Getting the Best Car Insurance Deals

When looking for the best car insurance deals, you should start with a review of your current policy. The best deal may be the policy you already have, with a few modifications. There is a lot of fat in a typical car insurance policy that can be eliminated with a little knowledge.

The first thing to do is to eliminate any extras on your policy. For example, get rid of the towing and rental car coverage. Many people have an alternate form of transportation available to them like a spouse, neighbor or co-worker thus eliminating the need for rental car coverage. The likelihood of being stranded by most modern cars is low, so towing is generally not a big concern these days either.

Next, consider raising the deductible on your collision and comprehensive coverage. Raising the deductible to $1,000 or more could cut the cost of your car insurance by up to 40%. Of course this comes with a downside that should you be involved in an accident, you will have to pay a larger amount out of pocket.

If your car is older and not financed, you might consider dropping collision and comprehensive coverage altogether. This could save you big money each month, but again it comes with the risk of having to pay for all the repairs to your car should you need to make a claim.

If you have medical coverage on your policy and you are already covered through a health plan at work or through your spouse, you can drop the medical coverage your car insurance policy provides. This is a simple way to save some money on your policy.

What if you have cut all these costs and you feel your insurance premium is still too high? Spend some time online at some of the insurance comparison. There you can put in all of your personal information and driving history and get a comparison between the policy you have now and what other policies are available to you. You might just find that the policy you have now is way overpriced compared to what is available to you from another insurer.

The Best Cars Are the Ones That Save You Money

There are 3 main cost factors to consider when choosing any car. They are initial purchase cost, running cost, and eventual sale price. The aim is to “buy for less, run for less and sell for more.” The best car is the one that suits your needs and saves you the most money. Agreed?

Factor #1. Fitness for Purpose

The first issue to be addressed is finding the right type of car, whether it’s an SUV, station wagon, utility, 4 Wheel Drive (4WD), car or people mover, depending on your circumstances. Within these choices is it to be a small – medium or large version?

Tips – the best type of vehicle for you can be determined by answering some easy questions:

How many seats do you need?

Are your safety needs addressed?

How many kilometers (miles) do you travel each year?

Do you need to tow a caravan?

How many years do you intend to keep this car?

Do you need the extra traction a 4WD can offer?

Is it to be work / family / school or shopping transport?

Factor #2. Price

The next consideration is how much you can afford to spend on the vehicle based on your decision in #1.

Tip – It would not be wise to buy a car that suits your needs if it is so highly priced that it ruins any chance of you saving money for your future. You lock yourself into payments and service costs so high that it leaves broke (relying on your credit card) at the end of each month.

Used car prices, of course, are lower than new prices, but there are other benefits. The initial 1st year major value drop has already taken place and you may be able to do some maintenance tasks yourself without voiding the warranty – saving you more money. Also collision insurance and taxes are also generally lower.

Tip – set a budget based on your ability to pay (while still saving money each payday) and stick to it.

Factor #3. Value Slide During Its Useful Life

Now that you have decided on the best type of vehicle and the best price, lets now look at the depreciation, or loss of value, over the time you will keep it.

It is well known throughout the vehicle industry that once you buy a new car the value drops about 45% (on average) in the first 3 years of ownership. Then about 25% drop (on average) over the next 3 years after that. (source:

However, there are types and makes of vehicles that do better and worse than the average.

Tips – to reduce the chances of larger than average value slide during your ownership you may wish to take into account these principles:

#1. Choose a make / model that is reasonably common on the roads. Why? It is common because a lot of folks, like you, have found it to be reliable and good value for money.

#2 Stay away from “one model orphans”. These are vehicles that are only made for 1 model (usually due to poor customer demand) and are replaced by something better soon after. They are more costly to service and parts are dearer. Usually insurance is also dearer. Then,

#3. Choose a make / model that is not too complex mechanically. Why? More complexity means higher serving and parts costs and often lower resale value. Then,

#4. Choose the most fuel efficient in its class – provided the tips immediately above are addressed first.

#5. If possible, choose a color that is easy to maintain in showroom condition. Usually this color is White. White shows less dust and grime and stays looking good for longer than darker hues. It is also easier to match if paint is damaged in an accident or if rust repairs are needed.

I trust that these tips will make your next vehicle purchase less of a headache. Happy hunting…

How to Find the Best Car Insurance Companies and the Best Rates

Average car insurance rates in the United States have declined in the last few years, but most of us are still paying $1400 to $3700 a year to insure our vehicles. With prices this high, we want to find the best car insurance companies with the best rates. Here’s how to do it quickly and easily.

Find the Best Car Insurance Rates

Insurance rates can vary by hundreds of dollars from one company to another, even for the same coverage. This is why it’s so important to shop around for the best auto insurance rate.

The Internet can help you quickly get rate quotes from numerous companies. Using an insurance comparison website, you can enter all your vehicle and driving information on one form and receive quotes from a number of insurance companies (see link below).

Find the Best Car Insurance Companies

Once you have quotes from several companies, how do you choose the best car insurance company? Your instinct might be to just grab the company with the cheapest rate. And while this might, in the end, be your choice, you need to also make sure the company is going to provide you with good service.

To evaluate insurance companies, follow these tips:

* Check your state’s Department of Insurance website. Every state has a website maintained by the Insurance Commissioner that lists licensed agents and companies and each company’s complaint ratio. You can select your state from the National Association of Insurance Commissioners (NAIC) website.

* Check ratings from companies such as J.D. Power and Associates, A.M. Best, and Standard & Poor.

* Evaluate each company’s communication efforts. Is there a local agent you can call with questions? Is there an 800 number you can call? Is the website informative?

* Evaluate each company’s payment policies. Do they offer payment plans and online payment options? What are the penalties for late payments?

By taking these steps, you’ll be able to find the best rates with the best car insurance companies.

Where Do You Find the Best Car Insurance Quotes?

The prices on everything increase but it doesn’t mean that you have to sit idly by and simply write your check when it comes to auto insurance. You have options to reduce your costs. Reducing costs doesn’t always mean you have to tighten your belt and accept inadequate or inferior coverage. It simply means you have to become a smarter shopper.

The best car insurance quotes often come from online sites. The biggest reason for this is that these sites are able to pull the information from many different companies at one time. While each company may be equally fiscally sound, reputable and service oriented, they all have different expense experience and income. These two factors decide that amount of money that they have to charge for premiums. If they’ve experienced higher losses, in order to remain fiscally sound, they must increase their premiums or their income to offset this.

You can find great insurance quotes if you contact company representatives in your area, but in order to gather as much data, you’d spend hours of time talking to each company on the phone or driving there in person. If you’ve ever asked for a quote on the phone, you know that the receptionist often makes you wait until an insurance representative is available. What you need to ask yourself is, “How much elevator music can I endure while on hold, just to save money?” Getting the same number of quotes from one online source takes only a minute or two of your time.