Even though laws vary from state to state, all drivers must carry at least some type of car insurance. While many people are trying to cut costs because of financial hardships, going without car insurance in hopes that you won’t be caught can be a very costly mistake. Even an accidental lapse in insurance because you forgot or couldn’t afford to pay the bill can cost much more in the forms of fines and penalties for a lapse in coverage, and may raise future insurance rates.

Minimum Standards

Most states require at least a minimum amount of liability coverage to pay for vehicle damages and injuries to the other party if a driver causes a wreck. This liability insurance covers the cost of medical expenses and property damage to other persons in case of a vehicle accident, but it usually does not cover the driver’s own losses. In case of even a minor accident, the police will check to see that all drivers involved are covered by insurance (or, in a very few states, a surety bond or self-insurance policy as a substitute). Police can also request proof of car insurance at vehicle checkpoints.

Proof of Insurance Requirements

Lenders require proof of insurance on financed cars. Often, lender requirements are higher than the states’ minimum liability coverage requirements. The lender will likely require comprehensive and collision coverage to protect the value of their investment in the vehicle in case it goes into repossession.

If the insurance policy lapses for any reason, the lender can force coverage by obtaining a policy on their own and charging the borrower for the cost. These policies are typically much more expensive than a regular insurance policy and they protect only the bank’s interest, not the interests of the driver. Forced coverage does not provide any liability insurance. If the lender forces coverage on your vehicle, the best thing to do is purchase a standard insurance policy as soon as possible and show the lender proof of coverage.

What if an Accident Happens?

If you are in an accident while driving without insurance, you can be liable for all the other party’s medical expenses. You will also be responsible for paying the costs to repair or replace the damaged vehicle. In addition, you may be charged with violating state motor vehicle laws, resulting in fines, court-ordered community service, or suspension of driving privileges.

Fines for driving without insurance can range from $500 to upwards of $5,000 depending on the state. In states with a punitive point system, 3 points or more may be added to a driver’s record for failing to have insurance. Some states even impose jail time of up to a year for driving with no insurance coverage.

Because car insurance companies run background and driving record checks on applicants, and since driving without a license is a violation of motor vehicle laws, which can add “points” to a driver’s record, being found guilty of driving without insurance can make it harder to obtain affordable car insurance in the future. Lapses in coverage may raise motor vehicle insurance premiums considerably or even disqualify a driver from obtaining a policy.

Your car insurance isn’t solely determined by your age, driving record and the type of vehicle you own. Where you live also plays a huge role in how much you’re going to end up paying. The premiums your insurance company calculates come from many risk factors, but none is as easy to understand as your zip code.

Geography

Zip codes correspond closely to the geographic regions of the United States, mirroring and including the cities and towns that dot the country. As a result, each zip code provides your insurer with a good indicator of the local level of urbanization. Drivers who live in zip codes associated with major cities and large population centers are at high risk for accidents.

Traffic

Increased traffic levels raise the likelihood of collisions, as do the number of traffic signals and pedestrians. Driving in cities can be insanely hazardous, and insurance companies routinely rely on assessments based on zip codes to determine the threat to their clients and their vehicles. In some cities, the state of road repair can adversely affect insurance rates.

Crime

Crime also plays a part. Car thefts are more common in high population areas. A thief may just be emboldened by the wider spread to choose from, or they might find the ease of stealing a car without being detected irresistibly inviting. Regardless what the actual motivating reason for a particular instance of theft is, more cars are stolen or broken into in cities and insurers know it.

Vandalism is also prevalent in certain zip code areas. Like the car thieves, vandals strike for varying reasons, but the fact of the matter is that some places, such as urban areas and certain low-income rural zones, are more crime-prone. Insurers look closely at these factors when they calculate the risk of working with you, also considering the likely repair costs incurred should something untoward actually occur.

Weather Patterns

People aren’t always the determining factor that makes insurance policies more expensive in certain zip codes. Some places are at high risk for natural disasters. Drivers who live in central and coastal areas that experience regular tornado or hurricane-level storms, for instance, are going to pay more money for their car insurance. Earthquake zones and fault areas are also higher-risk for insurers.

