Smart Auto Insurance Blog

Business Insider published an article by Emmet Pierce to let consumers know “The Seven Most Terrifying Car Insurance Words.”  These typically come up after some type of accident or driving violation, but in some cases it’s just because of your age.  If you cause a car accident, a surcharge will be added to your auto insurance policy for a pre-determined period of time.  The only ways to possibly get out of this added surcharge are appealing a traffic ticket and begging your auto insurer.  But there is a good chance that you’ll just have to wait it out until your surcharge goes away.

Once your state mandates that you carry SR-22 insurance, the only way you will be able to get cheaper car insurance is by having a good driving record going forward and waiting out the time period of three to five years.  An SR-22 form is a certificate of financial responsibility that high-risk drivers have to show the state government after an infraction such as a DUI.  Auto insurance rates will increase because your insurer has to file these forms and because you are considered a risky driver.

If your auto insurance policy is canceled, you can be in a world of trouble.  Not only are you no longer insured by the company with which you have a history, other insurers will be much less likely to offer you coverage because of the previous cancellation.  Nonstandard insurance is reserved for drivers with a bad driving past and is not available from all auto insurance companies.  This comes with a hefty price tag, but carrying nonstandard insurance, waiting out the average time period of three years, and driving safely are the only ways to get off the nonstandard insurance list.

Once a parent has to add a teen driver onto their insurance policy, rates can increase by 50 to 100%.  This is because teens have a history of driving fast, using poor judgement, and lack experience.  Teen drivers are three times as likely to get into a fatal car accident as drivers twenty and older.  There are discounts for good students available and it makes a difference if your teen keeps a clean driving record starting at 16, but rates won’t go down significantly until the age of 25.

Many fees are being tacked on now for things like emergency response at an accident scene, even if you weren’t at fault in the accident.  Look out for added fees on your policy.  Finally, step-downs are used by some auto insurance companies.  If someone is driving your car that isn’t listed on your policy, your insurer might have a provision to lower your coverage to state-minimum levels if they get into an accident.  Most drivers are unaware they have this step-down provision, but it could cost you a lot of money.  Check with your auto insurance company regularly to make sure you know the ins and outs of your policy and to see what discounts you may qualify for.

Many consumers associate the term “non-standard” auto insurance with high risk, but this isn’t always the case.  According to the Founders Auto Insurance website the terms are often synonymous.  They do point out however that “non-standard” simply means not adhering or conforming to the standard policy.

Many of Founder’s forms, classes, and territories do actually conform to auto insurance industry standards, but some aspects do not making part of it “non-standard”.  Most non-standard auto insurance companies start off with a standard methodology, and make appropriate modifications to suit their customer’s needs which are always changing.  They take into consideration the economy, the market demand, and consumer needs and tailor the policies to fit the times.

Founders Insurance offers vehicle surcharging, modified territories, and they create classes based on what is going on in the market.  There is a unique risk selection criteria, but a very high percent of new business at Founders has been previously insured with a clean driving record.  Founders also follow similar models for their homeowners insurance and commercial liability & property policy options.

State Farm auto insurance is a proud supporter of Mothers Against Drunk Driving (MADD), whose primary mission is to put an end to drunk driving and support victims of such crimes.  They also fight to put an end to underage drinking.  State Farm is a national sponsor and they share very similar values in educating youth about the dangers of drinking.

“Protecting You/Protecting Me” is a comprehensive program offered through MADD which uses an approach to stop underage drinking through effective, educational efforts to stop the access of alcohol to our youth.  This excellent program is a research-based plan which is nationally recognized nationally.  The Substance Abuse and Mental Health Services Administration, Center for Substance Abuse Prevention named it a “Model Program”.

State Farm and Meharry Medical College also came together to research why seat belt and child safety is lower among African Americans.  They plan on using the findings to influence legislation to further support cultural public awareness programs.

Driver safety continues to be a priority of State Farm.  If you choose to disregard any safety provisions put forth by the law, then not only are you putting yourself and other drivers lives at risk but you are increasing your chances of paying higher auto insurance rates or having to carry SR-22 insurance.  There are no benefits to breaking the law when it comes to driving.

Infinity Auto Insurance has a branch of their company which insures collectible automobiles called Classic Collectors Insurance.  This type of insurance comes in very handy for those rarely driving a car because it is considered a Classic.

Like many auto insurance companies, Infinity has some guidelines when insuring a classic car.  For example plans have low mileage coverage - 1000, 3000, or 5000 miles.  And there is a list of things cars cannot be used for such as:

1. Work/school commute
2. Regular personal use
3. Business/commercial use
4. Racing or timed events
5. Backup transportation

There are also some strict requirements that must be adhered to.  All drivers in the household must have a valid driver’s license and may not have had more than 1 moving violation or at fault accident in the past three years.  There is a max of 2 drivers per household.  Also, the driver must have at least 10 years driving experience in order to qualify for this type of coverage.

If you own an antique, modern classic, kit cars, replicar, an exotic, street rod or a special interest modified car get auto insurance quotes to see if you can get the appropriate classic collectors coverage.

