Fortunately, there are various methods that could effectively counter these inflation busting increases on your car insurance.

Tip No. 1

In spite of what all insurance advertisements tell you, do not believe the hype. While comparing quotes is a great way to determine which insurance providers offer the best deal, there’s more it than that. An insurance policy is a complex, multi-faceted product which is why it deserves your undivided attention. Put into consideration how and when you use your car, what type of coverage and options are available for you and weed out what you need and what you don’t need. Many people are continuously renewing their policies with options they do not need and are not likely to use. Hence, they waste a significant amount of money on coverage that they will never get to take advantage of.

Tip No.2

Search the internet for the right cover at the lowest price. The main advantage of searching online for insurance quotes is that you can compare coverage and premiums from several dozens of insurance providers using the same information. Comparing prices side-by-side will give you a baseline to work from. However, not all insurance quote websites are created equal. Be aware that there are some sites which make assumptions about your needs and provide quotes that may be much higher or much lower than you will be offered. It’s best to seek out reputable insurance quote website that could give you accurate information of the premiums quoted.

Tip No. 3

Give unconventional and newer insurance providers a chance, they may provide you with the best deals. A remarkable study managed by a consumer advocacy group ran profile through 33 insurance providers through multiple price comparison website and checking a number of risk profiles. The result was that newer insurance providers and insurers not known for doing auto coverage came out with the lowest-priced rates, consistently! The moral of the story? Don’t disregard a great insurance plan just because the insurance company is not known for selling car insurance.

Tip No. 4

Always purchase coverage that matches your driving needs and habits. While this is an obvious step when buying an insurance policy, many people are settling on standard insurance policy with cover options that are unlikely to be used or needed by policy holders. That’s just money down the drain. If you are a low mileage driver with a standard policy, you could’ve saved a lot of money annually. There are now ways to save money while still get ample coverage such as a “pay as you drive” policy in which GPS device will be installed in your vehicle. The premiums on your policy will be linked to your personal habits and this includes mileage, the roads you use often and the approximate time and day you use them.

Tip No. 5

Lower your risk and take advantage of discounts and promos as much as you can. Premiums for any insurance are essentially based upon risk. So in order to lower your premium, do what you can yo reduce the risk of needing to claim on your insurance policy. Bear in mind that little details such as where you usually park your car, how you use and what security methods you use for your vehicle are all factored into premiums. One little known trick that may work on some insurers is to add a low-risk named driver to your policy. A 30 year old female with a clean driving record can cut your premium cost by up to 5-10%. However, as previously stated, every insurance providers have different sets of guidelines which is why you need to check with your insurance provider first.

Most stolen Car in the U.S.

All car owners need auto insurance because it is mandatory. However many insurance policies are very complex and with so many wrong information all around, it is much more difficult to distinguish facts from fiction. Confusion may eventually lead to expensive mistakes. This is the reason why CarInsurance180 helps shoppers who need auto insurance make informed decision. From rates for car insurance to premium, read some of the most common car insurance myths, debunked:

Myth Number 1: The most expensive cars to insure are red cars.

Debunked: This is a myth that has been around for a long time. Fortunately, this is exactly what it is, just a myth. Colour never played a part in determining the rates for car insurance. However, recent studies show that roughly around 25% of drivers believe that the colour of their car is a factor in determining their car insurance rates. It is widely believed that red cars mean higher insurance rates. The reality is, all insurance companies will not even ask about the colour of the vehicle you want insured when calculating quotes. They are likely to ask the car model, the body type, engine size and the age of your car.

