Paying your premium annually will get you lower rates than choosing monthly payments. The ads may show that monthly paymenst are less stressful but what you're not told is how much extra you pay for this..
If you do transactions with banks you'll agree with me that each check you process is regarded as deal which attracts a certain charge. Over the course of a year, your monthly checks would be processed differently because they are all different transactions. you will then have to pay the total of 12 transaction fees..
Besides there are also administrative costs that are incurred due to the monthly payment option. For example, it costs insurers millions of dollars every year to send out payment notices..
These and more are then included in your premium thereby making it more than if you paid every year.
You'll save by being loyal to an insurer due to the long term discount and accident forgiveness which they give to long-standing policy holders. Depending on the insurer, you'll be eligible for a discount of 5% once you've stayed with them for between three and five years.
Most insurers will also not raise the rates of a long standing policy holder if they make only just one claim. It makes sense for the insurer as it is cheaper to give discounts to existing policy holders than to acquire new ones. The longer you stay, the more you'll save.
But it will only be right for me to also point out that in spite of these incentives, you might actually gain more if you switch to another insurer.
Your rates will jump through the roof if you modify your car. Things like changing your tires to bigger ones than specified by the manufacturer, adding equipment that will increase your car's horse-power will cost you a lot more. So if you're really serious about keeping your rate down, leave your car the way it was manufactured.
It's a known fact that young drivers attract high rates. Worse still, if they are teenagers their auto insurance rates could be really high.
So you'll do well to NOT place your teenage driver on your policy. You'll be made to pay very high rates if you do otherwise. You can discuss with your agent about signing an exclusion form so that your teen driver can have his/her own auto policy.
It's a fair price for them to pay to enjoy the adult privilege of driving. An addition argument in favor of this is that your teen will be more willing to take measures to reduce what he or she pays. This by extension means that such a teen driver will be more responsible behind wheels since they bear the full cost of their actions.
Add-ons like towing raise your premium without giving you as much value as using a towing service. By the way, your credit card might already offer this as a benefit so check.
Overall, you're better off using a third pary towing service than placing it on your auto insurance policy.
And...
You will save a lot if you really have between 25-30 minutes. Visit, receive and compare auto insurance quotes from several quotes sites. The cheapest quote should be your choice easily.
Nevertheless, you have to go beyond simply the lowest quote to the best price/value. The cheapest may not be the best price/value for you as a person.
If you do transactions with banks you'll agree with me that each check you process is regarded as deal which attracts a certain charge. Over the course of a year, your monthly checks would be processed differently because they are all different transactions. you will then have to pay the total of 12 transaction fees..
Besides there are also administrative costs that are incurred due to the monthly payment option. For example, it costs insurers millions of dollars every year to send out payment notices..
These and more are then included in your premium thereby making it more than if you paid every year.
You'll save by being loyal to an insurer due to the long term discount and accident forgiveness which they give to long-standing policy holders. Depending on the insurer, you'll be eligible for a discount of 5% once you've stayed with them for between three and five years.
Most insurers will also not raise the rates of a long standing policy holder if they make only just one claim. It makes sense for the insurer as it is cheaper to give discounts to existing policy holders than to acquire new ones. The longer you stay, the more you'll save.
But it will only be right for me to also point out that in spite of these incentives, you might actually gain more if you switch to another insurer.
Your rates will jump through the roof if you modify your car. Things like changing your tires to bigger ones than specified by the manufacturer, adding equipment that will increase your car's horse-power will cost you a lot more. So if you're really serious about keeping your rate down, leave your car the way it was manufactured.
It's a known fact that young drivers attract high rates. Worse still, if they are teenagers their auto insurance rates could be really high.
So you'll do well to NOT place your teenage driver on your policy. You'll be made to pay very high rates if you do otherwise. You can discuss with your agent about signing an exclusion form so that your teen driver can have his/her own auto policy.
It's a fair price for them to pay to enjoy the adult privilege of driving. An addition argument in favor of this is that your teen will be more willing to take measures to reduce what he or she pays. This by extension means that such a teen driver will be more responsible behind wheels since they bear the full cost of their actions.
Add-ons like towing raise your premium without giving you as much value as using a towing service. By the way, your credit card might already offer this as a benefit so check.
Overall, you're better off using a third pary towing service than placing it on your auto insurance policy.
And...
You will save a lot if you really have between 25-30 minutes. Visit, receive and compare auto insurance quotes from several quotes sites. The cheapest quote should be your choice easily.
Nevertheless, you have to go beyond simply the lowest quote to the best price/value. The cheapest may not be the best price/value for you as a person.
About the Author:
Start saving a lot at Safe Auto Insurance and Cheap California Auto Insurance. Chimezirim Odimba writes on insurance.
No comments:
Post a Comment