Tag Archives: Deductibles

Tire Insurance: Myths And Facts About Road Hazard Policies

  By John | May 4, 2010 - 12:08 am | Low Cost Car Insurance
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Insurance—it’s everywhere. One can insure just about anything. Are tires an investment one needs to insure? Tire insurance, also called a road hazard policy, road hazard warranty, or tire reimbursement plan, is a rapidly growing industry in the automotive world.

Tire warranty plans pay in full or in part for the replacement or repair of damaged tires and/or rims from “road hazards.” Road hazards are defined as pot holes, debris, nails, wood, and other hazards found in the road. Curbs, sidewalks, and stone walls are not road hazards. This is an important distinction to consider when deciding if tire insurance is right for you (discussed further ahead).

Tire plans last for a specific period of time and tire wear tread-depth. Some plans last 2-3 years. Others can last 5 years or 60,000 miles. Several plans come with fixed amounts of coverage: $500 per year up to 4 years. Many contracts require three years of law school to comprehend. In terms of tread depth, a tire is usually considered worn out (and thus the plan null and void) at 2/32 to 3/32 of an inch.

Another important distinction is in the type of plan.

Tire reimbursement plans are just what they say. You, the plan holder, will be reimbursed after the claims process is finalized—usually 2-8 weeks. There is an out-of-pocket expense. These plans are often sold by new car dealerships. The prices can range from $300 to $600 dollars.

Road hazard policies operate similarly to reimbursement plans. However, some tire insurance providers, in partnership with the repair facility, may have a direct-pay relationship. Thus, there would be no out-of-pocket expense, except for applicable deductibles, and items not covered in part or in full. These plans are primarily sold by tire dealers and repairshops. The prices range from $10 to $30 per tire. They also can be based on a percentage of the cost of the tire: usually 12% to 15%.

Both types of plans have a number of variables, requiring a magnifying glass to read the fine print. Also, many are pro-rated warranties, covering only a percentage of the cost of the tire based on its wear.

Claims and Coverage:

Depending on the plan, claims are initiated by the repair shop. The process is fairly smooth, although there can be a significant delay from the provider for authorization. This delay may be an hour or an entire weekend. This means that you’ll have to “ok” the tire replacement, and then hope it’s authorized for the full amount, or drive on your spare.

Some plans offer national coverage either among their service facilities or from other repair centers. Claims procedures will vary. Others only provide local coverage, or coverage at the selling facility.

Limitations:

Tire insurance does not mean that everything is covered. Pro-rated warranties are based on the wear and tear of the tire. You may get 75%, 50%, or only 10% coverage depending on the tread-depth. You’ll pay the remainder. While there are plans that offer full coverage, even these have limitations, or they may conflict with a repair shop’s policies.

For example, many plans allow for a maximum of $30 to mount and balance one tire, and a maximum of $15 to repair a tire. However, sport tires often have significantly higher mounting and balancing fees—upwards of $50 per tire—and tire repair prices can exceed $90. There are also discrepancies on the tire and rim prices themselves, which in the end, may have to be supplemented by the service customer.

Although there usually is not an issue with the latter given the competitive market, the service center’s price mark up may be unacceptable to the plan provider. In this case, the service center needs to lower the price or you, the service customer, need to pay the difference—or go somewhere else. This does happen!

Rim Prices and Repairs:

Rim replacement is becoming less frequent. With the high cost of aluminum wheels and sport wheel packages, tire insurers have opted to have them repaired. Repair will only be done if the rim does not hold air. What this means is that even if the rim is warped—enough to cause a vibration and even premature tire wear—they won’t replace it. Rather, they will send it out to be straightened and repaired.

Rims are replaced only if the damage is so extensive that the new tire, when mounted on the rim, won’t hold air. However, even in this case, especially if it’s an expensive sport wheel, they may still attempt to repair it.

Repairing rims is a bad option. While some rim repair is acceptable, badly warped or damaged rims will in no way ever be the same.

Alignments:

If a car hits a road hazard hard enough, such as a pot hole, it’s wise to have the alignment checked. Road hazard policies and tire reimbursement plans do not cover alignments. The service customer will have to pay for this procedure.

Road Hazard Protection Positives:

Some plans include tire rotations, wheel balancing, and nationwide coverage.

Myths:

1) “Can I pop all 4 tires and get a new set of tires?”

