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Cheap Arizona Auto Insurance

Friday, April 16th, 2010

If you live in the State of Arizona and you are looking to get cheap Arizona Auto Insurance, then you should check out their website for some FAQ’s http://www.id.state.az.us/consumerautofaq.html

Its a list of requirements, do’s and don’t’s to get cheap auto insurance in Arizona.

Get a Cheap Auto Insurance Rate Today!

Friday, April 16th, 2010

With the economy still low, and money being tight with a lot of people. I can’t stress this enough that getting a cheap auto insurance rate is fairly plain and simple. It will help you save hundreds of dollars a year without doing anything! For cheap auto insurance rates, please visit our sponsors on the right.




How much can your car insurance rates go up after one accident?

Thursday, April 8th, 2010

This article was taken off of insure.com. I thought this would be important because I see a lot of people ask online, “how much will my auto insurance go up after one accident?” It’s a tricky situation as all auto insurance companies are different. Here is an article that might be able to help you understand better.

When shopping for car insurance, drivers choose mainly based on price, service and reputation. But one element that’s often overlooked is a company’s “surcharge schedule” — a predetermined premium increase that’s charged if you cause a car accident.
Let’s say you had a spotless driving record for the past 15 years. Last month you caused an accident. Now there’s a claim on your car insurance in order to pay for damages. You suspect your rates will go up at renewal time, but what’s a standard increase after just one accident?

“It’s the hidden secret in our business,” says Pete Giancola, owner of Pete Giancola’s Insurance Agency in Deephaven, Minn., adding that there’s “a huge difference from company to company” in surcharge amounts.

Car insurance companies are required to file rates with each state insurance department where they operate, and included in that is how they’re going to determine rates after a claim is made. In some states, insurance companies are legally required to give you a copy of the “surcharge schedule.” However, trying to read these schedules can make your head spin.

“They make it extremely difficult to read,” Giancola says.

The surcharge schedule lists points and percentages and you often have to do your own math to figure how much of an increase you would pay percentage-wise. But it may be worth the headache because the car insurance rate differences can be significant.

Many car insurance companies follow the Insurance Services Office’s (ISO) standard of increasing a premium by 20 to 40 percent of the insurer’s base rate (which is the average rate charged in the state before discounts and other adjustments, plus the insurance company’s claims-processing fee). According to the ISO, for multicar policies the surcharge is 20 percent of the base rate for the first two vehicles on the policy, and 40 percent for a single-car policy.

For example, say you insure two cars at a premium of $300 each and the insurer’s base rate is $400. After an accident, you may get a surcharge of $80 (20 percent of $400) on both, so your total surcharge would be $160 — an increase of about 27 percent on the policy.

But many insurers operate with their own surcharge ideas — some higher and some lower.

According to a 2008 surcharge schedule from State Farm, for example, if you had an accident within the first 12 months of your policy period, your base rate would increase by 10 percent after the first accident (and another 45 percent after the second). In the same scenario, a person insured with Progressive who is between the ages of 25 to 44, would see a 29.5 percent increase on his policy after the first accident (56.2 percent for the second), according to the company’s 2002 surcharge schedule. A 2005 AAA Auto Club surcharge schedule shows an increase of 30 percent for the first accident and 150 percent for the second major accident. (Insurance companies do not file new surcharge schedules each year. A new schedule is filed only when an insurance company wants to increase or decrease its rate. But it’s rare that an insurer would file to decrease, says Giancola.)

While a car insurance policy may look like a bargain initially, a high surcharge level could send your rate through the roof after an accident. “Some companies offer cheaper policies, but God forbid you have an accident,” Giancola says.

Surcharges vary by state and insurance company, and some penalize you for moving violations while others focus only on “chargeable accidents” (meaning at-fault accidents for which your insurance company must pay out more than $500 or $750 per accident after your deductible has been applied).

If you’re shopping for a car insurance policy, Giancola recommends that you ask an insurance company for a copy of its surcharge schedule (sometimes called an “insurance point plan”) before you buy. Also, ask this question: “If I have an accident within the next 12 months, what would my end result premium bewithout discounts?”

“A lot of times, the agent doesn’t want to answer that question. You gotta push it,” advises Giancola.

While individual insurers can choose differently, ISO does not recommend a surcharge on “property damage only” accidents where the damage is under $1,000. Also, if the accident is caused by a new driver (driving less than two years) who already receives a surcharge for being inexperienced, there should be no additional surcharge for his first accident. There are also state exceptions to surcharges.

Also, some insurance companies will not figure your increase based on their base rate, but rather on what you were paying before the accident. Keep in mind that your location, age and driving record, as well as the “loss experience” (meaning claims made) of drivers similar to you affect the percentage increase of your insurance premium.

