Rates for Car Insurance

Your insurance agent hands you a bill for your car insurance.  You think that the premium is what you have to pay.  Not so fast.  Rates for car insurance do not have to be set in stone.  Just because your insurance agent says that your annual premium is one amount, does not mean that is what you will – or should – be paying. There may be discounts offered by your carrier that your agent has no idea you qualify for.  It is your job to stay informed and let him know when you think there’s a discount to be had.

There are dozens of ways to cut the rates for car insurance by 20-50%.  Yes, that’s right – as much as 50%!All you have to do to get these multiple discounts is to ask your insurer which ones they offer. Then start applying them to your own premium and watch your bill decrease.

So, what type of rate-cutting discounts should you be looking for?  Here are the most common:

• Multiple Vehicle Discount:  If you have ore than one vehicle insured with the same company then you should be getting some sort of discount.  Keep in mind that a vehicle can be a car, truck, motorcycle, RV, or other type of motor vehicle

• Multiple Driver Discount:  Families with more than one driver in the house, a discount is offered; especially if you have fewer cars insured than you have drivers. After all, if three of you are drivers and you only have two cars, that means someone will not on the road at all times. – and that means that  person can’t get into an accident.  

• Low Mileage Discount:  Drive your vehicle less than 7,000 miles per year and you probably qualify for a big low mileage discount.  Of course you will have to prove how little you drive through your inspection reports, but those are simple to get from your mechanic. Ask your carrier what their policy is regarding low mileage verification.

• Multi-Policy Discount:  All-too-often people disregard the benefits of using the same insurance carrier for all of your insurance needs.  By taking out policies for your car, house, life, etc. with a single provider, you may qualify for discounts on all of your insurance needs.

• Anti-Theft Discount:  Be sure to tell your agent about any anti-theft devices installed in your vehicle to receive a rebate or ongoing discount on your premiums.

• Safe Driver Discount:  Why should a good driver pay as much for insurance as a bad one? You don’t have to.  If you have not had an accident or claim in awhile, be sure to let your agent know that you expect a reduction in your rate.  Plus, if you register and attend a driver safety course you may qualify for an additional rate cut.

• Good Student Discount: Have a teenage driver?  If they are an A-student, be sure to register those good grades with your insurance carrier for a discount up to 20%! Most carriers are more than happy to reward good students with an insurance rate cut.

In addition to these standard car insurance discounts being offered by most of the main carriers across the U.S., there are some simple lifestyle changes you can make to help keep the rates for car insurance low:

• Drive Carefully (and slowly): Avoid getting caught speeding or getting any other type of traffic violation to keep your insurance rates as low as possible. Every traffic ticket you get is reported to your insurance carrier, which could raise your premiums.

• Keep your credit score high: Most people do not realize that their insurance carrier can use a poor credit rating to boost your insurance rates.  A bad credit score usually indicates an irresponsible consumer. Therefore, it has become common practice  for companies to periodically check a customers credit rating, and use a poor credit score as  areas on to spike their insurance premiums

• Downgrade your car.  Te fancier the car; the more insurance you will pay on it. The least expensive car sports the cheapest insurance rates and for good reasons: they are cheaper to fix after an accident.

• Get Married:  Single men are hot the hardest when it comes to buying car insurance. Get married and reap a discount up to 30%!

• Move to a better neighborhood. High crime areas sport the highest insurance rates. Move to a cheaper neighborhood (or the suburbs) and get a lower rate.

Cutting your rates for car insurance doesn’t have to be hard. All you really have to do is follow the tips listed above and watch your next bill clashed by a whopping 30-50%!

Motorcycle Insurance Prices

A lot of things can affect motorcycle insurance prices, including the type of motorcycle you drive; whether or not you take riders with you; and even whether you belong to a riding organization.  All of these variables can make it tough for some people to decide which policy is best and to find the best premium price.

First, let’s talk about some of the things you should consider before shopping for motorcycle insurance:

Your Bike

The type of bike you drive will have the most to do with how much insurance will cost to cover it – and you.  A small or midsize commuter motorcycle could cost as little as $200 a year to ensure; while a high-powered sport racer can cost  five to ten times that much to insure. The reason is twofold: higher priced bikes cost more to repair in the event of an accident and the more power your bike has, the more likely you are to be involved in an accident in the first place.  Those two things alone can send your premiums skyrocketing.

