Tag: car insurance

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Financial Insurance

Reduce, Pause, or Cancel Your Car Insurance

Reduce, Pause, or Cancel Your Car Insurance

In some cases, you might want to pause or cancel your car insurance on a car you aren’t actively using. It can be a great way to cut down on costs for a few months and save money that could be better used in another area of your life.

Some car insurance companies will allow you to suspend the car insurance for a few months while in others you will need to cancel it completely. It’s a common way for people to save money when they are having a financial hardship. Many companies will be lenient if you explain to them the situation and tell them it’s for economic reasons.

Most car insurance companies will make you call or appear in an office to pause or cancel your plan. This is for security purposes because they want to ensure that you are the one canceling the plan and not someone else.

Reducing Your Plan

This involves minimizing your plan to only pay for the car insurance parts that are required by your state. It’s called a minimum coverage option. Most states require you to have liability insurance, personal injury protection, and medical payments coverage.

You might want to also keep comprehensive coverage if you are storing the vehicle. This will make sure that the car is covered if it is stolen or is damaged from falling objects. It will also protect the car from vandalism.

Make sure to contact the DMV if you only have comprehensive coverage and not liability coverage. This way they know no one is driving the car and you only have insurance to protect it from non-driving damage.

They will usually make you file an affidavit so that it’s on file somewhere that no one will be driving the car.

Pausing Your Car Insurance

This allows you to stop paying the car insurance momentarily for a few months while you get your finances together. This allows you to keep from experiencing coverage lapse. It’s also more cost-effective than canceling your insurance and then reapplying for a new one at a later time.

Pausing car insurance is only allowed by some companies and usually under certain circumstances. You will also need to go to the DMV and get an affidavit of non-use. This allows you to legally stop paying car insurance while you are not driving the car.

This isn’t usually an option if you have a car loan. Lenders almost always require you to have coverage but check your agreement to see the specific protocols.

Canceling Your Plan

This will also not work if you have a car loan. Canceling completely ends your insurance. If you decide to start driving again, you will need to look for a new policy and resign a plan.

This also requires a DMV visit to receive a form to say you will not be driving the car. This will create a lapse in your insurance history and might may your insurance more expensive when you begin to drive again.

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Financial Insurance

Car Insurance: Tips & Ideas for Cutting Costs

Tips & Ideas for Cutting Car Insurance Costs

When you’re behind the wheel, you need car insurance to protect you. But how can you make the liability insurance or car coverage more affordable for you?

Here are some tips and ideas for cutting your car insurance costs:

  • You must remember that insurance companies offer multi-car discounts and make it your goal to take advantage of that. Hence, if you try obtaining a quote from an auto insurance company for a single car, they will surely give you a higher quote.

But if you asked them for quotes for several cars or drivers at one time, you will get a more discounted bulk rate. Do you know why? Because they’re willing to give you a deal if they see promises of more business from you.

You can gather your family members, neighbors, friends etc and then ask for a collective quote.

  • Insurance companies are smarter than you think. They conduct studies to prove that people with good credit scores are less like to make insurance claims. Hence, try paying your bills on time and clearing your credit card debt before purchasing your car insurance. You could win lower premiums this way.
  • Being a safe driver is one easy way to cut car insurance costs. It’s common knowledge that safe drivers are the favorites, especially for car insurance companies. Try to maintain a good driving record and you’ll win safe driving discounts in return on your insurance, almost up to 10% to 23 %.
  • Insurance companies insure different people and cars differently, which is why you will find a difference in thousands of dollars between their quotes. This is why we suggest you first shop around well to see who’s offering what. With three or four quotes in hand, you can settle for the most reasonable one.
  • There are some insurance companies who award discounts to those who undergo defensive driving course. With this course, you can the number of points on your license. You may even opt for accident prevention or similar course to win this discount. Not a bad idea it seems!
  • Bundling your insurances can lower your costs too. You may already be having a homeowner’s insurance or some others and if you wish to purchase more than one policy, it would be a great idea to ask your agent to bundle these. In return, your insurance provider may give you a discount, which they often do on bundle insurances.
  • Using mass transit will shower fewer miles on your insured automobile in year and that is sure to reduce your costs too. You see, it is typical for an insurance company to make you fill a questionnaire before signing up for discounts. If you are commuting for three to four hours daily back and forth from work, you will surely be paying more premiums that those who only drive a mile a day.

