Are Auto Insurance Rates the Same for a Leased vs. Purchased Vehicle?

Leasing a new car can be a great opportunity – the deals for great cars with a low monthly payment are advertised everywhere. There are many things to consider before leasing a vehicle: one area often overlooked is the impact a leased vehicle will have on auto insurance rates. Insuring a leased vehicle is not so different from insuring an owned vehicle. Here are a few of the key differences:

Automobile Liability:

Since the leasing company is the owner of the car, it is possible that they will be named in a law suit that is brought against you for damage or injury to a third party. To cover this possibility, the leasing company will as to be added as an “Additional Insured” on your. This addition will not affect your auto insurance rates – it is similar to the loss payee part of an auto insurance policy.

You will be required to carry a minimum amount of liability insurance, typically $100,000 per person, $300,000 per accident for bodily injury liability and $50,000 for property damage liability. If you do not currently carry that much liability, you will be required to increase your limits. Depending on your age, driving record or geographic location, increasing liability limits can have a dramatic impact on your auto insurance rates.

Physical Damage: Comprehensive and Collision.

Leasing companies require that you carry full coverage for physical damage with a minimum deductible (usually $500). Auto insurance rates for Comprehensive and Collision coverage depends on the vehicle, among other things. If the car you are considering is more expensive than the car you have, you may be surprised about the increase in premium.

Lease Gap Insurance:

What is gap insurance? If a leased car is totaled in an accident, the insurance settlement may not be high enough to pay off the lease because of rapid deprecation in the first few years of car ownership. Gap insurance will pay the difference between what you owe and what you get from the insurance company.

Leases often require that you carry it. In fact, gap insurance premiums may be built into your lease payment amount. Be certain to read your contract carefully and know what is included in your payment.

Many insurance carriers offer gap insurance as an add-on to their auto policies. Many lenders will offer this valuable coverage for no additional fees for the first year or two of a loan. If the lease does not include gap insurance, shop around a bit for the best auto insurance rates; the cost of gap insurance varies widely.

If you are uncertain about the impact of the lease on your auto insurance rates, contact fill out your zip code at the top of this page for a hypothetical auto insurance quote.

New Mexico Auto Insurance: Insurance Companies May See a Rise in 2010 According To Qualitas Compania De Seguros

Living in New Mexico and driving your car in the state means that you have to follow the strict laws and policies structured for automobile owners. Buying New Mexico auto insurance is mandatory for all and if caught without the essential documents, you may be fined or even jailed. So do not avoid buying car insurance, but opt for affordable policies instead. Insurance companies faced a downturn recently due to the recession, but Qualitas Compania de Seguros, a leading auto company in New Mexico has stated that with car sales increasing in 2010, insurance companies can also look forward to a rise in insurance costs.

How to look for affordable auto insurance
Start off by visiting an online auto insurance website which offers free auto insurance quotes. There are companies which offer multiple quotes from nationwide insurers. Once you have filled out online forms, the quotes will be mailed to you from various companies. Then you can start comparing the quotes on the basis of the price, company profiles, and user feedback. You should also know that the companies consider various factors when they are offering you a quote. They consider your driving record, accidents history, type of vehicle you own, and various other factors. After you get various quotes, you also get an opportunity to find the best deal for yourself.

Differences in New Mexico laws from others
Drinking and driving – if you are found to be driving in an intoxicated state, your insurance policy stands void.

Named Peril – the auto insurance policies will cover only certain ‘Named Peril’ or those events which have been stated in the insurance policies clearly. If you are involved in any event outside these stated terms, you will not be covered. Events like minor vandalism or theft of auto parts are not covered in all auto insurance policies in New Mexico.

Visit our learning center for more information about auto insurance.

Ways To Get A Cheaper Auto Insurance Quote

We all want to save money in whatever way we can. If you own a vehicle or are planning to purchase one, you are then required by law to obtain auto insurance and its cost will depend on several factors. Below are some tips and key points you must remember to ensure that you obtain cheap car insurance.

