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Car Insurance–calculating Your Premium

admin — Mon, 10 Aug 2009 17:15:21 +0000

Car insurance is a legal requirement for anyone getting behind the wheel of a car. Whether you are a learner driver, or have been driving for 30 years, you simply cannot drive a car without having car insurance of some kind. If you are caught driving a car without car insurance, you face a hefty fine and points on your licence.

Calculating your car insurance can be difficult as there are so many things to take into account, but here we can show you how to do it easily. There are hundreds of companies offering car insurance online, and we can help you find out how to look for the cheapest car insurance online.

Before looking at what car insurance entails, lets look at the legal requirements for driving so you can see if you are eligible to take out insurance on a car.

To be considered for car insurance you must be over 17 and either hold a provisional licence or a full driving licence. The vehicle you are looking to insure must fall into the categories of vehicle you are allowed to drive – and this will be shown on your driving licence, a full one or a provisional.

Calculating your car insurance and getting the cheapest car insurance online or face-to-face depends on a number of factors. Your age can play a big part as younger drivers are considered more of a risk to people offering car insurances. Any speeding convictions or points on your licence for other driving misdemeanours can also have an effect, as can the type of car you are insuring, the number of years you have when you have not claimed anything against your car insurance and the amount of people you want to add to your car insurance.

It may seem a bit confusing, but most online car insurance providers can offer quotes in minutes. Just make sure you have all your details to hand so you can answer everything that is needed.

Ideally everyone wants the cheapest car insurance. That can sometimes mean insuring yourself third party, which means you are only covered for damage inflicted by you to a third party vehicle or property. The problem with this is your car could end up with severe damage, yet you will have to cover any of these costs yourself or have the car written off, meaning the value of the car is less than the expense to repair it.

Another factor to take into account when calculating car insurance prices online or otherwise is where you will leave the car overnight. Discounts usually apply if your car is on a driveway or in a garage rather than on the street. If you have a driveway and use it, make sure you say so.

If you take all these factors into account and arm yourself with all the information before looking online for quotes, you should have no problem calculating your car insurance.

Some Tips for Insured on Keeping Your Auto Insurance Premium Rates Down

admin — Mon, 13 Jul 2009 02:55:49 +0000

you can use car insurance rates comparison

There are so many ways that you can use to keep your auto insurance rates down and some of them you can use at the same time as other discounts to maximize your savings.

Here are some things that you can ask your auto insurance company for:

- Ask if you can receive a discount if you have more than one type of insurance with their company. For instance, you may find that you can have your auto insurance and your homeowner’s insurance with this company and they will provide you with a combined discount. Carry all of your insurance policies with them, such as auto, home, and life and you may find that you can get even more money off.

- If the driver of the car is a student or is listed as a driver on the car, you may find that you can get a good student discount. This is where the student maintains at least a B average on their report card. You may be required to take that report card to the automobile insurance company each time it comes out, but it really pays off. If grades go down, the discount may disappear until the grades go back up.

- See if there are any safe driver discounts available. When you haven’t had a ticket or an accident, you may find that there are discounts available for you.

- If you are a senior citizen and you’ve not had any accidents in a specific amount of time, there may be discounts available to you.

- You can always raise your deductible to cheaper car insurance premium online from auto insurer. However, you need to keep in mind that doing so will result in a higher out-of-pocket expense if an accident does occur. The standard deductible is $500, but some individuals will go as high as $2,000 to save some money on their premium. If you can pay $2,000 if an accident occurs, then that will work fine. Just make sure your deductible is not higher than what you can afford in case damage is done to your car and you need to pay it.

- You may wish to shop around. You may find a company that offers the same coverage for a lower price. You always want to compare before you make a commitment.

You want to use all of these tips so that you can save yourself quite a bit of money.

How you can compare auto insurance quotes online?

When finding the right company to do business with, it is very important that you compare. You can do this by calling companies and recording the different rates that they quote you. You can also do this by going to their websites and filling out the forms on their websites to receive quotes for the auto insurance you want. This allows you to compare in a much easier way. Take all of that information and make an informed decision.

Related Blogs

Five Tips to Cut You Car Insurance Premiums

admin — Tue, 30 Jun 2009 13:38:04 +0000

Now is a more important time than ever to find ways to save money on your car insurance. If you own a car you will be more than aware of the huge costs involved in addition from rising fuel prices, maintenance to repair costs. Car insurance is now the main day-to-day cost for many UK motorists however you can cut your motor insurance premiums by following the tips and advice in this guide.

1. Choose Your Car Carefully Most of you will already own a car however for those who haven’t yet purchased a car and those considering an upgrade it is always important to factor in costs involved in running the car especially the motor insurance premiums it is likely to attract. All cars are rated on a scale of 1 to 20; a Group 1 car would be a Ford Fiesta 1.25 and at the other end of the scale, a BMW 5-Series M5 Group 20.

2. Location, Location…of your car After your car choice the next major factor that affects your premium is where you live. If you stay in a city it is the riskiest place for insurers therefore premiums are higher. Those living in or considering a move to the countryside can expect to see their car insurance premiums reduce by as much as half. You can receive a small discount for storing your car on your driveway or if is kept in a garage overnight you can expect a much bigger discount. It is also possible to get a discount on your car insurance premiums by agreeing to a limited annual mileage.

