How Even Small Accidents Can Increase Your Auto Insurance Premium

A sure-fire way to keep your auto insurance premium from going up is to never have an accident. In today's hurry-up lifestyle, that isn't always easy to do. And if an accident does occur, be prepared to spend an inordinate amount of time dealing with insurance agents who try to resolve the issue to their company's advantage. Even small accidents are enough to change your insurer's attitude towards you, his client.

There is no law that demands you report a fender bender, whether it involves your single car or another driver who is willing to also ignore filing insurance claims. In many cases, its smart not to report a small accident, the total repair cost could be less than your deductible. But if you do report minor damage, especially more than once, look for your auto insurance premium to go up. It's wise to thoroughly review your car insurance policy to determine how your insurer plans to deal with any possible accidents.

Insurance companies have a rating point system for adjusting auto insurance premiums in the event of an accident. A first-time reported accident could boost premiums by as much as 15 percent. A second accident claim likely will hike premiums upwards of 30 percent, or more. That premium setting formula differs from company to company, it isn't set in stone. The worst outcome resulting from an ongoing pattern of accidents might find your insurer dropping you as a client. This will make it difficult to convince another insurance company that you deserve first-class treatment.

What is about small accidents that make insurance companies more than a little edgy? Repeated small accidents often are accompanied by traffic citations, and other high-risk behaviors. Moving violations that occur more than once or twice, bring to bear the argument that a motorist isn't paying attention while driving; or simply ignores traffic patterns and signals. Any of those driving fault are potentially hazardous, and can be considered bad enough by insurance companies to plaster an "at risk" label on a current or potential client. That severely limits any driver's ability to obtain a favorably priced auto insurance premium.

Insurance premiums can be affected by several situations. If you file a claim or buy a more expensive car before policy renewal time, then expect increased premiums. The inverse is also true; good drivers may be eligible for accident forgiveness–a practice that some insurance companies employ for use with their preferred customers. To be able to take advantage of this feature you must maintain a clean driving history for quite some time.

How Getting Arrested Can Affect Your Auto Insurance Premium

An auto insurance quote for a good driver should remain fairly constant throughout the duration of a policy. Getting cited for a traffic violation, however, presents a different story. When it comes to auto insurance, arrested drivers are almost guaranteed to see their premiums climb.

Speeding is a common violation, and every time a driver is cited for speeding, the insurer is more likely to impose a premium increase. While speeding is usually a minor violation, exceeding the speed limit in special cases—school zones, construction areas, village or city limits—can cause a driver to be hit with a reckless driving charge. That puts points on the driver’s license, plus a fine. Points on your driving record constitute an alert to your insurance company. It can raise your auto insurance premiums by as much as 50 percent. Continued bad driving can get your policy suspended.

A more serious offense is driving under the influence or DUI. This arrest can result in the loss of your license and, summarily, your insurance policy. Nothing else on your driving record could make it harder for you to find a reasonable auto insurance quote. It’s very simple: don’t drink and drive. If you have been drinking, put your car keys away and let someone else take you home.

States vary when it comes to adjudicating minor traffic offenses. However, a pattern of minor violations can impact car insurance premiums. Running through stop signs, failing to signal for turns and being cited for other minor infractions will convince insurance companies that you are a high risk. Your insurance premiums should demonstrate clearly just how much insurers keep a close eye on your driving record.

Good drivers reap the benefits of staying within the law while on the road. Their insurance premiums don’t increase, and when they look for auto insurance quotes, they get the best offers. That puts them in the position of always having auto insurance, which is a requirement across the United States. There are severe penalties for driving without insurance, and the laws pertaining to that offense are vigorously enforced. Driving while uninsured can get your license revoked and will make renewing your license very difficult. Also, think about what you might have to tell a prospective employer about the blemish on your driving record.

The worst part of any traffic violation is that you could face imprisonment. Being involved in a serious or fatal accident, and being found at fault, puts virtually the rest of your life in jeopardy. Use common sense and drive your car safely. And when it comes to affordable auto insurance, arrested drivers need to know that they may have placed their financial security at risk.

Understanding The Subrogation Procedures For Your Auto Insurance Claim

Every auto insurance quote has a subrogation clause. The purpose of this clause is to protect the insurance company from being solely responsible for paying auto insurance claims for an auto accident when there is other insurance available that should have been paid out for the claim.

For instance, if you are involved in an automobile accident and your insurance company pays for the damages to your vehicle, as well as any injuries you may have sustained, and they later determine the other driver was at fault and has coverage, your insurance company has the right to seek reimbursement from that company for the money it paid out on your behalf.

When you purchase an auto insurance premium, and there is a subrogation clause, you’ve signed over your rights to your insurance company to act on your behalf to seek to get their money back’ that was paid on the claim. Your carrier can go after those monies from the other carrier, which may include suing for those funds. This can include money paid to you from your separate health insurance or other medical insurance carrier, as well. If your auto insurance carrier paid you monies for personal injuries, and you also filed a claim with your health insurance carrier and they paid the medical claim, either one of these carriers can file for their subrogation rights to get their money back. Subrogation usually occurs after the original auto insurance claim was filed. The carrier allows you to be paid for your damages and not have to wait to determine fault. As a show of good faith, you, as the insured, can release your rights over to your carrier so that they may recoup their funds if it is determined that another driver, or legal entity, was at fault and they had insurance that would have covered the damages that your carrier has already paid to you. Usually, your insurer will have you sign a subrogation release that assigns your right of recovery against the person responsible for your loss to your insurance company

Auto insurance quotes were not intended to assist people from profiting from an accident. Subrogation rights were put in place to keep people honest and to protect insurance companies from paying claims that another company was responsible for and would have paid. It is important that you remain in close contact with your carrier during this process as they are going back and forth between companies to determine fault and what has been paid to you. You do not want to have your auto insurance premium canceled due to not cooperating with your carrier. They are there to help protect your rights as well as their own.

4 Tips To Teach Teens About Auto Insurance Quotes

It’s probably safe to say, a universal milestone in every teenager’s life is learning how to drive and getting a driver’s license. Oftentimes, passing the driving test is the easy part when compared to what comes next; calling around for auto insurance quotes and selecting suitable coverage. Below are four tips on how to approach the four major areas of teen auto insurance-premiums, deductibles, type of coverage (liability or full coverage), and discounts.

Auto insurance premiums are your out-of-pocket costs. Typically, auto insurance premiums are recalculated every six months and are billed on a monthly basis or, at a discounted rate, every six months. The key to premiums is not to get tripped up by them. Absolutely shop around for the best auto insurance quote, but be careful not to sacrifice sufficient coverage for a lower premium. Auto insurance premium costs are directly dependent on the amount of your deductible and the type of coverage selected. The deductible is the amount you pay out-of-pocket when your vehicle has been damaged by a collision or vandalism, or involved in a theft. Your car insurance deductible-usually ranging from $250 to $1,500-must be satisfied before your insurance company pays anything; the higher the deductible, the lower your auto insurance premium will be.

The key to deductibles is to choose an amount you can afford. Do not choose a $1,500 deductible because your monthly premium is lower. If you can’t afford the extra $30 to $40 a month for a lower deductible, you will not be able to afford a $1,500 deductible to fix or replace your vehicle. In addition to selecting a deductible amount, you also need to select the type of coverage you want-liability or full coverage. Essentially, liability covers damages caused to other people and their property; full coverage is an add-on to liability-comprehensive and collision. If you are financing a vehicle, you are required to have both; and do keep in mind that each state sets the minimum liability coverage allowed in order to be legally insured. All things considered, the key to electing a type of coverage is – if your vehicle is not a lemon – it’s probably best to elect what is known as full coverage.

The key to discounts is availability and eligibility. Discounts range from multi-car/line discounts, which are offered when more than one vehicle/insurance plan in the same household is insured, to driver training discounts, usually offered as a result of driver’s education courses. There are also good student discounts, which are offered based on grade-point averages. Teen auto insurance can seem overwhelming-from premiums and discounts to type of coverage and deductibles-but keeping these four tips in mind should simplify the process.

4 Types Of Auto Insurance Coverage That Most Drivers Will Use After An Accident

A motorist’s auto insurance gets a work-out after an accident when various coverages will be called upon to pay accident costs. Coverages most likely to be used are personal injury protection, liability, collision, under or uninsured motorists, and gap. A good agent will provide auto insurance quotes for all the insurance types, taking into consideration what state requirements for auto insurance are. Vehicle owners can then decide upon what coverage they want based on the auto insurance premium to be paid.

