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Cheap Car Insurance For First Time Drivers

admin — Sun, 12 Dec 2010 12:23:55 +0000

If you are new to driving it would be better, unless you have lots of money, to begin with a car from a lower insurance group. If you can build up and maintain a no-claims profile with no penalty points, you should be able to move up the car insurance groups without significantly increasing your premium.

The idea is that cheap car insurance for young drivers should be competitive because you are cutting out the middleman, so the insurer can pass the savings on to you. However you will have to do the leg-work though, which can take a few hours, but it will be time well spent. You should call at least three insurance companies before deciding on a policy. And remember that you can often save between 10% and 20% by going online. Most insurance companies offer cheap car insurance for first time drivers online. So if you get a telephone quote then you need to check you are not missing out on a deal which you can only get online, even from the same insurance company.

There is no shortage of websites that will let you compare car insurance policies and prices between different car insurance companies. But to get the best possible deal, then you need to spend a few minutes making certain that you are answering all of the questions correctly before you jump online.

Don’t think, however, that you can get away with only looking at comparisons on one website. Each website only compares a small handful of insurance companies. If you really and truly want to make sure that you are getting the very best deal possible on your car insurance, then you really need to bite the bullet and take the extra time to make the same comparisons on at least 3 different websites.

Another way to secure cheap car insurance for first time drivers is to pay up front for the policy. Paying by monthly instalments may appear to be the cheaper option but many insurers will charge interest on the payments (up to 25% APR) and this could effectively clear any perceived savings you made on the policy.

Also consider adding breakdown cover to the policy if offered by the insurer as this could save you a lot of money in the long run and is usually quite cost effective considering the peace of mind it delivers. You can save

Reducing Your Car Insurance Rate – 5 Things That Will Help

admin — Sun, 08 Aug 2010 21:01:51 +0000

You will easily pay less for adequate coverage if you get and use the right recommendations. But also bear in mind that you could make savings if you get the wrong tips. The only difference is that you’d put yourself at risk. Here are some time-tested ways to pay far less without opting for inadequate coverage…

1. A simple but smart way of lowering your rate is by authorizing an EFT (Electronic Funds Transfer). This simply means your insurance provider takes your premiums automatically from your account each month without sending you payment notices. This saves the insurance company in many ways including eliminating the cost of mailing payment notices and the cost associated with processing checks. Your insurance carrier passes part of what they save to you by bringing down your premium.

2. You’ll help reduce your rates if you always ensure you park your car in a safe place. This means that you have to do all within your power to NOT park your car in a red light district. I hope you also know that you’ll pay less if you have a garage for your car. And, lest I forget, if you drive out in the night do your best to have your car parked in a well-lit area. That will deter thieves.

3. Make sure your auto insurance policy is never allowed to lapse for any reason. It will sentence you to expensive rates for a considerable length of time. This happens to some individuals while they are about changing over to another insurance company.

To avoid this, ensure the new policy is fully in force before you terminate the old. As simple as this may seem, a lot of people are bearing the burden of exorbitant rates because of just a little negligence.

4. Given similar circumstances, an insurer will give a female driver a cheaper rate than her male counterpart. Married couples can take advantage of this by having their cars insured in the lady’s name with the man as the secondary driver. Although this might not go down well with some men folks, it will help reduce what your family pays for auto insurance.

5. The most important key to considerable savings in auto insurance is comparison shopping — That’s if you do it right. You can get quotes that will have a difference in excess of $1,000. You could conveniently save that much by simply going with the lowest quote. This should apply if you’re simply after the lowest price.

Howbeit, if you’re looking for the best price/value then you’d have to check the details of the cheapest offers. Different insurance companies may have adjustments for similar policies. It’s a good idea to ask the agent what’s included and what’s excluded.

By: Chimezirim Chinecherem Odimba

Is GEICO Car Insurance Very Good? – Cheap Auto Rates

admin — Mon, 12 Jul 2010 20:09:28 +0000

Geico is one of the more familiar car insurance brands that we see today because they spends millions every year promoting there Car Auto Insurance as being one of the best you can buy. We want to look at there insurance and see if a cute mascot and a lot of advertising is always the best method to use when searching for affordable car insurance.

