Posts Tagged ‘Auto Insurance Rates’

Perks of Marriage: Cheap Auto Insurance

Friday, May 11th, 2012

There are many financial perks of marriage — lower taxes, access to employer benefits, better health insurance rates, and lower auto insurance premiums too. Most companies offer some type of discount for married drivers, although some companies may also offer cheap insurance for people who live together. States like California, Washington, Oregon and Illinois recognize “domestic partnerships” with discounts of up to 15 percent for drivers, according to Fox News.

How Do Married Couples Save On Insurance?

  • Multi-Car Discount – Typically, you’ll save significant money by switching to the same policy and signing up multiple cars with a carrier.
  • Multi-Line Discount – You can also save by getting homeowner’s insurance through your car insurance provider.
  • Driving Record – If your spouse has a better driving record than you, this can work in your favor.
  • Statistics – Statistically speaking, married couples are less depressed and less reckless. They tend to get into fewer accidents and take advice from a spouse on safe driving habits.

 How Much Can You Save By Getting Married?

Forum commenters claim to have saved as low as $61 per billing cycle or as much as $350 every six months. According to research conducted by Coverhound, a sample couple would have paid $309.01 per month for their separate policies, but they would pay $218.89 a month if they were married — which is a 29 percent savings. If your spouse has a particularly terrible driving record, you may not benefit much, but it’s worth looking up free auto insurance quotes.

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Posted in Auto Insurance Rates, Cheap Auto Insurance, Free Auto Insurance Quote, General Auto Insurance, Online Auto Insurance Quote |

News: Auto Insurance Companies Raise Rates In Illinois

Wednesday, May 9th, 2012

Allstate Corp. plans to raise car insurance rates for Illinois drivers by 3 to 5 percent, according to company filings with the Illinois Department of Insurance. New rates will go into effect May 17th. According to the company, this decision reverses the “hometown discount” advertised since 2009. They added that the size of the increase will depend upon how long a customer has been with the insurance company. This decision comes after Allstate posted its largest profit gain since 2007.

Why Raise Rates?

Allstate has been struggling to keep pace with the lower-priced competition lately. This last price hike is their attempt to gain more ground. Company spokespeople say they’ve set aside more than enough money for accident claims, which has led to bigger profits than previous years. Similarly, Geico is raising rates 2.5 percent, which will go into effect May 10th for new customers and June 25th for most drivers. So Allstate didn’t really have to think twice about raising rates if everyone else is doing it too.

Is Everyone Raising Illinois Auto Insurance Rates?

Not everyone is jacking up prices, however. The largest auto insurance provider in Illinois — State Farm — just slashed rates 2 percent this past December after three years of annual increases.

How To Get Lower Auto Insurance Rates

Since prices are always fluctuating, the best thing a consumer can do is to shop around for competitive quotes. Each company has a different method of determining how much to charge a customer, so the numbers can really vary widely. Just a few minutes entering information online can save customers thousands of dollars per year in some cases.

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Posted in Auto Insurance News, Illinois, USA |

Auto Insurance Savings Tips

Friday, May 4th, 2012

Auto insurance can be ridiculously expensive if we let it! As we discussed yesterday, one person might be paying $585 a year, while another pays over $2,000! So what is a driver to do if he or she wants to chip away at these exorbitant prices?

Strategies For Reducing Auto Insurance Premiums

  • You could shop around. Now is as good a time as any to take a look at what another auto insurance provider might offer you. Every company looks at different factors to come up with your total premium. (For your convenience, you can search free quotes right from our site!)
  • You could reduce your coverage.  This could be dangerous, especially if you are reducing liability coverage, but you may be buying more coverage than you really need. For instance, there is no need to have high collision coverage for an old vehicle that is already paid off and isn’t worth repairing if it gets into an accident.
  • You could raise your deductible. This is a good option if you have $1,000 or $2,000 in the bank. Raising the amount you’ll pay in the event of an accident will lower your premium, guaranteed.
  • You could bundle your insurance needs. Most insurance providers will offer you a handsome discount if you get your homeowner’s insurance, life insurance, and car insurance all from the same place.
  • Drive safely! Avoiding accidents and tickets is the best way to keep your rates as low as possible.

Choose Your Car Wisely

The type of car you’re insuring very much factors into your rate as well. When buying a car, consider these factors:

  • Insurance loss records: Insurers want to know how much money they’ll lose if your car is totaled in an accident. Check The Highway Data Loss Institute to see how your car stacks up!
  • Price: More expensive cars with more expensive parts will cost more to insure.
  • Performance: Choose a vehicle with less horsepower and a smaller engine if you want to pay less.
  • Safety Features: You pay less on a vehicle with more safety features installed and a better overall safety rating.

There are other ways to save as well.

Hybrids can save you money in some cases. New cars cost less to insure if they are endowed with better safety features than your old clunker. However, you may also save by insuring a used car because the gap insurance will be less, since you are not experiencing the same rate of depreciation as a new car. Don’t forget to shop around for the best auto insurance rates!

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Illustration by Adam McCauley

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Posted in Auto Insurance Rates, Cheap Auto Insurance, General Auto Insurance |

Do I Need to Pay for My Auto Insurance Coverage in Advance

Saturday, February 18th, 2012

Auto insurance buyers who are looking for the best way to budget for their payments may be wondering if they need to pay for auto insurance coverage in advance. While a policyholder can pay for coverage for the entire term in advance, insurance companies do offer other payment options to their customers.

Consumers need to be aware that paying for auto insurance in installments may mean paying extra administrative or other fees to cover the higher cost of processing multiple payments. Each person buying the policy will need to consider whether the convenience of paying for coverage over time is worth the added expense which may come with this choice.

Auto Insurance Payment Options

Each auto insurance company decides on its payment policies independently. All of them allow a policyholder to pay for the full amount of his or her premium when the policy is issued. Since not all consumers can afford to pay for six or 12 months’ worth of coverage at once, companies offer other options to their customers.

An auto insurance buyer who chooses to pay for his or her coverage in full may be given a discount, depending on the insurance company involved. New customers would need to make this payment by the policy effective date. If the policy is up for renewal, the payment must be made at least one business day before the renewal date.

Another option available to auto insurance buyers is a budget payment plan. With this method, a driver can pay for his or her auto insurance coverage in two or more installments. One example of the way that this payment method can be set up is that the policyholder pays 50 percent of the premium by the policy effective date. The second installment for the remaining 50 percent of the premium is due 30 days after the policy effective date. The policyholder may be charged an administration fee on top of the face value of the premium to reflect the cost of processing multiple payments.

Some drivers prefer to pay their auto insurance on a monthly basis. This choice can help with cash flow because the total amount payable for coverage is spread out over six or 12 months. The insurance company will take the amount of the premium for the term requested, add an administrative fee, and then divide this amount by the number of months in the term to determine what the monthly payments would be. A policyholder may need to make a down payment to the insurance company if he or she wishes to use this payment option.

Auto Insurance Payment Methods

Customers can choose to have their premium amount automatically withdrawn from their bank account on an agreed-upon day each month. Insurers also offer the option of paying the premium by telephone for online banking. Paying by mail or going to a customer service center to make a payment in person is another option available to auto insurance buyers.

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Posted in General Auto Insurance |

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