Category Archives: Insurance

7 Tips to Reduce Your Car Insurance Rate

Here are several ways to reduce car insurance rates.

Choose the ones that suit you, your car and your age and circumstances best.

  1. The car you drive affects your insurance rates. Choose wisely.

    Yes, we all want that super hot fast sports car. Buying and driving it, however, will make your car insurance rates higher than they need to be. Before you buy a car, it’s a good idea to collect all the details about insurance for that particular make and model. Include both the cost of mandatory (in most states) liability insurance rates, as well as optional, but sometimes financially smart, theft and comprehensive insurance.

    Your insurance rate depends upon the price and the repair cost of the car, should you have an accident. Insurance companies also offer theft insurance, which pays you the (wholesale) value of the car in case of theft. This can be a good idea, especially if you take out a loan to buy the car. In fact, the lender may require you to have this type of insurance. Some cars are more popular with thieves than others, so it’s worthwhile to check this out (theft rate) before you make your car purchase.

  2. Where you park your car overnight will also affect your rates. If you have access to a garage or other protected environment, you most likely will pay less than if not.
  3. The surest way to reduce your auto insurance payments is to ask for higher deductibles. The deductible is the amount of money you have to pay from your own pocket when a claim is made before your insurance company pays the rest. The higher the deductible, the lower the premium amount.
  4. If you have a good driving record – no tickets, no accidents, then you have an excellent chance for lower rates.
  5. You can have all your (and your family’s) insurance policies with the same insurance company to get more discounts. Group auto insurance is also an option for a reduction in your auto insurance premiums.
  6. Some online insurance policies offer a discount. So buying online insurance is a good way to save some money.
  7. Take a Driver’s Education course. Most insurance companies will offer a discount if you can show that you have successfully completed a Driver’s Education course.

These details may differ from one state to another and one insurance company to another. So you should collect 2 or 3 quotes from different insurance companies and choose the best one that suits you, your car and your financial condition.

How Much Car Insurance Do I Need

Insuring your vehicle is not just a legal necessity. It is also just plain good sense. Unfortunately, car insurance is fairly expensive and what a plan does and doesn’t cover isn’t always obvious to the untrained eye. Therefore, to ensure that you the best possible protection for your dollar, there are a few things you should keep in mind.

You do not want to pay for something that’s unnecessary, of course. But how do you determine how much car insurance you really need? Nearly all states require a certain minimum amount of coverage. State minimum coverage is the very least you can get away with while still being able to drive legally, and it is generally the least expensive package to purchase. Least expensive is not always the best idea, though. If something happens, you may find that you’re in a lot of hot water and your state minimum coverage just isn’t enough.

A state minimum plan generally covers personal injury if you should be in an accident, as well as medical costs for your passengers and the other motorists involved in the accident, repair fees, attorney fees, and sometimes even monetary compensation for pain and suffering. The limits on these are often too low to do you any good, though, unless you have a very small income and no assets to speak of. For example, if you find yourself in an accident where you are responsible for the damage done to the other motorist’s car, your minimum coverage might only extend to half the cost of a new car. In order to avoid paying thousands of dollars out of pocket, you should aim for at least $25,000 in property damages coverage.

You’ll also want coverage that will get you a new set of wheels in the event of an accident. How much you decide to get, however, depends on how much your car is worth. If the car is worth under $5000, the insurance payments are likely going to be too high to make it worth it for you. Even if you total that car completely, it’ll be less expensive to just replace it in comparison to the premiums, and if the accident was the other guy’s fault, his insurance is the insurance that’s going to get you taken care of.

All in all, how much car insurance you need depends on how much your car is worth and how much you can afford. Shop around to find the best coverage at the best price, and you’ll feel much safer being out there on the roads.