New Parent, New Baby Discount

As a new parent there are so many things to think about and do with the most wonderful gift in life.  One thing is for sure, there will be many sleepless nights, trips to the doctor, and countless runs to the store.  The way you drive also changes and many insurance companies recognize this.  When drivers have a baby in the car, safety becomes key.  Well, who would ever think this actually could result in a discount on auto insurance? Many of the major insurance companies will offer a New Parent or New Baby Discount on your auto policy for up to 36 months.  The majority of these discounts range from 5-10% off of your policy.  It may not sound like a whole lot of money but with what kids cost today, every penny counts.  Hope this quick tip finds some new parents out there in your busy schedule and helps save a few bucks.

Mr. Quotey

Will insurance rates vary between agents in the same company?

    This is a question many agents are asked from clients looking for a better rate.  Often this question is asked because the customer may be comfortable with a specific insurance company but may not be sure if the agent is giving them all the discounts eligible to them.   Here at Mr. Quotey this also is a question asked to us regularly.  The simple answer to the question "do rates vary between agents with the same company" is NO.  With any major insurance company all agents are using the same system to generate a quote or policy for the client.  This would be like asking if the same fast food restaurant down the street offers a better price on the same hamburger? Ah... No.  If you are getting quotes from two different agents and coming out with two different prices and they are with the same company, here is what to look for in the pricing to decode the difference.

First, start with comparing the coverages between the quotes.  Often agents quote very different limits of liability even within the same company. Some may quote state minimum while others make a personal choice to quote every customer with higher limits.  Second, just ask the agent what discounts you are receiving.  Sometimes the agent has not asked enough questions to know all the discounts you might be eligible for.For example:  whether you are a homeowner, billing preference, multiple cars, and also your profession.  Refer to my earlier post of "Ten best ways to save on car insurance".  Finally, if you feel that the agent is having trouble or can't explain your rate in simple terms, simply move on to another or just use a service like Mr. Quotey to receive and review multiple quotes with one easy click.

Mr. Quotey

Ten Best ways to save on car insurance

I want to shop for car insurance but I need some tips on how to save money.  Can you tell me what I should know when shopping?

Here are 10 Real tips to saving on car insurance!
Sure we all have heard of ways to save money on car insurance, but I decided to give 10 real ways to help.
Whether or not you are shopping for car insurance or just want to save money at your current company, here are some tips that can really help!

TIP 1: Get a quote with auto and home together
If you don’t own a home, get a quote with a renters policy.  Many major companies are now offering discounts up to 25% off the auto and home when you write them on the same day.  By adding a life insurance policy you could save even another 5% to 10%. As for renters, you can get discounts 10% to 15% off of your auto.

TIP 2: Ask about discounts for your profession
Insurance companies across the board offer discounts for particular occupations that they feel are a better risk to insure. You can save as much as 10%. If your profession is not offered a discount from the company your working with, check with your employer about insurance companies that do.

TIP 3: Bill paying discounts
When you find a company that you want, there are two big ways to save simply by the way that you pay.  Paying in full can give you a 12% discount and electronic withdraw if you pay monthly can offer 10% off the premium.

TIP 4: Deductible Rewards
If you carry full coverage, companies offer many different deductibles and some carry deductible reductions or rewards for every year you drive without an accident. For example, if you carry a $500 deductible and drove five years with no accidents then in the sixth year you had an accident, you would not have to pay a deductible to repair your car.  Be sure that the companies offering this are not charging you any extra…many do! If they do don’t pay for it!

TIP 5: Carrying high limits of liability could actually save you money
If you are shopping for a new company, often they will give a customer more of a discount if you have carried high limits of liability (this is your BIPD coverage) at your previous company. This means that you could be paying the same amount for higher limits which protect you and your family as the customer only carrying state minimums
.
TIP 6: No Claims = Cash Back
There are a few companies currently offering 25% of your annual premium paid back to you if you carry auto and home and stay claim free for three years. This is a great feature.  Don’t file a claim and receive a check back every year!!!

TIP 7: Annual Review
Review you policy with your agent at least once a year or simple call your company to see if they have any policy features or deductible changes that may save you some cash.  Insurance companies are coming out with so many new products to attracted new customers, sometimes they forget about their current clients. Don’t  be shy to call.

TIP 8: Know your credit score!!!
Insurance companies know that the worse your credit is, the more likely you are to have a claim or an accident. This can cause your rate to be as much as 50% higher!!! Yes insurance companies use this to determine your rate in many states. If you are married find out who has better credit and list them as the first one on your insurance policy or as head of household
.
TIP 9: Be aware of cars that may cause higher insurance rates
Some vehicles have higher insurance rates due to who is buying them.  Entry level cars often have higher insurance rates because many people who buy those cars are younger. Insurance companies tend to have more claims filed from younger, under 25. Let’s be clear we all know what kind of car Grandma drives and it is not what the young crowd wants to drive.

TIP 10: Use an online quoting service
Use one at least once a year to receive quotes from multiple companies.  Remember it costs you nothing to quote your insurance. Some companies will offer a 5% discount to use a future effective date. Simple if you tell them that you want to start your policy at least a week out - ask them if that will get you the discount.

