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.

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.

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.

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.

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.

One of the most anticipated times in a teenager’s life is obtaining his or her driver’s license. This is almost a rite of passage in today’s society and can ensure a teenager’s place in the social elite. It can be difficult for a teenager to obtain a decent car insurance rate.

Before a teenager even schedules a test with an examiner to obtain a license, he or she should enroll in a qualified driver’s training course. This will benefit them in a number of ways. A vehicle is a dangerous machine to operate and can be deadly if not operated properly. A driver’s training course will teach new drivers everything involved with driving. Not only do they give drivers the skills needed to pass the road test and obtain a license, this course actually teaches drivers the correct and safe way to drive. Rules, regulations, and safety practices are presented so that these teens will be comfortable on the road among other drivers. This will help them to obtain car insurance at a better rate.

Enthusiasm and anticipation are common feelings that rush through teenagers as they are about to drive for the first time. Statistics have shown that younger drivers lack experience and are not aware of how to handle certain split second decisions. They tend to speed more and drive carelessly as they try to impress their friends. This can lead to more collisions and injuries and thus lead to higher insurance premiums. By taking a driver’s training course, car insurance rates will be reduced.

Parents should always lead by example. If your child sees that you always obey the speed limit, you don’t break any traffic rules, and adapt safe driving habits, they will be inclined to mimic your actions. There’s no doubt that many teenagers tend to drink before they reach the legal drinking age in their state of residence. Along with this, they often feel invincible and get behind the wheel while intoxicated. Advise your children that they should always call for a ride if ever caught in an unsafe situation. Never endanger the lives of yourself or others. With the evolution of technology, many school age children now carry cell phones as well. It is up to parents to teach them that driving while conversing on a cell phone is very dangerous.

With experience and proper guidance, these teenagers will eventually grow to be responsible adults and will hopefully continue to follow safe driving habits. Cheap car insurance will be the result. It is best to teach them from the beginning rather than trying to correct poor habits at a later date.

On August 10, 2009, a husband and wife, their son, and their son’s wife were arrested in Sacramento on charges of car insurance fraud. The family members are accused of faking the theft of a vehicle in order to claim insurance money.

The accused are Amjad Javaid, 53; his wife Zarina Javaid, 43; their son, Fahad Javaid, 24; and their son’s wife, Fatima Javaid, 23. The alleged theft took place on October 3, 2006, when the Javaids filed a claim with their insurance company (Hartford) for the theft of a 2003 Range Rover. Later the same day, police found the SUV in San Jose. It had been set on fire and was in unsalvageable condition.

According to a statement by Insurance Commissioner Steve Poizner, all four have been charged with conspiracy, presenting a false oral or written statement to the insurance company, and knowingly presenting a false claim to the insurance company. All except for Zarina Javaid are also being charged with arson.

The false oral statement charge stems from statements that the Javaids made to Hartford the year of the alleged theft. They reported that the vehicle had been stolen from in front of their house in Elk Grove on October 2. They claimed that no one was home at the time and that the theft was discovered upon returning.

Investigators, however, learned that the Javaids had lied about where they were on the day of the alleged theft; investigators also learned that the Javaids had likely been suffering financial difficulties at the time, which suggested a motive for insurance fraud. Hartford Insurance Company denied the Javaids’ claim, which would have required a $50,000 payment to the family.

The sentence for car insurance fraud, if the Javaids are convicted, would be up to five years in prison for each family member, and/or a $10,000 fine for each convicted individual.

Cars being lit on fire to justify car insurance claims have become more common in the past several years as the economy has declined. James Quiggle, a representative of The Coalition Against Insurance Fraud, says that the recession has been a serious factor: “A growing number of stressed-out consumers around the U.S. are ditching unwanted vehicles to try and stop them from falling off a financial cliff in the recession.”

Police in the Las Vegas area alone found more than 70 burned-out cars in 2008 in spite of the increase in availability of cheap car insurance. The U.S. Fire Administration has released 2007 statistics indicating that 20,500 cars were set on fire in that year alone.

Lt. Robert Duvall of the LVPD Auto Theft Unit urges people not to try to commit car insurance fraud by destroying their vehicles: “Take the hit on your credit or whatever, don’t commit this crime. What you’re risking in injury far outweighs anything you’ll gain financially.”

It is a well-known fact that Nationwide Insurance can help you save money on your car insurance, but you might not be aware of how many different ways that they can help you save. This company has discount plans for nearly everyone, so take a look around and see if you qualify for any of their cheap car insurance discounts. You will definitely be amazed by how much you can save and all with very little effort on your part.

The first way that Nationwide Insurance can help you save is by bundling your car insurance with other forms of insurance. For example, you can combine your car and home insurance packages together into one inexpensive bundle. This is also true of life insurance, as your car insurance quote can be custom built to include a life insurance plan. By bundling these items together, you are not only making sure that you are completely covered, but are also saving yourself a lot of money.

