Monthly Archives: May 2013

How Vehicle History Reports Help Policyholders?

Vehicle history reports are great in reducing insurance issues especially when purchasing a second hand auto. Finding out how a certain vehicle’s condition is important. There are various sources where this information can be found. They will tell you a lot about an automobile you are interested like number of accidents, major works done, certain damages (like flood) and number of owners. Some of the sources include auto insurance companies, automotive repair shops, law enforcement agencies and states vehicle departments.

Reports

This will help you determine the cost of that specific vehicle and find out whether it is worth the amount that the seller is asking. The search doesn’t take long especially if you know where to find the right information. You do not have to tell the seller that you are doing all the checks since some would be hiding something so as to have their car out of their compound.

When finding out about a vehicle on sale you may need to see several reports to get the full picture. For instance the seller may have not told you of any mechanical problem that a vehicle have but when you approach a source like state vehicle department they can alert you of this. Another thing is when trying to find out whether the vehicle belongs to the person or a company that is selling it. Remember there are thousands of car thefts which are reported per year and it could be that the car you are interested was stolen.

To avoid having such issues it is wise to do some research before making that step of buying. It is good to know the condition of the vehicle too so as to be aware of what is to come and how to handle it not forgetting that the value of the vehicle will determine the price tag.

As you know most of the sellers are not individual people but organizations. When looking for vehicle reports there are those who will sell it for you while others provide it for free. This is to increase credibility with their client while some try to make money out of it. The reports are sold at 40 to 60 dollars by different sellers. Some come with the whole report which is referred as title information. This comes with all details that you may need to know.

If in case you do not find it there are other source where you can check the missing package especially if you feel it is more important. In most reports you will find details like the vehicle title holder with inclusion of the number of reported claims, when it was serviced, damages have occurred to it among others.

Insurance

You can still purchase a car despite the condition or any problem it may have. One thing that the buyer should be aware is that sometimes safety may become a major challenge. A report that comes with major safety issues will alert you to be careful. Remember some of these vehicles are sold due to some problems such as damages caused by flood, road accident among others. One may decide to buy salvage parts or have them fixed. When you approach your insurer one thing that you can be sure of is that they will come and check whether the vehicle is in line with state law and safety.

Details To Consider When Taking Business Car Insurance

Apart from having a personal car, you may have a business vehicle which is used to transport people and goods to different destinations. This is different from a personal car since it will be going to various places and carrying valuable thing. This type of automobile is not insured like a personal one though the insurance cover doesn’t have a lot of differences.

Drivers

There is a high chance you will need a driver for this car if you are not a one man business. When going to look for a driver, there are several things you should consider so as avoiding negative effects that may increase premium and cause less profit to your business. The first one is the driving license. You should not risk hiring or employing a driver without an approval of a valid license. Driving history is yet another important detail that you should not leave behind.

This is the point that you don’t have to favor someone because of their status since it may not favor your business. If the driver has been in driving school and has a commercial driving license it would be preferred. Such drivers would keep your insurance costs down. When the driver has points in his license you will face problems. It would be near impossible to insure one with DUI conviction or similar past problems.

Vehicles

Just like your own auto insurance cover would go about the car model, this is also applied to the commercial ones. If the vehicle is expensive the premium will be high. Another thing is the age of the vehicle. When purchasing a new auto for a business you should check with your carrier which models are cheaper to insure.

Insurers

There are three types of insurers that you may consider going to. One is the bigger organizations who are popularly known, the medium ones and third are the upcoming insurers. When insuring a commercial car, it is important to go to the big fish. This is because they are known and you can easily get their reviews concerning the services they offer.

Going to the insurer you know may be a good choice as well. For example, your personal auto insurer can be a good one to try. Most car insurance companies in the United States of America is well regulated. So, you should ask your broker or check online when you come across a company that you do not know. Because you do not know them does not mean they are no good. They may be the specialized subsidiary of a giant insurer. Or it may be a highly established smaller company.

Sources

There are different sources of information in regard to insurance. One is through online means such as review websites and forums. Visiting these sources will be effective because you will get to know a lot of things which can help you get discounts. You can as well go on and do some thorough research on a company from background to where they are at the moment. This will help you get the best insurer for your commercial cars. Agents can help but they will have to sell policies for their companies. You have to remember that is what they do.

Is Zip Code A Factor In Automobile Insurance?

Have you ever asked yourself why zip code is always the first requirement when you are looking for auto insurance quotes? Many people think differently and they will give you lots of answers. One thing is sure that it will definitely affect your premium positively or negatively when your insurer will be doing some premium calculations for you.

