10 Ways To Lower Your Auto Insurance

Nowadays, anonymous auto insurance is really expensive. A typical insurance policy can cost a few hundred dollars to a few thousand dollars a year. And the insurance rates you pay are hugely dependent on the insurance company or agent, your age, your car type, your driving record, and even the area you reside in!

You should never go without auto insurance though, despite the costs. Almost all the states require you to protect yourself with a minimum amount of liability coverage. Naturally, the bare minimum is not adequate enough for the average car owner. And as you add in additional coverage for your car, you realize that you will be paying a fairly large sum annually.

So, understanding auto insurance can actually help you to decide on a suitable insurance policy that won’t vacuum clean your wallet! Here, we have gathered 10 of the best tips for lowering your auto insurance, by as much as 40%!

Always compare insurance policies. There are states which regulate auto insurance rates, but the insurance premiums can vary by hundreds of dollars for the exact same coverage. It is definitely worthwhile to shop around. The first thing you can do is to check with your state insurance department. They often provide information about the coverage you need, as well as sample rates from the biggest companies. You can also ask your friends or look up the yellow pages. Checking consumer guides and asking insurance agents can pay off as well. You can easily find out the price range for your insurance policy, as well as discover the lowest prices in town.

However, you should not be shopping based on price along. The insurance company should provide good service at the best price. Excellent personal service is available as well, and they provide added conveniences, although they cost a fair bit more. Ask the company how you can lower your costs, and also check their financial ratings. The rule of thumb is always to get three price quotes from three different companies, and pick the one with the best value.

It can also be a good idea to increase your deductibles. When you file a claim, the deductible is the amount you pay before the insurance company pays for the rest of the damage. A higher deductible on collision and comprehensive coverage can lead to a much lower premium. For example, increasing your deductible from $200 to $400 can reduce your premiums by up to 25%. However, you must ensure that you have the financial resources to handle the largest deductible when the time comes.

Remove certain types of coverage from your policy. Almost all the states require liability coverage for your car, but the rest of the coverage is probably dispensable. However, you do not want to be underinsured if you’re in an accident, so it isn’t advisable to remove all of your additional coverage. Optional coverage includes medical payments, uninsured motorist, collision, and comprehensive coverage.

Drop collision and comprehensive coverage for older cars. If you drive an older car that’s worth less than $2,000, it’s probably more

cost-effective to drop collision and comprehensive coverage since you’ll probably pay more for the coverage than you’ll collect for a claim. You can find out the worth of your car by asking auto dealers and banks.

Make sure your credit report looks good. Car insurance companies often look at your credit history as there is a correlation between the risk to the company and your credit history. If you pay your bills on time and maintain a good credit history, you can enjoy lower insurance rates.

Drive less. Insurance companies often offer low-mileage discounts to motorists who drive less than a predetermined number of miles each year. You can use public transportation more often, car-pool with friends, and take the train or a plane instead of driving to another state. And you’ll save on more than your coverage as you’ll need to spend less on gasoline (of which prices are incredibly high).

Maintain a clean driving record. The company will give you a price break and you can save on your insurance policy after a specified period of a clean driving record. This means that you have no accidents, no serious driving violations etc, during this period of time. The simplest and surefire way to qualify for this discount is to drive carefully and defensively all the time.

Choose a low-profile car. Insurance rates vary among difference models of vehicles. Generally, sports cars and high-performance cars tend to cost more to insure, mainly because they represent more risk of theft and the drivers are often the people who drive more recklessly. Newer cars will cost more to repair or replace than older ones, so naturally they can more to insure. Low-risk vehicles include station wagons and sedans.

Ask about safety and security discounts. The insurance companies sometimes offer discounts on your insurance if your car is equipped with the following: anti-lock brakes, air bags, automatic seat belts, car alarms, tracking systems. These reduce the injury risk to you, as well as the chances of your car being vandalized or stolen.

