12 Secrets Your Car Insurer Won't Tell You
MSN Money recently revealed “12 Secrets Your Car Insurer Won’t Tell You.” Many people don’t take the time to really consider their auto insurance or shop around, and many of them end up paying too much for their coverage. However, these 12 tips could make hundreds of dollars difference in your yearly auto insurance premiums:
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- Good credit makes a difference. Having good credit will help save you money, because car insurance insiders believe that, if you have good credit, you are a more responsible driver and file fewer claims. Studies have actually confirmed it.
- The type of car you drive is important. Some cars are very expensive to repair or replace. Other cars are considered safer. Both will end up making your car insurance premiums increase.
- One lump sum saves you money. Most auto insurance companies allow you to choose how you pay. If you break up your payments into Quartery or monthly payments you will most likely incur extra costs. The least expensive option is usually to pay in one lump sum per year.
- Know what you can and cannot claim. Not everything in your vehicle is covered by your auto insurance. For instance, most coverage will not pay to replace a lost tape or CD. However, a Home owner’s insurance policy may allow for a rider to cover any losses due to theft that are not covered by your auto insurance.
- Good drivers save money. Not every accident will cause your car insurance rates to rise, but if you are found to be at-fault, you could face an increase of over 40 percent.
- Don’t lend out your car. Your car insurance could go up if your friend gets into an accident using your car, and if your friend is uninsured you could end up facing legal action.
- Gap insurance is a good thing. Your vehicle loses significant value the moment you drive it off the dealer’s lot. You may even be surprised at what value your insurance provider would give your vehicle if you were to total the car. Gap insurance will cover the difference of what you owe versus what the car insurance company will pay you. However, know when to drop the coverage, because you don’t want to pay for gap insurance when you no longer need it.
- Does your state offer “diminished value?” If you are in an accident and have your car repaired it will lose even more value. 14 states allow you to file a claim for those losses (Florida, Georgia, Hawaii, Kansas, Louisiana, Maine, Maryland, Massachusetts, North Carolina, South Dakota, Texas, Virginia, Washington and West Virginia).
- Do you have to pay tax on a replacement vehicle? While only 14 states pay for diminished value, 28 states require car insurance providers to pay the tax on a replacement vehicle (Alaska, Arizona, Arkansas, California, Connecticut, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Kentucky, Maryland, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New York, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Vermont, Washington, West Virginia and Wisconsin). Some auto insurance companies will pay it if you ask, even if your state does not require it.
- Stacking may be allowed. Some states allow you to stack your uninsured/under insured motorist coverage, meaning you can collect from more than one company if you are in a collision with someone who does not have enough car insurance coverage.
- Wait until the right time to insure your teen driver. You don’t have to add your teenage driver to your policy until he or she actually has a driver’s license. However, don’t forget to add him or her or you could be facing additional premium costs back to the date he or she was licensed.
- Don’t forget to cancel the old policy. Some drivers forget to cancel their old car insurance policy when they get a new policy, and it ends up costing them money and in their credit rating. You have to actually call and cancel the policy. However, do not call until your new policy goes into effect so that you avoid being without coverage.
Find Discount Car Insurance Online
In the competing auto insurance industry, companies are working hard to lure insurance seekers to their organizations. Insurance is a very competitive market, so you may need to dig deep to find the discounts for which you could be eligible. Many insurance companies offer multi-auto discounts and multi-policy discounts, but there are often other ways to save on your discount auto insurance that may not be as well known.
First, it is important to shop around to make sure you are taking advantage of all the discounts companies have to offer. Ask questions and be willing to offer information about yourself including your age, gender, and even your occupation and hobbies to see what discounts for which you could be eligible. Talk to brokers and agents to find out what discounts vary from company to company, and which ones are pretty standard for almost all auto insurance providers.
For instance, insurance companies across the board tend to give you a discount for being accident free and having had no moving violations in the past three to five years. It makes sense, as most companies find safe drivers less risky. However, there are some lesser known discounts based upon what you do for a living, your age, and more that you could apply to your policy.
●First, do you have a college degree? If you do, you could get another discount on your insurance. One insurance company discovered that people with engineering degrees were lower insurance risks than other individuals, so they offer between a 10 and 30 percent discount to engineers and scientists. Some insurance companies also offer discounts off automobile insurance premiums if you are a graduate of a four year institution and you are under 30 years old. The pennies you save here may even help you pay off that student loan faster!
●Another career that can get you a discount on your auto insurance is being an educator. Teacher discounts vary from company to company, but most of the discounts for educators range from 8 percent to 30 percent. Many companies require that the teacher be a member of the state educators association or NEA, but the discounts often more than compensate for the association dues.
●Current members of the Armed Forces and veterans are also eligible for significant discounts on their auto insurance. Many insurance companies offer discounts and programs available to veterans and those soldiers on active duty. Discounts vary from company to company, but most auto insurance providers have discounts available to those people who are serving or have served their country.
●Are you a member of AARP? If you are, then there may be even more discount auto insurance programs available to you. Many insurance companies have programs for people who are members of AARP, and some even have non-cancellation clauses and other discounts for seniors.
●The fifth and not so little known way to save is the internet. It is not so much that the internet holds hidden discounts, but that many people are still somewhat skeptical about using the web to purchase their auto insurance. However, there are companies that will offer discounts if you purchase directly from their website. Our service compares actual discount auto insurance companies in your area, not just internet exclusive insurance companies.
The key to finding little known discounts for your auto insurance is to do your research and ask. Browse all articles pertaining to information you need and use the Sponsors links to help start your LOW COST INSURANCE search. We trust that saving on your car insurance will be a painless process with these tips.