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Category Archives: Auto Insurance

Find Car Insurance Rates

The factors that may affect your car insurance rates in the State of Texas include:

* Type of car you drive – Car insurance providers assume that someone who drives a sports car is more likely to speed than someone who drives an SUV, therefore placing him/her at a higher risk.

* The area where you live – Geography, population density, culture and other local factors have an impact on how likely you are to have an accident. Insurance providers attempt to take such factors into effect when calculating your auto insurance rate.

* Your claims history – Obviously the more accidents you have had, the more likely it is that auto insurance providers will consider you a risk, and consequently, you can expect higher rates.

* Your credit score – Making the assumption that a responsible person will be a responsible driver, the best car insurance rates are given to drivers with impeccable credit histories.

* Your age – Statistically speaking, mature drivers have fewer accidents and therefore can expect to be quoted low auto insurance rates.

* How you use your car – The more miles you drive each day, the higher your probability of accidents. How you use your car–for business, pleasure, or simply to get to work–will have an impact on whether you will be able to find a low car insurance rate.

Realize that there are three kinds of insurance companies in the State of Texas: preferred, standard, and nonstandard. Preferred companies offer the best car insurance rates, while standard companies are usually higher. If you encounter an insurance company that seems to target drivers with poor records or bad credit, it is probably a nonstandard company. In some cases you will find that an insurance company is a group of companies, which includes one or more provider in each class. They give the best car insurance rates to the least risky clients through their preferred companies, the higher rates to the more risky drivers through the standard or nonstandard providers.

Choosing A Car Insurance Plan

It can be tricky shopping around for the best car insurance because you will find you aren’t always comparing apples to apples. While one car insurance plan may offer you a lower premium, it may have a higher deductible or offer a lower payout when you file a claim.

Before you start shopping around, find out the laws in your state. If you are required to carry vehicle insurance, find out the details of the minimum coverage that is required. Next you need to decide on the deductible you are willing to pay. This is the amount you will be responsible for each time you file a claim before the insurance company will pay anything.

You will also have to decide if you want to get full coverage or liability insurance coverage. Most of the time you will need to have full coverage insurance if you have a loan out with the vehicle as collateral. With liability coverage only, your premium will be lower but you will only be covered if you are liable for the accident. Should the other party be at fault or your car gets vandalized your insurance plan won’t cover it.

If you already have insurance with a particular agency for your home, start by getting a quote from them. Most insurance companies will offer you a discount if you have more than one type of policy with them. They can even combine the payments together for one easy monthly payment.

Poor Credit And Auto Insurance

Regardless of how they’re derived, the scores are supposed to predict who is more likely to file a claim. The more likely you are to file a claim, the higher your insurance rates. Watching your Credit Score is fine advice if you have perfect or near perfect credit. Unfortunately, it does little to help the 1,112,000 Americans who filed for bankruptcy last year or the millions who have below average credit. For these people, trying to find affordable auto insurance can be a very real problem, with monthly insurance premiums equaling or surpassing monthly car payments. Even those who have excellent credit may still pay higher premiums just because they applied for a loan, a credit card, or obtained some other type of credit within the previous year of receiving their insurance policies. If all this sounds a little unfair to you, you’re not alone.

Twenty-two states have tried to enact legislation that would control the use of “Risk Scoring.” As expected, due to the strength of the insurance lobbyists, most of this legislation has either been dropped or watered down to the point it does little to protect the consumer. Three states California, Hawaii, and Massachusetts, -have stepped up to help all consumers, especially those with less than perfect credit by banning the use of credit scores and history in determining insurance policy acceptance and premiums. That’s great news for people who live in those states but, aside from moving, how are the rest of us able to save money on our auto insurance? Choose an insurance company that DOES NOT use “risk scores.” Nearly 10% of insurance companies don’t use this scoring policy. Their premiums are based upon your driving record, not credit score. These companies tend to be smaller, but what they lack in size they more than make up for with excellent customer service. Some cater to specific organizations or professions. Most have “A++” to “B+” financial ratings which means they will be there if and when you ever need them. As good as these companies sound, remember to keep one thing in mind: even though these companies don’t use Credit Scoring to determine premiums, it doesn’t mean you’ll automatically receive a lower premium. Chances are you will, especially if you have credit problems, but you still need to shop around and compare prices. Just make sure you’re comparing the same coverage from each insurer. The only down side to using these companies is finding them. They don’t advertise the fact they don’t use risk scoring so you may have to do some investigating on your own. You can start by contacting your state’s insurance department.

