Have you ever wondered why good grades get you lower insurance rates?
Statistics Determine Car Insurance Rates
Auto insurance companies employ teams of math whizzes called actuaries. What actuaries do is develop formulas that tell the car insurance companies how great, or how little, of a potential risk you pose to the insurer. Some factors actuaries use to calculate your rates include the probability that you will cause an accident, or how well you can be trusted to pay your car insurance premium on time. Therefore, your gender (women cause fewer car accidents than men), age and driving history are all factors that actuaries use to determine your risk profile, and ultimately your car insurance rates, with your insurer.
Additionally, car insurance companies use your credit rating to determine your future risk. If you have good credit, you are seen as a policyholder who will probably always pay their car insurance on time. Therefore, before you get your first credit card, remember that not paying your credit card bill and getting bad credit will not help you get lower car insurance rates, as well as make many other things expensive too.
Luckily, if you are a hard-working student, statistics conclude that the respect and responsibility you demonstrate in your studies will be reflected in the way you drive. This is significant because most teenage car accidents are caused by irresponsible young drivers. Therefore, actuaries’ premium-calculations respect your intelligence and good judgment by offering cheaper car insurance premiums accordingly. That’s why your good grades get you the best car insurance rates.
How To Make Your Good Grades Get The Best Car Insurance Rates
When you get an car insurance quote from just one car insurance company, you give them the power to give you what discounts they want to when you purchase a policy from them. However, when you comparison shop multiple car insurance companies, you choose which company gives you the deepest good grade discount you deserve. One company evaluates you when you let them, but when you get quotes from multiple companies, you get to screen several auto insurance companies until you find one that gives you the best discount for being the responsible person you are – inside of the classroom, and on the road.
Get Lower Car Insurance Rates
How can you be sure you’re getting the best car insurance rate out there? For starters, don’t waste your time calling every insurer or company in the phone book. At MyCarInsuranceRates.com, you only have to input your basic personal information one time, and we will search multiple companies for you. This way, your good grades get you the lowest car insurance rates from the company who most rewards you for your devotion to school and education.
Saturday, January 15, 2011
Friday, January 14, 2011
Car Insurance Rates, Coverage Options, Forgiveness After DWI, DUI
Once you’ve been convicted of drunk driving, driving under the influence of drugs, or operating a vehicle while impaired (OVI), you need to know how to get affordable car insurance rates after your DWI, DUI or OVI transgression. Car insurance companies heavily penalize drunk drivers, so you might find yourself in a bind after you have been charged with this offense. Your present car insurance company might terminate your driver’s policy for drunk driving or driving under the influence of drugs. However, another car insurance company might choose to do business with you as long as you maintain a clean driving record/history after your misstep.
Car Insurance Coverage Options
Car insurance companies generally only run your motor vehicle report every three years. First, you can outright purchase an older car. A paid-off car that you hold the title to does not need full-coverage insurance, just state-mandated liability coverage. Second, you can get cheap car insurance rates after your DWI, DUI, or OVI by doing business with other car insurance companies that won’t penalize you so severely for drinking and driving. Right away, Internet websites such as Car Insurance Rates can help you locate some of the best auto insurance companies in your neighborhood who will give you another chance after your existing car insurance company terminates your driver’s policy.
Car Insurance Forgiveness Terms
Another way to get good car insurance rates after your DWI or DUI is to maintain a clean driving history after your infraction. Therefore, if you simply maintain a clean driving record, over time a car insurance company might forgive you for drunk driving and eventually provide you cheaper rates when they no longer view you as a high risk driver.
Car Insurance Rate Quotes
Stay on top of this by regularly checking our site after your car insurance company terminates your driver’s policy or labels you as a high risk policy holder.
Car Insurance Coverage Options
Car insurance companies generally only run your motor vehicle report every three years. First, you can outright purchase an older car. A paid-off car that you hold the title to does not need full-coverage insurance, just state-mandated liability coverage. Second, you can get cheap car insurance rates after your DWI, DUI, or OVI by doing business with other car insurance companies that won’t penalize you so severely for drinking and driving. Right away, Internet websites such as Car Insurance Rates can help you locate some of the best auto insurance companies in your neighborhood who will give you another chance after your existing car insurance company terminates your driver’s policy.
Car Insurance Forgiveness Terms
Another way to get good car insurance rates after your DWI or DUI is to maintain a clean driving history after your infraction. Therefore, if you simply maintain a clean driving record, over time a car insurance company might forgive you for drunk driving and eventually provide you cheaper rates when they no longer view you as a high risk driver.
Car Insurance Rate Quotes
Stay on top of this by regularly checking our site after your car insurance company terminates your driver’s policy or labels you as a high risk policy holder.
Thursday, January 13, 2011
Required Information For Getting Car Insurance Quotes Online
Your car is your home away from home, but to drive it legally, it has to be insured. While you might remember car insurance shopping as a time-consuming hassle, today you can be thankful that things have changed. Now you can get free auto insurance quotes and compare them quickly and easily just by going online and visiting sites like Car Insurance Rates. Though car insurance companies are making quotes more accessible, it still helps to know what basic information they need in order to provide you with a quick and accurate auto insurance rate quote.
One of the most important legal requirements for operating a motor vehicle is a driver’s license. Some companies will ask for your license number simply to prove that you can legally drive in the first place. Other information a car insurance company will need to know include the driver’s name, age and sex. Age and whether the driver is a male or female are often used to create a more appropriate insurance quote. Statistics regarding age and sex can indicate the likelihood of a driver to be involved in an accident. For example, it has been found that younger drivers are at higher risk and thus, are not allowed low car insurance rates.
