Insurance Tips

Interesting Facts About Affordable Auto Insurance

Insurance Tips for 16-19 year-olds

cool insurance facts affordable auto insurance tips for 16 - 19 year-olds

I’m 16-19 years-old, currently insured, with a clean driving record.

If you are a driver between the ages of 16 and 19 you will be faced with higher insurance rates than drivers over the age of 25. If you are already insured and you want to keep the policy, work hard to keep your rates as low as possible. Here are some tips for keeping your rates down whether you are insured or still shopping around:

• Drive responsibly – Speeding tickets, accidents, and other traffic violations will affect your rates.
• Drive a safe vehicle – Driving a car with standard safety features such as anti-lock brakes and airbags will reduce your risk of accident and injury and, therefore, your cost.
• Establish good credit – Insurance companies want to insure people who are responsible both on and off the road. Pay your bills on time and your efforts will be reflected in your rates. Don’t have a credit history? Maybe it’s time to start building good credit.
• Discounts – Ask about them! Every company is different but some offer discounts for being a good student, low mileage driving, and even for volunteering.

I’m 16-19 years-old, not currently insured, with a clean driving record.

You may wonder why rates are so high for young drivers. What’s so special about turning 25 that lowers insurance rates? Actually, there are a variety of reasons for the higher rates based on tons of data. For one thing, your age group hasn’t been driving long enough to prove yourselves responsible drivers. Another factor is the number of motor vehicle crashes young drivers are involved in. According to the Rocky Mountain Insurance Information Association, 16-year-olds have a higher crash rate than any other age group. Your gender will also affect your rates. In 2009, two of every three young drivers killed in a motor vehicle crash were male. This statistic tells insurance companies that males are more risky drivers and the rates for males are adjusted accordingly.

I’m 16-19 years-old with an accident(s) on my record.

Being involved in an auto accident will always affect your insurance policy. Every company has different regulations when it comes to accidents, but some factors remain consistent. If the accident is determined to be your fault expect a significant increase in your premium. This is especially true if the accident was the result of a moving violation such as speeding or running a red light. If you are shopping for a new policy with an accident on your record you should know that an accident can stay on your driving record for three to five years. Be prepared to be turned down by several companies and expect a very high premium when a company does decide to take a chance on you.

The number of claims you’ve previously filed will also affect your rate following an accident. More claims mean you are labeled as a high risk driver, so decide wisely before filing a claim. Insurance companies can legally drop your coverage if you reach a certain quota of claims. A list of times you shouldn’t file a claim can be found at DailyFinance.

I’m 16-19 years-old with a DUI or a current suspended license on my record.

Since it is illegal to drive with a suspended license most companies will not insure you while yours is in a suspended state. You do have the option to apply for a hardship license which will allow you driving privileges to and from work or school only. However, your insurance will inevitably increase and the reason for the suspension will have an impact on your rate.

Receiving a DUI is a much more serious matter when auto insurance is concerned. Your rate will be affected for three to five years and can quadruple in price. Some companies will even drop your coverage upon arrest for a DUI, and finding another insurance company will be incredibly difficult. If you receive a DUI and are underage the penalties are even stiffer. Your driving privileges will be revoked for at least 90 days or as long as three years. No license means you won’t have insurance, and this will lead to a lapse in coverage. Obtaining a policy following a lapse in coverage is difficult because insurance companies question why you were not driving.

I’m 16-19 years-old and need motorcycle insurance.

If you are a young driver looking for motorcycle insurance you will encounter more difficulty finding a competitive rate than you would for a vehicle policy. Some states won’t even insure motorcycle drivers if they are under the age of 21. The reason behind the high rates and stiffer regulations is statistics. Motorcycle riders of any age are more likely to drive faster. According to Traffic Safety, 37% of fatal motorcycle crashes involved speeding compared to 23 percent of similar crashes involving vehicles. That combined with the an already-inexperienced new driver means sky-high rates.

Insurance Tips for 25-55 year-old

interesting facts about auto insurance affordable auto insurance tips for 25-55 year-olds

I’m 25-55 years-old, not currently insured, with a clean driving record.

