Why Does Car Insurance Have To Cost So Much?

Nobody wants to think about car accidents, aside from trying to drive well and avoid them. However, sometimes things happen and you can’t avoid them, so having a car that will stand up well in a car accident will both protect you and get you a good car insurance rate for your collision premium. With more information coming to light about what makes a car safe, even the car insurance companies are trying to get changes in the law so that car manufacturers have to construct their cars in a safe way.

Changes in laws have played a big part over the years in making damages less serious and the incident of car accidents fewer. The passage of laws that require seat belt and air bags, lower the speed limits and outlaw drunk driving, have been pushed by the insurance companies, among others, and they are not doing the same with other measures.

And accidents are certainly good motivators to these insurance companies. According to the government’s information, the costs that car accidents had were about three hundred dollars for every single person in the United States, or almost two hundred and thirty one billion dollars. That’s billions of dollars in California alone, the most populous state in the entire country, right before Texas. It is also one of the states with the highest amount of uninsured drivers, so although the study didn’t specify, it probably has the highest amount of costs as well.

The National Highway Traffic Association already performs crash tests on cars, but they are trying to get more tests to be done and more available to consumers so that we can make the right decision when trying to buy a safe car. This government associations wants us to know how the cars we want actually drive and react in a crash. They also want the companies that make the cars to wise up and start making better ones and safer ones.

At the moment, having a safer car will save you money on your insurance, and will probably continue to do so, just like you are still able to get discounts for having air bags, which are mandatory. However, requiring more safety means that car prices will go up because cars will be more expensive to make.

Low Cost California Auto Insurance For Women Drivers

Across the big pond, in the United Kingdom, many companies have begun catering only to women. This takes what those who are in the  auto insurance business already know one step further. However, as it turns out, this supposedly positive singling out might not be as great as most women over here think it is.

In  California auto insurance as will as in British auto insurance, women have been found to get into fewer accidents and, therefore, file fewer claims. As a result, they are considered to be of lower risk. In auto insurance, the gap between the car insurance rates for males and females is at its greatest when the policy holders in question are younger than twenty five, but it continues with a smaller gap throughout the older ages.

In the UK, any companies have become women’s car insurance companies, claiming to offer better rates to women.

However, according to a British website that covers issues with auto insurance over there, looking at the quotes for women from these women only car insurance companies, the quotes from the women only companies tended to be seventy nine pounds, or around a hundred and sixty one dollars, more than the same women would be quoted with a regular car insurance provider.

It seems that having women get even more  auto insurance is not all it’s cracked up to be, at least not the way their doing it in the UK. It also looks like women having more auto insurance than men may be a thing of the past. Statistics in recent years show the gap closing in terms of auto accidents, with men getting in fewer and women getting in more. Be careful what you wish for.

Do Car Insurance Companies Give Discounts For Defensive Driving Class?

As most car insurance policy holders are aware of, the drivers around here are crazy. Aggressive and swerving little devils, it takes effort to not ram into them, on accident or on purpose (road rage). What many people who have been in accidents realize is that being able to compensate for the stupid driving habits of your fellows on the road can prevent a lot of pain, and not the least a insurance claim.

The way to find out how to avoid these crazy people is to sign up for a defensive driving course. Not only will you learn in one of these courses how to protect yourself on the road, but you will also avoid filing a car insurance claim, as well as being eligible for a insurance discount. Most  car insurance companies do give discounts, both for defensive driving courses as well as regular introductory driver’s education courses.

Why take one?

• The National Insurance Safety Council says that almost eighty percent of car insurance accidents happen because the driver messed up in some way. If you learn how to drive defensively and responsibly, you can avoid being part of this statistic.
• If you have a speeding ticket, then you can go to defensive driving class and get it taken off of your driving record. That’s two drops in your Norwalk CA car insurance rates right there.
• The discounts on your Norwalk CA car insurance rates can be pretty high, ranging from five to ten percent. Normally, though, in order to get a discount, you have to take the class voluntarily.

Where do you take one?

• Classes for defensive driving are all over the place, but your Norwalk CA car insurance company will not recognize all of them. To find out which defensive driving school will get you a discount, ask your Norwalk CA car insurance agent or company representative.
• Make sure that the school you go to is authorized by the National Safety Council. You can check their website to make sure that your course is included.

Taking a defensive driving class can even be fun, and if you get your whole family involved, you should see how fast your Norwalk CA car insurance rates will dwindle.

