Monthly Archives: August 2020

Understanding the Auto Insurance Claims Process

If you own a car, truck, motorcycle or any other vehicle, you know you need related insurance. All is good as long as you pay your monthly premium and do not make a claim.

Then you are involved in an accident. What then?

For many auto insurance policyholders, the auto insurance claim process is very, very complicated. Here, we bring you the basics of understanding with the following oft-repeated questions.

How long does it generally take to process an auto insurance claim?

A: If the insurance company has all the facts, a settlement should be achieved fairly quickly. By providing much of the details involved in the collision, the policyholder him or herself will help get the process off the ground. Any insurance company worth its reputation will do its utmost to process the claim as efficiently as possible.

Why is the estimated cost of repairs less than the actual payment check?

A: This is because the auto policyholder must first pay out-of-pocket for the deductible. Only after this, is the remaining balance given through a check.

What is the reason for the auto lien holder to be placed on the insurance payment check?

A: Many states make this a requirement for the simple reason that the lien holder has an insurable interest in the repair work done on the vehicle. In order for the policyholder to get the funding for the repair, he or she must be in touch with the lien holder.

What is the meaning of Direction of Payment?

A: Most auto repair shops require you to sign a Direction of Payment form so that they have documented evidence that the insurance company has permission to pay them for the repair work they complete.

What is common practice of insurance companies in regard to rental cars during the time the insured car is in the shop for repairs?

A: Most times, an insurance company will supply a rental car if the insured car is inoperable and in for repairs.

What about towing costs?

A: Generally speaking, towing is a covered service provided by the auto insurance company following an accident.

What is the procedure if the insured incurs injury during an auto accident?

A: The policyholder should be in touch with the insurance company if he or she is injured. The claims person will inform the policyholder about the related medical care and treatments that are covered under the policy.

Auto Insurance Rates: Do They Rise As We Age?

The auto insurance industry realizes that the senior population has a lot of driving experience under its belt. That does go a long way as far as safety is concerned, and, seniors are rewarded in good measure with low premiums on their policies. But, by the same token, no one can deny the fact that as the years go by, eyesight becomes weaker and people are not as quick to react as before. In addition, compromised health situations tend to develop, necessitating medication.

Studies indicate that all this can translate into car accidents – a significantly large amount of these involve tragic fatalities. The insurance companies know about the resulting damages, injuries and death because of related claims that are submitted by policyholders. And claims are an expensive drawback that triggers rates to go up.

Before you begin to panic, allow us to reassure you that the premium hike for seniors at a certain stage is rather slight and it can be countered by savings rewarded to those who attend approved safety driving classes, as well as discounts that many insurance carriers offer.

For clarity, please view the following synopsis of the varying insurance developments in the course of the senior’s driving life.

• If you are in the fifties, you will essentially enjoy lower premiums than those older and younger than you. This is because you typically are still in good health and you still have quick reflex reactions.

• From sixty years of age to sixty-five, you still will be getting the less expensive auto insurance premiums – something that may shift afterwards.

• If you are in the 65-69 year old category, you might see your auto policy increase in rate. In this case, it is in your interest to seek an insurance agency that has the ability to shop the network to see if you can get a cheaper policy.

• Between the ages of seventy and seventy-nine you will generally see an increase in premiums. This is related to a higher risk of an accident. It does not mean, however, that you will not find a cheaper plan elsewhere with a company that understands you still may be in good physical shape and are not personally prone to a collision.

• Once you hit eighty, you will be viewed as a high-risk to the auto insurance industry and retroactively be billed higher rates. If you choose to continue driving at this age, speak to an experienced independent agency that has the ability to shop for cheaper premiums and get applicable discounts to lower your premium.

Whatever your situation, remember to take all precautions in driving safely. After all, it’s your well-being and others on the road that is at stake.

