Posts Tagged ‘Auto Insurance Rates’

Hey, Low Risk Driver: Are You Paying Too Much For Auto Insurance?

Tuesday, June 19th, 2012

AAA’s annual Your Driving Costs brochure found that a low-risk driver with a clean driving record can expect to pay $1,001 a year for insurance on a sedan this year. This week, the Consumer Federation of America found that moderate-income individuals with clean driving records were being quoted high rates for minimum liability auto insurance coverage.

How Much Are We Paying For Auto Insurance?

According to the CFA, four companies — State Farm, Allstate, Progressive and GEICO — have 48 percent of the car insurance industry nationwide. In their research, they looked up what a 27-year-old male laborer and a 35-year-old female bank teller with perfect driving records and decent credit would pay. They drove paid-for 2002 Honda Civics 10,000 miles per year and made over $30,000 a year. They found:

  • 56 percent of the auto insurance rate quotes were over $1,000.
  • 32 percent of the auto insurance rate quotes were over $1,500.

Worst of all, quotes to the same woman from four auto insurers ranged from $762 to $3,390!

What’s Going On?

Insurers argue that their rates reflect risk and cost, but it’s hard to justify rate fluctuations that are off by thousands of dollars. The Insurance Information Institute believes that the highly competitive auto insurance industry leads insurers to price however they choose in the open market economy. The III added that city-dwellers can expect to pay higher premiums because theauto insurance claims payouts are generally higher.

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Are you paying too much? Search auto insurance quotes! It’s quick, easy and free to do!

Auto Insurance News: Big Brother Is Watching UK Drivers

Monday, June 18th, 2012

Drones, surveillance cameras, satellites and tracking devices are nothing new. Yet, many motorists hate the idea that the government could be using these tools to spy on its own citizens. That is exactly what’s happening in the UK right now.

The Plan

This spring, the British Government announced a proposal to use a license recognition program on the cameras to cross-reference the plates with a list of drivers who have auto insurance and updated registration documents in order. Anyone found driving without these two things would be unable to pump gas and local authorities would be alerted. The idea is: if they can’t get gas, they can’t drive!

The Problem

There are 1.4 million drivers — 1 in 25 — who do not have any auto insurance, says The Mirror. While authorities believe this is one of the worst records in the world, the US has them beat. USA Today reported that, in 2009, 14 percent of US drivers — 1 in 7 — are uninsured. Furthermore, places like Mississippi, Tennessee, Alabama, Florida, Oklahoma and New Mexico have over 20 percent of their populations driving without any protection.

The Backlash

So far, ideas have been proposed in America, but there has been significant backlash. Mary Catherine Roper of the ACLU says she is “fairly creeped out” by Pennsylvania Governor Ed Rendell’s idea to have highway cameras identify uninsured drivers to be fined. She explains, “We’re always skeptical when the government sets up yet another system of monitoring people who have done nothing wrong. How do I know that information isn’t going to be shared with other agencies? How do I know that information isn’t going to be used for other purposes?”

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Stay on the right side of the law & get insurance cheaper by searching free quotes auto insurance online!

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!

Five Auto Insurance Provider Secrets

Monday, June 11th, 2012

It’s not immediately clear how one’s auto insurance bill comes together. Just as Google rates websites, your auto insurance rate is a complex concoction of algorithms used to calculate your value. Most of the time, carriers are just hoping to break even on your premium payments. Ideally, you’d put as much money in as you’d ever need to cover the cost of an accident. So insurers are trying to keep prices competitively low, without putting them in debt. Here are five things you may not know about auto insurance pricing.

1. Women Pay Less.

If you’re a woman, you will (on average) pay about 12 percent less. This means that men will pay an extra $15,000 on auto insurance over the course of a lifetime.

2. College Grads Pay Less.

You will pay the most if you have a high school diploma or less. Rates improve with each successive degree.

3. Your Credit Score Matters More Than You Thought.

One of the biggest factors of your financial responsibility is your credit score. If you have a low score, expect to pay a higher premium.

4. Location Affects Your Rate.

On one hand, Louisiana has the nation’s highest premiums. A move to North Carolina would say drivers $1,500 a year in auto insurance. Similarly, moving from Washington D.C. across the river to Virginia will save $50 a month.

5. The Old and Young Pay The Most.

Statistically speaking, you’re more likely to crash if you’re old or young. Premiums peak from 18-25 and again from 55-75.

Actually, the best thing you can do to keep your auto insurance rate low is spend some time shopping around periodically to see how much you can save! Try our free online auto quote system today! There is no cost and no obligation.

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Can Your Smartphone Lower Your Auto Insurance Premium?

Friday, June 1st, 2012

We recently reported that auto insurance companies would be relying on driver data to determine how much to charge you for your premium. Yet, in the past, it could be a real hassle — requiring the installation of a special box in your car. Now State Farm and Ford are teaming up to turn your smartphone into an auto insurance premium lowering device. Through the “Sync” platform, State Farm will be able to determine: how often you drive, how fast you drive,  and how often you slam on your brakes. Sync supports 3G and 4G smartphones and bluetooth technology already, so it’s not much of a stretch.

Drive Less & Save

State Farm will periodically pull data from Sync’s smartphone link. Just for joining the program, customers will receive a 5 percent discount on their premiums. Individuals driving the national average of 1,000 miles per month will qualify for an additional 10 percent discount. Customers who rarely drive could see up to a 40 percent discount on their auto insurance rates! The program is launching in Utah, but will expand to other states.

