Archive for the ‘Car Insurance’ Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Infographic] Car Insurance Rates and Average Price of Car Insurance

Though car insurance is often thought of as a hassle, it is important for yourself and others to have decent coverage – but that doesn’t mean the most expensive insurance is necessarily the best. Anyone can lower their car insurance rates by being aware of these ten money-saving tips.

1.Raise Your Credit Score

For new customers, most insurance companies these days are using a credit-based system to decide how much you pay each month. Thus, those with higher credit scores tend to make smaller payments less frequently. In fact, keeping your credit score in shape could save you hundreds of dollars every year.

If your credit score has improved recently on a consistent basis, bring it to your insurance agent’s attention and be rewarded for your responsible budgeting.

2. Shop Around

Most people get a second opinion when it comes to medical issues, so why not get a second, or third quote when shopping around for car insurance? Rates and premiums vary from company to company, so be sure to explore all the options before pulling the trigger.

3. Reap the Rewards for Good Driving Habits

Low mileage, going the speed limit and avoiding accidents can all be lucrative when it comes to your auto insurance premiums. Some companies even reward drivers after installing cameras in their vehicles to track and record driving habits.

4. Find Out Your Car’s Value and Assess Its Coverage

Knowing your vehicle’s actual cash value (ACV) is a key tool when determining when to drop or adjust its coverage. Experts at your local Performance Auto Group dealership can help decipher your vehicles worth, and other online resources for ACV estimates are Kelley Blue Book and Black Book.  Most experts say that if your car is not worth more than 1o times your deductible, it might be time to remove collision and/or comprehensive coverage.

5. Obtain Multiple Policies  Through the Same Insurance Provider

Some insurers offer a “multi-policy” discount, so if you are looking to insure two cars, or a home and a car, this might be something worth checking out! As mentioned, rates still vary from company to company, so be sure to shop around and see what other rates are out there!

6. Select a Higher Deductible

Selecting a higher deductible means that you would have to pay more before the insurance policy swoops in to provide coverage. That said, if you choose a higher deductible, your cost per month can be substantially lower. Selecting a higher deductible can save you anywhere from 15 to 40 percent on your premium payment. Warning: Before choosing an option like this, be certain you will have enough money to cover yourself if a claim does arise.

7. Good Student and Senior Discounts

If you have a hardworking teen student who falls in the top 20 percent of his or her class, they are most likely eligible for a discount. While requirements may vary from insurer to insurer, this guideline usually applies for most.  Furthermore, in some states those under the age of 25 who are in college and fall under similar grade requirements are usually eligible for discounts as well.

Also, most auto insurance agencies offer 5-10 percent discounts for drivers entering their fifties. Be sure to check with your insurance provider to see if you qualify!

8. Keep an Eye Out for Unnecessary Coverage

Though this problem can be prevented by carefully reading the fine print, many people are paying for coverage on services they don’t necessarily need. Towing and rental car coverage are two types that aren’t needed by most drivers. Furthermore, some personal injury protection (PIP) includes coverage for people who often have other passengers in the vehicle. If this doesn’t apply to you, consider dropping it!

9. Find Out if You’re Eligible for Group Coverage

It’s worthwhile to investigate your employer’s policy on auto insurance. Generally, insurance companies offer discounted rates for people belonging to an organization, administration, club or corporation. Who knew that being a part of a team could save you money?

10. Nix Monthly Bill Pay

Most insurers offer a discount (usually 10 percent or more) if you pay your premium up front and all at once as opposed to paying monthly.  This is due to processing fees that can be tacked onto monthly installments. Though 10 or 12 dollars might not seem like much of a difference each month, those extra bills can add up to nearly $150 by the end of the year!

It’s smart to check in on your auto insurance policy a couple times per year, especially if you move states, change jobs or start a family. The bottom line is that every driver should be aware of their coverage, what they need and don’t need and don’t settle for the first option. If all these suggestions are followed, you might find that you’re paying for affordable coverage that is just right for you!

For more information on how to evaluate car insurance companies see the National Associations of Insurance Commissioners website at http://www.naic.org/.