What Are Auto Insurance Rates For Two Cars?
Reader’s Question:
My mom is so busy and she wants me to take care of insuring our two cars. Will there be differences in the auto insurance rate quotes of the two cars?
Nancy
Manhattan, KS
One consideration in insuring a car is the feature of the car itself. The insurance rate that will be quoted is a risk to the insurer. You might have the same car make but the model might be different. A newer Toyota car is more expensive to insure than an older Toyota car. A brand new car which is priced higher than second hand cars will surely have expensive premium car insurance as the insurer may lose more money if a brand new car will be repaired for some damages. Different car make and models would obviously demand different insurance coverage. A brand new Ferrari sports car which is more expensive than many other cars definitely will have a higher car insurance premium.
There are also cars which are reported to be the most likely to be stolen. In 2007 these included Honda Civic, Honda Accord and Toyota Camry. These would also command higher auto insurance rates since it would be a great loss to the insurer once replacement is needed for lost cars. So, if your car is one of these models, be prepared for a higher insurance payment. The safety and security features of your vehicle would also have some discount factor on the insurance rates. Lower auto insurance rates could also be obtained if your car has steering wheel locks, alarms, airbags, and other safety gadgets. I hope you could help your mom on deciding which insurance company to insure your cars.
Should You Buy Auto Insurance From A State Insurance Company?
Reader’s Question:
Should I buy my car insurance from a state insurance company or buy it locally?
Miranda
Detroit MI
The decision to where you buy your car insurance depends upon your needs. Whatever insurance company you choose for your car insurance needs you have to be certain that you buy your car insurance coverages from an insurer that has good auto insurance rating. The company needs to be reputable and reliable.
When you buy your car insurance locally in your state generally you are either buying it through an independent car insurance broker or directly to an insurance company. Independent brokers have relationships with the insurer and they offer their products.
There is not much difference between buying your car insurance from a national insurance company or buying it locally. In fact, you can buy national auto insurance from a local broker. So, it would really depend on your needs whether you need to buy it from a national carrier or buy it locally.
Remember whats more important when looking for an insurance company is the auto insurance rating with that company. When looking for insurance your state’s insurance regulator may publish a guide that provide information on the different policies offered by various car insurance companies in your state.
Will My Auto Insurance Increase After An Accident?
Reader’s Question:
My cousin has always been a good driver until he got into an accident he caused recently. He was worried about his auto insurance, that it would just increase if he renews his policy. How much will his rate increase after a driver has gotten into one accident?
Missouri
James
Kansas City, MO
If a driver has been into one vehicular accident, it’s possible that the driver’s auto insurance rates will increase but it varies from state to state and from one company to another. However, it will so much depend on the kind and seriousness of the car accident and who is found to be at fault. If the driver was drunk during the accident, there’s a chance for the policy not to be renewed. He can still be able to get auto car insurance but it would be more costly.
In case the driver has had a good driving record, like your cousin’s case, most auto insurance providers won’t necessarily increase their rates if a driver is found to be at-fault in a rather minor car accident, especially if the driver has been with them for five years. The rate increase depends on several factors like the Missouri state law and the rating plan of the auto insurance provider.
Under the state law or by an auto insurance provider, a minor or first-time vehicular accident may be forgiven. So if you are purchasing auto car insurance, make certain to ask if a specific auto insurance provider has a first-time accident forgiveness program and if so, you might be eligible for it. Then again, there may be serious auto insurance and legal penalties if the accident involves serious physical injuries and if the at-fault driver is under the influence while operating the vehicle. There could be a significant increase in auto insurance rates or even a termination of coverage, subject to laws of the state. Apart from that, there may be huge fines and even jail time necessary.
What Are The Different Types of Auto Insurance Policies?
Reader’s Question:
What are the types of auto insurance coverage that I should know about before I sign up for a policy here in California?
Justin
Oakland, CA
Auto insurance in the state of California has various types of coverage and this will be based on the kind of auto insurance claim that would be paid out to the policyholders and other people involved. A type of auto insurance coverage would be the personal injury protection or what is commonly known as PIP. PIP will give protection to the motorist or the policyholder and others, which depend as to who was in the vehicle when the accident happens. PIP will also give medical coverage no matter who caused the accident.
