Car Insurance Comparison

Telling a Good Car Insurance Policy from a Bad One

Jonathan — Wed, 01 Sep 2010 11:45:48 +0000

Let’s say you’ve done exactly what the guides have suggested and obtained a number of quotes for a car insurance policy. The numbers, while not as cheap as you would have liked, still appear quite reasonable. You look up more information and are told to “carefully compare and analyze the quotes”. What do you do then? There are car insurance policies that are well worth their price, and those that make you regret the day you bought them. The two can be identified with careful scrutiny and comparison.

Providing Unrealistic Quotes

An insurance provider would request some personal information when you request a car insurance quote. Providing these details as accurately as possible will yield quotes that are closer to the actual premiums you will wind up paying. While it’s tempting to just go with the lowest quote in these belt-tightening times, you should be wary of an extremely cheap quote.

As the saying goes, you get what you pay for, and paying dirt-cheap prices for car insurance will most probably get you the barest minimum insurance coverage. While this may seem worthwhile in the beginning, it’s likely you’ll face undue hassle if or when the time comes when you need to make a claim.

The insurance provider may also have other means of making up the “loss” for charging cheap premiums as well, and tack on an absurd amount of “administrative fees” that you never bargained for. On the other hand, premiums that are too high or a policy that is too expensive indicates that you have more insurance than needed.

Coverage Doesn’t Match Your Needs

The premium you pay varies with the type of insurance you opt for. For some people, the bare of third party insurance will do just fine, while others want nothing less than comprehensive coverage.

It’s the duty of an insurance provider to provide a quote that meets the criteria you specify. Not doing so indicates a lackadaisical attitude towards (potential) customer satisfaction. When this happens, you can consider it a sign that the policy and, by extension, the company in question may be less than ideal to deal with should you need to file a claim.

Demographic-Discordant Coverage

Why do you have to provide information like your age, gender and address when you’re looking for car insurance quotes? Insurance providers do this in order to come up with a quote that most accurately reflects the risk a driver poses to the company.

Car insurance policies don’t reward the impetuosity of youth, nor can you expect a cheap premium if you drive a brand new, high-end car. Male drivers usually face higher insurance premiums than female drivers do. The more densely populated the area in which you live, the likelier the chance of receiving a more expensive insurance policy as well.

The opposite of all these attributes is usually true: older drivers pay lower premiums, as are those who drive older or more “conservative” vehicles. An environmentally friendly hybrid car might also get you a better policy and offset the amount spent buying it, as does a clean driving record.

If you receive a quote for a policy that takes none of these factors into account, then move on to the next quote and company. It may not even be worth the effort to get a representative on the phone to clarify the quote.

Lack of Clarity for Excess and Premium Charges

You might wonder how “excess” relates to the policy. Car insurance excess is a pre-defined amount that a policyholder can choose to contribute in the event of a claim. In general, there are three types of excess:

Standard driver excess: The amount varies with your address and its population size and the person driving the car. Some insurers may waive this if the claim was due to the other driver’s error.

Age excess: Applies to drivers under 24 years of age and 25 year olds with less than two years’ driving experience. In general, the younger the driver, the higher the excess.

Non-nominated driver excess: Applied when you make a claim for a driver not mentioned in the policy. Not all insurers may apply this excess, which makes reading the fine print especially important.

Most of the time, a higher excess can be contributed if you wish to pay a lower premium. This means that the policyholder agrees to bear a larger financial cost in the event of a claim. Any claims exceeding the excess is covered by the premium.

If a policy only highlights a low premium and doesn’t provide details on the excess payable, then you might find yourself paying a lot out of pocket if you make a claim that isn’t covered by the premium you pay.

Word Of Mouth

If you’re still unable to glean any insight from comparing the quotes you have, you might find some answers if you ask friends and family about theirs. Compare the policies you have with the ones that are most similar to yours in order to obtain the best results. It may not be the perfect method, but it certainly helps determine which policy is the best for you.

It might sound like a lot of trouble to identify whether a particular car insurance policy is “good” or “bad”, but you have to remember that no measure is too complicated when it comes to making the most out of your money.

