Insurance World

With the cost of car insurance becoming more and more of an issue for the average American family, there are increasing numbers of people looking for cheap car insurance. But although it is possible to find cheap car insurance, the question remains, is it worth buying?

Everyone knows that car insurance companies are not all equal. Cheap car insurance is wonderful when paying the bill, but make a mistake on the company you select and you could find that the cheap car insurance policy that you found may turn into a nightmare. Cheap car insurance may not turn out to be so attractive when making a claim.

So if you have found a discount car insurance broker don’t just take the cheapest quote that you get. You need to find out a little about the insurance company that is offering the cheap car insurance rates.

And there’s ways to reduce the cost of your car insurance even with the best of companies. Here are some tips for those looking for cheap car insurance to help reduce the cost of car insurance without compromising other things.

7 Cheap Car Insurance Tips

1.
Look at your deductible amount. This is the amount that you pay first out of any claim. The cost of your policy is directly related to this amount. Many people, particularly those who have had their insurance policy for a long time, have never considered whether they ought to vary their deductible. If you have a good driving record and are prepared to increase the risk of paying a larger amount in the event of a (hopefully unlikely) claim you can save money by increasing your deductible.

2.
Have a look at the type of car you drive. Certain types of cars attract higher car insurance rates. Cars such as sports cars and also certain makes and models that are prime theft candidates cost more to insure. If you are buying a car then find out which makes and models these are before you buy.

3.
Drive carefully. Although it sounds a little trite to say it, your car insurance cost is a factor of your risk profile. You won’t get cheap car insurance if you have had 3 speeding fines and 2 accidents in the last year. These things are all taken into account and you should take care with how you drive. It all adds up onto your bill. There are big safe driver discounts available.

4.
Considering installing safety and anti theft devices in your car. Again these affect your risk profile. If you have a car that is safer and less at risk of theft it should be cheaper to insure. And if you have a car with certain safety devices now check that your insurance company is aware of these, if not tell them.

5.
Look at your policy when it comes to renewal time, don’t just pay. There are some things that you can vary in your policy that will affect the cost. Often there are some things there which duplicate other insurance that you may have that can be eliminated. Be critical, look carefully and ask questions about all these before you renew your policy.

6.
Have a look at who your other insurers are. Many insurers offer a discount for multiple policies. If you insure your house with a certain company then ring them up and find out if they do car insurance. Get a quote from them. Find out what discounts they offer.

7.
Find a good online discount car insurance broker before renewing. The internet is a fabulous resource. Use it. There are all sorts of discount insurance brokers online where you can get fast quotes from a wide range of companies. Don’t just settle for the same company you always use. Car insurance rates vary all the time. Always get comparable quotes before renewing any policy.

So if you’re in the market for cheap car insurance there’s some ideas for you. Don’t just accept that car insurance is always prohibitively expensive, get out there and do something about it.

Every single driver in the U.S. is required to have Car Insurance. And most of drive around confident that we have adequate coverage to protect us should we ever be involved in an accident.

Yet, almost 97% of all drivers are not adequately protected….and don’t even know it. Here’s what I mean.

Let’s say you’re involved in an accident and it’s serious enough that the car is considered a “total loss” by your Insurance Company. Or, maybe your vehicle gets stolen. A few weeks later, you get a check from your Insurance Company.

When you look at the amount, you’re shocked. It’s thousands less than what you owe on your car. How can that be, you ask?

Well, like most, your policy has this short clause buried somewhere in all that legalese -

“In the event of a total loss, the policy holder will receive the actual cash value of the vehicle, minus any deductible.”

Did you catch the 3, very important words in that clause? The three words are - “actual cash value.”

Actual Cash Value means you’re going to get a get a check for….

“What it’s worth” not “What you owe.”

Isn’t that a nasty little surprise.

And like most, you owe quite a bit more than what the car or truck is worth. What would you owe your Bank or Credit Union if your car was totaled today?

So, how do you avoid this situation?

Well, when you buy a new or used vehicle, add a “rider” to your policy or purchase a separate “rider.”

If you have Homeowners or Rental insurance, a “rider” might sound familiar. For a homeowner’s policy, if you own expensive items, like fine jewelry, you need to add a rider to your policy. The reason - Insurance Companies won’t cover those types of items as part of a regular insurance policy.

So, you pay an extra $5 or $6 a month to have those items fully covered by the rider.”

If anything ever happens to the jewelry, it gets replaced.

A rider for your car or truck is called GAP Insurance or GAP Protection. It’s just like the rider for your Home - except it’s only for cars, vans, trucks or suv’s.

It covers “What You Owe”, not “What its worth.”

It doesn’t matter what the reason is - if it’s ever totaled due to theft, fire, accident, flood, tornado, vandalism, hurricane, it’s covered - and paid-in-full!

You can protect yourself four different ways.

1. Put at least 20%-30% down on any new or used car purchase to erase any gap;
2. Purchase a “Rider” - AKA GAP Insurance from your Car Insurance Company or Bank;
3. Purchase Gap Insurance from another Insurance Company;
4. Buy Gap Insurance from the Dealership you’re buying at.

Any one of these options is great way to protect yourself. Whether you’re getting ready to purchase a new car or truck, or purchased a vehicle in the last 2 years or so, make sure the “gap” between what your vehicle is worth and what you owe is covered.