"Fit a small device in your car and you could get 30% off your car insurance premium. It's not as if the device is a semtex bomb or anything, so you'd expect people to jump at the chance, surely? And you'd be right.
Norwich Union's Pay As You Drive car insurance product for young people was over-subscribed. If you haven't heard of it yet, the insurer installs a black box no bigger than a DVD case in your car, so that it tracks you with GPS and records when, where and how often you drive. You pay a reduced monthly premium and then you pay for your usage.
The box records other information too, such as how fast you drive. According to moneysupermarket, the technology could even work out how fast you corner.
Norwich Union has now acquired two years of data from the first wave of subscribers, mostly aged 18 to 21. At present no one else can join, but I think it's likely the scheme will be rolled out to all drivers at some stage in the near future. Not only that, but other insurers are going to get in on the act.
This scheme is best for 'good' drivers. It's most competitive for anyone who's willing to do less mileage - perhaps less than 100 miles per day - and if you don't drive after 11pm. You may also be better off if you drive on safer roads.
One alternative to this is to simply get a low-mileage scheme. To find these policies, you just compare car insurance quotes online or walk into your broker and get a quote as normal. The mileage figure you provide will automatically be factored into the quote, so you should get a cheaper premium. You should always get quotes from lots of insurers, as a standard policy from one insurer will often beat specialist schemes like a low mileage one, or even Pay As You Drive.
However, I believe black-box policies are the way of the future. Insurers are constantly searching for more data to improve pricing, and looking for more ways to collate that data. You might not like the idea of big brother-type boxes, but, as more insurers get on board, good drivers may well have to take these schemes in order to get cheap policies. Anyone who doesn't co-operate may find that their premiums become less and less affordable.
Right, I'm off to buy 100 metres of tin foil. That'll keep those spying eyes off me!
Norwich Union's scheme is currently closed to new applicants, but you can still reduce your premiums by comparing car insurance quotes through The Fool.", By Neil Faulkner, Fool.co.uk, September 12, 2006
Saturday, September 23, 2006
Thursday, September 14, 2006
Yellow cars could keep car insurance down
"Yellow cars could prove a safe option for motorists who want low car insurance after a study found they were the least likely to be broken into.
A survey of 2,500 drivers, carried out by security firm barriersdirect.com, established that the most prevalent colour of cars which had suffered break-ins was blue, accounting for a quarter of responses given.
With only two per cent of votes, yellow cars had been broken into the least.
The second most popular answer was red, with 22 per cent of answers, followed by silver with 13 per cent and white with ten per cent.
Another finding was that 16 per cent of stolen vehicles such as cars and caravans are taken from house driveways or outside owners' homes and a third of those questioned said they became anxious if a strange van, car or lorry parks outside their house.
This information echoes the finding by the British crime survey, which discovered that about 40 per cent of vehicle crimes happen on the street outside the home.
A key point of the crime study was that new cars are at least risk of being stolen as a result of advanced security measures, which could also contribute to lowercar insurance premiums." Kwik Fit Insurance, UK
A survey of 2,500 drivers, carried out by security firm barriersdirect.com, established that the most prevalent colour of cars which had suffered break-ins was blue, accounting for a quarter of responses given.
With only two per cent of votes, yellow cars had been broken into the least.
The second most popular answer was red, with 22 per cent of answers, followed by silver with 13 per cent and white with ten per cent.
Another finding was that 16 per cent of stolen vehicles such as cars and caravans are taken from house driveways or outside owners' homes and a third of those questioned said they became anxious if a strange van, car or lorry parks outside their house.
This information echoes the finding by the British crime survey, which discovered that about 40 per cent of vehicle crimes happen on the street outside the home.
A key point of the crime study was that new cars are at least risk of being stolen as a result of advanced security measures, which could also contribute to lowercar insurance premiums." Kwik Fit Insurance, UK
Can Car Insurance Be Affected By Your Bad Credit History?
