Your guide to Auto Insurance

Auto Insurance Tips

2008-06-17T07:06:00.000-07:00

In the late 1990’s, as the internet gained popularity, consumers realized the convenience of shopping online for many different things including car insurance. The internet offers endless information about any subject you need to know more about and it even allows you to complete important purchases such as buying auto insurance online.

Buying auto insurance online not only saves you money, but also carries many benefits which make your life easier. Plenty of auto insurance companies offer discounts for purchasing auto insurance online. The reason companies offer discounts is because when you purchase auto insurance online, the costs associated with issuing the auto insurance policy is significantly less costly for the insurance company compared to issuing an auto policy the traditional way.

When purchasing car insurance online, you are saving the insurance company money, therefore, the savings can be transferred to you. Other reasons for saving money by buying car insurance online is that you do not need to waste time and money, such as gas, driving to the agents office. Also some of the fees that are included in buying car insurance the traditional method are often not charged. Some examples are:

* An agent’s Commission
* Broker’s Fees
* Endorsement Fees
* Renewal Fees

Not only are you saving money by buying auto insurance online, you are also getting the benefit of being able to manage your auto insurance online. If you buy auto insurance online, most companies will offer you the convenience of finding answers to your questions online and making changes to your policy online. That makes life easier for the most of us. Finding important information such as legal information can also be easily researched before buying auto insurance online.

One of the best reasons for purchasing car insurance online is that you can compare insurance rates from many quality companies in order to make sure you are receiving the cheapest car insurance rates. Many websites offer the ability to compare car insurance online from many quality auto insurance companies such as Progressive, AIG, GMAC, Infinity and more. One such website is OnlineAutoInsurance.com which allows you to compare online auto insurance from many quality auto insurance companies with one single process. You can even buy your car insurance online and make changes, payments and find answers online and even speak to a licensed agent if you wish.

INDEX

2008-06-17T07:05:00.001-07:00

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Guide to Cheap High Risk Auto Insurance for Bad Drivers

2008-05-08T02:50:00.001-07:00

Some people wear their speeding tickets like badges of honor. “What, you’ve only had one ticket your entire life? I got two on the way here!”

Nobody wants to be thought of as the proverbial Sunday driver, but there are things that are more important than your reputation as a speed demon. One of which is your safety. Another is your bank account - speeding tickets aren’t cheap, and they’re getting more expensive almost each and every year. Third, is your freedom - your license could be suspended, or ultimately, you could end up in jail.

The fourth and final reason is the subject of this article, and it’s a double whammy combining elements of reasons #2 and #3. The more points you get on your license, the higher your insurance premiums are going to be. If they get high enough, you may be unable to afford insurance. If, like many people in this situation, you need a car in order to get to work, you have to make the decision, “Should I break the law and risk going to jail, or should I quit my job and risk starvation and homelessness?”

Which Would You Prefer - Unemployment or Incarceration?

As bad a fate as losing your job may be, it pales in comparison to landing in jail. True, you’ll have a home and three square meals a day, but that’s beside the point. It is never a good idea to drive without insurance - take the bus, ride a bike, or if both of this options are inapplicable, pay a coworker to chauffer you. The damage to your ego and pocketbook, even if he mercilessly razzes you and charges you $20 a day, will be nothing compared to the pain of a stay in the county jail.

Options for the “Uninsurable“

If you’re unable to afford your car insurance premiums and you know that the reason they’re so high is your driving record, the first step is to change your behavior. Stop speeding. If you’ve been convicted of driving while intoxicated, resolve to never again take the wheel after even one drink - adopt a zero tolerance policy. While the changes in your behavior will take some time to materialize in the form of reduced premiums, you need to make the necessary changes without delay.

If you’ve made those changes and you still can’t afford car insurance, consider some other changes that could reduce your premiums. Do you live in a seedy part of town? Try moving to an apartment in a nearby, quiet neighborhood. The fewer cars there are on the roads near where you live, the lower the insurance company’s risk. The lower their risk, the lower your premiums. Otherwise, a year or two (and several tickets) from now, you’ll wish that you did.

If you have a sporty car, consider trading it in for a more mundane coupe or sedan. This act alone could make your insurance more affordable.

Finally, the best thing that you can do to save on your insurance premiums is to shop around. Maybe your hometown insurance agent views you as a captive customer, or maybe he just doesn’t like you or is unwilling to take the time to really evaluate your needs. Fortunately, there are plenty of insurance agents.

Full Coverage vs. Liability Only - The Car Insurance Dilemma

2008-05-08T02:49:00.001-07:00

At the opposite ends of the car insurance spectrum are full coverage and liability only. In reality, there are many steps in between these polar opposites and there are even multiple levels of full coverage and liability only. However, car insurance can best be understood by first fully comprehending the differences between these two extremes.
Liability Only Car Insurance

Car insurance is regulated at the state level, and therefore, each state has its own guidelines concerning the minimum car insurance coverages that are required. One thing that is for certain, though, is that all states have laws regarding the minimum amount of liability coverage you must have in order to legally drive your vehicle. But what is liability coverage? It is insurance that covers damage you cause to other people (outside of your car) and their property.

State minimums are expressed in three parts. For example, Colorado's legal minimums are 25/50/15. The first number refers to the maximum amount your insurance company will pay for injuries sustained by a single individual, per accident; the second number refers to the maximum amount your insurer will pay for all injuries in a single accident; and the third number is the maximum amount your insurer will pay for property damage, per accident. So for Colorado, this translates into $25,000 of bodily injury coverage per victim; $50,000 of bodily injury coverage per accident; and $15,000 of property damage coverage per accident.

Keep in mind that these are the state minimums - it may be wise to carry coverage in excess of them. Keeping with the Colorado example, if you were in an accident that caused $100,000 in bodily injury damages to another motorist, your insurance would only cover the first $25,000. For the other $75,000 the injured motorist could come after you! This may or may not apply in so-called "no-fault" states, of which there are 12.

Full Coverage Car Insurance

What is known as "full coverage" is actually two forms of coverage on top of liability - comprehensive coverage and collision coverage. A motorist can elect to have comprehensive coverage without collision, but not collision without comprehensive. A car insurance policy with liability and comprehensive coverage would be something in between the legal minimum and "full coverage."

Comprehensive coverage is sometimes referred to as "other-than-collision" coverage, or OTC. Obviously, it covers damages to your vehicle that arise from something other than a collision. Examples include theft, fire, weather damage, etc., but the insurance companies confuse the issue by including accidents with animals as part of comprehensive coverage, rather than collision. The logic behind this is that comprehensive is designed to cover things that are less likely to be your fault.

Collision coverage is an optional add-on to comprehensive - although it isn't optional if you still owe money on your car! Finance companies require borrowers to carry full car insurance coverage on their vehicles.
Getting Something for Your Money - That's the Name of the Game

Too many people look at insurance as an annoying expense. In reality, it is an investment - a financial product - and it should be viewed as such. Whether you want liability only, full coverage, or something in between, you need to make sure you are not paying more than you have to for the coverage you need. The best way to ensure you're getting a good value is by comparison shopping online. In many cases, customers are able to save money while simultaneously increasing their coverage.

Factors That Affect Your Car Insurance Rates

2008-05-08T02:48:00.000-07:00

The number crunching nerds who got made fun of for wearing pocket protectors, playing Dungeons & Dragons, and obsessing over their rotisserie baseball teams have found a way to get revenge on the world - they now work as car insurance actuaries!

Actuaries are high-powered math geeks who develop formulas that estimate the probability of insurance loss. These formulas are then used to determine car insurance rates. So the next time you think about stuffing a dweeb inside a locker, think twice - he might be setting your car insurance rates some day!
Major Factors That Actuaries Take Into Account

First and foremost is your driving record. Actuaries believe that someone who has been in a lot of accidents, gotten a lot of tickets, or filed previous claims is likely to file claims in the future. Therefore, these people pose a greater risk to the insurance company, and whenever you pose greater risk, you pay for it.

