Tips for saving in 2012 on your insurance

We need insurance as a tool of risk management so that there is compensation for life and property. Did you know that an average American spends close to $2200 every year as premium on life, homeowners’ and auto insurance? On an average, only 1 in 15 people actually make a claim. But that does not mean you should not go for insurance, because it covers risk. After all, nothing is predictable in today’s world. Also, considering that auto insurance is required by law, you really do not have much of a choice.

Let us look at how we can save money on various types of insurance

1. Auto Insurance – The most common types of auto insurance is collision and comprehensive insurance. Collision covers the repair cost after your vehicle has met with an accident and comprehensive insurance provides immunity against relatively common risks like theft and fire. One of the best ways to save money in auto insurance is by increasing the cost of deductibles. So increasing the cost from $250 to $1000 on comprehensive insurance can give you a savings of $100 or 40 percent per year. A smarter way is to put this $1000 in an interest bearing account that is managed especially for these risks. So, when there is an incident of fire or theft, you can divert the money from this interest bearing account to pay as deductible rather than pay from your own pocket.

2. Homeowners Insurance – Look for competitive bids online for a good deal of homeowners insurance. Do not make claims for small accidents, you can handle them yourself. Also take adequate precautions to keep your home theft-proof and fire-proof by installing security camera, fire alarms etc.

3. Life Insurance – Do not look at life insurance as an investment but as a pure risk cover. If you tie it up with retirement plans, you may end up paying more money because a major component goes as investment rather than covering life. Also stay healthy, do not smoke, do regular exercises and be as fit as possible.
Commonly speaking, here are ways in which you can save money on insurance

• Read your policy carefully – Not only should you read your policy terms and conditions before applying for insurance, you should also pay attention to the policy changes that happen in future.

• Get insurance from just one provider only – If you get insurance from one provider which is providing very good service, you can get discounts as well because the insurance company will like to reward you for buying most types of insurance from them. Also since you will be dealing with one company, it becomes easier to manage and pay the premium.

• File few claims – If you keep on filing claims for every small thing, the insurance company will raise the cost of the insurance.

• Raise the deductible – The lower the deductible amount, the higher is the premium.

• Get insurance quotes online – Do a though check for low insurance quotes online and find out the best quotes from authority websites and make your decision.

In most places you have to buy car insurance in one form or another in order to drive. Many people just accept this expense as something you can do nothing about, but the truth is there are a number of steps you can take to get the insurance you need while still holding down costs. Many of them can be researched at helpful informational sites, such as InsuranceQuotes.org.

• Know What You Are Buying

Too many people buy car insurance without even understanding the basic components of car insurance, such as bodily injury liability, property damage liability, medical payments coverage, collision coverage and uninsured motorist protection. To be sure to get what you need, first you have to understand the components of what you are buying!

• Know Your Car

How much you pay for car insurance is strongly influenced by what kind of car you drive. The newer and more expensive the model, the more it will cost to repair or replace, thereby requiring higher premiums. One of the best times to consider your future insurance rates is BEFORE you even buy your car, by asking yourself how much the insurance will be and whether you are okay with paying it.

• ­Know Yourself

The next biggest factor in determining your car insurance rates is YOU. How old are you? What gender? How's your driving record? These and other factors are all taken into consideration by auto insurance companies when factoring your premium. Some things like your age and gender you can't do much about, but whether you have a clean driving record or live in the city or the suburbs are factors you can have at least some control over.

• Know What You Need

Do you even know what your car insurance needs are? Avoid an expensive or even tragic mistake by determining exactly what would be the right level of insurance for you. Only you fully understand all the relevant factors based on your personal circumstances, so go into the market already knowing what you'll need.

• Know the Market

With car insurance it pays to shop around. Only a little effort is required to compare and contrast prices between companies. It is well worth the extra time to determine who is selling what for what price, thereby making sure that you pay no more for car insurance than you absolutely have to.

Most people understand that auto insurance is essential. As per the Insurance Information Institute, the average driver in the USA spends $850 annually on their car insurance only. However, no one likes to pay too much for their auto insurance. To ensure that you are not spending more than necessary, you need to make your choice cleverly. Following are some tips for saving money on your auto insurance.

