Important Insurance Mistakes to Avoid

For beginners especially, insurance mistakes are a common occurrence that could have been avoided had the buyer been properly educated first. Although one of the costliest mistakes one can make is by failing to invest in insurance all together, there are a few important insurance mistakes to avoid when buying for the first time or renewing.

Mistake #1: Not Getting Enough Insurance

The bare minimum coverage plans may have an appealing price tag, but the price tag of the damage the plan doesn’t cover can be a bit less appealing. The truth is, no one expects an accident to occur to their home, car or other valuable item, so it’s difficult to prepare for these situations. Try to be as cautious and practical as possible when it comes to your own insurance plan.

Mistake #2: Getting Too Much Insurance

Believe it or not, you actually can have too much insurance coverage for your needs. For example, you shouldn’t have snow insurance protection for your home if your live in Florida. Find the coverage plan that fits your unique needs, according to your situation. Before investing in auto insurance, determine the resale value of your car based on its make, model and condition in addition to your ability to buy a new car in the event of an accident. If you’re in good shape, you may just need a plan that covers liability.

Mistake #3: Failing to Compare Quotes

It may seem time consuming and tedious at first, but one of the costliest mistakes you can make is going with the first agency you see instead of shopping around. The Internet makes shopping around easier than ever, so there is no excuse why you shouldn’t do your research and get quotes for a variety of insurance companies before settling on the best value for your needs.

Price versus Coverage When Buying an Auto Insurance Policy

When you’re spending money for auto insurance, you want to strike a good balance between price and coverage. It’s not a good idea to buy the cheapest thing you can find, but it’s also not necessary to always choose the option with the highest cost. There are many options that can help you find some middle ground. Of course, you’ll want to err on the side of caution when it comes to your coverage because you can’t afford not to do so. Find out what your current insurance policy offers you, and break down your coverage for each auto if you have more than one vehicle. Then, take a look at the price (total and for each car) that you’re paying so you can get a realistic picture of your insurer’s charges.

To strike a balance that you can be happy with and that will still keep you well-protected, it’s a good idea to go over your policy every year and make sure that it still meets your needs. If you change vehicles, you should also consider what policy adjustments you might need to make (such as adding collision coverage if the vehicle is financed) so that you can keep yourself and your vehicles properly protected.

When it comes to making a decision about your insurance policy, talk with your agent and consider shopping around with other companies to see what they are offering. Avoid companies that have poor reputations and companies whose names you don’t recognize. These companies will often have lower prices than their larger competitors, but they may not have a good balance of price and quality. In order to provide the best protection for your auto, shop carefully and make sure you’re comfortable with your policy and company choice before you sign on the dotted line.

Finding the Insurance Best Deal in Your State

No matter what type of insurance you are looking for, shopping around is the best way to get the best deal. There are many different factors that go into the price of your insurance premium, so checking out several companies will help you find exactly what you are looking for in terms of insurance. Once you have found that perfect deal, remember to review your policy and your premium every six months or every year to make sure you are still paying the lowest price.

Depending on the state where you live, there are different minimum requirements for both home and auto insurance. If you have recently moved to a new state, you may want to do some research and find out exactly how much insurance you need. One easy way to save money is to not over insure for your area. On the other hand, if you live in a location where there is frequent flooding, earthquakes or even tornadoes, you need to make sure your insurance premium covers these types of claims.

Another great way to get a good deal on insurance is to bundle your policies. Use the same company for your auto, home and even life insurance and you may be able to get a multi-policy discount. Not only does it make it easier to keep all of the paperwork straight, but you will also only have to make one payment to cover all of your insurance needs.

Compare quotes to get the best deal on insurance in your state. Even if you have been with the same company for years, and unless they offer a large loyalty discount, you may be paying too much for your coverage. It only takes a few minutes to shop around and you may save enough money to take your family on that vacation you have been promising.

The Best Ways to Keep Your Insurance Premium Low

Whether you are talking about auto or home insurance, most people want to know how to keep their premium low. In today’s economy, people are looking for ways to save money. If you have to drive to get to work, there are ways to keep your auto insurance low. If you own a home or even if you rent, you do not want to over pay for coverage for your belongings. Just take a few easy steps and put that extra cash into your pocket.

