Archive for the ‘Why We Overpay’ Category

Tickets / Accidents

Monday, December 15th, 2008

How might tickets and accidents affect your car insurance premiums? One speeding ticket in the last three years will likely not have a significant impact on your car insurance rates, unless it is a teenage driver. However, multiple tickets and accidents most certainly will impact your rates.

If you have experienced a large increase in car insurance premiums your best bet is to take time to receive comparison auto insurance quotes from competing companies. The Agent Gurus Network has established a fast and easy way for you to receive multiple car insurance quotes from top rated companies wishing to bid on your business. Click Here to do that now.

The reason why it is important to request comparison car insurance quotes is because insurance companies charge differing amounts of money when tickets and accidents accumulate. Some insurance companies essentially want you to take your business elsewhere by increasing your rates substantially, while other companies will make the increase more reasonable.

Depending upon the company, the rate increase for multiple tickets or accidents can be most severe. Some companies may increase your individual rate two to three times the normal rate meaning that your car insurance premiums could double or triple! Or worse, you could be dropped by your insurance company altogether, being labeled as a high risk driver.

Many years ago I experienced this first hand. A minor accident was caused with only minor damage and the claim was not turned into the insurance company. Three months later, the same car was totaled and our insurance premium jumped from from $1,000 per year to $3,000 per year instantly. Although we were not dropped, the rate increase to $3,000 per year made us look for other insurance options.

If you have had multiple tickets or accidents what can you do to lower your car insurance rates?

Some may conclude that taking remedial drivers’ training courses would be the best option. Taking such a course may remove points from your driver’s license, but your insurance company will likely not inclined to do the same.

The underlying reason is that remedial drivers training does not necessarily change the behavior of the driver; it removes the points from the license but not necessarily the behavior that led to the tickets or accidents in the first place.

I distinctly recall as I was sitting in a class room for driver’s education, watching a gruesome video of car accidents and the victims being pulled from the wreckage, with the purpose of “scaring” teenage drivers into considering the seriousness of speeding. Did it work for me? Absolutely not! My parents made the mistake of allowing me to drive a sports car they had purchased. With every opportunity I had, every time I drove the car, I pushed the ‘pedal to the metal’, one time exceeding 140 miles per hour with a few of my school buddies egging me on.

Remedial drivers training may remove the points from your driver’s license, but insurance companies will likely not remove the surcharge for tickets or accidents.

Changing your driving behavior is the best way to lower your insurance rates over the long term.

The second best way, as was mentioned previously is to obtain auto insurance quotes from other companies. Insurance companies use varying methods to set rates and penalize those who accumulate tickets and accidents, and the rate differences can be substantial. You can Click Here to receive online auto insurance quotes in all 50 states if your car insurance rates have gone up because of tickets or accidents.

Teen Drivers

Monday, December 15th, 2008

Insurance For Teenage Drivers Will Make Your Premiums Go Through The Roof!

Parents, are you ready for your car insurance rates to double or even triple?

When you add your sixteen year old teenage son or daughter to your policy, you will likely notice a substantial increase in price. If you already have teenage drivers on your policy, the absolute best step you can take to lower your car insurance rates is to request car insurance quotes from other companies. The Agent Gurus Network has established a hassle free method for you to receive online car insurance quotes from top rated companies wishing to submit a competitive insurance bid on your business. Click Here to be connected to our referral network service.

The reason why you need to take time to shop around is that car insurance rates vary drastically between insurance companies. Truthfully, some insurance companies do not want to insure teen drivers and they will charge excessively high insurance premiums when you add your teenage son or daughter to your car insurance policy.

Why do some insurance companies shy away from insuring teen drivers?

The simple reason is that teenage drivers cause a disproportionately higher percentage of accidents, compared to older drivers. Consider these facts:

• Motor vehicle crashes are the leading cause of death for teenagers.
• 16 year-olds have higher crash rates than drivers of any other age.
• 16-year-olds are three times more likely to die in a motor vehicle crash than the
average of all drivers.

