Posts Tagged ‘cheap car insurance’

Just Call Your Car Insurance Company to Lower Rates

Friday, February 3rd, 2012

You may not think you have the time to call your car insurance company and make sure that you are getting the best rates.  Maybe you think that you won’t get your car insurance quote lowered or that the amount will be piddly and not worth your time.  Tara Siegel Bernard’s New York Times article, “Car policy for less, but only if you call,” highlights the story of a man in Arizona who was disappointed he waited so long to look for cheaper car insurance.

After retiring, the AARP suggested he get a car insurance quote from The Hartford.  He did, and they quoted him less than half of what he was already paying another company for the same exact coverage.  The man called his current company, Liberty Mutual, and they said that they could offer him a policy less than that of The Hartford because they had changed their underwriting standards.  He spoke with a manager to try and understand why he had been paying more than double and was basically told that he just had to ask and his rates would have been lowered.

Companies are unlikely to proactively call all of their customers eligible for lower rates, but let this retiree’s story show you how important a simple call to companies with which you do business can be.  Car insurance rates are based on many factors and the fact that this retiree had a good driving record, had been with Liberty Mutual for three decades, and held other policies with the same company helped his lower rates.  But everyone should check with their car insurance company and other providers and just ask if they can pay less for the same coverage.

Different Types of Rental Car Insurance

Friday, January 27th, 2012

I’ve written about car insurance for rental cars before, but it seems to be all over the headlines today so I thought I would revisit this topic.  Whether or not to add the car rental company’s car insurance is one of the biggest stressors you will face at the car rental counter.  The best advice, according to Fox News’ Jonathan Weinberg, is to do your research before standing at that rental counter.  It is very possible that your personal car insurance policy or even the credit card with which you rented your car will cover you in the case of an accident.  Weinberg’s article, “Secrets to unraveling car rental insurance,” offers some pointers.

The first thing you should do is check with your own car insurance company and see if the coverage you already pay for includes rental car insurance.  Keep in mind that you may have added expenses with your own company if you do actually need to use their car insurance.  You’ll have to go through the claims process, pay your deductible, and your car insurance rates could increase.  Many credit card companies offer the perk of car insurance coverage for your rental cars.  This is another case where you really need to do your research up front and see what they cover.  Some exclude SUVs and vans, others only offer secondary coverage meaning that they only pay for what your primary coverage does not.  You may even be charged a deductible.

It’s important to make sure that you have liability coverage as well, especially in case you get into a bad car accident with another vehicle.  Credit card car insurance does not cover liability in the United States.  Car insurance through your rental car company offers basic liability coverage, but you have to pay more for supplemental coverage which you’d need in the case of a major accident.  Your personal car insurance policy will likely cover liability as long as that is part of your overall policy.  While you will not be getting cheap car insurance if you purchase through the rental car company, you can rest assured that you will be covered and won’t have to worry about extra paperwork filing claims and paying for deductibles.  Weigh the benefits and see what coverage is best for you when renting a car.

Cheap Car Insurance for Car of the Year

Monday, January 9th, 2012

Detroit’s North American International Auto Show starts on Saturday, but in previews this week the 2012 North American Car of the Year Award was announced.  This year’s winner is the Hyundai Elantra, which has a starting price of $16,445.  With an estimated 33 mpg, fuel efficiency might have been one of the factors helping the Elantra win this award.  The Ford Focus and the Volkswagen Passat were runners up for Car of the Year.

Hyundai is thrilled with the award, but doesn’t see an increase in sales because of it.  Their facility in Alabama is already running at full capacity, partly because more than 186,000 Elantras were sold last year.  The company does believe that the Elantra’s Car of the Year award will help their brand solidify its name in the marketplace.  This information comes from the Associated Press article, “Hyundai Elantra wins car of the year,” by Jeff Karoub and Tom Krisher.

Since car insurance quotes are based partly on the type of car you drive, it is possible that cheap car insurance will be easier to come by for the Hyundai Elantra.  Since it is Car of the Year, it is valued with high safety features, less depreciation, and other factors that look good to car insurance companies.  The judging of this award was performed by fifty automotive journalists.  To be included, cars had to be new or have significant changes in the past year.

The Truck of the Year award went to the Land Rover Range Rover Evoque, which was the first win for the company in the nineteen-year history of the awards.  With a starting price of $43,995, the Evoque will have higher State Farm car insurance quotes that some other trucks.  The runners up in this category were the BMW X-3 and the Honda CR-V.  If you are a car lover, check out the Detroit Auto Show starting next weekend.

