Smart Auto Insurance Blog

In today’s economic environment people everywhere are trying to save money where they can.  Once it’s time for a new car, many consumer are turning towards used cars as their purchase of choice.  Not only is this because used cars are generally less expensive but auto insurance on used cars is often cheaper as well.  If you compare auto insurance on a used car verses a new car you will find the quotes to be cheaper on the used cars in most instances.  This is because the used cars are on average less expensive to repair and replace.

The government offers a convenient outlet for buyers to search for used cars through auto auctions.  The General Services Administration (GSA) is helping consumers better understand the benefits of using auctions and work hard to make the process smooth.  It can be easy to find a very good deal on a used car through an auction, but it’s important to go through a reputable service to ensure you are getting your money’s worth.

The GSA offers a comprehensive website to prospective buyers that is very user-friendly.  GSA holds public auctions throughout the US at registered auction sites.  By registering at their website you can receive more information on auctions in your area and be well on your way to a quality used car at a competitive price.

Auto insurance companies are constantly changing their policies to compete with other insurers and to ensure they are offering the most up-to-date benefits.  There are many optional benefits that insurance companies use as leverage such as road side assistance, online bill pay and even pet insurance.  American Commerce has numerous unique policies which helps them to stand out.

One of the more interesting policies offered by American Commerce is called the Peace of Mind Package.  This is an optional upgrade to any auto insurance policy that offers immediate accident forgiveness from day one, an automatic deductible credit and the ability to drop your deductible up to $500 for remaining accident free.  This really gives a huge incentive for good drivers to gravitate towards American Commerce.  It makes sense that unique benefits will attract more customers.

Another policy option they offer is called AutoMaster Plus.  This is available for upgrade on standard policies and it provides some extended benefits.  Some of these additional benefits include covering items such as computers, cell phones, child safety seats, pet injury, glass chip and personal belongings.  It can also include death benefits and even more.  Check with your auto insurance company to see how your benefits stack up.

Many auto insurance companies are offering discounts to customers in this competitive market.  Unfortunately, consumers aren’t always aware of the discounts and may miss out.  Bristol West Insurance clearly outlines their discounts on their website which offers a user-friendly way to inform their customers.

Some of the Bristol West discounts include the following:

• Homeownership
• Proof of prior auto insurance
• Financial responsibility
• Insuring two or more cars
• Prior coverage limits
• Mature driver course completion

Surprisingly, over half of respondents to a recent survey from LexisNexis Risk Solutions, believe that auto insurance rates should be driven by actual driving data obtained through ob-board devices monitoring how someone drives.  According to the article “Survey Shows Mixed Views of Data-Driven Auto Insurance Rates” by Ben Zitney on onlineautoinsurance.com, privacy concerns are holding back consumers from accepting auto insurance companies’ desire to collect information directly from the vehicle to set rates.

The monitoring device placed in the car can detect a variety of information such as speed, mileage, and braking data.  Most auto insurance companies already use personal information like ticket history and credit history when determining rates, but this might take the privacy issue over the edge.  The use of these devices is getting more and more common and could eventually be the norm.

GMAC has been collecting data from OnStar devices for some time now and having great success with their information gathered.  Since 2008 Progressive has been offering discounts to policyholders who agree to have the devices placed in their car for monitoring.  They measure information such as speed, braking, times of day driven, and distance traveled.  Allstate announced that they have launched a similar program called Drive Wise to use data when calculating auto insurance policies.  Compare auto insurance options to see if this might be something that could save you money in the long run.  If you’re a good driver but haven’t proven through your driving record, this could be a plan for you.

Founders auto insurance is continuing to offer great auto insurance deals to their customers.  This is important to understand as the economy is at a standstill and everyone is looking for ways to save money.  The auto insurance business is very competitive, but Founders is offering up some tips to consumers to ensure they are getting great deals on coverage.

Many auto insurance companies will offer discounts for switching policies to their company.  In many cases you can use a competitors offer as leverage for a good deal with an insurer.

Consider location.  You do not have to use a local auto insurance company, and many times you will find better deals with widespread companies since they have more to offer and a variety of options.  It’s true that where you live impacts auto insurance rates to consider this as you shop around.

Believe it or not, new cars are often cheaper to insure.  If you are considering buying a new car take this into consideration as you shop around.  Many people think rates will increase with the new car, but this isn’t usually the case.  One stop shopping is almost always beneficial.  If you have multiple insurance products with one company you may see huge discounts which will ultimately save you a lot of money.

