THE VALUE OF AN INSURANCE AGENT

With Internet usage on the rise, many consumers bypass their number one friend when it comes to saving money on car insurance – an insurance agent. An insurance agent’s job is to make sure people have the coverage that is right for them at a price they can live with. Insurance agents can, more often than not, secure rates that are not available to the general consumer – often with companies that are “invitation only”, meaning an insurance agent has to recommend you to the insurance company.

As an example, a young married couple with three children, college degrees and one past license suspension between them can pay, as a minimum, $1,800 a year to insure three cars, two of which are financed. Keep in mind that this is a good rate, when obtained without the assistance of an insurance agent, but through other means, such as a policy obtained on the Internet, through a reputable company. However, that same couple can go to an insurance agent, who can start a policy with one of the “invitation only” insurance companies, and end up paying only $900 a year for the same coverage. One little change, and that couple saved $1,000 a year!! That’s a lot of groceries!!

REMEMBER TO SHOP AROUND

Shop around. Even with insurance agents. Don’t give up until you have a quote you are satisfied with. Don’t overpay because you are lazy. Insurance agents can often quote premiums over the phone; it only takes a few minutes!

Do not rule out auto insurance quotes you obtain yourself, you may stumble across an inexpensive one at a website like E-Surance. To save money on car insurance, you should shop around as much as you did for your actual car. Just like car salesmen, insurance agents have the ability to haggle with the insurance companies to secure you a lower rate.

ASK ABOUT DISCOUNTS

Always ask about discounts, when signing your auto policy for the first time and each time the policy renews. It is not up to the insurance company or even your insurance agent to be proactive in detecting new discounts. If you recently completed college, got married, had a baby, took a defensive driver class or even had a birthday, it is a good idea to ask about new insurance discounts! It’s never too late to save!

So, when should a person ask for a discount? One of the best times is obviously after a period of time without any accidents or tickets. Begin talking to your agent after 6 months of no incidents. This alone could save 5%-10%.

Another good time is when your teen driver is making grades with an average of “B” or over. Many insurance companies have a “good student” discount. Along with that, making sure that the teen is listed as primary driver on the cheapest vehicle you have is a good way to save money on car insurance. Some companies also have discounts if your teen has taken drivers education classes. Some give discounts for college students. Tell your insurer right away.

Always ask for discounts for insuring more than one vehicle with a single company. This is a good business practice for the insurer. It is their best interest to have all of your policies with them so giving a discount is usually automatic. But ask just to be sure.

If you have health, dental, and home insurance with different companies ask for a discount for bringing them all under one roof. Again, not having to share premiums with other companies can make it worth the discount to them. This would also be a great time to see if your other insurers’ rates would be cheaper for auto insurance.

An important time to ask for a discount is after improving your credit score. Many insurance companies use credit scores in calculating premiums. The show of reliability and responsibility translates into maturity for the company. More mature drivers will have less accidents and cost the company less. Hence, a discount opportunity.

It is a good idea to ask for discounts on a regular basis. Just ask if you qualify for any discounts. That may bring your agent to thinking about discounts that are are not automatic. For you it could be a discount because you drive less miles than the average in your area. A purchase of anti-theft device is another discount that is not automatic. You may get a discount for for safety devices like side airbags. Tracking devices may also fall in this area. Accidents can cost thousands of dollars in doctor’s bills. Anything that will keep you safe saves them money. Reducing theft saves them money. If you are saving the insurance company money, then it makes sense for them to offer you discounts. So, go after those discounts. My agent Tim has got to be sick of me telling him that I always wear my seat belt every time I see him. If you are like me, just taking a vacation means saving money where ever I can. Saving money on car insurance is a simple step towards that.