Less Education, Higher Car Insurance

Monday, November 14th, 2011

Many companies charge more for car insurance the less education you have.  A recent news story from Orlando’s WFTV, “Car Insurance Secret Could Cost You Hundreds,” says that your level of education and the type of job you have are very important when determining car insurance rates.  If you have Dairyland auto insurance in Florida or another state, check with them to see if they charge more based on your education or job type.  Not all companies do it, but if yours does, you could pay up to $1,000 a year more than someone with all other aspects the same as you.

The article’s example is of a woman who has a high school diploma as her highest education and is working a blue collar job in a cafeteria.  She pays $100 per month to insure her 2001 Honda Civic even with a bare minimum policy and a clean driving record.  She worries that if she drops her insurance, she will have her license suspended.  The news station located someone with a similar age, driving record, sex, and location as the first driver.  The second driver however, had a PHD and a very high paying white collar job.  She was able to get insurance quotes as low as $50 per month.

The insurance industry says that charging more for drivers with less education and lower paying jobs is justified because they tend to be higher risk.  But Florida’s insurance commissioner disagrees and has asked the state’s legislature to ban this controversial practice.  Look for a cheaper car insurance company that doesn’t charge more based on your education or type of job.

Cheap Car Insurance Factors Into Best Car Ratings

Thursday, June 23rd, 2011

The U.S. News & World Report “Best Car for the Money Awards 2011″ factors a lot of things into their best car rankings.  Car makers realize that value is tops on many consumers’ lists when they are looking to purchase a new car.  With money tight and consumers driving their used cars longer than ever before, new cars need to add a lot of value to their lives before consumers decide to make a big purchase.  The top car in each category not only is a great car, but also has low ownership costs over a five year period.  Cheap car insurance and maintenance costs are taken into effect along with other ownership costs.

Some of the highlights were the Honda Civic for Best Compact Car, the Honda Fit for Best Hatchback, the Ford Taurus for Best Family Sedan, and the Ford Fiesta for Best Subcompact Car.  The Kia Sedona was the Best Minivan, the Suzuki Equator was the Best Compact Truck, and the Chevrolet Silverado 1500 was the Best Full Size Truck.  In the SUV department, the Mitsubishi Outlander Sport was the Best Compact Crossover, the Chevrolet Traverse was the Best Midsize Crossover, and the Chevrolet Tahoe was the Best Full Size SUV.  For the rest of the Best Cars and more detail on the winners, see the full article.

One interesting fact is that Honda and Toyota are being challenged by newer, smaller companies like Kia, Mitsubishi, and Hyundai.  The Buick Regal’s win for Best Upscale Sedan was quite an upset for luxury lines like Lexus and BMW.  All automakers seem to be adding value to the cars they sell in order to impress consumers.  This study took into effect more than just the value added to cars.  A State Farm auto quote, or one from another insurer, makes a big difference in the value your car brings.  Added costs like car insurance, fuel costs, maintenance costs, and depreciation also make a difference in the value that the car will bring to a consumer.

State Farm Car Insurance Quotes Increase With Multiple Violations

Tuesday, May 24th, 2011

Your car insurance rates from companies like Infinity auto insurance will increase dramatically the more traffic violations you receive, according to Chris Bissell of Fox Business.  In the article “Car Insurance Rates Soar as Tickets Pile Up,” there is a comparison of insurance rates with no violations to those who have one, two, and three driving violations.  Violations include speeding tickets, running red lights or stop signs, DUIs or DWIs, failure to stop or yield, reckless driving, wrong way driving, illegal U-turns, running from the police, illegal passing, not using child restraints, and more.

The average premium for an insurance policy with one-car and one-driver last year was $1,119.  That rate increases 18% with just one traffic violation to $1,318.  Cheap car insurance gets even harder to find after two traffic violations, as the average car insurance paid increases 34% to $1,497.  After three traffic violations car insurance rates are 53% higher than without any traffic violations at $1,713.  The more violations that drivers have, the more likely they are to cost car insurance companies money through crashes and increased claims.  One of the best ways to get cheap car insurance from a company like Infinity auto insurance is to drive carefully and avoid traffic violations.

A DUI or DWI is the worst violation for increasing car insurance rates pretty much across the board.  But car insurance companies do put a different weight on other violations when determining car insurance rates.  State Farm car insurance quotes take many factors into consideration and may place greater importance on some traffic violations over others.  Just about anyone can get car insurance now because competition is so high among insurers, but those with multiple violations can expect to pay more regardless of who insures them.

As Gas Prices Go Up, State Farm Car Insurance Quotes Go Down

Monday, March 14th, 2011

You may not see the correlation at first, but it seems as though car insurance rates decrease as the price of gas just keeps going up.  The reason is plain and simple.  When gas prices skyrocket like they are right now, people drive less.  The less people drive overall, the less companies charge you for car insurance because accident and injury rates also decline.  State Farm car insurance quotes and those from other companies are likely to go down as gas in many places climbs over $4/gallon.

