Cheap Car Insurance – 7 Tips To Reduce Your Car Insurance Costs

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.

What To Do If You Are Rear Ended In Your Car

Depending upon the severity of the crash; which could be just a slight tap on your rear bumper due to some one's foot slipping off the brake at a stop light. It could be a major collision, totaling your car, and causing you or your passengers severe long-term whiplash and other medical injuries.

Call the police. Even if your rear-ender is a slight bump; in order to facilitate your insurance claim, you will need a police accident report. Insurance companies need legal documentation that an accident actually occurred; when, where, how, what happened, and the parties and their vehicles involved.

Police will help both parties to get the information they need, but you need to be sure you have their data as well, and if you are able, do so before police arrive. You will need your insurance card, and your vehicle tag registration. Each party should get a copy of the police accident report. Assuming both parties are medically able, here is a list of the information you will need to exchange with the other driver:

• Name(s) of drivers and owners of the vehicle
• Address
• Phone numbers, home, work, and cell
• License tag numbers
• Drivers License numbers
• Name of insurance company, and agency
• Their phone numbers and claims numbers
• Physically look at insurance cards and drivers licenses

Additionally, if there are any witnesses to the crash, get their name, address, phone numbers.

Try to remain emotional calm, even though you may be dazed or shocked by the crash. Do not get into a hostile confrontation. Usually the other driver is also shaken up, so try to be helpful, if anyone needs emergency aid let the 911 operators know if you are the one who summons the police.

If you have a camera with you in your car (ideally a digital camera kept in your glove compartment or a cell phone) take photos of the accident and damage done. Note any unusual circumstances that might have led to the cause of the crash, or if the camera would help the claims department of an insurance company, or attorney determine negligence, or percent of negligence.

As an example; here is a a typical rear-ender

• Driver A is stopped
• Driver B hits the car from behind.

Some states assume Driver B is at fault, but Driver B may argue against that presumption of fault. For example, Driver B may argue that Driver A stopped so suddenly it was impossible not to hit them. In that example, liability or fault may be split between the drivers. In a comparative negligence state Driver B may be 70% at fault and driver B is 30% at fault. Some states don't use comparative negligence, but many do.

Car Insurance and No-Fault Benefits

In most No-Fault states, such as Florida, if you are in an accident and receive bodily injuries it is your own car insurance that will cover your injuries and medical bills. This no-fault insurance is usually termed Personal Injury Protection or PIP.Many states have passed laws requiring vehicle owners to have no-fault coverage (PIP) as part of their state mandated minimum automobile insurance coverage.

If you have been in an automobile accident the first course of action, whether you have bodily injuries or not, is to contact the police to make a report. The next step is to contact your insurance company to report the accident. Your insurance provider should then be able to walk you through the steps of making a claim. If you have injuries and need to place a claim against your PIP coverage, this can be done at this point as well.

If you are unsure of what your personal injury protection policy covers, ask your agent to explain the benefits and which will be of use to you under your current situation. Benefits typically can include payment for loss of wages, medical expenses, replacement services and other economical damages you might have suffered due to the accident.

Medical expenses that will be covered by No Fault are those medical expenses that are reasonable and necessary are covered. The state’s statutes in which you reside usually regulate what is deemed reasonable and necessary. This definition usually excludes experimental treatments or alternative/holistic treatments.

In Minnesota their statutes include as medically necessary the following items: medical, surgical, x-ray, optical, dental, chiropractic, and rehabilitative services, including prosthetic devices. Also allowable by MN statutes are prescription drugs, ambulance or other transportation expenses incurred in traveling to receive other covered medical expense benefits.

The state of Minnesota’s PIP system demands that before any wage loss claim will be paid by your insurance provider that a doctor's disability note must be presented to your PIP insurance adjuster in order for you to receive wage loss benefits and that proof of wage loss from your employer on a form available from your insurance adjuster.

In Florida their no-fault (PIP) coverage includes payment for 80 percent of medically necessary expenses, 60 percent of lost wages, 100 percent of replacement services such as child care, housekeeping or yard work, and $5,000 for death benefits. Florida also allows that for a higher premium you may amend your personal injury protection coverage to increase medical expenses to 100 percent and lost wages to 80 percent or increase your minimum limits from $10,000 to $20,000 or more.

There are other states, such as Washington, that do not require PIP but have it as an option that a driver can carry as part of their insurance coverage. In Washington State personal injury protection if you choose this optional coverage it pays for medical and other expenses resulting from an auto accident, for people specified in the policy, regardless of who is at fault.

While this coverage is not required in Washington, it is mandatory that it is offered to car insurance buyers and must be rejected in writing if the car owner does not want to add the coverage. In a Washington PIP policy the named insurer and residents of that person’s household related by blood, marriage or adoption are covered for injuries incurred in an accident. Also passengers of the named insurer’s vehicle and pedestrians are covered.

In Washington, just as Minnesota and Florida, PIP covers reasonable and necessary medical expenses for injuries sustained in an automobile accident, up to three years from the date of the accident and up to the $10,000 limit. Other benefits of PIP in Washington State include income replacement (maximum of $200 per week for 1 year, after a person has been disabled for 14 days after the accident), funeral expenses of $2000 and loss of services of up to $5000.

Whether your state requires you to carry Personal Injury Protection insurance coverage or not you will want to be informed of this coverage and what benefits you may receive from it. Find out from your insurance agent, or your state’s insurance regulatory body (Department of Insurance) who is covered by a PIP policy and if there is different coverage options you may want to include for better protection of you and your family.

Things To Teach Your Teenage Driver

Is it hard to communicate with your teenager about issues in his or her life? Regardless of the communication problems, there are two issues you need to discuss with them: driving and insurance. The following are four things to teach your teenage driver.