First, invest in anti-theft devices. Most new vehicles will already have anti-theft devices in them. Some may have to be manually operated while some are automatic but regardless of how they function, you will usually get discounts on your auto insurance premium if you have them. In particular, some states will provide extra discounts for features such as window sketching. Second, aim for a higher deductible. Your deductible is the amount that you must pay when you have a claim against your insurance. The higher your deductible, the lower your auto insurance quote will be. Take your time to gather a number of quotes with different deductibles to compare how much difference the price makes.

Third, consider low mileage discounts. Insurance companies offer cheaper quotes for drivers who have lower mileage. Try to gauge how often you will be driving your car. Are there chances wherein you could carpool or occasionally work from home? Reducing your annual mileage will lower your insurance premium. Fourth, look for group discounts. Many companies will offer discounts on auto insurance if you are affiliated with certain clubs or organizations such as sororities and credit unions. Fifth, consider comprehensive storage coverage. If you will be storing your vehicle for a period of time, you can save money on your insurance by just keeping the comprehensive coverage during that storage period. Since your vehicle will be stored, there are less chances of it getting into an accident or needing liability coverage.

Sixth, consider a yearly policy. Opting for a yearly policy may extend your savings on your auto insurance. Choosing a yearly policy instead of a six-month policy will give you a fixed rate for an entire year. Lastly, always compare multiple quotes. Get quotes from several companies to ensure that you find the best rates. Do not settle with the first quote that you get as the price difference between quotes from different companies could range from $50-$200. It may sound like a tedious job but to save lots of time, go online and get quotes from a company that already compares quotes from the top insurance companies. The process will only take a few minutes of your time. Consider all of these factors and the more equipped you will become in obtaining affordable auto insurance that will keep you safe but won’t break the bank.

How An Online Auto Insurance Quote Is Calculated

The formula used to calculate an auto insurance premium is quite complex and will depend on how much information you provide. Some online companies will only ask very basic info such as age and car model, while some will look into credit history and driving records. There is a general code that is used for calculating auto insurance rates.

The state you live in is the most important factor in determining the cost of auto insurance since the laws and regulations on insurance are implemented at state level. Aside from state of residence, other primary factors involve personal and demographic components such as age, gender, and marital status. On the other hand, secondary factors involve credit history, driving record, place of residence, plus the make and model of your car.

It is the objective of the insurance company to determine the amount of risk you may pose to them if they insure you. Based on the studies they’ve done, it can be determined that those who are 16-24 years old are involved in a disproportionate number of accidents. Those who are 25-49 years old have fewer accidents, while those who are 50-64 years old have the fewest accidents. But those who are 65 tend to be involved in more accidents and by that time they reach 75 years of age, they become more prone to accidents than teenagers. In terms of gender, females have fewer accidents while young males under 35 are known to have more accidents. Married men however, who are 18-24 years old get into fewer accidents than single men.

Among the secondary factors, driving record is the most crucial one. Insurance companies believe that if you’ve ever been in an accident, there is a great chance that you’ll be in another one. And if you’ve had a second accident, the greater the likelihood is that you’ll have another accident. The more accidents you have, the higher the car insurance quotes you’ll get. Credit history is also used to determine auto insurance rates. Those with poor credit will cost more to insure. Your location plays an important role as well. It indicates how much traffic you can encounter every day, and how high the incidence of car theft is in your area. Lastly, the make and model of your vehicle will determine how often similar vehicles get into accidents and how much it would cost to repair them. With all of these factors combined, the insurance company will assign you a rating factor in which they will multiply the base rate for the different types of coverage. All insurance companies will use these basic criteria to calculate quotes but some of them will weigh the varying contributing factors differently.

