Why Car Insurance Premiums are on the Rise in 2009

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.

Tags: ,
Posted in Cheap Car Insurance Tips, Industry News | No Comments »

How To Keep Your Teen Safe Behind the Wheel

August 20th, 2009

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.

Tags: , ,
Posted in Cheap Car Insurance Tips | No Comments »

Sacramento Family Taken into Custody for Car Insurance Fraud

August 20th, 2009

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.”

Tags: , ,
Posted in Industry News | No Comments »

Nationwide Insurance Offers Insight to Saving on Car Insurance

August 20th, 2009

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.

Tags: , ,
Posted in Cheap Car Insurance Tips | No Comments »

How Using a Garage Can Lower Your Car Insurance Premiums

August 20th, 2009

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.

Tags: ,
Posted in Cheap Car Insurance Tips | No Comments »

Why You Should Get Covered if You Take Your Car Abroad

August 20th, 2009

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.

Tags: ,
Posted in Cheap Car Insurance Tips | No Comments »

How To Prevent Car Thefts

August 20th, 2009

Over one million cars are stolen in the United States every year. Auto theft is not just an inconvenience, it is costly. Even if you are covered by insurance, a stolen car may result in lost wages, rental car costs, and the payment of an insurance deductible as well as the cost of paying higher car insurance premiums.

While they make the news more often, car hijackings only account for about 3% of stolen vehicles. Most often, cars are stolen when they are empty and parked. Types of vehicles most likely targeted vary from region to region. It is not just newer cars that are at risk – many older cars are attractive targets for their parts.

Listed below are five steps you can take to reduce the risk of having your car stolen and to avoid paying higher car insurance rates:

Step 1 – Use common sense. Be cognizant of your surroundings. When parking your car, look for a well-lighted area. Do not leave important papers, such as bank statements, wallets or purses in the vehicle. Make sure the windows are rolled up and the doors are locked. Never leave an extra set of keys in the vehicle and never leave your car while it’s running.

Step 2 – Take your vehicle registration or title with you. It is much easier for a thief to dispose of the car if he has the registration or title.

Step 3 – Use your garage. Lock the car, and then lock the garage. If you do not have a garage, park your car in a well-lighted place. For driveway parking, park your car forward in the driveway if it is front wheel drive and back it in if it is rear wheel drive. This makes the vehicle more difficult to tow.

Step 4 – If your vehicle has an alarm, use it.

Step 5 – Etch the VIN (vehicle identification number) on each window. Etching makes the vehicle less attractive to thieves and identifies the car if stolen.

In addition to the steps above, a variety of anti-theft options are available to reduce the chances of car theft and aid in vehicle recovery. In many cases, use of anti-theft devices will reduce your car insurance premiums.

Some of the more popular anti-theft options include steering wheel locks, wheel locks, engine disablers, ignition cut-offs, and electronic recovery systems.

Nation-wide, a car is stolen every 29 seconds. The risk of higher car insurance rates, identity theft, and paying unexpected costs involved in vehicle recovery or loss may be greatly reduced by using common sense and taking the appropriate measures to ensure that your vehicle is as theft-proof as possible.

Tags: , ,
Posted in Driving Tips | No Comments »

Go Green With Cheap Car Insurance Rates

August 20th, 2009

Creative people are constantly coming up with new ways to find cheap car insurance rates and many insurance companies are now making this easier if you decide to help the environment. Fuel-efficient vehicles like hybrids will lessen your carbon footprint and, therefore, these vehicles are preferred by eco-friendly people. What car insurance companies are now doing is offering cheap car insurance for people who purchase hybrid cars, which should make these vehicles much more appealing for people in the future. These incentives are based on a number of factors, but purchasing a hybrid is one of the easiest ways to lower your car insurance premiums immediately.

Generally, you will find that your car insurance rates will drop by 10% if you switch to a hybrid vehicle, although there are some variables involved. For example, the reason that this cheap car insurance is available is because most hybrid drivers are mature, responsible individuals who are less of a driving risk. Therefore, the insurance companies believe that these people should have the cheapest car insurance on the market and this will be reflected in the quotes that they receive. It has definitely never been simpler to find cheap car insurance rates thanks to this hybrid program.

There are other ways that you can go green with your car insurance, as it is now possible to request things like paperless billing. When you sign up for paperless billing, all of your statements will be delivered to you via email. This cuts down on the amount of paper waste that you are responsible for, which can have an impact on your insurance rates long term. While this will not immediately lead to cheap car insurance, it is possible that the money that your car insurance company saves by not using this paper will be passed on to the customers later on through lower rates. Some car insurance companies already offer discounts to those who pay online or those who have automatic debits from their bank accounts, so taking advantage of these features can be beneficial financially.

