There are some drivers who know the value of car insurance and also that it is required by law, but due to financial hardship they cannot afford to purchase even the minimum coverage. Luckily for Californians who fall into this category, there is a program called the Low Cost Auto Insurance Program, which makes coverage available to safe drivers who meet the standard requirements. These drivers have access to an acceptable insurance policy for a price that can fit their budget. It’s a program that is monitored closely, and there are heavy penalties for trying to commit fraud by providing false information in order to use the program.
Car insurance pricing is determined on a number of factors, including the driver’s record, place of residence, and the vehicle driven. It’s not hard to understand that people who drive recklessly are charged higher premiums than a person with a clean record, but it’s almost considered unfair that people who live in dangerous areas are charged higher premiums even when their record is spotless. Some drivers don’t have a real choice concerning where they live and may only be able to afford living in a high crime area. Law makers have tried to help these citizens by creating the Low Cost Auto Insurance Program that safe drivers can take advantage of and use it to purchase insurance.
Safe and responsible drivers who cannot afford the current price of car insurance, despite any discounts offered, should not be left to fend for themselves and drive without coverage. If they are in fact a safe driver, the chances of their involvement in an accident are slim, but there is a higher chance that their vehicle may be vandalized or stolen in their “high-crime” neighborhood, which is something the insurer would end up paying for. Law makers have imposed this program in California to help all drivers have proper coverage, which forces companies to offer a certain number of drivers this program.
Who Can Participate?
According to the California’s Department of Insurance Website, all applicants must be at least 19 years old, and any college students must not be claimed as a dependent by someone else. They must have had a driver’s license for the past three years continuously. The driver must be classified as a “good driver,” which means they cannot have more than one point on their record and have only been at-fault in one accident, both within the last three years. Also, they cannot have any felony or misdemeanor conviction on their record either.
The driver’s income also plays a role in determining whether or not someone is qualified to participate in the low cost auto insurance program. The number of people in the household, related by blood, marriage or adoption, compared to the amount of income made during the year is crucial to being permitted into the program. For instance, households of 4 people can make no more than $55,125 a year, and households with 8 people cannot make more than $92,525 a year to qualify. The Department of Insurance site says, “Eligibility is based on the household’s gross annual income which must be 250% or less of the federal poverty level.”
What Is The Coverage?
The limits on this program’s policy is $10,000 for bodily injury liability per person with $20,000 per accident, and $3,000 for property damage liability, also abbreviated as 10/20/3. The normal minimum amount of insurance for a California driver is 15/30/5. There are additional coverage options that can be added to the policy such as medical payments with a maximum of $1,000, and uninsured motorist bodily injury per person of $10,000 and per accident of $20,000. These options do not cover any physical damage to the driver’s own vehicle, but there is an option to purchase comprehensive and collision coverage if so desired, and if the driver can afford it.
What Companies Offer It?
As mentioned earlier, providers are mandated by the state to offer this protection. The driver cannot choose which company will provide this insurance. An application is filled out by the driver, who will then be notified if he/she qualifies. Upon qualification, the driver then enters in their zip code to get a list of “certified producers” who must then be contacted to apply for a policy. Thankfully, no fees will be added on to the price of the policy, such as booking fees or broker fees.
Are There Other Limitations?
The driver must only have the vehicles covered by the Low Cost program, and no other policies. If the driver has another vehicle in the household that is insured by another company on a non-Low Cost policy, the driver will no longer be qualified for this program. Also, the vehicle that is insured through this policy can only be valued at $20,000 or less. A more expensive car is not allowed on this program.
Not Eligible?
For those drivers who discover they are not eligible for this program, rest assured you can still find better rates by using our comparison method and searching for other discounts. When you give us your zip code and answer a short list of questions, we, in return, can provide to you a list of local insurers who are willing to provide insurance to you and their estimated prices to do so. These prices are based on the answers to the questions you gave. If these quotes are still not low enough, check out what discounts you are eligible to receive. Students can get cheaper rates if they get good grades, and senior citizens, usually older than 65, can also get discounts. Defensive driving courses can be taken to learn better driving skills while also earning a discount. Even if your insurance rate isn’t as low as you’d like it to be, you can get it lower with each policy renewal as you work on cleaning up your driving record and looking for discounts.
Tuesday, June 23, 2009
Getting your Low Cost Auto Insurance
There are some drivers who know the value of car insurance and also that it is required by law, but due to financial hardship they cannot afford to purchase even the minimum coverage. Luckily for Californians who fall into this category, there is a program called the Low Cost Auto Insurance Program, which makes coverage available to safe drivers who meet the standard requirements. These drivers have access to an acceptable insurance policy for a price that can fit their budget. It’s a program that is monitored closely, and there are heavy penalties for trying to commit fraud by providing false information in order to use the program.
Car insurance pricing is determined on a number of factors, including the driver’s record, place of residence, and the vehicle driven. It’s not hard to understand that people who drive recklessly are charged higher premiums than a person with a clean record, but it’s almost considered unfair that people who live in dangerous areas are charged higher premiums even when their record is spotless. Some drivers don’t have a real choice concerning where they live and may only be able to afford living in a high crime area. Law makers have tried to help these citizens by creating the Low Cost Auto Insurance Program that safe drivers can take advantage of and use it to purchase insurance.
Safe and responsible drivers who cannot afford the current price of car insurance, despite any discounts offered, should not be left to fend for themselves and drive without coverage. If they are in fact a safe driver, the chances of their involvement in an accident are slim, but there is a higher chance that their vehicle may be vandalized or stolen in their “high-crime” neighborhood, which is something the insurer would end up paying for. Law makers have imposed this program in California to help all drivers have proper coverage, which forces companies to offer a certain number of drivers this program.
Who Can Participate?
According to the California’s Department of Insurance Website, all applicants must be at least 19 years old, and any college students must not be claimed as a dependent by someone else. They must have had a driver’s license for the past three years continuously. The driver must be classified as a “good driver,” which means they cannot have more than one point on their record and have only been at-fault in one accident, both within the last three years. Also, they cannot have any felony or misdemeanor conviction on their record either.
The driver’s income also plays a role in determining whether or not someone is qualified to participate in the low cost auto insurance program. The number of people in the household, related by blood, marriage or adoption, compared to the amount of income made during the year is crucial to being permitted into the program. For instance, households of 4 people can make no more than $55,125 a year, and households with 8 people cannot make more than $92,525 a year to qualify. The Department of Insurance site says, “Eligibility is based on the household’s gross annual income which must be 250% or less of the federal poverty level.”
What Is The Coverage?
The limits on this program’s policy is $10,000 for bodily injury liability per person with $20,000 per accident, and $3,000 for property damage liability, also abbreviated as 10/20/3. The normal minimum amount of insurance for a California driver is 15/30/5. There are additional coverage options that can be added to the policy such as medical payments with a maximum of $1,000, and uninsured motorist bodily injury per person of $10,000 and per accident of $20,000. These options do not cover any physical damage to the driver’s own vehicle, but there is an option to purchase comprehensive and collision coverage if so desired, and if the driver can afford it.
