November 13th, 2009 Car insurance companies have never been overly popular. Drivers often feel that the way in which these companies determine monthly car insurance premiums is flawed and nonsensical. Recent news stories provided these motorists with more ammunition. An Oct. 17 story in the Dallas Morning News found information stating that a study indicating that drivers with poor credit histories are more likely to get into accidents is flawed. This is big news. Car insurance companies have long pointed to the results of this study when explaining why they typically charge a higher car insurance rate to drivers with bad credit scores.
Insurers have used the results of a University of Texas study to justify their habit of charging higher car insurance premiums to consumers with weak credit scores. The study, conducted in 2003, said that drives with low credit scores were more likely to require larger insurance claim payouts during their driving careers. A follow-up study conducted in 2005 backed up these claims. That study by Texas’ Department of Insurance reported that drivers with low credit scores generally report more claims than do motorists with stronger credit. Not everyone, though, agrees with these findings. Some critics say that the insurance study has serious flaws, and that car insurance companies should stop using it as justification for setting higher car insurance premiums for drivers with low credit scores.
One of the more prominent critics of the Texas University study is Birny Birmbaum, former state associate insurance commissioner of the state of Texas. In the Dallas Morning News story, Birnbaum says that the findings of the university study are not reliable or credible. Birnbaum was most disappointed that the study did not look at whether there was any link between bad credit scores and homeowners insurance rates. If the university report did find a link between property insurance and credit rates, that finding would have lent more credence to a relationship between low credit scores and more frequent auto insurance claims. But because the authors of the study focused solely on car insurance, there isn’t enough evidence to determine conclusively that motorist with bad credit histories cost more to insure.
This debate in Texas simply adds to the longstanding doubts many consumers have over the methods insurers use to calculate car insurance premiums. Many consumer advocates dispute the fairness, for instance, of charging drivers a higher car insurance rate simply because they happen to be under the age of 25. Others complain that it’s not fair to charge higher rates to drivers just because they happen to live in a certain zip code. Insurers, though, argue that their research justifies such moves. It’s a debate that doesn’t look to be ending anytime soon.
Tags: car insurance credit
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November 13th, 2009 If your business uses a vehicle in its standard operation, you’re already familiar with commercial car insurance. As you’re aware, it can get expensive. Yet many business owners don’t look into possible ways of saving money on their insurance premiums. For example, if your business has an off-season in which the vehicle is used infrequently or not at all, there’s no reason that you shouldn’t save a bit of money on the insurance costs for that vehicle.
Some think that means just canceling your car insurance for the time that the vehicle’s not in use. But letting your car insurance coverage lapse is a bad idea. You shouldn’t consider going without car insurance just because a vehicle isn’t going to be driven for a few months — unless it’s in a secure storage facility. If you were closing your business’ office for a few months, you’d still want to have insurance in case something happened, and you shouldn’t treat your car any different. However, you certainly don’t need as much coverage on your vehicle. You’d be wasting money by paying for liability coverage or other coverages if the car’s just going to be sitting there. Comprehensive-only plans provide the minimum amount of car insurance, and they’re a good idea for business owners. These car insurance policies are very cheap, they provide some peace of mind, and they’re less of a hassle than canceling and restarting your car insurance coverage every year. Usually, you simply have to contact your insurer or visit their website to switch your coverage over to a comprehensive-only policy. It’s easy, and you begin to save money in your off season almost immediately.
Depending on what your business does, you may be able to get a special rate from your insurance company if you have an extended annual off-season. Call your insurer and speak to a representative about the situation. Explain your business, and listen to their advice. They’ll often have a special commercial car insurance plan that’s structured around the assumption that a vehicle won’t be operated during specific times each year. These car insurance plans are a good choice if the car is still going to be driven occasionally, too, as they can be set up to convert the policy to a personal use policy.
In any case, the worst option for commercial car insurance is to buy a new insurance plan every year. With the current economy, insurance costs are on the rise, and it’s unlikely that you’ll be able to lock in the same rate each time you look to buy. Plan ahead, and you’ll end up saving money on premiums.
