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How To Buy Car Insurance & Avoid Scams

Reviews auto insurance sites Comparison Market, Allstate, GEICO and Progressive Auto Insurance
Glossary of car insurance coverage to help you decide which car insurance to buy
Guide to online auto insurance sites to compare rates and get free car insurance quotes
How to get your driving record, discounts that you may qualify for
Insurance sales scams to watch out for

According to Progressive Auto Insurance, here is the breakdown of reasons that cars are stolen in the U.S.: 55% were unlocked, 34% left the windows open, 6% left keys in the car!

Driving around without car insurance is illegal in most states
Do not drive around without auto insurance, it is illegal. In fact, most auto insurance companies will not insure you if you are currently uninsured. They won't even give you a quote. This is why it is important that you never let your car insurance coverage lapse. Allstate and GEICO are probably the only companies who will still give you car insurance coverage if you are currently uninsured.

Always shop around for the lowest car insurance rates
Note: Unfortunately, if you don't currently have car insurance, you won't be able to use Comparison Market, in this case, try GEICO instead. Comparison Market gives you a better way to shop for auto insurance. Instantly compare accurate rates from America's top insurance companies, including Travelers, The Hartford, Liberty Mutual, Safeco and others. Comparison Market allows you to:

Shop for your car insurance easily, making apples-to-apples comparisons
Save money on your auto insurance
Receive accurate, real-time auto insurance quotes
Make an informed choice

Don't fall into the gap!
If you owe more on your car than it is worth, if you lease, or if you put down less than 20%, you should get Gap Coverage from Gapinsurancequotes.com. Most people refer to it commonly as "gap insurance". Don't even bother buying it from dealers, they charge $500-$700 when you can get it online directly from Gapinsurancequotes.com for less than 1/2 the car dealers. If you owe $20,000 on your car, but it's only worth $16,000, you're upside down. You total the car, or it's stolen, your insurance company gives you $16,000. You must still come up with $4000 to pay off the bank, plus your $500 deductible! Gap coverage protects you against this. The better ones cover up to $500 of your deductible.

Why you must get a copy of your driving record
I highly suggest you get a copy of your drivers license record BEFORE shopping for insurance. Many of us have errors in our driving report that drive up our auto insurance rates. I once paid a traffic ticket and attended driving school, but they never credited my driving record! How did I find out? Allstate canned me! That's not the way you want to find an error on your driving record. In the newspaper, a clerk of the court admitted they had a 20% error rate, and shrugged it off as normal. So lucky 20% me had my license suspended by mistake. Don't let this happen to you! Trust me, you don't want to go through what I did to fix it. If you go to driving school or pay fines, keep the receipt in your wallet for 3 years or until you renew your license! If you get pulled over by the police, it's your only salvation from being arrested for driving with a suspended license. Just like your credit history determines your car loan approval, your driving record determines how expensive your auto insurance will be.

VIN# Window Etching can Lower Your Insurance Premiums up to 15%
If the car dealer say it's already on the car and can't be removed, don't buy the car and save yourself $300-$900. You can get your own VIN etching kit cheaper online. VIN etching kits are about $19.95. Remember, lenders don't require you to buy useless extras. The only thing a lender requires you to do is pay back the loan.

Don't Forget To Budget In Auto Insurance And Warranties!
Don't overlook this important part of car buying, you'll be in for a shock later. Get a quote on the car you want, and most important of all, shop around! For discount car buying you'll see our recommendations for sites like InvoiceDealers, Cars.com, Yahoo!Autos, Autos.com, Edmunds.com, MyRide.com and CarsDirect , but don't just stop there, what about insurance? There's some good sites that help you find great deals on car insurance with insurance rate comparison engines. You'll be surprised how much some new cars cost to insure. Some cars are very difficult to insure. Years ago State Farm only insured my Trans AM GTA if I had an alarm and a garage. Insurers require a garage for Corvettes. Know your insurance costs before you buy a car, and plan your monthly budget accordingly to accommodate the insurance. A lot of people drop the ball on this one. Depending on where you live, you could pay $1400 a year for insurance on a new car. This is an average of $116 per month. This is where people make a big mistake, forgetting to include insurance in their budget. If you're buying a car on the hairy edge of what you can afford, insurance payments will drag you under. Insurance payments are part of your monthly cost of ownership.

