Auto Insurance
We all need it. We all have it. We all hate paying for it.Here at CheapAutosInsurance.com, we are devoted to helping you find the lowest price insurance that will meet your needs, and we offer information from hundreds of insurance companies to help you do just that, but sometimes it helps to be pro-active, so let's look at some different ways you can turn any insurance into a cheap auto insurance policy.
We all need it. We all have it. We all hate paying for it.Here at CheapAutosInsurance.com, we are devoted to helping you find the lowest price insurance that will meet your needs, and we offer information from hundreds of insurance companies to help you do just that, but sometimes it helps to be pro-active, so let's look at some different ways you can turn any insurance into a cheap auto insurance policy.
Anti-Theft Devices:While most new cars come with some sort of theft protection, not all do. If you're buying a new car, be certain to add LoJack, an alarm, or an engine immobilizer to your security package. If your existing car does not have an anti-theft device, tracking systems, alarms, and "kill switches" for the engine can all be added after-market, often for less than a hundred dollars.
Annual Policies:While the term for most auto insurance is six months, you may be able to get a year-long policy. The longer commitment term nets you a smaller payment over all.
Join the Group:You may be eligible for a group discount if you work for a major corporation, or belong to a trade union. While group discounts may not be large, they are generally applied in tandem with other discounts, for a bigger benefit to you.
Say Yes to EFT:Electronic Funds Transfer isn't just a fast and secure way to get your check to the insurance company on time, it can save you money. Many insurance companies waive processing fees for customers who pay electronically, especially if they put their monthly installments on an automatic payment plan. While you're at it, see if your insurance company can email your statements instead of mailing them. Not only will you reduce the amount of paper floating around the world, but it could save you up to $5 a month. The digital age is good for you and the environment.
Mileage Matters:If you don't do a lot of driving - only from home to work and maybe to the grocery store and back - keep a close eye on your annual mileage. Most insurance companies give a discount for low-mileage vehicles, so if you can keep your mileage under abut 14,000 miles per year you can keep a bit more cash in your pocket.
With Two It's Better:Just as having your auto and home policies with one company can save you money, so, too, can having both your cars on the same policy. The multiple auto discount is a fairly standard offering, industry-wide. For that matter, if you don't have a life insurance policy, consider getting one from the same company who holds your auto and home insurance - again, multiple policies equals multiple savings.
As you can see, getting cheap auto insurance doesn't mean settling for less coverage or going with a substandard insurance company. It simply means being smart about the way you choose your insurance. One final tip for getting as low a premium as possible: comparison shop.
CheapAutosInsurance.com can help you find rate quotes from several companies so that you can compare their pricing, policies, and premiums before you commit to anything, and that comparison may be a crucial step for you.
Annual Policies:While the term for most auto insurance is six months, you may be able to get a year-long policy. The longer commitment term nets you a smaller payment over all.
Join the Group:You may be eligible for a group discount if you work for a major corporation, or belong to a trade union. While group discounts may not be large, they are generally applied in tandem with other discounts, for a bigger benefit to you.
Say Yes to EFT:Electronic Funds Transfer isn't just a fast and secure way to get your check to the insurance company on time, it can save you money. Many insurance companies waive processing fees for customers who pay electronically, especially if they put their monthly installments on an automatic payment plan. While you're at it, see if your insurance company can email your statements instead of mailing them. Not only will you reduce the amount of paper floating around the world, but it could save you up to $5 a month. The digital age is good for you and the environment.
Mileage Matters:If you don't do a lot of driving - only from home to work and maybe to the grocery store and back - keep a close eye on your annual mileage. Most insurance companies give a discount for low-mileage vehicles, so if you can keep your mileage under abut 14,000 miles per year you can keep a bit more cash in your pocket.
With Two It's Better:Just as having your auto and home policies with one company can save you money, so, too, can having both your cars on the same policy. The multiple auto discount is a fairly standard offering, industry-wide. For that matter, if you don't have a life insurance policy, consider getting one from the same company who holds your auto and home insurance - again, multiple policies equals multiple savings.
As you can see, getting cheap auto insurance doesn't mean settling for less coverage or going with a substandard insurance company. It simply means being smart about the way you choose your insurance. One final tip for getting as low a premium as possible: comparison shop.
CheapAutosInsurance.com can help you find rate quotes from several companies so that you can compare their pricing, policies, and premiums before you commit to anything, and that comparison may be a crucial step for you.
Gap Insurance
you own a house, a car, a musical instrument, or anything else of significant value, chances are you've heard the word depreciation. It refers to the gradual reduction in value of items, once they've been used. Houses depreciate slowly. Well-made musical instruments actually appreciate in value (that is, their value increases), and as we all know, a car's value depreciates the second you drive it off the lot. Most of the time, this is a non issue, but if your car is financed or leased, and something dire happens to it early in your term, or in the first two years of ownership, this depreciation can cause issues with your insurance.
Let me illustrate: You leased a car three months ago, based on a value of $27,250. You begin making payments at about $500 a month, but then one night there's a huge storm, and a light pole is ripped from the ground and lands on your car, destroying it beyond reasonable repair. As soon as the power comes back on, you phone your insurance company, and they begin the numbers dance, finally determining that your barely-used three-month-old car has already lost twenty percent of its value, and they'll give you $21,800 for it. That's great, except that your finance company says, "Wait a minute. You still owe a balance on your lease, and, in fact, with taxes and fees and whatnot, you owe $29,500." That's a difference of $7,700, and it is precisely why you need gap insurance.
