Best Car Insurance Tips

How much you pay for Car insurance depends o­n several factors, including your age and marital status, where you live, and what you drive. You can't do anything about your age, and few people will move just to lower their insurance premium. You can, however, choose a vehicle that costs less to insure.
In this article, we'll give you all of the helpful tips you need when getting car insurance.

Know Your Coverage Types

What is your car insurance actually insuring? Although you're buying a single insurance policy covering a specific vehicle, a number of components make up the final cost:

• Bodily injury liability: Covers injury and death claims against you, and legal costs, if your car injures or kills someone.
• Property damage liability: Covers claims for property that your car damages in an accident. Because liability coverage protects the other party, it is required in all but three states.
• Medical payments: Pays for injuries to yourself and to occupants of your car. This is optional in some states. In "no-fault" states, personal injury protection replaces medical payments as part of the basic coverage.
• Uninsured motorist protection: Covers injuries caused to you or the occupants of your car by uninsured or hit-and-run drivers. "Under-insured" coverage also is available, to cover claims you may make against a driver who has inadequate insurance. In some states, as many as 30 percent of drivers are uninsured.
• Collision coverage: Covers damage to your car up to its book value. Collision coverage carries a deductible, which is the amount per claim you have to pay before the insurance takes effect. The lower the deductible, the higher the premium. While it is legally optional, a lending institution or leasing company usually requires collision coverage.
• Comprehensive (physical damage): Covers damage to your car from theft, vandalism, fire, wind, flood, and other non-accident causes. Comprehensive also carries a deductible.

Your Vehicle Affects Your Premium
Y­ou might want a sports car or a fancy SUV, but your insurance company may charge you more to protect you while driving it.

Insurance premiums are based partly on the price of the vehicle, which affects the replacement cost if it is stolen or "totaled" in an accident. How expensive the vehicle is to repair -- including parts and labor -- can also affect the cost. In addition, surcharges may apply to vehicles that are frequently stolen or involved in accidents.

Industry-wide information on injury claims, collision repair costs, and theft rates by vehicle model is available from the Highway Loss Data Institute (HLDI). You can write them at 1005 North Glebe Road, Arlington, VA 22201. HLDI is affiliated with the Insurance Institute for Highway Safety (IIHS).

According to HLDI, the lowest injury claims are from large vehicles -- cars, pickup trucks, and sport-utility vehicles. Small 2- and 4-door cars have the highest injury claims. Small cars also are among the highest in collision costs, along with sports cars.

If you have your heart set on a sporty vehicle, you'll probably pay dearly. Insuring a high-performance car can easily cost two or three times the insurance amount for an ordinary model.

Sport-utility vehicles, the hottest market segment, often have higher insurance rates than mid- and full-size cars, but some SUV models are relatively cheap to insure. SUVs are "hot" for other reasons: They are among the most frequently stolen vehicles, and they are more expensive than most cars. Cadillac's Escalade is currently the most popular model sought by thieves, but it's followed by the Nissan Maxima sedan. SUVs also can cost more to fix after an accident if the 4-wheel-drive system is damaged.

However, insurance companies set rates based on their own experience. If Company A has more collision and theft claims for a particular vehicle than Company B, then A will charge more for the same coverage. It all boils down to a company's actual experience with a particular vehicle or category of drivers. That is why it pays to shop around for insurance.


Who You Are Affects Your Premium

Factors that you can least control may have the greatest impact on your insurance costs. Your age, gender, and driving record are key factors that affect your insurance premium.

Single males under the age of 25 pay the highest rates. Statistics show they are involved in the most accidents, so insurance companies charge young men higher premiums than women of the same age. Married men, who statistically have fewer accidents, pay less than single men. A handful of states do not allow rates based on sex or age, but that prohibition has tended to result in higher rates for women, not lower rates for men.

If you are convicted of moving traffic violations or of causing an accident, your premiums will likely go up, no matter what your age. Drivers with clean records -- no tickets, no accidents -- pay the lowest rates.
Where you live also plays a big role in how much you pay. Urban areas, with their greater population densities and heavier traffic, get higher rates than rural areas.

According to the Insurance Information Institute, the average insurance expenditure in mainly urban New Jersey -- traditionally the most expensive state -- in 2002 was more than double that of North Dakota, a rural state with the lowest average premiums. High costs in states such as Florida, Massachusetts and New York are attributed to growth in fraud and theft.
In most states, too, insurers set rates by zip codes. If you live in a major city like Chicago or Los Angeles, you will probably pay more than if you lived in a nearby suburb.  

Decide How Much Coverage You Need
While it is dangerous to be underinsured, having too much insurance can be an expensive mistake as well. Without insurance, your property is put at risk in an accident that is your fault. The minimum amount of insurance required in your state is seldom enough.

State law may require as little liability coverage as $15,000 per person, $30,000 per accident, and $5000 property damage. About half of the states require $25,000 per person and $50,000 per accident. Half of them require $10,000 in property damage coverage. If you can afford it, buy more than the minimum. After all, $10,000 for property damage may not be enough if you hit a $100,000 Mercedes-Benz.

