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How to Cut Your Auto Insurance Rates by One-Third


Is Skipping Car Insurance Worth It?

In some states, car insurance isn’t mandatory, and you can instead choose to pay a state fee. Although we don’t advocate breaking the law, many drivers also choose to go without insurance, even in states that do require it. But no matter where you live, a question that’s important for you to ask is this: “Is skipping car insurance worth it?”

The Legal Benefits of Car Insurance

Let me start by talking about the clear benefits of staying legal. In states where you are legally required to purchase car insurance, going without can be extremely costly. You could lose your license, end up with high fines, and even find yourself being sued by other people. If having insurance is the law in your state, there’s no debate to be had – you need insurance.

car insurance
car insurance

Insurance in Other States

But what about states that don’t have insurance requirements? What if you can choose instead to pay the state fee and go without insurance? Does this make sense for anyone or is it an all-around bad idea?

Believe it or not, it does make sense for some people. You just have to be prepared for the consequences, because it’s not always about you and your car. Many drivers make the mistake of believing that they don’t need insurance if their car isn’t worth much.

While it’s true that you don’t want to spend $3000 a year to insure a car worth half that cost if you get into an accident, the other car might be worth a lot more. Causing an accident makes you liable for damages caused to other cars as well.

And don’t forget about injuries. Paying for your own or others’ hospital bills can cost hundreds of thousands of dollars. If you aren’t prepared to pay for this out of pocket, make sure you purchase car insurance.

Even if you’re the best driver in the world, you could be deemed at fault on a technicality, have an accident when a critter bolts in front of your car unexpectedly, or deal with a driver who doesn’t have insurance either. If you can’t afford to purchase a new car and pay medical bills, you absolutely need insurance.

It can be hard to justify the cost though, so what you absolutely need to do is make sure you’re comparing prices. Don’t be afraid to dump your current insurance company for a better price (as long as you aren’t also sacrificing quality). Bundle your different policies, look for companies that offer safe driving discounts, pay a year in advance (if you can) to get a lower price, and above all, ASK for a discount.

Often, if you simply call and hint that you’re considering other car insurance companies, an insurance agent will magically be able to lower your rates. That way, you can afford a great policy that protects you, even if not required by your state.

With so many insurance companies competing for your business, it can get confusing knowing who to buy from and who really offers the best rates. Companies are in the business of making profit, and providers of automobile insurance are constantly advertising low rates in an attempt to draw in as many new customers as possible.

However, not everyone qualifies for the very lowest monthly premiums. This is because insurance companies place every driver into a category based on the studies performed by actuaries.

Drivers can obtain an insurance rate that is more favorable by making sure that certain information is provided while shopping for quotes. By following a few simple rules and making prudent choices about the vehicle driven, how much to drive, how to combine policies and what types of insurance to purchase, most drivers can save one-third or more on their auto insurance costs.

Drive A Safe Vehicle

safe car
safe car

Studies into accident causes and crash tests on new models help insurance companies determine how severe the damage will be if a particular automobile is involved in a road incident. Automakers know that a huge percentage of the population is concerned with insurance rates, and they have taken steps to promote vehicle safety through the actual construction of the car itself. This explains the new technology built into late model vehicles.

Crumple zones, rearview cameras, driver warning systems, and anti-theft devices play a definite role in determining insurance rates. Buying a car that has advanced safety features can reduce insurance premiums. When shopping for favorable insurance quotes, drivers should make sure that all information concerning safety equipment installed on the vehicle is reported in the appropriate checkboxes.

Drive Fewer Miles Each Month

This is becoming a major factor in determining insurance rates. Those who carpool and who install a mileage reporting device in their vehicle may be able to save as much as 10 percent on their insurance premiums. Most insurance companies will ask the customer about their driving habits, when and where they drive, and how many miles are driven each month commuting to and from work.

Raise The Collision And Comprehensive Deductible

This means that should an accident occur resulting in damage to the vehicle, drivers will have to pay more out-of-pocket before the claim is honored. However, raising the deductible from $500 to $1,000 will usually result in a savings of at least 20 percent on this type of coverage. The money saved each month is more than enough to pay the deductible amount at least once every two or three years.

Safe drivers are encouraged to consider a higher deductible because the likelihood of causing an accident is much less. Those with no traffic violations in the past three years and who have filed no claims with their insurance provider are rewarded with noticeable savings when they choose a higher deductible.

Complete A Defensive Driving Course

Drivers shopping for car insurance are encouraged to ask the provider if a discount is given for those who have a certificate of completion from an approved driver safety program. This is especially important for parents who will be adding a teen driver to an existing policy. The cost is nominal, and many of these classes can be completed conveniently and for a relatively low cost.

Combine Auto Insurance With Health And Homeowner’s Coverage

Nearly every insurance provider that offers coverage for home, health and life will give an automatic discount when all of these insurance types are purchased. This is especially true if the policyholder is married, has a good driving, and has maintained a favorable credit score.