The Car Loan Survival Guide

Jonathan — Sun, 15 Aug 2010 11:21:10 +0000

It’s often a wise financial decision to buy a newer car, with a factory warranty, rather than shelling out cash for an older car. An older car may cost you big in the long run, when you pay more for:

Unscheduled parts and repairs
Gas on a car with worse gas mileage than a newer model
Insurance, on a car with fewer safety features.

That’s not to mention the peace of mind that comes from having a newer vehicle and knowing it will get you where you need to go with no drama.

Most people don’t have thousands of dollars tucked away in a savings account to buy a new vehicle, so it’s a choice of spending cash for something they can afford (and dealing with all the headaches an older car brings) or taking out a car loan.

A car loan is not the end of the world, however, especially if you don’t have a lot of other debt. Keep these factors in mind when you shop around for both the car of your dreams and the loan to pay for it.

Watch your debt-to-income ratio

Your debt-to-income ratio is just that – the ratio of your minimum monthly payments on all your debt, not counting your mortgage, compared to your income. Experts recommend a debt-to-income ratio no higher than 20% — 15% is even better. If a car loan would put you over that magic number, it could jeopardize your chances to get a mortgage, home equity loan or other credit. It also means paying higher interest rates on new credit cards and loans. This number can help you decide what car you can afford.

What kind of loan?

Secured loans provide lower interest rates because you are offering up the car as collateral. Unsecured loans may have higher interest rates, but you can forego collision or gap cover on the car, if you desire. Finally, secured personal loans may offer even lower interest rates than a secured car loan. The only way to find out is to shop around.

Negotiate on the price of the car, not your payments

Many people learn this lesson the hard way, when they tell the car dealer the monthly payment they can afford and – almost magically – the car they want ends up costing them exactly that much. First negotiate on the price of the car to get the best deal you can. Then negotiate on the interest rate for the loan. If you don’t like the interest rate or terms the car dealer offers, shop around to your own bank, as well as other banks and credit unions.

Make up the difference with a down payment

“No money down” deals sound great – until you realize how much more you’ll pay in interest over the life of the loan. If you are without a car payment now, set aside what you would pay for a car loan for a few months and use the savings as a down payment. Not only will you get a better idea of what your budget can afford, you’ll cut a nice chunk of principle – and the resulting interest – out of a loan.

Lease or Loan?

A car loan is not always the best choice. If you fit the following criteria, a lease may be the wiser decision. You are a good candidate for a lease if you:

Drive a limited number of miles per year.
Plan to get a new car every two to five years.
Have excellent credit.
Treat your car well… keeps it clean and well-maintained.
Can’t afford the monthly loan payment to get the car you want.

See? Surviving a car loan is not very hard. Once you sign on the dotted line, you’ll be able to drive away in a reliable, fuel-efficient late model vehicle. What could be better than that? Don’t forget to shop around for the best deal!

The Australian Car Insurance Comparison Guide

Jonathan — Sun, 01 Aug 2010 10:57:12 +0000

There’s a wide range of car insurance options in Australia, which is impressive for a country of its size. It’s easy to become overwhelmed given the number of companies offering “the best”, “the cheapest” or “the best and cheapest” car insurance, but there are 7 things you need to consider before you commit to one particular insurer.

What kind of insurance are you looking for?

Compulsory third party insurance: Known as Greenslip Insurance, this is the most basic form of car insurance for an Australian driver and is compulsory for Australian-registered cars. While it doesn’t cover damage to the policyholder’s car or cars and property of others, it does cover personal injuries of crash victims.

Third party property insurance: This pays for any damage you cause to another person’s car or property. However, it doesn’t cover the cost of repairs for your own vehicle. Third party fire or theft insurance, an extension of third party insurance, insures you against the loss of your car through theft or fire.

Comprehensive insurance policy: This combines all of the above. As such, if yours and another person’s car are damaged through your own negligence, your insurance policy will extend to cover repairs for both parties.

Can you buy the policy online?

An insurance company that allows you to sign up for car insurance online has a distinct edge over one that doesn’t. Online insurance policies, usually paid for by credit card, are more affordable due to the reduction of processing fees. It’s also very convenient for the buyer as it can be done at any hour or any day of the week. You’re also likely to make fewer mistakes on the application form because you can take your time in filling it out, and there is less or no pressure for you to complete as compared to completing one over the phone.

