Posts Tagged ‘auto insurance rates’

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Examining the Causes of Auto Insurance Rate Increases

Thursday, June 10th, 2010

We all want to know what we can do to lower our auto insurance rates. However, what many of us fail to realize is that we may be doing a lot to jeopardize our chances of good rates!

Good auto insurance rates are earned, and there are many ways in which we can achieve competitive auto insurance rates. However, at the same time, there are many mistakes we can make that are sure to send our rates through the roof:

  • Be responsible for a car accident - If you are at fault in a car accident, expect your auto insurance rates to increase. Your history with your auto insurance company, as well as the insurer’s policies, will likely dictate exactly how much you can expect your auto insurance rates to increase.

  • Modify your vehicle - If you like to modify your vehicle with “souped up” parts and accessories, your auto insurance company may end up raising your auto insurance rates. Often times, these types of modified cars are considered to be a higher risk for auto insurance companies because they assume that drivers who own these types of cars are more likely to drive recklessly.

  • Get convicted of a DUI - Expect your auto insurance rates to go through the roof if you get convicted of a DUI. In addition, many auto insurance companies will cancel your policy; particularly if it isn’t your first offense.

  • Marry someone with a reckless driving past - Although you may have a clean record when it comes to driving, if your spouse can’t say the same then you will likely be hit with high insurance rates.  If you add a driver to your policy who has a record of reckless driving your policy price will then be determined based on the other driver.

  • Purchase a sports car - Many types of vehicles that are deemed to be sports cars will come with higher auto insurance premiums. Other types of vehicles may also come with higher insurance premiums for different reasons. For example, some types of cars are stolen more often, while SUVs may come with higher premiums because of their risk of tipping over.

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Are your Distractions Raising your Auto Insurance Rates?

Monday, June 7th, 2010

We all like to think that we’re plugged in when we drive, but the fact of the matter is that many of us are guilty when it comes to distracted driving. In fact, it is estimated that distracted drivers caused nearly 6,000 fatal crashes in 2008 alone.

There are three types of driving distractions, according to Distraction.gov: visual, manual and cognitive. Have you eaten while driving? Have you made a phone call or texted a friend while driving? Have you applied lipstick or read a letter while driving? If so, then you, too, are guilty of distracted driving.

And your distracted driving may, in the end, cause you auto insurance rates to skyrocket. Here’s what you can do today to ensure your safety, your passenger’s safety and the safety of other motorists, all the while preventing an accident which can raise your insurance rates:

  • Although not engaging in any type of conversation is the best rule to follow while behind the wheel, it is also not very realistic. Therefore, you can protect yourself from distracted driving by not participating in any argument or heated discussion behind the wheel. In addition, if your children are misbehaving, instead of attempting to deal with the situation while driving, pull to the side of the road to take care of the situation. In addition, let your children know that you are unable to turn around and pick up toys or hand them items while driving.

  • Any type of technology that takes your mind or eyes off the road is best used only when your car is in park. If you have difficulty not addressing each text message you get while driving, turn off your phone to resist the temptation. In addition, let your friends and family know that when you are behind the wheel that you cannot partake in any conversations.

  • Manage your time better so that your driving time isn’t spent rushing from Point A to Point B and tending to multiple things. In other words, give yourself plenty of time to leave in the morning so you aren’t applying makeup, eating or rushing the kids to school at the last minute. When we are in a hurry we are often distracted, so make a point of turning over a new leaf and giving yourself plenty of time each day to accomplish your daily activities.

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Simple Ways to Keep your Auto Insurance Rates Affordable

Monday, March 15th, 2010

Auto insurance shouldn’t break the bank. In fact, given the competition in the auto insurance market, it is quite possible to find a great policy that is both reasonably priced and comprehensive.

Always remember that there are several auto insurance carriers available, regardless of where in country you reside. However, beyond find the best rate, there are a number of things you can do on your end to lower your auto insurance premiums and save big:

  • Buy a smaller car - Simply put, smaller cars cost less - sometimes much less - to insure than larger cars. Keep in mind, too, that smaller cars just don’t save you money on auto insurance premiums; they also save you on gas and on maintenance costs. Consider, for example, the cost of tires for a small car versus the cost of tires for one of the larger, sport utility vehicles. If you are in the market for a new car, contact your auto insurance carrier and ask them for insurance quotes for both smaller cars and larger cars; you may very well find yourself shopping for a smaller, more economical vehicle.

