Internet Marketing 101: Online Marketing for Small Business

Introduction

You own a small business. Do you need a website? An Internet presence can be a necessity or a resource-draining boondoggle, depending on your business and your target audience. You shouldn’t build or maintain a website simply because “everyone else has one.” However, even if you own a one-person services company and get all the business you can handle through word of mouth, you can still create an online presence with a minimum of time and expense.

If and when you do develop a business website, you’ll need to make some kind of investment in Internet-based marketing. Consumers increasingly and overwhelmingly use the Internet to research and buy goods and services. This means the competition is robust, and if your site doesn’t announce its presence it will simply sit and gather (virtual) dust in some computer’s memory.

If you’ve convinced yourself that you need to enter the web marketing arena, the following report provides a fundamental primer on the most widely used tactics for both paid and free Internet advertising. Just remember that each of the topics introduced here is complex enough that there are entire books written about them, so if something appeals to you do some additional research before jumping in.

Before You Start

There are two main questions you must ask yourself before starting any marketing efforts, whether on- or offline: “Who is my audience?” and “What are my objectives?”

Audience

The audience for most business marketing activities is obviously past, present, and future customers. However, as in traditional advertising and marketing, it helps to narrow down who you are trying to reach, segmenting your market by age, geography, gender, interests, occupation. Certain methods of Internet marketing, such as pay-per-click ads, allow you to target your customers based on this type of segmentation.

Objectives

We can assume that the overall objective of most marketing is to sell products and/or services, but you may have additional objectives for online marketing. These related objectives will hopefully end up driving increased sales, but they can be more subtle than simply asking customers to buy right now. For example, your online marketing plan might include goals such as these:

  • Support and increase visibility of your company’s brand.
  • Improve search engine rankings.
  • Offer reference information related to your business sector.
  • Increase number of registered users or newsletter subscribers.
  • Drive traffic to your company website.

After defining your audience and marketing goals, you can begin to formulate an Internet marketing strategy and tactics. When getting into online marketing, it is important that you maintain brand consistency. Build on the reputation that you have already established. Your on-line presence should mirror that of your “brick and mortar” presence. Use the same logo and tagline so that people will understand that you are the same company. Having an online presence is a way to build on what you have already accomplished.

In the remainder of this report we’ll look at the most common ways you can use the Internet to deliver your message and start increasing your sales.

Table of Contents

websites

E-Mail

Newsletters

Other Announcements

Search Engine Marketing and Display Advertising

Search Engine Optimization (SEO)

Pay-per-Click (PPC)

Display Advertising

Social Media and Networking

Decide: Who, What, Where, When, and Why?

YouTube, Facebook, Pinterest, Etc.

Twitter

Blogs

Forums & Discussion Groups

Article Placement / E-Zines

Other Internet Marketing Outlets

Wikipedia

Directories

websites

We won’t get into the vast topic of how to build and manage a website, but if you aim to use the techniques described below, it is nearly essential to have one. Most of your marketing efforts will have a “call to action” that involves your audience visiting your website to research products or services, find contact information, sign up for a newsletter, or place an online order. Whatever you are asking people to do in your online promotions, make sure the website allows them to easily complete that task. One other vital component of any business website is an analytics program (Google offers a fairly robust application free of charge), so you can track how well your marketing efforts are working and calculate the return on your advertising investment (ROI).

How can you develop an online presence at little or no cost? There are several companies that offer free site building tools and hosting services. If you go this route, select a company that has a proven track record, so your hard work isn’t wasted when the company goes out of business or suspends the service. A couple of reliable options are Google Sites and Yola. If you have any money in your budget at all, you should probably just spend the less than $100 per year it takes to buy a personalized domain name (for example, “mybusiness.com”) and a Web hosting service. Another potential option, depending on your business and marketing goals, is to create a free blog (see below for more details). The most popular free blogging services as of this writing are WordPress and Blogger.