Your financial status is also an important factor in determining the best car insurance quote for you. Auto insurance companies will ask for a proof of income so they can give you the right quote for your finances. They also want to be sure that you will be able to pay for the car insurance coverage they provide. In addition to income, companies are also interested in your credit score. Your credit history allows auto insurance companies to determine how reliable you will be at making payments. Having good credit will pay you back with lower car insurance quotes.
Insurers aren’t shy about taking a peak at your driving record either. If you have a history that makes you look accident-prone, you’re probably not going to get cheaper car insurance rates comparatively. It’ll be tough to find good car insurance quotes anywhere. Bit of wisdom: what goes around comes around, and good drivers get the best auto insurance quotes.
Of course, every company wants to know about the car it’ll be covering. The type of car will tell auto insurance companies what it might be used for and how likely an accident might be to occur. Year, make and model of the vehicle are markers of the vehicle’s value and what it might cost to repair it in the event of an accident. A sporty, German import will demand a higher premium rate than a common grocery-getter like a Honda Odyssey or Toyota Camry.
Online insurances quotes are quick and convenient, especially when you use our car insurance search widget to compare several companies. Still, insurers want to know who they’re dealing with, so if you want to get accurate auto rate quotes, you’ll have to help them get to know just what kind of driver you really are.
One of the most important legal requirements for operating a motor vehicle is a driver’s license. Some companies will ask for your license number simply to prove that you can legally drive in the first place. Other information a car insurance company will need to know include the driver’s name, age and sex. Age and whether the driver is a male or female are often used to create a more appropriate insurance quote. Statistics regarding age and sex can indicate the likelihood of a driver to be involved in an accident. For example, it has been found that younger drivers are at higher risk and thus, are not allowed low car insurance rates.
Your financial status is also an important factor in determining the best car insurance quote for you. Auto insurance companies will ask for a proof of income so they can give you the right quote for your finances. They also want to be sure that you will be able to pay for the car insurance coverage they provide. In addition to income, companies are also interested in your credit score. Your credit history allows auto insurance companies to determine how reliable you will be at making payments. Having good credit will pay you back with lower car insurance quotes.
Insurers aren’t shy about taking a peak at your driving record either. If you have a history that makes you look accident-prone, you’re probably not going to get cheaper car insurance rates comparatively. It’ll be tough to find good car insurance quotes anywhere. Bit of wisdom: what goes around comes around, and good drivers get the best auto insurance quotes.
Of course, every company wants to know about the car it’ll be covering. The type of car will tell auto insurance companies what it might be used for and how likely an accident might be to occur. Year, make and model of the vehicle are markers of the vehicle’s value and what it might cost to repair it in the event of an accident. A sporty, German import will demand a higher premium rate than a common grocery-getter like a Honda Odyssey or Toyota Camry.
Online insurances quotes are quick and convenient, especially when you use our car insurance search widget to compare several companies. Still, insurers want to know who they’re dealing with, so if you want to get accurate auto rate quotes, you’ll have to help them get to know just what kind of driver you really are.
Tuesday, January 11, 2011
How Unsafe Driving Habits Can Affect Car Insurance Quotes
If you have a teenage son or daughter, you’re no doubt bracing yourself for the moment they begin driving. Bad driving is expensive. Not only will a poor driving record increase your car insurance quotes and, ultimately, the premium you pay, but unsafe road conduct might actually lead to injury of yourself or even another driver or property. For obvious reasons, tickets for speeding, no seat belt and other traffic violations can really add up when it comes to looking for car insurance quotes. Being safe on the road is good for everyone and can even prevent extra costs to you.
Auto insurance companies take many factors into account to give you a rate quote. Other factors beyond your control can tell insurers you might be a risk. Even allowing your policy to expire can be a red flag.
Most car insurance companies are able to access your lifelong driving record and will use the information to decide how high or low/cheap your car insurance rates should be. If you have ever been involved in an at-fault car accident, even if it were no worse than a fender bender, you’re more than likely not going to receive cheap car insurance quotes.
DUI’s stemming from drinking and driving can be disastrous to your driving record. Tickets/citations for speeding and reckless driving can be harsh as well, but even mild infractions, such as running stop lights and failing to yield right-of-way are a bad omen to potential car insurance companies. Taking simple precautions, being respectful on the road, avoiding distractions and observing traffic laws can end up saving you thousands.
Cheaper Car Insurance Rates
If you want to get cheaper auto insurance quotes and pay lower premium rates, improve your driving habits and comparison shop with My Car Insurance Rates. By comparing multiple free auto insurance quotes, you’ll be able to find the best deal now. With safe driving habits and an ever-improving driving history, you’ll be cleaning up your record and proving to insurance companies that you’re a safe bet. In many ways, safe driving pays you back by lowering a car insurance company’s overall claims costs.
Auto insurance companies take many factors into account to give you a rate quote. Other factors beyond your control can tell insurers you might be a risk. Even allowing your policy to expire can be a red flag.
Most car insurance companies are able to access your lifelong driving record and will use the information to decide how high or low/cheap your car insurance rates should be. If you have ever been involved in an at-fault car accident, even if it were no worse than a fender bender, you’re more than likely not going to receive cheap car insurance quotes.