Myth Number 2: New cars are likely to be stolen

Debunked: The truth is, it is the other way around. According to the National Insurance Crime Bureau, the top ten most stolen vehicles of 2008 were:

1. Honda Civic (1995)
2. Honda Accord (1991)
3. Toyota Camry (1989)
4. Ford F-150 (1997)
5. Chevrolet C/K 1500 (1994)
6. Acura Integra (1994)
7. Dodge Ram Pickup (2004)
8. Nissan Sentra (1994)
9. Toyota Pickup (1988)
10. Toyota Corolla (2007)

The reason why most car thieves prefer older vehicles are that they are easier to steal compared to newer cars. Additionally, since most car owners are keeping their cars longer because of the unstable economy, the market for used car became popular. Most of the time, when older car models are stolen; they will not make it back on the streets in one piece.

Myth Number 3: Bare bones car insurance can provide coverage for stolen, vandalized or cars damaged by hail or fire.

Debunked: The minimum requirements for auto insurance in most states only require car owners to buy liability coverage. This means that you are only covered for the damages you inflict to other people. Unless you have comprehensive coverage, you are not fully protected from other occurrences.

Myth Number 4: Car insurance companies will pay off the policyholder’s loan or lease once a car is totaled.

Insurance company coverage: cash value, not the car loan

Debunked: Most car insurance companies do not promise to pay off its customers’ loans once the insured car is totalled. They will, however, pay for the actual cash value of the car except for the deductibles. Any amount outstanding on the loan or car lease is the sole responsibility of the policyholder, not the insurance company. On the other hand, if you purchased gap coverage, you may be able to save yourself some grief. Gap coverage provides coverage to a policyholder once the insured car is wrecked before the loan is paid off when the accident occurred or before the term of the lease expires.

Myth Number 5: Sports car drivers get more violations; therefore, they pay higher premiums.

Debunked: This is not necessarily true. In fact, survey shows that in 2009, people who drove Hummers H2/H3 have five times the number of violations than the average car owners. On the other hand, the most “well-behaved” vehicles are people who drove Jaguars XJ. While insurance providers do not base their rates on this study, the type of car you own and your driving history are important factors that they will consider.

Car Rental Insurance: Is it necessary?

We all experienced how car insurance agents would persistently persuade people to purchase car rental insurance. Car rental insurance is commonly known as collision damage waiver (CDW). This waiver is normally endorsed by rental car agents who often receive incentives to further push an already oversold product. If you have full insurance on your vehicle, you don’t need CDW. Full car insurance coverage already includes collision and comprehensive. This means that in most cases, this type of coverage is unnecessary and saying no to it will save you money.

On the other hand, if you are driving a 1972 Ford Pinto with just a liability or no insurance coverage at all, then you may need CDW. Of course, that’s assuming that you do not have any credit card that offers protection. There are many credit card companies which offer car insurance protection as long as the whole rental car transaction was charged to a certain credit card. To find out, you may check with your Credit Card Company or personal car insurance provider before declining the CDW coverage.

Don’t Let Your Friend Borrow Your Car

Think twice before you let a fried borrow your car. Lending your car is just like asking for trouble, a real expensive trouble. If you lend your car to a friend and s/he got into an accident, it’s your responsibility. It’s you who have to file the claim with your insurance provider and not your friend. Worse, you are also responsible for any deductible. The accident that your friend cost may leave a lasting mark on your record and this increases your rates even if you were not in the car at the time the accident occurred.

Mind That Credit Score

Surprisingly, even your credit score is being assessed by your car insurance provider. This is usually done during the time of application or prior to renewals. It is widely believed that if the candidate is responsible with his credit and pays on time, there’s a less likelihood of making regular claims. Statistically, if you have dubious credit history, you are seen as someone inclined to file claims. Nevertheless, the utilization of this credit score method may cause you to pay higher premiums regardless of your clean driving record and no previous accidents.

True Value? Not Always.

If you are involved in an accident and totaled your car, your insurance provider will have to pay the approximate amount of money of an equivalent car. That said, this do not happen all the time because many insurance providers do not use the NADA standards nor the Kelley Blue Book to estimate values. They have their respective methods and often, will consider quotes from various dealers that are not always attainable. Hence, there’s the possibility that you will not be getting the value of the specific car that you own.