E-Mail Newsletters

E-mail newsletters provide one of the most highly performing avenues for marketing. You can collect customer e-mail addresses by asking visitors that come to your website to subscribe, by requesting e-mail addresses from anyone who visits your physical location, or by purchasing an e-mail list. To generate a higher rate of readership, make sure the audience is narrowly targeted and has some vested interest in your product. By sending out your newsletter on a regular schedule (weekly, monthly, quarterly, etc.) you can counteract the transient and temporary nature of Internet users by continually reminding them of your company’s existence. Affordable services like Constant Contact can be used to manage mailing lists, statistics, and opt-in/out functions.

Caveat: Sending commercial e-mail messages to people who have not agreed to receive your mailings can result in severe fines and penalties from the federal government per terms of the CAN-SPAM Act.

Newsletter content should appeal to your defined audiences, with industry- or product-related news and events, company-specific news and events, practical reference information, and interesting statistical and demographic information. The newsletter copy should publicize links to appropriate pages within your website.

You will need to maintain one or more separate lists for the purpose of sending targeted messages to particular audiences (see Other Announcements below). You might combine all your lists to send a monthly newsletter, and send other bulletins to past or potential customers as appropriate.

Other Announcements

Other announcements are e-mailings that can consist of press releases, coupons, special notices, or anything you want to communicate specifically to members of one or more e-mail lists.

Search Engine Marketing, Pay-per-Click and Display Advertising

Search Engine Optimization (SEO)

Search engine optimization means constructing a website that is easily crawled by search engine spiders, and it encompasses a variety of techniques designed to improve your site’s (or page’s) ranking in the search engine results page. The goal is for your site to be found by searchers who are looking for sites related to a certain keyword or phrase, for example “little red wagon” if you are in the business of selling toy wagons. SEO can be divided into on-page activities (e.g., amount of content, metadata, links, programming methods and structural issues) and off-page activities (most importantly, obtaining links from other websites to your site).

Pay-per-Click (PPC)

Pay-per-click advertising refers to text ads displayed on search engine results pages (versus “organic” results achieved by SEO) and other sites, usually in the margins. In the case of Google AdWords and Microsoft’s adCenter, you can open an account and specify the keyword(s) that, when searched for, will generate an ad that links to your website. You pay only when a searcher clicks an ad and is directed to your site. In the example below, the key phrase is “little red wagon,” and pay-per-click ads are located at top (in yellow) and in the right-hand column (subtitled “Sponsored Links”). The first organic listing is “Little Red Wagon Foundation.”

A few of the benefits of PPC advertising are that you know exactly how many people view your ads, how many of those viewers click through to your website, and (if you are using a site analytics tool) what they do once they reach your site. You can also start and stop running ads at a moment’s notice, experiment with any number of ads you like, and fund your campaign with as little as $10 to start.

Display Advertising

Display advertising, also called banner advertising, means purchasing ad space on another website and placing a text and/or graphic ad with a link to your site. This technique is generally more complex and expensive than pay-per-click, but can be very powerful if the right message is shown to a tightly focused audience. To achieve optimal click-through rate (CTR), advertise on websites where you assume your target audience is visiting, rather than a general interest website. Most marketers don’t purchase ad space directly from another website, but use a banner ad network to automatically place ads on appropriate websites. A couple of the biggest names in display ad serving are DoubleClick and BurstMedia.

Social Media and Networking

Social networking is the latest buzz in the modern marketing arsenal. If you have any doubt about its impact, especially on the under-40 population, read this list. Small businesses with limited resources should weigh their time spent and the potential benefits carefully, however. It can also be difficult to measure the return on your investment for some of these tactics.

The general principle of “marketing” on social networking outlets is that people who have similar interests will virtually congregate around Web content that discusses that interest. They may be interested in product information in the form of reviews or personal opinion, but hard sale approaches are mostly discouraged and unproductive. Your goal is to become a trusted advisor-which usually means revealing your identity and at least some part of your personality. If that premise makes you uncomfortable, you might still find social networking sites valuable for market research purposes. Find out what people are buying and why, then use that information to help shape your other marketing activities.

