Sunday, November 22, 2009

Automobile Insurance -- Things That Will Help You Save Considerably


There are a good number of options open to anyone who plans to get low cost insurance. But at the same time, a number of methods folks adopt in order to reduce cost actually make them get less than sufficient coverage. However, in this article, I'll take you through several proven ways of paying less while you have sufficient coverage....

1. You are certainly paying too much if you have collision and comprehensive coverage for an old vehicle that's not a classic. The logic for this is that insurers base the reimbursement they make on what is called the Kelly Blue Book value of a car when you file claims. So even if you've paid your premiums diligently for several years but the Kelly Blue Book value says your car is worth nothing, you'll get nothing from the insurer and they'll be fully protected by the law.

Do the smart thing and leave out both from your car insurance policy. Doing this will cut down your costs and not put you at risk in any way.

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2. Does a child on your policy not drive the vehicle for a reasonable length of time? Then you can get a discount for this. If this this is the case with your child in college then do not forget to tell your agent about it. But bear in mind that some insurance companies don't offer this discount.

3. You might be able to bring down your rate if you re-evaluate your car insurance policy from time to time. The simple explanation for this is that things about us change frequently without us taking serious note of them. Have you though of dropping your just-wedded daughter from your auto insurance policy?

Does it occur to you that you might now be eligible for some discounts on account of several changes in your profile? You might also have "outgrown" the need for several coverage types.

Therefore, don't fail to go through your auto insurance policy from time to time. You'll be pleasantly surprised if you discover that you need to make adjustments or if you see changes that will bring about considerable savings.

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4. Electronic Funds Transfer (abbreviated as EFT) is a simple way to reduce your rate. This process authorizes your bank to credit your insurer with your payments automatically until you stipulate to the contrary. This eliminates administrative costs like those involved in sending payment notices. Your rate is therefore reduced to reflect the cheaper cost of providing insurance to you.

5. You'll save by being loyal to an insurer due to the long term discount and accident forgiveness which they give to long-standing policy holders. 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. Insurers offer these as incentives to keep you with them since it serves them better too.

But it will only be right for me to also point out that in spite of these incentives, you might actually gain more if you switch to another insurer.

Assuming your auto insurance rate is $2,500 and you are given a five percent discount when you maintain a policy with them for up to 5 years you will pay $2,500 - (5% of $2,500 or $125) = $2,375.

But also know that your rates may be raised to reflect the effect of inflation. But while you are at it, some other insurer could be ready to offer a rate of $2,000 or less at the moment. In such a case, it is of no value to stay put because you want to get a discount down the line when you can enjoy lower rates at the moment.

Furthermore, in most cases, most folks will easily pay a lot less than they are currentl on auto insurance if they do extensive shopping.. In order to know if you're not simply missing out better offers, obtain and compare auto insurance quotes from up to five insurance quotes sites..

6. Your might be paying a lot more than you should because of some really unnecessary add-ons like towing. Have you checked to see if your credit card doesn't already offer this as added value?

Overall, you're better off using a third party towing service than placing it on your auto insurance policy.

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7. Running a business through the internet is a lot cheaper than a brick and mortar approach. Compared to buying offline from a brick and mortar business, you'll save up to 15% if you buy your auto insurance policy online.

This makes it obvious that you'll save a lot more if you buy online.

But do ensure you do NOT present false information. Insurers are mandated by law to cancel any policy once they can prove that the policy holder gave false details.

Furthermore, verify from your state's department of insurance that they you're buying from a reputable company that's licensed to sell this policy.
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