We all know how dangerous drinking and driving is, but the epidemic continues and people are still dying in tragic accidents caused by drunk drivers.  According to the article “More Young Women Driving Drunk” by Steven Reinberg on BusinessWeek.com the trend is growing in young women which is very unfortunate.

Men still make up the majority of drunk drivers, but the number of drunk women on the road is growing.  A study based on data from the US National Highway Traffic Safety Administration found that women drivers involved in deadly car crashes increased over the years 1995-2007.

Weekday accidents with alcohol involved among females increased by 3.5%, and weekend alcohol related accidents increased by 2.2%.  With more women consuming alcohol in large amounts there are more women making poor decisions and causing horrific accidents.  Simply said, do not drive drunk.  Even if you do manage to get extremely lucky and avoid an accident you are at risk of expensive fines, jail time, and carrying special SR22 Insurance for high-risk drivers.  None of that is worth it, especially putting lives at risk.

According to the article “Regulators Shy Away From Imposing Emissions-Cutting Auto Insurance” by Evan Lehmann on NYTimes.com, key insurance regulators recently said they won’t require the auto insurance industry to offer auto insurance policies that help reduce emissions by rewarding drivers who are on the road less.

The regulators also weren’t keen on the new plan to make those policies standard across the county.  This plan is often known as “pay-as-you-drive”.  Joel Ario, Pennsylvania’s insurance commissioner believes they will never require the pay-as-you-drive concept.  Ario and other researchers have promoted the drive less mentality over the years.  They believe drivers will stay off the roads more if they know they will pay less on auto insurance quotes because of it.  This will lead to less environmentally unfriendly emissions from automobiles.

The concepts are similar to other movements such as the Energy Star appliance standards, and the green building code called LEED, or Leadership Energy and Environmental Design.  Auto insurance companies such as Eastwood Insurance, would have to offer some type of policy that rewards drivers for driving less, but in a way this already makes drivers less risky which often translates to lower rates.

Eastwood Insurance and Infinity Auto Insurance are both known for their expertise in non-standard auto insurance.  In today’s environment, these types of companies are becoming more and more important. 

Auto insurance is being dropped at an alarming rate and once you are caught driving without the proper coverage you may run into trouble finding a company to insure you.  This is where Infinity and Eastwood Insurance can help.  Infinity auto insurance ranks among the top 50 Property and Casualty Insurance companies in the US and is the 2nd largest underwriter of non-standard auto insurance through independent auto insurance agents according to their website.  Eastwood Insurance is a proven industry leader in non-standard auto insurance and offers quality sales and service for all types of auto coverage. 

If you find yourself in a situation where you are considered a high risk driver and have difficulty getting reasonable auto insurance quotes, check out these two companies.  You can get quotes directly online and comparison shop instantly.

It can be challenging to find affordable auto insurance, but it’s even harder if you have been involved in a serious accident or have many driving violations against you.  If you file too many claims you may find it harder to find auto insurance as well.

There are many drivers who fall into this category.  That’s why a unique market has emerged in the auto insurance industry known as “non-standard auto insurance”.  Many auto insurance companies specialize in this type of insurance such as Infinity Auto Insurance and Eastwood Insurance.  These types of companies understand the kind of protection high-risk customers need. 

It’s important that these companies thrive because there is definitely a need for high-risk drivers to have coverage, perhaps more important than safe drivers.  It can be challenging for an insurer to take on these types of customer since they often cost the company more money and even though they generally pay higher premiums it doesn’t always offset the costs.  This may translate to less revenue which companies do not want to risk.

It is against the law to drive without auto insurance in Arizona and most of the country.  You also must carry proof of insurance.  According to the article “Proof of auto insurance requirements changing in Arizona” by Delane Cleveland on fox11az.com, the law is getting stricter when it comes to carrying proof of Arizona auto insurance. 

Tony Riojas, the presiding magistrate for Tucson City Court says no proof of insurance is one of the most common citations that come through court.  Currently, if someone has to go to court to prove insurance, charges are often dropped or reduced but starting October 1 that will change.  Before you can get any reduction in fine not only must you show proof of insurance but you will also need to prove that you have not gotten an insurance violation within the past two years, or only one citation in the past three years. 

Repeat offenders can face fines up to $1,000.  Governor Jan Brewer signed the bill back in July to approve these provisions and insurance companies across Arizona approved.  They believe this bill will reduce the number of uninsured drivers on the road.

Here’s an update on what to expect from California auto insurance quotes due to the proposed pay-as-you-drive program.  According to the article “Poizner issues final pay-as-you-go auto insurance regulations” there has been some headway on the proposal. 

California Insurance Commissioner originally proposed the pay-as-you-drive regulation back in September of 2008 and just this past Thursday issued the final regulations which will allow insurance companies to offer rates based on the actual miles driven. 

Once the new regulations go into effect, insurers will be able to offer a mileage program instead of, or in addition to, current estimated mileage programs.  The hope is that the regulation will save California drivers money, and cause people to drive less which will in turn reduce emissions and reduce California’s dependency on foreign oil.