Archive for the ‘Cheap Car Insurance Tips’ Category

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Is It Possible to Obtain Full Car Insurance Coverage with a Salvage Title?

Wednesday, October 28th, 2009

Many individuals ask if it is possible to obtain full car insurance coverage if the vehicle has a salvage title. The answer lies within determining the laws and regulations that exist in the state you live. Every state is different and contacting your local title office or DMV will give answers to all your car insurance coverage questions, especially concerning an automobile that has a salvage title.

Most states however, have laws in place that clearly state a vehicle is deemed unlawful to operate on a highway until the owner has had it repaired and inspected by the state highway patrol office. Many times this will apply to a car with a salvage title. Once you have had your car inspected, the highway patrol office will give you the necessary documents you will need to show the DMV that indeed it has passed the requirements. When all this has been processed and taken care of, you will be able to insure and operate the vehicle. If you opt for acquiring full car insurance, the car’s value may be shown as a lesser value. Address any concerns you have on this matter with your car insurance company when you apply for coverage.

If you are the owner of any vehicle that has a salvage title, then you can assume the automobile has been modified and meets state specifics regarding salvage title vehicles. It is now in your hands to obtain sufficient car insurance coverage. You should not have any difficulty in finding a company that will place an insurance policy on the vehicle. You will also want to compare car insurance rates to get the best deal on coverage. This is easy to do by simply searching online. Several websites will allow you to quickly compare car insurance rates.

Vehicles that are issued a salvage title are considered damaged beyond what the normal market value is of the car itself. In some states, if the owner of a salvage titled automobile does work on the vehicle to make the car sufficient and roadworthy, then they may reissue a rebuilt title after the fact. Usually, it is not difficult to find an insurance company that is willing to insure this sort of vehicle, however most will only insure the automobile with liability coverage. Be sure to ask your car insurance agent what options may be available to you for any additional coverage you may want to purchase.

Sometimes, insurance companies do have optional insurance coverage you can purchase for vehicles with a salvage title. But, ultimately, you will have to make a decision if the car is value to you is worth the amount of coverage and premiums that you will be paying.

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How Will Transferring a Car Title and Registration Impact Your Car Insurance Rates?

Wednesday, October 28th, 2009

If you decide to move, especially out of state, one thing you have to attend to is your car title and registration. Most states will give you 30 days to switch over to your new residence, including changing your driver’s license. Depending on where you were living and where you are moving to, your car insurance rates can change dramatically. Generally speaking, moving from a less populated area devoid of high crime into a major city will have your car insurance company raising your rates, much to your chagrin.

Several permanent factors decide what your car insurance rates will be, regardless of where you live. Insurance providers will first look at your driving record to determine if you are a safe driver. If you are in a higher risk bracket, meaning you have filed many claims or have had more driving accidents, this will result in you having a higher car insurance rate. A car insurance company will also look at your credit history. The lower your credit score, the higher risk you will be considered to insure — also resulting in higher insurance costs. The type of car you drive will also be considered when a company gives you an insurance quote.

Now is when the location-specific criteria come in. A car insurance company will then look at the statistics for the area in which you live. An outlying suburb with low crime will get you a much better rate than a place in the heart of the city, close to major high crime areas or heavy traffic. Car insurers base the likelihood of you filing a claim based upon your zip code. Throughout the years they have increasingly improved their ability to pinpoint areas that are the most likely to have a certain risk factors. If you are moving for a job or some similar reason, you need to be aware of what the costs will be in your new home.

There is little you can do to change the factors that affect your car insurance rate. If you can’t afford the luxury of moving to a more desirable location, you are stuck with everyone else who has to pay the high premiums associated with living in a high-risk area. If this is a case, discuss discounts you may be eligible for with your car insurance agent. Many times you can minimize your premium by having certain safety features on your car or by negotiating a lower rate based on your loyalty to the insurance company. But, regardless of the discounts you are eligible for, transferring your title and registration to a new state will have an effect on your insurance rates. When considering living expenses in your new home, this is something you should consider.

