All posts tagged insurance for auto

How To Save Money On Auto Insurance

Auto insurance is a necessity for drivers, because every state in the U.S. requires it and because it offers important protections that all drivers can benefit from. This doesn’t mean you can’t still try to save money when shopping for a policy that offers you sufficient, dependable protection. Thankfully, it’s both legal and smart to save money on auto insurance, and here are three ideas to help you accomplish that.

Improve Your Driving Record

Even if you haven’t had any accidents, your driving record plays a huge role in the auto insurance rates you’re quoted. If you’ve had a few speeding tickets, been cited for running stop signs or going through red lights, insurance companies are going to see you as a high risk customer and will charge you higher rates. This isn’t a label that has to stick to you for life, though. You can make an effort to follow safe driving standards and make sure you go a year or more with no citations and get your rates reconsidered.

Try Bundling Policies

The more policies you have through one insurer, the cheaper the overall bundle is likely to be. Whether you need renters insurance, home insurance, or life insurance along with your car insurance, getting all policies issued by the same company can result in significant discounts on not just car insurance, but all the policies issued by that carrier. Bundling like this can really help you save a lot of money in the long run.

Comparison Shop

If you were looking for a home to buy, you probably wouldn’t purchase the very first one you visited without at least taking a look at several others. You should also not purchase the first auto insurance policy you get a price quote for without comparing that quote to the quotes of other companies. There are many different agencies and online services that can help you compare premium quotes to make sure you get the best deal for the most comprehensive coverage.

For many drivers with busy lives and specialized insurance coverage needs, the best option is to try getting good quality insurance from somewhere like Great Northern Insurance Agency. When you work with an agency like this, you gain the benefit of a dedicated, knowledgeable staff that can save you time and help steer you toward discounts. Instead of trying to accomplish your insurance shopping alone, call on great agents and agencies that you know will give the service you deserve.

Car Insurance: How Much Coverage Is Too Much

Buying car insurance coverage can be a confusing experience for many people, most of whom wind up purchasing more car insurance than they really need when they get full coverage insurance to protect their vehicles and others. Certainly, it is good and reassuring to have auto insurance coverage, and all Canadian provinces require some level of liability insurance to pay for injuries to others and property damage. But buying too much insurance coverage is almost as wasteful as not buying enough.

Full-Coverage Car Insurance Is Not Always Needed

Whenever financing the purchase of a vehicle, the lender will require full coverage insurance with a reasonable deductible amount to protect the loan collateral. But once that vehicle is paid off, maintaining full coverage insurance might not make sense. If the value has depreciated enough, paying for full coverage insurance is not a wise move. Most vehicles worth less than $5,000 don’t warrant full coverage unless they are financed, and insurers will refuse to provide full coverage insurance for vehicles that are worth only $3,000 or so, according to Underwriters Insurance Brokers (BC) Ltd., a provider of auto insurance in Vancouver.

Many Additional Protections Are Not Needed

When buying car insurance in Vancouver or other provinces, a lot of insurance professionals like to talk people into buying additional insurance coverage beyond liability, collision and comprehensive insurance. Most people do not need many additional insurance items, such as rental car insurance, towing coverage, trip interruption and other types of optional insurance protection. Most people have credit cards that provide free rental car insurance coverage, so having additional insurance through an auto insurance policy wastes money.

Trip-Interruption and Towing Not Always Needed

Likewise, trip-interruption insurance is good only for people who travel a lot by car. Those who only drive in town and use airlines, rail and rentals when traveling generally won’t benefit from trip interruption. Towing service also is relatively affordable, but in many cases, the benefit amount does not warrant several years of additional coverage payments. In most cases, a vehicle won’t be towed more than one or two times with a maximum benefit amount of $125 or so per tow and the bill paid up front.

Careful Planning Can Prevent Wasted Cash

When discussing insurance options with insurance producers, people need to ask about policies and the coverage they include. In many instances, they will find additional protections they likely won’t need. Eliminating unwanted coverage will make insurance more effective and more affordable and prevent people from paying for too much car insurance.