Posts Tagged ‘Credit Score’
1. Raise your deductible.
A higher deductible on collision and comprehensive coverage can lower your auto insurance rates. For example, increasing your deductible from $200 to $500 could cut your collision cost by as much as 30%. Since the average annual premium is $687, this can save you $206 per year.
2. Drop collision and/or comprehensive coverage on older cars.
If your car is declared a total loss, you will receive the cash value. If your car is 5 years old or older, it may make sense to cancel the collision and/or comprehensive portion of your policy and bank the savings.
3. Avoid duplicate medical coverage.
If you have adequate health insurance, you may be paying for duplicate medical coverage in your auto insurance rates. In some states, eliminating personal injury protection (PIP) can lower your premium by up to 40%.
4. Drive a “Low-Profile” car.
The auto insurance rates are much higher for cars that are expensive to repair, or are favorite targets for thieves. Before buying a car, determine the auto insurance rates.
5. Drive less.
Some auto insurance companies offer cheap auto insurance quotes to motorists who drive less than a predetermined number of miles a year. Consider using public transportation, a carpool or vanpool to commute to work.
6. Ask for a multi-policy discount.
Some insurance companies give a discount if you have your homeowner policy with them also.
7. Ask for a discount based on your credit score.
Some auto insurance companies use the credit score to establish premiums. If you have a high credit score, ask for a discount.
8. Compare auto insurance rates.
When shopping for the cheapest auto insurance, you will find that prices for the same coverage can vary by hundreds of dollars. So, it pays to compare auto insurance rates.
Get free auto insurance quotes at http://www.howtocutyourexpenses.com
With over 20 years of experience as a personal financial educator and counselor, Vernon Williams has developed in depth knowledge of what it takes to achieve financial success. Today, he is a sought after trainer and speaker by organizations from both the public and private sector. He is the author of 425 Ways to Stretch Your $$$$ and 3 Rules that Guarantee Financial Success. Go to http://www.howtocutyourexpenses.com for money-saying tips.
Vernon Williams
http://www.articlesbase.com/insurance-articles/low-cost-auto-insurance-8-ways-to-cut-expenses-692601.html
Plenty of us believe that we have adequate amount of car insurance coverage, regularly renewing our policies as they come due without giving much though to what our insurance provides. It only is when we’re in an accident or make the decision to switch to another carrier do we acquaint ourselves with what we have, with the former yielding unpleasant surprises for some drivers.
For one thing, liability, comprehensive, collision, uninsured motorist coverage, deductibles, and other language makes it difficult for some drivers to figure out what coverage they have. Include the limits of your coverage, $100K, $300K, $50K and how that coverage works and most of us have no clear understanding of what insurance coverage we have.
Frank N. Darras, who is known as America’s top insurance lawyer, offers some practical advice about insurance, “Make sure you are covered for any accident that could put you and yours in the poor house. Raise your limits on all the coverage you can afford and lower your premiums by raising your deductibles. If your car is older, why carry a low deductible on comprehensive insurance which pays for fire, wind, hail and glass breakage?”
Darras says, “Carriers also look at your age, driving record and the make and model of your car. Where you live plays an important role in determining premium. If you live in a nice neighborhood, there generally is less congestion, which means fewer accidents and probably not as many thefts. Most carriers want a three year history of how many tickets you have had and the accidents you have been in as part of the premium equation. The kind of work you do also factors into the premium equation. Do boring safe work and you will pay lower premiums.” “Finally, a high credit score can lower your premiums. Carriers believe the more responsible you are about staying current on your bills will translate into responsible driving.”
Darras offers these money saving tips:
– If you get a ticket, fight them or go to traffic school so they don’t stay on your record and cause your premiums to go through the roof
– Cover your teenagers on your policy so they are not the primary driver on an expensive car. By covering your kids on your policy you can take advantage of your insurance carrier’s multi-car discount as well
– If you get in a minor accident and damage is less than $500, see if you can pay the other driver outside your insurance to prevent your rates from skyrocketing
– At renewal time, check your premiums against the market, make sure you are receiving all of your discounts, like the good student and customer loyalty discounts
– Pay your bills on time if you can, credit scores count big in the premium mix
– Timely premium payments will also lower your underwriting risks and future rates
– Boost your uninsured motorist coverage. For about $100 more a year, you can have uninsured motorist coverage of at least $100,000. Remember, uninsured motorist coverage is protecting you if the other driver has none. When was the last time you went to the emergency room and were out of work for a month when your losses weren’t more than 25,000?
