Smart Auto Insurance Blog

If you or someone you know has gotten a DUI, Fox Business article “DUI and car insurance: What happens next?” has some valuable information for you.  Penny Gusner writes that your auto insurance rates will almost definitely increase after a DUI.  Coloradoans will likely pay 30% more, while the 12 points you’ll get taken away in North Carolina could actually cause your rates to increase 240%.  You may need to compare auto insurance from multiple companies once you get your driver’s license back because your company may even cancel your coverage once it expires.

Your auto insurance rates will be increased as long as your DUI is still on your state driving record.  That is three years in many states, but could be five or more years depending on where you live.  California residents are banned from receiving safe driver discounts from companies like Bristol West for ten years.  Sometimes you are required to carry SR-22 insurance after your license is reinstated.  You’ll have to purchase at least the minimum coverage required in your state and have your insurer file the SR-22 form of proof with the state.  There is a cost associated with this paperwork and you’ll have to file this proof for anywhere from one to five years.  The easiest way to avoid all of these headaches and more is to not drink and drive.

Written by Sara Smart

Follow me on Twitter: https://twitter.com/#!/SaraSmart55

A recent press release from Business Wire announces that Progressive Auto Insurance has been recognized for excellence in online auto insurance assistance.  In today’s online environment, more and more consumers are turning to the Internet to compare auto insurance quotes and benefits.  ProgressiveAgent.com offers a wide variety of services making the user experience easier and more straight forward and this has been recognized through receipt of the Standard of Excellence award from the 2011 Web Marketing Association’s WebAwards competition.

Progressive’s Agency distribution business leader, Karen Barone, says this website was specifically designed to make it easier for consumers to use a local agent and also help agents grown their businesses.  They feel honored to receive this award and feel good that they are doing things right.  ProgressiveAgent.com helps consumers find quotes, find a local agent, and also research insurance options.  You can learn more about Progressive’s variety of insurance options including boat, commercial auto and motorcycle insurance.

The judges at the online awards competition say ProgressiveAgent.com is useful and easy to navigate.  Many websites are looked at and seven criteria are considered.  This includes design, copywriting, innovation, content, interactivity, technology, and ease of use.  Websites across the nation are considered and 96 industries were reviewed by judges.  This is a great opportunity for websites to compete and show off their best practices through the competition.  Overall, it should make user experience better for all consumers turning to the Internet for their shopping needs.

Written by Sara Smart

Follow me on Twitter: http://twitter.com/#!/SaraSmart55

Auto insurance quotes can be higher on cars that are the most commonly stolen.  Knowing this can help you make a decision on what type of car you want to purchase when you start to compare auto insurance policies.  The National Insurance Crime Bureau (NICB) recently announced their findings for 2010 in the most commonly stolen vehicle types and consumers are anxious to know.

It’s no surprise that for the third straight year in a row the 1994 Honda Accord is the most stolen car for 2010.  Over 50,000 Accords were stolen in 2010 according to the article “The Most Commonly Stolen Vehicles In The United States” on US Insurance Online.  It’s suggested that weak security systems and a continuously high demand for parts are the two main reasons that the ‘94 Accord continues to be stolen the most.

The spokesperson for NICB, Frank Scafidi, says there is a black market for important parts and sometimes cars are worth more for their parts than they are when they are still in tact.  Between 2002 and 2009 there were many more foreign cars on the top 10 list when compared with domestic models.  In 2010, there were actually six American models on the list which is a turn in the trend.  The Honda Accord, Honda Civic and Toyota Camry were the three top most stolen cars in 2010, so consider this when purchasing your car considering your auto insurance rates many be higher due to the high theft.

Written by Sara Smart

Follow me on Twitter: http://twitter.com/#!/SaraSmart55

Purchasing auto insurance coverage can be complicated and is not as straightforward and some might think.  There is a lot to consider when shopping around for a policy and knowing the facts upfront will help you make the best decision.  J. Edward Knight & Co helps to put some rumors to rest out there about auto insurance in the article “Fact vs Fiction: Uncovering Auto Insurance Myths” on Waldo.VillageSoup.com.

