Advice On Keeping Car Insurance Premiums Low
In these kinds of rough economic times, you want to save wherever you can. One of the most obvious places where you would want to save is in your car insurance premiums. But so many factors influence premiums, and all too often you seem destined to pay more and more as time goes on. Don't give up! You, too, can save on your car insurance if you're willing to put in the effort to become a low-risk driver. By doing your best to be a safe driver, car owner, and insurance policy holder in all aspects of your life, you can save in many different ways and enjoy the same great coverage with more spending freedom.
Car insurance companies calculate your overall risk level by taking into account things like your driving history, your age, the type of car you own, and your credit score. There's no way to find out for sure what they rate you as, but you can look at the same things they look at and then make a reasonably good educated guess at your risk level. The first thing to do to save on your premiums is to remember these things when you're first shopping for a car or an insurance policy. By buying less flashy, subdued car models, you reduce your risk. Buying insurance only when you have a good credit rating is also a very sensible idea. You don't want to be stuck with awful premiums because of a temporary slump in your credit rating, do you?
To keep premiums down, you might try filing claims on certain items on your home insurance, rather than your car insurance. Most home insurance policies have allowances for small inexpensive items like CD's. Filing accident claims on your car insurance will likely raise the rates you pay. For instance, if you get into an accident that was determined to be your fault, your premium will likely increase by 40%.
In the event of an accident contact your insurance company about its forgiveness policy, if any, and see whether or not you qualify. Some companies have a policy of forgiving each client's first accident. Some companies will forgive the accidents of certain qualified clients. You should also be aware that if a friend, using your car, gets into an accident then you will have to file a claim with your insurer. If your friend is uninsured and causes damage that exceeds your coverage then you may be held liable for damages.
Insurance companies will only cover you for the overall value of the vehicle, so don't ever expect to get more than that. And this value isn't necessarily the price you paid to take it out of the car lot, either. A used vehicle obviously loses significant value, so you have to calculate wear and tear when you're trying to figure out how much coverage you can squeeze out of your insurance. This is one of several good reasons why you should take care of your car, too. Change the oil every once in a while, have it tuned up every once in a while, and repair minor problems quickly before they turn into major ones.
If you feel that your car insurance company drastically undervalues your car, don't worry, there are measures you can take to remedy the situation. Gap insurance exists for just such times, and will cover the other expenses your car insurance company is ordinarily unwilling to cover. It can make a big difference and save your neck when your bad luck places your damages at just a bit over the coverage your policy offers.
Note: You can wait to add your teen driver until they are licensed. While operating under a "learner's permit" your teen does not need to be on your coverage, thus saving you money. However, do NOT forget to add them as soon as they become licensed. If you delay, you'll have to pay the higher premium retroactively to the date they got their license. Note: When changing insurance carriers, be sure to cancel your previous coverage in writing. The easiest way is to give your insurance agent a call. They'll even complete the cancellation paperwork and send it to you for signature. Be sure to give the exact date your new coverage begins, so that you do not have a lapse in coverage. - 21392
Car insurance companies calculate your overall risk level by taking into account things like your driving history, your age, the type of car you own, and your credit score. There's no way to find out for sure what they rate you as, but you can look at the same things they look at and then make a reasonably good educated guess at your risk level. The first thing to do to save on your premiums is to remember these things when you're first shopping for a car or an insurance policy. By buying less flashy, subdued car models, you reduce your risk. Buying insurance only when you have a good credit rating is also a very sensible idea. You don't want to be stuck with awful premiums because of a temporary slump in your credit rating, do you?
To keep premiums down, you might try filing claims on certain items on your home insurance, rather than your car insurance. Most home insurance policies have allowances for small inexpensive items like CD's. Filing accident claims on your car insurance will likely raise the rates you pay. For instance, if you get into an accident that was determined to be your fault, your premium will likely increase by 40%.
In the event of an accident contact your insurance company about its forgiveness policy, if any, and see whether or not you qualify. Some companies have a policy of forgiving each client's first accident. Some companies will forgive the accidents of certain qualified clients. You should also be aware that if a friend, using your car, gets into an accident then you will have to file a claim with your insurer. If your friend is uninsured and causes damage that exceeds your coverage then you may be held liable for damages.
Insurance companies will only cover you for the overall value of the vehicle, so don't ever expect to get more than that. And this value isn't necessarily the price you paid to take it out of the car lot, either. A used vehicle obviously loses significant value, so you have to calculate wear and tear when you're trying to figure out how much coverage you can squeeze out of your insurance. This is one of several good reasons why you should take care of your car, too. Change the oil every once in a while, have it tuned up every once in a while, and repair minor problems quickly before they turn into major ones.
If you feel that your car insurance company drastically undervalues your car, don't worry, there are measures you can take to remedy the situation. Gap insurance exists for just such times, and will cover the other expenses your car insurance company is ordinarily unwilling to cover. It can make a big difference and save your neck when your bad luck places your damages at just a bit over the coverage your policy offers.
Note: You can wait to add your teen driver until they are licensed. While operating under a "learner's permit" your teen does not need to be on your coverage, thus saving you money. However, do NOT forget to add them as soon as they become licensed. If you delay, you'll have to pay the higher premium retroactively to the date they got their license. Note: When changing insurance carriers, be sure to cancel your previous coverage in writing. The easiest way is to give your insurance agent a call. They'll even complete the cancellation paperwork and send it to you for signature. Be sure to give the exact date your new coverage begins, so that you do not have a lapse in coverage. - 21392
About the Author:
Susan Reynolds is a content coordinator for a leading South African Insurance Provider that specialises in Car Insurance Policies.
posted by X - Men @ 12:02 AM
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