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Ohio Experiences Rising Car Insurance Costs

Monday, August 10th, 2009

Recently, car insurance costs in Ohio have seen a modest increase, which has left some motorists facing a less than ideal problem. While driving a car has never been more expensive, vehicles add a certain level of convenience that public transportation simply cannot match. Therefore, Ohio residents must decide whether to keep paying for their car insurance or look for other options.

One of the reasons for this increase in car insurance rates appears to have been Hurricane Ike. While this hurricane did not hit Ohio directly, remnants from the storm did hit the state and caused considerable damage. Therefore, insurance companies saw an opportunity to raise car insurance rates, which has put the consumer in a tough situation.

One thing to consider is where the rates were before, however, and Ohio did have some of the country’s lowest rates prior to this increase. With that being said, Ohio residents must be aware that these rates will likely continue to rise, as insurance companies will look for ways to keep their profits up and their expenses down in the future.

If you are worried about the increase in car insurance rates in Ohio, make sure that you protect yourself and your credit rating in the future as defaulting on a payment looks terrible on your credit report. Also, if you are to miss a car insurance payment at any time, the insurance company can increase the price of your premium considerably in order to protect their investment in you.

If these new rates have caught you off guard and you cannot afford to make your payment on time, make sure that you get a hold of your insurance company immediately and try to work out a payment plan. There is a chance that the company will accept a partial payment upfront and then another payment later on, which will also protect your credit rating.

Finally, make sure that you shop around for the best car insurance rates available because different companies have different policies. These companies will not look out for you, so make sure that you look out for yourself and find the lowest car insurance rates that are available to you. Shopping around might take you a little bit of time, but you will not regret it when you find an affordable rate in the end.

There are also various car insurance discounts that you might be eligible for, so make sure to remain aware of all of the different ways that you can save money. After all, saving money is likely the only way that you will be satisfied with your Ohio car insurance.

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Correlation Between Thieves Targeting High-Performance Cars & High Car Insurance Rates

Monday, August 10th, 2009

As today’s economy grows worse, people are becoming more desperate for that extra cash, and this includes car thieves. Today, car thieves are targeting high performance vehicles, like BMW, Jaguar, and Cadillac, as well as the family sedan, and then turning the cars in to make extra money off the parts. According to CBS News, thieves are getting sneakier in acquiring vehicles. Nowadays, all they have to do is look at the Vehicle Identification Number that’s on your windshield and provide a photo identification card in order to get access to car titles and then the car dealer will reissue keys to the vehicle. Breaking car windows is no longer a necessity.

According to an article in USA Today, the Cadillac Escalade and the Lancer Evolution are high-profile vehicles that have extremely recognizable marketing capabilities as well as encouraging thieves. Because both vehicles are favored by many sports stars, actors, and rap stars, and have been portrayed in many music videos as the ride to have, their capability of being targeted by car thieves has increased. From headlights to rear tire spoilers, thieves know what they want. And often the thief wants the entire vehicle, not just its parts, to be exported to other countries for increased sales. According to an article in Reader’s Digest, “In 2003, Strike Force Worth, a covert NSW (Australia) police operation, netted $4 million worth of 4WDs and car parts stowed away in shipping containers destined for Jordan and Lebanon.”

As LeftLaneNews.com has pointed out, “Many modern cars now rely on software entirely for security.” With laptops and specific software geared for bypassing safety measures, thieves have also become cleverer in acquiring high performance vehicles. It can often take up to 20 minutes with the intended vehicle in a secluded area for thieves to utilize this specialty software to get inside. While the car insurance industry and dealers hope that thieves don’t have access to this software, unfortunately it’s being discovered that they already do.

As vehicle thefts increase, so do car insurance claims. With high performance vehicles costing upwards of $40,000, car insurance companies are paying out billions every year. According to HotRodding.US, “A $20,000 stolen vehicle can be stripped and sold into $30,000 worth of parts, insurers say.” This has become a $7.5 billion-a-year-industry, according to the Insurance Information Institute (www.iii.org), a trade organization. With the higher risk of theft and repairs, car insurance companies have to charge more for performance car insurance rates.

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How Crash Test Results Differ for Two-Door and Four-Door Cars

Tuesday, August 4th, 2009

Think the number of doors on your vehicle is just a convenience issue? Think again. According to a recent study undertaken by the Insurance Institute of Highway Safety, safety ratings may be different for two and four door models of the same vehicle. And because safety is an important part of determining car insurance rates, choosing a sedan versus a coupe might mean choosing between a higher and lower insurance rate.

