Affordable Auto Insurance

Reader’s Question:

Hello. I am a single parent and I would like to save on my car insurance. What do I do?

Michelle

Chicago IL

Hi Michelle. Read the following tips to help you save on your car insurance.

1. Prioritize safety. Take advantage of car insurance markdown for airbags, automatic seat belts and Anti-lock Braking Systems (ABS).

2. Pay policies directly instead of monthly. Throughout a six-month policy interval, this can produce a $50 to $100 savings depending on the car insurance company.

3. Apply in a defensive driving course since most car insurance companies do sponsor a safe driver training seminar and offer single parent insurance discount to drivers who apply in the course.

4. Buy an older vehicle since they have lower replacement costs and as such, they entail lower collision and comprehensive car insurance coverage.

5. Live with an older relative because most insurance companies will write a multi-car policy resulting in a significant discount.

6. Raise deductible levels. If you raise deductibles from $250 to $1000, this can produce reductions in car insurance premiums by 25-40%.

7. Ensure that the car insurance company knows about the child since they consider parents a lower risk due to the responsibility for the child.

8. Consider combining policies. Many companies present multi-policy discounts for home or rental and car insurance policies.

9. Many companies consider homeowners as a lower risk and as such, they will get lower premiums.

10. Refer to single parent outreach organizations because these have car insurance specialists who will be able explain policy details and choices fairly.

Reader’s Question:

Why do I need auto insurance?

Sidney

Chicago IL

There are many reasons why you need to have car insurance whether you’re purchasing a car for yourself or for you teenager. It is but natural that you like to care for the people and things which are dear to you.

Auto insurance helps you in:

• Protecting your automobile investment
• Compensating for medical expenses when accident happens
• Giving financial protection from lawsuits
• Covering losses which are caused by uninsured or underinsured drivers
• Paying damages because of theft, vandalism or natural disasters

This will assist you in your auto insurance needs. Take note though that not all coverages are the same. A coverage differs as per needs of a person. One must consider his specific situation when knowing what type of coverage is best for him. After gathering all the pertinent information, then you will be able to get a quote.

Reader’s Question:

Will I get a more affordable auto insurance on a used car? I’m planning to get one here in Idaho.

Vince

Idaho Falls, ID

Yes, it would be more likely for someone who owns pre-owned vehicles to pay for much lower auto insurance rates as compared to someone insuring a top-of-the-line and fairly expensive vehicle. A car’s actual cash value or it’s value in the market plays a significant role in your ability to acquire affordable auto insurance quotes. Used car’s already have a depreciated value so you would no longer feel the need to pay for large amounts of collision and comprehensive insurance coverage there in Idaho.

In fact, depending on how old the vehicle is, and counting in wear and tear as well as pre-existing damages, it would make much more sense to drop collision and comprehensive insurance altogether (especially if the vehicle is less than a thousand dollars) since you won’t get much and you will have to shoulder a deductible which could be half the price of your vehicle already.

You are still, however, required by the financial responsibility laws of your state to carry adequate liability insurance in case you injure someone or destroy property in a car accident. For Idaho you need to get at least $20,000 liability for each injured person, $50,000 for all injured per accident and $15,000 to pay for property damages (the 20/50/15 rule) But the lack of comprehensive and collision coverage would already make for a cheap auto insurance coverage. Don’t forget to shop around, auto insurance websites like this one can help you get the lowest auto insurance rates in your area.

Tags: affordable auto insurance, affordable auto insurance quote, affordable automobile insurance, insurance quotes, cheap auto insurance

Reader’s Question:

I need help! I think my insurance costs here in New York are absurd! How do I start looking for a more affordable auto insurance policy?

Candace

Buffalo, NY

You’re not alone, a lot of people today are feeling the pinch of the bad economy and on top of that, car insurance costs! But there are still ways to get affordable auto insurance (or make your current one there in New York more affordable), you just need the right kind of tips and information, here’s how:

1. Consider raising your insurance policy’s deductible. This saves money by lowering the premiums you pay regularly.
2. Now is not the best time to get traffic tickets and violations, so unless you want bloated rates be extra cautious while on the road.
3. Look for discounts that you qualify for, don’t expect all insurance companies to be proactive in helping you get cheap auto insurance. Discounts include: good driver discount (clean driving record for the past three to five years), good student discounts, membership discounts, professional discounts, completing defensive driving or accident prevention courses as well as installing anti-theft locks and additional air bags.

Sometimes your provider can only lower your premiums so much and the best way to get affordable automobile insurance is to switch carriers, so if you must, here are some additional tips:

1. Use auto insurance portals like this web page. You can get auto insurance quotes and compare offers from man different providers easily.
2. Don’t hesitate to negotiate your rates (especially if you have a great driving record), give them a hint of what their competition is offering you, you’d be surprised at how far you can go.

Tags: affordable auto insurance, affordable auto insurance quote, affordable automobile insurance, insurance quotes, cheap auto insurance

Reader’s Question:

My parents and I both have the same auto insurance provider here in Indiana, but why is it that my rates are higher than theirs?

Coleen

Gary, IN

You brought up a very interesting question here! a lot of people get surprised to learn about the huge disparities between auto insurance rates and why some people get more affordable auto insurance rates than others. It is important to understand that auto insurance is not a commodity, and there are a lot of factors that one needs to account for when rates are being determined. Listed below are some of the common reasons why rates differ per customer to help you understand your situation there in Indiana.

1. One of the biggest factors influencing auto insurance rates would be a driver’s age group. Middle aged (25 – 40 y/o) would enjoy the least amount of premiums than any sixteen-year old first time driver with raging hormones. Seniors seem to be out of luck too as auto insurance companies see them less capable of avoiding car accidents.

2. The make and model of your vehicle would also be considered. Aside from the vehicle’s safety ratings and popularity among car thieves, the size of your car also counts. Smaller vehicles are statistically shown to get involved in auto accident more frequently.

3. Probably the most significant factor that can make or break your chances of getting affordable auto insurance would be your driving record. This is the most accurate way that an auto insurance company can assess your level of risk. Expect a carrier to look back three to five years back on your history and even the lightest of offenses can cause a significant increase in auto insurance premiums.

Tags: affordable auto insurance, auto insurance policy, auto insurance information, cheap auto insurance