The Top Three Myths About Cheap Auto Insurance
Keywords: cheap auto insurance quote, cheap auto insurance, low cost car insurance, auto loan
Myth #1 - Don’t assume your insurance company won’t care about what you buy. The fact is, is that the companies do care, and the cheap auto insurance you were carrying on that old pickup with liability only isn’t going to be so cheap anymore when you add that new hotrod with full coverages to your policy.
When insurance companies charge a premium for a vehicle, they look at several factors including how many miles a day or year it is driven, who is driving it, how big or small of a physical damage deductible the owner is willing to carry, the driver’s accident history, performance and crash statistics for the vehicle and it’s cost new.
One of the problems people often face with buying a new car is the insurance sticker-shock after the vehicle is purchased, or even worse to find out the vehicle isn’t eligible for coverage.
So what’s the remedy for buyer’s regret? Just a little pre-planning before you sign on the line. It’s good to have a few possible vehicle selections in mind before you contact your agent for an insurance quote (don’t wait until you’re at the dealership to do this). That way if you find out if your first choice isn’t going to be workable, maybe your second choice will be.
Myth #2 - You won’t have to report any vehicle changes to your insurance company, coverage will just be automatically extended. Although a buying a car with an auto loan requires you to contact your insurance agent or company to add a lienholder, many people still either assume their new vehicle is automatically covered or simply forget to report it.
Although many auto insurance companies will give you an automatic 30 day grace period to report the acquisition of a new vehicle, it’s best to make a point of contacting them the day of your purchase. To fail to do so could mean that auto insurance that was so cheap to begin with is no longer worth much when you have to deplete your savings account to pay for uncovered damages in the event of an accident.
Myth #3 - Just because your insurance company has been giving you a great auto insurance rate on your current vehicle, don’t assume they will be just as competitive on your new vehicle. Different companies charge different rates on different vehicles depending on the variables they place the most weight on.
To use an example here, say if you are a family of three with only two vehicles. If that third family member is a young driver, they may have only been rated as a part-time operator. With the addition of a third vehicle, most companies will force a young driver to be classified as a principle operator (three cars for three drivers), which can cause insurance rates to skyrocket. Where your current company may have excelled with part-time young driver rates, your cheap auto insurance premium may not be so cheap anymore once your young driver is re-rated as a principle operator.
Whether or not you fit this scenario, it never hurts to shop around a little for the most competitive auto insurance quote before adding a new vehicle. If you’re happy with your current insurer because of great accessibility, responsive claims handling, financial stability, etc, then maybe you won’t care. But if you find out you could find even cheaper auto insurance by switiching companies, then maybe it’s time for a change.
Stephen Kennedy is the owner of Premier Automotive Consulting, a member of the Automotive Consulting Network and a 30 year veteran of the auto insurance industry. For more tips on auto insurance, auto loans and how to buy a car, please visit our website www.autobuyersbuzz.blogspot.com
Previous Articles Highlighter:
Why Online Car Loan Companies My Be Your Best Bet If You Have Bad Credit (1)
You don't want to spend the next 5 or 6 years paying off a car that will depreciate in value the moment you drive it. You run the risk of ending up in a situation where you'll owe more than what the car is worth.
Winged To The Ground (2)
This air creates drag and can cause a loss in performance and horsepower. Aside from its form, another use for the spoiler or the wing is the redirection of the air hitting the car.
Getting Parts For A Motorcycle (3)
There are a lot of specialized e-groups out there for specific makes and models of bikes. Look there, as there may be someone who is getting rid of a set that will work on your bike.
Why To Wait A Year For A Hybrid Car (4)
There are, though, three good reasons to purchase a hybrid, despite the waiting list. One excellent reason to purchase a hybrid car is to save money. Gas prices have been skyrocketing for the past two years.
Tips For Buying Used Auto Parts (5)
Duplicate Auto parts can be duplicated easily and these are generally not safe and reliable. Usually it is easy to identify a duplicate part by visual inspection. If the part differs in look from a new part, has a mismatched logo, or typo or anything out of the ordinary then it can be assumed with high certainty that it is counterfeit.