There are two main reasons for this; one is because it will not make sense if you enter your search and be given quotes from another state. Zip code identifies where you are located in and in this case your state. You will have to know that there are hundreds of insurance companies the USA today and if you won’t identify yourself you will not be given right quotes.

Another reason is to know where you reside since they will want to know more about your area and how security is there. This is because they want to include it in your coverage; if it is a secure place you will get discounts which will lower your premium.

Also they will want to know is the distance from where you are staying to your place of work. For instance if your home is a short distance away you can walk or use the public means which will lower the premium. If you want to drive yourself to work and it is not far then the number of mileage is less and this will help you. This is one of the benefits. Please note that the longer the driving mileage the higher the premiums are likely.

Zip code will tell your insurer where you stay. If it is a populated area you will be affected since such a place is likely to have many accidents. Another thing is that if the area is known in crime and theft your insurer will raise the premium so as to get enough to compensate if the car happen to be stolen or damaged.

There is an option which may help you save. This is by buying a car that has security devices or installing these devices in your car. In insurance industry, there is one thing which doesn’t change at any chance. No matter where you stay and you have a clear driving license you will receive discounts. If you stay in a place where crime rate is zero you will not be charged much to start with.

One thing that you should notice is that you may be staying in the same area with your friend with a difference of one mile but you end up paying more than him. That is why it is important to consider this factor when you are planning to purchase or rent a house.

Apart from that it is also advisable to check on the distance between your home place, where your children go to school and where you work. This is to help in reducing the number of mileage per day. A better option is to live in a place where there is a train. This is because you can be going for shopping and be dropped next to where you stay and you can still use it to travel more than a car. This will also lower the cost of maintenance and fuels since it will not be used often thereby lowering your premium.

Avoiding Traffic Violation Convictions

Motorists can get traffic tickets for all sorts of reasons including not being able to show insurance certificate, speeding and not wearing seat belts. If it is just a fine and you are not ask to stand in front of a judge the effects of them on your car insurance rates may be minimal. A moving violation conviction and driving licence point deduction is something you cannot hide.

Auto insurers find out about traffic violations by looking at the driver licence details. If a ticket is thrown out in the court or the driver is not convicted it is likely that the premiums will not be affected. If it does not show on your records they cannot find out about it. In some states certain moving violation tickets may require automatic point deduction which would go on your driving records. So, you may need to object to the ticket and that will probably require you to defend yourself in front of a judge.

What are the chances?

A ticket may not be the end of the world even though it is annoying. If you can stop it being a conviction you might get away with keeping your low premiums. According to statistics about one third of tickets written in California never turn in to conviction. This figure is even lower in New York City at twenty seven percent.

According to attorneys you can fight any type of tickets. The easiest ones to overturn are the ones issued for lack of papers. They can be overturned by showing the correct insurance papers, a valid licence or vehicle documentations.

You can fight more serious tickets like speeding as well. Attorneys suggest that there may be possibilities for negotiating a lower fine or getting pardoned.

Possible Effects of Tickets on Car Insurance Rates

Points on driving licences can affect rates. The rate increase for the first moving violation can be as much as 10%. A second one will be taken more seriously. The carrier may withdraw all the good driver discounts offered. Some companies will increase the renewal premium to a high level to force you out when you have several tickets.

The penalties and point deductions can stay on your driver record and keep affecting the rates charged. You would pay a lot extra premium in this time. That is why it is worth fighting the tickets.

How to Prepare for Court Hearings

According to attorneys most people can defend themselves in the traffic courts. Since there is no prison sentence at the end you cannot ask for a public defender anyway. However, you should look for an attorney under these circumstances;

–          if you have received several tickets at once

–          if you have received a speeding ticket for going much faster than the limits set

–          if you have already got traffic convictions in your name.

In other words, if you are likely to come near the limit of losing your licence you should get an attorney to argue the case for you. They would know the system and the operators in it to respond well or negotiate a deal for you.

How Mood Drugs Can Depress Car Insurance Rates

Taking drugs that affect your mood will affect driving abilities as well. Those drugs are antidepressants, sleeping pills and anxiety drugs which are prescribed medicines in the United States of America. Drivers have to read and ask about the side effects of the drugs they are taking. Even some strong cold medicines can cause sleepiness on some people.

According to a report from IMS Health, a health care technology company, the number of antidepressant prescriptions in America has increased two hundred and seventy percent in the last ten years. So, many American drivers are on these medicines and some may not be paying attention to the side effects.

These drugs are used to treat anxiety, depression and insomnia. Taking them will reduce symptoms of mental illness such as loneliness, anxiety and mood swings. However a study published in the British Journal of Clinical Pharmacology points out that these mood-altering drugs also increase a driver’s risk of ending up in car accidents.