Second are demographic factors. Your age, for example, is very important. People under 25 present much more risk to insurance companies (with people 16-18 paying the most, and people 22-25 paying the least among them), and thus pay higher car insurance rates. But older is not always better - people over 65 are also thought of as "risky," and therefore, they often pay rates comparable to their grandkids.

The other major demographic factors are gender, marital status, and geography. Married women pose the least risk to insurers, and unmarried men present the most. The gender bias in favor of women is strongest among young people, with teenage boys paying much higher car insurance rates than their female counterparts. As for geography, if you live in an area in which more claims are filed, your rates will be higher.

The final major factor affecting your car insurance rates is your car itself. Is the car safe? How many claims have been made by people with the same or similar cars? What is the value of the car? How much damage does it cause to other cars (or other people) in the case of an accident? All of these issues are computed by the actuaries and their formulas.

Comparatively Minor Factors That Affect Your Car Insurance Rates

First among the less important factors is your credit score. While it was not taken into account at all in the past, your consumer credit file is growing in importance to insurers. In fact, it may soon register as a major factor.

Other minor factors include your occupation (some professions produce statistically safer drivers than others), miles driven per year, distance to your workplace, years of driving experience, and whether or not you've ever let your car insurance lapse.

Furthermore, a variety of discounts are available to offset your car insurance costs. There are discounts available for having a theft device, having anti-lock brakes, having multiple cars insured by the same insurer, and having your homeowner's or renter's insurance with your car insurance provider. Students can even receive a discount for getting good grades!
Adding It All Up - What Can You Do to Save?

All of these factors are taken into account to determine the overall risk you pose to your insurer. Few people fit the perfect profile. For example, you could be an unmarried 55-year-old engineer who lives in a large city (cities are more dangerous than rural areas) and has bad credit. Or maybe you're a married 22-year-old honors student with perfect credit who drives a Hummer. Everyone's circumstances are different, and it is the sum of all factors that determine your car insurance rates.

So what can you do to save? First and foremost, it pays to be informed. If you don't understand the various forms of car insurance coverage and how they work, you can't possibly hope to get the best deal. Use web resources such as carinsurancerates.com to learn all you can about car insurance, and then make sure you understand your current coverages. Find your declarations page that explains the limits, deductibles, and scope of your policy, and then shop around online to see if you can save money. Many people are actually able to increase their coverage while saving on premiums at the same time.

Does Your Bad Credit Have An Impact On Your Insurance Rates

2008-05-08T02:47:00.002-07:00

Everyone knows that their credit affects whether or not they’re approved for a home or auto loan, but did you know that your credit score could have an impact on whether or not you’re chosen for a professional job? Increasingly, employers are using an applicant’s credit report as a means of discerning his or her honesty, integrity, and responsibility.

As Americans use more and more credit, and more families fall into debt, the importance of your credit score increases exponentially. In fact, even car insurance companies use your credit score in determining the premiums that you pay.

What Does Your Credit Have To Do With Your Insurance?

Insurance companies gather all possible data points and use them to develop profiles. Over the years, they have determined that individuals with less than stellar credit are more likely to get in accidents and file claims. Furthermore, insurance companies are more likely to incur the costs associated with late payments, insufficient funds, and premature cancellations from customers with poor credit.

What You Can Do To Lower Your Rates

If you’ve made mistakes with credit in the past, take comfort in knowing that you’re not alone. In fact, as the number of Americans with poor credit increases, the old profile of the credit-constrained insurance customer as a high-risk driver is likely to change. After all, there is considerable difference between maxing out a credit card and running a red light - and time should enlighten the insurance industry to this fact.

Meanwhile, it’s important to note that your credit history is far from the only factor in determining your insurance rates. In fact, it is a minor factor when compared to your driving record, the type of car you drive, your age, marital status, where you live, and a myriad of other profiling factors. The best thing you can do to lower your insurance premiums is to be a safe driver who avoids tickets and other traffic incidents. A safe driver in the middle of bankruptcy is a much better risk for insurance companies than a convicted drunk driver with stellar credit.

Steps To Improve Your Credit

Insurance is a financial matter, and if you’re taking the time to investigate your insurance options, chances are that you’re ready to make other changes too. Improving your credit is not an impossible feat, but it will take time, discipline, and commitment.

First, you should contact your creditors and attempt to negotiate payment plans or settlements. Although many such plans - particularly settling for less than 100 percent of a debt that has been sent to collections - will show up as negative information on your credit report, it is far worse to let interest continue to mount on debts you have no ability to pay. You would be surprised at how cooperative most creditors can be. Remember, your creditors are businesspeople first and foremost, and most of them will welcome the opportunity to work with you in order to avoid going to court. When lawyers get involved, typically everyone loses.

Secondly, you need to stop relying on credit and develop a plan to live within your means. This doesn’t mean that you should swear off the use of credit altogether, though. After all, in order to rebuild your credit, you will have to show that you can be responsible, and the only way to do that is by paying creditors in a timely manner.

Third, you must resolve to never repeat the mistakes of your past. Credit is a tool to be used, but not abused. More than just your car insurance premiums, credit has an effect on so many aspects of every day life. Taking responsibility for your actions and developing a plan is a first, important step. Congratulations for making it this far!

Do You Really Need to Purchase an Insurance Plan On Your Rental Car

2008-05-08T02:47:00.001-07:00

Renting a car can be a great way to travel. However, many people shy away from renting cars because they aren't sure how the insurance works. Some people think that the rental company is out to scam a few bucks, and some believe that you're required to purchase the insurance. It's not hard to get flustered at the rental counter, wondering whether you need additional insurance, trying to calculate if you can afford it, and it can ultimately put a damper on a vacation.
Taking Control of Your Car Insurance

The first thing that you should do if you're considering renting a car is to understand your own car insurance. Check out your policy or call your car insurance company and ask them for details. Do you have the state minimum or do you have full coverage? It's important to be aware of everything that your car insurance covers. If you speak with an agent, tell him that you are planning on renting a car, and ask if your insurance is enough, or if you should buy a supplement. Since your car insurance company doesn't get any benefit if you buy insurance from the rental car place, you'll get a straight answer.

It's also important to know what products the rental car agency might offer you. The most common product is a collision damage waiver. A collision waiver protects you against damage and theft. Make sure you read the fine print, though. Many collision waivers on rental cars don't cover damage if you're driving while intoxicated or even speeding. It always pays to follow the rules! It's important to purchase this waiver if you only carry minimum coverage on your own car, but if you have comprehensive and collision coverage on your own car, you probably won't need a collision waiver at all.

You may also be asked about personal accident insurance. If you have health insurance or if you're covered by personal injury protection on your own car insurance plan, you shouldn't need this additional insurance. They may also ask you if you'd like to buy personal effects coverage. This covers you if any of your belongings are stolen from the rental car. If you have homeowners' or renter's insurance you may be covered for theft that occurs outside the home. If you're planning on taking items in your rental car that you want protected, like a video camera or a laptop, call your home insurance agent and ask if you'll be covered by your existing policy before you decide to buy additional coverage.
Covering All the Bases

If you plan to rent cars with some frequency, you'll probably want to call your car insurance company and deal with them. It's much cheaper to increase your personal car insurance coverage than to buy the rental company's insurance, which can cost up to $20 a day. If renting a car is a once-in-a-blue-moon event for you, you might want to invest in the additional insurance products offered by the rental agency. Remember that rental insurance is an insurance product, just like your regular car insurance. Doing your homework can save you big money.

If your current car insurance doesn't support your car rental lifestyle, consider doing some comparison shopping. Spending a few minutes on carinsurancerates.com can save you hundreds of dollars. When you're shopping for car insurance, you have to consider all of the angles, even your car rentals!

Determining how much Auto Insurance Coverage you Need

2008-05-08T02:46:00.002-07:00

The Three Basic parts to an Auto insurance Policy

1: Other Party:

Auto Insurance Bodily Injury (BI) Liability and Property Damage (PD) coverage is Legally required in most states today. (BI & PD) Most people understand that they need BI and PD, but they have no idea how to determine how much coverage they need.

