Car insurance can be a notable monthly expense, especially if you own a original vehicle or are leasing a vehicle for an extended period of time. You may be paying too much for car insurance if you find that your insurance premium is going up every six months or each year even when you have a super driving record, or if you find that several competitor rates are much lower.
Many people don’t realize how easy it is to negotiate a lower auto insurance rate, and there are several things you can do to lower your premium without sacrificing quality coverage for your vehicle. Here are just five secrets to negotiating a lower auto insurance rate:
1. Ask about different coverage options. Insurance agents are trained to offer you the best possible coverage, but that doesn’t mean you will get the least expensive premium. Earn sure that you are investing in a policy that provides coverage for what you really need, and don’t be afraid to say no to “extras” such as rental car reimbursement or towing, which are typically covered by AAA anyway.
2. Make sure the insurance company is aware of safety features and efficiency ratings. Many insurance companies offer lower rates to drivers who own a fuel-efficient or hybrid vehicle, as well as to those who own vehicles equipped with anti-theft devices and extra security features such as a GPS tracking service or alarm system. Make sure you provide a detailed explanation of your vehicle when submitting your application or when requesting a re-evaluation of your account so that you can secure the best available rate.
3. Ask about discounts for multiple policy holders. If your car insurance company also offers other types of insurance, such as life insurance and homeowners insurance, you may be able to negotiate a better rate by purchasing your policies all in one site. Many insurance companies extend a discount to customers who consolidate their insurance policy needs.
4. Let your insurance agent know you’re shopping around. A snappily phone call is all it takes to get a quote from several insurance companies. Let your existing insurance provider know that you have received competitive quotes from other providers and are considering switching. Your existing insurance company may be able to offer you a better quote and may even re-evaluate your account to get sure that their rates are still competitive.
5. Demand more information about discounts and incentives you are eligible for. Many insurance companies will extend a “good driver” discount or incentives for long-time policyholders. Get in touch with an insurance agent so that you can discuss any benefits, discounts and special offers you may be entitled to.
Sources:
http://www.motorlogy.com/strategies-for-negotiating-lower-auto-insurance-rates-849/
http://carinsurancecomparison.com.au/how-to-negotiate-lower-car-insurance-premiums/
http://www.iwillteachyoutoberich.com/blog/tip-13-negotiate-your-car-insurance/
Filed under Auto Insurance Reviews by on Mar 13th, 2011. Comment. 
We have all received those offers in the mail from AAA for their Roadside Assistance program, which advertises peace of mind for traveling the inaugurate road. While it is easy to see the need for such services, it can seem tempting to choose a similar opinion through your auto insurance carrier in order to build money. After all, this only adds about $3-10 to your insurance bill on a six month policy. Similar coverage will cost you $50-100 per year through a company like AAA. Surely insurance is a better deal, right? Think again!
What you may not know is that insurers keep track of your roadside assistance claims and in some cases, you may find yourself paying a higher premium if your car blows a tire one too many times. While it is unlikely that a one-time jump start will raise your rates, many insurers judge roadside assistance claims as one predictor of risk, which can impact premiums. Remember the money you thought you were saving by using your auto insurance instead of AAA? You can kiss that money good-bye.
In addition, automobile towing claims are reported to a national database run by Atlanta-based ChoicePoint, which provides insurers with claims information on consumers to help insurers process insurance applications. This database is checked each time you apply for a new policy in order to determine whether or not you have been truthful in regards to your application. However, it can be nearly impossible to distinguish a towing claim made for roadside assistance from one made after a motor vehicle accident. This means that flat tire you had that required a tow could make future inquirers think that you were in an accident you did not fully disclose. Interestingly, Choicepoint does not keep a record of towing claims made through companies like AAA.
These reasons alone are reasons to choose AAA over your auto insurance provider, but also retain in mind that AAA offers discounts on hotels, car rentals, and other travel expenses which can quickly add up. Plus, you can be guaranteed that your insurance premiums will not increase, and your records will be kept private. That kind of peace of mind is worth a little extra money to me. Is it worth it to you?
Filed under State Farm Auto Insurance by on Feb 26th, 2011. Comment.
Shopping for auto insurance is a complex affair depending on how your current policy is spot up. My automobile policy is carried by the same company that does my homeowners' insurance. My monthly mortgage payment is based on a calculation derived from information provided by the same company. To change automobile insurance means that I have to make changes to my escrow and homeowner's policy. Who wants to do all that?
There are plenty of good reasons to shop for auto insurance right now though. Whenever the economy tanks, millions of customers let insurance policies lapse. This presents an unsafe driving environment for the consumer and harsh fights among the insurance giants for the remaining paying customers. That's beneficial news for you. I'm obvious you've noticed that auto insurance companies have ramped up the volume in the past few months. That's because there have been major migrations of customers between the big 4 auto companies since 2009. Customers are looking for a wonderful deal, and simply being big isn't going to keep customers paying higher rates. The top 3 auto insurance companies are Geico, Allstate and Spot Farm. These companies account for about 35% of the market collectively. Lately your television has been flooded with commercials by companies like Progressive and Farmer's auto insurance. These companies are looking to take some market share away from the leaders. Of course the problem is that the two leaders in the market have highly dedicated customers who may have never had a different insurer in their lives. Discount stacking and bundling accomplish even getting these customers into a competitor's office a challenge. But there are many deals to be had for the persistent customer. As the market is being shaken up, there is a premium placed on customers to join a new company and stick with that company for many years. Listed below are some tips you can use going into the office of a competitor for an insurance quote.