Most automobile accidents mean injuries, so Personal Injury Protection is probably the most used type of coverage. It’s also known as PIP, or Med-Pay, because it pays medical expenses if you are injured in the accident. While Med-Pay pays only medical expenses, PIP also covers wage loss if you are unable to work, and for household services if you can’t clean your house or cut the grass. PIP pays regardless of which driver was at-fault for the accident. It also covers passengers in your vehicle. Medical treatment following an accident can be very expensive and sometimes the initial emergency room visit can easily cost thousands of dollars. Be sure to have your agent give you auto insurance quotes for several levels of PIP coverage.

Liability insurance comes into play if you caused the accident. People who you’ve injured are entitled to compensation for medical expenses, wage loss, and pain and suffering for an auto insurance accident. They’re also entitled to have their damaged car repaired. Liability insurance covers all this as well as paying for repairs to other things, such as fences, that were damaged in the accident. In some states, passengers in your car may have a liability claim against you. If you do not have enough insurance to cover the accident costs, some states allow injured people to go after your personal assets. That’s why it’s so important for your agent to give you auto insurance quotes for several levels of coverage. Then you can choose the auto insurance premium that you can afford.

If a driver hits you who does not have insurance or insufficient insurance to compensate you, you can file for additional compensation under your under or uninsured motorists policy. The amount of this coverage is usually tied to the amount of liability insurance you have. Collision insurance will pay for the damage to your own car. Some lenders require new vehicle buyers to carry gap insurance. This insurance will pay off the rest of your loan if your car is totaled while thousands of dollars are still owed on it. Make friends with your car insurance agent; auto insurance premiums may seem high, but they’ll save you money following an accident.

Finding Low Cost Non Owner Auto Insurance Quotes

A non-owner auto insurance policy covers borrowed and rented vehicles. This kind of policy will cover any damages that you cause to someone’s body or property while driving a vehicle that you borrowed from someone, and do not own. It does not cover damages to yourself and the vehicle you drive. If you crash someone’s car, the vehicle owner’s policy will pay out first. If his policy is not enough to cover the damages, your non-owner auto insurance policy will kick in. Keep in mind that you cannot add another driver to this kind of policy. Other drivers must purchase their own non-owner policies. You can secure an affordable non-owner auto insurance policy by obtaining and comparing auto insurance quotes online or over the phone.

You can visit auto insurance quote websites online to obtain quotes. Some quote websites offer non-owner auto insurance policies. Complete the quote applications online and compare the information you receive. If you obtain a cheap auto insurance quote, you will not be obligated to make a purchase and you will not be charged to obtain the information. Quote websites will provide you with accurate prices in a few seconds and they will find you the best auto insurance premium around. Shopping online is the quickest way to find auto insurance premiums, so it is worthwhile.

Alternatively, you can call auto insurance companies to obtain quotes. Tell them you need a non-owner insurance policy. You will not have a problem finding an insurance company that offers a non-owner policy because every company offers these kinds of policies. Compare prices, terms, and conditions with each insurance company that you contact until you find the best deal. Keep in mind that the only type of insurance policy that you qualify for is liability because the vehicle you drive is not yours. You should shop around and compare prices with many insurance carriers until you find a cheap auto insurance quote.

Non-owner auto insurance premiums are affordable. Annual prices for these kinds of policies range from $300-$700. Keep in mind that if you rent vehicles when you travel, you are probably better off purchasing a non-owner insurance policy. Rental car companies usually charge more for their insurance policies. Also, keep in mind, if you purchase a vehicle in the future, you must purchase a traditional auto insurance policy. Non-owner insurance is not the type of policy that you need. After you obtain an auto insurance quote online or over the phone, review the details you are provided with. Make sure you understand what kind of insurance policy you are being offered before you make a purchase. If you have any questions about the insurance policy, contact a licensed agent.

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.

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.

Considering Whether Car Insurance Rates Will Continue To Rise in 2010

Auto insurance rates have increased in 2010 and they are expected to keep rising. The economy has a huge impact on insurance providers, and many people will have to face higher auto insurance premiums in the near future. According to USA Today, the average auto insurance policy will increase by 4 percent. Experts recommend that consumers shop around for affordable auto insurance rates. You can request an auto insurance quote online if you want to save money. Requesting an auto insurance quote is easy and it will only take you a few minutes.

In some states, auto insurance rates have increased by 12 percent, including Montana. In Florida, State Farm has increased their rates by 9.2 percent. Twenty-three states have seen a rise in auto insurance premiums this year. Other parts of the country have seen a drop in premiums. Drivers in Idaho and Vermont have the lowest auto insurance rates in the nation. The truth is that insurance fraud and the amount of claims that are being filed is causing many insurance carriers to raise auto insurance rates for profit. Besides the increase in auto insurance premiums, certain vehicle models will cost more to insure due to risk ratings such as the Kia Sportage and Hyundai Sonata. Insurance rates have been going up since 2008, and they will probably keep rising. Consequently, many motorists are driving without insurance and about 16 percent of drivers are likely to let their policies expire without renewing them.

It is important that you compare auto insurance rates with a variety of insurance companies. If you find an expensive policy, you will reduce your auto insurance premium. You can obtain an auto insurance quote online with more than one insurance comparison website. You will have to enter your zip code, select the type of coverage you need, and complete a simple application. You will receive instant quotes in minutes. You can reduce your auto insurance premium even further by raising your deductibles and taking advantage of discounts. For instance, insurance companies may offer you discounts if you complete a safety, defensive driving course, if you have air bags, anti-theft devices, anti-lock brakes, a car alarm and other safety features. If you are a student and your grades are excellent, you may qualify for a discount. In addition, if you do not put a lot of mileage on your vehicle each year, if you keep it in a garage, if you insure more than one vehicle or purchase more than one kind of policy with one insurance company, you may qualify for discounts on your premiums. If you follow these tips, you may find a low cost auto insurance policy.

Age Groups That Pay The Least For Auto Insurance

Motorists are legally required to possess auto insurance to operate a vehicle. If a regrettable car accident transpired, an auto insurance company would help pay for any injuries or damages that resulted from the misfortune. Additionally, auto insurance may help cover the expenses of repairing or replacing your vehicle if it is either damaged or stolen. Car insurance rates are determined by many factors. Some determinants for car insurance rates are a driver’s credit history, occupation, gender, area of living, and the make and model of a motorist’s vehicle. However, another vital determiner is a driver’s age. Drivers between the ages of 50 and 65 generally receive the preeminent auto insurance premiums available on the market.

Auto insurance companies usually divide drivers into three categories to ascertain the amount that they will charge in premiums. Provided that they own a good driving history, auto insurance premiums are the least costly for drivers in the age group of 26-73. Drivers in the 26-73 age group receive reduced auto insurance premiums because they are experienced motorists that have proven over time that they can operate a vehicle in a safe manner. On the contrary, individuals in the 16-25 age group pay the highest premiums because they are inexperienced drivers that are deemed high risks on the road. Statistics indicate that drivers in the 16-25 age group are accident prone and they have historically filed the most insurance claims. Sandwiched between the 26-73 and 16-25 age groups are drivers age 74 and above. These drivers will face premiums that are a tad lower than the most risky 16-25 age group. Drivers 74 and above are considered minimal risks to auto insurance companies because some of their reflexes behind the wheel may have diminished with age.

Personal auto insurance is mandated to lawfully operate a motor vehicle. Auto insurance premiums can be quite expensive in some instances. To locate the most affordable personal auto insurance, drivers are strongly advised to seek the best insurance quote that they possibly can. Conducting research and shopping online are simple ways to find the most economic auto insurance premiums obtainable. With due diligence, online consumers can discover the foremost auto insurance premiums offered.

Many factors are considered when an agent establishes an auto insurance quote. Unfortunately for some motorists, age is of primary importance to auto insurance companies. Young and inexperienced drivers are viewed as liabilities on the road. Conversely, elderly persons are also reckoned to be perilous drivers on the road. Data has shown that drivers between the ages of 26-73 are the safest individuals to operate a motor vehicle. In particular, dependable drivers between 50 and 65 are offered the lowest auto insurance quotes.

