Category Archives: Car Insurance

7 Ultimate Rules to save money on Insurance

<img src="Save money.jpg" alt="Save money" width="138" height="92">
Be wise and save money on insurance

Save money on insurance and avoid making serious mistakes when you shop for insurance policies with these 7 rules as a guide.

Rule 1: Financial Risks

Only buy insurance for financial risks you cannot manage on your own. Don’t handle insurance as a way to cover any or all losses no matter how small or insignificant. This is a waste of money. Insuring your home with homeowners insurance is a good choice, but taking out expensive, comprehensive insurance for a very old car is a waste of money.

<img src="old grey car.jpg" alt="Old grey car" width="134" height="94">
Get Third Party only insurance for old cars

Rule 2: Shop Around

Get a few insurance quotes from different Insurance Companies. Most Insurance Companies provide an online quote service, as well as a telephonic quote service via state of the art call centers. Do not immediately accept the first or cheapest quote. Make sure that the policy covers your lifestyle and individual needs.   

Companies that sell directly to the client will also save you additional money for a middleman or broker. Have a look at the benefits the different companies offer, as well as any low-cost Additional Options provided to enhance your basic policy.

<img src="woman and computer.jpg" alt="Woman and computer" width="130" height="97">
Shop around online for insurance quotes

Rule 3: Never Lie on a Policy Application

Your policy can be cancelled if it is discovered that you have given incorrect information.

Health, life, and disability insurers run severe background checks on applicants through the Medical Information Bureau, so you can get caught when providing inaccurate information.

<img src="No cheating.jpg" alt="No cheating" width="113" height="113">
Do not give inaccurate information on your insurance application form

Rule 4: Don’t Buy Specific-Risk Policies

Your insurance should provide the broadest coverage you can get. Buying insurance cover against specific illnesses like cancer defeats the purpose of having an insurance policy. If you have ulcers or other medical issues, your cancer insurance will not help you. A much safer option will be to get comprehensive medical coverage instead.

<img src="man fly with umbrella.jpg" alt="Man fly with umbrella" width="142" height="89">
Broad Cover is safer than Specific Cover

Rule 5: Never Cancel One Policy until You Have a Replacement Policy in Place

You will be uninsured for however long it takes to get a new policy. And if disaster strikes during this period, you could be financially ruined. This rule applies to everyone, but especially for the elderly, since older folks sometimes have trouble getting health and life insurance. Please keep this important information in mind!

<img src="man pulling his hair.jpg" alt="Man pulling his hair" width="77" height="74">
Don’t be caught unawares

Rule 6: Get a High Deductible or Excess

You save money by having insurance policies with high Excess or Deductibles. The premium for high-deductible policies is always lower. Not only that, but you save yourself all the trouble of filing a claim and needing to haggle with insurance company representatives if you have a high deductible and you don’t need to make as many claims.

Lately, most Insurance Companies are offering to pay cash back to policy holders after 4 or more years remaining claim-free. This should be an additional incentive not to claim for any and every mishap.

Note: The more you claim, the more inflated your premiums will become, due toe being viewed as high-risk by your insurance company.

<img src="money.jpg" alt="Money" width="60" height="60">
Don’t claim when you don’t have to. They’re watching …

Rule 7: Rainy Day Account

While you can save money on your insurance premiums by following the rules mentioned earlier, it’s probably a big mistake to use that money for, say, a trip to Hawaii. Instead, use any savings to build a nice-sized rainy day fund that you can draw on to pay deductibles. A big enough rainy day fund can cover both periods of unemployment and your insurance deductibles.

<img src="pink piggybank.jpg" alt="Pink piggybank" width="150" height="150">
Save for a rainy day.

Keep these guidelines in mind and you may save more money than you expect on the long run!


Finding the best Car Insurance Company

The Car Insurance Industry – Who is the best?

<img src="woman with headphones.jpg" alt="Woman with headphones" width="150" height="81">
Do you want this kind of service?

Selecting the best company for car insurance sounds rather impossible, right? You can’t rely on an agent to help you, as he is either representing several companies or one company exclusively. Or can you? He has direct ties with your community after all and is easily accessible.

Many companies don’t use agents to market their products but use the internet or telephone instead. Perhaps you can ask your neighbor, but the best for him is not necessarily best for you. Your choice of company will be determined by time and past experience. 

<img src="smiley phoney operators.jpg" alt="Smiley phone operators" width="150" height="78">
This is the kind of service you deserve!

Consider these Car Insurance factors

1.    Insurance Agents – For the person who wants personal contact and advice, the Insurance agent is of great value. Insurance agents have been the most successful way of distributing car insurance products. 

2.    Direct Distributor – These companies serve you via mail, the internet and call centers. They give instant car insurance quotes and hassle free purchases. They claim to have lower rates as the middle man is eliminated. 

When you have decided how you want to be served, you can begin the search for your most suitable Car Insurance Company. Find online rating guides to help you.



How statistics determine your insurance premiums

<img src="statistics.jpg" alt="Statistics" width="150" height="128">
Statistics determine your insurance premiums

Statistics reveal risk and insurance premiums to be charged 

How well you know your Insurance agent has no effect on the terms of the policy you purchase from him as it used to be in days gone by.

In the days before computers, auto insurance was personal and a policy was individual. Your agent could call in some favors from his colleague in head office to obtain better insurance premiums for you. It was a given that male drivers under 25 paid high premiums and young females were considered as lower risk and charged less.   

Nowadays, insurance companies have large databases containing accident and claims records. By calculations, these records will reveal the type of person likely to be a safe driver and the one likely to be an accident risk.

Generally called ‘Black Box’ technology, it provides the understanding of the background and conduct of people, they think should pay higher insurance premiums. For example, people with less responsibility are actually of higher risk than those with higher liability.  Statistics have shown that the bearers of bad credit scores are more likely to be involved in accidents.

<img src="Looking Glass.jpg" alt="Looking glass" width="113" height="113">
Know how your insurance premiums are determined

How are auto insurance premiums determined? 

It is a toss of the dice between staying competitive by comparison and making the best profit for shareholders. Now that they have ‘Black Box’ technology, auto insurance companies are scrutinizing every driver. Credit score, career, past record, even the city you live in have an influence on your rates.

Selecting low limits of liability has proven you to be higher risk than those who select higher limits. That means you could lower your auto insurance premiums if you raise your liability limits. 

In some cases the new ‘Black Box’ technology reduced rates by up to 20% compared to companies that aren’t using it. Unfortunately, credit scores play a part in ALL auto insurance rating. A bad credit score results in higher insurance premiums. You won’t have the advantage of ‘discounts’ or ‘loyal customer’ credits any more. You will be rated right down to your shoe size, counted amongst drivers like you, and charged consequently.