Four Steps to Comparing Insurance Rates Before Buying a New Car

If you are looking to buy a new car insurance plan, you want to make sure that you do not pay too much money for it. Every year, people pay far more than they should for the coverage that they need. They will pay hundreds of dollars more to one company to get the exact same coverage that they could get from another company while saving their money. This happens simply because people will buy the first type of coverage that they see, not taking the time to do the necessary research. If you consider the following things before you buy, you can compare the rates and get a good deal.

1. Shop Around

The most important thing that you can do is to avoid that trap of buying a policy from the first company that you find. This sounds obvious, but people do it all of the time. They let their feelings of urgency win out over their feelings of common sense. You want to look into at least three different policies with three different rates. If you have the time, you should look into around ten. Shopping around will give you a feel for the market so that you can know what is a good price and what is not.

2. Look at the Discounts

Some companies may have a high base rate and then give you many discounts. Others might give you a low base rate but then refuse to take anything off it for those who deserve it. If you are a good driver, you should look into these companies that offer discounts. You can probably qualify for a few of them. There might be a discount for having multiple cars or there might be one for having good grades in school. There could be others for driving a low amount of miles every year or staying out of accidents.

3. Look at the Types of Coverage

Another thing to keep in mind is that different types of coverage are more appropriate for different cars. When you are comparing rates, you need to compare all of the different types. If you have a brand new car, you might need comprehensive collision insurance. If you have an older car, you might be able to get by with the base level of coverage. Make sure that you compare all of these to see which plans give you the most coverage for the least money.

4. Keep Your Rates From Rising
When you are comparing, you also want to see how much the rates will go up in certain situations. If you are involved in an accident, your previously cheap rates might jump through the roof. The same could be true if you get a ticket. You want to avoid these situations to keep your rates from rising. To be safe, however, you should see which companies would increase your rates the least. These could prove to be a better deal in the end.

The Difference between Old and Classic Cars

The definition of a classic car can be slippery. Some people will not recognize a car as classic unless it was built in the 1920s and 1930s, before mass production. Some people would consider the New Volkswagen Beetle an instant classic in the cultural sense. There are some standard rules established by certain organizations like your local DMV, which will usually issue classic license plates to anyone driving a car that is more than 21 years old. That doesn’t necessarily mean that you should put classic plates on your 1990 Nissan Pathfinder, though.

Age Does Qualify – Eventually

For a car to be a true classic in the most common sense of the word, it needs to be old enough to take you back in time. Cars from the 50s and 60s are so intrinsically different from the cars of today that every surviving example could fall into the classic category. When you look at a classic car, you feel transported to a different year with a different culture. If a car can remain roadworthy for more than two generations, it will be a classic by almost any standard.

Increasing Value After Production Ends

Aside from age, the value of the car plays a part in whether or not it qualifies as a classic. All cars naturally depreciate from the day they leave the dealer’s lot. Classic cars are the ones that stop depreciating and start to gain in value when the numbers dwindle over time. They might have distinctive styles, like the Ford Thunderbird, or they might become popular for social reasons. Volkswagen buses began to appreciate remarkably after the release of Cars, featuring a big yellow VW bus as one of the main characters.

Rarity Improves Status

The harder it becomes to attain an item, the more valuable it can be. Some cars become classics simply because there are few left. A once boring family sedan in 1962 could become a classic today because few of them were preserved. That type of car was usually driven by families who were more interested in getting from one place to another than in preserving the car for future generations. When a car becomes an endangered species, it automatically becomes a classic.

Classic is in the Eye of the Beholder

The Classic Cars Club of America (CCCA) defines classic cars as those, “built in limited production numbers and were quite expensive when new. As a group, they represent the pinnacle of engineering, styling and design for their era.” When it comes to insurance, a classic is an older car for which parts are expensive or hard to find. The book value of the car may be irrelevant when it comes to the cost of repairing the car. Classic cars are best insured through agreed value, where you and your insurance company agree how much the car would be worth if it were involved in a total loss accident.

