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May 2016

Five Tricks To Keep Your Auto Insurance Rate Reasonable

Five Tricks To Keep Your Auto Insurance Rate ReasonableAuto insurance is a necessity, but it doesn’t have to bust your wallet. Several resources you can tap into will allow you to pay lower upfront rates and spend less in case of an accident. Though budget-friendly plans are your goal, providers who offer incredibly cheap premiums aren’t always worth settling for. The following are five tricks to take into account when shopping for car insurance.

1: Bundle Your Services

If you’ve just relocated to another state or county, you might want to investigate bundling your renters’ or home coverage with your auto insurance. Many companies offer policy bundles at a discount, which can save you money annually. This strategy also caters to your convenience; you’ll always know who to contact in case of a crisis involving your property. There’s no need to keep track of multiple policy guidelines if you choose to consolidate your coverage.

2: Let Companies Bid For You

It’s worth shopping around for the best policy. An attractive premium at the first company you investigate, or the lack of familiarity with coverage in general, can make settling a tempting prospect. Shopping around and letting providers know you’re doing so will earn you a better rate in the end. Let companies bid for your business rather than the other way around. If you feel apprehensive about negotiating for better rates, get an insurance agent to score a good deal on your behalf. It is within your right to tell one business that another is offering you a lower rate and to give them a chance to counter that offer.

3: Look Into Low-Income Opportunities

Some states offer insurance programs for people at or below the poverty income level. If you fit into this category, or if your credit score is so poor that you have little chance at a decent rate otherwise, this route is worth taking. Insurance programs geared toward low-income candidates offer premiums around only 400 dollars. Certain states even offer this type of program at no cost.

4: Buy Your Car Based On Insurance Rates

Most people shop around for coverage after they purchase their car. Auto insurance as an afterthought can hurt your wallet, however. If you’re in the market for a new car, it’s worth investigating what rates are offered for each make and model in which you are interested.

Choose an older model versus a brand-new car if you can; the rates are always lower on prior models. Make sure it still includes necessary features. Some policy providers will offer discounts for cars featuring anti-theft alarms, motorized seatbelts, and onboard emergency systems.

5: Consider A Pay-As-You-Drive Policy

If you don’t drive long distances, consider a policy based on your monthly or annual mileage. These plans allow your premium to fluctuate based on how often you get behind the wheel. Your mileage is tracked through annual or monthly reports you must make to your policy provider.

Insuring your vehicle is necessary, but it doesn’t have to be expensive. A willingness to do some research and inquire about resources can go a long way when trying to score a lower annual or monthly bill.


Car Insurance Watch Out Before You Buy

What to watch out for while choosing car insurance?

The most important criteria include the five “C”s. Here’s a brief description of each:

Claim settlement policy – The true test of an insurance company is at the time of an actual insurance claim. This is possible to check by looking at the company’s past records of claim resolution. Now is the time to check if the existing insurance can be transferred to another insurance company without loss of benefits already paid for.

Coverage – What is the right coverage for you? Usually, car insurance policies cover third party liability and own damage. According to the Motor Vehicles Act, it is mandatory to opt for third party liability insurance cover while own damage is optional. Opting for both is the standard procedure since they cover any damage due to accidents and loss from third party mishaps. Most insurance companies offer “add-ons” with the basic policy.

Customer service – Thanks to technology, insurance policies are now issued instantly. Besides this, other issues such as changes in policy or cancellations are processed quickly. In the event of a claim, cashless settlement is also available so that post-repair delivery is quick without incurring bills at the workshop. It is therefore important to check the insurance company’s network for this facility. The bigger the network, the better the claimant’s options.

Communication access – The insurance company’s contact information must be easily accessible. If there is a problem the insured individual must know whom to get in touch with and the procedure to follow.

Cost – Last but not least, is the price or premium. Car insurance premium is based on “insured declared value” or IDV and the rate multiplier and depends on the car model, the age of the car, daily mileage and the terrain of the location. It is important to declare the right IDV and select a policy that offers the maximum IDV even if you have to incur a slightly higher premium.

Besides the above, the following are the benefits to look for:

No claim bonus – if no claim has been filed during the insurance period, a no-claim discount is offered on risk cover against own damage at the time of policy renewal. For each consecutive claim-free year, the discount increases progressively. The point to note is that the no claim bonus eligibility holds good even in the event of a new vehicle purchase or existing insurance renewal before the due date from a different insurance provider.

Opting for deductible – Drivers with a good record can opt for “voluntary excess” or deductible to lower their premium payments, in addition to the compulsory excess. In the case of a compulsory excess, the insured is liable to pay a specific amount if a claim is filed.

Premium based on car type – If your car has extra security features such as anti-theft alarms the chances of theft is lower and insurance can come at a lower premium.

Timely insurance renewal – If car insurance is not renewed before the expiry date the renewal premium can result in loss of coverage especially if there is an accident and also mean no discount for the no-claim bonus.

Choice of Add-ons– Besides the basic car insurance coverage, insurance providers offer several optional add-ons. It is important to select the right ones and only pay for those. For example, if there is a medical expense cover or hospital cash cover, check to see if you have a medical insurance policy that already covers these.