The following section describes the more popular social media outlets and sites, but keep your eyes open for new virtual spaces where you might get more attention by getting in on the ground floor.

YouTube, Facebook, Etc.

YouTube allows you to post videos on your own “channel,” a distinct Web page that can be customized and allows for posting links back to your own website. A major positive aspect of this venue is that the number of views is posted and viewers can submit comments, so you know whether your videos are popular and why.

Facebook is considered the model for modern social networking sites. Facebook allows you (individual, corporate, non-profit, etc.) to create a page, attract “likes” and reviews, communicate with followers by posting status updates, photos and videos, and so on.

Although the previously named sites are the most popular in terms of visitors, there are a couple of business-oriented networking sites that may be more useful for making business connections. LinkedIn helps you develop a network of clients, service providers, and subject experts; find business opportunities and partners; post job openings; and more. More detailed advice on best practices for using LinkedIn can be found in many online articles and blogs.

Twitter

Think of Twitter as a mini-blog (see below) that allows you to broadcast messages of 140 characters or less. The messages appear to your “followers” on their phones or computers, as well as on Twitter.com. The biggest challenges are to gain a useful number of followers and to think of something engaging to write to them. If you are a speaker, writer, or performer Twitter can be used to let your fans know what you’re doing and when. If you have a retail store you might let your followers know that you’re offering a discounted item or running a special sale. You should post a Twitter sign-up link on your website, and within your signature line in outgoing e-mail messages. You can also gain followers by following people who work in or comment on your industry, as some Twitter users will follow those who follow them.

Blogs

The word blog originally came from the term “Web log.” There’s no real standard for what a blog is, but most commonly authors use them to comment on (and link to) other online news items, websites, or other Internet content. For the most part, direct selling on a blog is frowned upon and is probably a recipe for driving away potential readers. What do you write about, then? Well, if you run an Internet marketing firm you write about trends in Web marketing, what the search engines are up to, tips for do-it-yourselfers, or what you thought of the latest Hollywood blockbuster. Seriously, read some blogs and you will find all sorts of personal opinion mixed in with professional advice and commentary. The goal of your blog, however, should most likely be to establish yourself as an expert and trusted advisor in your chosen field.

You might also pursue getting your products, services, or website mentioned in related blogs by other industry experts. When a high-visibility blogger mentions a website on his or her blog, the site is exposed to a potential audience of new viewers. Often, blog postings are simply press releases that are picked up by sites that discuss topics related to a particular product or industry. More opportunities (and traffic) in this arena can be realized by developing relationships with individual bloggers.

Additional Tips:

  • Post an article that was written by someone else, just be sure to provide a link to the original article and give credit to the person wrote it. You can then give your commentary on the topic of the article or find a way to relate the information to local trends or challenges.
  • Ask colleagues to be “guest bloggers” by writing articles for you to post, again giving them credit and adding their byline and a link to their website. Using links is a good way to drive additional traffic to their sites so it’s a good trade-off for both parties.
  • Nick Francesco of AskNick.com said, “A blog gets people’s attention and Twitter keeps it.” Consider using these two outlets together.

Forums & Discussion Groups

A forum (also known as discussion group, message board or bulletin board) is a component of a website where users can ask questions, offer advice, or share experiences with others about a certain topic or topics. Nearly every hobby on earth has a number of popular forums wherein members offer their thoughts and feelings on all aspects of their favorite pastime. Contributing a comment (with a link to your website) in discussion groups related to your products or services can create a small surge or spike in traffic, but usually has little long-lasting effect. To maximize effectiveness, target forums on high-traffic sites that have 1,000+ users, and reply to topics with larger numbers of views (relative to other posted topics).

