Smart Auto Insurance Blog

It’s generally recommended that everyone should compare auto insurance quotes when shopping for a policy, but new research shows that it pays of big time for drivers under the age of 25.  According to the article “Price Comparisons Pay Off for Yonnger Drivers” by The News Tribune, average premiums vary from insurer to insurer but the difference is very large when you are a young driver.  Des Toups, senior managing editor at the CarInsurance website says the difference is massive.

As an example, a 55 year old man can save an average of $456 a year by shopping multiple auto insurance companies, whereas a driver under 25 can save about $1102.  This is an extremely large difference that young drivers should be aware of.  One reason premium quotes vary so much for young people is their driving record.  They often are a question mark and this can be a major driver of auto insurance quotes when shopping around.  Young drivers don’t have a track record yet to prove they are good drivers and each insurer has its own method of determining the risk of these drivers.

There doesn’t seem to be a consensus of what ultimately matters or not.  Some see good grades as a factor while other insurers do not.  There are many factors that go into determining an auto insurance quote and it’s hard to tell for a young driver what will drive the quote the most.  So shop around and compare quotes, especially if you are young with a limited driving record.

If you happen to find yourself in need of a quick SR22 insurance filing many companies can do it for you immediately including Eastwood Insurance headquartered in California.  This is particularly important if you need this information filed by a certain date to get your license or to ensure you have the proper auto insurance coverage in place by a certain time.

An SR22 is a certificate of insurance filed by an auto insurance company or insurance agent directly to the state in either an operator’s certificate or an owner’s certificate.  There is also an operators-owners certificate option.  SR22 isn’t exactly a type of insurance which often confuses consumers.  It is the name of a certain form insurance companies need to file for certain policyholders.  Not all states require SR22 but it is often required if your license has been suspended or revoked.  This makes the SR22 associated with high risk drivers who have somehow broken the law or had an exorbitant amount of violations.

It’s very important to get the SR22 form filed correctly if you are required to do so.  The SR22 insurance certificate is to certify coverage to the Division of Motor Vehicles in a particular state.  The insurance company is then required to notify the Division of Motor Vehicles in the case of the policy being cancelled, terminated, or if there are any lapses in coverage.  If you find yourself needing this type of form filed, check with your insurance company to see if this is something they offer.  Not all auto insurers file this paperwork so you will have to confirm yours does.

Most car insurance companies, including Progressive and American Commerce, have their own calculation for determining car insurance quotes.  You may feel like the rate you end up paying is out of your control but that isn’t necessarily the case.  There are numerous factors insurers use that are within your control and knowing what they are can help you save money.

The biggest factor is often driving record, and although you cannot do anything about the past, you can control your future driving habits and wait until previous driving violations fall of your records, which they eventually do.  You can have a clean slate with a little patience and careful driving practices.  Another big one these days is credit rating.  Again, the past is the past, but derogatory marks fall off your file in about 7 years, and focusing on paying your bills on time and keeping your debt levels down will pay off in the long run.

Of course what type of car you drive is going to have a huge impact on your car insurance quotes.  In general, the more expensive the car the higher your quotes will be.  Take a serious look at how big of a car you need, and how important luxury really is considering the overall costs.  Not only will that actual car cost more money, but maintenance and insurance will be higher.  The extra money can add up to a lot over the years.

And make sure you are shopping around for the best rate.  Just because one car insurance company gives you a hefty price, doesn’t mean they all will.  Get at least 3-4 quotes, if not more, and compare any trends you may see.  You’ll also want to make sure your coverage is sufficient and meets your needs.

In many states teenagers can receive their drivers license at age 16 once they have passed a written test as well as a driving test.  At this point you will need to look into auto insurance for your new driver.  Many auto insurers such as Progressive and Acceptance Insurance offer policies to these young drivers, but rates may be higher and if you add the driver onto your existing policy you can expect to see your premium increase, in some cases relatively drastically.

You can see your auto insurance rates come down over the years with your teen on your policy by encouraging good grades which can earn discounts and demanding safe driving habits.  The Department of Motor Vehicles in various states offer teen driving education from everything like passing the written test to the importance of never drinking and driving.  There are online tools for your Internet savvy teen to browse articles and online quizzes to help educate your child on safety guidelines on the road.

Many auto insurance companies also offer online programs for teens.  USAA Auto Insurance explains to your student how to buy a car as well as how to handle distractions while driving.  State Farm has launched a unique campaign called “Not Now, I’m Driving” (NNID) which has teen-friendly YouTube videos and messages from famous actors sending the message about the importance of never texting while driving.  Allstate and Geico also have programs geared towards making your teen a safer driver which will hopefully save lives and as a nice perk, hopefully facilitate lower auto insurance rates for you over time.

Bristol West has a link to the Insurance Institute for Highway Safety website because driver safety is a priority to them.  Not only will driving safe keep your auto insurance quotes lower, but it keeps you and your family safe on the road.

An article posted on the Insurance Institute for Highway Safety website discusses the 2011 Top Safety Pick in their “Hyundai Equus Earns 2011 TOP SAFETY PICK Award” listing.  This luxury car earns this award for many reasons.  They actually earned this high rating across the board in the Institute’s safety evaluations.  The Equus was rated good for front, side, rollover and rear crash protection.  On top of this, it has electronic stability control which has become another requirement for earning the Institute’s highest rating.

In the rating for roof strength for rollover protection, the Equus withstood a force equal to 4.87 times the car’s weight.  This earns them a high rating as well since the current federal standard is 1.5 times a car’s weight.  Bristol West Insurance not only wants drivers to know about safe cars, but they hope lives can be saved through education.  As car makers compete for this honor, the hope is that vehicles will become safer and safer over time.  Many auto insurance companies take car safety into consideration when they calculate an insurance quote because someone is less likely to be severely injured in a very safe car.

