How to save the most money on your car insurance

Wednesday, July 28th, 2010 | auto Insurance | No Comments

So you’re shopping around for auto insurance. What do you need to know? Well, there are lots of ways – at least 11 – that you can save money. Many of these money-saving ideas may apply to you.

1. One Insurer, Multiple Policies – Do you have a homeowners or renters insurance policy? If so, is it with the same insurance company that provides your auto insurance? If the answer is no, you’re paying too much – for both policies. Almost every insurance company that sells auto insurance wants its policyholders to also buy homeowners or renters insurance from that company.

   These insurers offer so-called multi-policy discounts. Usually, these discounts are at least 10% and some insurers apply the discounts to both the auto and the homeowners/renters policy.

   Tip.  Talk to your agent about multi-policy discounts.

2. Good Driver, Good Price – It’s no secret that the better your driving record, the less you will pay for auto insurance. But did you know that most people qualify as “good drivers” and are eligible for discounted premiums? Some good drivers pay a lot more than others, however.

   Many auto insurers are actually a collection of several insurance companies in which each caters to a certain type of driver. The worst drivers go in one company, the best in another, and a lot of people wind up in one of the middle companies.

   These middle people pay less than the worst drivers, but more than the best. The thing is, many of these middle people have driving records that are just as good as those who are insured by the companies that offer the lowest rates. Yet these middle people are paying more. Why?

   The usual reason is that they don’t know any better. No one told them which insurance company in the group had the best prices. And, odds are, no one even told them there was a group of insurance companies. If you have a spotless driving record, there’s no reason you shouldn’t be paying the lowest price a group of insurance companies has to offer.

   * Tip.  Make sure you’re getting the best discount for your driving record.  Talk to your agent.  And remember, be a safe driver.  It will save you money.

3. The Beauty of the Bus (or Other Mass Transit) – Do you drive to and from work? If you do, you are literally paying a premium to do so. Insurance companies charge you significantly higher premiums if you drive to work. And, the longer your commute (in miles, not minutes), the higher the premium.

   * Tip.   Some drivers should consider mass transit. Yes, there’s a price there, too. But you will reap the savings of gas and lower insurance costs.

4. Low Mileage, Low Price – On average, people drive 1,000 to 1,250 miles a month. That is what insurance companies consider average use.
   
   * Tip.   If you drive less than the average, you could be eligible for low-mileage discounts, which some insurers offer.
5. High-Profile, High-Cost – The type of car you drive is a major factor in what you pay for insurance. Is your vehicle a magnet for thieves? Is it more expensive to repair than most cars? If the answer to either of the last two questions is yes, you’re paying more than the average car owner for insurance.

   * Note.  To get detailed information on your vehicle(s) – or a vehicle you’re thinking of buying – write to the Insurance Institute for Highway Safety at 1005 North Glebe Rd., Arlington, VA 22201 and ask for the “Highway Loss Data Chart.”

6. Raise Your Deductible – The deductible is the amount you pay before insurance kicks in if you have a claim. For example, if you have a $250 deductible and you have an accident in which your car sustains $1,000 in damage, you pay the first $250 and your insurer pays the balance, $750. The lower the deductible you choose, the more you pay in premiums. If you have assets, you can probably afford to absorb at least $250 – $500 if you have a claim.

   * Tip.  If it’s been years since you’ve had an accident, you may be better off raising your deductible and paying less each year for insurance.

7. Drop Unnecessary Coverages – Let’s say you have an older car, one not worth very much. There’s really little point in having collision and comprehensive coverages. You don’t have much to protect. Remember, too, that you have to subtract your deductible from any potential payout you might get.
   
   * Tip.  As a general rule, any car worth less than $1,000 shouldn’t have collision and comprehensive coverage. Between the deductible and the extra expense of these coverages, the cost is probably greater than the benefit. How much is your car worth? An auto dealer can tell you, or there are plenty of books that have values of vehicles going back many, many years.
8. Discounts, Discounts, Discounts – Auto insurance companies offer several discounts for a variety of reasons. The car has automatic seat beats, air bags, anti-lock brakes, anti-theft devices, etc. The driver is a good student, which is especially valuable if you have teenage children who will be on your policy.
   * Tip.  Make sure you are taking advantage of all the discounts available to you!
9. Taking the Defensive – Many insurance companies also offer discounts to those who have recently taken defensive driving courses.
10. Low-Cost and High-Cost Areas – Are you planning to move? If you are, you should take into account the cost of insurance. Generally, the more urban the area, the higher the premium. The costs can vary even within a community.
    
