Connecticut and New York are the latest states to release their insurance departments’ annual consumer-complaint report, an important public resource for consumers in the market for an auto insurance policy from a new coverage provider.

Along with financial rating agencies and sites that provide free car insurance quotes online, these reports help prospective policyholders get a better feel for a carrier from whom they may be considering purchasing coverage.

In addition to the affordability of premiums and the financial viability of a company, it is important for shoppers to evaluate the extent to which current and past policyholders have been satisfied with an insurer. Consumer complaint reports aid drivers in this last capacity by supplying them with a window into the customer-satisfaction records of major insurers in the state.

Most state insurance departments offer aid to consumers by acting as an objective mediator when a dispute over coverage cannot be resolved between the holder and writer of a policy. When such a dispute cannot be resolved between these two parties, the department can step in and conduct an investigation, and at the end of each year, the department compiles a report displaying how many complaints were filed against each company.

To access these reports, consumers can go to their respective state regulator’s website and either access the report electronically or find contact information that can be used to obtain a copy. The website http://www.consumeraction.gov/insurance.shtml has a list of regulator websites.

Shoppers using this resource, though, should keep in mind two things. First, most departments’ reports include the total numbers of justified and unjustified complaints that were filed that year; the justified complaints are the ones in which the department concluded that the insurer had been in the wrong. Second, the complaint ratio is more important than the total number of filed complaints. Although a large insurer may have accumulated a significantly large amount of complaints, it may have had fewer complaints per premium, which will be reflected in the ratio.

Source: http://www.24-7pressrelease.com

American Auto Insurance

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This is because cities have many more drivers in a confined geographic area.  Insurance providers have the attitude that greater highway congestion equates with greater insurance risk. The numbers confirm this.  Some locations may have issues that cause the price of comprehensive coverage to be higher, such as high traffic or high crime rates.

The idea behind most states requiring drivers to have insurance coverage on their vehicles is to both support  drivers in the case they find themselves encountering legal action, and to help mitigate the financial problems which can arise in these events.

That’s exactly why drivers need to shop around for the least expensive car insurance that will make them legal but also offer them the most protection.  You also may be able to reduce the cost of coverage by taking whatever security measures your insurance company suggests.

Low Cost Auto Insurance

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Understandably, 16 year old drivers don’t have much driving experience; therefore, the cost of insurance is not going to be a pretty picture. This is especially true when compared to rates for older motorist.  Although it might appear unjust to base rates entirely on age, the truth is that statisitcally young motorists are more likely to be involved in an accident than any other age group.

Insurers develop premiums by analysing statistics for the potential risks involving the driver or the automobile and unfortunately, new or young drivers have the highest level of risk for the company.  The main reason insurance for 16 year olds is so expensive is because they are statistically more likely to be involved in an accident.

Teenage drivers often cause accidents, including serious collisions, and this is the reason why teenagers die more often from car accidents than from diseases or suicide.  Research shows that younger teen drivers are four times more likely to be involved in accicents, but sixteen year old drivers are three times more likely than a drivers between the ages of seventeen and nineteen.  Younger or more inexperienced drivers are at higher risk for loss payments by insurance carriers; therefore, they are charged higher rates.

Low Cost Auto Insurance

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Not only is automotive insurance required by law in most states, it’s also a useful protection against financial loss. Also, keep in mind that you must have a clean credit history since a lot of these providers will check that to decide on the rate you’ll pay for your insurance policy.

Insurance premiums are dependent on the number of claims filed in the past.  Therefore, it is usually best to not file claims for smaller events. To find the cheapest coverage, get rate quotes from a variety of respected carriers who provide the service that you need.

AutoInsure USA is an effective site which has assisted thousands of consumers in one-stop-shopping for auto insurance quotes. 

Last, your policy’s deductible amount determines the cost of your insurance.  Bear in mind that every person’s driving history is different, so an insurance company will offer different premium rates for the same exact policies, depending on the driver’s driving record and other factors.

The deductable is the sum you agree to pay as part of a claim, before the insurer pays the rest toward the claim. For instance, if your vehicle suffers $1000 of damage and the deductable was $250, you would pay $250 and the insurer would pay $750.That is because carriers decide their rates based on multipule factors not only involving the driver, but the vehicle, including where one lives and parks.

Often times rates are determined by the primary location of the insured, as many environmental factors can contribute to potential risk. There is discussion on introducing laws that will prohibit insurers from basing rates on the location of residence or if their vehicle is stored in a garage. Higher deductibles result in lower premiums.

Low Cost Auto Insurance Options

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Idle-off capability – The motor turns off when the vehicle is stopped in traffic or at a light, and turns back on when you move your foot from the brake to the gas pedal.

Regenerative braking – The electric motor helps slow the car, and functions as a generator to convert some of the energy typically lost during braking into electricity (thereby recharging the vehicle’s battery).

Power assist and engine downsizing – The electric motor helps propel the car, in particular during acceleration. Because the motor and engine share the power load, the engine’s size can be reduced, saving even more fuel.

Electric-only drive – The electric motor can power the vehicle by itself at low speeds and when first starting the car.

Extended battery-electric range. The car runs solely on electric power for 20 to 60 miles before engaging the gasoline engine. You have to recharge the car’s battery by plugging it into an external electricity source.

American Auto Insurance

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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.

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How to make Auto Insurance Comparisons

Auto insurance premiums of different companies vary widely, so if you want to save some cash on insurance you are going to have to take time to shop around.  You can contact insurance companies directly or on the phone or web. 

There are also many resources available that make it easier to make auto insurance comparisons.  These include consumer magazines, consumer websites and government agencies, such as your State’s insurance department.

Auto insurance is meant to provide some peace of mind and to protect drivers financially in case they are involved in an accident or have their car damaged or stolen in some other way.  When making auto insurance comparisons of the different insurance companies make sure to select a financially stable company by checking with rating companies such as A.M. Best and Standard & Poor’s.

Get quotes from several types of insurance companies when making auto insurance comparisons.  Some companies sell through branch agencies while others sell through independent insurance agents that offer policies from multiple providers. Other companies sell directly to consumers on the phone or online.  Because of these differences the cost of insurance may vary.

Price is not the only factor you should consider.  Service and dependability are also important factors to compare.  You will want to find a representative that is willing to take the time to answer all of your questions clearly.  Start your search by asking friends and relatives for recommendations.  Check with your State’s insurance department to find out about and consumer complaints for the companies you are comparing. 

Many auto insurance companies offer discounts for various factors, such as good driving record, credit history, other coverage, type of vehicle, annual miles, etc.  Find out all of the available discounts for each company when making auto insurance comparisons.  To make sure your are comparing apples to apples give the same information to the agent each time. 

Check out some of our other posts to get more information on making auto insurance comparisons.

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