DUI’s stemming from drinking and driving can be disastrous to your driving record. Tickets/citations for speeding and reckless driving can be harsh as well, but even mild infractions, such as running stop lights and failing to yield right-of-way are a bad omen to potential car insurance companies. Taking simple precautions, being respectful on the road, avoiding distractions and observing traffic laws can end up saving you thousands.
Cheaper Car Insurance Rates
If you want to get cheaper auto insurance quotes and pay lower premium rates, improve your driving habits and comparison shop with My Car Insurance Rates. By comparing multiple free auto insurance quotes, you’ll be able to find the best deal now. With safe driving habits and an ever-improving driving history, you’ll be cleaning up your record and proving to insurance companies that you’re a safe bet. In many ways, safe driving pays you back by lowering a car insurance company’s overall claims costs.
Monday, January 10, 2011
How The Best Car Insurance Quote Can Be Cost Effective
It is obviously important for many drivers that the cost of their auto insurance premium is within budget, but at the same time, having sufficient coverage is just as essential. While sifting through all the information from so many car insurance companies about policies, premiums, deductibles and coverage might seem intimidating, MyCarInsuranceRates.com can quickly get you on the road to finding the best auto insurance for your needs and budget.
In the search for cost-effective auto insurance, it helps to understand what the term “cost-effective” actually means. Many car insurance shoppers only look for quotes on the premiums and don’t pay too much attention to how much protection the policy provides. A truly cost-effective car insurance policy offers the best coverage for the lowest premium, and the only way to find the right protection is by comparing car insurance quotes.
The internet makes car insurance shopping much easier and can even help you save time and money. Websites like My Car Insurance Rates have helped improve access to information and offer extremely fast search results for auto insurance quotes. Finding the cheapest car insurance with the most comprehensive coverage has never been easier thanks to Internet comparison shopping.
The best insurance option certainly isn’t limited to pairing low premiums with great coverage. It’s also helpful to find out the consumer complaint ratio for a specific auto insurance company from your state’s insurance website. Knowing how happy other drivers are with the car insurance company they chose can help you determine whether the company is worth your business. There are many kinds of discounts, and they vary from company to company. Online Car Insurance Quotes
When you’re looking to invest in car insurance, comparing rate quotes, protection terms and clauses, consumer satisfaction ratings, payment options and discounts can become a very complicated task. Fortunately, My Car Insurance Rates will quickly search for all car insurance carriers offering services in your area, and all you have to provide is your ZIP code. This will allow you to quickly gather and compare free car insurance quotes, as well as policy information and other details from several different auto insurers.
In the search for cost-effective auto insurance, it helps to understand what the term “cost-effective” actually means. Many car insurance shoppers only look for quotes on the premiums and don’t pay too much attention to how much protection the policy provides. A truly cost-effective car insurance policy offers the best coverage for the lowest premium, and the only way to find the right protection is by comparing car insurance quotes.
The internet makes car insurance shopping much easier and can even help you save time and money. Websites like My Car Insurance Rates have helped improve access to information and offer extremely fast search results for auto insurance quotes. Finding the cheapest car insurance with the most comprehensive coverage has never been easier thanks to Internet comparison shopping.
The best insurance option certainly isn’t limited to pairing low premiums with great coverage. It’s also helpful to find out the consumer complaint ratio for a specific auto insurance company from your state’s insurance website. Knowing how happy other drivers are with the car insurance company they chose can help you determine whether the company is worth your business. There are many kinds of discounts, and they vary from company to company. Online Car Insurance Quotes
When you’re looking to invest in car insurance, comparing rate quotes, protection terms and clauses, consumer satisfaction ratings, payment options and discounts can become a very complicated task. Fortunately, My Car Insurance Rates will quickly search for all car insurance carriers offering services in your area, and all you have to provide is your ZIP code. This will allow you to quickly gather and compare free car insurance quotes, as well as policy information and other details from several different auto insurers.
Sunday, January 9, 2011
Getting Lower Car Insurance Rate Quotes For Your Teen or Student
The simple fact is, car insurance rates for teenagers are much higher than for other age groups. Why? Because, statistically speaking, teenagers have a far greater chance of being involved in a car accident than other age groups. In fact, the National Safety Council maintains that teenage drivers are three times more likely to be killed in a car accident than drivers between the ages of 25 and 64. What’s more, statistics show that male teenage drivers are more likely to be involved in auto accidents than female teenage drivers, so female car insurance rates are even cheaper – sometimes as much as 50% lower!
Despite the fact that there’s really no way around higher car insurance rates for teens, you can take a number of steps to find and get the best, cheap auto insurance rates for your teenager. First, send your teenage driver to driving school. Driver’s education not only teaches your teenage driver the fundamentals of navigating the roads, you’ll often get a discount on your car insurance if your teenager successfully completes driver’s ed. And hopefully, driving school will lead to a good driving record/history, which in turn will keep your car insurance quotes lower.
The second way to lower your teenager’s car insurance premium is to buy an older second car for them to drive. Older cars that have less value are generally cheaper to insure, so your monthly rate is likely to be lower than a newer, more expensive car. Plus, if the older car is only worth a few thousand dollars, you might consider forgoing collision insurance, which will also save you money. Remember, collision insurance covers your own car when you are at fault in an accident.
Car Insurance Quotes For Families With Teens
There are hundreds of auto insurance companies offering a wide range of insurance premiums for your teenager, so compare online at My Car Insurance Rates to ensure you are getting the best car insurance rates. Take a moment now, enter your zip code, and get a couple car insurance quotes from leading insurance companies in your area and state.
