Auto Insurance Articles

Did you know that about two car thefts happen every minute?  What is even worse, for many of these unfortunate car owners, their insurance doesn’t cover the entire expense of replacing their stolen car or all of the incidental things that wind up costing them money while they are waiting for their insurance company to reach a decision.  Theft insurance can be quite expensive, particularly if you happen to own a car that thieves consider desirable.  It also may not fully cover you loss if your car gets stolen.  Fortunately, there are some things you can do to help protect your car from theft, and some of these measures might even help to save you money on your insurance premiums.

Don’t make the mistake of thinking that you are protected just because your new car comes with theft protection that is factory installed.  Your insurance company is also aware that factory installed protection is not really the best form of protection as well.  You should go with an after market professionally installed auto anti-theft system to help to deter thieves.  You should also let your insurance company know that you have had the system installed.  It will make it harder for thieves to steal your car and your insurance company may lower your premiums due to the fact that you have added an extra layer of protection.

Also don’t neglect protecting your old car.  Just because your car isn’t a brand new BMW or other shiny new car doesn’t mean that your car won’t be stolen.  Older cars are often stolen for their parts because many of the parts are hard to obtain because they aren’t manufactured anymore.  The National Insurance Crime Bureau reported that the most stolen cars in 2005 were model years 1997, 1994, 1989, 1995 and 1991.  So you still do need to take the necessary precautions with an older car.

If you discover that your car has been stolen inform the police immediately.  The sooner you can report the theft, the better your chances will be that you can recover your car.  If possible, call the police from the scene of the crime and wait for them to arrive.  You will need to tell the police your car’s make, model and color as well as the vehicle identification number and license plate number.  You should keep that information with you in case you should ever need it.  Also keep a copy of your insurance car and registration at home so if you ever need the information you can provide it to your insurance agent and the police.

When you take out an auto insurance policy you should add rental coverage.  Many people don’t get it, but it is fairly inexpensive.  Generally speaking, a whole year’s rental replacement coverage costs less than just a few days of rental car fees, so it is well worth it.  If your car gets stolen, there is a good chance that you will have to rent a car or else find some other form of transportation for a few days.  If you are not sure if you have rental coverage, check your insurance policy and look for any restrictions.  In some cases there are waiting periods before you are able to claim rental expenses.

Roadside assistance is another thing you should have and also make sure you understand all of the details of your coverage.  You can buy this through either your insurance company, an outside service or through your auto manufacturer.  If your car is disabled from theft or breaks down, your roadside assistance service can have your car towed to a mechanic or send someone out to where you are to make your car drivable.

Do you feel that you are paying too much for car insurance?  Practically everyone can cut a few dollars off of their auto insurance premiums by taking advantage of a few suggestions and tips.  Here are 5 tips to help you cut your costs on your auto insurance premiums.

1.  Eliminate comprehensive coverage
If you have an older car and it is paid off, make some calculations to determine whether continuing to pay for comprehensive coverage on your car is worth it.  Many experts say that if your premium is higher than 10% of current market value for your car, then comprehensive coverage isn’t really necessary.

You should keep your comprehensive coverage under the following conditions:

• if you still owe money on the car
• if your premium costs less than 10% of your car’s value
• if your car is a model that is popular with auto thieves
• if you work or live in an area where there is a lot of crime

2.  Car pool with co-workers to work
Insurance companies know that the more miles you drive, the higher the risk is that you will be in a car accident.  By cutting back on the number of  miles that you drive to and from work, you can reduce the chances that you will be in an accident and your premium cost will also go down.

Another option instead of a car pool is to consider using public transportation for going to work at least a few days out of the week.  The main idea is to lower the number of miles your drive each year.  The fewer the miles that you drive, the lower your premium will be.

3. Before you buy insurance compare the premiums and policies from several different insurance companies.
Many people will spend weeks researching on cars to buy, but fewer than fifteen minutes in selecting their car insurance company.  Even in states that regulate insurance rates, you can still enjoy big savings by shopping to find the best rates and policy for what you need.  You can find insurance sites where you can get real time quotes from insurance companies on their policies.  You can also use such a tool for comparing your current insurance policy with other policies.

4. Buy your car insurance from the same insurance company that you have your homeowners policy with.
There is a good chance that you will be able to use the same insurance company for both your auto and home insurance, particularly if you go through the same agent or broker who might offer you a discount.

5.  Review your auto insurance on a yearly basis and before renewing compare rates.
Take a few minutes once a year to check the premiums of a few other insurance companies.  Insurance companies count on the fact that most people will not do this.  When it comes time for renewal, take some time to get a few quotes for the same coverage that you have with a few other insurance companies.  You might discover that you can getter a better rate with another insurance company and still keep your discount for being a good driver from your old insurance company when you switch.