If you truly care about the environment, there are a number of ways that you can reduce your carbon footprint through your car insurance habits. Even if you are not concerned about the environment, these options will save you money by providing cheap car insurance in the long and short term, so they are well worth considering. By purchasing a hybrid car, you can easily lower your premiums to more affordable rates. You will also find that you will spend less money on fuel with one of these vehicles, making your investment rewarding for both your bank account and the environment.

Tags: , ,
Posted in Cheap Car Insurance Tips | No Comments »

Georgia Drivers May Experience Lower Car Insurance Rates

August 20th, 2009

It looks like safe driving habits have paid off for Georgia residents. State Farm has announced they will soon be rewarding their customers with lower car insurance rates, but they are not the only ones. Earlier this year, two other major insurance companies, Geico and GMAC, lowered their car insurance rates as well. Hopefully soon, other companies will follow in their footsteps.

Given the current economic conditions, paying lower car insurance premiums can help residents of Georgia keep a little extra money in their pockets for other expenses. Keeping these rates low is something that drivers will need to work hard to do. Keeping accidents and claims to a minimum allow car insurance companies to offer lower Georgia car insurance rates to their existing and new customers. Once the car insurance companies start paying out claims for accidents and loss, rates will start to go back up.

If you are a driver in Georgia, and are not affected by the lower car insurance rates offered by these companies, there may be options available to you with your current carrier. Some car insurance companies offer discounts and incentives to their customers, and knowing what to look for can help you save money on your car insurance premiums.

Safe Driver Discount
If you are a safe driver, inquire about getting a safe driver discount. Companies like Allstate offer this discount to their customers.

Student Discounts
Students and recent graduates may qualify for a discount on their car insurance premiums.

Multiple Car Discount
Do you have more than one car? Try and get both cars on the same policy. Most insurance companies will offer lower rates to customers who have more than one car on a policy.

Defensive Driver Discount
Ask you insurance agent if your car insurance company offers a defensive driver discount. Companies like State Farm Insurance offer a discount for taking an approved defensive drivers course.

Bundling Your Insurance Policies
If you own a home and have homeowners insurance, ask your agent if the company offers car insurance and if you can get a discount by bundling it with your homeowners insurance. This will not only be convenient, but it can possibly save you money on both policies.

These are just a few of the many discounts that are offered by insurance companies, and they may help you get a lower car insurance rate.

There are also many other factors that car insurance companies use when determining your car insurance rates. Things like credit, driving history, age and gender, where you live, and even what kind of car you drive can determine your rate, and possibly get you some discounts.

Tags: ,
Posted in Cheap Car Insurance Tips, Industry News | No Comments »

Car Insurance Incentive Costs Taxpayers

August 20th, 2009

The car insurance incentive in Bucks County, Pennsylvania is one that is largely unheard of elsewhere, as it calls for taxpayers to pay for the car insurance of many workers in the private sector. This applies mostly to the county’s government employees, but it means that taxpayers are paying an extra $200,000 per year in order for these workers to drive their cars for free. On top of the cheap car insurance rates that these government workers are receiving, they also get money for fuel and maintenance costs on their cars, which nearly double the amount of money that the taxpayers are paying. This car insurance incentive is definitely not a good deal for taxpayers and should be amended immediately.

In these tough economic times, it is very strange that the taxpayers would be forced to pay for something like car insurance, which is what makes this situation in Bucks County so ironic. It is also important to remember that Bucks County already has some extremely cheap car insurance, so it is not as if these government workers could not afford the car insurance rates on their own. The taxpayers of Bucks County should be outraged by this because their tax money could be going toward more useful social programs in the area.

Recently, Bucks County has also been victim of a scam where a licensed car insurance dealer was advertising his services in New York. This is because the average cost of insurance in New York is about $3,000 more per year than it is in Bucks County. These New Yorkers were traveling to Bucks County to get their insurance and then getting cheap car insurance. However, if these people were ever in an accident, it would affect the insurance rates in Bucks County rather than New York. Therefore, this scam could lead to higher rates on car insurance in Bucks County which, in turn, would cost the taxpayers even more money in the future.

What this fraud shows is that government workers should feel lucky that they have some of the lowest car insurance rates in the country and should gladly pay for their own insurance. The $400 or so that these individuals are collecting every month could be used for other, more useful, things. People are being laid off in the county everyday and countless workers are being forced to pay for their own healthcare, but these private sector employees are being given free car insurance. While this incentive makes being a government worker a source of pride, it is a program that should be altered because it is not fair to the region’s taxpayers.

Tags: ,
Posted in Industry News | No Comments »

« Older Entries
Newer Entries »