Auto Insurance Bodily Injury (BI) Liability and Property Damage (PD) coverage is Legally required in most states today. (BI & PD) Most people understand that they need BI & PD, but they have no idea how to determine how much coverage they need.

Try this simple question: What if your car was involved in an auto accident tonight where heaven forbid, someone else was injured or killed? Remember, everything you own is in the back seat of the car with you and is at risk in a lawsuit! So, what do you think their family would sue you for? $15,000? $25,000? $100,000 or even maybe a Million dollars! Where would you get the money to pay them?

Perhaps the Equity in your Home would help? How about your Savings and/or Investments? You could even have up to 25% of your wages attached to pay the award in most states! Are you prepared to sacrifice everything you own to pay an award due to this accident? If not, read on for how to choose the auto insurance coverage you need.

2: You and Your Family:

Now let’s turn the above accident around. For some unfortunate reason, you or a loved one is the one who is injured or killed in an auto accident. Where would you get the money if the person who hit you did not have auto insurance or not enough auto insurance? Medical bills can be covered if you have health insurance. But health insurance doesn’t cover loss of life, pain & suffering or permanent disability.

Maybe you have a life insurance policy through your employer or your own individual life policy. Is the benefit amount sufficient to cover your family if your loved one is killed? But even if you have life insurance, what pays for the misery, the pain & suffering, maybe the fact you or a loved one can’t walk or use their arms again?

You might have a disability insurance policy through your work if you’re lucky or had good financial advice. But disability insurance doesn’t pay for loss of life, pain & suffering, permanent loss of your legs, arm or hand.

The only coverage that pays for these things is a part of an auto insurance policy known as Un/Under-insured motorist coverage. You can only buy as much coverage here as you have in Liability coverage. Your auto insurance agent should be able to help you determine the exact amount you need.

3: Your Car

Comprehensive and Collision Coverage are the third part of an auto insurance policy and are sometimes referred to as “Full coverage.” Basically the difference is this: If you run into the tree you are covered by Collision coverage. If the tree runs into you (hypothetically of course), then you are covered by comprehensive coverage. Comprehensive also covers broken windshields, fire, theft and vandalism. The higher deductible (risk) you take here, the lower the premium. Use the savings here to purchase higher limits in the coverages that protect your assets and your family.

The bottom line to determining proper auto insurance coverage is, of course, the money available in your household budget. An excellent place to start in determining the proper auto insurance coverage for your family is to meet with your local auto insurance agent.

Most cut-rate companies concern themselves with one thing only: Price. Tell them what coverage you have and they’ll see if they can give you the same coverage for less. You become the insurance professional. If this is the only need you have then that is ok. If not, you need to seek the advice of a professional to help you determine the proper amount of coverage you need and how best to accomplish it.

1. Drive less and earn a discount
If you drive less than 7,500 miles per year, you may qualify for a low-mileage discount on your auto insurance. And, some car insurance companies offer a commuter discount if you use public transportation during the week.

2. Don't use your car for business purposes
Some insurance companies will add a "business use surcharge" or increase your car insurance premium as your annual mileage increases. But, if you must use your car for business, be sure to tell your company or agent, so that your daily business travel is covered.

3. Increase your deductible
You might reduce your annual auto insurance premium by as much as 10 to 15% if you increase your deductible from $250 to $500. But, remember that you'll be required to pay the larger deductible upfront if you have an accident.

4. Keep an eye on your credit report
Your credit history is one of many "risk factors" that most auto insurance companies evaluate when setting rates (in states where it's permissible by law). Paying your bills on time and maintaining a solid credit history will help keep your auto and home insurance rates lower.

5. Drive safely
You may be eligible for a price break on your car insurance policy if you have no accidents or traffic violations for a specified period (usually three years – but a few companies will look back five years). Even a single speeding ticket can increase your auto insurance rates 5 to 10% depending on your state.

6. Buy a low-profile car
Cars are rated on a risk scale for auto insurance purposes. In general, sports cars and other high-performance, flashy vehicles are classified as higher risks because they are common targets for thieves and vandals, and because statistically, the people who own them tend to drive more recklessly.