What Companies Offer It?
As mentioned earlier, providers are mandated by the state to offer this protection. The driver cannot choose which company will provide this insurance. An application is filled out by the driver, who will then be notified if he/she qualifies. Upon qualification, the driver then enters in their zip code to get a list of “certified producers” who must then be contacted to apply for a policy. Thankfully, no fees will be added on to the price of the policy, such as booking fees or broker fees.
Are There Other Limitations?
The driver must only have the vehicles covered by the Low Cost program, and no other policies. If the driver has another vehicle in the household that is insured by another company on a non-Low Cost policy, the driver will no longer be qualified for this program. Also, the vehicle that is insured through this policy can only be valued at $20,000 or less. A more expensive car is not allowed on this program.
Not Eligible?
For those drivers who discover they are not eligible for this program, rest assured you can still find better rates by using our comparison method and searching for other discounts. When you give us your zip code and answer a short list of questions, we, in return, can provide to you a list of local insurers who are willing to provide insurance to you and their estimated prices to do so. These prices are based on the answers to the questions you gave. If these quotes are still not low enough, check out what discounts you are eligible to receive. Students can get cheaper rates if they get good grades, and senior citizens, usually older than 65, can also get discounts. Defensive driving courses can be taken to learn better driving skills while also earning a discount. Even if your insurance rate isn’t as low as you’d like it to be, you can get it lower with each policy renewal as you work on cleaning up your driving record and looking for discounts.
Car insurance pricing is determined on a number of factors, including the driver’s record, place of residence, and the vehicle driven. It’s not hard to understand that people who drive recklessly are charged higher premiums than a person with a clean record, but it’s almost considered unfair that people who live in dangerous areas are charged higher premiums even when their record is spotless. Some drivers don’t have a real choice concerning where they live and may only be able to afford living in a high crime area. Law makers have tried to help these citizens by creating the Low Cost Auto Insurance Program that safe drivers can take advantage of and use it to purchase insurance.
Safe and responsible drivers who cannot afford the current price of car insurance, despite any discounts offered, should not be left to fend for themselves and drive without coverage. If they are in fact a safe driver, the chances of their involvement in an accident are slim, but there is a higher chance that their vehicle may be vandalized or stolen in their “high-crime” neighborhood, which is something the insurer would end up paying for. Law makers have imposed this program in California to help all drivers have proper coverage, which forces companies to offer a certain number of drivers this program.
Who Can Participate?
According to the California’s Department of Insurance Website, all applicants must be at least 19 years old, and any college students must not be claimed as a dependent by someone else. They must have had a driver’s license for the past three years continuously. The driver must be classified as a “good driver,” which means they cannot have more than one point on their record and have only been at-fault in one accident, both within the last three years. Also, they cannot have any felony or misdemeanor conviction on their record either.
The driver’s income also plays a role in determining whether or not someone is qualified to participate in the low cost auto insurance program. The number of people in the household, related by blood, marriage or adoption, compared to the amount of income made during the year is crucial to being permitted into the program. For instance, households of 4 people can make no more than $55,125 a year, and households with 8 people cannot make more than $92,525 a year to qualify. The Department of Insurance site says, “Eligibility is based on the household’s gross annual income which must be 250% or less of the federal poverty level.”
What Is The Coverage?
The limits on this program’s policy is $10,000 for bodily injury liability per person with $20,000 per accident, and $3,000 for property damage liability, also abbreviated as 10/20/3. The normal minimum amount of insurance for a California driver is 15/30/5. There are additional coverage options that can be added to the policy such as medical payments with a maximum of $1,000, and uninsured motorist bodily injury per person of $10,000 and per accident of $20,000. These options do not cover any physical damage to the driver’s own vehicle, but there is an option to purchase comprehensive and collision coverage if so desired, and if the driver can afford it.
What Companies Offer It?
As mentioned earlier, providers are mandated by the state to offer this protection. The driver cannot choose which company will provide this insurance. An application is filled out by the driver, who will then be notified if he/she qualifies. Upon qualification, the driver then enters in their zip code to get a list of “certified producers” who must then be contacted to apply for a policy. Thankfully, no fees will be added on to the price of the policy, such as booking fees or broker fees.
Are There Other Limitations?
The driver must only have the vehicles covered by the Low Cost program, and no other policies. If the driver has another vehicle in the household that is insured by another company on a non-Low Cost policy, the driver will no longer be qualified for this program. Also, the vehicle that is insured through this policy can only be valued at $20,000 or less. A more expensive car is not allowed on this program.
Not Eligible?
For those drivers who discover they are not eligible for this program, rest assured you can still find better rates by using our comparison method and searching for other discounts. When you give us your zip code and answer a short list of questions, we, in return, can provide to you a list of local insurers who are willing to provide insurance to you and their estimated prices to do so. These prices are based on the answers to the questions you gave. If these quotes are still not low enough, check out what discounts you are eligible to receive. Students can get cheaper rates if they get good grades, and senior citizens, usually older than 65, can also get discounts. Defensive driving courses can be taken to learn better driving skills while also earning a discount. Even if your insurance rate isn’t as low as you’d like it to be, you can get it lower with each policy renewal as you work on cleaning up your driving record and looking for discounts.
Auto Insurance: 8 Savings Secrets
Everybody has a reason. Maybe they're telling you what you want to hear. Could be they'll get a bonus if they sell you product "A". Heck, they may simply have forgotten to mention it. Bottom line, there's something your car insurance company or agent isn't telling you that might save you money. And it could be one of these 8 things:
1. Older car? Drop collision.
Have a car that's 7 or 8 years old? Is it worth less than $2,500? That's the time to start thinking about taking the risk and dropping comp and collision premiums from your policy. The reason why? Chances are your deductible is closing in on the value of your car and any major collision will send you to the dealership, anyway.
2. Buy home and auto with different companies
With everything being bundled today – from cell phones to Internet and cable TV – you'd think that having your home and auto insurance bundled at the same company would save money. But, do your research, and you may discover that having separate policies can be well worth it. Good rates abound for both types of insurance – but it's rare to find the lowest rate for both from the same company. So, unless you buy an umbrella policy, there's no overriding reason to keep your policies together if you can save.
3. Minimum liability? Not enough.
You may tell an agent that you can only afford the minimum car insurance required by law. And some agents may be more than happy to provide you with that policy – and then get you out the door so the next paying customer can step in. What he may neglect to tell you is that in some states – particularly Ohio, Pennsylvania, South Carolina, Nevada, New Jersey and Oklahoma – state-mandated limits are ridiculously low. And there's a good chance those minimums won't even come close to covering the costs of a serious accident. Which means you could be paying WAY more than you bargained for if you're at fault.