Car Insurance Claim Procedure

Motor Vehicle Insurance is compulsory in India under Motor Vehicle Act 1988. Motor vehicle insurance is the insurance coverage of the risk of third party arising out the use of motor vehicle and also for covering the risk of damage caused to the vehicle. Indian people neither concern about Life Insurance Plan nor Medical Insurance plan but they are more concern on Motor Vehicle Insurance either they are driving a Scooter or a Bike or a Car or a Truck. It is mandatory otherwise if anyone injured without insurance vehicle, it will treated like a Crime.

Now days everyone have their own vehicle, roads are jam pack with vehicles, the risk is high so as a result, motor insurance companies are growing day by day and claims have also gone up. But many a time, the policyholders do not know exactly what they can do to get their Car Insurance Claim Procedure.

Here we are explaining the procedure how to claim on your car insurance policy. This will help you a lot.

How to claim on your Car Insurance Claim

We will understand this procedure in some scenario step by step so it will be very easy for us.

Claims for own-damage: If your car met with an accident, you should follow these steps to claim for damages:

  • Inform the insurance service provider – First and foremost you should inform to the insurer at the earliest and you have to submit a duly filled in claim form along with the required documents to the insurance company before you send the car to the garage for any repairs. The forms are available on insurance service provider’s websites. Most insurers follow strict guidelines and its mentioned in the policy documentation.
  • Lodge FIR – In some cases, First Information Report (FIR) is required so lodge FIR to the nearest police station for the safer side. Although it may not be mandatory for claim settlements but it is advisable to lodge an FIR. It depends on the condition.
  • Assess the damage – Once you inform to insurance service provider, they will appoint a surveyor who will assess / evaluate the damage of your vehicle. He will prepare a report and pass it on to the insurance company. You will also receive a copy and then you can move your car to the nearest network garage for repair.Note: If the damage is severe then surveyor will reach the spot of the accident at the earliest for survey.
  • Claim settlement – As soon as insurance company receives survey report, they will analyze the claim request and sends an approval to the garage. The garage will have to provide an estimated cost for the vehicle repair and timelines for the same. The insurer will be in touch with the network garage for an overall view of the extent of damage and the way in which the repair work is proceeding.

After the work is completed, you will have to take the duly signed bills and documents from the garage and submit them to surveyor. Surveyor will send it to the insurance company.

If all the documents are completed, the insurance provider will reimburse your bills. Keep in mind that there will be some compulsory deductible and variable deductible components, as stated in the policy document. Once your claim settled and your car is OK then you can drive again.

Car insurance claim process for a third party claim: -If you are responsible for an accident where a third-party suffers injuries or damage to property, here is what you need to do:

  • Inform to insurance service provider – First and foremost you should inform to your service provider at the earliest. Also remember not to make any financial commitments to third party.
  • Lodge FIR – Lodge FIR at the nearest police station and keep a copy of the FIR for future reference as well.
  • Share policy document – You should mandatorily share a copy of your car insurance policy with the third-party, so that they can raise a claim on it.
  • Claim at Motor Tribunal – According to the Motor Vehicles Act 1988, third-party liability claims are raised at the Motor Accident Claims Tribunal (MACT). The claim can be raised by the third-party at the tribunal closest to his/her residence or yours.

After receiving all the documents, the insurance service provider will verify the documents and assess the accident and if found satisfactory, you will get a lawyer appointed by them.

If the court directs you to pay the damages to the third party thereafter, the insurance service company will directly pay the dues to the third party.

It is advisable to see if the situation can be settled amicably outside the tribunal.

Claims for theft: If you find that your car has been stolen then follow the below procedure.

  • Lodge FIR – Lodge FIR at the nearest police station and keep a copy of the FIR for future reference as well.
  • Inform to insurance service provider – You should inform to your service provider at the earliest with a copy of FIR
  • Once you receive the final report from police station, make a copy of it and submit it to your insurance company. The insurance company will assign an investigator. Investigator will make the report and submit to insurance company. Once that is done, submit the RC book of your stolen car to the insurance company.
  • Submit the duplicate keys of the car and also a subrogation letter. You will also need to submit a notarized indemnity on a stamp paper also.
  • Once all the formalities are completed, the insurance company will disburse the claim.

