Auto Insurance
"Car insurance acts like a great friend at the time of crisis. It covers the losses made in an accident and thus saves you from paying out the huge sum from your pocket. However, there does also need to be insurance on the car itself, so the owner of the car needs to take out a policy to cover it. The extension is just there in case you need to drive the car and are not a named driver under the owner's policy. One thing to bear in mind though is that you are only getting third party only cover under this extension, regardless of the cover you have on your own car, so if you have an accident, the insurer will pay out for damage to anyone else's car or property if you are to blame, but you will have to foot the bill for damage to the car you are driving under the extension yourself." -Unknown
I've been working from home since last spring. That means that my car stays in the driveway most days. I was happy about the gas money I was saving but it occurred to me that I was missing another possible savings. I called my insurance company and asked if they offered a discount for cars that do low mileage. He said yes! So now I save twice! Gwen
TIPS:
Comparison shop with at least three companies and get quotes online or through an agent.
Consider higher deductibles on collision and comprehensive coverage, which can lower your premium but increase your out-of-pocket cost in case of a claim.
Drop collision and/or comprehensive coverage on old cars that are worth less than 10 times the annual premium.
Buy a car that’s cheap to insure, meaning one that is in a lower insurance group, has good safety ratings, and is not likely to be stolen or vandalized.
Consider usage-based insurance, which tracks your driving habits and mileage and adjusts your rate accordingly. You can save money if you drive less, avoid hard braking, and follow speed limits.
Take advantage of discounts, such as those for low-mileage drivers, good students, car-safety features, anti-theft devices, bundling policies, paying in full, and more.
Update your policy annually, or whenever you have a major life change, such as moving, getting married, or retiring. You may qualify for lower rates or new discounts based on your current situation.
If vehicle is totaled or stolen and you get a low ball offer, find the average retail value of your vehicle adjusting for mileage and condition using KBB.com, Edmunds and NADA.com. Use this to write a letter to your insurer stating the values your found. Ask to meet with the adjusters supervisor if the adjuster refuse to cooperate. Invoke the appraisal clause on your contract and use an independent appraiser for the true value of your vehicle.
If driven much less ask your insurance to get you autoinsurance by the mile
Ask if taking a safe-driving course or driving less than you used to will get you any discounts
Increase your deductible: Figure out how much coverage you need to protect against a catastrophe. The lower the deductible, the more expensive the policy. Do not choose a low deductible (ie $100), choose a much higher deductible if you can afford it (maybe a $500-$1,000). Ask yourself at what dollar value would it become a real crisis for you. Can you handle a $1000 bill, or a $5000 bill? Go with a deductible you can afford and this will lower the cost of the insurance. You want the insurance to cover you for a real catastrophe.
Look at the replacement cost of the policy: If you are driving an old car, if it is not worth that much don't bother with a replacement cost. In the other hand, if you are driving a brand new car all the time and you have the tendency to replace this car every 2 years (not recommended if you want to save money) then you do need replacement coverage on the car.
Talk to your auto insurance agent: ask him/her to show you the different types of coverage and the different levels of extra coverage you want. Once you decide exactly what is it that you want to have, double check with your financial planner.
Shop around: Once you know exactly what you want , shop with that list with other insurance carriers. Tell them... here is the exact policy I want, the amount of coverage, the types of things I want covered and the deductibles I want. Using the list you will be able to determine which ones are the cheapest. Look at JDPower, Consumer Reports auto insurers lists. Get quotes from only companies that rank the highest.
Be careful about choosing the cheapest: Some insurance companies are the lowest because if you file a claim, they will automatically cancel you. You also need to know what is the record of this company in terms of paying claims. You also need to know if they have the ability to pay claims. How do they react when a claim is filed? Don't assume that the cheapest one is the best.
Look at personal injury: make sure to look at worst case scenario. If you become responsible for someone else's death or disability injury, what is your financial exposure. It might be a good idea to talk to a personal injury attorney and ask. Make sure you have coverage to protect you.
Consider an umbrella liability insurance that will provide coverage beyond what the auto policy can provide in case you get sue. Consult with your home owner insurance and auto insurance agent for advice about that.
Take the time to shop around for car insurance each time your policy is up for renewal, and you could save money each month. If you don’t have time or don’t want to comparison shop, a third-party service like The Zebra or Gabi can do it for you and give you quotes to choose from.
