Cheap Auto Insurance

cheap auto insurance in oregon

Cheap Auto Insurance

How to Save Money with Cheap Auto Insurance

There is a very good chance that you are — this very moment — paying too much for your auto insurance. There is an even better chance that you could get a better rate, from another insurance company, than you could from your existing insurer.

So why not take an hour or so and review your policy for potential savings? Or, if youre fed up with the high insurance rates from your current insurer, shop around for a new company with cheap auto insurance.

The Internet has created increasing competition between auto insurance companies. It is easier than ever for consumers to shop for cheap auto insurance, to analyze coverage and compare premiums. Still, studies have shown that people don shop around for insurance in the same way they might shop for a new car. Also, people tend to stay with the same auto insurance company for years. Why not prove these studies wrong? Put the power of the Net to work for you and save money in the process.

You can find cheap auto insurance in five ways:

1.  Make sure you get all discounts you qualify for.

2.  Keep your driver record clean and up-to-date.

3.  Adjust your coverage to assume more risk.

4.  Drive a low profile car equipped with certain money-saving safety features.

5.  Shop around for a good, low cost insurance provider.

First, let look at the discounts you might qualify for. Discounts fall into a number of categories:

Low-risk occupations, Professional organizations, Combined coverage, Discounts for safety features,  More risk assumed by driver, and Discounts for senior citizens.

Low-Risk Occupations

Insurance is a numbers game. Adjustors collect information about what types of people get into accidents. Over the years they see a trend. Drivers that work as engineers tend to get into fewer accidents. Why? It would be fun to speculate about the reasons (pocket protectors — need we say more?) but the insurance companies don really care about that. All they know is that, in fact, engineers are a low risk. Since there is less chance that they will wrap their cars around the trunk of a tree, they charge engineers less for insurance. Simple.

But you say you are a teacher instead of an engineer? You might still be in luck. There may be discounts for teachers. You never know unless you ask — and unless you shop around. Not all insurance companies are the same.  You will also find discounts for doctors, police officers, fire fighters and scientists.

Professional Organizations and Auto Clubs

Have you ever been about to pay $100 for a hotel room, only to discover that a AAA discount saves you 15 percent? Now youre paying $85 and feeling proud of yourself. It similar in the insurance business. Affiliation with AAA — and certain other professional organizations — will get you cheap auto insurance. You should check with your employer to see if there are any group insurance rates. At the same time try checking directly with the insurance company representative when you inquire about the cost of policies.

Combined and Renewal Discounts

A big source of savings is to insure your cars with the same company that insures your house. Make sure you ask if combined coverage is available. This will lower your payments on your car insurance and make your homeowner policy cheaper too.

It also important to make sure you are getting a renewal discount that many car insurance companies offer. This is a discount given to people who have been with the same insurance company for an extended period of time. If you have carried insurance with a company for several years, and not had an accident, your insurance company likes you. Think about it. You paid them a lot of money and they didn have to do anything except send you bills and cash your checks. True, they were ready to do something if you got in an accident. But you didn get into an accident so theyre happy and want to continue their relationship with you. A renewal discount is a good incentive to urge you to return. And it a good reason for you to stay with them.

Discounts for Auto Safety Features

Auto safety features will also lower your payments. Heading the list of money saving safety features is antilock brakes. Certain states encourage drivers to buy cars with antilock brakes by requiring insurers to give discounts. Check to see if you live in such a state, or if the insurance company you are considering gives a discount for this feature. Automatic seat belts and airbags are also frequently rewarded with insurance discounts.

Assume More Risk

Two powerful ways to get cheap auto insurance is to assume a higher risk. This is done in two ways. The most dramatic reduction can be realized by dropping your collision insurance on an older car. If the car is worth less than $2,000, youll probably spend more insuring it than it is worth. The whole idea of driving an older car is to save money, so why not get what is coming to you?

Another way to redesign your policy — and save money in the process — is to ask for a higher deductible. The deductible is the amount of money you have to pay before your insurance company begins paying the rest. In other words, you pay for the little dings and bumps and let your insurance company pay for the heavy hits.

For example, a common deductible amount is $500. This means if an accident youre in causes $1,500 worth of damage, you pay $500 and the insurance company pays $1,000. You could, however, set your deductible to $1,000. This still covers you against heavy losses, but it may decrease your monthly premium by as much as 30 percent.

