Factors That Affect Your Car Insurance Premium

Many factors affect the premium you will pay for auto insurance. Each is a statistically based risk for a specific population. The higher the risk associated with a person, the more he or she is likely to pay for coverage. We have elaborated on some of the risk factors below, but there are numerous others, including driver's gender, miles driven per year, purpose for using the vehicle (commuting to work, using for work, leisure only), etc.

• Age
  Statistically, drivers under the age of 25 are at greater risk of being in an accident than those over age 25. Drivers between the ages of 50 and 65 generally have the safest records.
• Gender
  Women are statistically safer drivers, but that trend is changing as more female drivers get on the road.
• Marital Status
  A married person will pay less than a single person with an identical driving record.

You can think about these factors and determine what you can do to change them in your situation. You may be able to save on insurance based upon these decisions:

• Geography
  Where you live makes a difference. Folks living in areas with little or no traffic are likely to spend less on insurance than those living in congested cities or suburbs because areas with a lot of traffic tend to see more accidents. Some neighborhoods also have a higher rate of vehicle thefts, which can result in a higher premium.
• Driving Violations
  Having an accident or moving violations on your record (speeding tickets, DWI, reckless driving, etc.) put you at a higher risk for accidents and will likely mean a higher premium. Some insurance companies will penalize you for your record for as many as five years from when the incident occurred. However, keep in mind, as your record improves, your premium will get lower.
• Vehicle Type
  A cheap car will cost less to insure than that status symbol SUV sitting on 24" rims.
• Accident Claims
  A driving record that is clean and free of accidents will hold far better for you than lots of tickets and/or accidents.
• Credit Rating
  Many insurance companies view having a poor, or even no credit history as suggestive of higher risk and thus, charge you a higher premium. Monitor your credit rating free to see if you can get a better score. A better credit score will save on insurance premiums.
• Occupation
  Insurers have statistically found a correlation between your occupation and risk. For instance, a newspaper delivery person is most likely a higher risk than the personal banker sitting at their desk all day.
• Education
  A higher education can save on your premiums.
• Driving distance to work
• Miles driven each year
• Years of driving experience
• Business use of the vehicle
• Whether or not you currently have auto insurance and how high are your limits
• Theft protection devices (often results in discounts)
• Multiple cars and drivers (another opportunity for discounts)

What can I do right now to make sure I have the lowest premium?

Shop around and compare quotes from different insurers. CarInsurance.com puts many insurance companies on one site so you can compare them in one place. Carriers base their premiums on their claims experiences, which naturally differ. One company may see your area as a higher risk than others may. Another may charge more because of your occupation. Shopping at http://www.carinsurance.com makes it easier because you can quickly see multiple companies and their rates for your particular situation. Where do I go for quotes?

One stop can take care of it all. Go to www.carinsurance.com where you can receive multiple quotes, pick the best price, and then purchase. Get covered immediately on-line or over the phone. It REALLY is the easiest way to purchase car insurance. Enter your zip code above.

Simple Steps to Filing Your Car Insurance Claim

Having even a teeny-tiny car accident can be one of life's least enjoyable moments. However, accidents happen, and sooner or later, we all have the experience of meeting one of our fellow road travelers up close and personal. Using the following seven steps to filing your claim will help you get over this speed bump as smoothly as possible.

They aren’t really accidents. They are more of an incident. Usually they are an incident that you would like to forget.

