Posts Tagged ‘car insurance rates’

How Will Transferring a Car Title and Registration Impact Your Car Insurance Rates?

Wednesday, October 28th, 2009

If you decide to move, especially out of state, one thing you have to attend to is your car title and registration. Most states will give you 30 days to switch over to your new residence, including changing your driver’s license. Depending on where you were living and where you are moving to, your car insurance rates can change dramatically. Generally speaking, moving from a less populated area devoid of high crime into a major city will have your car insurance company raising your rates, much to your chagrin.

Several permanent factors decide what your car insurance rates will be, regardless of where you live. Insurance providers will first look at your driving record to determine if you are a safe driver. If you are in a higher risk bracket, meaning you have filed many claims or have had more driving accidents, this will result in you having a higher car insurance rate. A car insurance company will also look at your credit history. The lower your credit score, the higher risk you will be considered to insure — also resulting in higher insurance costs. The type of car you drive will also be considered when a company gives you an insurance quote.

Now is when the location-specific criteria come in. A car insurance company will then look at the statistics for the area in which you live. An outlying suburb with low crime will get you a much better rate than a place in the heart of the city, close to major high crime areas or heavy traffic. Car insurers base the likelihood of you filing a claim based upon your zip code. Throughout the years they have increasingly improved their ability to pinpoint areas that are the most likely to have a certain risk factors. If you are moving for a job or some similar reason, you need to be aware of what the costs will be in your new home.

There is little you can do to change the factors that affect your car insurance rate. If you can’t afford the luxury of moving to a more desirable location, you are stuck with everyone else who has to pay the high premiums associated with living in a high-risk area. If this is a case, discuss discounts you may be eligible for with your car insurance agent. Many times you can minimize your premium by having certain safety features on your car or by negotiating a lower rate based on your loyalty to the insurance company. But, regardless of the discounts you are eligible for, transferring your title and registration to a new state will have an effect on your insurance rates. When considering living expenses in your new home, this is something you should consider.

No Fault Accident…Why the Increase?

Friday, September 25th, 2009

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.

High Car Insurance and Low Gas Prices

Tuesday, March 24th, 2009

It is interesting to note that in 2009, a lot of drivers are finding that their car insurance rates are going up while their gas prices have trended down in the past few years. What this means is that the insurance companies are raising rates in places that might not be applicable to most drivers. You may not feel it overall since you are spending less on gasoline. Make sure to frequently get car insurance quotes and compare different coverage options to see if you might be throwing away money. It will not feel good when gas prices start inching up!