How to get cheap auto insurance

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mkrongel

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Aug 15, 2006
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For the past 8 years i have been carrying around information on how to get cheaper auto insurance so i figured i would pass it on today. Especially since my insurance carrier pissed me off yesterday and canceled my insurance because they lost my payment.

i have the Gecko and their rate system works like this.

They ask you what you do for a living, so if you're a cashier you will pay more than if you were an accountant as they think cashiers have more stress and are more likely to get in to car accidents. Pick a low stress job as opposed to one with a lot of stress. Also they ask how mush you drive per year and how you get to work or school. Tell them you commute via public transportation (even if there is no public transportation in your area), you drive less than 4K miles a year, your car is garaged.

i have two cars, full coverage on both, $500 deductible, had 4 speeding tickets, one license suspension various other tickets involving no seat belt, stop signs, etc.. Also about 3 months ago my mom got in to an accident with one of the cars. I pay about $1900 a year for both cars. When i had my M3 it was only $2100 for 2 cars.

Now if you don't live in NY you'll think that my rates are high but for a NY'er with my driving record my rates are unheard of, thats because i know how to work the gecko, now you know how to too.

The info i am telling you to give is unverifiable and the job portion is profiling which i am sure is illegal to some degree. Every 2-3 years they ask me to tell them the mileage on my cars, usually i get rid of them or i just tell them what they want to hear. I bought an X5 16 months ago with 98 miles it now has 32K miles on it but they think it only has 3140 miles.

Hope this info helps some of you cut your auto insurance rates. I am sure the same tactics work with other insurance carriers as well.
 
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Not sure if this would be insurance fraud or not, but I suspect if you ever totaled the vehicle or if for some other reason made a claim based upon false information then you might get into trouble....

I would classify this tip under the category - Buyer Beware
 
Haha, I thought it was going to be an auto-insurance affiliate link, until I saw who was posting it. :)
 
Diorex said:
Not sure if this would be insurance fraud or not, but I suspect if you ever totaled the vehicle or if for some other reason made a claim based upon false information then you might get into trouble....

I would classify this tip under the category - Buyer Beware
Click to expand...

Its not fraud, if i wrecked my car today and i told them the mileage was 4000 miles 3 months ago you can make the case that you did a lot of driving in the past 3 months.

When the car was in an accident the mileage was way over what i told them but they never said anything about it

The claim is real if you totaled your car the mileage doesn't matter.

insurance carriers underwrite policies based on risk assessment the less risk you show them the better your payment will be. have you ever applied for a credit card and said you made more money than you really did? Is that credit fraud?
 
Yeah, if you got caught. Paperwork and verifying data for the thousands of car accidents a day keeps you safe from getting caught. But Im sure if the total was super high, and the irregularity came up, the insurance company might now pay up. If you violate terms of the contract, your SOL. And yes, I thought this was a spam post as well with an auto insurance affiliate link.
 
Might as well put an insurance link in there MK. We allow affiliate links here.
 
the credit game works in a very similar way

you can't overstate your income considerably but there's are many tricks you can pull
 
lol car insurance

when I arrived in Canada 2 years back I got quotes as high as $12,000 (could insure a plane for less than that fucking state farm) for a PT cruiser. I have held my license for 18 years, and have a truck license too! I settled for $5000 in the first year, sat driver ed to get a redction of $2100. This year I found a company that took my uk record into account and now I pay $1660 per year. Any Canadians may like johnson.ca ....
 
Alternative title of this thread:
How to build bad karma

;)

(Yeah, yeah... I know you BH'ers couldn't care less about that.)
 
I have my license to sell life insurance + annuities, so I know a thing or two about insurance fraud from all my fun continuing education.

I don't believe pushing the limits on your lifestyle + distance traveled etc can be considered "insurance fraud" - The burdon is on the insurance company to investigate your claims of insurability. They could decide to terminate your policy after your insured period, however.

In the life insurance world, we call this the incontestability clause, which means that someone can claim anything they want on an application and if after two years the insurance company hasn't investigated/disputed it, it stands, regardless. I know there is something like this in auto-insurance as well.
 
Some other tips that have been known to save people money:

- Declare yourself a member of a number of professional organizations. I think there is something like "IT Professionals Organization". In most online applications, you can also select things like "Government Official" and other perks like that will save money, but are rarely ever investigated by ins. companies.

- never claim your vehicle will be used for business.

- miles to from work - you can work from home no? put 0. If 0 is not allowed, put 1.

- call your current company and tell them you need to cancel unless they can give you a better rate. Tell them company XYZ offered to insure you for 60-75% of what you're paying now.

- Many insurance co's rate off of credit score now. Some people have been known to do this... and as an agent I would never, ever recommend someone form a new LLC at irs.gov, take the tax-id number, and use that as their social security number.
 
a new LLC will have no credit history and any credit you secure at first will be base doff of personal credit... so i don't get it...???
 
We've known for some time now that Federal EIN's and SS#'s are essentially treated in the same way.

It's been a dirty little secret for some in the credit industry to "repair" their credit using this trick... i.e. it's easier for some people to just start over with their credit rather than trying to climb their way out of bankruptcy.

You're right; its a clean slate meaning you'll need to build up again. But people might start the process by applying for college credit cards with their companys EIN as their SSN... for example.

here's a disclaimer from the ftc.gov website:

It’s a federal crime to lie on a loan or credit application, to misrepresent your Social Security number, and to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses.

...people still do it all the time tho.
 
mkrongel said:
Its not fraud, if i wrecked my car today and i told them the mileage was 4000 miles 3 months ago you can make the case that you did a lot of driving in the past 3 months.
Click to expand...

It is insurance fraud seeing how you are lying to your insurance company.

But most likely a company would never do anything about it because it's not worth their time/resources for such a small claim... Get in a huge accident or accidentally kill someone and you can be sure they'll be checking very thuroughly your records.

And it isn't as easy as you would think to come up with driving 29,000 miles in three months if you need to.

Here's what works for me... Move to california... Don't get pulled over (b/c frankly cops are more lenient here), don't get in accidents (watch out for the crazy mexican drivers who decide they just want to merge across 5 lanes of traffic w/o looking). And your insurance goes way down :D
 
dastuff said:
It is insurance fraud seeing how you are lying to your insurance company.

But most likely a company would never do anything about it because it's not worth their time/resources for such a small claim... Get in a huge accident or accidentally kill someone and you can be sure they'll be checking very thuroughly your records.

And it isn't as easy as you would think to come up with driving 29,000 miles in three months if you need to.

Here's what works for me... Move to california... Don't get pulled over (b/c frankly cops are more lenient here), don't get in accidents (watch out for the crazy mexican drivers who decide they just want to merge across 5 lanes of traffic w/o looking). And your insurance goes way down :D
Click to expand...

Thanks for the reply, if you look above an actual insurance agent said it isnt fraud
 
I'd read this thread....but I live in Massachusetts. We don't have Geico, State Farm, All State, Progressive or any of the carriers that you see on television. In fact we are the only state in the whole country that Geico refuses to do business in.

Why you ask?

Because Massachusetts regulates all insurance prices and requires insurance companies to take every customer that walks through their door.

Therefore I have an almost perfect driving record and I pay $310 a month for a car that cost me $38,000 when I purchased it 3 years ago.
 
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