Why and when Auto Insurance Firms Raise Premiums?

You have had a good look around this time and managed to find a fantastic quote and now very happy with your policy choices. You may think that you are done for a while since you have arranged auto renewals as well. And you don’t need to worry about your policy as it will be rolling over. You are not alone to have these ideas in your head as most motorists think that they can just let their policies renew automatically.

Actually, if you see your rates are gradually coming down as you don’t make any claims you may be in the right place and carry on. However this is not always the case and more and more people find that their rates are increased. In some cases they have a pretty good idea why that may be and sometimes they may not have a clue. We will have a look at why companies can raise your rates and what it means in the light of timing.

car insurance premiumsUsually, policies are sold for a term of six months or a year. It would be a surprise to see if your insurer is requesting more money than agreed at the start. This may be due to mistakes made in premium calculations and can happen. But the main reason would be that they found a new information about you and taking it into account. Many states allow companies to make changes to policies within the first sixty days or they can even cancel the coverage. If they have found something that bothers them like too many traffic tickets or DUI committed by one of the listed drivers they have two options. Either they cancel the policy or ask for more money in line with the risk.

Usually it is more common to see premiums raised at the renewal period and this is understandable. Both insurers and policyholders are free to go their own ways once the policy expires. Most companies will do a recheck on their policyholders before they send a renewal quote. They will check credit score, accident records and DMV driver license files. If they find anything negative there they will make adjustments to terms offered.

The good news for motorists is that companies have to explain why they are increasing your premium. Asking the question would be a good start when you see a rise on costs. It is possible that company decides to increase rates because they suffered too many losses last year due to claims. In such cases, you may check other providers and see how their prices fair against your renewal. You insurer may have really been over competitive last year and charged you too low.

In each cases, you are free to look at your alternatives. And it would be smart to look at them in the light of your current situation. You should see this as an opportunity to have a look at your policy coverage and make sure it is still relevant to you. Prices do go up and you may have to deal with it.

June 1st, 2014 Uncategorized Comments Off

Key Components of a Vehicle Insurance Policy

When you are buying a vehicle insurance policy you want to balance your actions. On the one hand you want to find a decent coverage and a reliable insurer. On the other hand, you want to make sure that you don’t overstretch your budget by paying too much for the priveledge. Finding a happy meium is possible for most people. They can buy low cost auto insurance coverage by shopping around for the best deals. And they can buy at least the essential components of a policy that will protect them well in the event of a claim.

Your financial and personal circumstances will be the main determinant when you want to insure an automobile. If you are struggling to find money for insuring your car because your budget is tight, you may want to purchase the basic legal cover as cheaply as possible. This is understandable and may be the case for quite a few motorists. Below several key components of a policy are explained and discussed.

Basic Liabilities Auto Insurance Policies: Every state in the USA has their own insurance laws and regulations. They decide the level of basic coverage every one must buy within their boundaries in order for them to be allowed to drive a car legally. Without such coverage you can find it impossible to register your vehicle and get fines when you are caught. This policies cover the property damages and injuries caused to third parties. These can be bodily injuries to other motorists and pedestrian, damages to automobiles, loss of wages and damages to properties like buildings and post boxes.

Liabilities policies don’t cover any property losses and injuries suffered by the policyholder or his family. So, most people buy further coverage to insure themselves and their cars. it is up to individuals to buy only the essential covers or go fancy and buy a lot more.

Personal Injury Protection:   PIP pays for the injuries suffered by the policyholder or family members no matter who is at fault. These could be medical bills or loss of wages due to injuries. If you live in a no fault state, this cover will probably be part of your compulsory policy. You should consider your health insurance coverage and decide to buy this cover or not.

Collision Coverage: This part pays for the damages to insured cars due to crashes. Most people with cars that cost fair amount of money would want to add this cover as well. For many people, this may not be seen as addition as they will consider it essential part of a policy.

Comprehensive Coverage: It deals with any other damages to automobiles but collision. These can be storm, flooding or damages from falling objects, theft, vandalism and other accidental damages. The same principle applies for the owner of autos with reasonable value. They cannot take a chance with their investments by forgoing this part. When you have a loan or lease on the automobile both comprehensive and collision coverage will be demanded by the lender or lessor.

Plus gap insurance will probably be required to cover any shortfall between what the insurers would pay when the car is totalled and the outstanding loan amount.

Uninsured Drivers Cover: This coverage may be already included in your policy depending on your state. It is compulsory for insurers to include this in some states.