Finally, ask about other discounts. You may receive a discount if you buy more than one type of insurance from the same company or if you insure multiple cars under the same policy or company. You may also receive discounts for taking a defensive driving course, staying with the same company for a few years, being a driver over 50, good-student discounts, and being an AAA member. If you already have adequate health insurance, you can also eliminate paying for duplicate medical coverage, thus lowering your personal injury protection costs by a substantial amount.

Why Giving a Free Auto Insurance Estimate is Good for Business

These days, a lot of coverage providers offer a free auto insurance estimate for every car owner or driver who walks in the office. This is a sound and effective business practice. In effect, the company is investing in image-building – that is – it is sacrificing potential profits in an effort to improve its public image. Every person knows that the better a company looks to the public; the more people will go to it.

Everyone knows that clients get a good part of a deal when a company gives out a free auto insurance estimate. On the other hand, here are a few benefits that a provider will get from the deal:

Giving a free auto insurance estimate makes transaction process easier on the part of a client. When you make an estimate, you do not only state a quotation. It is also necessary to compute monthly premium payments for clients to give him a more or less concrete idea on how to plan his finances for the next fiscal year. Add possible additions he needs to pay should they arise, then you have a good chance that a client will transact.

It allows more potential clients to consider your services when getting automobile coverage. This is because people like a company that they can trust. If you give something totally free of charge, you immediately get on their good side. Imagine; between two providers offering the same thing, the public will naturally go for one which gives more free services. The clientele gets better value for their money in case they close a deal.

Your company instantly gets free publicity. Word travels fast in any place in the world. In fact, an old saying goes that the best business advertisement is the feedback of its clientele. If everyone likes what you do, expect to get a lot of good publicity in the coming years, especially if you can keep giving out free auto insurance estimates for every customer.

Word travels fast – people love getting free stuff. In the same way that children will naturally like an uncle who always gives toys, car owners and drivers will prefer getting things they do not have to pay for. In reality, this is really a good thing considering the economic trend taking place nowadays. However, of course, not every security provider can afford to do this. Those who are still starting out need to earn every single dollar they can to stay afloat. Hence, if your company has reached a point where it can afford to do so, consider giving out services that people do not have to pay for.

Frequently Asked Question About who has the best auto insurance rates

What is covered by a basic insurance plan?

Your auto plan may include 6 programs. Each coverage is priced separately.

One) Bodily Injury Liability

This program applies to injuries that you, the driver or policyholder, cause to someone else. You and your family members listed on the service are also covered when driving someone elseís motorcar with their permission.

Itís very important to have enough liability auto insurance, because if you are involved in a serious accident, you may be sued for a large sum of money. Definitely consider buying more than the state-required minimum to protect assets such as your home and savings.

2) Medical Payments or Personal Injury Protection (PIP)

This coverage pays for the treatment of injuries to the driver and passengers of the program holder’s automobile. At its broadest, PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an car fortuity. It may also cover funeral costs.

3: Property Damage Liability

This service pays for damage you (or someone driving the car with your permission) may cause to someone else’s property. Usually, this means damage to someone elseís motorcar, but it also includes damage to lamp posts, telephone poles, fences, buildings or other structures your auto hit.

Four) Collision

This plan pays for damage to your vehicle resulting from a motorcar collision with another auto, object or as a result of flipping over. It also covers damage caused by potholes. car accident plan is generally sold with a deductible of $250 to $1,000óthe higher your deductible, the lower your premium. Even if you are at fault for the collision, your collision coverage will reimburse you for the costs of repairing your automobile, minus the deductible. If you’re not at fault, your automobile insurance group may try to recover the amount they paid you from the other driverís automobile insurance cost. If they are successful, you’ll also be reimbursed for the deductible.

Five) Comprehensive

This service reimburses you for loss due to theft or damage caused by something other than a car accident with another car or object, such as fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer.

Comprehensive auto insurance is usually sold with a $100 to $300 deductible, though you may want to opt for a higher deductible as a way of lowering your premium.

