Pages

Subscribe:

Ads 468x60px

Tuesday, October 25, 2011

20 Best Tips for an Affordable Auto Insurance Policy


A policy is called affordable when its premiums are low and it’s easy for you to pay.  So o have an affordable auto insurance policy there are two ways. First is that you lower the cost of your policy. Second is that get a new auto insurance policy, which offer lower premiums.  Here I will talk about the both ways and also will tell you some tips that how you can take to lower your auto insurance.

Here are the tips:

1 – Make it sure that your policy is accurate


The first and foremost thing is that you make sure that your current policy accurately reflects your situation. It means that your policy must be having all your vehicle information, such as age and make. Another important thing which you will have to see is that your yearly estimated mileage is properly stated. But if you commute very short then make sure that your policy reflects that for that vehicle.

2 – Must Know about State Minimums


Every state in United States is having minimum set of auto insurance liability coverage requirements. You can find these at your state’s insurance commissioners website. The minimums are described about the bodily injury liability limits and property damage liability insurance. Be sure that you know the minimums, which you must have to maintain.

3 – Be Well Informed About Financing Requirements


The financing companies are having additional requirements of their own for you to maintain in insurance coverage. By that your deductible will be affected, so be sure you know your required limit before you raise your deductible.

4 – Raise Your Deductible


If you raise your deductible then remember you will be responsible for that amount if you get into an accident and it’s your fault. If you had already set up a nice emergency fund, you’ve already self-insured to a degree. That’s why raising your deductible is not a bad idea and as I know raising your deductible has the biggest impact on your auto insurance rates.

5 – Consider Dropping Specific Coverage Items


Every insurance policy is having different levels of coverage. Some are necessary, some are recommended, and some just aren’t needed for your situation. I won’t talk about all coverage types here, but will discuss main three and when you could consider lowering the coverage.

  • Liability:  This type of coverage pays to others, such as for personal injury, medical expenses, lost wages and property damage. The damage you do to their vehicle or property is paid through this. As it’s mentioned above most of states are having minimums, liability is one from that. This is baseline of insurance coverage. If you are having a nice car and only few assets to protect then you probably will get 100/300/100 level coverage. There is no way to economize in this area.
  • Collision: This type of coverage pays for the damage to your car. If your car is worth of only a couple thousand then its best to drop this coverage, since you’ll only need a couple thousand to replace it.
  • Comprehensive: This type of coverage is for any other type of damage to your vehicle, but anything other than an accident. For example, your vehicle is stolen or it’s damaged in a flood. Same like collision type considers here also that how much is your car worth.

After meeting your requirements, take plenty of liability insurance and about collision and comprehensive factor in the value of your vehicle.

6 – Drop Extras


There are many extras in insurance policies which you really don’t need. For example emergency road side assistance is extra, which I think is not really needed to pay for it on my policy. So discuss with your insurance agent and know about what extras you are paying for. Then evaluate which one’s you want to drop.

7 – Consider Every Discount You Can


Easiest way for this is to call your insurance company or agent and ask them for a list of all their discounts. After that write them all down and the insurance company will systematically work through the list to ensure you’re getting the full discount.

8 – If You Are Married Then Combine Policies


This really can save a lot of money to newly married couples. Just call the insurance company and tell them to combine your policies.

9 – Pay Insurance Premium in Full


If you start saving now and pay your auto insurance premium in full next time, it will save your extra fee which you have to pay from month to month installments.

10 – Online Insurance Quotes Website Insurance.com


Insurance.com is very helpful website. It allows you to run one check and get back several auto insurance quotes. Like this it becomes easy for you to see who is offering the best deal.

11 – Get Direct Quotes


You can get direct quotes from Allstate, Hartford, GEICO, etc. its best to go straight to the source with out any middle person.

12 – Multi-Policy Discount


When you go for a new policy then check with your home insurer to see if they have a discount for multi-policies. There is a possibility to save money by bundling insurance policies.

13 – You Can Have Advantage of Multi-Car Discounts


It’s best to go with same insurer which your spouse has before going for new policy.  There are big savings for keeping all cars under your roof within one policy.

14 – Group or Organization Discounts


Being employee in an organization or as a member of trade organization, you may be eligible for a discount.

15 – One Car is best


There is no need for an extra car if one from you works from home. Going with one car is just best for you. Because this will save you on payment, maintenance, and insurance could be in hundreds also.

16 – Consider Lowering Your Commute


By lowering your commute your auto loan insurance policy will get lower also. So try to work near your home or work most of time in home. You can also take alternative transportation to work also.

17 – Move to a Different City of State


This can help you for saving on your auto insurance policy.  Different cities or states are having different requirements and also very different premiums.

18 – FICO Score


Improve your FICO score because your FICO score determines that how safe driver you are. A better FICO score also lower your insurance premiums.

19 – Get a Different Car


Consider driving a different vehicle, the one which is less likely to be stolen.

20 – Strategy & Planning


Your strategy and planning counts a lot with that you can save a lot on your car insurance premiums. A best strategy you can make after a search. So do make your search to make a strategy which work for you on long run.

1 comments:

Andrea said...

I am so excited to know all these 20 tips. I can't express my feelings and is thankful to you from the core of my heart for sharing all these great points.
liability insurance companies

Post a Comment