• Understand your policy before a loss, sit down and carefully read your insurance policy. Call your agent or company if you have any questions about what is or is not covered.
• Make sure everyone is okay and check to see if anyone needs medical attention. Even if your injuries are minor, you may still want to have them checked out at a hospital or with your family doctor. Minor injuries can become major, long-lasting injuries.
• Exchange information when you are involved in an accident, get the other driver's name, address, phone number, insurance carrier, and insurer's phone number. Be prepared to give the same information about yourself to the other driver. You can find insurers’ telephone numbers on the proof-of-insurance cards that should be carried on your person when operating a motor vehicle.
• Identify witnesses and ask witnesses to the accident for their names and phone numbers in case their account of the accident is needed.
• File an accident report and contact local law enforcement officers to have an accident report prepared. If law enforcement is not reachable, accident reports and detailed instructions are available at all police departments, sheriff's offices, your local Department of Motor Vehicles office, and on your local Department of Motor Vehicles' web site
• Notify your insurer by contacting your insurance company about the accident as soon as possible. An insurance adjuster will review the accident report to determine who caused the accident. If the accident was not your fault, you can have either your insurance company or the at-fault driver's insurance company handle the repair or replacement of your vehicle. If you use the other driver's company, you will not have a claim on your automobile policy and you will not have to pay a deductible.
• Do not release insurers too early. Do not relieve your insurance company of its responsibility until the damages are settled to your satisfaction. For example, have your insurance company handle the claim if the other party's insurance company questions its policyholder’s negligence or offers an unacceptable settlement.
• Consider these settlement factors.
  • Bodily injuries: You may be entitled to a monetary settlement for injuries caused by another at fault (liable) party. It can take several days for some injuries to become apparent.
  • Damages: The insurance company is responsible to pay for the reasonable cost of repairs to your vehicle. An insurance adjuster will assess the damage. Usually, insurance companies and auto body shops negotiate disagreements about what should be repaired. If you disagree with their conclusions, you have the right to obtain another appraisal at any auto body shop.
  • Appraisal clause: Most auto insurance policies include an appraisal clause, which can be used to help settle disputes about physical damage claims between you and your insurance company. (The appraisal clause does not apply for claims you file with the other party's insurance company.) If you cannot reach an agreement with your company, you or your insurer can initiate the appraisal clause. Your appraiser and your insurer's appraiser then select an independent umpire to try to resolve the dispute. Check your policy or ask your agent or insurance company for more information about the appraisal clause.

And that is it. While filing a claim is certainly no fun, following these seven steps will make the process almost as easy as getting free quotes and purchasing your car insurance at CarInsurance.com.

Do We Need Tort Reform For Auto Safety?

Europe has significant safety features for automobiles that are either standard or optional equipment for their vehicles. These features have not been introduced here in the US. Why?

Could a lack of tort reform be the culprit? It boggles the mind. This was a topic of discussion at an April 21, 2004, meeting of Advocates for Auto and Highway Safety.

What is tort reform and why does it affect car insurance? Tort reform is used by its advocates to describe a change in the United States civil justice system that will limit tort litigation and damages. By doing so, it will reduce litigation’s adverse effects on the economy.

Michael Sanders is the global director for automotive safety for DuPont Performance Materials. Some of the new technologically advanced safety features he told the board about were side curtain airbags, laminated glass, radar-based rear obstacle detection, rear view camera systems, anti-trap technology for windows, an advanced rear seat belt reminder, and pretension seatbelts. Many of these features are standard or optional equipment in Europe. The significance of this is that the market penetration of these features in Europe is deep while they have had relatively no impression here at home.

What is keeping these potentially important safety features out of the grasp of American drivers? You may be surprised to learn that the group believes our litigious society, the contingency fee system, and our court system are reasons such safety equipment is not available in the US and why most of the suppliers are in Europe. What can be done to solve the problem? Unfortunately, it will require more regulation. This seems to be a never-ending spiral of deeper and deeper red tape in order to simplify and safeguard our driving risks. An example of this is to have carefully drawn regulatory standards so that consumers cannot sue auto companies for failure to use such equipment in the past. The group felt that availability of such equipment as standard equipment (OEM) on U.S. cars is probably dependent on tort reform.

We may see a change in this arena.

The U.S. Class Action Fairness Act of 2005 shifts many large class-action lawsuits involving parties from state to federal courts. This may or may not be a good thing. Erasing the needless burden of state litigation with more bureaucratic federal litigation may subvert the constitution’s intent. This Act removes many class action lawsuits from the jurisdiction of state courts. Business groups had lobbied for the legislation, arguing that class-action lawsuits enriched trial lawyers.

The Act accomplished two key goals of tort reform advocates:

1. Reduces the likelihood that out-of-state defendants will be subject to what proponents deem are excessive verdicts, by reducing settlements that may occur in plaintiff-friendly local venues.
2. Enacts procedures for the review of coupon settlements, to reduce attorney's fees that are deemed “excessive” relative to the benefits actually afforded class members.

