Get Three Quotes

Insurance rates these days are very competitive and it is not surprising to see insurance providers extending their services and courtesy to get your business. The first thing that you should do when trying to get the best car insurance rate is to get at least quotes from three reputable auto insurance providers. Note that the word “reputable” is used. Try to get the best quote that you can from three insurance providers and then start comparing them from one another.

Liability Coverage Limit

Liability insurance pays for car repairs and hospital bills of the other driver in case you got involved in a car accident and you are the one responsible for it. Every state has a minimum insurance requirement, however, keep in mind that minimum coverage may not be enough in case the extent of the car accident is serious. Since not every insurance quote includes a matching coverage limit, it is important that you make a separate comparison of each insurance company’s liability coverage. Do not be surprised if the most affordable quote comes with less coverage while the most expensive comes in full coverage. Make the best out of comparing each one’s coverage in relation to the quote provided to you by these companies.

Deductibles

This refers to the amount of money that you have to pay up front when you file a claim and is an addition to the monthly premium that you pay for an auto insurance policy. A policy that requires a higher deductible will have a lower monthly premium, while a lower deductible often comes with a higher monthly premium. When making a comparison between auto insurance rates, make sure that the deductibles are at least close to each other.

Uninsured Motorists

On the other hand, there is at least one motorist out of seven who is uninsured based on the Insurance Research Council report. And finding yourself in an accident with an uninsured motorist can be financially troublesome and this particular coverage does not normally come with insurance policies so make sure that the auto insurance companies you are picking offer this option. It is very vital that you thoroughly examine what each auto insurance has to offer if you want to get the best auto insurance rating.

The post How To Effectively Compare Car Insurance Rates first appeared on VinFreeCheck and is written by Jason Mason

Change of address

Unless your insurance company can provide insurance in other states, moving away from home or migrating to another state may require you to change it. If they do cover the state you are moving to, you should still take time to analyze your insurance policy and compare it to others which may offer lower interest rates. Take time and go insurance company shopping. It’s only a matter of surfing the internet and checking their websites.

Cheaper insurance quote

Moving or not, you need not be reminded that insurance premiums can be a burden to your savings. It’s just too bad that you cannot avoid insuring your automobile because it is required by law. So when your current auto insurance is expiring soon, it is time to check out other insurance companies offering discounts and lower premium rates. Always compare rates—you might be being overcharged.

Changes in circumstances

If someone is moving away from home—your spouse is moving away because of work, your child has become an adult and moved out of the house or went to college, then it must be the time to reconsider your insurance policy. You might be paying for a number of drivers covered by the insurance that are not going to be in the household anymore. You might want to opt for a cheaper insurance company and discontinue paying your old one.

Change in income

Sometimes, unfortunate things happen like being demoted, losing a job or your business is failing. When it is time to tighten your belt, pay close attention to your monthly responsibilities. Your insurance policies for your car, home and life eats a big piece of your salary pie. If your current insurance policy is expensive because you were able to afford it previously, switching to a more affordable insurance company that can still suit your needs is advisable.

The post Reasons to Change Auto Insurance Companies first appeared on VinFreeCheck and is written by Jason Mason

Pay ASAP

An accident is called such because it is unexpected. Anything can happen during the time when your policy lapses and before it is reinstated. Pay your premium as soon as you can. You will not like the consequences of an unpaid premium: Driver’s license suspension, vehicle registration suspension, reinstatement penalties, fines and an SR-22, which is a certificate of financial responsibility filing requirement. What is a SR-22? It is a guarantee of insurance that you need to procure from your insurance company. You need it when you commit violations, which includes non-procurement of insurance coverage—which is driving without insurance.

Reinstatement

Reinstatement does not mean procuring a new insurance coverage. It is an extension of your old policy. To reinstate your policy, call up your provider regarding your intention of continuing your coverage and then pay the premium. Depending on the terms and conditions of your insurance, the period that lapse may be covered as long as your insurance company allows it upon compliance with their requirements like writing or calling them and paying the premium within a specified period of time.

Move on, find another

Everybody hates rejection. Especially when it comes to insurance policies. You might be rejected when you are considered a “high-risk driver.” The latter means you have incurred serious traffic violations which will lower your chance of acquiring auto insurance at a low price. When this happens, it’s time to look to other insurance companies. However, you run the risk of paying a higher premium because of your status as a high-risk driver.

