Reader’s Question:

Whenever my friends and I compare cheap car insurance policies that we have, we are always puzzled by the difference. Someone’s theory is that car insurance rates are highly dependent on the job of the person being insured. Is this true?

Tara

Portland, OR

Tara, when you compare cheap car insurance policies with your friends, you should not be surprised by the significant difference in your rates. There are a lot of factors that affect your rates, and, yes, your job is one of these factors. You see, the main thing, which is also a very important if not the most important thing, that you should always keep in mind is that in determining a client’s rate, his or her probability of getting into a car accident and making damages to be covered for is highly taken into account. Now, if a job of a person requires him or her to be always on the road, his or her probability to be in an accident rises to 100%.

Now, the people who are most likely to receive really expensive premiums are those with jobs that are highly stressful. They are the businessmen, policemen, firefighters, doctors, lawyers and judges. Why is this so? Policemen, firefighters and doctors are always on-call, whereas businessmen, lawyers and judges require them to use their mobile phones frequently while they are driving.

On the other side of the spectrum are the scientists, navigators, professional drivers and pilots. Scientists are trained to be keen on details, so it is very unlikely for them to be in an accident. Navigators, professional drivers and pilots are in charge of the safe transportation of their passengers. Also, a driving offense will highly affect their careers, so they’d better behave on the road.

So, by now you should be enlightened. However, the job of a person is just but one part of the whole. There still a lot of other things that affect your car insurance rate. Just ask around and you shall find out.

Reader’s Question:

What are the things I should look out for when comparing vehicle insurance? I am quite new to purchasing vehicle insurance policy. I hope I can get practical tips. Thanks.

Lyndon

Boston, MA

There are a lot of things you should consider when you compare vehicle insurance. First, you should go for a reputable insurance company. While many smaller insurance companies offer cheaper insurance premiums for vehicles, there is always the risk that these small firms may not have the financial capacity to pay off your claims in case you need to do so. You’d rather pay higher rates than settle for lower insurance premiums, as long as you are confident that you’d be paid off when the time comes for your claims.

Next, always look at the deductibles when you compare vehicle insurance quotes. The higher deductibles the insurance company charges, the lower premiums they will collect. Depending on the kind of vehicle insurance you need, choose which is better for you- higher premiums with lower deductibles, or lower premiums with higher deductibles.

You should always compare the total amount of insurance coverage of various policies when you compare vehicle insurance.

Review the total amount covered for body injury and liability insurance coverage. Always go for the policy with the highest amount so that you can get the best priced coverage

Reader’s Question:

With a lot of insurance companies going bankrupt these days, I’d like to be informed as to which companies would make a good fight and survive the recession. Can you show me how to compare car insurance companies? That way, I know I’ll be dealing with an insurer with integrity and credibility.

Clay

Topeka, KS

Hard times call for hard measures. And though it would probably take up some of your time, it’s important to see and compare car insurance companies which you’ll be entrusting your hard-earned money with. It would truly make a difference knowing that you’re on safe grounds.
Probably the easiest way would be to ask friends and families of their experiences with various car insurers. Their pleasant and not-so-pleasant experiences would give you an insight as what to expect from these car insurance companies. There are also online forums and discussion boards that tackle common complaints from consumers against some insurance carriers. Some policy holders post their views and reviews regarding the services of some companies. You’ll at least have an idea which of these car insurers are given the highest satisfaction rating by the consumers.

You could also check out some websites of different organizations which posts ratings and analysis of insurance providers. Their comprehensive reports provide up-to-date information on each company’s record. These profiles will show the strength and weakness of each one.
So, don’t go purchasing that car insurance yet. Make time to check everything that will be offered to you. Choose a car insurer that is reputable enough to cover you adequately, especially during accidents.

Reader’s Question:

My son is a still a teenager, and I want to get cheap car insurance for him. I want to compare car insurance quotes specifically for teens. What considerations should I take note of?

Johnny

New York, NY

Johnny, you should know that teen insurance is a tad more expensive than those of other age groups. This is because statistics proves that teenagers account for $34 billion of damages as a result of motor vehicle accidents as reported by AAA. According to the National Teen Driving Statistics, vehicular crashes are one of the leading causes of death among teenage drivers. They have also found out that 16-year-olds have the highest car crash rates than any age group of drivers. And, I think, Johnny, you should know that 31% of teen drivers died in 2006 due to drinking under the influence of alcohol.

I’m sorry to sound like I’m lecturing you or anything, but kids really need to know the dangers they pose on the road. I understand that partying and experimenting with booze is, like, generally their main thing, but they should be educated that drinking and driving really should not be mixed together.

