Checklist For When You Compare Car Insurance Rates

If you're looking for car insurance, perhaps the best way to compare car insurance is online. There are several factors you should consider before you buy car insurance.

Type of policy

When you compare car insurance, consider the type of policy you're looking for. Are you going to want comprehensive coverage, collision, or just liability? In general, if your car is more than 10 years old and you have it paid off, you should only opt for liability coverage. Liability coverage is mandatory in most states regardless of the car you drive. You must have this type of insurance in the event you're involved in an accident and are found at fault. Liability insurance covers both personal injury and property damage for the other party, as in up to $50,000 in property damage and $25,000 per person for personal injury. The amount of coverage you need varies by state. Check to see how much you need where you live.

Two other types of insurance coverage are collision and comprehensive. Liability coverage does not cover anything about you personally, or your car. That type of insurance is only to cover the other party for personal injury or property damage if you are at fault. This is where collision and comprehensive coverage may be needed. Both collision and comprehensive insurance protect your car in the event of an accident or other damage, regardless of who may be at fault. Collision insurance covers car accident damage specifically, while comprehensive insurance pays for damage to your car that may have happened because of vandalism or theft, for example. Again, you generally only need either of these types of coverage if your car is under 10 years old or hasn't been fully paid off. You will pay more for this type of car insurance than you will for just liability, though, if you need it.

Your driving record and credit score

When you compare car insurance, of course your driving record is going to come to mind. If you've had a lot of speeding tickets or several accidents, it's going to be tougher to get inexpensive insurance and you probably know this. However, you may be surprised to know that your credit score matters, too. This is because insurance companies look at your level of responsibility in a holistic manner, in that they look at your "whole life" as much as they can. Your credit score tells them whether or not you're responsible in general; if your credit score is poor, it's going to affect the amount of insurance premiums you'll have to pay, and you'll likely have to pay more for the same coverage than someone who is more responsible than you are. Some insurance companies may not cover you at all. If your credit score is poor, spend some time to get it cleaned up as much as possible before you start getting car insurance rate quotes.

Having more than one policy with the same company

When you compare car insurance, a good place to start is with the same company that carries your homeowners or renters insurance. This is because the same company will often give you a break on automobile insurance if you carry more than one type of insurance with them. However, you shouldn't stop there.

Shop online

The best way to compare car insurance quotes between insurance companies is to shop online. Again, although you're going to want to start with the same company that provides your homeowners or renters insurance, you shouldn't stop there. You may still get a better deal from someone else. The Internet has made it very easy these days to comparison shop between companies, and you can often get an instant quote online based upon information you provide to a specific company. This should help you find the best car insurance rate possible.

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How Are New Car Insurance Rates Determined?

It is law that your vehicle be insured. For new car insurance, there are many factors that will determine the insurance premiums you must pay. The type of car you drive will be of most importance. As is your driving history and the amount of options you chose on your insurance. A good way to have a better idea of what range your premiums might be in is to understand what car insurance group your new car belongs to. There are at least 20 different car insurance groups with high performance cars on the high side of the 20 groups.

These are the factors considered for new cars when defining which group they belong to:

?New car values
Price is important especially for cost of replacement and repair.

'damage and parts costs
The likelihood of damage and cost of parts for repair. The lower the costs, the better chance of a lower group rating.

'repair costs and times
The longer the repair time, the higher the cost. Higher cost equals higher group rating.

?Car performance
Statistics show that high acceleration and top speed cars result in more frequent insurance claims.

?Body shells and accident repairs
How available is the basic frame of the car? This is important for certain damage repairs.

?Car security
Good security features help reduce the risk of the car being stolen or vandalized. This can help reduce insurance claims cost and therefore put the car in a lower group.

After considering all of these factors that will influence the rate of your new car insurance premiums, the best thing to do is a little comparison shopping online. Most major car insurance companies will allow you to get a free quote online with no obligation to buy. This allows you to easily compare prices between different car insurance companies. Prices can vary by hundreds of dollars, so it is worth the small effort it takes to do a little internet surfing.

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How A Dui Conviction Affects Your Car Insurance

If there's anything that could drive your car insurance cost sky-high it's a drunk-driving (DUI) conviction.

According to the Insurance Information Institute, there is an alcohol-related traffic fatality in the United States every 29 minutes. Aside from the risk of killing yourself and others, drunk driving carries with it serious penalties from your car insurance company.