Why An Auto Insurance Quote May Not Be What You Actually Pay

The internet has made it a simple matter for drivers to find accurate auto insurance quotes, and every year thousands of drivers go online instead of calling their local insurance agents. Unfortunately, not every auto insurance quote is accurate, though, and this can come as an unwelcome surprise to many motorists. There’s sometimes a big difference between a quote and an auto insurance premium, and, more often than not, this is due to an omission on an online form that affects the cost of insurance–a driver forgets about a certain detail of his or her record, or the insurance company doesn’t ask enough questions about the driver’s habits. However, there are several other major reasons for a discrepancy between a quote and the actual premium that a driver pays.

The first is form accuracy. Most insurance providers have online forms that generate car insurance quotes, but these forms have several issues that can throw off an estimate. Online forms assume that the information that a driver inputs is true; however, many drivers don’t remember the dates of previous claims or citations, and may not even know the exact year that their car was manufactured. Relatively minor details can make a big difference in car insurance rates, so car insurance providers double-check every estimate before offering a policy to a driver. They’ll check a driver’s record, run the vehicle’s VIN number, and more. During this process, it’s not uncommon for several details to change, which, of course, affects the overall cost of car insurance coverage.

Premiums can also change if a driver waits to sign on to a new policy after receiving a quote. Insurance companies use a wide variety of statistics to decide a driver’s premiums, and they’ll look at everything from a driver’s age and gender to the incidence of car theft in that driver’s zip code. If any of these statistics change between the time that the driver applies for an auto insurance premium and the time that the driver signs a policy, premiums could potentially change. Many insurance providers will honor the first cost they’d estimated for a driver, but of course, there’s no guarantee until a policy is signed.

When you look online for an auto insurance quote, be sure to keep printouts of every quote that you receive. This can help you out if you need to negotiate before signing a policy (for instance, if the policy’s premium is much higher than the initial quote). Answer all questions honestly, and collect several quotes–you’ll stand a much better chance of locking down a low-cost, high coverage auto insurance policy. It is definitely worth your time to look to do the research to get the best rates.

Why Drivers Should Keep Records Of Their Auto Insurance Payments

If you drive a car, there is at least one monthly payment you are inevitably making. No, it’s not for the car itself – many people are now paying out their cars fully at the time of purchase – it’s for auto insurance. No state permits any driver on the road without some sort of auto insurance coverage, or a bond authorized by the state. What this means for consumers is that over time they are will be paying a significant amount of money into a policy that, if they are fortunate, they are never going to use.

That’s the odd thing about auto insurance. Logging online and getting a cheap auto insurance quote is simple, but even cheap’ quotes these days end up having a significant monetary footprint. For those drivers that are careful, considerate and fortunate, their policy will be something they pay for but never use. A safety net in case of trouble, but one lined with their own money, with a host of limits and exceptions. Over time, even a low auto insurance premium builds up, and the total amount paid out by clients to insurance companies is simply staggering. While insurance is an expensive purchase for only a potential use, not having it at the right time can be disastrous, and a great insurance company can make all of the difference in post-accident litigation. Every driver needs good car insurance, but every driver also needs to keep a record of every payment they’ve made.

Why? Two reasons. The first is that even with new laws limiting when and how an auto insurance company can change rates or drop customers, they are still permitted to cancel policies for non-payment. If the insurance company claims not to have received their money, you need to have records of some kind, electronic or paper, to back up your assertions that you have always paid on time. Second, if it appears that you have stopped paying for your coverage for any period of time and your coverage is suspended or cancelled, the company may try to claim that your vehicle was uninsured. When your policy is ‘reinstated,’ your auto insurance price may have jumped significantly. Keeping detailed records of auto insurance payments can help ensure that mistakes, if they occur, can be easily rectified before they have an impact on your insurance or your premiums.

As with any payments you make to an institution, keeping accurate records is key. While companies are typically diligent about keeping up with who is paying what and for how much, a power failure, company merger or other event could cause a loss of data. It is far better to be prepared than face potential insurance issues.

The Long Term Costs Of A Bad Auto Insurance Policy

A good auto insurance policy can make all of the difference after a collision. A decent provider will be there when you call, able to provide advice on how to proceed, willing to speak to the other driver’s insurance company, and ready to get a rental car set up for you immediately. As well, a great auto insurance company should have agents that can help put your mind at ease, instead of adding greater stress to an already difficult situation. Regardless of fault, your insurance company should be upfront about what is going to happen, and how long the process will take. If you are entitled to compensation, your company should be able to inform you about their progress. If your company must pay the other driver, they should be able to tell you exactly how much your auto insurance premium will increase.

Sadly, for many consumers, having a good auto insurance policy is far from a reality. Fortunately, finding a good auto insurance quote is easier than ever, and can help consumers avoid some of the serious pitfalls of having a bad auto insurance policy. While a bad auto insurance policy will often come with a very reasonable rate, the long-term effects are often not worth the cost. Here are some of the ways that a poor policy can affect you in the long-term.

First, a poor auto insurance policy will likely take far longer to pay out than a reputable one. This may not seem like a large inconvenience until you are actually in a car accident, and you either need to be paid out or the other driver needs to receive compensation. If the insurance company is slow in paying out, or gives you the run-around, it can mean a significant financial hardship for you if you are injured or your car has been written off. It can also mean potential litigation from the other party if your company refuses to pay them, or takes too long. This can be an extremely expensive prospect.

Additionally, having a bad auto insurance policy can eventually affect your chances to get a better quote in the future. If you have had multiple accidents that have all resulted in litigation, or which you listed as fault due to poor effort on the part of your insurance company, other auto insurance providers will be very leery about insuring you, even if none of the insurance problems were actually your fault. A bad auto insurance policy, despite its often initial low price and small monthly premium, is simply a ticking time bomb. While the explosion may not come initially, it’ll come eventually, leaving you with limited funds, potential litigation, and eventually no way out.

How Young Drivers Can Afford Good Auto Insurance Coverage

Auto insurance quotes are one of the major costs of owning a vehicle for all drivers, but young drivers have it especially rough. Auto insurance coverage costs far more for drivers under 25, and even if they drive as safely as possible, it can take years for car insurance premiums to drop to a reasonable level. However, drivers that actually look for ways to lower their costs may be surprised at the wide variety of insurance programs and techniques for locking in a low-cost auto insurance quote.

For starters, many insurance companies offer good student’ discounts to any college or high school drivers that can maintain a certain GPA. It works as a great incentive to keep your grades up, and it makes sense from the insurance company’s perspective, since good students tend to drive more carefully. You’ll usually have to fax in a copy of your report card at regular intervals, but if you are already a good student, there is no reason not to apply for this discount. Many insurance companies offer other types of discounts that aren’t age-specific, such as discounts for anti-theft devices and discounts for drivers that elect to take defensive driving courses. If your auto insurance premium is exceptionally high, you should contact your insurance agent to see what programs are available.

It should go without saying that safer vehicles cost less to insure, but even so, many drivers don’t look at safety ratings when picking out a vehicle. Young drivers should use online insurance quote tools to look at the varying rates for different vehicles before making a purchase; remember, safer vehicles often cost less at the lot, too, so it makes sense to avoid a flashy car in favor of a safe vehicle, at least for the first few years of your driving career. While you’re online, be sure to look at as many insurance quotes as you can find, as this will help you to understand some of the factors that insurers use when deciding rates, and you’ll be able to compare policies to find an affordable premium.

Above all, young drivers should be especially careful during their first few years on the road. Nothing helps your insurance costs more than a good record, so keep your attention on the road. Be aware of your state’s laws, and avoid any distractions while you drive–especially from cell phones and iPods. In fact, using these devices while driving is against the law in many states, so to avoid a ticket, stay alert. If you’re careful and you shop around for car insurance premiums, you will lock in an affordable rate that you can keep for years.

Are No Fault States Better For High Risk Drivers

Auto insurance policies vary greatly from state to state. Some states, such as Oregon, require that all drivers carry a minimum of $25,000 in coverage for damage done to another person’s property in an accident. Others, such as California, require only $5000. As well, there are wide divisions on how much bodily injury (BI) and personal injury protection (PIP) coverage are required by law, and some states simply do not mandate any coverage for under-insured and uninsured motorists. The different levels of coverage required in each state can make a significant difference in any auto insurance quote or auto insurance premium that a consumer will receive. In addition, each state has different legislation regarding how claims for auto accidents can be pursued. Bearing this in mind, is there a state in which a high-risk driver would be better off calling home?