The first myth discussed is that full coverage will include everything if you happen to be in an accident.  In most states, only liability insurance is required so be sure to understand what is actually covered in your policy.  Next, many people think you are required to get three estimates when looking for someone to fix your wrecked car.  While some insurers require this, many don’t so it might be a perk to look out for when you compare auto insurance quotes.

The next myth is that your auto insurance rates will automatically increase if you are in an accident.  The truth is, more and more auto insurance companies are giving graces to good customers so their rates don’t automatically jump after just one accident.  Definitely worth looking into.  Also, do not assume your car is covered if you lend it to someone and they are involved in an accident.  Sometimes it involves having a specific addition to your policy.  And the last myth talked about in the article deals with purchasing a new car.  Most auto insurance companies require that you notify them with the purchase of a new vehicle and despite what many people think, the DMV does not automatically update vehicle information with insurance companies.

Written by Sara Smart

Follow me on Twitter: http://twitter.com/#!/JoannaCliff78

It’s becoming common knowledge that having a good credit score will save you money on your auto insurance rates, but it’s unclear exactly how much it will save you.  Based on a recent CarInsurance.com study, drivers with credit ratings over 750 save about $783 a year on their auto insurance quotes when compared with a typical driver in the same age group with average credit scores.  The study used 42,809 auto insurance quotes to determine this figure and the results are surprising.

If you calculate this out over a lifetime of driving, a person with excellent credit can save approximately $22,815 on their auto insurance premiums.  Credit is only one factor out of many that insurers use to calculate quotes but it’s becoming increasingly important.  Auto insurance companies strongly defend their use of the score despite many consumers finding it unfair.  Insurers have found a direct correlation between someone’s credit rating and the chances of them filing a claim.  Regardless of the reasoning behind this connection, there is a connection and it makes sense for insurers to use this information.

The good news is that you have control over your credit score.  Even if you have filed bankruptcy or charged off some accounts, you can repair your credit through time and bill management.  It’s important to keep your credit card debt down and make all of your payments on time.  It may take a few years, but once your credit score has improved you can start to compare auto insurance quotes and hopefully see a difference in the rates you receive.

Many people wonder if using an agent is the best way to purchase auto insurance.  It’s true that using an agent can save you some time and possibly save you some money.  If you aren’t internet savvy, then using an agent may be the way to go.  Many companies offer agents to help customers with their needs.  One of these companies is Founders Insurance.

Founders auto insurance is offered in Illinois, Indiana, Ohio and Wisconsin with limits up to $100,000/300,000/50,000.  They offer quick, electronic SR22 filing and take international and out-of-state drivers license.  According to their website, Founders Insurance is a preferred choice of agents for higher risk policies.  Whether you have a poor driving record, poor credit rating, or coverage lapses, Founders will work with you to try to get you the best coverage possible.  This is where an agent can come in especially handy.  High-risk drivers often have a harder time finding quality auto insurance online or on their own.  An agent knows where to look to get deals for non-preferred customers.

Founders Insurance also has complete online capabilities including quoting, binding, and policy issuance, payments, endorsements, document reprinting, renewals, claim reporting and form downloads.  You can even chat online or over the phone with an underwriter with any questions you may have about your policy and quote.  Founders works hard to have state-of-the-art imaging systems for underwriting and claim handling and are constantly working to improve their business.  Speak with an agent to see if this might be the right option for you.

We all know that competition generally returns better prices for products but that holds extra true for car insurance quotes.  A survey from Gocompare shows that approximately 25% of consumers do not change companies when it comes to car insurance, homeowners insurance, and other financial accounts.  The article “Consumers Benefit From Competition for Car Insurance Quotes and Bank Rates” by Ed Dixon on Newstaar.com points out how drivers are missing out since car insurance is a highly competitive industry.

