How to Save Money on Auto Insurance

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Auto insurance: just about everybody needs it, but almost nobody really wants it. After all, car insurance bills are a lot to pay for something you may never end up needing. While many of the factors that affect insurance premiums are out of your control, there are a number of things you can do to increase your chance of getting the lowest price for your coverage. Here’s how to get the insurance protection you need while also protecting your wallet.

Steps

1. Shop around. In most states, insurance companies’ rates vary wildly. Different companies may have better rates for different vehicles or different zip codes. One company may have great rates one year and then raise them the next, so it pays to shop around periodically. Get as many quotes as you can, and get them in writing if possible. Be honest with each agent so that he or she can give you an accurate rate, and have each company quote you for exactly the same coverages—if you’re not getting “apples-to-apples”? quotes, you can’t tell which company is really cheaper. Also look into doing the following:
   • Insure all your cars with one company. You can save big with “multi-car”? discounts, so you should generally insure all your cars in one place if at all possible.
   • Insure your home where you insure your cars. Many companies offer discounts if you have both your home (or tenants) insurance and auto insurance with them. The discount may apply to one policy or to both. Even if you can find a better price with another company for one of your policies, your total insurance cost may be lower if you have both policies with the same company. Sometimes you can also get discounts for insuring boats.
   • Get insurance quotes for vehicles before you buy them. If you’re in the market for a new car, but you can’t decide between a few different models, call your agent and find out how much it will cost to insure each one. Insurance companies calculate vehicle-specific rates based on how much the vehicle costs and how often a particular model is involved in accidents or is stolen, among other things, so the premium difference for similar cars may be substantial.
2. Stay insured. Never let your insurance policy lapse. You may find it difficult to obtain insurance if your policy expires, and your insurance may be more expensive than it was before. Customers who let their insurance expire—even for a couple days—are statistically higher-risk, and insurance companies often charge extra for this.
3. Increase your deductibles. Some coverages, notably comprehensive and collision, have deductibles, an amount you pay out of pocket before the insurance company begins to pay. The higher your deductible, the lower the price for that coverage, so have your agent quote you higher deductibles to see how much you could save. Make sure that you can afford to pay your deductible before raising it—a $1,000 deductible, for example, may be substantially cheaper than a $250 deductible, but you’ll have to pay $750 more in the event of an accident.
4. Buy only the coverage you need. Review your coverage with your agent at least once a year. Depending on your assets and personal preferences, you may not need as much liability coverage as you currently have, or you may wish to reject certain coverages such as uninsured motorist or personal injury protection. Make sure you fully understand the implications of dropping or reducing coverage—in many cases, the extra risk you take on by doing so exceeds the money you save. For example, if your car isn’t worth much, you may be better off dropping the coverages that protect against damage or theft. You may also be able to drop just collision coverage, which is usually the more expensive of the two. Check your policy to see how much comprehensive and collision cost you, and make sure that if you drop the coverage you could afford to repair or replace the vehicle on your own.
5. Don’t insure vehicles you don’t drive. If one of your cars broke down and has been sitting in the backyard for a year, make sure it’s not still on your insurance policy. Keep in mind, though, that many states require that you have any registered vehicle insured, so if you drop insurance you may want to register the vehicle as “inoperable”? to avoid any complications or penalties. Only drop a vehicle from your policy if you’re sure you’re not going to be driving it for a long time.
6. Buy a longer policy. There may be a price penalty attached to 3- or 6-month policies, so the longer your policy term, the cheaper your rates will likely be. Regardless of the length of your policy, you may be able to save money by paying it up front in full instead of in monthly installments. If installments are the only affordable option, you may be able to avoid fees by having your premiums automatically deducted from your bank account each month.
7. Take a driver training course. Some companies offer discounts—especially for kids or people over 55—for taking an approved driver training course. Check with your agent before investing a lot of money in such a course, however, as the discount usually isn’t very big. Nonetheless, no matter what your age, a training course may help you become a better driver, which will lower your insurance premiums in the long run.
8. Drive safely. Accidents, especially accidents where you are at fault, may increase your insurance premium, usually for 3-5 years. If you haven’t had an accident in a while, be sure to ask your agent if you qualify for an accident-free discount. If you get into a minor accident, especially one in which yours is the only vehicle involved, you may want to pay out of pocket instead of reporting a claim—the amount you pay in accident surcharges can be more than the vehicle repairs if the claim is just for a few hundred dollars.
9. Avoid tickets. Speeding tickets and other moving violations can push your rates up substantially and these, like accidents, usually affect your insurance for 3-5 years.
10. Build good credit. There is a statistical correlation between certain aspects of a person’s credit rating and the number of insurance claims the person might be expected to file, so depending on what state you live in, many insurance companies charge more for bad credit or give you a discount for good credit.
11. Make the kids wait to get their licenses. Young, newly licensed drivers are the most likely to get into accidents, and insurance companies price for them accordingly. If your child gets his or her drivers license, you must pay the extra premium, and the price increase will probably shock you. It can be hard to make your kid wait to drive, but if insurance bills are already stretching you thin, it may be the best choice. If your child already has a license, you may be able to exclude him or her from coverage by signing an exclusion form. Rates usually go down a little after the driver turns 18, and the price plummets later, usually at age 21 and/or 25.
12. Drive less (if you can!). Some insurance companies offer a discount of up to 10% if your annual mileage is less than 5000, and up to 5% if you drive less than 7,500 miles per year.
13. Install an anti-theft unit if you don’t have one already! Some insurances will provide discounts of up to 36% depending on the category of the anti-theft device.

