Comparing Car Insurers: Price isn’t the Only Factor

January 15th, 2010

When you’re shopping around for a new car insurance policy, there’s a good chance that you’ve got one all-important goal in mind: you want to find the best possible rate. While a getting a good car insurance rate and pay as little as possible is certainly an important part of snagging a good policy, it doesn’t count for everything. The consumers that don’t recognize this usually come to an unfortunate realization after several months into a new policy that their car insurance plan isn’t all that it’s cracked up to be. Luckily, there are easy steps that consumers can take to avoid bad policies (and bad insurers).

First of all, looking at the history and financial stability of a prospective car insurance company is very important. When an auto insurance company has to pay out on a claim, they’ve got to draw on capital, and if the capital’s not there, the company quite obviously won’t be able to pay. Fly by night car insurers that advertise super-low car insurance rates might sound great on paper, but if they’re unable to pay on a claim, there’s no point in buying a policy from them in the first place. Generally speaking, the longer a car insurance company has been around (or the longer its parent company has been around), the better its financial stability and the higher your likelihood of receiving payment on a legitimate claim. You can also check a company’s stock for further evidence of their financial status.

You should also be sure that your new policy provides enough coverage, and doesn’t skimp in critical areas. Most car insurance companies won’t sell a policy that provides less than the minimum coverage required by your state, but remember that the bare minimum coverage is rarely sufficient if you get into an accident. Auto insurance isn’t very useful if the coverage minimums are set too low. When comparing several policies online or in person, check all of the terms of the contract to ensure that they’re both offering the same types and amounts of coverage — and those amounts are adequate for your needs.

Checking into your prospective insurer’s customer service record isn’t a bad idea, either. Reviews of an insurer can be easily found using a search engine, and you’ll quickly be able to determine whether you’re dealing with a reputable insurer. It may seem like a minor point, but when you’re making a claim, you’ll want that claim dealt with ASAP, and a good customer service center is absolutely essential.

Take a few moments to research these elements of your policy — not just the cost — before making a purchase, and you’ll end up with a much more dependable car insurance policy.

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Car Insurance Premiums in a Changing Economy

January 14th, 2010

Let’s face it. The economy has seen better days. And, although a recovery might be in sight, times are still tough for many businesses. This is especially true in the car insurance industry, where rates have been rising for many drivers. Most customers know that that a rising car insurance premium could be due to any of a number of factors. During bad economic times, however, it’s often because of less capital flowing into the car insurance companies themselves. Car insurance agencies need a good source of funds to draw on when accident claims come in. In a good economy, they’re often covered by continuing policyholder investments, and can afford to offer a lower average car insurance rate to each customer. In a struggling economy, however, they pass the cost off onto those same consumers.

Therefore, the hurting economy means higher premiums for many customers overall, unfortunately. Other factors can affect car insurance rates, though, and some work in the benefit of consumers. For example, the U.S. government’s Cash for Clunkers program led to a lot of new vehicle sales. And, with the sale of a new car comes the sale of a new car insurance policy. Any time more car insurance is being bought, a simple supply and demand effect is seen. More insurance means lower rates overall because the insurance companies have more funds to back up the policies that they sell.

The higher average rates aren’t an indication that every person’s premium is going up, either. Individual customers can bring down their own car insurance premiums during a recession by engaging the market, causing a sort of micro-bidding war. The easiest way to do this is to visit car insurance comparison websites, where several car insurance quotes are generated simultaneously for drivers. These websites have led to huge increased competition in the car insurance market. Competition is good. It means lower costs for car insurance and better customer satisfaction rates as insurers improve their customer service and other aspects of their services to get more policies. Drivers can also get lower rates by changing the coverage on their policies, though experts warn that driving with inadequate coverage negates the point of buying a car insurance policy in the first place.

During a struggling economy, no consumer likes to see his or her monthly budget go up for any reason, least of all car insurance. The good news is that savvy consumers can have some affect over their own insurance rates, and the increased demand for car insurance caused by government programs may yield a lot of benefit for drivers around the country. If insurance rates eventually go down rather than up, most motorists will be more than happy.

