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Car Insurance Factors that Affect Your Car Insurance Rates. When it
comes to auto insurance rates, who you are determines what you pay.
Automobile insurance premiums
are based on a large number of factors, some of which you can control, and some
of which, alas, are incontrovertible facts of life. Statistically,
a sixteen-year old boy with a 300 horsepower sports car in a big city is far more
likely to hit something than a 35 year-old married guy driving a minivan around
the suburbs. While
you can’t change your age and some other factors, there are things that you
can do to keep insurance premiums as low as possible. Factors
you CAN’T change that impact your auto insurance rates: Your
age; Dick Clark and Sophia Loren not with standing, aging is not avoidable. And
while you may be a mature-looking teen or a youthful octogenarian, the oldest
and the youngest drivers are far more likely to have accidents.
Gender ; Whether it’s the mothering instinct or fewer NASCAR fantasies, women
statistically make safer drivers.
Marital Status ; Ok, you can change this, but there have been no reports of people
marrying simply to lower their insurance rates. Factors
you CAN change that impact your auto insurance rates Geography
Where you live matters. For instance, those living in rural America are far
less likely to have a collision or a stolen car than those living in a city. But,
sometimes even just moving across the street can change your rate. Driving
violations ; Speeding tickets, running red lights, failure to yield, etc. all
count toward your auto insurance rate. Your
vehicle; If you must have that cherry red Corvette or the Ferrari Testarossa,
be prepared to pay for it. Your insurance premiums will be higher. Accident
claims; While you can’t change the past, keeping your slate clean and free
of accidents will hold you in better stead than lots of fender benders. Credit
rating; That’s right — many insurance companies view having a poor,
or even no credit history as suggestive of higher risk. Occupation;
A little easier said than done. Believe it or not, insurers have found correlation
between your occupation and risk. Makes sense that the pizza delivery guy could
be a higher risk! Other
factors that go into determining premiums: Miles driven per year ;Distance to
work ; Occupation ;Years of driving experience ; Business use of the vehicle ;
Whether or not you currently have auto insurance ; Theft protection devices (often
results in discounts) ; Multiple cars and drivers (another opportunity for discounts)
; Overwhelmed? It can
be more than a bit confusing when trying to decide the best and most affordable
coverage for your vehicle. Like anything else, get good advice and comparison
shop. With the Web at
your fingers, you have all the information and power to get the best deal. Please
note that this description/explanation is intended only as a guideline.
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Car insurance & Auto insurance
Tips How to buy & save money on your automobile Insurance Policy
Insurance Coverage for
Automobiles:
Cars and TrucksTen
plus Tips to Help You Save on Car Insurance Most
people complain about the cost of their auto insurance--hardly surprising, given
that a typical policy costs at least several hundred dollars a year. Depending
on your age, driving record, and other factors, your annual premium can be significantly
more than that. So how can you lower your premium and save yourself money? If
you own a car and drive it, going without insurance is generally not an option.
In most states, you are required by law to purchase a minimum amount of liability
coverage. And you should probably have more than just the bare minimum if you
want to provide yourself with adequate protection. There are steps you can take,
however, to reduce your auto insurance costs without having to cancel your policy.
Some or all of these steps may be appropriate for you, depending on your circumstances.
Specific
ways to save money on auto insurance: 1.
Shop around.
One of your first steps should be to shop around. A particularly
good time to investigate your alternatives is when your current policy is about
to be up for renewal, especially if you find that your premium has gone up. You
may be surprised to learn that auto insurance premiums for the exact same coverage
on the same car can vary widely (by hundreds of dollars) between different insurers,
even in states that regulate auto insurance rates. 2.
Increase your deductible.
For many people, raising the deductible on their
auto insurance is a good way to cut the cost of the policy. Sometimes you can
reduce your annual premium by 10 percent or more if you increase your deductible
from, say, $250 to $500. If you do this, however, make sure you have the financial
resources to handle the larger deductible when the time comes. 3.
Keep an eye on your credit report.
Your credit history is an important factor
for most auto insurance companies. Many studies have shown a correlation between
your credit history and the risk to an insurance company. Paying your bills on
time and maintaining a good credit history will allow you to enjoy lower auto
insurance rates. 4. Drive less.
If you drive less than a certain number of miles in a year (e.g., 7,500), you
may qualify for a low-mileage discount. If your insurer offers this discount,
try to limit your driving as much as possible. If you commute to work, use public
transportation instead of driving. When you go away on vacation, fly or take the
train. 5. Don't use your car for
business purposes.
Since work-related driving generally subjects you to higher
premiums than pleasure driving, it may be in your best interest to stop using
your car for business purposes. 6.
Drive more safely.
You may be eligible for a price break on your policy if
you maintain a clean driving record for a specified period (usually three years).
A clean driving record generally means no accidents, moving violations, drunk
driving convictions, etc., during that period. The best way to qualify for the
applicable discount is to drive carefully and defensively at all times. 7.
Buy a low-profile car.
Cars are rated on a risk scale for auto insurance
purposes. In general, sports cars and other high-performance, flashy vehicles
are classified as higher risks because they are common targets for thieves and
vandals, and because statistically, the people who own them tend to drive more
recklessly. If you own such a vehicle, you will likely pay a higher premium than
if you owned a station wagon, sedan, or other low-risk vehicle. 8.
Move.