One other type of auto insurance coverage would be the liability insurance that will cover the damages sustained by the other driver in an accident wherein you are at fault. In case there will be a lawsuit filed against you, your auto liability insurance would also provide legal assistance. Bodily injury and property damage are two kinds of liability insurance. Majority of auto insurance providers in California offer the same auto insurance policies. These types of auto insurance coverage will pay for anyone who is injured or killed in the accident in which you are at fault. You might think that the price of auto insurance is expensive when you buy coverage; however, it would be nothing in comparison to the amount you would have to shell out in case you don’t have any auto insurance coverage.
What Kind Of Auto Insurance Will Pay For Vehicle Fire?
Reader’s Question:
What kind or auto insurance will kick in if I lost my vehicle in a fire? Will the auto insurance company pay me what my vehicle’s worth?
Rashid
Danbury, CT
Good question. Your policy’s comprehensive insurance clause will be the one to cover you in this case. Comprehensive coverage is a portion of your auto insurance plan that protects you against losses resulting from incidents not relating to a collision. These incidents would include automobile theft, vandalism, hail storms, tornados, loss due to other natural disasters, and fire.
Assuming that you have a good auto insurer there in Connecticut – and you purchased the best auto insurance policy they have to offer – then there should be no reason for you not t get compensated for the loss of your vehicle. However, do take in mind a few things: first, you will have to pay a deductible once you file a claim. This deductible may or may not become a big deal depending on the actual value of your vehicle. If you’re vehicle is only worth $1000 then it may not be worth it to put up a $500 deductible for a claim.
Second, you’re auto insurer may pay you for the actual cash value (ACV) of your lost vehicle. This may be different than the actual worth of your vehicle when during the time you insured it. This difference arises from the fact that your vehicle’s value depreciates over time.
It’s highly recommended that you read your policy’s terms and conditions carefully. Also, don’t hesitate to file that claim if you’re vehicle is fairly expensive. That is the whole reason you got auto insurance coverage in the first place.
Can I Drive My Car Without Auto Insurance Coverage?
Reader’s Question:
Will I get in trouble here in Mississippi if I drive around without auto insurance coverage? I will buy coverage if I really have to but if it isn’t a state requirement then I would rather spend that money elsewhere. Thanks!
Karen
Jackson, MS
The short answer is YES. Mississippi, like most states these days, have financial responsibility laws that require every motorist to be able financially capable of paying for injuries or damages they cause in an auto accident. That means it’s illegal to be operating a vehicle if you don’t have auto insurance coverage. So you really need to buy auto insurance since it’s the law.
With the kind of economy we have these days, it is quite understandable (even commendable) that you are very hesitant to throw good money on something unnecessary. So here are some tips on how to get auto insurance coverage without breaking your budget:
1. Compare Rates Online – Using auto insurance portals (like this website) that offer an auto insurance free quote. This will help you find the insurers that have the lowest rates out there.
2. Simplify Your Coverage – Some people only need liability coverage. If you don’t think you need full comprehensive coverage then remove the excess of your policy. Personal Injury Protection (PIP) is one example; a good medical insurance can easily substitute this.
3. Drive Responsibly – Maintaining a good driving record is the best way to ensure affordable auto insurance rates for many years to come.
4. Ask for Discounts – There are many available so don’t hesitate to ask insurers about the ones you’re eligible to get.
5. Pick a Bigger Deductible – Choosing a bigger deductible amount will lead to substantially lower premiums.
You would be at a far higher financial risk for not carry auto insurance coverage, especially if you get into an auto accident. So get that auto insurance free quote and find an insurer that best fits your needs today.
What Causes My Car Insurance Rate Quote To Increase Or Decrease?
Reader’s Question:
My brother in law is selling his sedan and I was wondering what can cause an insurance quote to go high or low.
Barbara
Boston, MA
Actually, car insurance quote from every insurance company will be different even if you supply each of them the same information. So it should be good for you if you acquire car insurance quote from different companies and compare them.
But regarding your question, car insurance company determines their quotes by these factors:
1. Age – young or very old drivers will receive a higher car insurance quote.
2. Gender – Yes! Gender is another factor. Female have the advantage and it will cost less if they are the one trying to insure a vehicle.
3. Place where you live – it will depend whether you live in a rural or urban area. If you live in an area with a high crime rate, insuring cost for a vehicle will increase also.
4. Vehicle – most car insurance company rates cars by safety, ease of maintenance or cost of spare parts, the once which are cheaper to maintain or safer to drive will show a cheaper car insurance quote.
5. Credit History – Most car insurance company nowadays do check peoples credit history. If you have bad one, your chance of a low insurance quote is thin.