    * Fact.  Rates can vary greatly from state to state. If you’re living in New Jersey, Massachusetts or Hawaii, you’re paying several times more, on average, than you might in North Dakota, South Dakota or Idaho.
11. Credit Where Credit Is (Or Is Not) Due – Is your credit record better than your driving record? If you have a good credit record, you could be eligible for discounted premiums from several auto insurance companies.

* Fact. Many insurers now use your credit history as a major factor in determining what to charge you for auto insurance. In some cases, with some companies, you could save money by shifting your business to an insurer that uses credit as a rating factor – even if you have a so-so or poor driving record. There is another side to this coin. If you have a poor credit history, you could save money by moving your auto insurance to a company that does not use credit as a rating factor. Many insurers do not use credit as a factor.

* Tip.  Regardless of your credit status, you should talk to your agent to make sure you have the best situation given your credit record, good or bad.

Call 205 640 5892 or Visit www.shubertinsurance.com

Teenage Drivers

Wednesday, June 2nd, 2010 | auto Insurance | 1 Comment

“Teenage Drivers”

Inexperience and immaturity make it much more likely that a teenage driver will have an accident than an adult driver. A driver in the age group of 16-19 is FOUR times more likely to have an accident than an older adult and TWICE as likely to die in an auto accident (in some states, a 16-year-old is TWENTY times more likely to have an accident than an older adult). A 16-year-old is THREE times more likely to have an accident than someone 18-19 years old. OVER ONE-THIRD of all deaths in the 16-19 year old range are due to auto accidents.

From an insurance standpoint, it is more expensive if your child has a vehicle driven primarily by them. Consider not getting your child his/her own auto and letting him/her drive a family car. If you insist on providing him/her with an auto, consider buying an inexpensive, but reliable, used car. Anticipate at least one or more fender benders. In general, you are better off not buying collision insurance and reporting these minor claims…an increased claims frequency can result in higher premiums or nonrenewal.

 Unless it is impossible, do not insure your child’s auto under a separate policy. It is almost always advantageous, from a pricing and coverage standpoint, to have your child’s auto on your policy. In addition, since statistics show conclusively that teenagers have a higher claims frequency and severity, make sure you have a personal umbrella policy with at least a $1 million limit. The cost can be as low as $150, but could be as high as $300 or more. Still, it’s a bargain to protect yourself and your assets from catastrophic loss.

 Have your child complete a driver’s education program. That can reduce your premium by 10% or more.

 If applicable, ask for a “good student” discount. If your child’s grade point average is a “B” or better, you could get a discount of 10-20% or more.

MOST IMPORTANT, practice sound loss control. When dealing with teenage drivers, preventing accidents is more important than relying on insurance to fix things. Insurance can replace your vehicles and pay for broken bones, but it can’t replace the most important thing in life…your child. So, consider the following:

 Talk seriously to your child about the dangers of driving, including driving under the influence, horseplay, etc. Use statistics from web sites such as www.iii.org to impress upon them how dangerous driving can be.

 Consider prohibiting your teen from transporting more than one passenger…some state graduated licensing laws may require this too. Reckless behavior is directly proportional to the number of teens in a vehicle. By limiting the number of passengers, you reduce the chance that peer pressure and dares might result in your child taking foolhardy chances.

Consider having your child sign a “contract” similar to the one at http://www.parentingteendrivers.com ― if anything, it will get his/her attention.

 Driving is a privilege, not a right. If your child violates your rules or the rules of the road, take that privilege away from them until they can demonstrate that they understand the seriousness of this responsibility and the possible consequences of their actions.

 Copyright 2002 by William C. Wilson, Jr. Reprinted with permission.

NOTE: Policy coverages and circumstances can change at any time, so the information above may not be accurate at the time of reprinting or subsequently to that time. IIABA does not assume and has no responsibility for liability or damage which may result from the use of any of this information. The most current, up to date version of this article can be found at IIABA’s Virtual University at http://vu.iiaa.net.

Save money on car insurance in Alabama

Monday, May 24th, 2010 | auto Insurance | No Comments

When it comes to car insurance, a little research ˖ the right questions = money in your pocket.