Tips

• Review your policy at each renewal. Make sure that all your discounts still apply, and check to see if you may be eligible for additional discounts. Sometimes discounts need to be certified each year(“good student”? discounts, for example), and sometimes a computer glitch will accidentally drop a discount from your policy.
• Keep your insurance policy up-to-date. A lot of variables affect your insurance rates, so if your situation changes you’ll want to make sure your policy reflects that. If you get married, if you’ve moved, if your commute to work has changed, or if you’ve installed a car alarm, for example, your rates may be reduced. Keep in mind, however, that if your commute is longer, or if you’ve moved to a neighborhood with higher loss rates, your price could go up.
• In the long run, it often doesn’t pay to switch insurance companies, especially if you do it a lot. Insurance rates may go up and down—usually up—each year, and if you switch companies for a lower rate you may find that your rates increase even higher at the next policy renewal. In addition, if you stick with a company for several years, you may become eligible for a “long-term”? discount. Additionally, you may earn “accident forgiveness”? as a long-term customer, so that if you get into an accident, your premiums won’t rise.
• Find out if you qualify for any group plans. For example, if you are an alumnus of a college or university, or a member of a professional organization, you may qualify for an affinity discount or a special group plan with one or more insurance companies.
• Don’t be afraid to get a second opinion. Not sure if you need the coverage your agent advises you to have? Check with another agent or your attorney for advice.
• Make your child earn driving privileges by getting good grades. If you do allow your son or daughter to get a drivers license, insist he or she get good grades in school. The “good student”? discount can save you up to 20% or more off the rate you pay for a child. A “B”? average (3.0 GPA) is usually required to qualify.

