Smart Auto Insurance Blog

Once a child turns 16 and they receive their license they must be covered by auto insurance and that usually occurs by a parent placing them on their policy.  When a teen has divorced parents and has multiple residences, auto insurance coverage can get a little tricky according to the article “Auto Insurance Coverage for Teen Drivers With Divorced Parents” by LVRJ.com.

Auto insurance companies and states have different policies when it comes to covering additional drivers in a household so it’s important to contact your insurer to see how to proceed.  Chances are, if you have a child who has access to driving cars at both parent’s homes then both parents will need to add the child to their policy.  The article says that some auto insurance companies will advise divorced parents that whoever has custody during the school year should add the child onto their policy.  Both parents are encouraged to contact their insurer to see how the requirements may be different.

Auto insurance is a requirement for all drivers and this is often glossed over by new drivers.  Regardless of who adds the child to the policy, there should be a united front on rules while driving.  Prohibit cell phone use and texting when in the car, limit the number of passengers when your child is driving, strictly require seatbelts and establish a driving boundary where your child can drive at any given time.  Remaining firm on these guidelines will help your child become a safe driver and hopefully cause lower car insurance quotes for you and your family.

A new survey shows a concerning trend.  Of the 1000 Americans with auto insurance surveyed, many have confusion over what to do in the case of an auto accident according to the press release “New Survey Reveals Uncertainty on How to Respond When Auto Accidents Happen” from State Farm found on PR News Wire’s site.

About half of respondents feel it’s against the law to refuse to report an accident to an insurance company while 41% think it’s ok to not go through insurance.  74% say they are a witness to an accident if they are within 100 ft and 66% say being a witness means not getting involved.

One third of respondents believe that saying “I’m sorry” is more than just an apology and doesn’t admit fault.  83% of Americans stated they are likely to pull over if they witnessed an accident which did not involve them.  These questions don’t necessarily have clear cut answers and need evaluations for each unique situation.  Auto insurance is crucial, but if you don’t know the ins and outs of your policy you can be left confused and misinformed.  Each policy is different as well, so you need to compare auto insurance companies to fully understand what type of coverage you have.

Identity fraud is a growing problem with the rise in popularity of Internet quotes on auto insurance and online banking.  Although victims can end up not being liable for lost money, it can be very pricey for the victim to prove their innocence.  Their credit rating can also be destroyed which may take years to repair.

Many insurance companies are offering protection to their policy holders to help them avoid this disaster.  Encompass Car Insurance is one of those companies and on their website they outline what their Identity Fraud Protection covers.  They will pay up to $20,000 for expenses incurred as a result of identity theft.  They will also cover lost wages up to $500 per week for up to 4 weeks for time away from work because of the fraud.

Some other benefits of the products are covered loan fees if you are denied a loan due to incorrect information caused by the fraud and any new application fees incurred.  With prior approval from Encompass Car Insurance they will also pay for reasonable lawyer fees.  If a lawyer is used to defend you against any lawsuits are filed against you by any merchants or collection agencies, Encompass will help you.  This is an extremely valuable benefit to have through your insurance company, and not all companies offer it.  Be sure to look into what kind of protection you may have.  It could save you a lot of time and money.

In today’s economy more and more people are interested in saving money in unlikely places.  Many people don’t realize that it can be easy to save on your auto insurance quotes.  The article “Eight Tips for Saving on Your Car Insurance Rates” by Steve Cypher on autocreditexpress.com highlights the top 8 ways to save.

The first and easiest is to shop around and compare auto insurance.  This may seem obvious, but many don’t realize that they are paying too much for their auto insurance so don’t bother shopping around.  Another tip is to combine your policies for possible discounts.  Repair your credit before you shop around to get a lower quote.

Be sure to check and see if any professional associations you are part of earn you discounts.  AARP, certain university alums, and military groups are just a few examples.  Students often earn discounts as do certain cars and low mileage.  Another way to earn discounts that many don’t realize is to go paperless with your bill and payment options.

Prop 17 is a proposal on the California ballot sponsored by Mercury Insurance which will allow auto insurance companies to charge many drivers for various reasons.  This includes military people who did not purchase auto insurance while living on base even if they didn’t own a car at the time.  This is according to the article “Nation’s Leading Insurer of Soldiers, USAA, Criticizes Prop 17; VoteVets.org Announce Opposition” found on InsuranceNewsNet’s website.

USAA, which was formed in 1922, says it cannot support the bill because of the negative impact it will have on active duty men and women.  The rating system does not take into consideration the special circumstances of our military men and women and USAA does not feel this is right.  VoteVets.org signed a ballot argument against Prop 17 and they represent 100,000 veterans and military families.

Under Prop 17 drivers, including soldiers serving stateside, who stop driving and did not need insurance for a certain time period would have to pay hundreds more for their auto insurance when they decided to restart the coverage.  Doesn’t seem fair to people who have legitimate reasons to stop carrying insurance for small periods of time, such as the military.

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.

There are many unknown auto insurance discounts that consumers should be aware of.  The article “Little-Known Auto Insurance Discounts” found on savingadvice.com highlights some of the discounts.

Being a full time student can help you get lower auto insurance quotes.  Not only can being a student help you, but if you carry good grades, usually a B or higher, that can earn you further discounts.  Some auto insurance companies offer discounts for federal employees, members of the military, or members of various groups like AAA.

Discounts are sometimes offered to those who have the VIN number on their car window.  How you pay your bills can affect your auto insurance quote and so does where you live.  Driving less and having safer cars all can warrant you discounts on your auto insurance.  These are just a few of the variables taken into consideration when quotes are determined, but you do have control over them so it’s important to understand what factors are being considered.

According to the article “Texting While Driving Ban: Texting While Driving Laws Do Not Reduce Accidents” found on khabrein.info/news, a recent study shows that the recent bans on texting has not effectively brought accidents down in California.

The research was conducted by Highway Loss Data Institute, which is a non-profit organization supported by the auto insurance industry.  The research shows that the rate of accidents before and after laws were enacted in California have not significantly changed.  The study also pointed out that accidents in CA haven’t shown any significant changed in comparison to Arizona and Nevada where there are no bans on texting while driving.

The Automobile Club of Southern California finds the research interesting but they do not plan on accepting the study, citing that the samples were not large enough and the study is inconclusive.  It’s still known that any distraction while driving will put you at a higher risk of being in an accident, whether it’s texting, changing the radio, or programming a GPS.

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.

According to the press release “Federal Government Cracking Down on Texting While Driving” an Executive order put forth this year has banned all US government employees from texting on their cell phones while driving in government autos that are owned, leased or rented by the government.

Another part of this ban says these government employees cannot text in their own cars either if they are conducting company business or using company phones.  As of 2010, penalties are being placed on those breaking the rule.  This trend continues as over 21 states have laws banning texting while driving.  Most auto insurance companies, such as Dairyland Insurance, urge their policyholders not to text while driving.

The Virginia Department of Motor Vehicles reports that about 30,000 car accidents per year are because of distracted drivers.  About 100 people have been killed in these types of crashes and approximately 15,000 injured.  These staggering numbers are the reasons texting laws are being passed in many states and being encouraged by many auto insurance companies.