Accident Forgiveness Car Insurance: Sensible or Silly?

Accident forgiveness plans are add-on coverage options that allow you to keep your current insurance rate if you are involved in an accident that is your fault. Without an add-on like this, insurance rates usually increase somewhat if you cause an accident. Drivers who qualify for accident forgiveness will not see a rate increase unless they have more than one at-fault accident. Companies usually offer accident forgiveness to drivers who have three or more years without claims against their policies.

Details Vary Between Insurance Companies

Each insurance company has different rules when it comes to accident forgiveness. Some companies offer the coverage as soon as you purchase your first insurance policy. Other companies can make you wait up to five years before you become eligible for accident forgiveness. Some policies might require that you drive for three to five years without any traffic tickets. Talk to your insurance representative to find out exactly what the terms are for accident forgiveness on your car insurance policy.

Coverage Comes with More Expensive Policies

Although companies often tout accident forgiveness as a discount or customer benefit, it’s rarely free. Many insurance companies only offer the coverage to customers who purchase upper level expensive policies. Because accident forgiveness is an add-on to your traditional insurance coverage, you will have to pay an extra fee to carry the coverage, regardless of which company sells you the policy. Look at the fine print to determine whether you qualify for the coverage first. Then look to see what kind of difference the coverage will make on your regular insurance bill.

Paying More for Coverage You Might not Use

It’s ironic that only those who don’t need accident forgiveness can qualify for it. Safe drivers don’t generally need accident forgiveness. If you managed to drive for five years without as much as a traffic ticket, the odds are low that you will cause an accident in the near future. Since accident forgiveness coverage only kicks in after you cause an accident, you could spend years paying for extra coverage and never need to use it.

Pay Now or Pay Later

When you take on the extra cost of an accident forgiveness policy, you are essentially paying over time for the potential cost of rising insurance rates if you were involved in an accident. Your rates may not rise after your first accident, but they will rise immediately when you sign up for the additional coverage. In fact, if you manage to avoid accidents for several years, the additional cost of accident insurance coverage could eventually exceed the amount you would have had to pay for your accident in the first place.

Accident forgiveness is a great marketing tool, but it is not a good add-on for safe drivers. Most drivers who qualify will only end up paying more than they would if an at-fault accident increased their insurance rates.

Auto Insurance Cheaper for Larger Cars

Car insurance rates for larger cars can be significantly lower than the rates for smaller cars. The main reason for the difference lies in the fact that larger cars are safer to drive. SUVs and Mini-vans rank among the least expensive cars to insure because of their size and the tendency for their drivers to behave more responsibly on the road. Smaller cars are more expensive to insure because they suffer damage more easily and their passengers are at a higher risk for injury. In addition, small car owners are more likely to be teens because they are more affordable.

Lower Risk of Severe Injury

Most large cars are for families. This means they are equipped with the latest safety technology. Parents demand their cars be as safe as possible to protect their children in the case of an accident. Front and side airbags, curtain airbags, stability control, and anti-lock brakes are common on larger cars. The roominess of the interior also allows more space for passengers, making them less likely to become injured from striking other parts of the interior in a crash. Smaller cars can cause more injuries because the passenger spaces are so much smaller.

Safer Drivers

Not only are the vehicles safer, their drivers tend to be more responsible as well. People traveling with children tend to drive more defensively than if they were alone or with another adult. The accident rate for larger cars is lower because people driving them pay closer attention to the way they drive. In addition, many family cars have drivers that fall into the less expensive insurance range, based on marital status and age. Younger drivers don’t generally purchase large vehicles.

Sustain Less Damage in a Collision

The sheer size of a large vehicle makes it less expensive to insure, as well. When a large car runs into another car or object, the impact spreads over a wider area of the vehicle because the body is so big. This lessens the force to any one point in the vehicle. Large cars tend to sustain less damage, especially when in collisions with smaller cars that absorb much of the impact. For example, if a small car runs into a fire hydrant, the entire front end of the car could crunch up into the windshield. A larger car running into a fire hydrant will probably only sustain damage to the front bumper and possibly part of the grill.