Beware!
Beware of a few things…Companies now are offering huge discounts to write new customers for auto and home.  Many of these discounts fall off after the policy renews.  Ask the agent or the company if these discounts will stay on after the policy renews.
Hope this helps and stay tuned.
Mr. Quotey

Do I need full coverage insurance?

I paid off my car…Do I still need full coverage insurance?

Many people ask this every day.  Full coverage is commonly referred as carrying comprehensive and collision.  The response depends on how fast you paid off your car, how old is your car, did you buy it new or used, what is your car worth, and can you replace your car if it gets stolen?  If you bought your car new and paid it off within the average term 36-72months I would say do not drop full coverage.  The type of car definitely matters.  If you have a 7 year old family sedan with 100k miles on it, then probably no.  If you have only a 3 year old diesel crew cab pickup then probably yes.  Simply based on what it would cost to replace each one of these can be only a few thousand for the family sedan, but the truck might still cost you tens of thousands to replace. It really should be a simple process to figure out.
Step 1: Look at pricing guides for your vehicle to determine what it is worth.
Step 2: Find out how much full coverage costs.  If it is only costing you a few hundred to carry full coverage a year and your car is still worth more then $5,000, I would.  If not and you need to save some cash, you can also raise the deductible to still have the coverage but reduce the cost of insurance.  You can always just roll the dice and just drive with liability only.  Keep bringing your questions and we will do all we can to help.


Mr. Q

Should I carry state minimum coverage?

Should I carry state minimum coverage?

Well this question is presented to us all of the time.
The simple answer is NO!
The concept behind paying for insurance is that in the case of an accident, the insurance company will pay for any property damage and any medical injury you cause to others in the accident, but not injuries to yourself.  By selecting state minimum coverages you are putting your assets and personal liability at risk.  Why you might ask?  Well if you select your state’s minimum coverages and you were to get into a serious accident, the insurance company will only pay up to the amount of coverage you selected.    You do not want to have to pay for any claim out of your own pocket that is why you are paying for insurance in the first place.  What if I don’t have any asset other then my beat up old car?  In some states if you are found at fault in an accident, your future wages can be garnished..
 Whether you drive an old beat up car or a flashy new sports car, do yourself a favor and try to buy higher limits of liability whenever possible. Twice the coverage is not twice the price. It may only cost a few dollars more per month to carry at least twice the minimum state amount. Ask your insurance company what the cost is for state minimum and then see what the cost is for more coverage.  You might be surprised at how little it costs to significantly increase the protection on your assets.  Stay tuned for more Q and A from Mr. Q

What is liability insurance?

What is liability insurance? 

    Well, I get this question all the time. When it comes to auto insurance no one ever seems to slow the customer down for a minute and explain the basics of auto insurance.  So here I go: First, your liability insurance is the amount of coverage that you have on your policy to cover damages for the other vehicle and their passengers. This coverage only comes into effect when you are at fault for an accident.  If you are in a single car accident, like hitting a tree, this coverage will not apply. When you look at how the coverages are listed, you will see three different numbers grouped together.  Such as 25/50/25. To understand these numbers let’s break them down.  The first number is the amount of coverage for bodily injury per person.  The second number is for bodily injury per accident.  The third number is the amount of coverage for property damage.  This will include damages to other vehicles and real property like a house, wall, street lights, etc.  So let’s remember that liability coverage is only going to cover damages you cause to another vehicle and the bodily injury for passengers.

Mr. Q

What is the cheapest car to insure?

What is the cheapest car to insure?

This could possibly be one of the most frequently asked questions.  Many people assume smaller and cheaper automobiles will be less to insure.  Well this may not always be the case.  The consumer also may think that all insurance companies have the same rates for the same types of cars or trucks.   Well this definitely is not true.  Mr. Quotey is here to help for just this sort of question.  No matter which car or truck  you drive, the rate for insurance can vary greatly from one company to the next.  Why, you might ask.  From a consumer stand point it's logical to think that major insurance companies would have very similar pricing for similar cars and trucks.  So back to the question.  For insurance companies, the rate on a particular vehicle can come from what type of safety equipment the vehicle has, such as ABS, traction control, air bags, and theft deterrent systems. Many entry level vehicles do not come with all of these safety features and insurance companies can place different values on these type of features. Another major factor that most of us never think about is what sort of age group is typically driving a paticular type of car. Insurance companies rates vary based on this type of data.  For example a Mercury Grand Marquis has been known to be one of the cheapest cars to insure for years.  Why would this be?  Well lets think about it - first who drives a Grand Marquis?  My Grandparents might be a popular answer, as I know mine do. Another big factor can also be the chance of theft.  Grand Marquis typically are not known for being stolen. Grandma is not going to be racing from the light or putting performance parts on her car.  Grandma is more likely to park the car in the garage at night, where a youthful driver may have it parked outside an apartment.  With a large number of drivers all in the same age group driving similar types of cars, this can affect the rate on those cars.  This is also why some entry level cars and trucks can carry higher rates than the bigger and more expensive models. Liability rates can come from who is driving those particular types of cars.  Next time you find yourself shopping for a new car, remember Grandma's car may not be the coolest on the road but it may be the coolest on the wallet when that insurance payment is due.

Mr. Q