To keep your car insurance premiums at a minimum, here are some of the things insurance companies look at when assessing your vehicle when you apply for insurance:
1. Cost
The more expensive the car, the higher the premiums will be. So just get a flashy car when you can afford the premiums as well.
2. Projected costs.
By this we mean projected costs of repairs and spare parts and maintenance. Again, the higher and more expensive these activities and components are, then you can also count on higher premiums.
3. Driving habits
How many tickets have you been issued in the past year? 1? 10? 20? The more traffic altercations you are in, the more you are considered a high risk driver and thus need to pay more expensive premiums. So always practice defensive driving, and don’t let your temper on the road get he best of you.
February 17th, 2009 in
General Info |
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New laws are taxing heavy on car owners who have to pay more for the same auto insurance they have been getting for the past years. This has been brought about by the fact that the number of accidents on the roads keep in increasing and with it, the number of uninsured drivers. There used to be more insured drivers than the uninsured but recent economic conditions has caused many to opt not getting ample coverage for their vehicles. The result, auto insurers are having to shell out more for without insurance, they have to settle their client’s claims but not have anybody to claim from. There are caps that limits their liability but they still pile up to a lot of lost collections form other insurance firms which should normally be the case.
There used to be a huge jump in car ownerships but with the recession, people ain’t buying. Dealers are pulling all stops to get sales but even with that, they still get dismal numbers. The bailout funds allotted for the automakers may be enough to get them through this recession but for the thousands of car dealers, no sales have forced many of them to shut their doors. Many models have also been discontinued and with dealers out of business motorists are having to contend with longer drives just for scheduled service checks leading to more costs.
In states where the economic slowdown has damaged the industry as a whole, many people may have the ability to purchase vehicles but finding a provider willing to offer insurance may be a totally different matter. With many providers pulling out of many US states as they try to minimize damage to their business (other types of issued insurance policies) that have gone downhill leading to dried up cash pools, buying ample auto insurance has become harder and harder. The many problems that have stemmed from the sub-prime lending market collapse continues to affect the finance industry and with many banks and lending firms collapsing under the sheer weight of claims from issued policies, many are left high and dry.
If you happen to have ample coverage, consider yourself lucky for they are hard to find and keep as we strive and hope for a swift end to the current crisis.
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If you are being penny-wise in this economic crisis, that’s good, but not at the expense of your car insurance ! When the economy is going through a rough patch, it is a tempting notion to forget about car plans. Don’t make that big mistake. It’ll cost you ! Almost all states have minimum car insurance laws which makes driving without insurance a crime. You never know when you will figure in an accident and it pays to be prepared. A number of states conduct random car insurance inspections and if you are caught without one, penalties could be stiff. You could be fined, have your license suspended or you could do time in jail. Plus you have to pay another fee to reinstate your registration. Having all of these happen to you all at the same time could make your head spin!
November 27th, 2008 in
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There are antique car insurance companies who are able to provide the sort of cover an older car needs. Many people choose to restore, then display their prized possessions, would never fail to insure it. By having a wide variety of auto insurance companies to choose from, the classic car consumer has the ability to choose the right type of insurance for their needs. Auto cover for an atique car will give the policy holder security knowing that the company is well established and with good reputation.Often, the cost of an antique car insurance policy is higher with this type. Lowering the cost of premium is by increasing the deductible above the standard limit. Finding an antique car insurance company might seem like hard work but it is far better than not having the car insured. It is a big loss if ever stolen or destroyed. It is better to be safe and have it auto covered for protection.
October 9th, 2008 in
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If you’re looking to shave off a few dollars from your car insurance premium, here are some factors that may help you:
1.Your address – neighborhoods that have little traffic compared to congested cities are at lower risk for accidents,and translates to lower premiums. On the other hand, neighborhoods that have a higher rate of vehicle thefts may result to higher premiums.
2.Driving Violations – having a record of accidents or driving violations (such as speeding tickets, DWI, etc.) means that you are at a higher risk for accidents and will mean higher premiums.
3.Vehicle Type – the cheaper the car, the less it takes to insure it, get it?!
4.Accident Claims – insurance companies will check on the accident claims you’ve made in the past. The more claims, the higher premiums.
5.Credit Rating – having bad credit or no credit history at all isn’t going to help you. Better credit scores will save on insurance premiums.
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Many people are of the opinion that the driver without the insurance should be liable, it isn’t always that easy. Let’s face it, if the driver couldn’t pay the car insurance, there is no way that they will be able to pay for any damages to the other vehicle or property. Likewise if the other person is injured, then the cost of medical bills and loss of earnings are not going to be covered.
Anybody driving without insurance may feel that they have no other choice and that they try to drive safely. Many say that they cannot afford car insurance or if they could find cheap car insurance then they would be covered. The fact remains that if you cannot afford car insurance, then you cannot afford to dive.
In reality, people will always be able to afford things that are important to them. There are plenty of cheap car insurance products available to them if they modified their spending habits. For example, if somebody smokes or drinks, then they could cut down on those to enable them to pay for the insurance. However, that is easier said than done, and some are just unwilling to change.
SR-22 - A document required by the court for individuals convicted of certain types of traffic violations that shows proof of financial responsibility.
Third party - In an insurance contract, a third party is anyone other than the policyholder and the family members covered under the insurance policy. The policyholder is the first party. The insurance company is the second party in the contract. Anyone else is a third party.
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July 4th, 2008 in
Glossary |
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Limits - The most an insurance company will pay for a specific insurance coverage. Individuals can choose the limit that meets their needs. Many states have laws that specify the minimum limits an insured must purchase.
No-Fault Auto Insurance - Laws permitting the individual automobile accident victim to collect monies directly from their own insurance company for medical and hospital expenses regardless of whose fault the accident was. The idea is to discourage lawsuits by allowing policyholders to recover financial losses from their own insurance company without having to prove that anyone is at fault in an accident. Motorists may only sue for severe injuries and for pain and suffering if their case meets certain conditions. Eight states, including Colorado and Utah, require that you meet a minimum dollar threshold to be able to bring a lawsuit over damages over and above your economic losses. Florida, Michigan, New Jersey, New York and Pennsylvania use a verbal description as a threshold (i.e. severe disfigurement, disability or death). In New Jersey, Pennsylvania and Kentucky, when they buy insurance, motorists may choose to reject the lawsuit threshold and keep their right to sue for any auto-related injuries.
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June 1st, 2008 in
Glossary |
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Many people do not realize that their car insurance coverage could be on the risk of being invalid just because they believe some myths instead of reading the small prints. Some people fail to check the coverage of their policy. An example is eating and drinking and even smoking while driving. When accident happens, the insurance company may refuse to pay out and consider the coverage void and they will claim that you have been negligent. Drivers continue to do this because they believe it is not against the law to eat, drink or smoke so they presume it will not affect their coverage.