The Coverage You Need

Another thing that can affect your bottom line when it comes to getting solid motorcycle insurance prices is the type of coverage you need.  Not every policy is equal and thus not every price is the same (or even close).  Some of the more important things to consider when determining exactly the coverage you will need are:

• Who will be riding on the bike.  If you plan on being a sole rider then your premium will be lower. Of course, if you do not buy passenger insurance coverage, then you will NEVER be able to take a passenger along for a ride. Still, for those who ride alone, getting rid of those passenger premiums can save you a few bucks.

• Whether or not you need comprehensive and collision insurance. Smaller, less expensive bikes can usually be fixed (or even replaced) much more cheaply when covering them with comprehensive collision insurance is.  Compare the cost of the two and consider what the odds are that you will need to file a claim before dropping any coverage.

• If you have a loan on the bike.  If you borrowed money to purchase that dream cycle, then you may be required to carry a full line of coverage.  See your lender for details.

• What your state laws are.  In some states every motorcycle must be insured with a standard package that includes passenger service; health coverage, and more.  Your insurance agent should be able to easily outline the coverage you must carry by law and what coverage items you can waive.

Whether or Not You Belong to Motorcycle Club or Association

Believe it or not, belonging to a certified motorcycle group like Motorcycle Safety Foundation may qualify you for insurance discounts. Be sure to check with your carrier about nay safety course discounts or organizational discounts available in your area.

Your Driving History

Another main premium component is your own driving history – and not just your cycle driving, but your complete driving history.  The better you drive, the less you will pay for any vehicle insurance – including the coverage you need for your motorcycle.  Keep claims at a minimum and don’t get any tickets for awhile and you can ask for a safe driver discount for both your motorcycle and standard car insurance policies.

Your Credit History

Many insurers are now standing by the notion that those who are responsible for paying their bills on time are also more responsible when it comes to their driving and safety habits.  Simply keeping your credit score high can help save you 10-20% on your insurance coverage.


Once you have determined the type of coverage you will need and use some of the tips listed above to trim your liability costs, it is time to begin looking for the best carrier and the best policy in the industry has to offer. When shopping around for motorcycle insurance, be sure to compare like polices, which include basically the same coverage items. Then ask about such important things as whether or not the company handles claims 24/7; what their average claim time is; and what filing a claim will do to your future premiums. Armed with this important information, you will be better able to choose the right policy and the right provider at the right price to handle you motorcycle insurance needs.

Low Car Insurance for Young Drivers

Teens are notorious for getting into fender benders.  From small dents and dings to full fledged accidents, a teen driver’s rate of auto accidents is three times higher than for someone in their early 20’s.  This, of course, causes insurance rates to skyrocket across the board, affecting even the best young driver.

While you probably won’t be able to find cut-rate insurance for your teen, you should be able to negotiate a better deal if you are willing to make a few policy adjustments and sacrifices.

First, it is important to understand why your teen drivers insurance costs are so much higher than your own.  Not only do young drivers have a much higher accident rate (with boys under the age of 25 being involved in many more accidents than even their female counterparts), but also because of their lack of experience.  Car insurance rates have the tendency to be lowered after a period of responsibility which results in no accidents over a period of time.  Since younger drivers have not had the ability establish a good track record with their insurance carrier, they will almost always be considered high risk for the first few years that they are behind the wheel.

Secondly, it is vital to understand what you can do to help lower those high young driver rates.  Not all of the options listed below will be popular with your teen, but they will help to keep some money in your wallet:

• Limit your young driver’s time behind the wheel:  by listing your young driver as an occasional river instead of a primary one on your insurance policy, you should be able to pay a bit less in premiums. Of course this means that he/she will not be able to drive as much as they may like.  Occasional drivers normally clock less than 10,000 miles per year.  Of course, the less your teenager drivers, the less chance they have of being involved in an accident, which will also help keep your rates lower.

