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.
About the Author

Philip Franckel manages HURT911 at http://www.HURT911.org an Accident and Injury Research web site.

Technorati Tags: automotive, autocare, auto care, car care, auto repair

Everyone likes to save money. Auto loans can carry significant financial burdens for many people. One way to save money is to lower the financial burden these loans carry. The best way to save money on your next auto loan is to improve your credit score. A higher credit score means a lower auto loan interest rate. There are four basic tips for raising your credit score.

Regularly check report The first thing each and every individual should do before applying for an auto loan is get their own credit report. Checking credit reports for accuracy should occur once a year. If there are any mistakes that negatively affect your credit, corrections can take up to three months to fix. Staying on top of these mistakes will save you headache in the long run.

Reduce credit card balances An important factor in your FICO credit score is the ratio of owed amount to credit limit. If you have over 25% of your credit limit owed, this could lower your credit score. Try to limit the use of credit cards if this is your problem. Pay bills timelyPaying bills on time is one aspect of good credit in which most people are aware. Be sure you make timely payments on bills especially close to the time you apply for a loan. A late payment six years in the past will not affect you credit as heavily as a late payment in the present.

Pay off debt Many credit cards offer appealing balance transfer rates. Do not fall victim to these rates around loan time. If you cancel a credit card and transfer it’s balance over to another credit card, you are increasing the debt to credit limit ratio. As stated earlier, this is not a good thing. Instead of transferring debt, work on paying off that debt before applying for an auto loan.

There are many reasons why improving your credit score is so important. Saving money on auto loans is just one of the many benefits of having great credit. Improving your credit not only improves the health of your current financial situation, but sets you up for future financial success.

About The Author:
View our recommended lenders for Car Finance Loans http://www.abcloanguide.com/autoloans.shtml.

Copyright Carrie Reeder - http://www.abcloanguide.com/autoloans.shtml

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You know how it feels to buy a new car. The fresh smell of leather as you ease yourself into the plush leather seats. The whole car is gleaming. As you drive it out your driveway, you steal a glance at the reflection of your beautiful ride.

Fast forward 12 months. How does your “new” car look now? If you take a picture of your car now and compare it to when you first bought it, would you notice any difference? How is it that some cars continue to look “brand new” even though they are already 3 years old while others just look tired, dull and “old” just 12 months out of the showroom?

It is possible to keep your car gleaming new. You just need to know how to care for it.

1) Wash Your Car Weekly

Dust and dirt will accumulate as your drive your car. Even if you just leave it in your garage, the paintwork will accumulate dust. It is especially important to wash your car if your car was exposed to rain. The water droplets that accumulate on your paintwork will leave tough watermark stains if you let them dry under the sun. The sun “bakes” in the watermark stains and you ll find it especially tough to remove them later on. Your best bet is to give your car a quick wash and wipe dry if you ve driven in the rain.

When washing your car, use a quality car shampoo like Meguiar s NXT Generation Car Wash (http://www.fdcars.com/newsletter/n2-2.htm). You ll find it much easier to wash and dry your car if you use a soft terry cloth or a cloth diaper. I always keep a dozen cloth diapers ready in my house even though I don t have kids . They re cheap, absorbent and soft so that it does not scratch your paintwork. If you want to be flashy, you can get something like the Ultimate Wipe cloth, once again from Meguiar s (http://www.fdcars.com/newsletter/n2-1.htm).

Hose your car down to remove any excess dirt and grime. Then use your cloth to apply the car shampoo. Once you ve covered the whole car, hose off the shampoo, using a clean cloth to wipe away any remaining shampoo residue. It is critical that you wipe your car dry. If you leave the car to dry naturally, all your hard work thus far will go to waste.

Make sure you clean your rims. Brake dust will accumulate there, making your car look dirty even if the paintwork is spotless. You will also want to vacuum the interior of your car every few weeks to keep it clean.

2) Wax Your Car Once a Month

To keep your paintwork gleaming, you need to wax it. Of course, you could send it to an auto detailer for this. However, if you have an hour to spare during your weekend, it is really not that difficult to wax your car.

Before waxing, make sure you wash and wipe dry your car. Park your car in a cool and shady spot. It is best not to wax your car directly under the sun. Use a good car wax like Meguiar s NXT Generation Tech Wax (http://www.fdcars.com/newsletter/n2-3.htm). Apply the wax in a circular motion using the included sponge. Work on your car section by section. Remember which section you worked on first. Once you ve finished applying the entire car, it s time to remove the excess wax.

Use a soft terry cloth or cloth diaper to wipe of the excess wax. Start by wiping the panel that you first applied the wax and work on from there. It is best to use different sides of the cloth as wipe off the wax since it will accumulate on your cloth. You can either use a new piece of cloth as each is clogged with wax or alternatively shake off the wax from your cloth.

Lean close to your car and check whether there is any residue left. Clean any remaining residue.

Wash your cleaning cloth with a liquid softener (just like you wash your clothes). This will make sure there isn t any dirt or grime stuck to the cloth for your next waxing session.

3) Apply Tyre Wax For That Slick Black Look

To complete the wet & shiny look, apply tyre wax after every wash/wax. Look for ones that come with a trigger spray so that you can apply it easily. Something like Meguiar s Hot Shine High Gloss Tyre Spray (http://www.fdcars.com/newsletter/n2-4.htm) would work beautifully. This takes less than 3 minutes to do but it makes a big difference.

4) Keep That New Leather Smell

If your car has leather seats, it is important to clean and condition it at least once every 2 months. Use a leather cleaner/conditioner like Meguiar s Medallion Premium Leather Care (http://www.fdcars.com/newsletter/n2-5.htm). Apply using a clean terry cloth or cloth diaper. Wipe off any excess conditioner with a clean cloth. Doing this once every month of two keeps your leather supple and smelling like new.

While cleaning and conditioning your leather, you will want to work on the vinyl surfaces of your car as well. Your dashboard, door inserts and central console is normally made of vinyl. So, use something like Meguiar s Vinyl & Leather Cleaner/Conditioner (http://www.fdcars.com/newsletter/n2-6.htm) for this. This works much like the leather cleaner but is specially suited for vinyl surfaces.

5) Stand Back & Admire Your “Brand New” Car

Follow the routine above and you guarantee yourself a car that looks, feels and smells like new even 3 years down the road. Your friends and family will be impressed. When it s time to sell your car, you ll likely fetch much higher prices. First impressions count when selling your car. And a car with gleaming new paintwork and a spotless interior makes a VERY strong first impression!

P.S. The writer is not affiliated with Meguiar s in any way, except as a very satisfied customer.

About The Author

Fantic Carro is the owner and webmaster of FD Cars Guide which is a resource for car lovers worldwide. Visit his site for more articles, reviews and tips on cars: http://www.fdcars.com

Technorati Tags: automotive, autocare, auto care, car care, auto repair