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Hawaii Car Insurance Tips

January 8th, 2010

Some Important Tips on Hawaii Car Insurance

Are you new in Hawaii? Are you planning to enjoy your vacations in Hawaii? Then the best way is to rent a car. This is because taxi fare is very expensive in this state and the frequency of public transportion is not great. However, don’t forget to get Hawaii car insurance if you are planning on driving in the state when living there. This indemnity will cover you from the bodily injury and property damage liabilities.

Cheap Hawaii Car Rentals

When you rent a car in Hawaii, it is prudent to avoid making payments in cash. Companies accepting payments in cash may not have a good reputation. Most of the Hawaiian vehicle rental companies accept international credit cards as a method of payment. Some agencies also accept debit cards. You can tour the island in a regular car just fine so think about costs before renting an expensive SUV.

The rental agencies are very particular about the vehicle rented. They check the automobile thoroughly at the time of return. If you cause any harm to the vehicle while driving then you have to pay for damages. Given that, it is important to inspect the vehicle prior to driving off the lot and also drive carefully. Booking a car well in advance will also help you save some dollars, and in some cases, booking for a week or more can save you additional costs.

Cheap Car Insurance in Hawaii

If you are moving to Hawaii, then you should get Hawaii car insurance first. The following are some of the requirements if you wish to get cheap policy:

* You need to maintain minimum liability coverage of $10,000 for property damage. This money will be used up to pay for the repairs of the other driver’s vehicle in the event of an accident.
* Personal injury protection coverage to pay for you and your co-passengers’ accident-related expenses, medical expenses, and lost wages.
* As a bodily injury liability minimum, you need to keep $20,000 in coverage for a single person.

You can also save some money on your Hawaiian auto insurance by getting discounts, raising your deductibles, and dropping the comprehensive and collision coverage if your vehicle is not worth the premium and the deductible.

Look for cheap car insurance quotes on the Internet. With your customized search you can get a cost-effective deal without compromising on the quality of service offered by auto insurers.

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What Types of Cars Cost the Most to Insure?

December 15th, 2009

Anyone wanting to insure his or her car obviously wants to get the best deal on car insurance. Unfortunately, some cars cost a lot of money to insure no matter how good of a driving record and credit history the driver has. Depending on the income and financial stability of the driver of the car, paying a lot for insurance can be a very difficult thing to do, and can cause a person to get behind on the vehicle payments or other bills — or take a risk and drive around without insurance, which is often illegal. That is why it is important to know what cars cost the most to insure.

Overall, sports cars are going to be more expensive when it comes to car insurance premiums. They have large engines, and insurance companies know that a lot of people who own them like to drive them fast. That means a higher potential for tickets, and also for accidents. People also steal these kinds of cars for joyrides and for chop shops where the cars are quickly parted out and sold. Any time a car is overly vulnerable to these kinds of conditions, the price of getting car insurance coverage on it will rise. Another kind of vehicle that sees higher car insurance costs is the full-sized SUV. These vehicles are large and they can do a lot of damage if they are in an accident. They’re also expensive to work on if they get damaged because the parts cost a lot. It’s something to keep in mind, along with the gas mileage, if you’re planning on buying one.

No matter what kind of car you decide to buy, insurance, mileage, and other maintenance costs should all be considered before making your purchase decision. If you haven’t bought a car yet, finding out about the insurance costs before you purchase your next vehicle can help you make a good financial decision. Check with a couple of insurance companies and ask what their car insurance rates are for the types of cars you’re looking at. The companies can give you approximations of what your car insurance premiums will be. Of course, these are not exact and they are based on the car insurance coverage options that you asked for at the time.

Because car insurance coverage is necessary, car insurance premiums have to be reasonable for the person paying them. If you’re worried about how much your car insurance will cost after purchasing a vehicle, get a car insurance quote before buying a particular car. That way, you won’t have any nasty surprises in coverage costs and you can enjoy driving your car wherever you want to go.

