Posts Tagged ‘auto insurance company’

Is The Cost of Auto Insurance Advertising Driving Up Your Premium?

Thursday, July 5th, 2012

What is it costing your auto insurance provider to advertise each year? SNL Financial set to find out. Geico Corp is the King of auto insurance advertising, data shows, with annual spending of close to $1 billion! This number is up 10 percent from spending in 2010, which shows that insurers are becoming increasingly more competitive for your dollars.

What Are Other Auto Insurers Spending?

State Farm Mutual Automobile Insurance Co. — the largest home and auto insurer in the U.S. — took second place in the advertising war. Geico spent 22 percent more than State Farm last year, but State Farm increased their ad spending by 29 percent — three times’ the rate of Geico’s ad spending increase. Allstate Corp was the third biggest spender at $745.3 million in 2011.

Do Auto Insurance Companies Have To Spend So Much?

Allstate Corp has felt the pain of cutting back during the recession. An internal presentation indicated they had been losing ground with consumer awareness due to reduced TV ad spending in the previous year. They also lost 30 percent of their typical call center volume due to reduced direct-mail solicitations. So, it’s no surprise they ramped up their efforts last year to keep pace with the big dogs.

Does Increased Auto Insurance Advertising Affect Premiums?

Insurance companies are in the business to make money, so you can be sure they are charging you more than enough to cover any accidents and fund their companies’ growth. Research indicates that there has not been a major churn in the industry, despite increased spending. Progressive and Geico are growing, but most insurers aren’t able to grab major market share. On the bright side, 25 percent of auto insurance customers shopped for a new policy last year — and 43 percent of them did end up switching providers. This is the highest switch rate since 2008.

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Why not shop around for a deal on your auto insurance here & now?

How To Switch Auto Insurance

Monday, July 2nd, 2012

Shopping online is an easy way to find better auto insurance rates. They say “making the switch” is quick and easy… but is it, really? Simply walking away from an old provider could turn into a mess if you don’t follow all the proper steps to say “Hasta Lavista, Baby.”

1) Have A New Policy In Place.

Ideally, you should begin shopping around for a new auto insurance policy about a month before your current policy is set to expire. Before notifying your insurance provider you’ve moved onto someone new, you’ll want to be absolutely sure your premium has been paid and your application has been approved. The last thing you want is to be caught without insurance!

2) You’ve Set A Date.

When you’re starting up with a new auto insurance provider, it’s important that you talk about when the policy will begin. Overlapping insurance is bad, but it’s even worse to be driving around for a day with no insurance. Get a firm date set.

3) Say Goodbye.

It’s never pleasant, but you’ll need to notify your auto insurance provider that you wish to cancel your policy. You may do this on the phone or in writing. The worst thing you can do is to avoid this task altogether. Burying your head in the sand will lead to collectors banging down your door for nonpayment and a blemish on your credit report. Even if the new provider offers to take this step for you, it’s always best to ensure you are all set.

4) Sign The Documents.

Some auto insurance providers need you to sign official documentation stating that you wish to cancel the policy. Be sure to comply with their protocol and save yourself the hassle of having someone call and mail you constantly to get closure.

5) Don’t Forget About Your Refund.

Some customers are so excited about the new deal they just scored, they forget to see if they have any unused premium coming their way. Ask and you shall receive. Remain mum and you may get a check in the mail… or you may not!

6) Address Any Outstanding Issues.

Usually a new carrier will alert the DMV about your new auto insurance policy, but this is not always the case. Be sure to find out what your responsibilities are. If there is a lien on your vehicle or you are still making payments, be sure to inform the lienholder about the change.

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Tips To Avoid Auto Insurance Rate Increases

Tuesday, June 12th, 2012

Are you paying too much for auto insurance? Your rate can go up suddenly and without warning. Sometimes simple errors can cause you to overpay for basic coverage. Here are a few tips to avoid these unscrupulous auto insurance rate hikes and protect yourself, as a consumer.

Did You Get A Ticket?

Tickets are one of the main causes for auto insurance rate hikes because insurers take this as a sign that you’re driving erratically and dangerously, thus making you more of a liability. You won’t get penalized for a parking ticket, but moving violations for running lights, speeding and reckless driving will take your insurance rates way up for a good three years.

Did You Buy A New Car?

When you’re car shopping, you may be focused on finding the best color or the car with the most cargo space. However, you should also consider how the auto insurance company will look at your purchase. Cars with expensive foreign parts will be more expensive to insure because their repair costs will be higher, should you get into an accident. Also, cars that are frequently stolen will cost more. Conversely, safety ratings and features can bring the cost of insurance down.

When Was The Last Time You Shopped For Auto Insurance?

You should take a few minutes each year to shop around for better auto insurance rates. People who take the time to review their policies always end up paying less. With websites like, it’s easier than ever to get a quick, free online auto insurance quote!

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Take a moment & shop for free auto insurance quotes on our site!

What Does Auto Insurance Cover?

