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Yearly Archives: 2017

Auto Insurance Rates Can Climb

• Fiscal concerns

Do you experience coverage lapses due to non-payment? Is your credit score low? Both of these underscore a risk factor for the insurance company. A tendency to file any form of insurance claim also becomes a gauge for risks that the insurance companies are worried about. All of this leads to higher premium payments.

• Driving behavior

If you have been ticketed for any moving violations, speeding or reckless driving, you are a target for higher premiums. Similarly, those who file claims about serious collisions and drivers who put in above two thousand miles per month are subject to higher than average premiums.

• Additional drivers

The more drivers on your policy – particularly teenage drivers – the more you pay. Nonetheless, an independent agency will be able to find appropriate discounts for teenagers classified as ‘good students’ that you can use until your young drivers reach the age of twenty-five.

• Your place of residence

Like your homeowners coverage, auto insurance is dependent on where you reside. Due to greater risk exposure to high traffic, street conditions, climate, crime-rate and other issues, the cost of your premium may be higher. An agency that has good relations with the leading underwriters can find ways to reduce costs if you are in a risk category.

• Your vehicle Selection

If replacement and repair costs on your car is pricier than average, your premium bill reflect that. Luxury brands such as a Cadillac, Ferrari, Mercedes, Jaguar or Porsche will generate a higher premium. Additionally, if the car your purchase has a bigger likelihood to be stolen, you will feel it when paying your insurance fee. According to recent statistics, vehicles that have a bigger theft risk include the Honda Accord, Honda Civic, Chevrolet Full-size Pickup Truck, Ford Full-Size Pickup Truck, Dodge Caravan, Grand Cherokee Jeep, Toyota Corolla and the Nissan Altima.

Points can Affect Auto Insurance Rates

The point system was established to create a safer environment and penalize high risk drivers who repeatedly break traffic laws. You almost will never lose your license from a single ticket unless it involves serious charges. However if you continue to defy the law of gravity in your vehicle and pretend the highway is a practice track for your imaginary Nascar team you will be left riding a bicycle to work one day.

Insurance points are different than DMV points. Points issued by the DMV go against your driving privileges whereas car insurance companies use a formula that include DMV points as just one part of the overall risk profile. For example when you file a claim or pay late your insurance score may drop in addition to the score change when points are earned from a traffic ticket. Of course, none of these items are good and your automobile insurance rates can change regardless if you have points on your driver’s license or not.

car insurance companies use an insurance score based on typical FICO credit based scoring to help predict loss. All car insurance companies have different and complex formulas for calculating your final premiums and the insurance score is just one of them. It does pay to learn more about how the insurance score works but just like your personal credit score the way it is applied by private companies can be very different from one provider to the next.

Many people have an option to attend driving school when they get a traffic ticket and this can be beneficial for keeping points off your record. However the urban legend of how attending traffic school will also keep car insurance rates low is exactly that… an urban legend.

Must Go For Two Wheeler Insurance

Need of Insurance

It offers financial coverage for any type of damages or loss that occurs because of natural calamities such as fire, flood, etc.

  • Coverage against man-made calamities as well that includes theft or accident by external means etc.
  • The third party legal liability offers coverage against issues arising out of injury/death or property damage to the third party by your vehicle.

Before purchasing two wheeler insurance for your bike, scooty, scooter or any other two wheeler, it is essential to know the basic terminology of the same.


The premium you paid for insurance depends upon several factors such as city where the vehicle got registered, model, age of vehicle, year of manufacture, etc. Premium is decided and regulated by IRDA hence there is not much difference across several companies.


It is the financial protection that the insurer offers to you and your two wheeler against any damage and loss caused due to any natural and/or man made calamity. Coverage depends upon the insurer and the plan chosen. That’s why it is advisable to buy two wheeler insurance online after comparison.


While purchasing the best two wheeler insurance, you must check its exclusions as it will tell you about situations where the insurer will not be able to offer coverage and required assistance.