Tags: commercial car insurance
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November 13th, 2009 A study from the car insurance comparison website uSwitch.com has indicated that the average age of children using a parent’s car insurance policy may have recently increased. The study compared driver ages and their car insurance coverage over the course of a year to determine whether older drivers were staying under their parents’ car insurance policies. According to the study, older drivers with an average age of 31 are staying under the policy of one or both of their parents. This is a raise in the average age by 8 years.
There are a few possible reasons why a child might want (or be forced) to stay under a parent’s car insurance policy. The most notable is probably cost. Older drivers typically pay less for car insurance coverage. Insurance companies use a variety of factors to decide the cost of a policy’s premiums. One big determinant is age. This is because middle-aged drivers are statistically safer and make fewer claims. If a child has made several insurance claims, getting on a parent’s insurance plan can save a lot of money in car insurance rates. Also, in the current economy, more and more children might be moving back in with parents after unsuccessfully trying to find a job. Young drivers aren’t buying new vehicles, and may borrow a parent’s car rather than pay hefty costs for car insurance, license costs and other fees associated with owning a car. This could be especially true in cities with good public transportation systems where owning a car might not be a necessity.
It’s important to note that children can only legally drive on a parent’s car insurance policy if they’re not the main driver of a vehicle. It’s not possible to buy a new vehicle and then put it under a parent’s name to receive a low car insurance rate. This can be a violation of terms, and can result in major insurance issues in the event of an accident.
There are some options for drivers who want to lower their premiums, but don’t necessarily want to move back in with a parent. Drivers should consider premium-lowering options such as defensive driving courses, higher deductibles and comparison shopping. Comparison shopping is particularly valuable, as it allows drivers to find a lower car insurance rate without sacrificing any coverage. Speaking with an insurance agent can be a great way to get ideas about ways to lower rates in an existing plan.
The current trends seem to indicate that the age of children on parents’ policies will continue to rise, but for adults that aren’t able to hop on a parent’s plan, there are certainly other options to help keep car insurance quotes low.
Tags: children car insurance, parent car insurance
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November 13th, 2009 Teen drivers are in one of the two groups that cause the highest number of automobile accidents. As such, they have higher car insurance rates. With that in mind, it’s important to show your teenager how to drive safely on the roads. You can teach them everything in the driving manual and give them countless hours of real-world instruction on the road; however, another thing you can do is lead by example and show them how you drive the right way. You might believe that your teenager thinks you’re ‘lame’ or doesn’t care what you do, but that’s really not the case.
Children are always watching their parents, even as they get older. When you drive, you can show your teen driver what’s right and wrong, and you’ll help to keep your car insurance lower in the process. Setting a good example for your teen driver includes more than just going out on the road. You should also maintain your car well and take good care of it. A car that’s maintained regularly will run better and have less of a chance of leaving you stranded. It’s much safer that way. When your teen sees you taking care of your car, he’ll take care of his as well.
Out on the road, make sure that you keep calm and show your teen driver that it’s not acceptable to have ‘road rage,’ to talk on the cell phone, or to text and drive at the same time. Part of the reason that the car insurance rates for a teen driver are so high is because teen drivers are often distracted drivers. You can set a good example by not driving distracted. You can’t always stop your teen from doing things wrong, but you can show them what’s right and hope that they follow your example. It will not only help keep your car insurance lower, but it will help keep them safe, too.
Car insurance for a teen driver is expensive no matter what you do mainly because of the risk factors involved with a new driver. However, that doesn’t mean that you can’t get some discounts. Make sure your teen driver takes a safe driving course, so he can get a discount on car insurance. Give him plenty of hours behind the road, and don’t buy him a car that’s sporty or has a lot of horsepower. That’s just asking for trouble. If you lead by example, your teen driver should be a safe driver, and that’s great news for your car insurance. You won’t be able to watch him all the time when he’s driving, so make sure he knows what’s important before he pulls out of the driveway.
Tags: teen accidents, teen driving
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November 13th, 2009 If you are planning to move to Alabama, then you need to get an Alabama car insurance policy. This indemnity will protect you from incurring losses in case of any accidents. Both the drivers and the vehicle will be covered in this indemnity policy.