Rates can differ widely from company to company, so it pays to shop around. Independent insurance agents represent more than one insurance company, so they can compare multiple carriers and policies to find the one that’s right for you.

In addition to shopping around, there are other steps you can take to lower your insurance rate.

Is your policy up to date? If you’ve moved, gotten married or if it has been at least three years since your last driving violation, check with your independent insurance agent or broker. You may be eligible for a rate reduction.

Is your coverage right for your car? Owners of older or inexpensive cars should consider dropping comprehensive and collision coverages. That can often save hundreds of dollars each year.

Know before you buy. Before you buy a new car, research what it will cost to insure. Generally, smaller cars with lower horsepower are less expensive to insure.

Do you carry excess coverage? Many auto insurers give you the option to add rental coverage to your policy, which pays for a rental car while your vehicle is being repaired. While conditions and costs vary from company to company, it may be unnecessary if you can find other transportation.

Raise your deductible. According to the Insurance Information Institute, raising your deductible from $200 to $500 could reduce your Collision and Comprehensive costs by 15 to 20 percent. Your agent can show you how raising your deductible can lower your premium.

Do you qualify for any discounts? Ask your independent agent whether any of the carriers he or she represents offer reduced premiums for certain car features like anti-lock brakes.

Are your policies all “bundled” with the same company? This may not be best for you. Your independent agent is uniquely qualified to quote your policies with “best-in-class” carriers that offer specialized coverages and services. “Unbundling” your policies might save you a bundle!

To learn more, talk to 

Shon Messer, MSFS,RFC

Senior Partner/Your lifetime Insurance Partner

http://www.shubertinsurance.com

Phone: 205-640-5892

An independent approach to car insurance

Saturday, February 6th, 2010 | auto Insurance | 1 Comment

Many consumers are finding they can drive down the cost of car insurance—and the time it takes to select the right policy—by contacting an independent insurance agent or broker.

Because they represent many different insurance companies, independent agents have the flexibility to review rates and coverage from competing carriers and get you the best deal. Plus, they can offer affordable protection for your home, business and other assets. So rather than spending hours gathering quotes from various companies, you can get it done with one simple call or visit to your independent agent or broker.

If you’re thinking of contacting an independent agent, here are a few things to consider:

To learn more or to find an
independent agent or broker,
visit progressiveagent.com.

Did You Know?
Bundling your homeowner’s policy with your car insurance doesn’t always save you money. It may be wise to have an independent agent look at separating the policies. The discount you received for bundling may be outweighed by a lower competitive price. www.shubertinsurance.com

Auto Insurance Made Easy

Wednesday, February 3rd, 2010 | auto Insurance | 1 Comment

Liability — Liability covers bodily injury and property damage (BI/PD). This covers your legal liability, up to the dollar limits you select, for damages caused to others in a covered vehicle accident. In most states today, liability insurance is mandatory.

Under BI/PD, your insurance company pays for damages to an injured person and for property damage that you are legally obligated to pay as a result of an accident. If your policy covers you in the event you’re sued after an accident, your insurance company will pay for a lawyer to defend you.

Liability limits generally appear as three numbers, for example, 25/50/25 or 100/300/100. The first number refers to the maximum amount, in thousands, that your insurance company is obligated to pay for bodily injury per person. The second number is the maximum that would be paid out for bodily injury per claim and the third number represents the maximum amount your insurance company is obligated to pay for property damage you cause.

Collision — When you buy collision coverage, your insurance company pays for damages if your vehicle collides with another vehicle or object. Collision coverage involves a deductible amount you select when you purchase your policy. This amount is what you are required to pay before your insurance company starts picking up the tab. Remember, the deductible amount is the amount you need to pay in the event of a claim.

Comprehensive — Comprehensive covers damage caused by events other than a car collision — such as fire, theft, vandalism, hail or flood. It also covers damage caused by your vehicle colliding with an animal. And if your car is stolen, it will cover the cost of a rental, subject to a daily limit. Like collision coverage, a deductible usually applies.

Medical Coverage — Depending on the state in which you live, you may have available to you Medical Payments coverage or Personal Injury Protection (PIP) coverage. While these both work differently, they provide coverage for medical care provided to you as a result of a car accident.

An independent insurance agent can help you determine the price, coverage and service that best meets your needs.