Direct Auto Insurance

 Auto insurance can cost you a fortune or it can be very affordable, but what makes the difference?  Which insurance provider offers the cheapest rates?  Do some companies allow you to finance your premium so that your monthly payments can be lowered?  This is your direct auto insurance guide where we will walk you through how you can save thousands a year on your auto insurance.


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Auto Insurance 1010

Auto Insurance is required by law and there is no way to get around it. First of all lets go over the different policy name and what they mean. This will help you to understand exactly what you do or do not need in an auto policy.

Collision Coverage - This simply pays for the damage to your covered vehicle when it collides with an object.
Bodily Injury Liability - This pays for injury to body or even death if an insured person become legally responsible for a car accident.
Comprehensive Coverage Policy - This pays for damage or loss to your covered automobile for events that dont' involve a collision. These types of events include fire damage, theft, hail, flood, contact with animals, or vandalism.
Deductibles - This is the amount that must be paid before insurance benefits go into effect. Usually the higher the deductible, the premium is greatly reduced.
Insurance Premium - The amount of money your pay to an insurance company in return for insurance protection on the items being insured.
These are just the insurance basics that one should know before they talk to an insurance company. Please make sure you ask additional questions if they arise as new products are always coming out and existing products are always changing.

How To Get The Lowest Premium

 There are definitely some tricks of the trade and factors that will help you get the most coverage available for the lowest premium out there.  Premiums are usually priced in 6 month increments or even sometimes 12 month increments.

An insurance company pulls your insurance score.  This is different than your credit score.  Just like a credit score, however; the less you get pulled over and the lesser amount of tickets will help you have a higher score.  The higher score you have on insurance will result in better insurance rates which will yield you a lower premium.  What people don't realize is that insurance companies are just like any other financial company, they deal with risk and depending on the risk level, it will directly affect your premium cost and insurance rates.  Depending on your history, some products may not even be offered to you even if the insurance company offers them.

Tips to lower insurance premiums:

Too many people over insure their cars.  If you own an old car that is completely paid off, just make sure you have a policy that will cover the car of an individual if you caused a crash so that their car could be paid for.  Don't make the mistake of getting comprehensive insurance on a car that is worth less than $3,000 dollars.
A high deductible may sound lame, but it will drastically lower your premium amount.  If an insurance company knows that you are willing to put down some money if you get in an accident, they will consider you a lesser risk than someone that has a very small deductible.
Many insurance companies offer discounted premiums when you first sign up with them for the first 6 months.  It may sound silly, but changing insurance agents every year will keep your premiums low as you will be utilizing these discounted premium rates.
Make Them Compete Over You

 Because Auto insurance is required by law, auto insurance companies take advantage of many people.  They know that you are going to have to pay for insurance regardless so many have higher fees.  Don't just go to one insurance place and take their word for it.  Get 3 or 4 different price quotes and then call the same 4 insurance agents back with what the lowest price you can get somewhere else.

Even though it may seem on the surface that insurance companies cannot change their prices or rates, they most definitely can.  If agent knows you are shopping them, they will be more inclined to give you the lower price right upfront.  We would suggest saying to a new agent, "Hi there my name is _______ and i have been calling around to several agencies.  I have some very low premium offers and wanted to first of all see what you could do for me."  If they ask you what the other agencies priced you at, don't tell them until AFTER they quote you.  This will help you to see if the agency is inflating their prices or if they are realistic.  The more realistic the agency the better you can feel about them insuring your vehicles.