Comprehensive vehicle insurance will also reimburse you if your windshield is cracked or shattered. Some prices offer glass coverage with or without a deductible.

Six: Uninsured and Underinsured Motorist program

This coverage will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver.

Underinsured motorist coverage comes into play when an at-fault driver has insufficient insurance to pay for your total loss. This program will also protect you if you are hit as a pedestrian.

Can I drive legally without vehicle insurance?

NO! Almost every state requires you to have auto insurance. All states also have financial responsibility laws. This means that even in a state that does not require liability car insurance, you need to have sufficient assets to pay claims if you cause an collision. If you donít have auto insurance assets, you must purchase at least the state minimum amount of agreement. But vehicle insurance exists to protect your assets. Trying to see how little you can get by with can be very shortsighted and dangerous. The vehicle insurance industry and consumer costs generally recommend a minimum of $100,000 of bodily injury protection per person and $300,000 per accident since car crashs may cost far more than the minimum limits mandated by most states.

If you’ve financed your vehicle, your lender may require comprehensive and collision auto insurance as part of the loan agreement.

Will a repossession effect auto insurance rates

Not only you need to know how to read the plan, but you also must understand the car accident insurance coverage’s put forward in your auto policy.

Your insurance coverage’s are the promises your insurance company makes to you in exchange of a premium (a payment).

This premium is what ensures coverage for you, the program holder and the insured, in case of an vehicle insurance claim.

Remember car insurance is a business, and a very profitable one. If you really think about it, auto insurance is another form of gambling, just backwards.

When you gamble, you are betting that something good will happen (you will get that lucky number) in order to get a pay out.

With automobile insurance it is just the opposite, you are betting that something bad will happen (a vehicle car crash) in order to get a payout.

My point: automobile insurance firms have the odds against you, and just like casinos they are turning record profits.

insurance firms often increase those profits by paying less than they have to.

They do this by reducing cost in different areas of the automobile claim.

It is not unusual to see an insurance company trying to nickel and dime you (or your body shop, chiropractor, medical doctor, tow truck driver, rental car provider, etc.) on what is rightfully yours.

Therefore, you need to know your coverage’s and car accident insurance terms, and what exactly they mean. These pages will explain the auto insurance coverage’s, terms, and definitions in simple terms.

It is important to note that the objective of all vehicle insurance coverage’s is to indemnify the wronged party. Indemnification means “to put the person back in the position they would be if the accident never happened.” Basically, they have to make you whole again.

Achieving true indemnification is very difficult and sometimes impossible. No one can make the chance event disappear or make a bodily injury go away.

The insurance company will try to put the injured victim as close as possible to that position they were before the car crash by making monetary payments.

Most car insurance coverage’s are targeted or designed to do that. To put the wronged party back on the position they were before the collision.

car accident insurance firms use this concept against you. In other words, they will use it to tell you “the purpose of vehicle insurance is put you back to the same point you were before the accident, not to make you better off.”

They will argue that because of this concept, they can depreciate your damages. They will tell you that your vehicle did not have “new parts.”

You had a used vehicle and therefore they will put you “back on the same position” you were. A used car had used parts.

State legislators have made law to carry certain insurance coverage’s; however, you are only required to carry liability automobile insurance.

When there is an car accident insurance claim against you, your car insurance company covers that person (the claimant).

Some states also require Personal Injury Protection and Medical Payments coverage. However, remember that these coverage’s are the bare minimum coverage’s. Every other coverage is optional.

Free Auto Insurance Estimates

Get free auto insurance estimates before paying for your next auto insurance policy. If you do not have enough information about an insurance provider and the premium rates of its coverage, you will most likely choose one without sufficient logical basis. Perhaps, a choice is made because an agent selling a policy sounds credible or because a provider’s website is too attractive to ignore. Worse, you are just too lazy to shop around or search the internet to find cheaper offers. This should not be a problem with the use of free auto insurance estimates.

