Recent negative economic trends have impacted virtually everyone in one way or another. Many people are looking for ways to decrease spending, but for vehicle owners, auto insurance is a necessary expense that unfortunately may only be increasing. An economy with rising health care costs, ballooning car costs, and a bad job market usually translates into higher coverage costs overall. If an insurer suffers greater-than-expected financial losses because of fluctuating prices in other industries and bad investment performance, these losses may be passed on to policyholders in the form of higher premiums. In addition, consumers’ eroding credit may push their individual costs upward.

When an insured motorist is involved in an accident, an insurance company is usually the one that pays for vehicle repairs. And when the cost of cars goes up, the amount that those insurers have to pay for repairs also increases. Recent information gathered by TrueCar.com places the average transaction price for a new car in April 2012 at $30,303, up 4.2 percent from April 2011. Higher vehicle value and improved technology has made modern cars increasingly expensive to repair, resulting in greater losses for coverage providers when they have to pay out on individual claims. According to the Insurance Information Institute (III), the average cost of property damage, collision, and comprehensive claims went up 17 percent, 10 percent, and 28 percent, respectively, between 2000 and 2010.

Another trend that has impacted the price of vehicle coverage is the rising cost of health care. Automobile accidents often lead to bodily injuries, which are commonly covered by insurers. Unfortunately, the Centers for Medicare & Medicaid Services have found that national health expenditures reached over $2.5 trillion in 2010, nearly twice as high as the $1.3 trillion in expenditures in 2000. Of these expenditures, hospital care accounts for over $800 million. And according to the III, bodily injury claims rose a whopping 43 percent between 2000 and 2010.

The cause of skyrocketing health care costs and the resulting car insurance premium inflations remains a heavily debated subject. Some institutions, including the Kaiser Family Foundation, accredit these price increases to a combination of technology, prescription drug, and administrative costs which have all steadily increased in recent years. If emergency medical procedures and medication costs increase, it means that policy providers may lose revenue, and motorists are charged more to compensate for this economic loss.

Personal Economic Troubles Can Mean More Expensive Coverage

Apart from changes within the insurance industry, lifestyle changes for individual motorists can also lead to higher premiums in an economic slump. When times are tough, many people are forced to turn to credit cards to cover their expenses. When drivers begin to borrow excessively, their credit scores begin to drop. In states where credit scoring is a common rating practice, a poor financial history could easily translate into a higher priced policy.

To counter the rising price of coverage, one of the best actions that a motorist can take is to shop around to find one of the top insurance companies that are willing to provide adequately priced protection. Although there isn’t much that a motorist can do to impact industrywide changes, drivers are still capable of exploring all of their options to find cheaper alternatives.

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

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Driving a more fuel-efficient vehicle can have a number of important benefits. Hybrid and electric-cars help their owners save fossil fuel, reduce their carbon footprint, and commute with the knowledge that they’re helping to preserve the Earth for future generations. Plus, it doesn’t hurt that driving an environmentally friendly auto can lead to significantly lower driving costs, even though they may initially appear more expensive to insure.

It’s no secret that gas prices have been steadily climbing since the invention of the automobile and show no signs of slowing down. Many of the people who purchase alternative-fuel-source vehicles do so to avoid watching their life savings disappear at the gas pump. But when they initially see insurance quotes for these vehicles, they may worry that an equal amount may be siphoned off by coverage costs.

For example, a premium analysis of 20 quotes from 10 different California insurers shows that, when comparing the cost of insuring a gas-only Toyota Camry with a hybrid version of the same model, on average motorists who own hybrids pay just over 10 percent more for vehicle coverage. This price increase is generally accredited to higher repair costs, but before writing off fuel-efficient automobiles as a cost-effective means of transportation, drivers should take discounts into consideration.

Coverage providers across the nation are beginning to offer special savings and rate reductions for insuring hybrids and other alternative-fuel vehicles. In California, for example, as of March 2012, there are at least three companies that offer insurance discounts as incentives for driving greener cars. These price reductions range from 5 to 10 percent, which could effectively nullify the increased coverage costs of having a hybrid or electric vehicle.

