Factors influencing auto insurance rates

Insurance companies and industry groups are saying the recall of more than 8 million Toyota cars and trucks shouldn't have an impact on insurance rates. The price of auto insurance is determined by many factors, and isn't limited to just the model you drive, the cost to fix it and its overall safety record.
The Insurance Information Institute, a trade group for the insurance industry, said the average driver pays about $850 a year in insurance. Your bill can be influenced by several factors:
DRIVING RECORD
The more accidents and serious traffic violations you have, the more you'll pay. You may also pay more if you haven't been insured for a number of years.
MILES DRIVEN
The more miles you drive, the more chance for accidents, the more you'll pay. If you drive less than 10,000 miles a year, you will pay less. Some companies will give discounts to policyholders who carpool.
WHERE YOU LIVE
Insurance companies look at local trends, such as the number of accidents, car thefts and lawsuits, as well as the cost of medical care and car repair.
DRIVER'S AGE
Mature drivers generally have fewer accidents than less experienced drivers, particularly teenagers. So insurers usually charge more if teenagers or young people below age 25 drive your car.
THE MODEL
Cars that cost more, have high theft rates, cost more to repair or have poor safety records cost more to insure.
DRIVER'S CREDIT
Some insurance companies use credit scores as a factor in insurance rates. Credit-based insurance scores are based on information like payment history, bankruptcies, collections, outstanding debt and length of credit history. Regular, on-time credit card and mortgage payments affect a score positively, while late payments affect a score negatively.
AMOUNT OF COVERAGE
The larger your policy, the more you'll pay. However, you may qualify for discounts. Some insurance companies offer discounts if you have your homeowners and auto insurance policies with them, for example.

12 Things You Don’t Know About Car Insurance

What you don’t know about your car insurance policy could be draining your wallet right now. Insure.com, Inc. has revealed 12 factors that may be costing you money.

1. You’ll pay for your friend’s bad driving

If your friend borrows your car and crashes it, you’ll have to file a claim with your insurance company. You’ll have to pay any deductible that applies and your rates could go up as a result of your claim, especially if you have made other recent claims.

2. Your personal property in your car isn’t covered by your auto insurance

Stolen or damaged items like compact discs aren’t covered by your car insurance.

3. You may be entitled to payment for sales tax and registration fees for a new car

Most states require insurers to pay sales taxes on total loss settlements. Some states require the insurer to pay it at the time of loss while other states require it to be paid only if you purchase a replacement vehicle within a certain time period. Make your request for a sales tax reimbursement no matter where you live.

4. You may be entitled to a diminished value claim in some states

Diminished value is based on the idea that any car that has been in an accident, regardless of how well the repairs are done, is worth less than the exact same car that hasn’t been in an accident. However, most states allow car insurers to use policy language that officially disallows diminished value claims.

There’s one way you may be entitled to a diminished value claim: If someone else hits you and you make a damage claim on that person’s insurance. That’s called a third-party claim and it’s possible to get diminished value damages as a third party.

5. You may be able to “stack” your coverage

Stacking uninsured/underinsured motorist coverage means you can collect payment more than once within the same auto policy or across two auto policies. There are two scenarios for stacking: First, if you have multiple cars, you can collect the limit of your UM/UIM policy to cover full payment for damages. Second, if you have more than one policy with UM/UIM coverage, you can make a claim under each policy until all your damages are recovered. Check the language of your policy.

6. Making a claim could increase your car insurance rates, but by how much?

When an insurance company decides to raise your premiums because you make a claim, it doesn’t follow any hard and fast rules; many factors are involved. For example, if you make a claim and have a birthday before renewal time, your birthday might bump you into a higher risk category along with the claim.

Some insurance companies have “accident forgiveness” guidelines. When you buy or renew your policy, ask how to qualify for accident forgiveness.

7. If you don’t drive much, “usage-based” car insurance could save you money

“Usage-based” car insurance allows you to buy coverage based on how much you actually drive. If you don’t drive much, this can save you up to 60 percent on your insurance. Progressive is the first insurance company to offer “pay-as-you-drive” policies through its MyRate program. Your mileage will be measured by a wireless device installed in a car port.

If your insurance company doesn’t offer usage-based coverage, inquire about “low-mileage discounts.”

8. Your credit history may affect your car insurance premium

Car insurers believe that your credit history is an indicator of whether you are going to make a claim, and price your insurance policy accordingly where states allow it.

9. You must officially cancel your insurance policy when you switch insurers

You can cancel your coverage at any time by notifying the company in writing of your intended date of termination. Most consumers assume that if they decide to terminate the policy at the end of the coverage period, they can simply ignore the bill. Insurance companies don’t see it that way. They will send you another bill for the next premium payment, and when you don’t pay it, the company can cancel you for nonpayment, which goes on your credit record.

10. You can wait to add your teenager to your policy until he or she is licensed

In most cases, insurance companies don’t require you to add your teenager to your policy until the teen has his or her driver’s license. The exception may be if you are in a high-risk insurance pool; you may then have to add your child when they receive their permit.