Vehicle crashes especially when the policyholder is at fault are one of the main reasons for car insurance rate increases. Depending on drivers’ fault and size of accidents your premiums can go up 10 – 50% at the next renewal following the claim.

Those drugs are normally sold with prescription. The reason for that is their effect on the mental capacity of a person. They can change the levels of chemicals in the brain in order to restore the normal balance. In the process these chemical changes can affect brain functionality and attention span.

Common side effect reported from users of these drugs is drowsiness. According to doctors this drug-induced drowsiness causes driving impairments. They can also make drivers extremely tired, dizzy and slow down their reactions. Loosing body coordination, slowing response time and blurred vision is common side effects seen on drivers.

Effects of medicines on individuals can differ largely. Depending on your age you may be affected more than others. Ladies are known to be affected more than males.  Elderly people can fall under the influence very quickly and take longer to get rid of the affects from body because of slow operating metabolism.

According to the British Journal of Clinical Pharmacology studies the chances of users of these drugs involving in accidents are higher. If you are taking these drugs and going behind the wheel you can experience slow reactions. You may miss the red lights and have blurry vision. This will reduce the stopping times and the distance you can see clearly. These are the combinations that cause you crash the automobile.

People should always read the warnings about the side effects of medicines regardless of them being prescription or over the counter drugs. They should ask their doctors about side effects as well. While trying to fix a problem in your body you do not want to cause a serious harm to it and others around you.

Also, they should monitor their reactions to these drugs before they can judge their fitness for driving. A little care and attention can allow you to enjoy the benefits of the drugs without causing any danger.

Save Money by Combining or Moving Policies

Everyone can benefit from saving money on their insurance policies. However, the benefits may be appreciated more in states known to have expensive insurance rates and high living costs. Also, drivers with higher premiums can see the effects of even small percentage of changes quickly because the dollar amount would be larger. If you have already got a low premium because you are a good driver and living in a state with low rates ten percent savings may not even yield hundred dollar discounts.

When you are struggling with high insurance bills and it is about time to do something there are solutions available. Many companies are aware of the problems and come up with good solutions. Anyway, almost every insurance company offers savings when you bring over your other policies to them. These could be home or other vehicle insurance. Just moving them over can be enough to qualify for savings.

However, the bigger savings can be made by combining policies. Most motorists know about multi-car policies. If you have several cars you can bring them under one policy and save money on car insurance. Even though you have one policy for several automobiles you do not have to have the same coverage for all of them. Most of these policies allow you to determine individual levels of protection for every auto within.

So, you could only have a liabilities only coverage for your old car and full policy protection for the new one. Furthermore, you could buy single uninsured driver coverage for both of them. These sorts of innovations are now common place with most of the auto insurance companies. Some can be even more accommodating than the others in working out a cheaper but effective policy combination.

A step further is policies that cover every risk you have. Some companies can cover your every insurance needs with one policy. You can have your main residence as well as the holiday apartment you have. That is not all. You can include all your family cars in there as well. These packages are designed to give the largest discounts with the best coverage.

The idea of bundling your TV, telephone and internet in one package works very well and saves you a lot of money. The same idea is used in other areas and by different providers. This is great for customers as they have less hassle arranging them all and paying separately.

There are several insurers offering various packages. For example Encompass Insurance, part of Allstate, can combine both home and auto insurance. They estimate that policyholders would be able to save 10% on car insurance and 35% on home insurance if they combine two together. The savings and the combination of policies will be different from one company to another.

As the time pass, there will be even more flexible policies to consider. Should you like to find great coverage at low premiums you should shop around a bit. Also, you can talk to brokers and agents and enlist them to help you find the best.

Car Insurance Premiums Are Affected By Credit Score

Traditional factors affecting car insurance rates are changing. New ways of calculating premiums are being developed. Thanks to programing technology auto insurers can include a lot more variables to their quote systems. One of the most influential factors added in the last ten years is insurance credit rating.

It is a requirement of surviving in the modern world that companies must follow changes. They must research what effects new information and statistics have on claims. This will help them know where and when to raise client premiums and better assess new applicants. With this they will be able to get customers who will be watchful thereby they will know what risks await them.

One good way of doing that is by finding out the financial status of the customer through the credit score. This is not allowed in every state although most states have no problem with it. This may help them know which financial ground their client stands in and thereby offer favorable premium to them. This is referred to as insurance credit rating. It works in the same basis as the normal credit scoring but not as detailed as credit check for a mortgage. Generally, insurance companies looking into your credit history is considered a soft credit pull. This means that there are no chances of reduction in total score.