How An Auto Insurance Quote And Your Monthly Premium Are Connected

When purchasing an auto insurance policy, the first piece of information that most consumers will receive is an auto insurance quote. This can be done online or over the phone, and typically represents the cheapest auto insurance that the company has to offer. The consumer, intrigued by the low auto insurance premium, makes further inquires with the company, and eventually arrives at an agreement that includes all of the coverage that they need. However, when their first monthly car insurance bill arrives, they note that the rate quoted bears little resemblance to the auto insurance premium they are expected to pay. For many, this comes as a shock, as it seems only reasonable that the original quote and the eventual premium should be the same. Unfortunately, this is not often the case. While the two are connected, there is a wide gap which lies between an initial quote and the eventual payment.

Auto insurance quotes are generated on a low-cost, best-case scenario. They include the lowest coverage levels mandated by the state, and assume a clean driving record, well-maintained car and a host of other factors that often do not all occur together. Quotes will often say things like “as low as” or “starting from.” These give an indication that although the rate could potentially be that low, it will only occur under the most optimal of conditions. Once a basic auto insurance policy has been inquired and agreed upon, most insurance providers will begin speaking to their clients about more specific add-on coverage that they may want, or may encourage clients to increase the minimum liability that they are paying. While all states require some form of personal and property liability coverage, the basic amounts are often far too small to actually cover everyone and everything damaged in an accident. Having extra coverage is very useful, but will also increase the basic monthly premium paid. Similarly, add-on coverage such as uninsured motorist coverage, which is not mandated by all states, can be very useful but will result in a discrepancy between the original quote and the eventual price.

At its heart, an auto insurance quote represents the best monthly premium for a customer under ideal conditions. Their actual monthly rate is a reflection of their initial quote, but with extra coverage, add-ons, and their specific car details and driving history factored in. The two numbers are related, but the chances of paying the rate advertised in a quote are slim to none. While this may seem unfair, it is better to have more coverage in an accident than the basic amounts offered, as a higher premium may cost the consumer initially, but can save a great deal in the long run.

What A Good Online Auto Insurance Quote Should Include

Looking for an auto insurance quote online can be a convenient, low hassle way to get car insurance quickly. It lets you compare the costs, benefits and coverage of several different companies in a relatively short period of time. But what do you look for in a good online quote? There are actually several important things that should appear in a good online quote. Personally, you may not need every single one of them (or need them in reduced amounts) but in general they are the things most people will need if they are ever in a car accident. ??Liability coverage is very important. Every good auto insurance quote has one. Liability protects you and your assets when you are the at fault driver.

Liability covers the damaged car and any person physically injured in the crash. Your insurance company pays the other driver and your money is protected. Collision covers damage to your car when you hit another car or object. It pays to fix your car minus your deductible. It also protects you if another car hits you. Comprehensive insurance is also important as it covers what collision doesn’t and it protects against loss if your car is stolen or damaged. If you have a newer car, one in excellent condition or if your car is leased or financed, you may need this type of coverage. Uninsured and under-insured motorist coverage should also make the list. This coverage keeps you from financial loss if your car is damaged by a driver who either has no auto insurance or not enough insurance to pay for your losses.

Comprehensive or collision coverage should include options for car rental and towing/roadside assistance. If you have one or more cars that you use almost every day, losing your car to an accident, either permanently or temporarily, can place strain on everyday life. Car rental coverage would ease this problem. Roadside assistance, while an option, can be a big help when you are stranded. Both of these are well worth the cost if you can afford it.

In the current economy, the auto insurance premium has become more important than ever. When cash is tight, choices between cost and coverage are made. Higher deductibles are an option. People, with older cars may choose to eliminate collision coverage since this coverage is limited to the car’s value. Probably the last thing you should consider doing to reduce your auto insurance premium, is to choose the minimum coverage. Every state has different minimums so check with your state for a complete list. But remember, good auto insurance will protect you and your financial assets. Minimum coverage is often not enough.