You can try. But this type of claim will trigger a number of red flags with the insurer. The policy holder will likely send out adjusters and/or require photographs. You will also have a difficult time explaining how a “road hazard” caused all 4 tire pop.

2) “New tires come with a road hazard warranty.”

New tires do come with a warranty by the tire manufacturer. However, it only covers defects in workmanship. New tire warranties do not cover punctures or damages from external sources. This is why “road hazard” protection is being pushed.

New tires are rarely defective. If there is a problem, it’s usually noticed when balancing the tire. Or, there is a drivability concern such as vibration or noise. If there’s a defect it’s generally caught right away, and the tire swapped out.

3) “It’s so cheap; it’s a no-brainer, right?”

Actually, the experts don’t agree with this statement.

The Economics of Tire Warranties:

An article from the Washington Post by Terence O’Hara explains the economics of extended warranties and purchase protection plans in general. It is quite fitting for road hazard warranties. He writes:

“The decision to buy an extended warranty…defies the recommendations of economists, consumer advocates and product quality experts, who all warn that the plans rarely benefit consumers and are nearly always a waste of money.

‘[Extended warranties or purchase protection plans] make no rational sense,’ Harvard economist David Cutler said. ‘The implied probability [of having an issue with the product] has to be substantially greater than the risk that you can’t afford to fix it or replace it. If you’re buying a $400 item, for the overwhelming number of consumers that level of spending is not a risk you need to insure under any circumstances.’”

In short, road hazard warranties are a waste of money. Don’t insure that which you can afford to replace.

Numbers Game and Slim Chances:

Like all insurance, tire insurance plans are a numbers game. However, this is a game you have a 98% chance of losing. Insider statistics show that the percentage of claims paid out by providers is as low a 2%.

Curbs:

Another interesting note is that a lot of tire damage is caused by curbs. Curb damage is not covered under most road hazard policies. High granite curbs with sharp edges slice through tens of thousands of tires per year.

You Won’t Notice:

Many people don’t even notice tire damage. Other than to see if the tires are holding air, who “really” looks at tires? Tires are subject to a whole host of external influences which cause bubbles, slices and gouges.

Despite the potential dangers of damaged tires, the damage very often does not translate into any noticeable drivability issue. The point is that if you don’t notice any tire damage you can’t benefit from the coverage.

Research Shows:

Those raving about the benefits of a road hazard policy are the actual folks in the industry who stand to benefit from the sale. They’ll argue that it’s so cheap—only $10 to $20 per tire. Even so, for four tires, that’s $80 based on the “possibility,” the “chance,” of damaging a tire that meets the repair/replacement requirement protocols.

Auto Insurance:

If a rim and tire has incurred significant damage, it’s quite likely that other problems have resulted as well. The first is that the vehicle may have been jarred out of alignment. Secondly, hub bearings, front end components: tie rods, spindles, ball joints, and a variety of other components may have sustained damage. In this case, auto insurance, which you are already paying for, will pay for everything—brand new.

Free Road Hazard Warranties:

Many tires come with road hazard warranties FREE. In other words, in an effort to secure retailers, many tire distributors provide service centers FREE road hazard insurance. Some shops pass this on to their tire customers, others sell them. Ask if the tire “comes” with a road hazard protection policy. If not, request that one be provided at no additional charge. It’s worth a shot.

Also, some car manufacturers provide road hazard warranties FREE of charge for 12 months or 12,000 miles. If you’re buying a new car or even used, ask that the dealer provide a complimentary road hazard policy (after all the wheeling and dealing is done, of course), and just before you commit.

“What’s the best road hazard policy?”

Money in “your” bank account.

Theodore Olson
http://www.articlesbase.com/automotive-articles/tire-insurance-myths-and-facts-about-road-hazard-policies-69224.html

Cheap and Flexible Auto Insurance Quotes:

  By John | May 2, 2010 - 2:11 am | Auto Insurance
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One can easily find an auto insurance quote but the challenge lies on obtaining a cheap and flexible auto insurance quotes.  Appropriate knowledge and study on auto insurance can definitely help you to find out the cheap and flexible auto insurance quotes and rates.  There are certain guidelines offered by insurance experts that form a basic requisite of a person while searching for a cheap auto insurance quote.

The online insurance web sites form the best place to find a cheap and flexible auto insurance quote.  The Internet offers the chance for comparison of four or more insurance sites at a time and helps to find the best and cheapest auto insurance quote that is flexible to the applicants.  The comparison web sites therefore form the best method to attain cheap and flexible auto insurance quotes. 

