Did you know that car insurance quotes are better online? Thanks to new developments in technology by the insurance industry the internet has become the best place to get cheap auto insurance.
Traditional Ways to Save Money on Automobile Insurance
Your car insurance agent, if you still have one, may have talked to you about the historically-effective ways to save the most money when giving you the latest auto insurance quote. This is a listing of ideas and techniques which are within your control. With the internet you can now get more competing car quotes and see how all of these traditional cost reduction factors will affect your rates.
Increase your Deductibles.
A switch to a high-deductible policy may save you a lot more money than you realize. The only question here is: How much pain can you absorb yourself? That is, don't raise your deductibles so high that paying them would force you to borrow money or suffer financial distress.
This approach makes a lot of sense if you believe insurance programs should protect you from really large, catastrophic losses. Take the money you save on premiums with your high-deductible policy and stick it in a bank account. It's possible that the premium money you save with very high deductibles will allow you to fund that account in just a year or two - and everything after that is pure gravy.
Higher deductibles on your auto insurance means your less like to experience a rate increase after a claim filing: you will file fewer claims. No longer will you submit an insurance claim for a $500 windshield repair - but the additional cost of paying it yourself will be more than made up for by your extremely low car quote.
Drop Coverage for Physical Damage.
Like the idea presented above, doing this will reduce your insurance coverage, so you will only want to consider it for older cars. Sometimes the repair bill for older cars that have been in collisions is higher than you could sell it for, or the Blue Book Value. If the damage isn't too bad and you can drive the car, you would have second thoughts about paying for a repair without collision insurance.
You will want to compare your auto insurance premium savings to what it might cost you to repair your car. If the difference is dramatic you can bank the savings and watch your savings account grow because of your cheap auto insurance quotes.
If you're a very safe driver and never had an accident it may be a great way for you to save money - as long as you keep your savings in the bank.
Drive Safely.
Of course the majority of people are already doing this and getting lower rates due to their safe-driver status. But if you've had accidents in the past you'll want to think about changing your driving behavior (not speeding, not talking on your cell phone, not tailgating, etc.). This approach is almost mandatory if you've taken the approach outlined in #1 and #2 above.
Don't Have Moving Violations.
Yes, Virginia, getting tickets is bad for your car insurance. Since no moving violations means not having to pay fines, you also save money that way, so this is something you absolutely should do.
Drive Cheaper Cars.
This will not only save you money in several ways but will of course have an impact on the cost of your automobile insurance. You should avoid certain expensive and thief-desirable cars because they will bring you more expensive car insurance. Be sure to include anti-theft and safety devices because insurance companies will give you better rates if you have them.
Receive Discounts on Your Car Insurance Rate.
Sometimes your good driving behavior or other factors (such as good grades, safe careers, or low mileage) may not have been taken into account in your automobile insurance. And be sure to include ALL of your vehicles together when getting auto insurance quotes - you will receive the discounts given to multi-car policies.
Getting online car insurance will allow you to see all of the options that are out there for you to receive a lower car quote. There may be discounts for things you've never heard of, especially if you've moved to a different state, such as a discount for taking a defensive-driving class.
Have Good Credit.
Your credit score is something insurance companies consider when giving you a car quote. There's some tie-in with responsible credit and responsible driving, they say. This will be a lot less direct than some other ways to save money on your car insurance.
File Fewer Claims.
Although mentioned above it is worth stressing. Filing fewer claims will save you money over time because your rates won't increase as fast. Automobile insurance companies do occasionally fail to renew a policy if claims have been filed.
Some people with low deductible policies still decide not to file their smaller claims and this is like a double-whammy on their pocketbooks. If you're not going to be filing small damage claims then #1 above becomes a no-brainer as a way to get lower car quotes.
Combine Car Insurance With Homeowner's
If you're not doing this already it's a big mistake. You will receive very significant rate reductions when you combine auto and homeowner's together. If you have a boat or motorcycle or vacation home, throw those in the pot too. If you don't have homeowner's insurance but have renter's insurance this may also be combined with your auto policy to get a lower rate.
Get Your Auto Insurance Online.
That's the point of this article. Today's internet allows you to get the best deals with a couple of clicks of your mouse. You don't have to rely on one agent or one company.
Use a web-based service such as this one to shop around for the lowest car quote (much like web travel companies do for airline tickets). This will save you money.
One possible concern about getting online car insurance is whether you will get the same level of service, and whether you'll end up with a quality company. The truth is that going online helps car insurance companies save money, and they pass those savings on to you.
This doesn't mean you'll get worse service or a low-rate company. The best companies with the lowest rates are all providing auto insurance online. Most of them use other companies as "middle men" to get the data and submit to competing companies for the best deal. Perhaps you should see how much money you can save and visit one of these sites now.