11. Paying in installments will usually increase your overall bill

“Fractional premium” fees are usually charged when you divide your annual premium payment into installments rather than pay for a year of coverage all at once. It can be as little as a few dollars per payment, but the more you break it down, the more it adds up. When you apply for the policy, ask what the fees are for paying in installments. If you can, pay your annual premium all at once.

12. Your car model affects your premium, but by how much?

Auto insurers have a premium-rating system for every car model, usually based on “Vehicle Series Ratings” (VSRs) received from the Insurance Services Office (ISO). This rating indicates how comparatively expensive your vehicle should be to insure. Factors include susceptibility to theft and typical claims losses for the vehicle.

If you are shopping for a new car, contact your insurance company and ask about the premium difference among the cars you are considering.

Car Insurance Quandaries

How to find the right car insurance that you need will depends on many different factors. Where you live, what type of car you drive, how much medical coverage you may need, as well as deductibles you can afford, need to be taken into consideration. The important thing is to take your time and not rush into the decision.

One of the first things that you need to look at is where to shop. The best place to look for insurance is by actually visiting a local insurance agent. A local agent can explain the different types of policies as well as the considersations that you need to take into account. Talk to family and friends about where they are insured and how the service is, especially those that have had an accident or stolen car. Local agents will also provide a written quote. This quote will help you compare when you move to your next step, shopping online.

With written quote in hand, continue your search online. Go to a favorite search engine and find a car insurance company that offers to give you multiple quotes from different companies. Most of the larger companies for which you are given quotes should have an agent in your area but if you live in a small town, the agent may be located in a nearby town.

After printing out the needed information about these companies, your next step is to compare prices. Keep in mind that different companies will provide quotes using different factors, so really try to balance them out by selecting similar coverages for each company. Some of the areas where quotes generally differ are in the amount your vehicle is determined to be worth, how much they will pay for medical coverage for each passenger and the amount they will pay for damage to other people or other people's property.

If you are at fault in a car accident, you will find that may not have the insurance coverage that you need. If you do not have enough to pay for the injuries of another person or their property, they can bring a lawsuit against you. In our rush to get through our daily lives, we do not realize that one accident could lead to financial ruin. The right insurance coverage will prevent this calamity.

If you decide to purchase a new car and your car is stolen (which happens every few minutes in the United States), you could end up with a car payment for a vehicle you no longer possess. The correct amount of car insurance will protect you from having to make payments on a car that has been stolen. However, if you make modifications to your car, the insurance company will still only pay what the car would have been worth without your modifications.

If you decide to have a $500 deductible, make sure that you can afford to pay $500 in the event that something happens to your car. If a rock hits your windshield and you have to get it replaced, you may pay the entire amount if it is anything less than your $500 deductible. You may hit an animal that runs in to the road: you will have to pay the first $500 for any repairs your car needs. It is very important to select the best deductible that you can afford unless you keep significant funds on hand to cover any potential vehicle repairs.

Knowledge is key when it comes to selecting and ultimately purchasing the correct auto insurance for you and your family. Comparison shop to find the right coverages and prices but then also trust your gut when it comes to selecting a company: the customer service you receive when purchasing a policy will likely be the same to the customer service you receive when you need to implement your policy. Good luck!

