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Posts Tagged ‘car insurance’

Newly Licensed Drivers Cause 77 Percent Family Insurance Hike

First-time driver pays 18 percent more going it alone.

by on Aug.10, 2015

As if buying the car isn't pricey enough, adding a 16-year-old driver to a family policy makes it jump an average 77%.

For 16-year-olds few things are as exciting as getting their first car – and few things are as expensive as insuring that first ride either.

As if buying the car isn’t costly enough, parents of a new driver can expect to see a huge increase in their insurance premium if that newly minted product of driving school is simply added to the family policy: 77% on average.

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If that teenaged driver decides to go it alone, it’s 18% higher than just being added to the family’s plan, according to insuranceQuotes.com. (more…)

Insurers Overcharging Low-Mileage Drivers, Consumer Group Claims

Link between mileage and claims largely ignored.

by on May.22, 2015

Despite being at a lower risk of crashing, study finds low-mileage drivers are over-charged.

Even though they tend to file significantly fewer claims, a new study says auto insurers typically fail to give discounts to motorists who clock low mileage.

Only State Farm, among all the major auto insurance companies, routinely provided a discount for those who put on about 5,000 miles a year – roughly a third of the national norm – according to the study by the Consumer Federation of America.

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“The failure of most large insurers to adequately reward low mileage especially harms lower income and older drivers because they drive the least,” said Stephen Brobeck, CFA’s executive director.

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Maine is Cheapest State for Auto Insurance, Michigan the Most Expensive

Laws often matter more than fraud and insurance claims.

by on Apr.14, 2015

Your record matters, but where you live may have an even bigger impact on what you pay for insurance.

While it might not get you to pick up and move, a new study reveals a big gap in what you’ll pay for auto insurance depending upon what state you live in. Maine is, by far, the cheapest place to get coverage, while you’ll pay nearly twice the national average if your car is registered in Michigan.

A number of factors influence the insurance rates a motorist will pay, even for two motorists driving the same vehicle, noted website Insure.com, which averaged rates for the 20 best-selling vehicles across the country, comparing rates from six major insurance carriers.

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“The car you drive matters, of course,” said Insure.com consumer analyst Penny Gusner. “But where you live usually matters more.”

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Single Claim Can Bump Up Yours Insurance Costs By 76%

Two claims, finds new study, could double annual insurance bill.

by on Jan.27, 2015

It may be cheaper to pay out of pocket than to file a claim, in some instances, warns a new study.

That fender-bender could be more costly than you expected, according to a new study. Putting in a claim with your insurance company could lead to as much as a 76% increase in your annual premium, depending upon where you live, with the average motorist’s insurance bill climbing by 41%.

How much you’re dunned will depend upon the type of claim, but a second collision could nearly double your bill, according to a new report by insuranceQuotes.com.

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“Many consumers underestimate the consequences of making claims because they can affect your rate for years,” said Laura Adams, a senior analyst for the website.

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Asking about Filing a Claim Can Raise Insurance Rates

Homeowners can get rate hike as well.

by on Dec.15, 2014

Filing a claim on your auto insurance can make the rate rise as much as 67%.

Before filing that claim on your insurance, it might behoove you to think long and hard about what the financial ramifications of even discussing a problem with your insurance agent may bring.

According to a report from InsuranceQuotes.com, making a claim on your car insurance can raise your rate significantly: 38% is the national average, but in Massachusetts it can go up 67%.

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However, it’s not just filing a claim that can jack up your rate. In some states, just discussing a claim gives them the right to increase your rates, said Laura Adams, InsuranceQuote.com analyst. (more…)

The Least and Most Expensive Metro Areas for Car Insurance

Motorists get slammed in the Motor City.

by on Sep.15, 2014

Densely populated regions often have the highest insurance rates due to more frequent crashes.

It may be the Motor City, but driving there comes at a steep cost – motorists in the Metropolitan Detroit area paying the highest premium for insurance in the country, according to a new study.