Try this simple question: What if your car was involved in an auto accident tonight where heaven forbid, someone else was injured or killed? Remember, everything you own is in the back seat of the car with you and is at risk in a lawsuit! So, what do you think their family would sue you for? $15,000? $25,000? $100,000 or even maybe a Million dollars! Where would you get the money to pay them?

Perhaps the Equity in your Home would help? How about your Savings and/or Investments? You could even have up to 25% of your wages attached to pay the award in most states! Are you prepared to sacrifice everything you own to pay an award due to this accident? If not, read on for how to choose the auto insurance coverage you need.

2: You and Your Family:

Now let's turn the above accident around. For some unfortunate reason, you or a loved one is the one who is injured or killed in an auto accident. Where would you get the money if the person who hit you did not have auto insurance or not enough auto insurance? Medical bills can be covered if you have insurance-quotes.html">health insurance. But health insurance doesn't cover loss of life, pain & suffering or permanent disability.

Maybe you have a life insurance policy through your employer or your own individual life policy. Is the benefit amount sufficient to cover your family if your loved one is killed? But even if you have life insurance, what pays for the misery, the pain and suffering, maybe the fact you or a loved one can't walk or use their arms again?

You might have a disability insurance policy through your work if you're lucky or had good financial advice. But disability insurance doesn't pay for loss of life, pain & suffering, permanent loss of your legs, arm or hand.

The only coverage that pays for these things is a part of an auto insurance policy known as Un/Under-insured motorist coverage. You can only buy as much coverage here as you have in Liability coverage. Your auto insurance agent should be able to help you determine the exact amount you need.

3: Your Car

Comprehensive and Collision Coverage are the third part of an auto insurance policy and are sometimes referred to as "Full coverage." Basically the difference is this: If you run into the tree you are covered by Collision coverage. If the tree runs into you (hypothetically of course), then you are covered by comprehensive coverage. Comprehensive also covers broken windshields, fire, theft and vandalism. The higher deductible (risk) you take here, the lower the premium. Use the savings here to purchase higher limits in the coverages that protect your assets and your family.

The bottom line to determining proper auto insurance coverage is, of course, the money available in your household budget. An excellent place to start in determining the proper auto insurance coverage for your family is to meet with your local auto insurance agent.

Most cut-rate companies concern themselves with one thing only: Price. Tell them what coverage you have and they'll see if they can give you the same coverage for less. You become the insurance professional. If this is the only need you have then that is ok. If not, you need to seek the advice of a professional to help you determine the proper amount of coverage you need and how best to accomplish it.

Review these tips for auto insurance coverage to make sure you have enough to protect your family.

common Types Of Discounts

2008-05-08T02:46:00.001-07:00

AIR BAGS And AUTOMATIC SEAT BELTS Automatic seat belts are those annoying belts that choke you when you close the door. Some companies might discount up to 30% off Personal Injury Protection and Medical Payments coverage if the driver and passenger sides have air bags and automatic seat belts. This discount is given because the insurance company knows you'll be belted in every time, hence your risk of injury in a crash is much less than someone else who is not belted in.
ANTI-THEFT/ALARM Some companies give discounts off the Comprehensive premium when an active anti-theft device is present. This usually means a burglar alarm. Some companies may discount more if the alarm arms itself automatically when you turn off the vehicle. This 5% discount usually does not add up to much, but combined with other discounts listed here, will certainly make a dent.

ANTI-LOCK BRAKES (ABS) If you have Anti-lock brakes (ABS), you may take 5% or more off Bodily Injury and Property Damage coverage. DRIVING SCHOOL Some companies give drivers under age 25 who complete a state approved drivers education class up to 10 % off on Bodily Injury, Property Damage, Medical Payments, Personal Injury Protection and Collision coverage.

SAFE DRIVER Sometimes if you're a safe driver, which usually means 3 years with no points, you qualify for additional savings on different types of coverage. The insurance company will let you know. Usually on your insurance bill you'll see something that says "Your premium reflects the maximum discount allowed for safe driver".

MULTI-CAR or HOME & CAR If you insure 2 or more vehicles on the same policy some companies may give you a discount. They may be equally generous if you have your home and both cars insured with them as well.

SAFE VEHICLE Some insurance companies classify certain cars as "Safe Cars", meaning there's statistical data to suggest that there's less risk of injury by way of design, air bags ABS, etc. Find out if your car qualifies for this discount.

common Types Of coverages

2008-05-08T02:45:00.000-07:00

BODILY INJURY AND LIABILITY This coverage protects you from claims made against you which you are obligated to pay if you cause bodily injury to someone in a crash. This also covers your defense costs. Bodily Injury Liability limits usually specify 2 dollar amounts, the first amount limiting payments to a single person per accident and the second amount puts a cap on the total amount of payment for all persons injured per accident.

COLLISION Collision coverage pays for the damage to your vehicle by collision with another vehicle or fixed objects like trees, signs, buildings, etc. This coverage is what gets invoked when the accident is your fault.

COMPREHENSIVE COVERAGE This is your "fire and theft coverage, and covers damage to your car for anything other than a wreck, like tornados, floods, vandalism, theft, hitting a deer, etc.

CAR RENTAL If your vehicle is in the shop for more than a day for repairs resulting from an insurance claim, Many policies with this coverage will pay $15 or more per day for usually up to 30 days, or some maximum value to rent a car while you wait for repairs. Higher limits are available.

FULL GLASS In many states, there is no deductible on windshields, because it's against state law to drive with a damaged windshield. But for the rest of your windows, you still have to pay your comprehensive deductible before they'll pay for any broken glass. You can pay more for Full Glass coverage to eliminate any deductibles for broken glass. Some companies give you full glass at no extra charge as a selling feature.

MEDICAL COVERAGE Covers medical expenses from your crash injuries and covered persons in your car, no matter who was at fault.
NO-FAULT and PERSONAL INJURY PROTECTION (PIP) In most no-fault states, PIP covers medical and rehab, work loss, funerals, and other expenses incurred by you, your family, passengers in your vehicle, and pedestrians injured by your vehicle. Not every state has this coverage, and it pays for damages regardless of who is at fault in the accident. That's why they call it no-fault.

LIABILITY COVERAGE Similar to Bodily Injury coverage. Liability covers only the damage caused by you to someone's property, car, fence, lawn, telephone pole, house, etc. When you are at fault in a wreck, this coverage is invoked when the other driver makes a claim against your insurance to repair their car. TOWING If your car breaks down, this coverage will pay for a tow truck or roadside assistance to get your car going again. This usually pays about $50-$75.

UNDERINSURED or UNINSURED MOTORIST One of my personal favorites. EVERYONE should have this coverage, because it protects us from all the loser morons out there who refuse to insure their cars. Here in Florida, uninsured drivers is worse than a problem, it's a plague. I know so many people who got burnt royally because of uninsured drivers. In Florida you have to show proof of insurance to renew your tags. But many people just take out a policy, send in proof to the state, then let the policy lapse after a month, and then the policy gets canceled. If I was king, the insurance companies would notify the state, who would then send a tow truck to impound these losers' cars, and they don't get them back until they renew the insurance, and pay the towing fees on top of that. Underinsured Motorist pays for your injuries up to the policy limit when the other driver either has no insurance, or their lame coverage can't pay for you injuries or property damage. This coverage usually includes hit and run drivers as well.

Car Insurance Rates Vary For Each Insurance Company

2008-05-08T02:44:00.000-07:00

When shopping around for auto insurance, you might want to do a little research, and try not to listen to snappy television commercials and cartoon mascots. The budget insurance companies that inundate the airwaves may guarantee lower prices, but their coverage might not be as inclusive as the traditional companies.

Budget insurance companies offer basic coverage, and serve the needs many frugal consumers. However, making insurance claims may be more difficult than you expect. There is a reason that certain companies can offer low-ball rates: they typically make up for it with lack of coverage. Filing claims with them can be exhausting marathons filled with red-tape. While every insurance company has its troubles, those that pitch you a price far below industry standards, will likely have lower standards of their own.