The Insurance company has been around for over 70 years and having a big name in the insurance business can be a real plus in giving people great rates.

It is important that when you are searching for Auto Insurance that you get many quotes to see what the best rate you can get is. Also you want to always make sure you compare the policies so that you know for what you are paying you get enough coverage.

You can find an insurance quote that is a great rate but does not give you enough coverage in case you get into an accident. It is very important to have enough coverage in case that you have a loss on your car so that you can get it fixed or replaced. It is also very important that you have enough coverage that in case someone is injured and it is your fault that your coverage will cover them. You do not want to get sued and be in a bad situation because you had too little coverage.

Remember that Geico is a good nationally known insurance company but when you are searching for Auto Insurance make sure that you get multiple quotes.

By: Bryan Burbank

I Was In An Accident, Will My Car Insurance Rates Go Up?

admin — Fri, 09 Jul 2010 14:49:50 +0000

You were on the phone, got distracted and before you knew it traffic had stopped, giving you no room to stop and you rear end the girl in front of you. Or, let’s say you’re driving along and a deer jumps out and rams into the side of your door.

Now, let’s say you need to file and claim and get your car fixed. But, are your rates going to go up?

In the first case, more than likely they will depending on how much your insurance company pays out to fix both cars and medical bills if anyone was injured.

But, in the second example, since this will be a comprehensive claim your rates should not see an increase at your renewal. Unless you have a long history of hitting deer then the people from PETA will be out to get you. Or if you file a lot of small glass damage claims then your rates could be affected or you may have to pay a higher deductible for comprehensive in which case small glass damage will be less than your deductible and you will pay out of pocket.

Part 2: How long does an accident stay on my record?

Ok, so back to the example where you rear ended someone. We have already established that you are going to see your insurance rates go up. Now, we need to find out how long and how much will they go up.

State insurance boards usually allow insurance companies to charge for a accident for 3 years from the day they started charging for it. Not from the time you got into the accident. You got in the accident in December and your policy runs from October to April. Your rates won’t be affected until April of the next year and the surcharge will drop off 3 years from that April.

How much will your rates go up? Are they trying to get back the money they paid out for my claim? You can usually expect a rate increase of between 20-40% on average per six months. They could go up even more if you lose some discounts you were getting, such as a claim free discount.

The increase is not a recoupment of the monies paid out by your insurance company. It is designed to charge you a premium based on the risk, or chance, that you will get into another accident in the next 3 years. You are a higher risk to the insurance company and they are able to charge you for the higher risk you present to them.

If it was based on how much the insurance company paid out then you wouldn’t be able to afford it if you totaled out your 2004 Nissan Maxima at $25,000 and you had to pay that back within the 3 year surcharge period. Makes sense? Good, now get off the cell phone!

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How Does Credit History Affect Car Insurance Rates?

admin — Thu, 27 May 2010 21:29:25 +0000

Many personal car insurance companies consider your credit information when determining how much premium to charge for your insurance. So if you are calling around for new car insurance, keep in mind that many insurers are looking at your credit history to determine your car insurance rates. I hope that we will be able to let you know why and how they do this.

The reason that some insurance companies use credit information is because they feel there is a direct correlation between consumer’s credit history behaviors and expected claims that may occur. Therefore, they feel that people with better credit behavior are less likely to severe insurance losses.

Many insurance companies still use your age, driving history, type of vehicle, where you live in determining how much you should pay for your insurance. Therefore, if you have not established a credit history yet, the companies that use credit history may not be best for you. They may not allow you to be eligible for certain discounts, which could result in higher premiums.

The companies that do use credit scoring will still use other factors in determining your premium. They will also use your age, driving history, type of vehicle, where you live in determining how much you should pay for your insurance.