7. Move
If you live in a rural community with little crime and traffic congestion, your insurance premium will generally be lower than if you live in an urban area where your car is more likely to be stolen, vandalized, or involved in an accident. We love city life – but sadly it costs more for car insurance.

8. Keep your car in a garage
Cars parked in garages are less likely to be stolen, vandalized, or struck by other vehicles. Using a garage to store your car may get you to a slight auto insurance premium reduction.

9. Install safety or anti-theft devices
Car insurance companies offer a variety of discounts for anti-lock brakes, automatic seat belts, and airbags. Similarly, anti-theft devices such as car alarms and tracking systems (e.g., LoJack®) may also get you an insurance discount because they reduce the chances of your car being stolen or vandalized.

10. Look for discounts
You may receive a discount from your auto insurance company if you buy more than one type of insurance through that same company (e.g., auto and homeowner's). A discount may also apply to your auto insurance if you insure multiple cars under the same policy or with the same company. In addition, you can earn money-saving discounts for taking a defensive driving course, being a AAA member or staying with the same auto insurance company for a number of years. These discounts vary by company.

10+ Shop around
OK, it might go without saying, but your current car insurance company might not be the best one for you in the future! We recommend researching your options 30 to 45 days before your current policy is set to renew, especially if you have shopped recently.

Discount Auto Insurance Tips Revealed by Agent

Discount Auto Insurance Tips Revealed by Agent

The techniques that follow will increase your chances of discovering discount auto insurance. Some of these ideas you may be able to use other you won't, but by putting any of them to use will help.

I. Get Multiple Quotes: This alone can be your largest money saver. Each insurance corporation has an individual rating system so check as many companies as possible.

II. Pay For Your Policy In Full: This will usually lead to the cheapest policy for you. Many insurance corporations add surcharges for paying monthly, bi-monthly or even quarterly. So if it is possible try to pay in one or two bills.

III. Take Part Of EFT: Electronic Funds Transfer will help you stay away from surcharges that insurance companies charge for mailing out a bill to you every month.

IV. Purchase Your Policy Early: Some companies give out auto insurance discounts if you acquire your policy 7 days prior to when it begins.

V. Credit Scoring: Most large insurance organizations have gone to insurance credit scoring. This takes many more factors into consideration than just your credit score, but your score still makes up a big chunk of it. If you can increase your credit score you will generally pay less. There are organizations that if you refuse to give your social security number they then can't run a credit analysis. Then they will give you a general rate which might be better if you know you have lousy credit.

VI. Take A Class On Drivers Training: The class isn't usually free but you get an auto insurance discount for up to 3 years. You can take the class again after the three years and the cost of the class is usually less than your first year discount associated with it.

VII. Request A Higher Collision Deductible: You will take on more risk by doing this but can easily save one hundred dollars by going from a $500 to $1000 deductible. It's not recommended to increase your comprehensive deductible since it would be a very small savings.

VIII. Ask About Other Discounts: There are multiple discounts that you might not be receiving. A multiple car, multiple policy, good driver, good student, safety device and many more, so ask to make sure you are getting all the discounts available.

With the rising costs of auto insurance policies, consumers are on the lookout for lower auto insurance rates. But the fact is, finding cheap auto insurance rates isn't enough. But not to worry, here are ten ways to save on your auto insurance policy:

1. Shop Around for auto insurance rates

Without a doubt, shopping around is the best way save money. All it takes is a few phone calls or better yet, an Internet connection to compare auto insurance rates. And believe it or not, the price difference alone may be big.

2. Buy a "low-profile" auto

Consider this: buying an expensive auto will certainly increase your risk rating. Factors such as theft and repair costs are two common factors that will lead to higher auto insurance rates. So if you want lower auto insurance rates, go for an auto that won't attract attention and meanwhile has a cheap sticker price.

