Car Insurance Articles.

How Credit Score Affects Your Car Insurance Rates

2008-12-14T16:00:00.000-08:00

Did you know that car insurance providers can use your credit score as an underwriting factor when determining your car insurance rate? In fact, over 50% of all policy holders have lower premiums because of their credit score. Also, car insurance companies can now better accurately price their insurance. While many people view the use of credit scores as a negative factor, half of the people are saving money on their car insurance because of their credit score.

How Car Insurance Companies Use our Credit Scores

Car insurance companies are using our credit scores to assess the risk of insuring us. More and more car insurance companies are correlating our credit scores with how well we drive. Basically, the higher your credit score, the better driver you are.

Banks and other financial institutions had long used credit information in determining risk on business such as home loans, and the correlation between those financial records and insurance risks became clear.

The average cost of a claim for a person with below average credit is $918, 53% higher then the average claim. Likewise, the cost of an average claim from a person with above average credit score is $558, 23% below the average claim. Statistics sourced from the Insurance Information Institute (III.org).

A Good Credit Score can Save You Money on your Car Insurance

Many states require car insurance companies to tell consumers what top factors have been used in determining rates, but your insurer may not even understand the exact significance of some of the numbers, since they often come from outside sources. If you're interested in finding out if credit was used to determine your rates, contact your insurance carrier.

The better your credit, the better your car insurance rates will be. If you do have below average credit and feel you are paying too much, shopping around for car insurance could save you money. Using InsWeb's online quote form, you can compare multiple car insurance quotes quickly and easily.

Save on your Car Insurance!

2008-12-14T10:36:00.000-08:00

Save on your Car Insurance!

Nowadays auto insurance is really expensive. A typical insurance policy can cost a few hundreds dollars up to a few thousand dollars a year and this seems to get higher every year!

Auto policy costs and regulation vary significantly from state to state, but there are a number of areas that consumers are able to control and adjust to optimize prices and quality.

First is to check your credit rating. Good credit will be interpreted by insurers as less risky. So to ensure accuracy and to correct any inaccurate derogatory points, it’s important for consumers to order copies of their credit report from all major credit agencies.

You should also check your motor vehicle report. Like credit reports, state driving records may include inaccurate data on personal driving records, which are strongly considered when issuing respective individual and family auto rates. Drivers should report errors to both their state motor vehicle department as well as their insurance carrier.

Accident reports must also be double-checked. Occasionally, local law enforcement and insurance accident reports include mistakes that may result in a higher rate. Accident reports affect insurer’s decisions and rates on a cumulative basis particularly if the driver has tickets or accidents down the road.

Never let your coverage lapse because it makes a significant difference in rates. Separately, while deductible amounts initially save drivers in the event of a quick claim, they lost consumers more in the long run due to higher premiums.

Looking for package rates can also help you to lower your premium. You can save substantially by packaging all your insurance policies including auto, home and personal liability together with one company.

Safe drivers are rewarded by insurers. But then, make sure that your policy gives you a good driver discount. Matured drivers who are 55 years old and above, and students who carry a 3.0 grade point average or better receive lower rates from their insurance company.

Next is to take a safety-driving course. Make sure that you’ve registered for a course recognized by your carrier. It will not only cut your rates, but it will likely save in ticket fines, and reduce your risk of bodily injury on the road.

Don’t forget car pool credit because many insurers drop premiums with this, especially if you drive more than 10 miles roundtrip. In addition, you’ll save considerably on the rising prices at the pump and lend a hand to Mother Nature knowing that you contribute less to the air pollution.

Because insurance rates vary from car to car, you should check rates before buying a new car. The type of vehicle, engine size, parts costs and safety tests are all favored into insurance premium. Buyers often do not realize the big difference on rates until they drive off a lot.

Lastly, as a driver, you should make sure that you are receiving lower rates for safety features such as air bags and anti-lock crakes. Alarm systems or devices that disable or track vehicles may also qualify for discounts.

Though auto insurance is considered as the single largest insurance expense after health insurance, you can still save money by following the said ways.

