Guest Post

In reason # 10 of 11 Ways to Cut Your Car Insurance on this site, the suggestion was made to “Shop, shop, shop!”—but you need a way to do that quickly and efficiently. Car insurance comparison websites enable you to gather information and rate quotes from the largest number of carriers in the shortest possible amount of time.

The goal should be to get cheap car insurance, and not just cheap, but sufficient coverage to make certain you’re adequately protected and in compliance with legal requirements. After all, that’s the whole point of car insurance, isn’t it?

Car insurance comparison web sites as a source of information

One of the often overlooked benefits of car insurance comparison websites is that they can be a source of information—the good sites can at any rate. Most of us don’t know all that we need to know not only to get the best rates, but also the best coverage for our particular circumstances.

When it comes to car insurance, “ballpark” prices are of little use. Since each driver is unique, any quotes supplied must make allowance for your personal profile. Car insurance rates depend heavily on such factors as age, driving record, claim history and even credit rating. Any deviation in any of these categories can result in a radically different rate quote.

Another critical knowledge factor when it comes to car insurance is discounts. Just as drivers can be penalized for poor driving records and credit histories, they can also get rate reductions based on certain factors. A good driving record, for example, can result in a substantial reduction in premium—that’s an obvious one. But there are other discounts available that we may not even think to ask about. Insurance companies often offer discounts for certain car models and even specific safety equipment, such as anti-lock breaks, that we might never think to inquire about. Insurance companies may not ask us about all of the factors that would result in reduced rates, which means we need to ask. The only way we can do that is by expanding our own knowledge base.

The idea isn’t just to shop for rates, but also to gather the information that will make us better informed consumers so we can press the insurance companies to give us the best rates that our circumstances will allow. A good car insurance comparison website will help with this.

How do you tell the good comparison sites from the bad ones?

All websites are trying to sell us something—that’s a given. The bad ones do just that—they sell without offering anything useful. The best evidence of a good site is in how much information they give away. Put another way, do they offer the type and depth of information that will make you a better consumer of what it is they’re selling?

A good comparison site is an effort to match informed consumers with reputable insurance providers. If the site accomplishes both, you’ve found a winner. A strong site will provide you with answers to all of your general questions, and at least point you in the right direction as far as the questions that are specific to your own situation. As a result of the information provided on the web site, you should be able to ask an insurance agent the kind of questions that will lead the agent to provide you with the best coverage for the least amount of money.

Still another factor is site security. You’ll be entering personal information when you go to a comparison site–how secure will that information be? Comparison sites should include the latest internet security standards (such as VeriSign) that will ensure that the site is doing all that is necessary to protect your information. If it doesn’t, you’re in the wrong place!

This is a guest post sponsored by MoneySupermarket, a UK based car insurance comparison website, offering comprehensive information to enable you to be an informed consumer, complete site security, and rate quotes from the finest car insurance providers in the UK.

Have you used car insurance comparison websites? What has your experience been?

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Guest Post

How might tickets and accidents affect your car insurance premiums? One speeding ticket in the last three years will likely not have a significant impact on your car insurance rates, unless it is a teenage driver. However, multiple tickets and accidents most certainly will impact your rates.

If you have experienced a large increase in car insurance premiums your best bet is to take time to receive comparison auto insurance quotes from competing insurance companies.

All insurance companies are not equal

The reason why it is important to request comparison car insurance quotes is because insurance companies charge differing amounts of money when tickets and accidents accumulate. Some insurance companies essentially want you to take your business elsewhere by increasing your rates substantially, while other companies will make your rate increase more reasonable.

Depending upon the company, the rate increase for multiple tickets or accidents can be most severe. Some companies may increase your individual rate two to three times the normal rate meaning that your car insurance premiums could double or triple! Or worse, you could be dropped by your insurance company altogether, being labeled as a high risk driver.

As the owner of an independent insurance agency in Cincinnati we witness the frustration of drivers who are penalized excessively by insurance companies for tickets and accidents.

Multiple tickets and accidents

If you have had multiple tickets or accidents what can you do to lower your car insurance rates?

Some may conclude that taking remedial drivers’ training courses would be the best option. Taking such a course may remove points from your driver’s license for the state in which you live and are licensed, but it will not help your insurance record with your insurance company!

The underlying reason is that remedial driver’s training does not necessarily change the behavior of the driver. It may remove the points from the license, but not necessarily the behavior that led to the tickets or accidents in the first place.

I distinctly recall as I was sitting in a class room for driver’s education many years ago, watching a gruesome video of car accidents and the victims being pulled from the wreckage, with the purpose of “scaring” teenage drivers into considering the seriousness of speeding.

Did it work for me? Absolutely not! My parents made the mistake of allowing me to drive a sports car they had purchased. On many occasions, I pushed the ‘pedal to the metal,’ one time exceeding 140 miles per hour with a few of my school buddies egging me on.

