Smart Auto Insurance Blog

There are many unknown auto insurance discounts that consumers should be aware of.  The article “Little-Known Auto Insurance Discounts” found on savingadvice.com highlights some of the discounts.

Being a full time student can help you get lower auto insurance quotes.  Not only can being a student help you, but if you carry good grades, usually a B or higher, that can earn you further discounts.  Some auto insurance companies offer discounts for federal employees, members of the military, or members of various groups like AAA.

Discounts are sometimes offered to those who have the VIN number on their car window.  How you pay your bills can affect your auto insurance quote and so does where you live.  Driving less and having safer cars all can warrant you discounts on your auto insurance.  These are just a few of the variables taken into consideration when quotes are determined, but you do have control over them so it’s important to understand what factors are being considered.

According to the article “Texting While Driving Ban: Texting While Driving Laws Do Not Reduce Accidents” found on khabrein.info/news, a recent study shows that the recent bans on texting has not effectively brought accidents down in California.

The research was conducted by Highway Loss Data Institute, which is a non-profit organization supported by the auto insurance industry.  The research shows that the rate of accidents before and after laws were enacted in California have not significantly changed.  The study also pointed out that accidents in CA haven’t shown any significant changed in comparison to Arizona and Nevada where there are no bans on texting while driving.

The Automobile Club of Southern California finds the research interesting but they do not plan on accepting the study, citing that the samples were not large enough and the study is inconclusive.  It’s still known that any distraction while driving will put you at a higher risk of being in an accident, whether it’s texting, changing the radio, or programming a GPS.

There will be a voter initiative on the June 2010 ballot for Californians aimed at giving discounts to drivers who have had insurance for a long time according to the article “Californians To Vote On Auto Insurance Persistency Discount” by Patricia-Anne Tom on insurancejournal.com.  This discount would apply even if Californians switched carriers confirmed by the Secretary of State.

The Continuous Coverage Auto Insurance Discount Act will mean lower California auto insurance quotes for many but it’s facing criticism by consumer groups because the act will penalize drivers for not having previous auto insurance coverage.  The article says that the measure would legalize surcharges on auto insurance and penalize good drivers for accidents that weren’t necessarily their fault.  The group believes it could ultimately lead to more uninsured drivers on the road.

Kathy Fairbanks of CalFAIR says this ballot proposal will reward over 80% of responsible Californians who keep auto insurance coverage which is required by law by making them eligible for this discount even if they switch auto insurance companies.  Currently, the discount cannot be offered to new customers.  California drivers will be able to carry this discount with them if they choose to shop around for better rates and switch insurers.

Toyota has recalled 2.3 million vehicles due to a certain accelerator pedal which may mechanically stick when in a partially depressed position.  It’s a very rare possibility, but serious enough to spur the huge recall.

Toyota has started production on the redesigned accelerator pedals which will fix the problem that led to the major recall of 8 vehicle models according to the article “Toyota Says New Design for Faulty Gas Pedals Ready” found on Businessweek.com.  Toyota worked on the design along with CTS Corp which supplied the pedals in the recalled cars.  Toyota is also working with the supplier to test modifications to the pedals already in the cars and plan to get those out at soon as possible.

This recall has stirred a lot of concern among Toyota owners.  Toyota has an outstanding reputation which makes it a great value in terms of car price, auto insurance quotes, as well as cost over time.  It will be interesting to see how Toyota will bounce back from this mistake.

According to the article “Keep Your Teen’s Car Insurance Rate Low” by Beatrice E. Garcia on The Chicago Tribune’s site, car crashes are the number one cause of death among teens in the US.  The fatality rates for teens between 16 and 19 years is 4 times more than those 25-69 years of age.  Based on this staggering statistic it makes sense that car insurance quotes for teen drivers are much higher.

There are some discounts available to teens that are important to be aware of.  Many car insurance companies offer good student discounts to teens with a B average or higher.  There are also discounts given to those with perfect driving records, which includes no moving violations or at-fault accidents for 3 or more years.

There are education courses available for teens and their parents which can make discounts available as well.  Some insurance companies offer discounts up to 25% off the original quote which can mean huge savings.  It’s definitely worth getting educated and understanding what kind of benefits your car insurance company offers your teens.