Its best to shop around among companies and not always go for the cheapest rate. Several factors should be included in your decision making:

* Examine the various deductibles and how they affect your premium. Many companies will have very low premiums, but their deductibles may be unrealistic for your budget. Choose a deductible that will fit with your finances.
* Research the company history and any consumer complaints. There are several resources available to check the customer service records of the various insurance companies. While all companies will have complaints, beware of those with excessive, or repeated complaints.
* Uncover all discounts that you may be eligible. Larger companies tend to offer more discounts than smaller, and each year there are new discounts to be discovered.
* If you are a driver with a not-so-clean record, you may want to find out the companies “forgiveness period” which is the time (typically years) that it takes for violations and other accidents to be wiped from your record and lower your premium.
So, when shopping around for car insurance, it is best not to skimp. Two old adages ring very true: “You get what you pay for”, and “If it sounds too good to be true, it probably is”.

Car Insurance Rates Go Down When You Get Married - Marriage Means Responsibility

2008-05-08T02:42:00.002-07:00

So your wedding went a little over budget, huh? The honeymoon wasn’t cheap either. And what’s this you hear about a “marriage penalty” on your income taxes? There’s no doubt that tying the knot can be one of life’s more expensive rites of passage, but the good news is that you should be able to save some money on your car insurance.

Why Insurance Companies Care About Your Marital Status

It’s the morning after your Big Day. You wake up for the first time as a married man or woman, and you don’t really feel all that different. But in the eyes of auto insurance companies, you’re an entirely new and better person.

Since insurance companies calculate premiums based on lots of hard data and facts, you would think that they would realize that you’re the same driver you were the day before. But all of that data tells them that married people are much safer risks - they drive more responsibly, they get fewer tickets, and they’re much less likely to file claims. As a result, married people pay lower premiums than their single counterparts for the same coverage, all other things being equal. Although your insurance agent probably didn’t send you an official wedding gift, you might feel inspired to write her a thank you note after seeing the savings on your next bill.

Other Ways To Lower Your Car Insurance Premiums Now That You’re Married

If you and your spouse each have auto insurance through different companies, consider combining your policies under one agency. In fact, now would be a great time to shop around for the best insurance deals you can find. Comparison shopping for auto insurance has been known to save people lots of money while maintaining their current coverage, so shop around for the insurance that best fits your needs.

You should be able to get a multi-policy discount, and save even more if you’re able to find a company that also handles homeowner’s or renter’s insurance. If you’re planning on starting a family, perhaps now would be a good time to look into life insurance, for which you may qualify for an even deeper insurance discount.

If you’re shopping around for a new home or an apartment to share with your new spouse, ask your insurance agent which neighborhoods qualify for the lowest car insurance rates - where you live and drive affects not only your homeowner’s or renter’s insurance, but also your auto rates. If you’re looking at a pair of apartments and you’re unable to decide which to choose, the one that qualifies for the lower insurance rates might be the better option.

Simple Ways To Keep Your Rates Low

First and foremost, be a good driver. If your new spouse has a lead foot, convince him or her to slow down - it could save you money.

Secondly, always review your insurance needs at least once a year. Don’t be a captive customer of your insurance agent - shop around. Insurance is a financial product, and you should regard it as such. Always be sure you’re getting the best coverage for the least amount of money possible.

Car Insurance Rates Drop at Age 25 and Continue to Decrease

2008-05-08T02:42:00.001-07:00

Once a young adult reaches 21 years of age, there aren’t many more milestones to look forward to until retirement age. Unless you count the dramatic decrease in auto insurance premiums that 25 year old drivers receive. Male drivers can expect savings of approximately 20%, while females will save about 12-15%.

Studies show that teenage drivers are the riskiest drivers on the road, seconded by senior-citizens over the age of seventy. For the most part, teenagers are inexperienced drivers who haven’t had hours of practice on the road. They haven’t been caught in a speed trap, been bumped at a stoplight, or had someone leave their turn-signal on and not make a turn. There is a certain amount of road-awareness that comes with being a seasoned driver.

Unfortunately, some young drivers believe they are invulnerable, taking unnecessary risks and driving recklessly, which endangers themselves and other innocent drivers. Of course not every teenager is a daredevil, but automobile accidents are the number one leading cause of death for people aged 16 to 24.

The number of reckless teen drivers is perhaps outnumbered by the safe and responsible teenagers on the road. However, even the careful teen drivers have a higher rate of simple fender benders and traffic violations, making them a liability to insurance companies.

For these reasons, reaching the age of twenty-five is seen as a milestone of stability to the insurance companies. Many people this age are either graduated from college or hold a secure job, some are married, and for the most part they have begun their adult lives and tasted responsibility.
So, how does one lower your rates, before reaching the age of 25?

* Buy only the coverage you need. If you have an older vehicle, you don’t necessarily want to pay for collision or comprehensive coverage. Take the bluebook value and add in your deductible and compare it to the premium. Chances are it will be cheaper to forgo the coverage and buy a replacement vehicle.
* If you are a parent, you can add the teenager to your policy which will not be as expensive as an individual policy. However, if you own an expensive car, it may be cheaper to purchase the teen an older, economical vehicle and go with the individual policy.
Of course, don’t skimp on vital coverage just to save a buck. You don’t want to be paying large medical bills or lawsuit settlements until you are retirement age. Once again, the best advice is to simply drive safe, and have good coverage from a responsible company.

Car Insurance Glossary - Terms Like Passive Alarm, Waiver, Gap, Rental Coverage & More

2008-05-08T02:41:00.000-07:00

Welcome to our insurance glossary of car insurance terms. If you have any questions about terms that are not included on this page please contact us.

Additional Interest
Anti-Theft Device
Bodily Injury Liability
Car Insurance Coverage
Claim
Collision Coverage
Collision Deductible Waiver
Comprehensive Coverage
Continuous Coverage
Continuously Insured
Credit Rating
Deductible
Declarations Page (Dec Page)
Defensive Driver Course
Depreciation
Drive-Other-Car Endorsement
Earned Premium
Effective Date
Emergency Road Service
Endorsements
Exclusions
Extraordinary Medical
Expiration Date
Extended Non-Owner Liability
Financial Ratings
Financial Responsibility Laws
Full Coverage Car Insurance
Funeral Benefits
Gap Insurance
Garaging Location
Good Student Discount
HEV: Hybrid Electric Vehicle
Hit and Run
Income Loss
Indemnity
Independent Agent
Insurance Premium
Insurance Score
Insured
Judgment
Liability
Liability Coverage
Lien Holder
Limits
Medical Payments Coverage
MVR (Motor Vehicle Record)
No-Fault Insurance
No-Fault State
Non-Passive Alarm
Passive Alarm
Personal Auto Policy (PAP)
Personal Injury Protection
Physical Damage
Pleasure Use
Policy Lapse
Policy Period
Preferred Risk
Premium
Primary Driver
Primary Use
Private Passenger Auto
Property Damage Liability Coverage
Pro-Rata Cancellation
Property Damage Liability Insurance
Rental Car Reimbursement
Secondary Driver
Short Rate Cancellation
Split Limits
SR-22
Stacking
State Minimum
Steering Restraint
Term
Tort
Towing Coverage
Underinsured Motorists Coverage
Uninsured Motorists Coverage
Unsatisfied Judgment Fund
Usage
VIN: Vehicle Identification Number

Additional Interest: A person or other entity (i.e. a corporation) that has an insurable interest in your vehicle, and may be named as such in your insurance policy. For example, when you finance a car through a bank, the bank is considered to have an "additional interest" in the car.

Anti-Theft Device: Any device designed to reduce the chance of a vehicle being stolen, or aid in the recovery of a vehicle if it is stolen. Examples include car alarms, keyless entry, starter disablers, "The Club," etc.

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Bodily Injury Liability: Legal liability for causing injury or death to another person.

Car Insurance Coverage: There are many "coverages." Liability, medical payments, uninsured motorists, collision, and comprehensive are the five major types of car insurance coverage.