4. Shop around for lower rates
A State Farm agent only quotes State Farm. Same for Allstate. So what are the chances their agent will tell you to shop around for the best deal? Even independent agents only represent a few auto insurers, so how do you know what's fair? Shopping for and comparing services online from companies like Insurance.com allows you to fine-tune the deductibles and coverage you want and then compare auto insurance rates side-by-side. All in one place. All at one time.
5. Go green; keep green
Even auto insurance companies are green – offering discounts that will trim a bit off your premium. Look for things like a discount for driving a hybrid, for opting for paperless statements or electronic payment plans. Even signing your policy with an e-signature can save you some pennies. Basically, the less the company has to spend on paper, the more they'll pass those savings on to you.
6. Consider paying that claim yourself
Naturally, you don't really want to hear that, but if you've backed into the garage, think twice about asking your company to repair it. Why? Besides the possibility that your rates will go up at the time of renewal, the next time you shop for new insurance, many insurance companies will use an insurance history report to see if you've made any car insurance claims, and how much money was paid. Although accidents can only affect your rates for three years, many companies will look back five or more years when deciding if they want to offer you insurance. Having more claims will affect that result.
7. Your car makes a difference. Don't buy that turbo convertible.
All vehicles are not created equal. Small or large, old or new, the type of car you drive will affect the size of the premium you pay, often based on algorithms insurance companies use to determine how expensive it might be to pay a claim. That'll affect how much your premium will be. Even more reason to shop around for the best deal.
8. Teenager turned 16? Don't add them to your policy – yet.
If your teenager has turned 16 but isn't a licensed driver, you're not required to add them to your insurance policy. You're only required to insure them once they become licensed to drive. That also means in most instances you don't have to insure them if they just have a learning permit. But check. Some policies may require it.
1. Older car? Drop collision.
Have a car that's 7 or 8 years old? Is it worth less than $2,500? That's the time to start thinking about taking the risk and dropping comp and collision premiums from your policy. The reason why? Chances are your deductible is closing in on the value of your car and any major collision will send you to the dealership, anyway.
2. Buy home and auto with different companies
With everything being bundled today – from cell phones to Internet and cable TV – you'd think that having your home and auto insurance bundled at the same company would save money. But, do your research, and you may discover that having separate policies can be well worth it. Good rates abound for both types of insurance – but it's rare to find the lowest rate for both from the same company. So, unless you buy an umbrella policy, there's no overriding reason to keep your policies together if you can save.
3. Minimum liability? Not enough.
You may tell an agent that you can only afford the minimum car insurance required by law. And some agents may be more than happy to provide you with that policy – and then get you out the door so the next paying customer can step in. What he may neglect to tell you is that in some states – particularly Ohio, Pennsylvania, South Carolina, Nevada, New Jersey and Oklahoma – state-mandated limits are ridiculously low. And there's a good chance those minimums won't even come close to covering the costs of a serious accident. Which means you could be paying WAY more than you bargained for if you're at fault.
4. Shop around for lower rates
A State Farm agent only quotes State Farm. Same for Allstate. So what are the chances their agent will tell you to shop around for the best deal? Even independent agents only represent a few auto insurers, so how do you know what's fair? Shopping for and comparing services online from companies like Insurance.com allows you to fine-tune the deductibles and coverage you want and then compare auto insurance rates side-by-side. All in one place. All at one time.
5. Go green; keep green
Even auto insurance companies are green – offering discounts that will trim a bit off your premium. Look for things like a discount for driving a hybrid, for opting for paperless statements or electronic payment plans. Even signing your policy with an e-signature can save you some pennies. Basically, the less the company has to spend on paper, the more they'll pass those savings on to you.
6. Consider paying that claim yourself
Naturally, you don't really want to hear that, but if you've backed into the garage, think twice about asking your company to repair it. Why? Besides the possibility that your rates will go up at the time of renewal, the next time you shop for new insurance, many insurance companies will use an insurance history report to see if you've made any car insurance claims, and how much money was paid. Although accidents can only affect your rates for three years, many companies will look back five or more years when deciding if they want to offer you insurance. Having more claims will affect that result.
7. Your car makes a difference. Don't buy that turbo convertible.
All vehicles are not created equal. Small or large, old or new, the type of car you drive will affect the size of the premium you pay, often based on algorithms insurance companies use to determine how expensive it might be to pay a claim. That'll affect how much your premium will be. Even more reason to shop around for the best deal.
8. Teenager turned 16? Don't add them to your policy – yet.
If your teenager has turned 16 but isn't a licensed driver, you're not required to add them to your insurance policy. You're only required to insure them once they become licensed to drive. That also means in most instances you don't have to insure them if they just have a learning permit. But check. Some policies may require it.
Motorcycle Insurance And Riding Safety Tips
Progressive Motorcycle Insurance Company gives you some good tips about motorcycles and road safety.
Can't Wait To Hit The Road On Your New Bike? Not So Fast!
Even Veteran Bikers Could Use Some Basic Training When They Switch Bikes
(NAPSI)-Whoever coined the phrase "it's just like riding a bike" probably never switched motorcycles. That's because even experienced riders can be pretty wobbly when they hop on an unfamiliar bike, according to data from the country's largest motorcycle insurer, Progressive.
The study of almost 2 million motorcycle policies over a five-year period found that riders who switch bikes are nearly 70 percent more likely to crash than riders who keep the same bike.
"Most people already know that riding can be especially dangerous for new bikers," said Rick Stern, a Progressive motorcycle product manager who is also a rider. "But our data shows that the less familiar you are with your bike, the more likely you are to be involved in a collision, regardless of your experience."
The study also found that cruiser riders who switch to sport bikes are three-and-a-half times more likely to crash. That's more than double the risk they'd have than if they had just switched to another cruiser.
Sport bikers, on the other hand, can reduce their risk by more than a third just by switching to a cruiser.
"We want experienced riders to know their risks so they can take extra precautions when they replace their bikes," said Stern. "It's a good idea for riders to take their new bike out for a couple of test drives in a parking lot before hitting the open road."
Even people who have been riding for years can benefit from practicing the basics on their new bike, Stern said, including low-speed riding, turning, shifting and swerving, and higher-speed panic stopping.
No matter what your level of experience--both on your bike and on the road--make sure you're covered with a motorcycle policy that fits your needs. Progressive offers coverages such as Trip Interruption, which can cover your lodging, food and transportation if you get stranded on the road, and Total Loss Replacement, which can replace your bike with a brand-new one if it's stolen or totaled.
Can't Wait To Hit The Road On Your New Bike? Not So Fast!
Even Veteran Bikers Could Use Some Basic Training When They Switch Bikes
(NAPSI)-Whoever coined the phrase "it's just like riding a bike" probably never switched motorcycles. That's because even experienced riders can be pretty wobbly when they hop on an unfamiliar bike, according to data from the country's largest motorcycle insurer, Progressive.
