Reader’s Question:

I am wondering why car insurance companies need to wait for like 4 years or so before they can even consider lowering my car insurance?

Kelly

Dallas Texas

Each violation like parking tickets, at-fault accidents, or driving under the influence is allocated a specific point value. Each violation you make has corresponding number of points added to your driving record. Thus, your record gets worse if you gain more points. Each insurance company has its own way of assessing applicants in such a way that the points on your driving record may or may not have an effect on the rates you pay for auto insurance.

Have you incur violations, your policy may be surcharged. The insurance companies will take in consideration your driving record for the past three years as this is a more precise reflection of your violation history. One may say this is looking into the big picture.

You can avail of many free car insurance quotes as plenty as you want and can plug in different violations and dates to observe how they may have an impact on your premiums.

Reader’s Question:

What are the characteristics of a good and reliable car insurance company in Colorado?

Diego

Denver CO

Spotting the good from the bad apples among car insurance providers may take some sleuthing on your part. Normally, an insured would say a car insurance company is good because its rates are low. But wait, rates are not everything. You may get a good rate from a company that will close its doors six months from now. What good does the low rates give? Nothing.

A good car insurance company in Colorado must have these characteristics: competitive rates; 24/7 availability; helpful customer service; easy claims processing; and good investment rating from different rating agencies. When you say a car insurance company should have competitive rates, this means the company’s pricing is somewhat similar to others. It is not too low nor is it too high compared to others.

Availability is about getting the services you paid for anytime of the day, any day of the week. Usually, insurance companies have online presence now so this is already applicable to most. If the insurance company is not present online, then, it is suspect. What if you got into an accident in the middle of the night and needs to talk to your insurer? This is also related to customer service. It is useless for a company to be reachable 24/7 if the people manning the phones are unfriendly, unhelpful and indifferent. Customers need customer representatives who can truly help.

Claims processing is another important consideration when rating a car insurance company. You do not need a company who will pass your call from one department to another. You need a company who can immediately process your claims. Before you buy from any company, ask for their claims processing protocol.

Finally, check out the company’s rating. If it is on the investment level, then, go for it. If it falls below the B level, don’t buy from it.

Reader’s Question:

How do I find the cheapest car insurance company out there?

Joshua

Dallas, TX

There are a lot of car insurance providers out there, approximately 1,500 of them. Some of them sell directly to customers and others go through brokers and agents. With the competition being as tough as it is nowadays, it wouldn’t be surprising if all of them claim to be the cheapest. So how do you know which one is really the cheapest car insurance company? By comparing quotes, and to do that, you would need to gather a lot of them. You don’t have to go through all 1,500 of them, just the ones that are licensed in Dallas. Unless you do a lot of out-of-state driving, then it would be wise to get quotes from ones that also have licenses in other states.

We can often make the wrong assumption that since we’re looking for the same kind of coverage, we’ll get the same rate wherever we buy it. There can actually be a big difference in the way each provider computes its rates. You may think you’ve found something cheap, but a little more shopping can get you something cheaper. If you push it one last extra mile – who knows – you might actually find the cheapest car insurance company out there with your name on it. So don’t settle for the first quote you get or even just the first few. Besides, it is so much easier to shop for car insurance now because of the Internet.

Reader’s Question:

Is it advisable to buy coverage from a cheap car insurance company?

Liz

Memphis, TN

There is nothing wrong with looking for and buying coverage from a cheap car insurance company. With the way things are going in our economy, who would want to buy from a high-priced car insurance company? Besides, have you ever seen a company advertise itself as expensive? Every one of them will claim to offer cheap affordable rates but there are two ways a car insurance company can be cheap. It can be cheap in terms of price and actually offer the low rates they publicly claim. But it can also be cheap in terms of service.

Let’s say you come across really affordable rates on the Internet. Before you pull out your credit card or check book, you ought to ascertain the terms of coverage first. Regular coverage can sometimes be modified to become a low-priced package by lessening the actual coverage and this can come as a nasty surprise when the unforeseen finally happens. A cheap car insurance company doesn’t necessarily have to be cheap in terms of service. We simply have to be wise enough to do a little research first and check out which cheap car insurance company is actually reliable. Consumer groups and other independent bodies constantly give reviews and rate various providers. It wouldn’t hurt to read through some of them before you press ‘enter’ on that enticingly low quote flashing on your screen.

