Posts Tagged ‘Cheap Auto Insurance’

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.

How To Switch Auto Insurance 1

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!

auto insurance rates

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

Ohio Auto Insurance Laws

Tuesday, June 5th, 2012

In the state of Ohio, there are literally thousands of uninsured motorists breaking the law. The Ohio Dept of Insurance estimates that as  many as 15 percent of Ohio drivers carry no auto insurance whatsoever. Even more people are under-insured and unable to pay for damages they may cause in an accident.

Extra Ohio Auto Insurance

For this reason, you may want to consider buying extra UM/UIM coverage, which takes the place of the liability coverage the other driver did not have and pays for the injuries to you and your passengers. Uninsured Motorist Property Damage will cover the cost of repairing your vehicle if the other motorist does not have adequate insurance. MedPay is another optional coverage that pays for injuries to you or your passengers, providing benefits no matter who is at fault in the accident.

What Is The Mandatory Ohio Auto Insurance Coverage Required?

The minimum amount of auto insurance required by Ohio law is as follows:

  • $12,500/person for Bodily Injury
  • $25,000/accident for Bodily Injury
  • $7,500/accident for Property Damage

What Are The Consequences Of Being Underinsured In Ohio?

You must carry proof of auto insurance in Ohio whenever you are driving. You must have a copy of your insurance policy card, as well as a certificate of proof of financial responsibility on a form from the Ohio Bureau of Motor Vehicles. If you are caught driving without financial responsibility, you may suffer one of the following penalties:

  • 90-Day Driver’s License Suspension
  • License Plate / Vehicle Impoundment
  • Court Costs
  • $75 Reinstatement Fee
  • Impound Fee

To find a better price on your Ohio auto insurance and ensure that you are complying with the law, surf our site for free quotes!

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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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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

Auto Insurance Payments Are More For The Poor, CFA Says

Thursday, May 3rd, 2012

A new study by the Consumer Federation of America found that America’s poor are being overcharged for their auto insurance. These findings apply to 40 percent of Americans with annual incomes below $40,000. The CFA says they were legitimately surprised by how badly auto insurance companies treated their low-income clientele.

How Much More Do The Poor Pay For Auto Insurance?

Each state has its own minimum liability coverage law, but there are many other factors that can drive up a person’s auto insurance costs, including type of vehicle driven, age, and driving record. Unfortunately, many safe drivers who have no accident record and who drive very few miles are being charged hefty rates. Take, for instance, a 30-year-old executive (with a perfect driving record and 20-mile daily commute) living in an exclusive St. Louis suburb whose auto insurance rate is only $558 per year. A poorer person with the same perfect driving record and habits could end up paying $2,095 a year for the same level of coverage!

Here’s How…

  • He’d pay $60 more if he needed to pay installments, instead of lump sum.
  • He’d pay $71 more if he only has a high school diploma, rather than a college education.
  • He’d pay $84 if he had been unemployed at some point this year.
  • He’d pay $337 more if there was a time when he didn’t have a car.
  • He’d pay $347 more if he lived in a lower-income zip code.
  • He’d pay $638 more if he suffered a period of being uninsured for whatever reason.

Worse yet, states like Arizona, Texas and Arkansas charge drivers higher premiums for selecting the minimum state coverage levels, rather than the higher liability coverage wealthier drivers can afford!

What We Can Do

The CFA has suggested several necessary reforms, such as:

  • Lowering the minimum liability requirements and the rates associated with them
  • Establishing a low-income auto insurance program
  • Including other risk factors — like miles driven — which might lower rates for low-income motorists

However, the best thing that you can do is to shop for better auto insurance rates through our free quote system!

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