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How to Compare Car Insurance Companies For Best Rate

Auto insurance rates vary widely, so it’s always good for you to check other company’s rates from time to time in order for you to get the best deal possible. It is also a good idea to compare rates and policies when you buy a new car since your new vehicle may be in a different category than your old one.

Understand Auto Insurance Policy Coverage

First, make sure you understand everything your current auto insurance policy covers. You do not want to be comparing policies that are not equal in coverage. Compare the amounts of coverage, your deductibles and any extras like rental car coverage or emergency repair services.

Second, ask about discounts that the car insurance companies offer. Some insurance companies offer discounts to their customers for things like low annual mileage, good driving records, multiple car discounts and even good grades (for student drivers).

Also, some of the equipment on your car may make you eligible for reductions in auto insurance rates; security systems, alarms and vehicle tracking systems are all valuable when it comes to calculating insurance rates.

Ask For Insurance Quotes

Now, it is time to ask for insurance quotes. Make sure you contact multiple auto insurance companies with the same scenario and carefully compare the rate quotes you get. The existent of the internet has makes it easy to get in touch with different insurance companies easily and quickly.

You can even find many websites that will allow you to key in your particulars in the site, once you complete to fill up all the required information, you may just press the submit button and it is going to send you information to several car insurance providers. Since auto insurance is a highly competitive market, it pays to be a discerning customer.

How Car Insurance Companies Determine Insurance Rates

Looking for car insurance can be confusing. After all, there are dozens of companies all promising to provide the best service. When you have so many companies claiming to provide the same coverage, then why is there such a wide range in price? Shouldn’t they all cost about the same?

Most companies, when determining coverage for a particular driver, rely upon a tier system. This system varies from company to company but the majority of insurance companies rank drivers into one of three tiers: preferred, standard, or substandard.

Someone who would be classified as a preferred customer would be someone who has used the same company for a few years, someone who during that time has not had any accidents or claims against the insurance, someone who carries full coverage, more than what is required by law, and someone whose annual mileage is low. This person will also have no DMV points on his/her driver’s license.

On the other hand, a substandard driver would maybe have a lapse in insurance coverage greater than 30 days, more than one at-fault accidents in the past three years, a DUI, DMV points greater than six, or other-than-collision claims that are greater than $500.

The people in between would be standard drivers. This tier system is fairly universal although there are little intricacies specific to each company. However, the discrepancy in car insurance rates comes into play when these companies have many more tiers.

If one company has ten tiers and another has fifteen and you have a pretty clean record, but a few blemishes here and there, company one might rank you as the ninth of ten tiers, yet the second company might rank you as the tenth of fifteen. As such, you will get a better rate from the second company.

Different Types of Auto Insurances

Car insurance. Every driver needs it, but different plans and rates can get so confusing that the average driver could get lost in all the terms. Accidents happen whether we want them to or not, so be prepared and know what type of auto insurance you have and what all those terms in your policy mean.

Unfortunately, many drivers today will experience some type of misfortune with their car sooner or later. Such misfortune could be the result of one’s own negligence or could be due to circumstances such as someone else’s negligence, in which they have no control.

different types of auto insurances

That’s where car insurance comes in. It protects the driver’s car in situations of theft or accident. There are many different types of insurance policies to cover different needs for different types of cars. Here are some of the basics.

Liability Insurance

Of the different types of car insurance, liability insurance may be the most prominent type. Liability insurance is a compulsory type of insurance in most state laws. This type of insurance protects one against the cost of damage and injury that one can cause to another vehicle in a car accident.

Liability insurance policies are often described by three numbers, separated by slashes. The first number (all relating to numbers in the thousands) would be the dollar amount of injury to another person, the second the dollar amount of injury to everyone, and the third the amount of property damage that is covered.

Medical Payments Insurance

This insurance for cars protects one for the immediate care of injuries received from a car accident. No matter who was to blame for a said accident, the driver, their family members, and any other passengers in the car are covered.