Is it fair for an insurance company even look at my credit information without my permission? The answer is yes. The Federal Fair credit-reporting act says “Reasonable procedures. It is the purpose of this title to require that consumer reporting agencies adopt reasonable procedures for meeting the needs of commerce for consumer credit, personnel, insurance, and other information in a manner which is fair and equitable to the consumer, with regard to the confidentiality, accuracy, relevancy, and proper utilization of such information in accordance with the requirements of this title.” This can be found at http://www.ftc.gov/os/statutes/fcra.htm

If you feel that your credit history is better then the insurer can find, make sure the insurer has your correct name, address, social security number, and date of birth.

Some insurance companies will look directly at your actual credit reports when determining your rate, however most will use what is called an “insurance credit score.” An insurance credit score is developed by using statistical techniques and methods to predict the likelihood a consumer will have a higher than anticipated losses. These are similar to what lenders use to predict the reliability of an applicant repaying a loan.
Credit History Factors and Car Insurance Rates

Insurance companies use many factors in determining your credit score. Here are some examples of those factors:

. Public records: bankruptcy, collections, foreclosures, liens, charge-offs, etc.

. Past payment history: the number and frequency of late payments and the days between the due date and late payment date.

. Length of credit history: the amount of time you have been in the credit system.

. Inquiries for credit: the number of times you have recently applied for new credit, including mortgage loans, utility accounts, and credit card accounts.

. Number of open lines of credit: the number of credit cards, whether you use them or not.

. Type of credit in use: major credit cards, store credit cards, finance company loans, etc.

. Unused credit: how much you owe compared to how much credit is available to you.

Your insurance credit score may differ from company to company, as they will use different factors in determining your premium. Notice that we call it an insurance credit score. This means that it encompasses many factors including credit.

Since each insurance company uses different techniques to determine your credit score it is hard to tell you what a good credit score is. Usually a good credit score will result in lower premiums.

Your agent or company is not obligated to tell you your credit score. In fact, they might not even know what it is. All they usually know is that your credit score qualifies you for a specific rate or policy. Some companies also offer better rates under each qualifying tier.

If you feel that there is incorrect information on your credit report, you should tell the credit bureau. If you report and error, the credit bureau must investigate the error and get back to you within 30 days. You can ask the credit bureau to send a notice of the correction to any creditor or insurer that has checked your file in the past six months. Once the errors are corrected, it is a good idea to get a new copy of your credit report several months later to make sure the wrong information has not been reported again.

The three national credit bureaus are:

. Trans Union (www.transunion.com or 800-888-4213)

. Equifax (www.credit.equifax.com or 800-685-1111)

. Experian (www.experian.com or 888-397-3742)

Tell your insurance company. Do not wait until the credit bureau investigates the errors to contact your insurer. Tell your insurance company right away and ask if the errors will make a difference in your insurance. If the errors are big, tell your insurer that you are disputing the information and ask if they will wait to use your credit information until the errors are corrected. Small errors may not have much affect on your insurance credit score. If the errors are big, it can make a significant difference in your premium. Some companies are unable to adjust the premiums until the score is corrected, but it does not hurt to ask.

If you have taken the steps to improve your credit, score you should ask your insurance company to re-evaluate your credit score at renewal.

By: Matt McWilliams

Car Insurance Rates and Credit Score – How to Exploit This Connection? Use Online Quotes

admin — Fri, 14 May 2010 08:36:01 +0000

On the face of it, the idea of relying on your credit score to determine your insurance premium may seem unfair. Your discipline and commitment towards financial matters is not related to your insurance, right? Definitely. However, car insurance companies face a peculiar problem.

It is impossible to arrive at a factor ground that is applicable to all individuals who own a car. Each and every car is a different and unique. Increase in weight or variation in the quality of material used is enough to change the risk factor. In such a scenario, it becomes very difficult to find out a single factor applicable to all individuals.

That is the reason why car insurers make use of the credit score. Further, the score often is an indicator of how reliable and disciplined the person is. Although there are many States that prohibit the use of this factor, there’s no doubt that having a good credit score will help you find affordable car insurance.

