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Cars image by Ellanorah from Fotolia.com There are a number of secrets to buying car insurance. The calculation of auto insurance rates is a process shrouded in mystery. Almost no auto insurance companies are entirely transparent on how they develop their rates. Rather, applicants are usually asked to answer a series of questions covering vital statistics, personal history and driving record. The companies then use the responses to generate a quote. Yet, there are a number of secrets to this process that have become public information; knowing them can lead to cheaper rate quotes. - Every auto insurance company uses a different formula for calculating premiums. This means they often assess very different rates for the exact same car and driver. To save money, approach as many insurance companies as possible for rate quotes. Also, if you are simultaneously shopping for a car and insurance, realize that insurance companies have a rating system that assigns a different value to each make and model. Don’t assume the rate quoted for one model will hold true for another, even if they are similar.
- It’s a fact that drivers with clean records will pay less for auto insurance than drivers with checkered histories. Most insurance companies will ask you about past accidents and do a background check into your record, accessing any recent incidents. Yet, another kind of record will also affect your payments–your credit score. Generally, drivers with bad credit will pay more for insurance than drivers with higher credit scores, because most insurance companies believe they represent more of a risk.
- Any accident occurring in a car you own will also likely drive up your rates, regardless whether you were the driver. If someone borrows your car and wrecks, and you file a claim and pay a deductible, the insurance company will likely raise your rates, according to MSN Money.
- Many insurance companies offer a plethora of discounts, though they will not always announce them from the outset. Companies can offer discounts for many reasons, such as having an anti-theft device or anti-lock brakes or if you drive few miles. Certain types of drivers can receive a discount, such as AAA members, students with high grades and certain professionals like engineers, educators and scientists.
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Only auto insurance quotes online can give you the maxomum
Posted by Admin on Oct 13, 2011Maybe you don’t realize it, but purchase auto insurance quotes online can has a lot to do with watching TV. Anyone who watches television is profoundly and unfortunately well-known with the fast paced world of commercials. Advertising has...
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Only auto insurance quotes online can give you the maxomum
Posted by Admin on Oct 13, 2011Maybe you don’t realize it, but purchase auto insurance quotes online can has a lot to do with watching TV. Anyone who watches television is profoundly and unfortunately well-known with the fast paced world of commercials. Advertising has become more high-tech, better funded, and sometimes more visually swingeing than the movies. The...
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Keep your budget with economizing on auto insurance
Posted by Admin on Sep 10, 2011If auto insurance premiums are breaking the budget, comparing car insurance quotes online before buying can help reduce costs. Discount auto insurance and raising deductibles may also help families and individuals to reduce premiums and save on car insurance. Compare auto insurance quotes online before buying a policy. Comparison websites allow...
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Does your vehicle need comprehensive auto insurance?
Posted by Admin on Aug 12, 2011Comprehensive auto insurance save drivers if their car was damaged by willful destruction, hail or fallen trees. That’s why most people should have this coverage. Imagine buying a dream car and walking after a hailstorm of spring than seeing the self pockmarked with dents and cracked windshield. Or maybe the car was parked along the street...
Auto Insurance Secrets
Cars that could save on Insurance in this Return-to-School Season
As the school and university year begins for the current year, it would be helpful to know which of the cars could be a good option for your younger member of the family. Insurance companies have always asked consumers to compare car insurance in order to gain good priced insurance policies, however, choosing the right car could also add credits to your pocket. When it comes to younger drivers, choosing right cars often counts as a prominent clause, as insurance companies do not have good notions about doling lower premiums for them. A recent study by a stellar car warranty company shows that Honda Jazz would be a promising choice for the young UK drivers.
Honda Jazz comes with a student budget with its price just under £3,000 and is considered the best car as far as reliability is concerned. This car has the least inclination to break down under dire conditions thus promoting it to become a good car from the insurance point of view. You are likely to get cheaper premium rates with a Honda Jazz for your teenage driver. Vauxhall Astra stands at the second position, closely followed by Toyota Yaris, Micra from Nissan and Lupo from the German giant Volkswagen. All of the abover-mentioned cars exhibit exceptional qualities when it comes to reliability and durability. They also exhibit a good driving mileage while also having lower repairs costs.