A Look At The Function Of Your Car's Suspension And What You Need To Know (6)
On the other hand, the function of the steering system is to let the driver control the course of the car through the steering wheel. It is very important that the systems of your car are functioning properly.
How To Maximize The Mileage On Your Hybrid (7)
This will keep you from having to continually accelerate and break to get where you are going. When drivers get into that mode, they also tend to speed to get out of whatever cluster they are in and get into more accidents on t op of that.
A Few Things You Need To Know About Lowering Your Car (8)
Lowering the spring in a cheap and dangerous way may involve clipping or cutting the stock spring. This will result into initial savings since there is no need to purchase a lowering spring, shock, and camber kit or a long steering arm.
SUV Rollover Accidents - What To Know Before Buying An SUV (9)
An increasing number of SUVs are being made with electronic stability control which dramatically decreases the chance of an accident. This may become a requirement in the next few years.
How To Do Leather Detailing And Color Matching Properly For Your Vehicle (10)
Begin with the lightest color of the pigment structure which is White, then yellow (90% of time it is yellow,) then black. It is common to select a small amount of red or orange between the yellow and black.
How To Be Sure That The Car You Are Interested In Hasn't Been On The Bottom Of Lake Ponchatrain (11)
Despite what you have been told, you can negotiate at car dealers as well. With a private seller, negotiating is much easier. They know what their bottom line price is - the trick is getting them down to it from the asking price!
Some Safety FeatureTips You Should Always Keep In Mind When Buying Sports Cars (12)
Move the seat back to a relaxed position and check i to make certain there is approximately 10 inches between the airbag and yourself. Seat belts while one of the oldest safety devices are also an important feature in car safety.
Guide In Buying A Motorbike Helmet (13)
Now that is the epitome of coolness that a bike brings. But have you ever thought of going hundreds of miles per hour and smashing yourself into traffic no that would be splattering.
What Is A Supercar And Why Is So Exciting About One (14)
1. Acceleration - These cars are fast going up to 160 m.p.h. in less than 6 seconds. 2. Design - Many supercars have rear-wheel drive layout, and a rear mid-engine.
Factors To Look At When Considering A Car Loan (15)
Car loans are loans with need much consideration by the customers and only then they should be settled upon. There are several factors that should be analyzed in detail before taking any kind of decision regarding considering a car loan.
Don't Get Burned By Car Dealer Tactics (16)
Gregg Hall is a business consultant and author for many online and offline businesses and lives in Navarre Florida with his 16 year old son. For great car care products for your car go to www.stopwaxing.com
How To Prepare For And Take A Car On Test Drive Before You Buy (17)
If you visit a seller to test drive the car and they don't let you drive it, leave immediately. There's no reason to stay because you are not buying that car.
Crashworthiness: A Legal Doctrine (18)
Your attorney will rely on the reports of this expert investigator, along with testimony from other expert witnesses, in order to litigate your crashworthiness case. It is your attorney's job to cross the major hurdles in the discovery process that characterize crashworthiness litigation.
Why The Electric Scooter Is So Popular Among People Of All Ages (19)
Another name that the electric scooter may be called is a moped; this is a term that many are familiar with. Unlike gas powered scooters the electric variety is very friendly to the environment and do not pollute the air.
The Best Used Car Financing Revealed (20)
Another benefit to watch for is low % rate vehicle financing promotions on specific models. But in some cases dealership financing can be costlier, especially for borrowers who are uneducated on used car financing.
Newer Articles Highlighter:
Give That Car The Extra Umph By Inducing Air (1)
This upgrade can give that car the boost it needs at a very low cost. Just be wary of racing that ride on the street since it is dangerous and some of the engine parts are not yet built for high rpm boosts.
Things You Can Do To Really Make Your Car Stand Out At The Next Show (2)
You will want everything to be clean so that your car looks brand new and fresh. Having a dirty car isn't going to get you much of a reputation at any car show.
