There is a very good chance that you are — this very moment — paying too much for your car insurance. There is an even better chance that you could get a better rate, from another insurance company, than you could from your existing insurer.
So why not take an hour or so and review your policy for potential savings? Or, if you’re fed up with the high insurance rates from your current insurer, shop around for a new company.
The Internet has created increasing competition between car insurance companies. It is easier than ever for consumers to shop for low insurance rates, to analyze coverage and compare premiums. Still, studies have shown that people don’t shop around for insurance in the same way they might shop for a new car. Also, people tend to stay with the same car insurance company for years. Why not prove these studies wrong? Put the power of the Net to work for you and save money in the process.
You can save on auto insurance in five ways:
- Make sure you get all discounts you qualify for
- Keep your driver’s
For most of us, buying a car is the second largest financial transaction we’ll make, next to buying a home. And we’re likely to get loans to finance our car purchase. In the fourth quarter of 2014, 84 percent of new cars purchased were financed, according to Experian Automotive.
If you’re financing your car purchase through a dealership, it’s also likely that the finance and insurance manager will offer you warranty and insurance products, such as an extended warranty, gap insurance or tire-and-wheel protection. The F&I manager might also offer credit protection, which is meant to cover your car payments should you be unable to pay them yourself because of layoff, injury, illness or death.
The most venerable of these products, with an almost 100-year history, is credit insurance. Consumer groups have long been leery of credit insurance products, which are offered not just for cars, but also for credit cards and other consumer loans. Often, the consumer groups contend, the products are expensive and unnecessary. Further, there have been instances of lenders forcing the credit insurance on consumers.
“It’s often very expensive when you compare it
Could you save hundreds of dollars by switching your car insurance? It is a question worth asking yourself at least once a year. By doing a little research now, you may be able to find a comparable insurance plan at a better rate with another company, and save money. But you have to make sure you take the appropriate steps to switch, because you don’t want to have a lapse in coverage.
Jeanne Salvatore, senior vice president at the Insurance Information Institute in New York, suggests asking yourself if you’re happy with the cost, coverage and service of your current policy each time it comes up for renewal. “If the answer is ‘yes, yes and yes,’ then stay with them. But if you’re not sure, it’s a good opportunity to shop around,” she says.
Here are four key steps to take when it comes to switching car insurance:
1. Review your current driving situation.
Take note of your driving circumstances as well as the needs of other drivers in your household. Do you have a newer model car? Do you commute several miles each week to work?
Marijuana, young drivers and serious car accidents are on a collision course. Fatal crashes involving drivers whose systems showed evidence of THC, the active ingredient in marijuana, nearly tripled in 10 years, rising from 4.2 percent in 1999 to 12.2 percent in 2010, according to a study released earlier this year by Columbia University’s Mailman School of Public Health. In another four-year study, 43 percent of fatally injured drivers under 24 tested positive for cannabinoids. The percentage was lower for older age groups.
Now that marijuana is legal in Colorado and Washington and widely tolerated elsewhere in the U.S., parents may be on their own collision course with pot: They face steep car insurance hikes and even cancellation if young drivers on their policies are convicted of a DUI stemming from marijuana use. Here’s what parents need to know about drugged driving and the effect it can have on insurance coverage.
Drugged Driving: A Growing Concern
Pot use behind the wheel is a subset of a category that law enforcement and the traffic safety community call drugged driving. Every state has laws addressing it. In many, the laws say if a driver is stopped and authorities
The Motor Vehicles Act of 1988 requires all vehicles used for either social, domestic or pleasure purposes to be covered by valid insurance. Under the provisions of Chapter 11 (Section 145 to 164) of this Act, driving motor vehicles in public places without third party insurance is a punishable offence. Hence, Third Party Motor Insurance for vehicles is a statutory requirement.
Insurance is a contract whereby the insurer undertakes to pay the insured person a sum of money in the event of a happening or in the event of specific events. Motor Insurance protects the owner of the vehicle against damages to the vehicle and also pays for any liabilities owed by the vehicle owner as per law. The owner of the vehicle is legally liable for any injury or damage to life or property caused by used of the insured vehicle.
What does Motor Insurance Cover?
Motor insurance can be of two types. It can either cover only liability, as is the statutory requirement. Or it can cover liability and a variety of damage to the insured person’s vehicle. This is called as OD (Own Damage) cover and comprises the following types of damages.
The statistics about teenage drivers aren’t good. According to the Insurance Institute for Highway Safety (IIHS), 16-year-olds get into accidents almost six times more often than drivers between the age of 30 and 59. No wonder car insurance premiums are so high for this age group.
