Not too many people realize that insurance rates differ with each insurance agent or broker. Insurance companies also provide different kinds of coverage, depending on the car you have. By not being able to identify these, you may put a big dent on where it matters most — your budget. Obtaining a lower auto insurance cost is possible if you ask the proper questions from your insurance broker or agent and if you know what coverage suits your needs best.
First, as any sensible person should do, you need to get an idea of how much an auto insurance coverage cost these days. You can do this by calling your local state insurance, or by checking consumer guides or by browsing through the yellow pages for insurance companies. You can also check rates through company websites on the internet. You need to have at least three to five quotes to compare with.
While you’re making a price comparison, you may also want to do a background check on the insurance company where you may be buying coverage from. After all, you are getting this coverage for your own protection, stability and peace of mind, so choosing a reputable agency to do that for you is very important. Check the company’s standing through consumer magazines, newspaper business section or rating companies like AM Best Standard & Poor. Recommendations from family and friends should also matter. They can share valuable information you don’t normally get from the company profiles you read.
Some insurance companies directly sell coverage without agents, while others do hire people to represent for them. If you’re dealing with an agent, be sure to get one who will take time to explain what you want to know about the coverage. You can probably inquire from your agent the following:
- Price breaks and guidelines – Insurance companies have set guidelines for agents to base price on. And criteria may include any of the following 1) your number of traffic violations, 2) how many accidents you may have or have not been involved in the last year, 3) the mileage you have on your car.
- Discounts – Some companies may offer several types of discounts such as 1) if you are insuring more than one car, 2) your vehicle is equipped with additional safety measures like automatic seatbelts, airbags, ABS and anti-theft devices, 3) you have other insurance coverage, such as a home insurance, from the same insurance company. You may also lower your auto coverage cost and avail of discounts if you seek a group insurance policy, so consider asking about that, too.
- Higher deductibles – A deductible is the amount you pay for your coverage before it sets. Negotiating for a higher deductible will ensure you have money saved by the time you use your coverage to make a claim.
When you have discussed all these with your chosen agent or agency, review the policy before you make the final decision. Do take note that it may not be practical to include comprehensive collision coverage for cars that are substantially old or is worth less than your premium.
On the other hand, a high profile car, or those that carry expensive parts and may be in need of regular expensive maintenance, or worse – become a target of thieves because it is such an expensive car (like a sports utility vehicle), may also put a big premium on your coverage. So if you are just thinking of buying a car and getting it covered, it may help to consider this information before you make a purchase.
As an add-on cost, some companies include health insurance coverage to the auto insurance policy. Determine if you really need this or you might just be paying double. Doing away with a health insurance coverage on your auto insurance can reduce cost by at least 40%.
Finally, strive to maintain a good credit standing. If you’re checking out insurance companies and their rates, they will also be checking you for credit information and your policy’s cost may be based on this. Make sure to pay your bills regularly or achieve a low credit balance so that your record is also good and accurate when they seek out or check this.
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There are around 20 million poor (eligible for food stamps) who can get their auto insurance for free (off the taxpayer). They simply buy 300$ of auto insurance, see their wallet is empty with no money to buy food, and go down to the welfare office and get the 300$ back in food stamps. You should be able to plug in “Auto insurance laws causing more on food stamps” into the Blog search engine and see more.
Anytime indigents have an unexpected expense, they can go on food stamps, and 300$ for auto insurance is a sudden unexpected expense.
Comment by Don Birkholz — February 27, 2007 @ 1:34 pm