Published: Thursday, March 18th, 2010
Car owners above the age of 55 are usually charged higher auto insurance premiums compared to people between 21 – 55 years old. The main reason senior citizens and older adults are charged a higher premium is because insurance companies feel that as a person ages his driving skills decline. This article will elaborate on some money saving tips for senior citizens opting for auto insurance.
Stay Fit and Use the Right Medications
Senior citizens who are drive cars should try their level best to stay healthy by modifying their diet and exercising. If you have a vision problem then you should use your glasses at all times and you should take steps to prevent that your vision problem worsens. You should also go to the doctor periodically for a complete check and you should ask the doctor to give you medications that do not interfere with your driving ability. If you feel dizzy or out of breath after taking a medicine while you are on the road then you should pull over to the side and you should contact your doctor immediately. Auto insurance companies are more likely to offer healthy older adults a reasonable premium.
Opt for Driving Classes
If you are above the age of 50 then you should opt for defensive driving classes since people above the age of 50 are usually given a discount by auto insurance companies if they opt for these classes. While opting for defensive driving classes you should make sure that the training center you are opting for is DMV approved so that you get your discount after you complete the classes. The fee for these classes is usually reasonable and some driving schools give senior citizens a special discount.
Opt for Other Discounts
All drivers are offered a discount if they drive safely. Senior citizens usually benefit most from this discount since by driving safely senior citizens can not only get a discount but they can also get a lower premium. In order to drive safely you should ensure that you driver sober, you do not use the cell phone while you drive and you should drive with your glasses on. Senior citizens can also make use of the low mileage discount. In order to be eligible for this discount you will need to drive at 35 miles per hour or lesser for a specific period of time.
File Claims Carefully
While filing an auto insurance claim you should keep in mind that any claim you file goes on your record. If you file small claims frequently then chances are that you will have to pay more when you renew your premium. You should also keep in mind that when you file a claim for an accident that occurred due to your mistake then you premium will definitely increase. If you have a minor accident can pay for the damage yourself then you should try not to file a claim.
Compare Quotes
If you are changing your auto insurance provider then you should compare offers given by at least 3 providers before you commit to any one company. You should also consider opting for free quotes from multiple insurance companies before you decide which policy to opt for. You should take your time to read the agreement and understand the policy before you sign it so that you get the best offer for the lowers price.
Published: Wednesday, March 17th, 2010
It is that time of your boy’s life that you have been dreading for the past seventeen years. Yes, it is here. And there is no looking away from it. Your boy is seventeen and wants a car. In fact, he might have saved enough to black mail you into getting a car for him failing which he claims he will get that broken down jalopy for a thousand dollars. And he knows that you will not want him doing even 40 on the freeway in that bath tub!
The first step that you must take in such a predictable volatile situation is to buy the car. But before doing so, you must use all your negotiating skills to coax him into going with the safer sedan that you have been researching. Do not under any circumstance settle for the sports coupe that he wants! You will firstly end up paying a lot more for it, and secondly you will pay a bomb for its maintenance and not to mention insurance policy. Cheaper cars cost a lot lesser to insure. The auto insurance rates also largely depend on the safety features that the car employs.
The second step is to enroll your teenager in a defensive driving class. This will help him learn the nuances of driving. It will also help convince the insurance company that both you and your kid are serious about safe driving. This course is for advanced drivers and will help the kid predict different scenarios on the road. It will also be a good idea to register yourself to the course and make it a bonding experience with the boy.
Next, include your teenager under your policy. This will reduce your costs by a huge percentage. If a teenage boy goes for a policy on his own, he will have to pay at least a 100% more than you do. And if it is a teenage girl, she would need to pay at the least 50% more than a middle aged woman.
Try to incent your teen when he gets good grades. Any grade over a B will ensure that you are held in favorable opinion by the auto insurance company. This is because the insurance company feels that a person who is serious about his grades will also be serious about driving. A focused person who performs well in class is serious about being successful in life and this is all that the insurance company wants to know. They need to be sure that your teen will not take any unwarranted risks behind the wheel.
And just before you go out to get your policy, the last thing you need to do is shop around for your policy. Researching about the different auto insurance policies out there will give you an idea of the sort of budget that you must maintain. It will also help you in negotiating a good deal with the insurance company. You can get free insurance quotes from various websites online by just entering your personal details. You can conduct a small comparative study and then decide which insurance company you want to go with. But it will not be necessary to take a different insurance company due to just a few hundred dollars; this is because your insurance company will provide your teenagers with better benefits as he will be treated as a favored customer.
Published: Tuesday, March 16th, 2010
Due to the recession many people are cutting down on services like auto insurance to save money. Since vehicle insurance is important it is always advised to buy a policy that covers you adequately. There are many things you can do as a consumer to save money while buying insurance and this article will elaborate on five ways to lower your auto insurance premium.
Drive Less and Maintain a Low Mileage
Once of the factors that auto insurance companies consider before giving you a quote is the number of miles you drive each year. People who drive a lot are often offered high premiums since the chances of them getting into an accident are more. Also cars that are driven a lot are most likely to break down in the middle of the road. One of the other factors taken into consideration is the mileage you drive at. If you drive at a high speed then you are more likely to pay more as premium to insurance companies since driving fast can cause accidents. By keeping your mileage at or below 35 miles per hour for one year you will be eligible for a cheaper insurance along with low mileage discounts.
Drive an Affordable Car
Expensive cars like sports cars, luxury cars or two door cars usually cost car owners a lot more than the person bargained for since auto insurance companies charge high premiums for these cars. Insurance companies charge a high premium for these expensive cars since repairing them is costly and finding genuine spare parts is not easy. While buying a car you should look for a vehicle that is cheap to repair so that insurance companies offer you a low premium. You should also look for a car that is safe to drive and one that has basic security features. After getting your safe car you should consider getting a good theft alarm, automatic seatbelts and automatic air bags since insurance companies usually give better discounts to car owners whose insured vehicle has additional security features.
