Tuesday, 28 January 2014

Cost of Insuring New and Old Automobiles

Perhaps you have been thinking about changing that clunker for a while. It has been costing you a lot of money on repairs and car insurance. Also, you know that only matter of time it will totally break down in the middle of the road and that will be the end of it. Perhaps it is better to make the switch earlier rather than trying to keep the one you have.

There are all sorts of special deals, finance packages and promotions lately. Auto manufacturers are trying so hard to sell more of them. Furthermore, they have been improving them so much with all sorts of features auto insurers like. Therefore, your new car may be even cheaper to insure compared to the old one. In any case, it is unlikely it will cost much more.

The new automobiles come with extra security features that make it harder to steal them. The alarm systems, immobilizers, smart keys and GPS tracking are some of these features that older cars do not have or nothing like the new ones. It is harder to break into them, get them started and drive away now that insurers feel a lot comfortable insuring them.

They also come with plenty more safety features that older ones will not have. Better seat belts, airbags, adjustable steering wheels and seats that reduces the injury to drivers and passengers. Vehicle stability systems, anti-lock brakes and hazard warning devices help drivers control the vehicle better and see the dangers earlier. They also have a better frame to protect occupants and other involved drivers and passengers. They handle the crashes much better now. They have great bumpers that reduce damages to the vehicle and they are very easy to replace.

So many other specifications can be counted here that older cars do not have. All of the new features like daytime running lights, collision sensors, navigation systems, Bluetooth compatibility, and rear backup cameras help to make newer vehicles safer and cheaper to insure. When companies realize that these technologies will reduce their claim settlements they offer better rates for them.

When these reasons behind the differences in car insurance rates based on vehicle’s age is considered it can make sense to upgrade to a newer autos. Often, savings achieved while insuring can help offset the different level of investment made on them over a period of time. All the while you will be enjoying all the safety, security and comfort of a new car.

Saturday, 18 January 2014

Minding Costs while Buying Car Insurance Policies

It would have been lovely if we did not worry about money every day. There are always alternative costs of buying something when you need to live within your means. If you cannot find cheap car insurance, you will have to give up some other things. Those things are probably the fun things like going out for a meal or a movie. Or they can be essential items like buying a nice new jersey for your son who has been asking for one for sometime.

This never means that you do not arrange sufficient coverage. It is more like deciding what you need and sticking to it rather than buying excess amount just to be on the safe side. If you don't know where to stop, there is no limit to what you can buy. There are plenty coverage options and they come in various levels.

Essentially, every driver needs a basic auto insurance liabilities coverage. Then you will need to have comprehensive and collision covers as well when you have a decent car. This will definitely be required when you have a loan on it. Probably, these are the lowest you should go. From here, you have a bit more freedom to add on or leave out some of the other options.

For example, you could buy Personal Injury Protection to get covered for the accident related injuries you or your family will suffer. However, you may be able to arrange this within your health insurance or it already comes with it. PIP includes loss of wages and other consequential losses as well that will not be covered under health insurance. These are the areas you will have to decide. Can you live without loss of wages cover if your health policy covers the injuries?

There will be a few choices to make. We can come up with another good example. Say, you found a great auto insurance package deal that provides decent coverage but it does not include rental reimbursement. You will need to pay extra $200 to have it included. Would you be able to get around if the car is stolen for a few days without it? Answer to this question will determine if you will spend the extra money or keep it in your pocket.

In other words, you should have the losses that will cause financial suffering covered properly. There is no doubt about it unless you are not able to afford the premiums for it. The areas you can consider and take a decision are the losses that will cause inconvenience but not break your back.

Another area you have full control is the options of auto insurers. Again, it would be easier to explain it with an example. Say, you get several quotes for exactly the same coverage. Company A is a highly reputable one offering to insure you for $2,000. Company B is not as big as A but still well established and provided a quotation of $1,700. Company C is reliable enough and quoted $1,500.

The difference is $500. Are you willing to pay it to be insured by company A or you can accept the offer provided by C and keep that money in the pocket? You will need to go through your requirements and policy and fine tune these areas with the costs in mind. You can either cut the costs or deem it a good deal and add them on to your policy. One thing you should not do is to avoid carrying out this task on a regular basis.

Can You Make Independent Auto Insurance Decisions?

There are millions of drivers paying billions of dollars car insurance in the United States of America every year. And there are hundreds of companies wanting a decent share in this market. This can result in fierce competition, sheets of billboard advertising and hours of commercial air time on main networks. It would really be hard not to be influenced by auto insurance company advertising.

Normally, there is nothing wrong with trying to gain a few customers. In fact, keenness of the providers is a big advantage for smart consumers who like to play them against each other. Not many people know this approach of achieving premium discounts. Even they do they may be withholding from applying it because they do not believe it will work.

As expected, most advertising campaigns twist the truth a bit or are economical about it. For example, they say that you can save as much as 40% on your vehicle insurance. But they would not explain that you probably cannot unless you are a middle age, professional female driver, living in one of the safest neighborhoods, driving the most safety conscious car and have not had a claim or traffic tickets for years.

Maybe, an experienced driver already knows that. Still many people give it a go and get a quote following a prime time commercial and get disappointed when they receive no saving at all. The problem can simply be that the company in question is getting tons of calls due to advertising spent and getting spoiled for choice.
Therefore, it does not mean that you cannot get good discounts from other carriers.

Anyway, you really need to get several car insurance quotes before even starting to think about your options. You would only be lucky to find the best deal in your first try ever. Think about high street shopping. You need to go several stores to find what you are looking for and maybe hold back until they have a sale if the price is too high.

Consumers seem to be affected from what they hear on advertisements quite a lot. The responses can be put in three categories; the optimist, the pessimist and the tester. Depending on where you fall, your decisions will be affected accordingly during the searching and buying process.

The pessimists may disregard any claims to saving money and believe that it is an unrealistic assertion. So, they may not even bother to have a look around when their renewal terms arrives. This attitude will not help you as you will not find if you do not look for it.

The optimists may buy into anything offered to them as if it is the absolute fact. There are many people who started their search following an exposure to auto insurance campaign for the first time. They believed that the rate offered by this one company was the absolute best and they are with the company for the last decade. Such unquestioning loyalty would be a dream outcome for the insurer.

Ideally, you need to test those claims by getting quotes and comparing them. Financial firms are in the insurance business for the profits. Quite often the interest of shareholders will clash with the interest of customers. In other words, being nice to customers may cost money which will reduce their bottom line profit.

Taking this argument further into the process of buying coverage, people may choose to add or drop a policy feature depending on their trust on insurers. A pessimist person may believe that all the insurers are crooks anyway and he would do well by buying the minimum legal coverage. Of course this is an extreme view and the person can benefit from at least comprehensive and collision covers.

An optimist may be easily persuaded to purchase anything although it is unlikely that he will ever use it. With the fast car insurance comparison sites it takes only minutes to test any offers appearing to be great. It is probably the only way to finding the best coverage, most reliable car insurer and cheapest premium. Even you do not get it as perfect as this, you should at least try. Gather sufficient information and quotes before finally making your mind.