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Payment Methods of Car Insurance: Monthly, Yearly, No Down Payment and more

December 15th, 2009

When you’re looking for car insurance, you usually have a lot of questions. One of the main questions for most people is how much the insurance will cost — closely followed by when and how that money has to be paid. There are several options for paying car insurance premiums including monthly, yearly, no down payment and more.

Your car insurance rate can vary based on how you elect to make your payments. This is because some companies tack on additional fees if you choose to pay on a schedule that is not standard for that company. In other words, if the company normally collects premium payments every six months but you want to pay every month, there may be additional fees added on to your car insurance policy to cover maintenance and processing. That’s pretty normal, and many companies do it.

A lot of people like to pay monthly because it makes their payment smaller. They don’t mind paying the additional few dollars in fees because it stops them from being required to pay out a large amount every six months or every year. If you’re not good at saving money, the monthly car insurance option may be the best one for you. If you’ve got more in savings, you can probably get a better car insurance rate if you pay every six months or just once a year. A lot of companies also offer direct debit for these options, so the money can come right out of your checking account. You won’t have to write a check, and that also helps to ensure that you don’t accidentally forget to pay your bill and end up driving around with no car insurance.

If you have a good driving record and good credit, you may also be able to get a car insurance policy with no down payment. People with bad credit histories or poor driving records usually can’t get this option, though, because the insurance companies aren’t willing to take a big risk. These people also pay higher premiums, and some companies won’t insure them at all — especially if they have a bankruptcy on their credit.

No matter what your driving and credit history are like, you will be able to find a company that’s willing to insure you. When you do, be sure to ask that company about the different options for paying for your car insurance policy and whether your car insurance rates will change based on the option you choose. It’s important that you know what you’re agreeing to and exactly how much money you’ll be paying out how often. Read the fine print, ask questions and you will get an insurance policy you’re happy with.

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Is Anything Being Done to get Uninsured Drivers off the Road?

December 15th, 2009

Uninsured drivers are one of the biggest problems for car insurance companies and consumers alike. The Insurance Research Council reported in January of 2009 that the percent of uninsured drivers varies in each state, ranging from 29 percent in New Mexico to an equally startling 1 percent in Massachusetts. From 2000 to 2007, the number of uninsured drivers was slowly falling in the United States. But, with the severity of the economic downturn, the council expects those trends to reverse. An unexpected outcome of the financial crisis is that drivers who do continue to purchase auto insurance will be paying for the misfortune and lack of responsibility of uninsured drivers in increased auto insurance rates.

Paying for an insurance policy is difficult to justify when you are having problems paying your mortgage or putting food on the table. Most states now have systems in place that automatically cancel your tag if your car insurance policy lapses. If your tag is canceled, you cannot legally drive that vehicle on any state until you acquire car insurance. In some states, being behind the wheel of a car with a revoked tag results in an automatic jail sentence with fines as high as $2500. Additionally, driving without auto insurance can result in your license being suspended for a timeframe ranging from three months to three years in many states. If drivers continue to drive without insurance, they may face going to jail for an extended period or the confiscation of their vehicle.

Every state in the union is passing legislation permitting harsher penalties for uninsured drivers. The majority of these laws are sponsored and funded by the insurance industry. Reports are currently showing that uninsured drivers are causing problems in all states and communities ranging from higher insurance premiums for people who do carry car insurance to increased federal payments at emergency medical outlets who never are reimbursed for services rendered. Uninsured motorist coverage has alleviated some of these issues but those costs are passed on to drivers who do carry auto insurance. Many states are also hiring more traffic officers to help lower the rates of uninsured drivers on their roads, but the resources required to completely eliminate uninsured drivers is unsustainable by any state considering the depth of the economic crisis the entire country is in.

Purchasing a car insurance policy is not only a legal requirement, but is a moral obligation for everyone behind the wheel. We as citizens of this country enjoy the rights and privileges of our great nation and we should not shirk the responsibilities and duties that come with them. You are doing the ethically correct thing by purchasing auto insurance.