Uninsured and Underinsured Motorist Insurance

These two types of car insurance protection when a person when in an accident with another person whose liability insurance coverage is not enough when the other individual is underinsured meaning the driver responsible has no liability coverage, or underinsured meaning the cost of injuries exceeds that driver’s coverage. The majority of states in the U.S. do not require drivers to have either type of insurance.

Collision Insurance

This type of insurance covers costs when you are the person responsible for the accident. This type of insurance is not mandatory by any state law.

Comprehensive Insurance

This type of insurance covers harm to one’s car caused by unknown forces. These forces can include things such as vandalism, natural disasters (such as hurricane and flood), fire and theft.

Insurance Extras

There are also extra car insurance features that a driver could decide to get as part of their policy if they want. Extras can include towing insurance, auto glass insurance, daily rental insurance, and emergency roadside insurance. These extras in one’s policy are in no way considered necessary by any state but can provide a driver with a few extra safety precautions.

Finding an insurance quote for your car that is right for your needs can be more difficult than one may think. People may be tempted to just get the bare minimum, but sometimes it is to the driver’s advantage in the long run to get the extra coverage.

With the popularity of the Internet, people can even search for insurance quotes online and sift through all their options. Netquote.com is one such site that assists in these services. While this site does not sell insurance for cars, they offer the customer some good suggestions for them to look through and get the insurance that best suits them.

How to Save on Auto Insurance

We may not be able to get away with not having auto insurance, but many of us pay too much for it. Just like anything else, it literally pays to shop around – but that’s only one way to
save money on auto insurance.

Do shop around for the best rates. It’s the easiest way to save and with the internet, it’s quick and simple. Use a site like Lowermybills.com or Insurance.com to get comparisons, then go for it. Often, the reason we don’t change auto insurance companies is that we’re stuck in a rut or we have some false sense of loyalty toward a company or agent.

Realize that if you have too many accidents or don’t get your bill paid in time, they’ll dump you. Their only loyalty to you is your money and that’s the only way you should look at them. If they cost you money, dump them.

Once you’ve found the right company, look into bundling your auto insurance, home insurance and whatever else you can. Most insurance companies offer discounts if you use them for all of your insurance needs. Ask about this if it isn’t in their advertising. If they won’t give you a discount, they may not be the company for you.

Every insurance company has discounts and pseudo discounts, so find out what they are. It may very well be worth the trouble to attend a defensive driver’s class to get a lower auto insurance rate. Other possible discounts:

  • Good driver, meaning no accidents or citations over a period of years.
  • Multiple policies where all vehicles in the family are insured by the same company.
  • Safe car discounts if your car is equipped with airbags and/or anti-theft devices.
  • Good student discount if you maintain a high grade average.
  • Senior citizen or retired discount.

Get Alternative Ways to Finance a Car

Find alternative ways to finance a car so you won’t have to have a lien against it. You don’t need full coverage if your car isn’t financed by a lending institution. You may be able to use a home equity loan or borrow against a life insurance policy.

You may be able to take a personal loan or put something else up as collateral. Some of you may be able to sell your old vehicle or other things to come up with the money to buy a vehicle outright. Do it. It will save you insurance money as well as interest on a loan.

Before you buy a vehicle, check to see what the insurance rate will be. Some vehicles are at higher risk and will cost you more. Sporty or “muscle” cars may have higher insurance rates because the type of person who drives them tends to take more risks.

Certain automobile colors are involved in more accidents because they’re harder to see. An important factor in determining the rate for particular vehicle deals with how often that make and model is stolen.

Another one is how expensive it is to repair or replace a vehicle when it’s been in an accident. The only way to know is to contact your insurance agent and ask about any vehicle you’re contemplating buying.

driving car
driving car

Don’t drive more than you have to. If you can keep your driving down to less than 6,000 miles a month, you may get a better rate.

Keep Your Car in A Garage

If you have a choice, keep your car in a garage. This can also lower your auto insurance rate because there’s less chance of it being stolen or damaged (deliberately or not) when parked.