Insurance companies launch insurance covers for the younger driving population with marked hesitancy because of their recklessness in driving and following the road rules. Although, the idea to compare car insurance comes out to be a good solution, younger drivers are more likely to find better premiums if they had taken driving lessons along with selecting a good car. Honda Jazz, with its remarkable surviving tendency and cost-efficiency offers better option for teen drivers.
Fewer Teens Believe Texting and Driving is as Dangerous Drinking and Driving
A new State Farm Insurance survey shows that many teens don’t believe texting while driving has as severe an impact on safety as drunk driving. The study, conducted for the insurer by Harris Interactive, shows just how lightly teenagers take the fatal consequences of this dangerous act.
Fewer Teens Believe Texting and Driving is Deadly
Several numbers in the study stood out regarding the ideas that teens have regarding the severity of texting and driving. While many seemed to believe that the act was dangerous, they still feel that drinking and driving is a much more dangerous act.
According to the figures, of the 14-17 year olds surveyed who intend to obtain or already have a driver’s license, only 36 percent strongly agree that if they regularly text and drive they could be killed in a collision eventually. Among the same teens, while 63 percent agreed that texting and driving could result in an accident, 78 percent agreed that drinking and driving could do the same.
Education is Key
The State Farm study found that a huge reason for the belief that drinking and driving is inherently more dangerous than texting and driving is that there is a lack of awareness for the latter. Programs have been in existence for decades dedicated to teaching the dangers of drinking and driving, but with texting being a relatively new concept, many think that the act can be better managed.
There are definitely consequences for texting and driving, not just for the driver’s auto insurance rates, but also the personal safety of everyone on the roads. Luckily, more and more programs like “X the Txt”, along with bans nationwide and more laws to come are helping to create more awareness.
Parents have an obligation to teach their teens what it means to be fully responsible behind the wheel. With the right encouragement–and consequences for not following the rules–you’re sure to send a teen out on the road who is aware, responsible and dedicated to setting the cell phone down while driving.
Touring Caravan Security
Although owning a touring caravan can be a great experience, there’s bound to be one thing on your mind – security. Caravan theft is on the rise and as such you need to take every precaution to protect your (quite pricey) investment, so touring caravan security should always be at the top of your agenda.
Luckily, there are plenty of devices out there that are solely intended to provide extra security. Wheel clamps or hitch locks are a must, and should always be installed whenever your caravan is unoccupied or unhitched from the car. You might also want to consider alarms for added peace of mind, and satellite tracking devices, although expensive, give you even more protection.
Better yet, if you invest in these devices you’ll often be able to enjoy huge discounts on your insurance policy. A lot of companies even specify that you need to have a wheel clamp and/or hitch lock as a minimum before they’ll insure you, but if you invest in other devices you’ll soon get great savings. Some offer as much as a 25% discount (or even more) if you have a tracking device, so investing in one would be well worth it.
You need to consider the storage of your caravan as well. It should be kept securely, ideally at your home behind locked gates, or if not at a registered storage site. You’ll often be able to find added discounts again, so make sure to consider anything that can offer additional security.
As you can see, there are a number of things you can do to ensure your touring caravan security. As long as you have all the necessary devices and remember to store it safely you can look forward to having many happy holidays touring the British countryside and beyond, so never overlook this most important of aspects and you can set off without having to worry.
Rising Admin Fees Increasing Car Insurance Prices
The rising administration fee is increasing the car insurance bills for the motorists in UK. According to a leading financial research company in the country, it is getting increasingly common for the insurance providers to add the administration expenses to the cost of insurance product.
The company has observed that since the year 2004 the scale of administration fees being levied on the customers has been rising almost dramatically. In fact, for the past six years, the number car insurance policies charging admin fees has increased considerably. While it was just two percent policies charging admin fees six years back, it is now seven percent. If we compare car insurance policies charging adjustment fees in the same time, the percentage increased from 17.3 percent to 67.1 percent.
