Tricks in Getting a Low Premium With Full Coverage for Luxury Car Insurance

Buying a luxury car is a desire for everyone in this world and buying cars like Audi R8 or Porsche 911 Carrera. Latest survey says that buying luxury car has been increased about 10.3% compared to the previous year 2009. Your dream car must be insured to protect against the theft, accident, vandalism and natural calamities. Average cost of the luxury car is $50,000 and if you like to insure your car with basic coverage with yearly premium rate goes around 5% of your total price of the car. Insurance agents mostly offer all unnecessary coverage just to increase our premium rates before going to insure your dream luxury car you have to know the mandatory insurance coverage and other coverage. Here are some useful tricks to be followed to reduce your yearly premium amount.

How to reduce your premium amount for car insurance without losing the coverage?

There are several tricks in getting the premium amount reduction:

1. Gain the No claim Bonus (N.C.B) which many insurance companies offer the discounts with higher N.C.B. N.C.B is if you not made any claim during 12 months or greater you are eligible to N.C.B

2. Most of the Car insurance companies offer the less car usage discount, so if you travel less distance with your luxury car then you can get the less usage car discount.

3. Insurance companies like alliance, New York and G.E.I.C.O offers the discount of about 5% in yearly premium for the drivers who are taking a monthly driving course in recognized driving authority institution.

4. If you enabled the security devices like G.P.S, security alarms insurance companies offer the 5% discount for yearly premium.

5. Increasing your deductible amount makes you to claim for big amount, for example: Your car met with an accident and need $2000 dollars to repair and your

deductible amount is $1000, then you have to pay $1000 and company only pays $1000, so increasing your deductible amount gives you relief from paying our own money.

6. Include additional drivers like your son or daughter as a second driver if they studying college or school as young drivers with good grade in school and college get discount of 5% in yearly premium.

Things to be remember Before Signing the Offer Document:

1. Check whether the insurance coverage quoted is needed and their terms and conditions and it covers all mandatory coverage like accident and damage protection, theft coverage.

2. Make sure that the electronic equipments in the car also included in the coverage.

3. Include the second drivers and add the details like their date of birth and license Number.

4. Ask for the above discounts to reduce the yearly premium amount.

5. Read the Terms and conditions offered by the insurance company carefully and if you have any doubts and questions regarding the financial terms raise the question to your insurance adviser.

Tricks in Getting a Low Premium With Full Coverage for Luxury Car Insurance

Buying a luxury car is a desire for everyone in this world and buying cars like Audi R8 or Porsche 911 Carrera. Latest survey says that buying luxury car has been increased about 10.3% compared to the previous year 2009. Your dream car must be insured to protect against the theft, accident, vandalism and natural calamities. Average cost of the luxury car is $50,000 and if you like to insure your car with basic coverage with yearly premium rate goes around 5% of your total price of the car. Insurance agents mostly offer all unnecessary coverage just to increase our premium rates before going to insure your dream luxury car you have to know the mandatory insurance coverage and other coverage. Here are some useful tricks to be followed to reduce your yearly premium amount.

How to reduce your premium amount for car insurance without losing the coverage?

There are several tricks in getting the premium amount reduction:

1. Gain the No claim Bonus (N.C.B) which many insurance companies offer the discounts with higher N.C.B. N.C.B is if you not made any claim during 12 months or greater you are eligible to N.C.B

2. Most of the Car insurance companies offer the less car usage discount, so if you travel less distance with your luxury car then you can get the less usage car discount.

3. Insurance companies like alliance, New York and G.E.I.C.O offers the discount of about 5% in yearly premium for the drivers who are taking a monthly driving course in recognized driving authority institution.

4. If you enabled the security devices like G.P.S, security alarms insurance companies offer the 5% discount for yearly premium.

5. Increasing your deductible amount makes you to claim for big amount, for example: Your car met with an accident and need $2000 dollars to repair and your

deductible amount is $1000, then you have to pay $1000 and company only pays $1000, so increasing your deductible amount gives you relief from paying our own money.

6. Include additional drivers like your son or daughter as a second driver if they studying college or school as young drivers with good grade in school and college get discount of 5% in yearly premium.

Things to be remember Before Signing the Offer Document:

1. Check whether the insurance coverage quoted is needed and their terms and conditions and it covers all mandatory coverage like accident and damage protection, theft coverage.

2. Make sure that the electronic equipments in the car also included in the coverage.

3. Include the second drivers and add the details like their date of birth and license Number.

4. Ask for the above discounts to reduce the yearly premium amount.

5. Read the Terms and conditions offered by the insurance company carefully and if you have any doubts and questions regarding the financial terms raise the question to your insurance adviser.