Every car is different and insurance providers are keen on factors such as condition, mileage and repairs. In case they opt to use one of these methods, it’s best to present your insurance provider with local quotes of your own. Keeping a documented vehicle history is recommended as well. This will be useful in case a dispute on repairs and maintenance arises. Make certain that the amount that you and your insurance provider settle on will include sales tax for the purchase of your replacement automobile. This is often left unsaid by most car insurance providers and replacing your car must not come with any additional taxes. If you own a classic car, it’s advisable to purchase classic car insurance as this type of insurance provides replacement value coverage.

If get into an accident and your car is deemed as repairable, as for diminished value compensation. Diminished value compensation provides coverage for the loss of market value of your car incurred due to the accident. The fact is, your car will value less once it has been wrecked even if it is completely repaired and bought back to new condition. Generally, people do not want to purchase a car that’s been involved in a major accident and this could significantly hurt your re-sale value. Always check with your insurance provider if they include diminished value on their policy.

Marital Status

It’s not uncommon for auto insurance providers to charge extra for certain status penalty. Unfortunately, this type of discrimination is totally legal and is being practiced in most states. Being single, divorced or even widowed can add to your insurance premium. Insurance providers will argue that the actuarial tables’ supports their guidelines like younger motorists have higher probability of getting into an accident the same statistic indicate that unmarried people are more accident-prone than their married counterparts.

If you are single and on the hunt for insurance quotes, the act of shopping around should eliminate these kind of companies.

Residency

One of the major considerations of auto car insurance companies when determining rates includes residency. If you are based in urban areas, your rates will increase significantly. This is because the likelihood of theft and/or accidents is profoundly lower in rural areas. Whereas factors such as limited parking, traffic and bigger number of uninsured motorists are elements for people living in inner city. This means that in some areas, the insurance rates are more almost double in cost as opposed to their rural counterparts.

Profession

Indeed, there is a statistical relation between your auto insurance risk and your profession. A recent study shows that scientists, pilot, navigators, actors and performers pay the lowest insurance rates with only an average of $935.76 each year. On the flip side, lawyers, judges, executives and entrepreneurs pay the highest insurance rates with an average of $1,383.63 each year.

The differences in rates may be due to a few factors. The latter normally have stressful and rigorous occupations. They spend the bulk of their time on the road and more time using their mobile phones and this is naturally a high-risk situation which is why insurance providers are requiring more expensive rates. On the other hand, scientists, pilots, navigators, actors and performers are deemed as less risky because their driving routine are result of skills necessary for their jobs. One example would be the meticulous and detail-oriented nature inherent with pilots will result in safer driving and lower insurance rates.

If you are driving less than 7, 500 each year, you are qualified for a low-mileage discount on your insurance policy. There are also many car insurance providers that offer commuters’ discount if policy holders use public transportation during the week.

2) Don’t use your vehicle for business functions

There are some insurance providers that add a “business use surcharge” or increase your premium as your mileage increase every year. However, if you absolutely must, always inform your agent or your insurance provider before you use your vehicle for any business functions. This is to ensure that your daily business travel is covered.

3) Increase your deductible

Increasing your deductible from $250 to $500 could lower your insurance premium by up to 15% annually. However, be aware that you are required to pay the larger deductible upfront if you are involved in an accident.

4) Keep tabs on your credit report

A solid credit history can potentially lower your insurance rates. Your credit history is one of the many documents that your insurance provider will evaluate when setting rates which is why it’s an absolute must to pay your bills on time and maintain a great credit history otherwise you risk being turned away by home and auto insurance companies.

5) Maintain a great driving record

Did you know that single speeding ticket could increase your car insurance rates by up to 5% to 10%, depending on your state? If you do not have any accidents or traffic violation for a specified period, usually three to five years, you may be qualified for a price break from your insurance.

6) Settle for a low-profile vehicle

Cars are rated on a risk scale for auto insurance purposes. Sports cars and other flashy and/or expensive vehicles are classified as high risk because they are the common target for thieves, vandals. Also, people who own these types of cars tend to give the impression that they drive more recklessly.