Warnings

• When it comes to buying insurance, deal with a reputable auto insurance firm. You can always check their Insurance Bureau rating before purchasing insurance from them, and you can find out about complaints (and file one, if necessary) by contacting your state’s insurance commissioner.
• Make sure you are adequately covered. While lowering your liability coverage limits or declining injury protection may save you money, the decision might be unwise. Many people don’t carry enough liability coverage as it is. Remember, if you’re liable for injuring someone, the medical costs could reach hundreds of thousands of dollars, and if you can’t pay those costs, you could be sued and have your wages garnished or your assets (including your home) taken. Discuss your coverage with your insurance agent or attorney, especially if you’re thinking of making any changes.
• Do not exclude a driver from your policy unless you can be absolutely certain that he or she will never drive your vehicle. If the excluded driver gets into an accident, you will have no coverage and will be responsible for paying for your own repairs and any liability to others.
• Don’t lie to your insurance agent. Insurance companies check your accidents, tickets and some other information on a national database, so if your rates go up because of an accident, you can’t just switch to another company for a lower rate. If you lie to your insurance company or omit to tell them about something that affects the rate (a young driver in your household, for example), this could be considered a “material misrepresentation”, and any claim you make may be denied.
• Never drive without insurance. Driving without insurance is illegal in almost all jurisdictions, and the fines and increased insurance costs can be staggering. If you get into an accident while uninsured you will have to pay out of pocket for any injuries or property damage you are responsible for.

Related wikiHows

• How to Buy a New Car
• How to Save Money on Gas
• How to Avoid a Traffic Ticket
• How to Repair Your Credit
• How to Avoid Annoying Other Drivers
• How to Live Without a Car
• How to Know Which Insurance to Take on a Rental Car

Sources and Citations

• Insurance Information Institute A fairly comprehensive resource for questions on all kinds of insurance, including auto
• Pueblo.gsa.gov Insurance Information Institute article on reducing your auto insurance
• ConsumerAction.gov List of state insurance regulatory departments
• Insurance Institute for Highway Safety Loss ratings for most vehicles

Article provided by wikiHow, a wiki how-to manual. Please edit this article and find author credits at the original wikiHow article on How to Save Money on Auto Insurance. All content on wikiHow can be shared under a Creative Commons license.

The average auto insurance policy price is derived from a variety of factors. Many of these variables are common knowledge and make sense for the most part but it’s always a good idea to refresh yourself with what insurance companies are looking for when determining how much your coverage will cost.

Driving Record ? Your auto insurance policy price is determined from 6 major areas. The first is your driving record. The key thing to remember is the better your driving record the lower your total cost to insure your automobile. This would include auto accidents, speeding tickets and believe it or not if you’ve gone without insurance for several years. The good thing is that you can directly control many of these factors. Concentrate on keeping a clean driving record and this area shouldn’t cause your rates to be outrageous.

Coverage Amount ? Do a self check sometime and call your insurance company up to see what impact raising and lowering your deductibles and coverage amount has on the price of your insurance. Raising a deductible lowers your monthly payment. Increasing the deductible has the opposite effect. The same goes for the actual coverage amounts.

Age ? Case studious have proven that younger drivers are involved in more accidents then older drivers. This potential to be involved in a collision is a result of inexperience behind the wheel of an automobile. Generally speaking most insurance companies charge more for individuals under the age of 25.

Vehicle Model and Driving Mileage ? If your interested in that fancy new sports car you may want to check how much it will effect your auto insurance policy price. Thanks in large part to theft, vehicular costs and safety records some cars rate a higher premium over other vehicles. As if it wasn’t bad enough the amount of annual miles you place on your vehicle through driving can increase your auto policy. The average used is 10,000 miles in a year. If you exceed that total then you can expect a rate increase based on your increased potential to be involved in an auto accident.

Your Residence ? It’s a pretty safe bet that you’ll pay more for your auto insurance policy if you live in a big city when compared to a nice farm out in the country. The city probably has more thefts and accidents, which lead to higher costs absorbed by the insurance company and then passed along to the consumer when the insurance companies determine your auto insurance policy price.

Hopefully this information can help you focus in on some areas within your auto policy that you can review with your insurance agent in the hopes of actually lowering your auto insurance rates instead of raising them.

