Smart Auto Insurance Blog

It has been a common practice of auto insurance companies to use location as a factor in determining auto insurance rates.  According to the article “Proposal would eliminate ZIP codes as factor in Wisconsin car insurance rates” by Paul Gores of the Journal Sentinel, WI state legislature wants auto insurance companies to stop using zip codes.

Some of the Democratic legislators have brought this plan back despite a similar plan being vetoed by Gov. Jim Doyle back in June.  Auto insurance rates can be up to 60% higher in areas that are heavily populated.  This may seem unfair for those living in urban areas, but the auto insurance companies claim it is part of mitigating risk.  The current system gives higher rates to those in bigger cities because more theft, accidents and vandalism generally occurs in these areas.

The auto insurance companies also point out that if zip code was not allowed to be a factor, rates would increase substantially for those living in rural areas.  There would simply be an overall redistribution of premiums.  Auto insurance companies look at many different factors including driving record and credit score.  The Governor will have to review this bill and see if it will be considered.

The Hartford Financial Services Group has some helpful tips on how to save money on auto insurance found on courant.com in the article “Tips for Saving $$ On Your Auto Insurance” by Korky Vann. 

Many auto insurance companies will offer discounts to long time customers so it’s worth checking with your current provider to see what you may qualify for.  Also, some providers offer group plans from employers.  These are usually available from business, professional or alumni groups.  Discounts may be available through these associations when more than one car is insured on a policy or other products such as home owners insurance is used through the company.

Auto insurance quotes can also be lowered by paying your bills on time.  Your credit score is an important factor in determining auto insurance rates.  You can also raise your deductible for a lower monthly payment if you are looking to save money month to month.  The most common advice is to shop around to see what competitive offers may be out there.

According to the article “DMV Requires a New Auto Insurance Policy When You Move to a New State” found on bestsyndication.com, your driver’s license cannot be updated with a new state until you change your auto insurance.

The Department of Motor Vehicles (DMV) requires drivers who are moving to a new state to take out a new and updated auto insurance policy.  Without the new policy in place you will be unable to obtain a new license.  If you are staying within state lines you still need to contact your auto insurance company since part of your rate is based on where you live, but the policy may not be redone at that time. 

When moving, there is already a long to do list, but be sure to make updating auto insurance a priority.  It can cost you a lot of time and money if you get stuck driving without insurance and you are pulled over.

Everyone knows that driving while intoxicated is extremely dangerous and against the law, but what many may not realize is that it’s very expensive as well.  According to the article “Driving Under the Influence is Expensive As Well As Dangerous” by the Kalamazoo Gazette Staff found on mlive.com, drinking and driving violations are the most expensive of all traffic violations.

According to insurance.com, DUIs can shoot auto insurance rates up by as much as 38%.  Their RateWatch Data shows that the lowest rate quoted to someone with a DUI was $2148 in 2009 across the country.  That is about $435 more than a driver who does not have a DUI. 

Not only are you putting your life at risk as well as other people on the road if you drive drunk, but you will most likely have your license suspended if you are caught and you will have to file a SR22 Insurance form, which is a certificate submitted to the Secretary of State proving that you have liability insurance.

According to the September 8th press release on onlineprnews.com, submitted by insurance-auto-insurance-health-insurance.com, uninsured drivers are on the rise.  In 2007 about 23% of motorists were driving uninsured but now that statistic is closer to 1/2 of all drivers who do not have auto insurance. 

As unemployment rates increase so does the number of uninsured drivers.  But all drivers are at risk on the road when so many do not carry insurance.  A simple auto insurance policy can offer many benefits including property damage, personal injury protection, and many auto insurance companies also offer a term life insurance policy. 

The average payout for a term life insurance policy offered from auto insurance companies is between $10,000 - $25,000.  It’s usually paid in one lump sum to the next of kin.  There is also uninsured motorist insurance which is crucial, now more than ever, since so many other drivers are uninsured.  This type of protection covers you in case you are in an accident with someone who does not have auto insurance.  There are many benefits from auto insurance policies.  It’s just one more reason to ensure you are properly covered.

According to the article “Data Shows Auto Insurance Rates Rise for DWI Convinctions” by Lavonne Kuykendall on CNN Money’s site, auto insurance rates in general are on the rise. 

Information obtained by insurance.com shows that auto insurance rates for male drivers with a DWI or DUI convinction are rising faster.  DWI rates usually stay in effect for 5 years after a DWI conviction.

In 2009, male drivers who had a DWI conviction paid auto insurance which was about 24% more per year than did men without any violations.  This is up from a 22% difference in 2008.  The rate of increase for someone with a DWI has remained the same for women since 2008, at about 28% higher than the rate for women without any violations.

Short term auto insurance can be purchased for 1 day to 6 months for uninsured or underinsured motorists.  This is according to an article found on onlineprnews.com from InsuranceAgents.com. 

Since car accidents can occur at any time, but any type of driver it’s important to ensure that everyone on the road have insurance, even if it’s drivers who aren’t on the road regularly. 

One-day auto insurance can be beneficial for different scenerios.  Vacationers can purchase it when traveling, test driving a car, or borrowing  friend’s car.  Just because you are driving a short distance or a short time frame don’t think you are aren’t at risk of being in a financially disasterous accident.  Short term auto insurance quotes can fully protect you, so it’s worth looking into if this would fit your needs.

According to the article “California’s Largest Auto Insurer Plans Layoffs” on insurancenewsnet.com, Farmers Insurance Group is planning to cut hundreds of jobs as reported on Friday. 

The Los Angeles based auto insurance company told their employees they would be eliminating 554 jobs by the end of 2009, and that the total would reach about 750 by the end of 2010.  The job losses will affect the newly acquired company, 21st Century Insurance at The Woodland Hills complex, which currently has 979 employees.  This information was found in the the LA Times. 

This decision was made after carefully evaluating 21st Century over two months.  Senior Vice President Mark Toohey said that they hope to streamline operations with this effort.  Some of the displaced workers may be offered positions at 21st Century’s executive offices in Delaware, or transferred to other Farmers operations in California.

Carrying auto insurance is the law in most states, but according to the article “How To Cut Your Auto Insurance Bill” on bignews.biz drivers in record numbers are dropping their auto insurance policy because of unemployment and other financial issues.  The recession has taken a toll on us all.  But dropping your auto insurance can cause big problems and is not worth the risk.

Just one auto accident can ruin you financially if you are not insured, not to mention get you in big trouble with law enforcement.  If you are struggling to pay your bill, you are much better off in the long run to look for ways to decrease your auto insurance rate instead of dropping your policy altogether. 

One way to decrease your auto insurance rate is by raising your deductible to a higher level.  Another important step is to compare auto insurance quotes.  You can do so online, over the phone, or by visiting a nearby auto insurance agent.  Doing so can save you hundreds and the process is relatively painless.  Protect your assets and stay honest by keeping auto insurance policies in good standing if you are driving on the road.

According to an article on coosavalleynews.com by Tony Potts, State Farm auto insurance is reminding everyone that the Federal Government’s Car Allowance Rebate System (CARS program or “Cash for Clunkers”) has an auto insurance requirement.

Last week the US Senate agreed to extend the CARS program until Labor Day which is a great opportunity for more car owners to take advantage of the tax benefit.  By trading in an older car for a new one, tax credits will be given.  But there are stipulations, one of which includes auto insurance.  Trade-in cars must  be registered and insured for the full year before trading in.  This is an important reminder of how crucial it is for all autos to be covered by insurance.  Uninsured drivers pose a risk to everyone on the road, not to mention it’s the law in most states.