Lowering Car Insurance Rate

– Deductibles. Changing the deductibles on your insurance can have a drastic influence on your insurance rate. You should make your deductible for collision coverage as high as you feel comfortable with. By having it as high as $1000, can make a big difference on your insurance. On the other hand, you probably want a low deductible on comprehensive coverage, since you do not want to be stuck with a big bill if someone hits your car in a parking lot and runs off. Take the value of your car in consideration. If your car is worth less than say $3000, you can probably drop collision coverage completely and save enough money in a couple of years to replace your vehicle.

– Sports and four-wheel drive cars carry a significantly higher premium than other cars, especially if you are under 25 years old. Make sure you can afford the insurance before buying such a vehicle.

– An anti-theft device carries a lot of weight with insurance companies. If your car does not have one, it might be worthwhile to have one installed. You could have one installed for as little as $100.

– Avoid unnecessary and frivolous claims. It might sound like common sense, but a lot of people abuse their insurance with petty claims. Consider how much your deductible is and how much the repairs will cost. If may be worth your while to pay out of pocket, since many companies reward drivers for being claim free.

– Exaggerating the value of your car does not impress anybody and will cause a higher insurance rate. Only insure it for the amount you need for replacement and update this amount annually.

– If you can, pay your premiums annually instead of monthly or quarterly. Insurance companies often add a service, or interest fee if you choose to pay monthly.

– By doing your research and buying insurance online may save you time and money, because many companies will give discounts online. It is also easy to get comparative quotes.

Handle Your Car Insurance Claim

As a general rule, if there is unlawful action, such as a moving violation or illegal harm, the law enforcement will take care that each person who has taken part in the accident is looked after.

In order to make a petition against your insurance or the other driver’s policy, you must acquire all of the essential insurance policy details from the others involved. With this in hand, it’s time to call on your own car insurance company.

Petitions (claims) are everything that might be included in your insurance policy. If you sustain injuries, or there is damage to your car or to any property that was caused by your vehicle, you will have to to use your insurance company coverage to disburse money for the costs. This is called making a claim.

Once the insurance company completes its inquiry, if needed, they will cut you a check or get you take your automobile in to fix it. This will permit you to have your automobile mended, or to shell out cash to any other persons who might have been harmed by your blunder. For a good number of insurance companies, the course of action is very straight forward.

It is imperative, however, that when something occurs to you or to a different vehicle and its passengers, that you not disclose you were responsible for causing the accident. Just say that you do not discern what occurred, and allow the auto insurance companies to work it out. Should you disclose that you did something in the wrong, the insurance company may not pay your claim and you will be personally accountable for the costs.

Minefield of Car Insurance

When You Are Liable

How these low cost insurance policies work is, that they have low liability limits, some could be as low as $25,000, this could mean if you are involved in an accident and are liable then you could be responsible for paying for the other person, the hospital and medical expenses, loss of income and other damages. $25.000 doesn’t go far these days so the amount over and above you would be personally responsible for.

Always make sure you have enough cover with your car insurance policy. Read your policy carefully and when you are not understanding something or are not sure, get advice from someone who does know.

Choosing Your Insurance Agent or Insurance Sales Representatives.

Choosing an insurance agent has its advantages. Assessing your needs is part of what the insurance agent will do and will also look into your risk profile so they have a good understanding of your insurance requirements and your car insurance coverage.

Don’t get an insurance agent and an insurance sales representative confused. An insurance representative works for a particular insurance company, so they will be recommending that insurance company’s policies. Whereas an insurance agent works independently and will source out the best car insurance policy from all the insurance companies, the one that will best fit your needs.