Raise your deductible, but not so high that it will hurt to pay it if you should have an accident. The best tactic is to put aside or build up savings to equal the deductible you want. Most companies will cap the amount at $500 or $1000, so find out before you make your plan.

Ask your insurance agent to figure the minimum coverage your state allows. It’s usually a reasonable figure – the state doesn’t want you to be without good insurance. Your insurance agent wants to sell you as much as he can. Don’t let him. ‘

To really see that bill go down, put every one of these ideas into practice that you can. It’s worth a little work and a little time to do it because once you’ve done it, you’re set for a while. If you can save as little as $5 off a monthly payment, that’s $60 a year. If it takes you two hours to cover all of this, you saved $30 an hour. That’s not bad.

Cars That Need to Have The Best Car Insurances

If you drive an old jalopy that cost you next to nothing then you are probably not overly bothered about if the insurance(or as the Danes say forsikring) you have will pay out for your own vehicle. You want to know that you are covered against damage to others, obviously.

But as far as you’re concerned, if your car is stolen or broken; then, fair enough; it’s time to buy a new one. For all you care, the policy could be written on the back of a napkin.

However, there are some vehicles around that you want to make sure are covered by the best car insurances around, as if you lose some of these you might not be able to replace them.

premium auto insurance
premium auto insurance

Let’s start with new cars that are rolling off the production line as we speak and the world’s most expensive is the Maybach Exelero, which weighs in at a whopping 8 million US dollars. Now that might just be the debt level of a small country so what do you get for your money?

Imagine a car that tips the scales at 2.6 tons; goes from standing to 60 mph in less than 4.5 seconds and tops out at over 218 mph and you see what all that money can buy.

Whether any of the companies that offer car insurances (it’s interesting that the Danish term is bilforsikringer) would be interested in offering cover for this vehicle is debatable, there are only going to be 10 made so you’re probably too late to buy one anyway.

After the Maybach, the 2.6 million US price tag on the Bugatti Veyron Supersport, seems like a snip. This boasts an 8 liter VW engine that powers the thing up to over 267 mph and that makes it the fastest road car around.

Not only that, but the Bugatti is pretty luxurious as well, especially for a supercar. Try getting any full comp car insurances for this and you might be on the telephone for some time.

However, it isn’t new cars that are the most expensive to buy as bidding wars take place all around the world for cars that boast a bit of history.

In 2011 the 1957 Ferrari Testarossa Prototype sold at auction for a cool 16.39 million US dollars. That is more than some soccer teams pay for a striker.

So if you have money, why not spend it? There must have been some nervous conversations in the offices of companies that offer car insurances when this guy tapped his details into the online form.

Having said all that, this car is probably one of the finest ever built with a racing history to challenge any other and looks that would definitely send Wayne Rooney home with his tail between his legs.

So next time you are sputtering along in your clapped out banger spare a thought for those in their multimillion-dollar wonder wagons; they might be a bit more comfortable than you are, but trying to organize car insurances for their rides is almost impossible.

Is Online Car Insurance for Everyone?

Many people turn to online insurance services in order to get the best deal possible on their car insurance. For the most part, this is easily the best place to make savings on one of life’s most essential expenses.

However, there can be a number of downsides to this approach as well, making it well worth exploring what the pros and cons are to using this approach.

Pros

The biggest pro to shopping online is that you can get a number of quotes from a variety of different insurance providers almost instantly. That means there will be no lengthy and expensive telephone calls to make in order to ensure that you get the best deal.

Two sites that you shouldn’t miss would be the Costco and Geico auto insurance. Take a look at the site and you may get an offer that can save you plenty of money.

Another convenience with shopping online is that many people work during the opening hours of car insurance sellers and therefore are unable to find a good time to call to compare quotes.

Online quote comparison services allow you to compare quotes at any time of the day or night and once you find a quote you are happy with, you will also be able to purchase online without waiting for the insurance company to open up in the morning.