First, it is essential to understand the litigation options open to individuals in various states. Put simply, there are two models currently operating in the United States. In the first model, one driver must be declared at fault for the accident. Depending on the specific legislation, a driver may be found wholly responsible, or responsible for only a percent of the damages caused, and may have to pay out entirely, or for only a fraction of the total cost. The second model is what is known as no-fault.’ In no-fault states, neither driver is identified as being wholly responsible, and there is no ability for drivers to sue each other to recover costs. Some states offer a partial no-fault model, in which drivers can choose to either pursue damages in court or agree not to do so, but the decision must be made before a car is put on the road.

A high-risk driver – one who has had a history of accidents or just bad luck – would do well to find a no-fault state. Although they would pay a significantly higher auto insurance premium, as coverage levels in no-fault states are mandated at much higher levels in order to cover motorists as they cannot pursue a court settlement, any accident would simply be dealt with at an insurance level and never move on to the potentially time-consuming and expensive process of court.

There is a wide variance in auto insurance rates by state, in addition to significant differences in how claims are handled – from the entirely litigious options of an at-fault state to the simple and easy insurance payouts of a no-fault state. For a high-risk driver, a state which has high required levels of coverage and no-fault legislation is often the best option, as they will have a better chance of finding a reasonable auto insurance quote.

3 Tips For Limiting The Effects Of An Accident On Your Auto Insurance Rates

No driver wants to be in an accident. Aside from the potential damage to their car, the other driver’s vehicle and the possible injury involved, no one wants to have to call their auto insurance company and make a claim. Not only can the process be confusing and sometimes maddening, but it can often mean an increase in premium rates as well. While defensive driving, a well-maintained vehicle and a general awareness of the road can often mean that a driver can limit the number of accidents they are involved in, avoiding them altogether is almost impossible. Here are three ways to limit the effect of an accident, and the subsequent auto insurance claim, on your monthly auto insurance quotes.

First and foremost, be upfront. Some drivers choose not to report immediately, fearing a steep rate increase to their auto insurance premium or concerns that their auto insurance company will simply declare them at fault without hesitation. Many drivers attempt to resolve the situation without the use of their insurance company, and while this can sometimes be successful, if an accident does need to be claimed, the time spent waiting and hoping for a non-insurance resolution can work against a driver. It is far better for your insurance provider to hear from you about an accident than from another insurance company or the other driver involved.

Secondly, consider adding extra security or damage-mitigation features to your vehicle. Many car companies now offer electronic monitoring services which can detect car accidents and vehicle problems and can dispatch emergency services almost immediately. The safer that you can make your car in the event of any subsequent accident, the more reasonable your rates will remain. The third way to limit your rate increase after an auto insurance claim is to consider raising your deductible. A higher deductible means that a larger sum of money will have to be paid up-front by you before the insurance company will become involved. This limits the risk of payout on their part and will mean that your rates stay as low as they can.

No driver can avoid every accident, or pay for every damage or injury themselves. Despite their reluctance, there are times when calling the auto insurance company to report a claim is necessary. Although tough questions may be asked, and the insurance company may ultimately declare their driver at-fault, this does not have to mean the end of a reasonable rate of insurance for the consumer. By making sure to report early and honestly, install the latest safety features on their car and taking a proactive approach to up-front costs like deductibles, a car owner involved in an accident can still expect a reasonable rate.

Keeping Auto Insurance Costs Down When Moving To A New Area

Taking out auto insurance has all kinds of costs attached to it, but one many people may not be aware of are the costs involved when you move location. Depending on where you move, your auto insurance premium could either go up or possibly even down in price. This is because your auto insurance is based on more than just your own driving record – it also takes into account factors such as insurance laws in each state and the break-in history in the area in which you are moving to.

How populated your new location is can also be a factor that could increase your rates, as could the level of theft in your new location. Let your insurance company know as quickly as possible when you move or are considering a move to a new state. It might be a good idea to get another auto insurance quote from a different company regarding what your rates will be in your new state; as it may turn out to be in your best interests to change who you hold your policy with. There is, of course, another reason to inform your insurance company as quickly as possible when you have moved. If you have had an accident before you have even informed them of your change of address, the company could refuse to pay out. It is also possible that your current company may not actually be able to cover you in the new state. Therefore, you need to contact your insurance agent as quickly as possible upon moving.

If you can maintain your current policy with no change, then there is no problem. If the agent is incapable of continuing your policy in this new state, or the move would result in a hefty increase on your auto insurance premium, then that would give you more time in which to shop around for more affordable car insurance quotes. Research the mandatory insurance requirements in your new state, so that if their insurance laws are going to make it necessary for you to add further coverage to your existing policy, such as personal injury protection or underinsured and uninsured motorist coverage, you are aware of it ahead of time. If you are intending to change your insurance agent when you move, be sure to cancel your current policy in advance, otherwise you are likely to continue to be charged for your current policy even after you have moved.

Moving to a new area can be a costly business in terms of auto insurance – but careful forward planning can help ease the pain. Look into your new area, speak to your agent, and get quotes beforehand.

How A Driver Zip Codes Affect Auto Insurance Quotes

There are many factors that can affect your auto insurance quote. From your age and gender, to the car that you drive, everything is weighed by insurance companies. Your zip code is even a factor–a pretty major factor, actually, as you might have noticed if you have ever moved to a new area and seen your auto insurance premium change. Understanding the ways that your zip code affects your insurance can be very important, as it offers drivers new ways to limit their monthly costs and negotiate with insurance companies when renewing.

Zip codes are especially important because insurance companies find statistics based entirely around zip codes. The more insurance claims made in your area, the higher the risk of the area at large. An area with a high population of safe drivers will therefore generally see low auto insurance quotes. Insurance companies look at the number of accidents, but also at the severity of each accident and the average cost of a claim in a certain zip code. They will also look at auto theft, as for insurance companies, this is one of the largest potential claims out there–they have to reimburse a fully covered driver for the entire cost of a vehicle. As a result, areas with high crime will see sometimes drastically increased auto insurance premiums.

To keep car insurance quotes down when driving in an at-risk zip code, drivers should look into various discounts offered by their insurance providers. Installing a car alarm, for example, will usually decrease the cost of comprehensive coverage quite significantly. Choosing a safe vehicle (rather than a flashy sports car) will greatly limit your risks, and this is generally reflected in your auto insurance premium. You should look at quotes from several areas in your city before moving to be prepared for any changes in your rate that will occur. This will help you plan out your budget after a move, and in extreme cases, it might even help you make a decision about where to live.

Collecting various auto insurance quotes will also let you see how different insurance companies set their rates in relation to the risks of certain zip codes. Drivers in your area might be able to save quite a bit of money by choosing a different insurance company. There is no real way to tell unless you check around different places, and fortunately, cost comparison websites make it easy to get several quotes at the same time. Regularly checking rates in your area and adapting your driving habits to your zip code’s risks, will lower the possibility of a claim and allow you to find a reasonably priced policy.

Getting A Guaranteed Rate For Your Vehicle’s Auto Insurance Policy

We all want to save money on auto insurance. But what happens when that six-month teaser rate on the policy you just bought runs out? You are left scrambling to come up with the new higher auto insurance quote at renewal. When you are on a budget, having fixed costs is essential. The best way to manage your car insurance budget and get a good rate on your insurance is by purchasing a guaranteed rate policy. Offering a lower rate for new customers is an age-old practice for car insurance companies. They attract long-standing customers away from other insurance companies with low car insurance quotes, hoping the new policyholders will stay even after they hike the rates back to the standard auto insurance premium.

It’s true you may pay a little bit more for auto insurance with a guaranteed rate of a one-year term. But you may be able to get a big discount by staying with one company for a long time, bringing the auto insurance quote even lower than that teaser rate you saw. Customer loyalty and accident-free rewards can save you as much as 40% when you stick with one company for three years or so. Before jumping ship, ask your insurance company what sort of rewards you might gain by staying. When you tell them you are thinking of switching, they may lower your car insurance quotes to get you to stay. Add customer loyalty and other discounts to that equation and you are really saving some big money. Teaser rates can sometimes come with hidden fees too. You may be charged $3-$5 each month for making installment payments, costing you another $36 to $60 on your insurance. Make sure you have factored in any such fees when you examine any auto insurance premium.