Increase Your Deductible

You can cut down your premium costs quickly and easily by increasing your deductible. The premium prices charged by auto insurance companies are higher for low deductibles. If you raise your deductible, then you will have to pay a higher amount of money from your own pocket in case an accident occurs. However, a small rise in your deductible could result in considerable savings on your insurance premiums.

Consider the Value of Your Vehicle

Auto insurance companies don’t pay more money in repairs than the value of the insured vehicle. Therefore, if you drive an old car that is worth just a couple of thousand dollars, then you should think about dropping the collision coverage from your policy, particularly, when you take your deductible into account.

Compare Different Quotes

Get the quotes from various companies and compare them with your existing policy periodically to ensure that you are not paying more. Different insurance companies determine their premium rates differently. Getting quotes from several companies will help you to find out the best deal that suits your needs and budget.

Group Insurance

Many car insurance companies offer lower premiums to people who apply for coverage under a group plan. If you’re a member of a business group, trade association or any other group, then you should check with them to find if they provide an auto insurance plan with low premiums.

Consider Getting Different Policies from a Single Company

Purchasing your homeowners insurance and auto insurance from one company may save you a significant amount in premium costs on one or both insurances.

Multi Car Insurance

Most auto insurance companies offer discount on premium rates if you insure more than one vehicle from them.

Determine If You are Eligible for Any Discounts

As an auto insurance policy holder you may be eligible for different types of discounts. Many auto insurance companies offer discounts for long-time policy holders, accident-free driving records and theft-protection devices installed in your car. Ask your insurance provider to make sure you’re not missing out on any of these discounts.

Here are some pointers on things you need to review before shopping for a new auto insurance policy.

With increasing costs of living and unpredictable job scenario, it becomes imperative to save on monthly bills. It is thus important to look for ways in which you can reduce your car insurance premium. Instead of going to just one auto insurance company and signing up, it is better to go to an independent car insurance site and go through various quotes from different vendors at one single place.

1. Features of a low cost quality car insurance – You can get a budget car insurance with enough coverage if you have a good driving record and a good credit rating. Check with your existing insurance company that covers you on other aspects like life insurance, if they have something better for you. Also, you can get discounts on car insurance if you have taken enough precautions to minimize risk like for instance, anti-theft device, airbags in the car etc.

Contact the DMV to find out if your car driving track record is spotless. If there are some issues, find out if you can get them sorted. Contact three of the top credit rating agencies and find out your credit report, if there are discrepancies, you can get them checked as well. The bottom line is if your credit rating and driving record is good, then you can get car insurance premium at an affordable price.

2. Types of car insurance – The most comprehensive type of car insurance is the comprehensive insurance. In case, you are financing your car, this is the type of car insurance you should go for. Increasing the deductible can lower the rate of the insurance. The second type of auto insurance is called the ‘Fire and Theft Insurance’. One way to get this at a lower cost is to own a low end car which is less likely to be stolen. Then finally, there is a third type of auto insurance called ‘Third Party’ which covers damage caused to property, car or person by the insured. This is also the cheapest type of car insurance.

3. Grounds in which you can get low cost auto insurance – The less expensive is your car, the lower is the insurance premium that you pay. Also, the profile of the driver, the area in which you drive the car, the age of the driver also affects the premium cost. If you want to go for cheap auto insurance, having cars with four or six cylinders, domestic vehicles, minivans and four-door cars can tilt the decision to your advantage. Also, you can get multi-vehicle discount if you own more than one car.

4. Be wary of the ‘catch’ in various auto insurance deals- When you shop for various car insurance deals online, you may come across flattering offers and add-ons like roadside assistance, rental car provisions etc. But they do come at a cost and there may be hidden fees or a short life span. For instance, the reduced insurance rate may be for an initial period of six months, after which the cost may rise as you factor in these add-ons. So do not be shy to ask questions and go through the fine print carefully before you sign up for auto insurance.