Car Blog

Auto insurance is a vital part for every car owner. It is a great place to save money since it comes with many variations and different levels of coverage, including liability, comprehensive, collision, and more. Of course, with all these choices, it can be overwhelming for consumers as they decide to buy car insurance.

There are lots of factors that affect the computation of insurance rates which are beyond any consumer’s control, two of which are age and driving experience. However, one of the most significant rating factors is indeed controllable, and that is the driver’s driving history. An already established fact, drivers who practice road safety will not only lessen the chances of getting themselves into an accident, but will also save money during their insurance process. This is because most auto insurance companies will likely grant discounts and rewards.

When applying for auto insurance, the accumulation of tickets and participation to various accidents would mean a higher risk of loss. This raises a red flag and will directly impact the computation of insurance premiums. Nevertheless, maintaining a clean driving history is not as hard to accomplish. Practicing traffic rules and regulations have been proven to be the most effective way to keep the blemishes off and lowering the rates hugely.

Nearly all traffic accidents recorded are caused by human error or impaired judgment. Over speeding, failure to yield, driving under the influence of drugs or alcohol, driving too closely from another vehicle and trying to race and beat the red light are the most common. Individuals who suffer from swelled car insurance rates do so because they have created a negative impression on their driving records. The good news is that, all of the items cited above can be avoided just by reducing the likelihood of getting involved in such mishaps. Being safe on the road will lead to fewer claims, which will eventually lead to lower premiums in the end.

Source: AutoQuoteNow.com

Drivers can save $500 or more

1. Drive less and earn a discount

If you drive less than 7,500 miles per year, you may qualify for a low-mileage discount on your auto insurance. And, some companies offer a commuter discount if you use public transportation during the week.

2. Don’t use your car for business purposes

Some insurance companies will add a “business use surcharge” or increase your auto insurance premium as your annual mileage increases. But, if you must use your car for business, be sure to tell your company, so that your daily business travel is covered.

3. Increase your deductible

You might save as much as 10 to 15% if you increase your deductible from $250 to $500. But, remember that you’ll be required to pay the larger deductible upfront if you have an accident.

4. Keep an eye on your credit report

Your credit history is one of many “risk factors” that most auto insurance companies evaluate when setting rates, in states where permissible by law. Paying your bills on time and maintaining a solid credit history will help keep your home and auto insurance rates lower.

5. Drive safely

You may be eligible for a price break on your car insurance policy if you have no accidents or traffic violations for a specified period, usually three years. Even a single speeding ticket can increase your auto insurance rates 5 to 10% depending on your state.

6. Buy a low-profile car

Cars are rated on a risk scale for auto insurance purposes. In general, sports cars and other high-performance vehicles are higher risk because they are common targets for thieves, and statistically, the people who own them tend to drive more recklessly.

7. Move

If you live in a rural community with little crime and traffic congestion, your auto insurance premium will generally be lower than if you live in an urban area where your car is more likely to be stolen, vandalized, or involved in an accident.

8. Keep your car in a garage

Cars parked in garages are less likely to be stolen, vandalized, or struck by other vehicles. And, you may get a slight premium reduction.

9. Install safety or anti-theft devices

Auto Insurance companies offer discounts for anti-lock brakes, automatic seat belts, airbags and more. Car alarms and tracking systems may also get you an insurance discount.

10. Shop around

OK, it might go without saying, but your current auto insurance company might not be the best one for you in the future! We recommend researching your options 30 to 45 days before your current policy is set to renew, especially if you have not shopped recently. Fact: Insurance.com customers reported annual auto insurance savings of $538 a year in April 2009. Your savings may vary.

Source: Insurance.com

The intense debate underway about the future of the American auto industry has generated a lot of discussion about the public’s attitudes.

“Right now, the American people are justifiably very concerned about the state of our economy and an overriding fear for their futures,” said pollster Peter D. Hart. “Polls I conducted in mid-November showed deep concerns about the harmful impacts of the collapse of the U.S. auto industry,” said Hart.

• 90% fear the harm it would do to America’s manufacturing sector.

• 84% of Americans say it would harm the U.S. economy.

• 70% fear the harm it would do to America’s standing in the world.

• 68% worry about the lack of consumer choice for America’s car buyers.

Some pundits have been citing polls by CNN that indicate that a majority of Americans do not favor “a program that would provide them with several billion dollars in assistance.” CNN does responsible and good polling. However, the question which is being touted on the financial loan assistance for the auto industry is not a good evaluation of public opinion or public sentiments.

Their question reads as follows: “QUESTION: The major U.S. auto companies have asked the government for a program that would provide them with several billion dollars in assistance. The auto companies say they may go into bankruptcy without that assistance. Based on what you have read or heard, do you favor or oppose this program?”

The basic flaw with the question is that the respondent must know the program. They don’t, so it is difficult to assume these respondents voicing an opinion are really talking about the legislation or program the congress is voting on.

There is a much more significant finding in this same CNN survey which has not been highly noted nor much discussed. Fully, 15% of the American public — or roughly 18 million households — tell the CNN pollsters that the auto industry going out of business “would immediately affect their families. Additionally, 77% of Americans say that auto bankruptcy would affect them and their families, if not now, sometime in the future it would affect them immediately.”

“This means that one out of six households would have a ‘goodbye and good luck’ sign put on their house. That is 18 million households directly affected. This would be the same as having a dozen Katrinas hit from coast to coast,” said Hart.

Peter Hart stated: “The bottom line is pretty simple — the American public does not want the housing industry to fail, the banks to fail, and they certainly do not want the auto industry to fail. This survey has merit, but the figure that counts most is the one that tells us that 3 in 4 Americans say they will be affected and 18 million American households will be affected immediately.”

Peter D. Hart is the founder of Peter D. Hart Research. He has co-directed the NBC/Wall Street Journal Poll for the last 20 years. His firm has conducted research for hundreds of corporations, government agencies, non-profits, including the automotive industry.

Source: Peter D. Hart Research