Online California Auto Insurance For My Lemon Car?

If you want to get a good online California auto insurance quote for a lemon, then you have to keep track of what is going on with the lemon, because for the time that you have the car it will be considered a higher risk because its delicate state will make it more susceptible to damage in the case of a car accident. If you want to make sure you are not overcharged in your  auto insurance quote for your lemon car, then you have to be able to prove why you should have a cheaper rate.

Here’s what you should keep track of:

• All of the information that you have from when you first bought the car. This includes that big envelope containing your contract and everything you signed which was given to you by the dealership. You should also have on hand anything about the warranty for your car, as well as whatever ads you saw, if possible, that alerted you to the sell of the vehicle.
• All of your registration stuff. You’ll need to be able to show with your online  auto insurance quote in which state the car was registered when it was bought by you, and where it is registered now (California).
• Any documentation you have about repairs. Your online insurance quote about this will get the information from your CLUE report, but in order to get the best deal, you have to make sure that all of the repairs were done by the dealer or manufacturer with OEM parts. You should also make sure that any statements or bills that the repair shop releases should have your version of the damages, because a lot of times the car lots will sidestep lemon laws by playing with words.
• California auto insurance law requires you to tell the dealer that your car is a lemon, so you need to send a letter. Make sure you have a copy of this, as well as the response, and any other correspondence between you and the manufacturer. Also make sure that all letters are traceable, so that you can have proof that they arrived or not.

Which Vehicle Makes Are More Expensive To Insure?

Your car insurance premium should be on your mind before, during, and after you have bought your vehicle from the car lot. Before hand, you need to check quotes, during you need to make sure you choose the right car, and after you need to get your coverage from the best  car insurance company.

When you are buying a car, you will need to get comprehensive and collision car insurance coverage, and the latter of those two coverage options is more expensive the more likely your car is to be vandalized or stolen. Every insurance company bases its premiums on its own claims records, and you will only be able to get an idea of what each company will charge you by getting instant online car insurance quotes. However, if you look at this list of most stolen cars on a nationwide basis, then you’ll also have an idea of what kind of car you should avoid. Some of them are unexpected.

• Toyota Camry
• Honda Accord
• Honda Civic
• Chevrolet Full Size C/K Pickup
• Ford F-150
• Jeep Cherokee
• Oldsmobile Cutlass
• Dodge Caravan
• Ford Taurus
• Toyota Corolla
• Chrysler Neon
• Nissan Sentra
• Chevrolet Caprice
• Ford Explorer
• Chevrolet Cavalier
• Chevrolet Blazer
• Plymouth Voyager
• Pontiac Grand Am
• Ford Escort
• Acura Integra
• Dodge Ram
• Nissan Maxima
• Ford Mustang
• Buick LeSabre

Surprisingly, my ugly old Oldsmobile is on that list, which goes to show that car thieves will steal anything. However, even if you aren’t going shopping and already own one of these oft stolen cars, you can still get a good car insurance quote by adding some extra protection to your car. The National Insurance Crime Bureau says that the best way to go in terms of protecting your car and getting a good comprehensive car insurance quote is to put your anti theft measures on in layers, instead of just equipping one anti theft device.

• First layer: Don’t be dumb.

Some people think that it’s okay to leave the car on and the key in the ignition if they’re just running into the store for a minute and will be able to see the car the entire time, but this is not much protection. I read a story recently about a woman that did this, and someone stole the car, which had her one year old in it, and only brought it back because he didn’t want to be charged for kidnapping. First of all, no, don’t use your kids as anti theft devices. But also don’t leave your keys in the car. By the time you notice someone is in your car and run out into the parking lot, the car will be gone.

You also should make sure that, if possible, you park in well lit areas where there are a lot of people. It’s better to go to the store to do your shopping when it’s busy rather than in the middle of the night.

• Layer two: The deterrent.

Now, even if you are practicing common sense, there is still a chance that your car will get stolen. While deterrents usually won’t get you a good insurance rate, they are still a necessary component in your layered protection.

• Layer three: Disenablers.

If they have no fear of the deterrents and manage to get into the vehicle itself, this type of anti theft device will make sure they are unable to hotwire your vehicle, or at least have a very difficult time of it. This type of device will get you a  car insurance discount with most companies.