Hence, a good idea is to ask your insurance company about their mileage thresholds. That way you can plan your mileage accordingly to win a discount.

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Financial Insurance

8 Questions To Ask Before Buying Car Insurance

car insurance

Car insurance is one of those things that everyone has to have, but now and then you probably see an ad that makes you wonder if you might be overpaying. So you inevitably shop around, but when you’re getting quotes from various agencies, there are some important questions to ask before you cut a check for those first premiums.

1.   What Coverage Options Do You Have

You will want to know if there is coverage for any other drivers. Often this will be needed in situations where a roommate or family member borrows your vehicle. You want to make sure that anyone else driving your car is covered should an accident happen. Another good option is underinsured or uninsured motorist insurance.

2.   Will My Job Alter My Coverage

You’ll be asked certain questions about your driving, how far you drive on average, how far you drive for work, and so on. If your job is in delivery, transportation, sales, or similar lines of work, be sure your vehicle will have coverage if an accident happens while you’re working.

3.   Why Is My Premium So High

This is a great question for your current insurance agent if you feel you’re paying too much. Ask them what factors are driving up your costs. You may be able to address them.

4.   How Significantly Does Raising My Deductible Lower My Premium

Frequently, insurers will offer lower premiums for drivers choosing a higher deductible. This can be good to keep your premiums low, but it can also work against you if you are no good at saving. While you can get lower rates with a higher deductible, if you don’t generally keep that much in savings for an emergency, you may find you can’t pay.

5.   What Discounts Are Available Through The Agency

This is a great question for any insurer, current or potential. There are often insurance discounts for everything from airbags, to theft-deterrent devices, to good students, and even jobs that are known for having safer drivers.

6.   Is Gap Coverage Available

This is a crucial question to ask if you still owe on your vehicle. Gap insurance will make sure that you aren’t paying off a car that’s been totaled by covering the amount remaining on your loan.

7.   Are There Fees Or Discounts For Certain Payment Options

Some insurance companies charge a fee to take a debit or credit card. Some offer discounts for setting up a direct debit through a bank account, as well as discounts for paying 6 months or a year at a time.

8.   Is A 24/7 Roadside Assistance Option Available

If you have a mechanical breakdown or an accident while you’re on the road, it will be when you least expect it. 24/7 roadside assistance is important for things like breakdowns, flat tires, dead batteries, things like that. While they are often available from just about any towing company, they are usually quite expensive, and having your insurance pick up the tab is always nice.

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Financial Insurance

5 Steps to Lower Your Car Insurance Rates

car insurance lower the rate

The cost of owning a vehicle quickly adds up between fuel, maintenance, and insurance. Any little bit of money you can save makes a difference. While you might feel like you don’t have any say in your car insurance rates, there are things you can do to reduce the price.

The most obvious way to lower your premium is by being a safe driver. People with good driving records automatically get lower rates, but even if you have a few blemishes on your record, there are steps you can take to reduce your car insurance rate.

1. Check Insurance Rates Before You Purchase a Car

If you are just at the beginning stages of buying a car and getting insurance, do your research in advance. Not all vehicles are considered “insurance friendly.” Car insurance providers determine premiums based on a car’s repair cost, safety record, value, and the likelihood of theft. For example, a sports car is more likely to be crashed, stolen, and expensive to repair. As a result, insurance companies charge you more money because there is more liability.

On the other hand, some vehicles can get you much lower insurance rates based on safety features. Some auto manufacturers build their cars to withstand crashes better than others. They may also include special features, such as:

  • Brake Assist
  • Collision Warning
  • Lane-Departure Warning
  • Blind-Spot Warning
  • Pedestrian Detection
  • And More!

2. Request a Higher Deductible

Whether you’re dealing with health, home, or auto insurance, your deductible always has a significant impact on your premium. You can lower your premium by increasing your deductible, but you need to find the perfect balance. While you could make your payment more affordable by dramatically increasing your deductible, you shouldn’t increase the deductible beyond what you can afford to pay in the event of an accident. 