However, not all car insurance companies take the same dim view of young drivers. And some discounts are available to help you cut costs. Remember, the higher the risk, the higher the cost of insurance premiums. Let this be your guiding principle as you shop for insurance.
Here are 10 suggestions to help lower premiums and keep your teenager’s license free of violations:
1. Help your teen learn the laws and follow them to the letter. By far, the best way to lower car insurance costs for teens is for them to keep their driving record clean. Make safe driving a family project. In some states, restrictions apply to new drivers. Parents should know what the laws are and insist that their sons and daughters follow them.
2. Set a good example. Do you break the speed limit and tailgate? Do you yell at other drivers when you’re behind the wheel? If you do these things, how can
What’s worse than experiencing auto theft? Finding out your car insurance policy doesn’t fully cover your loss or out-of-pocket expenses.
A vehicle theft occurs at least twice each minute in the United States, at an estimated cost of $6.4 billion last year. Fewer vehicles are stolen by that legendary joy-riding teen than by pros who drive your car onto a freighter heading overseas, or to a chop shop to cannibalize it for parts.
To help consumers avoid getting burned not just once, but twice, the Council of Better Business Bureaus and the Insurance Information Institute have teamed up with a program called Wiser Drivers Wise Up to address both vehicle theft prevention and what to do if your car is stolen or in an accident. Here are some of their tips:
- Don’t think manufacturer-installed vehicle theft protection is enough. It can be disabled by experienced and determined thieves, who also know how to unlock a Club and similar devices. Even Steve Cox, a BBB vice president, was the victim of car theft. In fact, he lost two vehicles in three years with these protections; his Pontiac Firebird was stolen in daylight, and his Nissan 300ZX
A reporter recently asked Edmunds about the kinds of personal information that can affect the cost of car insurance. She also wanted to know whether people could do anything to address personal factors that were keeping their car insurance rates high.
They’re good questions, and Edmunds was happy to help answer them. During the research it became clear that when it comes to car insurance, there’s hardly anything that isn’t personal. Here are five all-about-you factors that can affect your car insurance premium:
1) Your driving profile. Such factors as the number of miles you drive annually and your accident and ticket history are major elements in setting your insurance rate. The less you drive, the less risk of an accident and a claim. Safer driving — meaning a history free of accidents and moving violations — also points to someone who’s less likely to file a claim.
2) The car you drive. Car insurance premiums are based in part on the car’s sticker price, the cost to repair it, its overall safety record and the likelihood of theft, according to the Insurance Information Institute. The cost of fixing a brand-new $225,000 2010 Ferrari 458
There are various ways consumers can fall victim to auto insurance fraud, including accident scams,insurer tricks and referral fraud. Whether you’re buying auto insurance or on the road, it’s important to know how to protect yourself. To keep you out of trouble, we’ve compiled the most important tips from the National Insurance Crime Bureau (NICB), the North Dakota Department of Insurance, FraudGuides.com and Edmunds.com.
When Buying Auto Insurance
- Be wary of insurance offers from door-to-door salespeople, telephone callers or unsolicited Internet advertisements.
- Be suspicious if the price of insurance seems much lower than the competition’s. It could be a scam, or the coverage might be full of exclusions that are only discovered when you need the coverage.
- Contact your state’s insurance department to make sure the agent and company are licensed.
- Check the company’s rating at the Better Business Bureau.
- Make sure “free services” aren’t actually hidden in your insurance bill.
- Ask if the insurance company has purchased or invested in vehicle repair shops; this is a red flag. You are not required to use them, and they will not give you better service or prices — in fact, they could be worse.
- Guard your insurance identification number the same way you
The word shopping brings a feeling of immediate excitement to most people. But if you combine the word shopping with car insurance — as in “shopping for car insurance” — it produces the opposite effect. The thought of shopping for auto insurance makes the eyes glaze over and the heart rate drop to the pace of a slumbering couch potato. Couch potato? Indeed. Doug Heller, a consumer advocate atThe Foundation for Taxpayer & Consumer Rights (a California-based consumer advocacy group) and a recognized insurance issues specialist, told us that too often “people purchase insurance by calling the number on the screen.”
But wait, this is important stuff! You want to be adequately covered if you get in an accident. And you certainly don’t want to pay more for car insurance than you should. Maybe waiting for a solution to be beamed into your living room is not the best idea.
