Top 10 Ways To Lower Your Car Insurance Bill

If you’re shopping for car insurance, you know there are certain crucial factors influencing your rate that are out of your hands. Such factors include your age, gender and record of prior claims.

Despite this, there’s a lot you can do to score a lower rate, and your choices bear more power than you might think. Here are 10 tips guaranteed to help you get the best rate possible on your auto insurance.

1. Get more than one rate quote before you commit. “Company prices are very different, and it pays to shop around. You can easily wind up paying double from one company to the next,” says J. Robert Hunter, director of insurance with the Consumer Federation of America, a national watchdog group.

Want to get a sense of who the low-priced carriers are? The National Association of Insurance Carriers offers a map on its Web site that lists each state’s regulators. Click on your state and you’re taken to the state’s Department of Insurance Web site. Its consumer buying guide compares insurance premiums across a range of companies. You’ll also learn how many complaints each company has logged. Surprisingly, you don’t have to sacrifice service quality to score a low premium. “A lot of the lower-priced companies have the best service rates,” says Hunter.
There are a host of independent Web sites, that allow you to comparison-shop by offering online price quotes. These sites can be incredibly useful. However, Hunter warns that these services — which earn their keep by charging carriers a commission on each sale — occasionally fail to include the insurance companies with the lowest rates, since these low-cost carriers are unwilling to pay commissions.

2. Evaluate insurance costs before you buy your vehicle. The year, make and model of your vehicle can have a profound impact on your insurance rate. All else being equal, new, expensive or sporty cars will cost more to insure than older, cheaper and more utilitarian vehicles. But you could find a substantial discrepancy even when comparing the cost to insure similar cars. So if you’ve got a few models on your shortlist, contact your carrier to see what rate each vehicle commands. Doing so could ultimately net you a windfall in savings when the time comes to pay your premium.

3. Go high on deductibles. If you’re willing to give a little with your deductible, you can wind up saving big on your rates. “If you go from a $250 to a $1,000 deductible, you can save between 25 and 40 percent on your policy,” says Hunter. You can then set aside a portion of these funds to cover your costs in the event of a claim.

4. Nix collision and/or comprehensive coverage on older cars. If your older car has comp and collision coverage, you might find yourself paying more in insurance than the car is worth. “Take your comp and collision premium and add it up, then multiply it by 10. If your car is worth less than that, don’t buy the coverage,” says Hunter. If you’re worried about being left overexposed, consider this: The typical policyholder makes a claim only once every 11 years, and reports a total loss only once every 50 years.

5. Mind your credit score. An increasing number of carriers are considering credit scores when making rate calculations. “Your credit score can be very important in determining your rate,” says Hunter. “You can wind up paying up to 50 percent more if you have a bad credit score.” Keep your credit score in tip-top shape by paying bills in a timely manner and by regularly checking that there are no items on your history that do not belong to you.

6. Ask about low-mileage discounts. Many carriers offer discounts to policyholders whose annual mileage is lower than the norm. Maybe you have a short commute. Or maybe your participation in the office vanpool results in fewer hours spent in your daily driver. Whatever the case, your low mileage can score you a reduced rate with some companies, so be sure to inquire about available discounts.

7. Ask about group insurance discounts. Oftentimes, insurance companies offer discounts to policyholders who are members of certain organizations or professions, such as veterans, engineers or teachers. Request a list of these groups from your carrier to see if you qualify — you might be pleasantly surprised.

8. Ask about all other discounts. Some carriers offer discounts to policyholders whose vehicles bear certain safety features, like anti-theft devices or motorized seatbelts. Others give reduced rates to senior citizens, and to students whose grades meet certain requirements. “Many carriers offer discounts. Ask for them when you’re shopping,” says Hunter.

However, Hunter offers one caveat: “Some of the companies that offer the highest discounts have the highest rates, so don’t get too focused on discounts. Some high-priced companies offer high discounts, but at the end of the day you’re still paying more.”

9. Avoid lapses in coverage. Even a brief lapse in coverage can disqualify you from receiving discounts. “They use lapses in coverage to increase your premium,” says Hunter. Pay your insurance bills on time. And if you’re switching carriers, make sure not to quit your previous carrier until the new coverage takes effect.

10. Think twice about paying in installments. Most carriers charge an administration fee to pay in installments. One carrier surveyed levied a $10 charge per installment to those who opted to break up their bill. The solution? Pay your premium up front, if at all possible.

Of course, this charge is more significant for those with small premiums. If you’ve got a king-sized premium and feel you’d get a better rate of return by investing your funds elsewhere instead of paying up front, then the installment route will probably best suit your needs.

Dealing With Special Auto Insurance Situations

You must be knowing what auto insurance is meant for. Consumers seek auto insurance for their vehicles, may be a car, truck and the like. And what do you think it makes them do this. Well, they protect their vehicles against mishaps, robbery and any further loss incurred whatsoever. Whats more auto insurance not only covers the insured party, the insured vehicle but even the third parties. You will find different policies speaking of different circumstances that determine the things to be covered.