You can easily build your own bulletin board/forum component on your site with free or low-cost software. User forums have the potential to greatly increase the “stickiness” of a site, given a critical mass of traffic required to generate new discussions and keep participants interested in returning. You can start by “seeding” topics on your own, but there won’t be any results until traffic is directed to the forums. The conundrum for small businesses may be the time required to moderate a forum once it becomes successful. One solution is to seek out a volunteer moderator who exhibits a keen interest in your field. A sample of a baseball trading card forum is shown in the screen shot below.

Article Placement / E-Zines

Another avenue for generating incoming links and traffic to your site is the free article market. Article submission (or e-zine) websites allow you to publish articles on a variety of topics. Examples include EzineArticles and ArticleCity.com.

Depending on terms of use, these articles may be used as content on other websites, or collected on the site where submitted. The main objective of most article contributors is to increase their search engine rankings with the placement of backlinks on other reputable sites. Providing reliable and accurate reference information is secondary, and the traffic potential from article readers is questionable.

Obtaining links from article submission sites isn’t likely to improve your site’s search engine rankings much. However, existing content from a print newsletter or other written material can be re-purposed with a relatively small time investment. Be aware that creating articles from your website’s content verbatim may cause search engines to penalize your site, as the search engines take a dim view of text that is republished multiple times (“duplicate content” in search engine optimization terms). Submitting articles to sites with the most traffic will give your site the best chance to be discovered by new readers.

Caveat: Once an article is submitted, you have little or no control over who uses your content and for what purpose, depending on the copyright policies of the site on which the article is posted.

Other Internet Marketing Outlets

Wikipedia

Wikipedia is, essentially, an online encyclopedia. The unique aspect of Wikipedia is that users generate the content, though content must be approved by volunteer editors. Traffic will grow if and when others link to the entry. If you add content, your time commitment will be relatively minor, and the benefits might include improved search engine ranking and a slight increase in traffic to your site. As with other forms of Internet communication, a Wikipedia entry that is essentially a commercial for a product, service, or company will not be viewed positively and is unlikely to be approved by editors.

Directories

Online directories allow Internet users to browse through categories of topics to find websites related to a certain subject. There are directories for businesses, blogs, websites in general, and more. Many directories are free, and some only list you if you pay. The mother of free directories is the Open Directory Project, and by all accounts the best paid directory for business is the Yahoo! Directory ($299 annually). Be aware that you might wait a long time for some of the free directories to list your site, as they may rely on volunteer screeners. Directories not only allow consumers to find you in their listings, they also help get your site indexed in the major search engines. If you submit your site to a directory, make sure to read the submission guidelines and follow them exactly.

Pitlochry Vacations – What To Do When Visiting Pitlochry

Pitlochry vacations are now becoming increasingly popular not only with those who live in the UK, but also with tourists from around the world. Not only does this area of ​​Scotland offer some really stunning scenery but also there are plenty of other things that one can do while staying here.

In this article, we take a look at some of the attractions that you may want to consider visiting during a stay in Pitlochry. Surely, you may find that you need to stay more than a few days in order to enjoy everything that this town and the surrounding area have to offer.

1. Pitlochry Dam – This was built because a power station was needed to provide electricity to the area. When it was built, a new loch was also created and because of this, they had to build a salmon ladder, which allowed the salmon to get upstream, where they would breed.

During your visit to the dam, you are able to see a portion of the ladder that has been enclosed in glass to view just how the salmon make their annual journey to their breeding grounds. This actual exhibition is open from Easter until the last Sunday of October from 10.00 to 17.30 each day.

2. Eradour Distillery – This is the smallest of all Scotland's distilleries and upon your visit will be provided with a wee dram (small glass) of the whiskey that they produce. Tours of the distillery take place regular through the year, but during the winter months (November through to February) there opening hours are different from those in the summer.

3. Killiecrankie Visitor Center – This is to be found outside Pitlochry on the A9 and it is here where you can learn about the Jacobite Rebellion that took place in 1689. It was this rebellion, which was harvested to gain independence for Scotland from England. However, the leader of the rebellion a gentleman called John Graham was killed at the battle, which occurred at Killiecrankie, and this rebellion was defeated by the English troops.

