Car Insurance Sort Blog

A recent ranking of states in order of car insurance affordability puts Massachusetts at the top of the list, according to press release “InsWeb Releases 2010 Car Insurance Affordability Index.”  They compare car insurance rates in each state with the median household income in the state to get their affordability factor.  The lower the affordability factor, the less households pay for car insurance based on their budget.  Massachusetts’ affordability factor was the lowest at 1.84%, making them the most affordable state.  The rest of the top ten in order are New Hampshire, Vermont, Minnesota, Utah, Nebraska, Hawaii, Indiana, North Carolina and Virginia.

With an affordability factor of 6.93%, a full two percentage points higher than any other state, Louisiana is the least affordable state in which to insure a car.  Companies like Infinity auto insurance have to charge more based on the risk factors in that state, but residents’ median income does not balance with the insurance costs.  The other nine least affordable states are Oklahoma, Missouri, Washington D.C., New York, West Virginia, New Mexico, Kentucky, Arizona and Florida.  Many surveys rank where Americans pay the most and least for car insurance, but they don’t take into account how affordable the insurance is relative to median income.  By determining what percentage of a family’s income goes towards car insurance, we get a better overall picture.

If you buy or lease a new vehicle and don’t have gap coverage, you should probably look into it.  No one wants to increase costs when they compare car insurance, but gap coverage can be important according to Russ Heaps of Bankrate Inc. Car gap insurance covers the difference between what you owe on your car and it’s cash value.  If you drive off of the lot with a new vehicle and total it or your new car gets stolen the first night you have it home, without car gap insurance you’ll have to pay the difference between what insurance covers and what you owe.  Standard car insurance pays your lender an amount equal to your car’s current cash value.  Since the value of cars depreciates rapidly in the first few years, unless you paid a large down payment you are likely to owe your lender more than your car’s cash value.

There are six groups of people that would benefit from car gap insurance from a company like Infinity Auto Insurance.  Those who lease their cars, get a loan for 60 months or more, do not put at least 20 percent down, drive over 15,000 miles per year, roll any negative equity into their new car loan, or get a vehicle with traditionally high rates of depreciation should definitely look into this type of insurance.  Most insurers offer car gap insurance and the cost is relatively low.  It is smart to ask your insurance company if they offer gap coverage rather than buying it from a car dealership because the cost can be much higher at a dealership.  On an average premium payment, gap coverage might add $20 to $30 per year to your premium.  That will save you a lot of money if your new car is totaled or stolen and you end up owing $10,000 more than insurance covers though.

A.M. Best Company is one of a few independent agencies that rates the financial strength of insurance companies.  They consistently rate Infinity auto insurance with their excellent rating of “A”.  While many factors are used to determine the ratings, financial strength is one of the most important.  A.M. Best looks to see how companies stand on meeting the financial obligations they have to their policyholders.

Infinity auto insurance is part of Infinity Insurance Group along with Infinity Select Insurance and Infinity National Insurance Companies.  Their goal is providing consistent insurance products through excellent customer service and programs meant for customer satisfaction.  An A.M. Best rating of “A”, or excellent, shows that Infinity auto insurance is doing just as they set out to do.  Compare car insurance from other companies and you’ll surely find that Infinity is one of the best.