Consider a multi-policy deal

Many insurance companies provide insurance for the home, travel and health in addition to car insurance. In many cases, insurance companies may offer a more favourable rate to customers who purchase more than one type of insurance from them.

What’s your demographic?

Did you know that the cost of car insurance premiums can vary based on where you live? Premiums can differ even further based on your address within the state itself as well. Varied intra-state car insurance premiums are mainly down to the risk an insurance company perceives you and your car to be.

Therefore, the higher the risk of your vehicle encountering an accident or being stolen, the higher the premiums you have to pay. For instance, residents of New South Wales, which has a high population density, pay the highest car insurance premiums of any state.

Age and gender too, are parameters that need to be considered when comparing car insurance. Young men are perceived to be more of an insurance risk, and this is reflected in their insurance premiums. Additionally, the owner of a newer, more expensive car is likely to pay higher insurance premiums based on the risk such a vehicle poses for the insurance company.

Discounts are for the asking

Sometimes, people compare car insurance when they’re thinking of switching to another insurance company. In this case, a person has nothing to lose by asking their current insurer if they’re able to match or surpass a cheaper quote from another company. Revisiting the terms of your present car insurance policy may also allow negotiation of better terms for you; there may be discounted premiums for drivers above 25 years of age. Tailoring your car insurance policy to match your personal requirements can make it even more affordable.

Look beyond the bottom dollar

A cheap insurance quote is very attractive. However, when comparing quotes from different insurance companies, you need to ensure that the policies themselves are similar too to prevent comparing apples and oranges. By scrutinizing policies closely, you won’t wind up paying less but receiving inferior or limited insurance coverage from Insurer A, as opposed to paying Insurer B slightly more in return for more benefits and security.

One of the first things a person looks at when comparing car insurance is the premium paid. At first glance, a cheaper premium is certainly tempting. Having extra cash available is always welcome. Yet, is an annual difference of $200 really such a bargain if, in the event of a write off, the insurance company deems your car worth less than you expected?

You need to ensure that the bottom value an insurance company quotes for your car isn’t too far away from your car’s actual worth. If the terms of the policy are otherwise in your favour, obtaining an “agreed value” policy is your best bet so that replacing your car won’t be such a financial burden in the event of a write off and if the company undervalues it.

Point-for-point comparison of different policies

There are sure to be similarities when you compare the basic policies of most major car insurers. A consumer needs to look at the cost of the policy and any extra benefits that particular insurer provides and ask about them if they’re not immediately obvious. For instance, comprehensive car insurance may entitle you to a hire car if your car needs repairs, until a claim is paid, or your car recovered (if it was stolen). Different insurers also have varying conditions pertaining to no-claim bonus and excess payable.

Different insurers offer different hire car periods that may also vary based on the premium you pay. Additionally, the time it takes to process a claim may take longer (months) than the period to which you’re entitled the hire car (days). Additionally, the maximum value insured for items inside the car that are damaged or stolen may vary between companies.

In the event car repairs are needed, most insurance companies have workshops authorized to carry out the necessary repairs. Some people, though, may be more comfortable appointing a mechanic of their own or who can finish the job more quickly. Aside from determining if this option is available to you, be sure to determine who bears the cost of transporting the car to the garage and if roadside assistance is provided.

Moving? Expect your Premiums to Move Too!

Jonathan — Thu, 15 Jul 2010 11:29:42 +0000

A number of different factors affects your car insurance premiums. Some of these factors are fairly well known by most people, while others will come as somewhat of a shock.

Some of these factors are:

The numbers of miles you drive
Your car’s engine size
The brand of car your driving
Your age and gender
Your marital status

What most people don’t realize that where you live influences the price of car insurance as well. If, for example many car thefts occur in your city or suburb, this can greatly impact on the cost of your premiums. Additionally an area that has a high incidence of auto accidents will also have higher insurance rates.