– If your car is older than 5 years, drop the comprehensive coverage, if it is older than 12 years, drop the collision
“Always keep a disposable camera in your glove compartment. If you are in an accident, make sure you take photos before any vehicles are moved. Minutes after the accident, the story will change, so make sure you have pictures,” says Darras.
Clearly, in these days of financial pressures, following advice shared by Darras and others can save you a lot of money. Auto insurance isn’t a water cooler topic but it is a conversation that needs to be started especially as we begin a new year.
Matthew C. Keegan
http://www.articlesbase.com/cars-articles/when-it-comes-to-auto-insurance-being-street-smart-helps-704943.html
Insurance rates continue to climb as disasters such as floods, wildfires, and hurricanes are factored in. Rate increases that are double, even triple the cost of living are common, putting added pressure on cash strapped families everywhere. Fortunately, you can get a handle on your insurance costs by following these important money saving tips.
Combine Various Policies. If you own a home and you own a vehicle then buy your insurance from the same insurance business. Some insurance companies recompense customers who choose to package their various insurance policies, by offering discounts as high as ten or fifteen percent.
Refrain From Poor Habits. Smoking, drinking, taking illicit drugs can work against you. If you live “clean” make certain your insurance broker knows this. Your rate will be reduced correspondingly with your good health report.
Reduce Your Deductibles. Maybe a $200 home insurance deduction is too low. If you can manage a deductible of $500 or $1000 you can significantly reduce your premium. You’ll pay more if a situation arises, but how often do you file a claim anyway?
Cover Your Small Losses. If you are considering what will likely be a small claim, give thought to not submitting this information to the insurance company. Claims made by you, whether small or large, can push up your rates or even cause your policy to be cancelled.
Special Discounts. Depending on your age, driving record, even your credit score, there are special discounts you can take that will reduce your premiums. If you aren’t receiving discounts…ask!
Scrutinize Your Policy. Every policy is correct, isn’t it? Don’t bet on it! A wrong zip code could have your insurer thinking that you live on the wrong side of the tracks…literally! Rates can fluctuate from neighborhood to neighborhood; make certain that your rates are in line with what your neighbors pay.
Pay It All Now. Save on your premiums by paying the entire invoice up front instead of monthly or quarterly. Insurers will add on an extra fee to your premium if you choose to spread out your payments over time.
You could also save yourself money by staying with one insurer as most will reward regular customers with loyalty discounts. Furthermore, it could benefit you to have an alarm installed in your car or in your home, especially if you reside in a high crime area or visit neighborhoods where your car could be vandalized.
Adamheist
http://www.articlesbase.com/business-articles/save-big-bucks-on-insurance-78786.html
Millions of Americans have credit reports that reflect a less than ideal credit history. If you fall into this category, you’ll soon find that the cost of poor credit can penetrate deeply into your life. You may not be able to qualify for a small personal loan, secured credit card or computer loan. And it doesn’t end there. Lenders, employers, landlords, insurance companies, and other organizations often look at your credit report in order to evaluate your financial status.
Your credit worthiness is reflected by how well you manage debt and how often you make on-time payments. Every time you apply for credit to purchase high-value items such as a house or car, your credit history gets thoroughly reviewed. Most financial institutions consider your credit scores as a benchmark to determine credit worthiness. They take this figure seriously, and it is often the most significant factor in their decision-making process.
If you have a poor credit history or a low credit rating, a business may deny you the credit you request. Bad credit scores can take away your chances of getting approved for a mortgage, car loan, personal loan, or even a credit card. If you are able to get a loan, you may have to accept unfavorable terms and conditions. Some credit card companies might issue you a card, but only grant you a small spending limit.
When lenders take on customers with lower credit ratings, they often charge higher interest rates. This is done in order to compensate for the higher risk a borrower holds on account of failing to pay monthly installments, late payments, or defaulting entirely. Additionally, lower credit scores may result in a tight payment schedule.
The lending industry charges different rates, based on the health of your credit score. From credit cards to mortgage loans, people with poor credit end up paying much more over time than those with outstanding credit. Let’s consider a few examples of the cost of bad credit with respect to various products.
Mortgage Loans
A mortgage often involves a large amount of money, so even a 0.5 percent interest rate variation can become significant. You could end up paying around $5,000 more on a 15-year mortgage, for instance.
