Tool for Comparing California Auto Insurance

The California Department of Insurance created a tool for comparing auto insurance rates. The premiums shown are based on a CDI automobile premium survey. The results are not premium quotes, but is provided to encourage Californians to shop around for insurance.

The tool asks if you want standard or liability coverage, where you live, your sex, how long you have been licensed, miles you drive a year, driving record for 3 years, and vehicle type. I noticed they do not have many vehicles to choose from, but you could select a vehicle that is most similar to yours.

I ran a few tests to see how rates varied depending on a few factors. I wanted see how much difference driving experience and sex made.

I selected standard, Los Angeles Hollywood-West, Male, 3-5 driving experience, 7,600-10,000 miles, no violations or accidents, Honda Accord.
Rates are high. $2,000 - $7,000.
Rates are very similar for female.

When I changed to driving experience 16-40 years, Rates were much lower. $1,000 - 4,000.

I put 16-40 years driving experience, and 1 At-fault accident and rates go up 1,500 - 5,000.

These are not premium quotes, but good indicators of the differences in premiums charged by insurance companies. The rates did vary depending on the criteria I put in, but I was also surprised how much the rates varied from different insurers, assuming this tool is somewhat accurate.

PIP Insurance returns to Florida

Florida will once again require drivers to carry personal injury protection (PIP) insurance effective January 1st, 2008.

As part of the legislation, insurance companies must notify policyholders how the mandatory restoration of PIP/no-fault will impact them.

If a policyholder fails to maintain PIP coverage, the law requires your insurance carrier to cancel your policy and inform the Department of Highway Safety and Motor Vehicles.

Florida DHSMV may then suspend the policyholder's driver license and vehicle registration.

After the law changed in October, some people chose not to keep personal injury protection insurance, but many opted to keep it. Be sure to check your policy to make sure you have PIP coverage.

http://www.myfloridacfo.com/NoFault/
http://www.nwfdailynews.com/article/10971

Auto Insurance Quotes

Auto insurance rate quotes are quick, free, and a fast way to compare insurance rates. Getting free auto insurance quotes and comparing rates is an easy way to find low cost auto insurance.

Auto insurance companies are competitive. This is good for the consumer, because insurers want your business. Shopping around is a good way to take advantage of this, and it will help you find an affordable price.

Some may wonder what auto insurance company has the lowest rate. Insurance companies use many factors to determine your rate, so it's probably different for most people.

Rates vary depending on several factors and it also varies depending on the company. Some companies may have cheap auto insurance quotes for some people, but for others, it's a different company.

When you compare auto insurance quotes, be sure that the quotes are for the same amount of coverage. Know how much coverage you need to get, before you start to compare rates from companies.

If you have auto and home insurance with one insurance company you may be able to save money. However, sometimes you can get a lower rate by getting auto insurance from a different company.

It's best to do some shopping around and find out what is the better option for you.

Saving Money on Car Insurance, It's No Joke

We've all seen the funny car insurance commercials about saving money on car insurance. Well, I'm here to say it's no joke at all. Shopping around for car insurance can save you a lot of money. Too many times, people just get one other quote, and see some savings and stop shopping around. Sure, you can save some money if you switch then, but you can save more money if you shop around.

If you don't care about saving money, then go with any insurance company you want, but if you care about saving money, then you care about getting a good rate. Some insurers are great for younger drivers and some offer outstanding rates for older drivers. You have to seek out the company that is right for you. The company with the most market share doesn't always have the better rate.

I've read somewhere the usual person gets only 3 quotes when shopping around for insurance, and that was for insurance in general, and may not have been for car insurance. Car insurance it may have been even less. I'd have to say getting 5 quotes would be better. It takes only about 20 minutes or so to get a quote from a carrier, and yes that may seem like a long time, but it's really not.

Since people generally shop for car insurance only twice a year or so, why not spend the proper amount of time getting quotes and comparing rates. Most people don't want to have to think about insurance for very long, but you will be glad you got a few other quotes and you saved some money.