The study of almost 2 million motorcycle policies over a five-year period found that riders who switch bikes are nearly 70 percent more likely to crash than riders who keep the same bike.
"Most people already know that riding can be especially dangerous for new bikers," said Rick Stern, a Progressive motorcycle product manager who is also a rider. "But our data shows that the less familiar you are with your bike, the more likely you are to be involved in a collision, regardless of your experience."
The study also found that cruiser riders who switch to sport bikes are three-and-a-half times more likely to crash. That's more than double the risk they'd have than if they had just switched to another cruiser.
Sport bikers, on the other hand, can reduce their risk by more than a third just by switching to a cruiser.
"We want experienced riders to know their risks so they can take extra precautions when they replace their bikes," said Stern. "It's a good idea for riders to take their new bike out for a couple of test drives in a parking lot before hitting the open road."
Even people who have been riding for years can benefit from practicing the basics on their new bike, Stern said, including low-speed riding, turning, shifting and swerving, and higher-speed panic stopping.
No matter what your level of experience--both on your bike and on the road--make sure you're covered with a motorcycle policy that fits your needs. Progressive offers coverages such as Trip Interruption, which can cover your lodging, food and transportation if you get stranded on the road, and Total Loss Replacement, which can replace your bike with a brand-new one if it's stolen or totaled.
Auto Insurance Shopping
Understand How Auto Insurance Rates Are Set Auto Insurance Shopping:
(NC)—If you're shopping around for auto insurance it's important to know how insurance companies set their rates. Many factors are at play, so here are some useful tips from the Financial Services Commission of Ontario (FSCO), the regulator of the auto insurance industry in Ontario, to keep your rates as low as possible.
The auto insurance rate you are charged will depend upon:
• The type of vehicleyou drive. Auto insurance companies evaluate vehicles based on their makes and models, according to their claims experience. Vehicles with lower costs for repairs, lower rates of injury, and lower incidences of accident and theft, will receive lower rates.
• Your driving record, which includes your years of driving experience, past at-fault accidents, completed training courses, and convictions such as speeding or impaired driving.
• Driving routine and frequency. The more time you spend on the road, the higher the chances of becoming involved in an auto accident.
• Where you live. If you live in a busy urban area, there is greater risk for accidents and theft, thus higher rates are charged.
• Your age. Costs are generally lower for drivers 25 years of age and older.
• The amount of coverage you purchase. Your insurance rates will be higher if you purchase additional protection beyond what is mandatory, such as the optional collision coverage, which protects you for damage to your vehicle, regardless of who caused the accident.
• The deductible, which is the portion of a loss that you are required to pay. Your deductible can vary depending on the type of coverage you purchase and the percentage of fault you are assigned in the event of an auto accident. There are deductibles for direct compensation-property damage, collision or upset, comprehensive, all perils, and specified perils coverage. If you opt for a higher deductible, your rates will likely be lower.
• The insurance company you choose. It's important to shop around because financial factors unique to each insurance company will influence your rates. Insurance works according to a "pooling" concept. Your rates are based on the claims experience of the entire group. Some insurance companies have claims that are much higher than others. This results in some insurance companies setting higher rates than others for the same type of insurance coverage.
Factors that cannot affect insurance rates
Under Ontario law, insurance companies cannot use certain criteria to set your auto insurance rates, such as: credit history or rating, past bankruptcy, income and employment status, debts, whether you rent or own a home and not-at-fault accidents.
More information on auto insurance is available online at www.fsco.gov.on.ca where you can download the brochure Understanding Automobile Insurance.
(NC)—If you're shopping around for auto insurance it's important to know how insurance companies set their rates. Many factors are at play, so here are some useful tips from the Financial Services Commission of Ontario (FSCO), the regulator of the auto insurance industry in Ontario, to keep your rates as low as possible.
The auto insurance rate you are charged will depend upon:
• The type of vehicleyou drive. Auto insurance companies evaluate vehicles based on their makes and models, according to their claims experience. Vehicles with lower costs for repairs, lower rates of injury, and lower incidences of accident and theft, will receive lower rates.
• Your driving record, which includes your years of driving experience, past at-fault accidents, completed training courses, and convictions such as speeding or impaired driving.
• Driving routine and frequency. The more time you spend on the road, the higher the chances of becoming involved in an auto accident.
• Where you live. If you live in a busy urban area, there is greater risk for accidents and theft, thus higher rates are charged.
• Your age. Costs are generally lower for drivers 25 years of age and older.
• The amount of coverage you purchase. Your insurance rates will be higher if you purchase additional protection beyond what is mandatory, such as the optional collision coverage, which protects you for damage to your vehicle, regardless of who caused the accident.
• The deductible, which is the portion of a loss that you are required to pay. Your deductible can vary depending on the type of coverage you purchase and the percentage of fault you are assigned in the event of an auto accident. There are deductibles for direct compensation-property damage, collision or upset, comprehensive, all perils, and specified perils coverage. If you opt for a higher deductible, your rates will likely be lower.
• The insurance company you choose. It's important to shop around because financial factors unique to each insurance company will influence your rates. Insurance works according to a "pooling" concept. Your rates are based on the claims experience of the entire group. Some insurance companies have claims that are much higher than others. This results in some insurance companies setting higher rates than others for the same type of insurance coverage.
Factors that cannot affect insurance rates
Under Ontario law, insurance companies cannot use certain criteria to set your auto insurance rates, such as: credit history or rating, past bankruptcy, income and employment status, debts, whether you rent or own a home and not-at-fault accidents.
More information on auto insurance is available online at www.fsco.gov.on.ca where you can download the brochure Understanding Automobile Insurance.
Wednesday, June 3, 2009
Insurance Rates Hit Lowest Point in Year
According to Insurance.com’s RateWatch for car insurance, average annual auto insurance rates held steady in May 2009 at $1,871 – the lowest they have been in more than a year. This is good news for drivers who had been paying as much as $1,950 in September 2008, and it’s great news for drivers looking to buy a car.
“While new car sales are still down compared with last year, car shopping website Edmunds.com predicts that June new car sales will be up almost 9% over May 2009,” said Sam Belden, Vice President at Insurance.com. “Whether you are shopping for a new or used car, spending 30 minutes comparing auto insurance can save thousands of dollars in the long run.”
Insurance.com offers these tips for drivers looking to purchase new or used cars:
Consider car choice
All cars are not created equal. Small or large, old or new, the type of car you drive affects the premium you pay, often based on algorithms insurance companies use to determine how expensive it might be to pay a claim. If you buy a hybrid, some insurance companies offer discounts of up to 10% off your premium.
Look for safety features
Safety features can also cut your insurance costs. Many carriers offer “Safe Car” discounts of 5% or more for air bags, antilock brakes, and antitheft devices.