The Act gives federal courts sole jurisdiction to certain class actions in which the amount in controversy exceeds $5 million, and in which any of the members of a class of plaintiffs is a citizen of a state different from any defendant, unless at least two-thirds or more of the members of all proposed plaintiff classes in the aggregate and the primary defendants are citizens of the state in which the action was originally filed.

We will see if it leads to safer cars and lower insurance rates.

How Much Car Insurance Should You Buy?

Car insurance is not very exciting. Depending on which state you live in, it could be a smaller or larger piece of your budget than your neighbors across state lines.
How much insurance should you buy? Any insurance agent worthy of their salt will tell you that you should buy as much as you can afford. While this is a good rule of thumb, it is about as useful as a stockbroker’s tip to buy low and sell high. It might be sound logic but it does not get you any closer to an educated decision. A few filters need consideration in order to make that educated decision. First, what is the state required minimum coverage where you live? Second, what does the minimum cover? Third, what other coverage is available and can you afford it? Fourthly, what are you protecting?
You can use our easy Insurance Coverage Calculator or get an auto insurance quote to see the recommended coverage levels.

What is the minimum for your state?

You can get up to date state minimum requirements by following this link and selecting your state.

The first two figures refer to Bodily Injury Liability Limits. For example, 20/40 means coverage up to $20,000 for each person injured in an accident, up to a maximum of $40,000 forth entire accident, and then you could have 20/40/10 with $10,000 worth of coverage for property damage.

What do the minimums cover?

Now that you know what your state requires, what are you actually covered for once you purchase the minimum? Using the coverage definitions that follow, find the types of coverage required and see what your state says is the accepted minimum.

Coverage Definitions

Bodily Injury Liability covers other people's bodily injuries or death for which you are responsible. It also provides for a legal defense if another party in the accident files a lawsuit against you. Claims for bodily injury may be for such things as medical bills, loss of income or pain and suffering. In the event of a serious accident, you want enough insurance to cover a judgment against you in a lawsuit, without jeopardizing your personal assets. Bodily injury liability covers injury to people, not your vehicle. Therefore, it's good idea to have the same level of coverage for all of your cars. Bodily Injury Liability does NOT cover you or other people on your policy. Coverage is limited to the terms and conditions contained in the policy.

Comprehensive covers your vehicle, and sometimes other vehicles you maybe driving for losses resulting from incidents other than collision. For example, comprehensive insurance covers damage to your car if it is stolen; or damaged by flood, fire, or animals. Pays to fix your vehicle less the deductible you choose. To keep your premiums low, select as high a deductible as you feel comfortable paying out of pocket. Coverage is limited to the terms and conditions contained in the policy.

Collision covers damage to your car when your car hits, or is hit by, another vehicle, or other object. Pays to fix your vehicle less the deductible you choose. To keep your premiums low, select as large a deductible as you feel comfortable paying out of pocket. For older cars, consider dropping this coverage, since coverage is normally limited to the cash value of your car. Coverage is limited to the terms and conditions contained in the policy.

Medical Payments covers medical expenses to you and your passengers injured in an accident. There may also be coverage if as a pedestrian a vehicle injures you. Does NOT matter who is at fault. Coverage is limited to the terms and conditions contained in the policy.

Uninsured Motorist Bodily Injury covers bodily injuries to you and your passengers when the other person has no insurance or not enough insurance in a crash that is not your fault. In some states, there is also uninsured motorist coverage for damage to your vehicle. Given the large number of uninsured motorists, this is very important coverage to have, even in states with no-fault insurance. Coverage is limited to the terms and conditions contained in the policy

Personal Injury Protection covers within the specified limits, the medical, hospital and funeral expenses of the insured, others in his vehicles and pedestrians struck by him. The basic coverage for the insured's own injuries on first-party basis, without regard to fault. It is only available in certain states.

