Another Reason To Keep Your Eyes On The Road
Expensive Car Insurance Follows Teen Drivers
Motorists who are 25 years and younger are generally considered high-risk drivers by insurance companies, and for good reason. Teenagers have continually demonstrated the greatest level of high-risk driving behavior of any age group. In 2009, over 350,000 teens were treated in emergency departments for car-accident-related injuries, and automobile crashes continue to be the leading cause of death in the U.S. for teenagers.
Studies have shown when comparing drivers between the ages of 16 and 19 with older drivers, the younger group is four times more likely to be involved in an accident per mile driven. The generally negative perception of teen drivers worsen when insurance companies take into account that over 10 percent of motorists in high school have admitted to rarely or never wearing seat belts in the car. Furthermore, teens seem drawn to drinking and driving. The National Highway Traffic Safety Administration found that roughly 25 percent of teenage drivers who died in crashes in 2008 had BAC levels that were 0.08 or higher.
Coverage providers look at this information when rating car insurance for teenagers and offer higher prices to compensate for the risk of insuring someone with a higher accident risk. Usually, people with poor driving records and extensive claim histories are charged more for their policy, but when it comes to younger motorists, the lack of an established driving history and the wealth of negative statistics are enough to drive up prices.
GDL Programs Could Help Lower Crash Rate, Insurance Costs
Although teens by nature lack extensive experience behind the wheel, there have been statewide initiatives across the country to better prepare the youngest drivers for what they might encounter on the road. And if those efforts prove successful in the long run, it could help bring teen coverage costs down a bit.
In 1996, Florida became the first state to institute a graduated drivers licensing (GDL) program, which required beginning drivers to get more driving experience and led to a 9 percent reduction in fatal crashes among teenagers the following year. These programs are designed to safely ease young people into the world of driving by providing helpful instruction and requiring them to slowly build up experience behind the wheel before becoming fully licensed.
Since Florida introduced its GDL program, many other states have followed suit. Virtually all states have such programs, though they differ in levels of strictness. One state that had enormous success was Delaware. According to a University of Delaware study, that state saw a 60 percent decline in the accident rate for 16-year-olds in the nine years following the implementation of its GDL law.
GDL-related gains in teen-driver safety, though, will take time to translate into lower insurance premiums for younger drivers.
In the short term, parents and teens have options that could help them save money on premiums. For example, many parents and guardians are able to save on auto insurance by adding their teenager to their own policy. Although this increases the premium for every car on the policy, it is still may be a cheaper option than purchasing a separate policy for a younger driver. Luckily, if newly licensed motorists can maintain a clean driving record for over three years, there is a good chance that their rates will be significantly reduced.
CA Insurance After an Automobile Accident
California is one of the most densely populated states in the nation, and is home to nearly 24 million licensed drivers. Throughout the state, and especially in busy cities such as Los Angeles and San Diego, automobile accidents are an unfortunately common occurrence. There are between 450,000 and 500,000 traffic accidents reported annually in California.
The price of automobile insurance is heavily influenced by a policyholder’s driving record, and getting into an accident and filing a claim can quickly lead to higher coverage costs. If CA residents are involved in an accident, they may lose any good-driver discounts and have difficulty finding an inexpensive policy.
According to state law, if a motorist is determined to be 51 percent or more responsible for an accident that results in bodily injuries or over $1,000 worth of property damage, he or she will be assessed a surcharge for 36 months. This is the amount that is applied to a person’s premium as the result of either filing a claim or being convicted of a moving violation.
But in the Golden State, there are many insurers to choose from, and each one weighs claims and accident risk differently. While some companies may raise rates considerably after a claim has been filed, others may be more forgiving. If prices skyrocket after an accident, residents have the option to shop for cheap auto insurance in California online to explore alternatives.