The more assets and income you have, the more insurance you need. Most insurers recommend liability coverage of at least $100,000 per person, $300,000 per accident, and $50,000 property damage if you have assets to protect, such as a house. Some insurers also recommend a $1 million "personal liability umbrella" policy issued in conjunction with homeowner's coverage. State Farm reports that such coverage averages $270 a year, but the amount varies significantly depending on location and other factors. An "umbrella" policy could protect a family from financial ruin in a major lawsuit.

Like buying a car, there is no single best solution when it comes to buying insurance. Rates vary widely. Surveys suggest that you could pay anywhere from $500 to $2000 annually for the same coverage from different companies. Shop for insurance by consulting two or three of the largest insurers, such as State Farm and Allstate. Then, contact one or two independent agents who can quote premiums from more than one company. In addition, there are direct-marketing companies, such as GEICO and Progressive, which do business over the phone rather than through agents and offer some of the lowest rates. Ask for an itemized list of coverages and costs.

"We're price-competitive," said spokesperson Dick Luedke of State Farm, whose rates dropped somewhat during 2004. But with so many factors involved in setting rates, it's wise to check several prospects.
In 2004, the average price of auto insurance nationwide was $871, according to the Insurance Information Institute. They expected that the cost of auto insurance would rise by 3.5 percent in 2004, which would be the smallest increase in four years.

Don't forget the Internet. Many companies now offer online quotes, and insurance shopping on the Web allows you to compare rates from multiple providers in the comfort of your own home.

You Can Reduce Your Premiums
The biggest difference you can make is to buy a vehicle that qualifies for a discount or at least doesn't carry a surcharge. Ask your insurance agent about the cost of insuring vehicles you are interested in before you make your purchase decision. Here are several other ways that you can save money on your car insurance:

• Most companies give a break to those who drive less than 7500 miles a year. If you take public transportation instead of driving to work, your premium will go down. Out of the question? Try carpooling.
• Make sure you get all the discounts you are entitled to. You might qualify if your vehicle has an alarm, for example. Discounts used to be given for such safety features as airbags, but they're fading away as those items become more commonplace. Discounts might also be available if you insure your vehicles and your home with the same company. People who pass a defensive-driving course or don't smoke or drink often get discounts.
• Review the status of all the drivers in your family with your agent. Most discounts apply only to one portion of the policy, so don't expect dramatic savings.
• Increase your deductible for collision and comprehensive. Switching from a $100 deductible to $1000 can reduce the collision portion of your premium by 30 percent, said Luedke. You'll still be covered for catastrophes, but you foot the bill for fender-benders. Also, think twice about filing small claims with your insurance: Why risk a premium increase?
• Shop around. Instead of just renewing, study the fine print of your policy to see if its terms -- or your situation -- have changed. Another company might have better rates, but you won't know unless you shop. Most insurers give rates over the phone and many via online computer services, making it easy to compare premiums.
• Drop collision coverage on older cars. Claims are limited to "book" value, so you're not likely to get much anyway if you car is more than seven years old. A good rule of thumb is to drop collision when the annual premium reaches 10 percent of your car's value.
• Be a good driver. Avoid accidents and traffic violations and you will be rewarded with good-driver discounts. Bad driving is expensive. The "safer you can be" on the road, Luedke said, "the lower your premiums."
• Drop coverage for such extras as towing costs or the expense of renting a car while yours is in the shop. The savings are probably small, but your new-car warranty's roadside assistance provision may provide them at no cost.
• Have your teenager share the family car instead of owning his or her own. Be sure to tell your agent if your son or daughter makes the honor roll or moves away to college. Both qualify for discounts with most companies.
• If your group health insurance provides generous coverage, consider dropping the medical-payments portion of your policy.
• Keep your credit rating healthy. A growing number of insurers are considering a person's credit score when setting rates.

Now, you know tips before buying car insurance, good luck!

Src : http://auto.howstuffworks.com/buying-selling/cg-car-insurance-tips.htm

10 Thing About Commercial Auto Market Should Know

The Following are 10 Thing About Commercial Auto Market Should Know :

1. The commercial auto segment saw an underwriting loss in 2011 for the first time in nine years, with a combined ratio of 103.6 percent, according to a special report on the U.S. commercial auto insurance industry published by Fitch Ratings in October 2012.
2. A commercial driver study by LexisNexis Risk Solutions found employers tripled their employment verifications of commercial drivers during the first half of 2012.
3. 16,000 brand new vehicles were scrapped because of Superstorm Sandy (Reuters)
4. False or unverifiable driver history rose nine percentage points from 2008 to 2012, topping 2012 at 38.97 percent, according to the LexisNexis Risk Solutions Commercial Driver Study.
5. Commercial auto is the third-largest commercial lines segment, with 9.8 percent of commercial lines premiums in 2011 (Insurance Information Institute).
6. Commercial auto net premiums written in 2011 totaled $21.04 billion and direct premiums written totaled $23.5 billion. (SNL Financial LC)
7. Travelers Group had the most market share of the commercial auto market in 2011, with 8.41 percent and $2.02 billion in direct premiums written, according to the National Association of Insurance Commissioners (NAIC).
8. Liberty Mutual had the second-highest market share in 2011 (6.56 percent), with $1.57 billion in direct premiums written (NAIC).
9. Commercial auto rates rose 5 percent in November 2012, compared with November 2011, and were up 6 percent in December 2012, compared with December 2011 (MarketScout).
10. Travelers’ 2012 third-quarter earnings report cited its commercial auto rates rose 9 percentage points.