4. Loch Rannoch – This is one of the largest and longest lochs in Scotland and is a short drive away from Pitlochry. This loch is in fact famous as it is actually included in Robert Louis Stevenson's book Kidnapped because he was so impressed with the loch's setting.

Along with the attractions, we have mentioned above when it comes to Pitlochry vacations you will find that there are plenty of other things one can do. Why not spend some time exploring the surrounding countryside. Alternately, if you are feeling a little more adventurous then why not try some water sports which can be found at many of the surrounding lochs.

There are lots of hotels and guest houses in Pitlochry to make your stay a pleasant one. You can then relax and take in the joys of this beautiful part of Scotland.

Thunder Megaphone – A Glacial Valley Can Focus and Amplify Thunder Into a Most Extraordinary Sound

We’ve all heard thunder, and we all know what causes it. Many of us have heard two distinct kinds of thunder, but perhaps we never really noticed or thought about it. Recently, I heard a third kind of thunder.

“Ordinary” thunder – a thoroughly extraordinary sound, but the kind of thunder we hear most often – happens when lightning occurs at some distance from the observer. The initial sound of the lightning bolt echoes off surrounding objects and air masses. Because it is echoed so many times, the thunder stretches out into many, many seconds, even though the initial sound might have lasted a second or two at most. Moreover, because the initial sound echoes off soft things with indistinct surfaces – clouds, thermoclines, and weather fronts – and because many echoes reach the ears of the observer at different times, the original sound is greatly distorted. Almost all high frequency components are filtered out, and the observer hears mostly a low-pitched rumble.

When lightning strikes very close to the observer, within a few hundred feet, the sound is entirely different. The observer might not hear echoes of the thunder at all, but only the pure initial sound. It is a single, sharp, intense “POW!” It may be followed by a much quieter, but still loud, whistling or hissing sound.

But what about that third kind of lightning?

I was camping alone in Crawford Notch State Park in northern New Hampshire, when thunderstorms began rolling into the valley just after dinner. I tidied up my campsite just before the rain started, then retreated to my tent. One thunderstorm passed without much incident.

Darkness had fallen by the time the second thunderstorm rolled up from the south. I occupied myself by counting the time interval between lightning and thunder to track the movements of the storms. Fifteen seconds before the thunder rolled up from somewhere west of Mount Bemis, and I knew the storm was just under three miles southwest of me. Seven seconds between the flash and the rumble beyond Frankenstein Cliff, and I knew the storm was passing nearly a mile and a half to my west.

And then it happened!

A flash. I counted eleven seconds. And I heard a sound unlike any thunder I had ever heard before.

The cacophony included at least half a dozen rapid repetitions of the “POW!” of a nearby lightning strike. But at the same time, there was the rumbling and roaring of “ordinary” thunder, but much, much louder than usual.

Before I could figure out what that sound was, there was another flash somewhere to the north. Again I counted eleven seconds, and again I heard that utterly incredible crackling and powing and rumbling and roaring.

This time, I figured it out.

It was a lightning strike right within the upper reaches of Crawford Notch just a couple of miles north of me. It was right within a gigantic stone megaphone formed by Webster Cliff on the east, Mount Field and Mount Willey on the west, and the old glacial cirque of Mount Willard for a backstop on the north.

And this 1,500 foot deep, three-mile-long granite megaphone was pointed right at Dry River Campground.

Yes, the beautiful U-shaped glacial valley of Crawford Notch is a nearly perfect megaphone, albeit open on top. The bare stone faces of Mount Willard and Webster Cliff echoed the initial “POW!” of the thunder almost undistorted. The western slope of the notch is a bit more heavily wooded, but there’s enough bare ledge and rockslide there to provide a pretty good echo. The open top of the notch was covered by the underbelly of the thunderstorm itself, which provided enough of a soft echoic surface to create the usual rumbling of thunder in addition to the clean “POW!” echoes off the rock faces.

But all of this sound was extraordinarily loud because of the megaphone that focused it all right on me and my campsite.