Despite the fact that there’s really no way around higher car insurance rates for teens, you can take a number of steps to find and get the best, cheap auto insurance rates for your teenager. First, send your teenage driver to driving school. Driver’s education not only teaches your teenage driver the fundamentals of navigating the roads, you’ll often get a discount on your car insurance if your teenager successfully completes driver’s ed. And hopefully, driving school will lead to a good driving record/history, which in turn will keep your car insurance quotes lower.
The second way to lower your teenager’s car insurance premium is to buy an older second car for them to drive. Older cars that have less value are generally cheaper to insure, so your monthly rate is likely to be lower than a newer, more expensive car. Plus, if the older car is only worth a few thousand dollars, you might consider forgoing collision insurance, which will also save you money. Remember, collision insurance covers your own car when you are at fault in an accident.
Car Insurance Quotes For Families With Teens
There are hundreds of auto insurance companies offering a wide range of insurance premiums for your teenager, so compare online at My Car Insurance Rates to ensure you are getting the best car insurance rates. Take a moment now, enter your zip code, and get a couple car insurance quotes from leading insurance companies in your area and state.
Saturday, January 8, 2011
Pay-As-You-Drive Auto Insurance
Pay As You Drive Auto Insurance, frequently listed as PAYD insurance or usage based auto insurance, is the newest car insurance offering on the market today. Usage based policies are available in 27 states, with more adding the feature all the time.
How Is It Different From Traditional Car Insurance Policies?
The idea behind pay as you drive insurance is to reward drivers who drive less often, who are “safe” drivers, and who drive only locally. The idea is that this profile of driver is less likely to be involved in an accident and should be rewarded through lower auto insurance premiums.
For Whom Is Usage Based Insurance Best?
Usage based insurance is great for people who drive less than 30 miles per day on average, such as someone who works from home, someone who mostly uses public transportation (driving only occasionally), a stay-at-home parent who just drives the kids to school or practices, a person who has a company vehicle for which his company pays the insurance and who drives his own vehicle rarely, etc.
How Are Pay As You Drive Car Insurance Premiums Set?
PAYD insurance establishes your car insurance premium based on a combination of three factors – how often you drive (frequency), how far you drive (distance), and how long you drive (time). Some policies will even weight your driving style (e.g. number of hard brakes) or when (more accidents happen at night than during the day).
How Are These Factors Recorded?
Your car insurance company monitors your vehicle usage through a small transmitter you place on the vehicle that measures time driving, number of hard brakes, distance driven, speed, time of day, or whatever variable your specific car insurance company chooses to base its usage based policy.
How Much Does It Save Me?
Usage based car insurance saves the average customer 30 percent off his premium – in some cases, even more. You may also be able to save money through governmental incentives that discourage unnecessary driving, such as a tax benefits (this depends on your state). Many companies offer ways to integrate your usage based tracking device with other technologies, such as your cell phone or GPS, and offer services in tandem for a small fee, such as satellite navigation, traffic direction, breakdown assistance, accident assistance, and theft recovery.
What Are The Drawbacks?
Obviously, you are opening up a huge amount of data to your car insurance company. While you may benefit from this monetarily, some consumers are concerned about potential privacy issues. Some usage based plans will charge policy holders extra for speeding, abrupt lane changes, or driving in a manner the device interprets as being careless.
How Is It Different From Traditional Car Insurance Policies?
The idea behind pay as you drive insurance is to reward drivers who drive less often, who are “safe” drivers, and who drive only locally. The idea is that this profile of driver is less likely to be involved in an accident and should be rewarded through lower auto insurance premiums.
For Whom Is Usage Based Insurance Best?
Usage based insurance is great for people who drive less than 30 miles per day on average, such as someone who works from home, someone who mostly uses public transportation (driving only occasionally), a stay-at-home parent who just drives the kids to school or practices, a person who has a company vehicle for which his company pays the insurance and who drives his own vehicle rarely, etc.
How Are Pay As You Drive Car Insurance Premiums Set?
PAYD insurance establishes your car insurance premium based on a combination of three factors – how often you drive (frequency), how far you drive (distance), and how long you drive (time). Some policies will even weight your driving style (e.g. number of hard brakes) or when (more accidents happen at night than during the day).
How Are These Factors Recorded?
Your car insurance company monitors your vehicle usage through a small transmitter you place on the vehicle that measures time driving, number of hard brakes, distance driven, speed, time of day, or whatever variable your specific car insurance company chooses to base its usage based policy.
How Much Does It Save Me?
Usage based car insurance saves the average customer 30 percent off his premium – in some cases, even more. You may also be able to save money through governmental incentives that discourage unnecessary driving, such as a tax benefits (this depends on your state). Many companies offer ways to integrate your usage based tracking device with other technologies, such as your cell phone or GPS, and offer services in tandem for a small fee, such as satellite navigation, traffic direction, breakdown assistance, accident assistance, and theft recovery.
What Are The Drawbacks?
Obviously, you are opening up a huge amount of data to your car insurance company. While you may benefit from this monetarily, some consumers are concerned about potential privacy issues. Some usage based plans will charge policy holders extra for speeding, abrupt lane changes, or driving in a manner the device interprets as being careless.
