Auto Insurance News Archive for 2009

• Experts: Factors Affect ‘Clunkers’ Savings

  by Jeanny Hopper
  

  The popular Car Allowance Rebate System (CARS) of the federal government may not be as promising as it seems, according to several insurance experts. Analysts say that car owners who lack the knowledge about the “cash for clunkers” program can actually spend more money in the long run, instead of saving thousands of dollars through the rebates. Car owners who trade in their gas-guzzling vehicles can qualify for as much as $4,500 from the federal government. Drivers can only get the maximum amount if the new car they are planning to purchase gets more than a 10 mpg improvement over … (more) August 17, 2009

• Illinois Bans Texting while Driving to Reduce Premiums

  by Jeanny Hopper
  

  Citing studies and researches about driver distractions, the state of Illinois recently passed a bill into law prohibiting motorists from using their mobile phones while driving. State Governor Pat Quinn and State Secretary Jesse White signed the new law just last week in an effort to curb the increasing number of car accidents associated with driver distraction. The new law took effect August 6 of this year and is set to help reduce injuries and fatalities caused by distracted drivers using their cell phones. Motorists caught texting or making calls will be pulled over by law enforcers and fined $75. … (more) August 17, 2009

• Car Insurance Rates Ever-Changing, says Specialists

  by Jeanny Hopper
  

  Contrary to popular belief, auto insurance rates are never the same for everyone. In fact, car insurance companies depend on different factors to come up with the rates. Experts say that premiums differ from one car owner to the other because of the different circumstances governing them. Industry specialists are cautioning against the use of the term “car insurance rates” since it can be misleading. They argue that it does not actually exist because providers rely on various aspects to come up with premiums. No two rates are ever the same because of the subtle differences between car owners. For … (more) August 16, 2009

• Insurance Rates Control Tips Revealed

  by Jeanny Hopper
  

  It is a well-known fact that car insurance rates are determined by different, equally-important factors. These aspects control insurance quotes and eventually, premiums. Experts say that knowing how to use these factors to car owner’s advantage can help them push insurance rates down to more affordable and manageable levels. First, policyholders have to know what factors they cannot control or alter. For example, a car owner’s age and age group can never be changed. Naturally, so is gender. The driver’ place of residence is also one factor that cannot be changed easily. Insurance providers also consider the policyholder’s location to … (more) August 16, 2009

• Experts: Americans not Saving Enough from ‘Clunkers’ Program

  by Jeanny Hopper
  

  The revival of the popular incentives program by the federal government is prompting some insurance specialists to caution prospective applicants. According to several experts, the Car Allowance Rebate System (CARS) can actually give many Americans false hope regarding expected savings. Experts familiar with the federal program say that the CARS program, also known as the “cash for clunkers” program, does not necessarily guarantee large savings for car owners who trade in their old vehicles. The ‘clunkers’ program aims to get aging cars off the nation’s roads and replace them with more economical vehicles. Applicants can get the maximum amount, $4,500, … (more) August 15, 2009

• Insurance Premiums Fall in Time for Return to School

  by Jeanny Hopper
  

  With a new school year just around the corner, parents and students alike are preparing once more for another year of education and of course, expenses. Some Americans reeling from the economic slump are bracing themselves for a more expenditures with the opening of classes. Parents with children in college are also finding it even harder to find ways to cut unnecessary expenses. Increasing education costs, rising living expenses, and costly car insurance are forcing many families to cut back on some lifestyle features just to send children to college. According to experts, however, many American families are in for … (more) August 15, 2009

• Car Insurance Tips Explained to College Students

  by Jeanny Hopper
  

  With the start of another school year looming, parents are scrambling to get everything in order for students returning to colleges and universities across the nation. The economic pinch has certainly made its presence felt for many households. Rising education costs are also forcing many parents to cut back on several expenses, car insurance included. It is a well know fact that getting auto insurance coverage for young drivers can be quite expensive. Their relative inexperience in driving combined with reckless tendencies can lead to skyrocketing premiums for parents. However, car insurance is a necessity in 48 states and not … (more) August 14, 2009

• Experts: Save 35% off Insurance by Comparing Quotes

  by Jeanny Hopper
  

  In the latest show of support for online car insurance services, industry experts are claiming that policyholders who purchase their policies through the internet can slash more than a third off their premiums. According to data collected and analyzed by industry sources, car owners who have opted to look for insurance online have saved up to 35 percent of their regular rates. The amount is equal to hundreds of dollars, with the national insurance premium average at more than $1,800 annually. According to experts, a common misconception many Americans have about comparing insurance quotes online is that it is difficult … (more) August 14, 2009

• Car Maintenance Needed for Lower Premiums

  by Jeanny Hopper
  

  Even with the national car insurance average at its lowest rate in over a year, insuring a vehicle is substantially more expensive nowadays than ever before. With the economic pinch taking its toll on job-seeking Americans and struggling families, the question of insurance costs is often highlighted. Car owners who think that auto insurance is unnecessary often pay for their assumptions dearly when they get in car accidents that drain their financial and personal assets. Despite the risk of losing thousands of dollars for car repairs and personal assets, a growing number of motorists are dropping their insurance policies to … (more) August 13, 2009

