How do credit ratings affect auto insurance?

Jim

Detroit MI

Insurance companies take into consideration the driver’s car insurance premiums by risk assessment such as where he lives, as well as the type of vehicle he drives. Car insurance see policyholders with the lesser risk (good driving history) as a better candidate compared to those with bad driving record. Insurance companies would determine the driver’s risk by using various kinds of factors to consider. One of which would be based on their credit score.

Recent studies show that the consumers that have good credit scores are the people less likely to file claims. In comparison, those that have lower credit score, below 600, have the higher tendency to file exaggerated claims, or worse, commit insurance frauds. Thus, the customer’s credit score would greatly contribute in assessing the risk level of a potential customer. Of course, insurance companies would invest in consumers where they would more likely spend less money on.

Credit score would also be a basis on what’s your payment plan will be. For example, customers with poor credit scores may not qualify for monthly billing as they may need to pay a higher percentage of the policy up front and the remainder monthly. For those that have a very poor credit scores may need to pay the entire premium for the six month policy up front.

My mom bought me a second hand car, so I have something to use when I go to work. I am a service crew at a diner, and transportation is not that easy especially when you’re at the closing shift and you don’t own a car. My problem is that I don’t know if the pay that I get is enough to cover for the insurance of the car. I am a single mom and although I am still living with my parents, there are lots of expenses that I need to take care of. Can you give me some advice on how to find the cheapest car insurance? Can I just get minimum coverage, so that I won’t have to pay much?

Nina

Boise, ID

Yes, you can definitely get the minimum coverage for your car insurance. The Idaho Code 49-117 states that every car owner must show proof of having financial responsibility in the form of insurance. This insurance must maintain a minimum coverage amounting to $25,000 (for the injuries sustained by one person in a single incident), $50,000 (for the injuries sustained by two or more persons for a single accident), and $15,000 (for the damages brought upon another person’s property for a single accident). The car insurance must maintain but not be limited to the stated minimum coverage. Failure to keep this minimum required coverage could lead to payment of fines and even registration or drivers license suspension.

The coverage of your insurance really depends on what you think your needs or limitations are. So if you think that you’re fine with the minimum coverage, ask the insurance agent to give you a quote on this coverage. However, to find the cheapest car insurance, make sure that you’re careful when you drive, so that you wouldn’t go beyond the limit of your insurance coverage in case an accident happens. Also, try to have a clean motor vehicle record (MVR) because each violation or citation has corresponding points which the insurance carrier considers when computing for your premium (or policy rate). An increase in your premium is the least that you’d want to happen, so make sure that you avoid anything that could lead to this.

If you want to find the cheapest car insurance fast, try checking the internet. Most insurance companies have their own websites, so getting a free quote from all of them wouldn’t be that hard anymore.

I am a firm believer that after years of hard work, we should all be able to enjoy our retirement. So, along those lines, I was thinking of buying my mom a new car. Do you have any tips to give regarding senior auto insurance?

Annie

Houston, TX

I could not agree more with what you said regarding retirement. Our parents work hard in order to raise us and give us everything that we need. So, by the time that they decide to retire, it should be that they could enjoy their retirement without concerning themselves on worries, such as transportation.

It is a sweet gesture on your part to give your mom a new car. Now if you are going to find senior auto insurance, you should have every bit of information you could gather, so that you would not make the mistake of settling for a run-of-the-mill senior auto insurance policy.

Usually, auto insurance policies do not cost very cheap. I have good news for you, though. Senior citizens have lower auto insurance premiums because they are not considered as high-risk drivers, in contrast to teenage drivers. Also, senior citizens are eligible to receive up to 10% senior citizen discounts. This would surely help in cutting some cost on the price that you would have to pay for your mother’s senior auto insurance.

Aside from the senior citizen discount, I think that you should also take advantage of female driver discounts. Female drivers are accorded discounts because, for the same reason as the senior citizens’, they are not high-risk drivers. Male drivers are the ones that are statistically proven to be hazardous on the road.

Now I suggest that you contact an auto insurance broker because there still might be some other discounts available to you, depending on your mom’s profile.

Why do I need to visit or call local insurers to get the cheapest car insurance quote?