Friday, January 7, 2011
Comparing Auto Insurance Rates
Auto insurance rates can vary wildly between car insurance companies but one thing is clear and common – they are rising. In the wake of the recession, more people are keeping older vehicles, whereas previously they would have traded in for newer cars, and, frankly, older cars cost less to insure. In addition, the number of policyholders, who opt to have only liability insurance (no comprehensive coverage, no collision coverage), has risen by almost 15 percent.
Auto insurance companies are receiving less revenue.
As car insurance companies are required by law to maintain a certain balance, auto insurance rates have had to increase to make up the difference. While most increases are minimal, a late 2010 survey by Consumer Reports indicates that 14 percent of policyholders would save money by switching auto insurance companies.
Car insurance companies know this as well, so they find little ways to lower the cost of your auto insurance – allowing you to basically set your own price for auto insurance. Many encourage you to drop your comprehensive coverage (could save you up to 40 percent) or raise your deductible (you save about 10 percent off your premium when you raise your deductible by $250), whereas many other “discount” auto insurance companies are offering lower rates in general. This is where the need to compare auto insurance rates comes into play – not all car insurance is created equal. Following is a brief list of auto insurance components that discount auto insurance companies pare down (and many traditional companies will also), and why you may want to reconsider:
PERSONAL INJURY PROTECTION: Personal injury protection (PIP) is the insurance you carry to cover you and your passengers (e.g. your kids, their soccer team) in the event of an accident.
COLLISION COVERAGE: Collision coverage is the coverage that pays for repairs to your vehicle in the event of an accident. COMPREHENSIVE
COVERAGE: Comprehensive coverage is a popular coverage to drop, but that doesn’t mean you should. This coverage protects you if your vehicle is damaged because of weather (e.g. flood, hail, wind, lightning), vandalized, or stolen.
Auto insurance companies are receiving less revenue.
As car insurance companies are required by law to maintain a certain balance, auto insurance rates have had to increase to make up the difference. While most increases are minimal, a late 2010 survey by Consumer Reports indicates that 14 percent of policyholders would save money by switching auto insurance companies.
Car insurance companies know this as well, so they find little ways to lower the cost of your auto insurance – allowing you to basically set your own price for auto insurance. Many encourage you to drop your comprehensive coverage (could save you up to 40 percent) or raise your deductible (you save about 10 percent off your premium when you raise your deductible by $250), whereas many other “discount” auto insurance companies are offering lower rates in general. This is where the need to compare auto insurance rates comes into play – not all car insurance is created equal. Following is a brief list of auto insurance components that discount auto insurance companies pare down (and many traditional companies will also), and why you may want to reconsider:
PERSONAL INJURY PROTECTION: Personal injury protection (PIP) is the insurance you carry to cover you and your passengers (e.g. your kids, their soccer team) in the event of an accident.
COLLISION COVERAGE: Collision coverage is the coverage that pays for repairs to your vehicle in the event of an accident. COMPREHENSIVE
COVERAGE: Comprehensive coverage is a popular coverage to drop, but that doesn’t mean you should. This coverage protects you if your vehicle is damaged because of weather (e.g. flood, hail, wind, lightning), vandalized, or stolen.
Thursday, January 6, 2011
How Does Auto Insurance Work?
What types of insurance can I get?
The types of insurance you can get will depend heavily on whether you own your vehicle outright, lease it, or have a vehicle loan for it:
*If you lease your vehicle, the leasing company or car manufacturer may require that you insure the vehicle through them or through a company they have partnered with. This may be done as a way to ensure that you maintain the level of coverage they want.
*If you have a vehicle loan, most lenders will require that you have full coverage on your vehicle.
*If you own your vehicle outright, most states will allow you to have just liability coverage.
What is liability coverage?
Having liability coverage means that you carry insurance that covers only the other person’s car in the event of an accident and any injuries sustained by the other driver and his passengers. Any damage to your vehicle will have to be paid out of pocket, or, if the accident is not your fault, the “guilty” driver’s insurance could pay the damages, but damages to the vehicle you hit would be covered in their entirety.
What is full coverage?
Having full coverage on your vehicle means that you have liability coverage as well as collision coverage and comprehensive coverage. The idea is that no matter what happens to your vehicle, aside from maintenance issues, will be covered. It also means that you have personal injury protection or PIP, so that you are covered no matter what happens to you or your passengers.
Your car insurance rate is based on several factors: your age, driving record, marital status, vehicle (age, condition, type, safety features, commonality of theft), and credit history, although some auto insurance companies will include other variables, such as whether you own your home, have a pet, and your profession. Auto insurance companies use these variables as a way to determine the risk insuring you presents.
The types of insurance you can get will depend heavily on whether you own your vehicle outright, lease it, or have a vehicle loan for it:
*If you lease your vehicle, the leasing company or car manufacturer may require that you insure the vehicle through them or through a company they have partnered with. This may be done as a way to ensure that you maintain the level of coverage they want.
*If you have a vehicle loan, most lenders will require that you have full coverage on your vehicle.
*If you own your vehicle outright, most states will allow you to have just liability coverage.
What is liability coverage?
Having liability coverage means that you carry insurance that covers only the other person’s car in the event of an accident and any injuries sustained by the other driver and his passengers. Any damage to your vehicle will have to be paid out of pocket, or, if the accident is not your fault, the “guilty” driver’s insurance could pay the damages, but damages to the vehicle you hit would be covered in their entirety.
What is full coverage?
Having full coverage on your vehicle means that you have liability coverage as well as collision coverage and comprehensive coverage. The idea is that no matter what happens to your vehicle, aside from maintenance issues, will be covered. It also means that you have personal injury protection or PIP, so that you are covered no matter what happens to you or your passengers.
