Smart Auto Insurance Blog

Auto insurance companies are always competing to win business, but MetLife had more in mind when they started their new “Teens on the Road to Safety Program”.  This program is specifically designed to encourage young drivers to make safe driving a priority.  The press release on Business Wire details how the program is expected to work.

MetLife Auto Insurance knew something needed to be done to reign in the number of accidents being caused by teenagers on the road.  One in three teenage deaths occur in car crashes and MetLife believes that can be prevented through education and awareness.  The program encourages young drivers to stay safe on the road by offering drivers who go a full year without accidents, claims or moving violations a $50 gift card from American Express.  If their commitment to safe driving continues, they can earn another $50 gift card the second year they avoid accidents, claims and moving violations.

In order to be eligible for the program, teens must complete 20 driving trips weekly with a guardian and submit a list of the trips to MetLife.  MetLife Auto Insurance has learned through research that practicing good driving skills with an experienced driver is an effective way to become safer on the road.  This will ultimately decrease the number of teen deaths on the road.  The program is available to 16 and 17 year olds who are covered under MetLife and live in a participating state.

Written by Sara Smart

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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.

Bristol West Auto Insurance, along with many other auto insurance companies are getting hit with fraudulent claims.  According to the article “Report: Staged Car Wrecks On the Rise” by James Hart on blogs.kansascity.com, there has been a 40% jump in car accidents since 2007 staged on purpose with the sole purpose of ripping off insurers like Bristol West.  This statistic comes from a report from The National Crime Insurance Bureau.

Many of the fraud accidents are committed by all knowing parties, but sometimes the perpetrators target innocent drivers.  To avoid becoming a target, follow these simple tips:

• Avoid tailgating
• Always call the police immediately if you are involved in an accident
• Use your phone camera to document any damage as soon as it happens
• Never admit fault

Protecting yourself on the road is very important and knowing this type of fraud is going on can help you be more prepared if you are involved in an accident.  Avoiding the accident altogether is obviously ideal so your car insurance quotes are not affected.

Encompass Car Insurance has a great online resource for those customers with teenagers on their policies.  With teen drivers having an alarming high rate of fatal accidents it’s no wonder they are treated differently.  Just because your teen has been allowed to carry a driver’s license, it does not mean they are as safe as an experienced driver.

There are many things you can do to help prepare yourself and your teen for the challenging road ahead.  You will most likely see your auto insurance rates increase in addition to your anxiety of sending your inexperienced driver out on the road.  Encompass has gathered a  convenient resource on their website to better prepare yourself.

• Some of the topics covered include:
• Teenagers and safe cars
• Tips on helping teens drive better
• Setting guidelines for your teen
• Understanding graduated licensing
• Developing a Parent-Teen contract

When you create boundaries and allow for more time behind the wheel your teen will be better prepared for challenging driving situations and hopefully save lives.

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.

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.

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.

There are some great tips on defensive driving to help keep you safe on the Encompass Car Insurance website.  Their Plan & Learn section on their site says that drunk drivers are the most dangerous violators on the road and half of all highway fatalities are due to drinking and driving.

They offer some tips to keep your eye out for potentially drunk drivers when you are on the road.  Some of these include unusually wide turns, weaving, swerving, sudden stops, tailgating, no headlights at night, drifting, slow response to traffic signs, or driving on the wrong side of the road.

If you happen to notice such a driver on the road it’s important to maintain a safe distance.  Allow the traffic violator to pass you, and do not try to pass them.  If the driver is coming head-on move into the nearest shoulder and use your horn and lights to try and get them to realize they are driving the wrong way.  If possible, get the driver’s license and report the situation to the police.  The quicker this person can get off the road, the safer everyone will be.