Get an Affordable Auto Insurance Coverage for Seniors

Your car is one of your most valuable assets. It is also one of the most dangerous, in terms of the harm it can cause. An accident, particularly if it's your fault, can put a dent -- or worse -- in your financial security. For most people, insurance is a mystery. They know they should have insurance for their automobiles (most states require it), but they don't understand the various coverage's in the policy. And they don't know which insurance companies offer the best -- the best! -- prices. Because they don't understand the product, many people think insurance is a rip-off, and it is -- if you pay too much or buy coverage you don't need.

All auto insurance is not created equal. In fact, almost none of it is. There are thousands of different products out there, from hundreds of insurance companies. How do you find the insurance and the insurance company that are best for you? Because Auto Insurance Quotes has researched the insurance needs of automobile owners and their families, we have decided to dedicate ourselves to solving for you some of the mysteries of auto insurance.

Six Coverage's in One Policy

First, let's look at the typical auto policy. It is not just one kind of insurance, but six different coverage's all rolled into one policy. Here is a quick overview of the six kinds of coverage in an auto insurance policy. Please understand that what follows here is not legal definitions of any policy. Also, it is not a substitute for reading and understanding your own policy. 

1. Bodily Injury Liability -- It pays the medical and other expenses of those people injured or even killed in accidents you cause. 
2. Property Damage Liability -- It covers the damage your car causes to property. Usually, that's the other car or cars involved in the accident, but it also covers damage you do to any object you hit. Garages, buildings, lampposts, fences, whatever. 
3. Collision -- This is for damage done to your car when it collides with other vehicles or other objects. 
4. Comprehensive -- This covers damage to your car that results from something other than a collision with another vehicle. As examples, damages caused by vandals or a wind-blown tree hitting your car. It also includes coverage for theft. 
5. Medical Payments -- It pays medical, and even funeral expernses, for you as well as members of your family and passengers in your car if it is involved in a collision, regardless of who caused the accident. It also covers you as a pedestrian if a vehicle hits you. 
6. Uninsured/Underinsured Motorist -- This pays for injuries to you and damage to your car if you are hit by a driver who doesn't have insurance -- or by someone who doesn't have enough insurance to cover your losses. In most states, more than 10% of motorist don't have nay insurance. In some states, as many as three in 10 drivers don't have coverage. Many of those who do have insurance don't have enough to cover the damages and injuries that would result in a major collision. 

10 Ways to Save Money

Now that you know the basics of an auto insurance policy, here are 10 ways you can pay less. In many cases, you can get the same level of coverage for fewer dollars.

