Monthly Archives: July 2016

Top tips for shop a car insurance

The word shopping brings a feeling of immediate excitement to most people. But if you combine the word shopping with car insurance — as in “shopping for car insurance” — it produces the opposite effect. The thought of shopping for auto insurance makes the eyes glaze over and the heart rate drop to the pace of a slumbering couch potato. Couch potato? Indeed. Doug Heller, a consumer advocate at The Foundation for Taxpayer & Consumer Rights (a California-based consumer advocacy group) and a recognized insurance issues specialist, told us that too often “people purchase insurance by calling the number on the screen.”

But wait, this is important stuff! You want to be adequately covered if you get in an accident. And you certainly don’t want to pay more for car insurance than you should. Maybe waiting for a solution to be beamed into your living room is not the best idea.

How can you stay awake while navigating through this murky subject? Just remember: There is money to be saved. How much? Hundreds, even thousands, per year. For example, one of the authors typed all of his insurance information into a comparative insurance service. The quotes (for very basic coverage on two old cars) ranged from $1,006 to $1,807 — a difference of $801 a year. If you’re currently dumping thousands into your insurance company’s coffers because of a couple of tickets, an accident or a questionable credit rating, shopping your policy against others may be well worth the effort.

Look at it this way — you can convert the money you save into the purchase of something you’ve lusted after for a long time. Hold that goal in your mind. Now, let’s begin.

Before you can shop for something, you have to decide what you need. The first step in finding the right auto insurance for you is to figure out the amount of coverage you need. This varies from state to state. So take a moment to find out what coverage is required where you live. Make a list of the different types of coverage and then return for the next step. (You will find a list of each state’s requirements and an explanation of the various types of insurance in “How Much Auto Insurance Do You Really Need?”. Also, check out “Little-Known But Important Insurance Issues” as it has a glossary of basic insurance terminology.)

Now that you know what is required, you can decide what — if anything — you need in addition to that. Some people are quite cautious. They base their lives on worst-case scenarios. Insurance companies love these people. That’s because insurance companies know what your chances are of being killed or maimed, and how likely it is for your car to be damaged or stolen. The information the insurance company has collected over previous decades is crunched into “actuarial tables” that give insurance adjustors a quick look at the probability of just about any occurrence.

It is important to keep in mind that the basis of insurance is a difference of opinion between you (the insured) and them (the insurance company). You believe you will, at some point, probably get in an auto accident. The car insurance company believes you probably won’t. And the insurance company is willing to take your money to prove you wrong.

So how much auto insurance should you buy beyond your state’s minimums?

“Look at your personal financial situation,” Dennis Howard, director of the Insurance Consumer Advocate Network (I-CAN) and former insurance adjuster, advised. “If you have assets to protect — and that is all insurance is doing — get enough liability coverage.” For instance, if you purchase $50,000 of bodily injury liability coverage but have $100,000 in assets, attorneys could go after your treasures in the event of an accident in which you’re at-fault and the other party’s medical bills exceed $50,000.

Tips for Save Money on Car Insurance

unduhan-19There is a very good chance that you are — this very moment — paying too much for your car insurance. There is an even better chance that you could get a better rate, from another insurance company, than you could from your existing insurer.

So why not take an hour or so and review your policy for potential savings? Or, if you’re fed up with the high insurance rates from your current insurer, shop around for a new company.

The Internet has created increasing competition between car insurance companies. It is easier than ever for consumers to shop for low insurance rates, to analyze coverage and compare premiums. Still, studies have shown that people don’t shop around for insurance in the same way they might shop for a new car. Also, people tend to stay with the same car insurance company for years. Why not prove these studies wrong? Put the power of the Net to work for you and save money in the process.

You can save on auto insurance in five ways:

  1. Make sure you get all discounts you qualify for
  2. Keep your driver’s record clean and up-to-date
  3. Adjust your coverage to assume more risk
  4. Drive a “low profile” car equipped with certain money-saving safety features
  5. Shop around for a good, low cost insurance provider

First, let’s look at the discounts you might qualify for. Discounts fall into a number of categories:

  • Low-risk occupations
  • Professional organizations
  • Combined coverage
  • Discounts for safety features
  • More risk assumed by driver
  • Discounts for senior citizens

 

Low-Risk Occupations

Insurance is a numbers game. Adjustors collect information about what types of people get into accidents. Over the years they see a trend. Drivers that work as engineers tend to get into fewer accidents. Why? It would be fun to speculate about the reasons (pocket protectors — need we say more?) but the insurance companies don’t really care about that. All they know is that, in fact, engineers are a low risk. Since there is less chance that they will wrap their cars around the trunk of a horse chestnut tree, they charge engineers less for insurance. Simple.

But you say you are a teacher instead of an engineer? You might still be in luck. There may be discounts for teachers. You never know unless you ask — and unless you shop around. Not all insurance companies are the same.

Professional Organizations and Auto Clubs

Have you ever been about to pay $100 for a hotel room, only to discover that a AAA discount saves you 15 percent? Now you’re paying $85 and feeling proud of yourself. It’s similar in the insurance business. Affiliation with AAA — and certain other professional organizations — will lower your rates. You should check with your employer to see if there are any group insurance rates. At the same time try checking directly with the insurance company representative when you inquire about the cost of policies.