Tag Archives: Car insurance

Common Auto Insurance Questions for Households

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Common Auto Insurance Questions for Households

There are many questions for households need to consider before purchasing auto insurance. Even with a load of information available on the net, sometimes it’s best to wise up and ask the following questions directly to your insurance agent; after all, not all agencies will do things the exact same way.

Are Minimum Limits Adequate?

While every situation is unique and every individual needs to decide the best route to take for specific situations, minimum limits do nothing more than satisfying the basic requirements. For some people who is enough, and for other people, it is important to have more coverage.

While you might think that $25,000 sounds like a lot of money, if you get into a multiple care pileup, your limit might be exhausted before you are even done with the second car. When you consider some of the car insurance states that have minimum limits as low as $15,000 as listed by Cars.com, it’s hard to truly feel the security of insurance coverage with a measly minimum limit in place.

Do I Want My Teen on My Policy?

This question comes up a lot, and the short answer is: it depends. On one hand, you could have a teen who has no experience, isn’t eligible for a good grades discounts, and drives their own brand new car. In this case, adding your team would be extremely costly.

On the other hand, your teen could wind up not having their own car, so they are only insured for liability. You could also make them take a driver’s safety course in addition to making them work harder toward a good grades discount. And if the car they do occasionally drive is used with great safety features, they’ll be much cheaper (while still expensive overall) to add to your policy.

If you want to crunch some numbers yourself without getting on the phone to talk to an agent, take advantage of sites like CoverHound, which streamline the comparing car insurance quotes process. Simply input different scenarios into their quote generator to know how you can save the most money.

Do GPS Tracking Systems Work?

In short, GPS tracking systems work well. Even though every company is coming out with their own version, and even though many are frightened about the prospect of giving up their privacy, this technology can actually wind up tracking your driving behavior and giving you a very strong discount if you prove that you practice safe driving habits. For the most part, the only things that the car systems will track is braking and accelerating behavior, length of drives, the time of day that you drive, and how often you drive. All of these things can make your rates go down, and according to Marketplace, it is already happening for many people. The point is when you get a car insurance rate you are paying what an average driver would pay. However, you just need to show that your driving would put you in a class that is better than average.

Does It Really Make Sense to Bundle?

In almost every case for this question, the answer is yes. You need to simply think about the idea of administrative costs and the amount of time it would take you to call two separate companies, write out two separate checks, file the paperwork for two separate policies, and so on. Then, when you think about the time it would take to combine that all into one task and one policy, you can see why companies encourage bundling. They can save on administrative tasks so that you can save on your overall premium payments. Everybody wins.

There are always questions to ask, and chances are good that there will be many more down the line as well. The important thing to do is to take the time and look into what you can save just by doing certain things. Insurance is a bit confusing, but you can also save a lot of money if you use the right resources.

Thanks,

Chase

Unique Ways to Save Money on Car Insurance

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Car insurance is a very important requirement and is necessary to have if you are to planning on legally drive on the roads in the United States.  Currently, numerous car insurance schemes from various insurers are available on the market.  Such schemes usually vary according to the insurance company.  Sometimes, such insurance policies are too heavy on our pockets and you soon realize that you are spending too much money on your car insurance.

Good Reason for Car Insurance

 

Here we are discussing ways to reduce the cost involved:

1. Go with the right company– It is very important to choose a reliable and well-known insurance company for your car insurance.  By choosing a cheaper insurance company, you may think that you are saving some money, but that saved money is swallowed up in some other way or by the other insurance company if you are in an accident and not vigilant.  Therefore, it is best to first compare the deals and ask for free quotes from many carriers and figure the ideal policy for yourself.

2. Choose the correct policy – You can definitely choose a suitable policy by comparing auto insurance quotes online.  You should avoid policies  that demand extra charges for unnecessary coverage options.  You should consider the damage that can happen to your car and health, then choose the appropriate policy.  Make sure you have enough coverage for you medical expenses and the other parties if you cause the accident!

3. Opt for a higher deductible – Though it may not may any sense initially, but when you opt for higher deductibles, you can definitely save a good chuck of your money over a few years.  Now if you know you are a horrible driver (check your records if you have any) then don’t get a high deductible!  But if you are like me, consider getting a deductible as high as $500 or $1,000.