It is very important for us to know about the formalities of car insurance claim procedure otherwise many people are paying from their pocket due to lack of these information. Now days the entire insurance service provider’s having a very good customer support network and their teams are skilled and co-operative also so you must communicate with your insurer whenever you need it.

I wish that you don’t need these procedures. I wish you will have a Safe Drive, someone is waiting for you.

Rental Car Insurance – Should You Buy Rental Car Insurance?

Your flight landed an hour late. Now, you’ll be late for that important meeting. You can already imagine your customers sitting around a conference table waiting impatiently. You step to the front of the line at the car rental counter, with six other exasperated businessmen behind you who are late for their meetings, too. The rental agent plunks the contract down in front of you, and circles all the places on the contract that you’re supposed to sign or initial. Then she stares at you, as if to say, “Hurry up!” The print is small. The sentences are written in Legalese. You’d like to stop and read the fine print, but you can feel the people behind you getting more upset. You thought you were renting a car for $35.00 per day. With all the add-ons, the cost is now $70.00 per day.

Oh…the pressure…the panic! You cave in, signing and leaving your initials in all the right places. You take your contract and keys and head for your car, inwardly feeling like a failure and mad because you didn’t stand up for yourself.

If the preceding story is too familiar, there’s hope just ahead!

It doesn’t matter if you’re a regular car renter or just an occasional traveler who needs to rent a car, you’ll likely face these kinds of choices at the car rental counter. Some folks just decline everything. Some folks purchase all of the coverage offered.

But…are you wasting bunches of money on unneeded coverage or leaving yourself dangerously under insured? Before leaving on your trip, I recommend that you make two phone calls – one to your auto insurance company and another to the credit card company you’ll be using to pay for the rental car. You’ll need to find out if you have automatic coverage for your car rental from each company, and the various terms and conditions for that automatic coverage.

FIRST…CALL YOUR CAR INSURANCE COMPANY

In your personal or business auto insurance policy, there is coverage for damage to your auto. The Insuring Agreement in most policies says: ” We will pay for direct and accidental loss to ‘your covered auto’ or any ‘non-owned auto,’ including their equipment, minus any applicable deductible shown in the Declarations.”

Another phrase is VERY IMPORTANT!

“If there is a loss to a ‘non-owned auto’, we will provide the broadest coverage applicable to any ‘covered auto’ in the Declarations.” Here’s an example of how this would work for you:

You have two vehicles. One is a 2006 Toyota Camry with full coverage. It’s worth $24,000. The other is a 1980 Chevy S-10 pickup worth $1,500 that you only use for trips back and forth to the local home improvement store, and you only have liability coverage on the pickup. If you rented a car and it got damaged, your insurance company would provide the full coverage for the rental car, which is the broadest coverage in your policy.

If you normally drive an older car with only liability insurance on it, there will not be any property damage insurance extended to the rental car. In this instance, you should either use the credit card’s Collision Damage Waiver or buy the CDW from the car rental company.

Ask your insurance company representative how much coverage you have on your car. Ask if there is a limit of value on your Collision coverage. If there is a limit, and you drive a 7 year old Ford Taurus that’s worth $5,500…and you rent a new Cadillac Escalade that’s worth $55,000…will your personal auto insurance cover the damage to the higher valued vehicle? REALLY important to know this…you could owe the rental car company tens of thousands of dollars to repair or replace a high value rental vehicle if you’re not properly covered.

Find out the limits of liability. Make sure that your limits are higher than the minimum limits required by your state. Limits above $100,000 per person/$300,000 per accident for Bodily Injury, and $100,000 for Property Damage are very inexpensive. Make sure that you limits are no less than that amount…higher would be better.

Find out what collision and comprehensive deductibles you have on your car, because those deductibles will apply when you rent a car and use your own insurance for rental coverage.