So, in choosing what car insurance to take really depends on you. More or less, all car insurance companies pretty much gives the same service but differs only on the quality of the service and the price. To compare car insurance quotes, of course, amount of premium is your first consideration. Then your second order of business is to check if the company is legit and has a license to operate a car insurance business.

Reader’s Question:

How do I avoid fraud and get the best possible deals when I compare car insurance companies and their rates?

Austin

Cambridge, MA

Austin, the most important thing, as far as I’m concerned at least, is for you to talk to car insurance agents and company representatives who are licensed and have good records. The information that would help you verify this is readily available at the official websites of each state. For instance, if you live in New York, you can check New York Department of Insurance online. In Massachusetts, you can contact your own Department of Insurance. Most car insurance companies can give you a quote if you provide personal information and facts about your vehicle, mileage, driving record and location. Be careful, though, I know of someone whose personal and driving information was used for a car insurance policy that turned out to be invalid. Others try to lure you in by offering too-good-to-be-true super-low-priced deals. So, just make sure you are talking to someone legit. Agents, by the way, are required to carry their licenses at all times, so always ask to see it.

After this, you can get information about state you rules and requirements. In Massachusetts, the requirement is 20/40/5 coverage, plus UM and PIP coverage.

Keeping these in mind, you can start to compare car insurance companies, their prices, services and track record.

Reader’s Question:

I have been with my car insurance company for a very long time now and have not seen any decrease in my premiums. If I compare car insurance quotes, can I use them to demand for lower rates from my insurer?

Pete

Pittsburgh, PA

Pennsylvania ranks eighteen among the states that have the most expensive car insurance premiums in 2006, according to the most recent study of the National Association of Insurance Commissioners (NAIC). Residents had to pay an average of $832 to have their cars registered in this state. And sadly, motorists have not seen any decrease in their car insurance premiums ever since. And with the threat of losing our jobs due to the economic difficulty, we tend to resort to downgrading our car insurance coverage just to be able to afford our premiums. This should not be the case especially if you take the time to research on ways to achieve a considerable cut in your insurance payments.

Car insurance companies in Pennsylvania are required to give as much as 60% discount on premiums if the policyholders finish a defensive driving class. This can be taken through the agencies accredited by the Department of Motor Vehicles (DMV) for a minimal fee. Others get multiple policy discounts after they took their homeowner’s or renter’s insurance from the same carrier that provides them with car insurance. Students who get to pay really expensive rates because they are deemed high insurance risks get to qualify for good student discounts if they get to maintain their grade point average at 3.0 or higher. Meanwhile, others employ the Internet to compare car insurance quotes so that they get to know the prevailing prices in their area and use this as basis to request for much lower rates from their insurer.

Reader’s Question:

It has always puzzled me why I do not get a consistent amount whenever I compare car insurance quotes. I mean, I do not even see some kind of pattern. Before I actually purchase a car insurance policy, I have to know what factors decide the amount of the policy.

Eleanor

Omaha, NE

Eleanor, when you get in touch with a local car insurance agent or broker there in your area, they would be able to thoroughly explain these things to you in full detail. But first, let me help you with the things that I already know.

When you compare car insurance quotes from different companies, they will definitely differ from each other. Why?

The first thing is that prices vary greatly from company to company. This is because some company may have some form of specialization, such as military insurance, teenage driver insurance and DUI offender insurance. Others just function with general matters in mind. Automatically, your car insurance needs should coincide with the type of company that you would choose to insure you.

Next, you should know that there are a number of factors regarding you that also affect your car insurance premium. What are these?

Number one is your personal profile. Male drivers have higher car insurance premiums than the female ones. People who reside in urbanized areas have more expensive rates than those who live in rural areas. Teenagers are given higher-costing policies compared to their adult counterparts.

You may be puzzled by these facts, but it is just a matter of probability to be involved in an accident. Studies done annually show that teenagers and male drivers get into accidents more often than their counterparts. On the other hand, it is more likely for a person who lives in a city to get into an accident (unless he does not use his car more often and just use public transit) because of traffic congestion.

Furthermore, discounts are available depending on whether you are a senior citizen, a member of the military, a driver with clean record, or if you are a good student. You just have to ask the car insurance companies which of these discounts may be applicable to you.

Another factor is credit history. Car insurance companies (and actually most companies) are usually in favor of people with good credit history. This serves as some form of evidence of the financial capacity of the person. Thus, the car insurance companies would not see it as such a bad idea to give a lower premium.

To end, I still suggest that you get in touch with a car insurance broker. You can ask any question, and I am sure that you shall be informed.