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 Posted: Tue Oct 28, 2008 6:58 am Post subject: How to lower the auto insurance premium? |
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My auto insurance premium has gone up over the years without even a claim filed under it. I know that it wouldn't be wise to drive without coverage, but is it possible to lower the premium without canceling the policy?
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sabre-tooth
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| Posted: Tue Oct 28, 2008 6:59 am Post subject: |
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Well, the hike may have caused by the overall change in the premium level in the area. The insurance companies review their rates time-to-time and modify the rates accordingly. Hence, you not always have the control over the rate change. However, the number of claims filed under a policy affects the rate change and the insurers refer to the CLUE or the Comprehensive Loss Underwriting Exchange Report to determine the rate for the policy holder.
The CLUE report is an important document, but it maintains the claim record upon the residence address. Hence, you may request for the CLUE report to check for the entries mentioned in it and should also take the initiative to remove any false or wrong entry. |
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jeorge
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| Posted: Tue Oct 28, 2008 7:28 am Post subject: |
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Many of us don't know that investigating about a claim also goes into the CLUE report, which means that the insurance companies may take this factor into consideration as well while deciding the premium level.
Another important report that may influence the premium level is the credit report. The relation between the insurance risks and the credit report is unknown though, but the insurance companies in an increasing number are using the credit report to determine the insurability as well as the premium level of the policy buyers. |
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simon
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| Posted: Tue Oct 28, 2008 8:28 am Post subject: |
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Hey guys, I've heard that the windshield claims can also affect the premium level. Many insurers offer glass coverage with the payment of extra premium, but they won't disclose it to the clients whether or not they will consider the glass/windshield claims while reviewing the rates. Hence, it'd be wise to ask the agent about claims affect on the premium rates.
~Jeremy |
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JeremyHolter
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| Posted: Tue Oct 28, 2008 8:56 am Post subject: |
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Another way to reduce the auto insurance budget is by reviewing your coverage requirement periodically and disposing-off the redundant coverage, like- if you are driving a battered car with no-lien on it, you may wish to cut the cost on collision coverage.
The rental and towing coverage is always not a good idea to use. This claim may also go into your claim report and can affect the premium rate. |
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jeorge
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| Posted: Tue Oct 28, 2008 10:11 am Post subject: |
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One of the best and easiest ways to reduce premium is by raising your deductibles on collision and comp...what are your deductibles now?
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Lori
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| Posted: Tue Oct 28, 2008 10:27 am Post subject: |
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| Quote: | | One of the best and easiest ways to reduce premium is by raising your deductibles on collision and comp...what are your deductibles now? |
You are right Lori that by increasing the level of deductible on the policy one can cut the cost of premium. However, don't you think that there is certain amount of risk involved in raising the level of deductible? As far I know, that higher deductibles mean higher out-of-pocket expense. It may offer immediate relief but may affect the budget of the individual at the time of requirement. Many of us aren't frugal with the expenses.
~Jeremy |
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JeremyHolter
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| Posted: Tue Oct 28, 2008 3:01 pm Post subject: |
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Did you agent explain to you why the premiums went up? Did you ask?
It's possible that your company simply had a rate increase.
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LifeIsGood
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| Posted: Tue Oct 28, 2008 10:38 pm Post subject: |
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| How come some companies have rate increases while others do not? Probaly a dumb question but it seems my sister has always got a better rate than us or her monthy payment goes down but our always stays the same. Her vehicles are even newer. |
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fireyone
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| Posted: Tue Oct 28, 2008 11:24 pm Post subject: |
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Depend on the company. How much they have put out for claims the last year, etc.
Remember though, all rate increases are approved by state governments so it isn't something the insurance company just made up. They had to get it approved.
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LifeIsGood
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| Posted: Tue Oct 28, 2008 11:33 pm Post subject: |
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| Well since it has to be approved by the government that makes me feel better. I really think I can find insurance cheaper than where I am at now. I have actually looked into it but for now I can not change I have to stay put. Later I am going to change to another company. |
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fireyone
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| Posted: Wed Oct 29, 2008 1:47 am Post subject: |
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Just make sure you compare apples to apples. If you have 50/100/50 now..make sure the new company quotes you the same. Too many companies will quote bottom dollar coverages just to get your business.
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LifeIsGood
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| Posted: Wed Oct 29, 2008 8:47 am Post subject: |
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| Quote: | | However, don't you think that there is certain amount of risk involved in raising the level of deductible? As far I know, that higher deductibles mean higher out-of-pocket expense. It may offer immediate relief but may affect the budget of the individual at the time of requirement. Many of us aren't frugal with the expenses. |
That's correct, but if going from a 250 to 500 deductible saves you say 150 a year in premium in two years you've move than made up the difference.
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"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr. |
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Lori
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| Posted: Thu Oct 30, 2008 1:17 am Post subject: |
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Thats really true...you just showed me this recently Lori...it makes sense.
Life...I did get the quotes and it is really good coverage..believe me I had the person outline the coverage details for me...Learned a good lesson the hard way. |
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fireyone
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