In these kinds of rough economic times, you want to save wherever you can. One of the most obvious places where you would want to save is in your car insurance premiums. But so many factors influence premiums, and all too often you seem destined to pay more and more as time goes on. Don't give up! You, too, can save on your car insurance if you're willing to put in the effort to become a low-risk driver. By doing your best to be a safe driver, car owner, and insurance policy holder in all aspects of your life, you can save in many different ways and enjoy the same great coverage with more spending freedom.
Note: Although your auto insurance risk score is not available for you to examine, it will be somewhat like your credit score. If you've had unfavorable activity on your credit score recently, it is best to wait a month or so for things to return to normal before purchasing auto insurance. Another factor in determining your premiums is your car itself. Most auto insurers have a system developed by Car Insurance Services Office that factors age, make and model that begins with the cost of your car and then adds in safety factors and theft statistics. Just like your "insurance risk score" this rating information is not available to the consumer.
Note: You can keep premiums down by keeping small claims down. If you've had items stolen from your car, such as a CD collection - file this on your homeowner's insurance. Bad drivers will pay more in premiums - including you if you drive badly. You can pay up to 40% more after your fist at-fault accident. This is the industry standard, although not all insurance companies follow this guideline.
Note: Accident "forgiveness" - some auto insurers offer a first accident "forgiveness"; they will not increase your premiums for your first accident. Check with your company to see if they offer this coverage and how you can qualify. Did your friend borrow your car and have an accident? You'll have to file a claim unless their own insurance covers them. If they are uninsured, and the damages exceed your coverage, the injured party may take legal action against you for damages and injuries. On the other hand, if your friend did not have permission to borrow your car you won't be held liable in many cases.
Another factor in your premiums is your car's real value. When determining replacement value, many insurance companies check with local dealers to find what they sell similar cars for. If you think your car is worth more than what the insurance company is offering to pay, you can dispute this. If you've made upgrades to your vehicle with special parts, etc., be sure your company knows this so the extra value is covered. If you've had regular routine maintenance or extra low annual mileage, produce these records to show the company your car is worth more. You can also plan ahead with "gap" insurance, which would cover the difference between what you owe and what insurance would pay you.
If you feel that your car insurance company drastically undervalues your car, don't worry, there are measures you can take to remedy the situation. Gap insurance exists for just such times, and will cover the other expenses your car insurance company is ordinarily unwilling to cover. It can make a big difference and save your neck when your bad luck places your damages at just a bit over the coverage your policy offers.
If you find another car insurance company that offers better deals, you can switch to them. This means telling your old company to cancel your policy. This is a simple procedure, and all you have to do is notify your old company in writing on the date you've chosen to cancel. Just be sure to have the newer policy ready to go as soon as you cancel the old one! If there's a gap, then you'll be uninsured for a little while, and getting into an accident during that period of time can be a total disaster. Shop safe and smart and you'll have no regrets about this simple procedure.
Note: Although your auto insurance risk score is not available for you to examine, it will be somewhat like your credit score. If you've had unfavorable activity on your credit score recently, it is best to wait a month or so for things to return to normal before purchasing auto insurance. Another factor in determining your premiums is your car itself. Most auto insurers have a system developed by Car Insurance Services Office that factors age, make and model that begins with the cost of your car and then adds in safety factors and theft statistics. Just like your "insurance risk score" this rating information is not available to the consumer.
Note: You can keep premiums down by keeping small claims down. If you've had items stolen from your car, such as a CD collection - file this on your homeowner's insurance. Bad drivers will pay more in premiums - including you if you drive badly. You can pay up to 40% more after your fist at-fault accident. This is the industry standard, although not all insurance companies follow this guideline.
Note: Accident "forgiveness" - some auto insurers offer a first accident "forgiveness"; they will not increase your premiums for your first accident. Check with your company to see if they offer this coverage and how you can qualify. Did your friend borrow your car and have an accident? You'll have to file a claim unless their own insurance covers them. If they are uninsured, and the damages exceed your coverage, the injured party may take legal action against you for damages and injuries. On the other hand, if your friend did not have permission to borrow your car you won't be held liable in many cases.
Another factor in your premiums is your car's real value. When determining replacement value, many insurance companies check with local dealers to find what they sell similar cars for. If you think your car is worth more than what the insurance company is offering to pay, you can dispute this. If you've made upgrades to your vehicle with special parts, etc., be sure your company knows this so the extra value is covered. If you've had regular routine maintenance or extra low annual mileage, produce these records to show the company your car is worth more. You can also plan ahead with "gap" insurance, which would cover the difference between what you owe and what insurance would pay you.
If you feel that your car insurance company drastically undervalues your car, don't worry, there are measures you can take to remedy the situation. Gap insurance exists for just such times, and will cover the other expenses your car insurance company is ordinarily unwilling to cover. It can make a big difference and save your neck when your bad luck places your damages at just a bit over the coverage your policy offers.
If you find another car insurance company that offers better deals, you can switch to them. This means telling your old company to cancel your policy. This is a simple procedure, and all you have to do is notify your old company in writing on the date you've chosen to cancel. Just be sure to have the newer policy ready to go as soon as you cancel the old one! If there's a gap, then you'll be uninsured for a little while, and getting into an accident during that period of time can be a total disaster. Shop safe and smart and you'll have no regrets about this simple procedure.
About the Author:
Susan Reynolds is the webmaster for a leading South African Insurance Provider who specialises in Car Insurance.
