7 Tips to Saving Money on Car Insurance
If it’s been a while since you have reviewed your car insurance policy, chances are — you are paying too much for auto insurance. In this post, we will list seven tips for saving money on your car insurance bill.
- Shop around for the cheapest car insurance — By comparing car insurance rates, policyholders can save anywhere from $100 to $1000 or more on their policy, each year. While the concept of comparing car insurance rates has been around for a long time, new comparison tools make finding the best rates, so much easier. Consumers can select a comparison website that allows them to input some information and in a few minutes, they will receive multiple insurance quotes from different companies — delivered right to their e-mail.
- Avoid paying monthly car insurance bills – Insurance providers can charge at least $5 per month extra for policyholders who pay monthly. If possibl
How to Find the Best Auto Insurance Quote
You might think that the best way to get an affordable auto insurance quote is to talk to your friends and see who is paying the least, but that is not always the case. For the most part, there is not really one company that, across the board, is less expensive than all the others. Much of what you pay for your car insurance is based on a complex algorithm of factors, some of which we have no control over.
When you get an auto insurance quote, the company is basing your premium on your age, your gender, your car, your driving record, where you live and even your credit score. There are also other factors involved, such as how many miles you drive per year and whether or not your car is kept in a garage.
Simplifying the process of obtaining automobile insurance quotes
Automobile insurance is the coverage that provides customers protection against the financial expenses that a vehicle owner can face when met with any kind of accident. In most countries it is but compulsory to have auto insurance for driving any kind of vehicle on the public road.
Factors that decide auto insurance quotes
- The make and model- Expensive car models attract more insurance premiums.
- Type of car- Racing cars or cars for domestic use.
- Age of the car owner- Greater the age more will be the insurance cost.
- Driving experience of the car owner. –
Does car color impact the cost of insurance?
The color of your car does not have a direct impact on the cost of insurance. This is one of the big car insurance myths out there. However, there is an indirect impact on your car insurance. How? To answer the question the first thing we need to do is determine what does affect insurance prices.
Several factors affect the price of your car insurance such as:
- Number of tickets
- Driving history
- Car make, model, body type
- Number of accidents
- Age
- Gender
- Location
You’ll notice that car color is not among those factors considered by an insurance company. That’s because those are all direct factors. So how do we come up with the myth that car color affects insurance costs?
Well, the myth centers on the color red. Several studies have been done that involve people and the color of cars they drive. In general, it was noted that people who like the color red tended to be more aggressive. Those same drivers drove faster. Those who preferred red were in general more reckless than others were. This is where the indirect impact occurs. Someone who is reckless, aggressive, and speeds is far more likely to be involved in more accidents, have an increased amount of tickets, and have a worse driving history than someone else. Therefore, these drivers, with red cars, will in general have a higher insurance rate than others will. Thus the myth, red cars increase your insurance. It’s a mistake of causation versus correlation. This won’t be an impact of the car color, but rather the impact of the actions and psychology of the person who chooses red as car color.
Frosting Crimes Increase As Insurance Firm Warns Motorists
If the times are right, the free car insurance quotes that you have been blessed with come to your rescue. It has been seen that motorists have been falling prey to car thieves in the nick of winter weather. Sainsburys Finance has asked the insurance holders in UK to be wary of thieves this Christmas as the cold weather and the blizzards have paved the way for the increase in the frosting crimes. The head of the previously mentioned insurance company believes that most of the people with insurance premiums are not protected against this form of car theft. Although most of the insurance companies offer insurance cover for theft cases, frosting crimes are not included in most of the policies.
DUI and Auto Insurance – Will it Go Up?
A DUI, also known as, driving under the influence is a serious offense. If you have had the unfortunate experience of receiving a DUI conviction, you are fully aware that the consequences can be humiliating and expensive. After paying the attorney fees, court costs, fines and license suspension, there are other consequences that you will be faced with, particularly changes to your insurance rates and coverage.
If you have been convicted of a DUI, most likely, your insurance company will find out about it. Insurance companies will deal with this conviction in one of two ways.
In the event of DUI, the insurance company can either:
- Increase your premium, substantially or
- Cancel your policy
If the company decides to go with ‘option 1?, the DUI offender will most likely be labeled as a “high-risk” driver. Most
Better Value for money- how to get good car insurance coverage for lower rates!
Let us consider some facts at the outset –
- Car insurance frauds have soared to about 33% since 2006 – Daily News report for 2010.
- The U.S. Department of Transportation reports that about 6,000 motorists were killed and 500,000 injured; due to distracted driving in 2008.
- With recession looming large over their heads, more and more people have taken loans that they are unable to repay on time, and the credit keeps building up!
If you’re wondering about the relevance of the facts mentioned here, think again; all of these are directly related to the sum each individual pays as the cost of his car insurance. Frauds are compensated for, by offering basic car insurance coverage at steeper prices. With
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