Reader’s Question:

I just got my driver’s license and am planning to buy a new car. I was wondering how important it is to avail of my own insurance coverage. If it is that important, how can I make sure I’ve contacted the best car insurance company and that I was able to get the best car insurance rate?

Mary

Brooklyn, New York

I’m assuming this is your first car, Mary, so I am very much happy to give you the information you need.

To answer your first question, yes, you have to buy your own insurance coverage before you can enjoy driving your new car. Keep in mind that it is mandatory in your state for every licensed driver with a registered car to avail of car insurance coverage. You wouldn’t like a bad record as early as now.

Making sure that you get to contact the best insurance company and you got the best car insurance rate is a tiresome and time-consuming process but very rewarding in the end–It gives you peace with a promise of security and stability in the roads.

You need to take into account factors that could determine which company is best and reasons that affect your car insurance rate. Getting to know your insurance company is somehow easy with the help of statistic agencies and private companies like J.D PowerRating and A.M Best and Standard and Poor’s rating. They both check insurance company’s services and rates. They collect data from financial policy holders in different states to be able to publish reliable financial strength ratings for all insurance companies. They take into account coverage options, price, after claims handling, customer service and the like to be able to rate each insurance company efficiently. You can also go to your State’s department of Insurance to check published feedbacks on insurance companies. Referrals from friends, neighbors and even coworkers can give you a certain impression towards a certain insurance company. It takes time and effort to find the best car insurance company that you can trust; you just have to do all the research that you need.

Mary, you have to take note that finding the best car insurance company does not end your research. Even if you have already got one, you still have to make sure that you get the best insurance policy that suits you, and it’s a tricky process. You need to know every factor that affects your insurance rates, how you could manipulate them and work it towards your advantages. There’s no need to rush when making a decision in buying your car insurance policy, so take your time, Mary. You have to analyze very well, check if it really suits your needs and never neglect even the smallest detail to get the best insurance rates you want to have.

Reader’s Question:

My car got hit by some guy from out of state. Where do I file a claim? From which car insurance company? How do I go about this?

Nadia

Baltimore, MD

Just file a claim the same way you would in any other circumstance. It doesn’t really matter so much who hit you or whether he is from Maryland, too. You must contact your own car insurance company, and the other party would do the same.

One of the most crucial steps to this often annoying and tedious process is getting all the details on paper. Make notes on what really happened and the extent of the damage to your vehicle. If you could find an eye witness who can verify your own account of the accident, that would be great. Both the police and the car insurance companies would need and ask for this information. Of course, be clear and consistent in telling your story. You wouldn’t want them to think you’re unreliable. Also, file a claim as soon as possible. Should there be any disparity between your story and the other driver’s, the other party’s car insurance company might phone you about this. It would be good to have your notes with you and refer to them as you answer their questions. After that, you can get your car fixed. Most car insurance companies have tied up with repair shops which they have pre-approved. Or you can go to the mechanic you trust. It’s up to you, Nadia.

Reader’s Question:

Which car insurance company offers the cheapest rates?

Paul

Long Beach, CA

Every car insurance company in the United States uses a unique system of rating its clients. So, the only way to know which insurer gives the cheapest rates is by obtaining quotes from each car insurance company in your area.

This is why it is very important to understand how insurers compute for your premiums. Firstly, your credit standing will be checked since companies believe that individuals who have not handled their finances well are high insurance risks. So, you may want to clean up at least the previous month’s financial statements first before getting those quotes. Gender is another factor that goes into the calculation of premiums. Women are generally safer drivers hence are given much lower rates than men. One’s age will also be checked by insurers. Drivers below 25 years old are charged with relatively higher car insurance premiums because the accident rate of this age group is very high. This is also the case with older drivers between 55 years old and above. So, if you plan to enlist teenagers or older drivers in the policy, then you should make them attend driving classes. This way, you get to avail of discounts that could significantly lower your premiums. Also bear in mind that the motor vehicle record (MVR) of those you include in the coverage will be pulled up by the prospective car insurance company. So it would be best that you only enlist those with good driving records for the past three years.