Five Tips for Lowering Your New Car Insurance

Before you decide to buy a new car, it’s helpful to know how much it will cost to insure. You can ask the seller for the year, make, model and approximate mileage of the car so you can get a preliminary estimate. While many facts remain to be discovered on the car you are considering, having an insurance estimate can help you to decide if the car will fit into your budget long-term.

1. Always get several quotes.

Several websites offer auto insurance quotes, like those you can get right here. All you need to do is enter your zip code in the box at the top of this page to get started. You’ll have several quotes after just a few minutes.

Once you have your quotes, go to the National Association of Insurance Commissioners (NAIC) website to find your state’s insurance department. From there you can research insurance companies for help in deciding among companies. For most of us, however, price is the biggest factor. Check your quotes to be sure they all offer the same coverage. Only then can you objectively compare one policy to the next. The NAIC guide should help you understand the basics when it comes to getting auto insurance quotes online.

2. Ask About Car Insurance Discounts.

Certain habits indicate responsible behavior on your part and can help you qualify for auto insurance discounts. For example, both high school and college students may be eligible to receive a discount based on their grade point average. You can also receive insurance discounts for things like having a good credit rating, completing defensive driver courses and going for a specified length of time without making a claim. Make sure the companies quoting insurance for you factor these good habits into your rate.

3. Tweak Your Car to Reduce Risk Factors.

Beyond proving yourself a responsible driver, you can lessen the risk for your insurance carrier with some small changes to the car. Check the price of features like anti-lock brakes, automatic seatbelts and airbags that deploy on both sides if the car doesn’t already have them. All of these features will make you safer in the event of an accident and present less of a risk to your insurance company. Find out the cost of adding an anti-theft device as well. Compare the cost with the insurance savings to determine if you should install one.

4. Consider a More Conservative Car.

Sports cars are associated with high-risk drivers. If you have your heart set on a roadster, you can expect higher insurance premiums even if you are a safe driver. Look for the most practical car you can find that still suits your style. Take time to look for a car that gets good gas mileage since insurance companies favor fuel-efficient cars with better rates.

5. Seek Multiple Policy Discounts.

Take time to get a quote from the insurance company you already have. You may qualify for a discount that saves you more than if you switched carriers. It is also smart to ask the companies that quote insurance for you about any multiple policy discounts they might offer if you move your other insurance to them.

Automatically Renewing Your Car Insurance May Be Costly

Once most drivers have gone through the work of finding an automobile insurance provider and securing a policy, they aren’t in any hurry to do it again. As such, most drivers tend to stick with their current insurance policies, with an estimated 9 million drivers (27%) using auto renew. This means that, at the end of the policy period, the policy simply renews itself, often with additional charges in tow. Many drivers think they don’t have to worry about this, often believing that they’re still getting the same great deal or that their “loyalty” discounts will circumvent any additional charges. Unfortunately, many policy deals are only for the life of one policy, and those discounts often don’t make a dent in the additional fines that some providers will bill you if you let them. In fact, many people are unaware of just how much of their money is being sucked out of their bank accounts by their car insurance providers.

Studies indicate that approximately 39% of drivers in the United States have been using their car insurance providers for a period of at least three years. 5% of these drivers have even been with their providers for ten years or longer. Unfortunately, the number of drivers who check their renewal prices before renewing is a small 45%. Even fewer drivers, approximately 24%, bother to check any changes to their coverage or to the policy itself.

When questioned about why they chose to renew their car insurance policies automatically, 26% of drivers said they believed that their current provider would continue to offer a good deal or that their policy rate would remain the same. 29% felt it was important to be loyal to their providers. 16% didn’t want to deal with the work of finding a new provider or checking up on their current one, and 13% simply found the whole process intimidating and didn’t feel they knew enough to make an effective provider switch.