How much does car insurance cost?
Your car insurance rate is based on several factors: your age, driving record, marital status, vehicle (age, condition, type, safety features, commonality of theft), and credit history, although some auto insurance companies will include other variables, such as whether you own your home, have a pet, and your profession. Auto insurance companies use these variables as a way to determine the risk insuring you presents.
Wednesday, January 5, 2011
How to Buy Auto Insurance Online
Buying auto insurance online is a common enough occurrence, accounting for approximately 25 percent of all car insurance purchases. However, when you buy car insurance online, you can easily go wrong, if you are not careful. Even the choice of where to look for car insurance online carries with it the potential to open yourself up to a variety of risks:
Online auto insurance companies include Progressive.com and Esurrance.com – these companies provide you with car insurance coverage – in many cases, in minutes.
Privacy: When dealing with online car insurance brokers, it is very important that you read the privacy policy – no matter how long it is. Most online car insurance brokers have a privacy policy for their site, as well as separate privacy policies for each insurance company they deal with. If you are not careful, you could be revealing loads of personal information that could be used, sold, or otherwise unprotected.
Service: Also, keep in mind that buying car insurance online may be easy and convenient – it allows you to compare different options in minutes and get exactly the coverage you want. If you do not know what type of coverage you need, or you expect your insurance needs to change drastically in a short period of time, you may want to use a local insurance agent as online car insurance brokers and providers provide information but not guidance.
Coverage: One of the biggest risks you face when you use an online car insurance broker or provider is that you will not get the same value for your money that you would from a traditional car insurance company. Many online car insurance brokers and providers are able to offer super-low auto insurance rates because they cut back on coverage – potentially leaving you to cover common expenses out of pocket. For example, many online car insurance brokers and providers will cut back on your comprehensive coverage, meaning that you would not have coverage (or not have much) for weather-related damage (e.g. hail storm, lightning, flood), vandalism (e.g. car gets keyed, windows busted), or theft.
Online auto insurance companies include Progressive.com and Esurrance.com – these companies provide you with car insurance coverage – in many cases, in minutes.
Privacy: When dealing with online car insurance brokers, it is very important that you read the privacy policy – no matter how long it is. Most online car insurance brokers have a privacy policy for their site, as well as separate privacy policies for each insurance company they deal with. If you are not careful, you could be revealing loads of personal information that could be used, sold, or otherwise unprotected.
Service: Also, keep in mind that buying car insurance online may be easy and convenient – it allows you to compare different options in minutes and get exactly the coverage you want. If you do not know what type of coverage you need, or you expect your insurance needs to change drastically in a short period of time, you may want to use a local insurance agent as online car insurance brokers and providers provide information but not guidance.
Coverage: One of the biggest risks you face when you use an online car insurance broker or provider is that you will not get the same value for your money that you would from a traditional car insurance company. Many online car insurance brokers and providers are able to offer super-low auto insurance rates because they cut back on coverage – potentially leaving you to cover common expenses out of pocket. For example, many online car insurance brokers and providers will cut back on your comprehensive coverage, meaning that you would not have coverage (or not have much) for weather-related damage (e.g. hail storm, lightning, flood), vandalism (e.g. car gets keyed, windows busted), or theft.
Cheap Auto Insurance
The car insurance premium you are approved for may be tantalizingly low, but cheap car insurance almost always means that there are extra fees, a large list of non-covered items and circumstances, skimpy coverage, etc. The following are some common ways low cost auto insurance companies provide such low auto insurance rates:
• Vehicle Value: The valuation of a vehicle may be standard – most insurers and lenders use Kelley Blue Book values or some other such service. Who is to say if a vehicle is in “fair” or “good” condition? Low cost car insurance companies may devalue your vehicle in order to offer you a lower car insurance premium – do not be fooled. If your vehicle gets totaled, your car insurance company will only pay the value listed; so, if your car insurance agent lists your vehicle as being worth $5,000 and bases your premiums on this, even if your car is worth $11,000, you will receive no more than $5,000 if your car is totaled.
• Waiving Coverage: Some low cost auto insurance companies will have you waive coverage instead. For example, in states like Pennsylvania, tort coverage (coverage for you, the driver; includes damages to your own car and personal injury costs) can be waived. While waiving your tort coverage may be a sure way to a lower car insurance premium, doing so also removes your ability to claim compensation if you are the victim of an accident.
• Liability Levels: Some auto insurance companies will offer cheap car insurance premiums by manipulating your liability levels as well. Liability coverage protects you financially if you are in an accident; liability covers the amount for which you are liable. While each state has its own minimum levels for liability coverage, advisable liability levels are often much higher; if you do get in an accident and do not have enough liability coverage to cover the damages (and lawsuit), the burden falls to you personally.
• Comprehensive Coverage: Comprehensive coverage is a sort of catchall; it covers you if you have hail damage, vandalism, or a tree falls on your car. Low cost auto insurance companies also frequently do not provide comprehensive coverage on your vehicle in order to be able to give you a lower quote. Hidden Charges: Lastly, keep in mind that it is also not uncommon for there to be hidden fees and charges within your cheap car insurance policy.