Your state’s automobile insurance plan

If nobody will cover you or if you find the insurance policies being offered to you as expensive, you can try your state’s automobile insurance plan. This is a state program which allows drivers labeled as “high-risk” to be able to get the minimum required coverage.

Convenient Options

If you are prone to forgetting to pay your bills, most likely you will forget to pay your insurance premium at the stated dates. Why not try utilizing automatic payment options? If your insurance provider allows it, you can have your debit card, credit card, your bank account debited or charged automatically. Convenient and easy, right? Just make sure you do not max out your credit card or your debit card and bank account has sufficient funds.

The post Auto Insurance Lapsed? Here’s What You Should Do first appeared on VinFreeCheck and is written by Jason Mason

PROS

Save money, of course

Insurance companies offer discounts which are 5%-20% off the insurance policy if you get both the homeowners and auto insurance from them. While others may not give out discounts, they compensate this in the form of incentives. To illustrate: If your premium for home loan is $100 and auto insurance is also for the same amount, the insurance company may grant a discount. Assuming the discount is 20%, then you only have to pay $160 for both policies instead of $200.

Easier processing

Processing your insurance and even having only one insurance agent for these two different policies is more convenient. Claiming for either will also be easier because you are already more familiar with their processes and the places where you have to go and file claims. You may not have to present other requirements when you decide to get the other insurance policy because they already have your records on file.

Saves time

Paying only one company for all your insurance policies can save you time in sorting out and paying your premiums. When you have bundled several insurance policies, the installment payment due will be scheduled all at the same time. It would be more convenient to pay on one date than pay several premiums on several different dates.

CONS

Cancelling one policy

If you decide to cancel either your home or auto insurance, the bundling discount will cease immediately. Talking to your insurance agent would be advisable, lest you run the risk of not being covered for a period of time from the time of cessation or cancellation of the policy until you procure another one from a different company

Add-ons

Insurance companies might lure you into availing of other add-ons under the pretext of saving money. You might be adding insurances that are not necessary or even those that are not even of use to you. Some smart insurance companies would even require you to avail one of the add-ons to be able to obtain the bigger discounts in your primary policies. Be wary of these offers.

Having to change insurance companies

It will be quite the hassle if your current company does not offer bundling when you are raring to bundle your policies. You will have to shop for another insurance company which offers it. Think about it first, spend a few hours researching before making the big switch. Compare and contrast, take advantage of the free quotes and then decide.

The post Pros and Cons of Combining Coverage on Homeowners and Auto Insurance first appeared on VinFreeCheck and is written by Jason Mason

State Required Minimum Limit

All states require a minimum amount of auto insurance with most having a minimum for liability insurance, which pays for the other driver’s injuries as well as the passengers and damages to the vehicle. It is normal for you to see limits written in this format: 20/50 or 20/40/25 when it comes to the minimum limit required by a state. And this would mean:

• $20,000 for bodily injury for a single person’s injuries in an accident that you have caused.
• $40,000 for bodily injury for all the occupant’s injuries in an accident that you have caused.
• $25 for damage to the other driver’s property.

There are states that have no-fault insurance or personal injury protection coverage. This basically means that regardless of who is at fault, the auto insurance will cover your injuries after the accident. This law was originally implemented to give drivers the opportunity to pay for their medical bills right away, rather than waiting for the completion of accident investigations by the car insurance companies.

Assets

It would be better to go for a higher coverage limit if you have a higher salary throughout the year. This is to take into account the possibility of the other driver making an attempt to go after you in court to obtain money that is more than what your auto insurance will be willing to pay.

Finances

Consider how much you can realistically pay on a monthly basis while taking your other expenses into account.

Location

Statistically speaking, accidents taking place in the urban area are higher and leaving your car in the garage or on the street can expose it to theft; hence it is better to get comprehensive coverage.

These were a number of factors that affect the coverage of auto insurance and you can determine how much coverage you should get, keeping these factors in mind.

The post Auto Insurance Limit: What You Need to Know first appeared on VinFreeCheck and is written by Jason Mason

Drivers

There may have been some addition or reduction of the number of people in the household or your civil status might have changed. The drivers covered by the insurance policy should be changed accordingly. In this way, you may have to pay for more coverage, or you might want to opt for a cheaper one. If somebody in the household who uses the car has moved out, or if somebody acquires a driver’s license, the insurance coverage should be changed accordingly.