What if you have a poor credit score? Do you have no option but to opt for expensive insurance for your automobile? Definitely not. There are many tips and hints that you can use to bring down your insurance rates.

For starters, promise additional business to your insurance company. If you’re prepared to insure not just your vehicle but the vehicle of your spouse with the same insurance company, you can easily claim a discount for providing double business.

If you do not own another car or your spouse too has poor credit, then you should consider opting for multi line insurance policies. Why don’t you switch all your insurance policies to single insurer? On the face of it, this may seem like a risky move because some companies are more reputed as compared to others. However, the bulk business that you offer will definitely help you get affordable prices without reducing coverage.

All these strategies and methods will work well only if you opt for the cheapest insurance policy. How to identify that policy? This is where multiple insurance quotes come to your rescue. You just have to log on to web and obtain the estimates.

Once you have identified the insurance company that offers the best deals for your requirements, you just have to proceed and finalize the deal. Of course, there is nothing stopping you from obtaining additional discounts from the car insurers.

By: Satyendra Mishra

Cheap Car Insurance in Detroit, Michigan

admin — Fri, 30 Apr 2010 12:05:21 +0000

In the state of Michigan there are two different types of car insurance policies, group and individual. Group insurance typically applies to an organization or an employer who works with an insurance company to secure low rates for drivers. Most drivers in Detroit, Michigan fall into the individual insurance arena. For them they are always on the hunt for cheap car insurance.

The best approach to finding cheap car insurance in Detroit, Michigan is to take advantage of the discounts that are available to drivers in the state. Although you may only qualify for one or two of the discounts, each offers a lower premium on your auto insurance policy. Unfortunately many vehicle owners are unaware of any of the discounts and consequently they end up having to pay much higher fees than they might otherwise.

Some of the little known discounts in the Detroit, Michigan area are:

o Non-drinking discount. If a driver doesn’t drink alcohol they may actually qualify for cheaper car insurance. Not all companies offer this, but if you don’t partake of spirits, it’s well worth asking about.

o A good credit history. Car insurance companies look favorably on individuals who have a solid credit history. Not only will this help to lower car insurance premium rates but having a good credit history makes buying a car that much easier too.

o Good student discount. Many young drivers face very high car insurance rates. Some companies in Detroit, Michigan offer a discount for those drivers who have proof of good grades. This is very helpful for a college student who is already burdened with student loans.

Taking advantage of any and all available discounts is the most efficient way to find cheap car insurance. When a driver goes into the insurance negotiation process informed, they are already well on their way to securing a great rate.

By: Deborah Mills

Cheap Car Insurance in Dallas, Texas

admin — Mon, 26 Apr 2010 06:59:19 +0000

The Dallas Cowboys football club is world-renowned for being skilled and tough. Something just as tough that is found in this city is the traffic. Trying to work your way through the congested streets of Dallas can be a challenge for even the most skilled driver. Once you know that in 2004 alone there were almost 150 accidents resulting in death in this southern city, cheap car insurance in Dallas, Texas obviously becomes a must-have.

Finding cheap car insurance may seem akin to locating a needle in a haystack. It seems that auto insurance prices increase by leaps and bounds each and every year. If you are tired of paying high premiums, there are things you can do to help you realize a better rate on your car insurance.

Cars are stolen each and every day in Dallas. If you leave your car unlocked you are practically inviting a thief to jump in and drive away. Instead of just ensuring everything is locked each time you leave the vehicle, invest in a good car alarm. This is not only a great deterrent for would be car thieves, but it also can mean cheaper car insurance. Many companies offer a percentage discount to their clients who take this safety step.

If you only drive your car a short distance each day or week, mention this to the insurance company. Many insurance companies offer a discount for low mileage. Obviously if you aren’t out and about on the road as often as other drivers, you aren’t going to risk the same chance of getting in an accident. Every insurance company has different provisions when it comes to this particular discount, but if it applies to you mention it to your agent to see if you can enjoy cheaper car insurance in Dallas, Texas.

