Saving money on auto insurance, a few things to think about before purchasing insurance.
Auto and truck insurance is expensive, but required by law. Insurance companies are known for taking advantage of people when it comes to this requirement. The problem is if you’re caught without insurance, no matter what perception or views on insurance companies you may have, in most states the fines and punishment are harsh.
The fact is obtaining reasonable rates for your insurance coverage is time consuming, but worth the time, especially if an untimely, and often life changing, auto accident takes place. Here are some suggestions; a few common sense approaches’s to acquire insurance.
Discounts on insurance rates
Discounts are available from several sources and checking the Internet, or believe it or not, actually reading some of your junk-mail, you may find a discount or two.
For example, veterans receive discounts from several insurance companies, to include discounts for being a member in the USAA insure “veterans only” with low rates.
Organizations such as AAA give as much as 15% to 20% off the actual price of insurance on your car or truck. Others, to include professional organizations, due to their quantity of membership, can receive 15% up to 25% discount on insurance rates.
Also, here is where checking your junk mail comes in handy. Discount packages arrive in the mail all of the time, which contains sometimes 20 or 30 coupons, to include insurance company discounts on their rates. As well, the competition is rigid and receiving insurance quote invitations from Independent Insurance companies are also likely.
Combining your home insurance with your auto or truck insurance, or a multi-car insurance plan most often provides you a reasonable discount. This is an extremely competitive field, where insurance companies giving bargains plus being open for negotiation is readily available. Alternatives to your premium plans always exist.
Independent insurance companies are better to obtain a reasonable quote from, and to negotiate a discount as well. Their fees and rates are more flexible when compared to the larger insurance companies. If you have a moderate to excellent driving record, then be patient and do not settle for a questionable rate. There are too many insurance companies out there that can offer good rates.
Paying your insurance in one yearly amount offers quite a discount, or rather, eliminates fees. This can create a good platform to start your negotiation, as it costs less for them to process, which includes the time involved. Make sure you cover all your bases, so to speak, and ask all of the “what if” questions.
Adjust your insurance coverage
There are minimum requirements for vehicle insurance, which most often is liability coverage. These minimums are meant to provide a safe-net for others on the road with you, and if you harm or destroy their property or vehicle, it will be replaced or repaired. If your vehicle is not worth much, a second truck for example used to hall things to the dump, obtaining liability insurance-only just makes sense.
It’s also possible to have a higher deduction with less coverage, and pay less for the insurance on a monthly or yearly basis. There’s no formula for this situation, just a common sense approach toward what you can afford for the deduction, that is, if you get into an accident and repairs or replacement to your vehicle is needed. Raising your deductible can decrease your insurance rate by 40%.
Type of vehicle purchased
The best way to actually find out about a car or truck, and what it would cost to insure, is simply ask your agent before the purchase. For example, some cars are receptive to being stolen, which increase your insurance rates; whereas, other cars are not so receptive to theft, but repair costs are extremely high.
As well, you can peruse the Insurance Institute for Highway Safety to find out about different cars and trucks, their safety standards and their insurance data.
Keeping your driving record as clean as possible is helpful, as it keeps your insurance rates low. Also, things like shopping for a new agent at least 90 days before your insurance cancels. Believe it or not potential agents and insurance companies look upon this situation as responsible conduct.
Before you move on to another insurance agency speak with your current agent. The fact is you can receive a discount because you have been with them for an extended period of time. If your agent says nothing or denies they have a discount for this situation, then it’s time to move on anyway. The best thing to do is simply ask for the discount, and use the fact you’re looking for another agency as a negotiating tool.
Keep in mind that it’s the fees that are different from one insurance company to the next, so always search for the lowest premiums. If you read the insurance information you will see that most often it is the same coverage, just different premiums after the fees are figured into the equation, whether shown to you or not. During these times of high fuel prices it’s a matter of good business. Looking for every break you can get from your insurance agent is just common sense and simply a respectable thing to do.