Insurance and the Deadly Sins

7 SINS OF THE CAR INSURANCE BUYER

So you’re shopping around for that hated, dreaded, evil auto insurance. What do you really need to know? Well, there are lots of ways – at least 7 (And I could bore you with many more!) that you can use to really and truly save premium- some times LOTS of it!
Do any of these apply to you?

1. Do You Insure Your Home With A Different Company
Do you have a homeowners or renters insurance policy? If so, is it with the same insurance company that provides your auto insurance? If the answer is no, you’re probably paying way too much – for both policies. Almost every insurance company that sells auto insurance wants its policyholders to also buy homeowner\’s insurance from them as well.

These insurers typically offer multi-policy discounts. Usually, these discounts are at least 10% and some insurers apply the discounts to both the auto insurance and the homeowner\’s insurance insurance policy.

Tip. Talk to your agent about multi-policy discounts for your homeowner\’s insurance and auto insurance coverage.

2. Have Family Driving Records Improved?
Everyone knows (So it’s not really a secret) that the better your driving record, the less you will pay for auto insurance. But did you know that most people qualify as “good drivers” and are eligible for discounted premiums? However some good drivers pay a lot more than others.

Many auto insurance companies are actually a collection of several niche insurance carriers in which each caters to a certain type of driver and their respective auto insurance. The worst drivers go in one company, the best in another, but most drivers end up in one of the middle companies.

These middle people pay less than the worst drivers, but more than the best. The thing is, many of these middle people have driving records that are just as good as those who are insured by the companies that offer the lowest rates. Yet these middle people are paying more for their auto insurance. Why?

The usual reason is that they don’t know any better and their agent never bothered to tell them. That’s right, NO ONE told them which insurance company in the group had the best prices. (Makes you wonder what that agent does with the 15-20% cut they get on your coverage!)Not to mention no one told them there was even a group of insurance companies. If you and/or your family members have good driving records, there’s no reason you shouldn’t be paying the lowest price a group of insurance companies has to offer.

Tip. Knowledge is power! Make sure you’re getting the best discount for your auto insurance based on the current driving records. Talk to your agent. And remember, be a safe driver. It will save you premium.

3. High Profile Can Mean HIGH Cost
Yes, High-Profile usually means High-Cost – The type of vehicle you drive is a major factor in what you pay for insurance. (Although contrary to popular belief the color of your car is not important) Is your vehicle a magnet for thieves? Is it more expensive to repair than most cars? (The hood on some older models of Dodge Viper goes for upwards of $7,000) If the answer to either of the last two questions is yes, you’re paying more than the average car owner for insurance.

Note: To get detailed information on your vehicle(s) – or a vehicle you’re thinking of buying, visit the Insurance Institute for Highway Safety web site.

4. Is Your Deductible Too Low? Your auto insurance deductible is the amount you pay before insurance kicks in if you have a claim. For example, if you have a $250 deductible and you have an accident in which your vehicle sustains $1,000 in damage, you pay the first $250 and your insurer pays the balance, $750. The lower the deductible you choose, the more premium you pay. If you earn a lot of money or have significant assets, you can probably afford to absorb at least $250 and probably $500 if you have a claim.

Tip. If it’s been years since you’ve had an accident, you may be better off raising your auto insurance deductible and paying less each year for insurance. HOWEVER, be sure you run the numbers…. By that I mean make sure the savings is enough to justify the larger deductible. Is it really worth it to raise your deductible from $100 to $1,000 and save $100? That means you save $100- BUT if you have a claim, you just spent an extra $900 for the deductible. Be careful- only you can decide how the trade off fits your financial situation.

5. Do You Have Coverage You Don’t Need? – Let’s say you have an older car, one not worth very much. There may be little point in having collision and comprehensive coverages. You don’t have much to protect. Remember, too, that you have to subtract your deductible from any potential payout you might receive.

Tip. Many insurance professionals believe that any car worth less than $1,000-$2,000 shouldn’t have collision and comprehensive coverage. Only you can ultimately make that decision. Between the deductible and the extra expense of these coverages, the cost is probably greater than the benefit. How much is your car worth? An auto dealer can tell you, or there are plenty of books and web sites that have values of vehicles going back many, many years.

6. Are You Getting The Discounts You Deserve
Auto insurance companies offer several discounts for a variety of reasons. The vehicle has automatic seat belts, air bags, anti-lock brakes, anti-theft devices, etc. The driver is a good student, which is especially valuable if you have teenage children who will be on your policy.
Tip. Make sure you are taking advantage of all the discounts available to you!

7. Credit Where Credit Is (Or Is Not)Due
Is your credit record better than your driving record? If you have a good credit record, you could be eligible for discounted premiums from several auto insurance companies.

Fact: Many insurers now use your credit history (92% and climbing according to some recent industry sources) as a major factor in determining what to charge you for auto insurance. In some cases, with some companies, you could save premium by shifting your business to an insurer that uses credit as a rating factor – even if you have a so-so or poor driving record. There is another side to this coin. This one is getting harder and harder: If you have a poor credit history, you could save premium by moving your auto insurance to a company that does not use credit as a rating factor. Most insurers do not look at your credit report at your renewal if your credit has improved since you purchased the policy you could be eligible for the cheaper rate.

Tip. Regardless of your credit status, you should talk to your agent to make sure you have the best situation given your credit record, good or bad.

Whatever your driving record or coverage needs, you should shop around, or let an experienced insurance professional shop around, for the best deal for you. There are literally thousands and thousands of coverage options from hundreds and hundreds of insurance companies.

Remember, not only should you try to get the best deal(Premium) you can, make sure you have all the coverage you want/need. (I tell my clients to buy as much as they can “stomach”) Using an Independent Insurance Agent is usually your best bet to get the most value for your auto insurance dollar. auto insurance

At www.OhioCar-Insurance.com, we take a personal interest in our customers. You get an actual agent with every policy. We like to share information to help you protect yourself and your family from financial loss. If you have any questions, regarding this information or your insurance coverage, please don’t hesitate to contact us at quotes@kentuckycontractor-insurance.com

Filed under: Insurance

Like this post? Subscribe to my RSS feed and get loads more!