While floods and natural disasters are beyond our control, some counties and zip codes are worse off for their lack of adequate mitigation or recovery standards. Zip codes where government development and investments have created functioning levees, escape routes or early warning systems may still experience higher rates due to disaster regularity, but their insurance rates won’t be as high as those in underdeveloped areas.

Your zip code makes a big difference in how much your car insurance bills will be, whether because of disaster proclivity, population density or crime. Other zip code related factors, like local litigation regulations, also help insurers determine the costs they’ll incur when helping you out of a jam, affecting your rates.

The U.S. Department of Energy makes it easy for consumers to find out which cars are most fuel-efficient. For 2011, the agency has offered a list of the most fuel-efficient cars in America at “Fueleconomy.gov’s Top Ten EPA-Rated Fuel Sippers.” Not surprisingly, only hybrids and electric vehicles made the list. We’ve taken it a step further and offered a few more details, including pricing, on the top five.

5. 2011 Lexus CT 200h

It might surprise you to see a luxury car in with the Fuel Sippers, but there it is. The 4-cylinder hatchback defies your preconceived ideas about hatchbacks, offering the luxury Lexus drivers expect. This sporty little number gets 43 mpg in the city and 40 on the highway. Getting better city mileage than highway is a quirk of many hybrids. The CT shares the Prius platform, inherited from its parent company, Toyota, but with a lot more style and oomph. You can pick one up starting around $30,000.

4. 2011 Toyota Prius

The Prius is the car that proved hybrids were an option for average Americans. Priced between $25,000 and $30,000, it’s not cheap, but it is the most affordable car in its class. Small but roomy, the Prius is an excellent choice for most commuters. If you want something sportier, you might prefer the Lexus CT 200h.

3. 2011 Chevrolet Volt

At a pricey $40,000, the Volt offers an amazing 95 equivalent mph city and 90 highway when running on its electric charge. When running on gasoline, which must be premium grade, it gets 35 mpg city and 40 mpg city. The Volt offers a balance of utility and convenience, allowing most drivers to use the electric only power except for the occasional long road trip.

2. 2011 Smart ForTwo Coupe or Cabriolet Electric Drive

Smart cars are often confused with hybrids or electric vehicles in general, but they really fall under the unique, two-seat Mercedes Benz offspring. The Smart car’s origins allowed it to enter the market with an instant reputation for quality and craftsmanship. Looking a little like a miniature spaceship, Smart ForTwo boasts 94 mpg equivalent in the city and 79 on the highway for both the Coupe and Cabriolet models. Only available for lease in limited numbers at this time, you’ll be lucky to even see one, much less get your hands on the wheel. The cost of a lease works out to about $28,000.

1. 2011 Nissan Leaf

The 2001 Leaf beats all others for fuel economy with its all-electric motor. Priced at around $33,000, the Leaf offers the equivalent of 106 mpg in the city and 92 on the highway. The four-door hatchback makes it an excellent choice for environmentally conscious families.

These fuel-efficient wonders can save you a lot of money on gasoline. Unfortunately, until there is more of a history for insurance companies to look at, you won’t save a lot on insurance premiums. In the coming years however, these cars, often driven by responsible and eco-conscious individuals, should prove to cost less to insure once they prove themselves.

It is common knowledge that receiving a traffic ticket will cause your insurance rates to go up immediately. The truth is that premium increases don’t always follow traffic tickets in every case. The severity of the ticket and the means used by the courts and your insurance company will make a big difference in your ultimate consequences. Your previous driving record will also play a part in whether or not your insurance rates rise after your traffic ticket.

How Severe Is the Ticket?

Insurance companies do not treat all traffic tickets the same way. The less serious your ticket is, the better your chances will be of escaping without too much damage to your insurance premiums. Speeding tickets within a certain range are generally not even reported to insurance companies. If you are caught driving recklessly, however, the ticket will be reported and could cause your rates to increase. Speeding more than 15 mph over the limit, following too closely, or failing to yield for an emergency vehicle are examples of tickets that might be cause for concern.