Statistics show that men are more likely to break traffic laws, and receive traffic violations. This and other studies help the insurance companies set their rates when it comes to safe drivers. Men drivers are cited more than 50% that of women for; reckless driving, no seat belts, failure to yield, improper use of turn signals, and many more traffic violations. Let’s not forget DUI’s. Men are also more likely to drive under the influence of alcohol than women. After years of studies, the insurance companies have conducted, on their male and female policyholders, the results spoke for themselves. Men are risk takers, and seems to throw caution to the wind, when it comes to driving.

The study also showed that women are less likely to be at fault in an accident, when compared to men. Insurance companies pay out more money in claims, for men who are involved in accidents, than for women. With all these facts and evidence close at hand the insurance companies have made up their minds; that men are bad drivers, or worse drivers when compared to women. The price quotes that men receive, and the higher insurance premiums they pay, reflects their carelessness when it comes to safe driving. While age does matter, there are a lot of factors that men need to take in consideration when driving. Pay close attention to the speedometer, come to a complete stop when approaching a stop sign, and please, please, DON’T drink and drive.

All insurance companies use the NADA book for wholesale and retail prices and if they’re going to pay off your vehicle because of a lost this guide will provide the high and low amounts that your vehicle will be worth, and you can bet they will use the lower margin if possible. So for you the consumer having the wider range of coverages will protect your out of pocket cost if any later on. Consider it a savings plan even if you never go through the experience of having your car stolen or totaled in an accident.

Though most manufacturers today install anti theft devices, criminals have found new ways to get around them and as the adage goes, better safe than sorry, so by having better insurance coverages it’ll help you sleep at night. Of course this is my personal opinion and having lived through the experience of having a car stolen, I guess I am best qualified to assure you of the facts. Besides you don’t want to leave the appraisal to an insurance adjuster who will surely adjust the payoff in favor of the insurance company leaving you with an out of pocket expense on top of not having a vehicle to drive, so get the better coverage for your own peace of mind. On the flip side, if you purchased a less expensive automobile then I would suggest you stay with the required basic coverage and opt out of the more expensive one because the value of your car won’t be worth much because of the depreciation factor once you drive off the lot. Remember money spent well is money saved.

License restrictions are one way that state agencies and insurance companies are maintaining a handle on the situation. They have designed this system in an on-going effort to reduce the risk of teen drivers endangered on the highway. Therefore, young teen drivers are not exempt from complying with the law in regards to maintaining insurance. They are required to have the same coverage as a fully unrestricted adult driver. They need to have full coverage, liability, and personal injury protection insurance in place, before they are allowed to operate a motor vehicle.

Even though, each state requirement is different, but across the globe the basics are the same. Ensuring that all teens are educated and supervised will aid the teen to develop into safe highway drivers. Like the unrestricted adult drivers, teens who do not adhere to state laws, concerning the importance of maintaining proper insurance, will have their license suspended, until they have complied with state requirements. Once the young teen drivers have complied fully they can then have their driver’s license reinstated. They must show proof that they have satisfactory completed the necessary requirements to receive their license again.

Teen drivers are young inexperienced drivers who have no highway experience. Most teens get their drivers (learners) permit at the age of 16. The driver has yet to practice safe driving under the strict supervision of parental guidance. When parents take imitative and teens are held accountable it becomes a win, win, situation for everyone involved. The key to safe teen driving is educating our young teens on becoming safe drivers.

There’s two scenarios for stacking UM/UIM insurance coverage.
1.) If you have multiple cars in your plan with UM/UIM protection on each, you can collect the limit of the UM/UIM protection under as many automobiles to receive full payment for your injuries and property damage. Generally, there isn’t a restriction upon the amount of automobiles that may be insured and thus stacked this way.

2.) For those who have several auto insurance policies with UM/UIM protection, even though they are from two different auto insurance companies, you may make claims from each plan until all your damages are recovered.
In addition, you should be insuring more than one vehicle since the coverage is actually stacked between multiple automobiles. Your limits increase by the amount of vehicles you are insuring.

