Archive for September, 2009

Things Your Car Insurance Company May Not Tell You

Friday, September 25th, 2009

One of the most frustrating things about owning a vehicle is playing the insurance premiums game. Your car insurance premiums are like a volatile chemical compound, meaning they can be easily changed by the slightest change without you even knowing it. Many car insurance companies will not tell you these factors so it is important to know them going in.

1. Your Credit Score – This is pretty well known, but important none the less. Your credit score has a direct affect on how much you pay for your car insurance. Car insurance companies, like credit card companies know that someone who pays their bills on time offers more stability than someone who doesn’t and in turn provides less of a risk for accidents and tickets. This factor is known as your “Insurance Risk Score” and is not readily available to you but you can get a fair estimate of it from your credit reports.
2. Your Driving Habits – Pretty cut and dry here – your driving habits have a direct effect on how much you pay for auto insurance. In fact, some companies will increase your premiums 40% for your first at-fault accident. Follow the rules of the road and look for an insurance company that offers an accident forgiveness policy for the first mishap behind the wheel.
3. Your Friends Driving Habits – Are you a first rate driver? Then it may be wise not to trust your friends. If you loan your car to a friend and they decide to go joy-riding or lose control during some bad weather you will have to file a claim. You may be in the clear if your car was taken without permission, but can still be held liable if they are uninsured or the damage is beyond their policy limits.
4. Your Car’s Value – Just because your car looks like the day it rolled off the lot or is considered a classic doesn’t mean you’re going to get what you think it is worth if the car is totaled. Every car insurance company has a list of values for different makes and models of cars which may or may not be the Blue Book value. The list is based on a number of factors, and will probably not include any upgrades you performed. Keep detailed records of anything you do to your vehicle as well as maintenance records if you want to fight this one.
5. Your Car – Sure, that fancy sports car may seem like a great idea but you better get ready to keep paying well beyond the sticker price. Car insurance companies use a ratings system to determine the risk involved for a type of vehicle, such as theft and even the chances of you joyriding. (Honestly, are you more likely to floor it in a new Camaro or a Prius?)

Understanding the factors that go into your car insurance premiums can not only help you come to terms with your monthly payments but can also give you some insight into how to lower them. Take these factors into consideration the next time you shop for car insurance.

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Safe Driving Tips for Mobile Phone Users

Friday, September 25th, 2009

If you’re not one of the millions of Americans who dials while driving, it is likely you know someone who does. This practices is known to increase the risk for accidents and traffic fines. Avoiding roadway incidents can help keep insurance rates in check. Here are some approaches to staying safer on the street.

* Limit phone use: While this is the most obvious method, it’s one that may be difficult for some drivers. The Pew Internet and American Life Project has tracked how Americans are becoming more connected through (and to) their mobile devices. However, research by institutions like Carnegie Mellon University show that mobile devices distract the driver, whether the device is being operated manually or hands-free. Drivers who are attentive to the road ahead can better react to obstacles in the street, changing conditions, and other drivers.

* Know the law: The National Safety Council keeps updated information about states that restrict mobile device use while driving. Restrictions limit behavior such as manual operation of devices while driving (versus hands-free use), driving while texting, and use of devices by teenagers. Also, NSC’s website indicates whether police officers apply these laws as a primary enforcement (motorists can be stopped for breaking the law) or as a secondary enforcement (motorists can be held accountable only if stopped for other reasons.) Learn the rules of the road to avoid these fines.

* Keep your hands on the wheel: Punching buttons and looking at your mobile’s screen while driving is dangerous. Hands-free devices aren’t optimal for driving safety, but they can prevent you from losing sight of what’s ahead. Most manufacturers sell systems for mounting phones in your car. Think about the design of your car before buying since your interior may be more suited to a specific mount, such as one that sits above your radio or connects to the windshield. To start talking hands-free, explore the features of your device. Most have slots to plug in ear bud headsets, which keep your conversations private from passengers. Also, some phones come with “speaker” buttons to amplify calls and pick up your voice. Newer devices use Bluetooth technology, which allows the driver to employ a headset similar to the ear buds but without any wires. Also, with Bluetooth-enabled cars, drivers can turn their stereo into a system for communicating with the other caller. Test any of these methods before getting on the road so that calls take place without the distraction of making adjustments.

With all of the above, remind yourself while driving just what the stakes are if a lapse in attention happens at the wrong moment. Above all else, stay “in touch” with the road.

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No Fault Accident…Why the Increase?

Friday, September 25th, 2009

There you are, sitting at a stop sign waiting for the cross traffic to pass when you are rear ended. Hopefully in this instance the impact from the collision wasn’t enough to cause physical harm to you or your passengers. But either way, through no fault of your own, you were just involved in an accident. With all of the things that are going through your mind, there is at least the relief knowing that the accident was not your fault and therefore you don’t have to worry about your car insurance rates going up.

Or do you?

It really depends. If you have had a spotless record up to this point you probably have nothing to worry about. However, if you have had an accident or any other infraction before you were rear-ended then your chances of seeing a spike in your premiums will greatly increase. This is because insurance companies can view you as accident prone for a length of time that is only known to them and will vary depending on the company you are with.

Time Heals All

Many companies have a forgiveness policy that writes off past accidents and tickets after a predetermined length of time. The length of time varies from company to company but averages about three years, with some offering as little and as two years or as much as five years. If this is the case there is less of a chance of your premiums going up.

Define Fault

Another aspect that will come in to consideration is who the authorities rule to actually be at fault during the accident. This is especially true in accidents that are a little more complicated than a simple rear end collision. While you may feel that the maniac in the other car was clearly at fault as you went through the changing light, the police on the scene may view it completely differently.

Accident Frequency

The actual number of accidents you have been in, even if they are all deemed no fault, will have an adverse effect on your insurance rates. Your insurance company will most likely feel that even though the police found you innocent of any wrong doing, there has to be some reason as to why you are continually getting into accidents. Are you cursed? Does someone have a personal vendetta against you? All the insurance company knows is that you’re costing them money. They may even feel like you are purposely staging accidents to get some extra cash.

If you have recently been in an accident that was no fault of yours but have still seen a rise in your insurance rates you may want to take these factors into consideration. If you feel that none of this applies to you the best thing to do is contact your insurance representative. They will be able to give you the information needed to argue the increase or at least to understand why.

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