3. Decrease Coverage on Older Cars

Older cars often aren’t worth the premium you are paying if you have too much coverage. In these cases, it would make more sense to reduce your insurance amount. For example, you could drop collision and comprehensive coverage if it would be more cost-effective for you to pay for the repairs out of pocket.

If you aren’t sure of your car’s value, we recommend that you ask a bank or auto dealer. You can also use a site like Kelly Blue Book to determine your car’s current value. With that information, you can change your coverage when it is time to renew your car insurance policy.

4. Seek out Auto Insurance Discounts

Did you know that many car insurance providers offer a variety of discounts? If not, you could be missing out on valuable savings. We recommend that you talk to your insurance company to see if you qualify for a low-mileage discount. This discount would be for anyone who carpools to work or works from home.

Other companies offer deals to good students or good drivers with clean records. You could even take a defensive driving course to lower your rate. Other discounts you may be eligible for include:

  • Multi-Car Discount
  • No Accidents in Three Years
  • Good Credit Record
  • Customer Loyalty
  • Combined Auto and Home Insurance
  • Anti-Theft Devices

5. Shop Around with Different Providers

Lastly, if you still aren’t satisfied with your rates, you should consider shopping for a policy with another company. We suggest that you get a car insurance quote from at least three providers before you settle on one plan. Different companies and agents may be able to offer you different rates.

If you want to take the leg work out of insurance shopping, you can utilize several online price comparison tools. Your state insurance department may also be able to help point you in the right direction.

Take the First Step Towards Lower Rates

We suggest that you work your way through the steps if you would like to find cheap car insurance. However, you shouldn’t rely on price alone. We suggest that you find a company with a reputation for excellent service because there is value in that as well. The lowest rates might not always mean the best coverage. It is up to you to find the best rate for your needs and budget.

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Financial Insurance

Need Auto Insurance? Ask These 8 Questions

Auto Insurance

Many factors go into auto insurance decision making. Not only do you have to consider your premium, but you also need to decide what kind of coverage you need and how much to purchase. All of these things make it difficult to buy a car insurance policy.

Fortunately, you can better prepare yourself for car insurance shopping when you evaluate your personal priorities. In addition to calculating your budget, you should ask yourself eight questions to which policy options are best for you and your needs.

1. How Many Miles Do I Drive?

If you’re a stay at home mom or telecommuter, you might not put more than 100 miles a month on your car. However, you could easily put more than 1,000 miles on your car every month if you have a long commute to work. It’s important that you find an insurance policy that reflects the miles that you drive. For example, a mileage-based insurance would be a great option for low-mileage drivers.

2. What Do I Use My Car For?

You need to consider how your car will be used in order to find the proper coverage. If you are simply driving to work or using your car for personal reasons, a standard car insurance policy should be fine. However, you may need to get commercial insurance if you use your vehicle for rideshare, delivery, or any other tasks that you get paid to complete.

3. What Kind of Car Do I Own?

The type of car that you own can have a huge impact on your insurance rates. Not to mention, it impacts the type of coverage you require. Any modified or classic cars require special insurance. If you have a sportscar, you might not need a particular policy, but you should expect higher rates since your car is more likely to be stolen or damaged. On the other hand, customers with “safe” cars can usually enjoy discounts for safety features.

4. Where Do I Live?

Your location can also affect your insurance rates tremendously. People in urban areas are more likely to be victims of theft and vandalism, so they spend more money on car insurance.  Customers in rural or suburban areas typically have lower insurance rates. While you might not be able to control where you live, you should keep in mind how your location can impact your insurance policy.

5. Where Do I Park My Car?

Do you often park your car in the street? Do you keep it in a garage? Where you park your car can also be a risk. If you live in area where you park on the street, you also have to worry about other drivers hitting your car along with the risk of theft. If you don’t have a garage, your car is also susceptible to damage from hail, fallen branches, and more, so we recommend upping your comprehensive coverage.

5. Will Anyone Else Drive My Car?

Most car insurance policies cover occasional drivers, but you should make sure that frequent drivers are all listed on your policy. A frequent driver could be anyone who lives with you and borrows your car often. They could include a spouse, teenage children, roommates, and more.