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How to Prevent Accidents during Risky Holiday Driving

December 15th, 2009

The holidays should be a season of joy and pleasure shared with friends and family. However, they also mean winter driving to and from those fun Christmas gatherings. So be prepared for holiday driving by practicing some safety precautions and keeping in mind some important information when taking road trips. Here are some tips for safer driving this holiday season:

• Prepare your Vehicle for Winter Driving
It pays to give your vehicle a check-up before hitting the road. Make sure that your windshield wiper blades are functioning properly. And, depending on your location and where you are traveling to, check if you will need to replace them with snow blades. It can also be beneficial to have your mechanic check your vehicle’s anti-freeze or coolant to make sure they are at the right levels for optimal driving.

In addition to making sure your tires are in optimal condition and properly inflated; consider your surroundings and whether they are they appropriate choice. Should you live in a location where snow is a certainty, don’t rely on all-season tires. Install snow tires instead. Snow tires are composed of much softer materials and have different tread designs that allow better gripping and traction abilities.

You vehicle should also be well stocked with basic emergency tools and equipment just in case you get stalled or get in an accident. Keep the following items in your trunk: extra clothing, blankets, snacks, beverages, matches, candles, a flashlight, flares, a radio, long jumper cables, a windshield scraping device, a small shovel and a tow rope.

• Invest in Car Insurance
No matter how well you take care of your vehicle, and despite the safety precautions you take as a driver, you can’t predict the future. You may get in an accident — a time when having car insurance coverage is important. Therefore, investing in good car insurance will protect you and your loved ones against any loss if an accident does happen.

• Be a Responsible Driver
Safety precautions do not end with a car in tip-top shape, a loaded emergency kit, and a comprehensive car insurance plan. As a driver, you personally have to take special measures as well.

Never drink and drive. Celebrations may be an excuse for some drinking but if you’re driving — especially on slippery roads — think twice before having another serving of alcohol. And, when you are driving, drive slower. Also make sure in that you, and all your passengers, are buckled up and secured in the vehicle properly.

Winter driving around the holidays can be especially risky, as there are an increased number of drivers on the road. But, by following these tips, you will be able to minimize your risk of being in an accident.

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How Car Insurance Downfalls are Creating Health Mandate Doubt

December 15th, 2009

For nearly 40 years, the practice of insurance by government mandate has been with us in the form of car insurance. Under the banner of consumer protection, a process regarding mandated car insurance coverage began in the 1970s that eventually was adopted into nearly every state. Now, years later, with all this data available for us to draw from, what can be learned from government-mandated insurance demands and how consumers respond to them to help in the health insurance reform?

As we examine consumer behavior toward laws regarding a state-mandated car insurance policy, we can learn some time-tested truths. “Not everyone complies,” said Scott Harrington, health care and risk management professor at the University of Pennsylvania. “The auto insurance mandate is almost everywhere. But it’s not rigorously enforceable.” If this is indeed true, it begs the question, if the individual states can’t enforce driver insurance laws on a smaller scale, how does Congress propose to enforce the massive health insurance mandate being considered at the Federal level? Will people respond to the new laws?

Within the debate on mandated insurance another interesting factor surfaces. Based on insurance industry data, the same number of uninsured motorists almost exactly coincides (within one percentage point) with the number of people without any health care insurance now. David Sampson, CEO and president of the Property and Casualty Insurers Association of America, tells us that a driver’s personal financial status — not the laws of their state — indicate whether or not drivers will buy car insurance. Though mandated by law, do we suppose this pattern of behavior will change somehow when it comes to health care?

The states’ car insurance mandates have fines and penalties attached to them for non-compliance. But the fact of the matter is, it appears people will do what they can afford and what they, on their own day-to-day list of survival of priorities, deem necessary. Not everyone has adequate guaranteed income and an elite health care program. The result is that people don’t comply with the “laws” regarding car insurance.

