Short On Cash? Don’t Skimp On Your Insurance


Current figures show that there has been an alarming increase in the reduction of vehicle insurance coverage by vehicle owners trying to save some money due to the lagging economy.

This is not an illegal practice; however, engaging in this activity could end up having drastic affects should you end up in an accident.

Consider these points:

  • As more and more individuals and families cut their insurance coverage or even drop it all together, driving becomes more dangerous for all concerned.
  • If a person is driving completely uninsured, that is not only illegal but could have financial ramifications that could extend well into the future should the individual be caught without it or, even worse, cause an accident while uninsured.
  • An un-insured or underinsured driver that causes an accident could easily be putting all of his or her assets on the line. They could conceivably be forced into bankruptcy and the liquidation of all unprotected assets.

Before you lower or drop your coverage all together, think about it.

This could very easily be a life changing decision of a negative fashion and it could affect not only you, but your family and or the passengers in your vehicle. If you cause an accident, you could also affect the life and financial future of the people in the vehicle you hit.

There are ways that you can reduce your insurance premiums without reducing your coverage.

It’s a much better idea to research those options rather than endangering lives and financial futures by taking negative steps such as reducing your insurance to too low a level or dropping it totally.

Are Auto Insurance Rates Actually Declining?

Graph Line DowInsurance rates have shown somewhat of a drop due to the price wars that are currently going on with insurance companies; however this doesn’t mean that you should feel fat, sassy and satisfied.

Keep an eye out for better insurance rates.

The more rate conscious the general public is, the lower the rates will remain, however, make sure in your comparisons that you are comparing apples to apples and not to oranges.

In other words, make sure the coverage is the same.

Many companies will try to cut corners in order to offer a really good looking deal. The old saying follows, if it’s too good to be true, it probably is.

  • Because of the state of the economy, many people are out of work and still others are afraid for their current jobs.
  • As the jobless rate goes up, so does the number of uninsured motorists on the road.
  • Because of this, you will want to make sure that you are covered for uninsured motorists,
  • but also because of this, rates may begin to go back up as insurance companies deal with more and more accidents caused by uninsured motorists.

A consumer’s best advice is to learn what the insurance companies base their rate quotes on. If you can learn what the quotes are based on, you may be able to change things around in order to lower your insurance rates.

Buy Insurance By The Mile?

Car OdometerIn this economy, more and more students are going directly into college after having graduated from high school. This always means more expense for the family as far as college related costs and also transportation related costs.

In the area of transportation related costs, there are things students can do in order to help minimize the impact their insurance will have on the family finances.

  • High grade point averages can mean lower insurance rates as high grade point averages are indicative of a student that is more mature and has accepted the burden of responsibility.

There is another interesting way that insurance premiums can be reduced without minimizing the amount of coverage the student receives.

  • College freshmen can sign up for a completely different form of coverage. The rate for this coverage depends on how much the student drives each year.

This ‘by-the-mile’ type of insurance can provide struggling students with much lower premiums. This can amount up to 25% off the normal cost of premiums. This plan is suited for students that will drive 12,000 miles or less during the year.

Students can take advantage of this rate by only using their vehicles for transportation when other forms of transportation are inadequate.

Those forms of transportation can include the student’s own two feet, or a bicycle. In areas surrounding colleges, generally you will find plenty of sidewalks to walk on and plenty of bike lanes if the student chooses that mode of transportation. This is good for the finances, good for the health and good for the environment.

You Aren’t The Only One Benefiting From The “Clunker” Program

Seat 850 SpiderThe federal government’s Cash for Clunkers program also known as the Car Allowance Rebate System or CARS was so popular that it ran out of money too quickly, and needed another funding amount.

In this program, the new car purchased had to achieve ten more miles to the gallon than the car that was traded in.

This plan was put in place to:

  1. Help the ailing car industry,
  2. Help with auto pollution rates, and
  3. Help the purchaser obtain a more reliable car.

It offered eligible owners rebates of up to $4,500.00 depending on the car being purchased and other factors.

Because of this program, rather than continuing a dismal decent, car sales have spiked to their highest rate since September of last year.

The ‘Cash for Clunkers’ program has had far reaching effects that benefited not just the car industry and the clunker owners; it also was a big boost to the auto insurance industry. They have had a large influx of new policies taken out by these new car owners.

By the time the program ended, more than 700,000 vehicles had been sold under it by dealers across the United States.

This large influx of new cars to be insured gave the insurance companies opportunities to market their products and services to the new owners. This has been a very welcome boost to an industry that has been suffering due to increased medical expenses as well as rising insurance claims and investments that have performed under expectations.

What You Need To Know About Rental Car Insurance

V-CarWhen you go to a rental company in order to rent a car, you will invariably be offered insurance for the period of time that you are driving the car. Most people purchase it without even thinking, or thinking that if something does happen, it won’t affect their normal insurance.

Many major insurance companies offer rental car insurance as a feature of their normal packages.

This protection negates the need for policy holders to buy the more expensive insurance offered at the rental car companies. The rental car coverage may not be all you would expect it to be either, as the driver may still be held liable for expenses such as loss of income which can be quite a hefty fee as it will cover the full time the vehicle is in the repair process.

Using your own insurance company to cover you will release you from any of these worries.

They will deal with the whole process, leaving you financially unaffected.

If you are renting a vehicle in another state or another country you will want to confirm with your insurance company that you are still covered. There may be extra coverage you will want to purchase in order to make sure you are fully covered in case of an accident.