Driving Less: Another Way to Go Green and Save

Consumers can be environmentally friendly motorists through more ways than just owning a hybrid or electric car. Spending less time behind the wheel can help reduce a person’s carbon footprint while significantly lowering their driving costs, both at the pump and on their insurance bill.

A large portion of how much a motorist pays for protection is based on annual mileage. To an insurance company, more time spent behind the wheel translates into more opportunity to be involved in an accident, which in turn leads to higher prices.

Like any good environmentally friendly commuter, vehicle owners may want to look for ways to avoid driving. Biking to work, joining a car pool, or giving public transportation a try can all cut down on annual mileage and can lead to cheaper premiums. Motorists are encouraged ask their policy provider car insurance questions about how much they would need to cut their annual mileage to receive a rate reduction.

If a vehicle owner drives infrequently enough, they may want to consider signing up for a pay-as-you-drive insurance program that charges motorists based off of the distance that they commute. The California Environmental Defense Fund estimates that if 30 percent of CA residents took advantage of these programs, roughly 5.5 billion gallons of gas could be saved between 2009 and 2020, in addition to $40 billion in car-related expenses. Taking these steps to become an environmentally friendly motorist could lead not only to guilt-free commuting, but also to considerable savings.

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

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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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Motorists around the world are in the middle of a technological renaissance focused on keeping drivers safe while they cruise the open road. But safer cars with futuristic features means more than fewer accidents and injuries behind the wheel: It can also translate into cheaper car insurance. Producers rate applicants based on their accident risk, so if people are less likely to file a claim because of highly regulated safety features, policy prices might be lower.

State and federal government has made it a priority to ensure that all vehicle owners are as safe as possible while driving. To do this, legislation has been passed that requires all new motor vehicles to be equipped with certain safety features. For example, as of Sept. 1, 2011, all new light cars must be equipped with electronic stability controls (ESC). This feature detects and reduces loss of traction to help prevent drivers from losing control of their vehicles.

Once all light vehicles on the road are equipped with ESC systems, the National Highway Traffic Safety Administration estimates (based on extensive research) that between 156,000 and 238,000 automobile accident-related injuries could be prevented annually. In addition to having ESC systems, many modern cars also contain other advanced safety features, including lane-departure warnings, forward-collision warning, advanced air-bag systems, and many other features that can significantly reduce accident risk.

New Technology Translates into Lower Insurance Rates

A vehicle owner who is surrounded by advanced safety features is better equipped to avoid car accidents than a low-tech driver. This increased level of protection can often lead to significant auto insurance saving. Often producers will give special discounts to people who insure automobiles that are equipped with technology designed to reduce collision probability and accident damage. Cars and drivers that are well protected often translates into fewer or smaller claims that companies are obligated to pay, which are savings that producers are happy to pass on to policyholders. These technologies, however, have to be proved to statistically lower crash risks before warranting a discount.

Coverage costs may also be indirectly affected by modern safety equipment. If vehicle owners are able to avoid accidents and claims, they are also likely to maintain a clean driving record. Because policy prices are largely based on claims history, a driver who avoids accidents and moving violations is more likely to make an auto insurance quote comparison that produces inexpensive results.

Before taking off to buy an expensive new car loaded with exciting equipment, drivers should check with their insurer to see how much a specific vehicle will cost to insure. Buying a new automobile almost always results in higher coverage costs because of their increased value. Luckily, as many new safety features become standard in the marketplace, it will become more and more common to find cheaper (or slightly used) automobiles that are adequately equipped to keep drivers safe on the open road.

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

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Almost every state requires motorists to be insured before driving, but each state has a unique range of prices for vehicle coverage. Insurance costs are dependent on many different things, like population density, crime rate, uninsured motorist percentage, required coverages, and many other facts that are unique for every location. As a result, there are some areas in the U.S. that are more affordable than others.

