Technorati Tags: American Auto Insurance

The Insurance Journal reports that no-fault insurance has become less popular as a way to keep court costs down as well as insurance premiums.

In fact, according to a study issued by the RAND Corporation, “While no-fault insurance was intended to lower the cost of compensating people involved in automobile accidents by taking most cases out of the court system, it actually increased costs because medical claims rose sharply instead”.

Source: http://www.insurancejournal.com/news/national/2010/03/02/107795.htm

No-fault insurance restricts the right to sue other drivers, receiving payments for pain and suffering or other similar damages that are non-economic and mandates that every driver be insured so that everyone involved in an accident can recover any economic losses directly from their own insurance company.  It was believed that this approach would reduce costs by minimizing litigation.   But because of increased medical costs these types of policies are actually proving to be more expensive. 

There is apparantly a greater tendency to uses specialized medical treatment because they were more likely to be covered and there is also evidence of greater inflation of medical costs in no fault states.  How this information will affect legislation in no-fault insurance states is yet to be seen.

American Auto Insurance

Technorati Tags: auto insurance, no-fault insurance

One of the biggest challenges young drivers face is finding and obtaining auto insurance.  Young drivers are a risky group to insure so young drivers will undoubtedly pay higher rates.  But there are some things you can do to ensure you are getting the best rate possible.

Here are a few things you can do to make sure you are getting the best rate possible as a young driver:

Lower Car Usage

If you drive less often you are less likely to get in an accident.  Because of this you represent less risk to the auto insurance company and can normally get a lower rate.  Make sure that the insurance company knows if you drive fewer miles than average.

Keep a Good Driving Record

You need to avoid traffic violations to get the best insurance rate as a young driver.  Make sure you to drive safely and obey traffic laws so that you don’t get tickets for speeding or causing accidents.  This will help keep your insurance rates down and avoid costly fines as well. If you are careful when you are driving and you drive less often, you should be able to keep a good driving record.

Keep Good Grades

Good grades are another way to get the best auto insurance rates if you are a young driver. Most auto insurance companies will give discounts to drivers that do well in school. Typically this requires that you have a “B” average or better. The individual insurance companies determine whether these discounts will apply for students who are high school or college, but again, this is something you need to make sure that the insurance company knows and is giving you credit for.

American Auto Insurance

Technorati Tags: American Auto Insurance, car insurance

Increasing your insurance deductible is one of the most common ways to decrease the premiums on you auto insurance.  But this is not the only way to cut the cost of your car policy.  Another way you can save on auto insurance is by eliminating collision/comprehensive coverage on vehicles that are old and are paid off.  If you have a loan on the vehicle the lender will not allow you to drop this coverage, but if the car is paid off it is your choice.  A good rule of thumb for making this decision is – if the vehicle is worth less than ten times the premium you should probably consider dropping your full coverage and switch to a policy that is more limited.

If you have other insurance policies, you may save on insurance by getting your multiple policies from the same company.  Many providers will give you a price break if you buy more than one policy through them (i.e. an auto policy and a homeowners policy).  Insuring more than one vehicle may also get you a discount.  I wouldn’t just assume that you are getting the best deal though.  In some cases you may actually save money by buying seperate policies from different insurance companies if you shop around.

Another helpful step you can take to get the best deal on auto insurance is maintaining a good credit record.  This may seem strange, but more and more American auto insurance companies are using credit information as a factor for consideration when it comes to determining insurance premiums.  That’s a good reason to pay your bills on time and keep your credit balances as low as possible.  You may also want to do an annual credit check and correct any errors you find.

If you drive fewer miles per year than most people because you work at home or carpool you may also be able to get a low mileage discount.  In some cases employers may have access to group rate discounts on insurance programs so you may want to check with your employer, or any other groups that you belong to, to see if they have any group coverage at a discounted rate.

Additional discounts you may be qualified for include: discounts for drivers that have a good record, meaning you have not had any accidents or moving violations in the recent past. People that participate in defensive driving courses and parents of driving age children that are good students may also qualify for additional discounts.

Quick Summary of Ways to Save On Your Auto Insurance Policy

• Elect to accept a higher insurance deductable
• Drop Collision and Comprehensive insurance coverage for one or more vehicles
• Check on discounts for having multiple policies with the same insurance company
• Maintain a good credit record (seems strange but it’s true)
• Low mileage discounts
• Check with your employer if they have a group plan available
• Good driver discounts for drivers with a good driving record
• Discounts for completing defensive driving courses
• Good student discounts
• Discounts for students who are living away from home without a car

American Auto Insurance Blog

Technorati Tags: American Auto Insurance, car insurance

Unfortunately when the economy goes bad it can increase the risk of uninsured motorist for everyone.  In Washington State it was found that in the first three months of 2009 the number of tickets writting for lack of insurance increased by 10%.  Thats ten percent in just 3 months!

Is it really a savings?

If you drive without insurance in Washington state, for instance, and you get caught the fine is more than $500.  If you don’t pay the fine then you could lose your license. That’s not the worst of it however.

If you are involved in an accident and find yourself without insurance, you could lose everything. In other words, driving uninsured could easily cost much more in the end.  It is a much better idea to find a way to afford it, even if it means trading down to a less expensive car or using mass transit instead.  You should also ask your insurance company for options to help you pay and price shop policies aggresively based on the suggestions given in this blog.

American Auto Insurance

Technorati Tags: affordable car insurance, driving uninsured

Auto coverage not only varies from state to state and company to company, other things can affect your coverage as well, such as changes in your life.  Three major life events impact your auto coverage. Number one is marriage.  Number two is a change in marital status such as divorce or widowhood.  Number three is reaching the age of 50.  Of course, you should review your policy on an annual basis, but when these events occur you have good reason re-appraise your insurance needs.
 
