It has always been a good idea to drive safely and avoid accidents in Texas, but now vehicle owners have a little extra incentive. In April 2012, the state commissioner of insurance issued an order saying that rates for the state’s high-risk insurance pool will rise by 24.1 percent overall.

Effective on July 1, the price of bodily injury liability issued through the state-run pool will increase by 31.9 percent, and property damage liability will increase by 20 percent. Once these changes take place, the average base rate for a policy through the program that provides only bare-bones liability coverages will be $578 (but they can range from just under $300 to nearly $2,500).

?What Is the High-Risk Pool?

Strict financial responsibility requirements in the Lone Star State require motorists to carry auto insurance to legally operate a motor vehicle, but having a blemished driving record can make it difficult to find a willing insurer. If residents can’t buy protection from a company on the voluntary market, they may be forced to enroll in the Texas Automobile Insurance Plan Association (TAIPA) to avoid driving while uninsured. Unfortunately for many residents, TAIPA is about to get more expensive.

To use TAIPA, residents must have been denied coverage by at least two companies on the voluntary market. Usually, people are only denied insurance because they are considered high-risk drivers, which is a title that usually comes from having a poor driving record. When someone files multiple claims or has a history of moving violations, insurers usually determine that the driver in question is at a greater risk of being involved in an accident or filing a claim in the future, and they will either charge more or deny coverage entirely.

The Helpful Advantages of TAIPA

Before current enrollees decide that they’re not going to pay an extra 24.1 percent for vehicle coverage and will simply drive without insurance, they should strongly consider the consequences. Financial responsibility laws are in place to protect resident motorists, and if drivers are involved in an accident while uninsured, they may still be responsible for other people’s damages. In a serious accident, this could lead to thousands of dollars’ worth of repairs and medical costs having to be covered by the uninsured driver.

In addition, driving without adequate protection can result in fines ranging from $175 to $1,000, a driver’s license suspension, and the impounding of the uninsured vehicle. Because of these consequences and the dangers of driving while uninsured, residents are urged to take advantage of statewide programs before breaking the law.

Residents who are affected by increasing TAIPA premiums are encouraged to take action to avoid costly coverage. Being assigned a policy through the assigned-risk plan is not a life sentence. Only drivers who are unable to find an insurer on the voluntary market need to enroll, and driving records can improve over time. Most offenses that appear on a person’s record only remain visible for three years. This means that making the effort to become a model driver could allow motorists to eventually shop for cheap auto insurance in Texas and get a reasonable rate.

Source: http://www.onlineautoinsurance.com/texas/

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For many motorists, pets are an essential part of the family, and they’re also frequent passengers in the car. But, unfortunately, most cars are not designed with animal safety in mind. In an accident, dogs and cats can suffer injuries just like people, and veterinarian bills can be very expensive. When looking for an insurance policy, people with four-legged companions might want to consider choosing an insurer that can offer a little extra pet-friendly protection.

?Insurers Offering Coverage for Pets

Vehicle coverage that includes pet injuries has become a feature of policies offered by several insurers.

Progressive, the insurer that’s known for helping people get insurance online, has led the way in providing protection for cats and dogs that are injured in automobile accidents. When policyholders purchase collision coverage, it comes with up to $1,000 of protection that Progressive will pay toward vet bills in the event that an animal companion is injured in an accident, according to the company. This also includes injuries to a dog or cat that is owned by a relative who is living in the same household as the policyholder. The coverage is not yet available in North Carolina or New Hampshire, however.

Farmers Insurance Group in 2008 began offering coverage for pets injured in auto accidents, but only in select states. The protection is limited to traditional family pets and does not include animals that are commonly kept for food or profit. Where available, it provides up to $600 worth of coverage and is included for no extra charge in policies that include both comprehensive and collision, according to a press release from the insurer.

The Chubb Group launched pet injury coverage in select states in February 2011, adding up to $2,000 in coverage for pets injured in crashes to its “Masterpiece Auto Preference” policy.

Even though the prevalence of pet injury coverage is growing, not every insurer offers it. The country’s second-largest insurer, Allstate, says on its website that pets are not covered under its auto policies. (Other large insurers like State Farm and GEICO did not have pet injury coverage info available on their sites.)

Dogs and Cats Mean Distracted Drivers

The reason why animal owners are encouraged to get insurance that includes pet injury coverage is that four-legged family members can be serious distractions while driving. The National Highway Traffic Safety Administration estimates that in 2008 over 5,800 people lost their lives and another 515,000 people were injured as the result of automobile accidents involving distracted drivers. Driving with an unrestrained dog in the car could have dangerous and financially devastating consequences.