Wednesday, April 18th, 2012

The most important part of your auto insurance coverage is the medical component. In the event of an accident, you want to know that all the human beings involved will have their hospital and treatment charges paid for by your auto insurance company. Once you understand what your current policy covers, you may want to fill out a quick quote form to get instant access to better rates on your auto insurance that may give you more coverage for less.

How Am I Covered In Auto Accidents?

In most states, something called “MedPay” will make sure that you and your passengers have medical coverage. MedPay covers you if…

  • You are driving your vehicle and someone else hits you.
  • You are driving your vehicle and cause an accident.
  • You are driving someone else’s vehicle and are involved in an accident, regardless of fault.
Your passengers will also be covered under MedPay.

What Kind of Extended Coverage Is Available?

Personal Injury Protection (PIP) is considered extended coverage in all but 16 states (Arkansas, Delaware, Florida, Hawaii, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, Pennsylvania, and Utah) — where it is considered mandatory.

PIP auto insurance will make sure you and your passengers are reimbursed for…

  • Medical Expenses
  • Lost Wages
  • Funerals
  • Child Care
  • Home / Property Damage.

How Are People In The Other Car Covered In Accidents?

While we all carry our own insurance, there is also something called Liability insurance that will cover…
  • Injuries for under-insured motorists in the other car (if the accident was your fault)
  • Injuries to passengers in the other car (if you are at fault)
  • Injuries to pedestrians you may have hit.
Liability insurance is usually required or offered in every state (except New Hampshire), but the exact amount mandated by law varies from state to state. For instance, in Florida, you can opt for $10,000 in liability for up to two people for a total of $20,000 in coverage per accident — and property damage coverage is $5,000. However, in Ohio, you must have at least $12,500 per person injured (up to $25,000 total) and $7,500 in property damage coverage.
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How To Fight A Speeding Ticket With Your Auto Insurance Company

Monday, April 16th, 2012

“How will this ticket affect my auto insurance?

This is one of the first thoughts that will go through your mind after a traffic infraction, especially as you begin to think about how much a moment of carelessness will end up costing you. Unfortunately, there is no easy answer as to how much your auto insurance might creep up after you receive a ticket.

Factors That Will Affect Speeding Ticket Costs

Every company has its own policy regarding traffic tickets. You might see a rate hike for three years or for one year (providing that you don’t get any additional tickets during that time). The good news is that many companies are willing to work with you if you’re a loyal customer with an all-around good record. In some cases, you may not be charged a fine at all!

On the downside, speeders are usually punished the worst by auto insurance companies, as excessive speed is a factor in a third of all fatal crashes. Therefore, if you were driving more than 15 miles over the posted speed limit, you can expect significantly higher insurance rates. On the other hand, if you were only going 5 miles over the limit, you might not see as drastic an increase.

Does Speeding Ticket Increase Insurance?

The first decision you’ll have to make is whether to plead innocent or guilty. If you are concerned about your auto insurance rates going up, you should contest the charge. If you go to court, you can often reduce a speeding ticket down to a lesser infraction, such as “failure to yield” or a parking fine. In some cases, the judge will even dismiss your case altogether and you won’t receive any penalty at all. Another way to reduce your auto insurance costs following traffic tickets is to attend a defensive driving course.

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How Do I Choose the Right Auto Insurance Company

Wednesday, March 21st, 2012

All drivers should be giving some thought to the question, “How do I choose the right auto insurance company?” Whether it’s the first time a driver is looking for coverage or he or she has been buying insurance for a number of years, choosing an auto insurance provider is not something which should be undertaken lightly.

There are a number of auto insurance companies licensed to sell policies in the United States. Some of them are local companies, while others provide coverage in several states or even to drivers across the country. Drivers should consider both options when they are looking for coverage to find the type of company which is the best fit for their needs.

Choosing an Auto Insurance Company: Cost

New drivers, who can expect to pay higher premium rates for their coverage, may be focused on finding the company which can offer the best prices. While coverage costs are important, it should not be the only factor that a driver is considering when making a choice about where to buy a policy.

All drivers should consider how much insurance they need to protect their assets and buy coverage accordingly. A new driver who doesn’t own a lot of property will probably need a lower level of coverage than someone who has been driving for a number of years and who owns a home and other assets. Once a driver knows how much coverage he or she needs, the goal should be to find the best pricing for the exact type and level of protection needed.

Choosing an Auto Insurance Company: Customer Service

Finding an insurance provider which can offer affordable rates is only one factor which should be considered when looking for auto insurance coverage. When choosing an auto insurance company, customer service practices should also one of the elements that a driver considers when looking for coverage. Most people don’t deal with their insurance company very often, but they want to trust that it will settle a claim in a fair manner and without delay when they do need to make one.

Consumers can go online to check out different auto insurance companies they are considering to find out whether a particular company has a good reputation. A prospective insurance buyer should keep in mind that disgruntled policyholders are more likely to discuss their experiences online or with people they know than people who have been pleased with the service they received from their insurance provider. For this reason, any reports of poor customer service should be considered with the proverbial grain of salt.