Src : http://www.mynewmarkets.com/articles/181526/10-things-to-know-about-the-commercial-auto-market

Common Misconceptions About Car Insurance

Know what you have before you need it: a quick review of your car insurance policy will remind you what's covered, and what's not.

It's easy to make assumptions about auto insurance, and it's even easier to forget certain details about your own unique coverage.

A quick review of your auto insurance policy can easily shed some light on things. Start with the Policy Declarations, which contains the details of what's covered by your policy.

Below are some of the most common misconceptions about auto insurance and helpful guidance on those issues.

I Thought I Had "Full Coverage."
Many people believe that an auto insurance policy automatically includes things like Comprehensive Coverage, a low deductible, coverage for possessions stored or transported in your car, protection against theft or damage of special custom add-ons, or even automatic rental car reimbursement after an accident.

In truth, these are options that you typically must specifically choose, and purchase, for your auto insurance policy. (In some cases, state laws dictate what kind of coverage options an insurance company is allowed, or not allowed, to offer its customers. Therefore, the laws in your state could affect the kind of insurance coverage you’ll be able to purchase.)

I Thought I Had Rental Car Reimbursement.

If you've been in an accident and your car is not drivable, you'll most likely need a rental car. It's easy to assume that an auto policy automatically covers the cost of renting a temporary replacement car.

However, this, too, is an option. Rental car reimbursement coverage must be specifically requested and purchased when you buy your policy. Talk with your agent or review your policy for more details to see if you are covered.

I Wasn't Driving My Car When It Was Damaged. Why am I Being Held Responsible?

If you lend your car to a friend who happens to then get into an accident, it might seem easy to assume that your friend will be responsible for the damage. In truth, however, auto insurance is designed to protect you, your assets, and your car. Auto insurance is designed to help protect you in situations that involve your vehicle. Which is one of the reasons that auto coverage follows the car.

That means that if the covered car is damaged or involved in an accident, no matter who's driving, the policy attached to the car - not the person driving it - will be expected to cover the loss. That's as long as the person driving had verbal or written permission to do so.

 Source : http://www.allstate.com/auto-insurance/common-auto-insurance-misconceptions.aspx#fullcov

What is Auto Insurance?

Auto Insurance also called Car Insurance, Vehicle Insurance, Motor Insurance, or GAP insurance.
Auto Insurance is insurance purchased for road vehicles such as cars, trucks, motorcycles, and other. The function of this insurance is to provide financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise therefrom.

The specific terms of auto insurance vary with legal regulations in each region. To a lesser degree auto insurance may additionally offer financial protection against theft of the vehicle and possibly damage to the vehicle, sustained from things other than traffic collisions.

If your vehicle struck down by a falling tree, stolen by a crook or totaled by a distracted driver, Do you have enough savings to repair or replace it?

Fortune, having car insurance means you don’t need a massive savings account to repair or get new car. auto insurance gives you protection against six types of risk and potential financial losses:

• Bodily injury: Pays when you hurt someone in an accident or get sued for the victim’s injuries.
• Collision: Will pays for damage to your car (minus your deductible) when you get into an accident, even if it’s your fault.
• Comprehensive: Pays for damage to your car (less your deductible) caused by something other than a collision, such as fire, vandalism or a falling tree.
• Property damage: Will pays for damage you do to someone else’s property, like damaging that person’s car or destroying that person’s fence or landscaping.
• Personal injury protection (PIP): Pays when you or your passengers are hurt in an auto accident and may cover lost wages, medical bills and funeral expenses.

States and lenders have different requirements for the types of auto coverage and minimum amounts you have to buy. For instance, Texas requires drivers to carry insurance that pays at least $60,000 for injuries and $25,000 for property damage per accident.

However, if your financial damages exceed your car insurance coverage, you could be sued for the difference. So always make sure you have enough auto insurance coverage to protect your assets.

How much will car insurance cost?

When you purchase car insurance, the amount you’re charged (the premium) varies reckoning on factors such as your age, vehicle make and model, driving record and credit score.

Yes, that means if you’re young, have been in a few fender-benders or have poor credit, insurers may consider you more risky and charge you more than average drivers in your area.

The vehicle you choose to drive also determines the cost of your auto insurance. It probably won’t surprise you that family mini-vans cause fewer losses for insurers than fast, sporty cars. (Read “The 15 cheapest vehicles to insure” to learn more about cars and trucks with low insurance costs.)

Another important factor that insurers consider is where you live. For 2010, the average auto insurance premium in Washington, D.C., was $1,134. But in North Dakota it was only $529, according to the National Association of Insurance Commissioners.

The good news is that many insurers offer discounts.