Car Insurance Savings Tip - 3

Car insurance savings is a subject of great interest to many. If for nothing else, it results in savings of sum handsome amounts over a reasonable period of time. I've been particularly interested in it and will share yet another tip in this article...

Be careful the car you buy for several reasons. It could be the difference between paying so much more than your friend.

There are cars that are branded very expensive to insure by insurance companies. Interestingly, you could still find comparable cars that belong to a far less expensive group. Why is this so?

There are cars that have proven to cost a lot to repair. When you make claims that involve repairs or replacements, it usually costs insurance companies a lot more to fix such cars than comparable cars.

There are also cars that have a very high accident record. Yes, you may be the most careful driver in the world. But how safe do insurance companies rate your car? If they think that it's a car that ranks quite low in safety, you'll get to pay a lot more.

Cars that have a high theft rate also fall into this category.

Apart from these, there are very obvious reasons why some cars will cost a lot more. Just to ensure I don't leave anything out, I'll mention them.

Classics will generally cost you a lot more. High end and very sophisticated cars will also cost you a lot more. Cars with big engines will cost much more. So, if you fancy any or all of this you must be willing to make the sacrifice in insuring them.

However, there's a way you can lower your premium despite the car involved.

Would you like to learn how? Click the following links to get an understanding of how you can save up to $1000...

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Vital car insurance tips

Car Insurance Savings Tip - 2

You can do a few things that will go a long way in reducing how much you pay as your car insurance premium. In this article I'll dwell on one that has to do with your car's age, current value and fair market value at the point of making a claim.

If you have an old car (This does not refer to classics -- Just plain old cars) then make sure you do not take either a collision or comprehensive cover for it. It won't be worth it one bit. Here's why...

Like all things in insurance, your premium is calculated based on the value of your car at the time of purchase. However, if you file a claim, your compensation will be based on its fair market value. Furthermore, cars have groupings that determine how much you'll be billed as premium. So let's say your car was worth $20,000 at the time of purchase. If by the time you file a claim its fair market value is $3,000, that, and not the purchase value will be the basis of calculating your compensation.

And, if your car unfortunately belongs to a grouping of cars that are very expensive to insure, your premium will shoot through the roof. You guessed right: Your compensation if you file a claim will still be based on its current market value.

If you decide to lower your premium by increasing your deductible (That is the amount you must pay before an insurance company pays its part), then you'll end up paying a high deductible thereby further lowering what your insurance company will compensate you.

So who gains in this scenario? It’s certainly not you but your car insurance company. Am I trying to run down insurance companies? NO! This is standard practice. However, I an ensuring you understand where your bread is better buttered.

Get a third party only insurance unless the law in your area demands something higher, period. This is well-worth it.

Finally, in getting your third party only policy there are a few things you'd have to bear in mind.

Click the following links to ensure you save several hundred dollars (and, perhaps, over $1000) in your car insurance...

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Vital car insurance tips

Cut Your Car Insurance Cost in Half

Want to know how to cut your car insurance cost in half? Here's a simple, five-step method that will get you big discounts on your car insurance.

1. Comparison Shop

Premiums for the same car insurance can vary as much as $1,000 or more between companies, so the first place to start saving money on your insurance is to comparison shop.

There are a number of insurance comparison websites where you can get auto insurance quotes from different companies. Get at least three quotes, compare costs, then choose the company with the best rate.

Some of the better sites let you talk to an insurance professional through an online chat service or a toll-free telephone service so you can get answers to your car insurance questions. (See link below.)

2. Raise Your Deductible

Raising your deductible - the amount you pay on a claim before your insurance company pays - can save you 15% to 30% on you premium. It will also prevent you from filing too many claims which can cause an insurance company to cancel your insurance.

3. Drop Your Collision and Comprehensive Coverage

Collision coverage pays for repairs to your car caused by an accident with another car or an object. Comprehensive coverage pays for damage to you car from theft, vandalism, fire, hail, and other causes.

If you drive an older car that's worth less than the cost of your insurance plus the deductible, it's probably not worth having comprehensive and collision coverage. Dropping your collision and comprehensive coverage can save you 15% to 30%.

4. Bundle Your Insurance

Insuring both your car and your home with the same company can save you 10% to 15% on your total premium. A side benefit is that you'll only have one company and one agent to deal with.

5. Request Discounts

Insurance companies offer a variety of discounts - low mileage discounts, safety and security features discounts, safe driver discounts, etc. Before you purchase a car insurance policy, always ask for all the discounts that are available and take advantage of them.

Car Insurance Savings Tip -1

There are many tips you can pick here and there on reducing what you pay in your car insurance. Some will result in savings of a few dollars; others could save you a few hundred dollars. In this article, I'll dwell on one that could save you a few hundred dollars depending on how you apply it...

Your premium is determined by a lot of factors. Among these factors is how much you pay as a deductible. I like ensuring everyone understands every term used in my articles due to differences in terms across locations. So, let's define the term "deductible."

When you file a claim, the insurance company expects you to contribute or pay a certain amount before they'll pay out the agreed compensation. This amount is called your deductible. If you agree to pay a high deductible, you'll get a lower premium. If for example, you increase your deductible from $400 to $1000; your premium might be lowered by as much 30%. Depending on your circumstance, this could mean savings of a hundred dollars or much more.

You must take some time to think this through before making a decision. If what you'll get as savings justifies the one time deductible (However high it is), then you're better off going for it. However, if you think otherwise then you have to go with what's best for you.

After doing all this, you must take your time to understand the foundational process for realizing huge savings in car insurance and certain facts that you must not ignore about car insurance quotes and comparison sites.

Would you like to get these? For important facts about car insurance quotes and comparison sites click this link and click here: Car insurance savings, for the foundational process that could result in savings of up to $1000.