7 Ways to Save Money on Car Insurance

Today's guest post comes from Joel Ohman, a certified financial planner and owner of a number of different consumer financial education websites, including a website to compare car insurance rates and a website with many different auto insurance FAQ for learning even more ways to find the best auto insurance.

What would you say if I told you that you might be able to save over $500 on car insurance in less than an hour? And that you could complete the entire process from home?

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Here are seven different ways that you just might be able to save hundreds of dollars on your car insurance if you simply take a few minutes to put these tips into action:

[Click here to check auto rates in your area.]

1. Drop Coverage You Don't Need

The beauty of doing a car insurance coverage checkup every six months or so is that even if it turns out that your current car insurance coverage is still the best value out on the market you may just find out that you are paying for a part of your auto insurance policy that you no longer need.

Not only do insurance rates change quite often but your insurance needs change more often than you may think. If you have a new teenage driver or have added a new car to your policy or have moved to a new zip code or--well, the list goes on and on. All of these things may potentially cause you to be paying for coverage that you no longer need.

[See The Most and Least Expensive Vehicles to Insure]

2. Search for Discounts

Never assume that because you searched for all of the car insurance discounts available 6 months ago that now there are no new discounts that you may be eligible for. New opportunities for saving money with a car insurance discount program pop up all of the time as different companies announce different discount programs in order to increase their market share.

3. Improve Your Credit Score

It's no secret that a better credit score will result in better car insurance rates. You may have been working hard to improve your credit score over the last few months in order to qualify for lower interest rates for a home loan or auto loan and you are now starting to see some of your hard work pay off.

When you see an increase in your credit score don't let the opportunity slip by to check and see if this credit score improvement will result in an improvement in your auto insurance rates as well. You've worked hard to improve your credit score so why not spend a few minutes to see if that can only help you get a lower interest rate but a lower car insurance rate as well?

Take some of your car insurance savings and use it to treat yourself to a nice dinner at your favorite restaurant--you deserve it!

4. Pay Your Premiums With a Credit Card

Wanna shave off 1 percent to 5 percent off of your total car insurance premiums just by changing your method of payment? With the average cash back credit card earning you anywhere from 1 percent to 5 percent cash back that's like getting a bill from your insurance company and then having to only pay 95 percent to 99 percent of the total instead of the full 100 percent!

One to 5 percent may not seem like much but as you can see with a cash back credit card calculator that money can quickly start to add up--depending upon how much money you spend each month if you use that cash back card for many of your purchases then your savings could end up being enough to pay for an entire year of college tuition after 15 to 20 years!

5. Tell Your Kids to Keep Their Grades Up

Virtually all of the major car insurance companies offer some form of good student discount. If your kids get good grades then you save money. Some companies offer savings for a lackluster C while most offer savings for you that range from 5 percent to 15 percent if your student maintains a B or an A on their report cards.

Maybe it's time to pass along some of that savings to your kids as a financial incentive to keep their grades high (after all, why not just let the insurance company pay your kids to get good grades rather than you?)

[See Buzzworthy New Cars to Check Out for 2011]

6. Take a Driving Course

OK, maybe you don't want to tell your spouse that you are signing up for a driving course because no one wants to admit that they may not be the world's best driver BUT if signing up for a defensive driving course that will take up minimal time and save you money--why not?

After all, at least you aren't one of the world's worst drivers - at least I hope not! Taking a driving course just one time can result in lifetime savings on your car insurance.

Check with your car insurance company as to what type of courses and course providers they will recognize for a discount on your policy.

7. See If Your Occupation Can Save You Money

Did you know that when car insurance actuaries calculate car insurance rates that they actually assign different risk classes to different types of occupations? Some occupations have cheap car insurance rates while other occupations get assigned an added level of risk that increases their rates.

The various occupation risk assessment algorithms will vary from one insurance company to the next but generally speaking professions like engineering and teaching will receive lower car insurance rates than business owners and attorneys. So what do you call yourself if you are an engineer that owns their own business? You tell me.