1. One Insurer, Multiple Policies -- Do you have a homeowners or renters insurance policy? If so, is it with the same insurance company that provides your auto insurance? If the answer's no, you're paying too much -- for both policies. Almost every insurance company that sells auto insurance wants its policyholders to also buy homeowners or renters insurance from that company. These insurers offer so-called multi-policy discounts. Usually, these discounts are at least 10% -- and some insurers apply the discounts to both the auto and the homeowners/renters policy. 
2. Good Driver, Good Price? -- It's no secret that the better your driving record, the less you will pay for auto insurance. But did you know that most people qualify as "good drivers" and are eligible for discounted premiums? Some good drivers pay a lot more than others; however, many auto insurers are actually a collection of several insurance companies that each cater to a certain type of driver. The worst drivers go in one company, the best in another, and a lot of people wind up in one of the middle companies. These middle poeple pay less than the worst drivers, but more than the best. The thing is, many of these middle people have driving records that are just as good as good as those who are in the companies that offer the lowest rates. Yet, they are paying more. Why? The usual reason is that they don't know any better. No one thold them which insurance company in the gorpu had the best prices. And, probably, no one told them there was even a group of insurance companies. If you have a spotless driving record, there's no reason you shouldn't be paying the lowest price a group of insurance companies has to offer. 
3. The Beauty of the Bus (or Other Mass Transit) -- Do you drive to and from work? If you do, you are literally paying a premium to do so. Insurance companies charge you significantly higher premiums if you drive to work. And, the longer your commute (in miles, not minutes), the higher the premium. Consider mass transit. Yes, there's a price there, too. But you will reap the savings of gas and lower insurance costs. 
4. Low Mileage, Low Price -- On average, people drive 1,000 to 1,250 miles a month. That is what insurance companies consider average use. If you drive less than that, you could be eligible for low-mileage discounts, which some insurers offer. 
5. High Profile, High-Cost -- The type of car you drive is a major factor in what you pay for insurance. Is your vehicle a magnet for thieves? Is it more expensive to repair than most cars? If the answer to either of the last two questions is yes, you're paying more than the average car owner for insurance. To get detailed information on your vehicle(s) - or a vehicle you're thinking of buying - write to the Insurance Institute for Highway Safety at 1005 North Glebe Rd., Arlington, VA 22201 and ask for the "Highway Loss Data Chart." 
6. Raise Your Deductible -- The deductible is the amount you pay before insurance kicks in if you have a cliam. For example, if you have a $250 deductible and you have an accident in which your car sustains $1,000 in damage, you pay the first $250 and your insurer pays the balance, $750. The higher the deductible you choose, the less you pay. If you have assets, you can probably afford to absorb at least $250 and probably $500 if you have a claim. And, if it's been years since you've had an accident, you're probably better off raising your dedutible and paying less each year for insurance. (Please note that the deductible does not apply to damage caused in accidents that are not your fault, except when the other driver doesn’t have insurance. In that case, the deductible on your Uninsured/Underinsured Motorist coverage applies. However, if the other driver has insurance, you get "first-dollar" coverage for you damages.) 
7. Drop Unnecessary Coverage -- Let's say you have an older car, one not worth very much. There’s really little point in having collision and comprehensive coverage. You don’t have much to protect. Remember, too, that you have to subtract your deductible from any potential payout you might get. As a general rule, any car worth less than $1,000 shouldn’t have collision and comprehensive coverage. Between the deductible and the extra expense of these coverage’s, the cost is probably greater than the benefit. How much is your car worth? An auto dealer can tell you, or there are plenty of books that have values of vehicles going back many, many years. 
8. Discounts, Discounts, Discounts -- Auto insurance companies offer several discounts for a variety of reasons. The car has automatic seat beats, air bags, anti-lock brakes, anti-theft devices, etc. The driver is a good student, which is especially valuable if you have teenage children who will be on your policy. Are you taking advantage of all the discounts available to you? This is a question I can answer easily. 
9. Taking the Defensive -- Many insurance companies also offer discounts to those who have taken defensive driving courses recently. 
10. Low-Cost and High-Cost Areas -- Are you planning to move? If you are, you should take into account the cost of insurance. Generally, the more urban the area, the higher the premium. The costs can vary even within a community. And they can really vary from state to state. If you’re living in New Jersey, Massachusetts or Hawaii, you’re paying several times more, on average, than you would in North Dakota, South Dakota or Idaho. 

Is Your Coverage Adequate?

We won’t kid you. There’s more to this insurance game than saving money. In fact, while it’s nice to lower your insurance costs, it’s probably even more important to make sure you, your loved ones and your assets are covered adequately. It’s not a pleasant thought, but insurance is about worst-case scenarios. It’s also about peace of mind -- knowing that you have the worst-case scenarios covered. 

Three Steps to Protection

There are three basic steps you can take to protect your and your family’s financial well being:

1. Have an insurance specialist conduct a risk analysis of your car, home and family. How can you adequately address your risks with insurance if you don’t even know what these risks are? I’ve found that most people face more risk than they know. Because everyone is different, it’s not like you can ask a friend or relative to assess your insurance needs unless they are insiders in this business. If you haven’t had your risks assessed by an insurance professional, you could be inviting financial disaster. You need a professional, a knowledgeable insurance insider, to put together a comprehensive insurance plan that truly protects you. 
2. Use an independent agent, There are several ways auto insurance is sold in this country. Some people buy it by calling a toll-free number and talking to an employee of an insurance company. Others take advantage of direct mail offers. And some buy from agents who represent just one insurance company. A direct mail piece is not going to be able to assess your level of risk. Do you really want an insurance company employee to be your agent? And what happens if the agent who represents just one company doesn’t have the kind of insurance coverage you need? You need someone who’s going to work for you. And you need someone who can offer you several options. Someone who can go to numerous insurance companies and compare their products and prices. Someone who, if necessary, can place parts of your insurance program with more than one company. Do you want a good price? Do you want options and flexibility? And do you want protection against worst-case scenarios? There’s only one option here: Use an independent agent. 
3. Don’t trust the financial protection of you, your family and your assets to an insurance agent who is not an auto insurance specialist. A specialist? Absolutely. Look, insurance is a huge industry. There’s insurance for everything. And nobody can specialize in all of it. In fact, a professional independent agent can specialize in only a few niches -- and really understand them.