Auto Loans
The rate you’ll receive on a car loan can vary greatly, depending on your credit rating. Say two people apply for a loan of $18,000 to purchase identical cars from the same dealer, and plan to repay the loan in 3 years. The only difference is their credit rating: Person X has excellent credit, while Person Y has bad credit. Person Y will attract a higher interest rate. The monthly installment and total payout for Person X might be $532.07 and $19,154.52, respectively. However, Person Y’s monthly installment and total payout could come out to be $677.69 (145.62 more than Person X) and $24,396.84, respectively. So the person with bad credit will pay approximately $5,242 more for the very same car.
Even if your credit is not terribly low and you qualify for a loan of 13 percent, you would pay approximately $2,679 more for the same car purchase by Person X.
Credit Cards
When customers with excellent credit ratings apply online for a credit card, they are usually approved for the card within minutes. They might receive an attractive interest rate, such as 9 percent, and have no annual fee.
Those with poor credit, however, will face more difficulties in the process. It may be hard to get their application approved of, and even then a high interest rate might be attached. Receiving a rate between 19 and 24 percent is common. An annual fee ranging from $200 to $450 may also be included. The magnitude of the extra cost would depend on the monthly balance carried. Overall, however, the person with bad credit will often end up paying at least twice as much as the person with good credit.
The above examples are just a few of the many ways that bad credit can cost you. In reality, the cost difference between good and poor credit can be even greater. More so, the cost of repairing bad credit also tends to be expensive. Think about it: can you really afford to keep your eyes off of your credit score?
Stephanie Andrews
http://www.articlesbase.com/finance-articles/the-cost-of-poor-credit-707963.html
Obtaining online auto insurance today can be as simple as a click of the mouse. But beware. Some car insurance quotes you might find on the Internet are nothing more than empty promises. Car insurance online can be purchased through agents or directly from the auto insurance company, but you must know how to look for legitimate companies before you get started. Let’s explore the pros and cons of buying your car insurance online.
Convenience and Low Insurance Premiums Two of the major advantages of buying online auto insurance are convenience and low insurance premiums. It’s convenient to be able to go online from the privacy of your own home and compare many auto insurance companies, their policies, and how much they charge for the premium.
You can go to multiple websites owned by different insurance companies, or compare many insurance companies using one insurance quote service. For more details go to www.infozabout.com .This beats driving to or calling multiple insurance companies around town to find the right one. Finding online auto insurance quotes can be as easy as filling out a simple form. You can have your quote in minutes, and you can usually get as many quotes as you want free of charge. Requesting an auto insurance quote online does not affect your credit score, and there’s no obligation to buy the insurance once you receive a quote. Another benefit of securing auto insurance online is you can often find lower premiums. You’re able to compare quotes and policies from a variety of companies, probably many more than those in your hometown.
This enables you to find the best possible policy and a premium to fit your budget. Disadvantages of Buying Car Insurance Online Though the benefits can be many, there are a few disadvantages to buying online auto insurance. If working with a company you’re not familiar with, you can’t be absolutely sure that the company is making a legitimate offer until you actually have to make a claim. Some insurance companies appear wonderful on the surface, with very low premiums and a fantastic policy, but they offer terrible, slow claims processing services. Or, they might refuse claims for items that were originally listed in your policy.
This can be frustrating and take up much of your time and energy when you need a claim to be processed right away. That’s why it is always a good idea to check out any unfamiliar companies with the Better Business Bureau (Online or Off-line). If you do encounter problems with your auto insurance, you will not be able to visit a physical location for the business unless there’s a branch in your local area. For more details go to www.100computertips.com .You’ll have to rely on phone calls, mail, or email for customer service needs. Another disadvantage is some companies may not offer insurance coverage for your particular state. You may have to sift through these while searching for online auto insurance to find the right one for your area. Luckily, there are companies that provide detailed search features to enable you to search by coverage, price quote, and state.
This makes finding the right online auto insurance company online much easier. As you can see, there are pros and cons for buying online auto insurance, as there are with any other product. But the good news is you can shop for online auto insurance and check out all that’s available without making a commitment until you know it’s the right avenue for you.
deepak.dec2008
http://www.articlesbase.com/automotive-articles/learn-about-pros-and-cons-of-online-auto-insurance-684020.html
Insurance business is leveling the profit of one person with the loss of another and hence insurance companies sell policies with the hope that the policy holder would never make a claim. In reality, most of the clients do not make expensive claims and for that section of people, car insurance would prove to be a burden that cannot be avoided. So, naturally such people tend to lower the cost of insurance and try to find ways and means of achieving it.