To attain cheap and flexible auto insurance quotes, you need to take care on the details submitted to the insurance company via the online sites.  You are required to fill an online application form with your details as well as the auto details, for which the insurance quote is applied. Fill up the application form completely with appropriate details such as the name, age, address, the distance of annual commuting and the safety features introduced in the auto.  Inappropriate details and incorrect data results in high rate auto insurance quote.  The details determine the availability, the rate as well as the discount allotted with the insurance quotes ideal for you.    

Another important point to attain the cheap and flexible auto insurance quotes is the mode of bargaining.  The cost of automobile insurance at certain times changes to around 200 percentage for similar coverage. You may save dollars annually, if you think you are a good bargainer.  Get the best deal and quote with the help of comparison of insurance sites and insurance companies.  Higher deductibles are always equal to the lower premium insurance.  Therefore, stick on to a higher deductible, if you would wish to access lower auto insurance premium rates.

You can easily access cheap and flexible auto insurance quote if you are married.  The fact is that, if you insure a female on heavy automobile and a male on an auto of lightweight, the cheap auto insurance quote is in your hand.  Installation of safety devices on your auto can further reduce your insurance rates and premiums.  Attain cheap and flexible auto insurance quote and drive your auto and life without any worries.

Alien
http://www.articlesbase.com/insurance-articles/cheap-and-flexible-auto-insurance-quotes-724615.html

When it Comes to Auto Insurance, Being Street Smart Helps

  By John | April 28, 2010 - 3:00 am | Auto Insurance
15 Comments

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

Save Big Bucks On Insurance

  By John | April 24, 2010 - 12:03 am | Low Cost Car Insurance
2 Comments

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

Three Types Of Insurance You Do Not Need

  By John | April 22, 2010 - 1:37 am | Low Cost Car Insurance
2 Comments

Insurance is generally something that you purchase in order to protect you and your family from the potential financial loss caused by a catastrophic event or serious illness.

But there are types of insurance that don’t really provide that peace of mind for you, that are not required, that cost more than you could ever benefit from, and that are best avoided.

Here are 3 types of insurance that you can “just say NO” to.

Life Insurance Sold By Credit Card Companies

Credit card companies will offer you insurance that pays off your credit card balances when you die. If you already have a life insurance policy, either obtained on your own or through your employer, that will do the same thing. Why pay the credit card companies a much higher premium for the same thing?

Rental Car Insurance

When you rent a car, they always ask you if you want auto insurance which will cover you if you are in an accident in the rental car. If you have your own auto insurance, you will most likely not need this. Check with your agent to be sure, but most policies cover you regardless of what car you are driving. Even if your regular policy only offers this coverage by adding a “rider” to your policy, the cost of the rider will most likely be much cheaper than paying the higher per-day charge that the rental agency will charge you.

There are a couple of exceptions to note. If the car rental is for business use, check to see if your employer’s business policy covers you. And if you will be driving outside of the US, your agent can tell you if you will require special coverage.

Unreasonably Low Deductibles

While this is not technically a “type” of insurance, it is an insurance expense that you can do without. A lot of people carry lower deductibles because of the peace of mind it gives them. But how many times do you really need this lower deductible? And nowadays, while you may be required to carry insurance, it is often detrimental if you actually use it!

So if filing a claim will jeopardize your insurance coverage, you may want to only file a claim that you really can’t handle. It makes much more sense to raise your deductible and “self-insure” for the smaller claims, using the savings from your lower premiums.

If you decide to increase your deductibles, be sure to put your saved premium dollars into a savings account so that you can pay for those losses that fall below your increased deductible amount.

Specialty-type coverages, like the ones mentioned here, can usually be covered with another good broad-based policy that you already have. And why are these speciality insurance polices more expensive? It costs more for the insurance companies to administer these policies … so guess who ends up paying for the extra costs?!

SadiePeterson
http://www.articlesbase.com/advice-articles/three-types-of-insurance-you-do-not-need-69508.html

What car insurance would one recommend that’s good and not too expensive?

  By John | January 19, 2010 - 2:27 am | Low Cost Car Insurance
5 Comments

I currently have geico but paying too much and looking for something more of low cost,any ideas?

Having shopped around for insurance, I like Geico.

A simple way of lowering your insurance is to increase your deductibles.

