Really Saving Money on Car Insurance
Everybody wants to save money on their auto insurance. The best case would be not to have to buy car insurance at all. Unless you can purchase a bond, the reality is, if you drive, you’ll need to obtain “proof of financial responsibility” or insurance, as it is more commonly known. There are a number of ways, however, for you to at least save a few bucks here and there, which is better than nothing.
You Are What You Drive
Before you even consider insurance, keep in mind what you’re driving. Luxury models, sport editions or vehicles with higher incidents of theft will warrant a higher insurance premium. If you can’t readily afford coverage on the sports car you’ve been eying, consider buying a more economical or more, dare we say it, boring and conservative automobile.
Now, say you already have a vehicle, or you’re set on buying a particular model. How might you save a little money on your policy?
Deductible options are the first way to save some money on your insurance. Higher deductibles means lower premiums. Now this might wash out in the event of an accident, as what you pay for your deductible might equal what you’ve saved on the premium, but if you’re willing to take a chance to keep a few dollars in your pocket every month, this might be a good way to reduce insurance costs. If you don’t have cash on hand to cover a high premium in the event of an incident, than a lower deductible and higher premium might be the only way to go. Ask your insurance agent or another qualified insurance representative during the quote process what the difference is for varying deductibles. What you save each month might not be worth the knowing that you can meet your deductible without having to starve in the process.
Really Save on Car Insurance
When it comes down to it, there aren’t a whole lot of ways to save money on car insurance. There’s no “silver-bullet” no “money saving tips” and no “secret your insurance agent doesn’t want you to know.” Insurance carriers are regulated by state insurance regulators. Fees, rates, premiums and policy factors and rate schedules are all spelled out, annually, in detailed reports to state regulators. So, aside from deductible changes, you can save a little money by bundling your insurance coverage, with a home or renters policy, for example.
0Carrier Package Deals and Financial Stability
How Do Insurance Bundles Work?
Insurance carriers are investors. They are gamblers. They invest in your ability to operate a motor vehicle safely, they gamble that you won’t require a pay out in the event of an incident. The money they obtain is capital, for investments. They retain a certain required percentage of their working capital to manage and pay claims, and the rest they invest. The more of your money they have, the happier they are, so insurance carriers, provided you are a qualified risk, are happy to take more of your money.
In order to get more of your money they will offer you a discount, sometimes as much as 25 percent, for insuring both your home and auto with the same carrier. They call these policy package discounts. Now, just like a bank, an insurance company maintains a financial rating; insurance companies are financial institutions, after all, and should be considered as such. You wouldn’t put your money into a failing bank, and choosing an insurance carrier, for a bundled policy or stand-alone coverage should be much the same as choosing a financial institution. Have a look at the carriers ratings.
Insurance Company Ratings
Private entities rate insurance companies based on their filings and financial standings. If the insurance company is financially sound, with good fiscal policies and positive prospects, they receive a high rating. If their earnings, profits, losses or claims history is spotty, or if there are other warning signs, the ratings for that insurance company are reduced. The rating schedule used is similar to what is used in secondary and post-secondary education, with A+ and A ratings being the highest, on down to B and C ratings (which should be avoided). Other factors to consider when evaluating an insurance carrier are customer service and bad faith claims. If the state department of insurance lists bad faith claims for an insurance carrier be wary; bad faith claims mean the insurance company is not living up to the contractual obligation that is an insurance policy.
0Young People Pay More For Insurance
Age Is A Major Determinant of Insurance Premiums
Despite common misconceptions about insurance, there are actually a couple of factors unrelated to your driving record which will most definitely impact your insurance premium. When you are searching the internet for insurance information, great rates on insurance premiums or tips on how to avoid paying excessively high insurance premiums, these factors are frequently called “money saving insurance tips.” The reality is, these factors are the primary determinants behind your insurance premium and not factors you can avoid. They aren’t really tips at all, but rather insights into how insurance rates are determined, all of which can be reviewed through your state department of insurance.