After I got this all figured out, there was a third lightning flash in the north. Yes, eleven second later, there was that glorious, unearthly sound again.

I wondered why I had never heard this kind of thunder before. I have probably experienced thunderstorms in Crawford Notch at least a dozen times over the years, but never heard the Thunder Megaphone.

My best guess is that I probably have heard it before, but never noticed it. Most of the times I’ve camped there, it was with a crowd of friends and family. Much goes on when a thunderstorm rolls in. Ponchos have to be broken out and put on, while at the same time, various disorderly what-nots need to get stashed into cars and tents before they get soaked. There is a bit of yelling and shouting to be done, and paradoxically among the mayhem, kids and dogs need to have their fears calmed. Meanwhile, tarps over the tents and picnic tables are flapping in the gales, making a poor imitation of thunder themselves.

In all my 25 years camping in Crawford Notch, this may have been the first time I experienced a thunderstorm while I was camping there alone. There was no tarp over the tent, and I had anticipated the thunderstorm well enough to get everything into the car long before the rain started.

So, when the lightning and thunder came, I had nothing to do but observe.

What a treat!

I half hope we get a thunderstorm the next time we go camping in the mouth of the Thunder Megaphone.

Some Things Your Car Insurance Company Won’t Tell You

1. How to determine the value of “total loss.”

Most companies will tell you that they use at least three methods or schemes to determine the actual a totaled vehicle’s value including value books, computer-generated quotes from dealers, and local market research. In this case, you will probably think that local area is your current neighborhood, but it is not specifically defined by the insurer. If, in any case, the company cannot find an auto replacement in your neighborhood, so they have to find it not from your “local area,” your totaled car’s value is certainly affected. For example, if you currently live in New York, replacing your totaled vehicle in suburbs will be cheaper than in the city. Insurance company will, of course, use quotes from suburbs area as the most-reasonably-priced estimates. The main purpose in totaling a vehicle is to allow the consumer (the insured person) to purchase the same car that is totaled in an accident within the local market. Since they use three different schemes to figure out real value of a totaled car, a consumer may end up with a cheaper car than the totaled one. It is impossible to be sure what value you will get when your company does not tell you how they determine it.

Fortunately, you can do some smart methods to help yourself and your company to do the value determination. First, you have to produce valid proof that your car was in good conditions when the accident occurred; car in good condition has better value than a wreck. Bring a copy of maintenance records including oil changes and inspection by an authorized mechanic. The records will tell your company that your auto was regularly maintained, meaning it was actually in great shape (in terms of appearance and performance) when the accident occurred. Moreover, you probably had special features installed such as multimedia system, anti-theft system, anti-lock brakes, rear view camera, or 5-harness seat belt. The car insurance company may charge you more because of some special upgrades, so make sure that your insurer includes that in the evaluation.

Another good thing is to find at least three dealers and get quotes on replacement from them; make sure all dealers in your local area or at least within short driving distance from your home. Present the quotes to your insurer and ask your insurer to provide a list of some car dealers who probably can provide a car for the price listed in the quotes. If you are not satisfied with the company’s value determination or you get less than you expect, you can choose to do mediation. So, meaning you present the case to third party (neutral) to get help to settle the dispute, or arbitration, or you can even request a formal inquiry to the court.

2. If you want to cancel your policy, do it officially

Most companies say that consumers can cancel their policies at any date, but you need to notify the insurer concerning the exact date you want to end the coverage. The statement is clear enough; in other words, it says consumers have to notify their companies when they want to cancel their policies. However, consumers often think that when they ignore the last bill before renewal, the company will automatically end the policy. Too bad, this is not how it is done. People can forget and deliberately miss a bill, and the company totally understands that. After this first missed bill, your insurer is going to send you one more bill for premium payment; if you don’t pay the bill, you will be cancelled for non-payment, and the record will hurt your credit score.

