Most people don't know it, but the type of insurance coverage you choose is directly related to how much you will be paying as your insurance premium. In essence, the more coverage you have, the higher your premiums will be. With insurance costs adding up to our daily financial struggles, it is no surprise to glance people looking for a more cost-efficient insurance solution. The following are some of the factors that can affect the high costs we pay on our insurance policies.
Do you currently have other types of insurance policies, such as life insurance, home insurance or health insurance? If you do, a good strategy would be to ask your current insurance company to give you a quote on auto insurance. Insurance companies will be willing to offer you more than one policy since they will still be making money from you. Having all your insurance products aligned with one single firm, makes it easier for you or your broker, depending on who handles the paperwork. By opting for such a solution, insurance companies will be willing to offer you discounts on your policies. This is a very cost-efficient way to purchase insurance, if you already have other policies in place.
As mentioned before, the type of insurance converge you acquire for your vehicle will be directly related to the amount of money you pay towards your policy. Before you jump around to conclusions, let's have a look at some of the types of insurance policies and see which one would be the most cost-efficient, without compromising the level coverage.
The basic type of insurance coverage which is mandatory by all states and provinces is third party coverage. Third party coverage will cover all damages you cause to someone else's vehicle. Every single vehicle you notice operating on street has this coverage, as it is a must to have it. Third party coverage is the cheapest solution when it comes to insurance coverage. However, not everyone opts for this, due to the types of vehicle they drive. If your vehicle is not worth as high, you would be better off by taking on a third party coverage policy.
Comprehensive coverage or fully comprehensive coverage, however you want to call it, is the best coverage on the market. A fully comprehensive policy will cover two parties in case of an accident. If you are at fault, your insurance company will cover the costs of repair for both your vehicle and that of the third parties. You have no liability for any of the costs, apart from the deductible which you have set in your policy. This type of coverage is favoured over the prior type, but this will cost you a little more.
If you do need to have a fully comprehensive auto insurance policy, you can search online for companies offering quotes and processing through the internet. Insurance companies that have online application processing will offer your discounts on your auto insurance plan.
Filed under Cheap Automobile Insurance by on Mar 14th, 2011. Comment. 
Insurance is all about statistics and risks. Unfortunately for students, the statistics prove that they are more likely to be involved in vehicle accidents and to show poor driving skills based upon their lack of driving experience and age. Affordable car insurance rates can be had for students who do their homework and make some concessions.
Defensive Driving - State approved defensive driving courses could offer a discount for student drivers. More education and driving instruction means safer drivers on the road. Many insurance carriers will give a discount for such instruction. However, classes that are mandatory because of traffic violations will not qualify for such discounts. The whole point of a defensive driving discount is to reward for knowledge and safety; traffic violations run contrary to grand driving practices.
“A” For Concern - Here’s another reason for students to hit the books. Satisfactory grades can pay off in the real world in the accomplish of auto insurance discounts. Insurance companies often give discounts to students who maintain good grades.
Family Policy - A students insurance can be cheaper if they are insured on their parents policy instead of taking out their own insurance separately. A few calls and some research can determine the difference in rates for being insured with their parents or going it alone. Provided that the student qualifies to stay on their parents insurance and the parents allow it, it may be more cost efficient to consider doing so.
Resident Student – In addition to riding on a parents policy, students can receive a lower rate from the insurance companies that give a discount if the student is attending a school that is closer to home.
Higher Deductible - This insurance tip applies to everyone. A higher deductible can save you money on your policy, but you have to be prepared to cloak the deductible should a collision occur. You have to weigh the cost versus the possibility that you won’t be able to afford to pay the higher deductible if the need arises.
Insurance Friendly Cars - A students dream car is rarely a car that will demand a obscene insurance rate. Instead of opting for sports cars, a student driver should rob a car with a lower associated insurance risk to carry out a better rate.
Skip Collision - Provided you don’t have a car imprint, you can probably skip collision coverage if your car has a low value. If you are driving around a cheap junker, then you can probably do without the extra expense.
Safety Features - If you do have a newer, more expensive car; you can shave some insurance cost off with safety features. Things like automatic seatbelts and anti-theft devices can net you some savings on your premiums.
Multiple Policy Discounts - Insurance companies want all your business. If they offer different insurance coverage, then they will usually give you a discount for bringing all your business to them. Renters insurance is a possibility for students who are away from home while going to school. For students who are on their parents policies, life insurance or homeowners insurance are options for additional coverage.
Shop Around - Sometimes a little extra leg work can mean big savings. Instead of automatically renewing with the same company; shop around and see what other companies have to offer and how they compare.