Almost all top insurance firms today have installed opt-ins to free auto insurance estimates. They usually put this at the homepage of their websites, the very first page you open when visiting. It is impossible to miss this. It usually has a huge button for clicking, should a visitor decide to try it. Its color ensures that it is noticeable even in the midst of graphics and text contents. In fact, some insurance providers prefer not to put anything much on the homepage so that this opt-in can be seen immediately. The message in this case is that the firm puts more emphasis on its rates. Those that have informative content along with the opt-in for the free estimates may think otherwise. They may prefer to educate visitors first on their services before offering prices.

Free auto insurance estimates can be misleading sometimes. If you just go and use it without learning more about a policy, you may end up with a decision solely based on what is perceived as cheap. However, it may not be a better deal. If the coverage chosen cannot deliver the service it promised, its price can be considered too expensive for its quality. There are insurance firms that offer higher premiums, but then their level of service is near excellent, which makes prices cheap. Therefore, you should not make the result of estimates as the only basis for making a choice. Quality is relative to price, so it is important to find out details of both.

As mentioned above, some insurance providers prefer to give free auto insurance estimates without much detail of its policies. This is certainly not a very good sign. It gives an impression that they are not too confident about the attractiveness of their offer. This should tell you to look for another insurance firm’s website instead.

Compare auto insurance rates advice

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

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

How can you stay alert while searching through this cloudy 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 auto insurance service. The quotes (for very basic coverage on two old car) ranged from $1,006 to $1,807 — a difference of $801 a year. If you’re currently dumping thousands into your insurance companies coffers because of a couple of tickets, an accident, or a questionable credit score, shopping your policy against others may be well worth the effort.

Look at it this way — you can convert the money you save into buying 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 car 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 vehicle insurance in “How Much car insurance Do You Really Need?”. Also, check out “Little-Known But Important car 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. auto insurance companies love these people. That’s because auto insurance organizations know what your chances are of being killed or maimed, and how likely it is for your vehicle to be damaged or stolen. The information the car insurance organizations has collected over previous decades is crunched into “actuarial tables” that give automobile insurance adjustors a quick look at the probability of just about any occurrence.

It is important to keep in mind that the basis of car insurance is a difference of opinion between you (the insured) and them (the auto insurance firms). You believe you will, at some point, probably get in an chance event. The car insurance company believes you probably won’t. And the vehicle insurance chance event, 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, director of the Insurance Consumer Advocate Network (I-CAN) and former insurance adjuster, advised. “If you have assets to protect — and that is all auto 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 car crash in which you’re at-fault and the other party’s medical bills exceed $50,000.

Dennis noted that his general recommendation for liability limits are $50,000 bodily injury liability for one person injured in an fortuity, $100,000 for all people injured in an car crash and $25,000 property damage liability (that is, 50/100/25) given that half of the vehicles on the road are worth more than $20,000. Here again, though, let your financial situation be your guide. If you have no assets, don’t buy excess coverage.

Another issue D howard mentioned is that the limits of any uninsured and/or underinsured motorist coverage that you purchase cannot exceed the limits of your liability coverage. Such coverage, he said, can be valuable, as it will cover lost income if you’re out of work for several months after being injured in a major car crash.

Your driving habits may also be a condition. If your past is filled with crumpled fenders, if you have a lead foot or a long commute on a treacherous winding road, then you should get more comprehensive coverage.

“Consumers should also be aware that they don’t have to buy the service [of collision and comprehensive coverage],” D howard, said. “If your automobile is older, if you have a good driving record and if there is a low likelihood that it would be totaled in an fortuity, but a high likelihood of it being stolen, you could buy comprehensive but not collision.” Seems like good advice for all of the 1989 Toyota Camry owners reading this article — this has been the most stolen automobile in the nation for several years (it’s often stolen for parts). But we would expect that most of them on the road have well over 100,000 miles.