With history as our backdrop, we must ask ourselves the inevitable and honest question — will a government-mandated health care law enforced at the Federal level even work, or is it a grand, expensive illusion fated for the scrap heap of history? What we know works over time in all markets and throughout the history of the world is open competition between providers of any good or service.

Based on our knowledge of the effectiveness of government-mandated car insurance, many people doubt that any form of government-mandated health insurance will provide a solution for the number of people without health insurance. If the reform passes, only time will tell.

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Save More with California Car Insurance

December 15th, 2009

The laws of California makes car insurance an essential item for everyone in the state, be it a visitor or a permanent resident. Every driver and car owner in California is financially responsible for their actions. This is because according to the state’s insurance laws, the driver should be able to pay for the damages caused or injuring others in case of any accident.

California car insurance requirements

If you wish to drive in this state then you need to have auto insurance in order to cover any damage caused by you. There are two types of such coverage as per the law of the state. Bodily injury liability and the property damage liability coverage are the two types of California auto coverage.

According to California state law, a driver must possess $5,000 as a property damage liability. With this money the damage caused to other vehicle may be repaired. This is the minimum amount maintained by a driver. Therefore, if you own a vehicle more than this amount then you can select a bigger figure to cover it in case of any accident.

For bodily injury indemnity a driver must maintain $15,000/ $30,000 as per the state law. This will cover you in case of any kind of body injury caused to you by any person during an accident. Similarly, if you hit a driver then your policy will cover his bills.

How to save money on such policies

California car insurance can be very expensive. This is because there are more vehicles than people in California. Therefore, getting cheap auto coverage is a bit difficult in this part of the country. Moreover, some people also do not park their vehicles at proper spots. Some are left in the driveways while some are parked on the street itself. This invites harm for your car. The policy providers charge more for this reason.

You can also save money by the method of payment. When you pay the premium directly from a savings account the insurance companies no longer send you a bill.  Purchasing car policies over the Internet will also help you to save more.

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Will Texting Study Increase Car Insurance Rates?

November 13th, 2009

Recently the Virginia Tech Transportation Institute (VTTI) implemented a study on texting — a study that car insurance companies are using to get a better understanding of the issue surrounding people driving while texting and how it may affect the industry. The study involved cars, light trucks and truck drivers — each using cell phones while operating a vehicle on a roadway. The results of the study basically reveal that drivers who engage in texting while behind the wheel have a collision rate that is 23 times higher than when those who do not. That collision rate is significantly higher than initial data led anyone to believe. This information proves that there is diminished control when driving while texting.

The data from combined studies are reporting that 71 percent of traffic accidents involve people driving while engaged in non-driving tasks, or driving in a distracted state. Obviously this puts drivers who exhibit this behavior at a higher risk to be in an accident. Car insurance rates are based on risks, so agencies are using these sorts of studies to determine whether or not they can increase the insurance rates for those caught driving while distracted. With the number of studies being conducted on this subject, the car insurance industry as a whole will likely better understand how to proportion the increases soon. These increases for some states and drivers are inevitable.

Driving while texting, has car insurance carriers, examining their coverage. Until states define the laws concerning texting while driving, the impact the issue will have on car insurance rates is unknown. If there is no law against texting, then the driver cannot be charged for that infraction. The recent accidents, involving a train driver who caused an accident while texting and a bus driver, that also had an accident while texting, caused major problems for their communities. Many families were impacted because of the accidents, lives were lost or injuries that crippled several passengers. Incidents like these are making people aware of the risks associated with distracted driving.

Based on the evidence, several states are beginning to implement laws prohibiting texting, or the use of cell phones in general, while driving. In fact, 14 states have done so, including California. A few states are starting the legislative process to do so, while others are not interested nor are they motivated to write new laws at this time for the infraction. Many states are not waiting on more studies, they have moved forward to enact laws that ban driving while texting.

It is a good thing that the population is realizing the risks they are not only putting themselves, but other people, at when they choose to text and drive.

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