insurance journal interview with Joe Pichardo C.E.O OF Quotes4U

Joe what's the difference between your Web Leads and other lead referral companies?
We understand that it can be difficult to find a good lead provider, one that has types of leads, the filters, and the terms you are searching for. At Bestinsurancequotes4u.com we offer a wide range of leads and filters to help you target your market, and our , No Minimums, No Commitment system makes it easy for you to try us out.
How does your system work?
Start by creating an account with us. During the sign up process you will select the types of leads, filters, and geographic areas you are interested in.
After confirming your configuration online, simply enter your credit card information on our secure site and confirm your email address. You are now ready to start receiving real-time leads delivered to your online account and email address. If you ever need to make an adjustment to your account settings, our online system makes it easy with 24-7 access.
How are the leads generated?
Because we have no minimum number of leads to purchase and no long-term commitments, we believe the best way to keep our customers coming back for more leads is to produce a quality product. That's why the majority of our leads are generated from consumers looking for insurance on major internet search engines such as Google, Yahoo, and MSN. This is the most effective way to generate high-quality leads from serious insurance shoppers.
We operate a network of websites where consumers actively shopping for insurance request quotes. After submitting a quote request on our website, the prospect is sent an email reminding them they will soon be contacted by an agent. In the meantime, the prospect may be redirected to a trusted partner, where they can browse an instant quote while waiting for your call. This process keeps the prospect occupied and less likely to visit other sites.
To diversify our lead acquisition a small percentage of our leads come from carefully selected partners, all of whom are closely monitored for quality and only approved after a thorough screening process. We do not use or tolerate any incentive-based methods to generate leads.
Do I have to pay up front for my leads?
No. There is no setup fee and no deposit. Credit limits for new agents with quotes4u.com are set at anything you like . After signing up, we will charge your credit card on the 1st and 16th of each month, or when your credit limit is reached, for leads you have already received.
What happens if I get an invalid lead?
We make returning leads a simple, no-hassle process. If you get an invalid lead, you can return it online within 30 days if it meets any of the following conditions: a) all phone numbers provided are disconnected or fax, b) the lead is a duplicate already received from quotes4u.com, the contact is another agent testing the system, d) the contact is a student researching a school project, e) the contact information is obviously incorrect upon initial inspection, or f) there is a language barrier with the prospect.
Each lead returned for credit will be independently verified to ensure it meets the return criteria. For more detailed information about our return policy, click here.
Do I have to sign a contract?
When you sign up, we do require that you agree to our terms and conditions but we do not require any long term commitment from you. There is no minimum number of leads to buy. If at any time you decide that you want to cancel, just notify us and we will close your account.
How many leads can you provide me each month?
Since internet traffic varies, it is difficult to guarantee an exact number of leads per month. However, our agents can generally receive the number they require by expanding or reducing their geographic areas and/or lead types. Create an account now and select the leads, filters, and areas you are looking for.
Can I limit the number of leads I receive per day?
Yes, you can specify different geographic areas as well as a daily maximum for each type of lead you want to receive with our online system. You may receive as few as 2 lead per day, and leads are distributed 5 days a week. All of this is configurable under your control, 24-7, through our website. We give you the power to make changes to your account, as necessary.
How much do your insurance leads cost? Nothing if you don't need them or don't like them you don't have to pay for them,

Joe Pichardo
(877)290-0536 Phone
(866)346-3106 Fax

Higher closing ratio definitely

#2: Defining Success Through ROI

Get out your calculators! Too often agents use "gut feeling" to make business decisions, when their own data is all they need to determine what marketing initiatives are making them money.

• To know how successful your marketing effort are, it's important to track your return on investment (ROI) - that is, how much you make vs. how much you spend.
• To calculate your ROI, add your own data into this formula:

  Commissions $ from Policy Sales (Cost of Leads * # of Leads Purchased)

  =

  ROI

  Now let's see that same formula with example data:

  $800 in Commissions ($7.95 * 30 leads)

  =

  ROI

• Another way to look at the above return-on-investment example: if you have a $3.35 ROI - then for every $1 in marketing dollars, you receive $3.35 in commissions. That like earning a 235% return on your money!
• There is no "right" ROI number - try a variety of tactics to get an idea of what a good ROI is for you. However, if you have a ROI that is less than $1, then you're losing money and should re-evaluate your marketing strategy.
• Agents often incorrectly focus purely on closing ratio and contact ratio. While these metrics do demonstrate the relative quality of leads, it does not take into the consideration the cost of attaining those leads in the first place. A higher closing ratio definitely helps and saves you time, but the chart below demonstrates a scenario where a lower closing rate lead can actually out-perform when viewing ROI as your metric for success:

  	Lead Qty	Contact Rate	Conv Rate	Cost per Lead	Sales	Total Cost	Return	ROI
  Company A	30	50%	15%	$9.50	5	$285.00	$1,800	6.32
  Company B	30	30%	12%	$7.00	4	$210.00	$1,440	6.86
  Company C	30	45%	18%	$13.50	5	$405.00	$2,160	5.33