Rural vs. Suburban living

Living in an urban setting or the suburbs may not make much of a difference. There may well be accident free areas in larger cities; however, it is a fact that suburban areas can have a higher incident of car crashes. Some intersections seem to have an unusual number of wrecks. On the other hand, moving to an area that has fewer accidents can cause your car insurance rates to decrease.
High risk areas
Not all insurance areas have the same number of claims in every area. While one company may have more of its drivers involved in accidents and file claims, another may not. Don’t be too surprised if your insurance rates increase when you move, even if you have not changed cars. Perhaps your current insurance company has had a large number of claims. If you experience this, it might be time to obtain quotes from other insurance companies. It sometimes happens that a company that advertises that it saves customers a lot of money, is actually one of the most expensive in some areas.
Not happy? Shop around!
You really should look for a better deal if you find your car insurance simply too expensive to maintain. There is quite a bit of competition in the car insurance market, and you will find it easy to obtain a quote from as many companies as you would like. The rule of thumb is to get at least three quotes before deciding on any one company. It is worth it to take extra time if you want to save some money. For one thing, you might discover that you can get a competitive rate from your company.

My Insurance Premiums went up! What gives?

Jonathan — Thu, 01 Jul 2010 08:45:35 +0000

Drivers who are responsible are proud of their faultless driving records. If you are the type of person who drives carefully, and defensively, you have likely never been involved in a car accident. However, you have noticed your car insurance rate has recently climbed, considerably. Calling your insurance company would be the best first step to take. You can find out if there have been any changes to justify the rate increase, by asking questions. It is possible that the insurance company has received information that could have an effect on your car insurance rates. Although you have not been involved in an accident, you should find out why your rates may have gone up.

A new car means new premiums

Your rates may go up if you have purchased a newer car. Even though they tend to be more reliable, the fact is that a newer car is more costly to repair after an accident. Taking out a loan to finance a new car will also cause the rates to increase, as most insurance companies require full coverage on a car that is financed. If your old car was not financed, and you only carried minimal coverage, this will seem like a large jump in price.

The term “actuary’ is probably unfamiliar to most people, but you might want to look it up when you see your new insurance bill. An actuary is a statistician who determines the premiums you will pay for your car insurance. To do this, the actuary studies data on a number of different factors such as the ages of drivers, conditions of various roads and highways, varieties of cars on the road, information concerning accidents, and many other things that may not seem important to the average person.

The actuary will calculate these data and come up with an insurance industry wide standard of pricing. If you live in an area that an actuary has determined should pay a higher rate, you have little choice, even if you have never had an accident, or a traffic ticket. Make certain your information is current when you get in touch with your insurance company.

You now have a bit more information that might have led to your increased rates. It is up to you to determine if you want to change your insurance company.

An Introductory Guide to Classic Car Insurance

Jonathan — Tue, 15 Jun 2010 08:53:37 +0000

One of the more challenging types of policies to purchase is one to cover a Classic Car. Agents are often unable to assess accurately the value of a classic car, and may offer an incorrect policy, or one that doesn’t cover the car completely. It might be more difficult to find a local agent who understands classic car insurance. However, seeking this type of insurance online might be a better choice, even though this option presents its own challenges. Finding the correct overage for a classic car online requires one to follow some important steps.

Get your paperwork in order

You will need to put all your documents for the classic car together. This would include all receipts for the original purchase of the classic car, as well as any repair parts your may have bought, repairs or restoration costs. If you have replaced any of the cars’ original parts, make a list. It is also important to note if any replacement parts were original or aftermarket. Make note of the VIN number of the car, (it may not have one) the mileage, and what type of engine is in the car. Additionally, is it the original engine or have you replaced it. It would be helpful if you have any original documentation from when the car was purchased.

Use a scanner to make a digital copy of all the car documents. The best format to use is .PDF. If the papers have information that could be used to steal your identity, such as your address, social security number, or your birth date, this information should be blacked out.

Use a digital camera to take detailed photos of the automobile. You should take several shots from all angles, inside and out. If the car has any distinctive characteristics, make certain to get photos of those as well.

Get an appraisal on the car from a reputable appraiser.Making a comparison of the latest sales of similar cars would be useful. Make sure to include information about the appraised auto, and scan this information.

Look around for the best quotes

Get online quotes from several different sources. Whenever possible include the documentation you have scanned into digital form.

Most insurance agencies will give you a 6-month cost estimate for insuring your classic car. Some online insurance companies will actually have information available from several different companies, and e able to give you multiple quotes. There is often a deadline as to how long the quote will be viable. You will need to accept or reject the quote by this date.

