Car Insurance

Want to save money by driving less? Currently, low mileage drivers receive minimal discounts for driving less. You may put half the miles on your car that the average motorist does, but receive only a small discount on your insurance. Environmental Defense promotes Pay-As-You-Drive Insurance (PAYD), an innovative concept that links insurance polices to an odometer rather than just a date on the calendar. PAYD gives all drivers the opportunity to save money while protecting the environment.

PAYD provides financial incentive for driving less; it is expected to reduce driving and congestion by 10 to 12%. Driving less reduces air pollution, toxic runoff from roads, and climate impacts. Additionally, PAYD is expected to reduce accidents; a 10% reduction in driving is estimated to result in a 17% decrease in crashes.

PAYD also makes insurance more affordable by giving drivers greater control over their premium. Under the current system, low-mileage drivers (usually low-wage earners, seniors, carpoolers, bicyclists, and bus riders) subsidize high-mileage drivers.

PAYD links auto insurance policies to mileage by converting a portion of your annual fee into a per mile fee. The per mile fee incorporates all existing rate factors (i.e. vehicle type, driving history). Details may vary among the Pay-As-You-Drive policies auto insurance companies are expected to offer, but the general format will likely be one where you pay in advance for a predetermined number of miles, and either pay more, or receive a rebate depending on how much you drive. (Find out more.)
One way to buy PAYD insurance

GMAC Insurance and OnStar vehicle services have designed a new mileage discount program that will allow motorists who own GM Vehicles with OnStar service to earn an extra discount based on the miles they drive. This program is currently available in Arizona, Indiana, Illinois and Pennsylvania with plans to expand the program to additional states in the near future (read OnStar’s press release).

The On-Star system automatically reports vehicle odometer reading at the beginning and end of the policy term to verify vehicle mileage. Motorists can receive discounts of up to 40% and save hundreds of dollars annually. Discounts are offered to motorist driving less than 15,000 miles a year; the lower the vehicle mileage, the more significant the discount.
What’s happening internationally

Several countries – including, most notably, England – already offer PAYD insurance options. England’s Norwich Union Insurance began offering PAYD insurance to drivers on a limited basis in 2003, and is looking into further developing its PAYD program to meet growing demand. Marketing research estimates that approximately half of all English drivers are willing to consider the possibility of subscribing to a PAYD insurance policy. (Learn more at http://www.norwichunion.com/pay-as-you-drive/index.htm).

Additionally, Japan’s Aioi Insurance has recently started offering PAYD insurance using an odometer-based system. (For more information, visit http://www.ioi-sonpo.co.jp/).
What states are doing

In the past few years, some states have individually started promoting PAYD insurance as an option for consumers. In 2005, Congress reauthorized the federal transportation law called “Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users” (SAFETEA-LU). This law includes a new $3 million per year set-aside for non-toll market incentive projects like PAYD insurance. Eleven states have already applied for funding to study or pilot PAYD insurance policies.

Oregon

The Oregon Environmental Council (OEC) is working to bring PAYD to Oregon consumers. In June 2003 the Oregon legislature passed House Bill 2043 (http://www.leg.state.or.us/03reg/measures/hb2000.dir/hb2043.en.html), which provides $100/policy tax credits to insurers that offer Pay-As-You-Drive pricing. OEC has built a database of potential PAYD insurance customers to show the insurance industry that a market for PAYD insurance exists, and has met with insurance companies to encourage them to offer PAYD insurance. According to OEC, at least one insurance company recently expressed interest in offering PAYD insurance in the state, possibly beginning a program as soon as a year from now. For more information see OEC’S website.

Minnesota

In August 2004, Progressive Insurance began offering a modest PAYD incentive to 5,000 Progressive Direct Customers under its TripSense pilot program. Progressive is currently seeking customer feedback to decide whether to offer the TripSense program on a wider scale. This program will yield important driver behavior data that could advance PAYD efforts. (For more information see Progressive Insurance’s web site https://tripsense.progressive.com/faq.aspx).