Let me illustrate: You leased a car three months ago, based on a value of $27,250. You begin making payments at about $500 a month, but then one night there's a huge storm, and a light pole is ripped from the ground and lands on your car, destroying it beyond reasonable repair. As soon as the power comes back on, you phone your insurance company, and they begin the numbers dance, finally determining that your barely-used three-month-old car has already lost twenty percent of its value, and they'll give you $21,800 for it. That's great, except that your finance company says, "Wait a minute. You still owe a balance on your lease, and, in fact, with taxes and fees and whatnot, you owe $29,500." That's a difference of $7,700, and it is precisely why you need gap insurance.
Three Main Elements
There are a number of individual factors that determine how much you pay in insurance premiums, but they can all be classified into one of the three main elements that form the policy, and therefore the rate: overall coverage, the size of the deductible, and miscellaneous.
Coverage is more than just how much liability insurance you need, but also has to do with the kind of car being insured, how many drivers require insuring and whether or not car is paid for, leased, or financed by a loan. Financing (lease or loan) is a major factor in determining coverage, because your lender or leasing agent will likely require full coverage, whereas with a paid-for car, sometimes collision coverage is enough. (Don't forget that you may also have to purchase gap insurance if you have a leased car.) As well, if you own a house, or a business that isn't incorporated, you should generally boost your coverage to protect those assets in the event of an accident-related law suit.
The deductible is the part of any claim that you must pay out of pocket, just like the co-payment in health insurance. Generally, your deductible will be between $500 and $1,000, but a higher deductible will reduce your monthly premiums (payments), while a lower one will increase them.
Miscellaneous factors are basically everything else that can influence your insurance rate, like various credits and deductions, but also include things like your credit rating, driving record, age, gender, and marital status. Single men under twenty-five are still the most expensive people to insure, as a rule, because they are statistically most likely to engage in reckless driving. Mature drivers (age 55 and over) can sometimes qualify for age-related discounts, however, and people with poor credit are likely to pay higher rates, while those who have been involved in accidents that resulted in fatalities may find themselves ineligible for standard insurance, and have to turn to insurance pools.Factors that can lower your premiums include loyalty to a single company, having your home and auto insurance with the same company, or taking defensive driving classes. Some insurance companies even give discounts to people in certain professions, like teachers and engineers, so even after you get a quote that you're willing to accept, it's a good idea to call the company and ask about these options.
Comparison Shopping
With a better understanding of what goes into auto insurance quotes, comparison shopping should be much simpler. If you like the first quote you get, good for you! If you'd prefer to compare several remember to look at the following items for an honest comparison:
Amount of coverage - what is covered (collision, liability, being hit by an uninsured motorist?), and what is the dollar amount of the coverage.
Total premium - what is the total that you are expect to pay? Also, what's the payment schedule? Some companies require six months at a time, while others allow monthly payments.
Coverage period - when exactly does the coverage begin and end? If you're transferring from another company, you'll want to know when to cancel the old policy.
Total deductible - how much will you be expected to pay out of pocket if you file a claim?
Now that you know what to look for in an auto insurance quote, you know that getting a great rate is easy. Keeping a great rate, however, is up to you, and the best way to do that is to keep your driving record clean.
Coverage is more than just how much liability insurance you need, but also has to do with the kind of car being insured, how many drivers require insuring and whether or not car is paid for, leased, or financed by a loan. Financing (lease or loan) is a major factor in determining coverage, because your lender or leasing agent will likely require full coverage, whereas with a paid-for car, sometimes collision coverage is enough. (Don't forget that you may also have to purchase gap insurance if you have a leased car.) As well, if you own a house, or a business that isn't incorporated, you should generally boost your coverage to protect those assets in the event of an accident-related law suit.
The deductible is the part of any claim that you must pay out of pocket, just like the co-payment in health insurance. Generally, your deductible will be between $500 and $1,000, but a higher deductible will reduce your monthly premiums (payments), while a lower one will increase them.
Miscellaneous factors are basically everything else that can influence your insurance rate, like various credits and deductions, but also include things like your credit rating, driving record, age, gender, and marital status. Single men under twenty-five are still the most expensive people to insure, as a rule, because they are statistically most likely to engage in reckless driving. Mature drivers (age 55 and over) can sometimes qualify for age-related discounts, however, and people with poor credit are likely to pay higher rates, while those who have been involved in accidents that resulted in fatalities may find themselves ineligible for standard insurance, and have to turn to insurance pools.Factors that can lower your premiums include loyalty to a single company, having your home and auto insurance with the same company, or taking defensive driving classes. Some insurance companies even give discounts to people in certain professions, like teachers and engineers, so even after you get a quote that you're willing to accept, it's a good idea to call the company and ask about these options.
Comparison Shopping
With a better understanding of what goes into auto insurance quotes, comparison shopping should be much simpler. If you like the first quote you get, good for you! If you'd prefer to compare several remember to look at the following items for an honest comparison:
Amount of coverage - what is covered (collision, liability, being hit by an uninsured motorist?), and what is the dollar amount of the coverage.
Total premium - what is the total that you are expect to pay? Also, what's the payment schedule? Some companies require six months at a time, while others allow monthly payments.
Coverage period - when exactly does the coverage begin and end? If you're transferring from another company, you'll want to know when to cancel the old policy.
Total deductible - how much will you be expected to pay out of pocket if you file a claim?
Now that you know what to look for in an auto insurance quote, you know that getting a great rate is easy. Keeping a great rate, however, is up to you, and the best way to do that is to keep your driving record clean.