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How to Budget Your Car and Home Insurance
Things have been good really for you and you have two new cars, a nice home, but an uncertain paycheck because, of today’s economic problems. You are now in the process of budgeting your car and home insurance by searching the Internet in an attempt to buy car insurance online. You have recently noticed that the insurance company that provides your auto insurance now has been gradually raising their premiums that you have to pay each month. What you’re needing now is more affordable car insurance that will still give you all the protection you need, but reduce your monthly premiums.
Unlike home insurance, your automobile insurance quotes are based upon several important risk factors.
- The number of claims that you have had in the past
- Many times upon your credit rating responsibility
- The number of claims that the insurance company has had to pay out
- The assets and size of the insurance financial pool everyone shares in
Let’s look at each of these so we can gain a better understanding of how we can lower the cost of every-ones insurance especially for our cars and homes. Of course the most logical and important aspect of owning an automobile and driving it on our busy highways is to never have an accident in the first place. This can be difficult sometimes with our congested roadways and with automobiles moving along side of one another just inches apart. Some insurance companies have what is known as a forgiveness claim. Other words they will allow you according to your driving record 1 or 2 accidents before raising your premiums.
Another important aspect is your credit rating. Your credit rating is a reflection of your responsibility and short notations of your past present improvements in responsibility. Therefore many insurance companies will pull your record and if they ensure you; will place you in a specific category according to what they feel your monthly premiums should be. You must understand that insurance companies are private businesses that collect premiums and place them in a pool which is used to cover any claims and expenses that the company receives and also maintains a profit to operate. This is a sharing process in which everyone who contributes to the pool have their cars and their home, (if you have a homeowners insurance) insured in case of any losses.
When an insurance company has a number of claims due to careless accidents that deplete that pool then they have to raise premiums for everyone and attempt to eliminate those careless drivers who have
caused and filed the most insurance claims. This is true for both automobile insurance and home owners insurance. When insurance companies do not have a large number of claims over a specified period of time and the pool remains filled they can then reimburse their customers and lower their monthly premiums.
Laws enacted by Congress force all iinsurance companies to balance out their assets, the financial pool, and the number of customers they have any insured in any specific region or area. Having car insurance coverage is not only a very important responsibility, but it is also required by law in most states. The basic insurance that the law requires is designed to help protect other people from those who are uninsured. For the person who maintains a responsible lifestyle they easily understand the importance of automobile insurance coverage to replace their own car and have it repaired when damaged. You also protect other people’s property and yourself from a law suite that your automobile may have created from damage.
Before the law required everyone to have automobile insurance, uninsured drivers in many states could hit your car and damage it, then walk away, and your insurance company had to pick up the repairs. That is totally unfair. This in return not only caused the responsible person to have to pay their deductible out of their own pocket, but also the insurance company would have to deplete the pool and pass it on to everyone that they insured. Many people don’t realize that if an uninsured person hits your car and damages it and then refuses to pay for the repairs, that in many states you have the right to call the state highway patrol and have that individuals license taken away until they compensate for the damages they have caused you.
Back in 1983 a young man who was speeding and ran a red light and was uninsured when he hit my wife in the rear quarter panel of our car at a lighted intersection causing an estimated $3,000 worth of damage. Luckily she was not seriously injured, but shook up badly. He was given a ticket for running a red light and speeding. When we attempted to request he pay for the damages to our automobile he vulgarly told us to jump off a bridge. In the state of Missouri it is just a matter of simply contacted the state Highway Patrol and they will confiscate their drivers license and license plates. The next time we heard from the young man, he had a totally different attitude and agreed to sign a contract to make payments until the body shop was paid in full. It took him a year of walking, but we released him and he received his license back.
Remember, responsible driving is the key to lower insurance. You can get a car insurance on line quote much easier today than ever before without having to telephone 100 different insurance companies. Car insurance prices are based upon the number of responsible drivers they have in their pool. You can get a quick car insurance estimate by using a quote wizard and providing a few simple answers about your car, your credit rating, your responsibility, and the type of insurance that you desire. Some people just want basic insurance to cover other people’s property as the law requires. Others want full coverage including liability and deductible which not only covers damages to other people’s property, but provides for losses and repairs to their own automobile.
Although home insurance does not carry the same risks as automobile insurance. The amount you pay can vary from insurance provider to insurance provider with a savings of anywhere between 10% up to 40% which can help you meet your budget for your car and home insurance. The best method of getting a cheap insurance quote is using your computer and using a computer quote wizard that can search hundreds of insurance companies finding you the best and cheapest car insurance online. So before calling several telephone numbers try getting safe online insurance quotes first.