To reduce the chances of having to actually use any newly acquired pet injury insurance, drivers should take the necessary steps to reduce driver distraction while behind the wheel. An unrestrained cat or dog can easily wander around a car with potentially dangerous consequences. If a dog wedges itself under the driver’s legs, it could prevent braking and easily cause an accident.

To avoid this, owners are strongly encouraged to restrain their animals while driving by investing in specially designed harnesses that allow dogs to be quickly attached to the vehicle’s seat belts. Additionally, investing in wire cages or plastic crates can also be effective ways to prevent animals from wandering around the car. Because pets are a part of the family, it’s important to keep them safe while on the open road.

Source: http://www.onlineautoinsurance.com/

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Moving from a small urban area to a large city in California can present a world of opportunities, but with those opportunities come the potential of higher auto insurance rates. In most heavily populated areas, the streets are congested with more motorists, automobile accidents are more common, and the level of car-related crime is considerably higher than in suburban locations. All of these details and statistics are used by insurers to rate vehicle owners, and the common characteristics of big cities frequently translate into higher coverage costs.

In the Golden State, there are unique auto insurance nondiscrimination laws that prohibit insurers from raising rates in small geographic locations while setting more reasonable rates in the surrounding area. However, location can still have a considerable impact on how much a resident pays for vehicle coverage. Companies are permitted to consider past loss experience and expenses in their rating process, which includes geographic areas that are at least 20 square miles. In areas that see greater economic loss as a result of greater population density or accident frequency, providers are permitted to charge more for car insurance.

?Red Bluff vs. Los Angeles: A Case Study

For example of how moving to a big city could affect rates, look at information pooled from the CA automobile premium survey. Regulator-provided premium data show that for a single male motorist with 9 to 15 years of driving experience, an annual mileage between 7,600 and 10,000, and no violations or accidents, the average price for standard coverage for a Honda Accord is roughly $1,400 for someone living in Red Bluff, which is located in rural Tehama County in Northern California. If the same driver were to live in the Wilshire/La Brea area of urban Los Angeles in Southern California, however, the average premium increases to over $2,400—a 71 percent jump.

The difference between Red Bluff and the Wilshire/La Brea is significant. Information provided by state and federal records ranks Red Bluff 332nd highest population in the state with just over 14,000 people as of January 2012. According to the latest census data, it has about 1,800 people per square mile. The Wilshire/La Brea area, however, is in the county with the highest population in CA (nearly 4 million people) and rests near Wilshire Blvd, part of the famous Miracle Mile and one of the busiest streets in Southern California. Los Angeles’s population density was about 4.5 times as high as Redbluff’s, at nearly 8,100 people per square mile.

Location Matters, but Driving Record Still Matters Most

Although companies in California are allowed to make rate adjustments based on geographic location, all coverage providers must have their rating plans filed and approved by the CA Department of Insurance before they can be used. Additionally, voters in 1988 adopted proposition 103, which requires all insurers to consider three mandatory primary factors before considering any secondary factors when calculating premiums. These three factors include the applicant’s driving record, annual mileage, and years of driving experience.

Where a motorist lives is actually at the bottom of the list of qualities that can affect how much someone pays for vehicle coverage, but a person’s driving record is very important. Getting the cheapest insurance in California means maintaining a clean driving record, so before moving to a heavily populated area, residents should take into consideration the increased accident potential. If a policyholder is forced to file a claim, it can negatively affect their premium for up to three years.

Source: http://www.onlineautoinsurance.com/california/

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As automobile technology makes leaps and bounds forward, the number of car accidents and fatalities steadily declines. And with fewer claims being filed, the need for and price of auto insurance begins to decline as well. Over time, insurers may begin to experience a considerable decrease in revenue, which impacts the industry as a whole. This is the scenario proposed by Donald Light, a senior analyst for Celent, a division of Oliver Wyman, a global consulting firm.

Light and thorough Celent research suggests that the steady decline of private and commercial auto insurance premiums (and consequently, industrywide revenue) begins with the introduction and implementation of four distinct technologies: telematics, collision avoidance, automated traffic enforcement, and robot cars. Three of these technologies have already made their way into the market and have begun improving driver safety nationwide.

Telematics is the creation and use of data regarding driver behavior that is stored in onboard devices and made available to coverage providers and other entities. This can include GPS devices, but the primary purpose of this technology has been to retrieve useful information after an accident to determine fault, and to track a motorist’s driving habits for pay-as-you-drive insurance policies. Automated traffic law enforcement, like red light cameras and speeding violation cameras, also helps to encourage safer driving. In conjunction with collision avoidance systems, cars in general are becoming significantly safer.