Because the study that unveiled the door differences was commissioned by the Insurance Institute of Highway Safety–which is funded by insurance companies–it is more than probable that results could start to affect your insurance rates relatively soon. Unfortunately, the study concluded that results were not definitive; Ford’s coupe model beat out its similarly styled sedan, while Volvo’s sedan got better ratings than its coupe counterpart.

So how do you know which model to buy in order to pay the lowest car insurance possible? That’s easy–do research! Car insurance rates are based on a variety of factors including the safety of the model to the safety of you as a driver. People that pay lower car insurance rates are those who have few blemishes on their driving records and who pilot cars that aren’t usually driven by those with a need for speed. Theft also fits into the calculation, so those driving highly desirable vehicles might have less than desirable car insurance rates. A newer model Porsche or Mustang is going to be expensive to insure whether it has two doors or six.

The door difference is important to you as a car insurance customer when you’re considering whether to buy a new coupe or a sedan of the same model. It means that you can’t take the crash test results of the coupe and automatically apply them to the sedan and vice versa. Instead, it’s important to carefully read the crash test results of both vehicles before you make a choice. Generally, the one with the better safety rating will be the one that gets you lower insurance rates.

Of course, you have to remember that more than the kind of car you drive goes into figuring your car insurance rate. Different car insurance companies, regions, and discounts are also important variables in rate calculation. Unless you and the person across the street have lived identical lives, it’s probable that you won’t have identical insurance rates. However, knowing how the kind of car you buy can affect your insurance is the best way to save a little money when it comes to car insurance.

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How To Prove You’re a Good Driver with Progressive’s MyRate Program

Wednesday, July 29th, 2009

Progressive’s MyRate is a personalized car insurance program that offers discounted rates to safe drivers and individuals who drive less frequently. MyRate is based upon how well a person drives and certain factors determine whether or not an individual is a good candidate for MyRate. These factors are: defensive driving, driving less than 10,000 miles per year, and rarely driving after midnight. If you meet these requirements, then you may be eligible for Progressive’s MyRate program. It is important to mention that MyRate is not offered in all states at this time. MyRate is currently available in fifteen states.

Once enrolled in the MyRate program, Progressive will send you a small electronic device. The device is to be plugged in to the driver’s vehicle, usually in the diagnostic port. Once installed, the driver continues to operate the vehicle as he or she normally would. The MyRate device functions by collecting data from the vehicle and wirelessly transmitting information to Progressive. The information is then used to determine renewal discounts on car insurance rates. All MyRate data can be tracked by logging onto the Progressive website and viewing your personal policy.

MyRate devices will work on all vehicles manufactured from 1996 and on.

It is possible that car insurance rates may increase under the MyRate program. This is due to the state you reside in and your driving techniques. For example, in some states you may be charged a $30 fee for the MyRate device. The expense covers the cost of the technological device and the cost to wirelessly transmit data. Additionally, your driving habits may result in a surcharge that could increase your car insurance rate. Surcharges vary by state.

With the MyRate technology, you have the ability to track your driving habits and rates. If your driving habits negatively affect your car insurance, MyRate gives you the opportunity to improve your driving skills. Improved driving skills will lead to lower car insurance rates and other car insurance discounts. To qualify for increased discounts, drivers should avoid the following actions: excess mileage, excess acceleration, hard braking, driving during peak hours, and driving after midnight.

If you enroll in the MyRate program and later decide you want to leave, you have the option to terminate enrollment at any time. Participation in the MyRate program is voluntary. However, once you have left the program, any driving data recorded from your MyRate device will not be used to determine future car insurance rates. You must also return the MyRate device to Progressive.

Overall, MyRate is a revolutionary program that rewards good drivers with lower car insurance rates and convenient discounts.

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Car Insurance Mandatory for Wisconsin Motorists by 2010

Wednesday, July 29th, 2009

Change is afoot for Wisconsin drivers. Starting on June 1, 2010, all drivers will be required by law to have car insurance. From that day forward, if you are caught driving without car insurance in Wisconsin, you have to pay a fine. Habitual offenders may lose their license.

Until this new law, which was passed by Governor Jim Doyle as part of the state budget, Wisconsin was one of only two states in the US that did not have mandatory car insurance laws (New Hampshire is the other hold out). Wisconsin drivers previously had to comply with the Financial Responsibility Law, which states that all drivers had to show that they had the financial means to pay for damages after an accident. The Financial Responsibility could be met through car insurance, a surety bond, or by filing a certificate of self insurance. Approximately 85% of drivers in Wisconsin carried car insurance anyway, but despite the fact that 100% of drivers had to comply with the Financial Responsibility law, uninsured motorists were often unable to meet the costs of damages after a collision.