All discounts and savings may not apply to certain students or be valid in obvious states or with certain insurance companies. Make sure you have all the facts about what discounts you are eligible for. One final tip; know that you can change insurance in mid-policy. There is no need to quit with a company until your policy expires if you find somewhere else you would rather be.
Resources
Money Colorful Life – College Student Car Insurance, Tips on getting the best rates for students
Rocky Mountain Insurance Information Association – Teens Shopping For Auto Insurance
Auto Insurance Discounts vs “Discount Auto Insurance” – Discounts On Auto Insurance
Filed under Cheap Automobile Insurance by on Jan 24th, 2011. Comment.
The biggest milestone a teenager reaches is getting their drivers license. From a teenagers’ perspective all they have to do is take drivers education and pass the driving test. They do not think about the costs acquainted with them driving. They do not contemplate about the soaring prices of gas or how much money it takes to steal a car and keep it running. The only thing teenagers have on their mind is getting the keys and cruising around with their friends. Teenage drivers’ parents are left trying to figure out how to afford this mammoth milestone in their teenagers’ life. Most parents can stomach the cost of a car and how much it will grasp to gas it up. What very few realize is that auto insurance is expensive for these inexperienced drivers. Here are some tips for parents on how to find cheap auto insurance for their teenage drivers.
Before you commence looking for car insurance for your teen mediate about the kind of car they will be driving. If you buy your teenage driver a 2010 Honda Accord the insurance will be sky high because you will be paying for comprehensive and collision coverage for a new untested driver. If you buy your teenage driver a 1999 Honda Civic you will feel more comfortable carrying only liability on the car because the car is not worth that grand money anymore. This is the number one factor to look at when you start looking for cheap auto insurance rates.
The next step is to call your current carrier. If you have been with a good insurance company for a long time they will usually quote you a lower rate than if were to call a original carrier. Beget it or not insurance companies usually do reward loyalty and that includes cheaper pricing for teenage drivers. This is especially true if the parents have crystal clean driving records themselves. Most insurance companies will include good driving discounts on the teenage drivers’ rates if the parents themselves qualify for them.
If you are a parent with a less than stellar driving record your insurance company may actually charge more for your teen because they consider your teen higher risk than the young driver whose parents have clean records. This is a edifying time for you to launch shopping around for cheap auto insurance for your teenage driver.
As you shop for cheap car insurance your best bet is to shop for the whole family. Most insurance carriers will not insure anyone under 18 by themselves. Also, if you separate one car from your policy that car will lose a multi-vehicle discount that works in your favor to keep your insurance costs cheap.
So, beget a list of 3 top nationally recognized auto insurance companies and call them all. Make positive you mention you have a teenage driver in the beginning of the call as some insurance companies will reject policies that have new drivers on them. Also make sure you have your current policy with you so you can request rates based off your correct coverage’s.
While talking to the various insurance agents have them give you high, medium, and low coverage package quotes. It is suggested people who own a home and have assets, like many parents do, carry their bodily injury limits at 100/300. This is very important because higher coverage’s protect your assets the best. But, when trying to find cheap auto insurance for teenage drivers, you may explore Bodily Injury limits at 50/100 or even down to your state minimum requirement (which would give you the low quote).
If you did remove your teenage driver a newer car that requires comprehensive and collision (or paunchy coverage), have the car insurance agents quote you with higher deductibles like $750 or $1000. While it is not recommended to carry high deductibles, sometimes you have to when dealing with the high cost of insurance for teenage drivers.
If you do all this and are still having trouble finding cheap car insurance for your teenage driver call an auto insurance broker in your area. You can find them listed in the yellow pages. These brokers deal with smaller insurance companies and will shop amongst them for you to find the cheapest rates. While these smaller companies may not net the highest customer service ratings or be nationally recognized they sometimes do give cheap rates for teenage drivers. Smaller companies may even insure your teenager on their own policy so you do not have to leave the carrier you have been with for years. While this is not recommended it may be the only affordable choice.
While there are cheap car insurance rates for teenage drivers available it just may buy some time to regain them. A lot of parents avoid expensive insurance rates by requiring their teenage driver bear a 3.0 GPA in school as many insurance companies reward good grades with a massive discount. Make sure your current insurance company is including all discounts available and ask them what you need to do to qualify for additional discounts in the future. Further, while the initial auto insurance rates may be expensive at first they could become cheap after the teenage driver has maintained a clean record for their first year or two of driving.
*All tips given here are based on author Kirstin Filliez’s experience while working as an auto insurance sales agent for the last 7 years. None of the tips guarantee lower rates, they are unprejudiced some ideas that have worked for other insureds in the past.
Filed under Cheap Automobile Insurance by on Dec 15th, 2010. Comment.