Here’s an example of stacking:
You had been in an accident where the other car owner was at fault and has absolutely no car insurance. Your accident as well as damages total $125,000. Assume your policy with regard to UM is 50/100 (fifty per person and $100,000 total for each event) and you insured three automobiles. By stacking the policy for the three automobiles your limits are $150,000 for each person as well as $300,000 per occurrence, meaning you would be totally protected.

There are about twenty states that permit stacking. Nevertheless, in many states that permit stacking, auto insurance companies have the right to incorporate language which prevents policyholders from stacking UM/UIM protection. Therefore, your state may enable stacking, but your insurance policy forbids it. You will be unable to stack your benefits. Check with your own states insurance coverage regulator plus your insurance agent in order to learn more about stacking your car protection.

The main advantage of stacking is that you’re providing your family with the maximum benefit if you are involved in an accident. If the other car owner doesn’t have enough or no coverage you will be completely covered for damages sustained.

One of the first things you will learn as a risky driver is how much more auto insurance will cost you. Finding ways to lower this can be done though with some simple steps on your part. Maybe the easiest way for risky drivers to lower insurance is with online price quotes. Many times people fail to realize that getting online price quotes can actually lower their costs. Getting several quotes will help you see what it will cost for you to get auto insurance. As a risky driver you could see quotes vary greatly so always keep this in mind when looking them over. Look over all the quotes very carefully choosing which ones are the best for your situation. This is just one way that risky drivers can lower the cost of auto insurance.

Another way risky drivers can lower auto insurance costs is search for high risk insurance providers. Companies that specialize in insuring risky drivers tend to have lower rates as they deal with high risk clients all the time. They can get you insured quicker at much lower prices than conventional auto insurance providers usually can.

Risky drivers cost insurance companies more money and into they will charge these drivers more for their premiums. Once you become a risky driver things change for you and it gets more costly. Changing that is the key. Talk to your insurance agent as they will be able to give you some tips to help you change that situation. It will not happen overnight, but eventually you can lose your risky driver tag. For now though your options will be limited as a risky driver and much more expensive than other drivers.

If you are in your early twenties you are still considered to be a high risk driver. Especially if you just turned 21 because now you are out drinking and risk getting a DUI. A great way to keep your cost of insurance low is by taking a defensive driving class from an approved DMV school. This will show the insurance company that you are practicing safe and responsible driving techniques.

Don’t be afraid to shop around for the best rate. Don’t feel obligated to use the same insurance company as your parents. You are the one paying for your insurance so you need to take the time to call different companies and see which company can give you the best rate quote. There are so many insurance companies available that you never know who will offer you the best rate.

Remember that you don’t have to drive a hot shot sports car. The type of vehicle that you drive plays a part of what you’ll pay for insurance. If you are shopping for a new vehicle then when you are obtaining insurance quotes have them give you rates on a few different types of vehicles that you are interested in.

There are a few different discounts that are worth asking about. If you have an alarm system on your vehicle ask about a discount for having an anti-theft device. If you are a student you can also ask about a discount for good grades. If you’ve had your license since you were 16 and haven’t had any tickets or accidents you could also ask about a safe driver discount.

If you take the time to follow these tips then you will benefit from an affordable insurance rate instead of throwing your money away. It’s not a difficult process but can be lengthy since you want to make sure you are not getting taken advantage of.

We all desire to get the best deal for our money these days and purchasing a used car can oftentimes be the best way to save cash. Most used cars can be a real bargain since the value of a new vehicle drops dramatically from the moment that it is driven off of the new car lot.

These are just a few of the questions that need to be considered before you commit to that used car purchase to avoid headaches down the road:

• Did the car have regularly scheduled maintenance?
• Was the vehicle ever involved in an automobile accident?
• Is the used vehicle actually a stolen vehicle?
• Has the used car ever experienced a flooding accident?