Finding An Auto insurance Quote For A Family With Multiple Drivers

Finding an auto insurance quote for a family with multiple drivers is important. It can be difficult, if you do not know what you are looking for. Sometimes, people do not even look into their own insurance company when trying to find auto insurance. But, you do need to know what you are looking for before you go searching for the auto insurance for your family. Let us take a look at what exactly a multiple drivers insurance policy is.

A multiple drivers insurance policy basically boils down to having more than one driver on the auto insurance policy. Multiple drivers on a policy can be covered on one car or on multiple cars. It all depends on what works for you and your family. There are many ways to go about finding an auto insurance quote for multiple drivers. The two main ways to find out information is to either go online or actually take the time and call an agent. Although, going online is one of the easiest ways to find a quote, there may be discounts left out of your quote that you may not know is available for your family. A way to find out what is available to your family, in the way of discounts, is by calling the local auto insurance companies in your area. They can help you gain the knowledge that is needed to get the best multiple drivers insurance policy possible.

There is a slew of different discounts available to a family with multiple drivers. Full coverage, though slightly more expensive, is a good way of making sure that all the drivers are under one policy, whether there is one vehicle or multiple vehicles. An auto insurance premium can be reduced in several different ways, through different types of discounts. One way is through a safe driving discount. Your premium goes down each time it renews, the safer each driver on the policy drives. Also, students on the policy can receive a good student discount. A good student discount requires grades to be equivalent to that of a B point average. Basically, it means that the student driver usually is on the honor roll or the Dean’s List. At certain ages a driver can possibly receive a discount. Multiple cars will also add a discount to the auto insurance premium. Lastly, taking a defensive driving course can reduce your premium on your auto insurance policy??.

Using this knowledge can help prepare you to find that auto quote for your family with multiple drivers. As you probably already know, your goal is to find the least expensive auto insurance out there for your family.

Ways Auto Insurance Companies Find Out About A Driving Record

When applying for auto insurance, there are always the looming questions of how and when auto insurance companies find out about a driver’s record. This is also why it is important not to budget future auto insurance expenses based upon a generic auto insurance quote generated online because such quotes may not take into account the rating system a particular company uses to calculate auto insurance premiums.

To further complicate matters, not all auto insurance companies check with the same frequency or using the same criteria. Some companies will check only the DMV (Department of Motor Vehicles) before issuing an auto insurance quote. Other companies may also evaluate the credit score of the insurance applicant. Some companies check only when issuing a new quote or making a change to an existing policy. Other companies will do random spot checks to identify recent changes to a policy holder’s driving record. However, all insurance companies will use the DMV records in the applicant’s state of residence as a baseline for issuing a quote and setting auto insurance premiums. Companies will set the estimated risk level of an applicant from determining the number of points on a driver’s record at the time an application for insurance coverage is filed. Here is where a low score really works to the applicant’s advantage – no or low points indicates low risk, and these drivers are rewarded with lower premiums.

This is why understanding how a driving record is set is equally critical to managing auto insurance premium expenses. A driving record is not unlike a set of test results except in reverse – the lower the score, the better the driver. High scores on driving records indicate high risk to insurance companies with correspondingly high auto insurance quotes soon to follow. Speeding tickets, illegal lane changes, parking violations, collisions, running red lights or stop signs, unsafe driving practices and more will be subject to increased driver record scores.

While it can seem puzzling that agents have access to a driver’s record with the DMV, the act of applying for an auto insurance quote is what gives the auto insurance company the right to gain access to the applicant’s DMV records. Auto insurance companies can also conduct an online search and approach federal agencies for these records, but the DMV is the source most often and easily accessed. The best way to apply for auto insurance quotes is to be knowledgeable about personal driving record data before beginning to gather quotes. Additionally, for high risk drivers there are also memberships available for a nominal fee that can notify a driver of changes to driving record that may increase or decrease premiums.

Truths About Auto Insurance Rates Being Cheaper For Female Drivers

There are a number of popular misconceptions about auto insurance and the way that insurance providers decide quotes for their customers. However, some of the popular knowledge is fairly accurate–for instance, female auto insurance often costs less than auto insurance for males. This isn’t true in all cases, of course, and understanding the way that gender affects insurance statistics (and therefore, insurance rates) can be very helpful when you decide to look for a new, lower-cost auto insurance quote.

