Posts Tagged ‘auto insurance premium’

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.

auto insurance

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

Same-Sex Couples Find Freedom With New Auto Insurance Rates

Wednesday, July 4th, 2012
Esurance, the online affiliate of Allstate auto insurance, will be giving same-sex partners in civil unions or domestic partnerships in 21 states the same discount that is typically extended to legally married couples. This is good news for more than  646,464 households that can now receive an additional 10 percent or more off their auto insurance premiums compared to unmarried policy holders.

What Changed?

Previously, same-sex couples living in California, Illinois, Oregon and Washington were given discounts. The program is  now expanding to include motorists in: Alabama, Arizona, Colorado, Connecticut, Georgia, Indiana, Kentucky, Maryland, Mississippi, New Jersey, Nevada, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia and Wisconsin.

“Esurance is firmly committed to recognizing and supporting diversity for its customers,” says Esurance president and chief executive officer Gary Tolman. “Offering additional savings to consumers, regardless of where individual states stand on the issue of same-sex marriage is another measure of those commitments.”

Several Other Auto Insurance Providers Offer Savings Too…

State Farm and Allstate were two of the progressive leaders in offering same-sex couples the right to lower auto insurance premiums — announcing the discounts in states that recognized or performed civil unions last August. Rumor has it, Geico also offers a discounted rate, although it is unpublished and you have to ask for it.

Steps To Get Lower Auto Insurance

  • Spend a few minutes on our site looking up a free online auto insurance quote.
  • Call your insurer and ask for the discount.
  • With most online quote searches, you can select “Civil Union (Certified)” as your official status.
  • Have your marriage license or certificate of civil union handy if needed.

    auto insurance

    Now many more same-sex couples can enjoy auto insurance savings!

Auto Insurance Tips: Mechanical Breakdown Coverage

Tuesday, June 26th, 2012

Failing to plan for mechanical breakdowns is one of the quickest ways to find yourself in dire financial straits. While most of us purchase auto insurance to protect ourselves from a calamity, you will still want to consider mechanical breakdown insurance through your car insurer, dealer, bank or credit union. A standard auto insurance policy does not cover wear-and-tear maintenance should you need new major repair work.

What Does Mechanical Breakdown Insurance Cover?

You will need to save money on the side to cover wear-and-tear repairs like:

  • Transmission
  • Brakes & Rotors
  • Engine Parts (Oil Pump, Pistons, Timing Gears, Flywheel, Valves)
  • Drive Axles & Joints
  • Electrical Components
  • Cooling / Air Conditioning
  • Fuel System
  • Steering

If your vehicle should need towing or if you needed a rental car in the meantime, you will be glad to know this type of auto insurance would have you covered. You often will see roadside assistance and lock-out service added on as well.

How Much Does Mechanical Breakdown Auto Insurance Cost?

Unlike traditional auto insurance, your rate does not fluctuate if you make a claim. Instead, service contracts are based on the type of vehicle you own, the length of coverage, the number of miles driven, and the level of protection you desire.

Levels of Insurance

For instance, Mercury offers four levels of insurance all the way up to Platinum, which covers things like brakes, tires, shocks and windshield wiper blades. Like regular auto insurance, choosing a higher deductible (if possible) will lower your cost. It is important to know that this insurance is fully transferable should you decide to sell your car. If you do not want to transfer the policy, you will get a check back for the prorated amount of unused insurance.

auto insurance breakdown

Does your auto insurance policy cover normal wear and tear? You might want to consider adding this on. Until then, why not shop for a better auto insurance quote?

Auto Insurance Claims Adjuster Advice

Monday, June 25th, 2012

You may feel as though the auto insurance claims adjuster has arrived on the scene to act as your own personal lawyer. “Here is someone who has my best interests at heart because I’m the client,” you may think. It’s not that a claims adjuster is a crook, but keep in mind that this person’s job is to settle the case as quickly and affordably as possible. It’s up to you to ensure you get a fair deal.

Rule #1: Say As Little As Possible.

Talking too much is the biggest mistake people make. Drivers who’ve just been involved in an accident are often blabbing emotionally — which may not be the best recourse. Claims adjusters love to hear admissions of guilt and apologies, details that contradict what bystanders say, complaints about whiplash or what a “piece of junk” your car is, or background information about what a horrible day you’ve been having. Anything you say can and will be used against you!

Rule #2: When In Doubt, Hire Counsel.

You don’t have to answer questions that seem loaded. For instance, an auto insurance adjuster might ask:

  • How could you have avoided the accident?
  • How much do you think you are responsible?
  • Do you think the weather affected you?
  • Did you have any previous injuries or pain before the wreck?

Ask that all questions be directed through your legal representative first.

Rule #3: Take Your Time.

If you settle too fast, you may be forfeiting some of your consumer protections. An auto insurance claims adjuster might offer you a $1,000 check on-the-spot to fix your vehicle, plus another $500 for the inconvenience. But what if you have a soft tissue injury that hits you three days later like a ton of bricks? Once you take the money and settle, you are no longer entitled to compensation. Keep in mind you may be entitled to rental car reimbursement, which could buy you more time.

Auto Insurance Claims Adjuster Advice 1

Get a fair shake by surfing auto insurance quotes today.