By: Deborah Mills

Why One Company Does Not Always Have the Best Rates for Home and Car Insurance Both

admin — Sun, 25 Apr 2010 08:36:33 +0000

Everyone wants to get the best rates for home and car insurance. You might think that the way to do that is to go to one company for both. While that is often a good idea, there may be reasons why it might not be.

Dual insurance companies may not give good rates on both kinds of policies.

Some insurance companies specialize in home insurance. The car insurance side of the company may be an afterthought. In this case, it may not be as stable a part of the company. It may have to charge higher premiums to establish itself. The same is companies that specialize in car insurance that also sell home insurance. Dual purpose companies may entice you with good rates on one type of insurance. If you get a good rate for your home insurance, the theory is that you will be more likely to buy your car insurance with the same company. Never do this unthinkingly. Always get different quotes and comparison shop. Be sure equal amounts of coverage are being compared in both cases. You might be careful to compare equal coverage when buying car insurance. You may not bring the same judgment to the table when comparing the same company’s home insurance.

You may be more qualified for one kind of policy over the other.
If you live in a small town, rates may be different. For example, being in a town with an inexperienced and ill-equipped rural fire department may raise your home insurance rates. At the same time, your car insurance rates may go down because you live in a sparsely populated area. Different insurance companies may look at each of these factors differently. If you have a poor driving record, you might need a different company for that. You could have the best qualifications for home insurance. You may have a modern home in the safest of neighborhoods. If you have had many speeding tickets or accidents, you may have to go to a different insurance company to get the best car insurance rates. If you are under 25 years of age, your rates will be high. No matter where you get it, you are likely to find that your home insurance rates are lower. If this is you, you need to shop around carefully to find the best rates for home and car insurance both. You may find that they will come from the same company, but check to be sure.

You can find the best rates for home and car insurance. You do not have to go along with an insurance company’s rates for your car insurance and home insurance. Sometimes it can be the best thing in the world, but other times it is not. Getting several quotes on both is the right idea. When you have the information you can make two intelligent decisions – car and home insurance.

By: Charlie Lee

How to Quickly Find the Company With the Most Affordable Car Insurance Rates

admin — Thu, 22 Apr 2010 09:28:06 +0000

Less than ten years ago, the cost of gas was under a dollar per gallon, depending on where you lived. Unfortunately, those days are gone and will likely never return. Luckily, the cost of driving an automobile has not increased all that much because the cost of auto insurance has been dramatically reduced. Chances are, however, that you haven’t seen those savings because you’re still using the same auto insurance you have been using for the past few years. So how do you go about ensuring you aren’t paying too much for your insurance?

There are a few ways to make your insurance premium lower. The first thing you can do is to evaluate whether or not you are buying too much insurance. Less than five percent of all policies per year ever pay out more than the deductible, so by keeping your deductible high you are making your monthly premiums higher than they should be. Additionally, if your car is almost completely paid off, you may want to look into eliminating collision and comprehensive altogether and instead just go with liability. Chances are that you’ve already paid for the entire car with your monthly premiums, so it makes sense to put that money into a savings account so if you get in an accident, you can pay for a new car with cash instead of with insurance money.

Be sure, however, to meet the insurance minimums for your state. Most states require liability insurance so if you get in an accident and it is deemed to be your fault, you can pay for the other person’s damages, which include medical and any pain and suffering they may sue you for. On top of that, the insurance company will pay for some top-notch lawyers to defend you and your hard-earned money if the unthinkable happens.

Of course, you should know that not all companies offer the same rates. Anywhere you look, every company is claiming that you can save a lot of money if you switch to their company. There are a lot of factors that are taken into consideration when determining your rate, so you want to check with as many companies as possible to see if you can get a better deal somewhere else. Most companies offer a longevity discount in which you are rewarded for being a good driver and staying with them for a long period of time, however, they also increase your rates over time. So the longevity discount may be countered by the fact that they’ve been increasing your rates for years. So the only way to know for sure whether or not your rate is the lowest it can be is to actually get quotes from multiple companies.

By: William R. Harrison