If you have a license, you won’t have trouble finding a great rate. The different discounts available make an immense difference on rates. If you have a normal car with anti-lock brakes, air bags, and drive less than the average person, then you will be able to grab a decent rate. Make sure you hold on to that rate. If you don’t smoke and are married, then some companies may consider these traits of responsibility and let you keep a low rate for a long time. Make sure you drive defensively and always wear your glasses or contacts if you have them. If you stay with the same company for a long time without accidents on your record, your rates will drop every year.

I’m 25-55 years old, currently insured, with a clean driving record.

Be patient, and wait for a great quote to be offered to you. The insurance rate that is offered to you will also depend on where you live, your credit history, and the type of car you drive. If you have what is traditionally thought of as a fast car, like a Camaro, your rates will be much higher than if you drive an Impala. If you are creeping up in age, the best way to keep your rates low is to pretend you are younger than you are. I know, I know; that’s not possible, but wouldn’t it be nice if it was? Just be friendly on the road, always drive defensively, and curb any road rage.

I’m 25-55 years-old, with an accident(s) on my record.

If you have an accident on your record, your car insurance rates are going to be high no matter how old you are. The only factors that will help your rates are student discounts, marriage discounts, and location, location, location. If you drive a car that is traditionally thought of as safe and conservative, this can also bring your rates down. Make sure insurance companies know if a significant amount of time has passed since your accident; this could persuade them to lower your rates, also, as long as you’ve had a clean record since then.

I’m 25-55 years-old with a D.U.I. or a current suspended license on my record.

If you have a D.U.I. on your record or a suspended license, take a few things into consideration. If you’re looking to buy a car, go for a conservative model. Also, do your research and find a car that won’t be as expensive to fix. Insurance companies will take all of these factors into consideration. If you live in a city that has a reputation for bad drivers–such as Philadelphia, on record as having the worst drivers in the nation–I would consider moving if possible. Even moving to the suburbs could help you immensely if the alternative is a city with high accident rates. You may also have the option to take a special state approved senior driver defensive course or an accident prevention course, depending upon your age and your state’s offerings.

I’m 25-55 years-old and need motorcycle insurance.

If you are between the ages of 25 and 65, and you need motorcycle insurance, a good insurance rate shouldn’t be too difficult to find. One good way to get and keep a low rate for motorcycle insurance is to keep it on the same insurance policy as your car. Many people tend to keep them separate and don’t get that extra protection already available for your car. Medical benefits may also be limited or not available when purchasing motorcycle insurance because of the high rates of accidents. Make sure you have your own medical coverage beforehand. Above all, do not text message while driving. Our best advice is to avoid your cell phone altogether while on a motorcycle.

Insurance Tips for Mature Drivers

interesting facts about auto insurance affordable auto insurance tips for seniors

I’ve been driving for over 50 years, shouldn’t I get a discount?

Yes we think you should! There are discounts available specifically for individuals above the age of 55. There are, however, two requirements to receive the mature driver discount: you must be above the age of 55 and you must complete an approved ‘Mature Driving Course.” The driving course aims to refresh some skills and teach you some excellent safety tips. Once you’ve completed the approved course you can, at anytime, send us the completion paperwork and we’ll apply the discount to your policy. This is a great discount to take advantage of and serves to protect you and those around you.

I’ve had the same insurance provider for a long time, but is there something I’m missing?

We live in a rapidly evolving world. In today’s market we can comparison shop, research companies, and get the best deals on products and services. If you’ve had the same insurance provider for years, that may be a fine. However, you might be missing out on some great discounts and policy reductions. If you’re wondering if there’s a better rate out there, chances are you’re right. We at Cheap Insurance have made it our mission to work with individuals to craft and customize a policy that offers the cheapest rate around.

I’ve been driving for a long time and my record has some blemishes.

In many states there are a few options available. Some states allow you to erase blemishes on the spot. What that means is some states will allow you to pay double the fine to have the blemish erased. For example, you can pay $70 for a $35 traffic ticket and it won’t show up on your record. Some states allow you to go into your county traffic court and have blemishes expunged from your record after a certain time period. Expunged is just a fancy word for erased. For example, some states require you wait a minimum of one year; after that one year you can go into your courthouse and have the blemish removed from your record. If you are at least 60 years old, the best thing you can do for yourself if you have a D.U.I. or suspended license is to take a special state approved senior driver defensive course, and an accident prevention course. The last option involves your insurance agency. Most agencies will no longer take into account blemishes after a certain time frame. For example, some agencies ignore an accident after two years.