How to look for the best auto insurance company in Alabama?
There are many companies to choose from in terms of auto insurance for Alabama. In such a case it becomes difficult for people seeking auto insurance, as they are likely to get confused by the range of policies offered by these companies. However, there is a solution to put an end to this confusion and help you to get the best deal available. In order to know about the companies, you can always go to the Insurance Department and gather information about their reputation and ratings. You can also search on the Internet for more details.
Requirements of Alabama car insurance
The premium you pay for Alabama car insurance is calculated differently by each company. They bear the risk by insuring you. Companies that give more weight to your marital status charge less if you are married. This is because they think that marital status can be a better indicator of the risk level as opposed to just the age group. Companies that believe that age is a better pointer to risk level will generally charge more if you are, for example, a teen driver. Therefore, it is easy to understand that your premium rates can vary from company to company depending on their weight of several factors.
All drivers the Alabama should possess liability coverage while driving within the state. Per accident the minimum amount of acceptable coverage is fixed at $10,000 for property damage, $40,000 per accident, and $20,000 for individual liability. You need to carry a proof of the policy whenever you are driving in the state. The types of proofs acceptable can be the original policy document, a photocopy of the original document, and a temporary or permanent card from your policy provider.
If you forget to carry a proof of your coverage, then as a penalty, the vehicle registration tag of the car may be suspended. You will also have to pay a fine of $100. The suspension will remain until the present proof of the vehicle insurance is given to the proper authorities.
Before buying an insurance policy for your car, compare rates offered by multiple insurance companies.
Tags: alabama car insurance, alabama car insurance requirements
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October 28th, 2009 It is well known that the death toll on U.S. roads exceeds the loss of life in all our wars combined. The first cause of death for Americans ages 5 to 34 is traffic accidents. Using common driver safety knowledge and using a seatbelt could have saved many of these lives. Sports teams, schools, camps, public service groups and parents often use large vans to carry large groups to various events. So, it is with good reason that van drivers are now beginning to insist their passengers buckle up.
A van driver is considering more than driver safety when demanding the use of seatbelts. They must also do this to meet legal and car insurance requirements. Not wearing a seatbelt is illegal in every state in the U.S. except for New Hampshire. In 30 states, plus the District of Columbia, not wearing a seatbelt is a primary offense. This means that a police officer can pull a vehicle over for that reason alone. Thus the van owner and driver are in a very bad position with the law and their car insurance company if there is an accident involving unrestrained passengers. The lack of driver safety precautions would be a strong negative in any negotiation or legal proceeding, and car insurance rates in these cases will surely rise.
Yet another compelling reason for a van driver to be preoccupied with seat belt use is a safety issue specific to vans. A fully loaded 15-passenger van has a tendency to roll over. According to a May 2009 National Highway Traffic Safety Administration (NHTSA) study, “15-passenger vans with 10 or more occupants had a rollover rate in single vehicle crashes that is nearly three times the rate of those that had fewer than five occupants. NHTSA recommends that drivers insist all occupants wear safety belts at all times; that drivers of 15-passenger vans are trained and experienced; tires are checked at least once a week … and no loads are placed on the roof of the vehicle.” NHTSA figures indicate that about 80 percent of the occupants killed in van rollovers in the past five years were not belted at the time of the crash.
Unfortunately, some passengers who would automatically buckle up in cars are unwilling to do so in vans. This puts the van driver in the awkward position of having to insist they do so. A British study of 2,000 van insurance customers found that 68 percent of van drivers needed to request their passengers to fasten their seat belts and that 21 percent of the passengers refused.
Regardless of how safe you feel while riding in a large van, wearing your seatbelt is a necessary precaution to prevent you from becoming another statistic.
Tags: van insurance
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October 28th, 2009 According to the New York State Insurance Department’s 2009 report on consumer complaints, one out of every eight grievances claimed against a car insurance company settled in favor of the consumer. Out of 7,237 claims evaluated by the department, only 948 resulted in findings penalizing the insurers. Customers generally complain about company behaviors, such as delays in payment of no fault claims or failures to renew policies. In more than one fourth of the cases evaluated, the insurance department concluded that it did not have sufficient data to reach a decision.