By following these guidelines, you could be on your way to cutting your auto insurance rates by 1/3 or more. As always, drivers should do their utmost to keep a clean driving record and shop around frequently for the best rates. You may also try to find out some great deals from Costco car insurance as there are many drivers tend to relish for their insurance due to the luring package that they offer.

5 Things That Spike Your Auto Insurance

So you are planning to buy yourself a new automobile. You pick the kind of car you want, the model, its features, color and more. Once you sort out the financing you are itching to get your hands on your new possession and take it out for a spin. Well, not so fast! Don’t forget your auto insurance. Car owners need auto insurance for a variety of reasons the main being to protect you from financial loss in case of a problem. You have to shop around looking for the best insurance providers and the best policies for you. The options are many as seen in the growing Dubai insurance market and in countries across the world.

Once you find insurance providers that are offering the kind of coverage you want, keep in mind that there are a few things that can hike up your auto insurance premiums. Let’s take a look:

1. Your driving history
It is actually a given that your auto insurance premium depends in part on your driving history. Accidents, mishaps, and brushes with the law can all affect your insurance payments and the coverage that insurance providers will provide you with, often for a number of years. Many companies regularly screen for traffic violations and most at least do a thorough check when you are applying as a new customer. The positive flipside is that a clean driving record encourages many insurance companies to lower your payments as well.

2. The age of your car
A new car is obviously more expensive than an older model. It is not only a higher price but also more costly to repair and to get parts for. This is why it can affect your auto insurance rates. A new car is considered an asset and will cost more to insure than an older one. If you are planning to buy a new vehicle generally cars like trucks and minivans are cheaper to insure since they tend to be driven by older, more responsible drivers. Makes that are more popular with the younger crowd and teens do as a rule of thumb command a higher insurance premium. Cars that insurance companies have researched as ones that are most often stolen are also more expensive to insure.

3. Your commute and location
Where you live and park your car can also spike up your auto insurance rates. If the areas in question are deemed ‘unsafe’ by car insurance providers, it can lead to a hike in your payments. This is usually based on the annual crime rate in an area, number of vehicle robberies and damage and the like. The length of your commute is also a factor insurance company’s take into consideration. Longer commutes can increase your premium because you spend more time driving leading to higher chances of a mishap and you are more prone to drive in high traffic times and areas.

4. Age, sex and marital status
Strange but true, your age, gender, and marital status can affect how much auto insurance you pay every month. Generally, if you are married and have children your rates can be lower than if you were single. It rises even more if you are male and single. People over the age of 26 also benefit from lower insurance premiums.

5. Opting out of insurance for a while
If you at some point decide to stop your auto insurance for a little while, whether it is because you plan to move or want to save that extra cash and use it for something else, tread wisely. Even a small gap of a month can lead to a big spike in your rate once you decide to get coverage again.

Choose your insurance provider wisely and do what you can to make sure you pay an affordable and adequate auto insurance premium!

The Future Of Vehicle Insurance

Car insurance is changing with the introduction of so many price comparison websites and I believe the industry will change even more in the coming years. People are constantly looking for a bargain and that means companies are going to have to reduce their prices if they are to keep in competition with other companies offering a similar service.

In the internet age, we live in there is always the opportunity to find a great deal online, may it be a one-off or a company in a different country you will always have the chance to get some great value for your money.
This article will highlight where the future of vehicle insurance is going and what factors are changing the way the industry works.
Car insurance is something that everyone who drives needs and therefore the industry will always have business.  Therefore, it will always be a competitively priced area.

Price Comparison Websites

There are so many auto insurance price comparison websites out there nowadays that the market is merely becoming a competition between them. I mean the companies that offer the insurance stay the same but they broker the deal through these comparison sites in order to get the cheapest offer.

Despite the really annoying adverts, the service they offer is very impressive and is the only real way to get a market perspective very quickly. We live in an internet age and almost all insurance deals are done there now, it is just very simple, you can print out your policy and with the help of these markets, you can often find an extremely cheap deal.
The older generation stick to their roots and probably use the same insurance company they have since the 1980s and there isn’t a problem with that, the money will just be directly debited from their account with no hassle.

Specific Insurance

This is something that will become increasingly prominent. For those who have jobs that involve driving, there are companies out there that offer specific insurance for your occupation. You can get truck insurance with XYZ as well as the chauffeur, taxi, courier and minibus cover.
This is a brilliant way to create a tailor-made package to best suit your needs. Checking online like many things nowadays is the best way to go about sorting this out, consult various websites and try to find the best deal at the right price.

Less Protection

This is something that comes with cheaper insurance packages, you are insured for much less and the excess you have to pay when you do claim is often extremely high. It’s the only way these companies can justify having their policies cheap and if you ask me it is very clever.

Most people don’t think that they are ever going to need to claim and so they just click the cheapest package without checking the details. For many, this won’t be a problem and they will not need to claim during their lifetime however some people will be in for a nasty surprise.

Warren Paine

Warren is the senior mortgage loan officer who has worked in mortgages and loan industry since 1995. He study in Harvard and major in Finance with a Bsc. Honor Degree. He possesses a Paralegal Certificate as well.

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