Thursday, October 11, 2012

How to obtain cheap car insurance using discounts

We all would love to have important things for cheap, right? Especially when it comes to things, which are somewhat annoying in their mandatory nature. Regardless of how important auto insurance is regarded to be, the majority of car owners still find it to be just a loss of their money since they rarely benefit from it. Sure, the useful nature of this product is undisputed, but it still doesn't change the way millions of drivers see it when it comes to paying the premium. So, if someone told you that there's a way to get cheap car insurance, you would definitely want to learn it. And that's exactly what we going to do right now by learning the power of discounts.

Discounts are common and quite diverse, despite the common belief that they are scarce and hard to obtain. Nearly all insurance providers have discounts that apply to different groups of car owners, although they rarely advertise them. Discounts are usually applied as a tool to keep loyal customers and encourage certain groups of drivers to keep using the services of the same company for a longer period of time. And you can actually save significant amounts of money if you happen to comply with specific requirements for discounts. Here are some of the most common discount types you will surely find at most insurance providers:

Multiple car

Having several cars in the household can be very convenient but also rather costly in terms of insurance. Still, if you want to get cheap car insurance, this may be your chance to get it, since the majority of insurers provide attractive discounts to customers insuring more than two cars. It's always cheaper to cover all your cars with the same policy instead of buying separate policies for each car.

Multiple policy

There are many companies that offer different types of insurance services. And usually buying different products from the same provider results in nice discounts. Cheap car insurance can be obtained from the insurer that provides your health, homeowners or life insurance policies. Just make sure to check if they provide relevant car insurance as well.

Low mileage

Driving less will cost you less in terms of insurance. Statistically, the more you drive the higher is the risk of an insurance claim. That's why most insurance companies offer nice incentives to drivers who don't exceed a specific yearly mileage (usually 10,000 miles).

Special group

Certain demographic groups can also benefit from good discounts. Such groups include senior citizens, workers of the military, governmental agencies, good high school or college students and some others. Make sure to check with your provider to see if you're eligible for any of these.
Don't be afraid to ask around for more information with your insurance provider. Information is the key to getting cheap car insurance. And you certainly want to get it, right?

Thursday, October 4, 2012

Optional car insurance coverage types that may interest you

Most people know about "normal" car insurance coverage - liability, comprehensive, underinsured drivers, etc. However, depending on your cheap car insurance company, you can get other types of optional coverage that can protect you in a variety of situations. In some states, these things will be included in a typical policy. Search around, find out what is basic and what is optional, and decide what coverage and company works best for your needs!

CD or DVD coverage: If your car gets stolen or vandalized, this coverage will pay you (up to a certain amount) for the loss of any CDs or DVDs that were inside your car at the time. This is because CDs and DVDs are used with your car's stereo equipment, somewhat making them a part of your vehicle!

Loan or Lease GAP Coverage: Although typically optional, sometimes GAP insurance is a requirement. If you have a poor (or no) credit history, a loan company might require GAP insurance in addition to regular insurance. GAP insurance stands for Guaranteed Auto Protection and is available for any vehicle that is being leased or financed. It covers your vehicle in the case of a total loss, and provides coverage for the difference in how much you still owe for the car, and how much the car is currently worth. This protects the lender's investment and ensures they won't face a financial loss.

Death Indemnity Coverage: This type of coverage pays a specified amount to a designated beneficiary in the case of the death of the insured, assuming the death was caused by a car accident.

Outside Transportation Costs: This coverage reimburses you if you have to rent a car due to your car being damaged. The damage typically has to be covered under your collision or comprehensive car insurance coverage, and has to cause your car to be inoperable for more than 24 hours.

Labor and Towing: This cheap car insurance option will pay for expenses accrued due to towing and labor if your vehicle is damaged. It covers any labor that occurs at the place your car was damaged. Be sure to ask your insurance company about the specifications and limitations of this type of coverage.

As you can see, cheap car insurance goes well beyond the basics. Choosing the best type of insurance coverage is an individual decision, and not everybody needs every type of coverage. However, these options can be nice to have and are there for your consideration! Most people know about the most common types of cheap car insurance. However, car insurance is not "one-size-fits-all" and there are many other options that might be of interest to you, depending on your coverage needs.

Auto insurance rates depend on a drivers gender so what

It is a commonly known fact that men will often pay more when it comes to auto insurance. In fact, on average, women will pay around 9% less on their insurance premiums then men. This isn't because insurance companies hate men, it's because men are more of a statistical risk. Overall, women are less likely to be involved in a serious moving violation, less likely to file insurance claims and the ones they do file are less expensive, are less likely to drive an expensive car, are less likely to have multiple drivers on their policy, and are less often charged with a DUI.

Traffic Statistics

When it comes to traffic safety, statistics show that women are less risky drivers. Studies have found that women are 10% less likely to get violations for speeding or reckless driving. They are also 50% less likely to be arrested for driving while under the influence. More expensive cars are typically more expensive to ensure, and women, on average, have cars that are 8% less expensive then men. Women are involved in fewer accidents overall, and men are more likely to be involved in a fatal accident.

Discrimination

Companies are not allowed to discriminate. Therefore, in order to charge men more for their insurance premiums then women, there must be a statistical link - not a promotional discount.

Safety Concerns

Not only are women less likely to be involved in an accident, they also take more safety measures. Men are less likely to wear seat belts, and they also fail their driving exam on the first try more often then women.

State Regulation

Everyone knows that auto insurance is almost always a requirement of the state you live in. However, what you might not know, is that the state also puts limits on how much an insurance company can charge for your premium, after taking in account your personal details. Therefore, some states have a larger gap between male and female premium costs than others. Currently, Wisconsin has the largest disparity, and Iowa the smallest.

As you can see, gender discrimination is not the reason auto insurance companies charge men more. Insurance companies are all about minimizing risk, and statistics are the best way for them to do that. If you are a male driver, driving safely and developing a safe history is the best thing you can do to get your auto insurance premiums lower.