Claim: The request for reimbursement that you make to the insurance company when you’ve been injured or your car has been damaged.

Collision Coverage: This is the coverage that provides protection for your car in the event of damage by an inanimate object, such as another car, a tree, or the side of a building.

Collision Deductible Waiver: If you have this type of coverage with your car insurance policy, your insurance company will pay your deductible if you are in an accident that is the fault of an uninsured motorist. This is not available in all states or with all policies.

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Comprehensive Coverage: This coverage provides protection in the event of damage not caused by a collision (that kind of damage would be covered by your collision coverage). These other kinds of damage can include theft, fire, damage by extreme weather, etc.

Continuous Coverage: The length of time that you have maintained the legally required insurance on your vehicle. Lapses in coverage can result in higher rates.

Continuously Insured: The amount of time that you’ve been insured, without gaps. You can switch companies as many times as you want, but if you’ve let your coverage lapse, you could end up with higher premiums.

Credit Rating: Each individual consumer has a credit file with each of the three major credit bureaus - Equifax, Experian, and TransUnion. Each company uses a formula developed by Fair Issac's & Co. (FICO) to determine the consumer's credit rating. Insurers consider your credit rating when determining your insurance rates, since their own advanced statistical models have determined that consumers with good credit are better insurance risks, and vice versa.

Deductible: This is the amount that you are required to pay towards any damages. Your car insurance will cover any costs above this amount. The size of your deductible can greatly affect your car insurance costs.

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Declarations Page (Dec Page): This is a one or two page document that details all the facts about your car insurance, such as your name and address, the vehicles covered, the deductible, the types of coverage, etc.

Defensive Driver Course: Classes offered or approved by the DMV designed to enhance defensive driving skills. Most car insurance companies offer discounts to customers who successfully complete these courses.

Depreciation: Age and wear can cause your car’s value to depreciate, or go down, over time.

Drive-Other-Car Endorsement: An endorsement or "rider" that broadens the definition of "covered auto" to include vehicles owned by others that are operated by the insured.

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Earned Premium: The portion of the premium that is "consumed" during a partial policy term. If you terminate your policy early, you are only responsible for the earned premium portion (plus expenses), regardless of what you may have paid.

Effective Date: The date your coverage begins. You can find this on your dec page.

Emergency Road Service: This is optional coverage that provides services like tire changing, lock-out help, gas delivery, or towing.

Endorsements: These are also known as riders. They are changes to your coverage that are made after the effective date, like adding another car or raising your deductible.

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Exclusions: Situations that are not covered by your car insurance. Your policy will show your specific exclusions.

Extraordinary Medical: This is optional coverage that protects you above and beyond your standard medical benefit coverage. Usually this would cover you if you were hospitalized long-term or permanently disabled.

Expiration Date: The date and time that your coverage ceases. Normally, the time is 12:01 AM - meaning one minute after midnight.

Extended Non-Owner Liability: An endorsement or "rider" that extends liability coverage for specifically named people operating any non-owned vehicle.

Financial Ratings: This term refers to the credit-worthiness and financial stability of insurance companies. AM Best, Standard & Poor's, and Moody's are the three agencies that assign financial ratings to insurance companies.

Financial Responsibility Laws: Each state requires motorists to be financially able to compensate the victims of bodily or property damage for which they are liable. Liability insurance is the easiest way to meet these requirements, however, those who can afford to do so may opt to post bonds instead.

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Full Coverage Car Insurance: This is a confusing term. Many people think that having "full coverage" means that they will be covered no matter what happens to them. In reality, it only means that you have the full legal requirements needed in your state. Depending on your home state, it could be very little coverage in reality.

Funeral Benefits: This is optional coverage. If you were to die in a car-related accident, the insurance company would pay for a portion of your funeral costs.

Gap Insurance: Optional coverage for the difference in the amount owed on a vehicle and its replacement value. For example, if your car's replacement value is $4,000, but you still owe $5,000 on it and it's totaled, your insurance company will only pay you $4,000 (unless you have gap insurance). The company that lent you the money for your car will require an immediate payment of $5,000. Gap insurance makes up this difference.

Garaging Location: It is assumed by car insurance companies that you keep your car at your home address. However, if you primarily keep your car in a different location, make sure your insurance company knows. It can affect your rates.

Good Student Discount: Most insurers provide discounts to high school students who receive good grades. The reasoning behind this discount is that insurers have found that students who are responsible enough to get good grades are generally more responsible drivers, and thus they pose less risk for the insurers.

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HEV: Hybrid Electric Vehicle. If you drive an HEV, your rates may differ from those for a standard car. Make sure your car insurance company knows if you drive an HEV.

Hit and Run: An accident caused by someone who flees the scene before police arrive and without leaving insurance information.

Income Loss: This is optional coverage that protects you if you are in an accident that leaves you unable to work. Your insurance company can help compensate you for lost wages.

Indemnity: Restoration to the financial place you were prior to the accident. Insurance is designed to make you "whole again," but not to "enrich" you. Thus, it gives you indemnity - making you "whole" again.

Independent Agent: An agent who does not work for just one insurance company. Instead, he or she searches the market for the best place for his/her client's business.

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Insurance Premium: Rates charged to an insured, reflecting the insurer's expectations for loss and adding in an element of profit. Premiums are typically paid monthly, but discounts are often offered for paying in advance, either quarterly, semiannually, or yearly.

Insurance Score: Score given to each insurance customer, based on complex statistical models, in order to determine his or her insurance risk. The better your insurance score, the lower car insurance rates you can expect to pay.

Insured: The person/people covered by an insurance contract. Insurance agreements commonly refer to the "insured" or "insureds."

Judgment: A decision by a court of law, typically ordering one party to pay another party a sum of money. Additional legal action is normally required in order to ensure that judgments are enforced. Many judgments go unenforced. When enforced, a the winner of a judgment can potentially garnish the wages and "attach" the bank accounts of the person or entity at fault.

Liability: A legal obligation to perform or not perform certain acts. Most commonly, this refers to monetary sums that must be paid in order to compensate for damages to people and/or property. The term can also be used to assign "responsibility" or "fault."

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Liability Coverage: Insurance to cover damages that the insured is ordered to pay as a result of a court's decision holding the insured liable for injuries caused to people and/or property.

Lien Holder: A person or other entity (i.e. a corporation - usually a bank) with a legally securable interest in your vehicle. For example, a lending institution that loans you money for the purchase of your car has a lien on it.

Limits: The maximum amount an insurance company will pay. For example, if your collision coverage limit is $10,000, but your car sustains $15,000 worth of damage, you are liable to pay for the $5,000 worth of damage that goes beyond your insurer's limit.

Medical Payments Coverage: Insurance coverage that pays for damages sustained to the insured and his or her passengers without regard to fault. Also pays for damages suffered by the insured and covered family members for injuries sustained as a pedestrian at the hands of non-exempt vehicles.

MVR (Motor Vehicle Record): Also known as a "DL Printout," your MVR contains information about your driving record - tickets, accidents, convictions, etc.

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No-Fault Insurance: Type of insurance in which the insured's own insurance company provides indemnity for damages sustained to the insured's own person and property without regard to fault. The purpose of no-fault insurance is to expedite the insurance claims process and keep cases from clogging the legal system.

No-Fault State: Any state that has at least some form of no-fault insurance as a matter of law. No state has "pure" no-fault insurance, but Michigan comes the closest.

Non-Passive Alarm: Alarm in which action on your part is required in order for it to be activated. Most insurers will offer a discount if your automobile is armed with a non-passive alarm - but a slightly greater discount if it has a passive alarm.

Passive Alarm: Alarm in which your action is not necessary in order for it to be activated. Most insurers will offer discounts for cars armed with passive alarm systems that are even greater than cars with non-passive alarms.

Personal Auto Policy (PAP): Standard car insurance policy contract that includes liability, medical payments, uninsured motorist, and physical damage protection.

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Personal Injury Protection: Often called PIP, this insurance applies to no-fault states and covers the basic expenses incurred by the insured or his family in an automobile accident without regard to fault.