Wisconsin car insurance companies are rejoicing at the new law, but not everyone is on board with the changes. Part of the debate is over the mandatory minimums required in the new law, which will take Wisconsin from having no insurance laws to having one of the highest mandatory minimum requirements in the country. Current Wisconsin car insurance holders, who once enjoyed one of the lowest car insurance rates in the country, are concerned that increased demand will drive the prices up. Others are simply concerned at the prospect of one more bill to pay during tough economic times.

Proponents of the plan believe that requiring car insurance will take an undue burden off of those who already maintain insurance. They further believe it is necessary to require insurance to help deal with increased medical costs. As the cost of health care increases, the cost of caring for people who have been injured in an accident skyrockets, often to an extent that makes uninsured drivers unable to pay. This is also the justification for higher mandatory minimums.

Popular or not, Wisconsin drivers have to comply with the law if they want to keep their license. Wisconsin car insurance companies are ready to work with the uninsured to get them on board with the law. Wisconsin car insurance rates will be determined by a number of different factors, including your credit score, driving record, and where you live. If you have never carried insurance before, this could also lead you to more expensive insurance costs; though in time and with a good driving record, your car insurance rate may come down.

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Are Smart Cars Actually Safe Cars?

Wednesday, July 29th, 2009

We all know the familiar silhouette of the tiny Smart car, and are familiar with its many benefits: ease of maneuvering and parking in cities, fuel efficiency (up to 44 miles per gallon), and low cost (starting around $12,000), but are these tiny cars actually safe in an accident? How can an accident in a Smart car impact car insurance rates? The answers are complex and largely dependent upon the driver.

The Smart car is built with an extremely sturdy, race car style safety cell, steel frame that gives it a very sturdy foundation and helps to disperse the force from an impact across the entire car. This coupled with some very high tech safety features such as front and side airbags, and disc brakes, means that the Smart car fares much better in collisions than its diminutive size would indicate. In fact, that Smart car performed so well in crash tests that it earned a five star rating from the independent Insurance Institute for Highway Safety (IIHS). This is the group’s highest crash safety rating. The tests simulate frontal impacts at 40 miles per hour, while the side impacts are simulated at 31 miles per hour with the force of a sport utility vehicle. Even in side impacts, the Smart car performed well, with its new aluminum reinforced cross bars.

In rear impacts, the Smart car received the second highest ranking the IIHS gives, “acceptable.” This is a very good rating for a car of this size.

However, measuring slightly over eight feet long and just less than five feet wide and tall and weighing in at 1,800 pounds, the Smart car is simply less safe in a collision than a larger, heavier vehicle where simple physics protect the driver. In a collision with an SUV (which frequently weighs over 4,000 pounds), even the vaunted, modern safety features of the Smart car will not be able to offset the disadvantage of being struck by a larger object.

The answer to the question is a complex one. In frontal impacts against stationary objects, or frontal or side impacts by like sized vehicles, the Smart car performs excellently. In impacts with larger objects, the Smart car does not perform as well. In cities with smaller vehicles and lower speeds, the Smart car will prove to be very safe in most circumstances. On the freeway, in areas with large numbers of SUV’s, it will be at a tremendous disadvantage in a collision with a larger vehicle. The solution though, as always, is to drive defensively and to remain alert, especially when in a small vehicle such as a Smart car.

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Benefits of Green Car Insurance

Wednesday, July 29th, 2009

For many environmentally-conscious individuals, driving a car is a necessary part of our daily lives. In order to protect the environment in some way, most drivers either opt to carpool, drive less, or purchase a more environmentally-friendly car. In addition to these options, some car owners have even opted to purchase green car insurance.

Green car insurance is a relatively new idea that not many people know about. It is an excellent idea for those individuals who wish to take steps to reduce their carbon footprint. Some of these steps include supporting economically friendly charities, or planting trees in forest areas. Green car insurance is, as one can imagine, an environmentally-friendly car insurance company. Most of these companies offer services such as calculating your car’s emissions, and adding the cost of offsetting those emissions into your car insurance premium. In doing this, individuals can become responsible for covering their own carbon footprint.

These companies are not just limited to offsetting car emissions; they are regular car insurance companies that are environmentally responsible. With a green car insurance company, you would find everything that you would usually expect from a typical car insurance provider. Much like any car insurance, it is always best to fully understand what services, options, and insurance rates are available before purchasing a policy.

In addition to being responsible, most of these companies also educate consumers about carbon emissions and how to become more environmentally-friendly. They are dedicated to protecting the environment, not just reducing car emissions. Helpful tips are often found on company websites, where consumers may read them and make changes in their lives to become more environmentally-friendly.