In many cases, insurers will look for applicants who have not bad record of driving. This will definitely avoid claims therefore lowering their expenses. Nevertheless, there are small accidents that may happen on the road and some customers do not raise a claim while on the other hand some who are not in a stable financial problem can take a claim for a slight scratch. Some would say that they have paid for it and may go demanding.

One thing about insurers is that they do not want to lose their customers at one bit. They work on ensuring that these policyholders remain with them. That is why they usually avoid late payment, cancelling a cover and having customers who have not made their payment. This will force them to increase premium to customers who are going through financial difficulties.

Auto insurance companies deal with the same thing but they do not operate the same way.  When it comes to the issue of rating, there are those who pay attention to it while others do not count it important. Though this happens, you should keep on looking for your credit history. At times you may notice changes especially when you are renewing it.

Watching out for mistakes and making sure that you do not miss payments will help your overall credit score. Hopefully, you will not see unexpected surprises when the renewal comes. Failing to manage your finances well may force the insurers to increase your premium based on their new formulas. Another important point is not to miss your premium payments. Once a payment is missed the company may feel the need to look at your credit worthiness. As long as you keep paying the premiums they may not be the wiser even you have financial problems.

Better Car Insurance Rates for Female Drivers

This could be a moment where you could get a ‘so, who’s better now?’ from your wife; or if you are a wife, this is one perfect I-told-you-so moment, for car insurance companies agree – women  are indeed the better drivers.

Risk assessment and auto insurance rates

Insurance premiums are calculated on a thick set of rules that determine individual risk. Basically, when requested by applicants for car insurance quotes, the insurer will base the figures on statistics that show how likely or not likely the driver will collect from them at some point in the future.

There are several factors that are used in the calculation. This include: driving history, safety rating of the car, value of the car, actual time the car is used, where the car is used, and on demographics such as age and gender, marital status, credit history, or the crime rate in a particular community.

Chief of these is the individual’s driving habits – whether he or she will stay safe on the road. As statistics show, SHE will likely stay safe more than he. Hence, this results in cheaper vehicle insurance premiums for her.

Technical skills and driving behavior

Although numerous studies show than men are involved in more accidents than women (statistically and not just by sheer numbers), it does not necessarily mean that they are less skilled on the road. In fact, men tend to be more proficient on the road.

It seems that men’s skill is their own downfall — for this encourages them to engage in more risky road behavior. Therefore men are more prone to violate traffic laws and to be involved in other sorts of road altercations.

Consider the statistics: men are 3x more likely to be convicted on DUI, more than 3x likely to drive recklessly, and they also overspeed much more than women. In effect, men are of course slapped with more expensive car insurance rates.

Social forces at play

Other factors that may distort the statistics against male drivers are concerned with the way our society is structured. This means while men tend to figure in more accidents, it could simply be because there are more male drivers on the road. Also, in many domestic setups, it is usually the men who need to drive farther to work.

There is also the observation that when couples are driving, the women tend to relegate more driving to their male companion. This includes situations like driving in bad weather, in congested urban highways, or in otherwise difficult conditions. Of course, these are the very same road conditions where most accidents occur.

Setting your car insurance premiums low

For both men and women, however, the only controllable way to get the cheapest auto insurance is by improving your safety driving record. This means obeying traffic laws and keeping your slate clean for the longest time possible.

Three Things Not Covered In Vehicle Insurance Policies

As a policyholder in United States of America, you must be aware of some of these things that an insurance company may exclude in case of any accident. The policy explains this very well and as a buyer you have to agree with the terms before buying a cover. This is to avoid confusion that may arise when an accident or incident happens. The insurer will ensure that you know all because they do not want to disappoint you when you find yourself in a situation where you need them and they are not available. Another reason why they may demand that you go through the policy is to avoid having their name destroyed in the insurance industry.

Let’s now look at these three things that the insurance company will not be accountable for. Number one is causing an incident knowingly. In many cases people make a mistake of being careless with a mind of ‘if anything happens to my vehicle the insurance will pay for it.’ This is not the case. The company will insure a vehicle and cover for an accident that was not expected and not intentional. Getting angry with your spouse and taking it out of the family car with a bat is not something insurance companies are willing to pay for.

In this case, the insurer may pay you when someone hits your car or when anything hits your car and breaks a side mirror or something of the same kind and you were not in control of it. Note that this may only happen when your cover has an inclusion of it.

Number two is being involved in an accident while running away from a crime that you have committed. Sometimes you may have owed someone a debt and you don’t want them to catch you, or from a roadblock because you are carrying illegal things. In this case your insurer will reject you and your claim will not be listened to. This will mean that no matter how small or large the damage is you will have to pay with your own money.

