You may consider yourself a savvy auto insurance shopper who carefully weighs the pros and cons of various deductibles, makes determined to get every possible discount and carefully tailors your policy to your needs. But did you know you may be able to buy a pay as you go or low mileage auto insurance policy that could result in sharply lower premiums if you don’t put many miles on your car each year?
Premiums on pay as you go auto insurance policies are based in part on the number of miles driven. Policy specifics vary, but premiums may be based on a specified range of miles driven, actual miles driven, or other variations (sometimes including when you drive and driving style).
Mileage may be positive by periodic certified odometer readings, by uploading data from the auto’s on-board computer system, or from GPS-based technology. In order to accurately monitor mileage, some insurance companies require that a device to track mileage and other driving data be installed on the car.
Pay as you go auto insurance is not the right choice for everyone. Here are the pros and cons of pay as you go auto insurance.
Pros of pay as you go auto insurance include the following:
1. For some drivers, it can be much less expensive than traditional auto insurance. It is impossible to calculate precisely the potential savings from choosing a pay as you go auto insurance policy, since they will depend on a variety of factors, including individual driving patterns. However, Progressive, which offers pay as you go auto policies, claims that customers who drive less than 10,000 miles a year may save up to 25% on their auto insurance premiums relative to premiums for traditional auto insurance.
2. Pay as you go policies that allow the auto insurance company to monitor driving habits may assist safer, more defensive driving.
3. Some advocates of pay as you go car insurance policies argue that, in addition to saving money, they could help to save the environment by giving policy holders an incentive to drive less. Less driving could mean less gas usage and reduced greenhouse gas emissions from cars.
Cons of pay as you go auto insurance include the following:
1. The mileage limits on pay as you go policies are too low for many drivers.
2. Many people object to the Expansive Brother aspect of pay as you go policies. The auto insurance company may be able to tell not just how many miles you drive, but when you drive and how you drive and, as a result, there is a loss of privacy with this product.
3. Pay as you go policies are not yet available everywhere and the number of companies offering them is limited, although it appears this may change in time.
While a pay as you go auto insurance policy isn’t right for everyone, it might be ideal for you if:
1. You drive infrequently and/or for short distances and, therefore, don’t rack up many miles each year.
2. You expect to continue to put relatively few miles on your car each year.
3. You are on a tight budget and need the lowest possible auto insurance premium.
4. You are willing to let your insurance company monitor your mileage, even if it requires that a plot be installed in your car.
5. You care about the environment.
Sources:
www.edf.org, Drive less, pay less for insurance
www.ohmygov.com, Is pay-as-you-go car insurance a viable alternative?
autos.aol.com, Big Brother, Gigantic Savings – AOL Auto
Filed under Aaa Auto Insurance by on Mar 13th, 2011. Comment. 
Senior citizens and older drivers, like teenagers, accumulate themselves at a disadvantage when it comes to car insurance. A number of factors, such as crashes per miles driven and accident fatalities according to age group, cause insurance rates to begin to rise once a driver reaches the age of 60. Considered only slightly less risky than recent drivers there are some things seniors can do to keep the rising costs of auto insurance to a minimum.
Most states now offer mature defensive driving courses designed to keep driving skills sharp. As is the case with Driver’s Ed, about two thirds of all states mandate insurance companies give policy discounts upon completion of these courses. Generally, the cost for these two day courses is less than $30.00 and may well provide a 10% discount on auto insurance for 3 years. Checking with your insurance agent, AAA, or AARP can score you information on where courses are offered in your state along with precise costs.
Seniors should carefully think the vehicle being driven for a number of reasons. As a rule most insurance companies give discounts across the board for safety and anti-theft features, updating or upgrading could save money over the long haul. Additionally, as we age our reflexes and reaction time slows, so now more than ever it is important for the car to be properly maintained and easy to operate.
One of the biggest money savers on car insurance is also the most obvious – avoiding accidents. Any driver regardless of age who is uncomfortable during sure conditions such as weather, darkness, or rush hour should simply just not drive.
Joining AAA, or AARP is well worth the yearly fee, not only will it attach you money on car insurance in some cases, but it can also put on repairs. Always shop around for the best prices, or at the very least review your policy yearly with an agent to be sure you’re not missing any discounts.
Sources:
http://www.hometownquotes.com/auto-insurance-tips-for-seniors.html
http://www.sbaaa.com/Insurance/Auto/auto_insurance_senior_citizen_drivers.htm
http://www.seniorjournal.com/NEWS/Discounts/2007/7-06-28-SenCitCanFind.htm
Filed under Aaa Auto Insurance by on Mar 13th, 2011. Comment.
A DUI (driving under influence) conviction can cause your car insurance rates to increase dramatically. If you have gotten a DUI, your insurance premiums may double (in some cases, it could triple) when your car insurance carrier finds out. But, other things can happen that may make your car insurance experience horrible.
Will Your Car Insurance Rates Increase After A DUI?
Yes. When you are convicted of a DUI, you become a risk to all car insurance companies. If you previously had a “preferred driver” policy (a preferred driver car insurance policy will have much lower insurance premiums than high-risk drivers) your insurance rates could triple. Your rates will increase because your car insurance carrier will consider you a financial risk. If they underwrite a car insurance policy for you, they may lose money if you have a car accident that causes substantial injure.
What Is An SR-22 Certificate?
An SR-22 is called a Proof of Insurance certificate and identifies you as a person who has been convicted of a DUI. Many times, you can file an SR-22 through your car insurance company. However, in some cases, your insurance carrier may not have an SR-22 policy. That is, they don’t offer car insurance policies to those who have a DUI on their driving record.
