Reader’s Question:

What are some of the few reasons why auto insurance companies may lower auto insurance premiums?

Scott

San Diego CA

We are always seeking for the best deals in any of our purchases especially if they cost us our hard-earned money. Many people find auto insurance policies so expensive for them but they need to have insurance since state laws mandate it. As a result, they would have to scour the market for cheaper deals. There are some insurance providers, however, that have been lowering their auto insurance premiums from time to time in order to attract or maintain their current customers. They will do anything just to have you as their client, which includes lowering their premiums if they have to.

Sometimes, auto insurance companies will provide you discounted auto insurance premiums as a way of welcoming you as their new policyholder. This can either come as an introductory price, which can also serve as the company’s way of attracting you to buy their policies. However, you must look through the long-term benefits of this one. It may be good in the start, paying for lower premiums and all, but in the long run, is it a sustainable investment? How much will be discounted out of your premium in the start and for how long? What’s the regular price? This are just questions that needs to be answered so that you won’t be shocked when your insurance premiums suddenly skyrocketing high in the next months to come.

On the other hand, if you are a current customer, your insurance provider can give you lower auto insurance premiums as a way of thanking you for being a loyal customer. There are insurance providers that offer discounts to long-term customers in amounts that depend on how long the customer has been with the company. So if you are thinking about switching to another insurance provider since you don’t like your current policy, you might as well talk to your current insurance provider first and see if they can do something about lowering your rates to maintain the goodwill and loyalty.

Competition also contributes as to why companies will lower their insurance rates. The more there are companies in the insurance industry and if the number of people availing insurance remains the same, companies have to lower their premiums to attract potential customers to buy from them.

Reader’s Question:

What kind of policy should I look for from an auto insurance company for a used vehicle here in Virginia?

Maureen

Burke, VA

Good question, when looking to get coverage from an auto insurance company it is important to take note of the advantages when insuring a used vehicle. Unlike a brand new car, owners of used vehicles need not buy a policy that has very high comprehensive and collision insurance. In fact, owners of used vehicles may opt to drop collision and comprehensive insurance or keep it to a bare minimum since filing a claim with an auto insurance company with this kind of vehicle would not be cost effective. Your policy may have a $500 deductible for comprehensive or collision but if you have a car that is around $1000only, then you would save more in the long run by having damages on your vehicle fixed out of your own expense. If you would be getting minimal comprehensive and collision you could also increase your deductible to get much lower rates that will make for cheap auto insurance.

You would need to still have adequate liability insurance coverage, as per the Financial Responsibility laws of the state of Virginia. Your policy should have at least 25/50/10 worth of coverage purchased from your auto insurance company. That would mean $25,000 for each individual you injured in an accident, $50,000 for everyone you injure and $10,000 to cover for liability due to property damages. Make sure to shop around for the best rates online.

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Reader’s Question:

Would an auto insurance company give me discounts based on what kind of job I have here in Pennsylvania?

Kyle

Bethlehem, PA

Technically yes, an auto insurance company can give you discounts based on what kind of job that you have. But there are a few ways to answer and clarify this question more specifically. Auto Insurance Companies can grant you discounts if your job has a low probability of exposing you to auto insurance risks or car accidents there in Pennsylvania.

Another reason that a car insurance provider can give you discounts based on your job is if you are a member of the military, national guard or coast guard. Professionals such as engineers, doctors and teachers, while not getting a discount directly, tend to have lower rates as long as they have a good driving history. Being part of a professional group or certain club memberships also have discounts as part of their perks. Those professionals or individuals who have attended attained higher levels of education are generally considered to have lower levels of risk by auto insurance companies.

Aside from your job, did you know you can get other kinds of discounts as well? Taking state accredited defensive driving discounts is one of them, installing additional safety measures on your vehicle (Anti-lock Breaks, Air bags etc.) can also help make for cheap auto insurance. Undoubtedly, one of the best ways to get lower rates is to use auto insurance portals like this one that not only educates you on ways to get the most out of your policy, but also allows you to compare auto insurance quotes between different carriers, helping you find the best rates available.