An article from Insurance.com wrote about a similar trend when we last saw hefty price increases for gas in 2008.  “Rising Gas Prices May Lower Car Insurance Rates” goes into more detail with the reasons why it might be easier to get cheap car insurance when the price of gas is high.  People are searching for alternatives to driving so much, including taking public transportation, carpooling, and purchasing hybrid cars.  All of these things account for fewer miles being driven by cars overall which makes car insurance rates go down.

If you are driving fewer miles than you used to, let your car insurance company know or shop around for quotes from other car insurance companies.  Driving less means that there is less potential for accidents and less money that companies could have to pay out for injuries and car damage.  Shopping online offers you the benefit of comparing quotes from many different car insurance companies, such as Erie Insurance.  If you think you could lower your car insurance rates because you drive less overall, get some car insurance premium quotes.

Texans May Find Cheap Car Insurance

Tuesday, January 11th, 2011

A recent report from the Texas Department of Insurance was highlighted in a press release entitled “Texas Regulators: Auto Insurance Market is Competitive, Rates Remain Stable”  posted on Yahoo!’s finance section.  As the market becomes more competitive in Texas, Texans should be able to find cheap car insurance.  Nine insurance providers came into the Texas car insurance market between January of 2009 and December of 2010.  In addition to that, existing insurers in Texas introduced twenty-two new products for personal auto insurance coverage.

Overall car insurance rates in Texas were stable in 2010.  Fifty-six percent of the rate filings showed no change in price, thirty percent showed increases, and fourteen percent showed decreases.  Customers looking for State Farm car insurance quotes or quotes from other insurers should be satisfied that overall car insurance rates have remained stable in Texas.  With that information and the fact that new insurers are making rates more competitive, Texans have received better news in 2010 than the three percent increase of 2009.

There was a huge decline in 2010 in the number of Texans enrolled in the state’s high risk car insurance pool.  From more than 31,000 policies issued in 2005 to just over 8,000 in the first eleven months of 2010, Texans are finding car insurance elsewhere.  This is most likely due to the increased competition in the car insurance market.  While the state will further research this decline, it is a good sign that fewer Texans have to turn to this last resort high risk car insurance through the state.

Progressive Auto Insurance Tracks Drivers

Tuesday, December 14th, 2010

An innovative new device can help drivers get cheap car insurance.  Jolie O’Dell’s article “Insurance Company Tracks Driver Responsibility With In-Car Device” on Yahoo!News describes the “Snapshot” program.  The device plugs into cars to track the responsibility of drivers.  If it shows that you are responsible, you can get up to 30% off of your car insurance premium.  Progressive auto insurance is offering this device in New York right now, but hopes to bring the program to other states soon.

Progressive monitors drivers for 30 days with the small device that plugs right into the diagnostic port in your car.  The “Snapshot” tracks what time of day you drive, how frequently you drive, if you make sudden stops, and other driving behaviors.  Drivers who drive less often or during the least busy driving times will get larger discounts off their car insurance premiums.  There is no GPS with the device so drivers don’t have to worry about being tracked or losing privacy.  This high-tech device may be used by other insurance companies in the future.

Rental Car Insurance Companies

Wednesday, November 10th, 2010

Recently a troubleshooter from MSNBC wrote of his quest to get a refund for a traveler in Mexico taken advantage of by one of the top rental car companies.  Christopher Elliott’s article, “I thought car rental insurance was optional,” details the American tourist’s battle when he was charged more than triple his online quote from Hotwire.  Car insurance companies often cover insurance on rental cars, so unless your plan does not it doesn’t seem like you would need additional rental insurance.

After a Hotwire estimate of $113 for a weekly rental car in Mexico, the tourist headed down there only to have the car rental price increased, mandatory insurance tacked on, and a service charge larger than both the other amounts.  He was also given some more miscellaneous fees above the estimate for a total of $397.  While he tried to fight the charges at the rental company in Mexico, it was to no avail.

The author, a travel writer, says that regardless of what happened in Mexico the tourist should have been charged the amount estimated by Hotwire.  Any discrepancy between the cheap car insurance rate and that charged by the rental company should have been cleared up between the two companies.  It’s possible that one of the Mexican workers tried to pull a fast one because a rental car company representative in the United States said that car insurance was not mandatory.

Some tips for avoiding such a situation when you are traveling follow.  Research and get coverage and estimates in writing before leaving for your trip, both from your car insurance company and any quotes you receive online or from the rental company itself.  If you think you are being forced to purchase insurance that is optional, back up from the counter and make a phone call to the company’s customer service number to see if the situation can be rectified.  If that doesn’t work or you’ve already paid for the coverage, send emails detailing your complaints to get a paper trail started.  By the way, the tourist was credited the amount above his estimate after this story.