  • Play it safe - This may seem like a no-brainer, but the fact of the matter is that not many people think about their auto insurance coverage when they get behind the wheel. Aside from the obvious increase in auto insurance premiums should you become involved in an auto accident, also consider speeding tickets, as fines and points can certainly mean an increase in your auto insurance premiums.

  • Consider a professional - If you have a teenage driver, consider enrolling them in a safe driver course. Many auto insurance companies offer great discounts for teenage drivers who pass these tests.

  • Raise your deductible - Consider a slight increase in your deductible, as this can often significantly lower your monthly premium amounts. However, you will also need to make sure that you have the cash in case you become involved in an accident and need to pay out the deductible. It’s always a smart idea to keep your auto insurance deductible amount tucked away in a money market or savings account in case you need it.

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When to Contact your Auto Insurance Company

Wednesday, February 10th, 2010

When was the last time you contacted your auto insurance agent?

If you’re like most motorists, the last time you thought about your auto insurance was the day you purchased it. However, in order to save your budget and ensure that your auto insurance meets your needs and wants, it is important to give your auto insurance some thought from time to time.

Here are some great times to contact your auto insurance agent:

  • When you buy a house - Most insurers offer both auto and homeowners insurance, which could save you big when it comes to purchasing a home. In fact, most auto insurance companies can offer discounts of up to 10 percent when you purchase both your auto insurance and homeowners insurance through the same company. Plus, it can lessen the hassle of purchasing homeowners insurance if you already have auto insurance through a particular company, as your bills and statements can be combined.

  • When you change jobs - If you change jobs and you find yourself traveling more or less, it is important to point this change out to your auto insurance agent. In particular, you may be able to save on your auto insurance rates when you can prove that you are spending less time behind the wheel. For individuals switching from working outside the home to working in the home, this can mean substantial savings on auto insurance.

  • Before you purchase a new car - One of the first phone calls you should make before purchasing a new car should be to your auto insurance agent. After all, if you are budgeting for a new car, you certainly don’t want to wait to find out about your monthly auto insurance premiums until after you purchase a car.

  • Every year - Always stay on top of your auto insurance rates, and don’t assume that just because you’ve been a customer for several years that you are getting the best rate. Check out other insurers’ rates and contact your auto insurance agent if you’re not so sure that you are still getting the best rate.

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The Best Ways to Protect your Car from Theft

Monday, December 21st, 2009

Our auto insurance rates are affected by many things, including theft. If your car is stolen or damaged and you must make an insurance claim to have it repaired or replaced, your auto insurance rates will likely see an increase.

With this in mind, it is important to do what you can to prevent your car from being stolen:

  • Remove the keys from your ignition - This may seem like a bit of a no-brainer, but the fact of the matter is that many individuals leave the keys to their car in the ignition while the car is parked in their driveway. It is important to realize that car thieves are all too aware of this, which is why many individuals are shocked to find that their car was stolen from their driveway.

  • Lock your doors - Don’t rely on your vehicle’s security system to keep your car from being stolen; instead, make a point to ensure that every door on your vehicle is locked.

  • Use your vehicle’s security system - Just like door locks, vehicle security systems only work when they are utilized. Use your vehicle security system every time you exit your vehicle, even if it’s just for a few minutes. Many individuals are surprised to find that their vehicle was stolen in the few minutes that it took them to stop into a grocery store or a bank.

  • Hide all valuables - Leaving valuables in plain view inside your vehicle tempts thieves to break into your vehicle, so don’t give them any reason to smash a window or damage your locks. Hide all valuables, including GPS systems, cell phones, purses and shopping bags.
  • Roll your windows up all the way - Make a point to check all of your windows before exiting the vehicle. Often times, a vehicle window that is open just slightly allows a car thieve to slide a tool through the window and unlock the door.

  • Park in well-lit areas - If at all possible, avoid dark parking lots and streets, not only to prevent a car theft, but to protect yourself, as well.

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How to use the Internet to Find Great Auto Insurance Deals

Friday, December 4th, 2009

We see it all the time: auto insurance companies touting their savings. So, how can you wind your way through all of this information and find the best deal on auto insurance?

The Internet may be your best bet when it comes to tracking down great auto insurance rates and, lucky for you, it is also the most convenient way to compare auto insurance companies and their rates.

Receive Online Insurance Quotes

Before you go online and visit the websites of the auto insurance companies, you should have all of your information readily available. This may include the make and model of your vehicle, the mileage of your vehicle and details about the condition of your vehicle. The website may also ask you about your personal information, including any previous parking tickets or moving violations.