A high percentage of insurance policies charge from the customers a fee for duplicate documents, cancellation charges. In fact, these charges have somewhat institutionalised. Some 4.7 percent of the car insurance policies charge a renewal fee too. If this is not all, the financial research company has indicated that a set-up fee is about £21.77 on an average while an adjustment fee is £18.84.
An insight analyst at the financial research firm has warned that as much as £85 can be added for inflating the already soaring car insurance costs for the motorists. The trend towards car insurance policies charging admin fees from the customers is significant as well as alarming. However, in many cases these admin fees were previously basic services.
A very high number of the car insurance customers will be actually aware that they are paying various admin fees on their policies such as renewal fee, set up fee or duplicate documentation fee. It is important for them to understand each term of their car insurance policies so that they do not end up paying extra than required.
High-Risk Driver Exemption May Not Be Fair, But Here’s How It Benefits You
High-risk drivers are a burden on society. They make our streets unsafe and they pose a risk to your car and your wallet. You could be the safest driver in the world, but one way or another, high-risk drivers are costing you more in auto insurance. You just might not know it.
We all know auto insurance companies make money by charging you a premium to cover your car in case of accidents and other incidentals. The best case scenario for the auto insurance company (and you, for that matter) is that you never actually need to file a claim, because that’s when they lose money.
If you’re a safe driver, you may be eligible for additional discounts besides low auto insurance rates. But what if you’re a bad driver? A high-risk driver? In that case, you are a liability for insurers.
To price that cost in, insurance companies are forced to spread the risk around by increasing premiums across the board, not just on the high-risk driver’s policy. So when an insurer is exempt from having to cover high-risk drivers–like the new entrants in Massachusetts–it actually creates an unfair advantage over their competition.
Competitive Insurance Rates
A primary staple of capitalism is increased competition is bad for business, but good for consumers. The reason is because it is in each party’s own self-interest to seek the best option available. If one party outweighs the other, a shift in the spectrum occurs, and the minority will benefit because there is increased demand in the supply they provide.
Fewer companies selling a certain product means there is less competition and fewer choices for consumers to choose from. Conversely, more companies jockeying for the same position means consumers have the upper hand.
So while exemption for high-risk drivers may not be fair for those insurance companies left in the cold, it actually creates an advantage for auto insurance shoppers:
- Safe drivers only: Going with an insurer exempt from high-risk drivers means lower premiums since they take on less risk as a whole.
- Long-term benefits: Companies that are not exempt will need to innovate ways to overcome the disadvantage and attract customers. This could make the industry more consumer-friendly.
- Safer roads: Non-exempt insurers will also have a smaller customer pool of safe drivers to spread the risk. This means unsafe drivers will have to absorb those costs in the form of higher premiums. The increase in already high fees will add motivation to become a safer driver.
In the case of Massachusetts, the exemption for new entrants end in two years. This provides new insurers with an incentive to enter the market, thus creating more competition benefiting consumers, but also balances the playing field once they are established.
What Is a High-Risk Driver?
Of course, the group left in the cold is the actual high-risk drivers. Their options are limited and they are vulnerable to jacked-up prices from the insurance companies that can and will cover them.
A high-risk driver is anyone whose record indicates they are more prone to car accidents or other incidents:
- Inexperienced drivers: Though they may not have done anything wrong yet, newbies on the road pose as a threat just because they aren’t accustomed to the road.
- Accident prone: This is self-explanatory. If your history shows you are prone to auto accidents then you’re prone to file insurance claims.
- Repeat offenders: Drivers with more than one run-in with the law raise red flags as well. If you’re not following the rules of the road, chances are you’re posing as risk.
- Drunk drivers: If you have a DUI on your record, that one’s going to cost you. If you have more than one, you probably shouldn’t be on the road anyway.
- Thrill rides: If you have a modified muscle car or sports car, some insurers could categorize you as a threat, too.
What To Do If You’re a High Risk Driver
If you’re one of the unfortunate ones deemed a risky driver, go over the list above to see what you can fix. You can try taking extra safety driving courses to try and lower your premiums, or change your ride to one deemed safe by your insurer.
For the inexperienced, there isn’t much you can do about that except get a few more repetitions under your belt. However, you can try to piggyback onto the policy of a friend or relative who is a safe driver. This could help you to lower your premiums, but could also negatively impact what they have to pay.