There are additional ways you can bring down your guaranteed rate to the same cost as a teaser rate. This lets you save money and stay on budget throughout the year. The first option is to choose a higher deductible. Save up a small nest egg and leave it in your savings account in case there is an accident. Then you can carry a higher deductible, save money on your auto insurance and earn interest on the savings. If there is more than one car in your household, keep them both on one policy. You will almost always get lower car insurance quotes this way. If the company also sells home insurance, see if you can get a lower auto insurance quote for adding your homeowner’s insurance into the mix. If you can, pay the full auto policy premium in advance to avoid installment fees.

Common Mistakes That Drivers Make When Filing An Auto Insurance Claim

Any motor vehicle accident is a traumatic experience. For many, carefully laid plans to collect the other driver’s information and take clear photos of the event are lost when the first crashing noise is heard and your car deforms from its intended shape. After the dust settles, however, and you’ve managed to collect what information you need, you now have to approach your auto insurance company and start the claim process. Many drivers, often unwillingly, do things that can damage their claim without even realizing it. Here are a few common mistakes made by drivers.

The first is waiting too long. This is typically because the damage doesn’t look that bad, or the other driver promises to pay in cash, and soon. While this is a perfectly viable option, you pay your auto insurance premium so that your provider will both protect your car and fight on your behalf. Often, promises of money turn out to be just that – they lack any action, and you are left with a broken car two months after the accident occurred. This can make determining damage and fault a great deal more difficult for your insurance company, and can result in either less money than you are actually entitled to or no money at all. The next mistake that many drivers make is not calling to get advice. Everyone remembers the nice, low auto insurance quote they got when they first signed on with the insurance company, and no one wants that to change. Too many people have heard horror stories of insurance companies raising rates simply because a client called in to ask a question. While this has actually happened, most states have policies in place to prevent such actions, and any insurance company worth its salt will simply answer your questions honestly.

One other large mistake that drivers filing insurance claims often make, is that they are not completely honest. This may be due to embarrassment or a desire to see the greatest payout possible, but it is always a bad idea. The other driver, and any witnesses, will be providing statements, and the insurance company will be sending out an adjuster to look at your vehicle. If you have been less than forthcoming, the truth will come out, which will almost certainly result in a larger auto insurance premium, at minimum.

Although there are some companies that make auto insurance claims extremely difficult, these are becoming the exception rather than the norm. If this is the case, it may be time to seek new car insurance quotes. If, however, your insurance company deals honestly with you, show them the same courtesy and report quickly, honestly, and don’t be afraid to ask questions.

What Age Groups Get The Lowest Average Auto Insurance Quotes

The process of looking for an auto insurance quote can be daunting. Understanding the factors that contribute to the cost of insurance can be helpful. You may wonder, for instance, how your age influences the car insurance quotes you are getting from different companies. Insurance costs are set by a combination of factors, including gender, location, driving record, and the type of car you drive. An auto insurance premium also takes into consideration the age of the driver. However, it is not just because a driver is a certain age that he or she has a higher or lower rate for auto insurance. Insurance companies use statistics of how many accidents each age group averages to set an auto insurance premium. The companies want to minimize their losses, of course, and using statistics on safe driving can help them to do that. If you are in a high-risk group, this process can seem unfair, but it actually makes a lot of sense. Insurance companies protect their interests while they also protect yours by insuring as many drivers as they can.

For a number of reasons, drivers under 25 tend to have more accidents and, therefore, have the highest average car insurance quotes. At the other end of the scale are drivers between the ages of 50 and 65 who tend to have the fewest accidents. These are the drivers who will likely get the lowest auto insurance quotes. Drivers of other ages fit somewhere along the cost continuum. Senior citizens tend to have slightly more accidents, so auto insurance costs tend to be higher after the age of 65.

You have to keep in mind, though, that your age, in combination with other factors, can make a big difference in your car insurance quotes. For instance, an unmarried male under 25 years of age has a much higher auto insurance premium than does a married man of the same age. Women under 25 years of age also have lower rates, but changing your marital status is easier than changing your sex!

There are things that are in your control and that can influence the cost of your auto insurance. The fewer accidents you have, the more favorably insurance companies will view you. Insurance companies value safe drivers and reward you for being a responsible driver. Always check with several auto insurance companies to get quotes. Different companies weigh generally favorable or unfavorable factors in different ways. Their different formulas can result in large savings for drivers of any age. Spending a little time online or on the phone speaking with agents, can make a difference in how much you pay for auto insurance.

How To Set Up A Plan For In-full Auto Insurance Payments

When purchasing auto insurance, it is always best to shop around at several different companies to insure that your auto insurance quote is the lowest that you can possibly get. Sometimes that will mean paying your auto insurance premium in one payment.

In most circumstances, the auto insurance that you get will be cheaper if you make a lump sum payment, rather than making monthly payments. When you begin to call each company to get an auto insurance quote, ask how the cost will differ based on method of payment. If you are told that your best price can be obtained by paying every six months, or even one time per year, then planning for that financially is your best bet. Here are some tips on planning your auto insurance premium so that it can be paid in in-full payments.

First, write down the amount given to you for car insurance quotes, both the monthly and the lump sum payment. Calculate how much money you will be saving by paying all at once. Most of the time when you are getting car insurance quotes, the insurer will even tell you the exact amount you can save with an all-at-once payment. This is often quite a significant amount of money, and keeping that savings in mind is important when you are planning to pay at one time. People are sometimes worried that they will not be able to come up with enough money to pay at once, but when you look at the savings it can be a big motivator. To plan for this lump sum payment, start by setting aside an amount equal to that which you would be paying for your auto insurance in a monthly payment each month. Keep this money in a separate account, and do not touch it for any reason – even pretend like that money does not exist. You may need to cut out a few extras’ like that specialty coffee every day, or those magazines that you really didn’t need anyway. However, cutting out those extras will net you quite a big amount of savings in the long term.

After saving that amount of money until you have accumulated an amount equal to the full term of the auto insurance policy, immediately contact your insurance company with the payment information. By that time, you will find that you will actually have extra money left over. This is the amount that you managed to save by paying all at one time! Most people find that having this extra cash after making a payment will be a great way to keep them motivated and to give them a real sense of accomplishment.

How Auto Insurance Quotes Are Affected By Summer Weather

Auto insurance is one of the most important types of insurance a person can have aside from health and life insurance policies. It is illegal for anyone to drive on the roads of the United States without some form of auto insurance. An insurance policy does not need to be extensive; the driver just needs to have the minimum as required by the state they reside in to drive legally. Weather conditions in all parts of the country can affect the way drivers operate their vehicles and how car insurance quotes are handed out to those seeking a new policy or a new premium. Make sure you are prepared before beginning your insurance search. This means you should have all of your automotive information on-hand so you can perform the search quickly and effectively.

Aside from the winter months, the summer months pose the most threat to drivers when on the roads, especially when it comes to an auto insurance premium. The weather conditions during the summer can turn pretty severe, as tornadoes, hurricanes, wildfires and floods are common all across the United States. All drivers should protect themselves from the weather conditions by making sure that their auto insurance premium is up-to-date and covers floods, fires, and other natural disasters. There are automotive insurance companies in business today that offer coverage plans for natural disasters, should a driver live in a high percentage area such as Florida, California, or the Gulf Coast of the United States.

Car insurance quotes can be reduced by drivers if they drive safely during wet weather conditions. Always remember that even if a driver has automotive insurance, it does not mean that a lawsuit will not be filed if an accident occurs. Wet weather is extremely common during the summer months when the temperatures warm up, making the roads incredibly slick and treacherous if flooding occurs. In the end, it all depends on where the driver lives when applying for an auto insurance quote from an insurance provider. If a driver lives in a state known for flooding, their auto insurance premium might be higher than a driver who lives in an area that rarely floods.

Some auto insurance companies will increase their rates pending the weather forecast for the upcoming year. Companies will do this in order to protect themselves from major claims coming in should natural disasters occur, destroying thousands to millions of vehicles at once, which would force drivers to pay more money for their car insurance quotes. All-in-all, an auto insurance quote can be determined by an automotive company based on the zip code you enter in their search form.

3 Car Insurance Discounts That Policy Holders Don’t Use Nearly Enough

There are several auto insurance discounts available on the market. Unfortunately, policyholders do not utilize or implement these discounts effectively. It is essential to look for auto insurance quotes at discounted rates. This can help modify an existing policy, or be a cost-effective solution for a new one. One discount offered is full property coverage. When you insure your home, apartment, or condo with a service provider, you can receive substantial auto insurance discounts. You should speak to your insurance agent about consolidating insurance coverage. This will not only centralize your payments, but keep all of your valuable possessions under one insurance umbrella.