Property Damage Liability covers you if your car damages someone else's property. Usually it is their car, but it could be a fence, a house or any other property damaged in an accident. It also provides you with legal defense if another party files a lawsuit against you. It is a good idea to purchase enough of this insurance to cover the amount of damage your car might do to another vehicle or object. Coverage is limited to the terms and conditions contained in the policy.

Rental Car Reimbursement covers renting a car if your car isn't drivable or while your car is being repaired because of a covered accident.

What else is available and can you afford it?

Did you come across a coverage and think, "I need that but it isn't required by state law" when you were reviewing the coverage definitions? Chances are you did. Can your budget afford the additional expense of these protections? Alternatively, maybe more to the point can you afford NOT to have these additional protections? At CarInsurance.com it is easy to get multiple quotes all with a click of your mouse. Moreover, during the quoting process, it is simple to add or remove coverage to see how additional coverage will affect your budget.

You can learn more about Insurance Coverages by following this link

What are you protecting?

What assets need to be protected from being plucked away if you cause injury or damage? A) Your car itself. If this is a significant asset, or at least the bank you owe money to thinks so, then you will need comprehensive and collision. B) Your net worth. Do you have an enormous net worth to protect. If so, either take it out of your name and put it into a trust or buy all the insurance you can. If you have little or nothing to protect, then you can get by with less and still be financially responsible.

However, after you determine how much protection to get, always ask how much more it is for the next level higher. Very often, you can get significantly more coverage for very little cost.

Car insurance is not flashy. There is no "wow" factor and the opposite gender is not going to be impressed by the size of your policy. Nevertheless, not having enough can be the difference between financial stability and financial ruin. For what its worth, CarInsurance.com finds financial stability incredibly appealing.

Car Insurance How To Find The Best Policy

Car insurance and how to find the best policy for you (and the cheapest!). Find the best deal

Car insurance is something every car owner needs (it is required by law), but car insurance can be an expensive proposition. Depending on your age, driving record, the area you live in, the distance you drive in a given year, and type of car you drive, you could be paying thousands of dollars a year.

As with any purchase, it is smart to shop around, compare quotes and see what best suits your needs. The internet has simplified this process, with insurance companies offering online quote questionnaires that are simple to fill out and usually generate a quote amount quickly. These questionnaires are generally the same, asking for age, driving experience, accident history, whether you have been insured before, distance you drive in a year, distance you drive to work, and whether the vehicle is used for business or pleasure.

These questions give companies a basic profile of your driving record, but the questionnaire will ask other things you should not ignore. Be sure to note if you have any anti-theft devices, how many, and what they are specifically. This is less a problem with modern cars, since most come with at least an alarm pre-installed. However, the more anti-theft devices in the car, such as a kill switch, boomerang, even glass etching, can significantly reduce the amount you pay, especially if you live in an area insurance companies consider “high-risk”.

If you happen to have two or more vehicles, be sure note you’d like a multiple car discount. Generally, this won’t reduce your rate, but it won’t increase it much (if at all) either. If you’re planning on selling your other vehicle, one trick is to cover that vehicle for liability only, so you can get the discount.

If you’re part of any groups or organizations, see if you qualify for a discount. Many insurance companies will knock off a few dollars for people who are affiliated with professional organizations, alumni groups, even fraternities and sororities. Check with your credit card company, too. Credit card holders can also qualify for group discounts, depending on the card.

Consider combining your home insurance policy with your car insurance. Most companies will offer a deep discount if you do this, ranging from 5 to 20 %. This is usually an option you’ll find at the beginning of the online questionnaire.

Also be sure to check and see if the questionnaire enquires about any drivers education or defensive driving courses. The more you can show the insurance company you’re a safe driver, the more you will benefit.

One thing you should watch out for is redundant or unnecessary coverage. If you have a health insurance policy, you might want to avoid or reduce the medical coverage included in your car insurance policy. Consider getting only liability coverage on a car worth $1000 or less. You can also raise your deductible. Carrying a $500 deductible as opposed to a $250 or $0 deductible will lower your quote substantially.

Remember, you want to find the company that offers YOU the best rate. Be sure to compare multiple quotes from several different companies. What is the cheapest for one person is not always the cheapest for another.