Insurance Options for California Motorists
The effect a collision has on motorists’ premiums is also dependent on their overall driving record and whether they were at fault. If someone has a history of filing claims, there is a good chance that another incident will result in a surcharge and higher rates. A first-time offender, however, may not see any changes at all, especially if the accident was minor or if they were not responsible for any damages.
Drivers who have had an accident affect their premiums are not without options. Although most producers prefer to insure people with clean driving records, there are some companies that specifically target motorists who are at a higher risk of filing a claim. If someone has developed a history of claims, however, they may be unable to find a willing insurer on the voluntary market.
Residents that have filed too many claims and are no longer considered viable risks by insurers may have to enroll in the California Automobile Assigned Risk Plan that is offered through the CA Department of Insurance. This program provides residents with vehicle coverage by uniting them with a producer. Although policies on the voluntary market are more affordable, taking advantage of these services is a better option than driving while uninsured.
Consider Insurance Costs When Buying a Car
Years of hard work and saving have finally made it possible to buy that brand new car. But before driving off in that shiny new sedan or SUV, there is one hidden cost that people should consider: the price of auto insurance. Almost every single motorist needs to be insured to legally drive, and the price of certain types of coverage are largely based on a person’s automobile.
When a policy provider rates a motorist, it takes into account the year, make, and model of the vehicle, which heavily influences the cost of comprehensive and collision coverage, though it will still have some effect on liability and personal injury protection coverage costs. Producers are often concerned with the price of the vehicle, as well as potential repair and replacement costs. Additionally, vehicles that have demonstrated a history of accidents or thefts are also likely to attract higher policy prices.
Luckily, there are steps that motorists can take to locate the cheapest auto insurance available before investing in a new car. One of the most effective ways that drivers can save money is to shop around and make quote comparisons before investing in a new automobile.
Shop for Cars That Attract Lower Insurance Rates
To avoid expensive auto insurance as the result of buying a new car, consumers can research several automobiles before making a purchase.They can look at quote comparisons and take advantage of online consumer reports to find out more about prospective automobiles. For example, the Tucson Arizona Police Department is just one of many state departments that regularly publish information on the most stolen automobiles in the area. Vehicles that commonly top these lists, such as Honda Accords, are likely to have higher comprehensive coverage costs because of their popularity among auto thieves, since comprehensive pays the policyholder when a car’s stolen.
Comprehensive and it’s counterpart, collision, are two coverage types that buyers of new cars are often required to buy as the condition of an auto loan. This added protection is helpful, but the cost is largely dependent on the type of car, and it can significantly increase the price of a plan. Motorists can often cut costs by assuming more risk and choosing a higher deductible. According to the Insurance Information Institute, raising a deductible from $200 up to $500 could reduce the cost of these coverages by 15 to 30 percent.
To lower insurance prices, motorists are encouraged to consider automobiles that aren’t featured on any top ten stolen vehicle lists and that are equipped with advanced safety features. Often, buying a car with automatic seatbelts, antilock brakes, active security systems, and good crash test ratings are likely to attract special discounts and cheaper coverage overall.
Michigan Auto Insurance with Cheaper Rates
The price of automobile insurance in Michigan differs significantly between insurers because different companies have different underwriting and rating guidelines. All vehicle owners in the Great Lakes State need to be adequately insured to legally drive, but most residents have the advantage of being able to shop around for the cheapest prices available. Under MI law, all insurers within the state must accept applicants at regular rates unless they fail to meet specific requirements, but unique pricing methods still make some companies cheaper than others.
Shopping around and comparing quotes can help drivers find inexpensive protection. While insurers in MI are no longer allowed to rate motorists based on their gender or marital status, there are still many different details that can impact policy prices. For example, a person’s driving record, location, and credit rating are among the details that can affect coverage costs. Because each of these details is likely to be unique for individual residents, each motorist needs to complete his or her own research.
Residents looking for the cheapest car insurance in Michigan must compare quotes, and one of the more efficient ways to evaluate sample rates from several different companies involves using online resources. Tools on the Internet can provide vehicle owners with a list of sample rates, giving them the opportunity to identify an adequately priced producer.
