Smart Auto Insurance Blog

It’s not always the best idea to automatically decline the auto rental insurance that rental companies offer their customers according to the article “Don’t Automatically Refuse Extra Rental Car Insurance Coverage” by Michelle Crouch on creditcards.com.  It’s important to do your homework and ensure that you are covered when you rent an auto.

In recent years auto rental companies have started adding extra fees for damages to the rental.  These are often not covered by the auto insurance companies or credit cards.  This is where research is important.  How much are the fees and are you covered.  Most major credit cards offer some form of auto rental insurance, but it doesn’t always cover the extra fees charged by the rental companies.  It’s important to look into.

Most auto insurance companies also offer some form of coverage for renting a car.  But again, it’s hard to tell if it will fully cover all costs associated with the damages.  If you rent an auto often it will be worth your time to shop around and compare auto insurance benefits.  They can vary greatly from company to company.  Bottom line, educate yourself.  Always read the fine print and be sure you are not paying twice for the same coverage.  But at the same time, ensure you have enough coverage.  It’s a fine line, but as a responsible consumer it’s in our hands to protect ourselves.

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.

Auto insurance quotes have been increasing over the past 2 years and they are expected to keep increasing in 2010 according to the article “Be Prepared For an Increase in Car Insurance Premiums” by Justin Vasquez on cheapercarinsurance’s website.

The Office of National Statistics estimate insurance premiums to increase substantially.  States such as Montana can expect increases up to 12%.  There are certain types of cars that will experience high increases in auto insurance quotes.  Some  of these include the Kia Sportage, Hyundai Sonata, and Kia Lotze.

Most companies will be experiencing higher premiums, but many will still be competitive including Acceptance Insurance.  National US averages show that about 23 states have already seen an increase in auto insurance quotes since January ‘10.  Because of these increases many are driving uninsured and the Institute Research Council says about 16% of drivers will not renew their policies which is bad news for insured drivers and insurance companies.

Many people do not realize that you can rent a motorcycle for short periods of time.  You can enjoy the sublime feeling of riding on a beautiful day without the commitment of purchasing a motorcycle outright.  According to the article “Yes, Motorcycles Can Be Rented” by Dan Sorenson on azstarnet.com, rates for renting a motorcycle for a day can range from $99 to $200.

The more expensive ranges for renting a motorcycle usually include higher end models and insurance coverage.  If you owned a motorcycle you would purchase a separate policy through a company that offers motorcycle insurance, such as Dairyland Insurance, but through renting you can get that included.

Most rental companies have basic requirements for renting a motorcycle.  You must be 21 years old or older, have a valid driver’s license which includes a motorcycle endorsement, and a deposit with a credit card good with at least $1000 in available credit.

As more and more consumers become Internet savvy, shopping online for auto insurance quotes is becoming more popular.  People are drawn to the convenience and ease of shopping online.  According to the press release “Shopping for Auto Insurance Online Becoming More Popular in New Year, according to Onlineautoinsurance.com” found on prweb, found a large increase of online shoppers on their site in January 2010 compared to any month in 2009.  This goes to show which way the trend is heading.

The Missouri Department of Insurance encourages the use of online auto insurance shopping.  Their research shows you can get 20 quotes online in the time it may take you to get 3 quotes by calling various auto insurance companies on the phone.  Many insurers are excited about the increase of shoppers online such as Progressive and Eastwood Insurance which both have options to get quotes directly on their website.

Times are changing and it’s important to ensure, as a consumer, you are getting the best deal on your auto insurance quotes.

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.

As online auto insurance quotes are getting more popular so are the concerns over giving personal information over the internet in order to shop around.  According to the article “No Personal Information Needed For Online Auto Insurance Quotes” by John Pirro found on emailwire.com, auto insurance companies are recognizing these concerns and are making the process easier.

Many insurers allow online quotes without sensitive personal information such as a social security number or driver’s license number.  It’s important for consumers to understand though that the less information they share, the more of an “estimate” the quote really is.  A quote is no guarantee since most insurers use driving records and credit information in calculating auto insurance rates.

It can be beneficial to use certain websites where you only have to enter in your information once and the site will generate numerous quotes for you.  Limiting the amount of times you enter in your personal information can be helpful in keeping it safe.  Visit www.smartautoinsurance.com to learn more about obtaining online auto insurance quotes.

According to the article “North Dakota Has 3rd Lowest Auto Insurance Rates, Commissioner Says” found on Insurance Journal’s website, North Dakota has some of the most competitive auto insurance quotes in the country.

The Auto Insurance Database Report from 06-07 was released recently by the National Association of Insurance Commissioners which showed that North Dakota auto insurance has the third lowest rates in the nation.  North Dakota Insurance Commissioner Adam Hamm says this has been a continuing trend in the state.  North Dakota’s 07 auto insurance rate average was $657.63 which is 28% lower than the average of $911.84.

The same report shows Iowa and Wisconsin and the only two other states with lower auto insurance rates.  Washington DC, Louisiana and New Jersey ranked as the 3 most expensive states to buy auto insurance.

According to the article “Pennsylvania Attorney General Charges 24 People With Auto Insurance Fraud” by Mark Mendell on topnews.in, 17 New Yorkers and 6 New Jersey residents claimed to be PA residents to obtain lower auto insurance rates.

This is a very serious offense and is definitely classified as insurance fraud.  Pennsylvania Attorney General, Tom Corbett, said the rate manipulation leads to $12-$15 million in claims on PA policies that affects the auto insurance rates of all the other drivers in the state.

Pennsylvania auto insurance quotes are significantly lower than rates in NY and NJ so it’s no surprise people would try to cheat the system to save a lot of money.  PA officials are taking this fraud very seriously.  The PA Attorney General spokesperson, Nils Fredericksen, says that the 24 defendant each face up to 7 years in jail and $15,000 in fines.

There are still many critics out there unsure of the pay-as-you-drive program being offered by some auto insurance companies.  But according to the article “Car Insurance For Less, and Less Driving” there may be some big savings involved for drivers across the country.

The article cites a study from 2008 by The Brookings Institution that says that if all drivers in the US bought auto insurance per mile, 2 out of 3 policies would save on average $270 a year.  This translates to big savings for drivers so it’s worth looking into if you are shopping for car insurance quotes.

GMAC offers a discount up to 54% to customers who end up driving less than 2,500 miles in a 6 month period.  These drivers have the On-Star system in their car which tracks the mileage.  Those who drive less than 15,000 miles are also eligible for a discount.  You can get a discount up to 26% for the particular premium period if you drive between 7,501-10,000 miles per the premium period.  The On-Star system can cost between $199-$299 so this can offset some of the savings you earn from driving less.