How can you stay awake while navigating through this murky subject? Just remember: There is money to be saved. How much? Hundreds, even thousands, per year. For example, one of the authors typed all of his insurance information into a comparative insurance service. The quotes (for
If you lose your job, take a pay cut or encounter another kind of financial hardship, affordable auto insurance quickly turns from nice to necessity. While it’s easy enough to find companies offering cut-rate car insurance, is that the best way to go?
Not really, according to consumer watchdogs and insurance experts. To find the lowest possible rates from an insurer that’ll be there when you need it, learn what type of coverage you must carry, research the reputations of insurance companies and take advantage of every possible discount for which you’re eligible, experts say. They also recommend checking out pay-as-you-drive policies that peg premiums to how many miles you put on your car each year. Finally, if you’re eligible, look into low-cost auto insurance programs that such states as California, Hawaii and New Jersey offer to people with very low incomes.
When it comes to buying affordable car insurance, you’re your own best advocate. At the same time, it’s not always easy to take on that role, says J. Robert Hunter, a former Texas insurance commissioner and insurance director at the nonprofit Consumer Federation of America in Washington. Don’t settle for the first insurance company
When it comes to auto insurance, you want to be adequately covered if you get in an accident, but you don’t want to pay more than you have to. Unfortunately many people are doing just that, simply because they don’t want to spend time shopping for car insurance. It’s not inherently enjoyable, after all, despite how it looks in commercials featuring disgruntled cavemen and joke-cracking spokespeople.
But by doing some comparison shopping, you could save hundreds of dollars a year. When one of our editors used a rate-comparison service, he got basic coverage quotes for his two old cars that ranged from $1,006 to $1,807 — a difference of $801 a year. If you’re paying thousands to your current insurance company because you have a couple tickets, an accident or an out-of-date and unfavorable credit rating, shopping your policy against others might be well worth the effort. Look at it this way: You can convert the money you save into buying something you’ve wanted or needed for a long time.
Step 1: Decide How Much Coverage You Need
To find the right auto insurance, start by figuring out the amount of coverage you need. This varies
The next time you’re on the freeway, think about this: Approximately one of every seven U.S. drivers on the road has no automobile insurance. That’s the most recent estimate from the Insurance Research Council, which noted that the five states with the highest percentage of uninsured drivers were Florida, Mississippi, New Mexico, Oklahoma and Tennessee. With that many people driving without coverage, it’s more important than ever for you to be insured. But how much car insurance do you need to have?
If you’re like many people, you might be in an economic pinch these days. Your inclination might be to get the minimum insurance coverage required by law in your state. The trouble with minimum coverage is that it might not fully protect you — or your assets — if you’re at fault in an accident. It’s a better idea to carry more than the minimum coverage unless you are driving an older car with little value and have no assets to protect.
Every state in the nation except for New Hampshire requires you to have liability insurance. That mandatory coverage varies according to state.
The chart below shows minimum liability limits (in thousands
If you’re finally ready to think about pay-as-you-drive car insurance, it’s ready for you.
Over the past couple years, a majority of the country’s largest auto insurance carriers and many smaller ones have begun offering pay-as-you-drive and other forms of use-based insurance or have pilot projects in the works. During the same time, every state insurance regulator in the country has approved at least a handful of the policies, and some many more.
Auto insurers set rates for use-based insurance (UBI) by monitoring your mileage, driving speed or related activities through electronic devices or smartphones and apps connected to your car’s diagnostics port. That’s different from traditional policies, whose rates are based on actuarial studies of historical data on demographics and risk factors such as driving records.
First offered more than a decade ago, UBI policies today cover as many as 3 million U.S. cars and trucks, according to insurance industry analysts. Progressive, which sells more UBI policies than any other auto insurer, says its Snapshot plan accounts for 30 percent of customers who buy its policies directly. From 2012-’13, Snapshot premium revenue grew 50 percent, to $1.5 billion, according to the company.
Teens ages 16-19 are three times more likely than drivers older than 20 to be involved in a fatal crash (or any crash, for that matter) according to the Insurance Institute for Highway Safety. It’s not too surprising, then, that teen drivers tend to have high insurance premiums. For parents, this can mean a big jump in insurance premiums once you add your teen driver to your policy. However, there are ways to reduce your costs right out of the gate, even for very inexperienced drivers. Here are some ways to keep policy costs at a minimum.
Choose the Right Car
It’s simply a matter of economics. There are some cars that cost more to repair and replace than others. There are also some cars that are more likely to be stolen and others that protect passengers better in a crash. Combined, these three characteristics have a lot to do with how much you’ll pay for the collision and theft portions of your policy, says David Goldstein, the author of Insure Your Car for Less: A Practical Guide to Saving Money on Automobile Insurance.
