Reader’s Question:

What kind of policy should I look for from an auto insurance company for a used vehicle here in Virginia?

Maureen

Burke, VA

Good question, when looking to get coverage from an auto insurance company it is important to take note of the advantages when insuring a used vehicle. Unlike a brand new car, owners of used vehicles need not buy a policy that has very high comprehensive and collision insurance. In fact, owners of used vehicles may opt to drop collision and comprehensive insurance or keep it to a bare minimum since filing a claim with an auto insurance company with this kind of vehicle would not be cost effective. Your policy may have a $500 deductible for comprehensive or collision but if you have a car that is around $1000only, then you would save more in the long run by having damages on your vehicle fixed out of your own expense. If you would be getting minimal comprehensive and collision you could also increase your deductible to get much lower rates that will make for cheap auto insurance.

You would need to still have adequate liability insurance coverage, as per the Financial Responsibility laws of the state of Virginia. Your policy should have at least 25/50/10 worth of coverage purchased from your auto insurance company. That would mean $25,000 for each individual you injured in an accident, $50,000 for everyone you injure and $10,000 to cover for liability due to property damages. Make sure to shop around for the best rates online.

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Reader’s Question:

Would an auto insurance company give me discounts based on what kind of job I have here in Pennsylvania?

Kyle

Bethlehem, PA

Technically yes, an auto insurance company can give you discounts based on what kind of job that you have. But there are a few ways to answer and clarify this question more specifically. Auto Insurance Companies can grant you discounts if your job has a low probability of exposing you to auto insurance risks or car accidents there in Pennsylvania.

Another reason that a car insurance provider can give you discounts based on your job is if you are a member of the military, national guard or coast guard. Professionals such as engineers, doctors and teachers, while not getting a discount directly, tend to have lower rates as long as they have a good driving history. Being part of a professional group or certain club memberships also have discounts as part of their perks. Those professionals or individuals who have attended attained higher levels of education are generally considered to have lower levels of risk by auto insurance companies.

Aside from your job, did you know you can get other kinds of discounts as well? Taking state accredited defensive driving discounts is one of them, installing additional safety measures on your vehicle (Anti-lock Breaks, Air bags etc.) can also help make for cheap auto insurance. Undoubtedly, one of the best ways to get lower rates is to use auto insurance portals like this one that not only educates you on ways to get the most out of your policy, but also allows you to compare auto insurance quotes between different carriers, helping you find the best rates available.

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Reader’s Question:

What kind of policies do auto insurance companies offer? I’d like to know more before I jump into getting coverage here in New Hampshire.

Tim

Nashua, NH

These days auto insurance companies offer many kinds of car insurance policies so it would be best to understand first how they work to easily identify the right kind of auto insurance for your vehicle there in New Hampshire.

Full Comprehensive Coverage
This is the kind of policy that you would be required to get if your car is being financed by banks or lenders. As the name indicates, this provides a full range of protection against financial loss in case your car gets totaled or damaged while you are still paying for it. Most of the time this kind of policy has a “No-Fault” provision but cheap auto insurance this sure is not.

Third Party Auto Insurance
This can further be subdivided into to kinds, Third Party Basic and Third Party, Theft &Fire. The first one is basically just coverage for liability you may incur if you cause an accident and subsequent injuries or damages to property. Most state would require you to purchase a minimum required level of liability coverage (25/50/25 for NH, the numbers represent amounts in thousands of dollars for liability on injuries per person, for all people injured and for property damage respectively). Third Party, Theft & Fire includes additional protection in case you lose your car due to fire or car theft.

Specialized Auto Insurance
Offered by auto insurance companies to those who own classic, performance-type or luxury type vehicles. Relatively cheap auto insurance compared to what you would get from a general insurance provider for these kinds of vehicle.

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Reader’s Question:

I have two cars here in Maryland, one is a pick-up that I’ve had like forever, and a brand new, smaller vehicle that for some reason costs me more to insure with my auto insurance company. Could you enlighten me on this?

Chino

Baltimore, MD

A lot of people gets surprised to learn that, most of the time, they won’t pay the same rate for two vehicles even if it is under the same auto insurance company. It would be beneficial to know about the different factors that affects your auto insurance rates there in Maryland to understand why rates on your two cars are different.

One of the main reasons why your other car is costs more to insure would be due to its inherent risk of getting involved into accidents. Statistics show that smaller vehicles actually gets into more accidents and collisions. Ironically, because most of those driving a small vehicle are confident think that it would be much easier to maneuver such a car (and therefore avoid accidents), they are not as careful as they would when driving a hummer. So the higher the risk, the more premiums you will be charged.

Another factor would be the popularity of your vehicle among car thieves. The safety rating of your vehicle. Laws of Physics dictates that smaller framed cars absorb the brunt of the force in a collision with larger vehicles or large objects, increasing the risk of death or injuries to passengers and total vehicular loss. I highly suggest that you inquire about (or insist on) multiple vehicle discounts on your auto insurance policy to help offset the added cost of the secondary vehicle.