Safety tips for older drivers

• Schedule regular vision and hearing tests. It’s important to stay up-to-date with your vision and hearing.
• Refresh your driving skills. We offer an insurance policy discount for those who take driving classes. These classes help you up your defensive driving skills and advise smart driving decisions.
• Stay physically active. Your body needs activity to be alert and responsive. Driving can be especially dangerous when the driver lacks in either area. Spend 30 minutes per day walking to increase your agility and response time.
• Know your limitations. Know the conditions and speeds that make you uncomfortable. In addition, know the limitations of of your vehicle. Know how fast, responsive, and agile your vehicle is.
• Drive under optimal conditions. Try to avoid driving at night and in poor weather conditions. Plan ahead to avoid getting caught in driving conditions that make you uncomfortable.
• Drive a car that meets your needs. Many therapist and agencies offer courses that help you find the right vehicle for your needs.

Purchasing Tips

affordable auto insurance tips purchasing tips

I am looking to purchase a vehicle with a salvage title.

Several things are required prior to purchasing an automobile with a salvage title:

• Recognize what a salvage title is
• Acquire a CarFax report
• Acquire a competent inspection
• Compare the savings to future costs

In most situations, salvage titles are awarded to any vehicle that has experienced damage estimated at 75% or more of its worth. For example, if you drive a Toyota worth $12,000 and it has $9,750 in damage due to a collision, it will be given a title stamped salvage. Basically, a vehicle in this condition is unfit to drive. In some states, this is also known as a “junk title.”

This is my first time purchasing car insurance.

You need to know what to look for when purchasing car insurance for the first time. Don’t be scared! It’s not a difficult process. Make sure you do your research and have all the required information, and you’ll be covered in no time.

First, you need to know how much coverage you need. There are four basic types of coverage: comprehensive, collision, uninsured driver and liability. The majority of states demand that you have liability and uninsured driver insurance. Collision insurance will pay for any damages if the accident is the fault of the driver. Comprehensive insurance safeguards an automobile from theft, fire, and other disasters. Preferably, you want all four types of coverage.

How do I bundle my insurance?

Individuals purchase insurance for various reasons of convenience besides simply the price. Consequently, many people are stuck with a mishmash of insurance companies and do not know why. In reality, bundling your policies will provide gigantic savings on your insurance.

Many large insurance companies price their insurance policies to appeal to a certain fragment of the market. The prices are created to attract homeowners who require extra insurance such as life insurance and car insurance. Insurance companies prefer customers who will stick around; therefore, in order to keep the customer’s business, companies offer multiple-policy discounts. They may offer a discounted rate to insure both the customer’s house and vehicle. Discounts come with adding a second car or life insurance to a policy as well. When bundling home, auto, and life insurance, individuals can save up to thousands per year. Rates will also depend on where the person lives, how much their home/cars are worth, personal health, driving habits, and so on.

Talk to your insurance provider about available bundles. They’ll walk you through the process.

How do I comparison-shop for car insurance quotes?

The main reason people shop for car insurance quotes is price. Insurance companies are infamous for changing rates. If your car insurance rate has been sneaking up over time, you can most likely find a cheaper price with a different company. The easiest way to compare is to shop online. With the Internet, you will be able to get multiple quotes quickly and change companies if necessary. Most companies offer a free quote online. As you research and compare rates, be sure to take into account specifics of the policies–things like road-side assistance or multiple-policy discounts.

What is the best way to shop for insurance: phone, Internet, or agent?

Shopping for car insurance is not uncommon in the insurance industry. Auto insurance advertisements are always trying to attract new customers. If you have been with the same insurance company for a while, it couldn’t hurt to at least shop around for cheaper rates.

In order to find the best insurance carrier quickly the Internet is the best way to go. Statistically, more people shop for auto insurance online than any other method. The days of telephoning tons of agents hoping that they give you the best quote is long gone. Most people already have a quote in mind before calling an auto insurance company after doing online research. As a matter of fact, car insurance can be purchased directly online without the medium of an agent or phone call. Today it is all about price and convenience, and in this arena the Internet wins hands down.