When obtaining your quotes, request an “actual cash value” policy. The maximum amount in this type of policy is considered the actual cash value to replace the car. Many classic cars actually increase in value, rather than depreciate as modern cars do. Therefore, the current appraisal value is the amount you should request. Make sure you keep the appraisal current when you renew your policy, as this is necessary to get the correct value in a claim.

If the company offers you a “stated amount” policy, think carefully before accepting it. In this type of policy, a maximum amount is set that the company will not go beyond. In other words, if your car is stolen and the value has gone higher than the stated amount on the policy, you will only recover the market value for the car, not the actual cash value. Conversely, if the actual value is less than the maximum amount, you will receive the lesser of the two.The premiums on an actual cash value policy are generally less expensive, and offer you better coverage in the end.

Get a quote from at least one local insurance agent, and compare that to your online quotes. Compare all the features, such as deductibles, coverage type, and any exclusions to the coverage.

Review your Car Insurance Policy and Save!

Jonathan — Tue, 01 Jun 2010 08:25:31 +0000

If you wish to avoid paying too much, it is important to evaluate your car insurance policy from time to time. Car insurance companies charge customers enough to make a profit. After all, they are in business for this purpose. However, this does not endear these companies to the average consumer. Shopping around might just net you a better car insurance rate.

As your life circumstances change, so should your premiums

You can also save money on your car insurance by taking advantages of discounts your company might offer due to changes in your life. If you have changed vehicles, or moved to a different location, it is up to you to update your information. Therefore, inspecting your insurance policy at least once a year is a good idea. However, every six months would be even better.

Evaluating your driving patterns is a good place to start when reassessing your insurance policy. Have your rates gone up due to a traffic ticket, or an accident? Your premiums will very likely increase, based upon the number of claims you may have filed. On the other hand, you should contact your insurance representative to inquire after a lower rate, if you have had a consistently safe driving record.

Driving less in a year is another factor to consider when reviewing your policy. Many people have taken to driving less with the state of the economy. If this applies to you, it is up to the insurance company to determine how much of a discount they will offer you. Each insurance company sets this amount differently.

Shop around for the best rates

You may also want to get periodic rate quotes from competing companies, to see if you can do better. A good place to begin this comparison is on the websites of different insurance companies. Be sure to give the companies accurate information about your driving record, (notably if you have had any accidents or tickets in the two previous years, or filed any claims) and compare the rates from your current company with those of others. Make certain you are comparing the rates for the same coverage you have now. A lower rate from a competing company might give you the advantage in seeking a better rate from your present company.

Car insurance rates change frequently, so a general re-evaluation of you policy is suggested by car insurance experts. The car insurance industry is very competitive with government incentives and the economic atmosphere. With a small amount of effort on your part, you can find a more amenable car insurance rate, when it is time to renew your policy. Look for less expensive rates, by first reviewing your policy.

Bingle

Jonathan — Fri, 21 May 2010 06:22:51 +0000

Bingle is Australia’s answer to cheaper, online car insurance.

Bingle makes comprehensive car insurance really simple – you buy and manage your policy online, which cuts out significant business costs so you get a really good deal.

We’re not talking chicken feed either, you could save hundreds just by switching to Bingle.

Bingle car insurance still comes with the things you need to feel well protected, including :

* Flexibility to choose your car’s value
* Lifetime guarantee on repairs
* Cover for damage your car might cause – up to $20 million
* Towing costs

Plus, Bingle is backed by one of Australia’s biggest and most trusted insurers.

So, if you’re a good driver and you’re sick of paying unnecessarily high insurance costs, try Bingle.

It’s cheaper car insurance by computer.

Get a quote and see how much you can save with Bingle Car Insurance!

Bingle.com.au Pty Ltd is an authorised representative of Australian Associated Motor Insurers Ltd (AAMI). Refer to the PDS at bingle.com.au

Bingle.com Pty Ltd is an authorised representative of Australian Associated Motor Insurers Ltd (AAMI), who is the issuer of this product. Refer to the PDS at bingle.com.au. Average premium savings are based on the average savings on premiums for Bingle comprehensive car insurance customers during November and December 2009, compared with premiums charged by their previous comprehensive insurers.

What You Need To Know About Getting Car Finance

Jonathan — Sat, 15 May 2010 08:15:57 +0000

Purchasing a car is one of the largest financial decisions that most people make during a lifetime; often, only the purchase of a home is larger. With this in mind, it is apparent that financing the purchase of a car is a very important decision to make. Luckily, the consumer has a variety of financial options.