Some exclusions will be- normal wear and tear, damage due to drunken driving, driving without license, damage caused by war or nuclear explosions, etc.

Some Stages of Car Insurance

The application stage. This is where you fill out an application to get car insurance. You will need the following documents to apply: a social security number, driver license number, knowledge of driving history, and credit information for all applicable drivers.

The approval stage. After submitting your application for insurance, an insurance provider will show you which plans are available, and for how much. Your annual premiums will be determined by a number of factors including,but not limited to, your age, location, gender, driving history, and marital status.

And finally, the maintenance stage. After being approved for insurance, this is the final stage. In this stage your goal is to keep your costs down by driving safely and reducing the risk you present. You should check with your provider for deals, or look around at competitor’s deals every three to six months. It is not hard to switch insurance providers, and it’s worth looking to find a company that keeps you happy.

You are currently in stage one, getting ready to apply. Everyone driving has been there. And if you just take the first step, either by calling a rep or using an online service, you will find that it’s quicker and easier than you expect.

About Pick Up Truck Insurance

Insurance rates are constantly changing and this is especially true for trucks. However, we can get a rough idea of the average cost of insuring a late model truck looking at data across several brands, including Ford and Chevy models. Based on a policy that includes liability and also comprehensive coverage, the average cost of insuring a pick-up truck in the U.S. is going to be about $2,400 annually. This equates to $200 a month, which puts it above the mainline coverage average cost for sedans and other vehicle types. While this is not cheap, comprehensive coverage is often recommended for trucks as they are often exposed more to severe weather conditions and are very expensive to repair.

Although the high cost of insuring trucks can scare off potential buyers, there are some simple steps anyone can take to lower their premiums by quite a bit. The first thing that needs to be done is raising the deductible amount. Some people mistakenly believe that raising this will push their rates higher but the opposite is actually true. When a deductible is increased, the policyholder is assuming more financial responsibility for the cost of an accident after a claim is made. This of course reduces the costs for the insurer and often results in drivers being more careful on the road and less accidents. Getting a $1,000 or higher deductible can lower premiums by 10% or more and make pick-up truck coverage a lot cheaper.

Another way to lower rates is to improve your driving record and credit score. This means paying off any past due tickets and getting your credit repaired as fast as possible. Many people don’t even realize that today’s insurance pricing includes credit rating scores. Insurers look at consumers who make risky financial moves as potentially riskier drivers and thus charge more for coverage. Likewise, those motorists that have more than 2 moving violations will be charged a lot more for vehicle insurance because of the intrinsic risks. Getting these two things cleared up can push your rates on that beloved truck down another 10% or even more.

You must Beware of Driving While Uninsured

Always set money aside for your car insurance premiums. This is one of those payments you can’t afford to miss

Pay your premiums annually or bi-annually. By paying this way, you only have to remember to pay once or twice, as opposed to every month. Additionally, insurance companies usually give discounts to customers who pay yearly.

Have your payments taken automatically. Go with an auto insurance provider who has the option of automated billing.

Penalties for driving without insurance coverage vary from state to state. But no matter where you are, the price can be steep. Here are seven different things that can happen if you are caught driving with no auto insurance.

Your license can be suspended

The vehicle registration could be suspended

The car can be impounded.

If you hurt another person in an accident, you can be sued and are financially responsible.

You will have to pay fees to have your vehicle registration and license reinstated.

You could be required to meet to obtain SR-22 insurance, and it’s expensive!

Your car could be impounded by the police.

Auto Insurance Rate Hikes

The driving risks associated with a cell phone is only surpassed by the dangers of texting on a cell phone. It is for this very reason that parents should make sure to be true role models and never handle a cell phone while operating a car. Making it your business to set down firm guidelines will help your young driver avoid the crash course that unfortunately oftentimes leads to tragic irrevocable aftermaths.

1. Tell your youngster to set his or her phone on silent when driving. If the phone does not ring, hum, or vibrate, your teen will not be pulled to answer it when the sole attention should be directed to the road.

