located in the "Big Easy",  ...in New Orleans, La.   1-888-456-1858 / 504-456-1858

Welcome to...............The  Learning  Center............  What do you want to know?

Return to Main Page                     Consult an Expert                 Request a Quote on....

Auto Insurance
Ten basic steps you can take to reduce cost of auto insurance

Reduce your auto insurance premiums by parking in a garage.
 

The simplest way to knock as much as 20% off your premium is to put your car in a garage, either your own or a commercial establishment. Most thieves won't try to steal a garaged car, and of course, your chances of being sideswiped are dramatically reduced. "If you regularly park on the street or a parking lot, the best I can get for you is a standard rate," says Rick Longueira, an agent at Petrocelli Group in Flushing, N.Y. "A garage can mean the difference between a preferred and a standard rate: 20%."

Reduce your auto insurance premiums by stop smoking.
 

Insurers often consider smoking a dangerous activity when it comes to driving. First off, it's an indication that you have a penchant for high-risk activity. But there's another reason contends J. Robert Hunter, director of insurance for the Consumer Federation of America. "If an ash falls in a driver's lap while they're driving, they'll be looking at their lap instead of the road," Hunter says. Several insurers, including Geico and American Express, offer discounts for nonsmoking drivers in some states.

Reduce your auto insurance premiums by spreading your risk between two cars.
 

Often, insuring more than one car with the same insurer can result in big discounts. Peter Daigle, an agent in Darien, Conn., gives the example of a pair of newlyweds he recently took on as clients. Before the wedding, the husband and wife each had their own auto policy, though both were covered by Nationwide Insurance. Daigle promptly shifted them into Nationwide's Multi-Car Discount Plan and now they're paying 20% less. "The husband was paying $1,546 a year for a Toyota Land Cruiser and the wife was paying $1,198," says Daigle. "Now, he pays $1,238 and she pays $956." Daigle notes, however, that it behooves you to ask about such discounts. Never assume the insurer will tell you about them unbidden.

Reduce your auto insurance premiums by buying a conservative car.
 

You're in the market for a new car and you've got your heart set on a 1997 Infiniti J30. Well, keep this in mind before you make your final decision: The Infiniti, along with more than 100 other cars, including the Dodge Shadow, the four-door Honda Civic and the BMW 325i, is considered by insurance companies to be easily damaged or expensive to repair, and therefore is going to cost more to insure -- as much as 15% more. And for many companies, some cars are too racy to insure at any price. AmEx usually won't write a policy for a Porsche. State Farm and Allstate both publish rankings of cars by their risk category.

Reduce your auto insurance premiums by loading up on safety equipment.
 

Insurance companies bestow big discounts on drivers of cars with some or all of the latest safety features. Some states, including Florida and New York, require discounts on collision coverage for cars equipped with antilock brakes or other safety features. Geico offers 30% off the injury-coverage premium for an airbag, and 10% off the injury-coverage premium for automatic seatbelts. A word of warning: Several recent studies indicate that, contrary to all expectations, airbags and automatic seatbelts may not significantly reduce injuries, and antilock brakes may not cut the collision rate.

Reduce your auto insurance premiums by raise your deductible.
 

When an insurance salesperson asks you how big a deductible you want, your first instinct may be to say, "The lowest possible." That way, you pay the least out of pocket if something happens to your car. But raising deductibles is one of the easiest ways to cut your bill substantially.

 

For example, Geico's premium on a 1989 Saab 9000 Turbo in suburban Connecticut goes from $915 for a $50 deductible to $709 for a $500 deductible, a savings of $206 a year. In general, increasing your deductible from $250 to $500 reduces your premium by 15% to 25%. If saving on your monthly payments is worth more to you than the possibility of high out-of-pocket expenses in case of an accident, raise your deductible.

Reduce your auto insurance premiums by take a defensive driving course.
 

Most insurance companies offer up to 10% off for drivers who volunteer to take a state-approved defensive-driving course. But before you sign up, check with your insurer. In some states, the discount applies only to drivers over age 55.

Reduce your auto insurance premiums by retiring early.
 

Did you recently mark your 55th birthday by retiring? If so, operators are standing by for your call. In the never-ending search for drivers who are mature, who don't spend too much time on the road, and who pay their premiums promptly, insurers have discovered early retirees. And they're offering big discounts to sign them up. "Young retirees are better risks," says IDS actuary Bill Kocken. "They're not in a hurry. They're stable, and they tend not to change carriers." Allstate was one of the first to offer young retirees a 10% discount, and other companies have followed suit.

Reduce your auto insurance premiums by drop some coverage.
 

If you have an old car worth less than $1,000 that you use to haul the recycling on weekends, your premiums are likely to cost more than the book value of the car. So consider dropping collision or comprehensive coverage. Since collision can account for 50% or more of the cost of your premium -- and covers only the car's replacement value -- the savings could be significant.