Last but not the least is a case here the driver causes an accident because of drunkardness. The driving rules are very clear and no one who doesn’t know them. This is something that a driver does knowing that it is wrong. If you have to drink it is advisable that you get another driver who is sober to take you to your destination. This being one of the car accident causes, the driver has to pay for all the damages he caused to his own vehicle. Third party liabilities may still have to be paid by the insurer.

This may not only force you to pay for the damages but also lose your insurance policy. If your insurer gets the information of the accident they may decide to terminate your cover at renewal. Another cause that you may incur on your shoulder is getting another agreeable car insurance rate.

As a policyholder, you should understand that you are still the owner of that vehicle and the work of the insurance company is not to take care of it but they have you to take care of it. This means that you will know how it is, who drives it, where it is and its condition daily. This will not only ensure that your vehicle is in good state but also cut down your cost of maintenance. Also you will qualify for goo driver discounts.

Remember the insurer has to do this in order to avoid loss. This is to avoid schemes of getting money easily from them by paying you for a vehicle that might be new but has lost its value. Another thing is making the insurer pay you for a cause that you could have prevented.

Insure Multi Cars with Lower Overall Premium

Quite a few motorists keep more than one car. Some people have a few of them. People may think that adding another automobile onto an existing policy will double the premiums. However, this is not what happens in most cases. You may save as much as thirty percent on insurance costs of the second car added.

By adding the second automobile you are letting the company know that you have one more car to drive around. This will spread the risks between two cars and reduce the premium. By the way, you can only drive one of them at a time. Just knowing that you may be driving one or the other will be enough to offer you savings on the overall costs.

Also, you are offering one more business to your current insurer. It counts for something as well. Companies offer discounts even when you bring your home insurance over to them.

Do you have to own all the vehicles in the policy?

Most automobile insurance providers will be happy to add your partner’s and blood relatives’ autos onto the policy as long as they live in the same address. Also, you may be able to add RVs as well with some companies and still get sizeable discounts.

When you are bringing all your family automobiles under one policy you should look into which way would be best overall. First of all, you may need to give up one company and move all to the other one. This will give you more options and opportunity to pick between two good providers you have had experience dealing with. The other point to consider is who is going to be the lead driver on the policy. Sometimes, having the female partner as the lead driver and the male partner as the listed driver can save money.

Another important point to keep in mind is that you do not have to have exactly the same coverage for both vehicles insured. One can have full coverage and you can only have liabilities on an older one in the policy. Cover variation is possible and better to think that way. You still buy what you want for each of them and save money as well.

There may be other ways of saving money on auto insurance as well. Agents and brokers will be able to explain the options available. For example, you could stack your Uninsured driver coverage. When you have two cars you may not need to sets of coverage for the same risk. Instead you can increase the coverage and set it up in a way that it will cover both of your cars. This option may not be available everywhere and with every company.

However, you will be able to lower your rates and still get the level of coverage you need for each automobile. It is always a good idea to explore your options especially when you need to control your budget. Getting several auto insurance quotes and comparing them is another way of economizing a few hundred dollars.

Drunk Driving Can Ruin Reputation and Car Insurance Rates

An arrest while driving drunk will have immediate effect on yo r auto insurance. Companies won’t/cannot drop the policyholderr immediately but they will most likely not renew the policy. There are not many alternatives when you are dropped because of it. You will have to seek a high-risk vehicle insurer and they will not come cheap.

The total cost of DUI arrest can be thousands of dollars with the fines, defence costs, loss of licence, loss of earnings and automobile insurance premiums. If you are employed as a driver you are most likely to lose the job. Companies will not be able to keep you even they want to because their commercial insurance will not cover a drunk driver.

The liabilities claims can increase tenfold when the injured parties’ lawyers know that you were drunk. You will face criminal charges and jail time should you cause fatalities behind the wheel. In most cases the driving licence will be taken away for ninety days. The DUI will remain in your licence for five years and your insurance rates will be horrendous for the first three years at least. You may have to pay as much as four times for the basic liabilities cover which is mandatory across the United States of America.

The insurer will most likely be a non-standard company specialized in high risk drivers. None of the top auto insurers will be interested in even quoting for your business. There will be conditions and premiums will be incredibly high.

According to the National Highway Transportation and Safety Administration around one and half million people get arrested for being drunk while driving every year.  If you get caught behind the wheel with blood-alcohol level of 0.08 you will lose your licence for ninety days. If you refuse the breath test you will lose it for one hundred and eighty days. It is not a joke and you will certainly not be laughing. It is almost certain that you will be dropped by most insurers once you are arrested.

When you get your licence back you will be required to fill in financial responsibility certificates for at least three years. This is to make sure that you buy at least liabilities policies. Also, courts will most likely require you to fit ignition devices that will require you to test yourself before the vehicle can be started. If you have alcohol in your system it will not start.