Some companies offer a portion of their proceeds to charity. Often, you may choose which economically-friendly charity the money goes to. Many new insurance owners are pleased to see that their money is going toward helping just causes.

Many people wonder if you must have a green car in order to purchase green car insurance. The answer is no. Anybody may purchase this insurance. Further, you’ll be pleasantly surprised to see that these insurance rates are not as high as one would think. In fact, some car owners have discovered that they can save money by switching to a green car insurance company.

As the world becomes more environmentally-conscious, there will be more green car companies opening and more car owners will purchase insurance through these providers. Offsetting emissions and working to protect our environment are only a preview of solutions for how we can make our world a better place for future generations.

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Desperate Car Owners Resorting to Fraud

Wednesday, June 17th, 2009

When people buy car insurance, it’s usually because they hope never to use it. In fact, walking out of your home or office to find an empty space where your car once stood is a nightmare shared by many vehicle owners. Most of us try to keep our vehicles safe by parking them in well-lighted areas and locking them, using car insurance only as a backup.

But as the economy has continued to exacerbate, some people are using their car insurance policies as paychecks. Car insurance fraud occurs when people claim their vehicles have been stolen in order to collect the money from their car insurance policies. According to law enforcement officials, it is not uncommon to see cars set on fire, pushed off cliffs, sunk in bodies of water, and even buried in the ground.

Law enforcement officials have reported more and more incidents of car insurance fraud as the economy plunges. Desperate, those who commit car insurance fraud often feel like they have no other way out of pressing financial obligations.

If you’re hurting for cash, you might be tempted to commit car insurance fraud. After all, desperate times call for desperate measures. But there are a few reasons why car insurance fraud ends up being a losing game–for all involved. First, car insurance fraud is a crime, and, if convicted, you may be sentenced to a term in jail, as well as a fine. Second, car insurance fraud results in higher car insurance premiums for other car insurance customers. So, if you’ve noticed car insurance quotes rising, you might have car insurance fraud to thank. While these reasons for refraining from committing car insurance fraud are certainly legitimate, it’s also important to think about the cars that end up being destroyed as a result of these schemes. These are cars that people could be driving, and by committing car insurance fraud, individuals increase the number of cars that have to be manufactured.

But this doesn’t mean you have to settle for being broke! One option always available to you is changing car insurance companies, and with many web sites offering car insurance quotes, switching companies is now easier than ever. In fact, CarInsuranceQuotes.com can provide you with comparative, free quotes with just an easy click. You may find that you will save enough money by switching car insurance companies to pay your bills more comfortably. You can also try to deal with your car loan company, asking them to give you a lower rate or help you make your payments more manageable. Regardless, there are many ways out of debt, but car insurance fraud is a way in–a way into more trouble.

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Hilarious 21st Century Insurance Commercial

Tuesday, March 24th, 2009

A recent commercial by 21st rings true in this environment. A fat cat CEO is smirking at his desk and asks, “What’s a few hundred dollars a month, friends?” with regards to the fact that most drivers are paying for things that they don’t need in their auto insurance policies. Make sure to get car insurance quotes and compare the proposed policies so you don’t end up making a fat cat even fatter!

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Industry News: Pay-As-You-Drive Car Insurance

Wednesday, November 19th, 2008

A new concept that some auto insurance companies are offering is the Pay-As-You-Drive (PAYD) option. The PAYD option allows people to pay sliding rates, based on how much they use their car. For example, a person who drives ten miles per week will pay considerably less than someone who commutes fifty miles each and every day. In essence, the person who drives less will have cheaper car insurance.

The car insurance company marks the mileage from your odometer, and then tracks your driving for a set period of time, based on their specific policies. Your premium is then based on the amount of miles you drive. Each auto insurance company has a different mileage level, so check with the company to determine if you would qualify for the PAYD option.

This PAYD option began in Europe and is now available in approximately 34 states. Not all insurance companies offer this option, but it is increasing in demand as people opt for public transportation, bicycling or carpooling due to rising fuel costs.

The PAYD auto insurance option also has other positive effects. For one, the environment will benefit and there will be less pollution. Secondly, with fewer cars on the road, there is less chance for accidents. And finally, drivers will not only enjoy cheap car insurance, they will also spend less on gasoline and auto maintenance.

Again, this is a very new concept to the American auto insurance industry, so it is not available from all car insurance companies right now. But it seems to be gaining in popularity, as it is a usage-based auto insurance policy, and fair to all drivers.

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