Posts Tagged ‘auto insurance savings’

Save Money on Car Insurance Once Vehicle is Paid Off

Thursday, September 9th, 2010

If you took out a loan to pay for your car, the lender probably required you have a certain level of insurance coverage in place as a condition of getting financing. The lender wants to protect its interests by making sure that the amount of the outstanding loan is covered if the car is totaled in an accident.

Most states require that vehicle owners have bodily injury liability coverage in place.
Whether the car has an outstanding loan or not, owners must have at least the minimum level of coverage in place. This insurance protects the occupants of the other vehicle and pays for their medical bills and other expenses incurred after an accident.

Once the vehicle is paid off, the owner can consider the level of coverage he or she has in place. The level of protection the lender insisted on may be higher than the minimum level of coverage required by the state where the driver lives. When the financial obligation to make payments on the car stops, the owner can reconsider the level of coverage he or she has in place.

By this point, the car is older and is less costly to replace. The level of collision and comprehensive coverage could be reduced, which would save the owner some money on its cost. The owner may determine that he or she can pay for repair costs themselves and drop the collision coverage altogether.

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Posted in Cheap Car Insurance |

Save on Car Insurance by Paying in Full

Wednesday, September 8th, 2010

To keep car insurance costs down, it pays to shop around for coverage and do your homework to make sure you are getting all the discounts you are entitled to. Another way to save money on car insurance coverage is to pay the amount owing for coverage in full.

While it may be convenient to pay for your premium monthly, the insurance company may charge extra for the privilege. When you ask for a quote for coverage, be sure to ask about payment options and if you can get a better rate if you pay for six or 12 months at a time. If the company provides you with a rate for monthly payments, multiply it by 12 to see if you are being charged extra fees for this payment option.

If you are able to pay the full amount, ask if the insurance company is prepared to offer a discount for paying in full. In some cases, paying the full cost will give you an additional 10 percent off the cost of your car insurance coverage – along with any other discounts you would qualify for.

Not all car insurance customers have the means to pay for their coverage at once. For them, paying monthly is easier on their budget. They can still ask about other discounts they may be entitled to as a strategy for keeping the cost of car insurance affordable.

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Posted in Cheap Car Insurance |

Your Chosen Occupation May Help to Save You Money on Car Insurance

Tuesday, September 7th, 2010

When you apply for car insurance coverage, the company looks at general numbers, as well as your individual driving history to determine whether you are a risky prospect to insure. The higher the risk you are deemed to present, the further into your pocket you are going to have to dig to get the protection you need and must legally have in place to operate a motor vehicle.

The insurance company is interested in finding out what kind of work you do. They are not asking the question out of idle curiosity, though: insurance companies collect all kinds of statistics to help them when they are determining rates, and they know that people who work in certain types of jobs are less likely to be involved in an accident.

For example, engineers are considered a low-risk profession for car accidents. Perhaps because they need to be very precise in their work the insurance companies consider them to be less risky to insure than people who work in other types of jobs. Whatever the reason, a person who works in this field may be able to get a break on his or her insurance coverage.

To find out whether your choice of occupation qualifies you for a break on your insurance coverage, contact your insurance company or independent agent. Not all insurers will offer a discount based on occupation, but it doesn’t hurt to ask.

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Posted in Discount Car Insurance |

Installing Safety Features on Your Car Can Help You Save Money on Insurance

Tuesday, September 7th, 2010

Insurance companies want to avoid paying out money in claims whenever they can. What does this mean to the car insurance buyer who is looking to save money? Anything you can do to lower the risk that your car insurance company will have to pay out on a claim against your policy will help you to get lower rates.

In some parts of the United States, including New York, New Jersey and Florida, car insurance companies are required to offer discounts to drivers who choose a vehicle that comes with anti-lock brakes. A call to your insurance company can help you find out whether this is one of the discounts the company offers, whether they are required to do so by law or not.

Is your vehicle outfitted with airbags? This is another safety feature that may get you a discount on your insurance rates. Whether you are shopping for coverage for the first time or you have an existing relationship with an insurer, ask whether the company can give you a better price because you have working airbags in the car. Having automatic seat belts may also entitle you to a discount on the cost of your car insurance coverage, so be sure to mention this fact when you approach a company for a quote.

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Posted in Discount Car Insurance |

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