"If you have bad credit you can be denied car insurance! The protections afforded to the consumer since the Depression of 1929 no longer exist. The Financial Laws passed through Congress in 1992 allowed banks, insurance companies, investment firms to handle banking, insurance and investment operations. Laws passed after 1929 had prevented banks from insurance and direct stock exchange trading, likewise insurance companies could not pursue banking operations or stock exchange nor could stock exchange companies pursue insurance or banking operations.
This freedom was granted without the subsequent protections of the consumer included in these new laws. There currently exists no single body of consumer law covering the privacy of consumers. The private citizen must fight the triumvirate of bank,insurance and stock exchange through the court system for his own right to privacy.
Some states have allowed the use of individual credit to be a determining factor in the issuance of car insurance. However, two such states, Texas and Michigan have institutionalized state agencies to meticulously govern and manage those insurance bodies. These states have a socialized automobile security plan where individuals having bad credit or low income jobs can obtain economical coverage or liabilitycar insurance.
True, each has rather strict guidelines by which a motorist can qualify for low cost insurance. However, this is a two edged sword! The performance characteristics of every insurance agency and company are meticulously maintained. These involve the speed with which legitimate claims are processed by the insurance company, customer satisfaction (both client and claimant), conformity to state and federal laws. A performance index is issued for each firm and their respective insurance costs are compared with both a state and federal cost per coverage. The state has created its own actuarial data base to evaluate insurance coverage. The motorist can freely view these to determine the best coverage for his situation. The consumer is given power that the insurance vendor can appreciate and respect.
This fact may give some satisfaction to the average motorist but some of us still want to know how good or bad credit make a motorist a good risk or a bad one. Perhaps it is an honesty issue! If I have good credit then I will always obey the rules of the road and none of life's bad things will touch me. Does good credit mean that you can avoid being hit by a drunken driver, avoid having your car pushed off the highway into the nearby lake or have hail storms miss you? I can understand where the honesty of making constant insurance payments would be reflected in your credit but how does it establish insurance rates?
Reviewing the Report to the 79th State of Texas Legislature, 2004 I discovered that insurance was not denied because of a bad credit score but that it could be a higher premium because of poor credit. Statistics showed that people in the 30 year age group has the worst credit and the greatest vehicle damages reported. My conclusion would not be that bad credit makes you careless. Rather my summation is that youth and proneness to erratic behavior was the cause. The point here is that there is no direct causal relationship but at the strongest an inferential connection." by Joseph Kenny, Market-Day.net
Sunday, August 27, 2006
Auto Insurance Coverage Explained
What is auto insurance for, anyway? It is to protect you against financial loss if you have a car accident. It is a contract between you and the insurance company, where you agree to pay them premium, and in exchange, they agree to compensate for your losses as defined in your auto insurance policy.
Before buying auto insurance, read carefully the policy to make sure the coverage meets your needs. The standard auto insurance policy includes the following coverage:
1. Bodily Injury and Property Damage Liability (Liability Limit)
This coverage is required by law. Liability insurance provides coverage for you (and family members listed on the policy) if someone else is injured or killed in a car accident where you are found “at-fault”, and are legally responsible for the injuries. It also provides coverage if their property is damaged. You and family members listed on the policy are also covered when driving someone else’s car with their permission.
It is very important to make sure you have enough liability coverage in your auto insurance. If you are involved in a serious car accident, you may be sued for a large amount of money, paying of which could cost you all of your assets such as your home and savings. Therefore, consider purchasing more than the minimum required by law (varies in different states and provinces). If you are uninsured, you will also be charged with driving without insurance, and may be fined. You may also have your driver's license suspended until you have made satisfactory arrangements to repay the amount owing. This could become a critical problem if you are using your car to drive to work.
2. Accident Benefits (Personal Injury Protection)
Accident Benefits coverage pays for the treatment of injuries to the driver and passengers of the auto insurance policyholder's car (medical, rehabilitation and attendant care expenses). It also provides for your (driver’s) family if you are injured or killed in a car accident (funeral expenses, payments to survivors of a person who is killed, etc.). Accident Benefits provide income replacement for persons who have lost income as well as payments to non-earners who are not able to carry on a normal life.