If you want to get the best discount with this type of anti theft device, then you need to get an active one. An active anti theft device is always active, whereas a passive one has to be activated by you every time that you leave the car.

• Layer four: Finding it.

If the thief is especially persistent and experienced, and somehow manages to bypass all of the other protections on your vehicle, then you will need a way to get your car back. Most stolen cars are not recovered, and police have to act very fast to get to the car before it is taken to the chop shop or across the border.

A tracking device can help you make sure that your car is recovered. It sends a signal to police so that they can find the find the car.

What Should You Look For In a Car Insurance Company?

Most people in the U.S. are pretty busy with their lives, between family, friends, work, and sometimes school, that they don’t have the time to shop around for a new car insurance policy every six months. For these people, it is not any less necessary for them to get the best insurance premium, so if they must, they can restrict their shopping around to when they have a life changing event instead of doing it by the calendar.

• If you move.

In most of the country, zip codes can have a big effect on your auto insurance premium, but with car insurance the effect is not as huge thanks to a California auto insurance law passed to make the location a small factor in the auto insurance premium. The reason it is a factor at all is mostly due to the amount of cars stolen in the area, and the law was passed because the policy had a negative affect mostly on low income and minority drivers.

However, even though your zip code does not say as much for your insurance score as before, it does affect it. When you move to a new zip code, you need to shop around for a better car insurance premium. In any case, you should at least see a change in the premium from your current company.

• If you buy a car.

Before you buy a car, you should check the insurance quotes to make sure it is the best choice in make and model. However, if you’re already certain of what car you want to get, you should still shop around to see what the quotes are from other companies in the area.

Car insurance companies base their rates for collision and comprehensive car insurance coverage on the number of claims they have gotten for those coverages in company, so one company might have seen more claims for your car than another. It’s best to go with the company that has had the best history with your new vehicle, and you can find out which one this is by getting several insurance quotes.

• If you get hitched.

They say that when you get married, two people become one, so naturally they will have a different  insurance rate together than they would apart. Men profit the most out of this, seeing their rates decrease a good deal when they tie the knot, but so long as neither partner is very high risk, both will benefit from the union.

• If you get a new job.

Not only do many insurance companies give you discounts on your car insurance for the degree that you hold, but you can also get one based on what you do. For example, if you are a teacher or an engineer or a military service member, then you can get a discount on your insurance premium.

• If you stop working altogether.

When you retire, you are usually just between being in the cheapest car insurance demographic, and one of the most expensive. Being between fifty five and seventy, you are in a group of the safest drivers and will thus get the lowest rates. However, after seventy, your rates will go up. Many car insurance companies offer discounts to retired people, but you can get the best deal by buying your insurance policy through AARP. Whatever the case, it is best to shop around.

• If you’re just fed up.

You may have a liked a  car insurance company for awhile, and then just got sick of paying the high rates and finding few available discounts. While there is a limited number of excuses not to shop around, there’s certainly no limit to reasons to do so.

Cheap Southern California Auto Insurance Rates

Reader question:

Is it possible to buy my Southern California auto insurance over the internet?

Ingrid

Thank you for asking, Ingrid.

One of the great introductions from the southern California auto insurance community to new technology has been the wide availability of southern California auto insurance policies on the internet. Most of the bigger southern California auto insurance companies have launched websites, where they allow their prospective customers to not only get quotes, but buy policies as well; and the service doesn’t end once you have your policy either. Many companies also offer account management for policy holders, so that you never have to pick up a phone or step into a southern California auto insurance office again.

Most companies which allow southern California auto insurance policies to be bought online can be divided into three types.

• Everything online.

Some of the more high tech southern California auto insurance companies offer everything online, including the final confirmation signature, which they accept electronically. This can be either from a simple typing of initals, or an actual signing function where you write out your name with your mouse.

• Halfway there.

Others will allow you to choose your coverage and policy and confirm everything, up until the point when you need to sign. While you are covered once you have completed the process, these southern California auto insurance companies will send you a form to your mailing address which you must sign and then return to them.

• Just a little bit.

The last type, which is more common among smaller southern California auto insurance companies, is where the companies will display the coverage information on their website, where the future policy holder can choose it and enter their information. Then, they will receive further information along with forms and request for payment in the mail, and they will not be covered until the payment is received. It’s actually cheaper to just go to the office with this one.