Compare rates online before buying a car
A State Farm® agent only quotes State Farm. Same for Allstate®. So what are the chances their agents will tell you to shop around for the best deal? Shopping online with companies like Insurance.com allows you to fine-tune the deductibles and coverage you want and then compare auto insurance side-by-side.
Older car? Drop collision.
Have a car that's 7 or 8 years old or worth less than $2,500? It’s time to start thinking about taking the risk and dropping comp and collision from your policy. Chances are your deductible is closing in on the value of your car and a major collision will send you to the dealership, anyway.
Minimum liability? Not enough.
You may think you can only afford the minimum car insurance required by law. But, in some states – Ohio, Pennsylvania, South Carolina, Nevada, and New Jersey– the state-mandated limits are ridiculously low. There's a good chance those minimums won’t come close to covering the costs of a serious accident. Which means you could be paying WAY more than you bargained for if you're at fault.
The RateWatch report data is based on the lowest car insurance rates quoted to consumers in each state, from more than a dozen of the nation's leading auto insurers. The complete report is available at www.insurance.com/ratewatch.
“While new car sales are still down compared with last year, car shopping website Edmunds.com predicts that June new car sales will be up almost 9% over May 2009,” said Sam Belden, Vice President at Insurance.com. “Whether you are shopping for a new or used car, spending 30 minutes comparing auto insurance can save thousands of dollars in the long run.”
Insurance.com offers these tips for drivers looking to purchase new or used cars:
Consider car choice
All cars are not created equal. Small or large, old or new, the type of car you drive affects the premium you pay, often based on algorithms insurance companies use to determine how expensive it might be to pay a claim. If you buy a hybrid, some insurance companies offer discounts of up to 10% off your premium.
Look for safety features
Safety features can also cut your insurance costs. Many carriers offer “Safe Car” discounts of 5% or more for air bags, antilock brakes, and antitheft devices.
Compare rates online before buying a car
A State Farm® agent only quotes State Farm. Same for Allstate®. So what are the chances their agents will tell you to shop around for the best deal? Shopping online with companies like Insurance.com allows you to fine-tune the deductibles and coverage you want and then compare auto insurance side-by-side.
Older car? Drop collision.
Have a car that's 7 or 8 years old or worth less than $2,500? It’s time to start thinking about taking the risk and dropping comp and collision from your policy. Chances are your deductible is closing in on the value of your car and a major collision will send you to the dealership, anyway.
Minimum liability? Not enough.
You may think you can only afford the minimum car insurance required by law. But, in some states – Ohio, Pennsylvania, South Carolina, Nevada, and New Jersey– the state-mandated limits are ridiculously low. There's a good chance those minimums won’t come close to covering the costs of a serious accident. Which means you could be paying WAY more than you bargained for if you're at fault.
The RateWatch report data is based on the lowest car insurance rates quoted to consumers in each state, from more than a dozen of the nation's leading auto insurers. The complete report is available at www.insurance.com/ratewatch.
Information on Low Cost Auto Insurance
Cheap car insurance seems to be what everyone looks for nowadays. Saving money is such a top priority to so many consumers, and you could very well be in that group of savers too. How is it possible to find low cost auto insurance? As you may find, low cost auto insurance isn’t something that usually pops out at you, waiting for you to come and grab it up. While some companies claim to have the lowest rates, some drivers are disappointed that those low rates only apply to drivers who meet certain criteria which cannot be met by others and leads to hopeless frustration.
If you can push aside the frustration for a bit longer, we can provide some insight on how to find that low cost insurance. And, if you don’t qualify for cheap auto insurance for one reason or another, we can show you a few discounts you might be able to apply towards your policy cost.
Comparing Companies Will Help You Find Low Cost Auto Insurance
Comparison shopping, no matter what the product may be, always helps consumers find their product for the cheapest available price. Wouldn’t you shop at the store who offers the lowest price? Most consumers would say yes, of course. The same applies to auto insurance. Although it’s not a physical product, it is a service that protects you and your vehicle from damage or replacement expenses.
Most auto insurance companies will offer the same types of coverage options to purchase for your auto insurance policy, and most of them come with the same terms and conditions. By doing a thorough comparison, you can find the differences, if there are any, and then look at the prices of those same options. There’s no doubt if you find the same coverage option for a cheaper price, you’re going to pick the company who offers the cheapest price.
The most convenient way for you to compare auto insurance companies is by using our site. On our Homepage, simply enter in your zip code and complete the list of questions. We will send you a list of auto insurance companies and their price quotes for a policy, which you can take and decide which one to purchase. There’s no obligation to purchase, nor are there any fees to use our service, so there’s really no harm in using our comparison service.
A Clean Record Will Get You Low Cost Auto Insurance
Drivers who are beginning their descent into the realities of auto insurance have a bit of an advantage over those who are experienced drivers and have already tainted their driving record. You will find that drivers who have no traffic incidents — tickets or accidents — on their driving record will be paying far less for their auto insurance compared to those drivers who do have traffic incidents on their record. Surprised? You shouldn’t be. Auto insurance companies obviously charge the latter group of drivers a higher rate because they file more claims and cause the insurance company to pay out more money than the first group of drivers with no incidents.
Auto insurance companies assign a level of risk to all drivers. This level of risk reflects the chances that driver is going to file a claim, and the higher the risk, the higher the premium.
If you have received tickets or have been involved in accidents, you have already seen your rates rise. To get them back down again, you will need to work on not getting any further incidents on your record so you can lower your level of risk with the insurance company. Driving cautiously and being aware of your surroundings (including the speed limit and stop signs) will help you keep your driving record clean and get low auto insurance rates.
The Vehicle You Drive Can Be Used To Your Advantage (or Disadvantage)
Were you aware your vehicle assists in determining the cost of your auto insurance? There are a few things to know that can help you use your vehicle to get low cost auto insurance. You can apply this knowledge as you purchase your next vehicle. First, a car that has safety features will get a cheaper premium cost. How many airbags does your vehicle have? Is it equipped with a car alarm? What other safety mechanisms are in included with the car? Letting your insurer know these things will lower the cost of your policy.
Second, a car that is brand new is much more expensive to insure than a car that isn’t brand new. The cost to repair or replace a new car is very expensive for an auto insurer, and therefore they will charge more to insure such a vehicle. Also, on an older car, you may not need to carry options like comprehensive or collision because the cash value of the car isn’t worth the cost of that insurance. With a new car, you would absolutely need to pay for comprehensive and collision coverage.
Third, the type of vehicle you drive factors into your premium cost. It is definitely more expensive to insure a fast sports car than it is to insure a typical four-door sedan. Cars that have the ability to drive fast are usually driven fast and sometimes are then involved in traffic incidents. Auto insurers charge higher rates to drive these cars because the level of risk is increased.