6. How Much Do I Love My Car?

If you drive an old car and don’t care about its appearance, then you could buy the bare minimum insurance policy. Full coverage insurance would be better suited for anyone who loves their car and take pride in caring for it.

7. Do I Own My Car?

Leases and financing are great options for acquiring cars, but they can impact your auto insurance policy. You may be required to insure the car for its full value or the gap between what you owe and its current market value. This insurance is called supplemental gap insurance since it goes along with your collision and comprehensive coverage.

8. What Are the State Requirements?

Every state has its own rules and regulations for car insurance. It is up to you to research and find the minimum liability coverage for your vehicle.

Request a Auto Insurance Quote

Now that you know more about your car insurance needs, you should be able to find a great policy. We suggest that you start out by getting a car insurance quote from several companies with similar coverage levels. By doing so, you can get a fair comparison and find the right option for you!

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Financial Insurance

Car Insurance: 101 Guide to Everything

car insurance 101

Whether you’re on the hunt for better rates or shopping for the first time, car insurance can be intimidating. There are so many numbers thrown at you, and every provider claims to offer cheap car insurance or the most benefits.

How can you possibly choose? In this article, we’ll go over everything you need to know about car insurance and how to choose a policy that fits your needs.  

Type of Car Insurance Coverage

Before you can select any policy, you need to know about the different types of car insurance coverage. While some coverage is designed to protect you, other insurance pays for damages and injuries you cause to others. The following are just a few of the most common insurance coverage options:

Liability

This type of coverage is for others. Specifically, auto insurance providers design bodily injury liability to cover injuries or deaths that you caused with your car. Property damage liability covers vehicles or other property damaged by an accident you caused. Almost all states require drivers to carry a minimum liability policy.

Collision

If you want to cover your car’s damage when you cause an accident, you need collision insurance. It covers the cost of repairing or replacing your vehicle whether you hit a car,  pole, tree, or another object.

Medical Payments and Personal Injury Protection (PIP)

Several states also require that drivers carry insurance for medical payments or personal injury. This plan reimburses you for medical costs associated with an accident. They also cover lost wages for you and your passengers.

Uninsured Motorist

In the event of a hit and run, you will be thankful for this insurance. It provides you with coverage when the driver at fault lacks enough coverage to pay for the damages he or she caused.

Coverage Amounts

Once you know what type of coverage you need, you must choose the amount. As with the coverage types, your state often determines the minimum amount of coverage you must carry. It could be as low as $10,000 a person or $20,000 for a single accident. On the other hand, insurance companies can set maximum limits for liability coverage.

Obviously, you shouldn’t choose more coverage than you can afford, so you need to find the balance between your budget and your needs. Since many cars can cost upwards of $40,000, you should aim for at least that much in property damage coverage. If you own a more expensive vehicle, we recommend upping your coverage in case an underinsured driver hits you. These are just a few of the things you should consider when selecting your coverage amount.

Car Insurance Rates

Your car insurance premium can vary greatly from the next person’s—even with the same coverage and deductibles. We know that sounds crazy, but it’s true! Insurance providers don’t base your car insurance quote on those two factors alone. In fact, there are a lot of different things they take into consideration when calculating your payments, including:

  • Location
  • Age
  • Gender
  • Years of Driving Experience
  • Marital Status
  • Vehicle Type and Use
  • Claims History and Previous Coverage
  • Miles Driven
  • And More!

While your claims history and driving experience make sense, you might wonder, “what do my gender and marital status have to do with my insurance?” They are risk factors determined by claims data. For example, young drivers are statistically proven to be the riskiest drivers to insure. Therefore, your rates are much higher when your 16 than when you turn 25.

It’s important to note that while all of these factors are considered, they don’t carry the same weight. Each insurance company weighs them differently, which is why they charge different rates.

Choose Your Perfect Car Insurance Policy

Now that you know more about the types of coverage and factors that influence your rates, you can be better prepared to handle your search. If you’d like to learn more about car insurance coverage or how to lower your car insurance rates, we encourage you to check out some of our other articles.