Methods for Getting Cheaper MI Auto Insurance
The no-fault system that was adopted in 1973 requires Michigan motorists to carry personal injury protection (PIP), property protection, and residual liability insurance to legally drive. Although higher levels of coverage are available, and are frequently encouraged, people who choose to carry only the minimum amount of required protection may still be able to lower their rates. To help save money, drivers can often choose to adopt a PIP deductible or raise their current deductible. This is the amount of money that the policyholder agrees to contribute when a claim is filed before coverage actually kicks in.
Michigan also has required discounts that many residents can take advantage of. Motorists who are 65 and older are entitled to a premium reduction if they drive less than 3,000 miles per year. Additionally, any drivers 60 and over must be offered the option to waive their work loss insurance, which is typically covered by their PIP, if they do not earn any income from work. However, this protection cannot be entirely removed from a policy because it still applies to others who may be in the policyholder’s vehicle.
Additionally, the MI Office of Financial and Insurance Regulation encourages residents to research additional discounts that can help cut coverage costs. Often, drivers can get reduced rates for insuring a car that is equipped with antilock brakes, an anti-theft device, or other special safety features. Shopping around and exploring the many different ways that residents can find cheaper protection can lead to significant savings for motorists in the Great Lakes State.
Motorists Need Proof of Auto Insurance
Car insurance is a legal requirement for almost every vehicle owner because it ensures that drivers will be able to pay for damages they cause to another person or their property. Being uninsured could amount to serious financial loss after an accident, and could lead to a wide range of fines and other penalties. To ensure that motorists are adequately protected, most states require vehicle owners to carry proof that sufficient coverage has been purchased.
In order to get proof of insurance a motorist must first have car coverage in place. After shopping around and making a purchase, policyholders should receive the necessary documentation. This evidence can come in several forms depending on where the insured driver lives. In California, for example, this can include a document or policy identification card, a letter of authorization from the DMV identifying a cash depositor, or an SR-22. Most people, however, will be given a card that lists specific information about the purchased plan.
An insurance identification card includes very specific information, and should be kept within the insured automobile at all times. These cards should include the name(s) of the insured, the name of the coverage provider, the policy number, the policy activation and expiration dates, vehicle identification number, as well as the make and model of the insured automobile.
Consequences for No Car Insurance Proof
Despite strict coverage requirements, uninsured drivers have become a big problem in several states. For example, the Insurance Research Council estimates that in 2009 roughly 26 percent of motorists in New Mexico were driving without adequate protection. In Mississippi, this amount was as high as 28 percent. To help decrease these numbers, many states have adopted harsh punishments for offending drivers, and have begun relying on online databases that make it easier to identify uninsured residents.
The fines for driving without adequate protection vary depending on the state. In Washington, for example, offending motorists could receive a fine of at least $450. However, the Maryland Department of Transportation has adopted penalties that include the loss of license plates and vehicle registration, a fine of at least $150 and up to $2,500, and a restoration fee of $25.
Several states, including New Mexico, Texas, and Arkansas have begun using electronic verification programs that help local authorities quickly identify uninsured motorists. With these systems, coverage providers are required to inform state officials when a resident has purchased or canceled a policy. Drivers can easily avoid many of these consequences by taking the time to shop around for an adequately priced plan that meets their state car insurance requirements.
Shopping for Car Insurance Discounts
When people shop for vehicle coverage, they shouldn’t overlook the potential savings that can come from maximizing insurance discounts. Policy providers often look for ways to stay relevant in a competitive market, and one of the more common ways to do this involves advertising unique ways that policyholders can cut costs. Motorists can usually get reduced premiums for a number of reasons, so to get the best combination of special offers, drivers should shop around online and thoroughly explore all of their options.