While you're shopping for insurance, here's a few online sites that give you free quotes online. To get the most accurate pricing, be very accurate about the info you enter. Also, try to enter the exact same coverage you desire from each online site you visit, to get a true apples to apples comparison. These sites will give you quotes to compare before making your final decision. Get quotes from as many sites as possible to get your best price, then when you are ready to buy, call the company you chose and verify the price with them. When you decide to buy insurance, don't think you can be smart and neglect to tell them you had a speeding ticket last year. They'll find out when they check your driving record after you apply, even all your out of state tickets, and your rates will increase accordingly.

Online Sites To Get Car Insurance Quotes
Just enter the make and model, and answer a few questions. Seconds later the price quotes and comparisons to competing companies appears online.

If you don't currently have car insurance, you won't be able to use Comparison Market, in this case, try Allstate and GEICO instead.

Comparison Market Save up to $600 or more on auto insurance with many of America's top insurance companies. Answer just one set of questions and instantly receive accurate quotes. Choose the best policy and buy online or over the phone.

Click Here to Visit Comparison Market Today!

The Allstate Corporation is the nation’s largest publicly held personal lines insurer. A Fortune 100 company, with $156.4 billion in assets. Allstate is known for unique programs such as Accident Forgiveness which helps keep your rates from going up just because of an accident. Even if it's your fault!

AA rating from Standard and Poor’s
Aa2 from Moody’s
A+ from A. M. Best

Click Here to Visit Allstate Today!

GEICO is the largest direct writer of private passenger auto insurance in the US. In 1996, GEICO became a subsidiary of Berkshire Hathaway. GEICO/Berkshire Hathaway and its affiliates (GEICO General, GEICO Indemnity and GEICO Casualty) enjoy the highest ratings in the industry for financial strength and claims-paying ability:

AAA rating from Standard and Poor’s
Aaa from Moody’s
A++ from A. M. Best

Click Here to Visit GEICO Today!

Progressive Auto Insurance gives you a free instant rate comparison against State Farm and Allstate. This comparison is a great tool for car insurance. They even insist you to shop around, and they save your quote so you can come back later to look at it again. Progressive Auto Insurance is the 4th largest insurance company in the U.S.

AA+ rating from Standard and Poor’s
Aa2 from Moody’s
A+ from A. M. Best

Click Here to visit Progressive Auto Insurance Today!

For extended warranties, get a free online quote for your new or used car from sites such as Warranty Direct. I talk much more about them in detail in Extended Warranty Section. You want to get an online warranty quote before you go to the dealer, so you'll have something to compare the dealer's extended warranty price with.

Bad Credit Causes You To Pay More For Insurance
Many insurance companies run credit checks on you before the application is signed. Some online companies bypass this by allowing you to supply a self reported credit rating from a pull down menu. The reason for the credit checks is that there is a higher underwriting risk not only in terms your ability to make payments and keep policies in force, but the higher claims/loss ratios of folks with bad credit. A 40 year old man with a couple of late payments and no tickets, accidents or major violations might very well qualify for a preferred policy.

If you're in a wreck, ask for "Diminished Value" compensation
Insurance companies don't like to talk about it but some will pay you what is called "Diminished Value" as part of your claim. It can be very difficult to get, they may deny it exists, but people have been known to collect. Diminished value compensates you for the loss of market value your car suffers after an accident. If you wreck your Honda Accord and then have it repaired, your car is worth less when you go to sell it because no one wants a previously wrecked car. Because if this, some insurance companies will pay you for this loss of value incurred by the accident. Ask your car insurance company if they provide this for you.