Insurance by the Mile

Milemeter is a Dallas-based startup that will let you buy insurance by the mile and is aiming for a May 1st launch, and has already received regulatory approval in Texas. Other companies have piloted programs that offer discounts for driving-per-mile, but I don't know of any other insurers in the states that have sold insurance by the mile. There may be some, but not that I'm aware of.

Paying for auto insurance by the mile is an incentive to drive less and rewards those that do not drive as much. Why should someone that drives 5,000 miles a year pay the same price as someone that drives 20,000 miles a year. Paying for gas, you pay depending on how much you drive, and so paying for insurance by the mile makes sense.

To determine if you would save money on pay per-mile, you can look at how much you drove last year, which would give you a good idea how much you would be driving the next year, and multiple the cost per mile and how much you drove. Then you could see the differences in price of a regular policy.

In January 2002, Texas became the first state to explicitly permit per-mile insurance. State regulators must approve the type of insurance policies that insurers offer, and in many states current regulations would not allow pay by the mile policies. Currently, there may be other states that permit per-mile, but I don't know which ones.

Texas moves to fix problem with uninsured drivers

Texas has the highest rate of uninsured drivers, at 24 percent.

If you live in Texas it is very important that you also have uninsured coverage since there are so many drivers without insurance.

Meanwhile, the state is going to test a program, to stop uninsured drivers. Through a state database they will be able to identify the uninsured.

Uninsured drivers can get caught when they are stopped for a traffic violation, involved in an accident, vehicle inspection, or when they pay for vehicle registration.

The state will also send out letters to the 4 million drivers without car insurance and warn them to get car insurance.

Similar programs have been tested in other states and they have dramatically decreased the amount of uninsured drivers. The program is going to first be tested in Austin, then in Dallas, and throughout the rest of the state.

Uninsured drivers are not just a problem for drivers without uninsured coverage, it's also a problem for insurance companies. Good drivers typically don't have at-fault accidents, but when an uninsured driver causes an accident, then the insurer that is insuring the good driver has to pay. Thus, causing insurance rates to increase overall.

Good Driver Insurance

Good drivers tend to pay less for insurance, but some insurers may see you as a better driver than other companies.

There are insurers that offer good driver discounts, but insurers have their own methods of determining who are good drivers and who gets better rates, so you should still compare insurance companies.

If you are a good driver, you should get a lower rate. In fact, your rate will likely be lower for pretty much every company. By staying a good driver, your rate may drop even more through the years.

Shop around, because each insurer will very likely quote you a different rate. Insurance companies will still use other factors in determining your rate. The good news, is that not every insurer uses the same factors.

Rates will vary from different insurers. So save money by shopping around and stay a good driver too.

Compare Car Insurance Quotes with Same Coverage

Find the most affordable car insurance by comparing rates. It costs nothing to compare car insurance. Many companies say how much you can save by switching car insurance, but why not compare several auto insurers, so you find a company with the best rate for you.

If you could save five hundred dollars by switching to one company, think how much you could save by getting multiple quotes from car insurance companies. Each company has different factors when setting your rate, so just because one insurance company is cheaper for your friend, doesn't mean it will be for you.

Many things affect your rate, but also the amount of coverage affects your rate. When you compare car insurance rates, be sure that you get quotes for the same coverage. The amount of liability coverage, collision, comprehensive, and PIP coverage all affect your rate.

Comprehensive protects you against theft, if you hit a deer, or natural disasters. Collision is important if you can't risk having to buy a new car. PIP (Personal Injury Protection) is a small amount of medical coverage that will pay up to a certain amount, before your medical coverage pays for the rest.

Comprehensive Auto Insurance

Watch out for deer! Over a million people accidently hit a deer on the road last year, according to this article at USA Today. For accidents such as hitting a deer, you need comprehensive insurance coverage. Collision insurance coverage is not always enough to protect your automobile.