If you live in a rural community with little crime and traffic congestion,
your premium will generally be lower than if you live in an urban area where your
car is more likely to be stolen, vandalized, or involved in an accident. Granted,
you shouldn't move just to cut your auto insurance costs. However, this may be
one of many factors in your decision if you're thinking about relocating from
the country to the city. 9. Keep
your car in a garage.
Cars parked in garages are less likely to be stolen,
vandalized, or struck by other vehicles. Using a garage to store your car may
entitle you to a slight premium reduction. 10.
Have safety/anti-theft devices installed.
CYou may receive discounts on your
insurance if your car is equipped with one or more of the following options: anti-lock
brakes, automatic seat belts, and airbags. Similarly, anti-theft devices such
as car alarms and tracking systems (e.g., Lojack) may also get you a discount
because they reduce the chances of your car being stolen or vandalized. 11.
Inquire about multifamily/multipolicy discounts.
You may receive a discount
from your insurance company if you buy more than one type of insurance through
that same company (e.g., auto and homeowner's). A discount may also apply to your
auto insurance if you insure multiple cars under the same policy or with the same
company. 12. Other discounts
Other discounts may be available if you meet certain criteria. Examples may include
discounts for taking a defensive driving course, being a AAA member or staying
with the same auto insurance company for a number of years. These discounts vary
by company. Please note that this
description/explanation is intended only as a guideline. |
The results are in; Auto Insurance Pricing Report shows that many
drivers experienced a reprieve in 2005 from the high costs of auto insurance rates. In
the survey of 46 states, the District of Columbia and nearly nine million auto
insurance quotes provided by its customers, Insurance.com found an overall decline
in the 2005 national average for auto insurance rates, resulting in a rate fall
for over 21 states.
That’s a 2% decline from 2004, saving many households an average of $60 per
year. Despite the overall decrease, Insurance.com found many states that normally
enjoy lower auto insurance rates experienced an increase from 2004 to 2005. And
states that experienced a rate decrease are still paying some of the highest car
insurance rates in the country.
These statistics leave many drivers wondering why, at a time when insurance rates
are down, do so many states still feel a price crunch.
It turns out that where you live
still plays a large role in how much you pay for auto insurance. For instance,
New Yorkers paid an average of $3,165 for automobile insurance in 2005-a 3.4%
decrease from 2004. And
Louisiana residents paid an average of $3,100-a 4.9% decrease from 2004. However
even with the rate reductions, both states remain the most expensive states in
the country for auto insurance.
Due in part to the cities’ limited parking, higher traffic population, greater
theft rate and increase in uninsured drivers |
Auto insurance and car insurance.
The
Cost of Owning a Vehicle: The nation's highest and lowest
auto insurance, gas, and parking; “Oh, if
only I had more time, more money, and more hair!” lamented Milton (not his
real name), a middle-aged CPA, his new roadster stuck in traffic. He had the top
down, and because traffic was at a standstill, the heat and fumes generated from
the highway full of idling cars was unbearable: “Here I am, living in the
Motor City of all places, and I am spending more on auto insurance than I would
be in any other city in the nation.” Then he thought (as no doubt many Michigan
drivers do), “Why, I could be living in Roanoke, VA, where on average, drivers
pay $4,404 less per year than I do.” He mused on how the savings would be
enough to pay for the hair transplants he wanted. Five
most expensive cities for auto insurance
Detroit,
MI: $5,162
Philadelphia, PA: $4,142
Newark, NJ: $3,482
Los Angeles,
CA: $3,225
New York City, NY: $3,127
Five
least expensive cities for auto insurance
Roanoke, VA: $758
Wapakoneta, OH: $871
Chattanooga, TN: $911
Green
Bay, WI: $948
Raleigh, NC: $949
Fill
up the tank - empty out the pocket
If our driver had added in the cost
of gas, he might have broken down completely. Michigan’s gas prices are somewhere
near average, but with gasoline prices nationwide around 25% higher than a year
ago, that’s not much to celebrate. Five
most expensive states for gasoline
California:
$2.641
Nevada: $2.533
Hawaii: $2.540
Washington: $2.493
Oregon:
$2.482
Five least expensive states for gasoline
Minnesota: $2.043
New Jersey: $2.064
Oklahoma: $2.066
Missouri:
$2.075
Ohio: $2.123
Are things really
that bad?
It depends how you look at it. When the average annual cost
of car insurance is over $5,000, the cost of premiums is a significant portion
of most families’ household budget. What is worth celebrating is the fact
that in spite of the higher prices, Americans can still indulge their addiction
to overpowered, fuel-guzzling motors. Adjusted for inflation, gas prices are actually
lower than they were 20 years ago, especially when compared with much of the world.
That should be at least a small consolation when filling the tank costs over $50.
To injury is added insult
Back to our friend Milton, who has finally arrived at his destination and is now
looking for parking. He knew that the average daily rates across America had increased
3.5% from a year ago. His only consolation today is that parking in Detroit is
considerably less than it is in Boston. Too bad he can’t find his wallet.
Five most expensive cities for parking
Honolulu, H:I $32.75
Boston, MA: $30.00
San Francisco, CA: ($23.90)
Chicago, IL: ($22.50)
Los Angeles, CA: ($20.90)
The
five least expensive cities for parking Orlando,
FL: ($6)
Dallas, TX: ($6)
Phoenix, AZ: ($6.75)
Detroit, MI: ($7)
Memphis, TN: ($7) |