Some parents have been absolutely horrified to see their insurance premiums triple, when they added a teenage son or daughter to their car insurance policy. What steps can be taken to lower car insurance rates when teenage drivers are on your policy?

As was mentioned previously, take the time to obtain car insurance rate quotes from other local insurance agents in your area simply to compare whether or not you are getting a good deal. Take a few minutes to do that right now by Clicking Here

The next step you should consider is to pick an insurance friendlier car for your teen driver. An insurance friendly car would not be a sports car, a four-wheel-drive vehicle, or a luxury vehicle.

An insurance friendly car would be a four door, four cylinder, low profile car that does not need full coverage (Not a turbocharged four-cylinder vehicle by the way).

Also make sure that you are getting all of the allowable discounts for your teenage drivers, including:

• Driver’s training/education discount.
• Good student discount. (3.0 or better)
• Away at school discount. (for students more than 100 miles away from home-some
restrictions apply)
• Defensive driving courses. (some insurance companies will allow an additional
discount for defensive driving courses)

And finally, the biggest discount that you can ever receive on your car insurance policy is making sure that your teenage son or daughter is a careful driver. Inattentiveness, distractions and bravado cause accidents, severe injuries and sometimes death to our young drivers. Insurance companies will severely penalize parents (meaning considerably higher insurance premiums) when teen drivers push the pedal to the metal and get caught.

Have frank discussions with your teen drivers about the importance of safe driving.

Put into effect penalties such as loss of driving privileges if a ticket or accident occurs. That may be the biggest incentive that a youthful driver has to drive safely, the fear of the loss of driving privileges if the rules are broken.

Look for upcoming additional tips for teenage drivers on our blog that will show parents the best way to get the lowest prices on car insurance when you have teenage drivers on your policy.

Haven’t Shopped in Awhile

Monday, December 15th, 2008

This is a BIG MISTAKE for several reasons. Insurance companies raise and lower premium rates constantly because of competition. There might be hundreds of different insurance companies competing for your individual business in the state in which you live, and each company modifies their pricing structure on a regular basis to try to attract the best clientele.

Your current insurance company may be raising rates, but another company may be lowering them at the same time. You can and should take advantage of that. If you have not price shopped your insurance in sometime, you could be paying hundreds if not thousands of dollars more than what is necessary.

The Agent Gurus Network has established an online insurance shopping service whereby you can receive car, home, health, life, and business insurance quotes, in some cases instantly, all from the convenience of your own home from highly rated companies wanting the chance to earn your business. Take three minutes of your time to complete some basic information and receive your insurance quotes Click Here

With the economy in a deep recession it is more important than ever for us to review our coverage needs and what we pay for our insurance. Ginny and Willard had been long time customers of one insurance company only to find out that they had been overpaying by over $1,140 a year on their insurance. $1,140 is a lot of money to be flushing down the drain when so many people are losing their jobs and their homes.

The only reason why they requested a new car insurance quote is because an observant car salesman at McCluskey Chevrolet in Cincinnati, Ohio noticed that they were paying too much money for their coverage, and he encouraged them to ask for a quote using our service.

How do you really know if you are getting the best insurance rates from your current insurer? The only sure way to tell is to receive quotes from other competing insurance companies. Click Here and take just three minutes of your time.

Do not rely on the excuse “I’m too busy” to take time to shop for insurance. The internet has made it both fast and easy to receive competitive car insurance quotes in the comfort and convenience of your own home 24 hours per day. Also don’t be fooled by marketing gimmicks that some insurance companies use when they advertise the prices of other insurance company’s rates, when in reality they really want you to buy their insurance policy. You need to take the time to receive actual quotes from multiple insurance companies and it’s usually in your best interest to purchase your insurance from a local insurance professional.

If it has been more than three years since you last checked to make sure that you are not overpaying on your insurance, take three minutes of your time Click Here just to be sure.

In addition subscribe to our blog to receive insurance news alerts, and techniques to keep your insurance premiums low for the long-term.

Low Deductible

Monday, December 15th, 2008

Did you know that it is likely you are paying considerably higher premiums when you keep a small deductible?