Remedial drivers training may remove the points from your driver’s license, but insurance companies will likely not remove the surcharge for tickets or accidents.

Changing your driving behavior is the best way to lower your insurance rates over the long term.

If you are in the unfortunate position to have a number of tickets or accidents on your driving record currently, contacting an independent insurance agency is your best bet to find the lowest rates on car insurance. The reason why is because only an independent insurance agent can truly shop the market for their clients.

Jack Thomas is an insurance writer and author with more than 23 years of experience in the insurance industry. Jack manages an independent insurance agency in Cincinnati, Ohio.

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11 Ways to Cut Your Car Insurance

Distractions draw your attention away from the road whenever you’re behind the wheel. On any given day, you might confront thousands of things that cause you to divert your attention or take your mind off traffic. Some are necessary. Stop signs, merging vehicles, traffic lights, and construction crews all must be acknowledged. On the other hand, cell phones, texting, reading, and putting on makeup should be avoided while driving. These and countless other distractions dramatically increase the risk of causing an accident. That will cause your car insurance rates to climb.

Below, we’ll share a few statistics that will demonstrate the extent to which talking on the phone impairs your ability to drive safely. We’ll then take a look at other activities that can pull your attention away from the road. You’ll also learn how a single mistake due to distracted driving can influence your auto insurance rates for years to come.

Talking On The Phone While Driving

It should not come as a surprise that using a phone while driving diverts your attention from the road. The U.S. National Highway Traffic Safety Administration (NHTSA) found that 18 percent of accidents involving fatalities, and attributable to driver distraction, involved the use of cell phones. Additionally, the Insurance Institute for Highway Safety (IIHS) reported that drivers are up to four times as likely to cause accidents when using handheld devices, including phones.

Many drivers think their experience behind the wheel reduces the risk. That is, they assume most of the accidents are caused by younger drivers, or those who have not driven for long. But this is inaccurate. The Insurance Bureau Of Canada (IBC) commissioned a study (published in 2007) that found novice and experienced drivers were equally distracted by cell phones.

Over the last several years, there has been a transition from using handheld phones to hands-free devices. This was based on the assumption that people are distracted by phone usage because they are forced to hold their phones while talking on them. But a study conducted by researchers at the University of Utah found this assumption to be untrue – or at least questionable. Findings from the study revealed that a driver’s reactions while using a phone are similar to those of a drunk driver, regardless of whether the device is physically held.

These studies demonstrate that using a phone while driving is a bad idea. But it is important to realize that many other seemingly benign activities may prove equally disastrous on the road.

Distractions Beyond Talking On The Phone

Researchers categorize distractions into three types: manual, visual, and cognitive. Manual distractions force you to remove your hands from your steering wheel; visual distractions cause you to look away from the road; and cognitive distractions affect your focus. With this in mind, consider the myriad things you might do that pull your attention away from the road.

Do you read while driving, including looking at maps or directions? Do you attend to your car’s stereo system (i.e. changing CDs, lowering the volume, etc.)? Do you shave or brush your hair in traffic? Many people eat meals while driving. Not only is doing so distracting, but some foods can drip, spill, or leave your hands greasy.

These activities may seem harmless, but will impair your decision-making ability on the road. In doing so, they expose you to an increased risk of causing an accident.

How Distracted Driving Affects Your Rates

If you’re caught driving while distracted, you may receive a ticket and be required to pay a fine. Although both are inconvenient, the financial cost of distracted driving can be far more severe. Your auto insurance rates are calculated based on numerous criteria. One of the most influential factors is your driving record.

If you have a clean record devoid of accidents and tickets, you’ll enjoy lower rates than otherwise (shop around to find the lowest rates possible). But a single at-fault accident on your driving record can cause your rates to rise by up to 40 percent. The reason is because your insurer will reevaluate the risk of loss associated with insuring you, and adjust your premiums accordingly. If you cause an accident due to being distracted, you’ll pay higher premiums for several years. That will amount to much more than a one-time fine.

Clearly, it pays to avoid distractions while you’re on the road. However, if you cause a collision that sends your rates skyward, shop around for another insurer. You may find that comparing quotes from several insurance companies uncovers a less-costly alternative.

This post is brought to you by Kanetix, which offers both Canadians and Americans an opportunity to comparison shop their insurance needs.

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By Kevin M

It’s often said that the only two things that are certain in life are death and taxes, and while that’s true enough, if you own a car you can add car insurance to that short list. Car insurance is virtually mandated in most of the Western world, and since you have to pay it, it helps to keep it is inexpensive as possible.

How do you do that? There may be 100 ways, but I’ve identified at least eleven.