Traditional Ways to Save Money on Automobile Insurance
Your car insurance agent, if you still have one, may have talked to you about the historically-effective ways to save the most money when giving you the latest auto insurance quote. This is a listing of ideas and techniques which are within your control. With the internet you can now get more competing car quotes and see how all of these traditional cost reduction factors will affect your rates.
Increase your Deductibles.
A switch to a high-deductible policy may save you a lot more money than you realize. The only question here is: How much pain can you absorb yourself? That is, don't raise your deductibles so high that paying them would force you to borrow money or suffer financial distress.
This approach makes a lot of sense if you believe insurance programs should protect you from really large, catastrophic losses. Take the money you save on premiums with your high-deductible policy and stick it in a bank account. It's possible that the premium money you save with very high deductibles will allow you to fund that account in just a year or two - and everything after that is pure gravy.
Higher deductibles on your auto insurance means your less like to experience a rate increase after a claim filing: you will file fewer claims. No longer will you submit an insurance claim for a $500 windshield repair - but the additional cost of paying it yourself will be more than made up for by your extremely low car quote.
Drop Coverage for Physical Damage.
Like the idea presented above, doing this will reduce your insurance coverage, so you will only want to consider it for older cars. Sometimes the repair bill for older cars that have been in collisions is higher than you could sell it for, or the Blue Book Value. If the damage isn't too bad and you can drive the car, you would have second thoughts about paying for a repair without collision insurance.
You will want to compare your auto insurance premium savings to what it might cost you to repair your car. If the difference is dramatic you can bank the savings and watch your savings account grow because of your cheap auto insurance quotes.
If you're a very safe driver and never had an accident it may be a great way for you to save money - as long as you keep your savings in the bank.
Drive Safely.
Of course the majority of people are already doing this and getting lower rates due to their safe-driver status. But if you've had accidents in the past you'll want to think about changing your driving behavior (not speeding, not talking on your cell phone, not tailgating, etc.). This approach is almost mandatory if you've taken the approach outlined in #1 and #2 above.
Don't Have Moving Violations.
Yes, Virginia, getting tickets is bad for your car insurance. Since no moving violations means not having to pay fines, you also save money that way, so this is something you absolutely should do.
Drive Cheaper Cars.
This will not only save you money in several ways but will of course have an impact on the cost of your automobile insurance. You should avoid certain expensive and thief-desirable cars because they will bring you more expensive car insurance. Be sure to include anti-theft and safety devices because insurance companies will give you better rates if you have them.
Receive Discounts on Your Car Insurance Rate.
Sometimes your good driving behavior or other factors (such as good grades, safe careers, or low mileage) may not have been taken into account in your automobile insurance. And be sure to include ALL of your vehicles together when getting auto insurance quotes - you will receive the discounts given to multi-car policies.
Getting online car insurance will allow you to see all of the options that are out there for you to receive a lower car quote. There may be discounts for things you've never heard of, especially if you've moved to a different state, such as a discount for taking a defensive-driving class.
Have Good Credit.
Your credit score is something insurance companies consider when giving you a car quote. There's some tie-in with responsible credit and responsible driving, they say. This will be a lot less direct than some other ways to save money on your car insurance.
File Fewer Claims.
Although mentioned above it is worth stressing. Filing fewer claims will save you money over time because your rates won't increase as fast. Automobile insurance companies do occasionally fail to renew a policy if claims have been filed.
Some people with low deductible policies still decide not to file their smaller claims and this is like a double-whammy on their pocketbooks. If you're not going to be filing small damage claims then #1 above becomes a no-brainer as a way to get lower car quotes.
Combine Car Insurance With Homeowner's
If you're not doing this already it's a big mistake. You will receive very significant rate reductions when you combine auto and homeowner's together. If you have a boat or motorcycle or vacation home, throw those in the pot too. If you don't have homeowner's insurance but have renter's insurance this may also be combined with your auto policy to get a lower rate.
Get Your Auto Insurance Online.
That's the point of this article. Today's internet allows you to get the best deals with a couple of clicks of your mouse. You don't have to rely on one agent or one company.
Use a web-based service such as this one to shop around for the lowest car quote (much like web travel companies do for airline tickets). This will save you money.
One possible concern about getting online car insurance is whether you will get the same level of service, and whether you'll end up with a quality company. The truth is that going online helps car insurance companies save money, and they pass those savings on to you.
This doesn't mean you'll get worse service or a low-rate company. The best companies with the lowest rates are all providing auto insurance online. Most of them use other companies as "middle men" to get the data and submit to competing companies for the best deal. Perhaps you should see how much money you can save and visit one of these sites now.
About the Author:
Leo Vidal
Leo J. Vidal, JD, MA, CPA has 25 years experience as a financial consultant and is an expert in the area of insurance planning. He is also a noted author and speaker and is a former Regional Director of Deloitte & Touche, an international consulting firm. To get your own customized car insurance quotes and see how much money you can save visit this great site.
0 comments:
Post a Comment