What Declining Rates In Car Theft Mean For You

Car TheftDue to the introduction of such devices as Lowjack and may other different auto theft deterrent devices, car theft has diminished for the fifth straight year and in 2008 recorded the lowest rate in over twenty years.

Recovery rates for cars that are stolen are approximately ninety percent for those with good traceable deterrent systems and approximately fifty-eight percent for those without that type of system.

The only state that actually recorded a higher percentage of cars stolen last year was South Carolina. Insurance providers and purchasers alike can breathe a great big sigh of relief as the financial burden of stolen cars can be reduced for both parties.

The vehicles that top the theft charts are:

  •  the Honda Accord,
  • the Honda Civic,
  • the Dodge Ram pickup and
  • the 2000 Dodge Caravan.

These vehicles generally have minimal security and there are a very large number of them on the road. The stolen vehicles provide cheap parts in large quantity on the black market.

If you drive one of these vehicles, it is highly recommended that you install some sort of traceable security device in order to not only deter thieves but also improve your chance of recovery before the vehicle is damaged beyond recovery.

This type of device can also help lower your insurance premiums.

Going To College? Save Money On Car Insurance

Doodled DesksWith young students heading to college, the burden of educational and other costs on the family budget can be heavy, especially in this time of world financial upheaval. Adding a vehicle to the expense of sending a child to college can cause even more financial stress on the family.

There are; however, ways a student can help cut the financial responsibilities to the family budget.

  • Knowing exactly how much insurance coverage is needed is one good start. Dropping unneeded coverage can help lower the insurance cost, different cars can subsist under different insurance amounts.
  • A less expensive vehicle can mean less on insurance rates due to the cost of repair or replacement.

With an older car, you may want to leave off the comprehensive and collision coverage as the repair or replacement of the car would negate any value achieved in that sort of coverage. The general practice is that cars with a value worth under $3,000.00 would not be money smart to insure with comprehensive or collision.

Money can be saved by adding the young driver to the family insurance rather than having a separate policy specifically for that individual.

The way an insurance company looks at it, an inexperienced driver living with experienced driver parents are much less of a risk for an accident. Keeping the driving record clean and the grade point average high can also have a strong effect on insurance premiums.

Don’t Listen To The Hype! Teen Driver Myths BUSTED

TunnelThe downturn in the economy and the high cost of insuring young college bound students has been a burden that many college students and even their parents have been unwilling to bear.

The costs for a young driver’s insurance can be as much as two thousand dollars a year, even more if they have points already against them.

So these students have been driving completely uninsured. This puts them, as well as anyone in the vehicle with them or in any of the vehicles around them, at great financial and physical risk.

Comparison sites for vehicle insurance are normally free and ones that are not connected to any particular insurance company can help save their clients a large percentage on insurance.

Many young drivers believe that all of their possessions in their vehicle at the time of an accident are insured under the vehicle policy. This is not true, personal possessions are not a part of the vehicle, so therefore, they are not covered.

New cars are not always more expensive to insure, it depends on the make and model of the vehicle, the safety features and the anti-theft features. It pays to do research before purchasing a vehicle.

Vehicle owners must also be aware that the cheapest insurance is not always the best. Make sure you understand the features of each insurance quote before accepting one over all others.

It Is NEVER A Good Idea To Drive Without Insurance

KeysDuring this strong economic downturn, more and more drivers are opting to drive without auto insurance. As long as nothing happens, including getting pulled over for a minor traffic infraction, they may find themselves saving a thousand dollars or more, however, even a minor traffic infraction will prompt a police officer to ask for proof of insurance.

When that proof is not forthcoming, the trouble and expense begins.

  • Wherever you are, if you do not have another driver with you who is insured, you may find your car being impounded.
  • You can expect punitive costs to be levied for the lack of insurance
  • You may also find your driving privileges severely restricted if not completely taken away.
  • You will also be required to present a form SR22 from the insurance company you sign up for insurance with.

The SR22 form is costly as is insurance requiring it.

This is because the insurance company is required to tell the DMV any time your SR22 insurance policy expires. If you have been caught without insurance you will be required to provide the SR22 form and to carry that type of insurance policy for a number of years.

Should you get in an accident while uninsured, your life will become very complicated very quickly.

You will be wholly and completely responsible for the damages to property and persons involved. All of your personal assets will be at risk and you may be forced into bankruptcy. In a few short seconds, your whole life can be turned into a financial nightmare.

Don’t drive without insurance, it’s not worth it.

Easy Tips To Drive Safe And Lower Your Rates

A Windy RoadOne of the biggest driving mistakes people make is how they drive on winding roads.

They drive too fast for the road and/or for their driving abilities.

They believe they can go into the curves at a faster rate only to get scared and brake when they are actually in the curve.

Braking reduces the amount of control the driver has on the car and ensures a better chance of going out of control and into the on coming lanes.

The best way to drive through a winding road is to brake before the curve, then engage the engine lightly through the curve and add to your speed leaving the curve. As long as the engine is engaging the wheels you have more control.

Another place where people get into trouble is if their car starts skidding. Many people panic and often they let go of the wheel to cover their faces. Letting go of the wheel is the worst thing you can do.

If you are in a skid, you need to swallow your fear and concentrate on controlling the car.

In order to regain control of your vehicle, you need to steer into the skid. This means if the back end of your car is sliding towards your left, you need to turn your wheels in that direction, doing this will help regain control of your vehicle.

Learn how your car reacts to things.

The more confident control you have over your vehicle, the safer you will be on the road and the more likely you will be to avoid a possible accident due to someone else’s driving error.

This will help you keep your insurance premiums low and classify you as a low risk driver allowing you discounts and other perks.