Of course, there are a number of ideas through which low cost insurance is feasible. When the deductible is low, the premium amounts are lowered and make insurance cost low. There are certain companies that offer discount on insurance policies if the driver has completed an approved course in driver’s safety. This is encouraged by many insurance companies and helps to lower the cost of car insurance.
When safety equipment like proper safety restraints and air bags are fitted, the car insurance can be lowered and likewise, anti theft devices like locks and alarms also bring down the cost of car insurance. Insurance companies believe that students with good grades would be good drivers, thereby, reducing claim on the policies and hence come forward to reduce the cost of car insurance.
Also, that a person who drives less will not be prone to accidents is a clear fact and insurance companies cash on this fact by offering discount for people who meet certain low mileage requirements and this varies from one company to another. Generally, established and reputed companies do offer low cost car insurance but the lesser known companies offer the lowest. This is done to compete with the giants of the insurance companies and the insurance policy holder can take advantage of it.
Reputed companies have latent extra charges that may not be recognized in the first glance and are borne by people who easily fall prey to these gimmicks, surprisingly. The credit score of a person also plays a role in determining the car insurance rates. People who have bad credit are considered to be of high risk by the insurance companies (probably the companies’ think that the car owner will be thinking about his debts all the time!) and hence low cost car insurance is offered to people with good credit history. So, before getting car insurance, attempts should be made to set right the credit score, if it is not good and the cost of car insurance will fall down automatically.
There would be certain offers during festive seasons or the like when car insurance is offered at low costs. This is the time to exploit and lower the rate of car insurance and several companies can be compared to get the lowest possible rate. There is other lesser trivial ways of reducing the cost of car insurance like paying the bills annually and avoid the hike which the companies do quite often.
Adam Boulton
http://www.articlesbase.com/cars-articles/an-experts-guide-for-finding-low-cost-car-insurance-premiums-710997.html
Having a bad credit score will cost you a lot more than a higher interest rate for a few loans. It extends into many parts of your financial life.
So many people fail to understand how important their credit is until they try to buy a home or take out a loan. People with bad credit usually know that they will have to pay higher interest rates. But they often don’t realize how deeply they will really be affected.
Let me give you an example. If you have a credit score of 720, you can pretty much expect to get the best rate available. For our example, that is 6%. If you have a credit score that is good, but just not perfect — say 700 — you could expect to find an interest rate of 6.15%. Not a huge difference. But if you have a credit score of 555, which is considered very poor, you can expect to pay approximately 9.6%. This could result in as much as $500 a month more on a mortgage. That’s a lot of money.
In addition to having to pay a higher interest rate, many borrowers with bad credit scores end up paying higher mortgage loan origination fees.
To qualify for the much advertised zero percent of low APR financings offered by many car manufacturers, you must have near perfect credit. If you have poor credit, you will probably have to deal with a sub-prime lender (also known as the no loan is turned down lender). You could pay an interest rate of 25%!
If you already have a bad credit score, a credit card probably isn’t a good idea. But it is one of the ways to rebuild your credit. Be prepared to see interest as high 30%, if you can find a credit card at all. You will probably have to pay annual fees as well. Some people are even asked to pay a set-up fee to even get the card. It is often easier to go with a secured card than try to find an unsecured one.
Most people are unaware of the fact that insurance companies use their credit scores to determine risk. The assumption is that people with lower credit scores are at a higher risk for claims than are those with good credit. A person with good credit could pay as much as 10% less than someone with bad credit. This is seen in life insurance, homeowner’s insurance, auto insurance and other forms of insurance. Your bad credit can cost you hundreds of dollars a year in insurance premiums.
But that isn’t all. You could have to pay a higher deposit to lease or rent an apartment. You could even be turned down for a job. Low credit scores will cost you thousands of extra dollars a year. Take the steps to increase your score. While it isn’t easy and it takes time, it is well worth it.
Martin Lukac
http://www.articlesbase.com/mortgage-articles/what-will-bad-credit-cost-you-83463.html
I noticed someone posted that their auto insurance rates went up since they are unemployed. I have been unemployed since February and my rates stayed the same. I don’t tell the insurance company that I lost my job. How will the insurance company know if I am working or not?
They don’t know if you are employed or not.
It’s not based on employment – it’s based on credit score. Likely, that other person also stopped paying bills.