Smart Auto Insurance Blog

According to the article “State Farm Changes Auto Insurance Rates” by Rapid City Journal.com, State Farm Auto Insurance has increased their insurance rates in South Dakota an average of about .1% as of July 12.

Once this rate change goes into effect, State Farm’s overall average auto insurance rate will be 14.2% lower than they were 13 years ago.  This is fantastic news during this tough times for those struggling with South Dakota auto insurance quotes.

Currently, premiums for comprehensive and collision coverages are increasing.  Comprehensive coverage takes care of losses from theft, fire, damages from weather, vandalism, and broken glass.  The cost of liability as well as medical payments will decrease for many customers.  Rate changes will vary from customer to customer, depending on what type of coverage they choose, where they reside, the type of car they drive, and how often it is driven.

One of the major factors auto insurance companies use when determining your car insurance rates is your driving record.  According to the article “Are You Driving Distracted, and is Your Auto Insurance Suffering” published on lexch.com, even non-fatal crashes are bad to have on your driving record.  Driving safely can end up saving you a lot of money in the long run.

According to Distraction.gov, which is the official US Government site for distracted driving, there are 3 main types of distractions which include visual, manual and cognitive.  In 2008, distracted drivers caused about 5870 fatal car crashes.  This is a staggering statistic which should motivate us all to stop unnecessary distractions while driving such as talking on our phone, texting, or eating.  Even having a conversation with other passengers can distract you from focusing on the road.

Before you get car insurance quotes, be sure to understand where your driving record stands.  Accidents do fall off your record over time as well as tickets and even some DUI’s.  But it’s important to note that the safer you drive, the less likely you are to be in an accident and pay higher car insurance rates.  Not to mention you may save lives, including your own and friends and family, if you are consistently a very safe driver.  There are so many reasons to drive safe, and no good reason to risk it and distract yourself from paying constant attention to the road.

JD Power’s 2009 National Auto Insurance Study offers auto insurance provider ratings for a wide variety of insurers such as Encompass Car Insurance.  Encompass rated average which is good considering it’s a smaller company.

In the category of overall satisfaction, Encompass ranked average.  The category of contacting the insurer also ranked average.  Policy offerings received two stars which is the second to worst rating to receive.  Billing payment was considered average and pricing received two stars.  Overall the company achieved an average ranking.

It’s convenient that JD Power is ranking smaller companies, but other smaller insurers such as Dairyland Insurance are not included in the ranking report.  You can still receive reviews on these smaller companies through review websites or the Better Business Bureau.  As you shop around for car insurance you want to consider how other people view their experience with the company.  Price is obviously very important but you need to understand what you are getting for the price quoted.

Bristol West Auto Insurance, along with many other auto insurance companies are getting hit with fraudulent claims.  According to the article “Report: Staged Car Wrecks On the Rise” by James Hart on blogs.kansascity.com, there has been a 40% jump in car accidents since 2007 staged on purpose with the sole purpose of ripping off insurers like Bristol West.  This statistic comes from a report from The National Crime Insurance Bureau.

Many of the fraud accidents are committed by all knowing parties, but sometimes the perpetrators target innocent drivers.  To avoid becoming a target, follow these simple tips:

• Avoid tailgating
• Always call the police immediately if you are involved in an accident
• Use your phone camera to document any damage as soon as it happens
• Never admit fault

Protecting yourself on the road is very important and knowing this type of fraud is going on can help you be more prepared if you are involved in an accident.  Avoiding the accident altogether is obviously ideal so your car insurance quotes are not affected.

MSN’s Money Central web page lists the most and least expensive cars to insure for 2010.  This information is helpful to know as you shop around for auto insurance quotes to use for comparison purposes.

At the top of their list for the most expensive car to insure specifically in the “car” category is the Porsche 911 Carrera GT2 2-door coupe with 6 cylinders with an average premium of $2943.78.  The next car is the Mercedes S65 AMG 4-door sedan with 12 cylinders at $2863.03.  The 3rd most expensive car is the Porsche Panamera Turbo AWD 4-door sedan with 8 cylinders with an average premium of $2837.39.

The least expensive car to insure is the Dodge Caliber SXT 4-door hatchback with 4 cylinders with an average premium of $1192.85.  Next is the Dodge Caliber 4-door hatchback with 4 cylinders at $1196.21 and the 3rd least expensive car is the Volkswagen Golf GLS 4-door hatchback with 4 cylinders at $1196.39.  Remember to keep this information handy as you compare auto insurance rates to ensure you are getting the best deal.

Monthly auto insurance is an option for many looking for transitional coverage or inexpensive premiums with little to no down payment.  Auto insurance companies such as Eastwood Insurance offer low down payment options and that can be invaluable for those struggling financially.