Choosing The Right Auto Insurance Deductible

Friday, June 22nd, 2012

What deductible would you like — $250, $500, $1,000, $1,500? You’ll notice that is one of the questions we ask you when you’re looking up a free auto insurance quote online. Your answer to this question could save you as much as 40 percent, according to the Insurance Information Institute. By assuming more risk, you stand to save a lot.

What Is A Deductible?

In the world of auto insurance, a “deductible” refers to how much money you are willing to pay, should you get into an  accident. The deductible is the amount you pay before your insurance protection kicks in. So, if you rear-ended someone and caused $10,000 worth of damage, a $1,000 deductible policy would mean that you pay for the first $1,000 out of pocket and insurance will cover the other $9,000. Of course, when you file a claim, your premium will likely go up. Some people with high deductibles will not even bother to file a claim for something like a broken window or cosmetic damage from a hit-and-run.

When To Choose A Higher Deductible For Auto Insurance

Most personal finance experts would advise you to save a cushion in your bank account and opt for the higher deductible. If you have good credit and access to low-interest loans or more than $1,000 in your savings account, this is wise. If you are a relatively good driver with a clean record and rarely — if ever — get into an accident, then you are the prime candidate to reap great savings with a higher deductible.

When To Choose A Lower Auto Insurance Deductible

On the other hand, some people are not very financially disciplined and rely on a bi-annual bill in the mail to help them sock away savings. These people would need a low auto insurance deductible to ensure they are fully covered. If you’ve ever needed to file more than one claim per year, you will want a lower deductible. If you have young drivers on your policy, live in a high-crime urban area, or live in a place that is constantly struck by natural disasters, you will probably want to pay a little more on your premium to know that you are covered for multiple events each year.

Choosing The Right Auto Insurance Deductible 2

Lots of disasters in your area? Better stick with a low deductible unless you have a good savings cushion.

Theft Drives Up Auto Insurance Rates in Washington State

Friday, June 15th, 2012

Washington state is a hotbed for auto thefts, according to National Insurance Crime Bureau statistics. Even though there has been a 1.6 percent decline in auto thefts since last year, Spokane is still fourth-highest in the nation for auto theft rates again. Yakima jumped five places from the 10th spot to the 5th. The Seattle-Tacoma-Bellevue area is responsible for 54 percent of all stolen vehicles in the nation — up 18 percent since 2009. This is bad news for Washington consumers    who are looking for affordable auto insurance rates.

How Many Vehicles Are Stolen In Washington?

Last year, 28,833 vehicles were reported as stolen. That’s 79 vehicles stolen every day or more than 3 per hour! NW Insurance Council President Karl Newman says, “American consumers continue to pay billions of dollars each year for auto theft.” He explains that the cost of replacing stolen vehicles and repair the recovered vehicles gets reflected in our auto insurance rates. It costs Washington auto insurance providers more than $170 million per year, in fact, with most reimbursements costing around $6,500.

How Can Consumers Protect Themselves?

When buying a new vehicle, consumers should elect for anti-theft technology. The NICB recommends four layers of protection:

1. Common Sense – Which means removing keys from the ignition, locking your doors, closing your windows and keeping valuables out-of-sight.

2. Warning Device – Which means choosing a steering column collar, audible alarm, brake lock, VIN etching, or decaling.

3.  Immobilization Device – Which means smart keys, fuse cut-offs, kill switches or wireless ignition authentication.

4. Tracking Device – Which means enabling the vehicle to be tracked via monitoring station.

Sick of Overpaying on your Auto Insurance?

You may be able to save thousands off your current auto insurance rate by switching providers. It is a very competitive market out there. It will only take you a few moments to enter your information into the search engine to get the best possible deal.

WA auto insurance

Protect yourself by adding anti-theft protection to your vehicle and shopping for the best auto insurance rates!

5 Reasons To Shop Around For Auto Insurance

Thursday, June 14th, 2012

Everyone is looking to save money these days. Taking just a few moments can save you hundreds — if not thousands — on your auto insurance policy. Here are five situations where shopping around for the best rates online is wise.

You Just Got Married.

In all your excitement about the Big Day and your Honeymoon, you may have forgotten that marriage opens up an opportunity to potentially save money on your auto insurance policy. Most companies offer multiple car discounts. If you get your homeowner’s insurance or life insurance through the same company, you will be eligible for a multiple line discount as well.

You Just Moved.

If you are moving to the suburbs or a more favorable part of town, you can save money on your auto insurance rate. National studies in big cities find that the discrepancies can vary by the hundreds of dollars!

You Just Retired.

Statistically speaking, retirees drive far less than their commuting peers. You may be eligible for special discounts if you are 55 and older or recently retired. Furthermore, your decades of driving experience and years of clean records can stack up in your favor too.

You Got A New Job.

Engineers, scientists, mathematicians, educators and military members statistically get in fewer accidents and are rewarded with lower rates at some auto insurance companies.

You Got A New Car.

New cars can sometimes increase your rate if you were driving your old junker around with collision insurance. However, increased safety features and the willingness to pay a higher deductible can offset those increases and actually end up saving you money.

5 Reasons To Shop Around For Auto Insurance 3

Retire recently? You could be saving on your auto insurance rate!


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 Promiga.com, it’s easier than ever to get a quick, free online auto insurance quote!

auto insurance rates

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