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Reader’s Question:

Can I get auto insurance even if I only have a restricted driving permission here in Hawaii?

Gus A.

Ewa, HI

It is possible for you to get auto insurance coverage even with a restricted license or driving permit but it would still depend on how lenient the auto insurance provider’s policy is regarding this matter. Normally, an auto insurance company would be very reluctant to do this until you get your license back.

The first thing you would want to do is to either talk to an experienced auto insurance agent that can help you find a provider who would be willing to offer you coverage, or if that is not an option, you can use this web page, also known as an auto insurance portal, to get rate quotes from many carriers so that you can compare rates and premiums to get the most affordable deal.

One you are granted coverage, here are some additional information and tips to help you get your driving record back on track.

1. Take defensive driving classes which will help you become more skilled in keeping yourself (and your passengers safe) while driving. Talk to your provider first and ask for a list of accredited driving schools there in Hawaii so that you are sure to get the discounts.

2. Consider increasing your deductibles, this will lower your premiums. Also consider driving a less expensive vehicle since it would cost less to insure.

3. Follow the rules. You don’t want anymore violations (even minor ones) at this stage. Further violations would not only prolong you from getting lower rates in the future, it may actually cause your insurance rates to go further up.

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Reader’s Question:

Is it true that an auto insurance company would charge me higher rates here in Alabama if I have a small hybrid-vehicle?

Saundra F.

Decatur, AL

You may be surprised to find out that auto insurance companies would probably charge you higher rates there in Alabama for driving a small vehicle. But why? You ask. The first thing that people have in mind about smaller vehicles is that they are generally less susceptible to accidents and collisions. Statistics of car accidents over the recent years, however, show a different trend.

There are numerous factors that can cause this kind of trend. First, occupants of smaller vehicles are more likely to get seriously injure or worse, get killed in a car accident or in a collision with larger, stronger built vehicles. Also, drivers tend to take lesser precaution on the road due to the apparent nimbleness of small vehicles, therefore getting involved in more car accidents.

Since auto insurance companies run their business based on risk capitalization, the higher the chances of you getting into a car accident, injuring someone or getting yourself injured (and would therefore make you file auto insurance claims), the higher you are seen as a risk and the more the auto insurance companies would try to compensate for this by charging you higher auto insurance rates.

Now this doesn’t mean that all small vehicles are dangerous. There are also a lot of models nowadays that have excellent safety ratings on their vehicle, which should be the consumer’s focus whenever buying a new vehicle. There are many auto insurance and car safety portals Online that would give you an idea regarding manufacture and model safety ratings & other helpful information.

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Reader’s Question:

What are the criteria of a good auto insurance company? I want to make sure I choose a good insurance provider for my car here in Illinois.

Elaine

Decatur, IL

This is a very good question. Auto insurance is a big industry and lots of companies, big and small, would want to get as much slice of the insurance market as they can. We all know that competition could only mean good things for customers, but what if one happens to pick the “bad apple” among the group? Don’t worry, here are a few tips and information to help you choose the best kind of auto insurance company.

1. Understand how much auto insurance you need. Before you can pick the right kind of auto insurance provider, you have to know first what kind of auto insurance policy you will need there in Illinois. Every state would have a minimum amount of liability insurance coverage requirement as mandated by their financial responsibility laws. A good insurance company would tell you about that too.

2. Find out how well a prospective carrier handles their policyholders claims. The ease and efficiency of claims handling can make or break an insurance company’s reputation, and you don’t want to learn that the hard way. There are many agencies & websites, like Standard & Poor, that provides free service ranking information between carriers. There are also lots of consumer websites that would give you actual customer testimonials of good and bad experiences for each company.

3. Quality customer service. Sounds obvious but people actually put heavier emphasis on pricing first. It is much better to pay for a bit higher rates if it means you have a stable & reliable carrier that would be there for all of your needs.

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Reader’s Question:

Is it a good idea to buy car insurance policies with six-month renewal intervals here in Michigan?

Carlyle

Detroit, MI

If you are good driver then this might be a great idea but even so, agreeing on short auto insurance coverage periods could turn out to be a double-edged sword. What you have to understand is that insurance is not only there to give you a huge amount of money every time you get in trouble, it is a business of managing risks and everyone’s risk potential changes from time to time. In your case, by going with shorter car insurance policies, you are allowing the insurance company to re-evaluate your risk (and rates) more frequently. This can mean lower auto insurance premiums if you are able to boast a clean driving record there in Michigan, or it could turn out for the worst if you get involved in even the slightest of traffic demeanors.

Personally, I would not recommend an auto insurance policy that is shorter than a year. Especially for beginners and first-time car owners. It would be so much easier for one’s budget if you know how much money you have to pay on car insurance each year. It also saves you the hassle of having to renew the policy more frequently. For those who are trying to improve on their bad driving records, however, shorter car insurance terms would allow them to enjoy lower rates much sooner. If you do have to go with a six-month auto insurance policy, make sure you understand exactly how and when your rates will be re-evaluated and changed.

Tags: auto insurance company, affordable auto insurance, auto insurance rates, auto insurance