Smart Auto Insurance Blog

According to the press release “The Impact Accidents Have On Auto Insurance and Keeping Rates Affordable” found on wiredprnews.com, accidents affect auto insurance rates in numerous different ways.  Just because you have an accident doesn’t mean your rates will automatically increase.  It’s beneficial to understand what will ultimately affect your rates.

A very critical aspect of an accident is whose fault was it?  If the policyholder is found to not be at fault then it’s likely their auto insurance rates will not be affected.  Being at fault is what will probably change your rates.  Depending on the company’s underwriting guidelines, one may lose their good driver discount which can be up to 20%.  Injuries can affect your rate as well with the more serious the injury the higher the rate is affected.  If the collision is with an emergency vehicle like an ambulance or police car this can spike rates.  And of course if there are any drugs or alcohol involved rates can be severely affected.

Many insurance companies such as First Acceptance Insurance try to offer fair rates whenever possible.  If you are in an accident and your insurer raises your rates, it may be worth your time to shop around since different insurers have different underwriting policies and an accident may not affect your rate as much.

Auto insurance quotes have been increasing over the past 2 years and they are expected to keep increasing in 2010 according to the article “Be Prepared For an Increase in Car Insurance Premiums” by Justin Vasquez on cheapercarinsurance’s website.

The Office of National Statistics estimate insurance premiums to increase substantially.  States such as Montana can expect increases up to 12%.  There are certain types of cars that will experience high increases in auto insurance quotes.  Some  of these include the Kia Sportage, Hyundai Sonata, and Kia Lotze.

Most companies will be experiencing higher premiums, but many will still be competitive including Acceptance Insurance.  National US averages show that about 23 states have already seen an increase in auto insurance quotes since January ‘10.  Because of these increases many are driving uninsured and the Institute Research Council says about 16% of drivers will not renew their policies which is bad news for insured drivers and insurance companies.

There has been some concern that the 8 million Toyota cars and trucks that have been recalled may affect auto insurance rates.  But industry experts are saying this is not the case.  The article “Factors Influencing Auto Insurance Rates” by The Associated Press on ABCNews.com discusses the specific factors that do affect auto insurance prices.

These factors include driving record, miles driven, where you live, the type of car you drive, credit history, and the type of coverage you choose.  The article points out that the larger the policy the more expensive your auto insurance quote will be.  Some auto insurance companies offer discounts if you have your homeowners insurance and auto insurance under one policy.

Auto insurance rates also vary greatly from company to company and it’s encouraged to compare auto insurance quotes.  You can use online programs to get many quotes at once to save you a lot of time and ultimately save you money.

First Acceptance Insurance has a very useful section on their website that outlines your auto insurance policy in simple terms.  To summarize, there are generally 5 parts to a typical auto insurance contract.

Part 1 is called the Declaration section, which is unique from customer to customer.  Part 2 is the Coverage Parts or Insuring Agreement.  This sections discusses the coverage options and coverage limits.  Part 3 is Exclusions which highlights your policy’s limitations.  Part 4 is Conditions which outlines legal responsibilities.  Then there is Part 5 Definitions.  This section goes over terms and rights of the customer and insurer.  This section is sometimes referred to as fine print.

The names of the various sections may vary from company to company but the general points are discussed.  It’s beneficial to understand each section of your auto insurance policy so you can easily compare benefits as you shop around for auto insurance rates.

According to the article “Air Force Personnel Earn Substantial Auto Insurance Savings” found on Webwire, those who serve or have served in the US Air Force are often more likely to to find lower auto insurance rates on quality coverage.

There are many benefits that come from being a member of the Air Force, and lower auto insurance rates is just one of them.  Many auto insurance companies offer discounts to military men and women.  Some of these benefits include a savings of up to 50%, especially those who are active duty.  These people can also avoid state excise tax when purchasing vehicle registrations & license plates with a valid military ID.

With all that military men and women do for our country it’s great they can take advantage of lower auto insurance rates.  Many choose to go through USAA auto insurance which is specifically for military personnel and their families.  But just like everyone else, it’s in their best interest to shop around and compare rates to see which company can offer the best deal.