Make sure that you have Uninsured Motorist and Underinsured Motorist coverage on your personal or business policy. If you are in an accident with an uninsured motorist, and the accident is his fault, recovery will be practically impossible. Likewise with a motorist who is underinsured. Best to have your own coverage protection.

Q: What if I don’t own a car, and don’t have car insurance?

A: If you do not own a car, you won’t have an automobile policy. You should buy the rental car coverage, both the CDW and liability coverage. Or, you should use your credit card’s CDW and buy the optional liability coverage from the rental car company. If you’re a frequent car renter, however, you can still buy a “non-owner” liability policy. This solution might save you money over the coverage available through the car rental company.

Q: What happens if my personal property inside the car gets damaged or stolen?

A: Most Collision Damage Waivers provide coverage for theft of the vehicle, but not any personal property stolen or damaged inside the vehicle. Check your homeowners or renter’s insurance policy because you may have coverage through them for your stolen or damaged personal property. A deductible will likely apply.

Here’s a super important tip! Some people think that, if they purchased the Collision Damage Waiver or used the CDW from their credit card, and the rental car got damaged, they don’t have to report it to their own insurance company. They are hoping that because the CDW covers the damage, it won’t affect their own insurance policy….and they won’t get a rate increase. WRONG!!! Don’t be misled into thinking that you can get away without reporting your accident to your own insurance company. In most accidents, more things get damaged than just the rental car. Even if your accident is just you running into a guardrail, whoever owns that guardrail is going to look to you to pay for the damages. Also, other people might have been injured. You could have a large liability exposure, and you might need your personal or business auto policy to cover your loss. Your insurance policy includes legal representation if someone files a lawsuit against you for damages.

If you’re going to use your own personal or business auto coverage, decline the Collision Damage Waiver on the car rental contract.

NEXT…CALL THE CREDIT CARD COMPANY

Ask your credit card company about the benefits they offer. Each company is different, and each level of credit is different. For example, a regular card might have different insurance benefits than a gold or platinum card. Ask the card company to send you your benefits IN WRITING. If you’re in a hurry, ask them to fax or email it to you.

Some cards may only cover collision and comprehensive, and leave you uninsured for liability. Some cards only offer coverage when you rent from a certain rental company. Some restrict the number of days of coverage. Some cards don’t automatically cover you and require you to sign up for a particular program. Still others limit the kinds of vehicles you can rent. (see below for some exclusions)

If you have more than one credit card, call each one and find out the card with the best benefits. Then, use that credit card to pay for your rental car, and use their benefits.

If you’re planning on using the credit card company’s coverage, you must decline the Collision Damage Waiver shown in the rental car contract. Otherwise, the credit card company’s coverage will become excess to the coverage in the rental car company’s Collision Damage Waiver. “Excess” means that any other available coverage would pay first, and the credit card coverage would pay any remaining portion of the loss.

Credit card Collision Damage Waivers cover:

o vehicle damage

o theft

o loss of use

o towing

See your credit card company’s written CDW for all the details.

Collision Damage Waivers exclude:

o Injury to anyone or damage to anything inside or outside the rental vehicle.

o Loss or theft of personal belongings.

o Liability

o Loss due to intentional acts, like DUI, drug use or other illegal activities.

o Off-road operations. If you rent an SUV and take it off-road, no coverage.

o Rental periods of more than 15 days within your country of residence, or more than 31 days in a foreign country.

o Vehicles that do not meet the definition of “covered vehicles,” such as:

– expensive, exotic and antique vehicles

– certain vans

– pickup trucks

– other trucks

– motorcycles and ATVs

See your credit card company’s written CDW for all the details.

CAR RENTAL INSURANCE

Most major rental car companies offer these four coverages.

o Collision Damage Waiver (CDW). This covers a rental vehicle damaged by an accident, vandalism, theft or loss of use. Costs range between $9 and $20 per day.

The most misunderstood part of car rental coverage is the Collision Damage Waiver, or sometimes called the “Auto Rental CDW.”

