Smart Auto Insurance Blog

With the recent devastating floods in New England, thousands are left wondering if their car insurance covers damage from a flood.  According to the article “What To Do With A Flooded Car: It Depends on the Water’s Depth; The Floods of 2010″ by Peter CT Elsworth on waterworld.com, how high the water comes up is an important factor.  If water gets up to the dashboard, it’s usually totaled by the car insurance company.

Most car insurance policies include flood insurance, but not all of them.  It’s worth your time to double check and if you aren’t protected start shopping around for car insurance quotes that do provide flood protection.  Cars are the only things that do not have special flood insurance according to John Paul, AAA Southern New England’s Car Doctor.  Unlike home owner’s insurance, full-car insurance covers flood insurance as a loss.

There are 3 main parts in a car that are affected by floods including carpet & upholstery, the engine, and the electronics.  Water below the wheel will most likely only damage upholstery, but above that serious damage can be done to more crucial elements such as the engine.  If you end up having flood damage to your car it’s important to report it to your insurance company.  It will only show up in car history report if they deem it as totaled.

Bristol West Insurance has a link on their page to some very interesting articles on highwaysafety.org.  One of the articles discusses thoroughly bans on cell phone usage while driving.  It’s become a hot topic as Oprah is trying very hard to get all Americans to sign pledges agreeing not to use their phone while driving.  Lives can be saved and more and more states are recognizing this and putting it in the law books.

Currently there is a jurisdiction wide ban on driving while talking on a hand-held phone in 7 states which include California, Connecticut, New Jersey, New York, Oregon, Utah, Washington DC and Washington state.  In addition, many localities have placed restrictions on cell phone use, including Oprah’s hometown of Chicago, IL.

Text message is a newer phenomenon and texting while driving is even more dangerous as it takes drivers’ eyes off the road for a period of time.  Text messaging is currently banned in 20 states and Washington DC and that number is expected to rise as more and more studies show how dangerous it really is.  The use of cell phone for those driving a school bus is prohibited in only 17 states and Washington DC.  That seems like an obvious ban that should be placed everywhere.

Don’t be surprised if it becomes law across the nation that cell phone use while driving is restricted.  Already, car insurance quotes can be affected if you have been caught in an accident while on your phone.  It’s a very wise practice to get in the habit of even if your area currently has no restrictions.  Find a safe place to pull over if using your phone is absolutely necessary while you are on the road.

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.

Back in February over 100 car owners were shocked to discover their cars’ computer systems were hacked into according to the article “Does Your Car Insurance Cover Hackers” by Liz Taylor on Cheapercarinsurance.com.  The car owners had their cars uncontrollable honking and some being disabled.  The police have since caught the culprit, but many are left wondering who is going to fix the car’s security system?

The remote, no-start system has pros and cons to begin with.  The high-tech systems allowed car companies to offer loans to higher risk customers because they could simply “turn off” the car if payments weren’t made.  Unfortunately, this may put financial strain on already high-risk customers.  The system allows honking to remind customers of payments due, locating the car if it is hidden, and disabling the ignition to ensure the car cannot be driven.

With this new technology, there is obviously a higher risk for computer hackers messing with cars.  Car insurance companies are being forced to address this issue in their policies and protect their customers from such cases.  Check with your insurer and see if you are protected.  If not, it may be time to shop around for car insurance quotes for a full benefit package, protecting you from this new crime.

Chicago car insurance quotes are managed by Illinois State Law according to the article “New Minimum State Requirements for Chicago Auto Insurance Quotes” by Cathy Wilson on youronlineinsurance.com.  Some of the mandatory coverage options are discussed in the article.

Car insurance continues to be mandatory in Chicago so anyone driving must be covered.  Liability coverage is also mandatory.  This covers the driver for injuries to other people, other cars and property.  The minimum liability is at $20,000 per driver in a car accident.  The max coverage is $40,000 and property damage excluding the car caps at $15,000.

Illinois drivers who are not insured properly or not insured at all will be responsible for the costs from the injuries up to the state minimum liability amounts.  They may also be responsible for damages that are not covered.  It’s important to be familiar with all of the driver and insurance laws in your state if you plan on operating a vehicle.  They can change from year to year as well, so keep up with the changes. It’s a good idea to periodically get Illinois auto insurance quotes as well.

There are many myths out there about what may or may affect your car insurance quotes.  Although each company has different criteria for determining rates, in general there are 6 myths out there that are commonly misunderstood.  The article “Car Insurance Myths” in the news section of www.canada.com discusses them in further detail.

It is often thought that the color of your car will affect your car insurance quote, but most companies do not factor this in.  Some think that a 2 door car will automatically cost more to insure but that is not necessarily true.  If the car is more expensive to repair then your quote will be higher.  Bigger cars and more expensive cars are often quoted higher, but it doesn’t have anything to do with how many doors the car has.  Parking tickets do not generally count against you when getting a quote.

Speeding tickets can affect your rate, but not as much as some think.  First time offenders may have no change in their rates at all, and repeat offenders may be surprised to see their rate barely increase.  It’s often thought that only high risk drivers should shop around but this is not the case.  Regardless of your driving record it can save you to shop around since every company has different ways of computing rates.

According to the article “Keep Your Teen’s Car Insurance Rate Low” by Beatrice E. Garcia on The Chicago Tribune’s site, car crashes are the number one cause of death among teens in the US.  The fatality rates for teens between 16 and 19 years is 4 times more than those 25-69 years of age.  Based on this staggering statistic it makes sense that car insurance quotes for teen drivers are much higher.

There are some discounts available to teens that are important to be aware of.  Many car insurance companies offer good student discounts to teens with a B average or higher.  There are also discounts given to those with perfect driving records, which includes no moving violations or at-fault accidents for 3 or more years.

There are education courses available for teens and their parents which can make discounts available as well.  Some insurance companies offer discounts up to 25% off the original quote which can mean huge savings.  It’s definitely worth getting educated and understanding what kind of benefits your car insurance company offers your teens.

The Detroit Auto Show recently revealed some upcoming car models that consumers will find much value in and are worth waiting for if you are in the market for a new car.  The article “6 Cars Worth Waiting For” by Peter Valdes-Dapena provided by CNNMoney, found on finance.yahoo.com, describes six of the top hot cars.

The cars discussed include the following:

1. Honda CR-Z
2. Ford Focus
3. Lincoln MKX
4. Mercedes-Benz E-class Cabriolet
5. Ford Mustang GT 5.0
6. Cadillac CTS-V Coupe

According to the article “Cheap Car From India Could Cost $8,000 in US” by Tom Krisher found on autos.yahoo.com, the world’s cheapest car is coming to the US market.  Unfortunately, once India’s Tata Nano is redesigned to meet emissions and safety standards, the US price will be going up.

The Tata Nano should be ready for distribution within the next 3 years and it is unknown exactly how much the car will cost.  In India, the car costs the equivalent of $2500, making it the world’s cheapest car.  Warren Harris, who is the Tata Technologies president, says the price will be more in the US and it’s estimated by some to be around $8,000.

Even $8,000 is a very affordable car by American standards.  Currently, according to the Edmunds.com automobile website, the cheapest new car on the US market is the Hyundai Accent at about $9970, so $8,000 is very competitive.  This also translates to lower car insurance quotes for those who buy this car since it will be cheaper to replace the car if it is damaged.

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.