1) Carefully chose the car you buy. Much of the cost of car insurance is set when you purchase your vehicle. Higher priced vehicles, certain model types as well as newer cars generally cost more to insure. Before buying your next car, you might want to get insurance quotes to see what it is you’re setting yourself up for. Once you own the car, it will be too late.

2) Keep your mileage down. Some insurance companies may offer discounts for lower mileage. Reduce your driving as much as is practical, keeping in mind that not only will lower mileage save on insurance premiums, but it will also lower your auto expenses across the board. This can also be a real incentive to set up a work-at-home arrangement; just removing a daily commute can have a major positive affect on premiums.

3) Raise your deductible. We’re often tempted to keep our insurance deductibles to a minimum so that we don’t see large, unpleasant bills when it comes time to file a claim. But if you have a good driving record, raising the deductible can lower your premium substantially. One way to do this without increasing your exposure is to add the increase in your deductible to your emergency savings, that way you’ll have the funds available in case of an accident. For example, if you increase your deductible from $500 to $1,000, add $500 to your emergency fund to have it ready if necessary. If you never have a claim, you’ll be $500 richer.

4) Keep your driving record clean. This is the single best step toward keeping your insurance premiums down. The premium penalties for accident claims and traffic citations is substantial, so make a habit of driving conservatively. If you have some driving events in your recent past, it’s crucial that you stay clean from now on. Most jurisdictions will clear your record after three years, and the insurance savings for doing so will make it well worth it.

5) Keep your credit rating clean. There is apparently some correlation between driving habits and credit ratings! Keep your credit as clean as possible, especially if your driving record isn’t. Be sure to pay all of your bills on time, and if you’re credit report reveals any discrepancies, collections or charge-offs, do what you can to clean those up. Many old creditors will accept pennies on the dollar to settle old debts, and cleaning them out can have as substantial affect on your credit rating—and your insurance premiums.

6) Take defensive driving courses. Many insurance companies offer discounts if you’ve recently completed a defensive driving course. But before you rush out and sign up to take a course, make sure that the cost of the course won’t exceed the discount you’ll receive on your car insurance premium for taking it.

7) Look for discounts. There are all kinds of discounts available depending on the insurance company. Discounts are often available if you have a college degree or for certain employment affiliations, such as unions, government jobs, affiliate companies or the military. Some offer discounts if you have a garage, if you’re a member of AAA or even for multiple discounts. Never assume that an insurance company will automatically disclose what discounts they offer—be bold and ask.

8 ) Safety equipment. Having certain equipment in a vehicle can have a positive affect on insurance premiums. Security systems, passenger and back seat air bags, anti-lock brakes, and automatic seat belts can all lower your premium. Check with the insurance company to see which systems and equipment will lower the premium and see how your vehicle stacks up.

9) Bundle with other insurance policies. This is a time honored insurance saving technique but it’s worth re-emphasizing. You can often get a break on your car insurance premium by adding homeowner’s coverage or some other type of policy to your package. Insurance companies do this as a way of both attracting and retaining customers.

10) Shop, shop, shop! Shopping for car insurance can be a bit of a pain so you may be tempted to avoid it, but don’t! Rates are moving all the time, and if you stay with the same carrier for many years you may miss out on lower premiums. An insurance carrier may cut their premiums in order to attract business from their competitors, and by actively shopping you’ll be in a position to take advantage of the cost savings.

11) If all else fails, relocate… I’m not suggesting that you relocate to take advantage of lower insurance rates, but depending on which country you live in, car insurance can vary significantly based on geographic location. In the U.S. for example, car insurance rates can vary substantially from one state to another. And what you typically find is that the same areas that have high car insurance rates often have higher than normal rates for health insurance, property taxes, rents, property values and a host of other expenses and fees. So if you’re planning to relocate to lower your cost of living, lower car insurance rates may be another factor weighing in favor of the move.

What are you doing to keep your car insurance expense under control?

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By Edward Pacheco

Everybody who drives must have car insurance. After all, it’is required by law. The problem in some cases is that insurance can be quite expensive. In rare instances it can even be flat-out unaffordable. In order to find the best car insurance policy for you, or your family, it is important that you do your due diligence. By taking a systematic approach to car insurance you will be able to make sure you are getting the best deal available.

In a day and age where money is so tight it’s reassuring to know that you are not overpaying for these services. I don’t know about you, but I am able to sleep a little easier at night knowing that I am not leaving any money on the table. If you really dig deep, and look hard, there are car insurance policies out there that will fit just about everyone’s needs at a realistic price. The key is to know what you are shopping for and to not make any quick decisions.

It pays to shop until you find the right policy—and agent

Take the time to shop around. As you know, there is an insurance agent located on every street corner, in every town, across the country. These insurance agents want your business and will do anything that they can to ensure that you do not go with their competition.