Remember…the car rental CDW provided by the car rental company is not insurance. Insurance is regulated by each state. Collision Damage coverage is a waiver. The car rental companies agree to not hold the renter responsible if the rental car is damaged or stolen, and they guarantee that they will pay for certain damages listed in their coverage agreement.

In many cases, the waiver also provides “loss of use” coverage, which pays the rental company if the damaged or stolen car cannot be rented. In most states, car insurance policies don’t cover loss of use. So, if you choose not to buy the Collision Damage Waiver, you might have a loss of use exposure if the rental car gets damaged. But if you’re using your credit card’s automatic coverage, it will pay for that loss of use.

Some car rental companies will require you to pay for repairs or replacement costs out of your own pocket up front, and then you have to get reimbursed by your own insurance company. Being forced to come up with thousands of dollars in immediate cash could ruin a vacation. You’re protected from these up-front costs by the CDW. Read your rental contract CAREFULLY!

o Personal Effects Coverage. This provides coverage for theft or damage to personal items inside the rental car. Costs range between $2 and $5 per day.

o Supplemental Liability Insurance. This provides liability coverage up to $1 million. Costs range between $7 and $9 per day.

o Personal Accident Insurance. This covers you and passengers in your vehicle for medical expenses. If you already have personal health policies or travel policies, it won’t be necessary to buy this optional coverage. It usually costs between $3 and $5 per day.

Corporate Travelers. If you’re a frequent traveler for business, do one other thing. Check with your company to find out if they have a corporate travel policy. If they do, find out what that policy covers, and then simply don’t buy duplicate coverage on the rental car contract.

Car rental outside your country of residence. Some insurers exclude coverage if you’re driving in a foreign country. Some will cover you, but only a limited time. Some credit card companies cover car rentals outside your country of residence. Check with your insurance company and credit card company for specific details, and GET IT IN WRITING!

Q: Can I allow others to drive my rental car?

A: If you’re using your personal or business auto coverage to cover your rental car, the chances are all “authorized drivers” are covered. An “authorized driver” is anyone listed on the policy. However, here’s a BIG GOTCHA! If your teenaged son drives your rental car and he allows his girlfriend to drive the car, you’re covered. If the girlfriend allows another person to drive, NO COVERAGE!

Some car rental companies have exclusions for young drivers. Some charge extra for young drivers. Find out this information BEFORE you arrive at the car rental counter.

Q: How do I file a claim if I’ve had an accident?

A: When you experience the damage or theft, immediately get a camera and take lots of photos of the damage, including any other autos or property that was damaged. Keep those photos! Notify the rental company IMMEDIATELY of the damage.

Report the damage to your own auto insurance company if you have personal or business coverage.

When you return the vehicle to the rental company immediately ask for:

o A copy of the accident report and any claim documents, which should show the amount you’re responsible to pay, as well as any amounts that have been paid toward the claim.

o A copy of the initial and final auto rental agreements.

o A copy of the repair estimate or the paid repair invoice.

o A police report, if one exists.

So the bottom line is this:

If you have personal auto insurance, commercial auto insurance or corporate travel coverage, it is usually not necessary to pay for the Collision Damage Waiver or extra coverages offered to you by the rental car contract. Your situation may vary.

Get everything in writing, and make an informed decision. Then enjoy your car rental experience!

Questions to Ask Before An Auto Insurance Purchase

Information about auto insurance companies and coverage options are available from multiple sources for examples the state’s department of insurance, magazines, and independent reviewers’ websites. Insurers operate within the scope of state’s regulations, so everyone will get more or less the same suggestions. There are laws that govern how insurance companies conduct their businesses. There is a clear boundary between legal and illegal practices, but customers still need to do their due diligence to not only avoid frauds but also purchase the right insurance policy that contains the right coverage from the right company.

Insurers have their own methods to determine price and coverage. Apart from company’s policy, customers’ personal data and previous DMV records, behaviors on the road are also essential. Two people who have the same car model and make can get different quotes because they have different records and preferences as well. Here are some questions policyholders must ask themselves before they decide to purchase coverage from any provider.

