Paying your premium once a year will get you lower rates than opting for monthly payments. True, monthly payments might be stressless but it is also less affordable.
If you do transactions with banks you'll agree with me that each check you process is considered transaction which attracts a certain charge. In a year, your monthly checks would be processed differently because they are all separate transactions. This implies that you'll pay transaction fees twelve times..
There are also administrative costs to your insurer that result just from taking monthly payments. For instantce, it costs insurers millions of dollars annually to send out payment notices..
These costs plus a profit margin for this feature is added to your rates making it more than the same profile that pays yearly every year.
Insurers give give customers who have remained loyal a long term discount and accident forgiveness. Most insurers will give you a discount of about 5% if you stay with them for up to five years (some will give you once you stay for up to three.
Most insurers will also not raise the rates of a long standing policy holder if they make only just one claim. It makes sense for the insurer as it is cheaper to give discounts to existing policy holders than to acquire new ones.
However, what you may save by switching to another insurer might far outweigh all the incentives you'll get depending on what your rates are and how much another insurer is ready to offer.
"Pimping your ride" does NOT help if you want lower rates. If you want to impress your friends with those extra special features like bigger types than the manufacturer's specification, then be prepared to pay a lot more. So if you're really serious about keeping your rate down, leave your car the way it was manufactured.
Young drivers are statistically very bad risks. More so, the younger an under-25 driver, the more they'd have to pay. That is why teenagers pay a lot more than 22-year olds.
This means that you'll help keep your rates down if you do NOT have a teen driver on your policy. It will have an adverse effect on your rate. Your teen driver should have his/her own policy. This will be made possible if you sign an exclusion form.
Let your teen bear the responsibility of paying for their auto insurance. An addition argument in favor of this is that your teen will be more willing to take measures to reduce what he or she pays. Your teen will also be safer as the steps that will bring down his/her rates will make her a more responsible behind wheels.
Add-ons like towing raise your premium without giving you as much value as using a towing service. By the way, your credit card might already offer this as a benefit so check.
Overall, you're better off using a third pary towing service than placing it on your auto insurance policy.
And...
You can save more by visiting not less than 5 quotes sites. That way, you will increase your chances of getting the lowest quotes possible since five sites will present up to 25 quotes altogether.
If you do transactions with banks you'll agree with me that each check you process is considered transaction which attracts a certain charge. In a year, your monthly checks would be processed differently because they are all separate transactions. This implies that you'll pay transaction fees twelve times..
There are also administrative costs to your insurer that result just from taking monthly payments. For instantce, it costs insurers millions of dollars annually to send out payment notices..
These costs plus a profit margin for this feature is added to your rates making it more than the same profile that pays yearly every year.
Insurers give give customers who have remained loyal a long term discount and accident forgiveness. Most insurers will give you a discount of about 5% if you stay with them for up to five years (some will give you once you stay for up to three.
Most insurers will also not raise the rates of a long standing policy holder if they make only just one claim. It makes sense for the insurer as it is cheaper to give discounts to existing policy holders than to acquire new ones.
However, what you may save by switching to another insurer might far outweigh all the incentives you'll get depending on what your rates are and how much another insurer is ready to offer.
"Pimping your ride" does NOT help if you want lower rates. If you want to impress your friends with those extra special features like bigger types than the manufacturer's specification, then be prepared to pay a lot more. So if you're really serious about keeping your rate down, leave your car the way it was manufactured.
Young drivers are statistically very bad risks. More so, the younger an under-25 driver, the more they'd have to pay. That is why teenagers pay a lot more than 22-year olds.
This means that you'll help keep your rates down if you do NOT have a teen driver on your policy. It will have an adverse effect on your rate. Your teen driver should have his/her own policy. This will be made possible if you sign an exclusion form.
Let your teen bear the responsibility of paying for their auto insurance. An addition argument in favor of this is that your teen will be more willing to take measures to reduce what he or she pays. Your teen will also be safer as the steps that will bring down his/her rates will make her a more responsible behind wheels.
Add-ons like towing raise your premium without giving you as much value as using a towing service. By the way, your credit card might already offer this as a benefit so check.
Overall, you're better off using a third pary towing service than placing it on your auto insurance policy.
And...
You can save more by visiting not less than 5 quotes sites. That way, you will increase your chances of getting the lowest quotes possible since five sites will present up to 25 quotes altogether.
About the Author:
Learn more at Safe Auto Insurance and Cheap California Auto Insurance. Chimezirim Odimba writes on financial matters.
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