This, for many is a big secret: The difference in car insurance premiums among insurance companies (for similar packages or policies) can be more than $1000. So unless you did due diligence, you are likely paying a lot more than you should. You certainly could do one or two things with an extra $1000. For most of us, a tenth of that will be highly appreciated. Let me show you how you can get savings on your car insurance...
How do insurance companies determine your premium? They do so by determining your risk level. So, how do they determine your risk level? They do so by your score against several factors (I guess that's why you have to fill out a form). However, like most things, there is no general consensus among insurance companies on the relative weight of each factor against the other. This is what you'll have to take advantage of to make huge savings in your car insurance...
Let's use these factors to make things clearer: Age group and marital status. If you are an under-25, you are considered the highest risk age group. However, if you are married, you are considered the lowest risk group as far as marital status is concerned. However, if you are married and under-25, different insurance companies will score you differently depending on which factor they think is a stronger indicator of your risk level. If an insurance company decides to take marital status as a heavier factor of the two, you'll pay less because you are married.
So you can see that although all insurance companies use the same factors to determine your premiums, your quotes will differ considerably based on which factors they consider as the strongest risk factors and those they consider the lowest risk factors.
Another factor that counts heavily is an insurance companies unique selling proposition. That is what they stand for and who they are focused on servicing. This will determine their biases and to a large extent, what premiums they will charge a certain group of persons. So it does help to find a company that is positioned to favor a group you belong to.
Just as an aside...
A number of folks can actually get so caught up in making savings that they forget what insurance is about in the first place: Providing cover. Don't be caught in that trap. You can make savings without becoming uncovered or "undercovered."
On a parting note...
With the internet, you don't have to go through the Yellow Pages to find the name of insurance agents and then start calling them. All you need to do is click to sites that give you quotes from leading insurance companies in your country.
The additional peck is that online car insurance quotes are usually less than those you'll get from agents. The reason for this is the subject of another article. However, just take advantage of it.
And, never satisfied to leave a good thing alone (I like making them even better), I have researched the best car insurance quotes sites for you. So, I have made it really difficult for you to NOT make some reasonable savings without wasting your whole day. Remember, car insurance quotes are free so what do you lose?
Article Source: http://www.superfeature.com
Wednesday, August 22, 2007
Auto Insurance --Saving $100's Without Compromising Your Cover
Discount Auto Insurance
Auto insurance is an necessity, but why pay more for it than you have to? Take advantage of every possible discount on auto insurance that you can. Many people choose to pay auto insurance on a monthly basis. However, the premium is calculated on a six month or annual basis. If you look at your monthly statements, you are being charged for the convenience of making the payments monthly. If you pay the six month or annual premium in full you will save money over the course of the policy.
Most insurance companies offer more than just auto insurance. They want to be a provider for all the needs of their customers. There are multiple discounts offered on auto insurance if you combine it with another policy such as your home owner's insurance or a life insurance policy. This is because the insurance company wants to maintain your business. They can even roll everything into one convenient monthly, quarterly, semi annual or annual payment.
Many people don't realize that the types of vehicles they operate have a huge effect of the base cost of the auto insurance that they pay. Sports cars and convertibles are among the highest autos when it comes to insurance rates. To get discounts, consider buying vehicles with added safety features including passenger air bags, side air bags, four wheel drive, and a sensor for backing up.
The more you are able to establish yourself as a safe driver, the more discounts you will get on your auto insurance. An insurance provider will look at how long you have had your driver's license as well as any claims, accidents, and moving violations. Major moving violations such as driving under the influence will raise your insurance costs because of the high risk involved with covering you. If you have young drivers in your household, consider having them take driver's education so that you can get a discount for them. Many insurance company's offer a discount for student with good grades as well.
The internet is a great place to find out about the various discounts that may apply to your particular auto insurance needs. If you are new to getting auto insurance or you have a spotty driving record, you may have to start out paying a high premium. You can work to establish a pattern of being reliable by following the rules of the road and paying your premiums on time. This way you will be eligible to reap the rewards of discount auto insurance in the future.
Article Source: http://www.superfeature.com