Alternatives to Wipe the Ticket from Your Record

Most states offer ways that you can have the ticket removed from your record, especially if it is your first offense. In larger states like California, the option to go to traffic school rather than accept the ticket is available. You must sign the ticket at the time the officer issues it. Other states might require you to visit the courthouse to negotiate a way to keep the ticket from being included in your driving record. You might be able to pay a smaller fine and perform community service or go to a specific traffic school instead of having the ticket charged to your record.

Consequences of Accepting the Ticket

It may seem easier just to accept the ticket, pay the fine, and be done with it. If you don’t actively seek alternatives to accepting the ticket, your insurance rates are far more likely to increase. Traffic tickets can add points to your driving record, which increase your risk level in the eyes of the insurance company. Anything you can do to remove the ticket from your record will save you money in the end, especially if you have had tickets or accidents on your record previously.

State Laws Vary

Each state has different requirements for reporting tickets to insurance companies. You might have to pay additional fees in order to take traffic school and remove the ticket from your record. Many states place a restriction on how many times you can attend traffic school to protect your driving record. Some states will only allow you to use driving school as an alternative if you were caught speeding within 25 mph of the speed limit. To learn about the options available in your specific area, contact the courthouse that issued the traffic ticket. The clerk will give you more information about specific traffic ticket alternatives.

Allowing your car insurance to lapse for even one day can be painfully expensive. Car insurance companies charge much higher rates for customers who have experienced any lapse in coverage, no matter how long the lapse was.

1. Rates Increase Dramatically

Statistics show that purchasing a new insurance policy after you have had a lapse in coverage can cost you almost 6% more in higher premiums.[1] Some insurance companies might raise your rates by as much as 8% on a single car if you have experienced any lapse in coverage over the previous year.

2. Driving Without Insurance is Illegal

In every state except New Hampshire, you are legally required to carry a minimum amount of liability and personal injury car insurance coverage before you can register your car or renew your tags. You could face hefty fines, you could lose your license for a time, or your car could be impounded because it is not insured.

3. Those with Lapsed Coverage More Likely to Have an Accident

Research shows that drivers who allow their insurance coverage to lapse are involved in more accidents than those who carry insurance continuously. The same financial trouble that causes someone to cancel his or her insurance policy could also cause someone drive poorly. The emotional strain of unpaid bills can also be distracting to drivers, making them less attentive to the roadway.

4. Insurers Legally Required to Cancel Coverage for Non-Payment

Most states have insurance regulations that require insurance companies to cancel a car insurance policy after a certain period if no payments are received. Your insurance could lapse if your payment is late by a single day in some cases. Usually there is a short window of time before the policy will be canceled, but the longest your payment can be delayed is 30 days in the most lenient situations. Once the policy lapses, you will have to deal with all of the financial and administrative trouble that comes with opening a new policy as someone who has a gap in their insurance coverage.

5. More Expensive to Insure Multiple Cars after a Lapse

The rates for insuring a single car after a lapse in coverage can increase quite a bit, but the rates for insuring multiple cars after a lapse increases even more. Drivers who insure more than one vehicle could pay as much as 12% more for their car insurance than they would pay without any breaks in coverage, even if the coverage lapse were relatively short.

6. Lapse Eventually Costs More than Ongoing Coverage

The recent economic downturn has caused many people to look for new ways to save money while they work to improve their financial outlook. Cutting out car insurance might save you money right away, but it will cost you more in the end. The increase in car insurance rates when you purchase a new policy will be more expensive than the amount of money that you saved on monthly premiums.

7. Paying for an Accident Out of Pocket

If you allow your car insurance to lapse for any reason, you are putting yourself at a high risk. The costs of repairing or replacing your car or another driver’s car can be exorbitant if you are paying out of pocket. You could face legal penalties for being in an accident without car insurance, and you could face a civil lawsuit that might cost you thousands of dollars in a settlement.

[1] http://ifawebnews.com/2011/06/27/lapsing-auto-insurance-to-save-money-can-cost-up-to-12-more-later/

You can reduce car expenses by quite a lot when you know the cheaper alternatives to your current car expenses. Follow these tips to save hundreds, sometimes thousands on your car expenses.