When you sign up, the insurance company will offer you numerous options for deductible.  Though you may choose the lowest option as it may seem beneficial but in reality the higher the deductible the more beneficial it is for you in the form of a lower insurance payment.  You should keep in mind that the deductible significantly influences your premium.  Therefore, when you choose a low deductible, your monthly payment will be significantly higher.  On the other hand,  choosing a higher deductible will significantly reduce the monthly payment and would save you a good amount of money in the end.

4. Opt for additional GAP – First, what is GAP Insurance?  It’s insurance that covers what traditional car insurance doesn’t!  GAP insurance is good if you have an availed loan on your car.  An availed loan covers the actual cash value and the loan amount that is due, in the event of accident, fire and so on.  Insurance companies determine the ACV (Actual Cash Value) of your damaged car at a much lower value than the retail value that you initially bought your car for, and so you would still be left with a huge amount owed towards your loan.  GAP insurance covers this difference.  Sometimes, the GAP insurance provider may also pay your deductible resulting in considerable benefit to you.

5. Search for new deals from insurance companies every year or every few years!  The payment keep creeping upward each year.  So it pays to shop around every so often!  You’d be surprised how much you can save!

6.  Combine Housing and Car Insurance!  If you combine both of these insurance types, the company that provides both will many times give you a special discount.  This makes it a win-win for both you and the insurance company!

This guest post was provided by Steve.

Thanks,

MR

 

How To Get Cheaper Auto Insurance

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Blue Truck

Get cheaper car insurance

How to get cheaper auto insurance 

Auto insurance costs us hundreds of $ every year, and it can often be very expensive. However, there are some simple things we can do to try and get it cheaper. To get a cheaper insurance policy, you need to first identify what sort of insurance policy you need for your vehicle, once you have this in mind, you can start searching for cheaper policies. Here are a few simple tips: 

Decide on the type of coverage you need 

Saving money on your auto insurance could be as simple as deciding on the type of policy you need. For example, if your vehicle is only worth a few hundred dollars, is there much point in you purchasing full cover? This is just something you should consider. 

Compare different insurance providers 

Comparing as many insurance policies as possible gives you the best possible chance of finding the best deal for you; it also gives you a great view of the wider options available. Using a price comparison website is the best way to compare a lot of quotes; they basically do the hard work for you so you don’t have to. Be sure to check what each quote is offering before making a final decision, check the level of insurance and the level of deductibles and adjust accordingly. 

Are there extras included in the policy? 

When you purchase auto insurance there are sometimes extras that are included in the policy. These extras sometimes include health or legal cover, but do you really need them? If you already have health or legal cover, then you should try and get them removed from your policy, this will reduce the cost of the policy as a whole.   

Have you considered higher deductibles?  

By requesting higher deductibles in your insurance policy does bring the cost of your insurance down substantially. If you raise your deductible amount from say $150 to $300 you could typically save around 10% on your full coverage. The higher your deductible amount the higher the % you save will be, however, you have to remember that if you need to make a claim then you will have to pay the deductible amount before your policy comes into action. 

See what special offers are available 

When people think about auto insurance, many people don’t think about special offers, but as a matter of fact, there are a lot of special offers currently available. For example, if you have two vehicles at home have you considered a multi car policy? They offer fantastic discounts for people who have more than one vehicle. There are also special offers for young drivers who are just learning to drive. You can be rewarded for good grades in school by getting a discount percentage off your insurance policy. There are plenty of special offers available; you just have to find the offer that suits your own circumstances. 

Have you checked your credit record? 

Maintaining a good credit record is a good way to save money on your auto insurance. Insurance providers often look at your credit record when you make an application, so maintaining a good record tells the insurance provider that you are a reliable customer. Keep your record clean by making any regular payments on time and try not to get yourself in to debt. 

I hope these simple tips put you on the right path to getting cheaper auto insurance, remember that every little bit of money you save helps. 

This article was provided by Andreas Nicolaides, a personal finance author at UK-based MoneySupermarket.com.