Arlen

Tulsa Oklahoma

Shopping for the cheapest car insurance quote means exploring all avenues and leaving no stones unturned. In other words, foregoing a visit or a call to insurance areas in your area could mean losing an opportunity to get the best deal. While it is easy for you to obtain the cheapest car insurance quote from the Internet because of their online calculators, these estimates are based on information you have entered on the forms. The online calculators follow a predetermined set of conditions in assigning values to the data. The agent who will process your online request will be limited in his judgment because of the scarcity of information.

Talking with a car insurance representative in person means giving him a clearer picture of the vehicle you are insuring. You can also make a good impression on the company by being there in person. Getting an insurance is a business transaction that could be affected by relationships. If you become good friends with the company, its representatives will be more inclined to provide you with the cheapest car insurance quote. These insurance agents can even give you advice on what you can do to lower your premiums. Personal relationships are impossible when you stick to online transactions.

I’m a factory worker here in Michigan. No one knows for sure if our company will survive the recession, or we’ll be one of the many which are closing down. Times like these call for stringent belt-tightening. So, since not having one is not an option, can you at least advise me in finding the cheapest auto insurance?

Senedra

Dearborn, MI

Lucky you, you’ve still got a job! I agree that during hard times like this, a little savings can go a long way. There are several ways by which you could find the cheapest auto insurance that will work best for you. If you have the luxury of time, one option would be is to call or consult agents from different auto insurers. Just make sure that you give the same exact information, like the make and model of your car and what other coverages you’d like to be included.

The easiest way, of course, is to go online. First, try to look for auto insurance companies that operate in your state. Then, you could type in the information in their websites. Some companies will forward their quotes to you via e-mail, others will tell you their rates in just a few minutes. Still, there are auto insurance companies that will direct you to a customer service agent.

If you could find auto insurance broker websites, then that’s better. Some brokers represent multiple auto insurance companies. So, just by working with one will give you an idea how a number of companies will try to rate your car. Always be specific with the information you give them, and don’t hesitate to ask for promotions or discounts.

Where can I find the cheapest auto insurance quote here in Phoenix? I am planning to insure two of my brand-new cars.

Austin

Phoenix, Arizona

Finding the cheapest auto insurance quote could be tiring for some as it sometimes takes so much time, Austin. You have to stretch your patience to be able to find what you are looking for-as you said, the cheapest auto insurance quote. The searching process seems to be tedious, but it is surely rewarding as you could benefit from it as you could save money and at the same time be secured and safe. You have to check the factors affecting auto insurance quotes. This includes your credit history, safety driving history, your insurance coverage history, your household, your car, its model and previous coverage, and other information that you need to provide them.

The best place to look for the cheapest auto insurance quote is “online.” You can easily compare and review quotes given by different auto insurance companies in the comfort of your home. No need to travel and go to insurance offices. Make sure to give the right information that they asked or you miss a wonderful opportunity to get great discounts that you are eligible for if you do not fill in the information correctly. Being safe on the road is essential, and so getting the right auto insurance coverage is of great importance as you, your household and your belongings depend on it. So, you really have to review everything, analyze and compare before buying auto insurance.

You said that you plan to insure two of your cars. Most companies give higher discounts to people who insure two or more of their cars in them. Also, paying in full makes you eligible for auto insurance discounts. If you have enrolled and finished Defensive Driving Course or had installed security equipments in your cars, you get higher discounts. This only means you have more edge to get the cheapest auto insurance quote from most companies. The more discounts you get, the cheaper quote you get. Having that said, finding the cheapest one isn’t that troublesome after all. You just have to know what to look for.

I am wondering, is it safe to get the cheapest auto insurance available in town?
I mean, if it’s too good to be true, there has to be some catch, right?

Jim

Pittsburg, PA

In the old days, you should think not twice but ten or maybe a 100 times if you encounter a very cheap quote with a promise of really good car insurance. Chances are by the time you make a car insurance claim, you will be surprised to find out that there is no such auto insurance broker registered.

But now, Jim, I really can’t say outright that if somebody offers you what you think is the cheapest car insurance quote, you’re getting a rotten deal because there are many car insurance companies now offering really cheap auto insurance. Especially those online guys, they really give it to you cheap and fast and really deliver good and reliable service when you need them. Well, at least, most of them do. It’s just the way competition works-consumers win.

So, what you do if you happen to come across an unbelievably cheap auto insurance quote is you make a call to the Pennsylvania Department of Insurance and verify if indeed that that auto insurance has a permit to operate a business in your state. Then you’ll be sure that the company giving you the cheapest car insurance quotes is really legit.