At this time, a rather sobering point needs to be interjected. Just having vehicle insurance doesn’t protect you from absolutely anything bad that might happen. First, the insurance organizations needs to back up the claims that they make in the fine details of the contract. TV ads show folksy adjustors at the scenes of natural disasters passing out claims checks like coupons for cocktail wieners at a supermarket. But, in case you haven’t noticed, real life is a bit different from TV ads. If you have an car crash, your automobile insurance organizations will take a close look at your claim before mailing you a check. And the check may be written for an amount much smaller than you had hoped. For this reason, you should be intimately familiar with the terms of your policy and call the companies with any questions you might have.

Now that you have made several practical and philosophical decisions, it’s time to start shopping. Begin by setting aside about an hour for this task. Bring all your records — your current vehicle insurance policy, your driver license number and your vehicle registration. Drink plenty of coffee. Have a phone at your elbow. And, of course, power up your computer.

Begin with the web based services. If you go to InsWeb.com or other auto insurance quote sites, you can type in your information and get a list of comparative price quotes. The form takes about 15 minutes to complete. If this bores you, just remind yourself that you are saving money and you can use that money to buy something nice for yourself. If the entire shopping process takes you two hours to complete, and you save $800, you’re effectively earning $400 an hour.

A few things to keep in mind: (1) When you use quote services, you may not get instant vehicle insurance price quotes. Some companies may contact you later by e-mail, and some that are not “direct providers” may put you in touch with a local agent, who will then calculate a quote for you. (A “direct provider,” like Geico, sells an auto insurance policy to you directly; other firms like State Farm sell automobile insurance through local agents. We’ll discuss the pros and cons of each later.) (2) It’s not easy to get quotes from these sites in all states — if you live in New Jersey, for instance, you’ll probably find it faster to pick up the phone, since most insurers currently don’t provide online price quotes for this state.

You can also try getting insurance quotes from some of the insurance organizations listed on the Edmunds.com Web site — Esurance, Geico, or Progressive. The forms will take about 10 minutes each to complete.

Of course, there are many other insurers that you can contact online. But remember, while you’re researching organizations, make notes in a separate computer file or on a piece of paper divided into categories. This will keep you from duplicating your efforts. When you visit the different online insurance sites you should take note of several things:

Annual and monthly rates for the different types of coverage — make sure to keep the coverage limits the same so that you can make “apples-to-apples” comparisons

An 800 number to call for questions you can’t get answered online

The insurance organizations payment policy (When is your payment due? What happens if you’re late in making a payment?)

Discounts offered by the insurance companies that pertain to you

The automobile insurance organizations consumer complaint ratio from your state’s department of automobile insurance Web site (more on this below)

The automobile insurance companies A.M. Best and Standard & Poor’s ratings (more on this below)

Once you have exhausted your online options, it’s time to work the phones. Those firms you haven’t been able to get an online price quote from should be contacted. Surprisingly, doing this process verbally can actually go faster than the online counterpart, providing you have all the information regarding your driver license and vehicle registration close at hand. When you get a price quote, be sure to confirm the price. Also, ask them to fax or e-mail the quote to you as a record.

While talking to the automobile insurance firms telephone salespeople, make sure you explore all options relating to discounts. car insurance companies give discounts for a good driving record, favorable credit score, safety equipment (for example, antilock brakes), certain occupations or professional affiliations, and more. For more guidance in this area, check out “How to Save Money on auto insurance.”

Always bear in mind that your mission isn’t just to buy the cheapest vehicle insurance out there; it is to buy the cheapest car insurance and still receive adequate coverage and service. “You don’t want to pay to get a great deal on auto insurance and then not get your car repaired after an car crash,” Heller noted.

Your final selection should depend on two things:

a. the reliability of the insurance organizations based on the criteria above;

b. the price of the quote.

We can all find the lowest premium, but it may not be immediately obvious how to determine whether a firms is reliable. When we say “reliable,” we’re talking about how the insurer treats you, the customer. Particularly, how will the firms deal with you when you file a claim? Will you be paid the full amount to which you are entitled? And will you be paid promptly?