Sadly, it appears that laziness and ignorance are the most common reasons behind not switching providers when necessary or, at the very least, checking up on policy changes before renewing. This is unfortunate, because this can end up costing drivers an arm and a leg, often for coverage that isn’t even really adequate to keep them protected in the event of an accident. To avoid this, drivers are encouraged to, first and foremost, educate themselves about automobile insurance. They should know about the minimum coverage requirements in their state, the average premium amounts, and they should also gather and compare free rate quotes each time they wish to renew or change their policies. If drivers can do this and can commit to doing it diligently, even though it does take a bit of time and effort, they will likely be shocked at how much money they can save on car insurance each year. Remember, the average person will pay for car insurance for a period of fifty years, so you can’t afford to overpay even once!

Chrysler Lebaron Auto Insurance

If you own a Chrysler Lebaron, then you should know that you own both a luxury car and a classic car, both of which can cause your insurance rates to skyrocket if you’re not careful and don’t know what to do to lower insurance rates. Whether you own the original 1930s model, the 1977-1981 m-body m-size, the 1982-1988 K-body compact, the 1985 to 1989 H-body mid-size, the 1987-1995 J-body personal luxury, or the 1990-1994 AA-body mid-size, there are things you’ll need to do to make sure your car insurance rates aren’t through the roof and more than you can afford to pay or should have to pay just to drive your vehicle.

First and foremost, you’ll need to make sure that you are dealing with an honest, affordable insurance provider. You’d need to do this no matter what car you were driving, but it’s especially important for those who own expensive to insure vehicles like the Chrysler Lebaron. You’ll want to start your search by compiling a list of all of the licensed insurance providers in your area. In order to make sure it’s thorough—since you’ll want to see all of your options to end up with the most affordable policy—include both the bigger name providers, like GEICO and All State, and smaller, more local providers. These smaller providers, which are often overlooked, will offer great insurance rates and special deals to owners of classic and luxury vehicles in many cases.

With your list in front of you, start going through and researching each provider. A good way to get basic information about a provider is to visit its website. If you run across a provider that doesn’t insure classic cars (somewhat common) or that doesn’t insure luxury vehicles (rare), you can be sure to cross that one off your list. Most of your eliminating, however, will come as you do more in depth research. For example, you might cross providers off your list who have overwhelmingly negative customer reviews, especially if complaints deal with rising insurance rates, poor claims handling efficiency, or bad customer service. You might also cross off providers who have had several complaints with the Better Business Bureau or whose websites are unprofessional.

Your list should be narrowed down at this point, which will make it easier and less time consuming for you to request free rate quotes from all of the remaining providers. Make sure that you automatically discount any provider that asks you to pay for a rate quote, as these should always be offered free of charge. When you have your rate quotes, you should go through and choose the provider that offers you not just the lowest rate, but also the best coverage. Sometimes, it’s better to pay just a little bit more for your insurance and be better protected.

When you have your insurance for your special vehicle squared away, now it’s time to start trying for all of the discounts that you can! These discounts will help to counteract the slightly higher insurance rates you’ll be expected to pay as the owner of a luxury and classic vehicle. The good news, however, is that if you’ve chosen your provider carefully as described above, you likely won’t have to worry about qualifying for quite so many discounts to get your costs down. Good discounts that can be helpful for car owners like yourself include anti theft feature discounts, applied when you install approved anti-theft features, like a car alarm or steering wheel lock, on your vehicle; safety feature discounts, applied when you install approved safety features, such as airbags, on your vehicle; good driver discounts, awarded after a set amount of time in which you remain accident free and ticket free; multiple policy discounts, given to drivers who insure more than one vehicle through the provider or who also have home or renter’s insurance through the provider; and many other discounts as well.

Do be aware that not all providers will offer all discounts, and each will likely have different requirements for receiving the discount. As such, make sure that you discuss any plans to qualify for a particular discount with your insurance provider ahead of time.