Ask your auto insurance broker if you are eligible for any discount i.e. there is discount if you are over 50, retired, etc. Adding a teenager can double your premium. If your child maintains a B average or better and passes a driver safety course you may be eligible for discounts. Or have the teenager get their own insurance and have them pay for it.
Check what auto insurer's think about you by using the CLUE report. CLUE is a claims-information report generated by LexisNexis®, a consumer-reporting agency. The report generally contains up to seven years of personal-auto and personal-property claims history. The report contains the following claim information provided by your insurance company. The CLUE report is the insurance-world equivalent of a credit report on insurance consumers and can have a profound impact on your personal property and auto insurance rates. But the good news is you can order your free C.L.U.E. report once a year just like you can with your credit report. If something turns up false, you can challenge it through the dispute process.
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QUOTES:
"If you don't own a car and decide to rent and have no coverage... buy a non-owner auto insurance policy that protects for temporary use of a vehicle if you are not the vehicle owner. It is not expensive at all. Or buy from travel insurance sellers a policy for renting vehicles that you can buy maybe on annual basis.
We have had car insurance with the same national company for nine years. I have not compared prices since I purchased the policy until now. With one phone call to another major company, I went from $1383 to $737 every six months for the exact same coverage. I'm in shock! Insurance companies don't typically lower your rates even if you are accident- and ticket-free. Take it from someone who learned the hard way. Compare prices often with several companies!
Mel from Dollar Stretcher Tips
Buying an Insurance- and Maintenance-Friendly Car: Trying to decide which model/year of a used (or new) car to purchase? Check with your automotive insurance agent and your trusted mechanic before committing to buy. Some cars cost more to insure and/or service because of their size, brand name, theft history, etc. I know someone who bought a luxury brand and ended up selling within two years because repair parts cost almost double, and the insurance was also much more expensive than a similar body style car with all the options. Joan from Dollar Stretcher Tips
Saving on Auto Insurance: One way to reduce auto insurance costs is to find a company which bases rates on an electronic review of driving habits. Progressive and companies with similar programs will mail you a small device which plugs into your OBD port. This device records driving hours, sudden stops, and other rate-able driving habits. After the review period, your rates will be adjusted up or down. This little device cut my rates by $200 annually. A few states allow insurance by the mile. You pay a base rate and an additional per-mile rate based on OBD data. Finally, check repair cost data on any prospective purchase, before you buy the car, and insure it for collision coverage.Stomp inflation, not gas pedals. Margaret from Dollar Stretcher Tips
Auto Insurance Discounts: I saved nearly 10% on my car insurance when I went from paying monthly to paying once every 6 months. It was a challenge the first time I did it. But after that I set aside my monthly payment and the next time it was due, it was easy! Just call your company and ask if they offer any discounts! Julie on Dollar Stretcher Savings tip
Insurance Deductible Savings: Call your home and car insurance agent and see if you can lower your monthly premium by increasing your deductible amount. If you're like me, you set those amounts when you may not have had the savings built up that you do now. Just this month I increased my auto deductible from $100 to $1000 and my homeowner's deductible from $1000 to $5000. If something happens, I can cover those amounts with my savings, but if it costs over those amounts, I will have to decide if I want or need to make the claim. I saved $70 a month! That's $840 a year and I still have exactly the same coverage. Dolores from Dollar Stretcher Tips
The Older Car Shift: I drop collision on my car insurance as my car gets older. I put that money into preventive maintenance. It helps keep the car safe and I am not forced to buy a new car. Bill from Dollar Stretcher Money Saving Tip
Don't Overlook This Auto Insurance Discount: I saved nearly 10% on my car insurance when I went from paying monthly to paying once every six months. It was a challenge the first time I did it. But after that, I set aside my monthly payment in my savings account, and the next time my 6-month premium was due, it was easy! Julie from Dollar Stretcher Tips
Temporary Auto Insurance Savings: Our budget is very tight and now our auto insurance has gone up up. By raising our deductibles and reducing the coverage on my husband's car, it brought our policy cost back down to less than what it was before the increase. Thankfully we have enough in our emergency fund to cover most of the deductible and our tax refund will go into our emergency fund to cover the difference. Also, my husband's car only gets driven about 10 to 15 miles per week. Over the next six months, if we need to travel anywhere by car, we'll take the car with more insurance. In six months we'll re-evaluate to see if it makes financial sense to lower our deductibles once again or leave them as is or increase our coverage once again. But for now, it is saving us a little bit of money during a semi-tough time. Ben from Dollar Stretcher Tips