When drivers are trying to choose an auto insurance company, they should consider the cost of coverage as well as how well the insurer treats its policyholders. The best companies are the ones which offer affordable rates and offer a high level of customer service, whether the policyholder has a question or a concern about coverage or needs to make a claim for a loss.

How Can I Find the Best Auto Insurance Company

Saturday, February 4th, 2012

The question of how to find the best auto insurance company is one that many drivers wonder about. Auto insurance coverage is mandatory in most states, but that doesn’t mean that consumers should simply buy a policy from a company without considering whether the one they choose is giving them the best combination of a good level of coverage and affordable rates.

Before starting to shop for auto insurance coverage, a consumer should consider exactly what he or she is looking for in a company. For some buyers, finding low rates is definitely a priority. Other car insurance consumers want to deal with a local company which can provide more personalized service and are willing to pay more in premiums to feel that they are being insured by a provider which knows them well.

How Auto Insurance Companies Set Rates

Auto insurance companies consider a number of factors when setting rates for their customers. Each one uses its own formula for setting rates and while each one may consider similar items, the weight the company gives to each one will vary. For that reason, rates for the same type and level of coverage can vary significantly between companies.

The factors which influence auto insurance rates include:

  • Driver’s age
  • Marital status
  • Make and model of the vehicle
  • Number of accidents the driver has been involved in
  • Whether the driver has accumulated moving violations

The insurance company also considers location when setting rates. Drivers who live in rural areas may pay lower rates for their coverage than people who live in metropolitan areas. The insurance company considers that more cars on the road means the likelihood of being involved in an accident is higher and charges higher premiums accordingly.

When a consumer is looking for auto insurance coverage, the company will also ask whether there are any other licensed drivers in the household. When setting rates, the insurer will consider whether the other drivers have been involved in accidents or have moving violations on their record. Since other drivers living with the primary policyholder have access to his or her vehicle, rates will be higher if a high-risk driver lives in the same household.

How to Find the Best Auto Insurance Company

Once a car insurance consumer has determined which traits are most important to him or her in an auto insurance company, the next step in finding the best auto insurance company is to get quotes from several providers.

Shoppers who want to find the coverage they need quickly will find that going online is an effective way to find an auto insurance provider. A buyer can visit individual insurance company websites to learn about the products that different companies offer before requesting a quote. Another option when looking for auto insurance online is to go to a site featuring a quote tool which can provide pricing from several providers.

To find the best auto insurance company, a buyer should make a point of reviewing the quotes carefully before making a decision.

How Do I Choose the Best Auto Insurance Company

Thursday, January 19th, 2012

A number of consumers wonder how to choose the best auto insurance company for their needs. There are many providers licensed to write policies in a particular state, and finding the one which is best for your needs can seem like a daunting task. Having a plan in place will make the process easier for you.

Learn About Coverage Options

Before you start looking for auto insurance coverage, start by learning about the different types of protection that the companies offer. In most states, liability coverage is required by law. If you took out a loan to finance your vehicle, you will need to have physical damage insurance coverage in place until your car has been paid off in full.

Liability coverage protects you against being personally responsible for paying for the damage you are responsible for causing in an at-fault accident. It includes two components: bodily injury and property damage coverage.

Bodily injury liability insurance coverage is used to pay for personal injury claims made by the occupants of the other vehicle involved in an automobile accident. It pays for medical bills, rehabilitation costs and claims for lost wages. In some states, bodily injury claims can also include an amount for pain and suffering.

Property damage liability coverage pays for repairs to the other driver’s vehicle. It also covers repairs to public property damaged in the accident, such as mail boxes, sign posts, fences, sheds and buildings.

Physical damage auto insurance coverage includes collision and comprehensive protection. The collision part of the policy pays to repair your vehicle following an accident which involves striking another vehicle or an object. Comprehensive auto insurance pays out on losses other than a collision, such as fire, theft, hail, wind, flooding and vandalism.

Consider How Much Coverage You Need

In most states, vehicle owners are required to keep a minimum level of auto insurance coverage in place. Liability coverage is usually required, and state law will set a minimum for the claims made by a single accident victim as well as all people injured in the same accident, as well as for property damage claims.

Shop Around to Find the Best Rates

Once you know how much coverage you need, start shopping around for coverage. Price is only one consideration when you are looking for the best auto insurance company. You will also need to make sure that the company you are dealing with has the financial resources to pay out on its policyholders’ claims.

Another important consideration when you are looking for an auto insurance company is how well it treats its customers. You want to make sure you are dealing with an auto insurance company which has customer service representatives available to answer questions about your coverage. The company you choose should also be one which has a good record of settling claims quickly and fairly.

When you are looking for auto insurance coverage, it’s a good idea to make a list of the criteria which are most important to you. That way, you can make a fair comparison of different providers before making your buying decision.