There are a some things you will want to discuss with your insurance agent for your car insurance and these are:

  • What you feel about asset protection and insurance
  • What you expect if you need to make a claim
  • Your assets and your net worth

Your Car Needs Replacing After An Accident

This is an important area of car insurance. Many car insurance policies pay for total losses on the cash value of your car and not the replacement cost. Depending on the age of your car, you could be at a loss of quite some dollars, as you will have to come up with the difference if you wish to have the same car.

The age of your vehicle will determine the outcome of this clause in your car insurance policy. Many car insurance companies will cover full replacement if you car is bought brand new. They will do this for a specified time and then you should make sure you have a full understanding of what happens after that time. Often companies will do the full replacement for a year, there will also be special offers for special car promos.

If you see that teensy, weensy print at the bottom of an advert “Conditions Apply”, make sure you determine exactly what the ‘conditions’ are.

The insurance policies that pay, after total loss during the first twelve months, the total purchase price plus all costs, will each year after, lock in the car valuation as set by the industry’s standard ‘retail’ Blue Book.

Look After The Little things

You can find what is covered or not covered with your low-cost car insurance policy by reading the fine print. When you first sign your policy, these items may not seem so important. Many things with any insurance policy seem fine until you need to make a claim. This is where the so called savings will be eaten away. The savings of the low premiums you have been enjoying when you need to claim because of an accident, the costs start to come in.

If you are saving on your car insurance policy premiums, you may find you are required to use a certain repairer as nominated by your car insurance company, you will need to comply or pay for them yourself. Other policies may cost you more in premiums but could have a clause that enables you to have your own repairer without any penalty as far as the cost to you goes.

There is an area often overlooked with car insurance policies and that is your personal items that are in your car at the time of an accident. These items will also need to be replaced if your car is a total write-off.

How To Choose Your Car Insurance Coverage?

Take a look at the declaration page of your policy to find out your coverage. If you are unsure what it all means, then ask advice from an independent insurance agent, this is the one that doesn’t work for any car insurance company and will have your needs as his client, as the first priority.
It is the legal responsibility of the independent insurance agent to provide the proper coverage for their clients.

Advantages for Cheap Auto Insurance

It will really pay off if you go to an insurance agent for the best cheap auto insurance. They can negotiate on policy prices and they are able to give discounts you might not find anywhere else. When you are looking for cheap auto insurance, they can help you make decisions that will save you a lot of money. For instance, a change in your collision deductible can land you big savings on premiums for your auto insurance. Let’s say you currently have a $500 deductible. If you were to raise it to $1000, you could stand to save a lot of money on your auto insurance premiums.

You can sweeten the pot on auto insurance even more if you change your comprehensive deductible. If you have an older vehicle, you don’t necessarily need full coverage anymore. This happens frequently because you most likely paid for full coverage when the vehicle was brand new. As the car got older, you probably didn’t think to look for other cheap auto insurance and, consequently, you’ve been paying the same high rate for years. For example, a ten-year-old car could be worth as little as $1000. You’d hate to pay half of that (or more, in some cases) for full coverage!

If you should have an accident that totals your older vehicle, the cheap auto insurance company will only pay you the wholesale value of the car. This is why you want to insure yourself, the driver, very well, rather than the vehicle itself.

You can also save money with cheap auto insurance by combining coverage on your vehicles with other types of insurance, like homeowners’ or renters’ insurance. Also, if you are in a multi-car household, most auto insurance companies will give you a discount on the policies.

Another tip when it comes to auto insurance is to be sure you are getting the correct rate for your age. Your premiums tend to decrease once you pass your mid-twenties. Check with your insurance agent for any other age-related discounts. It’s also important to consider anti-lock brake systems, air bags and alarm systems for your cars. These all diminish your premiums.

Hopefully these useful tips have encouraged you to shop around for better cheap auto insurance. By contacting an insurance agent, you have the chance of lowering your premiums. Also, if you are willing to take the time to research the best deals, you can save even more money on your cheap auto insurance. Auto insurance doesn’t have to cost you a fortune. You just need to know where to look for deals and how to maximize your discounts. Go make a few calls or search the web for the best rates today.

