Own a Low Mileage Vehicle? Learn to Get Cheap Car Insurance

Posted by centunghmp

Assuming you don't drive very much, or your family have got a second, lesser driven vehicle, or perhaps a work vehicle, - low mileage discounts are the perfecr solutions for saving on car insurance.


Ways to get cheap car insurance for a low mileage car


Pay-As-You-Go


If you have a Pay-As-You-Go insurance plan, than your premium adjusts depending on the number of miles you drive. These plans have multiple benefits: they save you money, encourage users to drive less and drive more environmentally friendly, and this therefore lowers your transportation costs. GMAC is one example of an insurance company with this type of program. These types of programs have been popular in Europe for a while, but have only recently made their way to the United States. Therefore it might be hard to find such a program, but they do exist!


MyRate Program by Progressive


Progressive Auto Insurance is a popular insurance company that provides a "MyRate program." This program gives drivers who do not drive after midnight, have a good driving history, and drive less than 10,000 miles per year a discount of up to 25% on their premiums. Progressive provides a device that you hook up to your car so that they can monitor your driving habits.


Tracking Systems


Like Progressive, OnStar also has a tracking device. Some insurance companies take your word for it on how many miles you drive during your initial quote. However, if you need to submit a claim, you may need to prove how much you drive per year. Other companies will require you to sign up for a monitoring service, such as OnStar. These types of services determine your mileage and driving habits in real-time so that discounts can be applied. OnStar has many benefits outside of insurance discounts, and may be a good option for your family.


These are only some of the options available on the market today from some of the top insurance companies. For obtaining cheap car insurance, don't hesitate to inquire what discounts are available to you is to ask! Comparison-shopping is a great way of making sure you are getting the best deal. Using the Internet is the easiest way to look around and research the type of insurance coverage you require.

More aboutOwn a Low Mileage Vehicle? Learn to Get Cheap Car Insurance

Cheap car insurance and usage-based insurance

Posted by centunghmp

It's curious how quickly an idea either takes off or dies the death. What was casually called pay-as-you-go has now become a highly competitive market. If you ever wanted proof of just how competitive, you only have to look at the court roster where you find Progressive suing State Farm and The Hartford for alleged infringement of patents. You may well throw up your hands in despair. We are used to seeing technology companies accuse each other of copying the other's patent for an on/off switch, but patents also cover any business ideas that no one has registered using those words before. So Progressive claims it registered the idea of using technology to monitor how far and how well people drive and to offer discounts to all the safest drivers. Now we have to wait for a judge to say how obvious this business plan is and that it should never have been registered as a patent. Until then, attorneys are collecting their usual high fees to fight it out to the death.

So what exactly is Progressive offering that it feels must be defended so aggressively? In most states, this insurer was the first to offer a black box for monitoring driving behaviour. The most recent version is called Snapshot. What makes this so interesting is you can run it for a one month's trial while holding your existing policy. This gives you a direct comparison and tells you exactly how much you will save if you make the switch. If you decide not to switch, there's no comeback. Progressive simply recovers the hardware link and looks for business elsewhere.

Why is usage-based insurance the best chance for inexpensive car insurance? The answer comes in two different ways. The first relates to the number of miles you drive and the time of day you drive them. The statistics show low milage drivers have the smallest numbers of accidents, particularly if you drive at off-peak times. Second we come to the way you drive. Gentle acceleration, modest braking, no violent swerving all indicate a safe driver. That earns you cheap car insurance. All the insurer has ever wanted is proof you are safe. Now technology supplies that information you can earn maximum discounts.
More aboutCheap car insurance and usage-based insurance

Drive Legally With Cheap Auto Insurance

Posted by centunghmp

The potential consequences of getting caught driving without insurance are really not worth the risk. You can temporarily lose your driving privilege if your driver's license is suspended or revoked which can impact other areas of your life. It is better to get cheap auto insurance and drive legally.


Know State Requirements


Each state has its own laws pertaining to auto insurance. You can easily learn about your state laws by visiting your state's official website. Along with the minimum requirements, penalties for violating the law are also outlined. States are strict about enforcing their auto insurance laws. One way they verify drivers are insured is to send out requests to drivers to prove they had insurance during a specific time period in the past. The state will contact your insurance company to confirm your information. If you did not have coverage, you will be penalized by having your driver's license suspended immediately.


Minimum Insurance Coverage


Although this can vary by state, the typical minimum coverage required is liability. There are two types of liability coverage: bodily injury and property damage. If you cause an accident, liability insurance will cover the medical expenses and car repairs of the other party. Your own expenses are not covered under liability insurance. And, in most cases, liability insurance will not pay for injuries to your passengers. You can be personally help responsible for costs beyond what the insurance covers.


Understand Rate Calculation


Insurance companies consider multiple factors when calculating rates. The most important risk factors include your driving record, credit score, age, and location. You may be eligible for certain discounts that can help lower your rates. New customers may get a reduction just for purchasing a policy.


Shop Around for Low Rates


If you have decided to get the minimum amount of coverage required to be legal, your best option is to shop around for cheap auto insurance. Aggregator sites offer a one-stop shopping opportunity for drivers by providing free quotes from major insurance companies. You can quickly get cheap auto insurance without the hassle of talking to insurance agents.

More aboutDrive Legally With Cheap Auto Insurance