Smart Auto Insurance Blog

Many companies such as credit cards, and grocery stores offer perks and discounts to their customers and you may be surprised to know that auto insurance companies are among them.  So many consumers either are unaware of the perks or do not take the time to take advantage of the perks, and that’s a shame because you can save a lot of money.

Some auto insurance companies offer discounts on dozens of major retailers just for being a customer.  Companies that sell flowers and movie tickets can give you lower prices just because of the auto insurance company that you use.

Credit card companies offer great discounts and rewards as well.  One trick is to use your credit card to pay your auto insurance bill if you are able to pay it in full each month.  This earns you a chunk of points to use at your favorite retailer, or to simply get cash in your pocket.  Most auto insurance companies accept credit cards including Eastwood Insurance and Infinity Auto Insurance.

So, take the time to check with your various companies and see how much you can save and where.  You may be surprised how much you have been missing by not having all the information.

Mercedes newest protocol, The Experimental Safety Vehicle, offers some impressive features that may drastically reduce injuries and deaths in the case of an accident.  This is according to the article “Mercedes May Help Owners Get Inexpensive Auto Insurance with Safer Car” by Shannon Brown on Cheaper Car Insurance’s website.

If this new safety car is brought to the market and proven effective it will affect the auto insurance quotes for Mercedes drivers.  This unique design basically turns the car into a giant airbag before impact which protects the driver and the passengers.

Mercedes continues to be on the forefront of vehicle safety.  There are even more special safety features in the models coming out soon.  Mercedes make safe driving a priority and it shows in their efforts towards making safer models.  Unfortunately, prices for these types of cars are on the rise, but at least it’s good to know that many auto insurance companies give discounts for cars that are proven extremely safe.

According to the press release “The Impact Accidents Have On Auto Insurance and Keeping Rates Affordable” found on wiredprnews.com, accidents affect auto insurance rates in numerous different ways.  Just because you have an accident doesn’t mean your rates will automatically increase.  It’s beneficial to understand what will ultimately affect your rates.

A very critical aspect of an accident is whose fault was it?  If the policyholder is found to not be at fault then it’s likely their auto insurance rates will not be affected.  Being at fault is what will probably change your rates.  Depending on the company’s underwriting guidelines, one may lose their good driver discount which can be up to 20%.  Injuries can affect your rate as well with the more serious the injury the higher the rate is affected.  If the collision is with an emergency vehicle like an ambulance or police car this can spike rates.  And of course if there are any drugs or alcohol involved rates can be severely affected.

Many insurance companies such as First Acceptance Insurance try to offer fair rates whenever possible.  If you are in an accident and your insurer raises your rates, it may be worth your time to shop around since different insurers have different underwriting policies and an accident may not affect your rate as much.

In today’s economy more and more people are interested in saving money in unlikely places.  Many people don’t realize that it can be easy to save on your auto insurance quotes.  The article “Eight Tips for Saving on Your Car Insurance Rates” by Steve Cypher on autocreditexpress.com highlights the top 8 ways to save.

The first and easiest is to shop around and compare auto insurance.  This may seem obvious, but many don’t realize that they are paying too much for their auto insurance so don’t bother shopping around.  Another tip is to combine your policies for possible discounts.  Repair your credit before you shop around to get a lower quote.

Be sure to check and see if any professional associations you are part of earn you discounts.  AARP, certain university alums, and military groups are just a few examples.  Students often earn discounts as do certain cars and low mileage.  Another way to earn discounts that many don’t realize is to go paperless with your bill and payment options.

California Auto Insurance quotes are lower if you qualify for a special program that can get you affordable auto insurance.  According to the article “State Program Helps Connect Drivers With Low-Cost Auto Insurance” by Steve E. Swenson found on bakersfield.com says that the program offered in Kern County since 2006 is saving eligible drivers money.

The program is called The California Low Cost Auto Program and it offers coverage limits of $10,000 per person, $20,000 per accident, and $3,000 for property damage for as little as $254/year.  Quotes on auto insurance in California can be pricey and tickets for not carrying auto insurance can be extremely expensive, up to $786 according to court officials.

To qualify for the program applicants must be 19 years old or older, have a license for 3 years continuously, and have no more than 1 at-fault accidents, or 1 point for a moving violation in the last 3 years.  California Insurance Commissioner Steve Poizner believes the program needs to be supported, especially during the tough economy and high rate of unemployed drivers.

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.

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.

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.

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 “New Year May Provide Opportunities to Save on Auto Insurance” found on the Sun Herald’s website, consumers should be aware of some personal changes that will come with the new year to obtain lower auto insurance quotes.

The first change discussed is an increase in your age.  Many companies offer lower rates with the more driving experience you have.  Also, if you have a driving violation on your record, your rates may get better with each passing year.  Eventually those violations will fall off your record and affect your quotes.  If you have gotten married it’s worth reevaluating your auto insurance rate since many companies view married couples less risky.

Another benefit to passing time is the depreciation of your automobile.  The less your car is worth the less your auto insurance rates usually are.  Once your car has reached a certain value it may be worth considering to drop your collision insurance and just keeping your liability insurance to save money.  Companies such as Eastwood Insurance incorporate all of these variables into determining your quotes, so shopping around in the new year may be well worth your time.