Cheap Auto Insurance For Teenagers.

2008-12-14T10:14:00.000-08:00

Cheap Auto Insurance For Teenagers.

Freedom, as an abstract thing, it cannot be touched nor be held literally by the hand. But you can create or destroy it, or you can give it or take it away. But freedom is life. Would you have the heart to take it away?

Freedom comes in different forms. It can be a freedom of speech, freedom of loving or freedom of doing anything that you want as long as you are not stepping onto other’s freedom and rights. That means, even driving on the road also gives a sense of freedom, provided that you are not hurting someone or damaging any property, or else, it will be taken away from you.

Because younger people are the ones mostly involved in auto accidents, driving freely on the road cannot be given to them that easy. Or let’s put it this way: Insurance companies give high auto insurance rates for your teen son. Why? It’s because they are being considered as high risks on the road.

Car insurances can vary dramatically in price, so read on to learn how to buy car insurance that is affordable for your teen drivers or to know the few things you can do to help reduce the rates you pay for them.

First, make them realize the importance of keeping a clean driving record. Speeding tickets, traffic violations and accidents are the things that should be avoided to maintain a good record that will be eventually rewarded with lower premiums.

Another way to reduce their rates is by purchasing insurance with a higher deductible. The higher the deductible, the lower the premium.

If you are going to buy a vehicle for your teen, be sure to check the class where the vehicle falls into, do not choose a vehicle that falls into a sports class or higher rating class. A vehicle that is built well with extra safety features is a good choice.

In most states in the USA and some provinces in Canada, the graduated licensing laws have come into effect. The basic underlying rule is to restrict new drivers by limiting what their license will allow them to do.

A full auto license such as a class 5 may be issued to them but a letter designation behind it indicates that they are new drivers. These new drivers have nighttime driving restrictions, vehicle occupant restrictions and a 0 alcohol tolerance restriction to name a few. After specific period of time, they will be required to take an additional test to remove them from the new driver programmer.

To substantially reduce the cost of insurance of your teen driver, purchase a stand-alone policy from an agency that specializes in providing teen insurance. A stand-alone policy means that they carry their own insurance and not an additional driver to your insurance. These insurances keep the premium lower for teen drivers by placing certain concessions on their driving habits. They may require driving school, no driving after dark, or various other restrictions.

Statistics show that a 16 year old is 10 times more prone to accident than an adult between the ages of 30 and 59, so the reason of insurance companies is giving high rates to them is obvious.

Teach your teenager to become responsive and accountable. Make them earn your trust for the use of the car and make them accountable to pay at least a portion of their insurance premiums. A part time job that breeds maturity can be helpful.

A teenager must be guided in his newfound freedom. It’s an exciting thing for both of you, but responsibility always counts. The best thing that you can do now is to get online and research for teen insurance rates, so you can get them on the road.

Cut Your Car Insurace in HALF!

2008-12-14T05:16:00.001-08:00

How to Cut your Car Insurance in Half!

That is quite a bold statement to make, is it not? Actually, you can reduce your car insurance drastically and I do go into this in depth in the FREE ebook found in the link below but for now I want to touch on a few things:

Shop around. Most people just do not want to waste the time looking around for one rate after another hoping that they can find the lowest rate possible. In fact, it is not a waste of time when you can save hundreds of dollars for just a few hours of work at the most. Shopping around for cheap auto insurance is by far the best thing you can do in order to save money.

Read behind the lines. Do not be fooled by claims and big bold figures thrown at you as they often have smaller writing and other numbers hidden in the "fine print." Make sure you know what you are getting and be careful to compare apples for apples before making a decision because you may not be getting a good deal even when you think you are - use wisdom and take the time to read the fine print.

Remember to tell your insurance agent about your good safety record and the safety features you have in your auto. Many people forget to tell their agent the little thing that will save ten to thirty percent off their premium. Do not wait to be asked the questions by your agent as this may never happen, you tell them,.

I hope this helped, check out the link below to find real savings!

Save 50% on Auto Insurance! Get a FREE Auto Insurance Book