Remove High Risk Drivers from Your Policy
Auto insurance companies always advise policy holders to add family members to their policy but this is not a good idea especially if you are adding a high risk driver to your policy. Since a high risk driver is more likely to get into an accident or commit a major violation insurance companies charge these drivers a very high premium. If you have unknowingly added a high risk driver on to your policy then you should consider removing him from the list and getting him his own high risk insurance policy. If you have added your teenage child on to your policy then you should consider removing him from your policy and instead making him the primary driver of a cheaper car. This simple step can help you save up to 20% on vehicle insurance every year.
Opt for a Single Insurance Company
If other members in your house drive cars then you should consider opting for separate policies from the same insurance company. Most insurance companies offer discounts and group offers to people who insure all their family members with a single carrier. For additional discounts you should consider insuring your house from your car insurer provided he provides both services.
Published: Monday, March 15th, 2010
Most people who have gotten into accidents after opting for the minimum limit in states like California will tell you that the state auto insurance liability limit is not enough. The state puts minimum liability limits to make sure that everyone has protection but these state limits are usually not enough for most people. This article will elaborate on 4 reasons state auto insurance liability limits are not adequate and information will also be provided on the right limit.
Insufficient Auto Insurance Liability Limits
In states like California when an accident happens the state holds the driver responsible to pay for all the damages that have occurred due to the accident. The driver will not only be liable to pay for the damaged car but he will also be liable to pay for damaged property or death of a person if applicable. By opting for the minimum limit the insurance company will be able to pay for only some of the damages that have occurred but you will be liable to pay for the remaining damages out of your own pocket.
Medical Expenses
Majority of the auto insurance companies offer additional policies for individual car owners that protects them when an accident occurs. These policies are not mandatory but they are very beneficial. These policies cost $20 – $50 for a $100,000 limit but they ensure that when you are injured you do not have to pay from your pocket. People who do not have a health insurance or people who have a health insurance with a low limit should definitely opt for one of these optional covers.
Comprehensive Coverage
Comprehensive coverage is not mandatory in some states in USA but this cover is helpful nonetheless. This optional coverage protects your interests when your car has been a victim of vandalism or if your car has been totaled during a natural calamity. This cover not only pays for any repairs but it also pays for replacement of your damaged car.
Uninsured Motorist Cover
Uninsured motorist cover also known as underinsured motorist cover is an optional cover that has protected many people. This helpful cover pays for any damages that occur when you are hit by an uninsured or underinsured motorist. Since there are many motorists in USA that do not have adequate cover if any this policy can prevent you from paying a lot of money on medical bills. This cover is applicable when you are in your own vehicle or if you are walking on the road. This cover also pays for damage to your car and lost wages due to the accident.
Ideal Auto Insurance Limits
The ideal auto insurance limit for bodily injury liability is at least $75,000 but most people set the limit at $100,000. The ideal limit for property damage liability is $100,000 per accident. Since accidents occur without a warning it is always advisable to opt for higher limits even if you are a safe driver. If you drive with passengers in your car then you should definitely opt for a higher limit for bodily injury liability since this cover will ensure that the people injured in your car are compensated. Both the bodily injury liability and the property damage liability pay for an legal expenses in case the other person decides to sue you.
Published: Sunday, March 14th, 2010
Auto insurance rates have been rising steadily over the last few months. This is partially due to the renewed consumption of commodities by the people. The recession is slowly giving way to a change in people’s perspectives and as a result there is an increase in consumption. With increased consumption, consequently there will be an increase in costs. This is the law of demand and supply.
The first thing to do when you are looking for auto insurance is to search online. There are a number of websites that offer free insurance quotes for the customer. You need to go online and fill in your personal details. After doing this you can get your quotes. It is important to get at least ten different independent quotes before making a decision. There are both first party insurance company websites and third party websites which give a number of quotes from different sources. Get onto a trusted website and look for the best deals.
Once you have decided what the base line expenditure is going to be, the next step is to start budgeting for it. You can decide what your minimum expenditure is going to be, by checking your state’s minimum coverage requirements. Anything over and above this minimum limit should be decided based on what you can afford. You have to know what sort of money you can keep aside every year for your insurance premium amount.
When you sit with your insurance agent to negotiate the terms and conditions, the first step is to convey your needs to them. You will need to steer the conversation to your benefit. A lot of times the insurance agents will try and make you buy certain coverage which will not be necessary to your needs. You will need to tailor make the policy to your benefit. For example, if you are a work from home mother and you are just going to be driving to the local grocery store, you need not have comprehensive collision coverage. This is necessary only for people who are going to be driving extensively on the freeways or highways. You can do away with such unnecessary expenditure. All you would need in this case would be basic personal property coverage. Or in other words, a third party policy.
Another factor that you need to keep in mind while negotiating the terms is that you need to convey to the insurance company that you are a safe and reliable driver. All they want to know is that you will not be a burden on their company. The lesser the number of claims you make, the better it is for the insurance company. So how do you do this?
The best way to prove that you are a safe and responsible driver is to show that you have a good driving history. A driving history is maintained by all departments of motor vehicles in all states. It shows all the major and minor traffic infractions that you have committed ever since you started driving. The lesser the number of tickets, the better are your chances of getting a cheap auto insurance policy. You can also show that you are not going to be driving extensively. The example that we have already discussed in this article has a good chance of getting a good rate on her auto insurance if she puts forth such an argument.