Avoid Insurance rip-offs!
Florida is the insurance rip-off capital of the world. Be wary of cheapie insurance agencies with stupid TV or radio ads claiming to be the lowest price. When I was young and stupid, I went through 10 insurance companies in 5 years, because they all low balled me. A month after signing, you get a letter saying your policy is $200 more due to a "Company Rate Error". This is known in the insurance industry as "Low Balling". It happens all the time, and it happened to me 4 different times until I wised up and started to deal with classier companies like State Farm and Travelers. Your state legislators do nothing to stop these low balling losers, so the only way to protect yourself is to stay away from them, and their stupid free coupon and film developing vouchers that they hand out to you to make it look like you're getting something for your money. The ones I got were expired. Once I became business savvy, I discovered the best way to evaluate an insurance company is its A.M. Best rating, which tells you its ability to payoff. The more A's in the rating the better their ability to pay off. Many little companies go under, and what good was a cheaper policy if they can't pay off? Always ask a company what their rating is, and look for it in writing to back it up. I try to only buy insurance from companies with "A" ratings. You can also go with "B" ratings, but I would go no lower than that. One last tip, stay away from the sleazy little insurance offices that try to make it look like they are "THE Tag Agency". They care more about reeling you in under the pretense of handling the paperwork for your license. My wife used one to get her car title and they went out of business after they took her money. If you need your tag or title, get it from the source, the real tag agency.

Types Of Insurance Coverage
Insurance is very confusing, and if you don't understand what the different types of coverage mean, you could be leaving yourself financially exposed. I always tell people to get as much insurance as you can afford, to make sure you are covered for anything that comes along. If you get in even the smallest of wrecks and damage your front right quarter panel, and take out a fancy sealed beam headlight, that repair could cost over $1000, and over one week in car rental fees. So choosing the right coverage is essential. If you finance a car through a bank or car dealer, the lender usually requires some sort of full coverage. They do verify it with the insurance company and if you fall short of their limits or take out no coverage at all, they will buy it for you and send you a bill for an unbelievably jacked up amount for insurance. This could be up to $4000, nearly 3 times the normal amount that most of us pay, so make sure your car is insured. Most car dealers won't allow the car to be driven off the lot without calling it into the insurance company and setting it up first. Your current insurance may cover you, but you must tell your insurance company immediately that you bought a new car to ensure you have coverage. Here's a list of the common types of coverage:

Glossary of car insurance coverage

Bodily Injury and Liability Insurance
This insurance protects you from claims made against you which you are obligated to pay if you cause bodily injury to someone in a crash. This also covers your defense costs. Bodily Injury Liability limits usually specify 2 dollar amounts, the first amount limiting payments to a single person per accident and the second amount puts a cap on the total amount of payment for all persons injured per accident.

Collision Insurance
Collision coverage pays for the damage to your vehicle by collision with another vehicle or fixed objects like trees, signs, buildings, etc. This coverage is what gets invoked when the accident is your fault.

Comprehensive Coverage Insurance
This is your "fire and theft coverage, and covers damage to your car for anything other than a wreck, like tornados, floods, vandalism, theft, hitting a deer, etc.

Car Rental
If your vehicle is in the shop for more than a day for repairs resulting from an insurance claim, Many policies with this coverage will pay $15 or more per day for usually up to 30 days, or some maximum value to rent a car while you wait for repairs. Higher limits are available.

Full Glass
In many states, there is no deductible on windshields, because it's against state law to drive with a damaged windshield. But for the rest of your windows, you still have to pay your comprehensive deductible before they'll pay for any broken glass. You can pay more for Full Glass coverage to eliminate any deductibles for broken glass. Some companies give you full glass at no extra charge as a selling feature.

Medical Coverage
Covers medical expenses from your crash injuries and covered persons in your car, no matter who was at fault.

No-Fault, Personal Injury Protection (PIP)
In most no-fault states, PIP covers medical and rehab, work loss, funerals, and other expenses incurred by you, your family, passengers in your vehicle, and pedestrians injured by your vehicle. Not every state has this coverage, and it pays for damages regardless of who is at fault in the accident. That's why they call it no-fault.

Liability Coverage
Similar to Bodily Injury coverage. Liability covers only the damage caused by you to someone's property, car, fence, lawn, telephone pole, house, etc. When you are at fault in a wreck, this coverage is invoked when the other driver makes a claim against your insurance to repair their car.