Drivers can usually get discount car insurance by shopping around for the most affordable rates and then contacting several potential insurers directly to see what they can offer. To do this effectively, vehicle owners should go online, where dozens of estimates can be viewed at once. While shopping, people may be surprised to find out that there are countless savings available and that not all insurers offer the same combination of discounts.
It is common for motorists to find cheaper premiums for maintaining a good driving record for over three years, insuring multiple vehicles on the same policy, or for driving a car that is equipped with a security system. However, there are also many other reasons for a coverage provider to offer savings.
Unique Discounts for Auto Insurance
In some cases, vehicle owners may be able to have their insurance costs reduced for belonging to a specific club or organization. Students or policyholders with kids of legal driving age who are in college may be able to save by maintaining a 3.0 GPA or higher. Keeping a low annual mileage or belonging to a car pool may also be reasons to qualify for savings. A select few companies may also provide a premium reduction of up to 10 percent for driving an alternative fuel vehicle or a hybrid/electric vehicle.
To help reduce the number of accidents and promote safer driving, many states have passed laws requiring companies to provide premium reductions for specific reasons. For example, the Montana Commissioner of Securities and Insurance reminds residents 55 years of age and older that they can receive discounted premiums for completing one of the many highway traffic safety programs that are available throughout the state. Similar programs are available in other locations as well, and are generally targeted toward teenagers and older motorists.
Over time, the number and of type of discounts that are available are likely to change. For drivers to ensure that they continue to receive the lowest rates available, they should periodically check with their insurer to learn about new opportunities, and occasionally shop around for less expensive alternatives.
Cheap Car Insurance Quotes for All Motorists
When shopping for automobile insurance, there are some people who commonly find lower prices than others, and this happens for a number of reasons. Rates are set by evaluating the likelihood that a driver will get into an accident, and this quality is determined by examining dozens of details that are unique for every motorist. When someone’s level of risk is identified, he or she is usually placed in one of three main pricing tiers—standard, nonstandard, or preferred—and get charged accordingly. Despite a vehicle owner’s probability of filing a claim, every driver is capable of shopping for the cheapest auto coverage they can find.
The qualities that are commonly used to set insurance rates include a person’s age, sex, marital status, driving record, location, credit score, vehicle information, and desired coverage. Each of these points corresponds to statistical information that is used to help determine an individual’s likelihood of filing a claim. People who pose the greatest risk are commonly placed in the nonstandard market, while lower risk people are placed in either the standard or preferred markets.
Although insurers generally take into account several important details when setting rates, they may not unfairly discriminate when underwriting. This means that prices cannot be unjustly impacted by a person’s race, religion, nationality, ethnic group, age, sex, family size, occupation, marital status, or place of residence. After being sorted by level of risk, drivers generally encounter specific price ranges based on their category. However, motorists can still shop for cheap insurance quotes in their specific group.
Get Cheaper Quotes for Auto Insurance
The more sample rates that motorists are able to gather, the better their chances of finding an adequately priced plan. Vehicle owners can contact several companies directly or speak with a licensed broker to shop around, but one of the more efficient ways to compare quotes involves amassing information online. Shoppers can often get dozens of sample rates from a single website.
Despite the resources that are available on the Internet, some drivers may still be unable to find a willing insurer because they are part of the nonstandard market. If this happens, they may be able to take advantage of assigned-risk programs. After utilizing these programs for an extended period of time, motorists are encouraged to try shopping around online once again for the lowest-priced protection available.
The cheapest quotes found from shopping around may still be impacted by an insurer’s competitive business practices. For example, the Pennsylvania Insurance Department encourages motorists to keep in mind that discounts and other special offers can make a noticeable impact on the price of a policy. Drivers at nearly any level of risk can find rate reductions for insuring multiple vehicles, insuring a car with advanced safety features, and many other reasons.
Car Insurance Quotes Found Online
When people shop around, they look for the lowest prices and the highest quality products. Consumers shopping for automobile insurance will see that they can find different rates depending on the insurer and the amount of coverage that is purchased. The reason for these price differences is premiums are primarily based on the likelihood that the policyholder will file a claim, and producers each have unique methods for determining an individual’s accident risk.