There are several ways to choose the least expensive car to
In recent years, nine of 10 top U.S. auto insurance companies have started selling policies based on how motorists drive. At least a handful of pay-as-you-drive policies are offered in every state, covering as many as 3 million U.S. vehicles, according to industry estimates. Switching to use-based insurance (UBI) could help you save a little or a lot over what car owners spend on premiums associated with a more traditional policy.
If you’re considering changing to a UBI plan, it pays to understand what you’re getting.
Carriers set UBI rates by collecting mileage or other information directly from your car, but similarities among policies end there. Some insurers use a small, meterlike electronic device that plugs into a car’s onboard diagnostics port to store or transmit information. Newer versions gather driving data through an app and a smartphone connected to a car’s infotainment or telematics system.
Drivers may happily trade access to their driving habits for lower insurance rates. But privacy advocates worry that insurance companies aren’t always 100 percent transparent about what data they collect, what they do with it and with whom they share it.
“Privacy is a real question,” says J.
The moment you buy a brand new car, you are on cloud nine. To buy a car is a great achievement indeed. You allot a budget; make a list of your requirements and shortlist cars in accordance with that. You go for the test drive(s) and finalize the car that met your expectations.
After purchasing a car, some people follow this tradition. They go the preferred place of worship to seek the blessings of the almighty. The priest performs a ritual. In Hinduism, they place a lemon under each tyre and run the car over it, as it is considered as a good omen.
In India, it is mandatory to buy an automobile insurance too. So, you have to have car insurance. Before you buy motor insurance, here are the things that you should keep in your mind.
Types of Motor Insurance
There are two types of automobile insurance plans offered by insurers.
- Liability Only – The first one is a liability-only policy. The government has made it compulsory for all the vehicles to have this policy at the very least. This policy provides the coverage against legal liabilities that may arise due
The future is unpredictable. It is better to hope for the best and prepare yourself for the worst. For sure, we can’t change the future. We can make efforts from our end to ensure that nothing goes wrong.
Road accidents happen across the globe. You read about it in the newspaper, you watch it on the news, and you even listen to it on the radio. Whenever you come across road accident-related news, you feel bad for the person(s) who became victimized because of their misfortune.
When Mr. Kumar bought a brand new Ford, he was ecstatic for obvious reasons. He bought comprehensive car insurance to safeguard his car. After 3 months, his car met with an accident. He was safe but the car was severely damaged. He was a little disheartened to see his car in that condition but he was grateful to the almighty that nothing happened to him. Also, he was comforted that he has a comprehensive insurance cover for his car so he won’t have to bear the repair cost from his own pocket.
After a discussion with his office friends regarding the claim, he was in a state of confusion.
Before zeroing down an insurance policy for their car(s), most people miss the crucial step of researching, and they jumping to the premium directly. On the basis of the premium, they finalize their selection of a car insurance policy.
Here is a step by step guide for you; it will be helpful for you in order to make an informed and wise choice. Consider the points mentioned below in order to select the best insurance policy for your car.
1. Compare the key feature provided by the insurance coverage
Draw a comparison of your shortlisted motor insurance policies to analyze if they all are providing the same kind of insurance cover. Your insurance plan should include all the key inclusions in terms of a car (such as own damage cover) and provide you with coverage against a personal accident as well as for the injuries succumbed by a thirdparty.
2. Review Add-on Riders as the Part of the Car Insurance Policy
It is always recommended to pay adequate attention to all the add-on riders so that you can pick out the ones that you want as the additional benefits. For your convenience, we
Plug-in devices that monitor aspects of an auto insurance customer’s driving are nothing new. And it’s nearly impossible to miss the commercials touting the savings that good drivers might enjoy if they try out their carrier’s usage-based programs.
But what is still only whispered about are the potential downsides: surcharges for bad driving. Most auto insurers go out of their way to insist that their driver-monitoring programs exist only to reward safe drivers and that the worst outcome for trying one is that drivers don’t get the advertised savings. And even then, insurers say, drivers will gain valuable feedback and be able to make positive changes in their driving.
But in spring 2015, Progressive announced that it would begin charging some members of its Snapshot program a surcharge for aggressive driving behaviors.
Dave Pratt, Progressive’s usage-based insurance business leader, said Snapshot 3.0 currently exists in Missouri, Indiana, Iowa, Nebraska, Texas, Utah, Wisconsin, Illinois, Ohio and Oregon.
“Because insurance is regulated at the state level, the full rollout will take time and vary based on the Department of Insurance in each state,” Pratt said.
As of now, Progressive is the only major insurance carrier