• Buy your teen a clunker.  This serves several purposes. First, an older sedan type vehicle is cheaper to insure compared to a sportier model or SUV. Why? Because they are cheaper to fix when banged up.  Secondly, if you give your teen an old clunker to drive you probably won’t have a need for expensive collision insurance since the premium will likely cost more than to replace the car in the event of a serious accident.

• Require the completion of a driver’s safety course for your teen.  Passing any type of safe driving course can help to lower young driver rates by as much as 20%. This can be a driver’s education course offered at their school or a private safety course found in the community.

• Require at least a B-average in school.  The better your student driver’s grades, the deeper discount you can enjoy on their auto insurance. Most carriers now acknowledge that good students tend to be more responsible in all areas of their lives – including when they drive, and therefore are involved in fewer accidents.

• Insist that your teens keep friends out of the car when they are driving.  While driving alone or with just one good friend will not qualify you for an insurance rate cut, the less distractions your young driver has with friends in the car, the safer they will drive and the les accidents they will be involved in.  Fewer (or no accidents) means lower insurance rates down the line.  Every year your teen can go without an insurance claim, the cheaper their insurances premiums will become.

• Restrict cell phone use in the car. While you are at it, prohibit all cell phone use while driving.  Talking and texting have been proven to distract young drivers at a rate equal to a drunken adult driver.

• Limiting your claims. Remember, every claim you make is held against your young driver. So, if they back into your own back fence, pay for the fix out of your own pocket.

• Increase your deductible.  Sure it will cost you more if your teen is involved in an accident, but it could save you big bucks over the long haul in insurance premiums.

Insurance for young drivers can certainly break the bank if you are not careful. But following just a few of these simple strategies and you can enjoy a deep discount on your young driver auto rates.  And that won’t just save your bottom line, but their as well when they move out on their own and have to pay those insurance bills themselves.

High Performance Car Insurance

It is sleek, fast and ohhh sooo sporty. It is everything you have dreamed of since your dad handed you your first set of keys…so, you have finally purchased the car of your dreams. Congratulations!  But now you have to deal with the daily issues of owning such a wonderful car – like getting the right high performance insurance coverage.

High performance vehicles deserve more than premium gasoline and care; they deserve premium insurance coverage as well.  And, if you have financed that new car, then your lender will insist that you take out a high performance insurance policy to cover their investment.  And that, dear sports car owner can be expensive – very, very expensive.

Why the added cost for insurance for high performance vehicles? The answer is simple: they cost more to fix.  But having a high performance vehicle is not the only thing that can jack up your insurance costs.  How fast the car can go, its safety features and upgrades and your own driving habits will all be considered when rating your policy.  Here are some of the main things to consider when choosing that dream car:

The Speed of the Vehicle

How fast a high performance vehicle can go can have a tremendous impact on your insurance rates.  Statistics how those faster running cars are in more accidents and since higher speeds cause more damage, the cost of repairs can be quite pricey.  Unfortunately, those statistics will ultimately raise the cost of insuring this type of vehicle.

The Availability of Parts

Is it hard to find replacement parts for your vehicle? If so, plan on spending more for insurance. Why? Because if that car is involved in an accident and you make a claim, it is up to your insurance company to pay to find those hard-to-get parts and that search can be costly.

The Extras on Your Car

All of those bells and whistles are nice on any car – but especially a high performance car. Unfortunately they too can cost you in the long run when it comes to insuring that vehicle. The reason is simply this: the more extras that can get broken (and need fixing or replacement) due to an accident will cost you when it comes to setting a price for your insurance coverage.

Ways to Save Money on High Performance Vehicle Insurance

Of course, some high performance vehicles can also save you money on insurance under the right conditions. Here are a few ways to cut back on those high priced premiums:

• Drive your car on special occasions only.  Keeping the mileage low can save you big bucks on insurance. After all, you can not get into an accident if you are not on the road much. That does not mean you can not every drive your new car. Just keep your driving to less than 10,000 miles per year.

• Have a high quality security system installed in your car. This will keep theft at bay and can qualify you for a discount on your insurance.