Try Auto Insurance Calculators

You can also obtain fairly accurate auto insurance quotes by using an online auto insurance calculator, which is available on many of the auto insurance websites. Although these calculators can not provide you with the bottom line regarding your auto insurance rates, it can give you a general idea of what you will pay. These online auto insurance calculators are quite easy to use and take only minutes to complete.

Understand your Needs

It is important to fully understand which type of auto insurance you are interested in, as well. You will need to make a decision regarding your deductible and your coverage. If you are financing a vehicle, you will need to be fully insured; vehicles that are paid off, however, do not need to be fully insured, so it pays to learn about the different levels of auto insurance and which one is best for you and your budget.

Remember Customer Service

It is important to understand, however, that you may choose your insurance company for more than just budgetary reasons. Customer service is highly important to most drivers, as dealing with an unhelpful insurance company when you are trying to submit a claim can be downright infuriating. It is because of this that many individuals choose their insurance company based not only on their rates, but on their customer service, as well.

It is quite easy to search online for customer reviews of insurance companies. Often times, these community websites can provide you with plenty of information regarding the company’s overall reputation with its customers.

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How Cell Phone Habits Can Raise Your Auto Insurance Rates

Thursday, October 22nd, 2009

Before you reach to respond to that text or return that call as your cell phone rings, ask yourself if your desire to communicate is worth spending hundreds of dollars.  According to recent studies, the use of a cell phone while driving can lead to an incredible surge in auto insurance premium prices.  As cell phones are often attributed to accident-provoking distractions for drivers behind the wheel, setting your cell phone aside as you cruise along your commute can ensure that you’re driving with greater caution and greater savings.

Cell Phones and Auto Insurance

According to reports, drivers who tend to use their cell phone while operating a vehicle are far more likely to be involved in costly accidents.  As accidents ultimately cause insurance companies to fork out more money for repairs and damages, insurers are undoubtedly opposed to such hazardous habits.  In fact, some advocates opposed to cell phones while driving have equated the use of a cell phone to be as equally as harmful as driving while intoxicated!

Adding to the potential risks related to accidents and injuries, simply using a cell phone while driving can result in a serious fine and ticket.  As a rising number of states are banning the use of cell phones while driving, any citizens refusing to adhere to these restrictions can be hit with a large fine and a mark on their driving record.  In fact, if ticketed in some states, you may be additionally penalized with points on your driver’s license.  With a large number of points, your insurance company will undoubtedly view you as a less reliable driver.  As auto insurance rates are calculated using a formula that factors one’s accident, ticket, and overall driving history, even one ticket can lead to higher insurance costs.

Alternatives for Safe Cell Phone Use

Fortunately, if you feel you simply cannot avoid using your cell while driving, you still have safe and legally viable options.  With innovations, many recent car models come equipped with hands-free “blue tooth” features, allowing drivers to call, speak, and hear cell phone conversations through their vehicle’s stereo speakers.  Adding to this, cell phone companies now offer an array of hands-free gadgets to enhance the ease and safety of your use of a cell phone.  Ultimately, to avoid spending extra bucks on insurance, find out alternative options to replace the riskier hands-on cell phone habits.

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How a DWI / DUI Can Raise Your Auto Insurance Rates

Thursday, August 20th, 2009

If you make the unfortunate choice of driving under the influence of alcohol, then you are putting both your life and others’ lives in serious danger.  Adding to this incredible risk, you’re quite likely to be charged with a DWI or DUI.  A DWI, or driving while intoxicated, is a charge that is filed when an officer suspects that an individual has been operating a vehicle in an intoxicated state.  Often more threatening and consequential, a DUI charge, also known as a driving under the influence charge, results when an individual is classified as “legally drunk” or under the influence when operating a vehicle.  With either a DWI or DUI, your auto insurance rates can skyrocket, as even 1 of these 2 charges sends the message that your a risky driver who is more likely susceptible to costly accidents.

Auto Insurance Costs with DWI / DUI Charge

While a DWI / DUI charge will undoubtedly require the payment of various court costs, legal fines, and other fees, most DWI / DUI charges will further result in incredibly high insurance hikes.  After being convicted of a DWI / DUI charge, then an insurance provider will generally respond with the following consequential actions:

  • The provider will raise a driver’s insurance rates (often through the increase in a driver’s premium), as the price for these higher rates will not necessarily provide greater coverage benefits
  • If a driver is still insured by a company, then the driver may be labeled as a “high risk driver,” which automatically forces a driver into a less ideal coverage plan with higher personal costs / out of pocket expenses
  • A driver’s previous coverage plan will be reduced with greater coverage limits (IE: decreased reimbursement maximums, less accident protection coverage, etcetera)
  • A provider may simply drop a driver from being covered, as a DWI / DUI charge sends a red flag to insurance companies, alerting providers that the driver has engaged in seriously risky behaviors that could result in immense financial, property, and physical damages

As most states require all drivers to carry current auto insurance coverage, any driver who is dropped from his / her insurance provider will need to pro-actively find another insurance plan.  Alternative insurance providers that extend coverage for convicted DWI / DUI offenders may limit their coverage amounts and damage protection; as a result, all drivers seeking reputable auto insurance policies after these serious charges will need to carefully evaluate the fine print and protection details of any new insurance package.