6. Driving History – this will greatly affect your quote. If you have a history of car accidents or even minor traffic violation, insurance quote will likely to increase.
Types Of Vehicles That Affect Auto Insurance Cost
Reader’s Question:
I haven’t decided yet on what type of vehicle I am going to buy, can the type of vehicle affect my vehicle insurance cost?
Ronald
Dallas, TX
Most vehicle insurance company nowadays categorize vehicles depending on their class or type which will determine how much will it cost to insure. Vehicles which are expensive, powerful or speedy will be charged at a higher rate. Most of the high priced vehicles today can get costly to repair and insurance company puts a high insurance cost on them because they know that in an occurrence of an accident, insurance claims will also be higher.
Vehicle insurance can also get costly if you choose to buy the attractive or the sporty type of vehicles, specially the two door types. These types of vehicles are known to be the favorites of car thieves. In most cases, vehicle owners of these types of cars are always pressured to purchase the expensive comprehensive coverage to protect not only themselves but their vehicle. If you have enough savings and if you like sporty type of cars, purchasing a comprehensive coverage may actually be worth it even though it might cost expensive.
But to make things unbiased, vehicle insurance cost is not only based on the model or types of the vehicle, there will also be other factors. However, finding a vehicle insurance that will suit your budget requires time and effort, always make sure you compare quotes from different companies and look for the best deal.
How Do Auto Insurance Companies Determine Rates?
Reader’s Question:
I have already tried asking for free instant quotes from different companies when I surf the Internet, but it seems that I could not get a definite price. Prices change per company, and it makes me so confused. It would help if I could at least have some idea on the average auto insurance cost. I want to be as informed as I can be before actually putting out money.
Linda
Kansas City, MO
Linda, I feel obliged to tell you that you are actually on the right track. If you want to get the best deal for your money, you should be equipped with all the information that is necessary before doing anything which involves your hard-earned money. So, to answer your question, the prices of auto insurance policies differ from company to company for a lot of reasons, like your personal profile, driving record, credit history, etc. But all of these auto insurance companies follow some form of calculation, which makes it possible for you to have some substantial idea regarding average auto insurance cost.
Auto insurance companies may come up with the average auto insurance cost in two ways:
The first way is to calculate the average expenditure by finding the total of all auto insurance premiums accumulated for liability, collision and comprehensive coverage. The total is then divided by the total number of all the vehicles insured for the entire year. All forms of policies are taken into account as basis for this average. It includes those policies with only the basic liability coverage and those with optional collision and comprehensive coverage. Policy limitations vary substantially, and they are usually based on the requirements of the state and the preference of the consumers. In 2006, the average auto insurance cost was $817, whereas it was $786 way back in 2002.
The other way of coming up with the numbers is what we call the combined average premium. This is the average premiums for liability, comprehensive and collision coverage that are added altogether to come up with the amount that includes all three types of coverage. Policy limitations are still subject to the state’s requirements and consumer preference, so they vary greatly. The combined average premium for a year’s worth of coverage for the year 2006 was $937, in comparison to the $896 of 2002.
Will My Drivers License Be Suspended If I Stop Paying For Car Insurance?
Reader’s Question:
How long does it take before my license is suspended if I stop paying for my insurance?
Anna
Charlotte, North Carolina
It will depend upon the state law where you live how long you will be affected if you stop paying for your auto insurance. The effect could be suspension of your license or suspended registration. The penalty will depend on the state where you live and have your car registered. Generally, any lapse in payment for your car insurance can result to a penalty imposed to you by the state.
Each state has their own law regarding auto insurance policies. In Virginia, you have to pay $500 every year if you don’t have liability coverage. In North Carolina a car insurance is required if you get a driver’s license, no insurance will result to no driver’s license while in New Hampshire you don’t need a liability insurance at all. These laws vary from state to state.
The state DMV is notified by the auto insurance company of any changes you do with your auto insurance policy. It could be a revision of your policy or if you canceled you auto insurance. Also the DMV will be notified through an electronic notice of auto insurance if you change companies for your car insurance. The moment the information is received, and they will be able to confirm that you are indeed not paying your auto insurance in time, the state DMV will be the one to send you the notification of penalty or the deadline in which you need to resolve this issue. They are well informed about these things so you need to be sure that you are paying your car insurance in time.
There are cases as well where in the information on your registration do not match the information on your car insurance policy. The car owner will be held responsible for this and the penalties will be imposed on him.
You can check your state DMV if they will give you time if you stopped paying for your insurance before a penalty will be imposed.
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