More and more auto insurance companies are using social networking sites to promote their product and sell lower rates.  Facebook and Twitter are two of the most popular social sites and they are being used by many, which is a great tool for consumers shopping for lower auto insurance quotes.

The press release “Social Networking With Free Tools Help Shoppers Learn and Save on Auto Insurance” found on prweb.com points out that shoppers can quickly find auto insurance savings by using sites such as Twitter and Facebook to their advantage.

Auto insurance companies such as Infinity Auto Insurance have set up accounts on Facebook and Twitter with company information, job opportunities and valuable information for those looking for lower auto insurance quotes.  Infinity has what’s called a “fan page” where customers and employees can show their support for a company and share good experiences with the public.  It is still to be determined the impact these powerful social sites will have on companies’ bottom line, but it’s promising to be lucrative and worthwhile.

As online auto insurance quotes are getting more popular so are the concerns over giving personal information over the internet in order to shop around.  According to the article “No Personal Information Needed For Online Auto Insurance Quotes” by John Pirro found on emailwire.com, auto insurance companies are recognizing these concerns and are making the process easier.

Many insurers allow online quotes without sensitive personal information such as a social security number or driver’s license number.  It’s important for consumers to understand though that the less information they share, the more of an “estimate” the quote really is.  A quote is no guarantee since most insurers use driving records and credit information in calculating auto insurance rates.

It can be beneficial to use certain websites where you only have to enter in your information once and the site will generate numerous quotes for you.  Limiting the amount of times you enter in your personal information can be helpful in keeping it safe.  Visit www.smartautoinsurance.com to learn more about obtaining online auto insurance quotes.

According to the article “North Dakota Has 3rd Lowest Auto Insurance Rates, Commissioner Says” found on Insurance Journal’s website, North Dakota has some of the most competitive auto insurance quotes in the country.

The Auto Insurance Database Report from 06-07 was released recently by the National Association of Insurance Commissioners which showed that North Dakota auto insurance has the third lowest rates in the nation.  North Dakota Insurance Commissioner Adam Hamm says this has been a continuing trend in the state.  North Dakota’s 07 auto insurance rate average was $657.63 which is 28% lower than the average of $911.84.

The same report shows Iowa and Wisconsin and the only two other states with lower auto insurance rates.  Washington DC, Louisiana and New Jersey ranked as the 3 most expensive states to buy auto insurance.

According to the article “New Year May Provide Opportunities to Save on Auto Insurance” found on the Sun Herald’s website, consumers should be aware of some personal changes that will come with the new year to obtain lower auto insurance quotes.

The first change discussed is an increase in your age.  Many companies offer lower rates with the more driving experience you have.  Also, if you have a driving violation on your record, your rates may get better with each passing year.  Eventually those violations will fall off your record and affect your quotes.  If you have gotten married it’s worth reevaluating your auto insurance rate since many companies view married couples less risky.

Another benefit to passing time is the depreciation of your automobile.  The less your car is worth the less your auto insurance rates usually are.  Once your car has reached a certain value it may be worth considering to drop your collision insurance and just keeping your liability insurance to save money.  Companies such as Eastwood Insurance incorporate all of these variables into determining your quotes, so shopping around in the new year may be well worth your time.

According to the article “Pennsylvania Attorney General Charges 24 People With Auto Insurance Fraud” by Mark Mendell on topnews.in, 17 New Yorkers and 6 New Jersey residents claimed to be PA residents to obtain lower auto insurance rates.

This is a very serious offense and is definitely classified as insurance fraud.  Pennsylvania Attorney General, Tom Corbett, said the rate manipulation leads to $12-$15 million in claims on PA policies that affects the auto insurance rates of all the other drivers in the state.

Pennsylvania auto insurance quotes are significantly lower than rates in NY and NJ so it’s no surprise people would try to cheat the system to save a lot of money.  PA officials are taking this fraud very seriously.  The PA Attorney General spokesperson, Nils Fredericksen, says that the 24 defendant each face up to 7 years in jail and $15,000 in fines.