The first, and cheapest, way to purchase a car is by paying cash. However, most people simply cannot afford to spend that much cash at once. Another popular option is to lease a car; the purchaser makes payments for a certain period of time and essentially “rents” the car for that time period. However, those who want to own the car for its lifetime, but cannot afford to pay cash, often choose to obtain car finance.

Common Contract Terms

When discussing car finance, it is important to understand they key factors which will determine how much you pay for the car and how good of a deal you get. A car finance contract will have very similar terms to other financing and loan contracts: for example,

Length of Contract: The overall cost of the car finance contract will depend largely on the length of the payment period. By shortening the payment period, you may be able to save thousands of dollars in interest over the length of the contract period.

Interest Rate: One other important factor when determining the overall cost of a car loan is the interest rate. You can save money by finding a lender that offers the loan at a lower rate; even a few fractions of a percentage point will make a difference.

Down Payment: A significant down payment can help reduce the overall cost of borrowing. By paying as much money as you can up front, you won’t have to borrow as much, and you will save on the interest charges.

Fees and Penalties: Many finance contracts will include different fees and penalties in the “fine print.” Be wary of anything hidden that could substantially increase the cost of the loan, such as hidden processing fees and penalties for prepayment of the loan.

Tips For Saving Money

While the specifics of the terms of the car loan will depend on how much the financing costs, there are many ways to increase the chances of getting a better deal. Some of these tips include:

Initially pay down as much as you can in cash
Look for alternatives to taking out a loan
Shop around for the best rates and plans
Maintain a clean credit record

Totaling The Costs

The financing of a car is one of the most important aspects of car shopping. Again, one can choose to pay for the car in cash, lease it, or finance the car with a loan. The best way to save money on a car finance loan is to shop around and compare the contract terms from different lenders. However, you can also save money by doing simple things such as paying down a lot of cash and avoiding hidden penalty fees.

Buying a Car with Insurance Premiums in Mind

Jonathan — Sat, 01 May 2010 07:39:05 +0000

Optimal protection in an accident is just one reason to purchase a safe car. Your car insurance rates will be lower by owning one as well. What should you look for in a safe car so you can qualify for these lower rates?

Newer is usually better

Newer cars tend to have more safety features. If you have the means, you might want to start there. Some of these characteristics include keyless locks, shoulder harnesses, airbags, and car alarms. You will be better off with having more of these safety features included as original equipment. Most insurance companies will offer you substantial discounts for these features. However, you can always talk to your car insurance agent about adding some of these features later, and you should get your premiums re-adjusted for doing so.

Fast cars equals high premiums

Four door cars are better for safety than two door models, and you should look for one when shopping for a car. The younger crowd might consider four door cars less than exciting, but in an accident, these cars are usually safer. Two door cars generally boast higher horsepower engines, and can be considered sports cars, meaning higher premiums. You need as many discounts as you can find when insuring a teenage driver, since teens are generally higher risk, and rates are higher for them.

Cars that have been used in businesses, as rental cars, and have higher mileage are unlikely to be qualified as a particularly safe car. You should be cautious when buying a car that falls into the above categories, however there are always exceptions. Be aware however, that these cars are often not well maintained, and have often been driven excessively.

Think like a car thief

How easy and attractive is your new car going to be to potential thieves? This will strongly affect your premiums. A car that is popular among car thieves will often have a high performance engine, and will not necessarily be considered safe. Cars that are dependable, don’t stall, and run when you need them to are obviously going to attract cheaper premiums. Also be aware that your insurance rates can go up if you are driving an unsafe car and it causes you to have an accident.

Shop smart

You have to be satisfied with the car you buy at the end of the day, and there will obviously be budget constraints that impact your purchase. However, you can get discounts on your insurance if you get what providers consider a ’safe’ car – namely, one that is likely to be reliable and not driven in a ‘risky’ fashion – which means that high performance and modified cars will cost you. Some cars will garner you more discounts than others will.

If you are already shopping for a car, but are already considering some insurance companies, look into the different discounts offered. This way you can get the biggest discount on your insurance, find the safest car, and, and still be happy.