When should I reduce my insurance from full coverage?

The purchase of a new car is the single most expensive thing that people buy other than a home. The purchase of a new car can reach well over $25,000, with the average vehicle purchase closer to $30,000.

Due to the nature of vehicles in general, they are going to depreciate rapidly and because of the price of cars, many people will be financing their vehicles.

Financed vehicles require specific insurance coverages designed to shield the lender from loss. For more information on the particulars on insuring a financed vehicle, see this article on financing. [Insert Lender Insurance article here]

A minimum amount of insurance on your vehicle is required by most states in order to register it in the state. This minimum is limited to liability coverage for person and property. While it is intended to protect people that you might hit with your car or passengers in your vehicle during an accident, it is not sufficient insurance to carry for a $30,000 vehicle.

If you are involved in an accident and carrying full coverage insurance, which includes comprehensive and collision, you will be better able to replace or repair a $30,000 vehicle.

Carrying full coverage insurance is not cheap, but it is less expensive than being underinsured and required to pay cash for damage or injury. If your coverages are less than $100,000, it might be best to call your agent and get some auto insurance comparison quotes to see if you can afford to raise your limits.

Within a five-year period, your $30,000 vehicle will be worth roughly 50 percent of the original purchase price. The average car loan is close to five-years and between the depreciation and the interest you have paid over the five years, you have a lot of money invested in your vehicle.

As your car depreciates further and your loan is paid off, you may look to save money on your car insurance and may decide that paying comprehensive and collision on your car is no longer financially sound.

When you reach the point that your vehicle is worth less than what the insurance company would give you if it were totaled in a crash, you can stop paying collision and comprehensive insurance on the vehicle.

You have no loan on it any longer and by calling your insurance company, or comparing auto insurance quotes, you can find out how much you would receive as actual cash value for your vehicle.

If your car is only worth $3,000, then put the money in the bank yourself rather than pay the premiums on comprehensive and collision insurance.

If you feel you need to carry some sort of full coverage insurance on your vehicle, then raise your deductible and get comparison auto insurance quotes. You can put the deductible amount in your bank account and earn interest. If you are a safe driver, you may never need to use that money as a deductible; instead, you can use it as a down payment on your next new car.

10 Ways to get cheap auto insurance quotes

Every dollar today is stretched a little bit further. The relief that is felt at the pump with even the slightest reduction in the price of a gallon of gas has been offset by the rise in the price of groceries and paper goods. Every time one dollar is saved, two more dollars are needed somewhere else.

That is why it is as important as ever to keep the cost of your car insurance premium down to a manageable level. There are several ways that you can accomplish this and here is a list of ten different suggestions on how to save money on your car insurance premium.

1 – You can raise your deductible to a higher amount. If your current premium is based on a $250 deductible, then raise it to $500 or even $1,000. You will need to make sure that whatever dollar amount you decide upon as a deductible is a realistic number that you can come up with in case of an accident.

2 – You can add any safety devices that your vehicle may be lacking. If you have a car without anti-lock brakes, talk to your dealership about adding them. Ask your insurance company what the savings would be if you installed these brakes and compare their rates with other companies when you do your auto insurance comparisons.

3 – You can save money with multiple cars on your policy. Your insurance company can combine your cars and lower your car insurance premium. If you have an older car, use that as your primary car because additional miles on it will not make that much difference on your car insurance premium.

4 – You can save money by adding your car insurance to your homeowner’s insurance company. Ask your agent to give you comparison quote for having both policies together.

5 – You can save money if you belong to a club or are a professional, like a teacher. Insurance companies give discounts to some groups.

6 – You will receive a discount when you turn 25. Even though middle-aged drivers enjoy the best rates available on their insurance, drivers who just turned 25 will see a discount as well.

7 – You can lower your car insurance by reducing coverages. If you are driving an older car only worth a couple thousand dollars, you might do well to drop your comprehensive and collision insurance. Those coverages will cost more than you can recoup in an accident.

8 – Students with good grades in both high school and college may receive discounted rates on their car insurance. You may need to provide your grade slip to your agent or insurance company to qualify.

9 –You can add an anti-theft device to your car and lower your car insurance. Since theft and garaging location play a big part in the determination of comprehensive rates, if you install an alarm or a system that will track your vehicle should it become stolen, you can lower your premiums.

10 – You can take a defensive driving course. If you have been out of school for a long time, a defensive driving course may be something you could benefit from. Not only will your skills be sharpened, but you can lower your car insurance rates as well.