To save money on your auto insurance premium, make sure you pay your bill on time. Although many people enjoy the convenience of making monthly payments, you can actually save money if you pay every six months. If this is not an option, consider using a bank draft each month, which can also save you money. Other ways to save money include driving cautiously and avoiding potential accidents. If there is another way to get home besides driving on the express way, you will reduce the chance you will have an accident. Whenever you make a claim on your insurance, the premium amount goes up. If you can avoid making claims, you will pay less. You will also need to make sure you follow the speed limit. Every time you or someone on your policy gets a traffic ticket, your premium goes up. Take the extra time you need to get where you are going safely.

Homeowners insurance does not have to be expensive. If you install some safety features, you may even be able to save money. Having fire extinguishers near your kitchen may qualify for a discount on your insurance premium. Increasing your deductible will also help keep your premium low. Shop around for a great deal and save hundreds of dollars every year.

Things Auto Insurance Providers Look for in Drivers

Everyone enjoys saving money, and if you can save cash on your auto insurance, you need to know what insurance providers look for in drivers. It is a well-known fact that teenage drivers — especially male teen drivers — are expensive to insure. If you have teenagers in your home and you are trying to save money on auto insurance, here are some tips.

Make sure your teenager stays in school and gets good grades. Many insurance providers will give you a discount if your student is on the honor roll. You may also be able to save money if your teenager drives a family sedan instead of a sports car. Most insurance companies see sports cars as risky and when you add in a teen driver, it makes for a large expense. You will also want to encourage your student drivers to be cautious and avoid potential accidents. Do not blast the music, text or talk to friends while driving. These are all ways to prove to the auto insurance company you deserve a lower rate.

Other ways to save money include taking a defensive driving course. Even if you have not had an accident, you can earn a discount by taking a refresher course. If you have a good credit rating you may also be able to save money on your auto premium. Many drivers do not realize that a bad credit score affects how much they pay for car insurance. If you are responsible with your money, they assume you are responsible with your car.

All insurance providers look for good drivers who do not have a history of accidents. If you have a college degree, you may also get a cheaper rate. Shop around to find the best deal for your family so you can enjoy driving anytime.

Comparing Auto Insurance Coverage in Your State

Before you compare auto insurance in your state, you have to first determine what the state requirements are in addition to what the average car insurance holder pays. Some states are fairly lenient on their requirements, and others require a high amount of coverage that can even be comparable to the monthly payments you make on the vehicle itself. Although each state varies, a good rule of thumb when attempting to gage the situation is to analyze the cost of living in your state along with the population, taxes, number of auto accidents per year and so on. These factors usually play a big role in the overall quote for auto insurance in your state.

Once you have established this information, consider your current credit history. Your personal credit is often a big factor for the amount of insurance you will pay. Be sure to bring up your credit history when discussing this with an insurance agent in your area to get a more accurate quote. There are many quote generating tools available online, so it’s always best to take advantage of these first to determine a good ball park range for your auto insurance cost.

When you compare auto insurance quotes in your state, you shouldn’t just be looking at price. Instead, you should take it into account with factors, such as customer service, coverage quality, previous customer experience and so on. These factors may not exactly be an easily calculated quote, but they allow you to compare factors that may be of priority to you. Money isn’t everything, so you want to be sure you are getting the best coverage and service for your needs before settling on an auto insurance plan. All in all, to make the process of comparing auto insurance easier, be sure to call your local independent insurance agent (or broker) and allow them to shop for rates for you while offering helpful advice on various rating factors.

Consequences of Not Having Car Insurance in Your State

Times are tight. To save money, you’re considering driving without auto insurance. Be careful, though. Driving your car without the proper insurance can result in serious consequences.

It is now illegal in all 50 states for motorists to drive without auto insurance. The penalties for doing this, though, vary widely by state. In all 50, though, there are penalties. And, in most cases, they are harsh.

There’s a reason for this law. Auto accidents are expensive. If you get into an accident and don’t have insurance coverage, who will pay for the damage that you’ve caused? By not having auto insurance, you’ve put another driver in a financial hole.

What penalties might you face if you’re caught driving without car insurance? First, you might have your driver’s license suspended for several months. Consider what an inconvenience that could be. How would you get to work every day? How would you visit friends or family members?

In some states, you’ll also lose your auto registration if you’re caught driving without insurance. In all states, you’ll face a hefty fee for driving without insurance. And, in most cases, the odds are good that you’ll receive a separate ticket for driving without insurance. This ticket will come in addition to whatever other ticket the police give you, everything from speeding to reckless driving. As you can imagine, having an additional tacked on to your record can prove quite costly. Finally, your car may be towed. Retrieving your car from the impound lot will undoubtedly result in some heavy fines.

