What Is The Average Car Insurance Cost?

Reader’s Question:

What are the factors affecting the average car insurance cost?

Laura

Augusta ME

 

A lot of people are wondering about the average car insurance cost. According to a website known as CPI or CarInsurance.com Premium Index, the average car insurance cost as of May 2009 is $1,837 which is slightly higher compare to that of last May 2007, which is only about $1,600. Based on these statistics, the rates have continuously increased. The average may continue to rise but it will certainly vary depending on some factors that will affect the price range of the premiums.

One major factor is age. Young drivers who are at their teens or are below 25 years old have one of the highest insurance premiums. This is due to the fact that these individuals are still considered inexperienced in terms of operating the vehicle. Other than that, they also tend to be aggressive behind the wheel, putting them at higher risks for accidents. Their lack of appropriate driving skills also affects the average car insurance cost.

Another factor is gender. There is no denying that men tend to be more aggressive than women, when they are behind the wheel especially when they are around 25 years old and below. This is the reason why their average car insurance cost is slightly higher as compared to women.

The marital status can also affect the average cost of car insurance. Married individuals tend to drive more carefully when they are behind the wheel, especially when they have kids and other family members on board. This is regardless of the age.

Where you live is also a factor. Different states have different rules when it comes to the cost of car insurance premiums. The price of your car insurance will depend on the area you live in and the limits that were set by insurance regulators otherwise known as the Department of Insurance.

Auto Insurance Ratings For Cars

Reader’s Question:

My boyfriend just recently got promoted. As a bonus from the company, they will provide him with a brand new car. The problem is that car insurance will be answered by my my boyfriend. We are excited but we need to be practical. My boyfriend decided to go for a car that is rated by insurance companies as good to cover. Can you please help us with how to get insurance ratings for car?

Paul and Donna

Sacramento CA

Congratulations to Paul for his promotion and soon to be new car. It is good to hear that you are both practical in choosing your new car. It is true that auto insurance can be a bit costly so it is always best to know the insurance ratings car before you buy your dream car. You do not want to lose your dream car because you no longer can afford the insurance premium.
There are 3 key areas to which car insurance companies evaluate a car:

• Liability – this will measure your bodily and property damage liability coverage rate
• Damage and theft – this will affect the calculation of your collision and comprehensive premium
• Safety – vehicle safety discount your car can get

If the insurance ratings car for liability is excellent then you can be charged with lower than the standard premium. If not, then definitely you get higher than the standard. So your goal should be to get a car that would the most only cost you a standard premium.

Insurance companies has a list of ‘hot cars,’ which refers to cars that have very high statistics of being stolen. If you get a vehicle that is included in the list of ‘hot cars,’ you will definitely get a very low insurance ratings car for damage and theft area, which means you will be charged significantly higher than the standard premium for your collision and comprehensive coverage. You can totally skip these coverage but if your car is brand new, it is advisable that you should get them. So be sure to check the ‘hot cars’ list before you decide on a particular car model.

The safety factor refers to the discount an insurance company will give for the medical payments/personal injury protection (PIP) portion of the premium. Only 16 states required the PIP coverage. If your state does not require this, you can also skip this coverage. But if you like to have these in your policy, make sure you get a car that has safety features like airbag, anti-lock brakes, and others. Having these safety devices can guarantee you discounts.

Why Does an Auto Insurance Company Check My Credit Report?

Reader’s Question:

My friend told me that credit report affect auto insurance rate. Is it true that car insurance companies check it?

Vic

Seattle WA

Car insurance rate depends on different factors like age, driving record, make and model of the car and gender. By looking at these factors, you can easily figure out why are these being considered by car insurance companies. You’re probably surprised to find out that credit history also affects car insurance rate. Poor credit history or lack of credit history are likely to be viewed by car insurance companies as high risk drivers and will be then charged with high insurance rate.

Car insurance companies are permitted by law to use credit history as additional information in predicting the risk pose by drivers. If you have stable credit history where you pay your bills on time using your credits, you are less likely to file claim against your car insurence policy and you are likely to pay your insurance payments. However, consider a case where you lost a job 6 months ago and your credit card payments fell behind but you caught up, you may end up paying higher car insurance rate. On the other, if you don’t have credit history, car insurance companies may end up considering you as a possible risk because of lack of credit information.

There are ways to improve your credit history. Clean up your credits as soon as possible and pay the minimum amount that is due every month. Avoid spending beyond your means. If you dont have any credit record, get some. This factor may be preventing you from purchasing cheap car insurance rate. Without credit history, car insurance companies won’t be able to evaluate you and instead consider you as a risk. With credit, you can show car insurance companies that you are responsible in paying your credits. Lastly, monitor your credit reports. You can get a free copy of your credit report from the credit bureau, which the car insurance provider used. You can dispute if you feel that the information given is not correct.

How To Compare Auto Insurance Companies Online?

Reader’s Question:

Im trying to see which car insurance company is best for me. Can you please tell me what to know? Thanks.