Auto insurance has indeed become a must in today’s context. Having a vehicle and doing away with auto insurance is like food without salt. No wonder, companies big or small are pouring in from all corners to make business out of it. When it comes to categorizing auto insurance, there are two types. As mentioned earlier, policies are poised according to the requirements of the policy buyers. Like for instance, there are policies that rope in bodily injury liability, property damage liability, medical payments, and collision and comprehension coverage due to the corporeal damage of the concerned vehicle.

Auto insurance policy is classified into five parts

• The first thing that comes into being is declarations. All that this part of the policy holds is the personal information regarding the driver. Going into details, it must contain their name and address, vehicle ID number, make and model of the vehicle, policy number, duration and so forth. Moreover, it is pointed out here as to which type of coverage you have settled for and not to mention your policy confines and deductibles. Always remember that the insurance may go void if the information provided by you is untrue.

• Next comes, coverage plans where the coverage confines such as liability, medical, collision and comprehensive are talked about. The fact of the matter is that this part of the policy delineates what you are deemed to get in return out of your insurance company.

• What follows after that, is exclusions. This part gives a concise picture about the respective items uncovered as a result of your policies restrictions. You will certainly know all that you need to know about your claim. And if that is not enough then you can also make necessary rectifications in the policy much to your convenience.

• The fourth part in the policy is purely concerned with legality such as the legal obligations of the insurer as well as the insured. That is not the end of it; it also houses premium payment obligations, direction to settle disputes and ways to filing a claim.

• Finally, the policy arrives to the fifth part of a definitions. As the name suggests, here the terms and the privileges of the policyholder and the company are clearly delineated.

Auto insurance for vehicles on road is obligatory in quite a number of countries. The consequences of driving without insurance are not very pleasant. God forbid, if you are caught up in an accident, you will be legally accountable. You will not only have to foot the bill for the damages but also fall prey to a hefty financial penalty if you were driving without auto insurance. And lets not mention further dire consequences where your driver’s license may even be freezed.There are certain things that you should invariably keep in mind. You can avail an insurance coverage for your new automobile in the same lines if you already have an existing policy. But remember this has a limit of 14 days from the date of purchase. Did you ever know that getting married could affect your insurance rates? All that is required is the driving license of your spouse and the inclusion of her name in the policy. There are other factors also that have an influence on your existing insurance rates. And these could be anything from your age to driving experience and not to mention the duration of being a licensed driver. However shifting to a different province would bring some legal formalities into play.

In some cases where you are not able to pay for a new car, may go in for leasing and financing for that matter. But you will have to know whether it impinges on your insurance or not. All you need to do is go through your car loan or leasing agreement. What it does is that it caters particulars about the auto insurance coverage that financial institution necessitates. Mind you, a lot of financial institutions stress on liability limits, which easily tops your state’s least coverage necessities.

Again, having auto insurance coverage for your leased auto would imply that insurance companies would pay only the actual cash value instead of the value equivalent to the vehicle’s replacement cost. The above said actual cash value would take account of the market value factoring in age, mileage, and wearing away for a vehicle.

When proving your claim comes to question, make sure that you are ready with all the citations. Now, the adjuster will jot down the written statement from you about the specifics and location of the accident, the names of witnesses and any medical treatment you received to say the least. And beyond all of that, you are also required to produce copies of every one of your medical bills, a medical account from your medical doctor and evidence of all other expenses. On top of that you may even be asked to sign an authorization. The thing is, all of these papers shore up your claim for special damages.

And once you are ready with the documentation, you will just be a few steps away from assessing your claim. Feel free to take in as much of time you think best to settle your claim or file a lawsuit. However, if you are puzzled as to what to demand, get hold of an auto accident attorney for proper guidance. Now, if you think that your claim has a strong hold then draft a acœdemand letters to the insurance company stating the liability condition, the expenses that you had to do with, the medical treatments, the wounds and the rest of information that deserves a place.

Auto Insurance : An Introduction

With the rapid increase in vehicles, road accidents involving such vehicles have also increased. While driving, you may cause injury to any person or damage his property that needs to be compensated. The insurance policy provides you the cover to meet this liability. Depending on the type of policy taken, it can also reimburse the expense incurred on repairing the damage caused to your vehicle.

What is insured ?

Any light motor vehicle used for social, domestic and pleasure purposes and for the insurer’s business.

Insured against what risks?

Loss or damage by accident, fire, lightning, self ignition, external explosion, burglary, housebreaking or theft, malicious act. Riot and strike; terrorism; earthquake; flood, cyclone and inundation whilst in transit by rail, road, air, elevator, lift. Perils under can be deleted and a discount in premium availed. Liability for third party injury/death, third party property and liability to paid driver.

On payment of appropriate additional premium, loss/damage to electrical/electronic accessories, PA cover for drivers, insured or any named person, unnamed passengers can also be taken. Certain discounts in premia are also available.