Cherish That Used Mini (3)
Accessories can also be obtained to personlaise your cherished Mini perhaps avoiding the need for a name! Expert Mini enthusiast Shaun Parker looks into the Used Mini market. To find out more please visit www.coopermini.co.uk
How To Buy A Tractor That Meets Your Needs (4)
Cab tractors are additionally useful in that they offer protection from rain and snow. You are less vulnerable inside the cab, reducing the risk of injury from accidents, resulting from rollovers.
Automobiles; The Fastest Depreciating Investments On The Planet (5)
A good investment is not a compulsive buy but based on sound business information. Cars, though not always, lose their luster after the first few weeks and you quickly realize you could have made a smarter purchase.
Things You Need To Consider When Buying A Brand New Sports Car (6)
The purchase of a new high performance vehicle can be a little frightening because it can be expensive so how do you look for one while being cautious at the same time?
Want Another Good Reason To Buy A Hybrid Car - How How About A Tax Break? (7)
There are many financial incentives for buying a hybrid car so you should think strongly when purchasing your next new vehicle. Gregg Hall is an author living with his beautiful wife and family in Navarre Beach Florida.
Keep Dry When You Are Camping With A Camper Awning For Your RV (8)
An awning is a great way to extend your living space and provide an outdoor space that feels like the comforts of indoors. Your awning attaches to the RV and rolls out to provide protection from the sun and weather elements.
Bad Credit Is Not The End Of The World - You Can Still Get That Car You Want (9)
Therefore you determine you genuinely need to acquire a car, but you don't have adequate money to purchase one outright for cash. You're going to need to look into some sort of financing, but there's the rub.
Getting The Most Out Of Repo Car Auctions (10)
So in summary before you go to these car auctions first you should check up on the car you want to buy. Make sure its listed. Then check the blue book value.
Automotive Fuses Use & Replacements (11)
Check the cover, with most of the vehicles you can remove with your hand and with the rest follow what the user manual suggests. Once you find the box carefully go through the owners manual to locate the exact fuse number, which might not be functional.
How To Save Money On Gasoline (12)
Most vehicles today are built to use regular unleaded gasoline. Be sure to check your owner's manual but chances are if you are spending money on the high dollar gas you are just wasting your money.
Read The Small Print And Avoid Extra Costs At The End Of Your Lease (13)
My suggestion as a former automobile sales manager is that if you are stuck on leasing that you make sure you stay under the mileage allowed, keep maintenance records, repair any damage, and get the vehicle looked over and appraised before turning it end at the end of the lease.
How To Avoid All The Car Dealer Scams And Find The New Car Buying Secrets (14)
It can be a daunting task. We know that retailers get their vehicles at wholesale so that they can sell for a profit. We know that they often try to slip in extras that we may not need in order to boost up the price, and they are also offering their salespeople special incentives to make money.
How To Shop For And Find Any Auto Parts You May Need For Your Vehicle (15)
If you own a vehicle that was made in the early sixties or before you will probably have a tough time finding parts that are inexpensive. In most cases the parts will be rare and difficult to find and the rarer they are the more they are going to cost.
A Career In Auto Sales (16)
These tests are also a help to the new person, since they are able to identify their strengths and weaknesses and improve on them. Once you are sure about the manufacturer and dealership that suits your personality, put in your application for a job.
Is A No Haggle Dealership For You (17)
However, if you're timid, too busy to research or spend time making a deal, or in one of the groups that historically are offered worse deals, you may be better off at a no-haggle dealership.
The End Of Window Replacement Fiascos In Dallas (18)
But there it was, clear as day, one large bullet hole through my back windshield. It never really made sense to me how the bullet didn't leave a second hole through the front windshield.
Looking Forward To Cars With A 250 MPG Fuel Advantage (19)
The amount of tax concession depends upon your income in the year you file your income tax return. The cost of the car will also depend upon the cost of the gasoline prices at the time of purchase.
Tips For Buying A New Car (20)
You should never go to a car yard without your quotes to compare with their prices. Saleem Rana would love to share his inspiring ideas with you. You can get more information on how to research your chosen vehicle and save money here: www.theempoweredsoul.com