Several factors will affect what happens after the arrest. These are age, driving and criminal record and your legal defence. You will probably need to spend some money for the court costs and lawyers. You would be very lucky if you can get away with minimum fines and convictions. Getting charged with reckless driving instead of drunk driving can make things considerably better for you.

Total cost of being convicted with DUI can be as much as twenty thousand dollars overall that a good legal defence is warranted. Sometimes people can be unluckily caught and maybe just on the border. Then, you’d better make a good case.

Car Insurance Rates: New Premium Calculation Norms

The telecommunications industry has been notorious for a phenomenon that is now a rallying cause of consumer groups all over the world: bill shock. Recently, it seems the car insurance industry is following suit, with its introduction of various charges and rating schemes unexpected by policyholders.

Setting car insurance rates

Insurance rates and premiums are determined using the concepts of the rarefied field of actuarial science. Actuaries (no, not fortune tellers), as professionals who determine these rates are called, traditionally assessed risk based on statistical and mathematical methods to factor in age, driving record, driving habits, a car model’s safety record, and other variables in order to determine insurance rates.

Lately however, the actuaries are getting creative. Instead of the traditional variables, auto insurance companies now began looking at the individual driver’s financial standing, field of work, and educational level in determining their premiums.

According to industry watchers, several non-driving factors are becoming more and more important. Chief among these is an individual’s credit score, which is now evaluated when applying for vehicle insurance.

Anti-poor?

However, experts warn that these new criteria tend to punish poor people and minority customers. Aside from credit score, firms now also evaluate an applicant’s educational background and occupation. These are areas where minorities and the poor are compromised.

This assertion is borne out by studies. In a research published by UCLA, it was established that automobile insurance rates vary widely, and that they tend to be higher in poor and minority neighborhoods.

It is estimated that almost one-third of premiums in the US now are set using educational and occupational factors along with the more traditional criteria of driving history, age, safety rating of the auto, and similar categories.

Business is business

Morality aside, it must not be forgotten that the auto insurers are running a business – they should be expected to look for ways to get a profit. Like any other business, innovation is key in generating profit margins.

At the side of the insurance industry, it is perfectly legitimate to study their consumer’s economic patterns to determine how much they should charge for their business. And they are claiming that the factors of educational background, work history, and credit score are statistically significant in their line of work.

True, it seems unfair to discriminate based on the education, employment record, and spending patterns of an applicant. But insurance firms are saying that these are indispensable factors in determining whether policyholders will file a claim or not, that is, if they will make a profit or pay out to the customer.

Safety nets

To prevent this system being abused by the insurance establishment, they are required by state insurance regulators to disclose what factors they are using to set insurance rates. Some states also prohibit using credit information for car insurance, such as California, Hawaii, and Massachusetts.

Still, each company has its own specific evaluation method. This cannot be disclosed entirely; this is a closely guarded trade secret much like a famous recipe.

The only alternative left is to research thoroughly for the best auto insurance quotes, balancing coverage against price. If business is running rampant, perhaps only the competition can tame them.

Legal Dangerous Driving Patterns among Motorists

Drivers do not have to be on drugs or drunk to be dangerous on the roads. Again they may not be texting (which is illegal) but they may be occupied with something else that affect their response time. Driving requires constant attention and awake-mind to deal with situations that may arise all of a sudden. Anything short of this is not good enough.

They may go unnoticed and may not be written in accident reports as the cause of accident. Still there are a few bad driving patterns we can mention here. First one is being constantly drowsy behind the wheel. Many people suffer from sleep disorder. However, many people with perfectly good health neglect having a good night sleep. They may be spending hours on the computer or having a busy social life.

This is so bad that in a recent study 4% of Americans admitted to falling in sleep while driving within the last thirty days. If the question was within the last year this number could be much higher. Maybe it is higher since who would want to admit such thing. You will not get a ticket for not sleeping well every night but it will eventually result in an accident when it becomes a usual occurrence. And the car insurance rate increases will be much punishing than getting a ticket.

Another problem can be not to check the side effects of over the counter drugs. For example, a cold medicine can make people drowsy. When it is coupled with the cold related tiredness drivers can lose their concentration. It is always necessary to check what medicines you are taking and their side effect on your driving.

Constantly eating something or looking for something to eat or do in the car is another bad habit. It is like texting. You are occupied with something else rather than watching the road. Some people are always busy with the car audio system, keep changing the music or radio station. There are no laws preventing drivers to do these things. But common sense is as good as law if you have it in preventing accidents.