Towing
If your car breaks down, this coverage will pay for a tow truck or roadside assistance to get your car going again. This usually pays about $50-$75.

Underinsured or Uninsured Motorist
One of my personal favorites. I think EVERYONE should have this coverage, because it protects us from all the loser morons out there who refuse to insure their cars. Here in Florida, uninsured drivers is worse than a problem, it's a plague. I know so many people who got burnt royally because of uninsured drivers. In Florida you have to show proof of insurance to renew your tags. But many people just take out a policy, send in proof to the state, then let the policy lapse after a month, and then the policy gets canceled. If I was king, the insurance companies would notify the state, who would then send a tow truck to impound these losers' cars, and they don't get them back until they renew the insurance, and pay the towing fees on top of that. Underinsured Motorist pays for your injuries up to the policy limit when the other driver either has no insurance, or their lame coverage can't pay for you injuries or property damage. This coverage usually includes hit and run drivers as well.

How to get car Insurance Discounts
We all want a bargain, and insurance goes up every year. There are discounts if we can satisfy some basic criteria. Make sure you ask your agent if you qualify for any of these discounts. Here's a list of things that might get us discounts off our insurance:

Car Insurance Discounts You May Qualify For

AIR BAGS And AUTOMATIC SEAT BELTS
Automatic seat belts are those annoying belts that choke you when you close the door. Some companies might discount up to 30% off Personal Injury Protection and Medical Payments coverage if the driver and passenger sides have air bags and automatic seat belts. This discount is given because the insurance company knows you'll be belted in every time, hence your risk of injury in a crash is much less than someone else who is not belted in.

ANTI-THEFT/ALARM
Some companies give discounts off the Comprehensive premium when an active anti-theft device is present. This usually means a burglar alarm. Some companies may discount more if the alarm arms itself automatically when you turn off the vehicle. This 5% discount usually does not add up to much, but combined with other discounts listed here, will certainly make a dent.

ANTI-LOCK BRAKES(ABS)
If you have Anti-lock brakes(ABS), you may 5% or more off Bodily Injury and Property Damage coverage.

DRIVING SCHOOL
Some companies give drivers under age 25 who complete a state approved drivers education class up to 10% off on Bodily Injury, Property Damage, Medical Payments, Personal Injury Protection and Collision coverage.

SAFE DRIVER
Sometimes if you're a safe driver, usually 3 years with no points, you qualify for additional savings on different types of coverage. The insurance company will let you know. Usually on your insurance bill you'll see something that says "Your premium reflects the maximum discount allowed for safe driver".

MULTI-CAR or HOME & CAR
If you insure 2 or more vehicles on the same policy some companies may give you a discount. They may be equally generous if you have your home and both cars insured with them as well.

SAFE VEHICLE
Some insurance companies classify certain cars as "Safe Cars", meaning there's statistical data to suggest that there's less risk of injury by way of design, air bags ABS, etc. Find out if your car qualifies for this discount.

Click Here To Get Started: How To Buy A New Car & Avoid Scams

Jump to any chapter. I suggest you read each chapter in order.
Chapter 1 Get your credit report, how to get a car loan, scams, online car loans, first time car loans, budget & loan excel spreadsheets, credit repair.	Chapter 2 Reviews of internet discount car buying sites, new car prices, find dealer's invoice cost. Get a new car quote.	Chapter 3 What to bring to a dealership, what to say, how to act, what not to do, what to look for at the dealership, and a glossary of all dealer fees.	Chapter 4 How to read dealer invoices, finding dealer's cost, how much to offer the dealer, buyers offer spreadsheet, examples, trade-ins.
Chapter 5 Negotiating tips, dealer scams & tricks to watch out for, dealing with aggressive salespeople, choosing between rebates or low APR loans.	Chapter 6 Close the deal, avoid needless extras, scams in the business office, extended warranty scams, options, buying warranties online.	Chapter 7 Actual misleading dealer ads, and what to do when you've been ripped off, customer satisfaction surveys, how I bought my Lexus.
CarBuyingTips.com

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