There are plenty other protections a motorist can buy from legal expenses cover to rental reimbursement. In order to make an informed decision you will need to think about the value of any additional cover. Some people choose to absorb the risks associated with driving where they can and only insure the larger losses they cannot handle on their own. And some people prefer to insure every little loss  rather than exposing themselves.

January 25th, 2014 Uncategorized Comments Off

Finding Low Cost Auto Insurance

Are you struggling to find affordable car insurance quotes no matter how hard you try? You are not alone and there are many low income families who finds premiums too high for their budget. This problem is highlighted especially when you are living in a city center location. The rates can be a lot more higher in cosmopolitan areas. When you add high rents as well you can see why it would be difficult for families to cope with costs.

In some cities uninsured automobiles can be as high as twenty percent. This is a real problem for authorities who are responsible in setting the minimum liabilities policy requirements. A few states are trying to find a solution for this problem and coming up with new low cost coverage arrangements. The aim is to get more motorists buy insurance cover and reduce the burden of uninsured drivers on the insurance industry and local authorities.

cheap car insuranceWhen a driver is uninsured and cause an accident he cannot pay the damages caused to others and road structure. These costs have to be handled by auto insurers of third party drivers. In a way, insured drivers end up paying for uninsured one. This results in higher premiums for every body else. And the states and local authorities have to face the costs themselves.

The solution offered with low cost policies is seen the way forward. In an attempt to reduce costs and make it more affordable some states agree to reduce the level of minimum coverage and create special types of coverage. The premiums are brought down by way of cutting cover. This is not the ideal solution but it is one that can get more people on board.

These policies are not available to everyone. There are qualification requirements like earning thresholds and location. Your household earnings need to be less than certain amount a year. Then, you can purchase them through your state insurance department or participating insurers. The schemes are usually run by the state and you can find more information from your state insurance commissioner’s website.

One of the states that run these programs is California. They manage these programs for a while now and thank to it they could bring the number of uninsured vehicles down to the levels of national average. In California you can get covered for about $400 if you meet the qualification requirements. The premium cost could be as low as half the cost of a standard basic mandatory coverage that makes them highly desirable.

Generally, states that offer these packages feel they can now go heavy on drivers who fail to provide valid proof of insurance. They believe that they have taken away the obvious excuse of policies being too expensive. For example, California State rolled heavy penalties for being uninsured in conjunction with low cost policy offers. They believe that these two factors were instrumental in bringing the numbers of uninsured drivers down.

So, your first job is to call your state and find out about availability of any special deals for poorer families. They will guide you through their program or tell you where you can find them. You can alternatively search online to see your options.

 

September 26th, 2013 Uncategorized Comments Off

Consider a Low Mileage Auto Insurance Policy & Save

There are many families who don’t drive their automobiles as much as the national average. This could be for many reasons like having great public transportation and congested roads, working from home or driving a company car to and from work. They still like the convenience of having an automobile available to them whenever they want. They may go to their weekly shopping and family and other social visits with it. Being retired or semi retired is another reason why people don’t drive much as well.

It would be unfair for those people to pay the same amount of premium as the people who drive thousands of miles more every year. Understandably the risks of having an accident or getting other damages to your vehicle will be much less when it is sitting on your driveway most of the time. As we know that risks are the main factors in premium calculations you can expect to pay less when you drive less. Not many people or auto insurers can argue with this logic and many of them offer attractive savings.

pleasure only auto insuranceYour first step should be to figure out exactly how much you are likely to drive next year. Looking at how many miles you have driven last year would give you a good idea and companies and agents can help you as well. Once you know the figure you should call your broker, agent or insurer to let them know the changes in your life and yearly mileage. This should normally do the trick and you should be on your way to lower premiums.

Another option is to look at how you drive your automobile. Generally, companies categorize them as commute and social driving, and pleasure only. If you are using your auto for daily commute to work you will need to buy the first type of coverage. Depending on how far your work is from home you would be travelling a few thousand miles a year thanks to regular commute. It is actually more than that. When you are commuting you will be using your auto frequently or at least twice a day. These frequent usage means that you may need to pay higher premiums.

If you don’t commute to work because it is walking distance to home, you are retired, working from home or using public transport you should let the agent know about it. You may be able to buy a pleasure only policy that can be cheaper. These policies cover you for mainly social calls, travels to holiday destinations, grocery shopping and taking children to classes and so on.