Buying Car Insurance for the First Time

Purchasing car insurance for the first time can be quite confusing. Insurance4usa.com is here to help. A few items are needed to complete this transaction.
First the insured must be of legal age in the state the insurance will be purchased (usually age 16), must have a valid drivers license and own a vehicle in their own name (technically, you need the insurance prior to purchasing the vehicle and driving it off the lot). Once these requirements are met, insurance can be purchased.
Contact an insurance agent or insurance company to purchase a policy. A series of questions will be asked and must be answered truthfully in order to get the best rate. The information the agent will need is the following: Name, address, phone number, date of birth, driver’s license number, social security number, vehicle identification number, how far you travel to and from work/school, the insurance coverage you're looking for, and discounts available on the vehicle (the agent will ask these and you can answer yes or no).
The agent should be able to obtain a quote on the same day, however allow one day of lee time to make sure the agent can be thorough in getting the best coverage and price. We recommend that you obtain at least three insurance quotes to be sure you are making a fair comparison and determine the best price. Use the quote form below if you would like Insurance4usa.com to help with this process. Once your decision is made, you will need to sign applications and deliver a down payment to the agent. The agent will give you Identification cards for your vehicle to show proof of coverage.
After the insurance coverage is in force, take the proof to the department of motor vehicles (DMV) and register the vehicle with the necessary paperwork (title, driver’s license, insurance). The DMV will issue you license plates and temporary registration. Place the plates on the car and registration in the window and you’re all set to go. Now you just need to make the car and insurance payments to stay current.
To review:
1. Obtain drivers license
2. Purchase a vehicle
3. Contact insurance agent or company to obtain coverage
4. Register vehicle (bring proof of insurance and other paperwork to your state DMV)
We hope this helps. Good luck with your new car and drive safely.
Car Insurance Rate Factors that are Under Your Control
Did you ever wonder what the major factors that impact your insurance coverage are? Most people do. I am going to use a pretty broad brush to go over the factors that should concern you.
1. You.
2. Your Car.
3. Your Location.
You are one of the main factors in determining your car insurance rate. By 'you' I am referring to your age, your driving record, your education, and your accident history. What is it about 'you' that is under your control? Well, it isn't your age. It is your driving record and/or your loss history to some extent, but accidents and tickets aren't always under our control. Mainly I am referring to your ability to educate yourself by taking a defensive driving class. A defensive driving class will save you about 10% on your insurance premiums with most companies. The classes are usually about $30 and some employers will offer them for free.
Your Car doesn't have to be the latest 300hp sports coupe, or the very expensive to repair foreign SUV. You can select a car that costs less to insure and keep your rate down in the process. Now, you probably aren't going to win any races with a conservative vehicle, but in the long run, you will save a couple of bucks. Talk to your agent, or company, about the best vehicles in terms of insurance costs. You might be surprised to find that it isn't all about the cost of the vehicle. The safety rating and the average repair cost are also major factors in determining a rate. Shop for your next car with list in hand.
Your Location is going to be the factor that can cause the most swing in your insurance rate. You might be shocked at the difference in rate from one side of the street to the next (they have to draw the line somewhere). I have seen cases, where someone on one side of the street was paying $500 per year. If they moved across the street, they would have paid $1,500 per year. Most people who do not own their own home will move every couple of years. Be sure to talk to your agent about insurance costs from one area to the next. You would hate to sign a lease on a place that is $50 a monthly less, only to find that your insurance cost is now $100 a month more.
Of course, there is a bit more to it than that, but remember, this is the broad brush version of this story and if you want further detail, seek advice from an insurance company or agent, not a web article.

Car Insurance - Prevention Is To Protect Yourself

One of the first and most important things to do when purchasing a new car is to get a car insurance policy. In most countries, every vehicle needs auto or car insurance and this is required under the law.

It provides protection to the car and compensates the driver and other passengers on any damage or injury sustained or caused to others in an accident as well as other occurrences such as theft, vandalism and other unforeseen circumstances. Without proper auto insurance, the owner has to bear the full cost of these payouts.

Here is some information on the various types of car insurance available. These include personal injury protection, bodily injury and liability, medical coverage, collision, comprehensive, uninsured or underinsured motorist and rental reimbursement insurance policies.

A personal injury protection auto insurance policy is sometimes known as the "no-fault" coverage. It pays the driver and his passengers for medical expenses and treatments as a result of a car crash, regardless of who may have been at fault. Some of such insurance policy also reimburse on the replacement of services, lost earnings and even funeral expenses.

The bodily injury and liability car insurance is imperative to have as a driver. It covers any bodily injuries or property damages to others that may occur during an accident, for which the policy owner is the responsible party. Bodily injury damages include medical treatments or lost of wages whereas property damage includes damaged or loss of use of property.

Medical coverage focuses on the driver and passengers of the car. This type of protection policy will pay for any reasonable or necessary medical treatments and expenses for the driver and passengers. In addition, it may even be extended to include disability or pain and suffering compensation.

A collision car insurance policy pays for the cost of damage caused by a collision to the insured car that may affect its book value. This will include damages caused by another vehicle or any other stationary or movable objects.

A comprehensive auto insurance package pays for damages caused by theft, vandalism, fire and various natural disasters like wind, hail, flood, storm or lighting strikes.

Uninsured or underinsured motorist auto insurance will pay for any cost to an insured person, who is injured in an accident, caused by another person, who is uninsured or does not have enough car insurance to cover the full amount of the damages. This will also include a hit and run accident.

In the event that a car is damaged due to a vehicular accident, a rental reimbursement policy will pay a daily allowance for the fees incurred to rent another vehicle.

The price or premiums of the car insurance may vary widely with different insurance companies. There are several factors that may lower the premiums and these include:
a) clean driving records such as never involved in any accidents or no speeding tickets
b) the price of the car and the cost to repair the car or replace its accessories in the event of damage, theft or destruction
c) the purpose or usage of the vehicle as well as the frequency of using it
d) opt for the least number of installments to pay the premiums such as half yearly or even annually as monthly installments are the most expensive
d) drop the collision coverage as the vehicle gets older or is priced lesser

There are some car insurance companies that give multi-vehicle discounts or lower rates if there are two or more vehicles to be insured. It is also a common practice for these companies to give competitive discounts to drivers over 55 years of age or those who complete the safety driving courses with very good grades. Nevertheless, a responsible driver always puts in an effort to ensure an accident-free life on the road.

Article Source: http://www.article-emporium.ca