3. Protect Your No-Claims Discount Once you start to build your no-claims discount you can expect substantial discounts on your insurance premium and those who have several years no-claims can benefit from very cheap car insurance . If you lose your no-claims it is a disaster as insurance premiums will rise drastically however some insurance providers recognise even the most careful drivers can have bad luck and end up in an accident once in a while and offer a “protected discount”, for a small charge, once you have reached the highest level of no claims discount.

4. Add Security You can use a steering wheel lock to protect your vehicle and give you peace of mind unfortunately though it won’t reduce you car insurance premium. To bring down your premium you need to install a pukka immobiliser; which is of ‘Thatcham Category 1′, the highest level of security. Its worth researching to see the impact on car insurance premiums however as it’s expensive it may only be worth doing if you car is of high value.

5. Shop – Compare before buying car insuranceCar insurance is a highly competitive market and is available from a huge array of providers. The quickest and least stressful way to search the market is to use a comparison site which will allow you run a detailed search, giving you quotes from the car insurance providers without having to do the leg work yourself and allow you to compare in detail the offers and features of the different car insurance companies. Taking just a few minutes to run a search can potentially save you hundreds of pounds on your car insurance!

4 Questions to Ask to Find the Best Car Insurance for Your Needs

admin — Sat, 13 Jun 2009 11:51:22 +0000

If you are embarking on a plan to get car insurance for your new or used vehicle, you may not be sure just what kinds of coverage you need to get in order to be properly protected. Here are some questions you can ask yourself to decide what you need to purchase in a car insurance policy.

What condition is your car in?

The answer to this question will help you decide how much collision coverage you need on your car. Collision auto insurance is the coverage that takes care of repairing or replacing your car if you are in an accident.

If you have a newer car, or a very special older car (such as an antique), you may want to have a higher level of collision car insurance on that vehicle. You want to know you can replace or repair the car were it to be damaged or totaled in an accident.

If you have an older car that mainly does it’s job of getting you around, you may want to go easy on the collision insurance and save the extra money to buy another car if you should need to.

Are you in a no-fault state?

While you may think you are a safe driver and you won’t be responsible for any damage to your car, you need to know if you are in a no-fault state. If you are, that means your insurance will have to pay for your car’s damage even if the accident was not your fault. In this case you will need to make sure your comprehensive insurance is enough to pay for the replacement of your car were the worst to happen.

What amount of medical coverage do you need?

If you regularly have people in your car, you will want to make sure you have medical coverage for passengers worked into your auto insurance policy. If, however, you are alone and almost never have anyone else in the car with you, you may be able to limit this type of coverage and save yourself a couple of dollars on your car insurance premium.

Are you insuring more than one car?

If you have more than one car that needs auto insurance, you may be able to save some on the overall cost by having all of your cars insured by the same company. Most companies offer loyalty discounts for having more than one policy with them.

Car Insurance Deductibles in a Down Economy

admin — Mon, 01 Jun 2009 15:14:53 +0000

Many consumers are looking to cut household expenses any way they can in these uncertain economic times. The first place most households often look is car insurance premiums. To clarify, a car insurance premium is the amount you pay to the car insurance company on a regular basis (ie monthly) so the car insurance company will fix your car in the event of a car accident. Car insurance can be considered a necessary evil. No one likes paying for car insurance. You have to pay for car insurance when you don’t use it and when you finally need it; car insurance companies make it a major hassle to obtain your money from them to fix your broken car.

One of the most common ways to reduce your monthly car insurance premium is to increase your insurance deductible. What is a deductible you ask? A deductible is the amount of money you pay out of your own pocket in the event of a car insurance claim (i.e. a car accident that is your fault).

As tempting as it may seem to raise your car insurance deductible to reduce your monthly insurance payment, you need to evaluate your financial situation first. For example, ask yourself, “If I raise my deductible from $1,000 to $2,000 do I have the $2,000 deductible set aside in the event I get into a car accident?” If the answer is no, you may want to postpone raising your car insurance deductible until you save $2,000 and can comfortably put it aside. If the answer is yes, you still need to consider your car driving habits and your risk of a car accident.

Your car driving habits can alter your car insurance expenses significantly. If you are a safe driver and can go a long period of time without getting into a car accident, raising your deductible may be a smart move. If you are not a safe driver and you frequently get into car accidents, raising your insurance deductible may not be worth it. The longer you go without getting into a car accident, the more money you save on car insurance expenses. If you get into a car accident shortly after raising your deductible, you may end up losing money. Let’s look at an example.

If increasing your deductible from $1,000 to $2,000 decreases your monthly car insurance premium by $25, then it would take 40 months (starting from the date you raise your car insurance deductible) for your monthly savings to cover the $1,000 increase in deductible (40 x $25 = $1,000). So that means if you have an accident during those 40 months, you are better off keeping your deductible at $1,000. With your driving record, can you go 3 years and 4 months without a car accident? If not, you may want to reconsider or change your driving habits.

So, you are a great driver and fully confident in your ability to go 3 years and 4 months without a car accident. Too bad it’s not that easy and too bad we don’t drive on roads without other vehicles. You also have to consider other drivers on the road. We all know there are plenty of dumb drivers on the road. Due to congestion and higher population, there are a larger number of morons on the road in the city than in the country. Your chance of getting into an accident in an urban environment is a lot higher than in a rural environment. So carefully take into consideration where you live, work and play before you raise your car insurance deductible.

Is raising your car insurance deductible right for you?

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