Drive Safe & Save

For now, State Farm will be just tracking mileage. Ultimately, they plan to track much more, such as acceleration / stopping patterns, where people travel, speed and how often drivers go through stop signs. Businessweek speculates that one day drivers will have a taxi-style meter on their dashboards that tracks how much they’ve ratcheted up their insurance premium based on their driving habits. Would motorists think twice before speeding or slamming on their brakes? The results are yet to be seen, but the use of smartphones can revolutionize what Americans pay in auto insurance.

How To Save Money On Auto Insurance Now…

While waiting for the program to roll out, drivers can get lower auto insurance rates by looking up online auto insurance quotes. It only takes a few moments to see exactly how much one can save by switching providers! Drivers who are interested in making the transition, can elect to have a representative contact them by phone.

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Perks of Marriage: Cheap Auto Insurance

Friday, May 11th, 2012

There are many financial perks of marriage — lower taxes, access to employer benefits, better health insurance rates, and lower auto insurance premiums too. Most companies offer some type of discount for married drivers, although some companies may also offer cheap insurance for people who live together. States like California, Washington, Oregon and Illinois recognize “domestic partnerships” with discounts of up to 15 percent for drivers, according to Fox News.

How Do Married Couples Save On Insurance?

  • Multi-Car Discount – Typically, you’ll save significant money by switching to the same policy and signing up multiple cars with a carrier.
  • Multi-Line Discount – You can also save by getting homeowner’s insurance through your car insurance provider.
  • Driving Record – If your spouse has a better driving record than you, this can work in your favor.
  • Statistics – Statistically speaking, married couples are less depressed and less reckless. They tend to get into fewer accidents and take advice from a spouse on safe driving habits.

 How Much Can You Save By Getting Married?

Forum commenters claim to have saved as low as $61 per billing cycle or as much as $350 every six months. According to research conducted by Coverhound, a sample couple would have paid $309.01 per month for their separate policies, but they would pay $218.89 a month if they were married — which is a 29 percent savings. If your spouse has a particularly terrible driving record, you may not benefit much, but it’s worth looking up free auto insurance quotes.

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News: Auto Insurance Companies Raise Rates In Illinois

Wednesday, May 9th, 2012

Allstate Corp. plans to raise car insurance rates for Illinois drivers by 3 to 5 percent, according to company filings with the Illinois Department of Insurance. New rates will go into effect May 17th. According to the company, this decision reverses the “hometown discount” advertised since 2009. They added that the size of the increase will depend upon how long a customer has been with the insurance company. This decision comes after Allstate posted its largest profit gain since 2007.

Why Raise Rates?

Allstate has been struggling to keep pace with the lower-priced competition lately. This last price hike is their attempt to gain more ground. Company spokespeople say they’ve set aside more than enough money for accident claims, which has led to bigger profits than previous years. Similarly, Geico is raising rates 2.5 percent, which will go into effect May 10th for new customers and June 25th for most drivers. So Allstate didn’t really have to think twice about raising rates if everyone else is doing it too.

Is Everyone Raising Illinois Auto Insurance Rates?

Not everyone is jacking up prices, however. The largest auto insurance provider in Illinois — State Farm — just slashed rates 2 percent this past December after three years of annual increases.

How To Get Lower Auto Insurance Rates

Since prices are always fluctuating, the best thing a consumer can do is to shop around for competitive quotes. Each company has a different method of determining how much to charge a customer, so the numbers can really vary widely. Just a few minutes entering information online can save customers thousands of dollars per year in some cases.

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Auto Insurance Savings Tips

Friday, May 4th, 2012

Auto insurance can be ridiculously expensive if we let it! As we discussed yesterday, one person might be paying $585 a year, while another pays over $2,000! So what is a driver to do if he or she wants to chip away at these exorbitant prices?

Strategies For Reducing Auto Insurance Premiums

  • You could shop around. Now is as good a time as any to take a look at what another auto insurance provider might offer you. Every company looks at different factors to come up with your total premium. (For your convenience, you can search free quotes right from our site!)
  • You could reduce your coverage.  This could be dangerous, especially if you are reducing liability coverage, but you may be buying more coverage than you really need. For instance, there is no need to have high collision coverage for an old vehicle that is already paid off and isn’t worth repairing if it gets into an accident.
  • You could raise your deductible. This is a good option if you have $1,000 or $2,000 in the bank. Raising the amount you’ll pay in the event of an accident will lower your premium, guaranteed.
  • You could bundle your insurance needs. Most insurance providers will offer you a handsome discount if you get your homeowner’s insurance, life insurance, and car insurance all from the same place.
  • Drive safely! Avoiding accidents and tickets is the best way to keep your rates as low as possible.

Choose Your Car Wisely

The type of car you’re insuring very much factors into your rate as well. When buying a car, consider these factors:

  • Insurance loss records: Insurers want to know how much money they’ll lose if your car is totaled in an accident. Check The Highway Data Loss Institute to see how your car stacks up!
  • Price: More expensive cars with more expensive parts will cost more to insure.
  • Performance: Choose a vehicle with less horsepower and a smaller engine if you want to pay less.
  • Safety Features: You pay less on a vehicle with more safety features installed and a better overall safety rating.

There are other ways to save as well.

Hybrids can save you money in some cases. New cars cost less to insure if they are endowed with better safety features than your old clunker. However, you may also save by insuring a used car because the gap insurance will be less, since you are not experiencing the same rate of depreciation as a new car. Don’t forget to shop around for the best auto insurance rates!

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Illustration by Adam McCauley