Set up some meetings with a few agents so you can have a chance to meet them face to face. In your meetings try to get a feel for how they will respond when you need them. In other words, if you are in an accident how good will their customer service be.

There is nothing worse than getting into an accident and then not being serviced by your insurance agent. You need an agent that is going to be there for you in an instant. Finding a company that will provide you with this level of customer service is a must in my opinion even if it costs a few extra dollars per month.

Give each agent information about your car, the type of coverage that you want and the people that you would like to have covered on the policy. This will help them formulate a quote for you. As you are aware, if you have a teen driver that has a brand new Jeep Grand Cherokee then the insurance rate is going to be a higher.

The key is to ask each agent about available discounts. For example, if the young driver is a good student then you may be able to get a bit of a break on the total cost of the policy. Also, if you have a great driving record, that is free of tickets and accidents, you may be able to get a safe driver discount. Asking the agents questions like these can help to save you hundreds of dollars per year if you qualify.

If face to face meetings spook you, let your fingers do the walking—on the web

If you do not want to meet with agents face to face then you can always use the internet. Each insurance company has their own website. On the websites you can fill out a form for a quote. The good thing about using the internet is that you can get multiple quotes sent directly to your email right from the comfort of your own home.

The drawback is that you will not be able to get a feel for how you will be treated when you need to use your insurance. Make sure that all of the information that you put on the form is accurate. If you put that you have a Kia Optima but do not include the year then you may not be able to get a quote or, if you do, it may not be accurate. The last thing you want to do is be quoted a price for insurance on a new car when in fact the car that you drive is nine years old. The quote will come back too high and you will pay no mind to it. Who knows, you might be missing out.

Once you get all of your quotes from the agents, or their websites, it is time to sit down and compare them. Make sure that the quote is for the level of coverage that you requested and that the price is reasonable. At the end of the day, you do not want to be paying for full coverage on a older Ford F150 work truck when all you really need is collision.

Edward Pacheco is an auto enthusiast who shares his knowledge about new cars, auto loans, and insurance at Automotive.com.

Who have you found to be the best insurance company for the money?

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Cheap New Cars – Are They Worth the Money?

By Kevin M

Conventional wisdom holds that once a car reaches a certain age and book value that the collision coverage portion of an auto insurance policy be canceled. But I may have stumbled upon a compelling reason why you might not want to drop the coverage no matter how low the book value of your car.

My wife and I own two cars, both of which have long since been paid off and at least one of which has a book value low enough that most financial advisors would recommend dropping collision. However, as both cars are of advanced age, we’ve been renting vehicles for the two or three long distance trips where flying doesn’t make financial sense. This saves a small fortune over the purchase of four round trip air fares and gives us use of a late model vehicle a good distance from home.

When renting a vehicle, one of the requirements of car rental companies is current and adequate auto insurance coverage, including collision and comprehensive. Had we dropped our collision coverage, we would be required to pay for coverage through the rental company.

Our most recent experience

One of our annual rental experiences ocurs every year for the Christmas holiday. We travel from our home in Atlanta to the Northeast where our entire extended families are located, a distance of about 860 miles. Now to give an idea as to why we endure the hassle of rent/drive for such a great distance versus a 2.5 hour flight, the reason is all in the numbers.

This year, the lowest price we found on round trip air fare for our family of four was in excess of $1500. We found we could rent an intermediate SUV for 13 days for less than $800, or about half the cost of flying. The car rental also provides two substantial advantages. We have a vehicle for the entire time we’re away and, with it being Christmas, we need to ferry holiday related packages and luggage coming and going, something that’s far less convenient and more expensive when done by air travel.

For the substantially lower price and the tangible advantages of renting a car, we’re willing to endure a 16 hour car ride each way. And as a bonus, this year we did an overnite stay in Williamsburg, Virginia, for an early Christmas dinner–18th Century style–at the Kings Arms Tavern in that historic community. An experience like that just isn’t in the cards when you fly!

The payoff

But back to the car rental. $793 for a 13 day rental of an intermediate SUV with unlimited miles is a pretty good deal, especially when you consider the busy time of year it’s happening.

Our regular auto insurance policy coverage extends to use of short term rental cars as long as the vehicle rented is in the same value class as the vehicles we already own. Translation: they won’t cover the rental of a Mercedes if your regular car is a Camry. Since we continue to maintain collision and comprehensive coverage, we’re fully covered for a car rentals.

Had we dropped our coverage as is often recommended, we’d be forced to pay $26 per day for coverage through the rental company. That’s $338 for 13 days, or about 40% higher than the base rental price. Now conveniently, $338 is close to the additional annual cost of keeping collision and comprehensive on our policy. It’s worth it then to keep the coverage just for car rental purposes and any additional benefit we might receive as a result will be in our favor. And again, we typically rent cars for two or three long distance trips per year to save wear and tear on our own cars.

Good deal, or am I missing something?