1. How Much Do They Drive?

More mileage per policy period means more expensive premium. A person who drives a car every day of the week to commute spends more time on the road, hence higher risk of accidents. Distance between home and workplace also helps determine auto insurance premium. Therefore, someone who drives short distance should pay less for auto insurance coverage. Some companies provide discounts for low mileage, too.

2. Do They Use Their Cars for Commercial Purposes?

There are two types of auto insurance policy: personal and commercial. Personal auto insurance is for those who drive for personal purposes for examples to their workplaces or leisure travels. All types of coverage in the policy protect the safety of the drivers and cars. Commercial auto insurance provides more complete protections such as for cargo or passengers (who are not from the same household). Financial protection for cargo means more expensive premium, but this is necessary from business point of view.

3. Do They Have Any Emotional Attachment with Their Cars?

People who love their cars very much need the best protections available from providers. In addition to minimum coverage requirement by the state, optional coverage is necessary to protect cars from wide range of potential dangers. Collision, Comprehensive, and Road Assistance are not mandatory, but they must purchase such coverage for better protections. Additional coverage increases premium rate.

4. Does Anybody Else Drive the Car?

Other drivers (for examples spouse, children, or anybody who lives in the same household) must put their names in the policy. Additional drivers mean more expensive premium, but it can be cheaper when the other driver is a teenager. Insurance companies tend to think of young drivers as high-risk, so it is best to list their names as secondary drivers to minimize cost.

5. What Type of Cars Do They Drive?

Cars with minimum safety features cost more to insure. Sports cars or luxurious models are expensive to repair, and this is why auto insurance providers charge higher premium.

6. Do They Own or Lease the Cars?

Full ownership of the car grants the right to choose any combination of insurance coverage available from provider. When the car is still under lease or finance agreement, the financial service that leases the vehicle often requires driver to include specific type of coverage as part of the deal. In this case, total cost for insurance is almost always more expensive than the amount full owners have to pay.

7. Where Do They Park?

Policyholders’ address is also an important thing to consider. People who park their cars in urban areas where crime rate is high tend to pay higher for auto insurance. There is higher risk of theft and vandalism in the area, so additional protection is necessary. Car owners who live in suburbs often pay less.

8. Do They Have Any Traffic Violation History?

Traffic law violations in the past affect the current premium rate. Records of DUI, involvement in major accidents, improper turn, and failure to produce driver license or insurance card affect premium. When an insurance company thinks that a driver is too risky to insure, the driver needs non-standard auto insurance. The term “non-standard” refers to coverage for high-risk drivers.

Terms and Conditions of Auto Insurance

Based on the high rate of accidents which happen each year, it is imperative that anyone driving a car whether it is your car or a friend’s car must have an auto insurance policy even if it is the least of all insurance policies available.

An insurance covers the policyholder and in most cases it covers other people who use the car or the driver. However if the car gets into an accident which is not in the interest of the policyholder, or in violation with the agreement between the policyholder and the insurance company, the insurance policy will not cover the damages from such accident.

In instances where the insured vehicle gets sold to another person, the new owner is covered by the third party liability Insurance and also by the comprehensive car insurance policy (if there is any) within a period of 3 weeks after the change of ownership. When there is a new active insurance policy, all deductibles under the insurance will be paid by the new car owner.

Auto insurance does not cover damage to vehicles in company possession for purpose of sale

Depending on the car insurance policy agreement between you and your insurance company, there might not be a need for you to notify them when the terms in the policy agreement changed. The consequence of refusal to notify the insurance might be forfeiture indemnity and compensation if an accident occurs or reduction of the indemnity and compensation or lapses in the payment if indemnity and compensation.

Therefore to avoid the consequences stated above, whenever there is a change in the policy information notify your insurance company immediately.

You can purchase the same auto insurance from two different insurance companies without terminating the initial insurance with the first company but when an accident occurs, the agreement in your car insurance policy will applied, and this may mean that both companies pay half is the cost for the accident each.