Most car insurance companies do not offer loyalty benefits for staying with the same insurer, so with that said, why aren’t more people shopping around to compare quotes?  Awareness is definitely one concern.  Many consumers aren’t aware of how highly competitive the market really is and don’t even think of changing companies.  They inadvertently have loyalty to an insurer and they’re not even sure why.

With so much competition in the car insurance arena, drivers who are no shopping around are missing on a huge opportunity to get lower rates, especially if they have a good driving record.  If you’ve been with the same company for years and years, your rates may have slightly gone up since you first became a customer and you don’t even realize it.  By shopping around you are getting other companies to fight for your business and offer you market low prices.  There’s no downside to shopping around.  If no one can beat your current price then you just stay with your current provider and no harm done.  You’ll likely be surprised how much money you can actually save.

It’s generally recommended that everyone should compare auto insurance quotes when shopping for a policy, but new research shows that it pays of big time for drivers under the age of 25.  According to the article “Price Comparisons Pay Off for Yonnger Drivers” by The News Tribune, average premiums vary from insurer to insurer but the difference is very large when you are a young driver.  Des Toups, senior managing editor at the CarInsurance website says the difference is massive.

As an example, a 55 year old man can save an average of $456 a year by shopping multiple auto insurance companies, whereas a driver under 25 can save about $1102.  This is an extremely large difference that young drivers should be aware of.  One reason premium quotes vary so much for young people is their driving record.  They often are a question mark and this can be a major driver of auto insurance quotes when shopping around.  Young drivers don’t have a track record yet to prove they are good drivers and each insurer has its own method of determining the risk of these drivers.

There doesn’t seem to be a consensus of what ultimately matters or not.  Some see good grades as a factor while other insurers do not.  There are many factors that go into determining an auto insurance quote and it’s hard to tell for a young driver what will drive the quote the most.  So shop around and compare quotes, especially if you are young with a limited driving record.

Most car insurance companies, including Progressive and American Commerce, have their own calculation for determining car insurance quotes.  You may feel like the rate you end up paying is out of your control but that isn’t necessarily the case.  There are numerous factors insurers use that are within your control and knowing what they are can help you save money.

The biggest factor is often driving record, and although you cannot do anything about the past, you can control your future driving habits and wait until previous driving violations fall of your records, which they eventually do.  You can have a clean slate with a little patience and careful driving practices.  Another big one these days is credit rating.  Again, the past is the past, but derogatory marks fall off your file in about 7 years, and focusing on paying your bills on time and keeping your debt levels down will pay off in the long run.

Of course what type of car you drive is going to have a huge impact on your car insurance quotes.  In general, the more expensive the car the higher your quotes will be.  Take a serious look at how big of a car you need, and how important luxury really is considering the overall costs.  Not only will that actual car cost more money, but maintenance and insurance will be higher.  The extra money can add up to a lot over the years.

And make sure you are shopping around for the best rate.  Just because one car insurance company gives you a hefty price, doesn’t mean they all will.  Get at least 3-4 quotes, if not more, and compare any trends you may see.  You’ll also want to make sure your coverage is sufficient and meets your needs.

California auto insurance has had its ups and downs with auto insurance rates, and for 2011, California ranks 29th in auto insurance affordability according to the article from Mark Glover of The Sacramento Bee.  This was based on a new report released by InsWeb Corp.  This is actually an improvement from their ranking last year which was 34 in the Car Insurance Affordability Index survey.

In order to rank the states in their affordability, InsWeb looked closely at all 50 states and Washington DC.  InsWeb compared household incomes with the average auto insuance costs throughout the state to determine affordability.  For the 2nd year in a row, Massachusetts came in first place with a factor of 2.09%.  Louisiana came in last place with a factor of 6.76%.  California had a factor of 3.34% which was pretty close to average.

Being in one of the more expensive states for auto insurance makes it even more important to compare auto insurance online, or through an agent.  Rates can vary significantly from insurance company to insurance company.  They will look at many factors including location, driving record, and car make.  If you think you are paying too much for auto insurance shop around to make some comparisons.