The average cost of vehicle coverage is likely to change every year, but several states have consistently remained among the cheapest. Data produced by the National Association of Insurance Commissioners and made available by the Insurance Information Institute show that in 2009 the typical expenditure in North Dakota was $510, which was the lowest in the country. Trailing closely behind were South Dakota and Iowa with average expenditures of $521 and $532, respectively. In comparison with a national average of $785, insurers in these states offer considerably cheaper rates.

The areas that boast some of the highest expenditures include Washington, D.C., with an average of $1,128, New Jersey at $1,101, and Louisiana at $1,099.

When comparing these two groups, there is a distinct difference in driver density. For example, North Dakota is home to over 245,000 licensed drivers occupying over 86,000 miles of public roads. In D.C., however, there are over 189,000 licensed drivers using only 1,400 miles of public roads. That means there are only 2.84 drivers per mile of public road in North Dakota, but 13.5 drivers per mile in D.C. Consequently, the accident potential in D.C. is significantly higher than in the Peace Garden State.

Driver, Coverage Options Matter When Looking for a Cheap Policy

While the area where a person lives will have an effect on rates, policy prices are also based on individual drivers. A person who lives in a state with some of the lowest coverage costs may not necessarily be able to locate inexpensive auto insurance more easily than someone living in D.C. if they have a bad driving history, have a long daily commute, are young, or have established a poor credit history; all those factors play important parts in policy pricing.

In addition to the driver’s personal details, the details of state insurance laws also contribute to pricing differences. Comparing expenditures between states is not what’s known as an “apples-to-apples” comparison, since the minimum amount of coverage required by law varies from state to state. In Alaska, for example, drivers are required to carry a total of $125,000 in liability coverage. The total liability coverage required of drivers in Ohio, on the other hand, is $32,500. That can make a big difference in coverage costs, which should drive home the necessity for consumers to consider their coverage levels and compare costs only for the same amounts of protection.

Some states, though, are exceptions that manage to maintain low average costs while having high minimums. Both Iowa and Maine are near the top the list of inexpensive states to find auto insurance, but each of these locations requires motorists to maintain different levels of protection. In Iowa, drivers only need to maintain a total of $55,000 in liability coverage to legally drive. In Maine, however, these limits are the same as Alaska’s, $125,000. Although Iowa boasts a slightly lower average expenditure, the average motorist in Maine may be significantly more prepared for an accident for only a few extra premium dollars.

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

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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.

Auto insurance companies base premiums on a policyholder’s accident risk, and not every motorist can maintain a perfect driving record. But people who have been in multiple accidents or have been convicted of several moving violations still need auto coverage to legally drive in almost every state. Unfortunately, having a higher accident potential also translates into steeper rates. As a result, getting affordable coverage as a nonstandard driver requires a fair amount of research, and possibly the assistance of state programs.

Being Labeled a High Risk Driver

When coverage providers sell an insurance policy to someone, they assume the possibility of having to pay out a claim if that person is involved in an accident. A high risk driver is someone that an insurer believes has a greater chance of being involved in an accident, or filing a claim. This is determined by carefully examining a wide range of details, including an applicant’s age, gender, location, driving record, vehicle information, and many other facts.

Getting the lowest priced car insurance for high risk drivers involves an extensive amount of shopping because most coverage providers interpret accident risk differently. Although most companies target drivers in the standard and preferred markets, there are some producers who find it profitable to insure people in the nonstandard market. Motorists can often find these companies by taking the time to shop around online, where dozens of sample rates can be viewed at once from a single website.

Helping Nonstandard Motorists Buy Insurance

People who are unable to find vehicle coverage because of their driving records can often rely on state-run placement programs to help them meet insurance requirements. These programs typically work by taking higher risk drivers and assigning them to a participating company. In many states, licensed insurers are all required to share the responsibility of insuring nonstandard drivers through these programs.

Enrolling in these programs, such as the Michigan Automobile Insurance Placement Facility, is a better and more affordable option than driving without any coverage at all. And getting vehicle coverage through a placement program is not a life sentence. Most offenses only stay on a person’s driving record for three years. Avoiding accidents and moving violations can, in time, lead to lower coverage costs.

Source: http://www.onlineautoinsurance.com/low-cost/

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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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