Ben

Boston, MA

We all know that in today’s tougher times, we need to find more ways to stretch our precious, hard-earned dollars. Discretionary spending need to be minimized, if not totally eliminated, and you would also have to re-evaluate the bills you’re paying for, which includes your auto insurance policy. The best way to know if you’re overspending is to compare your insurance rates with what other providers are offering, by running free car insurance quote checks on the Web specifically through auto insurance portals or websites. Sometimes, the best solution towards costly insurance policies is to switch to a more affordable insurance provider.

You’re ability to compare rate quote offers and policies from as many auto insurance companies as possible, is vital to getting a more affordable insurance policy. Rates can vary greatly between carriers. Car insurance portals are a great tool since you will only have to run a search once using information such as your age, the car you drive, zip code etc. and within a few seconds, you are provided a listing of all the rates available to you. This makes it easy to spot the carrier that best fits your price-range.

Auto insurance company ratings are also a good indicator of how well a company conducts its business, and is readily available on the websites of independent raters such as Moody’s, J.D. Powers, among others. This is crucial as you don’t want to end up paying good money on a company that might end up bankrupt soon, or those that would cheat their way out of paying you rightful claims. Auto insurance company ratings also give valuable information regarding their competitiveness and overall quality of service, which should not be sacrificed in pursuit of low-cost car insurance coverage. This will maximize your ability to get a cheaper insurance company without losing important auto insurance coverage.

Talk to your agent about available discounts, like from a credit union membership or profession like a teacher, good students and military.

Also, raise your deductible amount to the highest level you feel comfortable with, this is the best way to lower your annual premiums.

Tips for Buying Auto Insurance And Lower Rates

Reader’s Question:

I’m a student here in Utah, are there any tips for buying auto insurance that I need to know before getting my own auto insurance policy?

Francis

Salt Lake City, UT

If you’re thinking of buying your own auto insurance policy, you have to be prepared for the usually high premium rates. Typically, students under the age of twenty-five are almost always offered a slightly higher rate than most older and more experienced adult drivers. It has been documented that men drivers under the age of twenty-five are more involved in accidents than any other age groups–which would evidently result in very expensive auto insurance premiums.

So, before considering having your own auto insurance policy, be sure to look around for various auto insurance quotes, so that you’ll be able to get the most affordable deal possible. You should remember that having an auto insurance policy is a requirement in every state. And if you get caught driving without one, you will surely get into a lot of trouble with the authorities.

Being involved in an accident without auto insurance can result in a lot of financial obligations that may surely be too much for a young student to handle. Imagine the legal fees that you’ll be paying should you get sued, or the medical expenses for injured persons or expenses for damaged bills. But having auto insurance with ample liability coverage gives you the guarantee of financial assistance should you get involved in car accidents in the future. And I think that buying a policy as soon as possible is a very wise idea.

There are a lot of tips for buying auto insurance policies.

Good grades in school translate to discounts. Make sure that you pass an accredited driving school, so you will be eligible for more discounts. And avoid getting into accidents, of course. Make sure that your car is packed with the best safety features like airbags and automatic seatbelts for more protection against injuries and anti-theft alarms to lower the risk of it being stolen. More discounts are also offered to drivers who have multiple insurance policies with the same insurance company.

So, go on and start researching for more tips for buying auto insurance. Try surfing the web for more information and more free auto insurance quotes. Good luck and drive safe!

How High Of a Deductible Should You Get?

Reader’s Question:

I was told that the most effective way to lower your auto insurance premium is to increase your deducible. What is deductible? How much should I get?

Mike

Miami FL

In the vehicle insurance industry, deductible is defined as the amount auto insurance policy holder needs to pay before an insurance provider kicks in to pay a claim. In other words, it is a method auto insurance provider use to share risk with the policyholder. This is another way auto insurance providers do to make vehicle owners take some responsibility in order for them to be a responsible driver therefore reducing the chance of a claim.

Deductible is always present when you are planning to get a vehicle coverage. These two car insurance coverage is the comprehensive coverage and the collision coverage. If you wish to buy this coverage, you have to set a deductible amount in which if your vehicle acquires damage, you will pay a certain amount before your auto insurance provider kicks in. For example, if the damage cost $2000 and your deductible is $500, you will have to pay $500 and your vehicle insurance carrier will pay for the remaining balance which is $1500.

In reality, having a high deductible can make sense especially if you live in a safe neighborhood or if you drive in an area where there is minimal traffic. As a matter of fact, it is wiser to let your vehicle insurance company handle major accidents rather than to let them pay for a one time minimal damage that you know you can pay by yourself. Another reason why having a high deductible is good is because it can reduce your premiums up to 35%.

It is always advisable to get the highest deductible that you can afford.

Another coverage which has a deductible is the Personal Injury Protection. If you live in a no-fault state, you are required to have this kind of policy coverage. It works something like the two coverage discussed above (in terms of saving money), meaning if you set its deductible to high, your annual premiums can also decrease.