Reader’s Question:

Where can I find the cheapest car insurance company? I’m a single parent, my kid is turning sixteen, and he will soon get a driving permit. It would help a lot if I could save some more money.

Jane

Albuquerque, NM

Yes, we all need to save. We have to sort our priorities, our obligations and our families. The same is true for car insurance. Offhand, we all want to find the cheapest car insurance company for us. But, Jane, it is not exactly the cheapest that you want. In fact, what you need is a car insurance carrier that gives you the best coverage at the best price. In your case, you have a son who is about to get his driver’s permit, and you need to inform your car insurance company about that. That might mean bigger payment on your premiums, but definitely a load off your mind. But then again, some car insurance companies would wait for your son to actually get his driver’s license first before charging you for his coverage.

Although most car insurance companies do not give discounts for single parents, there are a variety of other discounts that you could qualify for, such as being a good driver, a homeowner, or even just for the safety features your car is equipped with. Your son could likewise qualify for a good student discount, provided he is a full-time student, and has a B average or higher. These are but a few of the tips that could save you lots of money and give you the car insurance your family needs.

Reader’s Question:

I am a military man, and I am always on temporary duty. This means that I would not be using my car that often. I know that there are lots of car insurance companies out there, but still I am thinking twice about insuring my car. I might just be wasting my money if I insure it even though I would not be using it. So, my question is: Should I insure my car or not? And if yes, what is the best car insurance company for me?

Richard

Santa Fe, NM

Richard, you may be forgetting that in the state of New Mexico, it is stated by law to maintain a minimum Bodily Injury Liability of $25,000 for every person injured with a maximum of $50,000 for every accident. On the other hand, the minimum Property Damage Liability coverage is $10,000. To help you remember more easily, this minimum requirement is referred to as 25/50/10.

So, you see, it would be against the law if you do not have at least this minimum amount of coverage. And even if it were not required, I think that you would be removing a great deal of protection from your vehicle if you opt not to have it insured. Just imagine how much you would be paying if, while on temporary duty, your car got damaged by fire or something else, like the roof of your garage falling on your car. In the long run, you shall see that comprehensive coverage shall come in handy, as well.

Now, regarding the best car insurance company to choose for a man such as yourself, there are several things that need to be taken into account. First, the car insurance company should be able to understand the needs of a military man. TDY (temporary duty yonder) is part of almost every military man’s life, and the best car insurance company should be able to explain the ups and downs of car insurance in regards to the lifestyle of the military client. Second, you should also be offered some discounts just for the very fact that you would not be using your car very often. Car insurance companies lose money when clients get into an accident. So, in your case, they should be lenient enough to give you lower premiums. To finish, I suggest that you coordinate with your benefits office because they usually have some list of trusted companies, whether for medical attention or for insurance needs. They should also be able to help you in choosing the best car insurance company for you.

Reader’s Question:

Hi there! I hear there are so-called car insurance companies that commit insurance fraud. I’d like to get a good deal, and there are some not-so-popular companies that offer insurance. How can I find out if these car insurance companies are okay?

Guilly

Long Beach, CA

True, a smaller car insurance company may offer good deals to potential clients to gain some market share in the business, but it does pay to do some background checks on a car insurance company before signing up for an insurance policy with them.

You may want to check how your car insurance company is rated by the companies that rate financial institutions. There are several of these, the most popular of which are Standard & Poor’s and A.M. Best. Stay away if your car insurance company is rated C or lower. Try to hook up with a car insurance company that has a rating of B and higher.

You should also look at the costs of the policies they offer. Of course, it has to be a car insurance company that is well within your budget. You might also want to look into forums that discuss different car insurance companies. From there, you get a feel of how they serve their clients and if their claiming processes are too bureaucratic or not. This will help you avoid a car insurance company that may give you a hard time when you need to file a claim against your car insurance policy. Good luck on the hunt.