7) Consider moving

Living in the city costs more for car insurance. Living in urban areas mean more exposure to traffic congestion, crime, accidents and such. On the other hand, living in rural communities means the possibility of theft, vandalism and crime occurring are significantly lower than living in urban areas.

Park your car in a garage

Using a car garage to protect your vehicle will get you a small auto insurance premium discount. This is because cars parked in garages are less likely to be vandalized, stolen or struck by other cars.

9) Consider installing safety and/or anti-theft devices

Installing various safety and anti-theft devices, such as anti-lock brakes, automatic seat belts, airbags car alarms and tracking systems, not only lowers the chance of your vehicle being stolen or vandalized, you could also be eligible for certain discounts.

10) Keep your eyes peeled for discounts

It’s always best to hunt down various discounts that you can take advantage of. For example, you may get a discount if you insure multiple cars under the same policy or under the same company. Purchasing two or more types of insurance from one company may also entitle you to certain discounts.

Additionally, you may also get discounts for undergoing a defensive driving course, being an AAA member or staying with the same insurance provider for years. Of course, you need to check with your insurance provider for these types of discounts as these reductions may vary from one company to the other.

• Bodily injury liability provides coverage by car insurance companies for injuries and death claims against you as well as cover the legal cost if your car injures or kills someone during an accident.

• Property damage liability provides cover for claims any damages that your car inflicted during an accident. Note that since liability coverage provides protection from the other party, it is required in all states except in California, New Hampshire, Tennessee and Wisconsin.

• Medical payments covers for injuries suffered by you and to other occupants of the car. Note that in no-fault states, medical payments are replaced by personal injury protection which is a part of the basic coverage that is offered by most car insurance companies in those areas.

• Uninsured motorist protection provides coverage to injuries caused to you or the occupant of your car by hit and run motorists. Under-insured coverage is also available to provide cover over claims that you might take against a driver who do not have sufficient insurance.

• Collision coverage provides coverage to your car up to its book value. Generally, collision coverage carries a deductible which is the amount per claim that you have to compensate before the insurance is in effect. Remember that the lower the deductible, the higher the premium gets.

• Comprehensive coverage provides protection to your vehicle against theft, fire, vandalism, flood, hurricanes and other non-accident causes. This coverage also comes with deductibles.

Your main priority in the aftermath of an accident is to make sure that you and you passengers are okay. A thorough medical check-up is imperative. After this, call your insurance provider and notify them about the accident, in detail. This is the perfect opportunity to re-acquaint yourself with the precise terms of your car accident insurance claim.

Step 2: Compose a Detailed Auto Insurance Claims Statement

They key is to give as much detail of the accident as you can. It’s important to support your claim with pictures of the accident site, the damaged vehicles, etc. Include medical reports of all the injuries sustained from the accident, regardless of the gravity of the injuries, on your claims statement. If there were any witnesses to the accident, add their names as this gives your claim more weight. All these information will help substantiate your insurance claim

Step 3: Keep Record Of Everything Pertaining To Your Claim

This is not the time to rely solely on your memory. It’s best to keep track of every event that happened after your claim. File all bills, receipts, etc., discussions with the police, insurance agent or records of your medical expenses, everything must be recorded in writing. In the event that your claim is settled in court, these recorded information will be used as evidence.

Step 4: Know The Details Of Your Policy

Especially if you have multiple insurance policies. Each of these policies may allow you to file an auto accident insurance claim. To make sure that you claim everything that you are entitled to, you have to take great length understanding your policies’ details. It’s best that you take time off to review all your auto insurance polices from time to time.

Step 5: Always Be Honest

Making an auto accident insurance claim is not a good time to lie. It might sound clichéd but exercise absolute honestly especially when dealing with your insurance provider otherwise you risk voiding your insurance claim or being disqualified on fraudulent grounds.