3. Collision
Collision coverage protects your vehicle if it is damaged in an accident, even if you are at fault. There is a deductible amount for this coverage in the range of a few hundred dollars – a fixed amount you pay regardless of the claim amount. The higher your deductible, the lower your premium. Some insurance companies offer auto insurance with zero deductible. If you're not at fault, your auto insurance company may try to recover the amount they paid you from the at-fault driver’s auto insurance company. If they are successful, you will also be reimbursed for the deductible.
This coverage is optional because the cost of insuring some older vehicles for collision could be higher than the value of the vehicle itself.
4. Comprehensive
Comprehensive coverage protects your car against loss due to theft or damage caused by something other than a collision with another car or object, such as fire, explosion, earthquake, windstorm, flood, falling objects, vandalism, riot, or contact with animals such as deer or birds. It will also compensate you if your windshield is cracked or shattered.
There is usually a $100-$500 deductible amount indicated in your auto insurance policy for this coverage. This amount either is paid by you toward the cost of repairs or is deducted from a claims settlement. You may want to go for a higher deductible to lower your premium.
5. Uninsured/Underinsured Motorist coverage
This auto insurance option provides coverage for you, a member of your family, or a designated driver if hit by an uninsured or underinsured driver. This coverage will also protect you if you are hit as a pedestrian.
Some auto insurance companies sell uninsured motorist coverage that will only protect you in the case of at-fault, uninsured driver who is identified at the scene of the accident, and not in the case of a hit-and-run driver. In my opinion, this type of uninsured motorist coverage is not worth it, as an uninsured driver is most likely to be a hit-and-run driver as well (shows equal disrespect of the law).
Before buying auto insurance, read carefully the policy to make sure the coverage meets your needs. The standard auto insurance policy includes the following coverage:
1. Bodily Injury and Property Damage Liability (Liability Limit)
This coverage is required by law. Liability insurance provides coverage for you (and family members listed on the policy) if someone else is injured or killed in a car accident where you are found “at-fault”, and are legally responsible for the injuries. It also provides coverage if their property is damaged. You and family members listed on the policy are also covered when driving someone else’s car with their permission.
It is very important to make sure you have enough liability coverage in your auto insurance. If you are involved in a serious car accident, you may be sued for a large amount of money, paying of which could cost you all of your assets such as your home and savings. Therefore, consider purchasing more than the minimum required by law (varies in different states and provinces). If you are uninsured, you will also be charged with driving without insurance, and may be fined. You may also have your driver's license suspended until you have made satisfactory arrangements to repay the amount owing. This could become a critical problem if you are using your car to drive to work.
2. Accident Benefits (Personal Injury Protection)
Accident Benefits coverage pays for the treatment of injuries to the driver and passengers of the auto insurance policyholder's car (medical, rehabilitation and attendant care expenses). It also provides for your (driver’s) family if you are injured or killed in a car accident (funeral expenses, payments to survivors of a person who is killed, etc.). Accident Benefits provide income replacement for persons who have lost income as well as payments to non-earners who are not able to carry on a normal life.
3. Collision
Collision coverage protects your vehicle if it is damaged in an accident, even if you are at fault. There is a deductible amount for this coverage in the range of a few hundred dollars – a fixed amount you pay regardless of the claim amount. The higher your deductible, the lower your premium. Some insurance companies offer auto insurance with zero deductible. If you're not at fault, your auto insurance company may try to recover the amount they paid you from the at-fault driver’s auto insurance company. If they are successful, you will also be reimbursed for the deductible.
This coverage is optional because the cost of insuring some older vehicles for collision could be higher than the value of the vehicle itself.
4. Comprehensive
Comprehensive coverage protects your car against loss due to theft or damage caused by something other than a collision with another car or object, such as fire, explosion, earthquake, windstorm, flood, falling objects, vandalism, riot, or contact with animals such as deer or birds. It will also compensate you if your windshield is cracked or shattered.
There is usually a $100-$500 deductible amount indicated in your auto insurance policy for this coverage. This amount either is paid by you toward the cost of repairs or is deducted from a claims settlement. You may want to go for a higher deductible to lower your premium.