Tips To Avoid Car Insurance Premium Increases & Becoming Assigned Risk

Below are some tips to reduce your auto insurance bill, prevent substantial premium increases and avoid becoming assigned risk.

Claim Reports: You know about credit reports, you should also know about claim reports. C.L.U.E.® (Comprehensive Loss Underwriting Exchange), is a claim report service provided by ChoicePoint, Inc. ChoicePoint, Inc. states on their web site "C.L.U.E. is a claim history information exchange that enables insurance companies to access prior claim information in the underwriting and rating process. C.L.U.E. Personal Property reports contain up to five years of personal property claims matching the search criteria submitted by the inquiring insurance company. Data provided in C.L.U.E. reports includes policy information such as name, date of birth and policy number, and claim information such as date of loss, type of loss and amounts paid."

Tip: C.L.U.E. reports contain information on claims history by a residence address. Just like credit reports, a C.L.U.E. report may have errors. It is advisable to obtain a copy of your C.L.U.E. report at ChoiceTrust.com to check your report for errors.

Credit reports: Insurance companies are now looking at credit reports to determine future premiums. They have determined that people with better credit scores have fewer claims. Consequently, if you have a poor credit report you may find yourself paying more for car insurance.

Tip: Always make at least the minimum payment for your bills on time, particularly your insurance bill.

Glass Coverage: Most auto insurance salespeople recommend "full" glass coverage for an additional premium, when you purchase collision coverage for your car. They remind you how much it costs to replace all your windows if broken by a vandal. What they do not tell you, and it is unlikely that they would even know (I would only trust the answer from an underwriter, not a sales representative), is whether your insurance company will use a previous glass claim to increase your future premium and whether they will report your glass claims to C.L.U.E.

Some insurance companies will report glass claims to C.L.U.E. and then use these claims to raise your premium or even worse, cancel your car insurance policy making you assigned risk with a substantial premium increase. Allstate notified me that after four claims in less than five years, they terminated my auto insurance policy and then offered to sell me coverage in their Indemnity Company with a shocking premium increase. These claims consisted of two claims for a broken windshield, one for a stolen and recovered car and one accident.

I had a sports car and had to endure a total premium increase over a period of four years of approximately $12,000 and remain claim free before I became eligible for coverage outside of the assigned risk pool. I wrote a letter to the president of Allstate complaining that they should not have considered my glass claims when canceling my car insurance because the glass claims were made under a separate part of the policy for which I paid a separate and additional premium. Allstate responded in a letter stating "Although this claim activity does not indicate that you were directly at fault in each loss, the frequency and severity of the above losses was not within our range of acceptability. After careful review, I regret to inform you that we cannot reverse our original decision regarding the above policy. We have however continued to offer coverage in our Indemnity Company."

Tip: Check with the underwriting department of your insurance company to see if they will consider glass claims when assessing premiums or if they report glass claims to C.L.U.E. If yes, do not make a glass claim. The two windshields which Allstate provided me with were aftermarket windshields which would have cost me less than $300 each. During the last 30 years of my driving history, I have experienced two broken front windshields, one broken rear windshield and two broken side windows. While the financial risk of totaling a car can be substantial, the financial risk of replacing a windshield is comparatively insignificant. It does not make sense to file a glass claim if it will increase your premium. You may even want to decline this coverage altogether and save the premium.

Tip for leased vehicles: Some lease agreements require that the car be returned with an OEM windshield. If you lease a car and replace a front windshield using your "full" glass coverage, insist that the insurance company provide you with an OEM windshield from the manufacturer. If you pay for the windshield yourself, check your lease agreement carefully to see if you must use an OEM windshield from the manufacturer or if you can use an aftermarket windshield. Some people with leased cars who have replaced a windshield with an aftermarket windshield are shocked, when they return their car, to find that the leasing company is charging them $800 for a new OEM windshield, even though the aftermarket windshield is in perfect condition.

Car Rental & Towing Coverage: While it may be a good idea to have this coverage, it is not always a good idea to use it. Some people have realized that this coverage is not just available when an accident has occurred. For instance, some people have used the car rental coverage when their car was in a repair shop or the towing coverage when their car broke down on the road. As with glass coverage, using this coverage may be the same as filing a claim.

Tip: Check with the underwriting department of your insurance company to see if they will consider rental or towing claims when assessing premiums or if they report these claims to C.L.U.E. If yes, do not use car rental or towing coverage unless you have had an accident, in which case it will be part of the accident claim. If you are concerned about towing costs when your car breaks down, you can buy one of the roadside assistance memberships such as the one available from AAA which provides additional benefits not provided by your automobile insurance policy.