Physical Damage: Refers to damage to your vehicle. Such damage is normally covered by either collision or comprehensive insurance.

Pleasure Use: A vehicle that is not typically used for commuting to work or for any business purpose, but rather, primarily for enjoyment.

Policy Lapse: Any period of time in which your car is not insured. Policy lapses result in higher rates.

Policy Period: Time period in which the policy is active. Also referred to as "policy term."

Preferred Risk: Refers to an individual who is considered to present less risk to an insurer than the average motorist.

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Premium: An individual's price for car insurance.

Primary Driver: The person who drives the car most frequently. If two or more people drive a car, the primary driver's record is taken into greater account than the secondary or tertiary drivers.

Primary Use: How the covered auto is most commonly used. Insurers typically classify vehicles into one of three categories - commuting (most personal autos), business use (corporate-owned or used by the self-employed for business purposes), or pleasure use.

Private Passenger Auto: A four-wheeled motor vehicle that is subject to registration and used for private (non-business) use. Examples of vehicles that would not be considered private passenger autos include dune buggies, UPS trucks, busses, ATVs, etc.

Property Damage Liability Coverage: Insurance in which the insurer pays for damages to another party's property for which the insured is held liable.

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Pro-Rata Cancellation: Termination of a policy before its expiration date. In this case, policyholders are responsible only for the earned premium. Every dollar in excess of the earned premium is considered "unearned," and is to be refunded to the policyholder. Insurance companies may, however, charge small fees for fixed expenses - see "short rate cancellation," below.

Property Damage Liability Insurance: This is insurance coverage for damage caused to other people's property. Damage to one's own property is considered "physical damage" and covered by collision and comprehensive coverages.

Rental Car Reimbursement: A common rider or endorsement in which the insured is reimbursed for the cost of a rental car while his covered auto is unusable.

Secondary Driver: A driver other than the primary driver who also is insured for the particular automobile. The secondary driver's driving record is given less weight in determining the insurance rates that the insured will be charged.

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Short Rate Cancellation: This term refers to the non-prorated portion of a policy that is terminated early and must be refunded. Insurance companies are allowed to allocate expenses to the front end of a policyholder's term, and therefore, the daily cost of an insurance policy goes down each day.

Split Limits: This term refers to a set of three numbers dealing with liability insurance. For example, 35/50/10 means $35,000 in bodily injury liability coverage per individual; $50,000 in bodily injury liability coverage per accident; and $10,000 of property damage liability coverage per accident.

SR-22: An official document showing proof of "financial responsibility," most commonly needed by people convicted of certain major traffic violations in order to have their driver's licenses reinstated.

Stacking: Applies to underinsured motorist / uninsured motorist coverage, and allows the insured to multiply the limits of each coverage by the number of cars being insured.

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State Minimum: Each state has minimum requirements on the insurance coverages that motorists must carry in order to legally drive on the public roads. These minimums are expressed by three numbers; the first and second referring to bodily injury liability limits per person and per accident, respectively, and the third number referring to the maximum property damage coverage per accident.

Steering Restraint: An anti-theft device that makes it difficult for potential thieves to access your car's ignition system. The most commonly known steering restraint is "The Club." Most insurers offer discounts for cars fitted with steering restraints.

Term: The period of time for which a policy is active.

Tort: A legal wrong, most commonly negligence or acts of omission. Courts provide remedy for torts in the form of suits for damages.

Towing Coverage: Optional insurance coverage that provides payment for towing (but not repairs) if your car breaks down or is disabled as result of an accident.

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Underinsured Motorists Coverage: Insurance that covers damages caused by motorists who meet the state's minimum insurance requirements but still do not have enough coverage to satisfy damages.

Uninsured Motorists Coverage: Insurance that covers damages caused by uninsured or unidentified (hit-and-run) motorists.

Unsatisfied Judgment Fund: Many states have funds that reimburse victims injured in automobile accidents who are unable to collect from the liable party.

Usage: Refers to the purpose for which you use your vehicle. Different rates are established for different usages. Example usages include "pleasure," "commute," and "business."

VIN: Vehicle Identification Number. Each car has a unique VIN, which consists of 17 numbers, and is necessary for receiving insurance coverage.

Car Insurance Deductibles Explained

2008-05-08T02:40:00.000-07:00

When it comes to car insurance, it’s important to understand what your policy covers and what it does not. Most car insurance companies allow you to choose options which best suit your needs. The deductible is one of the most important options you will select, as it has a direct affect on how much your insurance premium will cost.

A car insurance deductible is the amount of money you agree to pay out of your pocket. This money must be paid before your insurance carrier will pay your claim. Let’s say you are involved in an accident that causes $5,000 worth of damage to your car. Now, let’s say your chosen insurance deductible is $500. You will pay $500 toward the damage repair expense and your insurance company will pay the remaining $4500.

Car insurance deductibles apply to comprehensive and collision coverage. Comprehensive covers damage caused to your vehicle by anything other than another vehicle. This might include damage caused to your car through hitting a deer. It will also cover damage causes by vandalism or acts of nature, such as hail or wind damage. Comprehensive insurance also covers the theft of your car.

Collision covers damage caused to your vehicle due to a collision with another car while on the road. Both of these types of coverage carry their own deductible.

Car insurance deductibles for comprehensive and collision coverage typically range between $250 and $1500. The higher deductible amount you chose, the lower your insurance premiums will be. Choosing a deductible of $1500 could potentially save you between 10 and 20 percent off your insurance premiums.

However, it’s important to choose a deductible that you can afford. It’s also important for you to deposit the deductible amount you have chosen into an interest-bearing savings account so that you can easily access it should you ever need it.

There’s nothing worse than being involved in an accident, then not being able to afford to get your car repaired because you don’t have the deductible. Many Americans simply do not have $500 to $1500 lying around and oftentimes find it difficult to come up with their deductible when they need it.

If you are unable to deposit the full amount of your deductible, at minimum put some money into an account each week. This could be as little as $10 if that’s all you can afford. Hopefully, you will never need the insurance deductible. However, knowing it is tucked away in the bank can provide you with considerable peace of mind.

Most car insurance companies provide deductible calculators at their website. Through a series of questions, they can help you determine which deductible is best suited for your budget. If your car insurance carrier does not offer this tool, check competitor’s websites to see if they offer it.

Even if you do not change insurance carriers, there is no reason you cannot use all the tools available to help you make an informed decision.

Before you make your final decision, take time to compare the different plans available. Do the math and determine how much each policy will cost you, along with listing the pros and cons of each scenario.

If you still find yourself confused or in doubt, speak directly to an insurance agent. Most car insurance websites now allow you to speak directly to an agent via instant messaging chat. Others provide a toll-free number so you can speak to a representative without incurring long distance charges.

Car Insurance Coverage Types - Collision, Liability, Comprehensive

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Have you ever had “full coverage car insurance” on one of your vehicles? You might think that you have, but what exactly was meant by “full coverage?” For example did you have both collision and comprehensive? How about personal injury protection, uninsured motorist, or underinsured motorist insurance? Were the contents of your car insured against theft? What if your car were damaged in a parking lot, would it be covered?

If you don’t know the answers to these questions or even the meaning of some of these terms, then you’re like the vast majority of American drivers - all of whom are legally required to purchase auto insurance. Since you have to buy car insurance, it only makes sense to understand the basic types of coverage that are available to you.

Minimum Legal Requirements

All states require drivers to insure against damages that they may cause to other drivers’ property and persons. Most states do not require drivers to insure against damages they may cause to themselves.

Since insurance laws are determined at the state legislative level, the minimum legal requirements vary by state. In all 51 cases (including the District of Columbia), the minimums are expressed in three-part, split-form. For example, the minimum requirements for Alabama are expressed as 20/40/10. This means that drivers must insure for up to $20,000 of bodily damage per individual in an accident, $40,000 total bodily damage per accident, and $10,000 damage to automobiles and other property. You can find the minimum requirements for your state at this web site.