• Vehicle Value: The valuation of a vehicle may be standard – most insurers and lenders use Kelley Blue Book values or some other such service. Who is to say if a vehicle is in “fair” or “good” condition? Low cost car insurance companies may devalue your vehicle in order to offer you a lower car insurance premium – do not be fooled. If your vehicle gets totaled, your car insurance company will only pay the value listed; so, if your car insurance agent lists your vehicle as being worth $5,000 and bases your premiums on this, even if your car is worth $11,000, you will receive no more than $5,000 if your car is totaled.
• Waiving Coverage: Some low cost auto insurance companies will have you waive coverage instead. For example, in states like Pennsylvania, tort coverage (coverage for you, the driver; includes damages to your own car and personal injury costs) can be waived. While waiving your tort coverage may be a sure way to a lower car insurance premium, doing so also removes your ability to claim compensation if you are the victim of an accident.
• Liability Levels: Some auto insurance companies will offer cheap car insurance premiums by manipulating your liability levels as well. Liability coverage protects you financially if you are in an accident; liability covers the amount for which you are liable. While each state has its own minimum levels for liability coverage, advisable liability levels are often much higher; if you do get in an accident and do not have enough liability coverage to cover the damages (and lawsuit), the burden falls to you personally.
• Comprehensive Coverage: Comprehensive coverage is a sort of catchall; it covers you if you have hail damage, vandalism, or a tree falls on your car. Low cost auto insurance companies also frequently do not provide comprehensive coverage on your vehicle in order to be able to give you a lower quote. Hidden Charges: Lastly, keep in mind that it is also not uncommon for there to be hidden fees and charges within your cheap car insurance policy.
Tuesday, January 4, 2011
Why Teenagers or Students Can Expect To Pay Higher Auto Insurance Rates
As parents of teenage drivers know well, auto insurance rates for teenagers are quite expensive, even more than usual. There are a number of reasons why teenagers pay higher car insurance premiums than other age groups.
No Driving Record
The first reason young driver’s auto insurance is so expensive is because they have little to no driving record. Without the ability to gauge just how safe or dangerous a driver your teenager is, an insurance company assumes they may be dangerous, and they adjust premium rates accordingly, usually in line with general statistics for your driver’s age and gender.
Statistical Dangers
Without an established driving record to review, car insurance companies rely heavily on statistics to calculate the risk posed by a teenage driver. Teenage drivers are much more of an accident risk, or high risk, than adult drivers. Young drivers are involved in a much higher percentage of catastrophic traffic accidents than adults. As a result of these statistics, auto insurers consider teenagers to be a much higher insurance risk than people of other age groups, and therefore do not provide the same low car insurance rates they do responsible, mature drivers.
Foolish Behavior
It’s probably not much of a surprise that automobile insurance companies believe that teenagers engage in a higher incidence of foolish and dangerous behavior when driving a car. Teenagers are known to race other cars, perform silly and dangerous stunts, weave in and out of traffic, drive fast and recklessly, and become much more easily distracted with the radio and cell phones. Even though your teenager is likely to require more expensive auto insurance, there are a number of things you can do to get lower car insurance rates. You can buy them an older, less expensive car; you can increase their deductibles; you can apply for good student discounts as well as low mileage discounts since they mainly commute to and from school; parents can require their children to take a driver’s education course; and you can lower their coverage and liability limits.
Car Insurance For Teenagers
If you have a teenage driver in your family and would like to find the best quotes on car insurance, My Car Insurance Rates can help you find a great rate within just a few minutes. So take a moment now and compare auto insurance rates from multiple nationwide car insurance companies, and start saving on auto insurance today.
No Driving Record
The first reason young driver’s auto insurance is so expensive is because they have little to no driving record. Without the ability to gauge just how safe or dangerous a driver your teenager is, an insurance company assumes they may be dangerous, and they adjust premium rates accordingly, usually in line with general statistics for your driver’s age and gender.
Statistical Dangers
Without an established driving record to review, car insurance companies rely heavily on statistics to calculate the risk posed by a teenage driver. Teenage drivers are much more of an accident risk, or high risk, than adult drivers. Young drivers are involved in a much higher percentage of catastrophic traffic accidents than adults. As a result of these statistics, auto insurers consider teenagers to be a much higher insurance risk than people of other age groups, and therefore do not provide the same low car insurance rates they do responsible, mature drivers.
Foolish Behavior
It’s probably not much of a surprise that automobile insurance companies believe that teenagers engage in a higher incidence of foolish and dangerous behavior when driving a car. Teenagers are known to race other cars, perform silly and dangerous stunts, weave in and out of traffic, drive fast and recklessly, and become much more easily distracted with the radio and cell phones. Even though your teenager is likely to require more expensive auto insurance, there are a number of things you can do to get lower car insurance rates. You can buy them an older, less expensive car; you can increase their deductibles; you can apply for good student discounts as well as low mileage discounts since they mainly commute to and from school; parents can require their children to take a driver’s education course; and you can lower their coverage and liability limits.
Car Insurance For Teenagers
If you have a teenage driver in your family and would like to find the best quotes on car insurance, My Car Insurance Rates can help you find a great rate within just a few minutes. So take a moment now and compare auto insurance rates from multiple nationwide car insurance companies, and start saving on auto insurance today.
How Payment Options Affect Car Insurance Rates And Premiums
Every driver has to have car insurance, and My Car Insurance Rates makes it easy to one-stop shop several auto insurance companies for cheap quotes, saving you time and money. However, when most policy shoppers go looking for the best quotes, they tend to forget about one of the key factors in saving money: payment options. When choosing a payment option, it’s always good practice to watch for details that might be easy to overlook. Most car insurance companies charge a fee for paying in installments, which increases your total annual car insurance rates. Additionally, customers might find extra billing and processing fees tacked on to their car insurance quotes if they choose this option while shopping around.