Who can insure?
Individuals and corporate owners of the private cars and the financier of the car having insurable interest in it. What will policy pay and how much?

Own Damage: Actual amount spent for repairs/replacement subject to depreciation and sum insured as per survey report. Garaging and towing charges – up to Rs 1000/- Damage to tyres (when vehicle is also damaged) – 50 % of cost of replacement In case of total loss, market value at the time of loss or sum insured whichever is less.

Act Liability: Death or bodily injury to third parties – Unlimited Death or bodily injury to any person carried in the car provided they are not insured employees and not carried for hire or reward – Unlimited Liability to paid driver – As per W. C. Act Third party property damage – up to Rs 6000/- All costs and expenses incurred with company’s written consent In case of death of the Insured/any person entitled to indemnity for a liability incurred under this Policy,his personal representative will be indemnified ,as in the case of insured,if he observes all conditions as the insured himself.

When will policy not pay?

Consequential loss; depreciation; wear and tear; mechanical and electrical breakdown; failure or breakage. When vehicle is used outside the geographical area; when used contrary to limitation as to use; driven by a person other than the driver stated in driver’s clause.

Five Ways to Slash Car Insurance Costs

Here are my five tips on how to get the best deal on your Car Insurance.

1. Go online.

There are lots of web sites that give you insurance quotes online, saving you the time of calling an agent. Some of them even give quotes from multiple companies. Be prepared to fill in some electronic forms with information about your car, the coverage you want, where you live, and other information.

Some of the sites generate a quote on the spot; some of them have an agent call you with the results. Some of the quotes you get may be higher than what you’re already paying. That was Liz’s experience with her first response. “Don’t give up,” I told her. “Go on to the next site. Get as many quotes as you can.”

2. Talk to your agent.

“OK, David,” some of you might be saying, “I went online and I saved lots of money, but I like my friendly neighborhood agent. I don’t want to switch.” Well, you may not have to. Take the best quote you got online to your current agent and see if he or she can match or beat it.

Insurance companies come out with new products, new rate structures, and new discounts all the time. You may be able to get just as good a rate from your current insurer as you could by switching. “That’s great,” you say, “but why didn’t my agent tell me about these new rates before?” Simple: Because you didn’t ask.

3. Take advantage of other ways to save money.

There are lots of them:

• Buy home insurance and car insurance from one source. Some companies that sell both homeowners and auto insurance give you a 5 to 15 percent discount if you buy at least two policies from them. This not only saves you money, it simplifies your life: You pay one bill to one company every month instead of two separate ones, and you deal with just one agent for claims.
• Increase your deductible. Increasing your deductible from $200 to $500 can reduce the cost of your premium by 15 to 30 percent; a $1,000 deductible could save you up to 40 percent or more.

• Don’t over-insure. Many experts suggest that liability limits of $50,000 for one person injured in an accident, $100,000 for all people injured in an accident, and $25,000 for property damage liability (called 50/100/25) is sufficient. And before you buy other add-ons such as medical coverage, check to make sure you’re not just duplicating coverage you already have.
• Ask about discounts. If you’ve taken driver’s education, have had no accidents or tickets for three years or more, or own cars with advanced safety devices or antitheft alarms, you may be eligible for a discount. Your kids might, too, if they have B averages or better in school and are students under the age of 21.There’s even a discount for people who drive less than 7,500 miles per year. If you belong to certain organizations — college sororities, credit unions, or motoring clubs, for example — you may be eligible for special rates. Some companies even offer discounts to certain professionals, including engineers and teachers.
• Keep your credit record clean. A low credit score can raise your insurance premiums.
• Pay automatically. Some insurance companies charge $5 or more per payment for mailed payments, but nothing for automatically deducted payments.

4. Before buying a new car, see what it’ll cost to insure.

Some of you are paying more per month for your car insurance than you are for your car payment. That’s because many of us spend 100 hours buying a car — researching prices, options, discounts, and rebates — but no time at all buying car insurance. We just call up our agent after we’ve already bought the car and pay whatever they quote us.

The fact is, some cars cost a lot more to insure than others because they’re more likely to be stolen, are more expensive to repair, are statistically more likely to be involved in accidents, or a combination of the three.

Muscle and luxury cars typically cost the most to insure: the hyper-powerful Dodge Viper was the most expensive mass-market production car to insure in 2004, according to progressive; the Cadillac Escalade tops the list of cars most likely to be stolen – a fact also reflected by high premiums.

5. Keep your driving record clean.

Whether you’re a brand-new driver or have years of experience, your driving record has a huge effect on your insurance. Having just one accident can increase your rates by up to 40 percent! Moving violations, and in some cases even parking tickets, can also have an adverse effect, and the higher rate typically lasts for three years.

Conversely, if you’re a safe driver with a clean record for the past three to six years, you may qualify for an additional 5 to 10 percent discount. So drive carefully — it pays!