The final piece of technology in this scenario has only recently been introduced to the world. In 2012, autonomous automobiles—most famously, the Google Driverless Car—have begun making their way into the realm of possibility. Already Nevada is the first state to approve a license for a driverless motor vehicle. Celent suggests that if these technological trends continue at their current rate, accidents may be a thing of the past. With perfectly clean driving records, motorists in the future could easily get cheap car insurance online with minimal effort.

The Possible Decline of Car Insurance Premiums

As these four technologies become commonplace on our nation’s roads, Celent estimates that there will be a sharp decline in accidents and, consequently, insurance premiums for certain kinds of coverages. Liability and physical damage premiums are estimated to drop between 20 and 30 percent from 2013 to 2017, respectively, and between 60 and 80 percent from 2018 to 2022. For many companies, these premiums represent a major source of revenue.

For the auto insurance industry, declining revenue may mean less external investments, industrywide job loss, and the potential decline of political influence (which itself can lead to adverse legislation or regulation). Before motorists begin to panic, however, it’s important to take several things into consideration.

The scenario put forth by Donald Light and Celent is largely hypothetical. While many of these consequences are possible, the actual implementation and enforcement of the four primary technologies is dependent on many different variables.

To have a dramatic impact, state and federal government would have to pursue these technologies aggressively and find a way to financially enforce their implementation. If there is one thing that motorists across the nation can be sure of, it’s that politicians love to argue about money. Additionally, these changes (if they occur) are likely to take time, giving the insurance industry more than enough opportunity to make the necessary adjustments to avoid fiscal disaster.

Source: http://www.onlineautoinsurance.com/cheap/

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But whether you plan to take your car from Manchester to Aberdeen or London to Paris (via Calais and Dover, of course), it is crucial to make sure your vehicle is in good condition and suitable for an extended driving trips Before you embark on your holiday. This can cause a variety of tasks, from getting your car serviced to check the limits of your car.

Essential things before you do on a driving holiday

To ensure that you are well prepared for your driving holiday, write a checklist so you do not forget something essential. To begin, it is important to make sure that your car is fine – it may sound obvious, but there’s nothing worse than getting stuck on a quiet country lane in the middle of the night, in an area you do not know ‘re with, and no help in sight. By getting your car serviced at a garage a few weeks before you leave, you will be able to determine if something is probably wrong and have enough time to fix it.

Next, make sure your insurance is up to date and does not plan, while still on vacation. If you are traveling within the United Kingdom, your car is likely to be valid wherever you are. On the other hand, if you’re planning a driving holiday in Europe, it is important to call your insurer before leaving make sure you will be covered.

The popularity of the ferry routes, such as Dover to Calais in France to Harwich Hook of Holland to Rotterdam to Dublin and Holy head mean driving holidays in Europe are increasingly popular among British holidaymakers. Yet research released in May 2009 found that 38 percent of drivers do not know if their insurance covers them while driving abroad, and 18 percent mistakenly believe that their vehicle is covered by their travel insurance while abroad. The details vary among insurers, but most are only a few days off to cover for driving in Europe – so make sure you know what options you have previously left.

Ensure that the European driving cover is included in your auto insurance.

People strive for gender equality in most facets of life, but in the auto insurance world, it’s a commonly known fact that men usually end up paying more. Data provided by California regulators, for example, shows men could expect to pay an average of about 13 percent more for the same coverage. Gender-based pricing differences are based on extensive statistical information that shows male drivers file more claims than female drivers. Although crash data usually comes out in a woman’s favor, gender can’t always be used to set rates.

Debates have raged for years between men and women over which sex has the best drivers. But as far as insurance companies are concerned, it’s all about numbers. Information in the National Highway Traffic Safety Administration’s 2008 National Motor Vehicle Causation Survey shows that almost 54 percent of drivers involved in automobile accidents between July 2005 and December 2007 were male.

Most insurance companies take this information very seriously when rating drivers because it influences the probability that they may have to pay out on a claim. Because insurers lose money when claims are paid, people who are at a higher accident risk are generally charged more for vehicle coverage.

Men Can Find Cheaper Rates by Shopping

The amount that a motorist is charged for car coverage is dependent on the individual company. Based on an analysis of rates given in the Auto Insurance and Shopper’s Guide provided by Kansas regulators, it’s apparent that gender-based price differences can vary significantly. Of the 28 companies that are listed, the premiums for a 21-year-old were on average 24 percent—or $204—higher when the driver is male. But at its largest, the pricing gap was 44 percent; at its lowest, it was 8 percent.

Despite the accident statistics surrounding the different genders, some insurers do not rely on this information when rating drivers and others are legally barred from using this data. A handful of states—including Massachusetts, Montana, North Carolina, Michigan, and Pennsylvania—ban the practice.

Vehicle owners’ best chance of finding affordable coverage that is priced in their favor is to shop around. Although men may encounter higher rates, generating online car insurance quotes from several sources can provide pricing options, and the possibility of finding an insurer that rates men more favorably.