Age is a primary determining factor insurance premiums, but not the only one. The younger you are, the higher your insurance premium. The reason for this is simple, experience. Insurance companies have been in the business of insuring drivers for a long time. Their experience tells them that the younger (less experienced) a driver is, the higher the likelihood of distracted driving and an increased chance of involvement in accidents.
This information, borne out in data published by agencies like the National Highway Transportation Safety Administration (NHTSA) places younger, less-experienced drivers into a higher risk category and, thus, a higher premium can be charged for insurance coverage.
Driving Experience is Critical for Insurance
Experience here is the key as less experienced drivers are involved in more incidents. Teen and young adult drivers, insurance carriers presume, are more easily distracted and, again, a higher risk group. Younger drivers also have less time behind the wheel and, therefore, less experience. Young drivers, high school aged drivers and people with little or no assets, or “worldly” concerns might be more inclined to drive recklessly, party and drive drunk or attempt to text or talk while driving. And while laws are in place to keep younger drivers safe, too often groups of kids go riding around together, screaming and gallivanting, putting them and other drivers at risk of incident or accident. Because of this, young drivers are more expensive to insure; they wreck more and may be more prone to panic. Young drivers also might react erratically to unfamiliar situations.
So, the long and the short of it is this. If you are young or if you are an inexperienced driver, you can expect to pay more for your insurance premium, so you better be darn sure you are driving a vehicle that falls in an economical category in the insurance actuarial table.
0Insurance Coverage for Custom Cars
Typically, a Comprehensive or Collision insurance policy coverage includes Custom Parts and Equipment(CPE)/Accessory coverage, up to $1,000. In most states this is the norm for comprehensive or collision coverage. You can purchase additional CPE coverage, up to $4,000, to insure as much as $5,000 worth of custom parts and equipment. Certain limitations and exclusions apply to this coverage.
CPE/Accessory coverage insures against losses for permanently attached equipment, devices, accessories, enhancements and changes – other than those originally installed by the manufacturer – that fundamentally alter the appearance or performance of the insured automobile, including, but not limited to:
- Special roofs and deluxe roof treatment
- All custom paint work and deluxe exterior
- Chrome and reverse chrome
- Alloy or magnesium wheels/wheel covers, aluminum wheels or wire-spoke wheels
- Special tires
- Fog lamps and fog lights
- Chrome engine accessories
- Racing slicks, oversize tires or custom wide-tread tires
- Camper tops, T-Bar roof and T-tops including glass
- TV, VCR or DVD players that are permanently installed in the vehicle
- Anti-theft equipment not installed by the auto manufacturer
- Aftermarket racing seats or leather seats not installed by the auto manufacturer
TVs, radios, CD players and other electronic devices not permanently installed in the vehicle; radar detectors; tapes, CDs and the containers used to store them; CB radios, telephones or two-way mobile radios not permanently installed and alcohol detection systems that are not permanently installed are not considered custom equipment by your insurance carrier and thus, will not be covered by an insurance policy.
Manufacturer trim packages, such as special edition or sport package options or packages featuring specific designers or outdoor outfitters are not considered additional equipment.
Insurance carriers recommended that you take photos of the custom parts and equipment installed in or on your vehicle and save all your receipts.
0Motorcycle Safety Facts
More than 103,000 of all the vehicle crashes nationally, in 2007, were motorcycle crashes. Between 1998 and 2007, motorcyclist injury crashes increased 110 percent. Approximately 85 percent of these injuries were male riders, with the bulk of the injuries occurring in the 20-29 year old age range. Of these crashes, single-vehicle or multi-vehilcle crashes occur with the same frequency.
While fatality rates per passenger car crashes drops, fatalities for motorcycle riders continue to rise making motorcycle rider fatalities a significant contributor to the overall national fatality rate, according to the Federal Highway Administration. When considered in context, much of this death toll increase is due to the marked increase in motorcycle ownership, particularly in the over 40 age category but the rate of fatalities still continues to outpace the registration of motorcycles and middle-aged rider fatalities has increased significantly. Motorcycle incidents are, on average, 34 percent more likely to prove fatal than passenger car crashes and 8 percent more likely to prove injurious.