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How Much Will Your Marriage Cost Your Auto Insurance Rates?

Thursday, August 13th, 2009

If you thought the proclamation of “I do” was nerve-wracking, wait until you find out how marriage can impact your auto insurance rates! While planning for a wedding and subsequent marriage involves an incredible amount of scheduling, compromise, and an array of additional demands, the nuptials to your beloved fiancé can alter your insurance rate in a variety of surprising ways.

Marriage and Auto Insurance Shifts

An Unfortunate Increase

As auto insurance rates are calculated with a variety of factors in mind, your own driving history, accident history, claims history, and even your credit history can contribute to the cost of your overall auto insurance policy. When choosing to marry, the histories of your spouse will also be added to this policy-cost calculation! As a result, if your spouse-to-be has a rough accident record and / or a weak credit score, you may need to plan for an unfortunate rise in rates. Depending on your own unique marital situation, if worried about an increase, then meet with an insurance advisor or check with online insurance sources to find out how you can obtain better coverage and rate quotes by insuring your vehicles separately.

Living Happily Ever After!

Yet, while an increase could be a possibility for some newlyweds, most married couples with average / above average driving and credit histories should be entitled to fairly significant auto insurance rate reductions! While insurance rates are certainly calculated with driving and financial histories in mind, most insurance providers consider a married couple to be more stable and reliable, as the commitment of marriage involves serious responsibilities.

These steps down the isle can help you step towards greater savings, as most married couples can apply for discounts by combining their auto insurance policies with one provider. Specifically, if prior to marriage each individual had received auto insurance coverage from two different companies, opting to combine the policies with one of the companies will allow you to typically maintain and / or improve your coverage while reducing the cost. As an insurance company will undoubtedly be glad to accept new, reliable, and safe clients, adding one’s spouse to the plan allows both the insurance company and the newlywed couple to reap greater financial benefits.

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Insurance News: Why Are Ohio Residents Paying More for Insurance?

Tuesday, August 4th, 2009

According to recent reports, the average rates for Ohio’s most popular auto and home insurance providers have been on the rise. As official analysts reveal, Ohio’s top ten private insurance companies have increased the cost for customers from 2008 to 2009. While the reasons for these increases vary, Ohio residents are concerned that their recent rate hikes are due to unsubstantiated causes. To find out why your coverage costs may have been effected, evaluate the reports offered by insurance analyst experts.

The Rise of Rates in Ohio

Analysts report that the top ten insurance providers in Ohio have increased rates by varying amounts. Specifically, in 2008, the top ten auto providers have raised rates by 0.8 percent. Additionally, in 2008, the top ten homeowners insurance companies have raised rates by a dramatic 6.9 percent. According to investigations, the increase in auto and homeowner rates were due to a variety of catalysts.

The Raise in Auto Rates

The boost in auto insurance rates for Ohio drivers was reportedly caused by:

  • Medical costs
  • A rising number of cars (in Ohio) that needed repair costs
  • Weather-related claims
  • The rising number of cars on Ohio roads / road construction / maintenance costs

The Rise in Homeowner Rates

With a different set of factors, homeowners are now paying more for their insurance due to factors such as:

  • Building costs
  • Additional material costs
  • Weather-related claims

Are Ohio Residents Paying More and Getting Less?

While many Ohio residents are upset with their rising insurance costs, the Ohio Department of Insurance Director, Mary Jo Hudson, has announced that, even in spite of rate increases, Ohio is still known to have some of the lowest rates in the country. Currently, according to the National association of Insurance Commissioners, Ohio is reported to have the 13th lowest auto insurance rates and the 6th lowest homeowners insurance rates when ranked among other states. Furthermore, Ohio residents can generally rest assured that, although they are paying more, their policies have most likely not reduced in coverage / protection. While the insurance rates for Ohio drivers and homeowners is expected to continually rise in 2009, experts predict that any increases should be minor.

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