• Student Auto Insurance Myths Debunked

  by Jeanny Hopper
  

  Rising tuition fees, growing credit card debt, and a weak economy are forcing many parents and college students to skimp on car insurance. With the assumption that auto insurance for young drivers is too expensive, many Americans are actually getting themselves in more trouble. Experts argue that car insurance is even more important for inexperienced young motorists because they have yet to build up good driving records. To help parents scale back their expenses for their children’s car insurance policies, industry sources have come up with answers and explanations for popular misconceptions and inaccurate notions. Contrary to popular belief, college … (more) August 13, 2009

• Options Bared for Rental Car Insurance

  by Jeanny Hopper
  

  Experts agree that the large volume of cars on American roads and highways this summer can lead to more accidents and consequently, more insurance claims. Most providers have anticipated this and have implemented sweeping changes to their premiums, raising some rates considerably. To avoid the inconvenience of bringing their own cars during lengthy trips, a growing number of Americans are choosing to rent cars from rental companies. While convenient, rental cars can give drivers more problems. The question of insurance often comes into mind whenever motorists rent vehicles for business or pleasure. To allay these fears, most rental companies offer … (more) August 12, 2009

• Parents Look for Ways to Save on Car Insurance

  by Jeanny Hopper
  

  With the economy showing very little signs of recovery, many American parents with teen drivers are turning to just about anyone for insurance advice. Because young motorists are more costly to insure than regular adults, families often cut back on other basic needs and unnecessary expenses. The economic slowdown, however, has inevitably changed how Americans prioritize their expenses. For once, a growing number of car owners are starting to increase deductibles, with some even dropping policies altogether. Industry experts, on the other hand, strongly recommend finding other alternatives to getting rid of insurance. Driving without insurance is illegal in … (more) August 12, 2009

• Experts List 10 Least and Most Costly Cars to Insure

  by Jeanny Hopper
  

  In an unexpected turn of events, average car insurance premiums across the U.S. are the lowest in a year. News of the economy’s early recovery and better than expected job data has resulted in decreasing insurance premiums among major providers in most states. The latest figures, according to surveys, puts the average auto insurance premium at $1,871. The latest news surprised industry experts who expected higher than usual premiums this year because of the expected increase in the number of uninsured drivers. Major insurance companies previously expressed intentions to raise insurance rates in the face of more uninsured and underinsured … (more) August 11, 2009

• Insurance Tips for Young Drivers Bared

  by Jeanny Hopper
  

  Car insurance companies determine insurance rates and premiums based on several factors. For adult motorists, the type of car they drive often plays a crucial role in assessing insurance rates. Driving records come second. Drivers belonging to other age groups, on the other hand, are assessed based on their driving experience and physical capabilities. Young motorists are considered by providers are relatively inexperienced, hence the higher premiums. Companies also rely on different studies and surveys to come up with insurance premiums. Statistically speaking, drivers under the age of 25 are more likely to get involved in car accidents. In fact, … (more) August 11, 2009

• Rental Car Insurance: A Closer Look

  by Jeanny Hopper
  

  Insurance researchers are urging car owners and motorists to rethink the way they perceive insurance offers made by rental companies. In the past, industry specialists often recommended ditching signing a “collision damage waiver” or CDW, when renting a car. Apparently, even insurance agents called the CDW a “hassle insurance” because of the delay and problems that arose if a policyholder avails of it. Experts often advised policyholders against signing on for a CDW, adding that it is often too expensive and unnecessary. Agents would also tell clients that these agreements are only significant because they release the policyholder from any … (more) August 10, 2009

• One in Three Say Number of Uninsured Drivers Climbing

  by Jeanny Hopper
  

  A recently conducted survey has revealed startling conclusions for a growing number of like-minded American motorists. According to research done by the Insurance Research Council (IRC), one in three drivers believe that as many as 40 percent of motorists on the road have no car insurance. While their conclusions may not have come as a surprise to industry experts who have expected this kind of reaction, the findings are forcing many analysts to rethink how they treat public perception. In recent months, there have been numerous surveys and studies conducted to figure out how the exact numbers of uninsured drivers … (more) August 10, 2009

• Expensive Cars More Costly to Insure

  by Jeanny Hopper
  

  Industry sources say that auto insurance companies rely on different factors to determine premiums. These factors contribute greatly to the insurance costs that car owners have to shoulder. Credit scores, driving records, and the make and model of the car all come into play when insurance providers assess a potential customer and come up with rates. Experts contend that one of the most influential factors is the kind of car policyholders drive. Insurers typically base rates on the risks involved with certain car types. For example, high performance sports cars are more expensive to insure compared to modest cars. Large … (more) August 9, 2009