Report: 1 in 7 Drivers Not Insured

Recently, the Insurance Research Council conducted a study to determine the amount of drivers who had insurance, as well as the number of drivers who did not. The results were rather shocking, showing that approximately one in every seven drivers does not have any kind of insurance. This means that a vast 13.8% of the drivers you may come into contact with on the road will not have any kind of automobile insurance. If you live in a tort state and are involved in an accident with an uninsured driver who is found to be at fault, you may have to go through litigation and many other lengthy, time consuming, and often unrewarded hassles to have the damages to your vehicle and/or injuries to yourself or your loved ones paid for. Or, if you yourself drive without insurance, you can face some very serious consequences depending on the state in which you live.

The 1 in 7 drivers who is uninsured is actually a national figure. In some states, the number and percentage of uninsured drivers is even higher! Tennessee, Oklahoma, and Florida are among the worst states for dangerous, uninsured drivers with approximately 24% of drivers being uninsured. Mississippi is even worse with 28% of drivers uninsured. In New Mexico, it’s 26%. Of course, just as there are states that are worse for having uninsured drivers, there are also some that are safer. Vermont has only 7% of its drivers uninsured; the same is true for Pennsylvania; New York has 5% of its drivers uninsured; and Massachusetts and Maine have only 4.5% of drivers uninsured. Whether you live in a “good” or “bad” state for uninsured drivers, however, you need to make sure that you have insurance and that you adequately protect yourself from the risks of uninsured drivers. 

First and foremost, if you are one of these dangerous uninsured drivers, then you need to change this right away. The most common reason that people do not have automobile insurance is because they think that they cannot afford it. However, there are so many different automobile insurance providers out there that if you are truly willing to put forth the effort, you can find a provider who will offer you an affordable policy with adequate coverage. This doesn’t come easily, though. You have to be willing to research all of the licensed providers in your area thoroughly and to request free rate quotes from each one that looks promising. Then, it’s your job to compare these quotes and go with the most reasonably priced provider. Do keep in mind as well that some states have special programs for low income drivers that can help them to secure automobile insurance. If you don’t qualify for such a program or if your state doesn’t offer one, then it may be time to cut back on spending in other areas. If you absolutely cannot afford car insurance, then it’s time to rethink whether or not you can afford the privilege of driving at this point in your life; unfortunately, not everyone can.

If you do have automobile insurance, then it’s a good idea to further protect yourself from uninsured or even underinsured drivers. Almost all providers will offer the option for uninsured/underinsured motorist coverage. Some states, in fact, even require drivers to carry minimum amounts of it. If your state does not require this type of coverage, then it’s up to you to determine the amounts you will realistically need and can afford and then to add them to your policy. If your state does require this type of coverage, then you should know that the minimum amounts really aren’t enough to actually protect you in the event of an accident. As such, you’ll want to be sure to raise your coverage as much as you can afford to.

The road is a very scary place, no matter where you live. Not only do you have to worry about inclement weather conditions, driving as safely as possible, and keeping your car running well, you also have to worry about the other drivers on the road, especially the ones without adequate insurance or who don’t have insurance at all. Protect yourself by having the right coverage at all times.

Top 4 Reasons You’re Getting Ripped by your Auto Insurance Company

There are a lot of people out there who, unfortunately, are paying way too much for their automobile insurance without even realizing it. Automobile insurance is something that the average person will have and pay for for fifty years, on average, or longer. When you’re going to be paying a bill for that long, it’s important that you don’t overpay even once. To avoid overpaying, we suggest reading our list of the four reasons people overpay for car insurance. If you find yourself making any of these faux pas, then follow our helpful tips to turn things around.