Your Personal Statistics Affect Your Cost
There isn’t much that drivers can do to change these things, but knowing these factors affect your auto insurance cost can help a driver figure out why their insurance may cost more than someone else’s. Young male drivers are statistically less cautious than young female drivers, which leaves young male drivers paying more for their auto insurance. However, the older a driver gets, the more responsible they are thought to be and their insurance cost decreases. Married drivers are charged less for auto insurance compared to their single peers, mostly because married drivers drive more cautiously with their spouse present in the car.
Low cost auto insurance isn’t easy for every driver to find, but it is out there. Taking the time to compare auto insurance companies, clean up your driving record, and evaluate the car you drive will help lower your cost for auto insurance.
If you can push aside the frustration for a bit longer, we can provide some insight on how to find that low cost insurance. And, if you don’t qualify for cheap auto insurance for one reason or another, we can show you a few discounts you might be able to apply towards your policy cost.
Comparing Companies Will Help You Find Low Cost Auto Insurance
Comparison shopping, no matter what the product may be, always helps consumers find their product for the cheapest available price. Wouldn’t you shop at the store who offers the lowest price? Most consumers would say yes, of course. The same applies to auto insurance. Although it’s not a physical product, it is a service that protects you and your vehicle from damage or replacement expenses.
Most auto insurance companies will offer the same types of coverage options to purchase for your auto insurance policy, and most of them come with the same terms and conditions. By doing a thorough comparison, you can find the differences, if there are any, and then look at the prices of those same options. There’s no doubt if you find the same coverage option for a cheaper price, you’re going to pick the company who offers the cheapest price.
The most convenient way for you to compare auto insurance companies is by using our site. On our Homepage, simply enter in your zip code and complete the list of questions. We will send you a list of auto insurance companies and their price quotes for a policy, which you can take and decide which one to purchase. There’s no obligation to purchase, nor are there any fees to use our service, so there’s really no harm in using our comparison service.
A Clean Record Will Get You Low Cost Auto Insurance
Drivers who are beginning their descent into the realities of auto insurance have a bit of an advantage over those who are experienced drivers and have already tainted their driving record. You will find that drivers who have no traffic incidents — tickets or accidents — on their driving record will be paying far less for their auto insurance compared to those drivers who do have traffic incidents on their record. Surprised? You shouldn’t be. Auto insurance companies obviously charge the latter group of drivers a higher rate because they file more claims and cause the insurance company to pay out more money than the first group of drivers with no incidents.
Auto insurance companies assign a level of risk to all drivers. This level of risk reflects the chances that driver is going to file a claim, and the higher the risk, the higher the premium.
If you have received tickets or have been involved in accidents, you have already seen your rates rise. To get them back down again, you will need to work on not getting any further incidents on your record so you can lower your level of risk with the insurance company. Driving cautiously and being aware of your surroundings (including the speed limit and stop signs) will help you keep your driving record clean and get low auto insurance rates.
The Vehicle You Drive Can Be Used To Your Advantage (or Disadvantage)
Were you aware your vehicle assists in determining the cost of your auto insurance? There are a few things to know that can help you use your vehicle to get low cost auto insurance. You can apply this knowledge as you purchase your next vehicle. First, a car that has safety features will get a cheaper premium cost. How many airbags does your vehicle have? Is it equipped with a car alarm? What other safety mechanisms are in included with the car? Letting your insurer know these things will lower the cost of your policy.
Second, a car that is brand new is much more expensive to insure than a car that isn’t brand new. The cost to repair or replace a new car is very expensive for an auto insurer, and therefore they will charge more to insure such a vehicle. Also, on an older car, you may not need to carry options like comprehensive or collision because the cash value of the car isn’t worth the cost of that insurance. With a new car, you would absolutely need to pay for comprehensive and collision coverage.
Third, the type of vehicle you drive factors into your premium cost. It is definitely more expensive to insure a fast sports car than it is to insure a typical four-door sedan. Cars that have the ability to drive fast are usually driven fast and sometimes are then involved in traffic incidents. Auto insurers charge higher rates to drive these cars because the level of risk is increased.
Your Personal Statistics Affect Your Cost
There isn’t much that drivers can do to change these things, but knowing these factors affect your auto insurance cost can help a driver figure out why their insurance may cost more than someone else’s. Young male drivers are statistically less cautious than young female drivers, which leaves young male drivers paying more for their auto insurance. However, the older a driver gets, the more responsible they are thought to be and their insurance cost decreases. Married drivers are charged less for auto insurance compared to their single peers, mostly because married drivers drive more cautiously with their spouse present in the car.
Low cost auto insurance isn’t easy for every driver to find, but it is out there. Taking the time to compare auto insurance companies, clean up your driving record, and evaluate the car you drive will help lower your cost for auto insurance.
What Can Drivers Do to Get Cheap Auto Insurance?
It may seem like an impossible feat for any driver to get cheap auto insurance, but with a positive attitude and time to do some research all drivers can get their auto insurance rates cheaper than what they are currently paying. Because each driver has a different level of driving experience, each driver will have different routes to take to find ways to decrease the amount they pay for auto insurance. We have broken it down to two groups, giving information to teenage drivers (or any new driver) and experienced drivers on what to do to get cheap auto insurance. You will notice that some of the suggestions apply to both groups, but take it as something that should be made into a habit to always be qualified for low auto insurance.
What can teenage drivers do?
All teenage or new drivers should begin their driving experience by having an understanding that although driving can be fun and a way to feel older or temporarily escape from home or school life, it is a privilege that should be taken seriously. Parents should take responsibility and set ground rules regarding the teen’s driving. Often, a contract is made, clearly stating rules, what is expected of the teen driver, and what the consequences are for breaking those rules. Rules should be based around safe driving, including no cell phone use while driving, how loud the radio can be if used at all, when the teen is allowed to use the vehicle, or the number of friends that can be in the vehicle while the teen is driving. Parents shouldn’t hesitate to help their teen driver learn how to be safe while driving by setting rules and expecting them to be followed.
When discussing rules, parents may want to point out that the “cleaner” a driving record is, the cheaper that driver is to insure. Teen drivers start their driving career with a clean slate, having no marks against them. The longer this record stays clear of accidents and tickets, the better off the driver will be in the years to come. One consequence to getting an accident or ticket could be the teen pays for the increase in premium due to their receiving a ticket or causing an accident. Teen drivers are already expensive to insure, and adding a traffic incident to their record only increases it more. Stress the importance of keeping auto insurance premiums as low as possible so the teen understands and perhaps becomes more sympathetic to the financial side of things.
Teenage drivers can also learn the responsibility of driving by having to pay for their portion of the auto insurance policy. Policyholders or parents can figure this amount out by finding the difference between the policy premium before the teen began driving and what the policy is currently now that the teen is driving. Some parents may find this too harsh of an expectation for their child, and if that is the case, then perhaps this could be a consequence the teen must endure if they break a rule in the contract. Paying for gas is another way to teach the teen about driving responsibly. This could help prevent the teen from going on aimless joyrides around town, which could put the teen at a greater risk of being involved in an accident.
