Car Insurance Buying Tips

Buy Your Home and Car Insurance From The Same Company

2005-07-14T23:11:00.000-07:00

Many car insurance sellers will give you a discount when you buy multiple categories of insurance from them. Plus you benefit because it allows you to make all your insurance purchases at one place.

If you cover multiple vehicles with their car insurance policy, that will entitle you to even more attractive rates.

But shop around! You just might get a better deal even if you go with different companies for each category, regardless of the multi-policy discount.

Beware Of Car Insurance Rip-Offs!

2005-07-12T18:51:00.000-07:00

You see an ad on TV or hear one on radio for cheap car insurance. You sign up. And then, a few weeks later, you're hit with a notice for dues caused by a "Rate Error in Computing Your Car Insurance" by the company!

It's a scam that happens far more often than you may think. Dealing with good quality car insurance firms avoids it altogether. Rely on rating agencies to locate a good car insurance company to do business with.

Many little companies go out of business. What good will a cheap policy do you in such a situation?!

Ask For 'Diminished Value' Car Insurance Compensation

2005-07-11T19:19:00.000-07:00

"Diminished Value" car insurance compensation is a little known secret. Car insurance companies may not talk about it, even deny it even exists. But if you're aware - and smart - you can collect!

If you're in a wreck, request "Diminished Value" compensation. It compensates you for the loss in market value your car sustains as a result of the accident. Even if you repair your car, the resale value drops following a crash. This feature of car insurance helps salvage, at least in part, some of the lost value.

Good Credit History Lowers Car Insurance Payments

2005-07-10T10:37:00.000-07:00

As part of their research into your car insurance application, companies will review your credit history. Some online car insurance companies let you self-report this.

Because of the higher risk involved when your ability to make payments is limited, companies will charge you more if your credit rating is poor. It is also a fact that more often, folks with bad credit make frequent claims, are late on payments and even have higher accident rates.

Establishing a solid credit history can cut your car insurance costs. Pay your bills on time, don't take more credit than you need and keep your credit balances as low as possible.

Limit Your Car Insurance Cover On Old Cars

2005-07-09T10:23:00.000-07:00

If your car insurance premium quote is more than 10% of the value of your car, consider dropping some elements. You can drop collision and/or comprehensive coverage on older vehicles.

And keep reviewing your car insurance coverage needs from time to time to make sure your insurance needs are still being met.

Reduce Your Car Insurance Cost By Paying Higher Deductibles

2005-07-08T09:56:00.000-07:00

Deductibles are what you pay out of pocket before your car insurance policy kicks in. If you're willing to pay a higher deductible, your car insurance costs will be less.

One thing you need to make sure, however, is whether you will have the required funds ready on hand to meet any payments if you have a claim.

Compare Car Insurance Costs - Even Before You Buy A Car!

2005-07-07T09:51:00.000-07:00

It is wise to check car insurance costs before selecting your car. The premium you will pay for your car - new or used - will depend upon the sticker price, expected repair costs, safety record and likelihood of theft or damage.

The more safety measures and anti-theft features your car has, the bigger discounts car insurance sellers will offer you.

Shop Around And Compare Before Buying Car Insurance

2005-07-06T19:25:00.000-07:00

Car insurance prices vary widely. Get at least 3 price quotes. Call companies or check out their websites or ask your state insurance department for help.

It is critical to determine if the insurance company you pick is itself financially stable. Verify this with rating companies like A.M.Best and Standard & Poor's, or check in consumer publications.

Don't look at price alone. Other things like customer satisfaction can be more important - ask friends and relatives about their experience. Pick an agent or company representative that takes the time to answer your questions.

Then compare quotes and features before you select a car insurance company.

Get Your Driving Record Copy Before You Buy Car Insurance

2005-07-05T10:03:00.000-07:00

Errors in your driving report can cost you higher car insurance payments. Paid up traffic tickets and attending driving school need to be credited on your driving record. An omission could become expensive - fast!

Like all records, there is an error rate in driving records maintained by the state. Don't let such mistakes affect you when you buy car insurance.

If you go to driving school or pay fines, keep the receipt in your wallet for 3 years or until you renew your license! Just like your credit history, your driving record can impact how expensive your car insurance becomes.

Understand How Your Car Insurance Quote Is Determined

2005-07-04T09:28:00.000-07:00

Many things impact your car insurance quote.

Age - Young drivers pay more for car insurance

Gender - Female drivers are often asked to pay higher car insurance premiums

Marital Status - Married drivers have lower car insurance claims - and pay less

Driving Record - Fewer tickets, auto accidents and safer driving records translate into lower costs

Prior Claims - Fewer car insurance claims in the past will reduce your premium

Personal Credit - Drivers with better credit history receive lower quotes

Distance Traveled - Lower usage of your car will bring down your car insurance cost

Vehicle - Flashy, expensive luxury cars carry higher insurance payments to cover

Territory - Urban drivers will pay higher car insurance costs, all other things being equal