Comprehensive coverage will cover your car when damage is caused by an unknown party or natural disasters. This coverage will also protect you from theft, flood, vandalism, or if you hit a deer. Comprehensive coverage is not required in most states, but it's a good idea to have on your policy. You'll be reimbursed minus your deductible, and be sure to read your policy.

If you see one deer, there may be other deer close by. Deer travel is small groups and are usually not alone. So use your bright lights, (as long as their is no incoming traffic) so you can see deer even if they are off the side of the road. When you see a deer off the side of the road, you should try and slow down, (but be sure there is nobody close behind you), sometimes deer like to jump across the road. Also, remember speed limits are for a reason.

PIP Insurance (Personal Injury Protection)

Personal Injury Protection (PIP) insurance is a type of insurance coverage that covers medical expenses, and other damages resulting in an auto accident, regardless of fault. The coverage may also coverage lost wages up to a certain amount weekly.

PIP insurance is proved by auto insurance companies. PIP insurance is mandatory in some states, especially states with no-fault laws. The amount of coverage required varies by state. This type of coverage will cover the person on the named policy, family, and passengers.

The medical expenses of PIP may be limited, so it's best to also have a health insurance plan, to cover other medical expenses. Usually the limit is around $10,000. This coverage may be required or optional in your state. However, the extra coverage may be good to have even if it's optional. To find out if it's required in your state, check with your insurance state department.

Competitive Massachusetts Auto Insurance

For the first time in almost 30 years private insurers in Massachusetts are allowed to set their own rates. Under the old system, the state set one rate for all insurers. Massachusetts was the only state that regulators set rates and not the market.

While some people liked the old system, I think consumers will simply go to the insurance company with the lower rates. Apparently the average rate cuts will be 7.7% this year and 46% will drop by 10% or more. I believe this is the best thing that has ever happened for auto insurance in Massachusetts.

* USAA has planned to reduce their rates by 15% on April 1st, if the rate reduction is approved.

* Electric Insurance company filed for a rate reduction of 30% decrease for 5% of their customers, who are good drivers.

* Liberty Mutual lowers rates on average by 10.7%, and will reduce rates by 35% or more for some drivers.

* Hanover Insurance Group plans to lower it's rates by 30% or more for its best customers, and reduce rates by 20 percent for about 40,000 of it's customers.

Are we seeing a trend here? Yes, good drivers are now being rewarded. Consumers can now shop around for auto insurance quotes and look for the best rates.

Competition is great for the market. Insurance companies are used to setting their own rates, and now the auto insurance industry in Massachusetts will become a lot healthier.

AAA of Northern California lowers rates 6.5%

California Insurance Commissioner, Steve Poizner, approved a major auto insurance rate reduction of 6.5% for AAA of Northern California which will result on $100,536,590 in savings for policyholders according to the announcement at the California Department of Insurance. AAA of Northern California is the sixth largest auto insurer in the state, insuring almost one million drivers in California.

Policyholders can expect to save an average of $106 per policy and the new rate goes into effect December 15th. More than 1/2 a million policy holders are in the San Francisco Bay Area and approximately 156,00 policyholders in Sacramento area.

AAA has also filed to become 100% compliant with the auto rating regulations almost one year before than the mandated deadline. Under the new regulations, rates will be based on driving record, number of miles driven, and years of driving experience. The old regulations were influenced by other rating factors such as marital status, gender and zip code.

AAA and all other auto insurance companies that have complied with these new rating factors, prior to the deadline, have been applauded.

Average Car Insurance Rates by State

The rates vary because of states laws, and how many people in the state live in small towns or cities. For example, North Dakota most people live in smaller towns, with less traffic. Keep in mind, if you live in a state with higher averages, and live in a smaller town, your rate will be lower.