On average, a motorist in the Detroit area will pay 165% of the national average for auto insuance, according to research by Quadrant Information Services. Those in the sprawling New York metroplex come in just behind, but they pay a mere 36% more than the average for motorists across the country.

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On the flip side, drivers in the region around Charlotte, North Carolina are paying an average 43% less than the national average for car insurance, noted InsuranceQuotes.com, the website that commissioned the study.

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Simple Ticket Can Double Insurance Rates

Even minor infractions can result in major hikes.

by on Mar.27, 2014

A simple speeding ticket can raise insurance rates as much as 30% annually.

If you think that speeding ticket you got for going “just five over” isn’t going to have an impact on your insurance premiums, think again. Drivers ticketed for a “minor” speeding violation, such as 1 to 15 mph over, pay an average of 21% more for car insurance.

A report from InsuranceQuotes.com shows that drivers who commit major infractions, such as driving under the influence (DUI), see a major hike in their premiums, minor transgressions can raise rates for as long as three years.

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According to Mike Barry, spokesman for the nonprofit Insurance Information Institute, the study shows how insurers use various driving infractions to assess different levels of risk for individual drivers. (more…)

Insurance Rates Change More Wildly than Gas Prices

December is often cheapest month for insurance, study claims.

by on Jan.30, 2014

Laura Adams, analyst for InsuranceQuote.com, said the key to offsetting month-to-month rate changes is getting multiple quotes.

While most vehicle owners are used to seeing fluctuating gas prices – and trying to find ways to offset them – what they may need to pay more attention to is ever-changing insurance prices, according to a recent study.

Depending upon the month and the state, insurance rates can vary by nearly 50%. Hawaii saw a 47.9% difference between its cheapest month, December, and its most expensive month, March, last year.

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Wyoming (39.7%), Washington, D.C. (35.3%) and Maryland (34.8%) were next in line with the largest variance in rates. Conversely, South Dakota had the smallest difference at 3.7% followed by Arkansas, Utah, Iowa and Kansas, which were all below 6%. (more…)

Filing a Couple Claims Can Double Your Auto Insurance Premiums

It may be cheaper to pay out of pocket, warns new study.

by on Dec.17, 2013

It may be cheaper to pay out of pocket in some instances, warns a new study.

Sure, you’ve had a perfect driving record until now, but a new study warns that putting in a claim on your car insurance can be unexpectedly costly – in fact, you might wind up spending more than what you get back.

A single “at-fault” claim will result in an average increase of 38% in your annual car insurance premium, according to a new study by insuranceQuotes.com, and a second claim could nearly double what you pay, the precise increases varying state-to-state.

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“The biggest lesson for consumers is not to file a claim unless absolutely necessary,” cautioned Laura Adams, a senior analyst at insuranceQuotes.com. “Making a claim for a few hundred dollars doesn’t make sense if your premium is going to skyrocket as a result.”

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Poor Credit Record Can Double Your Auto Insurance Costs

Even an “average” score can raise premiums.

by on Oct.31, 2013

Too many bills? Too much credit card debt? That can impact your insurance rate. Photo Courtesy: InsuranceRates.com

Here’s another reason not to let those bills go unpaid: damaging your credit record can add significantly to the cost of operating your automobile.

A new study reveals that drivers with poor insurance scores pay nearly twice as much for auto insurance as those with excellent scores. Even those with average ratings can wind up paying a premium, according to the report prepared for InsuranceQuotes.com.

“Considering all of the factors that go into car insurance rates, credit is actually one of the easiest to control,” said Laura Adams, senior insurance analyst, InsuranceQuotes.com.

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Insurance scores are very similar to the credit scores that can influence whether you can get a car loan, for example, and what inter rate you’ll pay.  Both are calculated using such factors as credit card balances, late payments and credit inquiries, though insurance companies use a proprietary scoring strategy and are looking to predict the likelihood that you might file a claim in the future.

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