Multi car discounts, Professional affiliations including college alumni will also lower your rates.

If you do decide to go with another company, make sure you are not getting a teaser offer.

is there a way to pay less for car insurance?

  By John | January 16, 2010 - 3:54 pm | Low Cost Car Insurance
9 Comments

i’m planning to buy a car next year.
it will cost around 11000 and i’m planning to downpay 5000.
so 6000 left.
and my dad wants to pay that 6000 with his credit card so he can put the car under liability instead of full coverage.
our family has 2 cars each under my parents’ names.
so what is the best way to lower the insurance for me
i’m 21 yrs old guy no accidents or tickets.
our insurance company said it would be about 1600/yr for me..
is that average?
is there a way to lower the insurance?

best way is to raise the deductibles.. then talk about lowering certain coverages or shopping insurance companies.

How can I get lower car insurance for my old car?

  By John | November 22, 2009 - 7:32 am | Low Cost Car Insurance
7 Comments

I have a 1999 Hyundai Tiburon and it has 150,000 miles. It’s paid for now and I’m paying about $700 6 months full coverage. Is there certain things I should lower the coverage cost?

Let’s look at a few things:

Wholesale value: $1700
Sell it in newspaper $3300.
Dealer sell identical car $5000.

Let’s now assume that the car is paid for, and you have a $500 deductible should something happen to the car and it is a total loss. You’ll get $1200 from your insurance company for the car.

That basically means you are paying $1400 a year to insure a car that the insurance company is only going to give you $1200 on in the case of a total loss.

Making sense to you? Me either.

If your car isn’t paid for, you can reduce your payment by increasing the deductibles. If your car is paid for, consider getting the minimum coverage the law in your state allows and the maximum deductibles. This is also assuming you have the means to get another car should you lose this one.

Lowering the Cost of your Car Insurance

  By John | October 24, 2009 - 1:22 pm | Low Cost Car Insurance
4 Comments

Nowadays, there’s no thing that can be considered as “free.” Every little thing has an amount that you should pay in terms of money or through other ways if you wish to have or own that particular thing. You will find it a hard time to save money for your future use.

Like in an auto insurance, it is not unusual if this cost $12,000 a year or even higher. But actually, it doesn’t necessarily have to cost this much. Though it might take a bit of work, it is possible to cut that insurance bill by a substantial amount.

The first thing is to shop around or get at least three price quotes. There are many way to get quotes, like calling via telephone, getting the quotes directly via internet, or calling your state insurance department as it may be able to provide you with a comparison of prices charged by the major carriers in your state.

The second one is to check insurance cost before buying a car. It is because insurance premiums are based on the cost, the cost to repair it, the overall safety record and the likelihood of its being stolen. You can often get a discount from insurers if the car you are buying has a great safety record or if it is designed to reduce the risk of death.

Increase your deductible. Higher deductibles will lower your insurance cost substantially.

Another way is to reduce the coverage on older cars. If you have one or more old cars, consider dropping the collision coverage entirely for it may not be worth if your car is worth ten time the premium. By contacting your bank’s auto loan department, you will find out the worth of your car.

Next one is to buy your auto insurance from the same company that has your homeowners insurance. All the major insurers offer both homeowners and auto insurance and will give you a nice discount if you buy both types of policies from them. If you insure several vehicles with the same company, you may also qualify for a discount.

Keeping a good credit record. Auto insurance companies are using credit information more often to price their policy. By paying bills on time, and by keeping your credit card balances as low as possible, you can maintain a good credit history. Be sure to check your credit record regularly so, if errors occur, you can quickly correct them immediately, thus, keeping your credit record clean and accurate.

With the aid of these tips, you could make save yourself enough cash to have nice holiday or even buy a special gift for a loved one.

Roxel Pudol
http://www.articlesbase.com/insurance-articles/lowering-the-cost-of-your-car-insurance-90139.html

Auto Insurance Comparison Shopping – Best Rates and Best Companies

  By John | October 18, 2009 - 4:52 pm | Auto Insurance
Comments Off

Comparison shopping on the Internet has become a worldwide phenomenon. In just minutes you can compare products and prices in virtually any category. Here’s how to go auto insurance comparison shopping and find the best rates and the best companies.

Auto Insurance Rate Comparisons

When it comes to auto insurance rate comparisons you need to get quotes from a variety of different companies to make sure you’re getting the best rate. Single-company websites run by large insurance companies only give you their quotes, and even the ones that say they give you comparisons from other companies may only give you one or two quotes.

