Car Insurance

Buying a car is not necessarily a cakewalk. Besides having to choose a vehicle and arrange for financing, you need to find a car dealer and get insurance on the car. With every step and decision you make, there are several legal formalities. The car dealer is one of the most confusing people you will meet along the way, so car buyers everywhere must keep their wits about them. Go somewhere that has a good reputation. The secret behind every car dealer is that they are interested in personal gain the commission they will make off of the vehicle they sell you, plus any add-ons.

In some states you can purchase your car insurance from the car dealer himself. Bad idea. The reason for this is they will markup your insurance rate because again, they are in it for profit. They are not interested in protecting you — this is not a priority. It IS a priority, because they will want you back again, but your specific financial needs are not at the top of their list. You will notice they will give you great service while you are there. Again, this is because they are in the wining and dining stage that appears before every closed deal. Obviously, you are more likely to purchase something from someone that treats you well. In the eyes of the car dealership, they are competing with all of the other dealers that hope to win you over while you are making a major financial decision. They are hoping you are going to be so blinded by their niceties that that will overpower your decision to purchase, lease, or walk away.

While you are being treated like royalty, stop for a minute if you hear the words gap insurance. Gap insurance is an insurance coverage that will cover you in the event of a total loss. It will cover the “gap” created by the difference between the value of your vehicle and what you currently owe on it. You may think you won’t need it, but you will. The moment you take your new car on its first drive it depreciates in value, so even if you got in a wreck or had it stolen minutes after driving away, you are going to owe more money than you intended. Gap insurance covers this. It is a good idea to get it, a bad idea to get it from the car dealership. Again, the same principle applies. They have already marked it up to make their wallets fatter. In most cases, the markup can be anywhere from $500 — $1000 above the cost of the actual coverage. This is a known fact published in Automotive News. There are several trustworthy dealers for Gap Insurance either online or through a local car insurance company. While buying insurance for your newly purchased or leased vehicle, do it through an actual insurance company. There is nothing wrong with the insurance offered through your car dealer, it will secure you from several contingencies, but it will also be more expensive.

Everyone wants to save money on their car insurance, Oregon drivers possibly more than most other drivers. The reason for that is that Oregon drivers pay some of the highest car insurance rates in the country.

If your car is being financed by a bank or other financial institution you may have only limited choices when it comes to comparing low cost auto insurance, but by comparing the rates offered by a variety of companies you can still save money – the rates offered for the same policy by different companies can vary by several hundred dollars a year, so taking the time to make the comparison can really pay off.

Start by writing down how much of a deductible you can afford to pay in case you have a claim, and what coverage amounts you will need based on the age of your car, and the area where you live. If you live and drive in an area with a lot of new and very high-priced cars you may wish to take out higher Collision limits than you would if you normally drive in an area where most people drive older models. If your car is over 5 years old consider taking out the lowest amount of Comprehensive coverage offered – or even dropping comprehensive coverage altogether.

Once you know what coverage amounts you are comfortable with, get online and find one of the many sites that allow you to quickly and easily compare auto insurance policies and premium costs.

Be prepared to answer quite a few questions, including questions on your driving history (accidents and tickets within the past 5 years) and even questions on your credit history before you can get your quote comparisons.

Consider the time spent getting rate quote comparisons as an investment in lowering your future car insurance premiums – the more of an investment you make today, the greater your savings will be for years to come.

Unfortunate but true, vehicle insurers are not always looking out for your best interest. That being said, it is important for smart local policy-shoppers to be aware of all the discounts that apply to them and their vehicle.

Let’s Get Started:

PART 1: Austin AUTOMOBILE INSURANCE - SAFETY FEATURES

1. DRIVER & PASSENGER AIRBAGS
Most Austinites have either front or side airbags for either the passenger or driver in their vehicle. This feature comes standard on many cars now, for example the new Volkswagen Beetle. Here’s the complete listing of airbag types:
-Driver-side Airbags (frontal)
-Driver-side Airbags (Side) - great safety feature
-Passenger-side Airbags (frontal) - like on the new Chevrolet Avalanche
-Passenger-side Airbags (Side)

Continuing On……….

2. BELT PASSIVE RESTRAINTS
Once again, most Austinite drivers have at least one form of these. Passive restraints are automatic safety devices, such as:
1. Automatic Seatbelt systems
2. Sliding Door-mounted belt systems
3. Other advanced seatbelt systems, like those offered in the new Toyota Scion tC Supercharger.

3. INSTALLED ANTI-LOCK BRAKES
Amazingly Almost everyone has these, but - remarkably - fails to mention this to their local Austinite agent. If you don’t mention them, you could be missing out on a great discount.

Continuing On……….

4. AUTO-DAYTIME RUNNING LIGHTS
This great factory-set feature makes it impossible to turn off the headlights for your car. Certain Japanese car-makers (like the Nissan Altima) have this standard on some models.

PART 2: Austin Texas AUTO INSURANCE - SECURITY FEATURES

5. STEERING-WHEEL LOCKING BAR (THE CLUB)
Austinites commonly refer to it as the “The Club” Not all agents give discount for this, because it must be manually activated (physically), and it is relatively easy to remove by experienced thieves. One agent source, Phil from Progressive, stated that his company does not offer this discount, but knows that other Austin agents do.