While considering low mileage pleasure only policies you should be selective as well. Some of these policies may be very strict and say no commute at all. But a few companies put workable limits to commute like you cannot use your auto for commute more than six times a month or so. This is just an example and you need to check the conditions with your insurer. There may be times that you may need to take your car to work. It could be because public transport is on strike or you need to carry a birthday cake for one of your colleague or something. Make sure it is not taken away from you completely with pleasure only policies.

 

March 20th, 2013 Uncategorized Comments Off

Automobile Sales & Car Insurance Advertisements

Recently there is a surge in automobile sales. It appears that people have been holding back on big ticket spending waiting to see some green shoots in the economy. Now those floodgates are open and people are buying cars to replace their old ones or for the new drivers in the family. This surge is good for manufacturers and it is good to see that people are feeling fine about the prospects. The low interest rates may be helping as well with cheaper auto loan costs.

Many people make the mistake of focusing heavily on buying a vehicle and don’t think about insuring it until they are about the take their new auto home. This provides a great opportunity for dealers to suggest brokers, insurers or sell policies themselves through their insurance department. A few dealers are well equipped to have an in house insurance broker to service the new auto buyers through their network of showrooms.

happy teenager with new carYou may initially think that what a lovely people who help you arrange coverage as well as selling the vehicle. You may need to hold on to that thought a little longer. Some of them may really be nice and negotiate special packages from insurers for their customers at affordable premiums. It is fair to say that these nice people are in the minority and you need to be aware of it.

However, a few of them loves to take advantage of captive market and your desire to buy a policy quickly so that you can drive home. This may result in higher costs for you as you haven’t taken your time to research your alternatives and found the best auto insurance quote you can get.

The best thing would have been is to get a few quotations beforehand for the type of car you are considering buying. You don’t have to own the car at the moment to be able to get a quote for it. Quote sites are widely available on the internet and you can get several of them in less than half an hour.

If you arrived to the dealer without this research and you bought a car you still have several options. One is as described above to buy coverage through the dealer or a company they recommend without checking other prices. This is not recommended at all. The second option is to drive home or ask the dealer to deliver it to your home with their own insurance coverage. Some dealers are actually nice enough to arrange coverage for few days for you until you sort your own policy.

The last option is to leave the vehicle at the dealer as it would be covered there until it leaves the premises. If not, you agree but not finalize the purchase until you arrange insurance cover. Then, you start searching for agreeably priced policies either at home or at the dealer. Most websites are now mobile friendly that allows you to check them on your internet connected hand held devices. They have a call now button instead of get quotes that is handy.

October 8th, 2012 Uncategorized Comments Off

Budget Planning for your Car Insurance Premium

Personal choices play a very important role in choosing the right policy coverage. While some like to buy the largest cover provisions possible others may choose to keep things simple and costs low. Therefore, it is impossible to tell you how much coverage you should be buying. There is no such thing as perfect policy that fits everyone. However, there are nice and reasonably priced package policies that are sold like hot cakes. These are known as standard policies and you can find them at the low and high end of the market.

It is undeniable that your premium costs must fit with your budget. However, it wouldn’t be right to think how much you should pay for vehicle insurance and look to see how much coverage your predetermined dollars can buy. This is same as cutting corners on coverage to save money. Buying the sufficient level of protection is as important as buying them at affordable rates.

Insurance policies are very essential to your financial planning. While you are trying to save little money now you may put yourself in real difficulty in the future. It may be a struggle to pay a little more premium every month but you may be able to manage it with a little planning. On the other hand, you may not be able to handle paying large damage repair costs to your vehicle out of your pocket and at once. This begs another question of what happens if your vehicle is totaled?

Do you have enough money to buy another one? Not many people have thousands of dollars lying around in savings accounts. If it was, you wouldn’t have problems paying the premium for the coverage you need now. Also, you may have used your available credit to buy the current auto and you may not be able to get further advances from your bank or credit cards. Overall you will place yourself in a very difficult situation by skimping on coverage today.

Instead you should think about a sensible policy coverage for you automobile and try to buy it at a reasonable cost. There are a few tricks you could use to keep them in line with your budget. One of the most effective methods is to shop around for the best prices on the market. As mentioned above there are package policies that have good or excellent coverage provision. You may go for the one that is insuring you pretty well but not for everything. When the money is tight you may not be picky about a few small things.

driving comfortablyThe most important thing is to make sure you get covered for possible large losses. This generally requires you to buy sufficient level of liabilities coverage as well as collision, comprehensive and uninsured driver coverage. Then, you would be much more comfortable with your purchase and you can enjoy driving without worrying about accidents. Nobody likes to get involved in a crash and no one will knowingly run into them. But without sufficient coverage you would be scared even more.