Monthly auto insurance is a policy where the rates are paid in monthly payments with a 30 day installment plan.  Customers can choose to make the payments each month as long as they want their policy current.  Terms can be offered in 3 months, 6, or even 12 month increments based on the policyholder’s situation.

Some tips to keep auto insurance rates lower include setting up automatic withdraw from your bank account to lower billing fees.  Fees could be lowered by up to $10 per month, sometimes more.  If you are able to pay in advance fees are often lowered by going this route.  The cost of monthly auto insurance will vary from carrier to carrier, and many variables are considered.  Continue to shop around and compare auto insurance quotes to ensure you are getting the best deal and not wasting your money.

Auto insurance companies are getting more and more strict with paying out claims as the recession is forcing consumers to request more money to cover damages.  This is according to the article “Under-Insurance Hitting Thin Wallets” by Roeland Van Der Bergh on stuff.co.nz.

Another downside to this economy from the viewpoint of the auto insurance company is the rising rates of insurance fraud according to the article “Recession is Fueling a Boom in Insurance Fraud” found on the Times Dispatch website.  This increase in fraud is keeping state regulators and law enforcement very busy across the nation.

A recent survey conducted by the Coalition Against Insurance Fraud of 37 state insurance fraud bureaus found that the down economy has had a significant effect on the amount of fraud.  The bureaus reported an increase in fraud referrals and new investigations in all 15 categories of fraud covered in the survey.  Other tough financial times such as the influx in gas prices a few years ago.  As gas prices went up, so did the number of automobile fraud cases where people fraudulently reported their cars as stolen, or destroyed just to get the insurance payout from the auto insurance company.  People will do extreme things when faced with financial adversity.

Encompass Car Insurance has a great online resource for those customers with teenagers on their policies.  With teen drivers having an alarming high rate of fatal accidents it’s no wonder they are treated differently.  Just because your teen has been allowed to carry a driver’s license, it does not mean they are as safe as an experienced driver.

There are many things you can do to help prepare yourself and your teen for the challenging road ahead.  You will most likely see your auto insurance rates increase in addition to your anxiety of sending your inexperienced driver out on the road.  Encompass has gathered a  convenient resource on their website to better prepare yourself.

• Some of the topics covered include:
• Teenagers and safe cars
• Tips on helping teens drive better
• Setting guidelines for your teen
• Understanding graduated licensing
• Developing a Parent-Teen contract

When you create boundaries and allow for more time behind the wheel your teen will be better prepared for challenging driving situations and hopefully save lives.

With the recent devastating floods in New England, thousands are left wondering if their car insurance covers damage from a flood.  According to the article “What To Do With A Flooded Car: It Depends on the Water’s Depth; The Floods of 2010″ by Peter CT Elsworth on waterworld.com, how high the water comes up is an important factor.  If water gets up to the dashboard, it’s usually totaled by the car insurance company.

Most car insurance policies include flood insurance, but not all of them.  It’s worth your time to double check and if you aren’t protected start shopping around for car insurance quotes that do provide flood protection.  Cars are the only things that do not have special flood insurance according to John Paul, AAA Southern New England’s Car Doctor.  Unlike home owner’s insurance, full-car insurance covers flood insurance as a loss.

There are 3 main parts in a car that are affected by floods including carpet & upholstery, the engine, and the electronics.  Water below the wheel will most likely only damage upholstery, but above that serious damage can be done to more crucial elements such as the engine.  If you end up having flood damage to your car it’s important to report it to your insurance company.  It will only show up in car history report if they deem it as totaled.

If you are renting an apartment, condo or even a house, it’s important to are protected through renter’s insurance.  Finding a quote on renters insurance can be simple.  According to the article “If You Rent, Get Insurance” from Jean Chatzky on daily-journal.com, says only less than half of renters carry insurance.  If this is you, it’s time to start looking around for coverage.

You can start off by getting a quote from the same place you have your auto insurance policy.  Or you can get new auto insurance quotes and lump in your renter’s insurance to see where you can get the best deal.  With rented homes more likely to be victims of theft and renters policies being extremely affordable there is not reason to get protection.  The National Association of Insurance Commissioners says the average premium is only $182 per year.

Before you call for your quote take inventory of all valuable items in your home.  You will be surprised how much value all of your items have when added up.  Then take the time to shop around to ensure you are getting the best deal.  Know what you are looking for and understand what is not covered in your policy.

Some high value items such as jewelry, musical instruments, and fine art are not typically covered in standard renters insurance policies but they can still be covered usually at an additional cost.  Talk to your agent about the best way to cover your high value items.