Do the smart thing and pay for the proper amount of auto insurance coverage. Yes, auto insurance isn’t cheap, especially if you have speeding tickets or other dings on your driving record. But, the financial burden of paying for car insurance every month is nowhere near as severe as the penalties you’ll face if the police should catch you driving without it.

How to Overcome High Prices if You’re a High-Risk Driver

You’re a high risk driver. Maybe you drive your car hundreds of miles every week to get to your job. Maybe you’ve had several accidents in your past. Maybe the police have stopped you for speeding far too many times. Whatever the reason, you make your insurance company nervous. And, because of this, every insurer out there wants to charge you high prices when it comes to auto insurance.

This shouldn’t come as a surprise. When you’re a high risk driver — for whatever the reason — you’re more likely to suffer expensive accidents. This costs insurance companies money. To protect themselves, they’ll charge you higher rates. It’s the way the insurance business works.

But, there is hope for drivers with checkered records or high-mileage jobs. Even if you’re a high risk driver, you can reduce the amount of money you’ll pay for insurance. You just have to take other measures to overcome those high prices that insurers want to charge you.

You can consider, for instance, taking out a homeowners or life insurance policy from the company with which you already have an auto insurance policy. There’s a good reason for this, too. Many insurers offer discounts to customers who take out more than one type of policy with them. This is good business as it encourages customers to take out extra policies with a single insurer. But, it can also leave you with lower overall prices on your auto insurance policy.

Of course, the easiest way to lower the prices you pay for auto insurance is to establish a clean driving record from now on. If you can prove to your insurer that you’re not at a high risk of getting into an accident, you just might find your policy prices falling.

What the Least Expensive Auto Insurance Gets You

Although it may not be ideal, purchasing the cheapest, bare minimum auto insurance plan is certainly better than not buying insurance at all. One of the best ways you can keep the cost of your auto insurance down is by simply avoiding accidents as much as possible. Of course, there are some accidents that are inevitable; however, paying close attention to the road and taking extra care to follow traffic laws makes a whole world of difference. Your insurance agent will also look at factors such as the neighborhood you live in and your home’s availability of a garage. Areas with high crime rates and no garage access will have to pay higher rates because they are at a greater risk.

Before just signing up for the cheapest auto insurance plan, you will want to consider your unique situation first. For example, your auto insurance agency will look at the model of the car as well. If you drive a super fast sports car, this could make you pay higher rates. You will also want to look into your state’s laws concerning fault and no-fault insurance as well as liability coverage. This is arguably the most important factor for coverage since you may not care about the damage done to your vehicle, but it’s not always certain that the other party involved in the accident will share your same ambivalence.

Furthermore, many of the cheapest auto insurance plans will usually cover collision costs as well, which would include any damage that may result from an accident. Before settling on an inexpensive auto insurance plan, you should also consider your current financial situation. Are you in a fairly secure financial situation where an unexpected accident could be compensated for with the money you have saved up? If not, you should probably consider plans with a bit more coverage just to be safe.

What Kind of Coverage Does a High Mileage Car Need?

If you’re driving a high mileage car, you may want to consider what kind of insurance you have and what you’ll need in the future. While high mileage cars may be older and may not be worth as much money, they are certainly valuable as transportation to their owners. Auto insurance for these vehicles should generally include only liability insurance. Liability is a requirement in most states. Other coverage options, such as comprehensive, aren’t usually the best choices for a high mileage car. A claim made against that coverage could easily equal the value of the vehcile. If that occurs, the vehicle is considered "totalled" for insurance purposes, and wil no longer be insurable.

As your auto acquires more mileage, things are more likely to go wrong with it. That’s true no matter what make or model your car is or how carefully you drive and maintain it. Because of that, it’s a much better idea to keep your vehicle insured properly. Another coverage option you most likely don’t need on your high mileage auto is collision coverage. Unless your vehicle is worth a lot of money or you absolutely couldn’t afford to replace it at all, you don’t need to keep collision insurance on it once it becomes a high mileage vehicle.

In addition to liability insurance for your auto, though, you may want to look at mechanical breakdown options as well as towing and rental car reimbursement. If you have those options, you’ll be able to get financial help if your car should break down. While a vehicle of any age can have mechanical problems and need to be towed, it’s statistically more likely for an older car with more miles on it to suffer problems. Insuring against those problems can give you peace of mind.