How to Save Money on Car Insurance?

Here are some ways that will help you keep your car insurance premiums low:

1.      Choose Your Car Wisely
Vehicle damage is the biggest cost component for auto insurers. So your premiums will vary by auto model. When comparing models, ask your car dealer to show you the “Relative Collision Insurance Cost Information Booklet,” produced annually by the National Highway Traffic Safety Administration

2.      Compare Policies

Auto policies can vary a lot. Discuss your insurance needs openly with your agent, broker, or insurance company. They can help you, but it is your responsibility to choose the insurance that is best for you.

You should always get several quotes. A quote is an estimate of your premium cost. Compare quotes before you buy a policy.

3 Know Your Policy

It is important to be familiar with your auto policy before you need it. Read it carefully. The Declarations page is a useful summary of your policy.

·         Call your agent, broker, or insurance company if you do not understand something in your policy Tell your agent, broker, or insurance company if you sell or buy a car or have new drivers in your household. 

·         Read your policy before you allow others to drive your car. Some drivers might be excluded from your policy. This means that the policy will not cover accidents when they are driving.

·         . If you don’t have an agent, feel free to reach out to Jurga at http://www.jurgainsurance.com/ She is an Independent Insurance Agent, works with multiple carriers and can compare your options and answer your questions.

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4. Improve Your Credit Score
You may not realize it, but your credit-based insurance score could be causing you to pay more for your insurance than necessary, thanks to most carriers’ use of credit scores in setting premiums. Even with a clean driving record, car owners can pay hundreds of dollars a year more for insurance if they have anything less than the best credit score.

5. Manage Teenage-Driver Risk 
Adding a teenager to your policy can hike your costs by 90 percent, on average nationally. Talk to your agent about options. In some cases if your teenager or college student has good grades and a high GPA, they might pay less for car insurance. So, it makes sense to have good grades, isn’t it! J

6. Choose the Right Deductible
A higher deductible reduces your premium because you pay more out of pocket if you have a claim.

Talk to your agent about Discounts

Save money on your policy:

·         Ask about multi-car discounts, for insuring several cars.

·         mature driver and good driver discounts.

·         discounts for airbags, anti-theft devices, or other features.

·         payment installment plans and if there are service fees.

·         higher deductibles for comprehensive and collision coverage. This will lower your premium.

·         Think about dropping comprehensive and/or collision coverage on an older car.

·         If you do not have collision coverage, ask about uninsured motorist property damage coverage.

Also,

• New business and customer loyalty: Many insurance agencies show appreciation for your business when you start a new policy, and will also reward your customer loyalty when you renew.
• Low mileage: If you rarely use your vehicle, such as 5,000 miles per year or less, you may receive a special low mileage discount.
• Multi-line discount: If you have multiple policies with the same insurer, such as your car, home and RV, you can typically qualify for a discount on the package.
• Multi-vehicle discount: If you and your spouse each have a vehicle, or you have two cars, you can enjoy a multi-car discount.
• Payment in full: Paying your entire premium annually saves on service charges and those savings are passed on to you.

Make sure you ask your agent for all available discounts. This is especially important because your agent may not be aware of a change in your status, such as retirement. Working with a local agent who takes the time to listen to your needs and provide personal assistance can make a difference, not only in your costs but also in the quality of your customer experience.

 Here are some insurance terms for clarification:

Actual Cash Value (ACV)-Unless otherwise defined in the policy, actual cash value in California means fair market value. The fair market value of an item is the dollar amount that a knowledgeable buyer (under no unusual pressure) is willing to pay, and a knowledgeable seller (under no pressure) is willing to accept.

Adjuster-The person from your insurance company who investigates and evaluates your damage and losses.

Agent-An individual or organization licensed to sell and service insurance policies for an insurance company.

Binder-A short-term agreement that provides temporary auto coverage until your auto insurance policy starts.Broker-An individual or organization that is licensed to sell and service insurance policies for you.

Broker Fee Agreement-The contract between you and your broker. It lists the fees for your broker's services.

Cancellation-When you or your insurance company ends your policy early. They might do this because you did not pay your premium. You might cancel your policy because you no longer own or drive a car.

Claim-Your request to an insurance company to cover an accident or other loss.

Collision coverage-Pays for damage to your car caused by physical contact with another vehicle or an object, such as a tree, rock, guardrail, building, or person.

Commission-The fee that an insurance company pays an agent or broker when they sell a policy.

Comparative negligence-The percent of responsibility that each driver shares in an accident when both drivers are at fault.

Comprehensive coverage-Pays for damage to your car caused by something other than a collision, such as fire, theft, vandalism, windstorm, flood, falling objects, etc.

Declarations page-Usually the first page of an insurance policy. It lists the full legal name of your insurance company, the amount and types of coverage, the deductibles, and the vehicle(s) insured.

Deductible-The amount of the loss that you must pay before your insurance company pays anything. Only comprehensive and collision coverage have deductibles.

Endorsement/rider-A written statement that changes the coverage or details of an insurance policy.

Exclusion-These are the specific things that your insurance policy does not cover or limits coverage for. For example, your policy may not cover certain kinds of dangers, people, property, or locations.

Gap coverage-This pays the difference between the fair market value of your new car and the balance you owe on your loan or lease.

Insured-The person who can receive covered benefits in case of an accident or loss. Also called the policyholder.

Insurer-The company that issues your insurance.

Liability coverage-Insurance that helps pay for the injuries and damage to others from accidents that are your fault.

Limit-The most money that your insurance company will pay for your loss.

Medical payments coverage-Covers limited medical costs for you or others in your car, when you are in an accident.

Non-renewal-This is when you or your insurance company does not renew your policy at the end of its term.

Policy-This is your contract with the insurance company. It explains your coverage. It also states the rights and duties of both you and the insurance company.

Premium-The amount you pay to buy an insurance policy.

Private passenger automobile-Four-wheeled motor vehicles for use on public highways, like cars, station wagons, SUVs, and vans. They must be registered with the state.

Quotation (quote)-An estimate of your insurance premiums based on the information you give to the agent, broker, or insurance company.

Recision-The cancellation of a policy back to its start date. If this happens, the insurance company does not pay for any of your losses, and your premiums are refunded. This can happen if you knowingly gave false information when you applied for the policy.

Subrogation-When one insurance company pays money on a claim, and then tries to get paid back or reimbursed by another insurance company. 

Surcharge-An extra charge that is added to the premium by an insurance company. This usually happens because a covered driver has had an accident or moving violation that is their fault.

Uninsured/Underinsured Motorist Coverage (UMC)-Provides coverage for a policyholder involved in a collision with a driver who does not have liability insurance or whose liability limits are too low to pay for all the damage.