Tips On How To Save When Buying Car InsuranceWritten by James Diaz
If you want to save money when you purchase your car insurance here are a few ways that can help you as you search for auto insurance. First thing you can do is comparison shop. It cannot hurt to call around to see what other prices are out there. If price is higher you know you are where you need to be and if you find a lower rate you always have option to change. You can use information from Florida Department of Financial Services, or a similar department within your state, to help you decide. This Florida department can show you what types of coverage are out there and give you sample rates. You can do this for other states by using National Association of Insurance commissioners web site. Armed with this information you can get quotes from a number of companies and find best one for you. Increasing deductibles is another way to lower your premium. A deductible is portion of money you pay before insurance company pays for damages or injuries. The higher your deductible is less exposure insurance company has, thus your premium will be lower. If you choose highest deductible you can afford you may save hundreds of dollars over term of your policy. Dropping comprehensive and collision coverage on older cars is another way you can to save money on your insurance policy. This type of coverage protects your car if it is damaged or stolen. Usually it is cash value of vehicle at time of a loss minus deducible. On older vehicles value is lowered already by depreciation. You need to take into consideration premium you pay, value of vehicle and deductible you have. You may be paying more for coverage then vehicle is worth. If there is a loan on car, you may have to keep this coverage on car until you pay off loan. After car loan is paid off it is your choice if to keep these types of coverage and at what levels. Buying a more economical car may help reduce your insurance. Yes, driving that corvette is fun but if you want to save money maybe you can be driving something that is a little less expensive. Vehicles that are costly to fix or that have a higher chance to be stolen are generally higher priced as far as your insurance premium. There are reports that you can check to find out which cars are stolen more often. One of these types of reports is by The Highway Loss Data Institute. Parts and repair times also tend to me more costly on higher end vehicles. A vehicle that is easier to repair will save with labor costs thus help lower your premiums.
| | Do Insurance Premiums Increase Every Year?Written by Jon Register
Many people ask, "If I am supposed to get a renewal discount, why do my premiums seem to increase with each renewal?" The answer is not always so simple. Each year, new vehicles cost more then they did previous year. It will probably cost more to fix a damaged vehicle than it did last year, or five years ago when you first bought your current policy. However, in many cases, your renewal premium will be less. Some factors that contribute to decreases in your premiums are straightforward. According to Insurance Information Institute (I.I.I.), cost of auto insurance is expected to rise only 3.5% in 2004, smallest increase over last four years. Why? The number of auto accidents is on decline due to better drivers and safer cars as well as crackdowns on fraud and abuse. However, due to rising costs for medical care, vehicle repairs and skyrocketing jury awards potential of price increases remain a problem. Rising automobile theft rates and fraud will keep costs higher for motorists in some states, such as Florida, Massachusetts, and New York. The projected increase represents a substantial slowdown from 2003 when auto insurance costs rose by 7.8 percent, I.I.I. observed. The average cost for auto insurance nationwide for 2004 is estimated at $871, an increase of $29 per vehicle from last year. Unfortunately, even though drivers are filing fewer claims these days, claims that are filed are costing insurance companies more than they used to. It is costing more to repair cars as amount of damage sustained in crashes is up from what it was a few years ago. Some in industry feel this is due to accidents involving sport utility vehicles.
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