People with sleeping problems should seek medical help to improve their sleeping patterns. Once you are aware of the problems it is causing it may be easier to find solutions. There is no point in keep telling yourself that you are alright. Another problem may be to drive long hours late into the night. Unless you are used to driving long hours and at night your body will want to go to sleep when the usual time of going to bed comes.

Having a good look at the way you are driving will reveal one or two areas that need attention. It is best to tackle these very quickly. If it is hard to deal with on your own, you should seek advice. There are many advance or safe driving courses motorists can take to improve on the problem areas and gain new good habits. There are a few courses online as well if you cannot spare time during working hours. It can actually be fun to learn with online stimulations.

Ways Parents Can Help Teens To Be Good Drivers

Some teenager can be pretty mature and have a keen interest in safe driving. Those teenagers may only need helpful guidance to naturally progress in the way of becoming a lower risk motorist. However, some of them may not be mature or responsible enough to have a licence or drive even though they reached the age and even got the licence. Being a parent we must worry and do whatever we can to improve their skills or prevent them from doing silly things.

When parents, states and teenagers do their bit in the training of the next generation motorists the outcome would be much better. Many states are now moving towards Graduated Driving Licence Tests. These are great in gradually qualifying a young person to a full licence. Teens can adapt to the situation a lot better than having a full licence all of a sudden.

Having a licence may offer falls credentials as to youngsters suddenly graduating to fully responsible adults. This is not true in most cases. They are still teenagers and by default they will make mistakes. The aim is to make sure that those mistakes behind the wheel are not fatal. The point that parents care about them must be highlighted. Otherwise, teens may take it as bossing around.

Even some states’ licensing legislation require parent to be involved in the driving education. They make it mandatory for parents to spend some time teaching how to drive. Nevertheless, they do not have guidelines as to what parents should do in these times. Maybe, it is best to leave it up to individual parents any way. Being a parent you would probably know your child and where he/she needs support.

Also, most state schools do not have driver education in their curriculum anymore. This places more responsibility on parents’ shoulders. Perhaps parents should open a free communication and discussion about driving. This would allow the child to ask questions and parent to make comments.

Along the same line, they could have an agreement with their teens. This should state what they can and cannot do behind the wheel. For example, they cannot use phone or text or have more than one friend at a time as a passenger. This may be regulated by the state already any way. Should the child fail to observe those rules he may lose his car for a set time and get a reward if he is a good driver. Most teens cannot earn the money to buy and insure an automobile. If the parents are providing the means they are responsible for the way they are used as well.

A next step may be to use apps to monitor the situation. Especially when the child is over attached to the phone these apps can be great. Some apps can send a text to parent when the child is texting while the vehicle is on the move. Some of them can actually disable their phones when they are driving. Parents would know best if a drastic measure is required. They should not hold back in such cases for the sake of children’s safety.

Drivers May Get Penalized Heavily For Texting While Driving

Many people may think nothing of texting or talking on the phone while driving. However, it is a serious problem on the roads that danger other people’s lives as well. Drivers know they shouldn’t and they really mustn’t not only it is against the rules but also it is highly dangerous. Sometimes, even with your both eyes on the road and both hands on the steering wheel you may not be able to avoid an accident. How are you going to see the dangers ahead and react to them timely when your eyes and hands are busy with the cell phone?

According to one New York Auto Accidents Claim Attorney, things are a bit more serious for the people who are texting while driving. First of all, they will be fined and lose points on their licences. Texting is banned for New York drivers and they must use Bluetooth devices while they are on the phone. If they are not going to stop on their own at least fear of being pulled over and losing money will prevent them doing so.

Also, it is hard to challenge a conviction after getting caught texting behind the wheel. Technology is good in many ways and makes our lives easier. At times it may work the opposite way and make it harder to lie about something we are not proud to have done. Think twice next time you use your phone on the roads without proper supporting device.

Another serious problem for them is when they cause an accident. Their recklessness can be proven by their phone records. If they were texting or on the phone when the accident happened the claimants can get hold of the phone records to show that they were not paying attention. Even the other people were the real cause of an accident they can easily shift the blame on to you when they can prove that you were on texting. Everything you do with your phone is recorded. You can shout as much as you like that you were not doing anything wrong.

State legislators are constantly looking into new ways drivers get distracted. Stricter rules are being placed. But they should be enforced as well. It is not easy to keep checking if drivers are texting. If the police was to spend time to detect them they would not find time to deal with other problems. This could be even a bigger problem in the cities. Drivers may use these devices as entertainment when they get bored in traffic.

Of course, nothing is as good as self-regulating yourself and people matter to you. Perhaps you should turn the phone off if it is too tempting to read a text just arrives or reply to it. Also, you should warn your partner or children about texting while driving. They may get annoyed with you for the first or second time but if you keep insisting they may have to stop at the end. Tell them that it is you who has to deal with the mess behind if something happens to them in a traffic crash.