Many advantages exist when you get married so ask questions of your existing insurance carriers as well as comparison shop the benefits of combining both spouses’ cars on the same policy.  If you own a home, further reductions may be possible with multi-line policies and males under 25 will often see a big drop in premiums.

Maintain a reasonable amount of liability insurance to protect the combined assets of a joined household.

Divorce and widowhood affect auto coverage in many ways.  Coverage is based on where a vehicle is garaged when not in use so a change in residence may void a payout in event of an accident if an ex-spouse is living elsewhere. Worst-case would be policy cancellation. If a vehicle is joint property you will typically maintain a single policy until the final divorce papers are signed.

Drivers that are age 50 to 65 are considered the safest on the road. This may result in greater auto insurance benefits. An individual who reaches age 50 should notify the insurer and ask about any possible discounts and the advantages of policy changes.  Less time on the road may also reduce premiums.

Technorati Tags: insurance changes, marriage and insurance, policy changes

Here is a real predicament for State’s that have a lot of illegal immigrants that have a need for American auto insurance:

In the past the Texas Department of Public Safety has renewed licenses of non-citizens without checking to see if their original visa had expired.  Department officials say they do not know how many non-citizens with expired visas renewed their licenses over the past several years, but they stopped the practice in May.

Now, under a new regulation that took effect on the first of October the state has tightened its licensing policies even more by requiring that foreign nationals prove they are in the United States lawfully before they can get an original license or renew an existing license or get a duplicate license or ID card.  This is all being done in the name of national security.

The Department of Public Safety released an estimate that the new rule could affect as many as two million Texas residents!

The new regulation means that non-citizens who have legal permission to live in the country will now get a different, vertical-shaped driver’s license having temporary visitor designations. These new licenses will only be valid until that person’s legal status expires.

Non-citizens whose legal status is scheduled to expire in less than six months cannot get a license or ID card at all.

Some state lawmakers and immigrant advocates are criticizing the new policy and warn that it will drive illegal immigrants deeper underground and that it will raise the number of unlicensed and uninsured drivers on the road. Critics also are concerned that the use of a different-looking license could lead to profiling and discrimination.

It is not known for sure how many illegal immigrants in Texas drive without a license or without liability insurance — which all drivers are required by law to have — but it’s presumed that the vast majority do not carry insurance.

Of the hundreds of auto insurance companies in Texas, “there may be a small number of companies that would sell insurance to a driver who does not have a valid driver’s license, but I am not familiar with any of those companies,” said Jerry Johns, President of an insurance trade association representing companies in Texas and Oklahoma.

Source: Juan Castillo, AMERICAN-STATESMAN STAFF

Technorati Tags: insurance for immigrants, non-citizen insurance, texas auto insurance

What factors are considered when determing your insurance premiums?  You might be surprised.

Most insurance companies use a risk scoring system that is focused on insurance-specific factors as part of their determination as to whether or not they will take you on as a customer and what rate they will charge you.

Then, as you may have guessed, they consider other factors like your age, your driving record and, of course, the vehicle you are insuring (value, repair cost, risk of theft, etc.).

This all makes perfect sense to most people, but the factor that more and more companies are using as another factor for determining your risk may not make that much sense too you.  Nevertheless, it is important that you are aware that it may be affecting your insurability and the premiums you are paying. 

So, what is that other factor.  Believe it or not, it is your credit report information. Yes, a growing number of home and auto insurance companies are using credit bureau information to predict the potential of future losses.  Including determinations as to whether to accept you as a customer, whether to cancel your policy, and whether to renew your current policies.  In addition, they are using this information to determine what they will charge you for the premiums.

Why are they doing this you ask.  Where is the connection between auto claims and credit history?

Well, apparantly studies that have been done in the industry show that certain negative credit reports (like delinquent payments, outstanding balances on credit cards, accounts in collections, foreclosures, and bankruptcies) are related to the likelihood that a person will file an insurance claim.

This practice even affects those who don’t use credit.  Those who use cash, not plastic, to make purchases can get squeezed because in the eyes of the insurance companies, they have no credit history.

Now, not all states allow this practice.  You’ll have to check with your insurance company directly to see if they are using your credit history to calculate your insurance rates.

This gives you another reason to keep your credit sparkling clean. Make sure you repair any credit blemishes on your report so there are no surprises when it’s time to renew your insurance policy.  Click on the link to learn how to raise your credit scores.

Technorati Tags: Auto Insurance Comparisons, credit history, insurance premiums, insurance rates

Do you plan on taking a trip to Mexico?  Are you going to be driving your own car?

If you plan on driving your own vehicle into Mexico you are required to have Mexican domiciled Auto Insurance. This is a serious matter.  If you don’t have the insurance your automobile can be seized and you can be put in prison.  Not a fun way to spend a trip.

There are on line insurance sites that allow you to obtain a Mexico insurance policy in just minutes before hitting the road.

There are approximately twenty insurance companies in Mexico that offer auto insurance coverage for tourists. Be careful though.  When you buy coverage from Mexico Insurers, be sure to check the specific A.M. Best rating for that particular insurer.  Even some large Insurance Providers in Mexico have not been rated by A.M. Best Company. You shouldn’t buy coverage from unrated insurers in the US, let alone in Mexico.

Besides checking on line for Mexican auto insurance you may want to check with your own current insurer to see if they can offer special coverage for your trip.  If you are working with a travel agent, get their advice, but be sure to do some comparison shopping to make sure you are getting the most reasonable price.

Taking a trip to Mexico can be fun, but be sure you are prepared so you don’t get any nasty surprises with your Mexico auto insurance.

Technorati Tags: International Auto Insurance, mexico auto insurance