As a final note, if you are being strangled by high insurance costs, keep this in mind when you go car shopping next time. The more expensive and higher-performance the car is, the higher the premium will be. This is particularly true of cars that are frequently stolen, or are expensive to repair. The insurance company keeps this in mind when setting its insurance rates for this vehicle. Shop for a low-profile car and get your kicks in other ways. Youll love the cheap auto insurance and savings youll see in your bank account.

How Much Cheap Auto Insurance Do You Need?

A growing number of people are dropping their auto insurance to try to save money, according to a recent study by the Insurance Research Council (IRC). If the current rate of unemployment continues, the IRC estimates that the national uninsured rate will climb from 13.8 percent in 2007 to 16.3 percent in 2010. With that many people driving without coverage, it dangerous to be uninsured. But how much auto insurance do you really need?

If youre like many people feeling the pinch, your inclination is to get the bare minimum of insurance coverage required by the law in your state. That a good place to start, though those minimums may not fully protect you or your assets if you file a claim. We recommend getting more than the minimum coverage unless you are driving a beater and have no assets to protect.

Every state in the nation, except for New Hampshire and Wisconsin, requires that you have liability insurance, and that mandatory coverage varies according to state.

The state of Oregon requires 25,000/50,000/20,000 as the minimum liability property damage limits.  This means you get $25,000 per person, and up to $50,000 per accident for your liability coverage, with $20,000 towards property damage coverage.

Personal Injury Protection (PIP), or Medical Payments (MedPay) in some states, pays for your own medical expenses, any lost wages and whatever other costs may arise when youre injured in an accident. It usually pays about 80 percent of your losses, and it also pays a death benefit. PIP is required in the state Oregon.

Some states also require you to purchase cheap auto insurance that will cover your own medical expenses, pain and suffering losses and, in some states, car damage in the event that the other motorist is at fault and is either uninsured or underinsured.

Even though each state has minimum (or no) requirements for bodily injury liability, it is probably in your best interest to purchase higher limits. If someone else is injured and youre at fault, the minimum liability coverage may not cover their medical expenses, in which case their attorney will most likely come after your assets. It is generally recommended that you purchase 100/300 limits of bodily injury liability. On the other hand, if your personal assets don amount to much, you don have a whole lot for them to bother about, so the minimum requirements might actually suit you and will help you get cheap auto insurance.

Besides various forms of liability insurance, there is collision and comprehensive auto insurance coverage to consider. Collision covers damage to the policyholder car resulting from running into anything, be it another car, a fire hydrant, or a light post. Comprehensive coverage takes care of your car in the case of theft, fire, falling objects, explosions, or other unexpected problems.

Collision and comprehensive coverage are required in most lease contracts, and are essential if you own an expensive car. If youre driving an old beater, on the other hand, and the sum of your premium and your deductible are close to or exceed the worth of your vehicle, you might want to consider doing without this coverage.  Another way to get cheap auto insurance.

Before you purchase any type of auto insurance coverage, be sure to study your other insurance policies so you don end up paying for something you don need. If you have a decent health insurance plan, you might get away with purchasing the bare minimum personal injury protection coverage- or none at all if your state doesn’t require it. However, you might end up paying a co-pay and deductible that wouldn apply if you had PIP.

Uninsured or underinsured motorist coverage might also be a wise buy, even if you have full medical coverage, as it can pay for your pain and suffering damages. If you belong to an organization that offers roadside assistance, you don need to purchase that through your insurer. The same thing applies for mechanical breakdown insurance if you own a newly financed or leased vehicle which is still covered under warranty.

It easy to be resentful of the money spent on insurance. Keep in mind that cheap auto insurance will most likely come to your rescue at some point, so it imperative to purchase a worthwhile policy. Know what coverage you must have and know what additional coverage fits your lifestyle. Then if trouble strikes, youll be ready.

To find cheap auto insurance, complete the short quote form above and receive auto insurance quotes from the top Oregon auto insurance carriers.  Choose the one that is right for you.  You could save hundreds!

This entry was posted on Sunday, May 9th, 2010 at 8:07 pm and is filed under Oregon Auto Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response. or trackback from your own site.

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cheap auto insurance in oregon