Many people often wonder what type of coverage they have if someone they lend their car to gets in an accident.  Unfortunately, most do not consider this when they compare auto insurance benefits.  This is an important benefit to consider though, especially if you think you may be lending out your car to any friends or family members during the life of your policy.

In general, auto insurance policies follow the car.  This doesn’t always make sense to drivers since rates are based on their driving record, not the person they lend their car to, but most insurers follow this rule.  It is possible that you would be responsible for coverage if you are driving someone else’s car and they do not have auto insurance.  This is unfortunate situation that can confuse drivers.

According to the article “Lending Your Car Can Bring Auto Insurance Concerns” by William Pirraglia on E-Wisdom.com, when you lend out your car to someone, you take on ‘vicarious liability’.  Your auto insurance is responsible for property damage, bodily injury, as well as other possible damage charges.  Since you gave permission to for someone else to drive your car, you have to accept liability for your friend’s activity.  Legally the borrower has no classic insurance liability unless the car has no insurance on it.  If someone steals your car and gets in an accident then you would not be considered responsible for liability so that at least is a good thing.

There are a lot of complex exceptions based on a variety of scenarios, so be sure to check with your specific auto insurance policy to see how your insurer will respond to each situation.  Knowledge is key in preparation for accidents if you do decide to lend out your car to someone you know.

Understanding your auto insurance company’s financial strength is important to protect your lifestyle and future financial well being.  Insurance agents, brokers, financial advisors, and other insurance professionals have long used AM Best’s Financial Strength Ratings to help support their insurance selection and investment choices.  It’s now recommended consumers also utilize Best’s ratings to understand their insurance company’s strengths.

Companies such as Founders Auto Insurance are found on the AM Best ratings list.  Founders Insurance received an A- as of July 2010 which is considered excellent.  This excellent rating is very important to the well being of the company.  Best’s Financial Strength ratings offer an independent evaluation from a third party to assist in determining the ability of an insurance company to fulfill its obligations with regard to a variety of insurance products, including auto insurance coverage.

The AM Best rating process gives all insurance companies the same rigorous review which provides an extremely valuable benchmark for comparing insurance companies against each other.  Companies can receive ratings from an A++ all the way down to an F which usually means the company is in liquidation.  A B or below is considered a vulnerable rating whereas a B+ or above indicates secure financial strength.

Based on a recent online survey completed by the InsuranceQuotes website, a surprising 16% of American drivers say that they have driven without carrying auto insurance, which happens to be against the law.  Also in this survey, 2% admitted to currently driving around without auto insurance which is concerning for all insured drivers on the road.

With the past few years being tough economic times for many, this probably makes sense.  According to the article “16% of Motorists Have Driven Without Insurance” by Alex Vorro on insurancenetworking.com, 28% of males ages 18-25 and 45-54 were at the top of the list for driving without insurance.  The percent of women driving without insurance is only about half of men.

Men and women combined in the age group 45-54 were the most likely to have driven without insurance at about 22%.  In the age group over 55 only 8% have admitted to ever driving with auto insurance.  The survey also looked at the reasons why people were driving with out auto insurance.  Auto insurance quotes can be expensive and it would seem that would be one of the reasons.  Actually, 24% of drivers drove without auto insurance because they didn’t have a chance to renew, 19% because of a gap while switching insurance companies and 12% because the insurer cancelled their policy.

Every driver knows they should be carrying auto insurance to protect their car and their financial situation if they happen to be in a devastating accident.  Unfortunately, most people do not carry insurance for an earthquake or a tsunami and the Insurance Information Institute says the US is at risk for both of these natural disasters.

An article found through a link on the One Beacon Auto Insurance entitled “Few Homes Have Insurance Coverage for Earthquake or Tsunami, Although the US Is At Risk for Both” on iii.org, discusses the importance of making sure you have the right kind of insurance coverage for your specific living situation.  Most home owners insurance policies do not cover earthquake damage so individuals at risk need to shop around for either an endorsement or a completely separate policy to ensure they are properly protected.

Earthquake coverage is offered through various private insurance companies and can be affordable.  In California where earthquake risk is higher, insurance can be purchased through the California Earthquake Authority (CEA), which is a privately funded, publicly managed group.  In California, only 12% of people carry earthquake insurance which is down dramatically from 1996 when 30% carried protection.  During tough economic times people often eliminate unnecessary insurance products, but there is no earthquake season and you never know when you may be a victim of a catastrophic event.

American Commerce Insurance offers a wide variety of insurance products including motorcycle, home, renters and auto insurance.  Most people carry different types of insurance policies to protect them in the case of different kinds of accidents.  But there isn’t really an insurance product for everything that can go wrong and that’s where umbrella insurance comes in handy.  American Commerce offers umbrella insurance and does a great job of explaining how it works on their website.

Basically umbrella insurance is a catch-all insurance product.  It takes care of larger incidents that are highly unlikely, but still can devastate you.  Some examples of these incidents are your dog biting a neighbor, your child accidentally causing a fire, or a guest trips on your steps and goes on permanent disability.  All of these scenarios are relatively rare, but they do happen regularly across the nation.  Some of these incidences can cause million dollar lawsuits which most consumers are not prepared for emotionally or mentally.

Umbrella insurance can help reduce some of this stress.  It provides an extra layer of protection that can put your mind at ease.  You can add up to $5 million in extra liability protection for your homeowners, watercraft or auto insurance policies.  It’s generally a very low annual cost at just a few hundred dollars per year.  It’s a great protection to ensure you are protected in the case of lawsuits, attorney fees or garnishment of wages.