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How To Find Your Car Insurance Company’s Financial Strength Rating

Wednesday, October 28th, 2009

Prompt response, friendly service and low car insurance premiums are all factors in choosing your car insurance company. But how big of a role should your insurance company’s financial strength play in this decision?

Many people overlook the financial strength rating as a minor detail. But your insurance provider’s strength has everything to do with you. It has the power to give you peace of mind. After all, who’ll pay your claims? Knowing that the insurance company will be able to meet its obligations when you make a claim and that it will be around for the long haul are facts that will make a direct difference in your life. So the question becomes: how do you find out your insurer’s financial strength?

Actually, it’s fairly simple. Every company has a rating. This rating helps you find which car insurance companies have the best — and worse — track records in the industry. The system is easy to use, too. Graded with the same basic system used in grammar school, you’ll find that A++ is known as the best and most reliable in its peer group. To achieve this rating, car insurance companies have to have impeccable records of both financial backing, cash reserves and an exemplary record for paying claims. The system also rewards insurance companies with a long track record. The ratings drop from the A++ category to A+, A, B++ and so on down to D, each signifying the relative security of the company to pay claims. There’s also another set of letters that are used: E, which means the company is under regulatory supervision; F, which means the company is currently in liquidation; and S, which means the rating has been suspended, suggesting either a buyout or a company that has gone out of business. You can go to most online car insurance sites to find these grades.

These strength ratings are not exclusively aimed at consumers. Investors also look at these ratings to help decide whether car insurance companies are viable as investments. Where will this company be in the next few years? The ratings can tell the consumer how the business world sees the company. Those opinions are broken into three more categories: positive, negative and stable. As the ratings suggest, a positive rating suggests strength. No matter where the letter rating is, the investment world sees the company as one headed the right direction, and that it may be due for a ratings increase. Conversely, a negative outlook means a bleaker future for investors and for the insurer – and possibly for you. A stable rating means just that: stability, with no predicted change in the near future.

So, now that you have the curriculum, which car insurance company makes the grade for you? Find out now and get a free car insurance quote online.

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Does an International Driver’s License Permit You to Apply for US Coverage?

Wednesday, October 28th, 2009

When you’re traveling to the United States, you may wonder whether your international driver’s license legally allows you to purchase car insurance coverage during your visit. The answer is a bit complex, but depending on your living situation in the United States, there are a few ways to tackle car insurance to ensure that you’re covered in the event of an accident (and to ensure that you’re legally abiding by a state’s car insurance laws).

International drivers need to consider how long they’ll be staying in the United States in order to determine their car insurance needs. If you’re only going to be in country for a few months, the best way to handle car insurance is to contact your current insurer in your home country and find out whether you’ll be covered by them during your stay. Assuming that you’re renting a car, you’ll want to have the information from the rental agency in front of you. If you don’t have that yet, you may ask your car insurer for a recommendation. Often, you’ll be covered while traveling for a short period of time, but it’s worth double-checking, as policies differ from country to country. You will need a copy of your proof of insurance with you when you’re driving in the United States. You might also be staying with friends or borrowing vehicles. If this is the case, you’ll often be covered under your friend’s car insurance coverage. Again, you should contact the insurer of the vehicle you’ll be driving to sort out the details and make sure that you’re covered in the event of an accident.

For longer stays, you will need to get a U.S. driver’s license instead of depending on your International Driver’s License or permit. And, once you obtain this U.S. license you’ll need to get U.S. car insurance coverage. Car insurance rates vary quite a bit in the U.S. according to location. State requirements for car insurance can also be different. Contact several insurers to look find the best insurance rates, and contact your state DMV to find out what minimum coverage you need. It can sometimes take a few months to get a U.S. driver’s license, so be sure to apply early if you’re going to be in the United States for more than a year.

As you might have guessed, two of the most important aspects of maintaining car insurance coverage abroad are to let your insurer know of your plans and research specific state laws in regards to foreign drivers and car insurance. Most of the time, your current insurance will be sufficient, but in the United States it’s illegal to drive without any car insurance, so it’s critical to sort out any issues early.