1. Under-inflating tires - Under-inflated tires waste gas mileage because they don’t roll as efficiently. A tire will low pressure sags, putting more of the tire surface against the road, increasing friction and drag. Inflate them properly for the best gas mileage.

2. Buying Expensive Bulbs - Expensive headlight bulbs make very little difference to the amount of light your headlights emit, but they make a big dent in your wallet.  If your headlights seem dim, get new lens covers, or pick some up cheap at the junkyard.

3. Using Pricey Cleaners - You don’t need expensive cleaners for your car. Most of the time, soap and water work well enough. You can use something fancier, but you don’t need it.

4. Washing Your Car at Home - Car washes are an inexpensive way to clean your car. If you do it yourself, you use much more water, time and energy. Your time is valuable than the cost of a carwash. Just be sure to choose the cheapest wash and wax. The then you can do a better job and not take much longer to finish the job.

5. Buying High-Octane Gas - Premium gasoline is only helpful if you have an engine designed to run on it. If you put premium in an engine designed for the regular stuff, there is no benefit. You only need higher octane if your car manual calls for it or if you hear engine knocks. Use only the octane high enough to stop the knock. Then get your car checked to be sure something else isn’t causing the knock.

6. Using the Dealer for Service - Most independent shops will do the same job for less money and often in less time. Do your research beforehand, otherwise, you could find an unscrupulous shop that will take your money and run.

7. Waiting for a Breakdown - If you notice a shock absorber that’s causing uneven tire wear or a brake squeak, schedule the repair right away. Fixing things before they break is usually cheaper and a lot less time consuming than doing it after a roadside breakdown and tow to the garage.

8. Buying Extended Warranties – Buying an extended warrantee is usually money down the drain. Unless your car is particularly troublesome and you anticipate a lot of trips to the dealer, then save the money you’d spend on an extended warranty and use it for a repair if one ever comes up.

9. Paying Too Much for Insurance - Check the limits and shop around. If your car is only worth $1,500, then you may well be over paying. However, never skimp on liability coverage. Compared to the payout you get, it’s very cheap.

10. Speeding - Nothing will hurt more than a large speeding fine. Aside from the fine, you could also end up paying extra for insurance when your insurance company finds out. In addition, it can take years before your insurance rates will go back down.

Are you shopping for a new insurance company? Do you need to find the cheapest coverage? While there are barrages of sites that offer insurance quotes, it’s difficult to know which option is best to receive an insurance quote. Here’s the answer: FREE, No, obligation car insurance quotes.

You probably already know that comparing insurance quotes is one of the best ways to save money on car insurance. The most cost-efficient way to receive an auto insurance quote is by getting a free quote. With a free quote – you start saving money right away!

No obligation quotes make getting an auto insurance quote – hassle free! It’s nice to receive information from a website that doesn’t require you to open a policy at the end. While many car insurance and comparison sites offer free auto insurance quotes, in some cases, by entering your information, you may be obligated to sign up for a policy.

Let’s talk about the questions you’ll be asked before receiving a free, no obligation auto insurance quote. The primary question that is usually asked first is the 5-digit ZIP code where the vehicle is parked. Typically, they will also ask whether you have been insured for the past thirty days (for any vehicle and on any policy). Previous insurance information is used to determine risk. When an individual is not covered by an insurance policy, it increases the risk, as well, as the cost to insure them. Therefore, in order for the free quote to be accurately calculated, prior insurance information is needed to determine the most accurate quote.

It’s important to do a bit of research about an auto insurance quote site, before entering your information. The site should value its users’ privacy and should state their privacy notice, clearly. Auto insurance websites should never sell, give or transfer any personal data to any individual or other entity, except insurance agents, when necessary to receive an accurate quote.

Aside from the fact that these auto insurance quotes are free with no obligation, the best part about the no obligation, free price quote option is that you never have to leave the house, set up an appointment, wait at an appointment or use up a lot of money an time trying to find the right auto insurance company and quote.

