Car Insurance Tips
Here are some Car Insurance Tips to get you started on purchasing the right form of Car Insurance at an affordable rate.
1. Shop Around for Car Insurance
Prices vary from company to company, so it pays to shop around for car insurance. Get at least three car insurance price quotes. You can call car insurance companies directly or access car insurance information on the Internet. Your state car insurance department may also provide comparisons of prices charged by major car insurers.
You buy car insurance to protect you financially and provide peace of mind. It's important to pick a car insurance company that is financially stable. Check the financial health of car insurance companies with rating companies such as A.M. Best (ambest.com) and Standard & Poor’s (standardandpoors.com) and consult consumer magazines.
Get car insurance quotes from different types of car insurance companies. Some sell through their own agents. These agencies have the same name as the car insurance company. Some sell through independent agents who offer policies from several car insurance companies. Others do not use agents. They sell car insurance directly to consumers over the phone or via the Internet.
Don't shop price alone. Ask friends and relatives for their recommendations. Contact your state car insurance department to find out whether they provide car insurance information on consumer complaints by company. Pick an agent or car insurance company representative that takes the time to answer your questions. You can use the checklist at the end of this guide to help you compare car insurance quotes from insurers and on the same coverage.
2. Before You Buy a Car, Compare Car Insurance Costs
Before you buy a new or used car, check into car insurance costs. 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. Many car insurers offer discounts for features that reduce the risk of injuries or theft. These include daytime running lights and anti-theft devices. To help you decide what car to buy, you can get information on car insurance from the Insurance Institute for Highway Safety (iihs.org).
3. Ask for Higher Deductibles on Car Insurance
Deductibles are what you pay before your car insurance policy kicks in. By requesting higher deductibles, you can lower your car insurance costs substantially. For example, 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.
4. Reduce Car Insurance Coverage on Older Cars
Consider dropping collision and/or comprehensive car insurance 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 (kbb.com). Review your coverage at renewal time to make sure your car insurance needs haven’t changed.
5. Buy your Homeowners and Auto Coverage from the Same Insurer
Many car insurers will give you a break if you buy two or more types of car insurance. You may also get a reduction if you have more than one vehicle insured with the same insurance company. Some insurers reduce the rates for long-time customers. But it still makes sense to shop around! You may save money buying from different car insurance companies, compared with a multi-policy discount.
6. Maintain a Good Credit Record
Establishing a solid credit history can cut your car insurance costs. Insurers are increasingly using credit information to price auto insurance policies. To protect your credit standing, pay your bills on time, don't obtain more credit than you need and keep your credit balances as low as possible. Check your credit record on a regular basis and have any errors corrected promptly so that your record remains accurate.
You can obtain a free credit report (without the actual numerical score) from www.annualcreditreport.com starting December 1st, 2004 in many Western States. Other states will be added in the future.
7. Take Advantage of Low Mileage Discounts
Some car insurance companies offer discounts to motorists who drive a lower than average number of miles a year. Low mileage discounts can also apply to drivers who car pool to work. Car pooling not only saves YOU money on insurance, but it also saves on the wear and tear of the vehicle, not to mention the ENVIRONMENT.
8. Ask about Group Car Insurance
Some car insurance companies offer reductions to drivers who get car insurance through a group plan from their employers, through professional, business and alumni groups, or other associations. Ask your employer and inquire with groups or clubs you are a member of to see if this is possible. The discounts could be dramatic in some cases, such as members of the military or police forces.
9. Seek Out Other Car Insurance Discounts
Companies offer car insurance discounts to policyholders who have not had any accidents or moving violations for a number of years. You may also get a car insurance discount if you take a defensive driving course. If there is a young driver on the policy who is a good student, has taken a drivers education course, or is at a college out of the area without a car, you may also qualify for a lower rate.
When you comparison shop for car insurance, inquire about discounts for the following:*
[ ] $500 deductible
[ ] $1,000 deductible
[ ] More than 1 car
[ ] No Accidents in 3 Years
[ ] No Moving Violations in 3 Years
[ ] Driver Training Courses
[ ] Defensive Driving Courses
[ ] Anti-Theft Devices
[ ] Low Annual Mileage
[ ] Air Bags
[ ] Anti-Lock Brakes
[ ] Daytime Running Lights
[ ] Student Drivers with Good Grades
[ ] Auto and Homeowners Coverage with the Same Company
[ ] College Students away from Home
[ ] Long-Time Customer
[ ] Other Discounts
The key to savings is not the discounts, but the final price. A car insurance company that offers few discounts may still have a lower overall price.
*The discounts listed may not be available in all states or from all car insurance insurance companies.
For more information, call the National Insurance Consumer Helpline (NICH) at 1-800-942-4242
Thank you for visiting my car insurance blog. I hope you found the information on car and auto insurance you were looking for. Visit again for any car insurance information you need.
3 Comments:
Thanks for great info!
Nice site - good info! I have also found very helpful info at http://FindMyInsuranceNow.com
Great info!!! The checklist is good.
I also found a good site http://www.foranu.com
ForAnu - Want to know how much others pay for car insurance?
Foranu is collaboration driven free service where users enter their car insurance data and users can search others car insurance data. This lets users save time and money in finding cheapest car insurance rate.
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