Timothy Gorman is a successful webmaster and publisher of Best-Free-Insurance-Quotes.com. He provides more insurance information and offers discount home, life and auto insurance. that you can research in your pajamas on his website

Did you find this article useful, if you did please visit and get your free online insurance click here

Auto insurance is an agreement between you and your insurance company where you arrange to pay a premium in an exchange for the peace of mind that your insurance agency will pay for vehicle related financial losses during the duration of the policy. You need auto insurance because you are liable by law to pay for losses you cause to others in the event of an automobile accident. Purchasing auto insurance is the surest way to guarantee you will be able to fulfill your end of the bargain. In some states it is required that you have minimum forms of insurance in order to drive. You also must have insurance in order to finance a car.

One of the first questions you will be asked when obtaining automobile insurance is how much of the covered loss or deductible do you want to be your responsibility? You may choose between $100, $250, $500, or $1,000. The higher your deductible the lower your premium however you must keep in mind that the deductible is the amount you must pay before your insurance will assist you. If you cannot afford to pay the first $1,000 of the covered loss you may want to consider how much you can afford and choose a lower deductible.

Your insurance coverage is broken down into each purpose you would need to be covered for. One of the most common coverages include liability which pays out when the insured driver is legally responsible for bodily injuries and property damage they cause to others. Bodily injury damages cover medical expenses, pain and suffering, lost wages and other special damages. Property damage includes damaged property and loss of use. Liability also pays legal defense expenses. Each state has a set minimum amount of coverage you must carry but you may opt for higher amounts.

Personal injury protection pays medical expenses for covered individuals despite who is at fault for the accident. It also covers rehab, lost wages, replacement of services and funeral expenses. Medical payment coverage pays medical and funeral expenses regardless of fault when the causes of these requirements are due to an automobile accident. Collision coverage pays for damage to an insured vehicle caused by collision with another vehicle or object. Your deductible will apply to collision coverage.

Comprehensive coverage pays for loss of or damage to an insured vehicle unless is damaged or lost as the result of a collision. Comprehensive would cover losses due to theft, fire, wind, hail, flood, vandalism or impact with an animal. Your deductible will apply to comprehensive coverage.

Uninsured motorist pays for loss or damage caused by another driver who does not have liability insurance. Underinsured motorist coverage pays when the insured driver is injured in an automobile accident caused by a driver who has an inadequate amount of liability insurance. Rental reimbursement pays rental vehicle costs when your vehicle is put out of commission as the result of an automobile accident. Daily monetary limits may apply. Emergency roadside assistance coverage pays towing expenses when your vehicle breaks down. Distance limits may apply.

Your policy will generally cover you, your spouse children and other family members who reside in your residence as well as anyone else who has permission to drive your covered automobile.

Timothy Gorman is a successful Webmaster and publisher of Best-Free-Insurance-Quotes.com. He provides more insurance information and offers free money saving home, life, health and auto insurance quotes that you can research in your pajamas on his website.

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Having even a teeny-tiny car accident can be one of life’s least enjoyable moments. However, accidents happen, and sooner or later, we all have the experience of meeting one of our fellow road travelers up close and personal. Using the following seven steps to filing your claim will help you get over this speed bump as smoothly as possible.

Step 1: Understand your policy

Before a loss, sit down and carefully read your insurance policy. Call your agent or company if you have any questions about what is or is not covered.

Step 2: Exchange information

If you are involved in an accident, get the other driver’s name, address, phone number, insurance carrier, and insurer’s phone number. Be prepared to give the same information about yourself to the other driver. You can find insurers’ telephone numbers on the proof-of-insurance cards that should be carried on your person when operating a motor vehicle.

Step 3: Identify witnesses

Ask witnesses to the accident for their names and phone numbers in case their account of the accident is needed.

Step 4: File an accident report

Contact local law enforcement officers to have an accident report prepared. If law enforcement is not reachable, accident reports and detailed instructions are available at all police departments, sheriff’s offices, your local Department of Motor Vehicles office, and on your local Department of Motor Vehicles’ web site.

