Do you have many claims? If so, you should do all you can to
reduce them or even endeavor to file no claims at all. Why do I
bring this issue up in an article about lowering your auto
insurance quote? Because the number of claims is the single
factor that to the highest degree influences the cost of your
insurance premium. Let me give you an example: Let's say you
have 5 years of no claim. Most companies will then give you an
unbelievable discount of your premium, some of them even 75%! It
goes without saying that this is the most powerful way to get
cheap insurance.
How can an insurance company do this?
Look at an insurance company as a big box of money dropped in by
people who gets security in return. What the company does is
simply to reallocate the money that is left when the payments
for damages are deducted.
People that have many damages
and file many claims, must pay a higher premium and thus get a
higher car insurance quote.But a safe driver that avoid claims,
is rewarded with a lower one. Fair enough?
If you are new
to insurance - or even if you have had insurrances for some
years, but feel you lack knowledge about it. - I'll advice you
to learn the basic auto insurance terminology, before you start
to shop around. It can help you, not only to get a low cost
insurance but also to make the correct coverage decisions for
you. Let's do a little test: Do you need PIP coverage? What does
PD coverage mean? What is BI coverage?
Do not accept the
first quote you get
If you ask an insurance company for a
quote, you can be almost hundred percent sure you'll get a
better one from at least one other company. Comprehensive
marketing research the recent years has shown that prices for a
new six-month policy with comparable coverage can vary greatly
between different companies. And we are talking about spreads in
rates of at least $500
So, equipped with this knowledge
both you and I know that it pays to do a little legwork and shop
around for car insurance.
Most insurance companies have a
form of questions you must provide answers to in order to get an
understanding of your security situation. It is really
astonshing, how much the criterias for determining the price can
vary between companies. What one company may consider a high
risk factor another company may view as a minor risk. So why not
take a little time to compare rates for a number of different
companies?
The first thing you should do before you start
this comparison is to go through your insurance coverages and
keep your auto insurance policy on hand. Then go online and
start to shop around. The internet is probably the most
comprehensive, fastest and easiest way to find a decent vehicle
insurance quote.
And what's even more incredible, many
insurance companies now offer some great discounts for buying
the policy over the web - a discount that come in addition to
the no-claim discount described above.
How is this
possible? To handle an insurance sale in general cost money for
the companies. However, a sale on the internet will cost less
money than selling it over the counter. They do not have to
involve human resources if you purchase it online. Thus the
companies save money on your internet purchase, and a part of
this saving is passed on to you as a discount, a significant
discount if you buy from the right company.
About the Author:
Terje Brooks Ellingsen is an internet publisher, and runs
http://www.cheap-used-cars.w-eland.com/ He helps people with
automotive issues like how to get cheap car insurance, see
http://www.cheap-used-cars.w-eland.com/cheap_car_insurance.htm
and vehicle insurance in general, see
http://www.cheap-used-cars.w-eland.com/cheap_car_insurance.htm