Our final suggestion for teen drivers is to be careful of the type of car they drive. Most teenagers dream of driving the coolest car at school; something fast, something everyone covets, and something expensive. However, these types of vehicles are very expensive to insure, especially to a teenage driver. If the parents can afford both the “cool car” and the insurance to cover it, by all means, purchase whatever is wanted. The remaining group of drivers should look for something safe but older for their teen. Ask the question, if my teenage driver wrecked this car, how much would it cost to repair and how upset would I be?
What can experienced drivers do? (clean up record, vehicle type, less miles)
Drivers who have had the opportunity to drive cars for a while should have the experience needed to make good judgment calls in all or most driving situations. Using this knowledge to their advantage will help lower auto insurance rates through keeping their record free from accidents and traffic tickets. If the experienced driver has traffic incidents on their record, it will take time for those to disappear. The best thing a driver can do in this situation is wait it out and make sure to use their driving knowledge to avoid adding more traffic incidents to their record. And, just for the record, your driving record will always follow you, no matter which auto insurance company you use.
Another thing experienced drivers can do to get cheap auto insurance is to drive their vehicle less. A car that is driven less is obviously on the road less, which decreases the chance that it will be mixed up in an accident. Auto insurance companies ask for an estimation of the mileage the car will be driven, and that estimation helps to produce the final premium cost. Taking the bus or carpooling to and from the driver’s destinations will help lower the miles on the insured vehicle, thus lowering the cost of insurance.
A suggestion given to the teenage driver is also recommended to experienced drivers, and that is to drive a modest car with safety features. Not only will teenage drivers develop a “lead-foot” behind the wheel of a fast car, so will experienced drivers. While the teenage driver feels invincible, the experienced driver feels that because of his experience in driving, he can handle driving the fast car at high speeds, safely. Auto insurance companies end up paying more in claims for speedy cars, so they charge more to insure them. The safety features of a car — such as airbags or an alarm — help protect from more severe body injuries or finding the location of the vehicle, which means the insurance company will payout less in claims filed in the end.
What can teenage drivers do?
All teenage or new drivers should begin their driving experience by having an understanding that although driving can be fun and a way to feel older or temporarily escape from home or school life, it is a privilege that should be taken seriously. Parents should take responsibility and set ground rules regarding the teen’s driving. Often, a contract is made, clearly stating rules, what is expected of the teen driver, and what the consequences are for breaking those rules. Rules should be based around safe driving, including no cell phone use while driving, how loud the radio can be if used at all, when the teen is allowed to use the vehicle, or the number of friends that can be in the vehicle while the teen is driving. Parents shouldn’t hesitate to help their teen driver learn how to be safe while driving by setting rules and expecting them to be followed.
When discussing rules, parents may want to point out that the “cleaner” a driving record is, the cheaper that driver is to insure. Teen drivers start their driving career with a clean slate, having no marks against them. The longer this record stays clear of accidents and tickets, the better off the driver will be in the years to come. One consequence to getting an accident or ticket could be the teen pays for the increase in premium due to their receiving a ticket or causing an accident. Teen drivers are already expensive to insure, and adding a traffic incident to their record only increases it more. Stress the importance of keeping auto insurance premiums as low as possible so the teen understands and perhaps becomes more sympathetic to the financial side of things.
Teenage drivers can also learn the responsibility of driving by having to pay for their portion of the auto insurance policy. Policyholders or parents can figure this amount out by finding the difference between the policy premium before the teen began driving and what the policy is currently now that the teen is driving. Some parents may find this too harsh of an expectation for their child, and if that is the case, then perhaps this could be a consequence the teen must endure if they break a rule in the contract. Paying for gas is another way to teach the teen about driving responsibly. This could help prevent the teen from going on aimless joyrides around town, which could put the teen at a greater risk of being involved in an accident.
Our final suggestion for teen drivers is to be careful of the type of car they drive. Most teenagers dream of driving the coolest car at school; something fast, something everyone covets, and something expensive. However, these types of vehicles are very expensive to insure, especially to a teenage driver. If the parents can afford both the “cool car” and the insurance to cover it, by all means, purchase whatever is wanted. The remaining group of drivers should look for something safe but older for their teen. Ask the question, if my teenage driver wrecked this car, how much would it cost to repair and how upset would I be?
What can experienced drivers do? (clean up record, vehicle type, less miles)
Drivers who have had the opportunity to drive cars for a while should have the experience needed to make good judgment calls in all or most driving situations. Using this knowledge to their advantage will help lower auto insurance rates through keeping their record free from accidents and traffic tickets. If the experienced driver has traffic incidents on their record, it will take time for those to disappear. The best thing a driver can do in this situation is wait it out and make sure to use their driving knowledge to avoid adding more traffic incidents to their record. And, just for the record, your driving record will always follow you, no matter which auto insurance company you use.
Another thing experienced drivers can do to get cheap auto insurance is to drive their vehicle less. A car that is driven less is obviously on the road less, which decreases the chance that it will be mixed up in an accident. Auto insurance companies ask for an estimation of the mileage the car will be driven, and that estimation helps to produce the final premium cost. Taking the bus or carpooling to and from the driver’s destinations will help lower the miles on the insured vehicle, thus lowering the cost of insurance.
A suggestion given to the teenage driver is also recommended to experienced drivers, and that is to drive a modest car with safety features. Not only will teenage drivers develop a “lead-foot” behind the wheel of a fast car, so will experienced drivers. While the teenage driver feels invincible, the experienced driver feels that because of his experience in driving, he can handle driving the fast car at high speeds, safely. Auto insurance companies end up paying more in claims for speedy cars, so they charge more to insure them. The safety features of a car — such as airbags or an alarm — help protect from more severe body injuries or finding the location of the vehicle, which means the insurance company will payout less in claims filed in the end.
Which Auto Insurance Company is the Best?
There are so many auto insurance companies out there vying for your attention, claiming they will give you the lowest possible price while providing the best service. Between the highly popular companies and the local companies, it can be a bit confusing to decide on which company is better suited for you. While everyone is trying to find the best one out there, the answer just might be that no one particular company is the best auto insurance choice for every driver. Each driver has their own list of priorities for an insurance company and expectations that they must meet before they are chosen.
Are you looking for an auto insurance company? Drivers who begin the search for their first auto insurance company or who want to change the insurer they are currently with need to know some things to look for in their next auto insurance provider. Always start off by making a list of things that are important to you; things that should be provided by the insurer to make your experience with them as pleasant as possible. If you are not sure what to look for or what additional expectations to have, read our suggestions below to help better explore your options.