As many drivers know, insurance companies rely heavily on statistics to gauge whether drivers will make claims on their policies. This allows them to accurately give low-cost policies to safer motorists. It’s a process that lends itself to a lot of discrimination, which is why younger female drivers will often see lower rates. Women make fewer claims on average than men. Some types of “discrimination” in auto insurance rates are illegal according to state and federal law, but an insurance provider is completely within its rights to discriminate on the basis of gender. Other factors may push a female driver’s auto insurance premium higher than the average male police, however; for instance, making even a single claim or getting a traffic citation will affect any driver’s rates negatively, and the lower rate given to a female driver will disappear instantly due to these types of incidents.

Age is also a major factor in insurance company statistics, and once a female driver reaches a certain age (usually around 65), her rates will be significantly higher than male drivers of the same age. This is because older female drivers, for whatever reason, tend to make more claims. Some insurance companies have speculated that this is due to female drivers’ propensity to allow other drivers (such as their husbands) to handle the driving duties at the later stages of life, which can make a female driver less experienced when she needs to get back behind the wheel. Whatever the case, age and gender have a direct correlation, and the average cost of any driver’s insurance policy will fluctuate throughout his or her life based on insurance company statistics.

Drivers don’t have any control over their age or gender, but by keeping a clean record and regularly reassessing your insurance policy, you can lock in the lowest rates possible for your coverage. Always look at more than one auto insurance quote, and try to lower your potential risks by choosing a safe vehicle. Every driver can find low insurance rates, but it’s important to take an intelligent approach in order to avoid overpaying for your car insurance coverage. You will be lucky you did when you have a premium that’s easy to pay.

How Long Before A Drivers Auto Insurance Quotes Change After An Accident

Having an accident is stressful enough. But as any driver knows, the fallout from the accident itself is only the beginning. An auto insurance premium increase is nearly always sure to follow, and navigating the longer term impact of handling auto insurance claims, plus negotiating for a new auto insurance quote, can take even longer. This is why it is important to know what to expect and how to handle changes to auto insurance following an accident.

Drivers in search of an industry standard are in for a rude awakening – even a cursory inspection of different carriers reveals that no such standard is currently in place. Auto insurance premium increase rates, time lapse between auto insurance claim settlements and insurance rate increases vary widely. While auto insurance carriers are required to file what is called a “surcharge schedule” with each state in which they operate, these schedules can read like Sanskrit to the unskilled eye, and the insured is often left to their own devices to decipher the financial impact of rate surcharges after an auto insurance claim is filed. This can vary by number of insured on a single policy, number of vehicles, length of time as a policy holder, and more. Even for the fortunate few whose carriers offer a first-timer accident-forgiveness clause, which means that for the first accident no rate increase will be imposed, only certain applicants who fit certain criteria are eligible for such benefits. Devoting the extra time to researching whether a carrier offers accident forgiveness and under what circumstances can pay off in the event of an accident. Similarly, accepting a slightly higher monthly rate in exchange for such protective measures can be a bargain over time.

For many individuals involved in an accident, the rate increase will not appear until renewal time. But when it does appear, the increase can carry a whopping punch – most carriers hike rates between 20 and 40 percent of the insured’s current premium. Once again, it is important for a new policy applicant to ascertain the potential impact to insurance premiums in the event of an accident to avoid being swayed by low up-front auto insurance rates. Similarly, it is important to know how long the rate increase will last, and which types of accidents will incur a rate hike. Some states and carriers penalize for all violations, while others distinguish between moving, parking, and fault or no-fault incidents. Be wary of insurance agents who are unwilling to answer these basic questions about rate increases in the event of an accident. A little extra time and persistence in seeking out a quality auto insurance quote now will be worth it in the long run.