Posts Tagged ‘auto insurance company’

Auto Insurance Rates are one of the reasons why students’ lives are pretty complicated. But here are eight cost-saving ways on how to cut down your auto insurance:

Own a standard and older car. Standard cars with steel bodies are more inexpensive to repair than sports cars made of fiberglass. Also, choose a car with lower-risk from being stolen for it can make your premium rates lesser and cut out your collision rates from your policy.

Pay promptly. Rebates and discounts come as rewards if you pay your bills on time. When you fail on your payment policy, your auto insurance company brings a 25% to 50% additional penalty and a lower credit rating which can affect your auto insurance coverage in the future.

Make “B” grade badge. Letting your auto insurance company know that you are getting good grades in school may help you qualify for lower premiums.. Auto insurance companies think that students who have good grades are responsible drivers as well.

Maintain a clean driving record. Being part of at-fault accidents makes your premium rates higher. That is why becoming a responsible driver includes taking a driver’s education course, attending the classes, informing your insurance company, obeying traffic laws, and avoiding tickets.

Engage in clubs and organizations. Members of particular honor societies, clubs and organizations avail discounts from their auto insurance company. Inquire whether your auto insurance company has an agreement of discounts with your organization.

Ride on your parents’ auto insurance. When you piggyback on your parents’ auto insurance, your parents are in greater risk. An alternative is to make primary driver insurance with the same insurance company your parents have for your family car or your home which can result to multiple discounts.

Increase your deductibles. Doubling your deductible, controlling the limits of coverage and cutting your liability insurance, as long as you hold state-required minimums can save you from increasing your rates.

Drive less. You can reduce your yearly mileage by commuting to school, hitching a ride with your parents and classmates or simply walking to school. By the time renewing your insurance arrives, you will have no problems in applying for a lesser auto insurance.

As a student, you must worry more about your studies than cutting down your auto insurance rates. But you can maintain it balanced as long as you follow these eight tips.

Rewriter: Karen

There are things that you can save on by saving yourself from making the purchase.  However, there are things that you have to pay for, whether you like it or not.  One of these things is the insurance for your car.  It is not possible to renew your car’s registration if you do not have auto insurance.

You have to take note though, that even if you have to purchase auto insurance, you don’t have to get them at a premium price.  In fact, there are ways by which you can save on auto insurance without doing much bargaining with the insurance broker.

*  Keep your credit report clean.

Every business loves a customer with a good credit history.  If you have been dutiful in paying your obligations to your previous creditors, insurance companies will also assume that you will also be a good customer with them.  Thus, they will try to give you the best offers just to get your business.

*  Stay away from accidents.

Your driving record is also a basis on the cost that you will have to pay for your auto insurance.  If you would like to save on your auto insurance, be a good driver.  If your driving history shows that you have been involved in an accident, your auto insurance company will see that as having an added risk.  A delinquent driving record increases the possibility that you will be involved in a future accident.

*  As much as possible, try not to claim against your auto insurance.

When accidents happen, whether it is your fault or the other party’s, try your best not to have the insurance company pay for the damages.  Your next insurance company might see it as an added risk if you have made claims against your previous insurance.  Thus, your next auto insurance premiums will be higher.

*  Stick with your former insurance provider.

If you have been a good payer and if you have never filed any insurance claim, your insurance company will want to keep you as their customer.  You will be able to save money on your insurance premiums because they will offer you the lowest rates possible just to keep you from moving to another insurance company.

These are the simplest ways on how you can save on your auto insurance.  They don’t require much effort on your part, yet they can save you money that you can use to pay your other bills.

Writer: MCUERDO

In Wisconsin, anything can happen when you’re on the road – this is why you will need to have auto insurance to back you up. Having one will protect you from any financial losses in case you meet a driving accident. By paying a premium each month, you will be backed by an auto insurance company giving you the security for yourself, your car and other drivers as well.

Wisconsin auto insurance will also give you liability, property and medical coverage. The liability coverage will pay for your legal responsibility to others in case you have inflicted body injuries or damaged properties. The property coverage will pay for any damages made to your car or theft. And lastly, the medical coverage will be used to pay for the cost of treating injuries, rehabilitation and sometimes funeral expenses. There is also collision insurance which covers the damage to your own car.

In applying for a Wisconsin auto insurance, most companies will be asking you for your driving record, age, vehicle model, driving mileage and residence since these factors can determine and affect how much your auto insurance coverage will cost.

Young drivers – normally those under the age of 25, are generally considered to be high risk so the insurance rates are usually higher than the usual. Gender sometimes matter as well. There are insurance companies that give lower auto insurance rates to female drivers compared to male drivers. This is because females are generally safer drivers compared to males.

If you have a clean driving record for over three consecutive years then auto insurance companies would willingly extend their policies for you and give you lower premiums.

Compact cars like sedans have lower rates compared to sports models or exotic cars. Your car’s condition would matter and this would tackle the age of your vehicle and its maintenance. If your car is in a prime condition then you will be getting better premium rates.

Your financial status will also affect the rate of your insurance. If you have a good credit score then you will be paying lower premiums compared to those who have bad credit scores.

Your residence is also a factor since people who live in the city pay more compared to those who live in the country side. This is because there are higher crime rates in the city. The distance that you travel or mileage is also taken into consideration. Lower miles mean lower rates.

Writer: Marie Saycon

You have just settled a car loan for a $20,000 car with a down payment of $4,000. You happily drive off, confident with the auto insurance company you’re with that they will take care of everything in case something comes up, be it theft or wreckage.

But did you know that your car’s value has just depreciated by 20 percent the moment you went home in it? And although your auto insurance will pay you the actual cash value of your car, you have to consider that it will not be enough to cover the remainder of what you owe on your loan. Remember, the car’s value has already started to depreciate when you first left with it, and your lender will always hold you responsible for paying the whole remaining amount of your loan. So what happens to the difference of the actual cash value of your car and the amount left in your loan? This could mean trouble for you and leaves you scrambling to look for money to cover that amount, which could turn out to be hundreds of dollars, even thousands, and eventually may even affect your good credit history.

This is where Gap insurance comes in. Gap is so called because it is the difference between the amount left on your loan and the actual cash value of your car. It is important then for you to have it insured as well and not only your car. Your having paid the down payment of $4,000 on the $20,000 car loan makes you an ideal candidate for Gap insurance. The following example illustrates the importance of Gap insurance:

The car is worth $20,000.  Having paid $4,000 as its down payment, your loan balance is $16,000.  A year later, the car is totaled.  Your auto insurance company decides to pay for $13,000 as settlement, which is of course $3,000 short of the balance of your loan. Plus, with a deductible of $500, a final $12,500 settlement is reached. Gap insurance then pays $3,500. (However, certain terms may apply, like your financed loan amount must not exceed or at least be equal to $100,000 or the loan term is not more than eighty-four months, etc.)

See how you can rest easy with Gap insurance? For you then to have peace of mind with regard to one of your necessities in life, auto insurance must come with Gap insurance.