Colorado regulators recently released their report which summarizes the Division of Insurance’s complaint handling activity from 2009-2010.  According to the article “Report: Regulators Recover $2.8M for Auto Insurance Policyholders” by PRWeb found on SFGate.com, the DOI’s mediation of about 5000 formal complaints during this time period led to the recovery of over $12 million for the state of Colorado’s insurance consumers.

$2.8 million of this sum are a result of complaints and protests filed against auto insurance companies operating in Colorado.  Colorado continues to receive the greatest proportion of consumer complaints filed with the DOI for the last 4 years.  Formal complaints and protests made against car coverage providers accounted for about 55% of the total.

Colorado allows policyholders to file complaints about disputes over issues with coverage.  Unlike most other states though, it has a separate category for protests against auto insurance companies which usually handle challenges against surcharges, policy cancellations, as well as coverage reductions.  Formal complaints have a high rate of confirmation while protests are much lower, so this can cause Colorado to have inflated numbers.  At any rate, Colorado auto insurance policy holders will get back some of what they lost from poor relations with their insurer.

InsWeb released earlier this week its yearly report of the most and least expensive cars to insure according to the article “Fun, Luxurious Cars Still Pricey to Insure” by Claes Bell on Bankrate.com.  Insuring new cars can cost you a chunk in auto insurance premiums, but the type of car you drive will have a great impact on your rates.

The most expensive cars to insure based on their repair costs and other factors include the Acura ZDX, Audi TTS, Audi A5, Cadillac Escalade, Chevrolet Corvette, BMW Z4, Lexus SC, Jaguar XF, Cadillac STS, and the Dodge Challenger.  This list includes mostly high-powered luxury and sports cars which is to be expected.

The least expensive cars according to this report include moderately priced, lower powered, family cars such as the Kia Sedona, Mazda 5, Ford Escape, Hyundai Santa Fe, Mercury Mariner, Chrysler PT Cruiser, Ford Explorer, Subaru Outback, Kia Optima, and the Chevrolet Equinox.

According to the article “Saving Money On Auto Insurance as a Senior” found on favstocks.com, there are special steps senior citizens should be taking to ensure they are getting the best auto insurance rate.

First and foremost, seniors should be shopping around to see what type of rates are out there. It doesn’t have to be hard to compare auto insurance quotes. Getting numerous quotes from various companies can ensure they are getting the best deal.  Another key is to get educated on driver discounts for seniors.  There is a 10% discount for drivers over the age of 55 who have taken a safe driving course in 35 states, including some of the top retirement states.

Seniors will also want to consider what address they are using for the auto insurance quote.  Many seniors own two homes and spend somewhat equal time in each so it can be beneficial to get quotes at both addresses and see what state has the best deal.  You will have to consider where you are registered to drive though and you must be upfront about how much time you spend in each location to ensure the auto insurance company has the most accurate information.

Not everyone realizes that AARP (formerly known as the American Association of Retired Persons) has an auto and home insurance program through The Hartford.  They offer great coverage at competitive rates geared towards their members.

AARP Auto Insurance offers a unique blend of benefits for their retired members.  Availability of features and benefits varies from state to state but by getting a quote you can see what is offered.  They offer first accident forgiveness which is a great benefit for otherwise very safe drivers.  Lifetime renewability is available where you do not have to worry about losing your auto insurance protection.

Known as a disappearing deductible, AARP reduces your collision deductible by $150 if a clean driving record is maintained.  They even continue to drop your deductible by $50 for each additional year you keep a safe driving record until it reaches $0.  The auto insurance feature called RecoverCare helps pay for the cost of services in the home such as cleaning, shopping and transportation if you are hurt in a car accident.  It’s these types of unique benefits that makes AARP auto insurance a great buy.  They truly look out for their members and that is worth your time and money.

As America becomes more and more environmentally aware, the sales of hybrid cars increase.  According to the press release “Top 10 Most Popular Hybrids Quoted for Auto Insurance in 2009″ found on PRWeb.com, quotes on auto insurance for hybrid cars is the information used in obtaining this list.

The top five most popular hybrid cars based on auto insurance quotes are the following:

1. Toyota Prius
2. Toyota Camry Hybrid
3. Honda Civic Hybrid
4. Ford Escape Hybrid
5. Lexus RX400h

Owning a hybrid may earn you discounts on your auto insurance in addition to saving you on gas costs and helping the environment.  Shop around when you are looking to cover your new hybrid car and ensure you are getting the best deal.