Auto Insurance Quotes Online

Reader’s Question:

I don’t have much confidence in going online to buy my car insurance here in Louisiana and I don’t understand why everyone is doing it. What advantage do I get from purchasing car insurance online just like what everybody does?

Feluz

Shreveport, LA

The most apparent advantage from purchasing online car insurance is that it is quite easy. The usual driver spends half less time when they shop for their car insurance policy online. So if you would look for your car insurance by calling car insurance companies over the phone, it would take twice as long. When you look through the Internet for your online car insurance in Louisiana, all of the information you should have to make a smart decision is readily available.

If you will shop for car insurance by calling every car insurance carrier, it could end up taking hours. You may obtain the same car insurance quotes, from the same car insurance carriers, in just a few minutes by going online. You can do this by visiting a Website that would return various car insurance quotes. You have to fill out a form and they will send it to the car insurance carriers. They will assess it and provide you car insurance quotes according to the information you have submitted.

The car insurance quotes you will get make searching the most affordable one an awfully simple process. However, you also have to be certain that you purchase sufficient car insurance coverage and the company has high customer service rating. You can also see the customer service ratings online and these are quite essential when doing business with a car insurance company.

How Speeding Can Affect Your Car Insurance Connecticut

Reader’s Question:

I got a speeding ticket here in Connecticut and I worry that it can affect my car insurance right away. Does this single traffic citation be a reason for my car insurance to go up?

Geoffrey

Greenwich, CT

Whether your car insurance in Connecticut will go up or not will depend upon the circumstances of the speeding ticket you were cited for. It will only have an effect on your car insurance if this is a serious violation and you get convicted for it. For instance, if you are found guilty (or plead guilty) for speeding and pay the necessary fine, the court will notify the Department of Motor Vehicles (DMV) in your state so that your violation will be put on your driving record. Your insurer can be aware of your moving violation if they check your motor vehicle record (MVR) when your car insurance is up for renewal.

Depending on the rating system of your car insurance provider, a particular traffic offense, like speeding, will have an effect on your car insurance premiums. For instance, that one speeding ticket you got could not have an effect on your premiums, but it would most probably remove any good driver discount that you have. But if your MVR shows that you have had a conviction for a moving violation in the past, then this traffic citation that you have now can be a reason for your car insurance premiums to go up.

Majority of the states let every insurer to establish their own rating system and make a decision which moving violations and how many offenses or accidents could have an effect on the car insurance premiums of their consumers. The insurers should file their pricing with the state insurance regulator to be authorized.

How to Find the Best Insurance Company

Reader’s Question:

I’d like to know how I can choose between auto insurance companies effectively. How do I know I’m getting the best deals and reliable service?

Donatello

Portland, OR

Good question. Getting the right auto insurance company is just as important as getting the best rates. However, this is easier said than done to a lot of people. Listed below are a few useful tips to maximize your chances of getting the right kind of auto insurer for you.

1. Independent Rating Agencies - Moodys, J.D. Powers, A.M Best, and Standard & Poor offer a wealth of information to consumers by rating/scoring the performance of different companies. Scores fall under categories such as billing and payments, customer service, and pricing. This can help you get a good idea about the insurers you should be doing business with.

2. Online Comparison Websites - Use these to obtain free quotes and compare offers coming from many different insurers. This is a good way to maximize your ability to spot the best-priced policies in the market.

3. Better Business Bureau (www.bbb.org) - This is another resource that consumers should take full advantage of. The BBB helps by educating people about good business and learning about complains against certain companies. This will help you become a smarter consumer.

4. Ask Around - Referrals can be a great way to find out about the best auto insurance companies. Ask your friends, relatives and co-workers. Doing this can lead to some valuable insights that can help you choose your auto insurer effectively. You get instant feedback from their actual experiences with the companies they went with as well.

Auto Insurance Claims Process Georgia GA

Reader’s Question:

My friend was involved in an accident in another state. It was not his fault and too good he’s doing quite well now. He did what he’s supposed to do in filing for auto insurance claims. Now, it’s taking time for the auto insurance claims to be processed. I just wanna know, normally, how long does car insurance claims process take place? My friend is from Georgia too and the accident happened in Florida.

Arthur

Augusta-Richmond County, GA

I’m happy that your friend is doing well. I’m hoping for his speedy recovery.

As to your question, I can’t say how long the normal process would be. I would say, I cannot specifically say if there’s a normal process after all.

The process for auto insurance claims takes some time that is the fact that I know. There are several factors that you need to consider on why it’s taking some time. Let’s take these factors for example: the extent of the damage or the amount of the damage that is involved in the accident; number of people (or claimants) that are involved; cooperation of the party’s involved etc. These are just some of the factors that affect the process of auto insurance claims.

I would say it’s best if you can consult with the auto insurance agent or the claim adjusters to give you an idea on how long it will take for the claims to be settled. I wish you good luck for your friend.

Tags: auto insurance, car insurance claims, car insurance online

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