You can greatly reduce your auto insurance premiums by combining policies. When searching for auto insurance quotes, check to see if multiple property coverage is offered. Another discount that policyholders hardly use is defensive driving. You can reap the benefits of completing an accident prevention course. Some providers offer up to a 10% discount, sometimes more. You can take this course at your convenience, and do not need a Judge’s approval. In other words, you don’t have to be involved in an accident in order to qualify. There are several online defensive driving courses that will meet your needs. Upon successful completion of the course, simply submit the certification to your agent for review. Your state’s transportation department, of course, should also approve the test.

This is the perfect way to lower your auto insurance premiums. If you are looking to replace a current policy, this information is available at many sites. Car insurance quotes will also offer market comparisons and discounted rates. It is important to see which discounts or promotional offers can best assist you. There are discounts for the entire family as well. Another discount offered is via anti-theft installations. When you install anti-theft devices, you are highly securing your vehicle. Depending on the devices, you can also receive discounts and save money. From wheel locks to digital alarm systems, your insurance premium can significantly decrease. Another factor in lowering your premiums is simply where you park. Parking in a garage with 24/7 security, this too can help lower your auto insurance costs.

There are countless other discounts that are also available. In today’s economic climate, you need insurance discounts more than ever. All it takes is a little bit of searching to find and apply these savings measures. From car insurance quotes to coverage enhancements, there is a wide array of amenities currently available. Statistics show that policyholders either do not know, or do not have time to tap into these savings. This is unfortunate, as it can lead to a great deal of savings for you and your loved ones.

What Factors Determine A High Or Low Auto Insurance Premium

If you drive a car on public roads, you must have auto insurance. Finding good auto insurance is very important. When searching for auto insurance, you must take certain things into consideration. Most importantly you want to have the most coverage for your money. They payments you make for this insurance is called a premium. Auto insurance premiums can vary depending on a number of factors. The first factor is age. Are you a young driver who just got their license? Or are you an experienced driver who has been driving for years? A younger driver is more likely to have a higher premium, while an older and experienced driver will generally have a low auto insurance premium. This being said, older drivers have a higher chance of having negatives marks on their traffic record, which will mean a high premium. If you have a bad record with a lot of speeding tickets or a DUI, or you have had accident claims in the past, you will find that your premiums are very high. This is because you are a risk to the insurance company and it is more likely that you they will have to shell out money on your behalf at some point while you have their coverage. Another factor is location where the car is primarily driven. Auto insurance companies conduct surveys in order to see how much people in a particular area are paying for insurance. They use formulas in order to know how much to charge people in a certain part of town. They will look for trends in accidents and claims. This is why when you are researching auto insurance quotes, you are asked to input your zip code. You will be asked what the primary use for the car is and how far you travel on a daily basis. This is because the more time spent in the car, the higher the odds that you could be in an accident. Another factor involved is gender. This is because, based off the studies conducted by insurance companies, women tend to have less accidents than men. The level of education completed also effects premiums. Having a higher level of education might get you a deal on auto insurance. Another factor is the type of car you drive. Certain models are more likely to be stolen or statics show that they are used recklessly. Which, again, means that the insurance company is more likely to have to pay on a claim. In conclusion, there are quite a few factors that insurance companies have to consider when offering a high or low auto insurance premium to its clients.

Top 5 Reasons For Distracted Driving Auto Accidents

There are five common activities that can inadvertently cause auto accidents if performed while driving. And with any auto accident, it will definitely raise your auto insurance premium. Being conscious of these 5 everyday behaviors and avoiding them will help avoid accidents, and keep your auto insurance payments low.

First, the most common is operating a mobile device while driving. This includes talking, texting, and any other features your mobile device may offer. While many places have passed laws prohibiting the use of mobile devices without hands-free capabilities, there is still an inherent risk of distraction. Which leads to another common distraction: conversations with passengers. These situations typically include spouses/significant others interacting or parents interacting with their younger children. It may be tricky in the latter situation, however if there is a situation with younger children that needs your attention, pull over. The safety of yourself and the children in the car may very well depend on it.

Applying makeup, shaving, brushing your teeth and eating while driving are common distractions. In the case of the first three, concentration is divided between the road and your face, and in the case of all four there is inherent danger of not being in total control of your vehicle. This also can lead to another distraction: retrieving an item. Be it in the glove compartment, middle console, passenger or back seat, it may be best to avoid searching for items while moving. This distraction not only takes eyes off the road, but reduces control of the vehicle. The fifth common distraction while driving that many people seem to overlook is tardiness. That’s right, running late for something increases anxiety, and many drivers are so preoccupied with the concept of being late, that they often drive faster and more aggressively, frequently look at the clock, and engage in other distracting behaviors that were previously listed. While it is very easy to attempt to accomplish several tasks while driving, especially if you’re late, it might be safer to wait until you arrive at your destination or pull over to avoid an accident.

With more vehicles on roads, there are more drivers to be aware of. These everyday behaviors may seem mundane, but shouldn’t be overlooked for their potential to divert attention away from driving. Engaging in any of these behaviors increases risks for an auto accident, and insurance companies are aware of that. A few brokers offering an auto insurance quote may even ask about driving habits to asses risks. Maintaining a focused state of mind while driving is not only economical, but will also help prevent an unfortunate event- and perhaps save a life.

Is Texting More Dangerous Than Talking On A Cell Phone While Driving

Cell phone driving is a dangerous habit that many people participate in on a daily basis. In the comparison between which is worse, chatting or texting, texting is definitely more dangerous than chatting while driving. Here is why; texting requires that you are looking at the phone while doing it. In contrast, with chatting, you don’t have to be looking at anything to engage in a successful conversation with someone.

This is not to say that chatting on your cell phone while driving is a safe option. First, think about how it affects other motorists. After all, we all have places to be and we all have to share the roadways. What are the times you are most tempted to call or text? For example, is it when you are sitting in dead locked traffic or sitting at a stop light? There are most likely cars sitting behind you, waiting, just as you are and you decide to send a quick text to a friend to tell them that you are on your way. Well, within seconds the light can change or traffic can move and all of a sudden you have a bunch of cars honking because they should not have to wait for you to finish your text. Studies have shown that texting or talking on your cell phone while driving increases the rate of accidents similar to drinking and driving.

The road is made for traveling and anything that is impeding that process is seen as a problem. As this has become a more common problem, more and more states are making laws against driving and chatting on a cell phone or texting. These new laws mean that you can get a ticket and a fine for chatting on a cell phone or texting while behind the wheel. These tickets can result in a mark on your record and higher auto insurance premiums, depending on the state that you live in. When researching auto insurance quotes you may now be asked about your habit of texting or chatting on your phone while driving. If you are like everyone else you are concerned with the price you pay for car insurance and you should be doing everything in your power to ensure a lower rate. Texting while driving is a quick way to not only wind up in an accident, but also, as another repercussion, have to shell out exorbitant amounts of money for auto insurance. So, why would you do it? Because it’s convenient? Because you must text that person immediately and it really can’t wait? Well, ultimately with texting and driving the costs outweighs the benefits.

In Which States Is It Illegal To Drive While Using A Cell Phone And Why

One of the main controversial issues in the news is the use of cell phones while driving. Many have said that it infringes upon the rights of individuals and that there should not be any type of ban on how and under what circumstances they can be used. The Department of Transportation has cited numerous accidents that have been caused by drivers being distracted while talking on the phone. Most individuals feel that a driver can be just as distracted while talking to a passenger in the vehicle. There are several states that have banned the use of cellular phones altogether while driving. A few states will allow the driver to use a hands-free set or only use the hand held set during times of emergencies.

The state of California, Washington, District of Columbia, New York, Oregon, Utah and New Jersey all have a ban that forbids the use of hand held cell phones while driving. In the states that have bans, an officer can issue a ticket for a violation that pertains to cell phone usage alone. This does not apply in the state of Utah. According to the Insurance Institute for Highway Safety, a driver in the state of Utah must have some other type of violation along with being cited for using the cell phone while driving.

Due to the attention of the driver not being on the road, serious accidents are happening more frequently. The National Highway Traffic Safety Administration has data to support the increase in accident rates due to cell phone usage while driving. To decrease the rate of accidents that occur while on the phone, strict bans are being put in place. Most cell phones have the capability of sending and receiving text messages. Sending and receiving text messages while behind the wheel is just as dangerous as talking on the cell while driving. New Jersey and Washington are the only two states so far that ban texting while driving. The Governor’s Highway Safety Association can be contacted for more information regarding new cell phone bans.

