How Can I Save Money on Auto Insurance?

Auto insurance prices can vary by hundreds of dollars depending on the insurance company and the type of care that you drive, so that the obvious question is: How do I save some of that cash?
Tip number one: Shop around. Prices can vary considerably from company to company so it pays to shop around and see who can offer you the best deal. It’s important to choose a company that is financially stable; you can check the financial health of insurance companies with rating companies such as A.M. Best (www.ambest.com) and Standard & Poor’s (www.standardandpoors.com/ratings) and you may consult consumer magazines as well. However, price may not be the most important thing; make sure that you have the appropriate coverage as well, it makes no sense to save two dollars in premium and put at risk and additional twenty thousand in property coverage.
Tip number two: Before you buy a care, compare insurance costs. Car insurance premiums are based in part on the price of the vehicle, it’s overall safety record, the cost to repair the car, and the likelihood of theft of that particular car. You can get information regarding vehicle safety at the Insurance Institute for Highway Safety (www.iihs.org).
Tip number three: Ask for higher deductibles. The deductible is your part of the accident, and it should be obvious that the higher your part is the less the insurance company pays, and if the insurance company is going to pay less than they should charge less as well. You should always have enough money set aside so that you can easily pay for your deductible should an accident occur. Additionally, if you have the vehicle financed some banks restrict the deductible to a maximum amount of five hundred dollars.
Tip number four: Reduce coverage on older cars. If your car is older and worth less than three thousand dollars it may be cost effective to not purchase collision and comprehensive coverage.
Tip number five: Buy your homeowners and auto coverage from the same company. Most insurance companies that provide both home and auto insurance coverage will provide a multi-policy discount. Additionally some insurance companies will reduce their rates for long-time customers. Another common discount is the multicar discount.
Tip number six: Maintain a good credit record. Insurance companies have begun using your credit information to establish a rate for auto insurance coverage, and it is true that the fewest number of claims are made by people that have a higher credit score; therefore, pay your bills on time, keep your balances low, and don’t obtain more credit than you need. Additionally, keep a close eye on your credit score and correct any errors promptly.
Tip number seven: Take advantage of low mileage discounts. If you don’t drive very much you should be rewarded for it, take a look at the Snapshot Discount from Progressive, other insurance companies will offer similar discounts, but they seem to be the most aggressively discounter out there now.
Tip number eight: Seek out other discounts. There are all kinds of discounts available and you should see how many you qualify for: paperless discount, good driver discount, good credit discount, low mileage discount, long-time customer discount, multi-policy discount, good student discount, distant student discount, multi-car discount, accident free discount, defensive driving course discount, antitheft discount, advanced quote discount, homeowners’ discount, and many more discounts; however, that being said, the key is the final price and not the discounts, some companies may be able to offer a lower price even if they have fewer discounts.

What Does the Price of Gold Have to Do With My Homeowner’s Insurance?

A common question that I am often asked is: Do I have to document everything that I own in order for it to be covered under my homeowner’s policy? The simple answer is no. Your insurance company will believe you if you say that you had two pairs of blue jeans and a color TV that was damaged as a result of …Lightning; because, everybody has at least two pairs of jeans and a color TV, and if you don’t have it at policy inception you will most likely buy it during the policy period, so that it would be ridiculous to make everyone report each and every personal item bought and owned.
However there are some items that are covered, but the limit is restricted.
* Money, bank notes, bullion, gold, silver coins, etcetera. Have a $200.00 limit
* Securities, accounts, deeds, letter of credit, notes tickets, stamps, etcetera have a $1000.00 limit
* Watercraft is subject to a $1000.00 limit. If you have a REAL boat (not a rowboat) buy a watercraft policy.
* Any trailer (except one used with watercraft) is subject to a $1000.00 limit
* Firearms have a $2000.00 limit
* Silverware and gold ware are limited to $2500.00
* Jewelry, watches, furs, artwork, and precious stones are limited to $1,000.00
If you have any of the items listed and their value exceeds the available limit on the policy it will need to be scheduled; meaning that we specifically list it and its value on the policy and pay and additional premium for it. Now, lets assume that you have a diamond ring that is worth $3000.00. You go ahead and get it appraised for the $3000.00 and bring the appraisal to your agent. Your insurance agent will add it to your policy for an additional premium. How much? Maybe $30.00/year. It’s a great deal.
Now lets assume that the diamond ring was appraised for $3000.00 ten years ago. The price of gold has more than doubled in the last ten years, and the price of silver has gone up at least five times in that same period. I would be willing to be that the ring is now worth more than $3000.00.
I have a friend that scheduled her jewelry on her homeowner’s policy – her and her husband’s wedding bands, and one other gold ring – some years ago; they were stolen when her home was broken into. She was only able to replace one of the three rings with the insurance payment. The appraisal was far out of date and the value of the jewelry had increased dramatically.
If you have any valuable items make certain that they are properly insured and that they are insured to value.