September 25th, 2012 Uncategorized Comments Off

Criminal Convictions and Car Insurance Premiums

You have had criminal records and you served your time. Now you are out and want to get back to normal. You want a car and you may need it to get to work anyway. The next step is to consider insurance coverage. You are likely to face problems with some companies who want to know about your criminal history and take it into account while calculating premiums. They can  normally ask questions about your past convictions and use it against you.

If your conviction was driving related you have got to tell them about it. Keeping it to yourself would be material misrepresentation and will make your policy null as soon as the insurer finds out about it. It doesn’t matter that you have just submitted a claim. they can get out of it if they find out that you have been lying.

auto insurance after jailThis point is very important when you have other criminal convictions. You don’t want to tell lies but you don’t want to fully disclose as well. The trick may be that you find a company who is not asking about your convictions other than the driving related ones. It is up to the company to ask you the right questions and it is your job to provide as accurate as possible details to those questions.

However, you may be penalized for time inside regardless of insurers knowing about it or not. When you are out after certain time served you would have an insurance history at all. So, you would be considered as a new driver or even worse as the one who let his policy lapse. Therefore, you may start from the higher end of premium costs and work your way down as you stay away from accidents, claims and traffic tickets. It may take a while but you will get there. Usually you should see your first discount after the first term without any troubles.

You have got to be extra careful with driving especially when you are on probation. In some states you may get criminal charges as a result of traffic accidents. Furthermore, some states sees driving without insurance as criminal offence while other may consider it as a traffic offence. The implications of them can a whole lot different on your probation conditions.

Regardless of how it is seen you will have to tell your insurer about DUI and other driving related convictions. They are naturally considered material facts in premium calculations and issuing of a vehicle insurance policy. You insurer will be able to find out about it in any case and it will make matters worse. If you manage to get a policy that is based on lies you may be wasting money. As soon as you are found out you will lose your coverage and you may not get a refund.

It may be tough to find affordable policies after you leave prison and you may feel that you have served your time. We are not going to pick an argument with you on that but this is how it is. You may be served well if you contact an experienced broker to help you find an agreeably priced coverage.

 

July 14th, 2012 Uncategorized Comments Off

Why Auto Insurance Rates Go Down at Age 25

Teenagers are seen the highest risk drivers for many reasons. They are young, daring and have no driving experience that they can get into accidents faster than they realize. The statistical evidence is strongly against the teenagers. They are four times more likely to cause an accident compared to a mature driver over the age of twenty five year old. This makes this particular birthday extra special for drivers.

girl driverYoungsters get the highest rates in their first year of driving because this is the most difficult year. Many people have accidents in their first year. Practicing with an instructor is a lot safer and they have to make decisions on their own once they pass their driving license tests. Apparently, they make a few wrong decisions that lead to accidents. That is why companies try to avoid them unless you offer sack load of money as a premium payment.

After the first year you should start to see your first driving related discount if you don’t make any claims or have traffic tickets. If you have a serious traffic violation like speeding you are back to the jail house as far as insurers concerned. If you have a DUI forget driving for another year or so and may be longer if you don’t have a rich dad or you are not head hunted by a Wall Street firm.

This gradual decline of premiums is very important to keep your focus on. You don’t have to wait to be a full grown adult to get discounts on automobile insurance. As mentioned above as early as next year you can start enjoying discounts. You may enjoy other discounts for being a good student or even paying the full premium at once in the meantime.

However, year twenty five appears to be the milestone for auto insurers. They put conditions on the policy that exclude any driver below the age of 25 and so on. They clearly see drivers mature at this age and don’t need to be specially whetted to be allowed behind the steering wheel of a car owned and insured by someone else.

You may see a special bonus at this age but it may not be huge especially when you have been getting all sorts of discounts already as a result of your good driving history. Good motorists are recognized even when they are still young. If you have been driving since 16 and had no accident so far it is a pretty good indicator that you have a level head over your shoulders. And it is a good indication that you will carry on like this from now onward. Considering you are young and you have many years of premium paying life ahead of you most companies would be keen to sign you on.

On the other hand, you cannot expect much savings even when you are 25 if your driving history is crap and you have a few claims and traffic tickets to your name. These are real evidence of driving skills and capabilities and not just your age.