The insurance department ranks insurance companies based on a ratio calculated by comparing the dollar value of upheld complaints to the amount that the company’s clients paid in car insurance premiums. The ratios are calculated over a two-year span, taking into account the fact that it sometimes takes time for the department to process a complaint. Grievances initiated during a particular calendar year may not be resolved until the following year. On average, insurance companies are faced with ten cents worth of complaints for every million dollars they pay in car insurance premiums, although ratios vary considerably. Each upheld complaint correlated with approximately $9.7 million worth of premiums. Some companies — such as Adirondack Insurance Exchange and Amica Mutual Group — had no complaints at all, while Long Island Insurance Company, the firm with the highest ratio, had $12.19 in complaints per million dollars in premiums This is nearly 25 times the amount of Countrywide, the company with the second highest ratio, for whom $.45 in complaints were upheld for every million dollars worth of premiums. These ratings are available to consumers to reference when making decisions about choosing insurance carriers. New York is a highly competitive insurance marketplace, so such statistics, which provide some gauge of customer satisfaction, can be useful to prospective clients when shopping for car insurance carriers.
The department also publishes an Annual Consumer Guide to Automobile Insurance, which contains a broader range of data. Consumers should bear in mind that these statistics reflect only complaints made by customers carrying insurance on passenger cars, so commercial car insurance customers do not figure into the equation. In addition, the available numbers tell us about complaints that have been taken as far as the level of the State Insurance Department. Many issues are resolved in arbitration, or directly between companies and clients.
The complaint ratio provided by the state’s insurance department is just one set of numbers that should be considered by consumers when choosing an insurance company. Potential customers should also consider their personal experience with a company, as well as any reports they may have heard from acquaintances.
Tags: car insurance company complaints, car insurance complaints
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October 28th, 2009 According to Kanetix, a major Canadian car insurance marketplace website, the cost of Ontario car insurance quotes has fallen by about 2.8 percent in the last year. Before Ontario drivers begin celebrating, though, they should be aware that in this case, the reasons for the decrease are a bit more complex than a simple decrease in insurance costs. Changes in consumer habits and people looking to save more money on car insurance have likely driven the drop in car insurance rates, rather than more forgiving or competitive insurance companies.
One of the possible reasons for the decrease is the high level of unemployment in the Ontario area for younger drivers. Younger drivers, especially males, tend to have higher car insurance premiums, as they’re one of the most risky groups for insurance companies to insure. Incidences of accidents tend to be high among this group of drivers. The unemployment rate may indicate that young drivers are simply unable to afford cars and car insurance. Their driving less leads to less accidents, and therefore car insurance claims, resulting in the overall drop in car insurance rates. Unfortunately, this also means less drivers on the road — a bad thing for car insurers. This means they’re insuring less vehicles and taking in less money overall.
Drivers are also taking advantage of various options to lower the premiums on their existing policies. For instance, older cars tend to cost less to insure as their value goes down. Ontario drivers are holding onto their cars for longer, and taking advantage of optional discounts. They’re also lowering the amount of car insurance coverage they pay for. The average cost of car insurance therefore goes down, but so does the amount of coverage being provided by an auto insurer. This doesn’t do much for drivers, though it does show that the insurance companies have taken a hit during the current recession. Car insurance companies handle losses in revenue several different ways, but generally tend to offer lowered, more competitive car insurance quotes to customers. Though this hasn’t showed up in the current numbers, it may be possible a ways down the road.
Even though the current insurance decrease may be misleading, drivers can often negotiate lower premiums by speaking with their car insurance representatives. By doing comparison shopping online beforehand and pointing out a good driving record to insurance reps, Ontario consumers can often cut huge percentages off of monthly payments. Ultimately, it’s down to the individual driver to get lower rates, but the current decrease does show that insurance companies may be more open to negotiation of car insurance quotes, and to keeping premiums low for safe drivers around Ontario and around the country.
