severe weather. If your car is worth less than your premium plus your deductible, it’s probably not worth carrying collision and comprehensive coverage.

10. Compare Rate Quotes

Because insurance rates can vary by hundreds of dollars from one company to another, comparing quotes and choosing the cheapest one is the best way to save money on your auto insurance. Rather than spending hours of your time calling companies on the phone or going to their websites, go to an insurance comparison website where you can get quotes from a number of companies in a matter of minutes.

Some recommendations for lowering your auto insurance rates could reduce the quality of coverage you enjoy and are, therefore, NOT wise. However, you can pay much less for superior coverage if you have the right tips and take necessary precautions. These are tips that are good for you…

1. There is something known as “good driver discount.” This for drivers who have not make claims for three years and more. But don’t be surprised if your agent tells you your auto insurance provider does not offer this discount.

If your insurer is one of the few who don’t offer this discount tell them point-blank that you’ll switch to another insurer. Believe it or not, every insurer likes having people who stay claims free for this long as policy holders and you shouldn’t have any difficulty getting better rates with a host of other insurers.

And, believe it or not, your insurer is likely to shift grounds if they see you’re really serious about leaving.

2. A multi-vehicle discount is a proven and easy way to enjoy lower rates. Howbeit, there are several cases where you’ll save more by buying from different insurers. Doing some shopping and then checking with what you’ll save with a multi-vehicle discount is a good way to be sure if this serves your best interest. But anyway, a multi-vehicle discount is one way to pay less.

3. A multi-policy discount is a good way to reduce your total insurance spend. That is, for example, if you buy your auto policy from the same insurer who caters for your home insurance.

However, bear in mind that you may be better off if you buy your different policies from different insurers who offer the best rates for each policy. It’s worthwhile that you doing comparison shopping. You’ll be sure of the best choice in your case if you do this.

4. Although most people will question the wisdom behind this, your credit rating is used to decide whether you’re a good a bad risk. Most insurers now take your credit rating into consideration when deciding what you should pay. Insurers who use it as one of the factors that determine what a person pays say that there is a relationship between the two. They maintain that experience and statistics show that a poor credit rating means irresponsibility which also plays out behind wheels.

5. Drive carefully if you’re really keen on attracting lower car insurance rates. Please, make sure you make it a policy to NOT drive if you so much as sip any alcoholic beverage.

If you’re convicted for driving under the influence (DUI) you’ve said good-bye to affordable rates for a very long time. While alcohol-related traffic offences have very immediate and serious consequences, speeding tickets will also affect your rates negatively if they accumulate. For your safety then and cheaper rates, never break any traffic law notwithstanding how small you think it is.

6. We all are aware of the fact that no age range pays as much for auto insurance as drivers who are less than 25. However, one step you can take to get cheaper rates if you are part of this age group is keep getting good grades.

To enjoy this, however, you must maintain at least a “B” grade. This will shave off as much as 5 percent from your rate once you qualify. Reckless students are very unlikely to keep getting excellent grades.

7. Visit not less than five quotes sites. Using not less than five quotes sites raise the chances that you’d receive more affordable auto insurance quotes. This is because offers not covered by one site would be covered by another.

Moreover, you should understand that because the likelihood of getting lower auto insurance quotes is related to the number of quotes you receive, the more insurance companies you get quotes from, the brighter your chances will be.

Obtaining your auto insurance quotes online will help you save far more if you sacrifice only 25 minutes to ask for quotes from a minimum of 5 insurance quotes sites.

In today’s world, the cost of everything is rising – it’s simple economics. Goods such as fuel and cars cost more than ever. Many people might simply call this inflation, and put up with it. However, when it comes to getting cheap auto insurance, there are ways to save considerable amounts of money – despite what many people believe.

To understand this and to understand how to lower our policy costs, we must know what affects it. As the old saying goes “once you can measure something, you can manage it”. There are many things that will affect your auto insurance price that you have no control over, such as your age, where you live, and your previous driving record. Instead of trying to change this (which is impossible, unless you want to move house), it is better to focus on the things that we can control. For example, when buying your next car realize that the type of car you buy will affect the price of your car insurance drastically. Buying a car with a big engine will raise your premium, whereas buying a car fitted with various safety devices will lower the cost of your insurance.

Secondly, although you can’t control your past driving record, you can control the destiny and the look of your future driving record. Since most auto insurance companies only look at your previous 3 years of driving experience when calculating a price, you can never permanently mess up your record (thankfully). Thirdly, increasing your deductible/excess will lower your insurance premium, as it takes some of the risk off of your insurer. This is a big feature that most people never consider (or even know that they could change).

The choice is up to you as you’re taking on a larger risk by accepting a larger deductible, but if you’re a safe and sensible driving then you should have nothing to worry about. Another way of saving money that is often overlooked is combining multiple separate policies together. To do this, you must have some other kind of insurance (such as home insurance) with the same company as your car insurer. From then on, you should be able to request discounts for having multiple policies. If you don’t have multiple policies with the same auto insurer call them up and ask them if they’ll offer better rates if you switch over to them. You might be pleasantly surprised!