To renew or not to renew – with the same insurance provider? When it is time to renew your car insurance, compare insurance providers to see what they are offering before making a decision. The car insurance industry is very competitive and for the same coverage, you can probably get a better price elsewhere.

Some final precautions to bear in mind are:

• Check that the insurance policy is genuine. Always buy your car insurance directly from the insurance company or from its authorized agent.

• Always get a premium payment receipt.

• When you receive your policy document, check the IDV, no claim bonus and deductible details to make sure it is what you opted for. Any discrepancies must be notified and rectified immediately.

• Make sure only you sign the proposal form and always read before signing

• Do not opt for monthly payments as this is more expensive than annual payments

Remember that car insurance protects you and the occupants of your car on two counts: from accidental damage and from third party claims when you are responsible for the accident. Therefore, choose with care.

Getting A Lower Rate On Your Auto Policy

Are you one of those drivers who picks an insurance agent, chooses a policy, and never changes it? If so, you could be losing out on a lot of potential savings. Taking the following steps will help you negotiate lower auto insurance rates for you and your family.

Make Sure You Have Enough Coverage

When you first purchased your vehicle, you very likely insured that vehicle with your local insurance agent. One mistake many drivers make is not knowing what their policy covers when the car is actually in an accident. Before you try to have your rates lowered, you need to make sure you are paying for enough coverage in the event of an accident. Determining whether you have enough coverage can be tricky, but taking a look over your driving history can help you decide If you have an appropriate level of coverage for your personal driving habits.

Make Sure to Ask the Right Questions

Next, prepare a list of questions to ask the insurance agent. You first need to be honest about why you are getting in touch with them. Tell them what you are currently paying on your auto policy and that you are interested in switching to a new company with better rates.

Next, ask about how much you could save if you were to insure both your vehicle and your home. If you can get a significant discount, you may want to consider moving your homeowner’s coverage there as well. Other things you need to ask about are whether or not there is a pre-payment discount, employee discounts, student discounts, and discounts for certain safety features that your car may have.

You can also ask about the benefits you would receive with that company. Services like roadside assistance, for instance, may be something that you have to pay for separately. However, if a company offers you a single premium that covers these additional services, you may be able to benefit from extra convenience and savings.

Shop Around At Other Agencies

Once you know what type of coverage you have, it’s time to shop around some of the different agencies that are available to you. There are many ways to go about this. If there are local offices in your area, you can simply stop by and ask for the information you need to make an informed decision. Most insurance agents also have websites you can look at to get their policies and rate information without volunteering any information. You can also call the office on the phone. Many people prefer this to visiting in person or using the websites for a few reasons.

First, they can have a list of questions, current policy information, and everything else right in front of them as they ask their questions. In addition, talking to a real person who works at the agency may lead to additional deals that aren’t offered on the website.

Changing your auto insurance can be a pain, but it can also save you a significant amount of money in the long run. Be sure to speak to an insurance agent when you contact these companies in order to get the most accurate information possible.


Things You Must Consider While Buying Car Insurance For A Used Car

A car is a basic necessity in today’s world. It makes commuting smoother and convenient. But not everyone in the society can afford to purchase a new car, instead they buy a used car to fulfill their needs. If you are among those who want to purchase a car insurance for your used car, here are a few factors that you must keep in mind to get the best policy as per your need:

    1. Access your insurance needs: You can buy a standard insurance or a policy that offers the maximum coverage in all cases. When deciding on the best policy, consider the make and model of your car, how frequently you would use it and how much it is worth. If you purchase a comprehensive policy that covers your vehicle in every damage, you will certainly have to pay higher premiums, and if you plan to save your money on insurance, you will get less coverage. Therefore, it is advised to determine your need first and then buy a policy that equally matches with your preference, and of course, the budget.

    1. Check insurance quotes: Once you are clear about the type of coverage you want, get insurance quotes online. Get at least three for the specific vehicle you need coverage over. Be sure to compare quotes of similar policies that offer equal coverage. You may also visit several reputed insurance companies in person to ask for any discount you may be eligible for. While checking the quotes online, you must include all the members of the family who will drive the car on your insurance quotes. The driving records of the people on your insurance will affect your rates, so if you leave people off for the quote, it may harm you in the long run.

    1. Make a purchase: After checking the quotes online, you can buy the policy that seem appropriate for your needs. You can either choose to pay the premiums every six months or fix your monthly installments. You must also print the copy of your insurance and keep it in your car in case you need it when to met with an accident or are pulled over.

  1. Switch insurance companies every few years: You can also save big on your car insurance if you switch the insurance company after two to three years. You must not switch too often as the insurer may ask how long you’ve been associated with your current insurance company at the time of purchase. While switching companies, do consider your needs, if they are changing. For example if you have kids now, who were not there in your early policy purchase, you must increase the liability limits then in your policy or add other features to get maximum benefit out of it. Don’t forget to ask the new company for the discounts. The maximum years who have been with your old company and your safe driving record will fetch you good discounts. At least once a year you must check whether you are eligible for the good driver and loyalty discounts.