Insurance Tips for 20-24 year-old

affordable auto insurance tips for 20-24 year-olds

I’m 20-24 years-old, currently insured, with a clean driving record.

If you are a driver between the ages of 20 and 24 you will be faced with higher insurance rates than drivers over the age of 25. If you are already insured and you want to keep the policy, work hard to keep your rates as low as possible. Here are some tips for keeping your rates down whether you are insured or still shopping around:

• Drive responsibly – Speeding tickets, accidents, and other traffic violations will affect your rates.
• Drive a safe vehicle – Driving a car with standard safety features such as anti-lock brakes and airbags will reduce your risk of accident and injury and, therefore, your cost.
• Establish good credit – Insurance companies want to insure people who are responsible both on and off the road. Pay your bills on time and your efforts will be reflected in your rates. Don’t have a credit history? Maybe it’s time to start building good credit.
• Discounts – Ask about them! Every company is different but some offer discounts for being a good student, low mileage driving, and even for volunteering.

I’m 20-24 years-old, not currently insured, with a clean driving record.

You may wonder why rates are so high for young drivers. What’s so special about turning 25 that lowers insurance rates? Actually, there are a variety of reasons for the higher rates based on tons of data. For one thing, your age group hasn’t been driving long enough to prove yourselves responsible drivers. Another factor is the number of motor vehicle crashes young drivers are involved in. According to the Rocky Mountain Insurance Information Association, 16-year-olds have a higher crash rate than any other age group. Your gender will also affect your rates. In 2009, two of every three young drivers killed in a motor vehicle crash were male. This statistic tells insurance companies that males are more risky drivers and the rates for males are adjusted accordingly.

I’m 20-24 years-old with an accident(s) on my record.

Being involved in an auto accident will always affect your insurance policy. Every company has different regulations when it comes to accidents, but some factors remain consistent. If the accident is determined to be your fault expect a significant increase in your premium. This is especially true if the accident was the result of a moving violation such as speeding or running a red light. ALWAYS report an accident. Avoiding an adjustment in your auto policy isn’t worth financially burdening a victim or potentially being caught by the police. If you are shopping for a new policy with an accident on your record you should know that an accident can stay on your driving record for three to five years. Be prepared to be turned down by several companies and expect a very high premium when a company does decide to take a chance on you.

The number of claims you’ve previously filed will also affect your rate following an accident. More claims mean you are labeled as a high risk driver, so decide wisely before filing a claim. Insurance companies can legally drop your coverage if you reach a certain quota of claims. A list of times you shouldn’t file a claim can be found at DailyFinance.

I’m 20-24 years-old with a DUI or a current suspended license on my record.

Since it is illegal to drive with a suspended license most companies will not insure you while yours is in a suspended state. You do have the option to apply for a hardship license which will allow you driving privileges to and from work or school only. However, your insurance will inevitably increase and the reason for the suspension will have an impact on your rate.

Receiving a DUI is a much more serious matter when auto insurance is concerned. Your rate will be affected for three to five years and can quadruple in price. Some companies will even drop your coverage upon arrest for a DUI, and finding another insurance company will be incredibly difficult. If you receive a DUI and are underage the penalties are even stiffer. Your driving privileges will be revoked for at least 90 days or as long as three years. No license means you won’t have insurance, and this will lead to a lapse in coverage. Obtaining a policy following a lapse in coverage is difficult because insurance companies question why you were not driving.

I’m 20-24 years-old and need motorcycle insurance.

If you are a young driver looking for motorcycle insurance you will encounter more difficulty finding a competitive rate than you would for a vehicle policy. Some states won’t even insure motorcycle drivers if they are under the age of 21. The reason behind the high rates and stiffer regulations is statistics. Motorcycle riders of any age are more likely to drive faster. According to Traffic Safety, 37% of fatal motorcycle crashes involved speeding compared to 23 percent of similar crashes involving vehicles. That combined with the an already-inexperienced new driver means sky-high rates.

Common Insurance Misunderstandings

insurance myths

Red cars cost more to insure.

False. Insurance agencies don’t even ask or look at the color of your vehicle when calculating your insurance premium rate.

Cheap cars cost less to insure.