Comprehensive Coverage

Comprehensive insurance covers almost every type of non-traffic related damage. Accidents involving other cars or roadside signage are not covered by comprehensive, but instead are part of collision coverage.

Accidents in which the driver strikes an animal are covered by comprehensive insurance, not collision. At first this may seem counterintuitive, but insurance companies reason that you’ll have a much greater chance to avoid another car than dodging a deer running directly in front of you. In other words, comprehensive insurance tends to cover damages that you have virtually no control over.

Damage to a car as a result of theft (i.e. a broken window) is typically covered under comprehensive, but items stolen from inside of the car usually aren’t. Luckily, stolen items are normally covered by your renter’s or home insurance.

Other unavoidable situations, such as a tree branch falling and denting your hood, hail cracking your window, or your entire car being destroyed by fire, are covered by comprehensive insurance.

Collision Coverage

Collision coverage insures against damages to your car as a result of flipping over, or a collision with any object (including another car) other than an animal. Collision coverage usually costs about twice as much as comprehensive and almost always has a higher deductible. For these reasons, many drivers elect not to purchase collision insurance, which may or may not be a wise idea. If your car is four years old or newer, it is probably worth enough money to justify the added premiums. Then again, if your vehicle is that new, chances are you have a loan through a bank or other financial institution. In this case, you will be legally obligated to purchase collision insurance in order to protect the financial interest of the lender.

How To Find The Insurance Coverage That’s Right For You

When you are in the market for a new car, you don’t just go to one dealership. By the same token, you shouldn’t choose insurance agents or an agency without first shopping around. Car insurance is an incredibly competitive business, which is great for the consumer. If your hometown agent thinks you’re an unsophisticated buyer, he may not give you the best deal. Use resources like this web site to comparison shop and find the coverage that’s right for you, at the right price.

Auto Insurance Online - Taking Advantage Of Special Discounts Using The Internet.

2008-05-08T02:36:00.002-07:00

When considering auto insurance today some people find it easy to compare auto insurance companies and to buy auto insurance online. You can use the Internet to your advantage and save money using a few simple tips in regards to auto insurance discounts that are over looked by many people.

With easy online access, you get quotes from several auto insurance companies very quickly.

Auto insurance companies are very competitive online to earn your business.

The first and most important aspect to consider when you buy auto insurance online is "what does the policy cover?"

Be sure you understand what these are, before you buy auto insurance online. You can have the auto insurance company send you a complete definition of the terms, so you will understand what you are getting when you buy auto insurance online. This is very important when you compare auto insurance companies online.

With a high deductible (the amount you pay before the insurance kicks in) is one of the best ways to save money when you buy auto insurance online. Most auto insurance companies can shop for a company that can save you the most money for your situation.

The equipment on your vehicle can also save you money and get you a discount when you buy auto insurance online. If your vehicle has anti-theft, anti-lock brakes, passenger/driver air bags, and automatic seat belts, you can save money on your auto insurance policy.

With a little education on the different aspects of how to buy auto insurance online, it can be well worth your time and effort to shop online for auto insurance.

When you are shopping for cheap auto insurance there are several aspects that will change your insurance quote. Just by knowing what an auto insurance company will consider, might make it easier for you to save money on your insurance rates.

An obvious aspect that can be changed is your driving habits. Getting traffic violations frequently can be changed simply by slowing down.

Another aspect that you can change is how many insurance claims you file. With a good driving record, you can get cheap auto insurance rates much easier.

If you are considering buying a new vehicle, you can change the model you have your eye on. A red 350Z convertible sports car will cost more than your typical family sedan. Most people know this, but you may want to consider what the cost of cheap auto insurance will be, before you purchase a new vehicle.

Yes, there are a few aspects that we can not change when shopping for auto insurance rates.

Your age is an aspect that can't be changed when considering auto insurance policies.

When you are shopping for auto insurance there are some aspects that you can change to help save money on insurance rates.

With a good driving record, you can get cheap auto insurance rates much easier.

A medical doctor can pay less for auto insurance than a car salesman. Having a good credit rating can also help you get cheap auto insurance.

Some of the other aspects that are considered when you are shopping for low cost auto insurance policies are, how long you have been driving, miles driven to work, miles you drive per year and how long you have had auto insurance.

Tips to Help You Save on Car Insurance

2008-05-08T02:36:00.001-07:00

people complain about the cost of their auto insurance--hardly surprising, given that a typical policy costs at least several hundred dollars a year. Depending on your age, driving record, and other factors, your annual premium can be significantly more than that. So how can you lower your premium and save yourself money?

If you own a car and drive it, going without insurance is generally not an option. In most states, you are required by law to purchase a minimum amount of liability coverage. And you should probably have more than just the bare minimum if you want to provide yourself with adequate protection. There are steps you can take, however, to reduce your auto insurance costs without having to cancel your policy. Some or all of these steps may be appropriate for you, depending on your circumstances.

Specific ways to save money on auto insurance:

1. Shop around. One of your first steps should be to shop around. A particularly good time to investigate your alternatives is when your current policy is about to be up for renewal, especially if you find that your premium has gone up. You may be surprised to learn that auto insurance premiums for the exact same coverage on the same car can vary widely (by hundreds of dollars) between different insurers, even in states that regulate auto insurance rates.

2. Increase your deductible. For many people, raising the deductible on their insurance.com/Auto.aspx">auto insurance is a good way to cut the cost of the policy. Sometimes you can reduce your annual premium by 10 percent or more if you increase your deductible from, say, $250 to $500. If you do this, however, make sure you have the financial resources to handle the larger deductible when the time comes.

3. Keep an eye on your credit report. Your credit history is an important factor for most auto insurance companies. Many studies have shown a correlation between your credit history and the risk to an insurance company. Paying your bills on time and maintaining a good credit history will allow you to enjoy lower auto insurance rates.

4. Drive less. If you drive less than a certain number of miles in a year (e.g., 7,500), you may qualify for a low-mileage discount. If your insurer offers this discount, try to limit your driving as much as possible. If you commute to work, use public transportation instead of driving. When you go away on vacation, fly or take the train.

5. Don't use your car for business purposes. Since work-related driving generally subjects you to higher premiums than pleasure driving, it may be in your best interest to stop using your car for business purposes.

6. Drive more safely. You may be eligible for a price break on your policy if you maintain a clean driving record for a specified period (usually three years). A clean driving record generally means no accidents, moving violations, drunk driving convictions, etc., during that period. The best way to qualify for the applicable discount is to drive carefully and defensively at all times.

7. Buy a low-profile car. Cars are rated on a risk scale for auto insurance purposes. In general, sports cars and other high-performance, flashy vehicles are classified as higher risks because they are common targets for thieves and vandals, and because statistically, the people who own them tend to drive more recklessly. If you own such a vehicle, you will likely pay a higher premium than if you owned a station wagon, sedan, or other low-risk vehicle.

8. Move. If you live in a rural community with little crime and traffic congestion, your premium will generally be lower than if you live in an urban area where your car is more likely to be stolen, vandalized, or involved in an accident. Granted, you shouldn't move just to cut your auto insurance costs. However, this may be one of many factors in your decision if you're thinking about relocating from the country to the city.

9. Keep your car in a garage. Cars parked in garages are less likely to be stolen, vandalized, or struck by other vehicles. Using a garage to store your car may entitle you to a slight premium reduction.

10. Have safety/anti-theft devices installed. CYou may receive discounts on your insurance if your car is equipped with one or more of the following options: anti-lock brakes, automatic seat belts, and airbags. Similarly, anti-theft devices such as car alarms and tracking systems (e.g., Lojack) may also get you a discount because they reduce the chances of your car being stolen or vandalized.

11. Inquire about multifamily/multipolicy discounts. You may receive a discount from your insurance company if you buy more than one type of insurance through that same company (e.g., auto and homeowner's). A discount may also apply to your auto insurance if you insure multiple cars under the same policy or with the same company.

12. Other discounts Other discounts may be available if you meet certain criteria. Examples may include discounts for taking a defensive driving course, being a AAA member or staying with the same auto insurance company for a number of years. These discounts vary by company.