Step 5: Notify your insurer

Contact your insurance company about the accident as soon as possible. An insurance adjuster will review the accident report to determine who caused the accident. If the accident was not your fault, you can have either your insurance company or the at-fault driver’s insurance company handle the repair or replacement of your vehicle. If you use the other driver’s company, you will not have a claim on your automobile policy and you will not have to pay a deductible.

Step 6: Do not release insurers too early

Do not relieve your insurance company of its responsibility until the damages are settled to your satisfaction. For example, have your insurance company handle the claim if the other party’s insurance company questions its policyholder’s negligence or offers an unacceptable settlement.

Step 7: Consider these settlement factors

. Bodily injuries: You may be entitled to a monetary settlement for injuries caused by another at fault (liable) party. It can take several days for some injuries to become apparent.

. Damages: The insurance company is responsible to pay for the reasonable cost of repairs to your vehicle. An insurance adjuster will assess the damage. Usually, insurance companies and auto body shops negotiate disagreements about what should be repaired. If you disagree with their conclusions, you have the right to obtain another appraisal at any auto body shop.

. Appraisal clause: Most auto insurance policies include an appraisal clause, which can be used to help settle disputes about physical damage claims between you and your insurance company. (The appraisal clause does not apply for claims you file with the other party’s insurance company.) If you cannot reach an agreement with your company, you or your insurer can initiate the appraisal clause. Your appraiser and your insurer’s appraiser then select an independent umpire to try to resolve the dispute. Check your policy or ask your agent or insurance company for more information about the appraisal clause.

And that is it. While filing a claim is certainly no fun, following these seven steps will make the process almost as easy as getting free quotes and purchasing your car insurance at http://www.carinsurance.com.

Visit http://www.carinsurance.com For Your Free Quote

Jon Register is a representative of CarInsurance.com. You can visit CarInsurance.com at http://www.carinsurance.com or contact them at 1-877-327-8728.

CarInsurance.com’s online insurance marketplace gives an opportunity to consumers and to insurance companies. We offer the ability to shop for car insurance online.

Consumers can receive quotes from many insurance companies, in some states you are able to purchase your insurance instantly, online. You don’t have to drive your car to buy car insurance. Buy online…anytime!

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And now that you’ve put the vet’s bill on your credit cards, you’ll be paying double-digit interest on that vet bill, possibly for a lifetime.

But… It didn’t have to be that way!

That’s because if you had purchased pet insurance beforehand, most of that $2,900 bill would be reimbursed by your pet insurance company and you would NOT have to go into long-term debt for it!

If you’ve never had to deal with the above scenario, you’re one of the lucky ones.

According to PetPlace.com, the total first-year costs of a dog can be as high as $1,825 - and yearly costs can be as much as $945.

A large chunk of your ordinary pet expenses are due to veterinary care: lab tests, physical exams, immunizations as well as internal and external parasite treatment and control.

Occasionally, however, a pet will fall victim to a more serious accident or suffer an unexpected illness that requires comprehensive medical care, or worse, surgery.

It is in these more-serious situations that a good pet insurance plan comes to your rescue…

You’re probably on this site, because you’ve been researching pet insurance.

I realize it can be a confusing topic to the average person!

A simple Internet search will generate many results - but most of them are from pet insurance companies that just want to sell you their product, no questions asked.

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Long term health care insurance policies come in different flavors. The basic idea behind all policies is to pay for any expenses you might incurr from an illness or accident that causes you to need care over the long term.

Simply, the policies will pay a daily rate, and weekly amount or a monthly benefit to cover your charges.

The policy may or may not pay for home care or assisted living. Each policy is a contract between you and the insurance company.

As an ex-agent and long term care insurance specialist I want to remind you that as the consumer it is up to you to make sure you understand these policies. It is critcal for you to read the fine print and make sure you understand your benefits.

In “Insiders Secrets to Long Term Care Insurance; the Ultimate Consumer Buying Guide” you’ll learn the hidden loopholes and terminology that can keep you from accessing your benefits. You’ll also know which companies to stay away from and how stable your premiums will be.