The 5 States with lowest average rates: (North Dakota $554, Iowa $555, South Dakota $565, Idaho $583, Kansas $590)

The 5 States with highest average rates: (New Jersey $1,184, New York $1,122, Massachusetts $1,113, Louisiana $1,076, Florida $1,063)

The National Association of Insurance Commissioners (NAIC) recently released this data of the auto insurance rates by states. The research statistics is based on averages in 2005 - for a full year. The national average is $829. Other states are listed in the report at NAIC, which is in pdf format, if you would like to see.

* Also, if you have full-coverage your rates will be higher than the average, since not everybody has (collision) full-coverage.

How to Lower Your Auto Insurance Rates

Auto insurance companies all have their own way they calculate your rate, but here are some general ways they calculate your rates & ways you can lower your rate.

* Your driving record - A way you can have a better driving record is to drive slow, always be alert, and don't get in any accidents.

* Where you live - People living in cities have a higher rate, so you may want to consider becoming a farmer and moving to a small town.

* Your age and gender - Not much you can do about your gender and not much you can do about your age. The good news is the older you get, the lower your rates will be.

* Your marital status - It's been shown that single people file more claims, thus married people have lower rates. You can start looking for a wife or a husband and you can get lower rates.

* Prior insurance coverage - Pay your insurance bills on time and don't get cancelled for non-payment. This can effect your rates in the future.

* Vehicle use - The more mileage you have on your car, the higher rates you will have. So you may want to consider car-pooling to work or taking public transportation.

* Your type of vehicle - It's been shown that sports cars and luxury cars file more claims, and more expensive claims. You want to drive a safe car, but you may want to consider driving a vehicle not so high profile.

Maybe not all these tips are practical, but the best advice is most likely: Shop around and compare auto insurance quotes. Keep the auto insurance market a competitive place and reward the most affordable company with your business. Also be sure they are a reliable company.

Auto insurance rates in Michigan

Auto insurance rates are high in Michigan, but there may be hope for the state to lower the costs, according to Free Press. Currently people can spend $4,000 a year on auto insurance in Detroit. Michigan is the only state that mandates unlimited lifetime medical benefits for those injured in auto accidents. Legislators have introduced two bills - one that would allow drivers to take a minimum $250,000 of personal injury protection. Policy holders could still choose unlimited coverage. The other bill would create a fee schedule for auto insurers paying for medical treatments. New York currently provides the second highest minimum PIP coverage at $50,000. If legislators can approve these bills, drivers in Michigan will likely have lower rates.

It always seems to me, the fewer the mandates required, the healthier the insurance market is in general. People have free choice, insurance costs less. Everybody wins. When you compare states with more mandates compared to states with fewer mandates there is a rather large difference in the costs of the policies. Every state has the right to have unique laws on insurance, but if affordability suffers as a result, they should be less different than their neighbor states. I think the bills proposed will be good for Michigan.

Auto Insurers' Teen Monitoring Devices

Several auto insurance companies have come out with teen monitoring devices that allow parents to get text messages or emails when their children drive too fast, hard breaking, swerving, and other risky behavior. There is a small camera installed in the car. In some of the programs, parents can monitor the location of the car. The insurers believe these programs will create better teen drivers. Below is a review I've written of each program after having visited the programs' websites. The programs have similarities and differences.

Teen Drivers' Programs:

The Teen Safe Driver program is for American Family Insurance customers, they developed the program in association with DriveCam, Inc. The video and audio camera only captures risky driving behaviors. Reports are then sent to parents for review online. The monitoring device does not enable parents to track their teens' whereabouts. The cost of the program is free for a period of one year.

The program for Safeco customers is called Teensurance. In this program, you can know the location of your teen. You can set notifications for boundary, curfew, destinations & speed. You can locate the vehicle in real time, get real-time messages sent to your phone, and other options. The cost of the program is 14.99/month.

AIG has recently launched the AIG Teen Driver Program and have partnered with MobileTeenGPS. This program has speed alert, current vehicle location, if the car is at an unapproved location, and a find vehicle now option. Alerts can be sent to your cellphone, email, you can call toll-free, or login to the website. Currently this program is free to set up, and monitoring is free for the first month, and then 19.95/month.