Auto Insurance in 2014

Finding Auto Insurance is never fun.

However, in the year 2014, getting a solid auto policy isn’t as impossible or annoying as it once was.

Thanks to the power of the internet, it is now much easier to get quotes from different companies.

What to Look For

For the meantime, let’s discuss auto insurance and how you can secure the best insurance coverage for your vehicle without suffering costly monthly premiums. Searching for auto insurance is a lengthy and complex process. The reason behind such complexity is mainly because of the variety of choices you can select from. Auto insurance plans are written off in millions each year with more than a hundred auto insurance firms providing them. In addition, coverage features immensely vary depending on the policyholder’s needs and circumstances. So which auto insurance should you purchase?

Finding the most suitable auto insurance coverage should be one of your priorities. You should aim for coverage that is comprehensive and useful without the considerable bills pouring in each month. So what coverage features should you opt for? If you are rolling on a tight budget and need to trim your insurance up til the last bit, then you’d want to know the basic and most important coverage features from the lot. Today, countries stringently mandate drivers and vehicle owners to have, at the least, basic auto insurance otherwise penalties are dealt to the uninsured or under-insured driver.

Liability coverage is one of the features you should look for. In the event of a vehicular accident or collision, the one at fault will be filed against liability at court. If you are found at the liable side of the courtroom, you’re looking to pay a hefty sum of money to close the case. This is where liability coverage rescues you from absolute financial mess. This type of coverage will offer financial protection against cost of any damage that happens to another vehicle from an accident you’ve caused. When purchasing liability coverage, make sure the maximum support will suffice to replace a new car if required. In addition, bodily harm liability coverage must be enough to support payment for medical bills and therapeutic expenses.

Collision coverage is another important feature mandated by nearly all states in the US as well as other countries. It is one of the most common features that will be covering your own vehicle in the event of a collision that you were found at fault. Along with collision coverage, consider a comprehensive insurance as well, which protects expenses of auto repair and replacement caused by an instance other than an accident, such as theft, flood, fire or earthquake.

Uninsured driver coverage feature also plays a key role for any auto insurance. It covers the expenses of the driver and his/her passengers in case the accident was caused by someone who has inadequate or no auto insurance. The coverage is subdivided into bodily harm and property damage.

Cost is an inevitable factor that can compel or repel prospecting buyers. If you are searching for auto insurance, take the monthly premiums and quotes as one of your primary criterion. However, avoid making a decision based solely on the price of the insurance as this may result in inadequate and poor quality coverage.

Should I Bundle?

Before we get into the semantics of bundling auto insurance, let me ask you a couple of questions. Does your insurance agent know your first and last name? Can you reach him or her on the phone or do they prefer a text or email message? Have they ever suggested you might be able to get some juicy discounts by bundling your cars, homeowners, and all other insurance policies you have? If not, perhaps it’s time to look for another insurance company and agent. On the other hand, remember the Old Italian saying: “you won’t get it – if you don’t ask.”

But let’s not kid ourselves. The name “insurance” has been a thorn in most people’s side since they were 18 or older, and had to pay their own way when it comes to any kind of insurance. When you drive; you need it. Buying a home or condo you can’t get loan without it. Insurance is like an octopus; its tentacles are everywhere, which is even more reason why you can save money if you bundle all your policies; think Easter and putting all your eggs in one basket. Package discounts are most time offered to customers who can insure more than one thing. The most frequent bundling is when home and auto insurance are married together; those are just two references, but you can do it with most anything.

Think of “bundling” this way. At the grocery store the steak sale says buy three, get one FREE. That makes good sense, so why not apply it to your auto insurance? And if you’re using one company for your vehicles and another for home and content insurance, stop genuflecting to one! Notify them both you plan to bundle stuff, and let them fight it out among themselves as to which company will ultimately have the best deal. And don’t let personal feelings enter the picture, either. Using this method you’ll be a “happy camper” knowing that one of these companies will be providing a nice “bundling discount.”

However, there is a “cloud” hanging around the “blue skies and green lights” picture we have just painted. Your chosen insurance provider is not obligated to tell you about any of these future discounts you may get by bundling home, vehicles, dental, vision, health, motorcycle, boat, content insurance, and life with them. Oh, sure, they may have a bundling policy that would work in your favor but that doesn’t mean they have to tell you about it unless you ask! (Refer to paragraph one) Actually, if it gets to the point of having to ask about any bundling discounts that would save you money, maybe you have chosen the wrong company.

In the final analysis, when you bundle your auto insurance with all your other insurance needs, make sure you inquire with the agent to verify that doing this will not lessen your current policy coverage amounts. The bottom line is, bundling should be simple; one company, and saving money with a smile on your face every month. You will also find that you’ll be spending less time sorting through all that tedious policy paperwork you hate doing. And since the old mantra that says: “time is money” is true, bundling all your insurance policies, will let you score a touchdown.

What Effects the Price?

Shopping for auto insurance can see a little over whelming sometimes, especially if this will be your first time having to find a policy that suites your needs. There are factors that determine how much you will have to pay. Some of these factors are out of your control and there is nothing you can do to change them. However, there are some factors that you can control and will have an impact on how much you will have to pay out of pocket.

The Type of Car You Drive

One of the factors that you can change is by the type of car you are trying to get coverage on. Factors about your vehicle, such as how popular it is with thieves, its age, what safety features are present, and how it rates in an accident, will have an impact on your overall cost. Newer cars typically will have

Driving Habits

How you drive is another factor that you can control and can have an impact on your insurance rates. Having several traffic tickets in a relatively short period of time can have a negative impact as well. Additionally, auto accidents can also impact your premiums. In other words, the safer and cleaner your driving record, the better and lower your insurance rates will be.

Where You Live

I major factor that most people may not realize is the state in which they live. Each state regulates the rates for auto insurance. This in turn means that the insurance company has to follow any regulations the state has put in place for auto insurance. It is not practical to move from one state to another to save a few bucks on your auto insurance so this is one factor that can be either changed by you or not.
Just for your general information; in 2009 the state with the lowest average auto insurance premium was North Dakota which was $510. On the other hand, the highest state in 2009 was D.C. at $1,128.

How You Use your Vehicle

What you use your vehicle for on a daily basis is also a factor on how much your insurance will cost you. Cars are placed in categories based on what they are used for, work, business, pleasure, or farm use. If your vehicle is just used for pleasure, then the rates will typically be lower than if it were to be used for business. Pleasure use vehicles usually have the lowest rates while vehicle used for business are typically the highest rates. Insurance companies will determine what category your vehicle falls in off the number of miles you drive in a year. Their logic is pretty simple, the more you drive your car, the higher the chance of you being involved in an accident.

Your Age and Gender

Obviously you cannot control how old you are or what sex you are. But these are two factors insurance companies use to determine how much your premiums will cost you. The insurers do not do this to punish you for being certain age or sex. They base the rates off of countless statistical data that show what ages and what sexes are involved in accidents.

Check with your local auto insurance provider to see what the state regulations are. There are as many insurance providers as there are types of vehicles so take your time and shop around.