Get Cheap Car Insurance the Green Way

Preserving the earth for future generations is everyone’s duty. Regardless of their opinion on the matter people should do whatever they can to help reduce waste and pollution. This topic is still an abstract concept for many people.

Thankfully, the earth has found a new champion — the auto insurance companies. As unlikely as it may sound, the car insurance industry has joined the environmental bandwagon, offering drivers with cheaper insurance premiums if they do their part in protecting the environment.

As reusing, recycling, and reducing waste saves dollars, there are also environment-friendly ways to get cheaper vehicle insurance premiums. As mentioned, insurers are giving discounts for drivers willing to choose greener ways of driving.

Here are some eco-friendly solutions from car insurers that not only benefit the earth they also offer substantial savings for drivers looking for the best automobile insurance quotes:

Go Paperless: Trees preserve the life-sustaining properties of the atmosphere by absorbing the exhaust gases of animal respiration (i.e. the global warming causing carbon dioxide). The more forests there are to absorb greenhouse gases, the cooler (and more liveable) the earth is.

Drivers through their insurance policies can now help offset global warming by saving the trees, via paperless documentation. This means relying on purely digital means for billing, payment, registration, and communication between the insurer and the driver.

A one-time discount is given in electronic registration, and continuing discounts can be had for opting for paperless billing (i.e. via email, etc.). These companies may also offer rebates and other promos for online payments.

Less Car Mileage Lower Rates: Especially in cosmopolitan areas public transport is usually faster than driving to work and less stressful. Furthermore, the internet allows many people work from home. When you reduce mileage you can ask for better rates. Governments and local authorities do their best to reduce vehicles on the roads to avoid dealing with the environmental issues exhaust gasses causes to the cities.

Insurers now also allow charging premiums based on the actual usage of the car. This means that the driver is billed only as long as he or she uses the car. When the car is not used, the driver is not billed or is discounted.

Included in this scheme are up to 50% discount based on use (mileage and time of use), driving patterns, and on other good practices deemed friendly to the environment. Some insurers also give a large discount if the car is not used for a predetermined length of time (90 consecutive days in the garage, for example).

Use a Hybrid: Using hybrid models that use greener fuels is supported by the government through tax breaks and other incentives. In line with this effort, some of the best car insurance companies in the country also offer substantial savings (up to 10% off) for hybrid car owners.

There above are just some of the options to go green. When enjoying a vehicle ownership, do not forget to factor in your duty to the environment. Save the earth and now get insurance savings while doing it.

Searching For Low Car Insurance Rates

A good auto insurer should be offering competitive car insurance rates as well as great policies. And the top carriers on our panel are well aware of the fact that they need to be sharp with pricing if they want to compare well with the rest. When a company starts overcharging customers they face to lose business regardless of its reputation.

When companies are determining their rates they use large number of factors. Each company can place extra importance on some of those factors and does not pay much attention to one or two of them. If your particulars fit well within the ideal policyholder profile a firm have you get the best rates on offer. It is in a way finding the best matching provider for your circumstances.

For example, larger companies can offer the cheapest auto insurance quotes in the market. However, they can be picky as to whom they offer such rates. If they consider an applicant a high risk they can up the premiums considerably. Again, they can be great when you are not making any claims. But they may not be much sympathetic towards you the minute you have a claim. They can pick and choose who they insure because they are able to create large interest for their products.

Regardless of size, there can be huge differences in the premiums offered by two separate companies. Say a motorist get quotes from top ten vehicle insurers it is almost certain that there would be a few hundred dollars difference between the lowest and highest. This sum would be helping many people with tight budgets. Let’s face it, there cannot be that much of a difference among the top ten companies in the United States of America in terms of customer satisfaction.

You really do not need to be financially struggling to be looking for the best automobile insurance premiums. Everyone likes a good deal and it is all about it. A good deal is buying a similarly satisfying and quality product at much cheaper prices. It is not buying the cheapest without paying much attention to comparative qualities of it. So, it can only be a good thing to get the best coverage you can at lower cost.

So, why don’t you have a look at the latest packages offered by well-known companies in our results page. Once you enter your zip code you will instantly be taken to a page where we display the cheapest and most attractive policies in your area. Once you are happy to proceed with any of them you will be able to get a quote within five minutes directly from the carrier.

As mentioned above, it is possible to keep the same coverage but still cut the costs. Unless you have special ties with the current provider (like you own large number of shares) there is no reason for you to hesitate about shopping around a bit. You are in total control at the end of the day. It is not like walking into a store and getting intimidated by the salesperson into buying something. You can click in and click out whenever you want online.