If you have a $250 deductible or less, Click Here to see how much money you can save when you increase your deductible to $500 or even $1,000. It is likely that you can save hundreds of dollars. The Agent Gurus Network has developed a simple means for you to receive online car insurance quotes from local agents in your area.

If you feel uncomfortable having a larger deductible, think about this question: do you recall the exact date you turned in your last claim? Most people unconsciously feel more comfortable with the smaller deductible just in case they have a claim, yet it could be possible that the amount of money you would save over the long-term by taking a higher deductible would be better for you. Consider this example:

A couple owns two cars and a home with a $250 deductible. The total premium for the year is $1,944. By selecting a $500 deductible, their new annual premium would be $1,742 a savings of $202 per year. Keep in mind that this couple only increased their deductible by $250 since they already had a $250 deductible.

If they remained claim free for two years they are ahead of the game. Now let’s assume they decided on a $1,000 deductible instead. New annual premium would be $1,553 or a $391 annual savings. Over time, assuming they remain claim free they may be better off financially with a larger deductible.

Another factor to consider is that smaller deductibles may encourage insurance buyers to turn in claims.

Do you know what happens when you turn in too many claims? Say goodbye to reasonable insurance rates for three to five years. If you use your car, home, or business insurance policy like an HMO, your insurance premiums could double or even triple.

To keep your premiums low for the long-term, raise your deductibles to five hundred or a thousand dollars. Additional tips and strategies can be found on our web site that show the extra profits insurance companies make when policyholders choose small deductibles.

Click Here to save hundreds of dollars from insurance companies who are willing to give you a great insurance rate when you choose a deductible higher than two hundred fifty.

Bad Credit

Monday, December 15th, 2008

Where allowed by law, insurance companies use your personal credit as a factor to determine what to charge you for car, home, and business insurance. If you have poor credit, say goodbye to cheap insurance rates. Bad credit will cause you to pay as much as three times more compared to someone with excellent credit!

Some companies are willing to give you a break if you have bad credit. Click Here to receive a free online insurance quote from companies who will not necessarily penalize you greatly if you have had some tough breaks financially. Or let us assume you have fantastic credit, you will find companies willing to give you unbelievably low insurance rates.

Here is a question to discuss. Why do insurance companies use your personal credit in the first place?

Back in 1998 one of the very first companies to roll out credit scoring stated boldly that by using this additional underwriting tool it will help the company better underwrite and control losses, i.e. increase profits for the insurance company.

In theory, someone with a poor credit score is more likely to turn claims in and have accidents. Insurance companies have mountains of statistical data to back them up and have successfully defeated many bills with various state governments who wished to reign in insurance companies use of credit.

That being said, insurance companies will continue to use credit scoring in most areas and you as the insurance buyer need to be acutely aware of how your credit score will impact your insurance premiums.

What steps can you take to improve your credit quickly?

Step 1- Pay all of your bills on time!

This step seems simple enough. When you pay all bills as agreed upon then no “late” payment notices will be reported to the credit bureaus. One “late” payment on your credit report can drop you credit score by a hundred points or more! A “late” payment notice hits your credit report when you go 30 days past your due date without making a payment.

So do not pay your bills late, otherwise your credit score will take a nose dive!

Step 2- Keep your credit card balances lower than 30%!

When your credit limit is $5,000 make sure that your balance is 30% or less. The credit bureaus will give you a substantially better score compared to someone who has a maxed out credit card.

It is a very simple calculation to determine. Take the current balance on your credit card and divide it by your credit limit and that gives you the percentage you owe. For example, you have one credit card with a balance of $1,500 and your limit is $5,000, divide the $1,500 balance into the $5,000 credit limit and that gives you a percentage of 30% or less.

This strategy to improve your credit works. One of the staff writers tested this and reported a 60 point credit score improvement within 2 months on an already great credit score.

If you think that your current insurance company is penalizing you because of your credit Click Here to receive comparison quotes.

More helpful information can be found on our blog showing additional techniques that you can use to get the best insurance score from your company.