My rates have increased after my friend crashed my car. Where can I get the cheapest auto insurance after an accident?

Ian

Rockford, IL

Although it may seem unfair, but will have to pay for your friend’s dreadful driving, too. This is also the case when family members borrow your car and get into an unfortunate accident. This is because the insurance that will kick in to pay for the damages your friend or relative may cause will be the auto owner’s insurance, which in this case is yours. Unless you are able to prove that the car was taken without your permission, then you can expect an increase of as much as 50% in your auto insurance premiums.

However, if this is the first ever accident in your auto insurance record, then you can appeal to your insurer. In most cases, auto insurance companies will be willing forgive the first accident and not raise the auto owner’s premiums. You will need to ask about this matter from your local auto insurance broker, though, as companies have varying rating systems. Other auto insurance companies may forego the first time accident, while some insurers may not. Since your rates have increased, you should shop around for the cheapest auto insurance from different companies that cater to clients who may be considered high risk because they have records of traffic accidents before.

My daughter has been requesting for her own car for the longest time. I think that it is right about time to give her this since she has been a very good student these past years. My only problem is that the cheapest auto insurance rates are definitely not for teenage drivers. What should I do? I do not want to let my daughter down this time.

Carla

Trenton, NJ

It sure would be a disappointment to your daughter if you are not able to at least give her this reward for being such a good student in school for the past years. But I totally understand your case. Finding the cheapest auto insurance rates for teenage drivers shall prove to be a great challenge, especially since you live in a large city. No one can actually escape the fact that teenagers and people who reside in large cities are given sky-high auto insurance premiums.

Why? It is actually a matter of probability of getting into an accident.

Yearly, statistics show that most vehicular accidents have teenage drivers involved in one way or another. Whether the teenagers have a mere speeding ticket, or whether the teenage driver is at-fault in the accident or not, it does not matter. All of these just suggest some form of a pattern of recklessness on the teenagers’ part. On the other hand, people who reside in large cities are more exposed to vehicular accidents simply because there are more cars in cities than in rural areas.

Now, it may seem unfair to generalize all of the teenagers as reckless drivers. So, in order to give a solution to this problem, auto insurance companies offer various discounts that will surely turn the sky-high auto insurance premiums to the cheapest auto insurance rates.

First, a teenager must have good grades in school in order to avail of “good student” discounts. In the eyes of auto insurance providers, a teenager who can be responsible in school most probably can be responsible, as well, on the road. Second, it would also help if the teenager finishes driving courses that are offered in high schools and other local establishments. Driving skills are enhanced through driving courses, and at the same time traffic rules and regulations are taught to the driver, making him or her aware of the responsibilities that come with driving. Third, I would not suggest buying newer cars. They are not only more expensive to repair, but they are also more attractive to thieves. Older cars updated with safety features are better. They run slower than newer cars, making them less prone to accidents, whereas safety features translate to lower medical bills in the event of an accident. Lastly and most importantly of all, make sure that your daughter would never, never drive while intoxicated. A DUI offense would raise your daughter’s auto insurance premium, not to mention all the other consequences that come with it.

How can I find the cheapest auto insurance rates on the Internet?

Gail

Minneapolis, MN

With a lot of websites out there claiming to offer the cheapest auto insurance rates, it can get quite confusing. Let me share with you some tips to get the cheapest auto insurance rates for you:

1. Know what you want. If you are working within a budget, you will need to find the auto insurance deal that will give you the most for your money. Do some research on what state laws require as the minimum auto insurance and assess whether this coverage suits you or the amount of coverage that you think you will need. This way, you will not be easily swayed by cheap auto insurance that is lacking in coverage.
2. Compare rates from different auto insurance websites that offer different brands. Another way to get the cheapest auto insurance rates is to compare rates of different websites. Each consolidator website offers auto insurance from different companies, and if you go to just one brokering website, they may not offer a brand that will actually give you a better deal.
3. Try to find the auto insurance company that specializes in the type of insurance that you need. Some auto insurance companies specialize in insuring drivers with DUI or such other records, while some companies offer better deals over all for teen driver’s insurance. If you know what category you fit in you will be able to ask around and see which auto insurance company offers the cheapest auto insurance rates for your category.

Hope these tips help you get the auto insurance policy that you need.