Archive for August, 2008
Factors That Affect Your Car Insurance Premium
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. Factors you CANNOT easily change that affect your car insurance rates: 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. Marital Status A married person will pay less than a single person with an identical driving record. Factors you CAN change that affect your car insurance rates 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 El cheapo car will cost less to insure than that status symbol SUV sitting on 24″ rims baby. Accident Claims A driving record that is clean and free of accidents will hold fare 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. 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. Other factors that help determine 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 . 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. They 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.insurancehelp101.com makes it easier because you can quickly see multiple companies and their rates for your particular situation.
Been in the Insurance business for over 10 years.
Car Insurance Facts
Deciding for auto or car insurance is not an easy task in the United States. Not only understanding a few factors can change the money you spend in buying car insurance but also helps to get the best quotes and value for your money. Understanding the car insurance can be sometimes very tricky and absolutely confusing and that sometimes lets you take decisions where you end up spending more money and usually the insurance you buy actually doesn t suit your needs. That is why here we have tried to simplify the general insurance facts for you so that you can develop a good understanding of this dreaded but compulsive subject i.e. Car Insurance. Here are some very important facts which you should always consider before buying car insurance. Appropriate Insurance Coverage is important Generally the half of insurance covers the liability factor that depends on how you are going to use the vehicle. The amount you pay decreases in case for ex. If you are commuting for home to office and vice versa for work and also if your driving record is clean without a speeding ticket. If your driving record is not clean you end up paying more money as insurance premium. The second half of insurance premium covers damage or loss to your vehicle along with comprehensive and collision coverage. Shopping around pays Shop for insurance ad always get more than none quote. There are in fact hundred of companies competing for insurance business from you and in many cases you can save hundred of dollars because of multiple quotes. So, shop around for quotes. Find out insurance discounts Many companies in general offer discounts to the customers. You can avail the discount if you are buying more than one insurance policy viz. auto and home insurance. You can also get discounts on factors like air bags, anti-lock brakes, daytime running lights and anti-theft devices. Consider higher deductibles You could lower your insurance bill by increasing your deductible but before that just make sure you can pay the higher deductible if you file a claim. Stacking coverage s while you file Insurance claim Stacking uninsured or underinsured motorist coverage s means you can collect from more than one of your auto insurance policies. Most states prohibit this practice, but there are about 19 states that either allow stacking or don’t address the issue either through legislation or litigation. Be sure to check your auto insurance contract to see if it’s allowed. Probably you are likely pay a higher insurance premium if you have stacked coverage. Car gives you benefits Insurers depend on the model of car you buy, its sticker price, features which may reduce maintenance or accidents or theft. So consult your insurer while you finalize which car to buy. Notify Insurer of Change If you wish to terminate the insurance coverage notify the insurer of the same. In many states you get penalty for the number of days you go uninsured so notify your company the change in writing or through phone, terminate the insurance and change the company after that. Go with your budget It is always recommended that you strictly follow your budget and choose the payment which fits into your budget. You can get monthly, quarterly, half yearly or yearly mode of payments and choose which suits your pocket.
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