What you should do when you want to cancel auto insurance policy is to let the company know that you are canceling. Please make sure that you provide a specific date; it helps you avoid being totally uninsured for a certain period, time, term. The cancellation request will be sent to you, and all you have to do is to put your signature. It is recommended that you carefully check the document before signing it. Some companies may require you to provide valid proof that you indeed have another coverage before they can approve the cancellation. If you’ve financed your car, the dealer needs the updated policy information because valid proof of insurance is required in the purchase contracts.

Credit history still matters

The use of credit information to determine approval and premium rate is still common, despite the fact that some states already started to ban such practice. Some (if not most) companies use the credit history to generate risk score. They believe that it strongly linked or correlated to the likelihood of the consumer reporting a claim. More likelihood of filing a claim is exactly the same with high-risk driver that usually also pays more expensive premium fee compared to “safe-driver” or “the preferred class.” The preferred consumers are those with stable credit card history as it suggests financial stability, meaning they are not likely to miss a payment. People of this category are safer consumers to insure compared to people with shaky credit history. Auto insurance companies do not like consumer who pays sporadically or changes accounts quite frequently.

There are some credit card issuers who offer free credit score checking, but in most cases, you need to pay for the service. Unlike credit score, risk score for insurance-related matters will not be available for you, but both probably indicate the same thing which is financial stability. If you are currently in the market to purchase auto insurance, and it turns out that you have quite unusual activity on your credit history within only certain time frame, you can wait until one month to allow the credit activity to go back to its usual condition. If you cannot keep the credit score stable, prepare yourself to pay more expensive premium fee.

3. Budgeting by installments is not always efficient.

Installments can pay almost all items, and consumers think that it is indeed the best way to budget the expense. When it comes to auto insurance, you can ask the company to divide the annual premium into a monthly basis, quarterly, or on six month. Please put in mind that dividing the annual premium will cost you “fractional premium.” You can consider this additional service fee to arrange the installment. It can be as cheap as $10 per payment; the more you break it down, the most fractional premium to pay.

Most companies will probably offer you to pay in installments since it makes more money for them. When you apply for insurance, it is wise to ask whether there is any additional charge for installments option, and then you can compare the difference. If the fractional premium is not very expensive, then perhaps it is worth it. Another big difference between upfront payment and installments is that certain companies will immediately cancel your coverage if you miss one payment; even worse, they can do it without notification. It is best to pay up front if you can; the entire process will be easier, and you can indeed save few dollars.

Every vehicle model and type has certain premium rate

Of course, you all know that sport cars need more expensive insurance policies than a van, but insurance companies will not tell you the exact numbers. In general, it is true that attractive, sporty, luxurious car with turbocharged engine will go very quickly on the road, and it increases the risk of accidents, but this is not always true considering the discounts for safety features, security features, mileage (especially when you drive it less), etc. Auto insurance companies have a specific system to know the premium for all car models you can buy, based on the system rating by ISO (Insurance Service Office). Every type of car is rated from 3 to 27; higher number means a higher premium. Insurance Service Office says that it will not release the rating system for publication because its clients are insurance companies.

You will not get the rating system from your insurer; you may not even find it anywhere at all. The best thing you can do when you want to purchase a new auto is to ask the insurance how much insurance premium you need to pay for a new car that you want to purchase. If you keep a good relationship with an independent agent, he/she should be able at least to predict the price based on raw calculation.

4. Filing claim increases your premium.

People are always interested to see insurance companies reduce premium fee to attract potential customers. It is indeed one of the best things customers get from the competition in the market, but your insurer can increase the price right away after you file your first claim. The industry standard is to increase premium fee up to 40% of the base rate after first-at-fault accident. With the help of an online car insurance calculator you get a base rate of $500, your premium increases by $200. Some companies have different rules, but there is always a big chance your premium will go up after the first-at-fault claim. Some insurers offer “first-accident forgiveness,” meaning your first actual claim will not affect the premium at all, but the variable and requirement for eligibility can be different from company to company. You should ask your insurer if such discount is available and how to qualify for it.