Roadway designs, highway and roadway maintenance and the inherent instability of two-wheeled vehicles makes motorcycle crashes increasingly likely, well more likely than operating a passenger car or truck. Many motor vehicle operators don’t know how to react to motorcycles on the roadways and may not expect to see motorcycles. Failing to account for motorcycles on the roadway may inhibit a drivers’ ability respond safely to motorcycles while maneuvering on the roadway. The reality of the situation is that, regardless of how well prepared you are, regardless of how skilled a rider you may be, crashes occur and roadways are inherently dangerous for motorcycle riders, so you better make certain you have good motorcycle insurance.
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Affordable Motorcycle Insurance
Looking for Low-Cost Motorcycle Insurance?
Riding for pleasure or to save money on gas? Get a great quote on coverage for your bike by calling today! Shop around for competitive rates on insurance for motorcycles and scooters no matter what sort of bike you ride.
How much can you save on motorcycle insurance? A wide range of inexpensive insurance options for your motorcycle or scooter are available from carriers across the country. Choose cycle insurance coverage options like Bodily Injury and Property Damage Liability, Comprehensive and Collision, Uninsured/Underinsured Motorist, Roadside Assistance and more.
Discounts are also available for motorcycle riders. Find out about available about discounts for insuring multiple motorcycles or scooters, completing approved motorcycle training and safety courses or for being a mature rider.
You can find cheap rates on motorcycle or scooter insurance, but you’ll need to shop around. If you own or rent a home, be sure to check with your insurance agent about discounts. A great place to start shopping for bike insurance would be with your auto insurance carrier; they’re always happy to insure more than one vehicle for you. And, if you live in the Great White North, be sure you get insurance for your snowmobile. You never know when a moose might jump out at you.
Insurance for Motorcycles, Scooters, ATVs and More
- Custom Choppers
- Vintage Bikes
- Antique Motorcycles
- Motorcycles 25 Years and Older
- Cruisers
- Limited Production Cruisers
- Street Sport Bikes
- High Performance Motorcycles
- Race Bikes
- Touring Bikes
- Super Bikes
- Sport Touring Bikes
- General Purpose Motorcycles
- Dual Purpose or Enduro Motorcycles
- Motocross and Dirt Bikes
- Mopeds
- Scooters
- Trikes
- All Terrain Vehicles (ATVs)
- Snowmobiles 0
More on Custom Parts and Accessories Insurance
There’s a lot of question over what components are covered and which components are not covered by custom parts and equipment coverage or CPE. When you consider all the parts that go into a truly custom automobile, clearly the $1,000 default coverage included in a Comprehensive or Collision policy won’t cover much of a loss. To help clarify the situation, we’ve provided a couple of examples, below, to help consumers decide whether or not they might need to purchase additional custom parts and accessories coverage for their vehicle.
Insuring the Custom Street Racer
Your car has a custom paint job, racing seats and harnesses, aluminum racing wheels and competition tires totaling $5,000 in value. Overall, the custom equipment exceeds the automatic $1,000 CPE coverage provided with the Comprehensive or Collision coverage, to cover the additional parts value, you would need to purchase an additional $4,000 in CPE coverage to insure the parts in the event of an accident.
Insuring the Bass Line Thumps
Will CPE cover my new stereo and subwoofers, even if the woofers aren’t permanently attached to the vehicle?
The deck may be covered as an installed component, but unless the subwoofers you have bumping in the trunk are permanently affixed to the vehicle, your Comprehensive or Collision policy might not cover the subwoofers. Speak with a qualified insurance representative familiar with your policy to determine the exact extent and any possible exclusions in your coverage.
Insuring Euro Sports
I’ve modified my Audi A4 to be an all out racing machine. It’s got a spoiler, fender flares, a custom paint job and low profile tires. Tires, wheels and custom body panels alone are more than $5,000. How do I cover engine parts, exhaust, brake components, racing seats and other features which add significantly to the value of this car? Speak to a qualified insurance specialist to find out what coverage might be available for custom parts which exceed typical standards