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Do Premiums Increase after At-Fault and No-Fault Accidents?

Wednesday, October 28th, 2009

Accidents – especially those not your fault – are traumatic. You may be injured. There’s damage to your vehicle. Then there’s the disruption in your routine to fix the damages, both physical and emotional. Yet you have car insurance for the financial end of it. At least that part’s taken care of. Or is it? In many cases, the accident leaves a lasting hole in your wallet through increased car insurance premiums — even if it’s not your fault.

Most insurance companies base their monthly car insurance premiums on risk factor. If you’ve had a spotty driving record in the past, you may still be semi-blamed for the latest accident. Sometimes, frankly, car insurance rates are raised out of fears of insurance fraud — where the insured is trying to profit off the car insurance company using the excuse of road hazards. It may not sound fair, but it’s realistic. If you show bad driving habits or excessive claims, you’ll often pay the price by being labeled a high-risk driver. Insurance companies have standards, and bad habits often show driving patterns car insurance companies can’t afford. So understand that accidents affect your car insurance premiums.

Diligence is a key, and safe drivers are diligent drivers. They avoid accidents because they’re watching the road. They’re ready for scenarios that aren’t self-induced. A pipe on the highway isn’t your fault, but not being ready for the car that swerves into your lane is. Three, four and five accidents show a pattern. Perhaps you should have slowed down. Perhaps you should have thought ahead, paid more attention. Perhaps, next time you will, as you become aware of how your inattention is causing your car insurance premiums to rise. These rising costs act not only as a stop-loss for insurance companies from overpaying, but they tend to spur drivers toward vigilance. The truth is that your car insurance rates most likely won’t rise after one simple no-fault accident. But if the situation continues, rates will certainly go up.

So maybe you’ve matured. You’re a better driver today than in the past. Or perhaps your previous record doesn’t reflect an accurate picture of who you were then or who you are today. The best way to address a situation you feel is unfair is to bring it to the attention of your agent. But, sometimes time is the only solution. Without a claim, rates do fall. They eventually drop off your record and your driving situation is reassessed. If you’re able to maintain your clean driving record for an extended period of time, your car insurance premiums will eventually be reduced.

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Are You in a Rough Spot When Another Driver Crashes Your Vehicle?

Wednesday, October 28th, 2009

Accidents happen. Whether it’s your fault or the other driver’s fault, it is bound to occur at one time or another. However you aren’t always the one that is behind the wheel of your own car. If an accident occurs when you aren’t behind the wheel, the outcome is contingent upon the circumstances of the accident itself and who was driving.

For the most part, if you are in your car with another person driving it and there is an accident, your car insurance company will likely to pay for the cost to repair it. That is because, for the vast majority of states in the country, car insurance is linked to the car itself, not the person who is behind the wheel. However, there can be some exceptions for drivers that are under the age of 18. There may also be other special exclusions to who is covered, so it is important to know what your coverage includes, along with all the other details in your policy. However if you do not pay for collision car insurance coverage and another person that is driving your car gets into an accident, you may have to pay for the repairs.

Although your car insurance policy may cover the cost of repairs to your car in the event of an accident, your car insurance rates may still go up even if you aren’t the one driving. That is because you are held responsible for your car, even if you are not the one behind the wheel. While your car insurance rate may not go up substantially, the simple fact that it is a possibility means that you should be very careful about whom you let drive your car.

If your car is stolen then you will not need to worry about paying for the damages that have been incurred should there be an accident. However it is important that you call the police and report that your car has been stolen as soon as possible. Likewise if you go out to a fancy restaurant and have the valet parking take care of your car, you will not have to pay for any damages done to it. Valet parking is a service that you pay for, and the company that you are paying is financially responsible for any damage incurred while your car is in their hands. There will be no need for you to worry about your car insurance rate going up if either of these situations occurs. However, you should make sure that you are well versed in your car insurance policies so you know what situations to avoid and the details of your coverage.