Cheers,

Fashun Guadarrama

Getting a Cheaper Rate on California Car Insurance is Easy

Progressive auto insurance company says that  car insurance buyers would be able to save around five hundred dollars on their six month car insurance premium if only they shopped around for their prices. However, many don’t, which is why the majority of Americans and those who own insurance policies are paying too much for their car insurance.

Progressive said it got its information from a study of over seventy thousand customers over a six month period. The study relates the lowest  car insurance rate possible versus the highest, and notes the gap (five hundred dollars in the case of car insurance). Depending on what state you are in, the degree of separation in dollars between the highest and the lowest car insurance premium can be more than many preferred car insurance pays in a year. In Houston, where I’m from, the variation is as much as $838 of variation for a six month policy.

Putting aside car insurance, some other areas in California had huge variances between auto insurance rates as well. Notable, San Francisco:

• $514 of variance

And Los Angeles:

• $616 of variance

Progressive went a little with its study and tried to see how aware California car insurance policy holders were of this rate variance. According to their findings, 65% didn’t realize that the variations between rates was so huge–most estimated it to be around one or two hundred dollars on average. And 60% of the people asked had not made an effort to shop around for a good insurance policy in several years.

Even if the company that you are with now had the best rates several years ago, that doesn’t mean that the same will be true today. New companies rise up and offer cheaper prices, and older companies find new ways to pass the savings on to their customers. The best thing to do to ensure that you get a cheap California car insurance quote is to shop around at least every six months.

Cheap California Car Insurance – Are Lawsuits To Blame For High Costs?

One of the big obstacles between you and cheap California car insurance are the number of lawsuits being filed against California car insurance companies every year that force these companies to raise their prices. While it is at times necessary to file a lawsuit in order to get the money that you need for your car insurance claim, the number of claims filed is high enough to elicit some concern from car accident lawyers, even though they are the ones who profit the most from it.

According to attorney Nick Johnson, who has offices all over the country, collisions that involve someone getting injured or killed have dropped in the past year, which should mean that the number of lawsuits should drop as well, because more California car insurance companies are sued when someone is injured. However, while the injuries have decreased, they haven’t made a dent in the number of lawsuits being filed against cheap California car insurance companies.

As a matter of fact, he says, the number of lawsuits is actually going up, despite all reason.

One of the reasons for this, according to Johnson, is that over ten percent of drivers currently on the road do not even have a car insurance policy. While the exact numbers cannot be gotten, due to the nature of driving without insurance, the numbers are high enough in theory to convince anyone who was considering not equipping them self with uninsured motorist California car insurance coverage.

Along with that, the amount of car insurance required to meet minimum liability standards has stayed the same for many years, even though the cost of health care and car repair has risen quite significantly. Having underinsured motorist coverage couldn’t hurt, either, apparently.

California Auto Insurance Claim Denied Because of Teen Driver?

Reader question:

I heard that you can get a claim denied if your teenager is on your  California auto insurance policy. Is that true?

Phillip

Thank you for your question, Phillip.

I’m not sure where you heard that, Phillip, but it’s definitely not true that your California auto insurance company will deny your claim just because you have a teenager on your policy. Heck, you’ll probably get your claim denied if you decide not to add your teenager to your  insurance policy, because if you don’t provide such important information, then your  auto insurance company is unable to adjust your car insurance premium to fit the amount of risk you pose to the company.

One thing that I think you might be thinking about is the recent report done on parents whose claims were denied because they had claimed themselves to be the main drivers on vehicles of which their high risk teenagers were actually the main drivers. I think this might be the result of a bit of miscommunication.

Many people who deal out auto insurance advice, myself included, have urged parents to make sure that car insurance companies don’t automatically add the teenagers to the most expensive and costly to insure vehicle on their policy. This is definitely something that you should worry about, since car insurance companies tend to, if not told otherwise, put the highest risk driver with the highest risk car, even if the driver in question never touches the car.

However, making sure that your teenager’s name isn’t added to a car that they don’t drive isn’t the same as deliberately putting your teenager’s name on a car that they don’t drive. This is called fronting, and is considered fraud, so I advise every parent thinking about doing this on their California auto insurance policy to think again. The truth is that most parents who do this don’t even know they’re committing fraud, at least according to sixty percent of the parents in the report.

Make sure that you give accurate information and that your  insurance company follows it when rating your policy, but giving inaccurate information yourself could land you in trouble.

Cheers,

Fashun Guadarram.

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