Smart Auto Insurance Blog

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.

The Detroit Auto Show recently revealed some upcoming car models that consumers will find much value in and are worth waiting for if you are in the market for a new car.  The article “6 Cars Worth Waiting For” by Peter Valdes-Dapena provided by CNNMoney, found on finance.yahoo.com, describes six of the top hot cars.

The cars discussed include the following:

1. Honda CR-Z
2. Ford Focus
3. Lincoln MKX
4. Mercedes-Benz E-class Cabriolet
5. Ford Mustang GT 5.0
6. Cadillac CTS-V Coupe

According to the article “Cheap Car From India Could Cost $8,000 in US” by Tom Krisher found on autos.yahoo.com, the world’s cheapest car is coming to the US market.  Unfortunately, once India’s Tata Nano is redesigned to meet emissions and safety standards, the US price will be going up.

The Tata Nano should be ready for distribution within the next 3 years and it is unknown exactly how much the car will cost.  In India, the car costs the equivalent of $2500, making it the world’s cheapest car.  Warren Harris, who is the Tata Technologies president, says the price will be more in the US and it’s estimated by some to be around $8,000.

Even $8,000 is a very affordable car by American standards.  Currently, according to the Edmunds.com automobile website, the cheapest new car on the US market is the Hyundai Accent at about $9970, so $8,000 is very competitive.  This also translates to lower car insurance quotes for those who buy this car since it will be cheaper to replace the car if it is damaged.

According to the article “How Does Cell Phone Use Affect A Cheap Car Insurance Quote?” by Sharon Gibson on youronlineinsurance.com, cell phone safety is a major concern for law enforcement.  More and more traffic incidents are caused by people talking and texting on their cell phones.  Cell phone usage is a huge distraction and directly affects your driving.

More and more auto insurance companies are offering discounts to drivers who are willing to drive safer.  You may get a discount for having a cell phone disabling system which is a device which blocks calls as well as text messages while you are operating the car.  Some companies will flat out ask you what your driving habits are in regards to cell phones.  Your answer may directly affect your car insurance quotes.

In today’s busy world it is becoming increasingly harder to put down the cell phone or personal digital assistant.  It’s important to realize the impact driving while using your phone can have.  Not only are you more likely to be an unsafe driver but it could end up costing you hundreds of dollars in insurance premiums over the years.

There are still many critics out there unsure of the pay-as-you-drive program being offered by some auto insurance companies.  But according to the article “Car Insurance For Less, and Less Driving” there may be some big savings involved for drivers across the country.

The article cites a study from 2008 by The Brookings Institution that says that if all drivers in the US bought auto insurance per mile, 2 out of 3 policies would save on average $270 a year.  This translates to big savings for drivers so it’s worth looking into if you are shopping for car insurance quotes.

GMAC offers a discount up to 54% to customers who end up driving less than 2,500 miles in a 6 month period.  These drivers have the On-Star system in their car which tracks the mileage.  Those who drive less than 15,000 miles are also eligible for a discount.  You can get a discount up to 26% for the particular premium period if you drive between 7,501-10,000 miles per the premium period.  The On-Star system can cost between $199-$299 so this can offset some of the savings you earn from driving less.

Dairyland Insurance, which specializes in covering motorcycles has agents in many states.  Like most auto insurance companies they determine your rate by a number of criteria, and when shopping around for motorcycle insurance particularly it’s important to know what factors are being used.

According to the article “Dairyland Motorcycle Insurance” on motorcycle-insurance-tips.com, your car insurance quotes are based on your age, how much experience you have driving a bike, your location, claims history and driving record.  They also considered if you have taken the important MSF training course on motorcycles.

They type of bike you drive is also factored in.  The newer and more expensive the bike, generally the more expensive it will be.  You can have some control over your monthly premium by adjusting your coverage levels for medical and liability protection.  Wealthy drivers with a lot of assets may want more protection then someone with little to no assets.

Florida requires its residents to carry a Florida auto insurance policy which covers for both personal injury and damage to the property of others according to the article “Minimum Floriday Car Insurance Requirements May Not Be Sufficient” found on auto-mobi.info.  The article suggests that the coverage may not be enough to handle the high costs of medical care and property damage.

Florida auto insurance laws currently require drivers to have a limit of $10,000 for personal injury protection, and $10,000 for property damage liability.  These limits can easily be exceeded following a major accident and may leave you responsible for a large dollar amount if you carry the minimum coverage.  It’s a good idea to see what extended coverage is available and affordable as you shop around.

Drivers should consider adding Comprehensive and Collision to their auto insurance policy if they want to cover their car fully, especially if their car is being financed.  Some lenders actually require coverage for the physical damage of the financed car as part of the loan terms.  Car insurance quotes vary greatly from insurer to insurer, as do the benefits of policies, so it can pay off big time to do your homework.

According to the article “60% Use Comparison Websites” from the Press Association found on google.com, 6 out of 10 people have used a price comparison site to shop around for financial services. 

Research completed by market analyst Mintel, shows that 52% of people have used the internet to shop around for car insurance quotes, while only 32% are using it for home insurance.  12% of people use websites to search for travel insurance as well. 

Interestingly enough, other financial services aren’t not as popular online.  Only about 3% are using the internet to search for current accounts and loans, and 4% are using comparison sites for life insurance quotes.  11% are shopping online for the best savings account and 9% are using it for credit cards. 

The head of finance at Mintel, Toby Clark, believes that the appeal of comparing prices online is clear.  These types of sites give consumers the opportunity to save time and money by getting multiple quotes at once to compare instantly.  These numbers may very well increase substantially over the next few years.

According to the article “Syracuse car insurance quotes continue to rise” by Chris Rowe on viploan.com, Syracuse, NY continues to see rates increase.  Analysts are not concerned about the increasing car insurance quotes.  This is the trend is many parts of the country. 

But a different article “New York State Auto Insurance Rates Decline 20.3 Percent in 2009″ found on money.cnn.com, paints a different picture for New York over all.  This article states that the average 6 month auto insurance rate in NY has decreased more than 20% since the start of 2009 according to insurancerates.com. 

The article also goes over some other interesting facts on New York auto insurance quotes.  Men in NY pay an average auto insurance premium about 12% higher than women drivers.  NY drivers who are under the age of 19 pay 100% more than drivers 60-74.  NY auto insurance rates declined over two percentage points more than the national average which declined 18.1% since the beginning of 2009.  Car insurance quotes will continue to flucuate in NY as well as the rest of the country so that is why it’s important to ensure you continue to shop around so you know you have the best deal on your premium.

According to the article “Credit Scoring Is Hurting Customers” found on sacbee.com from The Dallas Morning News, even if you are a responsible driver you may end up paying higher car insurance rates if you have blemishes on your credit file.  Whether or not this is fair is currently a huge debate.

The Dallas Morning News analyzed the insurance industry and found that people with poor credit paid 35% more on home and car insurance.  In certain cases, the insurance rates were more than double people with good credit, even if they had similar claim history.  This just goes to show how crucial it is to stay on top of your credit score.

Auto insurance companies believe that using credit as a risk factor helps to identify higher risk customers.  They cite The University of Texas research that shows drivers with lower credit ratings file more claims with their insurers.  They say that if it weren’t for the credit rating factor everyone would pay higher rates.  Credit scoring is no where near an exact science and can often hurt good customers. 

As you are shopping around for car insurance quotes try to identify if your credit may be affecting your premiums.