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.
Tags: auto insurance co, auto insurance information, auto insurance company, auto insurance
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.
Tags: auto insurance co, auto insurance company, auto insurance provider, affordable auto insurance
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