2. Instruct your youngster to let his friends and acquaintances in on his driving schedule. Everyone should be aware that there is to be no phone interruptions while he is in the car.

3. If the situation indeed calls for speaking on the cell phone, boundaries need to be enforced. Cell phone usage should be reserved only when your teen driver pulls off to a safe spot on the side of the road and stops.

Besides all that the driving books teach, effective home schooling on proper driving procedures will help your teen advance skills to the point where driver, other drivers, and passengers, as well as pedestrians are safe on the roads – and you are at peace with him or her behind the wheel.

Reduce Bike Insurance Premium

Choose Your Bike Well

Yes, more exotic bikes or the ones with bigger engines definitely will cost more. Also, the unusual or modified bikes are considered to be more expensive when it comes to the repairs and replacement of their spare parts. So, it would be wiser to go for an entry-level motorcycle with a smaller engine. This would attract lower premiums accordingly.

Maintain A Clean Driving Record as A Rider

The insurance company may look at your record for any tickets or accidents. So, if you have more experience as a rider, the less risky you will seem in the eyes of the insurer. This will help you in fetching the best possible premium. Driving safely will help keep your claims low. Which correspondingly would add the benefit of No-claim Bonus to your premium.

Besides a clean driving record, the insurance company also looks at your riding time and experience. That is, how long have you been riding motorcycles and what experience do you have with a specific motorcycle to be insured. The more experienced you are as a driver, lower would be the risk and the cost of premium accordingly.

Avoid Making Small Claims

If you haven’t made any claim in a defined period of time, you are awarded a No Claim Bonus and discounts by the insurer. So, if you make a claim for small damages, you are bound to lose out on the no-claim discount for that particular year.

So, the next time you notice a dent here or a scratch there or a broken tail light, skip the trip to the insurer. You could just take care of these minor damages from your own pocket at a local mechanic shop instead.

Some Consequences if Not Having Auto Insurance

License suspension

When you meet an accident with more than limited damages your license will get suspended for 30 days to six months based on damages you incur.


When a person is injured in the accident that you are responsible for, the other party will sue you for the damages. In such a case, you have to pay for the injuries or damages that happen to the people as well.

The damages may include property damages, medical bills, pain and sufferings, loss of wages, loss of enjoyment in life, etc.

Sometimes even small damages also cost you more ranging from ten to thousands of dollars. If you lose one of the lawsuits, the court will issue a judgment that may be executed against your bank account, your house, your wages, and sometimes even your personal property in the future.

Purchase auto insurance

Purchasing auto insurance helps in situations just stated. You will also get the benefits/protections like indemnification and defense. These two protections are very essential when you are enough unlucky to be faulted with in the event of an accident.


The insurer will pay for the damages incur in an accident, and you are responsible for the policy limits, if the damages exceed the policy limits, you have to pay from your own pocket.


The defense lawyer will convince the court of law in your favor when you hire them and they will charge the amount on the basis of hours. The hourly rate is normally $150 to $200 per hour for defense attorney.

Car Insurance Jargon

Deductible- The deductible is the amount you pay out of your own pocket before insurance coverage kicks in. For example, before your insurance covers an accident you caused, you have to pay $500 up front.

Policy limit- This is the maximum amount that your insurance provider will pay. You will be financially responsible for any bodily injury or property damage above this limit, so lower or raise the limit to suit your needs.

Liability- Liability insurance is required in every state for drivers. The liability limit differs by state. Liability is insurance that pays for damage done when you are at fault in an accident.

Full coverage- Full coverage is a name for a combination of insurance policies. A “full coverage” plan will consist of liability insurance, comprehensive car insurance, and collision coverage.

Comprehensive-Comprehensive protects you from the financial losses of incidents that wouldn’t typically be your fault. Things like auto break-ins, bad weather, animal-involved accidents etc.

Collision Coverage-Collision insurance is a separate product that reimburses you for your losses even when you are at fault. Collision plans carry a separate deductible. Collision coverage cannot be purchased without comprehensive coverage, but comprehensive can be purchased without collision coverage.