Posts Tagged ‘competitive auto insurance rates’

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.

Your Checklist when Buying Auto Insurance

Friday, February 19th, 2010

Do you know the right steps to take when purchasing auto insurance?

Although you can just as easily choose a company out of the Yellow Pages and purchase your auto insurance through them, it really is in your best interest to do your homework and go through the proper channels so that you can be sure you are receiving the most comprehensive auto insurance at the most competitive rates.

Your auto insurance checklist:

  • Check out your state’s auto insurance requirements. Each state has their own set of minimum auto insurance requirements that must be met in order to own a vehicle, so make it a point to educate yourself on these requirements before you begin the process of shopping for auto insurance.
  • Determine your budget and how much you can afford each month for auto insurance. Don’t make the mistake, however, of choosing less expensive auto insurance that does not provide adequate coverage. Remember: consider not only your monthly auto insurance premium, but also your out-of-pocket expenses should you need to file a claim. Often times, it makes more sense to pay a slightly higher auto insurance premium than to be stuck with a high deductible in the event of an accident.
  • If you have coverage now, contact your auto insurer and ask for a detailed description of your auto insurance benefits. This will allow you to easily compare your current coverage with other auto insurance policies.
  • Inquire about discounts. For example, many insurers will offer significant discounts for individuals who carry more than one policy through them. Many people, for example, carry both their homeowners/renters insurance and auto insurance through the same company.
  • Before you decide on an auto insurance company, check their financial stability and ratings through your state’s insurance web site. You can ask friends and family members for their recommendations regarding auto insurance policies, and you may also contact your local BBB for information on them.
  • Make sure you go through the proper channels and cancel your current policy only after you have secured a new one.

How to Find Good Auto Insurance when your Credit is Bad

Wednesday, December 2nd, 2009

Good credit is essential for a wide variety of things, including auto insurance. A strong credit rating is often essential for securing the most competitive auto insurance rates, although finding car insurance when you have bad credit is still possible.

A good credit score often shows an auto insurance company that you are a responsible individual; convincing an auto insurer that you are responsible when your credit says otherwise, however, can be quite difficult.

You may encounter auto insurance companies who simply refuse to insure you when you have bad credit. You may also encounter auto insurance companies that demand upfront payments instead of monthly payments. Finally, you may pay much higher rates than individuals with good credit.

Auto insurance companies generally run credit checks on applicants because they want to be sure that they will pay their monthly premiums on time, without fail.

It is possible, however, to secure auto insurance, at a competitive rate, even if your credit rating is lower than average:

  • Shop around and get several quotes. Like motorists with good credit ratings, it always pays to compare rates from several auto insurers before deciding on a policy. However, it becomes all that more important when you have poor credit, as the rates and policy terms can vary widely from one company to the next. In other words, take your time and get quotes from at least three or four different auto insurance companies.
  • Research auto insurance companies online. It may be much easier to get quotes and information from several different auto insurance companies by visiting them online. Many auto insurers have user-friendly websites that feature online calculators; these calculators can provide you with a fairly accurate rate quote for auto insurance.
  • Work on your credit score. Don’t simply let your credit problems be forgotten. Work towards paying off your debts and improving your credit score so that you can revisit your auto insurance rates in a year or two in hopes of securing lower rates for your auto insurance. Remember: it is never too late to work towards better credit.