There are many other ways to save money on car insurance, but these are the easiest and quickest things to help you to lower your car insurance. Be sure and tell your agent if any of these things apply to you.

How to buy auto insurance online

Auto insurance can be purchased almost anywhere at almost any time, day or night.  Buying auto insurance online is not only easy it’s fast, and you can do it in the comfort of your own home.

There was a time that if you desired to purchase car insurance policies, or were wanting to compare auto insurance quotes, you needed to wait for your local agent to open their offices and go in and visit with them. Today, if you are ready to get your auto insurance quotes, you do not need to leave your home.

You can simply log onto our insurance website, get your auto insurance quote online, and then wait for the information. Some sites will send you a number of quotes and act as a broker, while other sites are company specific and will follow up with a phone call or mail.

You can still take your paperwork and compare auto insurance quotes in person, but many people find it just as easy to call the agent or broker and give them the information they have already received via email.

It is very convenient to purchase auto insurance.

The following are tips to remember when purchasing auto insurance.

- Coverage

Know in advance, what coverage you are looking for and how many drivers you will want to be insuring.

If you have a child off to college, you may find that you can remove them from your policy while they are in school. You will need to talk to your agent to find out the benefits of this.

Check with your state to find out the minimum insurance requirements needed to register your vehicle. Your state’s website should have that information for you available online. Your local government website may also include this information.

You need to decide what types, amounts and limits you wish to place on your vehicles.

For further information, see the articles on the different types of auto insurance, as well as the article on choosing a car insurance company. [ insert: What are the different types of insurance article, is full coverage car insurance necessary article and the article is there anything I need to know to choose an auto insurance company here]

- Quotes

Auto insurance comparison is the key to getting a cheaper car insurance premium and you can compare auto insurance quotes as often as you like.

You will want to get as many quotes as you can from both online and in person at local agents and independent brokers.

- Company record 

When you have found an insurance quote that will best suit your needs and budget, then the next thing you want to do is to research the company and look for reviews by policyholders or those who have dealt with the company in the past.

Every insurance company has a financial rating and you can find that out by using the internet. You can contact your state insurance commissioner’s office for a more detailed rating.

The National Association of Insurance Commissioners’ website will be able to give you additional information on the insurance company. The consumer information source section offers downloads of insurance companies’ financial data. You can obtain five downloads free. This gives you access to the company’s annual and financial reports.

- Review

Review your current car insurance policy to make sure that you are getting the same coverages that you are comparing. By comparing coverage side by side, you will ensure that the quotes will be equal in value to you.

If you are changing car insurance companies, you will want to cancel your old policy once you have received your new policy.

Your car insurance purchase is not complete until you have signed your new policy, paid the down payment and premium, and receive a copy of your binder.

Auto insurance comparison is easy and you should do it often to make sure you are getting the cheapest car insurance premium that you can.

Why You Should Compare Auto Insurance Prices

Maybe you have had the same car insurance policy for several years and you simply write your check each time your premium is due and do not give it another thought.

Maybe you are paying too much for your car insurance and do not even realize it.

Time passes and your car insurance premiums might be creeping up in cost without you noticing. It is always a good idea to make sure that you are not paying too much for your car insurance and that you get the cheapest car insurance rates that you can.

The only way to do this is to do a little auto insurance comparison shopping, and it is very easy to do.

In order to get the best and cheapest car insurance available to you is to compare auto insurance quotes, your current car insurance agent is not going to call you up and tell you that your car insurance rates have gone down.

Your auto insurance agent is probably not looking at your premiums the way that you should be looking at your premiums. Your agent is there for you when you have a problem or need something added or subtracted from your policy, but you are the one that is responsible for making sure that you are not paying too much money on your premium.

Little things that happen in life can make all the difference in the world to your car insurance rates and as you go through life, you need to know when to compare auto insurance quotes.

If you have moved from one end of town to the other, it is time to do some auto insurance comparing.

If you have purchased a new car, do not just let the dealership let your car insurance company know about it, you call the car insurance company and you tell them about it.

When you do call, you ask them for a new car insurance quote. After you have gotten a new quote, you call other insurance companies and give them your information. You should take the time to compare auto insurance quotes to make sure that you are getting the best rate available to you.

You may not realize it, but there are many different types of discounts available to drivers and you may not be receiving the discounts that will help to give you a cheaper insurance premium.

You may not be aware that if you pay your bill online and go paperless, you can save a little on your car insurance premium. Just by allowing the insurance company to send you an email alert to let you know that your car insurance premium is due, saves them the cost of printing a bill, buying an envelope with their logo on it and the postage to send it to you.