1. Driving is a privilege, not a right.

From a state's viewpoint, they will not hesitate to suspend or revoke a driver's license if too many violations are received in a short period of time. If the driver receives a DUI or is involved in an accident and he or she is not adequately insured the state will suspend or revoke a driver's license.

From the parents' viewpoint: if the teenager is a minor or a dependant, the state may hold the parents liable for his or her actions. Also, since parents usually pay for the teenager's bills, they should be honest and let the teenage driver know that driving his or her driving privilege will be revoked by THEM, if she or he does not meet their expectations for driving responsibility or anything else.

2. Insurance for teenage drivers is expensive.

Due to the accident statistics for teenage drivers, their rates start out high that is a fact. It only gets higher with accumulated violations. Also, with accumulated violations, the parents' insurance company and other insurance companies, may not choose to insure them. This lack of supply by insurance companies creates a higher demand, and as a result creates higher premiums.

3. Teenagers need to know there are consequences to their actions - especially if it involves auto accidents.

The teenage driver needs to know that people get hurt and possibly DIE in auto accidents. Teenagers seem to be oblivious of their or anyone else's mortality. There are laws of physics that need to be understood when an accident takes place. Also, it may not seem cool, but the teenage driver needs to make sure everybody in the vehicle wears his or her safety belt.

4. Last, your teenage driver needs to avoid distractions and concentrate on driving.

Unfortunately, a safety belt and an air bag do not totally protect the human body. Only avoiding accidents will keep everyone safe. In order to do this, the teenage driver has to know why she or he is driving. Most of the time, it is to reach his or her destination SAFELY.

Besides fastening safety belts, the teenage driver needs to set radio before she or he starts to drive. Teenagers need to be advised not to use a cell phone until he or she is done driving. This will allow them not to be distracted by either looking down to switch stations as they drive or by concentrating on their phone conversation instead of the road ahead.

Also, while driving, the teenager needs to keep his or her eyes moving. This will help keep the driver from 'dazing' and allow him or her to concentrate on the surroundings, especially the other cars sharing the road with them. The teenager needs to expect the unexpected while he or she is driving. In particular, he or she needs to be aware of the unpredictably of children, people on bicycles, and aggressive drivers.

Talking to your teenager may not be easy. She or he may not want to participate with you in an in-depth driving conversation. However, the previous four things should be taught to him or her not only to keep teenagers safe on the road but so you can sleep at night knowing that you have communicated to them the finer points of driving and the insurance that goes along with that.

Auto Insurance Basics

Some people only think that insurance is something they need to get their registration and tag so they can drive. It is needed because their license may/will be suspended if they don't have it. It's just a bother to some because people think "I don't get into accidents, I am a careful driver."

Often times people will call for insurance and say "give me the cheapest insurance or give me only what is required." Many people don't even know what this insurance coverage this is. A lot of people only really become aware of what coverage they have when they need it, like when they need to make a claim.

When you run into that stopped car or have someone sideswipe your car in a parking lot while you are shopping, suddenly having only the coverage that is required by law may not be the best thing to have. You should always have as much insurance as you can afford to carry. Having too little is never good and if you have insurance you cannot afford is not any better. A policy that is cancelled due to non-payment does you no good at all.

Lets take a look at the state I am familiar with - Florida. Florida is a no-fault state. What does this mean? Well, if you have the proper state required coverage you will be protected by the no-fault law. If you are in an accident whether you are at fault or not at fault you will go through your own personal injury coverage for your medical expenses for the first $10,000. If you do not have at lease state minimum insurance then you will not be protected and may be subject to paying for the injuries of the other people you hurt in the accident.

There are many types of coverage to purchase and meet your insurance needs. Every coverage has a purpose and all are good to get.

Florida state minimum insurance is Personal Injury Protection and Property Damage. Personal Injury Protection or P.I.P. covers your medical, hospital and funeral expenses up to its limits. It also covers others in your vehicle and pedestrians struck by your car. You are covered for up to $10,000. There also may be a deductible. This can be 0, 250, 500 or 1000 deductible. A $1000 deductible being the minimum in Florida.

Property Damage liability covers if your vehicle damages another person's property. This could be their car, house, motorcycle, etc. Limits for this are $10,000, $25,000 or $50,000. The Minimum in Florida is $10,000.

Another valuable coverage is Bodily Injury Liability. Bodily Injury covers other people's injury or death that you are responsible for up to the limits you purchase. This is not required by Florida for state minimum insurance, but it would satisfy another law called the Financial Responsibility law. This law states that if you are not financially responsible at the time of and at fault accident where someone gets injured or property damage occurs, your license may be suspended. At this point you may be able to get your license back by filing an Sr-22. This form shows to the state you are now carrying Bodily Injury Coverage and are now financially responsible. Usually you must carry this for 3 years with no lapses in coverage.

Another common insurance people ask for is Full Coverage. This is not an insurance coverage and means a different thing with every company you call. Most people only know that their car dealer or bank wants Full Coverage so they ask for it. Comprehensive and Collision is what these companies are looking for. Collision covers repairs when your vehicle hits or is hit by another vehicle. If it is destroyed it will also pay up to the book value of the vehicle at the time of a loss. Comprehensive covers for loss caused by other circumstances other than a collision. Some examples are theft, flood, fire or animal damage. This will also cover total losses up to the book value of the vehicle.

Other types of coverage available are medical and Uninsured Motorist. Medical covers medical costs to you and your passengers injured in an accident. Uninsured Motorist covers injuries to you and your passengers when the other person in the accident is at fault but does not have insurance or does not have enough insurance.

These are just some of the basics about the insurance there is more detailed information about each coverage out there that you can find. But this information should give you a good idea about what type of coverage you might need to research more or be ready to purchase. Knowing the basics is your first step on making smart purchasing decisions!