Another important thing to note regarding auto insurance is the deductibles which are based on the agreement in the auto insurance policy. Deductibles are deducted only once in cases of an insurance event involving both third party liability and damages under the comprehensive auto insurance.

No deductible will apply in situations such as:

1. Damages from a known liable tortfeasor

2. Damages from fire, explosion, lightening or theft

3. Damages from items falling on the car.

Furthermore, there will be additional deductible if there is driving damage to the car by another person other than the policyholder, or any registered user of the three car under the auto insurance policy.

There are certain accidents which your auto insurance policy may not cover. Under the liability insurance, your auto inside policy does not cover;

1. Injury to the driver

2. Damage from the carriage of goods by road under the acts of contract

3. Damage to attached vehicle

4. Damage which occurred at the time the vehicle was rented out unless it can be proved that the damage is as a result of occurrence which is in accordance with the auto insurance policy

5. Damage to items belonging to the driver, policyholder, anyone stated in the auto insurance policy it a regular user.

The following accidents are not covered by the comprehensive auto insurance:

1. Damage resulting from weather conditions

2. Damage car parts during repairs unless it can be proved the damage had occurred during the driving or by fire

3. Damage in the electrician and mechanical parts the vehicle, unless it can be proved the damage occurred in accordance with the auto insurance policy

4. Damage resulting from reckless driving i.e. Overheating or no change of oil

5. Damage which occurred while the car was rented out

6. Damage which occurred from intoxication of the driver

7. Damage caused intentionally by grid negligence

8. Loss of the car due to seizure of the car by law enforcement authority

9. Damage under warranty and guarantee

10. Damage from usage of the car such as wear and tear, scratches on the car body and so on.

Duration of the auto insurance policy is based on the agreement between you and the insurance company. Most auto insurance agreement are annual and are renewed yearly unless it’s canceled in writing by the policyholder or the insurance company with a month’s notice.

Guide on How To Save On Auto Insurance

Saving is always a wise act. Saving on insurance is good for as long as you do not suffer the essentials in exchange of saving a few bucks. What would be the wisdom in being able to save a little only to spend that much in the end because the auto insurance you got has limited coverage? The point being here is not to advise buyers to get the most expensive auto insurance but rather to give the buyer the chance to discern with regard to what they need and what they will be getting.

The very thing to consider trying to save on auto insurance is getting the right one, granted that you are still on the verge of getting insurance. Here are several ways to save on car insurance:

1) Take advantage of the competition. The very nature of competition, of having several players in the market is to extract the best deal for the client. For insurance companies to attract customers, they must try to offer the lowest premium possible. Although this can be affected by a number of factors like driving record and area or territory which the client lives, it still is a good point to start.

2) Know what coverage you really need. Knowing what you need would pretty much dictate the coverage you would require. At times people are not able to save in getting auto insurance is because they get to pay more for certain coverage they really do not need.

3) Utilize available payment schemes.It is of big help if you can pay for your premium in instalments. You may have to pay a bit more overtime but you may not be demanded to give out a considerable amount of money in one giving. This will be a factor in saving if in the end it allows you elbow room in your finances.

4) Consider the type of car that is less to insure.One way to save on auto insurance that most people tend to overlook is the fact that the kind of vehicle they will insure very much affects the premium. Care to find out which type of vehicle would require lesser premium most especially when you get collision and comprehensive coverage.

5) Choosing your deductible. A deductible is the amount that the insurance does not pay for repairs and is shouldered by the client. Should the client decide to raise his/her deductibles, the insurance premium is lowered.

6) Improving ones credit. A client’s credit is a big factor when auto insurance companies compute for how much to charge. A good credit standing is always favourable.

7) Appeal traffic violations if contestable. A traffic ticket increases the premium in auto insurances. When a traffic ticket aka civil traffic citation is contested, it is always before a judge. If the court finds reason in your plea, the decision will be in your favour. In that case you would not be charged for the violation. No violation, no bad record. No bad record means there will be no increase on your premium.