Price
No customer wants to pay more for the same product that is offered elsewhere at a cheaper price. Often, a driver’s number one priority from an auto insurance company is to get the best price available when compared to another insurer. To make sure you’ve got the lowest price, you will need to shop around and compare what other insurers are offering to their customers. One convenient way to shop around is by using our site and entering in your information, which will then give you a list of price quotes from competing auto insurance companies in your local area. You can begin by entering your zip code on our Homepage.
Another way to guarantee you are getting the lowest price for your auto insurance is by making sure you are taking advantage of the discounts that are offered by your insurance provider. Each company has their own rules and limits on discount programs, so look for a company that offers a variety of ways to lower your insurance price. Some of these discounts include getting good grades, safety features on your vehicle, and attending specific driving courses. Most companies also have an accident forgiveness program that could save you from increasing rates should you be involved in an accident.
Customer Service
If you know that you want an excellent experience any time you make contact with your auto insurance company, always check into the prospective company’s customer service history. There are a few ways of doing this. First, during your selection process, you can call the companies you are considering and find out for yourself how they treat people over the phone with their questions. Do they treat you with respect even though you are not a customer? How do you think they would help you if you needed to file a claim in the future?
Second, you can check how their customer service rates by researching the Better Business Bureau or J.D. Power (jdpower.com). Both of these companies compile lists and information regarding other customer’s experiences with auto insurance companies. You could save yourself some headaches by knowing what other past and current customers think about different auto insurance companies you are considering to use.
Third, don’t hesitate to ask family and friends (and even friends of friends) who they use for their auto insurance and how they like the company. Try to find out how the company treated them when they were first purchasing a policy, when they changed their policy, when they filed a claim, when they had questions, etc. You will want to get a full understanding of their experience with their auto insurer so you can form a better opinion of the company’s customer service.
Financial Stability
In this weak economy with failing companies, it would be helpful to know which auto insurance companies are going to be around for a while to pay out any future claims you may make. Auto insurance companies need to have more money coming in to them (by the method of premium costs) than money going out (by paying filed claims). One way to check their financial status is through researching Weiss Ratings (weissratings.com) and A.M. Best (ambest.com). Much like the customer service review Websites, these Websites provide solid information on the likelihood of an auto insurance company paying out a claim.
These third party evaluations are not biased, compared to calling the auto insurance companies themselves and asking how their financial status is currently. Also, making sure these evaluating companies do not accept any forms of pay will keep their findings more truthful and a better way for you to compare the insurers and find the best one for you.
Convenience (close location, online bill pay, answers phone)
The convenience of an auto insurance company may also be a high expectation and help determine which company you want to use. Factors such as online bill pay, a close location, and even how many times the phone rings before it is answered can influence your decision. Any company, including auto insurance companies, should make themselves available to you and be absolutely convenient in every way. The more convenient and easy a company is to use, the more customers they will have.
An auto insurance company that is does not provide conveniences — no Website, far away, never answers the phone — should probably be dismissed as it would cause stress on your part when you do need to contact the company. Auto insurance is for your protection, and you should have every convenience offered to you.
Again, the best auto insurance company is based on matching your needs and expectations with the auto insurance company that provides the solutions. You will find that one company may be better suited for you, but someone else may disagree it’s the best choice for them. Thorough research will help you find your best company and give you a positive experience with auto insurance.
Are you looking for an auto insurance company? Drivers who begin the search for their first auto insurance company or who want to change the insurer they are currently with need to know some things to look for in their next auto insurance provider. Always start off by making a list of things that are important to you; things that should be provided by the insurer to make your experience with them as pleasant as possible. If you are not sure what to look for or what additional expectations to have, read our suggestions below to help better explore your options.
Price
No customer wants to pay more for the same product that is offered elsewhere at a cheaper price. Often, a driver’s number one priority from an auto insurance company is to get the best price available when compared to another insurer. To make sure you’ve got the lowest price, you will need to shop around and compare what other insurers are offering to their customers. One convenient way to shop around is by using our site and entering in your information, which will then give you a list of price quotes from competing auto insurance companies in your local area. You can begin by entering your zip code on our Homepage.
Another way to guarantee you are getting the lowest price for your auto insurance is by making sure you are taking advantage of the discounts that are offered by your insurance provider. Each company has their own rules and limits on discount programs, so look for a company that offers a variety of ways to lower your insurance price. Some of these discounts include getting good grades, safety features on your vehicle, and attending specific driving courses. Most companies also have an accident forgiveness program that could save you from increasing rates should you be involved in an accident.
Customer Service
If you know that you want an excellent experience any time you make contact with your auto insurance company, always check into the prospective company’s customer service history. There are a few ways of doing this. First, during your selection process, you can call the companies you are considering and find out for yourself how they treat people over the phone with their questions. Do they treat you with respect even though you are not a customer? How do you think they would help you if you needed to file a claim in the future?
Second, you can check how their customer service rates by researching the Better Business Bureau or J.D. Power (jdpower.com). Both of these companies compile lists and information regarding other customer’s experiences with auto insurance companies. You could save yourself some headaches by knowing what other past and current customers think about different auto insurance companies you are considering to use.
Third, don’t hesitate to ask family and friends (and even friends of friends) who they use for their auto insurance and how they like the company. Try to find out how the company treated them when they were first purchasing a policy, when they changed their policy, when they filed a claim, when they had questions, etc. You will want to get a full understanding of their experience with their auto insurer so you can form a better opinion of the company’s customer service.
Financial Stability
In this weak economy with failing companies, it would be helpful to know which auto insurance companies are going to be around for a while to pay out any future claims you may make. Auto insurance companies need to have more money coming in to them (by the method of premium costs) than money going out (by paying filed claims). One way to check their financial status is through researching Weiss Ratings (weissratings.com) and A.M. Best (ambest.com). Much like the customer service review Websites, these Websites provide solid information on the likelihood of an auto insurance company paying out a claim.
These third party evaluations are not biased, compared to calling the auto insurance companies themselves and asking how their financial status is currently. Also, making sure these evaluating companies do not accept any forms of pay will keep their findings more truthful and a better way for you to compare the insurers and find the best one for you.
Convenience (close location, online bill pay, answers phone)
The convenience of an auto insurance company may also be a high expectation and help determine which company you want to use. Factors such as online bill pay, a close location, and even how many times the phone rings before it is answered can influence your decision. Any company, including auto insurance companies, should make themselves available to you and be absolutely convenient in every way. The more convenient and easy a company is to use, the more customers they will have.
An auto insurance company that is does not provide conveniences — no Website, far away, never answers the phone — should probably be dismissed as it would cause stress on your part when you do need to contact the company. Auto insurance is for your protection, and you should have every convenience offered to you.
Again, the best auto insurance company is based on matching your needs and expectations with the auto insurance company that provides the solutions. You will find that one company may be better suited for you, but someone else may disagree it’s the best choice for them. Thorough research will help you find your best company and give you a positive experience with auto insurance.
Subscribe to:
Posts (Atom)