Driving Safe: 6 Steps To Lower Car Insurance Rates
20-07-2010
It’s a no-brainer. The more crashes and collisions on your driving record, the higher the premium every car insurance company will quote you.
As the vaudeville comedians told it: “I went to my doctor. ‘Doctor’, I said, ‘My elbow hurts when I do this’. He told me, ‘Stop doing it’.”
How will you “stop doing it” – where “it” means crashing your car? Build yourself some safer driving habits. Here are six easy steps.
1. Look ahead. Look way ahead.
• Don’t stare at the car just ahead of you. Look farther down the road.
• If you see brake lights starting to flash way down the road, you will probably need to slow down soon. Start now and beat the rush.
• This also helps if something moves into your lane – like when two cars are heading towards you and then one starts to pass. Hit your brakes or see if you can use the shoulder to avoid a head-on crash.
When obtaining a car insurance quote, two numbers make a significant difference to the premium: the collision deductible and the comprehensive deductible.
Definition of “deductible”
In the language of insurance, a “deductible” is the amount deducted from the insurance benefit. It is precisely the amount which the policy-holder pays for that claim. It is written in the insurance policy – it is not negotiated at the time of the claim.
Here are some Tips to keep in mind.
The effect on the claim. Here is a simple example. A car is damaged in a collision. The repairs cost $1,000. The policy includes a collision deductible amount of $200. The car’s owner pays $200, and the insurance company pays $800.
The effect on the premium. The higher the deductible, the lower the premium. The reason is straight-forward: in case of a claim, the insurance company will have a lower repair cost, because the policy-holder pays more.
What Happens To Your Insurance When Your Car Is A Write Off?
20-07-2010
It was bad enough that you were in a collision. Your beloved car is waiting for repairs. The insurance adjuster has come and gone. Now you receive the report: your car is a write-off.
What it means:
Your insurance company estimates that it is not worth repairing your car. Several factors are in play:
• Your car’s Actual Cash Value (ACV) is the replacement cost, minus depreciation.
• The estimated cost of repairs.
• Your insurance company has a magic percentage, probably between 51% and 90%.
Multiply the ACV by the magic percentage for the cut-off amount. If the estimated cost of repairs is higher than that cut-off amount, then your car is a write-off.
In other words: if it will cost more than about one-half to nine-tenths of your car’s value to replace the car: then you should replace the car.
Your insurance company’s plan:
Your insurance company will offer you compensation to the tune of the Actual Cash Value. ...
How Can Customer Loyalty Affect Your Car Insurance Rates?
7-18-2010
You may have been with the same car insurance company for some years. You might have good reasons; but perhaps you have some poor reasons.
Customer Service is very important. Hopefully, you only deal with your insurance company, agent or broker to renew your policy. If you can contact your agent, ask questions, and receive good answers: that is a winning situation.
If you had to file a claim, and it was handled promptly and professionally: again, it is a good relationship and is worth your loyalty.
Personal Relationships are important. If your favorite aunt is your insurance broker, you may not have any choice. On the other hand, she had better be giving you a good deal.
Convenience is important to everyone. It certainly is easier to respond to the renewal notice by writing a check than by phoning a dozen companies to compare quotes. But you might be paying for this convenience.
You might be getting a bargain by buying multiple lines of insurance from one company. Some insurance companies offer combinations of car, home, life and health insu...
How Your Driving Record Affects Your Car Insurance
7-18-2010
Your insurance company uses your driving record as a major factor in determining what rate to quote when you apply for a car insurance quote – or whether to accept you as a customer, at all!
What is my “Driving Record”?
Your driving record is your driving history. It includes:
· The date you were first licensed.
· What traffic violations you committed.
· Any collisions you’ve had.
· How long you have continuously held car insurance.
Why does anyone care?
Let’s take them one at a time.
1) The date you were first licensed.
The longer you’ve been driving, the more experience you have accumulated. Most of us were nervous when we first started driving. We may have over-steered and over-corrected, or driven more slowly than the o...