• Avoid traffic violations.  Having a car that can reach top speeds may be nice, but if you are constantly getting speeding tickets, you will pay the price in higher insurance rates.  Plus, add on an accident or two and you could easily find yourself making the equivalent of that car payment in monthly insurance costs.  Obey all traffic rules and keep your record clean for the best rates.

When shopping for high performance car insurance, be sure to check all available carriers and policies for the one that best meets your needs and expectations. Look carefully at any policy you are considering to make sure the discount price you are offered truly gives you the level of coverage that you need.  Many cut rate policies cut corners when it comes to replacement values, deductibles and even some overages at all.

While you are at it, check to see what the company’s customer service and claims policies look like. Paying or high end service should also mean getting high end treatment.  Failing to offer a complete package may mean that a cheaper policy simply is not worth the money spent. Going for the gold standard instead may end up being a much better deal in the end.

Most importantly, be sure to shop around for your new high performance vehicle insurance.  Not every carrier nor every policy is equal, so choose yours carefully to ensure that you get the overage and service that you deserve for years to come.

Pros and Cons of Single Limit Liability Car Insurance

Photo Credit: CubaGallery

Single Limit Liability is a type of Insurance under Car Liability that has one fixed amount for coverage. This is contrary to Split Limit Insurance wherein there is a pre- set amount for 3 areas: Bodily Injury per Person/Bodily Injury per Accident/ Property Damage. In this article, we will discuss more about the Pros and Cons of Single Limit Liability or Combined Single Liability Insurance for your car.


Single Limit Liability is really a plus for car owners. It combines all amounts for your totaled expenses incurred in an accident. Imagine if the damage you have done will cost so much, your single limit liability insurance will take care of the bulk of amount. Unlike split liability, you will have a limit for each injury, so you will have to pay for the excess bills.


To cite an example, if you have accidentally bumped your car into someone crossing the road, you will be obliged to pay for injuries and possibly legal suits. Will your split limit liability insurance pay for all these? Since there is a limit, you will probably be insured for a couple of hundred thousand dollars. Say for instance $300,000 for bodily injury. That’s all it will pay for. The rest of the amount, you will be forced to shoulder. If you have single limit liability, you will be able to be covered for a higher amount for all damages combined, thus, reducing the risk of selling your properties and being bankrupt in the process. Single limit liability will save your assets and your reputation as well!
A piece of advice, it is also very wise to get a Car Umbrella Insurance. This will cost a little more, say 400-500 dollars in a year. But its policy limit will range from a million to 5 million dollars! It will also extend coverage to your own home, and other valuable assets and not only for your car. So you will be at peace thinking that your house and car are insured. This, on top of your Single limit liability will extend your limit to a million or so. Going back to the case of the injured pedestrian, what if he will incur close to a million dollars in damages and legal fees? This is a reality that we often dismiss easily. In the process, we lose our homes and our dignity, which could have easily been avoided for an umbrella insurance of just 500 dollars a year!


Disadvantages of Single limit are few. The first one is obviously the cost. It costs higher than Split Liability simply because it has a higher coverage. If you are in a very tight budget, this is not the policy for you. But then again, if for instance, you are on a tight budget and you meet an accident wherein multiple vehicles are involved and you are at fault, your split liability will definitely not suffice. In hindsight, wouldn’t single liability have been the best choice?


Another disadvantage is that processing of claims may be delayed because all the damages will be charged to one amount of coverage, and in the event that many vehicles are involved and many people are injured, they have to submit all claims to the insurance agency and this will take time. Overall, it is still the best choice to have Single Limit Liability Insurance for your car. 

Cheap Car Insurance for Men

Finding cheap car insurance for men is not always easy.  Statistics show that men are three times more likely to be involved in an automobile accident than their female counterparts – men under the age of 25 are at an even greater risk.  These startling statistics have caused insurance companies to take notice and action.  Today, male drivers can expect to pay far higher premium rates than other drivers on the road.

So, is it possible to find cheap car insurance for men?  Especially young men and teenagers?  The answer to that question is invariably yes. But, those lower rates may not offer the complete coverage that men need. Be sure that you understand what an individual policy offers and does not offer before signing on the dotted line.  A discount rate may not be worth the hassle should an accident occur and you need to file a claim.

