Smart Auto Insurance Blog

In these tough times, drivers are looking for any type of discount they can on their auto insurance rates.  Progressive Auto Insurance is happy to offer discounts whenever they can and their MyRate Discount program proves this.

Progressive’s MyRate discount offers savings based on how much, how, and when they drive their car.  With the newest version of MyRate, now offered with Minnesota auto insurance, customers can start saving in as little as 30 days, up to 30%.  Progressive now gets data for only 6 months to determine a customer’s auto insurance rate.  Once drivers sign up for the MyRate program they plug in a small device into their auto that measures their driving data.  After about 30 days they can let the customer know if they qualify for a discount.

Some examples of scenarios that will offer lower rates are business travelers who park their cars at the airport numerous days per week, families with an extra car they rarely drive, or safe drivers who rarely slam on the brakes.  Progressive may occasionally check in with MyRate customers to get another snapshot of driving habits to ensure nothing has changed, but if the safe driving habits continue so do the great discounts.

According to the article “Insurance Changes Would Help 80% of Drivers” by Mike D’Arelli on sfgate.com, California auto insurance is about to see some major changes.  Thousands of auto insurance agents support Proposition 17 which will extend an auto insurance discount to millions of drivers in California who are forced to pay hundreds of dollars more every year for their auto insurance rates if they switch insurers.  It looks to reward good drivers and save them as much as $250/year.

Prop 17 plans to fix an underlying issue current in the auto insurance system.  Drivers who keep auto insurance with the same company are eligible for a continuous coverage discount.  If a consumer decides to switch carriers they do not get this benefit and Prop 17 will fix this flaw.  Drivers who follow the law and keep coverage continuously will still get the discount even if they change insurance companies.

Prop 17 will also increase competition among carriers and provide California drivers with many more options.  It will benefit up to 80% of drivers who keep continuous coverage.  It also contains some consumer protections to help those suffering from the economic downturn.  In addition, Prop 17 will protect our military men and women who are serving abroad and do not carry continuous coverage because they are not driving.  All of these provisions may seem like common sense, but it’s been the current law for awhile and it’s time for changes.  SR22 insurance will need to be still be carried by those high risk drivers who are required to carry this type of coverage.

There is some good news for those shopping for auto insurance quotes.  Rates are down about .5% according to the article “Average Price for Auto Insurance Down .5%” found on theautoinsurance.com.  Over the past six months InsWeb has shown that auto insurance premiums are down to about a national average of $702.

These savings are an average across the board, but certain demographics are experiencing even higher savings.  Women drivers over the past six months have saved 5% over what men drivers are paying.  Women paid on average $683/year while men paid $720/year.  This savings is typical since auto insurance companies view women as less risky drivers.

Over the next few years, drivers can expect to see some changes to the way auto insurance is offered.  Many states are currently considering, or have implemented pay-as-you-drive options which allow drivers to pay for auto insurance based on miles driven.  This can be a huge money saver for many who do not drive very much or drive a lot based on the season.  Consumers will still have the option to purchase standard auto insurance, but this new idea will provide flexibility and affordability to certain types of drivers.

According to the article “North Carolina has Eighth Cheapest Car Insurance” by Lee Weisbecker on Triangle Business Journal’s website, North Carolina auto insurance quotes are the 8th lowest in the nation and the lowest in all the South.  This came from a report from the National Association of Insurance Commissioners.

North Dakota had the lowest auto insurance rates at $511.79 per year and Iowa was 2nd with $517.62 per year.  The study looked at payment levels from customers for all 50 states from 2003 to 2007.

The North Carolina Insurance Commissioner, Wayne Goodwin, thinks the report’s findings are encouraging and states that he is pleased that North Carolina continues to be one of the most affordable states in the country.  The low rates are partially due to the fact that North Carolina is one of the only states to negotiate standardized rates for all auto insurance companies.  The rate set by the insurance commissioner becomes the cap, and companies can only deviate from this rate by offering consumers discounts.  SR22 insurance in North Carolina is typically higher because these drivers are deemed higher risk.

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.