Cheap car insurance is also available if you insure more than one car, as Nationwide Insurance can knock off up to 20% from your rates. The same can be said if you are accident free, as five years of safe driving will lower your car insurance quote by 10%. Those who are long-term policyholders will also be eligible to save up to 15%, so it pays to return to Nationwide Insurance year after year. For students, it is possible to receive a discount on your car insurance if you earn a B average in school, so working hard can really pay off financially. You will truly be surprised when you look at the savings that are possible and find yourself the cheapest car insurance available.

There are also things that you can do to your car in order to lower the car insurance quotes that you will receive. For example, you can get cheap car insurance if you purchase an anti-theft device for your vehicle or if you purchase a vehicle with airbags. This is because these two items will make your car safer and less likely to be stolen, which will translate through your car insurance quote. If you are able to take an accident prevention course, there is a chance that you can receive a lower car insurance rate as well.

Take advantage of these special offers that Nationwide Insurance is offering in order to get the cheapest car insurance on the market. This company is constantly giving its customers new ways to save money. They make it easier than ever to redeem these savings, which is why more people are switching to Nationwide Insurance.

Insurance companies offer many discount incentives to help lower your car insurance. There are multi-car discounts, anti-theft discounts and even discounts for allowing them to write all of your policies, including the one on your home.

People sometimes forget to tell their agent that their car is regularly housed in a garage. This could be costing you several hundred dollars on your policy that you could be saving by notifying your agent that your car is kept in a locked garage at night.

If you wonder why this would make a difference; it is quite simple. A car that is locked in a garage at night is less likely to be stolen. This can make a significant difference to your car insurance premium. If you live in a high crime area, where the theft ratio of vehicles is high, your car insurance may be evaluated by these statistics.

It is also less likely that your insurance company will have to pay out in claims for certain types of damages your car may receive as a result of sitting in your driveway, or sitting on a street. If your car is in an open driveway, then it is less likely that it will be stolen, vandalized, or hit by a falling tree branch or other debris.

If the car is parked on a street because you have no driveway access, there is also a chance it will be damaged by any number of things. Your insurance company will consider the fact that the car could be sideswiped by a careless driver. If the damage to your car is the result of a hit and run, your insurance company will have to pay to have your auto fixed or replaced no matter whose fault it was.

Insurance companies use many factors and statistics to arrive at the amount you are charged to insure your vehicle. Make sure you are taking advantage of all of the discounts you are entitled to. If you have a garage that you park your car in, be sure to make your agent aware of it, and ask if it will help to decrease your car insurance premiums or policy.

Keeping your car in a garage also helps to keep it in better shape. It is protected from the elements, thus helping to keep the paint and body in good condition. Such housing will also prevent your vehicle from getting minor scratches from people walking past it, or children who seem to enjoy writing in the dust on vehicles.

If your insurance company knows that the vehicle has always been stored in a garage, you may possibly get a better price for it in the event that you are in an accident and the car is damaged. Talk with your agent and see just how much you can save on your car insurance premium by telling him or her that the car is always garaged.

Whether you’re in the United States, Europe or Africa, a car accident is a car accident, and people who have car accidents without being insured ultimately pay the consequences. Although car insurance rates can be high, it is possible to find cheap car insurance when you’re traveling abroad. And even the most expensive car insurance is cheaper than the price of getting into an accident while uninsured.

Although many large car insurance companies offer coverage in other countries, it is likely that your policy does not cover you if you are driving abroad. In addition, if you are driving a car other than your own, it is important that you purchase car insurance for this vehicle before driving it. If you are piloting a friend or family member’s vehicle in a country other than your own, that vehicle may be covered by your friend or family member’s policy. Further, rental vehicles often also come with a car insurance policy.

However, it is often smart to augment the car insurance offered to you by friends, family members, and rental agencies with your own policy. To do this, you can check with your current car insurance carrier, along with the company that provides you with travel insurance. Although travel insurance and U.S. car insurance policies do not cover drivers in other countries, it is possible that these corporations could sell you additional coverage. If this still leaves you empty handed, consider calling the bureau of travel in the country or city you are planning to visit and asking for referrals.

When shopping for car insurance in the U.S., it is always important to compare car insurance rates and car insurance premiums among policies to get the best deal. Following these same practices when looking to purchase additional coverage when abroad will also help you to save some money. In addition, it’s also best to find the car insurance that is perfect for you instead of simply trying to find cheap car insurance. While you can find car insurance rates that meet your financial needs, you need to be sure the policy is right for you. For example, you should be sure that your car insurance premium is set to what you feel comfortable with paying in the event of an accident.

No matter how high current car insurance rates are, driving without car insurance is always far more costly in the U.S. or elsewhere. When you follow smart practices to get insured with low rates overseas, you save yourself the hundreds of thousands of dollars that you could be forced to pay if you are in a severe accident when uninsured.