It was not too long ago when contracts were made on a handshake and a promise. Individuals were not particularly concerned with things like insurance because they relied upon the goodwill of their neighbor to compensate them for wrongful damage. For a variety of reasons, including an increase in the speed and cost of auto wrecks, auto insurance soon became an important purchase for responsible individuals. Not long after, the federal government mandated that auto insurance be carried, at least minimally, by all car owners. The increase in the need for auto insurance over the last 10 years has led to increases in the complexity of insurance, while at the same time, amplifying the need to be more cost conscious in auto insurance purchases.
Buying auto insurance today requires as much dexterity as buying the automobile itself. It is important to know the factors that an auto insurance company considers when offering quotes. This will allow you, as the consumer, to know what steps you need to take in order to qualify for a lower quote. The five easy steps to a lower insurance quote are:
1. Portray yourself as a safe candidate: Insurance companies are interested in managing risk. Consequently they offer drivers who are less likely to get into wrecks or at a minimum into wrecks of less severity, a lower insurance quote.
-Maintain a clean driving record, free of traffic violations or accident claims.
-Install anti-theft devices in your vehicle.
-Attend a Drivers Safety Training program.
-Buy a safe vehicle. The National Highway Traffic Safety Administration (NHTSA) and The Insurance Institute for Highway Safety together collect information on safety related aspects of different vehicles. Buy an automobile that is officially designated as safe.
-Park your vehicle in a garage.
2. Show your Credit worthiness: As a risk management entity, insurance companies are also worried about getting paid on time. If you can show yourself to be credit worthy, there is less risk of you not making your payments on time, thus warranting a lower rate.
-Maintain a good credit score and clear up any errors on your credit.
-Cut down on the total number of outstanding credit cards to 2 or 3.
3. Practice Financial Wisdom: The way in which you structure and pay for your policy can lower the risk that an insurance company faces with respect to you as a customer. By taking steps to lower their risk, you receive a lower insurance quote and policy.
-Buy an annual policy instead of a six monthly coverage to get you a lower rate that remains the same for a year.
-Opt for automatic payment deductions from your bank account or your credit card to avoid getting charged for mail payments.
-Increase your deductibles on comprehensive and collision policies to reduce on the rates.
-Get loyalty discounts by buying your home and auto insurance from the same company.
4. Assess your Insurance Needs accurately: This is obvious, the more coverage you get the more it will cost you. Add-ons are killers in the insurance business, strip your policy down to just the minimum of what you need.
-If your vehicle is not used much or you have an old car with little market value, opt for minimum liability alone. It will cost you less.
-After fulfilling the legal mandate on auto insurance, insure according to your needs alone.
5. Other wise things that you can do: There are a number of other considerations that go into your insurance quote. Some of them are not reasonable steps to take, while others you can do with little effort which can translate into substantial savings.
-If your car is used only for a particular purpose, make your agent aware of it, as this will limit the cost.
-Students that make good grades are often eligible for a discount.
-Give up smoking; it can help you get better quotes.
-Change your occupation if you can help. A delivery boy carries a higher risk than a storekeeper.
Tags: Accident Claims, Auto Insurance Company, Auto Insurance Quote, Buying Auto, Car Owners, Credit Worthiness, Highway Traffic Safety, Insurance Companies, Insurance Institute For Highway Safety, Insurance Purchases, Management Entity, Managing Risk, National Highway Traffic, National Highway Traffic Safety, National Highway Traffic Safety Administration, National Highway Traffic Safety Administration Nhtsa, Nhtsa, Responsible Individuals, Traffic Safety Administration, Traffic ViolationsRelated posts
Buying a car is one of the largest investments many people make in their lives-and more and more, people are bypassing new cars for used models. In fact, used cars have become big business in the U.S. and today, consumers have choices that stretch beyond the big lots and dealerships.
Just remember that when you’re buying a car-new or used-it’s important to get the facts first. Doing so can help you be more certain you’re actually getting the car you want at the price that’s right.
“Buyers should be sure to consider all the angles-from mileage, model and vehicle history, to warranties and financing,” says Brad Eggleston of AutoVantage. Here’s how to protect yourself:
• Check out the model’s repair record, maintenance costs, and safety and mileage ratings in consumer magazines or online. Check the National Highway Transportation Safety Administration’s Web site (www.nhtsa.dot.gov) to see if the car you are considering has any recalls associated with it.
• Get a vehicle history report from Experian Automotive (www.autocheck.com). It’s a cheap way to ensure you’re not the victim of odometer fraud and that the car wasn’t in a fire, flood or accident.
• Dealers are required by the Federal Trade Commission to post a Buyer’s Guide in every used vehicle offered for sale. Read it. This guide provides important information about the car and always overrules your sales contract.
• Consult the Kelley Blue Book to learn what a car is worth before going to the negotiating table. Be prepared to bargain for the best deal on your car. Also, visit a qualified mechanic for an automotive diagnostic and inspection before buying. Check the Car Care Council’s Web site (www.carcarecouncil.org) to find certified mechanics.
• Take a serious test drive. Test the acceleration and give the brakes a workout. Make sure the steering wheel doesn’t wander from left to right or shake. Drive up and down hills, down highways and through stop-and-go traffic.
• When financing, beware of advertisements offering tempting deals to folks with bad credit or first-time buyers. Find out the exact price you’re paying for the vehicle, the amount you’re financing, the finance charge, the APR and how many payments you’re up against.
Tags: Autovantage, Big Lots, Buying A Used Car, Car Care Council, Consumer Magazines, Dot Gov, Drive Test, Eggleston, Federal Trade Commission, Fire Flood, Highway Transportation, Kelley Blue Book, National Highway Transportation Safety Administration, Nhtsa, Record Maintenance, Sales Contract, Steering Wheel, Tips For Buying A Used Car, Transportation Safety Administration, Vehicle History Report