Evil Insurance Industry?

There are lot of sites where you can compare different car insurance company. But insurance companies, individually and together via their political lobbying organizations, cry about how badly off they are, how much money they are losing, and so on…

Most claims of the clients say things like this:

“My driving record was just as spotlessly perfect for the year preceding the most recent renewal as it was for the previous year. Nevertheless, my rates nearly doubled. Same spotless driving record, same vehicle, same usage, same location. The explanation given was that the companies were hiking rates to make up for money loss on bad investments”

Insurance companies has to deal and insure all kind of drivers: *drunk + impaired (drugs) drivers *drivers not paying attention because they are talking on cell phones *speeders who buy radar detectors and speed intentionally!

Of course, that you might think that if your insurance company makes some bad financial decisions. “Why should I pay for their mistakes?”

But is that possible to save on auto insurance? Perhaps shopping around for car insurance is one of the best ways to save on auto insurance. Do not fall into the trap of just going with the same old carrier you have always been with, especially when their premiums jump up.

The major factors that determine your car insurance rate are:
-You. (age, gender, marital status, driving record and record of prior claims)
-Where you live.
-Your vehicle.
-How you use your vehicle.

The major types of insurance coverage you should be familiar with including must be:
-Collision
-Comprehensive
-Medical
-Liability
-Uninsured motorist
-Underinsured motorist
-Umbrella
-Gap insurance
-Other optional coverage

Overall, it's a great primer on shopping for and saving on insurance.

Nowadays you have several ways of comparing insurance companies.

As many people is complaining, others are happy with their decision: “My insurance rates have changed very little in years. A perfect driving record must be helping me out.”

“I've had a perfect driving record for 9years and have been driving the exact same automobile for that length of time. And yet, I'm paying $15 more per month for my liability insurance than I did 3 years ago. I've called them on a couple of occasions asking them what's going on, and my reply each time was "Sir, it is just a general rate increase. Nothing you're responsible for." According to what I've read in the newspapers, the purpose of these "general rate increases "is to compensate for incidents of insurance fraud. Personally, I think it's the insurance companies that are committing the fraud!”

But at the end of this discussion…you are who pay them! So you need to think… What can I do? If you are one of the first group that is not agree with their company, here are some tips to go to the second group and be happy with your insurance company:

1. Get credit for driving less. Find out from your insurer what the low mileage discount is. Generally if you drive less than 7,500 miles a year you'll qualify for a 5 percent discount. Driving less than 5,000 miles a year will give you 10 percent off your insurance.

2. Check your credit report. More than 90 percent of auto insurance companies use your credit information to determine how likely you are to file a claim on an insurance policy. If you don't pay your bills on time, you're going to pay higher premiums.

3. Get a professional discount. In some states large insurers give discounts for people in certain low-risk professions.

4. Join the club. You may get discounts, not only on what you do, but how you spend your time. Some insurance companies offer discounts to young people who volunteer or join civic or community organizations.

5. Drop coverage on your old jalopy. If you have an old car, you may want to consider dropping collision and comprehensive coverage. That's because you'll probably pay as much in premiums over a few years as you'd pay to replace or repair the car.

Call a couple of the larger carriers and then check with a couple independent agents and phone-based carriers, just to make sure you've covered your bases.

If you prefer to shop on the Internet, a number of services offer online price quotes. Web sites give you quick access to a number of quotes without ever picking up the phone. However, as convenient as they are, it's still advisable to consult other more traditional sources as well.

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