When shopping for cheap car insurance, men should consider some of these cost-cutting efforts before taking on a policy with limited coverage or even dangerous gaps in important coverage:

Downsizing

Cars with more powerful engines usually cost more to insure.  That means an eight-cylinder engine will have a higher insurance rate than a four cylinder one.  The age, model and even the extra features on your vehicle can all add cost to your insurance policy. Men are notorious for choosing newer sporty “fun” cars to show off.  That is fine if you do not mind paying extra for the privilege.  If, however, you are on a quest for cheaper insurance, then you might want to consider trading it that SUV or other high-end vehicle for an older model mini-van, sedan or smaller standard vehicle that is void of all of those “extras.”

Keeping Your Record Clean

Nothing will kill am man’s insurance rate faster than a poor driving record. That includes more than accidents.  Tickets too can add dollars to your premiums.  Every speeding ticket or other vehicular infraction you get caught with is recorded and your insurance company is notified.  Just one speeding ticket or ticket for running a stop sign can add 5-20% to a man’s annual insurance rate.  Become a habitual ticket collector and you will be considered a high risk driver and pay the price for your sloppiness.  In the event you do find yourself getting a ticket, there is something you can do to help lower your rates again: take a safe drivers class.  Making the commitment to learn safer driving techniques will show your insurance company that you have learned from your mistake and they will likely rescind their rate increase after a few months.

Choosing Your Coverage Carefully

Picking and choosing the type of coverage and riders you have on your vehicle can also keep rates low.  Opt out of any non-essentials that you can (like rental coverage or even collision on older models).  Just be sure that you have the right amount of insurance to cover your expense sin an accident.  It is also important to carry the proper amount and coverage if you have a loan out on your vehicle. Check with your lender for their requirements.

Ask for Discounts

Most insurance carriers offer a myriad of discounts to policyholders; even male ones.  By utilizing all of the discounts you can, you may be able to lower your insurance rates by up to one half.  Here are just some of the most popular auto discounts being offered by the main carriers within the insurance industry:

• safe driver discount – manage to go a certain amount of time (usually 12-36 months) without filing an insurance claim and get 5-20% off your insurance bill

• auto theft protection: have an alarm installed in your car and get a break on your insurance bill

• multi-driver discount:  add another driver to your policy and see your rates shrink. Married drivers typically get an even deeper discount.

• higher deductible discount: be willing to pay a little more in the event of an accident and you can save big bucks on your annual premium

• multi-policy discount: be willing to give all of your insurance business to one carrier and you can enjoy deep discounts on them all

At first glance, it may seem as if men pay more in auto insurance than they should, and that may be true. Lucky for them, there are ways to get cheap car insurance – or at least get their rates cut for a better deal. The trick is to be a smart consumer and an even smarter (and safer0 driver.

Son Needs More Coverage

Hello There!  I am intrigued by your illustration here and I thought all this time that Car Liability Insurance is only for damaged property. My son is the one driving our car and he is only 20. I am glad I saw this information so I can add a higher limit to his insurance. I have to call his insurance company and get a higher coverage. I understand now that there are 3 limits and it includes bodily injury. Wow! That is such a relief! My son usually goes to parties and sometimes has a couple of beers when he is out with friends and that worries me so much. I think I have learned more about his insurance now. I have talked to an agent earlier and I discovered he has very low coverage. I don’t think it is enough or him. He is too young and really isn’t that responsible yet. I would not want to end up paying or all his damages when the time comes.

He is also rather accident prone so I hope he will be a little bit more careful with his driving. He has 25/50/25 coverage now and I think I will increase it to 100 /50/100. I don’t mind spending a little bit more so I will be at peace when I sleep at night and he still isn’t home from partying.

I know I still treat him like a baby but he will be 21 years old next year and I hope he will learn more responsibility on the road. I know that if ever he will meet an accident, he will really be at fault. More often than not, he texts or calls while driving. His girlfriend doesn’t help also. She also is a party girl. I hope she will be a good influence and ask him not to text while driving or drive when a couple of beers have. It is better safe than sorry. Thanks for the very useful information guys!


Infographic by LiabilityInsurance.Org