Types of Coverage

One who buys a brand new car would most likely want comprehensive coverage. Comprehensive insurance would include situations which are not ordinarily covered in liability or collision coverage. Some examples would be acts of god-like storms, falling trees and the like. As years go by, the car ages and depreciates. It would not be worth paying for a higher premium for an old car. It would be wise and practical to opt for a cheaper insruance policy.

More money more problems

A sudden shift of your income would probably be coupled with a sudden change of lifestyle. A pricey car would entail a pricey insurance policy. If you do not have plans of acquiring a new car, you might want to upgrade your insurance for a better coverage.

Know how to get your investment

You have a comprehensive coverage, but do you know how to make a claim when the need arises? Sit down and take time to read your insurance policy to avoid unnecessary delays in the future. Educate yourself by reading the process of when and where you can make a claim. This will make claiming easier.

Know your dates

Know the grace period when to make a claim. Claims have prescriptive periods, meaning you cannot claim whenever you want. There is only a period when you are allowed to make a claim; otherwise you are barred to claim forever. Also make sure that you inform yourself of the time when to make a reinstatement of the policy. If you encounter an accident where you incur damages during the time when the policy is not in effect because it expired due to non-payment of premiums or it expired and you did not inform your insurance company about your intention of continuing the insurance policy, the premiums you have previously paid will go to waste.

Read the clauses

Your insurance policy is not just a piece of paper with gibberish in it. There might be clauses inserted in the policy that are not amenable to you. When you come upon something you do not agree to, at least you can contest it or rescind the contract altogether. Remember that insurance policies are considered “contracts of adhesion.” It is called such because all the clauses, terms and conditions are already laid out by the insurance company and all you have to do is to sign it. There is not much bargaining power here on your part. So make sure you read them.

The post How to Review Your Current Auto Insurance Policy first appeared on VinFreeCheck and is written by Jason Mason

Lowers the premium

Increasing your car insurance deductible will lower your premium rates. Why would the insurance company do that? They are more than willing to do this because in the event of an accident or damage that you may incur, they will have less amount to be liable for because you agreed to a higher insurance deductible.

Illustration

For example: You agreed to a $1,000 car insurance deductible. If you incur $1,500 repair damage, the insurance company will only have to pay $500. You are not at a disadvantage here. Accidents do not incur in a monthly or weekly basis, and if you are a careful driver, sometimes it would seem that paying for insurance is a waste of money. But since it is mandated by law and it is for contingency purposes not only for your benefit but for the benefit of the potential people you may be liable to, paying for insurance cannot be avoided.

A suggestive solution

To remedy this seemingly irreconcilable problem of paying for a higher premium or assuming a lower insurance deductible, the solution to saving money when it comes to trying to save money by shelling out less money for premiums is assuming a higher insurance deductible. If an unforeseen event like an accident does not occur, then you do not assume to pay anything out of your agreed car insurance deductible. Plus, you get to pay a lower amount of premium.

Opportunity Cost

In economics, opportunity cost in layman’s terms is spending money for a commodity and in effect losing money that could have been spent for something else.

Money for other things!

When you spend money for a higher premium, you are missing out on other things that could have been bought with the money you spent on paying for a higher premium. You could have spent it on groceries, a dinner for two at a nice restaurant, or an addition to your savings for a trip abroad. If you pay for a lower premium, you get to keep the money saved for the things mentioned above. This is one of the perks of agreeing to a higher car insurance deductible. At least you can put the “extra” money saved to good use.

The post Benefits of Increasing Car Insurance Deductibles first appeared on VinFreeCheck and is written by Jason Mason

Coverage

The value of your premium is partially influenced by the kind of coverage that you and the auto insurance company agreed upon. There is the option for drivers to go for basic liability and there is also the option to go for full coverage. Deductibles also affect the premium that you pay, such as if you want to pay a higher or lower deductible whenever you make an insurance claim.

Driving Record

This refers to your driving history and your driver’s license status; if it is suspended or active, or if it has any stain or bad records on it. The auto insurance also sees at-fault accidents as factors that negatively affect your auto insurance premium. Auto insurance companies also see if you have been incarcerated before or if you have been involved in serious traffic violations.

