Switch Car Insurance Company and Get Lower Rates?
Reader’s Question:
I have been with my car insurance company for a very long time now and have not seen any decrease in my premiums. If I compare car insurance quotes, can I use them to demand for lower rates from my insurer?
Pete
Pittsburgh, PA
Pennsylvania ranks eighteen among the states that have the most expensive car insurance premiums in 2006, according to the most recent study of the National Association of Insurance Commissioners (NAIC). Residents had to pay an average of $832 to have their cars registered in this state. And sadly, motorists have not seen any decrease in their car insurance premiums ever since. And with the threat of losing our jobs due to the economic difficulty, we tend to resort to downgrading our car insurance coverage just to be able to afford our premiums. This should not be the case especially if you take the time to research on ways to achieve a considerable cut in your insurance payments.
Car insurance companies in Pennsylvania are required to give as much as 60% discount on premiums if the policyholders finish a defensive driving class. This can be taken through the agencies accredited by the Department of Motor Vehicles (DMV) for a minimal fee. Others get multiple policy discounts after they took their homeowner’s or renter’s insurance from the same carrier that provides them with car insurance. Students who get to pay really expensive rates because they are deemed high insurance risks get to qualify for good student discounts if they get to maintain their grade point average at 3.0 or higher. Meanwhile, others employ the Internet to compare car insurance quotes so that they get to know the prevailing prices in their area and use this as basis to request for much lower rates from their insurer.
Auto Insurance Question: What Is An FS-1 Form
Reader’s Question:
Can you please tell me what an FS-1 document is in North Carolina?
Henry
Durham, NC
The FS-1 is a document used in the state of North Carolina. The North Carolina Department of Transportation states that when titling / registering your automobile in North Carolina you must show proof of auto insurance.
The required minimum liability insurance for a private passenger vehicle are:
- $30,000 for bodily injury for one person up to $60,000 bodily injury for two or more people per accident and
- $25,000 property damage.
The state of North Carolina law requires each car insurance company to inform the Department of Motor of Motor Vehicle when coverage has been cancelled, terminated or lapsed.
To show proof of insurance coverage to the DMV you can contact your car insurance agent to get the FS-1 form.
Automobile Insurance Rating
Reader’s Question:
How is an automobile insurance company rated?
Miriam
Boston MA
Knowing how one automobile insurance company fares well compared to others is a smart way to go before buying insurance. There are several ways of doing this. For example, how do the premium rates vary between companies? Does a company make you pay high premium rates? Do they offer you low rates but their coverage is not that good. These categories however are more on the customer side of the equation.
How a company rates is not based solely on this. Financial strength is one important factor that needs to be known beforehand. Any ideas why? A company’s financial strength is a measure of its effectiveness. If the company has good financial strength then it means that it can survive longer than others given the competition as well as the changes that the market experiences. This also means their capacity to maintain accounts and pay claims. A company that offers very low rates but doesn’t have good fiscal capability will mean that it may be unable to help when the need arises.
Fortunately, you don’t have to do this yourself. There are now many ways to check what the ratings of an automobile insurance company are. One way to do it is go to companies that publish such information. There are six major companies to choose from. What’s more, these same companies have website where you can access information for free.
These are:
1. A.M. Best Company,
2. Duff & Phelps,
3. Fitch Ratings,
4. Moody’s Investors Service,
5. Standard & Poor’s, and
6. Wiess Research.
If you are serious about looking for good insurance policies, then I strongly suggest that you visit any of these sites. I like A.M. Best the most though. The reason being that it solely focuses on insurance companies. So for a beginner, it will be easier to search.
And that’s how they rate an automobile insurance company.
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.
Loading ...