3. Increase Your Deductibles

Increasing your deductibles is another good way to get lower auto insurance rates. Choose the highest deductible you can afford while keeping in mind to set aside money for it. Increasing your deductible by a few hundred dollars will decrease your auto insurance premium significantly.

4. Take Advantage of Low-mileage Discounts

Many auto insurance companies offer discounts if your mileage is under a certain limit. Consider using public transportation occasionally to limit your driving. It also helps to keep track of your mileage consistently.

5. Reduce Coverages on Older Autos

Go for practicality. If your auto's value is much lower than your insurance premium, you should consider dropping certain coverages such as the collision and/or comprehensive coverage. This should lower your auto insurance premiums.

6. Install Safety And Anti-Theft Devices

Most auto insurance companies have policies that grant discounts for autos with safety features such as airbags, anti-lock brakes and automatic seatbelts. Likewise, autos with anti-theft devices installed such as an auto alarm and/or a tracking system will also get lower auto insurance rates. This is due to the fact that additional security helps prevent theft thereby, reducing the risk rating.

7. Verify Your Credit History

Auto insurance companies are strongly bent on checking your credit history. If you boast a solid credit record, then chances are, you will be offered lower auto insurance rates than usual. But keep in mind, you must correct any credit discrepancies you have on your credit reports to ensure that all your financial information is accurate.

8. Ask about Multi-policy/Multi-family Discounts

Buying more than one insurance policy from the same company entitles you to discounts. For example, if you insure both your auto and home with one company, they will probably give you a good discount. This is also true for auto insurance, if you insure more than one auto under a single policy or with the same auto insurance company.

9. Inquire about Group Insurance

Some auto insurance companies give discounts to persons who acquire their auto insurance policy from their employers through the use of a group plan. For instance, members of the American Automobile Association (AAA) are given a significant discount. Check with an association that you belong to see if your group is eligible for a discount.

10. Ask for Other Discounts

There are many other opportunities for discounts. This can be as simple as showing proof that you took a defensive driving course and/or having a clean driving record. Also, drivers who are above the age of 50 are qualified for a discount. You will also get a discount if you insure a young driver who is a good student and has taken a driver's education course.

Is there such a thing as really cheap auto insurance? I don’t know how that happens unless you have a really cheap car that you hardly ever drive and nobody in your geographical area has had an accident in the last 20 years. That would drive the rates down significantly. The reality of that all occurring is somewhere between very slim and none. Auto insurance is given its rates by insurance actuaries. They review claims experience in certain geographical areas along with driver age groups to obtain some of their criteria for determining rates. The kind of vehicle that you purchase has a lot to do with rates. Some vehicles have a very high theft rate. It’s just not that simple to come up with a low rate with all of these unknown factors. The logical approach to finding low cost insurance is to gather insurance quotes from several companies and from that you may be able to find the lowest comparative rate.


Rating Factors

1. Geographical Area – You have no control over the driving experience in your own back yard. That still doesn’t negate the fact that your neighbors can affect your rates. The higher frequency of accidents in your area will increase the rates. The severity of accidents will also affect your rate. You will often find higher frequency fender bender accidents in the inner city while the rural areas may have more severe accidents because of higher speeds traveled on the open highways.

2. Vehicle Types – Older vehicles with physical damage are obviously cheaper. Sports cars and expensive sport utility vehicles will increase the rate.

3. Young Driver Discounts – Some companies have discounts for good students with a 3.0 grade point average along with a drivers training discount. When you put the two together it can be significant.

4. Retired Discounts and Mature Driver – Some companies have retirement discounts and mature driver discounts to lower the rates for senior citizens.

These are just some of the many possibilities. Ask about available discounts when shopping for auto insurance. Consider the area in which you live and adjust with the types of vehicles you purchase and how you arrange your coverage. Educate yourself more than you have before and you will help your cause.

Do you know what it means to have full coverage Auto insurance? Having full coverage Auto insurance means you have more than just the minimum Auto insurance to “get by” in your state. With full coverage Auto insurance, you and your car are just that – fully covered and protected against anything that may happen to you or your car.