Reduce your auto insurance premiums by insuring your car and home through the same company.
 

Most insurers offer discounts to customers who combine their home and auto policies. AmEx not so long ago quoted a suburban New York couple a home-and-auto rate of $1,582 per year. Purchased separately, the coverage would have cost $1,686. Allstate quoted the same couple a combined annual rate of $1,733 for policies that would cost $1,792 if purchased separately. And had the couple been ticket -- and accident -- free for the past five years, they would have saved an additional $236.

Auto Insurance
Do I need medical-payments coverage?

Auto Insurance coverage typically includes medical-payments coverage and covers your medical and hospital bills (up to a certain dollar amount) if you or a passenger is injured in a car accident. You may need to purchase the coverage, even if you have a separate health-insurance plan.

Auto insurance in a no-fault state. You probably will be required to buy a minimum amount of medical payments coverage, typically called 'personal injury insurance' or 'no-fault insurance.' It covers your medical bills (and in some cases your loss of income if you are disabled) regardless of who is to blame for an accident.

Auto insurance in a 'fault' state. You are usually not required to purchase medical payments coverage, but you may want to anyway. Accidents in which no one can be proven negligent won't be covered by liability insurance, and liability insurance will not cover your own injuries in accidents that you have caused.

If you already have good health insurance, you won't necessarily need medical payments insurance to cover your own medical bills. But you may want to consider purchasing it if you often have passengers in your car.

Auto Insurance
Is it necessary to buy insurance on a rental car?

 

Q: I plan on doing a lot of traveling this summer, which will include renting a car. Should I buy the collision damage waiver, which covers theft or damage to the vehicle?

A: That usually depends on your regular auto insurance policy - and how you decide to pay for your rental.

``Whatever coverage you have on your own car, in most cases, applies when you rent a car,'' says Jeanne Salvatore, spokeswoman for the Insurance Information Institute in New York.

However, she notes that some insurance companies don't extend regular policy coverage to business rentals.

If you're paying for your car rental on a credit card, there's also a good chance that insurance coverage is provided. However, in most cases, it only applies after your primary policy, and its deductible, have been tapped.

There are other caveats.

If you have an older car and don't carry comprehensive and collision coverage, you may want to opt for that coverage from the rental company, or risk being liable for a huge bill if the rental car is damaged or stolen, Salvatore says.

She also notes that the rental car company may waive coverage if you were speeding, driving off-road or driving under the influence of drugs or alcohol when the damage to the car occurred.

Salvatore recommends contacting both your insurance agent and credit card company to see what's covered.

``Don't assume you have a lot of coverage and don't assume you have none,'' she says.

``When in doubt, take the coverage, if you haven't bothered to check all this. It is expensive, but it's not worth the risk that if you get into a really horrific accident, you could be sued for hundreds of thousands of dollars.''

The two most important forms of insurance are liability and collision.

Liability insurance generally costs $7 to $9 per day for up to $1 million coverage, according to the Insurance Information Institute. Collision damage runs between $9 and $19 per day.

If you're looking to save money, Salvatore says, consider waiving coverage for personal effects that might be stolen from or with the car. Those items typically are covered under a homeowner's or renter' s policy anyway, she notes. Such coverage usually runs $1.25 a day on a rental car.

Also, personal injury protection insurance, which would cover accident-related medical expenses for you and your passengers, can be waived if you have that coverage through your regular auto insurance policy, or even your regular healthcare plan, she says. This type of insurance typically costs $3 per day

Automobile Insurance
What can I do if my driving record prevents me from
getting an automobile insurance policy?

If you have a poor driving record, getting adequate insurance can be a difficult and expensive proposition. But you can't afford to drive without insurance, unless you're willing to lose everything you already own (and maybe even some of your future earnings) if you come out on the losing end of an auto-related lawsuit. In addition, many states make it a crime to drive without insurance protection. Many drivers with poor driving records are able to obtain insurance through state-mandated "assigned risk" programs. According to "The New Century Family Money Book" (Dell Publishing), "The insurers in your state are required to take on poor risks in proportion to how much business the companies do there. "You can also purchase auto insurance on the 'nonstandard market.' The companies that offer this sort of coverage are not always the most scrupulous, however, so investigate the reputations and financial health of the prospective insurers before buying coverage from one of them. This coverage is not cheap, but it may be better than the rates that the well-known insurance companies would charge. Paying a stiff premium, while unpleasant, probably beats having to take the bus." Your state's Department of Insurance or Department of Motor Vehicles can help you check the reputation of a nonstandard insurer or provide other advice to help you get the automobile insurance you need.

Return to Main Page                     Consult an Expert                 Request a Quote on....