It is becoming more widely known that many auto insurance companies use the credit score when calculating auto insurance quotes for those shopping around.  Whether you agree with it or not, insurers have found that credit history is a powerful predictor of what kind of driver you are.

According to the article “Does Getting An Auto Insurance Quote Hurt Your Credit Score” by DR on Doughroller.com, Progressive has data to show that consumers with the worst scores are often twice as likely to have an accident or file a claim compared to consumers with the best scores.  But a question that has been on the minds of many credit conscious consumers is how does it affect your credit score when you get auto insurance quotes from an insurer?

The answer is that it affects your score minimally.  Auto insurers are using what’s called “a soft pull” when they look at your file.  This is a way for people to look at your credit file without it affecting your score.  When you get pre-approved offers, are interviewing for jobs, or look at your own credit score these are all using “soft pulls”.  A “hard pull” is used when you are shopping for credit and it can negatively affect your score.  This is often known as a “voluntary pull” and it affects your score because seeking excessive credit is viewed as a risk factor.

Illinois State Insurance Agency has announced the opening of their new location to serve customers in Waukegan Illinois and Lake County according to the article found on onlineprnews.com.  The office has opened in Waukegan Illinois.  This is very good news for those in need of SR22 insurance since Illinois State Insurance Agency (ISIA) specializes in high-risk auto insurance.  Those in the area can get access to an agent much quicker to receive proof of insurance quickly.

ISIA is one of the most reputable Illinois auto insurance companies.  They offer many discounts including discounts for proof of prior insurance, multiple cars, perfect driving records, and discounts for renewing.  They have also implemented a tool which allows policy holders to instantly download ID cards which is a huge benefit for high-risk drivers who often need to show proof of insurance quickly.

ISIA has been in business since 1997 and is growing consistently.  They have 4 locations in in the greater Chicago area and they are looking to open up in other states as well, including Indiana and Wisconsin.

The Detroit Auto Show recently revealed some upcoming car models that consumers will find much value in and are worth waiting for if you are in the market for a new car.  The article “6 Cars Worth Waiting For” by Peter Valdes-Dapena provided by CNNMoney, found on finance.yahoo.com, describes six of the top hot cars.

The cars discussed include the following:

1. Honda CR-Z
2. Ford Focus
3. Lincoln MKX
4. Mercedes-Benz E-class Cabriolet
5. Ford Mustang GT 5.0
6. Cadillac CTS-V Coupe

According to the article “Air Force Personnel Earn Substantial Auto Insurance Savings” found on Webwire, those who serve or have served in the US Air Force are often more likely to to find lower auto insurance rates on quality coverage.

There are many benefits that come from being a member of the Air Force, and lower auto insurance rates is just one of them.  Many auto insurance companies offer discounts to military men and women.  Some of these benefits include a savings of up to 50%, especially those who are active duty.  These people can also avoid state excise tax when purchasing vehicle registrations & license plates with a valid military ID.

With all that military men and women do for our country it’s great they can take advantage of lower auto insurance rates.  Many choose to go through USAA auto insurance which is specifically for military personnel and their families.  But just like everyone else, it’s in their best interest to shop around and compare rates to see which company can offer the best deal.

According to the article “Cheap Car From India Could Cost $8,000 in US” by Tom Krisher found on autos.yahoo.com, the world’s cheapest car is coming to the US market.  Unfortunately, once India’s Tata Nano is redesigned to meet emissions and safety standards, the US price will be going up.

The Tata Nano should be ready for distribution within the next 3 years and it is unknown exactly how much the car will cost.  In India, the car costs the equivalent of $2500, making it the world’s cheapest car.  Warren Harris, who is the Tata Technologies president, says the price will be more in the US and it’s estimated by some to be around $8,000.

Even $8,000 is a very affordable car by American standards.  Currently, according to the Edmunds.com automobile website, the cheapest new car on the US market is the Hyundai Accent at about $9970, so $8,000 is very competitive.  This also translates to lower car insurance quotes for those who buy this car since it will be cheaper to replace the car if it is damaged.