All drivers have the responsibility to practice safe driving techniques. Driving is a privilege that should be protected. Auto insurance premiums will be high for drivers that have tickets for driving while talking on the cell phone. Young drivers have formed bad driving habits that cause numerous accidents and result in fatalities each year. Trying to obtain auto insurance will cost more once the auto insurance quote is requested and the agent is aware of all types of tickets including ones for cell phone usage. While on the cell phone, driving is considered dangerous.

Why Do Auto Insurance Premiums Change So Often

Motorists that check online for a new auto insurance quote every few months may be shocked to see the vast difference in premiums that tend to occur, especially when the economy is fluctuating. It can seem as though auto insurance premiums are decided haphazardly; after all, even if you don’t change your policy from company to company, you’re likely to see changing premiums. However, the methods that car insurers use to decide rates are far from random and are based on logic. Understanding their methods can make it much easier to find a great auto insurance premium and avoid the occasional rate hike when an insurer tries to sneak one in.

As you might expect, car insurance companies rely heavily on statistics to estimate the probability of insurance claims. The more accurately that they’re able to predict whether a certain individual will make a claim, the more money they’re able to make, since they can choose to refuse dangerous drivers coverage or raise their rates to compensate for their possible losses. The thing is, statistics change regularly, especially the statistics that the insurance companies use. They might look at the likelihood of car theft in a driver’s town, for instance. Car theft costs insurance companies make a lot of money since each claim results in a full payout, so anything that an insurer can do to predict this costly type of claim results in a huge advantage. They’ll look at crime statistics for a driver’s neighborhood, and car insurance premiums will go up if the rate of auto theft increases. Likewise, if a certain age group begins driving more dangerously, their premiums will most likely rise.

The actions of an individual driver are important, too. Each claim results in a higher premium, since there’s a higher probability of a second accident after a first accident occurs. In troubled economies, the actual financial resources of the insurer come into play. Insurance companies must back up insurance policies, and if their parent companies aren’t worth a whole a lot of money, then they don’t have many resources to use when backing up new policies. To compensate, they’ll raise the cost of auto insurance rates. However, if capital isn’t an issue, troubled economies might actually spur lower insurance rates since insurance companies must deal with increased competition to get new drivers to sign up for policies.

In order to control the cost of your car insurance premiums, you should check over your policy every few months and compare it to the ones on other car insurance websites in order to ensure that you are paying fair rates. You may also ask your insurer for any additional tips.

Are Old Cars Better Than New Cars When It Comes To Auto Insurance Costs

Buying a new car is a big decision with many factors to consider. Often, in making this choice, the thought of the auto insurance premiums that may accompany this new purchase is as an afterthought. However, like gas mileage, these premiums add up over the life of the car and should be considered when making purchase decisions. A little research may yield some surprising findings, especially when considering a new car versus an older model. Older cars can actually be better than new cars when it comes to auto insurance costs.

While the factors that go into calculating car insurance premiums can seem obscure to the average insurance consumer, many of the insurance companies’ concerns mirror those of the consumers. At the top of the list of concerns are cost, safety and risk of theft. While other elements come into play when determining insurance rates, a buyer can control these factors. When considering an older model, start with the vehicle’s safety rating. Older models need to have modern safety features to secure lower premiums. Look for models with proven safety records, such as five-star safety ratings from the National Highway Traffic Safety Administration. In general, larger cars have higher safety ratings than smaller ones, but there are exceptions. Safety features such as airbags, seatbelt types and anti-lock brakes can often save you money with your insurance provider. When considering an older model, use these features as a guide to help keep your premium costs down.

Theft deterrent features may also lower you insurance premiums. More expensive new and luxury cars may have lower theft risks, which can make up for the high sticker prices and lower safety ratings. For older models, research theft rates in your area for the type of vehicle you are considering. The National Highway Traffic Safety Administration is a good source for this kind of information. In addition to theft, costs for repair and frequency of claims can also drive up auto insurance premiums. The Insurance Institute for Highway Safety, which provides data on frequency of insurance claims for specific vehicle models, is one resource for investigating potential red flags. When considering an older model, availability of parts and service should also be considered.

Older cars have an initial advantage in terms of auto insurance premiums, given that they are generally less expensive than newer models. Capitalizing on this advantage and translating it to an actual lower premium requires some research and careful decision-making. Talking to an insurance agent and requesting an auto insurance quote is the surest way to determine auto insurance costs. Keeping all these guidelines in mind can help steer you towards auto insurance savings.

Texting While Driving Ban To Lower Auto Insurance Rates Has Strong Citizen Support

Texting while driving is unquestionably of the most dangerous habits that drivers have today. Texting, as opposed to flipping through radio stations or even talking on a cell phone, requires much more of a driver’s attention. That’s because texting requires one to look at the phone/key pad while writing the message, thus causing drivers to take their eyes, and minds, off what’s happening on the road for extended periods of time. This hazardous practice has been compared to drunk driving in many cases. For this reason, there has been strong citizen support of a ban on texting while driving. According to a survey done by the New York Times, 50 percent of survey participants said that the punishment for texting while driving should be just as severe as the punishments for driving while intoxicated.

What does this mean for notorious texters? A texting ban would likely be very similar to the cell phone ban that has been put into effect in various states. A texting ban would require a law be passed that would make it so that anyone caught texting while driving would be fined. Additionally, if the texting resulted in an accident, the penalties would be very severe, likely including an increase in the texter’s auto insurance premiums and large fines. An auto insurance company determines a driver’s insurance rate by looking at their past claims to measure their driving risk. If a the potential policyholder’s driving record indicates accidents caused by texting, an insurance company will see this as a red flag and require the driver to pay high premiums to be insured. Several states have already taken action in this epidemic of distracted driving. California, for example, prohibits any type of cell phone use while driving. A total of 18 states have taken similar action.

Accidents caused by distracted drivers are on the constant rise. The fact that 97 percent of individuals polled by The New York Times support this ban says a lot about the severity of this problem. It is not often that there is such strong support for an issue that suggests taking away a person’s right to do a specific task. However, people are realizing what a serious safety concern texting while driving has become. Unfortunately, while people recognize this fact, there is question whether drivers would actually follow the law. In the same poll, only 42 percent of people believed drivers would stop texting.

So, the next time you are tempted to text and drive, remember the severe financial repercussions you could be facing. Is a substantially increased auto insurance premium worth it? Likely not. Be safe and responsible, don’t text and drive.

Rising Auto Insurance Fraud Affects Premiums

The economy has been bad lately. Many are out of work, leading them to do whatever it takes to earn a living. A common pattern reflecting this has been the use of automobiles to perpetrate crimes. The result has been a rising amount of auto insurance fraud, which adversely affects everyone's premium costs. Since auto insurance is virtually mandatory in most of the states, people are pretending their cars are stolen or intentionally damaging their vehicle in order to get claim money from insurance companies. In some instances, these criminals create accidents by deliberately cutting off other drivers to increase the likelihood of being rear-ended.

When dealing with an "accident," some scammers may appear humble and apologetic, and may even beg you not to call the police. Others may be violent, threatening and eager to claim right of way – calling the police themselves. In some cases, they may have their cars packed with many passengers. They assume that the more the number of people in their car or truck, the more the value of Personal Injury Protection (PIP) payouts. They may even find ways to authenticate their innocence by planting fake witnesses at the accident site. These fraudsters usually work in concert with medical clinics and auto body shops that assist in generating bogus medical bills and repair invoices. These establishments may create invoices for strangely larger amounts than the actual damage or level of injury sustained.

Unfortunately, in most cases, someone or entity eventually has to pay. By law, the insurers of these cars and drivers are expected to compensate for damages. And they are painfully paying handsomely – in some cases, 500 percent more than the total amount invested by the policyholder in the insurance company. For example, assume the amount so far paid to the insurance company by the driver is $500. An arranged accident that involves multiple cars and five or more passengers can easily cost the insurance company as much as $50,000 to cover bodily injury and physical damage to the cars. The most painful aspect of this dilemma is that it is very difficult for the auto insurance companies to distinguish between real and fraudulent claims.

As a result of the increasing number of claims due to fraud, many insurance companies have no choice to but to raise their policyholders' auto insurance premiums. They need to do this in order to cover the claims being filed so that the company can stay afloat.