Keep in mind, though, while premiums are important, there are many other factors to consider when picking the right auto insurer for you.
How to Use Your AAA Auto Insurance to Get Dynamic Deals
Instructions
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shopping list image by Warren Millar from Fotolia.com Create a list of places where you regularly spend money.
Consider your current spending habits, thinking specifically about the type of businesses you frequently patronize. For example, favorite restaurants, retail stores, hotels, movie theaters, amusement parks and museums. Create a physical, or mental list of these establishments. Also include places where you have always wanted to shop, but previously believed you could not afford.
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doing research image by Leticia Wilson from Fotolia.com Compare your list with AAA database of discount providers.
Use the “AAA TourBook” for your state, a “AAA Member Savings Guide” or visit AAA.com/discounts, to determine if any establishments you frequent, are current AAA discount providers. Look for the specific names of shops, hotels, restaurants, movie theater and amusement parks placed on your list, to discover your potential to save money, on any future purchases.
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sign up sign image by timur1970 from Fotolia.com Sign up for discount alerts and information.
Sign up for e-mail alerts, at AAA.com/discounts. E-mail alerts will provide information on current opportunities for savings with discount providers in your specific area. Or if you have an iPhone and prefer, you can download a free application from the website, that will send the same information directly to your iPhone.
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pretty girl going shopping with a crazed look image by Christopher Meder from Fotolia.com Go shopping, and enjoy your savings!
Go shopping at a retailer that you confirmed from your research, as a AAA discount provider. Take your membership card and current state issued, photo identification with you. At the time of your purchase, inform the individual handling your sale that you are a AAA member, and would like to obtain a member discount for the purchase. The cashier will ask for your membership card and photo identification. Verify that you were granted the appropriate member discount, on your sales receipt.
Government Auto Insurance Programs
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a car in a car show image by Gary from Fotolia.com For drivers that cannot afford high premiums, there are low-cost automobile insurance plans available from the government. Automobile insurance is mandatory in all 50 states. Premium rates differ depending on the population of a certain area and on the income of the insured driver. Insurance plans are widely available through private insurance companies, though for those with lower income, there are less expensive public auto insurance options. Those insurance plans may come from either state governments or the federal government. - The state of California offers the California Low-Cost Automobile Insurance Program. The program was initiated in 2000 in Los Angeles and San Francisco. In 2005, the state legislature approved the extension of this program to Alameda, Riverside, San Bernardino, Orange, Fresno and San Diego; this extension took effect in April of 2006. At the same time, the state’s Insurance Commissioner was granted the ability to extend the program to any other county in need. According to the terms of CLCA, the state of California would insure a driver for up to $10,000 of bodily injury per person and up to $20,000 per accident. The state grants up to $3,000 of property damage coverage per accident as well.In order to qualify for CLCA, a driver must be at least 19 years old and have held a driver’s license for three years. The driver’s car must be worth $20,000 or less. The person must be a good driver with no convictions and one point or less listed on her driving record. The applicant must also meet the income requirements.
- The state of Maryland also has a public automobile insurance program, Maryland Auto Insurance Fund. MAIF was established in 1972 with the goal of providing automobile insurance to residents of the state of Maryland who could not afford to purchase private automobile insurance policies. The State of Maryland can offer interested drivers an estimate of their premium online. The amount of the premium will depend on how a driver answers the state’s questions.MAIF pays a minimum of $20,000 per person or $40,000 per accident in case of injury and $15,000 per accident for property damage. The same ratio applies in case another driver involved in the accident is uninsured.
- New Jersey also offers a state-run automobile insurance policy, albeit a much more limited one. It is the New Jersey Special Automobile Insurance Policy. In order to qualify for SAIP in New Jersey, a driver must qualify for Federal Medicaid with hospitalization. New Jersey’s policy provides coverage only for medical care and comes with a $365-per-year price tag. New Jersey drivers can purchase SAIP at almost every automobile insurance provider in the state. The policy covers up to $250,000 in emergency medical costs resulting from an accident, as well as $10,000 death benefit.
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