- Bring all your relevant documentation. License, vehicle information, homeowner's information, secondary vehicle information, etc.
- Ask for discounts that involve bundling. There are multi-car discounts, homeowner packages, driver training discounts, discounts for good grades for students, and fine driver discounts.
- Tell the salesperson what the competition is doing to get the mark down. Don't be shy, when it comes to the fact that you want a lower label.
- Ask for what the policy doesn't hide. Does it cover flood distress, one car accidents, accidents involving hit and runs and acts of God?
- Does the policy include roadside assistance, rental car and towing? Did your old policy cover these things?
- Does the policy include collision and comprehensive? Never catch a liability only quote. This is a rock-bottom price that won't repair your car in an accident.
Right now the insurance world is working aggressively to get your dollar. Now is the perfect time to help your dollar go farther. I will be shopping this year and I plan to save some money. I hope you save some money as well.
Sources:
A.M. Best
Interviews
Other Articles By The Author
Filed under Mercury Auto Insurance by on Feb 24th, 2011. Comment.
Since the mid-1990s, insurance companies have tightened their eligibility requirements for new policyholders. In addition, the entire insurance industry has bound together to relay information between them. Allstate Insurance has just as much vested interest in the information contained in these reports as Nationwide Insurance and other leading carriers do. This is all to keep policyholders from being dishonest or simply inaccurate regarding their insurance history. Each secret below is no secret to the insurance carrier you’re getting a quote from.
Secret number one
Standard insurance carriers run credit checks prior to giving you an auto insurance quote. These are referred to as Financial Responsibility Scores. The insurance agent can’t see the report but rather it goes through the system and simply tells the agent whether or not you are eligible to be written in that company. If you are not eligible, you can mild rep a quote but it will be with a higher rate. Although these are not the same credit reports as when you apply for a loan, the report does affect your eligibility and your rates.
Secret number two
Any claim you’ve submitted in the past 10 years is visible to anyone in the insurance industry. Insurance companies have developed reporting procedures to inform each other of claims called an Auto loss history report. If you’ve submitted many small claims or even one big claim, you’ll either be charged more or you won’t be eligible for a standard policy at all.
Secret number three
There could not be a more important secret. Never, ever let your insurance cancel. The most steadfast rule in the insurance industry is proof of prior insurance. If you are uninsured for over 30 days, you can bet on higher insurance prices for at least the next year. Not only will being uninsured put you into a higher premium bracket; you may have to stay there for a period of time before the company will consider lowering your rates.
Sure, there are benefits to keeping your business with the same company for several years but it’s also good to shop and compare pricing. By keeping these three things in line, you’re more likely to get the best rate possible.
Filed under State Farm Auto Insurance by on Feb 21st, 2011. Comment.
Unemployment is at a high, employers are cutting salaries, and your auto insurance premiums seem to be going up. Although this might be new to you, there are several tried and proven techniques for cutting auto insurance costs. Check out these seven ways for a lighter auto insurance bill in 2010.
Cut Auto Insurance Costs by Shopping Around
The most effective way to cut your auto insurance costs is to shop around. This seems determined but doing this will result in your biggest cost savings. Keep a copy of your new policy in front of you as you shop online or over the phone. Get quotes for the exact same coverages you currently have. Once you have shopped around and gotten atleast five quotes compare the prices. Before going with the novel auto insurance company, make certain to check the company out for complaints against them.
Increase Your Deductible to Cut Your Auto Insurance Costs
Auto insurers offer cost savings on your premiums if you take on a higher deductible. Call your agent and ask for impress quotes with your deductible set at different levels. The most common deductibles are $250, $500, and $1000. By taking on more of the risk, you will effectively cut your auto insurance costs.
Cut Costs by Paying in One or Two Installments
Many auto insurance companies will reduce the amount of premiums you pay if you pay your insurance annually or semi-annually. This benefits the auto insurance company by them getting their money upfront and they pass some of these costs savings on to you. If you are current paying your premiums monthly, call your auto agent or insurance company directly and ask the if they offer this type of discount.
Cut Auto Insurance Costs by Adding your Homeowners Insurance to the Policy
The more business you give to your insurance company the better discounts they will give you. You can carve your auto insurance costs by adding additional policies with your auto insurance carrier. If you currently have your homeowners insurance through a different company, call your auto insurer and ask them what type of discount you could get by adding this. Try this and you could just cut your costs for both your auto insurance and homeowners insurance!
Driver a Car that is Cheaper To Insure to Cut Auto Insurance Premiums
Did you know that certain cars cost more to insure than others? The auto insurance companies take into consideration the cost to repair each vehicle when figuring the premiums. If you are in need of a different car in 2010, the right one just could carve the cost of your auto insurance.
Robot Ride = Cost Savings
A unique befriend currently offered by Progressive is a cost cut in your auto insurance rate if you fit a positive criteria. Tom Barlow states in his article on this topic “The company uses three criteria for the MyRate discount: defensive driving practices, low annual mileage (under 10,000 miles), and shrimp driving after midnight.” How do they measure this? They install an electronic device in your car that measures the time of day you drive along with your driving behaviors.
There you have it. Six ways to cut auto insurance costs. Cut auto insurance costs and save money by simply shopping around or try the unique plan offered by Progressive with a Robot device installed in your car. Try one of them or try them all, but most importantly catch a way to cut those costs!
Sources:
www.naic.org
www.autoblog.com
www.walletpop.com
Filed under Aaa Auto Insurance by on Feb 19th, 2011. Comment.