Free, no obligation auto insurance quotes are available and they are all over the internet. Check out sites such as, InstantQuotePro.com, FoxRater.com (one of the largest networks for local and national insurance companies including, auto, life, health and homeowner’s insurance), car-insurancequotes.net and The General (where you can sign up for a policy, too!), to name a few. There are many that have been rated by website watchdog sites, as well, which is helpful in deciding the safest free, no obligation quote site. As always, it’s important to be a safe consumer any time you are entering your information and do thorough research about the company. Receiving free, no obligation quotes is the easiest, cheapest, and best ways to receive an auto insurance quote.

Do you want to know how to save money on car insurance? Read our easy, money-saving tips for how to cut back on your car insurance bill (even with teenage drivers, a poor driving record or other factors that may increase the rate).

The first tip (and probably the most important) to help save money on car insurance is to shop around for the best rate. Just like the price of gas, car insurance premiums can vary greatly for different insurance companies. In addition, insurance companies offer different rates in different locations. For instance, a State Farm in Idaho may offer the best insurance premiums in that area, while Allstate’s premiums may be the cheapest option in Florida. The process of comparing prices can be done over the phone (by calling the local office or toll free number), in person (by visiting local offices) or online (by receiving a rate quote from each possible insurance company or by getting a side-by-side comparison of some of the major insurance companies’ rates and  coverage plans). The rates can also change throughout the year, therefore, it’s a good idea to check the rates every six months – to be sure, you’re getting the best deal.

Finding (and qualifying) for the appropriate discounts is another way to save money on car insurance. Most insurance companies offer great rates to good students, part-time drivers, safe drivers and more. The secret to receiving these discounts is to know that they exist. The best way to find out more about the various discounts offered by different companies is to ask insurance representatives or to investigate online. In addition, it also helps to pay annually rather than quarterly or monthly, if possible, to receive an additional discount.

For households with teenage drivers, the insurance premiums are typically, sky high. However, if there are fewer cars than drivers in the household, it may be a good idea to list the teen as a part time driver to save money. If each driver in the household has a car then, the cheapest method is to list the teen as the primary driver on the car that offers the lowest rate. However, keep in mind that the oldest car (or the cheapest) does not always mean that the rate will be the lowest. If the price is still too high, then another way to cut back on the price of the premium is to buy an older car that offers a low rate (even if it stays put in the driveway) to list the teen as the primary driver. This way, the teen will still be covered on the other vehicles, but the rate will stay low, because of the cheap vehicle.

Insurance companies use many different factors to determine the premium such as, a person’s age, gender and driving record. Moreover, while the first two factors cannot be changed, it is possible for a person to improve their driving record. In many states, the DMV uses a point system (with points being assigned for accidents, speeding tickets and traffic violations), which is given to the insurance companies to determine a person’s driving history and ultimately, their car insurance rate. The more points a person has on their license, the higher the insurance rate will be. However, the points can be removed if a person attends defensive driving classes or traffic school. In addition, the longer a person goes without having an accident or receiving a ticket, the more the rate will drop. Therefore, even drivers with a poor driving record can get cheaper rates — it just takes some time.

Another great way to reduce the premium is by taking a higher risk, which can be done by lowering (or dropping) collision coverage on an older vehicle, if the vehicle’s worth is lower than $2,000. Another tip to lowering the premium is to change the policy by asking for a higher deductible (the money the driver is required to pay before the insurance company will pay their part). This allows the policy owner to pay for the small or minor problems, but lets the insurance company pay for any major claims.

In this economy, it helps to save money wherever you can — especially when it comes to major bills like, car insurance.

California car insurance shoppers: you have come to the right place. The number one rule to finding the cheapest auto insurance rates is to compare quotes, especially in a large state such as, California. From LA to Monterey , the rates vary dramatically according to the insurance company, therefore, to save money – it is essential to know about car insurance in California. In the following information, we will discuss the minimum car insurance requirements by California state law.

The rates in California (and other states) have changed throughout the years. For instance, the average car insurance rate in California is 21 percent less in 2010 than last year and 2009 was six percent more than the rate was in 2008 in California. According to CarInsurance.com, the typical cost of insurance in California is approximately $1,306, while the average (for the other 49 states) is about $1,552. However, the best way to find the cheapest rates is to compare rate quotes.