Many insurance companies will pass this savings on and will let you have a cheaper premium because of it. When you are comparing rates, ask if the company will give you a discount for going paperless.

If you have recently joined the many people who have fled the big banks in protest of their fees and joined a credit union, you may be able to get a group discount on your car insurance premium.

Some insurance companies will let groups pay a lower premium due to the volume of members.

You will need to check with the insurance company about discounts that are available to you when you do your auto insurance comparison.

Since every dollar is important to you, it should be equally important to do auto insurance comparison shopping to make all of your dollars work for you.

Comparing insurance quotes is fast and easy to do. You can compare online or by picking up the phone and calling local insurance agents. Either way, the less you pay in car insurance rates, the more money you have to save.

How do I Compare Auto Insurance Prices?

Your auto insurance rates are based on several factors and each factor makes up a different percentage of the amount that you pay for your car insurance. This is why you need to have certain information available to you when you start to shop and compare auto insurance quotes.

In order for the insurance company to give you accurate insurance quotes, they need to make sure that all the information that you provide them is equally accurate.

Some factors that affect your auto insurance rates are the type of car you drive, the mileage that you drive each day, the place that you garage your vehicle and even, your social security number.

When you decide to compare auto insurance quotes, here are some of the things that you need to have ready in order to get your quote.

- Your vehicle make, model and year with current mileage and vehicle identification number (VIN).

Because your car insurance rates are based on what type of car you drive, you will need to provide the person giving you the comparison insurance quote all of this information.

The mileage will be a starting point for your policy, which will give you a good idea of how many miles you do actually drive a year. By recording the mileage, you may be able to go back and get a cheaper insurance rate at the end of the year.

The VIN reflects engine horsepower, transmission and other information that can affect your rate.
Older vehicles may not need as much coverage as newer vehicles, so it is important to know the year of your car when you are requesting your insurance quotes.

- Your date of birth and social security number.

It is important to your rates that you give your actual age, as older drivers tend to pay less for their car insurance than younger drivers do. The insurance rates go back up when a driver reaches their 60s and 70s, but are at prime rates for those drivers in their 40s and 50s.

Let the insurance company know what your social security number is so they can do a credit check on you. Your rates are also based on credit score, with better credit getting better rates. This does not mean that if you happen to have bad credit you will not be able to get insurance. Even with less than perfect credit, you may still be able to get a cheap car insurance rate; you just may not be able to get the best rate available.

- Your driver’s license number and driving record.

Even if you do not have access to your driving record, you should know what it contains. If you have tickets, the tickets will show up when the insurance company runs a check of your driver’s license.

Some tickets are more detrimental to your rates than other tickets. If you have speeding tickets, you are going to pay more for your car insurance premium, than if you have one parking ticket. Moving violations are counted against you, while civil citations, such as cell phone use in a zone that prohibits it, are not counted against your driver’s license.

Be upfront when comparing rates and you are going to get a more accurate auto insurance comparison rate.

- Your daily commute mileage.

If you drive 10 miles to work each day, you will pay less than if you drive 40 miles to work each day. The less time that you are on the road driving, the less of a risk you are to the insurance company.

- Your current insurance information.

By having your current insurance information handy, you will be able to compare rates. Your policy will have all of your coverages listed on it, along with the amounts of coverage and the premium breakdown of cost for these coverages. This makes comparing insurance quotes easy to do.

Auto insurance comparison is something that you should do regularly to ensure that you are paying the cheapest car insurance rates that you can.

Different Types of Auto Insurance

When you get ready to compare auto insurance quotes from competing companies, it is important that you know what types of car insurance policies there are and what types of car insurance you need to be within the legal limits of your state.

Auto insurance comparison, either online or in person, is the best way for you to get the cheapest car insurance premium you can.

Comparing rates is easy and quick and can be done 24/7 from the comfort of your couch with your laptop.

- Personal Injury Protection (PIP)

This type of insurance is part of no-fault states and their basic insurance requirements for registration. This insurance will cover the costs of medical bills and injuries for the driver and passengers of the policyholder’s vehicle. This insurance does not cover any other persons or vehicles involved in an accident. As part of a no-fault state’s requirements, this insurance does not assign fault in an accident and is designed for quick funding of the injured for their medical expenses.

This insurance is generally not sufficient to cover all the medical expenses that can occur during an accident and the minimum state requirements should be a starting point as to how much insurance you purchase on these types of policies.