5. Uninsured/Underinsured Motorist coverage
This auto insurance option provides coverage for you, a member of your family, or a designated driver if hit by an uninsured or underinsured driver. This coverage will also protect you if you are hit as a pedestrian.
Some auto insurance companies sell uninsured motorist coverage that will only protect you in the case of at-fault, uninsured driver who is identified at the scene of the accident, and not in the case of a hit-and-run driver. In my opinion, this type of uninsured motorist coverage is not worth it, as an uninsured driver is most likely to be a hit-and-run driver as well (shows equal disrespect of the law).
Thursday, August 24, 2006
Another insurer cuts California car insurance rates
"SACRAMENTO, August 23, 2006 11:50am
• Chubb says it’s slashing rates by 34 percent
• Also proposes higher liability limits
One of California’s major auto insurance firms is refiguring how it calculates premiums, following court rulings upholding Proposition 103, the auto insurance initiative approved by voters in the last century.
The Chubb Group of Insurance Companies says it is lowering its automobile insurance rates in California by an average of 34 percent.
Chubb also says it will offer new coverage options that it says address the unmet insurance needs of many Californians, “including high limits of liability protection in a state where the number of uninsured and underinsured motorists is among the highest in the nation.”
"Effective today, virtually every Chubb personal auto insurance policyholder in California will realize a rate reduction and will be offered a broader array of coverage options," says Kurt Morgan, California manager for Chubb Personal Insurance, in a written statement. "The assets and lifestyles of thousands of affluent Californians are at risk because they may be underinsured or underserved by their current auto insurer."
The rate reductions will vary based on factors such as driving record, as required by Prop 103, passed in 1988, as well as driver characteristics.
Some drivers will see a reduction of nearly 50 percent, says Chubb.
The company also says it has doubled to 10 percent its good-driver credit. It has introduced a companion credit ranging from 10 percent to 20 percent off the auto insurance premium for customers who also have a Chubb homeowners policy." Source: Central Valley Business Times
• Chubb says it’s slashing rates by 34 percent
• Also proposes higher liability limits
One of California’s major auto insurance firms is refiguring how it calculates premiums, following court rulings upholding Proposition 103, the auto insurance initiative approved by voters in the last century.
The Chubb Group of Insurance Companies says it is lowering its automobile insurance rates in California by an average of 34 percent.
Chubb also says it will offer new coverage options that it says address the unmet insurance needs of many Californians, “including high limits of liability protection in a state where the number of uninsured and underinsured motorists is among the highest in the nation.”
"Effective today, virtually every Chubb personal auto insurance policyholder in California will realize a rate reduction and will be offered a broader array of coverage options," says Kurt Morgan, California manager for Chubb Personal Insurance, in a written statement. "The assets and lifestyles of thousands of affluent Californians are at risk because they may be underinsured or underserved by their current auto insurer."
The rate reductions will vary based on factors such as driving record, as required by Prop 103, passed in 1988, as well as driver characteristics.
Some drivers will see a reduction of nearly 50 percent, says Chubb.
The company also says it has doubled to 10 percent its good-driver credit. It has introduced a companion credit ranging from 10 percent to 20 percent off the auto insurance premium for customers who also have a Chubb homeowners policy." Source: Central Valley Business Times
Car Insurance Rates Drop in New Jersey
"Trenton, NJ (AHN) - For the first times in decades auto insurance companies are competing for business and prices for coverage are declining in New Jersey. Car insurance ads can be found on billboards offering special deals as well as on radio and TV.
This comes as a drastic change for the state where car insurance "has been a long-running nightmare." It now places New Jersey in tune with auto insurance practices elsewhere in the country.
New Jersey has had a history of heavy regulation when it comes to car insurance. As a result, many insurance companies avoided doing business in the state. However, that began to change as authorities, concerned that existing insurers would leave, decided to allow for flexibility in terms of pricing and driver ratings.