Vehicle Type

Another factor that auto insurance companies look to determine the amount of your auto insurance premium is the kind of vehicle that you drive. More specifically, how prone it is to getting stolen or vandalized, as well as how much it will cost to repair the specific car model. This also includes how safe the car is when you park it in the local area or in a different place.

Location

Note that the drivers who live in urban areas, places that are reputed to have a high crime rate, tend to pay higher premiums. The reason behind this is that auto insurance companies are at a risk of shelling out money to cover a customer’s claim on a frequent basis. This is not good for their business and it can put them at a financial risk.

Age/Gender

Based on studies, drivers generally from age 25 and older tend to be more mature hence are not prone to car accidents. So, they will pay lower insurance premiums. The same rule applies to females since they tend to be more conservative when it comes to driving which lessens the chances of car accidents.

Credit Score

Though there are states having laws that disallow auto insurance companies from considering a person’s credit score as a basis when it comes to determining or calculating a client’s auto insurance premium, auto insurance companies in states that legally allow the credit score to be used as a basis when figuring out a client’s monthly premium closely examine the client’s credit score or any of his buying history or payment history. Clients with bad credit scores tend to have higher premiums than those who do not. An auto insurance premium is what customer’s pay for on a monthly basis and this tells him or her how far his or her benefits extend to.

The post Factors That Determine Auto Insurance Premium first appeared on VinFreeCheck and is written by Jason Mason

Defining a Deductible Payment

This basically refers to the money that you agreed to pay out of your pocket before the auto insurance company pays a claim that resulted from a loss or damage. For example, your deductible is $400 and the car repair costs $1000 from an accident, then you immediately make a payment of $400 while the insurance pays the remaining $600. Based on this, you would think that it is better to pick lower auto insurance deductibles however…

Lower Deductibles

Paying lower deductibles mean you are paying a higher premium on a monthly basis. Now take note that your rate is determined by a number of factors such as state, age, gender and driving record. Of course, the better your driving background is, the more likely it is that you get a low monthly premium. Driving a car that has passed safety tests also adds to the factors of getting a lower monthly premium. Credit background also plays a role here. Also, living in a place where car theft often takes place would probably get you a higher monthly premium.

Higher Deductibles

On the other hand, paying a higher deductible means that your monthly premium is lower as compared to those who have auto insurance with a lower deductible. If you live in a state where you think car theft does not happen often and if you have a good driving record then it would probably be best for you to take advantage of auto insurance with higher deductibles, provided the option is available and you think you can manage it and you pass the requirements. It may seem advantageous but if for example your deductible is around $800 and your car experienced an accident or $400 worth of damage, then it is more sensible to just pay the repair amount yourself. It is still best to set aside money in case your car encounters an unpleasant situation regardless of whether you have a higher or lower deductible. Being intimately familiar with your coverage’s terms also helps.

The post How Do Auto Insurance Deductibles Work? first appeared on VinFreeCheck and is written by Jason Mason

Major Change in Lifestyle

In case your vehicle was totaled and you are still paying the car loan, there is the option to change the policy to include gap coverage. It gives you the privilege to pay the difference between the loan amount and the actual cash value of the car after the accident, even if the said vehicle’s current market value is lower than the price it was initially bought at. This is also applicable if you purchased a new vehicle.

Traveling

There is also an option for you to include rental cars as part of your coverage in case you will be traveling and will not be bringing your own vehicle. This gives you the opportunity to make claims in case you encounter an accident while using a rental car.

Financial Difficulties

This works especially if for example, you encountered a pay cut or you got laid off from your job and have a difficult time paying off the remaining balance on your car loan. This allows you to decrease the monthly premium and then allow you to modify it again at a later time when you are able to get back on your feet. On the other hand, if you have been paying for a low premium and want to get better coverage, then you can upgrade your coverage policy. Once you have made an auto insurance endorsement, you will eventually receive a new declaration page which includes the details of the changes. This includes what benefits you have starting from the period of the change and the benefits you no longer have. Auto insurance endorsement can be necessary in case there is a major change in your lifestyle and you need to upgrade or downgrade your policy.

The post Auto Insurance Endorsement first appeared on VinFreeCheck and is written by Jason Mason