Source: http://www.onlineautoinsurance.com/

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Coverage providers take a wide range of personal details into account when rating drivers, and as a result, the price of automobile insurance is different for almost every vehicle owner. To get a quote from a coverage provider, drivers will have to relay a bit of personal data so that the insurer can interpret their likelihood of filing a claim and adjust rates accordingly.

Personal characteristics, like a motorist’s age, gender, and marital status are essential for rating because these details are pretty closely correlated to accident statistics. When considering gender, for example, annual accident statistics show that men are involved in significantly more automobile accidents than women. In 2010, there were over 1,000 male car crash fatalities in Florida, but only about 300 female fatalities. Additionally, claims data show that married drivers tend to be in fewer collisions than other motorists.

Motorists searching for auto insurance quotes online are also required to list their location because where a person lives can play a significant role in how much they pay for coverage. It’s obvious that rates and requirements are different in every state, but premiums can also differ between cities. A vehicle owner living in a densely populated city, such as Los Angeles, will typically pay more for car insurance than someone living in the suburbs. The reason for this is more cars and increased traffic translates into a greater chance of being involved in an accident.

Additional Details Required by Car Insurance Companies

Insurers also typically need to know details about a motorist’s driving record, daily commute, and financial history to produce an accurate estimate. This info is often considered to be some of the most important, and can lead to significantly cheaper or more expensive coverage. For example, vehicle owners with a history of claims and moving violations on their record are likely to be charged more for protection than someone with a good record.

Insurers will also take a person’s vehicle type into account when evaluating risk. If a motorist insures an expensive sports car, he or she will likely pay more for coverage because insurers need to compensate for the possibility of greater financial loss if they need to pay out a claim. Cars that frequently appear on the top of frequently stolen vehicle lists will also net steeper policy prices. Information from the NHTSA shows that some cars are more popular among thieves than others. In 2008, the top stolen vehicles included the Dodge Magnum, Hyundai Sonata, and several Chrysler models.

By knowing the many different things that can influence coverage costs, motorists can make adjustments to get cheaper insurance. For example, if someone is in the market for a new car, they should determine how much various models may cost to insure. Additionally, people can find cheaper quotes if they manage to maintain a clean driving record.

Source: http://www.onlineautoinsurance.com/

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People often look for ways to lower their auto insurance costs, which are a necessary expense for many. Despite what some drivers may think, buying the minimum amount of protection that is required or driving without any coverage at all are not the best ways to cut costs. Being uninsured or underinsured could lead to heavy financial loss after an accident. Instead, vehicle owners should try some of these helpful and effective ways to save money.

1. Compare Quotes Online: Not all auto insurance companies offer the same rates. Just like with almost any other product, there are some producers that claim to have the cheapest prices, some that offer the best service, and others that claim to do both. The only way to truly to get the cheapest insurance available is to shop around and compare estimates from as many sources as possible. When people use the Internet to do their shopping they can easily maximize their time. Useful online sites can produce dozens of sample rates at once.

2. Ask About Discounts: In the competitive world of vehicle coverage, insurance companies are always looking for ways to outshine their competitors. One common method is to promote unique discounts. It’s common to find reduced rates for being a good driver, good student, insuring multiple vehicles, keeping low annual mileage, packaging home and auto policies, and for insuring a car that is equipped with an antitheft device. Make sure to ask an insurer if they have any discounts that their competitors won’t offer.

3. Avoid Unnecessary Coverage: It’s good to be adequately insured, but buying too much protection can lead to unnecessary expenses. For example, many people are required to carry comprehensive and collision coverage when they buy a new car. Over time, however, this protection becomes less necessary as the car drops in value. For example, a motorist with a $1,000 deductible on a vehicle worth only $2,000 might not benefit very much from this coverage because the amount received from their insurer if the car is totaled might not be worth the increased premium.

4. Choose the Right Payment Plan: Many people choose to use a payment plan when they purchase auto insurance. Insurers will usually allow policyholders to make payments monthly, quarterly, every six months, or to just pay for their policy in full. Although making monthly installments means smaller bills, companies will often include billing and processing fees. Data from Massachusetts regulators show installment fees there can range from $1 to $8, depending on the insurer and whether the payment is processed electronically. While that may not seem like much, over time a vehicle owner could end up paying a lot more money for their plan this way. To cut costs, drivers are urged to consider making fewer installments.

5. Keep a Good Driving Record: One of the most important ways to avoid expensive vehicle coverage is to maintain a clean driving record. Being involved in an accident, filing a claim, or being convicted of a moving violation can quickly lead to surcharges and higher premiums.

Source: http://www.onlineautoinsurance.com/cheap/

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