Most companies try to remove the rating variables that might skew your premium increase related to “loss experience.” For example, if you live in a state in which the majority of your insurance company’s customers live in urban areas, but you live in a rural area, you don’t want your premium increase to reflect the claims of urban motorists. Likewise, if your insurance company happens to insure more youthful drivers than middle-aged drivers, and you’re middle-aged, you don’t want your rate increase to be affected by those higher-risk, higher-charged, younger drivers.

By factoring out drivers who aren’t in your age group and drivers who don’t live in your area, insurance companies say they can derive an equitable increase in your premium.

Rate increases not exactly a science

You might find yourself getting double- or triple-whammied by your individual circumstances. For example, if you make a claim and have a birthday before renewal time, your birthday might bump you into a higher risk category along with the claim, shooting your rate through the roof.

Or, if you’ve made a claim and bought a more expensive car before renewal time, you’ll likely see a significant increase — perhaps as much as 100 percent.

Remember, too, that circumstances can work in your favor at times. If you turn 40 and enter a lower-risk category, or if you buy a car that’s less expensive to insure, your savings might help offset any increase due to an accident.

The Unforgiven

Some car insurance companies give their customers a one-time “get out of jail free” pass. When you make a claim on your first at-fault accident, you might not see any increase in your premium at renewal time. This practice — sometimes known as “accident forgiveness” — is not industry-wide, so if your insurance company holds your rate steady, consider yourself lucky.

Companies that forgive first-time accidents often require that you fit a certain profile in order to escape a rate increase.

For example, State Farm Insurance Co. increases your premium for any “chargeable” accident — meaning any accident in which the company pays more than $750 in liability and collision claims combined. Its policyholders should expect to see the increase at renewal time on their liability, collision, and PIP or medical payments coverages. But State Farm also has a program called “forgive the first accident” for its policyholders who have been with the company, accident-free, for at least nine years. If you fit this description and have a chargeable accident, you won’t see any increase in your premium.

USAA members in 43 states and Washington, D.C., who keep an accident-free record for at least five years will receive a surcharge waiver for one at-fault accident per policy. If you haven’t been with the company that long, you can still buy accident forgiveness: For a few dollars extra a month, USAA lets you purchase an endorsement that forgives one at-fault accident. This endorsement is currently available in 17 states.

When you’re shopping for insurance, it’s a good idea to ask whether the insurer offers first-time accident forgiveness. It might save you a lot of money on your car insurance over the long haul.

If your slapped with a surcharge, it does not last forever. Your surcharge will drop off after a determined length of time, which varies by state. For example, if you live in Minnesota, you’re surcharged for 3 years, Giancola says. If you don’t have another accident within those three years, your premium will drop back down. If you get hit by a surcharge, ask your agent how long it will last.

Top 20 Cheapest Cars to Insure

Tuesday, April 6th, 2010

According to Jalopnik.com, here are the top 20 cheapest cars to insure! If you want to have lower insurance rates, here is a list of cars you can choose from.

1. Mazda Tribute 2WD

2. Honda Odyssey LX

3. Mazda Tribute 4wD

4. Chrysler Town & Country LX

5. Jeep Wrangler X

6. Mazda Tribute S

7. Dodge Grand Caravan SE

8. Toyota Sienna CE

9. Hyundai Tucson GLS

10. Kia Sportage LX

11. Honda Odyssey EX

12. Hyundai Santa Fe GLS

13. Jeep Patriot Sport

14. Honda CR-V LX

15. Dodge Grand Caravan C/V

16. Mazda Tribute S

17. Toyota Sienna LE

18. Dodge Journey SE

19. Ford Escape XLS

20. GMC Canyon WT




9 Ways to Save Money on Auto Insurance

Monday, April 5th, 2010

A lot of people don’t realize this, but auto insurance is a big expense. For some people with points on their driving record, believe it or not, their auto insurance rate could cost as much as their monthly payment on their car! Here are 9 helpful tips on how to save money on your auto insurance and at the same time getting the most of out of it.

Getting the most out of your money and time.

1. Increase your deductible. I only recommend this step if you have an adequate savings fund in place to cover the cost of the deductible. While raising your deductible can significantly reduce your premiums, the last thing you want to happen is to go into debt after an accident to cover repairs or not have enough to cover the deductible.

2. Drop unnecessary coverage. Comprehensive or collision coverage for older vehicles may not make sense financially. Consider the annual cost to insure older vehicles compared to their potential sale value. It may be that it costs more to insure an older vehicle than it costs to replace one. On the other hand, if you have little savings, insurance may be a relatively inexpensive way to replace an asset worth a few thousand dollars.

