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You could be paying too much for your car insurance without realising it!
Many people buy covers that they never use.
Do you know all the risks that your car insurance policy covers you for? If you don’t, it is highly likely that you are being charged for some elements of cover that are either inappropriate for your circumstances or are for risks that you are unlikely to ever claim on.
Most motor insurance policies, especially the standardised ones that you are offered at car insurance price comparison websites, are packaged and will include a broad range of risks, each element of which is rated separately and added into the premium.
For example, an offer of free windscreen glass repair on all comprehensive policies will have a rate that is already incorporated into the policy price.
Likewise will the offer of a free courtesy car if you are unfortunate enough to be involved in an accident and claim. Each driver risk and car risk has its price in the calculation of the overall charge to you the consumer.
Each element of a policy is also a potential payment for covers you don’t require. It is essential that you consider each risk element before falling for the marketing ploys of the car insurance companies and buying insurance. For example you could be buying unnecessary breakdown cover on a new car.
Before you start spending hours online comparing motor insurance quotes, it is a useful and financially rewarding exercise to think about and note down the exact cover that you need.
When comparing car insurance covers you are then in a position to see the cover that you don’t need! This will save you a lot of time avoiding those companies, that will charge you irrespective of whether you need the cover.
You should honestly consider exactly how you have used the car in the previous period of insurance. An example of usage is the annual mileage you declare when getting a quote.
If you have only driven 3000 miles in the last year and you have bought a standardised policy that covers you for the default 12000 miles, then you are without doubt paying too much for your cover and should inform your Insurer of this at renewal or consider switching to a limited mileage policy.
This is particularly applicable if you are a young driver looking for cheaper cover who needs to build up no claims years and driving experience. By limiting the amount of miles you drive each year it is possible to build up a good no claims bonus and enjoy cheap premiums.
Similarly this applies to drivers who own expensive or classic cars which are garaged for the majority of the time. If you are not insured under a limited mileage policy then you will be paying more than you should for your insurance.
When applying for quotes try to give as much information as possible that accurately reflects your lifestyle as these are the elements you will be charged for. Unfortunately most car insurance price comparison sites offer standardised risk policies that do not include the discounts available for lifestyle usage to which you may be entitled.
For this reason you will need to approach a specialist car insurer or broker who has these types of motor schemes and polices for sale and can in most cases provide tailored cheaper cover for the way that you use your car.
To find a motor insurance specialist that is the best for your circumstances and will save you money, you will need to search on the Internet by characteristics of your risk type, as this is how most specialist insurance companies offer their policies. For example if you are female and drive a classic car a few thousand miles a year at weekends because you live in a city, then search for lady classic car limited mileage schemes, which should return you a list of specialist insurers in your area.
It is essential that you find a specialist car insurance company if you own an unusual or rare car such as a high performance sports car or a classic. Don’t be tempted to use a mainstream insurance company or a price comparison site. Classic car insurance policies are specifically designed to let you choose the elements of risk you require such as limited mileage, but more importantly allow you cover your car on an agreed valuation basis as opposed to the current market value. This means you’ll actually get back what its really worth if you make a total loss claim.
When most people think about insurance, they probably think that it is a way for insurers to make money out of people’s fear, but this is an inaccurate notion. If anything, it is the policyholders that make the most from insurance benefits, and insurers are just there to ensure that you make the commitment to protect yourself. There are numerous benefits that you stand to gain by having yourself covered, and it is almost impossible to exhaust them.
The most obvious benefit that you get from having an insurance cover is that you are financially in a position to deal with any unexpected event. Whether death or an accident or a medical condition, insurance benefits ensure that you are able to deal with any eventuality, at least as far as the financial costs incurred are concerned. It is also a way to protect the loved ones who are dependent on you financially, ensuring that poverty is never a threat to their livelihood.
Unexpected disasters can be a serious threat to your well-being, and this has been witnessed the world over. This is not only relevant to families, but to businesses as well, which are prone to lose in the thousands and even in the millions as a result of unfortunate events such as natural disasters. For this reason, it is critical that businesses also have insurance benefits, so that even if they are closed down, they are still in a position to pick up the pieces and get back in business, especially in keeping with holding the economy.
Another benefit of insurance is that it acts as a long-term investment. This is especially so for life insurance, which is meant to cover you during all your life stages. Life insurance as a long-term investment can be used for your children’s education, provide for you in your old age and even allow you to build your dream home. Life insurance is actually considered the safest form of long-term investment, since insurers are highly regulated, which means that they are only allowed to invest your money in the most risk-free and profitable income earning ventures.
Insurance not only provides for the protection of assets, but also the protection of your way of life. For this reason, it is important that there be a change in attitude, especially for those who assume that benefits are only relevant to the insurer.
Tommy Mayer has been providing helpful information about benefits of life insurance. He suggest going to the website if you want to know the further details for the different types of insurance benefits.
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