Car insurance companies may check your motor vehicle record only once every three years or when you're applying for a new policy. It's possible that accidents, tickets and DUIs may never make their way to your official motor vehicle record. However, if your insurer does discover your DUI and classifies you as a "high-risk driver," shopping around at renewal time is the best strategy, as car insurance rates will vary greatly among insurers. On the other hand, a rate hike may be the least of your problems; your policy could be cancelled or nonrenewed, especially if you are currently in a preferred car insurance rate class. Then you'll be forced to look for new car insurance with the double-whammy of a DUI and a cancellation on your record.

Laws regarding DUIs and car insurance coverage vary by state. Most states require DUI offenders to get a form called an SR-22 from their auto insurers, so you can't hide. This form proves to the DMV that you carry liability insurance and removes your license suspension. An SR-22 also requires your insurance company to notify the DMV if it cancels your auto insurance for any reason. You'll likely have to file proof of insurance for three � sometimes five � years with your state's DMV.

SR-22 laws

Delaware, Kentucky, Minnesota, New Mexico, Oklahoma and Pennsylvania don't require SR-22s, but if you have an SR-22 and then move to one of these states, you must continue to meet the requirements of the SR-22 state where the offense was committed. New York and North Carolina don't require SR-22 filings at all. In some states there is a fee for SR-22s. (Source: Progressive)

Some car insurance companies don't even offer SR-22 policies, so you may be nonrenewed or cancelled because your company can no longer provide what you need.

Insurers can miss DUI convictions

It's possible that your insurance company will never find out about your DUI conviction if you don't have to get an SR-22. A June 2002 study by the Insurance Research Council revealed that as many as one-quarter of driving convictions never end up on motor vehicle records due to lack of shared information between courts and motor vehicle departments, or because a conviction has been erased through alternative means, such as driving school. If you get your charge reduced in a plea bargain, or have a limited license suspension, such as 30 days, it's also very unlikely your insurer will find out about your conviction.

If your insurance company misses the conviction at the time it happens, it may still have a few years to raise car insurance rates if the DUI is discovered later.

Your ultimate destiny rests with your car insurance company.

For example, State Farm's action depends on which subsidiary you're with. The insurer reviews rate-increase decisions on a case-by-case basis. If you have a preferred policy with State Farm Mutual Insurance Co. and receive a DUI, State Farm will likely move you into State Farm Fire & Casualty, which is its standard-policy company for riskier drivers and higher car insurance rates.

If you're with Progressive, you will not face nonrenewal or cancellation because of a DUI, but you may face a rate increase. Progressive also reviews car insurance rates on a case-by-case basis, with multiple factors such as age, gender, driving history and your vehicle model going into your rate.

It doesn't end there. Your DUI conviction will follow you if you apply for life insurance and could affect your premiums there, too.

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How To Find Ultra Cheap New Car Insurance In No Time

It would be of the utmost essence to get cheap new car insurance due to today's financial crisis, not to mention the sky high prices in petrol. Because of these factors, it would be smart to search for various other ways in which you can save money on costs related to cars like car insurance. One may think that companies of car insurance are the ones holding all the power and authority when it comes to deciding premiums and rates, but this isn?t true. One can actually manage tons, if not all, factors which decide the costs of insurance ? from what kind of insurance policy and which company you choose.

Three easy ways exist on how to get ultra cheap new car insurance:

1. Compare several low quotes that you can find.

One widely-known fact states that insurance excesses and premiums vary significantly from one company to the next. Therefore, it would pay to do some investigation when it comes to insurance policies so you can save more. However, just because an insurance policy is cheap does not mean that it will give the perfect settlement when it comes to coverage. Because of this, you should always opt for packages with the greatest coverage and widest rates. Cheap new car insurance would be of no use to you, if the policy itself does not meet your requirements of finance or your state's requirements of insurance. Ideally, comparisons will be made whenever a primary life change occurs. Such proceedings would include marital status changes, driver or child additions, home moves, or new car purchases. These changes could then make influence which cheap new car insurance you are eligible for.

2. Get a better driving record.

Having a great driving record with no road accidents or traffic violations whatsoever would be your greatest bet to secure cheap new car insurance. The most important thing that insurance companies look when it comes to drivers for would be the ones with the lowest risks. Therefore, drivers who have untainted driving records will be of top priority at all times.

3. Take insurance into consideration while choosing which car to buy.

Your car's type and model could directly impact your new car insurance. If you want to buy a brand new car, it would be smart to do some research on the insurance costs of the car you want to buy.

Insurance companies tend to consider numerous important factors when determining rates and premiums of cars, such as the car's type, model, safety features and class, as well as whether the model and type would be a primary target for robbers.
After making a list of potential cars to buy, you should contact your current insurer and try to get cheaper coverage quotes on them for cheap new car insurance at the same time.

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