10 Easiest Cars to Get Insured

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The first thing an insurance company looks at when offering you a quote is your driving history. Have a spotless one, and you’ll definitely get a better rate than a guy who has a glovebox full of tickets.

The insurance companies also considers the sort of car you drive, including its sticker price, the cost to repair the vehicle, replacement value, safety features, and how well it will withstand an accident. The lower the cost of claims for a vehicle, the lower the rates, and therefore the easier it is to get insured.

Here is a list of the top ten least expensive vehicles to insure, that have a sticker price of less than $50k, according to the Highway Loss Data Institute (HLDI):
1. Oldsmobile Silhouette
2. Pontiac Montana
3. Saturn L Series Wagon
4. Chrysler PT Cruiser
5. Saturn L Series Sedan
6. Chevrolet Venture
7. Chevrolet Astro
8. Saturn Vue
9. Jeep Wrangler
10. Oldsmobile Bravada

The HLDI also lists vehicles that are the least expensive based theft, injury and collision claims. The least expensive theft claim models are:
1. Buick LeSabre
2. Mercury Grand Marquis
3. Buick Century and Saab 9-5 four-door (tie)
4. Buick Park Avenue and Pontiac Montana (tie)

The least expensive injury claim models are:
1. GMC Yukon XL 1500 two-wheel drive
2. GMC Yukon two-wheel drive
3. Chevrolet Tahoe two-wheel drive
4. GMC Yukon XL 1500 four-wheel drive
5. GMC Sierra 2500 four-wheel drive

The least expensive collision claim models are:
1. GMC Yukon two-wheel drive
2. GMC Yukon XL 1500 two-wheel drive
3. Chevrolet Tahoe two-wheel drive
4. Ford Excursion two-wheel drive
5. Ford Escape two-wheel drive 10 hardest cars to get insured

As a rule of thumb, the larger cars and trucks are usually the easiest and cheapest to insure, as long as they do not do heavy damage to other vehicles in an accident. If you total another person’s vehicle, your rates will definitely increase.

The cost to insure a specific make and model will fluctuate as time passes. Especially if it is brand new model to hit the market. Insurance carriers will examine how the vehicle performs in crash tests, as well as the average payout on accident claims. Insurance companies also look at how durable or dependable the vehicle is, based on basic maintenance and repair costs.

Things You Should Know About Auto Insurance

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Dealing with the ins and outs of auto insurance can be as tricky and confusing as trying to untie the Gordian knot. Although we can`t help you with the knotty Gordian problem, the following recommendations could help you figure out some of the more complicated points of auto insurance.

1) Determine appropriate coverage.
Help control the price you pay, just ask American Insurance Association executive Dave Snyder. For example, Snyder notes that half of your auto insurance bill covers liability and "that has to do with how you are going to use the vehicle, such as for commuting to work and your driving record. If you`ve got a clean driving record, you figure to pay less for insurance than you would if you had a speeding ticket on your record. You can control the other half of your premium which covers damage or loss to your vehicle, comprehensive and collision coverage."

2) Shop around for insurance.
"In most states," Snyder reports, "there are hundreds of insurers competing for business, so it`s possible to save hundreds of dollars by obtaining quotes from different auto insurance providers." Picking up on Snyder`s theme is his AIA colleague, Nicole Mahrt. Mahrt urges you to work with your insurance provider to get more than one quote. "It pays you to shop around, especially if you feel you`ve been paying too much."

3) Look for insurance discounts.
"Many insurers will give you a discount if you buy two or more types of insurance from them, for example auto and home insurance," confirms John Marchioni, senior vice president of Personal Lines for Selective Insurance, in Branchville, N.J. More cost-saving suggestions from Marchioni: "Ask about discounts for air bags, anti-lock brakes, daytime running lights and anti-theft devices."

4) Consider taking a higher deductible.
"You could lower your insurance bill by increasing your deductible," Mahrt says. "But just make sure you can pay the higher deductible if you file a claim."

5) Look into "stacking" coverages if you file an insurance claim.
Insurance trade group officer Daniel Kummer explains that stacking uninsured/underinsured motorist coverages means "you can collect from more than one of your auto insurance policies. Most states prohibit this practice, but there are about 19 states that either allow stacking or don't address the issue either through legislation or litigation," according to Kummer, director of personal insurance for the Property Casualty Insurers Association of America. "Be sure to check your auto insurance contract to see if it's allowed. "Be advised that you`ll likely pay a higher insurance premium if you have stacked coverage. "It could be 10% to 30% more depending on the litigious nature of the state in which you reside," says Kummer.

6) Check with your insurance provider BEFORE buying a car.
"Your premium is based in part on the car`s sticker price, the cost to repair it, its safety record and the likelihood of theft," answers Selective`s John Marchioni. Remember to avoid shopping by price alone. "You want an agent and a company that answer your questions and handle claims fairly and efficiently," emphasizes Marchioni, senior vice president of Personal Lines for Selective Insurance.

7) Notify your auto insurance company as soon as you change companies.
"Be sure to cancel your old policy," suggests PCI`s Dan Kummer. "Do it the same day, but don`t cancel your old policy until you`ve lined up a new contract. That`s important because some states like New York will fine you for the number of days you go without insurance." One last thought from Kummer on the subject: "Most auto insurers specify in your contract that you can terminate your policy any time you want by informing your company in writing about the date you wish that coverage be terminated or you can do that over the phone.

8) Pick the insurance payment option that best fits your budget.
"Generally, most companies will give you the ability to pay over time, but that comes at a price," says Kummer. "Your payment could increase a few dollars each time you pay by installment. Insurers can accept payments monthly, quarterly, or every six months, what ever is most convenient for you. Remember, though, that the more you break down your payments, the more the cost adds up."

Reasons to change your Car Insurance Company

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1. Paying too much for Car Insurance, its time to seek change. 2. When you must think of a new car insurance company.

Auto insurance is not a luxury but a necessity. And in order to get the maximum advantage experts recommend that you should shop around for auto insurance every 2-3 years. As policies change and newer players enter the market there are so many new attractive auto insurance schemes that you could benefit from. You should consider changing your auto insurance when:

* You are availing a huge mortgage to buy property and the bank or institution offers you a lower interest rate on home and auto insurance through their tie -ups.

* You have moved to another state where the auto insurance rules are different and you will make a saving by transferring your insurance to a new car insurance company. Or when your old car insurance company does not offer service in your new state.

* You want to cut costs and are trying to run your life on a budget. Shop around online for competitive auto insurance rates and change the car insurance company to one who offers the best deal.

* You have purchased a new car and the dealer is offering free insurance for three years. New cars have lower insurance rates so it is best for you to do a comparative study and find a car insurance company that offers a great deal. Car insurance rates vary greatly between car brands and types; find out which car insurance company offers the maximum coverage for the lowest rate.

* You are getting married and now will have two cars. Think about cancelling your individual car insurance policies and getting a joint one for both cars. Similarly if your family is growing and you have many cars used by adults as well as kids, ask auto insurance companies about group insurance schemes that will cover all the cars and drivers in your home. Most companies offer great discounted rates for combining car insurance policies.

* You are retired and now a senior citizen. Car insurance companies offer discounts to those who are 55 and above. There are a great many discounts available for a car that has a good insurance claim record, a car that is not driven every day, and a car that is single driver driven and well maintained.

* You are eligible for coverage through your new job. Many large companies have facilities like auto insurance schemes at premium rates lower than the market. If you are working in such a firm then you must consider cancelling your old policy and taking a new one with the car insurance company chosen by your workplace.

* When the rates being paid by you are high and your car insurance company shows no inclination to offer you a competitive rate. If you are paying too much for car insurance its time you changed your car insurance company to one that is offering you great facilities and rates.

Whatever the reason to change your car insurance company, the World Wide Web has sites where you can compare offers as well as quotes. Sites like LowerMyBills.com give quote comparisons in a click. So, read all you can about car insurance and the companies and determine which car insurance company offer will suit you best.