4. Not Enough Coverage:  If you’re paying next to nothing for car insurance, then you probably think you’re getting a pretty sweet deal. If you’re paying next to nothing, however, and not really getting anything in return, then this is a big problem. Many people skimp on coverage in order to pay a lower rate for car insurance, but what are they paying for exactly? Without adequate protection in the event of an accident, you are basically paying your car insurance company for nothing. Your policy is useless and won’t help you in the event of an accident, thereby defeating the very purpose of auto insurance and keeping you throwing your money down the drain. Even if it costs a little more upfront, always make sure you’re getting your money’s worth when it comes to coverage.

3. Not Getting Discounts You Qualify For: Unfortunately, a lot of drivers are unaware of just how many discounts there are out there. There are good driver discounts, awarded to drivers who have not had any accidents or ticketable offenses within a set time period; safety and anti-theft feature discounts for drivers who install such features on their cars; low mileage discounts; hybrid vehicle discounts; and even discounts for being married, adding a domestic partner to a policy, or having more than one policy. Discounts are everywhere, but if you don’t know if they exist and aren’t demanding to receive the ones for which you’re eligible, then you’re just paying money you don’t really have to pay. Make sure you know and keep on top of what policies are offered by your insurance provider and that you always demand what’s owed you.

2.Not Reading the Fine Print: Many people get cheated out of their money simply because they don’t read the fine print before they sign. A great deal on insurance, for example, might come with a time limit, after which rates increased, that is only discussed in the fine print. Likewise, some providers keep it in small letters that they will automatically raise your rates and/or coverage a certain amount each policy term. To avoid paying extra, hidden fees and fines, make sure you read and understand everything you put your name on.

1.Not Having the Right Provider: Finally, the number one reason people overpay for their car insurance is because they’ve chosen poor providers from the get go. Always make sure you take the time to shop around for car insurance and to compare rate quotes to ensure you’re getting a fair deal.

How Much is Chevy Aveo Car Insurance?

Everyone knows that Chevy Aveos, especially the newer models, are exceptionally nice cars and that they are worth quite a hefty sum of money. Unfortunately, it’s not just good, honest every day drivers that know just how much these little cars are worth; car thieves know this as well, and Chevy Aveos are very likely to get stolen. Another piece of bad news is that car insurance providers are also aware of just how likely it is for a Chevy Aveo to be stolen and, as such, they tend to charge higher premium amounts to owners of these and other expensive, newer vehicles. This might not seem fair on the part of the insurance provider, but you must remember that they have to protect themselves and insuring owners of expensive vehicles is taking a risk on the insurance provider’s part.

There is some good news, however. First and foremost, know that you don’t have to give up your dream of owning a Chevy Aveo. Instead, you just have to do a little work to find a good, reliable, affordably priced provider to start with. And then it’s up to you to go the extra step and to make efforts at getting your premium reduced as much as possible. All it takes is a bit of effort and dedication on your part. In short, if you really want to own a Chevy Aveo and to avoid paying insane amounts for car insurance, then you’ll do what it takes to make that happen.

As mentioned above, your first and most important step is to obtain a car insurance policy through a fairly priced automobile insurance provider. After all, even if you qualify for all of the discounts in the world, you’ll still end up overpaying if your provider bills you at every opportunity and charges exorbitant rates to begin with. So, take extra care when choosing an insurance provider. Take the time to research all licensed providers—both large and small—in your area. Sometimes, those smaller insurance providers can offer surprisingly great deals, customer service, and special offers to try and sway customers in their favor. Make sure you read online customer reviews of providers you are considering using, being careful to note any complaints about rapidly raising premiums, hidden fees and charges, poor claims handling efficiency, bad customer service, or other issues that are important to you. Finally, compare rate quotes, choosing the provider that offers you the most adequate protection at the most affordable price.

Finally, once you’ve settled on a policy, it’s up to you to talk to your provider about different possible discounts. You can better protect your car and save money on your car insurance premium by adding anti-theft features to your Chevy Aveo. Adding on a car alarm system or a steering wheel lock can save you big bucks with many providers. Choosing to park your car in a secure parking garage during work or overnight can also save you money.