In order to get the best auto insurance rate for your situation you need to go to an insurance comparison website where you can get quotes from a number of different companies. These sites have you fill out a questionnaire where you can enter the deductibles and discounts you want so you’ll get their cheapest rate.

The better sites have two features that will help you with your auto insurance rate comparisons: 1. An “Articles” or “Advice” section where you can get money-saving tips and other information on auto insurance. 2. A chat feature where you can ask an insurance expert questions about auto insurance. (See link below.)

Auto Insurance Company Comparisons

After you choose a company, you need to make sure they’re reputable and will pay your auto insurance claims. My favorite sites to check up on auto insurance companies are:

* State insurance department websites – Every state has a website run by their insurance commissioner that lists agents and companies. Here you can find complaints filed against companies to see which ones have the fewest.

* Epinions.com website – This site has a product rating and review guide for everything under the sun, insurance companies included. Here you can get inside information – ratings and reviews – from actual company customers.

Bottom Line

When it comes to auto insurance comparison shopping, using the Internet is a real no-brainer. It’s quick, it’s efficient, and it’s easy. Why not visit one now and see how much money you can save?

Visit http://www.LowerRateQuotes.com or click on the following link to get auto insurance comparison quotes from top-rated companies in your area. You can get more car insurance tips by checking out their “Articles” section.

ryan@thesatellitetvguide.com
http://www.articlesbase.com/insurance-articles/auto-insurance-comparison-shopping-best-rates-and-best-companies-128619.html

how can i find a low cost insurance for my car?what are deductable and premium?

  By John | October 16, 2009 - 11:56 pm | Low Cost Car Insurance
1 Comment

i have a insurance for my car and i want to know if i can pay less for the same coverage (basic or minimum)

The best way to find car insurance is by checking with an independent insurance agent. They compare prices with several (sometimes many) different companies to find you the cheapest rate. And different independent agents offer different companies, so even if you check with several agencies in the same town, you could get very different results, so it pays to shop around. You can tell them what deductible you want (the higher the deductible, the lower your monthly payments will be), and they can compare the cost of several different deductibles for you as well. The deductible is the amount you pay out of your pocket if your car is damaged and has to be fixed. If you have a $500 deductible and your car gets hit and it will take, say, $2,000 to fix your car, you pay the first $500 and the insurance company will pay the $1,500 left. The word "premium" means the cost of the insurance. And the premium is based on many things, including the driver’s age, credit history, driving record, age and type of car. Like I said, it pays to shop around, and an independent agent does a lot of it for you. It beats going to any agent that only represents one company, like Allstate or State Farm, for instance. Also, the minimum insurance required by law does not pay to have YOUR car fixed in a wreck, it pays for the OTHER guy’s car to be fixed. To get your car fixed, you have to have "comp" and "collision" coverage also, and that’s when you pay a deductible. It’s good to also have Uninsured/Underinsured Motorist protection, in case someone hits you who doesn’t have insurance at all, or doesn’t have enough to fix your car, because then YOUR insurance will pay for it.

Save money on your auto insurance: Money-saving car insurance tips

  By John | October 10, 2009 - 10:38 pm | Auto Insurance
7 Comments

Are you paying too much for your auto insurance? If you believe you are paying too much for your current auto insurance coverage then the following suggestions may help you save money:

  1. Shop around
    Sure, you’ve read this tip everywhere but it’s true. Only by shopping around for auto insurance coverage and getting quotes on premiums from several insurance companies will you be able to know for certain you are getting your car insurance coverage at the best available rate.

When shopping for your auto insurance policy, remember to compare more than insurance rates. Ask about how insurance claims are approved and processed, and how quickly they’re paid. Look into each insurers’ financial stability (there are independent rating services that can help you with this.) Remember, during times of stress like after an accident you will be dealing with the insurance company and you’ll want to make sure you’ll be helped when you need it most.

  1. Select a higher insurance deductible
    When you file a claim, a deductible is the amount you pay first before your insurer pays the remaining balance. Often people select lower deductibles, so when they have to submit a claim, their out-of-pocket expenses are minimal. But the truth is, the higher your collision and comprehensive deductibles the lower your auto insurance premium. The savings by increasing your deductible to say $1,000 from $250 are significant—you can save hundreds of dollars off your insurance premium.