Tags: auto insurance company, auto insurance companies, auto insurance, cheap auto insurance, auto insurance quote

Reader’s Question:

What kind of policies do auto insurance companies offer? I’d like to know more before I jump into getting coverage here in New Hampshire.

Tim

Nashua, NH

These days auto insurance companies offer many kinds of car insurance policies so it would be best to understand first how they work to easily identify the right kind of auto insurance for your vehicle there in New Hampshire.

Full Comprehensive Coverage
This is the kind of policy that you would be required to get if your car is being financed by banks or lenders. As the name indicates, this provides a full range of protection against financial loss in case your car gets totaled or damaged while you are still paying for it. Most of the time this kind of policy has a “No-Fault” provision but cheap auto insurance this sure is not.

Third Party Auto Insurance
This can further be subdivided into to kinds, Third Party Basic and Third Party, Theft &Fire. The first one is basically just coverage for liability you may incur if you cause an accident and subsequent injuries or damages to property. Most state would require you to purchase a minimum required level of liability coverage (25/50/25 for NH, the numbers represent amounts in thousands of dollars for liability on injuries per person, for all people injured and for property damage respectively). Third Party, Theft & Fire includes additional protection in case you lose your car due to fire or car theft.

Specialized Auto Insurance
Offered by auto insurance companies to those who own classic, performance-type or luxury type vehicles. Relatively cheap auto insurance compared to what you would get from a general insurance provider for these kinds of vehicle.

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Reader’s Question:

I have two cars here in Maryland, one is a pick-up that I’ve had like forever, and a brand new, smaller vehicle that for some reason costs me more to insure with my auto insurance company. Could you enlighten me on this?

Chino

Baltimore, MD

A lot of people gets surprised to learn that, most of the time, they won’t pay the same rate for two vehicles even if it is under the same auto insurance company. It would be beneficial to know about the different factors that affects your auto insurance rates there in Maryland to understand why rates on your two cars are different.

One of the main reasons why your other car is costs more to insure would be due to its inherent risk of getting involved into accidents. Statistics show that smaller vehicles actually gets into more accidents and collisions. Ironically, because most of those driving a small vehicle are confident think that it would be much easier to maneuver such a car (and therefore avoid accidents), they are not as careful as they would when driving a hummer. So the higher the risk, the more premiums you will be charged.

Another factor would be the popularity of your vehicle among car thieves. The safety rating of your vehicle. Laws of Physics dictates that smaller framed cars absorb the brunt of the force in a collision with larger vehicles or large objects, increasing the risk of death or injuries to passengers and total vehicular loss. I highly suggest that you inquire about (or insist on) multiple vehicle discounts on your auto insurance policy to help offset the added cost of the secondary vehicle.

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Reader’s Question:

Can I get auto insurance even if I only have a restricted driving permission here in Hawaii?

Gus A.

Ewa, HI

It is possible for you to get auto insurance coverage even with a restricted license or driving permit but it would still depend on how lenient the auto insurance provider’s policy is regarding this matter. Normally, an auto insurance company would be very reluctant to do this until you get your license back.

The first thing you would want to do is to either talk to an experienced auto insurance agent that can help you find a provider who would be willing to offer you coverage, or if that is not an option, you can use this web page, also known as an auto insurance portal, to get rate quotes from many carriers so that you can compare rates and premiums to get the most affordable deal.

One you are granted coverage, here are some additional information and tips to help you get your driving record back on track.

1. Take defensive driving classes which will help you become more skilled in keeping yourself (and your passengers safe) while driving. Talk to your provider first and ask for a list of accredited driving schools there in Hawaii so that you are sure to get the discounts.

2. Consider increasing your deductibles, this will lower your premiums. Also consider driving a less expensive vehicle since it would cost less to insure.

3. Follow the rules. You don’t want anymore violations (even minor ones) at this stage. Further violations would not only prolong you from getting lower rates in the future, it may actually cause your insurance rates to go further up.

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