 

Auto Insurance Estimates

Auto Insurance Estimates provides the tools and information you can use to get auto insurance estimate and make an informed buying decision. Learn about different coverages and options available when buying car insurance and the tricks to finding the lowest cost car insurance. Car insurance is easy to quote and buy online, but more important than getting the lowest rates is understanding what you are buying and why you need it.

Comparing auto insurance estimate can help consumers save money on their car coverage and find the best possible policy package for their budgets and needs. The Internet has hundreds of quotes online with individual agents and brokers. Car coverage brokers can make getting a quote from several different agencies a simple and expedient process. There are several steps that consumers can take to ensure getting the very lowest auto insurance estimate for their cars and drivers. Following are a few tips to help car drivers and car buyers find an insurer and premiums that will save money.

The best advice given in the search for low quotes is the advise of comparison shopping. Consumers are encouraged to seek an auto insurance estimate from a broad range of small and large insurers. The differences in quotes can be surprisingly dramatic at times. The Internet is a great place to begin gathering quotes because the Internet has quite a variety of options to offer. There are brokerage firms online that offer auto insurance estimate from several insurers. Consumers may submit information to one firm, and then receive quotes gathered from several agencies within twenty-four hours. Also, comparison shopping quotes from local insurers with those agencies on the Internet will give consumers a broader range of insurers to choose from.

There are other ways to save money and receive a low quote on car coverage. Consumers purchasing car insurance can ask for a higher deductible, making monthly premiums lower. Also, before buying a new car, check out the insurance costs on the make and model of car under consideration. Some cars may yield higher auto insurance estimate than others. There can be various reasons that the make of a car can determine the auto insurance estimate and these reasons can range from crash test results to cars that are made for sports and recreation.

A poor credit history and a poor driving record can also affect a car quote. Consumers are advised to personally review their credit reports looking for incorrect information that may be a factor in the auto insurance estimate. Searching for auto insurance estimate can be taxing, but the time spent will be worth the time invested. Taking time to research is exercising wisdom.

Options auto insurance rates comparison for cars

There are a number of things that you can do to lower your car insurance, not the least of which is switching providers. Before you start searching for a new auto insurance coverage provider, take a look at all of the things that you can do to reduce your current automobile insurance.

How can I lower the cost of my current auto insurance?

Once you’ve examined the ways to lower the cost of your current automobile insurance policy, the next best thing to do is to comparison shop. There are a number of websites that offer you the opportunity to compare insurance prices from multiple organizations. Make sure you fill out their questionnaire honestly and fully – they will eventually learn if you are hiding a speeding ticket or two and your rates are adjusted.

 

Once you’ve received multiple quotes, you now need to evaluate which auto insurance coverage insurer is the best one for you. This is an important step in your evaluation as you will have the opportunity to detect scams and possible rip-offs. Generally speaking, if the automobile insurance firms provides auto insurance nationwide and carries a familiar brand name you can put some confidence in that insurer. You should still do your homework though. Related automobile insurance Questions:

auto insurance organizations use a number of different factors when they set your prices policy costs. In general, an auto insurance coverage companies will charge you a higher premium if they feel you and your car are more likely to be in an fender bender.

Drive safely (or don’t get caught): This is really a longer term solution, but all automobile insurance organizations penalize drivers for unsafe driving as indicated by speeding tickets and other moving motorcar violations. It usually takes several years for a ticket to get removed from your record and to no longer have an impact on your automobile insurance service, but you don’t want to get new tickets.

Whatever you do, do not drink and drive. You will likely be dropped by your current auto insurance organizations and your auto insurance coverage will become tremendously expensive.

Raise your deductible: The deductible is the amount that you pay if your vehicle is in an accident. A reduce deductible is generally around $250, while a high deductible is usually around $1000. You pay more for automobile insurance if the deductible is lower since the auto insurance coverage providers will have to pay more for any accident you are in. If you drive safely, and don’t get in an fender bender, then raise your deductible some and lower your payments. Make sure that you have enough money in your bank to cover the increase if your automobile is in an chance event.