Automobile Insurance

To protect your own interests, you need to do your own research and come up with your own plan. Then, take what the agent tells you and filter it through what you’ve already learned. This is definitely a situation where being informed can save you a lot of money.

Doing this kind of research is really easy today. Just get on the Internet, go on over to Google and start looking. There are thousands of insurance agents all over the country with websites. And each of them has filled their site with information designed to help you understand what insurance coverage is available and what all the industry terms mean.

The first auto insurance coverage you should look at is the liability coverage. In most states this also includes bodily injury. Almost all states have required minimums for this type of coverage. But are those minimums right for you? Only you can decide.

Choosing the minimum coverage will save you money up front in premiums, but what if there ever was an accident? Could you afford it? Once your coverage levels are maxed out, the insurance company stops paying and you’re responsible to take over the financial obligations. This means that if you or someone that you injure has ongoing medical issues, once your coverage limit has been reached, the insurance company will stop paying the bills. You’ll then be responsible. Are you in a financial situation where you can handle that? Even if you are, is that what you want to be spending your money on?

My advice is to get the prices from your agent on the different levels of liability coverage. Then see what fits into your budget. Usually the premium prices are not that much more each month for what can be a sizeable difference in coverage limits.

So you can see why you shouldn’t just go with the minimums because they’re cheaper. Get the numbers, do the research, get advice from your agent – then make your decision. Find the limit that makes you feel most comfortable.

And remember, if your situation in life changes, your insurance coverage should probably change too. These kinds of changes would be things like adding a new baby to the family, getting a new job with a longer commute, having a teenage driver in the house or sending an older child off to college. At the very least, you should review your new situation with your agent and get their opinion on changing your insurance coverage.

Save On Auto Insurance

Possibly the simplest things to do is just to have a look around. It is not that difficult to get a few quotes from a few insurance companies around in order to notice which one provides the best features for the dollar. These days with the wide spread of the Internet such task is made very easy and insurance quotes can be received in few minutes right on one’s own personal computer.

One of the things that might be overlooked by potential client is that insurance companies commonly reference the credit history in determining the cost of insurance premiums. Therefore, naturally, the better the credit score is the better for the insuring driver. Without getting into credit management it is worth mentioning that everyone in US and Canada is entitled to a free credit report by mail, once a year, from one of these agencies: Equifax, Experian and Trans Union.

How knowing the score can be to advantage? Well, each of the positive and negative remarks in the report have expiration date – therefore applying for insurance after a negative one expires can by itself lower the insurance premium. Otherwise, obviously, paying the bills on time is the main factor in keeping the score on the high side.

Basic credit report is all that is needed. Also there are some credit-reporting firms stating that their reports are free while in the meantime they charge ‘membership fees’ for it. So it pays to check the fine print in such cases.

And another thing to observe when shopping for insurance or particularly when buying a new car is that the insuring companies rate different models of vehicles in their own specific ways. For instance cars that have parts which are costly to replace will lean towards having higher insurance premiums. In like manner, autos that show in the stats to be stolen more often will also have their insurance costs going up compared to others.

Easy Routes to Cheaper Car Insurance

1) Shop around and buy online: Figures show that many people simply renew their current policies without shopping around. The internet makes it easy to compare prices from different insurers, so why not take advantage of this? Plus, you’ll usually get a discount of 10% or more just for buying your policy online.

2) Policy type: do you really need a comprehensive policy with all the extras? Going for a third party fire & theft policy can reduce your premiums hugely, and is definitely worth considering if your car isn’t an expensive model.

3) No claims discounts: Nearly all policies feature a discount that increases for every year you don’t make a claim. The higher the discount available, the more you could save. Also look at insurers offering a ‘no claims bonus for life’ feature, where your current discount level can be fixed forever, even if you have to make a claim somewhere down the line.

4) Excess: The excess on a policy is the amount of a claim you have to pay before the insurer pays the rest. Choosing to have a higher than standard excess level will usually mean lower premiums.

5) Security: Fitting your vehicle with an alarm, immobiliser, or other security devices can lead to premium reductions. Parking you car off-road, for example on a driveway or in a garage, will also mean a cheaper policy.