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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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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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Top 3 Factors That Affect Car Insurance Premiums

Friday, August 21st, 2009

There are several factors that go into why car insurance premiums may be higher than others. However, there are ways to prevent an increase in car insurance.

Firstly, one’s driving record and claims history are two important factors regarding a specific car insurance rate. Prior insurance claims are noted on one’s record and this can increase the cost of car insurance. Do not report every small thing to the insurance company as you become a red flag for costs for their service (meaning a higher rate). Essentially, at fault claims will affect a rate more than non-at-fault claims. However, this depends on the state you live in and whether no-fault is applied to all accidents or not.

If you have traffic violations on your record, you may want to take a defensive driving course that will help keep points off of your record and your car insurance rate down. These courses do cost money, but the savings in the long term outweigh the initial cost of the class. Ultimately, the number of violations on one’s record is directly affecting the car insurance premium rate received by an auto insurer. A safe driver discount is available for those individuals with a clean driving record. One’s driving record for up to five years prior will be reviewed before receiving a car insurance premium rate quote.

Your age is another factor that affects car insurance premiums. Drivers aged 16-24 pay the highest car insurance premium. This is because they are the highest risk for any insurance company because of their lesser driving experience. Ultimately, male drivers in this age group are four times more likely to be in an automobile accident. Sixteen year old drivers, or new drivers, also have the most fatalities in all of the automobile accidents in the United States.

Lastly, your credit score can also be a factor in determining your car insurance premium. While not all auto insurers use a credit score to determine a rate, you do not know which ones do. You can check with an agent from any particular auto insurance company to find out if they use this practice. Also, it’s important to ensure your credit report is 100% accurate and that any discrepancies or errors are corrected immediately. Your credit report is responsible for countless life decisions not just auto insurance, but other loans one may desire to seek out in the future.

While these are just three of the major factors, there are countless others that may affect one’s car insurance premium rate. Do your homework prior to seeking out quotes from auto insurers.

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Why Car Insurance Premiums are on the Rise in 2009

Friday, August 21st, 2009

Car insurance premiums have soared this year due to the turbulent economic crisis. The fiscal situation has led to a rise in car insurance premiums, and it’s expected to get even higher. We’ve seen a 12.25% hike at the national level, with some states reporting little to no stability. The national car insurance premium average increased by $8 last month, and now costs around $1,796. Many speculate that with the price of gas slowly rising again, obtaining coverage for vehicles is getting more expensive, especially on a month to month basis.

In addition to the global financial situation, other factors have also contributed to the recent rise in car insurance premiums. Despite high gas prices, there are more vehicles on the road than ever before. More people are driving and insurance companies have to meet consumer coverage demands. From offering free online quotes to promises on lowering interest and premium rates, many insurance companies are trying to counter the increases with premium services.

Another factor is the increase of fraud and personal injury claims. With the employment market as uncertain as ever, several people have tried to make ends meet by faking injuries in auto-related incidents. As sad as this is, the number of motorists claiming whiplash and other injuries has tripled since the late ’90s. This has not only led to a car insurance premium increase, but also a rise in costs to cover uninsured motorists involved in accidents.

The legal fees associated with these incidents are also another factor. Due to an overwhelming volume of fraud related cases, car insurance companies have had no choice but to increase premiums. This coincides with the demand for legal teams to sort through documentation, organize material, and work with car insurance companies to hopefully reach a favorable settlement for all parties involved. This takes a considerable amount of time, and therefore, the fees assessed have risen dramatically.

A huge reason for the recent increase is providing coverage for new drivers. This is generally applied to teenagers, who present a higher risk than seasoned or older drivers. In the majority of the country, driving is a necessity and no longer a luxury. The U.S. is becoming more of a mobile society; therefore, insurance companies want to cover as many motorists as possible within a safe and efficient policy. A new driver will be charged a higher premium due to being more of a liability than a veteran motorist. This, coupled with the many reasons for the increase, has doubled and even tripled the premiums for our newest motorists across the U.S.

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