- Property Liability 

The liability portion of any policy pertains to both physical and property damage.

If you are responsible for the accident, your property liability will cover damages to whatever you may have hit in the accident. This insurance covers more than damage to another vehicle. It can also be used to repair property such as a building or a porch.

- Bodily Injury Protection 

The second half of your liability coverage will pay for injury or death of another person due to an accident that is found to be your fault.

In addition to coverage for pain and suffering, loss of wages or funeral expenses, this insurance can be instrumental in hiring you an attorney should you find yourself being sued for anything related to the accident.

- Comprehensive

Comprehensive insurance covers damages to your vehicle that are not related to accidents. These damages can be from natural disasters, vandalism or even theft.

Should a tree limb fall on your car, the comprehensive portion of your policy will pay for the damages. Likewise, should you hit a deer, your comprehensive policy will pay for animal damage.

- Collision

The collision policy covers anything related to an auto accident.

It takes care of repairs and bodywork, as well as mechanical failures relating to the accident and some policies include towing and rental under separate provisions.

The deductible is applied to your total repair bill and the bodyshop will receive a check for the difference. You will be responsible for paying the deductible that you have chosen.

- Underinsured Motorist and Uninsured Motorist

Both of these insurances are for your protection.

Regardless of whether there are state laws requiring insurance or not, too many uninsured motorists are still on the highways.

The uninsured motorist policy will cover you and your passengers for injury or death that may occur if you are hit by either an uninsured motorist or a hit and run driver.

The underinsured motorist is only carrying the minimum state requirements.

If you are involved in an accident with someone who has insufficient insurance coverage, then your insurance will pick up the cost of the repairs that exceeds the at-fault driver’s coverage.

Both of these insurances limits are determined by how much insurance you purchase and limits that you set in your policy.

With so many different types of insurance available, you may find auto insurance comparison overwhelming, but comparing insurance quotes is not hard. There are many different ways that you can compare auto insurance quotes that are as simple as entering your zip code. Compare and save today.

State Auto Insurance Laws

Every state in the United States requires a car owner to carry insurance on their registered vehicle. While most of the states require an actual insurance policy to be written, New Hampshire requires an individual to be able to prove financial responsibility as insurance.

All states require proof of insurance to be supplied at the time of car registration.

Just as all states are different, so are all insurance companies and you will need to compare auto insurance quotes to help you to get the correct coverage that your state requires, as well as getting the cheapest car insurance that you can.

Comparing car insurance is extremely easy when you have access to online sites for insurance companies and brokers. These sites allow you to do your auto insurance comparison any time day or night at your convenience.

The laws in your state will make a difference in how much you pay for your car insurance.

Most states have a website for state information, Department of Motor Vehicles and the Insurance Commissioner’s office. The website will help you to determine what your car insurance minimum requirements are necessary to obtain a registration.

Some states will only require you to obtain Personal Injury Protection (PIP) and liability insurance in order to register your vehicle and legally drive on the highways.

Other states may require you to purchase an uninsured motorist policy along with PIP and liability.
Most states do not require you to carry comprehensive or collision insurance in order to register your vehicle.

What you should know about the state minimum requirements is that they are generally not high enough to protect you in the case of an accident that is your fault. The minimum requirements are dollar amounts that can be extremely outdated and not even close to what actual costs are in today.

The minimums have been established by legislation that can be over 20 years old, which has not accounted for increases in the cost of cars and medical expenses.

In 1984, you could purchase a brand new car for $3,500, while that same new car might run you close to $16,000 in 2012. It makes sense that when you have a liability limit requirement of $5,000, you are not going to cover the cost of a new car. That means that you will need to come up with the difference.

Once you have determined the state limits that are required of you to register your vehicle, you must now determine how much insurance you actually will need over and above the minimum requirements.

Unless you are sitting on lottery money in the millions, you probably will not want to reach into your pocket and hand over money to replace vehicles or pay for medical expenses should you be involved in an accident.

That is what insurance is designed to do for you.

The last thing you want to do is pay too much for your car insurance.

This is where you will want to get online and do your auto insurance comparison with as many car insurance companies as you can. You will also want to call the agents and independent brokers in your area. You can still find them all listed in the Yellow Pages of your phone book.

By comparing from as many companies as possible, you have the best chance of getting the cheapest car insurance rates that you can.

When you compare auto insurance quotes, make sure that everyone is getting the same information. You will want to have your current car insurance policy, your vehicle information, your credit and driving records and the mileage on your vehicle to get an accurate quote.