Comparing insurance rates in California (and other states) is a smart consumer option. The process of comparing rates is simple, fast and could save more than $100 per month! People who have an excellent driving record or even those who have a poor driving record can benefit by comparing rates in the great Golden State of California.

California residents can receive a quote by calling and visiting local insurance offices. While this tried and true method of getting an insurance quote is a great way to get the best deal for car insurance, it can consume quite a bit of time. However, the newest method for receiving a quote is a great way to save time and money. This method is referred to as, online rate comparison. Rate comparison online allows individuals to see side-by-side comparison of the rates, products and services offered by each insurance company. Initially, the sites ask the inquirer to enter the zip code where their vehicle is parked in order to begin the process. The zip code information allows the system to determine the quote comparison based on location. After entering the zip code, rate comparison websites require certain information to provide the most accurate quote including, the person’s gender, age, information about their driving history, credit report and more to generate a side-by-side comparison of several major insurance companies.

CA Driving Laws

The state of California (and other states) requires a certain amount of insurance coverage for motorists. The California state law mandates basic coverage, known as, 15/30/5 coverage, which includes:

-Bodily Injury Liability minimum of $15,000 per injured person with a maximum of $30,000 per accident

-Property Damage Liability minimum of $5,000

*Drivers in the CA Automobile Assigned Risk Plan are required to have 10/20/3.

California state uses the Tort system, in the event of accidents; therefore, a driver needs to be found at fault for being the cause of the accident and the driver responsible for the accident (and their insurance company) are required to pay for any damages.

Driving with insurance in California is the law, but it doesn’t mean that California residents have to pay a lot in order to receive the proper coverage – rate comparison is probably the best way to save money on car insurance.

The Honda Pilot scored remarkably high in crash tests (five out of five stars in side and frontal impact testing), so it makes sense why this vehicle is a great car to buy. Finding a good deal for Honda Pilot insurance shouldn’t be too tricky either. In the following information, we will discuss why Honda Pilot insurance is cheaper than most options as well as, the best ways to find cheap Honda Pilot insurance.

The Honda Pilot is one of the safest cars on the market because of the various safety features and high crash test ratings, so this car is not only safe to buy, but insuring this vehicle will be cheaper than most. The Pilot is equipped with airbags (front, side and head), rear head restraint, dynamic head restraint, seat belt tensioner, 4-wheel anti-lock brakes, electronic stability control, traction control and daytime running light safety features. Therefore, because the cost of insurance is dependant upon the safety of the vehicle — the Honda Pilot is cheaper than most because this vehicle is less likely to be involved in a car accident, which results in lower insurance premiums.

The Honda Pilot is also a very practical vehicle, which helps with the cost of insurance, as well. Many other cars feature extra enhancements or added upgrades that may make the vehicle more dangerous to drive, which increases the cost of insurance. However, the Honda Pilot is designed to do what it is supposed to — safely transport its passengers to their desired location. Therefore, the rates are lower for this reason, as well.

In addition to the safety and practicality of the Honda Pilot, the insurance company also considers a few other aspects when determining the rate. A person’s credit can increase the rate if their credit is poor. So, when a person works to improve their credit (and credit score), it helps to lower premiums considerably. In addition, a bad driving record can increase the premium, as well. (Tip: Defensive driving courses can be taken to eliminate points that have accumulated on a driving record.)

When insuring a Honda Pilot, the rates can vary drastically from company to company. Of course, it’s important to save money, so it’s a good idea to shop around for the best quote.

Each insurance company uses a different method to calculate their rate; therefore, the best way to get the best price for Honda Pilot insurance is to compare quotes from several different companies. There are multiple ways to get an insurance quote for a Honda Pilot including, visiting the local office, calling customer service, visiting the company website and requesting a quote (national companies, only) or individuals can receive a rate comparison by entering their personal information into a websites that offers side-by-side rate comparison. Each of these methods is helpful in shopping around for the right price for insuring a Honda Pilot.

The cheapest price for Honda Pilot insurance can vary according to many different factors ranging from the driver’s location, the year of the vehicle, and a person’s driving record and credit score, as well.