There are plenty of websites out there that will guide you through the process of purchasing car insurance.

Finally, with quote comparison websites is there is no salesman operating between you and the insurance company. While the owners of a website may make a small commission, they will not be making anywhere near as much as a salesman would.

The comparison format also means that companies will have to offer the cheapest auto insurance possible in order to secure you as a customer.

These are deals you would probably never get if you called one insurance agent as they have no need to offer you the best deal. They know if they keep you on the phone long enough they will most likely make a sale. Unfortunately, it is a common sales technique.

Cons

The major downside to online purchasing is the fact that it isn’t as personal as going through an insurance agent. You may have to spend hours navigating an automated system in order to have questions answered that may arise during your purchase.

As mentioned, there is a wealth of information on the Internet, but at times this can be overwhelming. After all, you will have to do your own research and not all information on the Internet is always up to date or accurate.

If you contact an experienced insurance agent, they will be able to filter out all the information that isn’t applicable to your situation, which can be a real time saver in the end.

Another thing to consider is that with an online insurance company you will have to file the claim on your own, so there is no helping hand guiding you through the process like you would have if you had your own insurance agent.

While it is true that online insurance purchases are generally cheaper, you should weigh the costs and benefits to decide whether or not going this route is suitable for you.

If you are not computer savvy at all, you probably should choose the more traditional route of contacting an insurance agent in your area. Many people still appreciate the fact that they get personal service offline and therefore are willing to pay extra for this assistance.

Whichever method you choose, the important thing is to reassess your insurance policies regularly as premiums can fluctuate from year to year.

How to Handle Multiple Cars in Your House

Some level of car insurance is mandatory in most states, and with good reason. In case you cause or are in an accident, car insurance can prevent you from having to pay costly out-of-pocket fees, as well as potential legal expenses to the other driver’s personal injury lawyer.

While the benefits of an auto insurance policy are quite clear, having multiple cars and/or drivers in one household can cause monthly premiums to rise exponentially. Consider the following when shopping for insurance for multiple cars in your household.

Affording Car Insurance

Does your current carrier offer a multi-car discount?

If you already have one car insured with a particular carrier, ask if the carrier offers a multi-car discount. Many do and will work with you to plan out your payments.

Have you shopped around recently?

When you own one or more new vehicles, it is a good time to do some comparison shopping, even if your current carrier offers a multi-car discount. It is possible that another carrier will offer you better rates, and some will even offer incentives or additional discounts for switching from your current carrier.

Are there any teens in your household? 

New teen drivers are notoriously expensive to insure because they are statistically deemed to be high-risk drivers. Many carriers will offer discounts to teens that earn grades of B or higher so you may want to use improved grades as an incentive before buying your teen his or her own car.

Also, when purchasing a car for teenagers, don’t let them talk you into a flashy, new sports car. Stick with something simple that has an excellent safety rating. Finally, it is often less expensive to add your teen to your policy, rather than purchasing a separate one for him or her.

Have you taken a defensive driving course?

All drivers in your household should take a defensive driving course. Many can be completed online at your own leisure. If you do a course you’ll be able to prevent personal injury and costly damage repairs by preventing accidents altogether. Carriers typically offer a 10% discount for successfully completing a defensive driving course.

Do you own any older or classic vehicles? 

If so, there are carriers who specialize in classic cars and offer substantially less expensive rates if these vehicles are kept in a garage and only driven occasionally. If your older car does not qualify as a classic, you may want to consider eliminating any comprehensive or collision coverage, as this type of insurance may end up costing you more than the actual value of your car.

Have you asked your carrier about other discounts? 

Many carriers offer discounts for married couples, drivers who have never been in an accident, members of the military, etc., but you have to ask for them.

Talk to an agent to see what you or your family members may qualify for. Just asking can get you a lot of help and let your insurance know what you’re looking for.

Owning multiple vehicles does not have to turn into an expensive endeavor. You simply need to do a little research and crunch some numbers to find the best deal.

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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