Tags: car insurance quotes, ontario car insurance
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October 28th, 2009 If you’re moving to the United States or even just visiting, you may have wondered whether it’s possible to transfer your driving record and how you can continue to drive once you’re in the United States. The good news is that driving records can be transferred relatively easily. However, if you’re staying in the U.S. for longer than a year, you’ll want to get a driver’s license from the state that you’re a living and driving in for the period of time you’re here.
An International Driver’s Permit, or IDP, translates the information from your driving record into ten languages, allowing drivers to travel freely and drive in foreign countries. Many countries accept IDPs as temporary licenses. Luckily, the United States is one of these countries. The IDP must be issued by your country of origin, not the United States government, and is considered supplemental to a U.S. driving license. The laws vary depending on the state you’re driving in, but IDPs are always accepted and can often be used while you get a U.S. driver’s license (or if you’re not going to be in the state for very long).
In the United States, it’s necessary to have proof of car insurance to drive, and a good driving record does not exempt you from this stipulation. Car insurance rates and requirements vary by location, so it’s wise for foreign visitors to contact a state’s Department of Motor Vehicles to discuss car insurance requirements. Many car insurance companies have special rates for foreign visitors, and a temporary car insurance policy can be purchased and implemented very quickly to allow you to freely drive in the United States without any trouble. They will often need your IDP or a translated version of your driving record to use when estimating what your car insurance rate will be. It’s a good idea to contact your current car insurer, if you have one, to discuss travel plans and see if they offer international rates.
The most important thing when traveling to any country is to get your driving record translated as soon as possible, and to obtain an International Driver’s Permit from your country of residence before traveling. This way, you can avoid long wait times at a DMV and make sure that you’re driving legally as soon as you arrive. Contact the DMV of the state you’re going to be driving in, as well as your nation’s driving bureau, to make sure that your driving records are transferred quickly and correctly, and don’t forget to look into obtaining the necessary insurance, too. With a bit of planning, you shouldn’t have any trouble getting around during your visit or residency.
Tags: international driving record, transfer international driving record
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October 28th, 2009 Many individuals ask if it is possible to obtain full car insurance coverage if the vehicle has a salvage title. The answer lies within determining the laws and regulations that exist in the state you live. Every state is different and contacting your local title office or DMV will give answers to all your car insurance coverage questions, especially concerning an automobile that has a salvage title.
Most states however, have laws in place that clearly state a vehicle is deemed unlawful to operate on a highway until the owner has had it repaired and inspected by the state highway patrol office. Many times this will apply to a car with a salvage title. Once you have had your car inspected, the highway patrol office will give you the necessary documents you will need to show the DMV that indeed it has passed the requirements. When all this has been processed and taken care of, you will be able to insure and operate the vehicle. If you opt for acquiring full car insurance, the car’s value may be shown as a lesser value. Address any concerns you have on this matter with your car insurance company when you apply for coverage.
If you are the owner of any vehicle that has a salvage title, then you can assume the automobile has been modified and meets state specifics regarding salvage title vehicles. It is now in your hands to obtain sufficient car insurance coverage. You should not have any difficulty in finding a company that will place an insurance policy on the vehicle. You will also want to compare car insurance rates to get the best deal on coverage. This is easy to do by simply searching online. Several websites will allow you to quickly compare car insurance rates.
Vehicles that are issued a salvage title are considered damaged beyond what the normal market value is of the car itself. In some states, if the owner of a salvage titled automobile does work on the vehicle to make the car sufficient and roadworthy, then they may reissue a rebuilt title after the fact. Usually, it is not difficult to find an insurance company that is willing to insure this sort of vehicle, however most will only insure the automobile with liability coverage. Be sure to ask your car insurance agent what options may be available to you for any additional coverage you may want to purchase.
Sometimes, insurance companies do have optional insurance coverage you can purchase for vehicles with a salvage title. But, ultimately, you will have to make a decision if the car is value to you is worth the amount of coverage and premiums that you will be paying.
Tags: car insurance coverage, salvage title
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