Of course, the flipside is that if you should have to submit an insurance claim you are responsible for paying the deductible. So select the maximum deductible you can afford to pay—the higher the better because the difference in your car insurance premiums will mean more cash in your pocket.

  1. Remove or reduce coverage on older vehicles
    If your car is getting up there in age, you may want to think about dropping the collision or comprehensive coverage (or both) on your policy. You need to think about this one though – it’s not always a clear-cut decision. You need to weigh the cost of the two coverages with the value of your car and your chosen deductibles. For example, if you had a 10-year-old car that’s worth about $1000, and your deductible was $1000, the coverage is not actually going to help you.

  2. Ask about discounts
    Most insurance companies offer discounts. While the availability of discounts will vary depending on your insurer, where you live and whether you meet eligibility, make sure to ask if there are any discounts you can take advantage of. The following is a list of a few of the more common discounts (if available in your state, each insurer will have different eligibility requirements):

• Multi-vehicle discount – available if you insure multiple vehicles with the same insurer
• Multi-line discount – available if you insure your home and auto with the same insurer
• Good driver discount – if you have not had an accident or ticket in a long time
• Good student discount – if you’re a student with good grades, usually about a B average
• Safe driver discount – if you’ve taken and passed an accredited driver safety course
• Anti-theft discount – if your vehicle has certain anti-theft devices installed
• Safe vehicle discount – if your vehicle has certain extra safety features
• Retiree discount – if you’ve reached a certain age, usually 50 or 55
• Low mileage discount – if your vehicle is not driven often
• Occupational discount – if you work in a certain field or hold a certain degree
• Auto club discount – if you are a member of an auto club, like AAA
• Association discount – if you belong to certain associations, like your alma mater
• Away-at-school discount – if your child is attending school out of town

  1. Choose a car that costs less to insure
    If you’re purchasing a new car and have narrowed it down to two or three options, compare the auto insurance rates of each to see if there is a notable difference in the cost to insure. Remember, insurance rates are more for vehicles with high theft rates and repair costs. If there is a significant difference in cost to insure your first choice car, you may have to reconsider.

  2. Drive safely
    OK, this one is obvious but true. Driver’s with no accidents, tickets or insurance claims almost always pay less for their auto insurance coverage. Your driving record is an influential factor in determining your insurance rate. Tickets and at-fault accidents affect your insurance rates for years. With a less than perfect driving record, you can find yourself paying a lot of extra insurance premium over the years.

Jennifer
http://www.articlesbase.com/insurance-articles/save-money-on-your-auto-insurance-moneysaving-car-insurance-tips-31375.html

Low Cost Car Insurance – There Are Ways To Get It

  By John | October 10, 2009 - 5:31 pm | Low Cost Car Insurance
8 Comments

We have all heard the saying about no pain and no gain. That can also be true when it comes to finding low cost car insurance. The average insurance buyer avoids most of the responsibility when it comes to purchasing car insurance. They rely heavily on the insurance professional or the insurance company. Sometimes that approach works out fine but there is a decided advantage to the buyer who is better informed when shopping for car insurance. Here are some of the things that you need to consider when shopping for car insurance.

Do I want an Agent? – The agency system has been around a long time. The value of a good insurance professional is very high to a lot of people. They like having someone to counsel them on insurance. They don’t like dealing over the telephone or the internet.

Insurance Company – Once you decide on whether you want an agent or not then you can narrow down the field of insurance companies. You might want to select some familiar national names along with an independent agency.

All in One – There is a good chance that you will find lower cost car insurance by combining all of your insurance with one company. The multiple policy discounts along with the convenience makes it worth you time to compare your auto, home and even your life insurance.

Insurance Coverage – The shopping experience is a good time to get creative and ask a lot of questions about discounts and vehicle types. Question the need for coverage and buy what is most important to you.

Self Insuring – The days of low deductibles are slowly vanishing. Low deductibles are expensive and not worth the out of pocket expense. Higher deductibles means you are self-insuring for the first $500 to $1000 on collision and or comprehensive. This will save you thousands of dollars over the lifetime of the policy.

Please see our recommended source for insurance quotes of all types. It is a site dedicated to quotes and is powered by Insure Me. Insure Me is the leading internet insurance quote provider. They are a broker of many insurance companies to give you the lowest rates.

Greg Haehl
http://www.articlesbase.com/finance-articles/low-cost-car-insurance-there-are-ways-to-get-it-14633.html