6. AUTOMATICALLY-ARMED CAR ALARM
This great type of alarm is automatically activated as soon as the Austinite driver locks their doors (key or remote control), or even shuts their doors.
- Big insurers, like AIG, will offer discounts for automatic alarms, but may not for manually-armed ones.
Hot Tip: Could get you 5% off on Austin Texas Comprehensive.

Continuing On……….

7. MANUALLY-ARMED CAR ALARM
Phil from Progressive stated that most insurers give a 2% discount for this. This type of automobile alarm must be armed manually by local Austinite drivers, typically using a key-ring remote control, or a manual punch-pad. Amazingly, because this must be manually activated, the discount is lower, or not offered at all by Austin (TX) auto insurer agencies.
Hot Tip: Could get you 2% off on a Comprehensive policy

8. VIN WINDOW GLASS ETCHING
Pay a visit to your local Austin mechanic, and have your Vehicle Identification Number (VIN) etched into all of the windows glasses in your car. Talk to your local Austinite dealer or auto hobby shop to see who can do this, or just do it yourself.
- Not all local Austin agencies offer this discount; make sure to ask anyways

Continuing On……….

9. LO-JACK - AUTO RECOVERY SYSTEM
Local Austinite drivers refer to this by its nickname - the “Lo-Jack” - and it is the most effective anti-theft device on the market. It consists of a transponder that allows your car to be tracked by local Austin police. A local driver (we’ll call him John D. Policyholder to maintain his anonymity) was able to save $334.46 on a bi-annual policy with AIG!
Hot Tip: Could get you as much as 10% off on a Comprehensive policy

10. ENGINE ELECTRONIC IMMOBILIZER
A great factory-installed feature cuts off power to your ignition, once the key is removed, making it near-impossible to “hotwire” the vehicle.
- Must be passive (automatically activated) to get discount
- Some Austin car insurance agencies require that this great security feature be coupled with a regular alarm system (i.e. must have both) in order to qualify.

You may think telling your insurance company a little white lie does no harm but the reality of this can be somewhat different. In a recent report carried out by Admiral it has been highlighted that in actuality you could find yourself without an insurance policy if you are caught out.

“What constitutes lying to my car insurance company?” you ask. Well, for starters, something as seemingly insignificant as reporting your annual mileage to be much less than it is can be seen as a “lie” by your insurance company. This could result in a price hike on your policy or even end in your insurance policy being cancelled. This may seem pedantic but as the report states; “An insurance policy is a legal contract so it is vital your honest”.

The most common details falsified by policy holders are details such as; motor convictions (i.e. speeding fines), previous claim history, modifications, etc. In researching information for this article, I came across a “lie” that quite surprised me. For many a new car driver, cheap car insurance can be quite elusive and as such they may resort to insuring a car in their parents name and add themselves as a named driver. You may think this is acceptable but it would appear this is not the case. It is viewed as fraud by the insurance companies, as you will be the main driver of the vehicle not you parents. In the event of a claim you may find the insurance company will not pay out if they are able to ascertain this fact.

Thousands of policies are cancelled every year by these companies when it is found out a policy holder has lied to them. Even the smallest falsification can lead to the policy being claimed invalid by the supplying company.

So, what can you do to prevent this from happening to you? For starters, make sure you inform the insurance company of any claims you have had in the past three years, even if you were not at fault. If you receive a motoring conviction part way through a policy term, you are still under obligation to inform the policy issuer, even though they may not impose a charge. If you are in any doubt over an issue that may affect your premium, you should seek advice form the insurance company. Another thing to be wary of is applying for insurance online. Ensure that any details you are not asked for are reported to the company by phone after getting your initial quote. An example of this might be if your car has received after market modifications, such as, engine tuning chips, body kit, etc.

Connecticut drivers can find the best rate on their car insurance by shopping around. However, prior to calling an insurance agent, be equipped with basic money saving information. Finding the best insurance rate can be as easy as providing the information the insurance companies want.

For example, insurance companies do not want to hear that you are buying an expensive car for your teenaged child. Understanding the mindset of the insurance company may prove to save you a bundle. Here are some tips:

1. More than one policy: If you have more than one line of coverage, insure them with the same company. Insurance companies like to spread risk. What that means is if you have a homeowners policy and an umbrella policy with one carrier, it would make sense to place your automobile policy there too. You will earn a multi-line discount. Ask each insurance company what the discount will be. If you’re in a situation where you have several companies quoting your insurance and the premiums are pretty much the same, the one willing to offer the largest multi-line discount may be the one to insure your autos.

2. People: No matter how much we like to do things on the internet, insurance is still a people business. Call and talk to your agent. One phone conversation may be enough to find out that because you are an ex military person, you are entitled to a discount. Or, because you are a member of a National Teaching Association, you may be entitled to yet a different discount. You would never know if you didn’t speak to a person.

3. Vehicle Safety Features: The newer cars are equipped with anti lock brakes, air bags, and automatic seat belts. Find out how much these are worth in premium savings before you purchase a car. If you were pondering whether or not to purchase the current model car or the older one without these features, one call to your agent may help you to decide.