Shopping for vehicle coverage usually requires motorists to either contact several companies directly or speak with a licensed broker. While effective, using these methods to make comparisons can become time-consuming for people who want to evaluate sample rates from as many insurers as possible. By amassing online auto insurance quotes from helpful sources, vehicle owners can see dozens of sample rates from a single website with minimal effort.
To get an accurate quote from any source, vehicle owners need to relay a certain amount of personal information. A person’s accident risk is based on a wide range of info that commonly includes an individual’s age, gender, marital status, location, and credit score. These details relate to statistical info that can be used by insurers to determine their likelihood of filing a claim. For example, studies have shown that married couples file fewer claims than single motorists, and drivers under the age of 25 are involved in more accidents than any other age group.
Necessary Info for Online Auto Insurance Quotes
Apart from personal details, there are several other sets if information that insurers need to examine to set an accurate rate. This typically includes a person’s accident record and vehicle information. People who have filed multiple claims in the past three years, or have been convicted of multiple moving violations, are frequently considered higher risk drivers and are charged more for auto protection. Additionally, there are some cars that are simply more expensive to insure because of increased repair costs, or because of a higher theft probability.
The Massachusetts Division of Insurance encourages drivers to get all of their personal info together and prepared before using the Internet to gather quotes. While shopping, however, it’s important for people to note that some personally sensitive details aren’t required to receive an estimate. Drivers can shop online at no charge, making it unnecessary for any company to require someone’s credit card information to receive a quote. Additionally, people should refrain from relaying their social security or driver’s license numbers while shopping on the World Wide Web.
Before making a purchase, it’s important that drivers exhaust all of their resources, and are certain that their chosen insurer is licensed to sell auto insurance in their state. Often state government websites will provide invaluable information about the coverage providers who are officially licensed, and other important details about safely shopping online for auto protection.
Benefits from Auto Insurance Comparison Shopping
Vehicle coverage can be costly, but most people are still required to buy a policy before legally driving. One advantage that motorists have is their ability to shop around for the cheapest rates they can find. People have many different insurance companies to choose from, and often each one will offer a unique rate. Motorists may be able to significantly reduce their coverage costs by taking the time to make comparisons before making a purchase.
Policy prices are typically unique because they are largely based on a driver’s accident risk, and a person’s level of risk is determined by carefully interpreting an extensive amount of information. Insurance companies will look at a potential policyholder’s age, gender, marital status, desired coverage limits, driving record, location, vehicle information, annual mileage, and many other details. Each of these points is closely linked to statistical information that helps insurers determine how likely a motorist is to file a claim.
The reason why people are encouraged to make a car insurance rates comparison before buying auto protection is that prices can sometimes vary by 200 percent between companies for policies that include the same levels of protection. One of the more efficient ways to amass estimates involves using online resources to view dozens of quotes at once.
Helpful Ways to Compare Car Insurance Policies
While making comparisons, motorists should consider more than just the price of a policy. Not every company can offer the same quality of service, and after an accident it’s important to have an insurer that can adequately handle any claims. Vehicle owners should get multiple quotes, and when several affordable options have been identified, they should look at how well each insurer interacts with customers.
One method for identifying a helpful and competent insurer is to use complaint information accumulated by the state. For example, the Illinois Department of Insurance annually publishes data ranking insurers on the number of complaints they received in a year in relation to the number of written premiums. From these reports, people may be able to identify which companies can provide the most satisfactory service. In addition to statistical information, motorists can also rely on the past experiences of trusted friends and relatives for helpful insight into how well certain insurers interact with their customers.
Vehicle owners should remember that the need to make auto insurance comparisons is not limited to people who are buying their first policy. Over time, policy prices and service quality can fluctuate. Luckily, drivers have a number of helpful online resources that are readily available.