Obviously full coverage auto insurance is going to cost more than the minimum auto insurance requirements in your state. This is because you are covering everything. Because of the difference in cost, many car owners choose to purchase their state’s minimum car insurance requirements rather than purchase a full coverage auto insurance policy.

Nice solution, but it won’t work for everyone. Some people, for a variety of reasons, are required to purchase full coverage auto insurance.


So, how can you get cheap full coverage auto insurance?

There are a couple of ways to get cheap full coverage auto insurance. First, search, search, search! Don’t just choose the first auto insurance company you find in the yellow pages – use all available resources. This includes newspaper advertisements, classifieds, commercials, billboards, word-of-mouth, and the Internet.

Second, search for a auto insurance company that offers discounts for various reasons. Some car insurance companies offer discounts for good driving records, your age, the kind of car you drive, and the number of cars on your Auto insurance policy. There are also insurance companies that sell more than one kind of insurance policy, and will offer you discounts if you purchase two or more insurance policies from them. For example, you may be able to get cheap full coverage auto insurance if, in addition to purchasing full coverage car insurance, you also purchase a homeowner’s insurance policy from the insurance company, too.

More coverage doesn’t always have to mean more money. Choosing the right company and finding discounts can help you get cheap full coverage car insurance.

Prices for auto insurance can vary by hundreds of dollars between companies. Here are some tips to save money on Auto insurance rates: 

* Install Anti-Theft Devices – Insurance companies often offer discounts of up to 20 percent for drivers who limit their car’s appeal to thieves by installing anti-theft devices.

* Watch Your Credit Report – If you establish and maintain a good credit history, you will be contributing to lower auto insurance quotes. To keep your credit in good standing, pay your bills on time, don’t obtain more credit than you need, and keep your balances low.
* Ask for Discounts – If you belong to a business association, are retired, are a student who earns good grades or takes driver’s education classes, you could be eligible for a better car insurance quote. You may also obtain discounts if you have not had any accidents or moving violations for several years.
* Consider Higher Deductibles – Simply put, deductibles are what you pay if you're in an accident, before your insurance kicks in. If you ask for higher deductibles, you could significantly lower your auto insurance rate.
* Ask about Group Insurance – Ask if you can buy your auto insurance through your employer. Some employers even offer a discount for switching. Your car insurance rate may also benefit from group insurance discounts through professional associations, alumni or business groups.
* Reduce Coverage on Older Cars – If you have an older vehicle that is worth less than 10 times the premium, you should consider dropping collision and/or comprehensive coverage for a better auto insurance quote. Banks and auto dealers can help you establish the value of your vehicle(s).
* Buy Homeowners and Auto Insurance Together – Many insurance companies will offer you a lower auto insurance rate if you buy two or more types of insurance together. You should shop around though, as you might get a better auto insurance rate when buying your coverages from different insurance companies as compared to a multi-policy discount.
* Reduce Your Daily Driving - If you can lower the number of miles you put on your car yearly, some insurance companies will reward you with a lower car insurance quote. This is because the more you drive, the greater the risk that you will have an accident. An easy way to reduce your yearly mileage is to car pool to work.
* Shop Online for the best Auto Insurance Rate – A really easy way to reduce the amount you pay for your premiums is to shop online for car insurance quotes. We can really help you to do this. Through a simple and friendly interface, you can get free online auto insurance quotes from many of the top insurance companies.
* Compare Car Insurance Quotes Online Before Buying Your Next Car – Before you rush out and buy that new car that you’ve had your eye on, it makes sense to quickly compare online auto insurance quotes. When insurance companies calculate what they will charge you, they are assessing car related factors like: The cost to repair it, the car’s sticker price, the safety record, and the likelihood of theft. In order to lower your insurance quote, you may want to compare insurance rates for several different but similar makes and models to insure that the one you have your eye on is not outrageously expensive to insure relative to something quite similar. Also, you might get a lower auto insurance quote if you order anti-theft devices and daytime running lights. To look into the insurance costs of various cars on your list, click here to get started: Car Insurance Rate Online.