John Tiene, a vice president at the New Jersey Skylands Insurance Company told the New York Times, "Lots of rate changes and new rating plans are starting to hit the market... They might have been approved in '04 and '05. But they're just happening now."
Insurance regulators say that more than 75 percent of drivers in New Jersey are paying less for car insurance and more cuts are projected in the future." by Jacob Cherian, All Headline News
This comes as a drastic change for the state where car insurance "has been a long-running nightmare." It now places New Jersey in tune with auto insurance practices elsewhere in the country.
New Jersey has had a history of heavy regulation when it comes to car insurance. As a result, many insurance companies avoided doing business in the state. However, that began to change as authorities, concerned that existing insurers would leave, decided to allow for flexibility in terms of pricing and driver ratings.
John Tiene, a vice president at the New Jersey Skylands Insurance Company told the New York Times, "Lots of rate changes and new rating plans are starting to hit the market... They might have been approved in '04 and '05. But they're just happening now."
Insurance regulators say that more than 75 percent of drivers in New Jersey are paying less for car insurance and more cuts are projected in the future." by Jacob Cherian, All Headline News
Tuesday, July 04, 2006
Higher Car Insurance Rates for Latinos
"According to a new study if you live in a Latino or African American neighborhood expect to pay more for car insurance. No matter how you put it minorities always have it bad, whether it’s getting pulled over by the police for 'driving while being brown' or in this case having to pay more to drive.
After dissecting the price among the state's three largest insurers in more than 500 ZIP codes, Consumers Union found car insurance in black neighborhoods costs 37.5 percent to 83.5 percent more than in communities dominated by non-Hispanic whites. That means the biggest auto insurers would charge a good driver an additional $537 to $974 per year for moving from a mostly white to black neighborhood, according to Consumers Union, the nonprofit group that publishes Consumer Reports magazine.
Good drivers living in Hispanic neighborhoods aren't hit quite as hard. Consumers Union concluded the pricing increase in California's Hispanic communities ranged from $103 to $214 annually, or 7.9 percent to 18.4 percent." Source: Higher Car Insurance Rates for Latinos » VivirLatino
After dissecting the price among the state's three largest insurers in more than 500 ZIP codes, Consumers Union found car insurance in black neighborhoods costs 37.5 percent to 83.5 percent more than in communities dominated by non-Hispanic whites. That means the biggest auto insurers would charge a good driver an additional $537 to $974 per year for moving from a mostly white to black neighborhood, according to Consumers Union, the nonprofit group that publishes Consumer Reports magazine.
Good drivers living in Hispanic neighborhoods aren't hit quite as hard. Consumers Union concluded the pricing increase in California's Hispanic communities ranged from $103 to $214 annually, or 7.9 percent to 18.4 percent." Source: Higher Car Insurance Rates for Latinos » VivirLatino
Worst Cheap Car Insurance EVER!
"Cheap Car Insurance – What You Don’t Know Can Destroy You & Your Family!
“How can a low price on car insurance be bad?”
“Car insurance is car insurance, right? – If I am comparing $80/month at Insurer 1 and $70/month at Insurer 2 – why would I ever want to pay the higher amount?”
“Why should I understand those pesky numbers?”
All valid questions – although, if you have ever found yourself asking them (or a version of them) you should be downright scared, and concerned that you do not understand how your car insurance works.
One of the most dangerous positions in this life to find yourself in is one where find out too late that you “didn’t know something that you thought you knew” or you “didn’t know something that the law or ‘status quo’ thinks you should know”.
Let’s imagine …
You are driving along, as you do every day, heading to work and being the extremely conscientious driver you know yourself to be. You are NOT putting your make-up on; You are NOT talking on your cell phone; You are NOT fiddling with the radio; You are, in fact, paying close attention to the road and your surroundings.
While speaking to the police on the side of the road, you describe the incident:
Somebody pulled out into the right lane from a parking lot going about 30MPH, forcing the car already there to cross into my lane in front of me, for some reason, immediately after entering my lane they slammed on their brakes and I smashed into them!
Now, I am no police officer..." by Mark Lyne, more at American Chronicle: Worst Cheap Car Insurance EVER!