3. Buy car insurance and homeowners insurance from the same provider. If you already have a homeowners policy in place, contact the insurer and ask if they offer auto insurance. Chances are you’ll receive a multi-policy discount for purchasing both from a single provider.

4. Shop around, and don’t be afraid to take your search online. Do a little comparison shopping by getting two or three quotes from multiple sources. Use the sponsors we have available. Many of them will give you a quote from many of the leading auto insurance companies, so you don’t have to go from one place to another trying to compare quotes.

5. Inquire about other discounts. When discussing your policy quote with an insurer, specifically ask about any other discounts you may qualify for, such as low-mileage driving, the installation of car alarms or the successful completion of defensive-driving courses.

6. Special discounts. Use one of our sponsors on our site to compare against many of the leading auto insurance companies. Some of them offer special discounts or promotions through our site.

7. Maintain a clean driving record. One of the quickest ways  to increase your car insurance costs is to have an accident or get a ticket for a moving violation. Tickets add points to your license and increase your insurance costs. Accidents increase your risk profile to current and potential insurers and increase premiums.

8. Clean up your credit report. Those not fond of the FICO score may find it objectionable that insurance companies use your score, in part, to determine your premium. However, statistics show a correlation between bad credit and a propensity to receive more tickets and be involved in a crash.

9. Drive “low-profile” cars. That is, drive cars that are not typically a target for thieves or radar guns. Studies have also show certain models and colors are more likely to be stopped for speeding (red sports cars, for instance). In their prime, the two cars shown above would have definitely been high-profile cars.

Saving money on car insurance is a quick way to make a significant reduction in your monthly expenses. Use our sponsors tab on the right to get a FREE Auto Insurance Quote Now!

Comparing Insurance Quotes

Thursday, April 1st, 2010

Here at Cheap Auto Insurance News, we partner up with the industry’s leading auto insurance companies. The first thing in saving money is doing research and comparing. Please use our links anywhere in our site to get a FREE Auto Insurance Quote. Compare and Save!











How To Get A Low Auto Insurance Quote?

Thursday, April 1st, 2010

It’s always an exciting experiencing purchasing a new car. Now you have to find the best way to protect it. This means getting auto insurance with the best coverage for the lowest price. Without auto insurance, you are basically a ticking bomb waiting to explode. So many bad things can happen with just one accident. Having insurance will provide you with a piece of mind and most importantly protection.

Getting a cheap auto insurance quote isn’t hard. Here are some factors to determine if you can get a cheap auto insurance quote.

First, auto insurance companies are going to run your driving record. If you have multiple violations such as speeding tickets and accidents, your rates will be more expensive. A lot of people say “well it’s just speeding tickets, I never been in a accident before.” Studies have shown that people who speed are much more likely to get in an accident then someone who obeys the speed limit. Insurance companies will take note of that and increase your rates because you are more prone to getting in an accident. To get a low rate you’ll need to have little to no violations on your record.

Second factor will be your age. If you are a teenager and just received your license, your insurance rates are going to be higher then a more experienced drive, whose been driving longer. Studies have shown that younger people with little driving experience are also more prone to getting in an accident. Generally, women will also pay less then men.

Third, the insurance company will check your credit history when you are getting your rate. (Don’t worry if you are getting a quote online, they will not ask for that) Although your credit doesn’t affect your driving in anyway, auto insurance companies want to make sure that you are able to pay your monthly statements. If you have poor credit, your rates might be a bit higher or you might even get declined with some companies. (Don’t worry if you get declined, there are plenty of companies to choose from, and there will always be one that will insure you)

And for those who don’t have such great driving records, or credit history, a great way you can save money is by taking a defensive driving class. Most insurance companies will give a discount once you’ve completed the course. It shows insurance companies that you want to be a safe driver to prevent accidents. Another thing you can do is, make sure you purchase a car with good safety ratings, and a good anti-theft tracking system. Having a car with high safety ratings means that if you get in an accident, you are less likely to be injured. When you get injured, insurance companies have to pay out of lot of money and they definitely don’t like doing that. Having an advanced anti-theft tracking system will help as well. It will prevent thieves from trying to steal your car and if it does get stolen, it can be tracked.

Lastly, if you are insuring multiple cars, you can always ask your insurance company for a multi car discount. It’s not abnormal that you can insure two cars for the price of one car. Make sure you ask the auto insurance company if they offer this type of discount because not all of them do. Some insurance companies do Home Insurance as well and having your cars and home under one policy will definitely help you save on your rates.

So, in conclusion, these are the ways to get a cheap auto insurance quote. Please use the links on the top or side to get a free insurance quote. It’ll take less then 3 minutes and you will have quotes from all the leading auto insurance companies.