Reader’s Question:

As auto insurance rates increases a lot, is there still a chance to get discount auto insurance in Kentucky?

Ivory

Frankfort KY

As global economy goes into recession, auto insurance policies grow more expensive. This caused many people to look for ways to prevent their finances from being exhausted just because they have to maintain their car insurance policies. With a little shopping around the market, making phone calls to insurance companies, talking to insurance agents and looking for information in the Internet, you will be able to find an discount auto insurance that you never thought existed. Aside from doing your homework and gathering as many insurance quotes as you can to asses and ultimately find the best car insurance available at lowest possible price, there are also lots of ways to decrease your cost and get a discount auto insurance.

It is a wise idea to increase your deductible if you have the financial capability to do it. Most often, your annual premium will be reduced by approximately 15% if you do this.

Some people want to pay their car insurance policy in a monthly basis. In reality, the sum of all payments you made monthly will be higher when you paid for the same insurance policy in a lump sum payment. This is because when you pay one time, you get discount auto insurance at cheaper price.

It is very surprising that maintaining a good credit history can qualify you for discounted auto insurance. Those with bad credit record history are classified as drivers with high risk of insuring because they can be less stable and conscientious.

Those who are not frequent drivers tend to be less prone to accidents. Thus, they have lower risk for companies to provide insurance coverage. If you happen to be one of these infrequent drivers, ask your insurance provider of a possibility of a discount. Usually, your mileage will be measured using an odometer to check whether you are really driving below a certain amount of miles.

Last but definitely not the least, you can get discounts on your car insurance policy if you get it from the same insurance provider for your homeowners insurance and other insurance needs. Most often, multi-insurance providers will offer packaged deals at discounted prices.

Reader’s Question:

What’s the best way to find cheapest car insurance?

Phil

Boston, MA

Every driver is on a mission to find cheapest car insurance but what the cheapest can be is different for each one of us as we live in various circumstances. Remember that car insurance companies use some information from our personal background to set our rates. So the cheapest car insurance for a woman driver for example can be much lower than that of a male driver since statistically speaking women tend to be safer drivers.

Some of us fail in the mission and do not find cheapest car insurance. And some of those that do so are usually the ones that made the mistake of taking the first quote they were offered with. It’s a basic rule in car insurance never to take the first quote you get. There’s actually a huge variation in car insurance rates because companies don’t compute them the same way. You can easily see this by getting as many quotes as you can from various providers. Doing so will certainly bring you closer to find cheapest car insurance. To be certain that your comparison is accurate, be consistent with the information you provide each company. You should also be consistent with the kind of coverage you’re finding quotes for.

Reader’s Question:

What coverages can be included in a cheap insurance policies for my college children’s cars?

Beverly

Austin TX

Each state has set its minimum requirements for vehicle insurance. In the state of Texas, you must have a minimum liability protection of $50,000 for bodily injuries while $25,000 for property damages. In order to get cheap insurance policies for your children’s cars, you can stick to a liability protection since that’s the minimum the law will allow. As you probably know, liability insurance can only protect you up to a limited degree. That is, it only covers damages to third party liabilities and nothing for the vehicles of your children.

Cheap insurance policies for vehicles can still contain other forms of coverages like collision/comprehensive and uninsured/underinsured motorists if your children can meet some conditions. They can get cheap insurance policies for vehicles if they get at least a B average on their report cards. Tell them to give their studies a lot of attention to at least lower their insurance rates. It will also help lower insurance rates if the car they are driving have safety features like having an air bag or a side bag. The cars should also be of the type that do not boast of speed. Fast cars are expensive to buy and expensive to insure.

Reader’s Question:

Getting the cheapest auto insurance policy with sufficient coverage is the hardest thing to do! And right now, with the current economic situation of the country? My only hope are discounts. Which discounts can I get?

Jersey

Anchorage, AK

You know, I agree with you. The cheapest auto insurance policy may not really mean that you would be saving money. If it does not have sufficient coverage, you would just be wasting money as time passes by. A cheap but insufficient auto insurance policy is just the same as a weak umbrella. It gets torn apart real easily, and when it does, be ready to get wet.

So, the idea is to get an auto insurance policy for a relatively reasonable price, and then try to lower the cost by availing of every discount available. But what are these discounts?

There are three types of discounts that auto insurance companies offer: those that are related to the policy, those that are related to the vehicle and those that are related to the driver.

Policy-related discounts include bundling, early shopping or renewal discounts, payment discounts and deductibles. Bundling consists of you applying for inclusion of multiple drivers, multiple vehicles and multiple policies. Early shopping or renewal discounts are given when you shop way before your renewal date, but just be careful because you might find a lower price in another company. Payment discounts may be given when you do your payment via electronic funds transfer. Lastly, deductibles is not really a discount but is the amount that you are willing to pay yourself in the event of an accident, so of course, the higher the deductibles, the lower the premium.

Next, vehicle-related discounts have something to do with your car type and its safety and security. Older cars are less expensive to insure than newer cars, and safety feature translate to fewer medical bills in the event of an accident.

Last are the driver discounts. Discounts are given to good students, senior citizens, members of the military, female drivers, people who do not use their cars frequently, people who are affiliated to some specific affiliations, those that have finished driving courses and those with clean driving record and credit history.

So, having said all of that, I hope you find the cheapest auto insurance through the use of discounts that would best fit you.

Reader’s Question:

I am wondering, is it safe to get the cheapest auto insurance available in town?
I mean, if it’s too good to be true, there has to be some catch, right?

Jim

Pittsburgh, PA

In the old days, you should think not twice but ten or maybe a 100 times if you encounter a very cheap quote with a promise of really good car insurance. Chances are by the time you make a car insurance claim, you will be surprised to find out that there is no such auto insurance broker registered.

But now, Jim, I really can’t say outright that if somebody offers you what you think is the cheapest car insurance quote, you’re getting a rotten deal because there are many car insurance companies now offering really cheap auto insurance. Especially those online guys, they really give it to you cheap and fast and really deliver good and reliable service when you need them. Well, at least, most of them do. It’s just the way competition works-consumers win.

So, what you do if you happen to come across an unbelievably cheap auto insurance quote is you make a call to the Pennsylvania Department of Insurance and verify if indeed that that auto insurance has a permit to operate a business in your state. Then you’ll be sure that the company giving you the cheapest car insurance quotes is really legit.

Reader’s Question:

Where can I find the cheapest auto insurance in Michigan?

Reese

Detroit, MI

It has been reported in year 2006 that Michigan residents spent an average of $925 on auto insurance. This state ranks number 13 in the list where the one with the highest average auto insurance cost is in the top spot. So, it can be said that Michigan auto insurance is not that expensive, but it is not that cheap, either.

There are about eighty-eight state insurance companies currently operating in Michigan. Each of them can possibly offer low rate packages for those who wish to cut down on auto insurance costs. To look for the cheapest auto insurance, it would be a good idea to utilize the Internet. You can easily get quotes from these auto insurance companies and just as easily make comparisons to figure out which is the cheapest.

One way to ensure that you can get one of the cheapest auto insurance is to stick to the minimum requirements of the state. Adding supplemental coverage such as collision and comprehensive or uninsured driver insurance can really raise your premiums. They are highly recommended, but it is really up to you to decide if you are going to need them.

Michigan has the no-fault policy in place. This means that in the event of an accident, the drivers involved need only rely on their own auto insurance policies for compensation. Thus, drivers in this state are required to have Personal Injury Protection. Since there are exceptions to the no-fault rule, Michigan also requires its resident drivers to have liability coverage. This is in case the damages incurred are severe enough that the victim opts to pursue the guilty party for payment.