“How can a low price on car insurance be bad?”
“Car insurance is car insurance, right? – If I am comparing $80/month at Insurer 1 and $70/month at Insurer 2 – why would I ever want to pay the higher amount?”
“Why should I understand those pesky numbers?”
All valid questions – although, if you have ever found yourself asking them (or a version of them) you should be downright scared, and concerned that you do not understand how your car insurance works.
One of the most dangerous positions in this life to find yourself in is one where find out too late that you “didn’t know something that you thought you knew” or you “didn’t know something that the law or ‘status quo’ thinks you should know”.
Let’s imagine …
You are driving along, as you do every day, heading to work and being the extremely conscientious driver you know yourself to be. You are NOT putting your make-up on; You are NOT talking on your cell phone; You are NOT fiddling with the radio; You are, in fact, paying close attention to the road and your surroundings.
While speaking to the police on the side of the road, you describe the incident:
Somebody pulled out into the right lane from a parking lot going about 30MPH, forcing the car already there to cross into my lane in front of me, for some reason, immediately after entering my lane they slammed on their brakes and I smashed into them!
Now, I am no police officer..." by Mark Lyne, more at American Chronicle: Worst Cheap Car Insurance EVER!
Thursday, June 15, 2006
Car Insurance Rate Factors
Your car insurance rate is determined by a number of different factors including your age, whether you are single or married, the location where you live, your car make/model and your driving record. These are the ones that you are most likely aware of. However, there is another important factor that can have significant impact on your car insurance rate - your claim history, which is available from a database that can be accessed by any car insurance company. In some countries even your credit history can be taken into account when preparing car insurance estimates.
Compare Car Insurance Rates
When providing quotes, a car insurance company will compare your claims history against their insurance loss history. One company will have loss history that is different from the loss history of another insurance company for the same driver profile, vehicle and coverage. This will sometimes result in significant differences in car insurance rates from company to company, and this is why it is so important always to compare rates obtained from at least five different companies.
Online quotes make it easy to shop around for car insurance. Savings on your car insurance can be very significant and in the range of hundreds of dollars. Check which company is offering you the best deal based on your driver profile, your car make/model and given coverage. You could also obtain car insurance quotes by calling your local car insurance companies. Make a list of at least 5 companies, and a list of coverage types that you need, i.e. liability, theft, collision, etc. Create a spreadsheet with 5 columns, with each company in the heading of each column, and with rows equal to the number of coverage options plus rows for the contact information and the quotes. You can then start calling each company and hope for the best (hoping that you would be talking to a “knowledgeable agent” and not put on a “priority sequence” hold…). Apparently, it is much easier and smarter to obtain fast and accurate car insurance quotes online, and save hours of time, not to mention hundreds of dollars saved annually from car insurance.
Thursday, June 08, 2006
About Car Insurance Tips
Welcome to my Car Insurance Tips blog. Here you will find lots of valuable tips on how to lower your car insurance rate, where to get car insurance estimates and the cheapest insurance.
I have learned so much over the years about car insurance, and I am very excited about this opportunity (thanks to the folks at Blogger and Google, who help make all this free) to share my experience with so many people and help them save hundreds, if not thousands, of dollars from car insurance annually.
Getting the the cheapest auto insurance is also about what you do on the road every day, how you deal with traffic tickets, impaired driving charges and insurance companies. So, bookmark this page, and visit often. Also, don't forget to set up a reminder in your Google, Yahoo, or MSN calendar to visit this page when your car insurance is up for renewal. You will be glad you did!
I have learned so much over the years about car insurance, and I am very excited about this opportunity (thanks to the folks at Blogger and Google, who help make all this free) to share my experience with so many people and help them save hundreds, if not thousands, of dollars from car insurance annually.
Getting the the cheapest auto insurance is also about what you do on the road every day, how you deal with traffic tickets, impaired driving charges and insurance companies. So, bookmark this page, and visit often. Also, don't forget to set up a reminder in your Google, Yahoo, or MSN calendar to visit this page when your car insurance is up for renewal. You will be glad you did!
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