When you file an SR-22 through your car insurance company, your insurance carrier must file it with the DMV (Department of Motor Vehicles). Once your SR-22 is filed at the DMV, any car insurance company will have access to it. When you have an SR-22 on file, car insurance companies will consider you a high-risk driver.
Can Your Car Insurance Policy Be Canceled?
Absolutely. If your car insurance company finds out about your DUI conviction, they can decide to cancel your policy. You will be forced to find another car insurance carrier to insure you, given your high-risk driver status. Your car insurance provider can also decide to simply not renew your policy at the end of its term.
Finding a new car insurance policy after your DUI presents problems, as well. Some insurance companies will insure your car. Others will not as your DUI may imply a greater financial risk to them.
Your car insurance premiums can suffer a significant increase after a DUI conviction. If you get a DUI, you have some time to opinion your next steps. Assume that all car insurance carriers will know about your DUI conviction through the SR-22 filing. Though your car insurance rates will increase, you will have time to anticipate the extra insurance expense.
Filed under Eastwood Auto Insurance by on Feb 26th, 2011. Comment.
Auto insurance is expensive for impartial about everyone regardless of their age, sex or driving record. But for an individual with a record of moving violations or intoxicated driving, auto insurance can be even more expensive and difficult to find.
High-risk auto insurance has become much more wide spread over the last few years as more and more people are added to the list of high-risk prospects. Mainstream insurance companies sign students, teenagers, drivers over the age of 70, individuals with a bad credit rating and individuals with a history of insurance claims as high-risk alongside the traditional high-risk policyholders such as people with a history of DUIs and multiple moving violations.
Insurance companies even establish this high-risk label based on the car in question that means that the driver of a sports car should be prepared to pay a higher premium or even have to find high-risk auto insurance. The insurance company practice of lumping individuals with sports cars and individuals whose license has been revoked into the same category has created a high-risk auto insurance industry on the fringe of the mainstream insurance market.
For this reason, original companies that specialize in high-risk auto insurance (they call it non-standard insurance) have appeared and by shopping around among these new companies, it’s possible for anyone to find insurance at a reasonable rate. Of course, the very mainstream companies that created the need for this insurance with their demographic labels also offer high-risk insurance but it will generally be more expensive than the companies that specialize in this sort of policy.
This is a policy that is best found on the Internet since the best and cheapest high-risk coverage is available from smaller corporations that do not maintain physical offices in every locale they service. If access to a physical office and insurance agent are factors in finding a high-risk policy, it is possible to find a high-risk policy with larger insurance companies such as Allstate but be prepared to pay more for the name recognition of the larger insurance company.
But competition between the small and the large insurance companies is functioning to keep prices down for high-risk auto insurance. Anyone who fits into the above mentioned categories should still be prepared to pay more for their insurance but they do have plenty of options.
By shopping around and considering the smaller corporations that specialize in this sort of policy it’s possible to find a low rate for high-risk auto insurance.
Sources:
“Finding High Risk Auto Insurance and Non Standard Auto Insurance,” thegeneral.com.
“Where Can I Find Auto Insurance For High Risk Drivers,” onlineautoinsurance.com.
“High Risk Auto Insurance – Information and Quotes,” usinsuranceonline.com.
Filed under State Farm Auto Insurance by on Feb 26th, 2011. Comment.
You’ve called different insurance companies to get a quote for that current car you’re buying. You’re wondering why there is such a difference in premiums. Is one company better than another? And, if they are a well established and strong company, what justifies their higher rates?
As a retired insurance agent, I’ve been asked countless times why the rates are so high or so low that they’re too good to be true. There are a myriad of factors involved when insurance companies site their premium rates. If you can begin to understand the reasoning behind the rates, it will make you an educated consumer and maybe help you save money.
Rate factors include:
1) Type of car. Is it a four door six-cylinder compact sedan or a fast and furious Corvette? This is a no-brainer. Cars built for speed command higher premiums because they are usually driven faster and cause more hurt in collisions and have a higher incidence of theft. The faster the car is going, the worse the accident. The smaller compact sedan is usually, but not always, driven in a more conservative manner.
2) Year of car. The newer the car, the higher the rates. Simple as that. Why? Newer cars are more expensive to repair. The repair shop must exhaust label unique parts unlike older vehicles where parts can be found in junkyards at a discount.
3) How much the car is driven. Do you drive it daily thirty miles one way to work or only for weekend errands? This is called “exposure”. The more exposure (mileage), the more chances for an accident and hence the higher premium.
4) Where you live. Do you live out in the country or in the inner city? These are two extremes, but point out the disparity in some of the rates. Chances of theft or vandalism outside a city are usually relatively low. There is a much greater chance of these things happening in a large and busy metropolitan area. You may have more “exposure” if driving long distances in the country, but the accident and theft chances are lower.
5) Road and weather conditions. Does your county keep the roads up and in honorable repair or are the roads full of potholes and neglected? Good roads usually mean relatively lower rates all things being equal. Do you live in the Sun Belt or in the northern part of the country that receives a lot of rain, snow and ice? Insurance companies take this into fable after studying effects of weather on the local roads and the amount and severity of accidents during extremely cold weather.
6) Your age and driving record. Are you a good driver with no tickets or accidents and are between the ages of thirty-five and fifty years old? Congratulations. You’re probably going to get decent rates no matter what company you choose. We all know a new teen driver in the household will cause rates to jump, but an older person over seventy years old can also cause a rate increase. Yes, it’s discriminatory, but that’s how insurance companies space rates for the amount of risk they must shoulder.
These are the major factors involved in your auto insurance rate. Know the factors and you won’t be as apprehensive at the premiums charged. You may be able to establish some money quick-witted what to say to and ask of your agent. Knowing where you stand and how the auto insurance company sets rates make you a thrifty and smart shopper!
Filed under Farmers Insurance by on Feb 24th, 2011. Comment.