There are actually several options to insure that the used car you are buying does not possess a sordid past. There are various maneuvers often used by the used car industry that result in short-term memory loss and shady practices such as:
title washing, curb stoning and clean titling.

“Title washing” is the term used to describe a car title that where damage details have been miraculously washed from the memory banks of vehicle records. For instance, if the used car was involved in a flood, the title washers would erase any record of flood damage to the vehicle.

“Clean titling” is similar to title washing. As used cars are transported and relocated from state to state, certain details regarding the used car history are removed. The worst possible scenario is that the used car may actually be a stolen car and clean titling it would involve the forging of a vehicle identification number or VIN.

“Curb Stoning” involves taking a junked vehicle and offering the used car as a “private party” sale. Think about those “specials” that are advertised to garner your attention and require you to make a fast decision so that you “don’t miss out” on the one-day special. Many of these specials are in all actuality, curb stoning events.

Take heart because there are several ways in which you can protect yourself. The number one check has been touted on commercials for years and still has the greatest impact, “Show me the Carfax.” Carfax is the leader in researching the used car history. It has been called the Uncover Cop or Private Investigator for the used car industry. Ask to see the Carfax.

Experian is well-known as one of the country’s largest credit investigation bureaus so it also makes sense that they would offer a used car investigation service. Autocheck is the Experian version of a credit checker for used cars.

CarChex allows you to review past damage and accident history as well as the used car inspection history.

Finally, there is the National Insurance Crime Bureau which keeps records of all vehicle thefts and fake VIN numbers. You would definitely benefit from insuring that the used car you are purchasing is not on record with the Crime Bureau who acts like the FBI of the used auto industry.

Swerving

The most lethal driving mistake made by U.S. drivers is not staying in their own lane. — i.e., drifting off into the next lane or running off the road completely. According to the National Highway Traffic Safety Administration, in 2007, 15,574 people died in crashes caused by drivers swerving out of their lane.

Speeding

Speeding (driving above the posted limit, racing, or driving faster than road conditions warrant) is the second most lethal driving mistake (NHTSA). Driving a vehicle at speeds above 55 mile per hour is particularly perilous: 30 percent of lethal crashes occur at 55 or above.

Failure to Yield Right of Way

Failure to yield while merging into traffic is the most lethal driving mistake made by drivers age 70 and over. Overall, failure to yield right of way was the fifth leading cause of fatal crashes in 2007.

Driving While Drowsy

Fatigued driving caused the deaths of 1,404 people in 2007 (NHTSA). More lethal crashes occurred between the hours of 3 a.m. to 6 a.m. than at any other time of day. Driving while drowsy is as dangerous as driving while under the influence of alcohol or drugs.

Drinking and Driving

Every 45 minutes someone is killed in a drunk driving accident. Young drivers are particularly susceptible to making the lethal mistake of drinking and driving; drivers between the ages of 21 and 34 are responsible for more than half of all lethal crashes in which alcohol played a factor. The lethal driving mistake of getting behind the wheel while intoxicated is made most often at night and on weekends. In fact, according to the National Highway Traffic Safety Administration, 60 percent of drivers who died after dark in 2007 were legally intoxicated.

Not Wearing a Seat Belt

In spite of the fact that buckling up is the law, one-third of all vehicle fatalities occur in people who fail to wear a seat belt. It’s a particularly lethal mistake when you consider that, without proper seat belt usage, drivers and passengers put themselves at risk of being ejected from the vehicle in the event of a crash and that seventy-six percent of all ejections end in death.

Inattentive Driving

Eating, applying makeup, talking on a cell phone, typing text messages, attending to children or pets (ever see Fido bouncing around the front seat at 55mph?), and changing CDs or radio stations are all examples of inattentive driving, which was responsible for 4,704 deaths in 2007. Cell phone usage while driving increases the risk of crashing by four-fold. Think using a hands-free device reduces your risk? Think again. According to a study published in the British Medical Journal, using a hands-free cell phone can be just as lethal.