It is estimated that LTC insurance premiums have brought in $50 billion dollars. (See the article at Lawyers & Settlements.) This number will only continue to grow. With this much money on the line insurance companies have a vested interest in preserving their bottom line. Never forget that insurance companies are in business to make money. Now most of them will pay but they will only pay according to the contract

As much as I’d like to say that you never have to worry about an insurance company fulfilling their obligation to you I won’t. What I will say is that long term care insurance policies are complicated and filled with hidden language and terminology that can put you in peril. I really mean this: you must, I repeat must, read the policy outline or contract whenever you apply and are approved.

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Are you under the impression that Medicare pays long term care costs? A lot of retired people who think that are risking their income, lifestyle and financial security.

Medicare was never intended to pay for long term care costs and this is one reason long term health care insurance was invented. In fact, Medicare only gives you 100 days of skilled nursing benefits. After you use those 100 days up you have nothing. Zero, nada, zilch!

Flat out: Medicare will not pay your long term care cost.

Not now, not in the future, not ever. And remember, for Medicare to pay any portion of your long term care costs you must need skilled nursing. If you’ve had a stroke and don’t need stitches tended to or bandages changed then you might be considered “custodial” only.

If and when you do qualify for skilled nursing then you only have 20 days of fully paid Medicare coverage. Beginning on day 21 you have to pay the co-pay (unless you have supplemental insurance that covers those charges). The co-pay can change but has stayed right around $100 dollars with incremental increases since 2000. When you get to day 100 you’re on your own. With charges averaging $5,000-$7,000 a month this can add up in a hurry.

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Long term health care insurance becomes more expensive as you age. While the investment may be less when you are young many pre-retirees simply don’t feel the need to invest in another insurance policy. But remember, if you’ve been reading my articles this really should be called “retirement insurance“. The #1 reason couples get wiped out financially is health care costs!
Long-term care insurance premiums are based on your age and the condition of your health when you purchase a policy. Below is an example of premiums - but this is only an example. Many companies offer incentives, spousal discounts, health discounts etc. that are not taken into account in this example.

At best, these are averages and in all likelihood will not apply to your situation. Also, these include a 4-year benefit period at $150 a day. (As a side-note the average long term care need is right around 3 years - and usually less for men. This does not however account for Alzheimer’s or brain illness needs.) �

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Long term health care insurance should be thought of as retirement insurance. With seven out of ten couples having a long term care need during their marriage in no short order one of the spouses can find themselves bankrupt. Usually it’s the woman. In fact, one out of two women will have a long term care need in their lifetime.

A major consideration to make regarding long term care insurance is how much money you have at risk. Remember, this is your retirement and lifestyle we’re talking about. Also, who much would you personally have to pay for care should you (or your spouse ever need it). With care costs and nursing home costs at $70,000 as an average in 2008 it doesn’t take long to go through money.

If you have several million dollars earning interest then you may be comfortable self-insuring (i.e., paying the costs yourself). Then again, you may want to leave every penny to your heirs. Transferring the risk to an insurance company does two things for you. When you buy long term care insurance you insure your retirement savings against the enormously high cost of health care and you insure your retirement lifestyle.

The idea of long term care insurance is to insulate and protect your retirement savings, retirement lifestyle and provide inheritance to your children or family.

Some advisors say if you have a lot of money then why even buy long term care insurance just “self insure”. Self-insuring can work for some but for the many who fall into the $500,000 to $1.5 - $2 million self insuring could present even more risk.

Let’s take a real example. Let’s say you have 750,000 as your entire nest egg. That equates to a risk to liquidity ratio of 10 years. At the current 2008 costs of $70,000 a month for nursing home care given a long term care need - in 10 years your $750,000 would be lost to long term care costs. Actually that money could deplete even sooner if you’re married and paying both long term care costs and living expenses for yourself.

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