June 18th, 2012 Uncategorized Comments Off

Working with Local or National Auto Insurance Company

Choices available to motorists are spoiling these days. They can go with a local or large national corporations. Furthermore, they can pick a broker just down the road to work with or they can contact any other one licensed to sell policies within their states. People have no problem with doing business online or through e-mails these days that local boundaries have been well and truly broken for some times.

Nevertheless, many people value face to face communications and choose a local agent over going direct or working with another one in a different location. Buying local has many advantages as the broker or company in your area understand your needs and problems of finding coverage. They know the special conditions that may apply due to hurricanes or tornadoes. They can advise you better and ensure that you are well protected even it means you need to buy additional cover.

Choices of InsurersIt has social benefits as well that many people value. For example, when you buy local money stays local and provides employment and spendable income that benefits other businesses. Losing essential services because they don’t get enough customer is sad and brings down local economy. We have seen over the years that train and bus services get cut down because they are not viable any more. Sometimes, even local health care services may be closed when they don’t have enough customers. This would be mean that you will have to go to big city each time you need one of those services.

People realize this now and want to make sure no more closures in their areas. They want to buy their meat, vegetables, fruits, insurance and many other products from local shops known to be supplied by local farmers and so on. Buying local should never be overrated no matter how many big stores we have nearby.

Insurance products are no different in this aspect. When you can get similarly good coverage at decent prices from a local auto insurer the choice may be easier. But you may be able to find more inclusive policies from larger companies and they may be a lot cheaper. In that case, you may have to go with the larger provider even though they may have their head offices on the other side of the country and their telephone support comes from outside of the USA.

While there are still wonderful local insurers many companies are becoming more centralized. They handle most of the customer service from one location for everyone. When these obvious cost savings are reflected on the policy costs it is a win win situation for both policyholders and insurers. Who doesn’t want to save money?

Furthermore, the internet brings distance closer to you, actually right into your living room. People can quickly check their option and communicate with other providers no matter what they are buying. They can get bulk goods delivered if need be. But this is never the problem with car insurance policies as they are available for immediate download on to your tablet, phone or laptop.

May 28th, 2012 Uncategorized Comments Off

Perfect Car Insurance Policy

So, what is a perfect auto insurance policy money can buy? Is there such thing anyway? Start asking these questions is great and can take you to your dream policy. Everything starts with the motorist wanting to be insured properly. They can look at their needs first and their budget second and try to get what they want without breaking the bank.

The whole process always starts with the owner. Wherever they go they are the ones who will provide the basic details required to arrange coverage. They need to tell about the drivers, cars and what they want covered. Then, there are other details like zip code, profession, credit score and yearly mileage. These are the ingredients that will make your cover.

If you have no clue about how to arrange your policy you shouldn’t worry about it. Many people learn a lot during the process of getting quotes and they wonder why they haven’t done it before or more regularly. Each question in a quote form forces you think about the components of your vehicle insurance policy. As you continue down the list of answers you may realize that you are forming the basis of the contract between you and the insurer.

As long as you do things for a reason and within a reason you should come out with your perfect policy at the end. For example, you are getting quotes to make sure you don’t end up with an expensive coverage. This is fine but you should remember that you shouldn’t start dropping coverage as it will bring down the premium. It is very tempting to do it but you may regret it big time when you have a claim. You cannot go back and fix it at that stage and therefore you need to get it right at the beginning.

There are three essential components that make up a perfect coverage. The first one is as the name suggest coverage. You need to be well protected with it and this is the whole point of buying insurance in the first place. Think about what are the possible risks you are facing and you will get there. For example, you need to buy sufficient liabilities coverage just in case you may be sued following an accident you caused. Secondly you want to protect your investment on the car from thieves, vandals, crashes, storms and floods. This in insurance terms mean collision and comprehensive. So, you see how your wants turn into your protections.

Second ingredient is a reputable insurer. They are going to pay for your losses and they must be in a position to be able to do that. Also, they must be willing to do so as they want to establish in the industry and keep you happy for years. When a supplier has the right mind to provide exceeding customer service your job gets easier. You don’t have to fight them over each time you need their help as they already know what is expected of them.

The last ingredient is the price. You love it all but you cannot splash a lot of money to get a particular policy. You have other needs and they need money as well. So, you have to get the price right even you have to negotiate in the process or choose a less known insurer because of the price.

February 29th, 2012 Uncategorized Comments Off