Smart Auto Insurance Blog

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.

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.

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 “How Does Cell Phone Use Affect A Cheap Car Insurance Quote?” by Sharon Gibson on youronlineinsurance.com, cell phone safety is a major concern for law enforcement.  More and more traffic incidents are caused by people talking and texting on their cell phones.  Cell phone usage is a huge distraction and directly affects your driving.

More and more auto insurance companies are offering discounts to drivers who are willing to drive safer.  You may get a discount for having a cell phone disabling system which is a device which blocks calls as well as text messages while you are operating the car.  Some companies will flat out ask you what your driving habits are in regards to cell phones.  Your answer may directly affect your car insurance quotes.

In today’s busy world it is becoming increasingly harder to put down the cell phone or personal digital assistant.  It’s important to realize the impact driving while using your phone can have.  Not only are you more likely to be an unsafe driver but it could end up costing you hundreds of dollars in insurance premiums over the years.

According to the article “Allstate: More Customers Buying Auto Insurance Online” by Lavonne Kuykendall found on money.cnn.com, auto insurance companies who have relied on agents to bring in new customers are now adapting quickly to Internet sales.

Thomas J. Wilson, the chief executive of Allstate Corp, says their goal is to have fewer, larger agencies that offer a more consistent experience for policyholders.  He also said that half of its new auto insurance policyholders first make contact through the Allstate website.  Allstate is quickly adjusting to meet customer Internet demands.

The article points out that Allstate’s plan calls for fewer agents with an enhanced local presence.  About 87% of web site shoppers end up closing the deal with an agent so agencies continue to be an important part of their plan.  This is particularly true for homeowners with more than one car who often prefer using an agent because the policy can get complicated.

Dairyland Insurance, which specializes in covering motorcycles has agents in many states.  Like most auto insurance companies they determine your rate by a number of criteria, and when shopping around for motorcycle insurance particularly it’s important to know what factors are being used.

According to the article “Dairyland Motorcycle Insurance” on motorcycle-insurance-tips.com, your car insurance quotes are based on your age, how much experience you have driving a bike, your location, claims history and driving record.  They also considered if you have taken the important MSF training course on motorcycles.

They type of bike you drive is also factored in.  The newer and more expensive the bike, generally the more expensive it will be.  You can have some control over your monthly premium by adjusting your coverage levels for medical and liability protection.  Wealthy drivers with a lot of assets may want more protection then someone with little to no assets.

According to the article “Credit Scoring Is Hurting Customers” found on sacbee.com from The Dallas Morning News, even if you are a responsible driver you may end up paying higher car insurance rates if you have blemishes on your credit file.  Whether or not this is fair is currently a huge debate.

The Dallas Morning News analyzed the insurance industry and found that people with poor credit paid 35% more on home and car insurance.  In certain cases, the insurance rates were more than double people with good credit, even if they had similar claim history.  This just goes to show how crucial it is to stay on top of your credit score.

Auto insurance companies believe that using credit as a risk factor helps to identify higher risk customers.  They cite The University of Texas research that shows drivers with lower credit ratings file more claims with their insurers.  They say that if it weren’t for the credit rating factor everyone would pay higher rates.  Credit scoring is no where near an exact science and can often hurt good customers. 

As you are shopping around for car insurance quotes try to identify if your credit may be affecting your premiums.