Drive less: Most auto insurance organizations offer a discounted policy costs for cars that are driven less than 10,000 miles year. If you are driving less than 10,000 miles a year, call your car insurance firms and make sure that this is reflected in your insurance policy.

Take a defensive driving course of study: If you have one or more tickets in the past few years you may be able to remove them from your record (or offset them) by taking a defensive driving course of instruction. Most states offer a class: that you can take in safe driving.

Add anti-theft or safety devices to your auto: motorcar alarms, airbags and anti-lock brakes all reduce the amount you need to pay for auto insurance coverage. If you are considering adding one of these features, call your auto insurance coverage companies to investigate the impact. Also, if you already have one of these devices on your vehicle, make sure that they are reflected in your car insurance policy.

Select the right amount of car insurance coverage:  There are a whole range of options when you are purchasing auto insurance coverage. Make sure you understand what your needs are and that you purchase the right amount of coverage. You may be paying for too much coverage. We have a special section dedicated to answering this doubtfulness.

 

Different Types of average auto insurance rates

If you own a car, no doubt you’ll understand when people sit around complaining about the monetary value of their automobile insurance. But, the fact is that the monetary value of you car insurance is going to depend as much on what type of car insurance you buy as it is on what car insurance firm you use to insure your vehicle.

So, what are the dissimilar types of car insurance options available?

Fully comprehensive car insurance

Fully comprehensive vehicle insurance is without doubt the most expensive. However, with so many vehicles financed by finance firm, it is also probably the most common type of insurance – as the finance company make it a requirement that the owner insure their auto fully comprehensive.

In short, as its name suggests, fully comprehensive vehicle insurance insures the owner of the vehicle against all manner of events – from an accident to theft of the motorcar. The upside of this type of automobile insurance is there is no need to show ‘fault’ in order to claim. So, if you have an fender bender, which is not your fault, and the owner of the other motorcar, who is at fault, doesn’t give you his vehicle insurance details, or, worse, is uninsured, you can still claim against your vehicle insurance group. Similarly, if your vehicle is stolen, then fully comprehensive car insurance allows you to claim against the insurance company.

However, do read your car insurance plan carefully, as most automobile insurance companys refuse to insure 100% of the value of a auto, choosing instead to only insure 80%, or so, of the value. The auto insurance groups claim that doing this prevents fraudulent losses of vehicle where the owner of the automobile either no longer wants the vehicle, or is encountering financial difficulty.

Third Party, Fire & Theft

Third party, fire & theft insurance is a middle of the road automobile insurance package popular with those who have already paid off their auto loans, but who still have a certain level of intrinsic value in their motorcar.

Under this type of car insurance, most of the pay-out events covered under fully comprehensive v are covered – such as fire & theft. However, in the event of an car accident, the car insurance company is only required to pay-out if you are at fault, and you hit another auto. So, in the event that you hit a wall, or only damage your motorcar, the vehicle insurance group will not be required to pay. Likewise, if you are involved in an car car crash with another car, and are not at fault, your car insurance organization will not be required to pay-out, regardless of whether or not the other person has sufficient auto insurance to pay for the damage done to your auto.

Third Party auto insurance

Third party automobile insurance is the ‘basic’ type of car insurance, and only covers circumstances where you are involved in a auto collision, are at fault, and hit a third party. In all other events, the insurance company is not required to make a payment. As such, it is also the cheapest type of automobile insurance you can purchase. That said, this type of automobile insurance is usually only purchased by those car owners who have an old motorcar with little or no value.

Specialized vehicle insurance

Finally, strictly speaking any vehicle over 25 years old is considered a ‘classic’. As such, this type of auto should be insured as a classic auto – with all of the benefits and requirements of such. Although ‘classic’ auto insurance usually has all of the benefits of fully comprehensive auto insurance, one significant disadvantage that classic vehicle insurance has is that you are usually limited to the number of road miles you can drive in any given year – so check your plan carefully.