As common as this sort of fraud is becoming, it is imperative that all drivers are aware so that they know if they are being scammed and how it will eventually affect their auto insurance.

Limits On Auto Insurance Charges: How Much Can They Charge

In tough economic times, Americans look to cut out any excessive costs that they can. In these instances, it seems auto insurance premiums are certainly a large priority for drivers. High-risk drivers, especially, may find that their auto insurance rates skyrocket in a recession, and they accept the charges as legitimate. However, there are limits to what an auto insurance company can charge, and drivers with high premiums should be aware of how some companies operate before they agree to high fees.

It’s important to avoid companies that advertise extremely cheap auto insurance premiums through television and magazine ads. These companies will often give a low rate, then raise your premiums several months in – occasionally claiming that the initial low premium was due to an accounting error.’ This is standard practice for companies that are less than reputable. In many states this ‘low-balling’ practice is illegal. Do not sign contracts that lock you into coverage. Also make sure that in the event you cancel your auto insurance plan, you’ll get back any money you’ve paid towards the premium for a policy that isn’t entirely used. Auto insurance laws vary quite a bit from state to state, but usually a company is legally obligated to return the unused portion of your premium. Remember, the best way to avoid scams is to do a bit of research on the company you’re considering after getting your auto insurance quote to make sure their customer satisfaction level is high and they are established.

Federally, there aren’t a lot of laws on how auto insurance companies operate, but state to state there are quite a few. Unfortunately, it’s hard to spell out how these laws operate, as different states have different mandated minimum coverage and may even have entirely different systems of insurance. For example, Michigan and 11 other states use ‘no fault’ auto insurance systems that can be very complex. Research your state’s laws to find out if you’re paying too much for your auto coverage.

Even if you’re dealing with a reputable company that charges relatively fairly, if auto insurance premiums are high, there are still ways to decrease your own to make them more manageable. All drivers should consider calling around to different companies to get auto insurance quotes. This information can be a valuable tool to negotiate a better rate with your current insurers. If you’ve got a fairly safe driving record and you’ve been with your current insurer for a long period of time, you can often talk them into decreasing your auto insurance premiums by significant amounts.

In this economy, it’s severely important that any unexpected rise in your premiums should result in swift contact with your insurer.

How You Can Keep Your Auto Insurance Premium Rates Low

Keeping auto insurance premiums low when the insurance industry is facing more fraud and natural disaster – and therefore more claims – is a challenge many grapple with every year. Whether you’re simply shopping for the best deal available or need to save money wherever you can, you can keep your auto insurance rates affordable by following a few simple guidelines.

First and most importantly, drive as safely and as little as possible. Customers with clean driving records always pay less for auto insurance than those with histories of traffic violations and accidents. Offering auto insurance premiums to safe drivers is less expensive for insurance companies, as the likelihood of having to pay claims decreases. Additionally, the more often you drive, the higher the chance you will be involved in an accident. Thus, the more miles you put on your car every year, the higher your premium will be. Consider walking, biking, carpooling or taking public transportation to and from work to keep your auto insurance rates down. Second, shop around frequently. There are several online quote comparison tools you can use to accurately compare prices of several auto insurance companies. If you want to ensure that you are paying the lowest possible premiums, do a price comparison three to four times per year.

Third, ask for discounts. Nearly every auto insurance company offers a good student discount, a senior citizen discount, a defensive driving course discount and a loyalty discount. If you don’t currently qualify, consider what changes you might make that could increase your eligibility. Fourth, keep your credit report clean. Since statistics show that people with lower credit scores traditionally file more insurance claims, many companies use a driver’s credit score to help determine their monthly premiums. Increase your credit score by paying bills on time, keeping credit card balances low, and paying off debt.

Fifth, consider lowering your coverage to include only what you truly need. While you are legally obligated to meet your state’s auto insurance coverage requirements, you have many choices about the amount of coverage you purchase. Though more insurance is always the safer choice, full coverage is often cost-prohibitive. Sixth, be aware that the type of vehicle you drive heavily influences your premiums. If you drive an older car that costs less to fix than a new, luxury model, your premiums will be lower. If your car has certain safety features, like electronic stability control or an anti-lock brake system, you are likely to pay lower rates. Before you make an auto purchase, it’s a good idea to contact your insurer and determine which makes and models will keep your premiums low.

Overall, follow these guidelines when it comes to auto insurance and you’re likely to save money in the long run.

Does Your Auto Insurance Policy Cover Your Child While Driving On The Job

Having auto insurance coverage for your whole family is a serious issue to consider. When a teen earns their driver’s license it can be very expensive to cover the cost of insurance on an inexperienced driver. One way many families opt to save is by allowing their new driver to use the family car, as opposed to buying them their own. In allowing your teenager to do this it is imperative that you make sure all the proper insurance coverage is met under your auto insurance policy. This is especially true if you are going to allow your teenage driver to take on a part-time job that requires them to drive around during their work hours.

Make sure to meet with your auto insurance carrier before allowing this so that they can go over your auto insurance policy with you and extend extra coverage where it’s needed. Your insurance provider might not be able to offer you any sort of coverage in this situation. In a case like this, you may have to shop around for a whole new auto insurance carrier and a whole new auto insurance policy. If you are unable to find an insurer who will not cover this sort of risk at all, you may end up taking out a commercial policy on your vehicle.

Most likely, your insurer will have to charge you a larger auto insurance premium to add a teenager using your car for a job. This is because the greater amount of drive time equals more opportunity for an accident, and therefore a greater risk for the insurance company. This rate increase is in addition to the higher cost associated with a young, inexperienced driver. The extra monthly fees are a small price to pay when you consider the peace of mind the necessary coverage will offer you. In addition, it could save you thousands of dollars in the long run. If you go without reporting work-related driving being done by your teenager and they get into an accident, the damage expenses may not be covered by your policy at all.

The high cost of insuring your young driver should not be a reason to get them no coverage at all. There are ways to lower the auto insurance premiums. For example, you can often receive discounts on your auto insurance policy if your teen is on their school honor roll and has kept a clean driving record and legal history.

In order to find the best coverage options in this situation, the best route to take is to do your research thoroughly. Doing this will not only get you and your child the best coverage possible, but will also save you money.

3 States With Largest Auto Insurance Premium Increases In 2009

If you own and drive a car anywhere in the U.S., your auto insurance premiums are a major expense. Just be glad that you don’t live in Wyoming, Minnesota or Tennessee. According to’s Ratewatch, Wyoming premium rates have risen 5.6 percent, the highest increase in 2009 through the end of August. Minnesota comes in second to that at a 4.2 percent increase, followed by Tennessee at a relatively modest rise by 3.1 percent. To date, 2009 insurance premiums for auto owners in these states have climbed the highest and the fastest this year. In comparison, auto insurance rates have either decreased or stayed the same in 37 states.

Why would rates increase at a substantial percentage in these three states? According to the National Association of Insurance Commissioners (NAIC), there are three main reasons why some states have higher insurance premiums than others. If the population of a particular state is more affluent, residents tend to purchase new cars. Typically these car buyers purchase physical damage coverage whether or not the lender requires it. The more coverage on a policy, the higher the auto insurance rate will be. The states with higher populations and traffic density will also traditionally have higher rates because there is a greater risk of being involved in a collision. Automobile accidents in these states result in a higher frequency of claims against policies. Increased auto insurance claims will result in – you guessed it – increased premiums. States that have more high crime areas will also see residents paying higher rates, as auto thefts increase the number of auto insurance claims.

The question is: Do Wyoming, Minnesota and Tennessee fall under any of the aforementioned categories? While each of these states has pockets of affluence balanced with high crime and dense populations, they hardly compete with states such as the District of Columbia, Pennsylvania, Rhode Island and Utah who topped this same list in 2008. Minnesota gets honors for substantial insurance premium increases for both 2008 and 2009. Since the state saw an increase of 6 percent in 2008, do Minnesotans feel relieved to be at a paltry 4.2 percent this year? Tennessee and Wyoming residents truly have a gripe, since the respective 3 percent and 0 percent increases from 2008 have been dramatically increased so far this year.

It seems unlikely that there have been any dramatic changes in demographics, population and density in these states. One must be left to ponder the question of why auto insurance premiums have increased in Wyoming, Minnesota and Tennessee more there than anywhere else in the U.S. Then again, with the way the economy going the way it is these days, nothing should come as a surprise.