It is a well known fact that you will face very severe penalties if you drive without car insurance if you get pulled over.  You could be subjected to large fines, receive points on your driving record, and might even face jail time.  The penalties for being under insured or uninsured driving vary from state to state and so does the type and amount of insurance that you are required to carry by law.  To ensure that you aren’t penalized for noting have the proper insurance that is required by your state’s laws, it is very important that you understand exactly what your law requires in terms of the level of minimum insurance that you need to have on your car.  If you aren’t sure what it is or you think the state law may have changed since you last took a driver’s test, there are several ways that make it easy for you to find out.

One easy way to find out what level of insurance is required by law in the state where you live is to look it up online.  There are quite a few websites on the internet that provide this type of information.  You can find these sites fairly easily by just doing a search in your favorite search engine.  Be sure that you are able to verify when the site was last updated.  You definitely don’t want to rely on information that it posted on a site that has not been updated in several years.  Laws change all the time, and sites that don’t update on a frequent basis may not have the latest legal information.

Another good source for insurance requirements is the local office for the Department of Motor Vehicles.  The DMV is responsible for the licensing of drivers based on current legal standards.  Therefore, they should have the latest information on state laws regarding car insurance.  You can ask DMV personnel for information, check a driver’s test prep guide, or check your state’s DMV website.  DMV offices get very busy at certain times of the day, so be sure to go in early in the morning or maybe mid-afternoon to avoid buys times.

Another place to find reliable information is through your local police department.  The police department should have the information because they have to enforce state laws.  You can contact them by phone or visit in person.  If you call use the regular number and not an emergency service number.

A final way is to ask an insurance agent who works with a reputable insurance company.  Most insurance companies will not sell auto coverage that is less than what is required by state law.  Online insurance providers also usually have state requirements and minimums programmed in, so that when you are looking to buy insurance the system will pull up the current state requirements.  When you are ready to buy auto insurance just be sure that you don’t wind up purchasing extra coverage that you really don’t need if you are looking to get minimum coverage to meet your legal obligations.

Senior citizens are some of the safest drivers out there on the road.  They of course have the most years in terms of driving experience, they don’t drive recklessly or speed, and they have a tendency for obeying the rules of the road.  Anyone who drives should be able to obtain auto insurance, no matter how old they are.  However drivers over the age of 75 might find it hard to get auto insurance that is affordable.

Many senior citizens continue driving because they do not want to forfeit their independence.  So if you happen to be a senior who still likes to drive, what can you do to save money on your car insurance?  The first thing you should do is shop around.  The internet makes it easy to compare costs and products.  There are auto insurance sites that will provide you with quotes from multiple insurance companies.

Although there are many senior citizens who still enjoy driving, they usually don’t drive as much as they once did.  Many elderly people only drive their cars on occasional or short trips.  Most insurance companies will offer a discount to drivers who driver fewer than 10,000 miles per year.  After you retire you should be sure to notify your insurance company in case there are any adjustments that need to be made to your insurance policy.

You may be considering moving to a new location now that you are retired.  Where your car is located effects the price of your premium.  A car that is driven and parked in a rural area is not as prone to be stolen or in accidents as one in a urban area.  If you own multiple vehicles, insure all of them with the same insurance company.  Almost all insurance companies have multi-vehicle discounts.

If you are a senior driver, you will usually get a lower rate on your insurance premium if you drive a safe, modern vehicle.  Insurance companies also offer discounts when your car has certain features like power brakes and power steering and seat beats that fit better over the shoulder and lower on your lap.  Many new cars also have side air bags fitted into the seats or door frame.

Older drivers should try to maintain their health and consult with their doctors on a regular basis about their medications and other conditions that may affect their driving.  Conditions like diabetes, arthritis, and poor circulation in feet may all potentially cause problems and also could increase insurance premiums.  Many seniors have trouble seeing well at night and limit driving during the daytime.  Many states require that additional medical or visual exams be undertaken for drivers who are over a certain age.

Senior citizens may also be able to save money on their auto insurance premiums by enrolling in a refreshing driving class.  The AARP holds an 8 hour class called 55 Alive.  The National Safety Council, commercial driving schools and AAA also offer safe driving classes.  Most states mandate that you receive a discount on your insurance premiums if you have completed one of these courses.

Finally, no matter what your age is, drive safely.  The most effective way to obtain lower auto insurance rates is to have a safe driving record.