False. When calculating insurance premiums, agencies ask for the make, model, year, body type, engine size and year of your vehicle. You could have a 20-year-old car with a V8 engine that costs more to insure than a 5-year-old car with a 4 cylinder engine. Often times collision is cheaper for older cars because their value is lower than those of newer cars.

If a friend borrows my car, they are liable for the accident; not me.

False. We wish that were true. Unfortunately you are ultimately held accountable for any accident caused by your vehicle regardless of who is driving. However, it is possible that the driver’s insurance would be responsible for some of the damages. If your insurance premium doesn’t cover all the expenses the next in line would be the driver’s to pick up the rest of the expenses.

Comprehensive coverage covers everything.

False. Comprehensive coverage pays only for damage caused by an event other than a collision including:

• Fire
• Theft
• Vandalism
• Weather
• Collisions with animals
• Glass

Not all scenarios, circumstances, and events are covered under comprehensive. If you have questions about your comprehensive coverage call your insurance provider.

Sports cars get more tickets, thus having higher rates.

False. Fun fact: topping the list with the most violations are coupes, sedans, and SUVs (according to a study by Quality Planning Corp). We don’t use this study to calculate your premium; however, we do look at the vehicle loss history as well as your driving history to determine your policy premium.

Insurance agencies can charge whatever they want.

False. States have set up regulations to help consumers get “fair” prices. Insurance agencies are required by their respective states to show how they calculate their insurance premiums. All rates are filed with the Department of Insurance.

My personal property inside my vehicle is automatically covered.

False. Comprehensive and Collision coverage must be purchased within your policy, and some companies will cover up to $200. Most won’t cover your personal items, though. This is where renter’s or home owner’s insurance comes in. Your comprehensive coverage will cover any items that are stolen or damaged due to fire, vandalism, hail, and earthquakes. However, you are required to pay your deductible to receive the value of the items damaged.

I need to buy additional coverage for a rental car.

False. Most insurance policies cover rental cars. Offering rental car insurance is just a clever rouse by rental companies to make more money. At the same time, some agencies require that you purchase rental insurance. If you didn’t buy their insurance because your coverage extended to that vehicle, you could still be responsible for the daily rental rate while the vehicle was being repaired after you pay you deductible. If you are looking to rent a car, check both the rental company’s insurance policy and your own to see if rental cars are covered.

My credit score doesn’t affect my rate.

False. This is state specific, but most states will use an ‘insurance score’ based on your credit to determine costs. Your credit score is indicative of how well you pay your monthly payments. The lower the score the higher the premium because most agencies consider it a risk. California, though, does not use credit as a factor for auto insurance.

I need insurance, but I don’t know where to start?

Insurance can be a daunting purchase. There are thousands of agencies all shouting different prices, features, and contingencies. Don’t let the mass of agencies paralyze you from becoming insured. We recommend heading to our resource center. There, you’ll find articles, resources, and tools that will help you make the best decision possible.

Are comparison tools accurate?

There are a lot of sites that provide tools to calculate insurance premiums across several companies. We understand your concern with credibility. Most insurance agencies are heavily regulated and are under close supervision. Most of the time “comparison” quotes are accurate; however, we recommend you visit each agency for real quotes. Cheap Insurance is also a great alternative, because we are a brokerage working in your behalf to get you the absolute lowest price.

Do insurance calculators work?

We’ve only seen one calculator that is accurate. However, we urge to remember most agencies use an extensive formula to calculate your insurance rate. Most formulas include your credit score.

I see ads on the Internet for $19/month insurance rates, are those real?

The truth is, a very very small percentage of people fit the profile for $19-$29 per month insurance rates. We wish the majority of people could receive extremely low rates but unfortunately factors such as credit, driving history, and demographics play too large a role to be discounted. However, that does not mean that low rates do not exist. We, at Cheap Insurance, pride ourselves in offering the lowest rates around. The difference is we won’t advertise unrealistic numbers to attract consumers.

Can agents get me lower prices than web sites?

Most of the time agents will offer the same premium as direct quotes online; however, speaking with an agent can help you build an insurance plan that works for you. Insurance can be complicated, having someone with whom to discuss concerns can be a very powerful thing.

We’ve been finding cheap insurance for drivers since 1974. No matter what your situation – tickets, accidents, dui, young driver, new driver – we will find you great insurance at the best prices.