Those who favor the monthly payment plan must always remember to pay on time, because anyone who pays after the due date will get hit with a late fee. Some car insurance companies offer an automatic pay service which allows each monthly payment on the premium to be automatically deducted from the customer’s checking account. This allows for an affordable plan with no possibility of late fees. While the convenience and affordability is quite alluring, any customer who prefers this option must be diligent about keeping his or her checking account stocked with available funds or there cheap car insurance rate won’t be so affordable anymore.
If you plan to make credit card payments electronically, whether online or over the phone, be sure to find out about transaction fees for using the service. Payment Options and Finding Cheap Car Insurance Rates
To get the best rates on car insurance premiums, start your search for quotes with My Car Insurance Rates, and then once you’ve selected the best company and policy for you, choose to pay your premium rates in full. In the long run, this is the most efficient and cheapest way to pay as far as payment options go. If you can afford to pay your premium up front, do it. Unfortunately, many auto insurance buyers are not able to make the full premium payment up front. Thankfully, other options are available.
Choosing a payment option is very important, so for more details and assistance with making the best, affordable choice, search for affordable car insurance quotes and companies in your area, and if you like, choose to have an insurance representative contact you to answer any questions or concerns you may have.
Those who favor the monthly payment plan must always remember to pay on time, because anyone who pays after the due date will get hit with a late fee. Some car insurance companies offer an automatic pay service which allows each monthly payment on the premium to be automatically deducted from the customer’s checking account. This allows for an affordable plan with no possibility of late fees. While the convenience and affordability is quite alluring, any customer who prefers this option must be diligent about keeping his or her checking account stocked with available funds or there cheap car insurance rate won’t be so affordable anymore.
If you plan to make credit card payments electronically, whether online or over the phone, be sure to find out about transaction fees for using the service. Payment Options and Finding Cheap Car Insurance Rates
To get the best rates on car insurance premiums, start your search for quotes with My Car Insurance Rates, and then once you’ve selected the best company and policy for you, choose to pay your premium rates in full. In the long run, this is the most efficient and cheapest way to pay as far as payment options go. If you can afford to pay your premium up front, do it. Unfortunately, many auto insurance buyers are not able to make the full premium payment up front. Thankfully, other options are available.
Choosing a payment option is very important, so for more details and assistance with making the best, affordable choice, search for affordable car insurance quotes and companies in your area, and if you like, choose to have an insurance representative contact you to answer any questions or concerns you may have.
Liability Car Insurance
Liability car insurance is a type of auto insurance that protects you if you get into an accident with another vehicle – this type of car insurance will pay for the damages to the other vehicle involved and any injuries sustained by its passengers. With the economy being so rough post-Great Recession, many consumers have chosen to save money by holding on to their vehicles longer (the current average age for vehicles is around 8 years), driving less (or not at all), or converting to liability car insurance – essentially dropping their comprehensive coverage (coverage for weather, vandalism, and theft) and collision coverage (coverage for your vehicle if you are in an accident) from full coverage auto insurance.
This practice will normally save you 30-40 percent off your auto insurance premium. On the contrary, there is a variety of reasons why liability car insurance is never really enough:
• It Only Covers Part of It: Liability car insurance provides coverage for the other driver’s vehicle and injuries, as well as his passengers. It also covers lawsuits and defense costs if you are sued, lost wages, medical bills, etc. However, given that most liability car insurance limits are less than $35,000 per person and $50,000 per accident, the likelihood that your liability car insurance policy will cover all the costs associated with the accident, leaving you to pay out of pocket for any amount over that, as well as pay for any damages to your own vehicle or injuries you sustain.
For example, if you do not have comprehensive coverage, you would have to pay out of pocket if you ran into a deer, were caught in a hail storm, or had your car vandalized. Even if your vehicle is totaled, if you do not have anything more than liability coverage, you get nothing.
• You May Be Required to Carry More: In addition, keep in mind that carrying only liability insurance may not even be an option for you – if you do not own your vehicle outright (e.g. you lease or you purchased your car using a vehicle loan or financing and are still paying on it), you are usually required to carry full coverage auto insurance as part of the terms of your financing agreement.
This practice will normally save you 30-40 percent off your auto insurance premium. On the contrary, there is a variety of reasons why liability car insurance is never really enough:
• It Only Covers Part of It: Liability car insurance provides coverage for the other driver’s vehicle and injuries, as well as his passengers. It also covers lawsuits and defense costs if you are sued, lost wages, medical bills, etc. However, given that most liability car insurance limits are less than $35,000 per person and $50,000 per accident, the likelihood that your liability car insurance policy will cover all the costs associated with the accident, leaving you to pay out of pocket for any amount over that, as well as pay for any damages to your own vehicle or injuries you sustain.
For example, if you do not have comprehensive coverage, you would have to pay out of pocket if you ran into a deer, were caught in a hail storm, or had your car vandalized. Even if your vehicle is totaled, if you do not have anything more than liability coverage, you get nothing.
• You May Be Required to Carry More: In addition, keep in mind that carrying only liability insurance may not even be an option for you – if you do not own your vehicle outright (e.g. you lease or you purchased your car using a vehicle loan or financing and are still paying on it), you are usually required to carry full coverage auto insurance as part of the terms of your financing agreement.
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