• That being said, agents are also making a mistake if they only consider price when choosing an online lead company. Price is only part of the equation when determining if leads are profitable. After all, it's no good to get a lot of cheap leads if not enough are converting into sales. Price AND quality AND return (commissions) work together to determine the best value.
• Don't get discouraged because your initial leads didn't convert - look at the big picture! Before calculating your ROI you need to have statistically significant data. We recommend at least 30 leads to really get an accurate representation of how a company's leads will work for you.
• During an interview with top agent MR Janese, with state farm reported buying 4,200 leads per year, and converting 1 in 11 leads into a sale. The commission earned from a 9% conversion rate is not only profitable for Chuck - web leads are the best deal for his money. Remember that having a 9% conversion rate could mean that an agent can work 10 leads and not close a sale until lead #11. Too often agents give up too soon, potentially missing out on a great source of new business because they don't have enough data to realize their actual long-term return.

The most important advice we can offer insurance agents

Tip #1: The Early Bird Gets the Insurance Commission

The most important advice we can offer insurance agents is to ACT FAST! Once you get a lead, it's crucial that you make contact quickly.

• Because web leads are delivered in real-time, prompt agents can speak with consumers while they're still sitting in front of their computers.
• We're talking minutes, not hours here. 2 hours = Too Late! A delayed response means a consumer may have gotten impatient and filled out other quote request forms, become busy with another task, or already began speaking with another agent.
• According to a popular lead management system, leads convert 22 times more often when contacted within 5 minutes and 78% of prospects convert with the company that contacted them first.
• Ask to receive leads via email AND text message. Many agents don't opt-in to text message notification of leads, but by doing so you'll gain the ability to make fast contact while away from your desk - at lunch, in meetings, during off-hours, and while visiting other customers. Best of all, it's free!
• If you receive a lead when you aren't able to provide a quote, send an email or place a quick call to introduce yourself in a timely manner and request a mutually-beneficial time to speak further. The consumer will associate you with prompt customer service and will be less likely to make a purchase until they have received all quotes available to them.
• Have the ability to email from your cell phone? Perfect - keep an introductory email draft on your phone for quick customer acknowledgment while you're on the go. Here's an example email to use when you want to make initial contact but don't have time for a full conversation:

# WHEN INSURANCE COMPANIES COMPETE FOR YOUR BUSINESS YOU WIN

FOR IMMEDIATE RELEASE
Press-Release.com) April 27, 2010 --
Delivering Growth Opportunities for Insurance Agents is announced with bestinsuranceQuotes4U.com In. the online health, life, home and auto insurance company provides new programs for agents to take advantage of to enhance business growth.

NEW YORK, N.Y JAN 25, 2009 -- The business of providing insurance referrals for health, life, home auto insurance and auto insurance is about change. Veterans of the health, life, home and auto insurance industries have forces to create a customer service-oriented online site for agents to grow their businesses. The new site www.BESTINSURANCEQUOTES4U.com has been receiving praise from users for its exceptional customer service and robust online programs. The new site is designed to provide agents with a greater quality of business referrals.

WHEN INSURANCE COMPANIES COMPETE FOR YOUR BUSINESS YOU WIN

More from the author


• Secret of Success When Working With Insurance Leads

As the referrals-based health, life, home and opens for business nationwide, with corporate offices located in NYC, clients of the company are already reaping immediate benefits from the service. The company has created an online site unlike any auto insurance company and is committed to being not just like "any" other online program for generating referrals. 4U is a referral-based program that works in real time delivering important potential clients to its agents via computer alerts, text messaging or through the management of one of their professional customer representatives.

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The feedback and results to the service have been overwhelmingly positive. This comes as no surprise to 4U company representatives who have researched and invested in making the online service the best in the industry. Utilizing the most powerful search engines provide quality referrals, the company does not use pop-ups or spam to bring people to their site. As the national health care crisis continues to grow along with it comes search engines an enormous to provide life insurance

as the population ages. The company's goal is to bring the serious customer and the reputable agent together.

Setting them apart is the fact that the site has been designed with speed and efficiency in mind. Nothing is automated on the site which can be typical of many sites trying to serve this segment of the industry. Using geographic web targeting and three-digit prefixes of a zip code filtering; agents can purchase territories increasing their business' reach with little effort. The company recognizes that agents need to sell, 4U'S job is to deliver the referrals and have committed tremendous resources to doing just that.

The benefits to agents using the service, in addition to receiving quality referrals, is that the site works for them through a multifaceted member log-in center along with personalized web pages that potential customers can view. The company monitors the site to make sure clients know they have received the inquiries. If an agent doesn't log in right away, but has referrals waiting, a customer representative will contact them to make sure they are aware of the latest activity,