Texas

During the 2001 session, the Texas Legislature passed HB 45 (http://www.legis.state.tx.us/BillLookup/History.aspx?LegSess=77R&Bill=HB45), giving insurance companies authority to offer PAYD insurance policies. The state insurance commissioner approved rules regarding mile based insurance rates in January 2002. In 2004, the North Central Texas Council of Governments (NCTCOG) allocated $1.5 million to help fund PAYD pilot programs. NCTCOG recently partnered with Progressive Insurance to launch the Driving Research Study, a two-year initiative that will offer PAYD insurance to 3,000 volunteers. The Driving Research Study will track the effects of PAYD insurance pricing on consumer behavior and air quality. (For more information see NCTOG’s PAYD website http://www.nctcog.org/trans/air/programs/payd/index.asp)

Washington

Washington State Department of Transportation market survey research indicates that offering vehicle insurance discounts based on reduced driving mileage is one of the most attractive incentives to encourage commuters to shift to ridesharing and transit. As a result, King County Metro, the largest rideshare and transit agency in the Puget Sound region, is in negotiations with an insurance company to run a five-year pilot program offering PAYD insurance to some of its 150,000 Transit Pass holders. King County is seeking $2.2 million from the government and partner agencies to fund a statewide PAYD pilot program.

California

This July, California’s Office of Administrative Law approved regulations that would require car insurance rates to be based more on miles driven and on driving records than on the zip code where a driver lives. This action could be a first step towards allowing a PAYD insurance system to be offered in the state. (More information on California’s regulatory change ).

Trying to save money wherever you can is important to us all. Insurance should be no different. Do not assume that your agent knows everything about you and your vehicle. CarInsurance.com goes out of their way to find all the possible discounts that are available to each customer.

Drivers should take advantage of all discounts that many providers offer, that can significantly reduce the cost of car insurance. Understanding discounts and how they can affect auto insurance premiums can help smart shoppers make better decisions about their coverage and possibly save themselves some money in the process.

Read below to identify possible discounts that could help you save on auto insurance this year. Other than discounts, there may be some other ways for you to save on your insurance premiums. We will go over several discounts that can help with your current situation.

First, there are discounts for Auto Safety features. Certain states will give you discounts for anti-lock breaks. Make sure you know if it is two or four wheel anti-lock break vehicle. Automatic seatbelts and airbags are frequently discounted on your insurance premiums. In most states, a defensive driver class discount may apply. If the principal driver usually 55 years old or older has completed an approved defensive driving class a discount could apply. Keep in mind that most states will only approve this class if it is voluntary meaning that it was not the result of a violation or infraction.

Some insurers will give you a discount for having multiple vehicles. In some cases, this will only apply if you have two or more drivers. If you have a clean driving record, meaning you do not have any tickets, accidents or suspensions in the last three years (some companies require five years) then you could be eligible for a safe driver’s discount.

Many companies will reward you with staying with the same insurance company for many years without any accidents reported. They will offer you a renewal discount. It makes sense, you have carried insurance with a company for several years, and have not had an accident, your insurance company likes you and wants to reward and keep your business. Some companies honor you with a discount if you had prior limits on your previous policy. They discount you because they understand you are a better risk.

Conversely, if you do decided to change insurers a proof of prior insurance discount may apply. Most insurers request at least 6 months of consecutive insurance from the previous insurer. If you are a full-time student who meets certain grade requirements and are unmarried and usually under 25 years of age (some states the age is 21) you could be eligible for a good student discount. If you own a home, including condominium, town home, or mobile home, which is used as a principal residence, a discount could apply. Military personnel either currently active or retired from any branch of the US military a discount could apply. If your vehicle is equipped with an anti-theft device, a discount could apply.

You could lower the cost of your insurance in other ways. For people who own older cars, it may not be necessary or cost-effective to protect them with collision and comprehensive coverage. By comparing the book value of your vehicle and the premium that the insurer has offered, you may find that it cost as much for the insurance as it does for the vehicle. If the car is worth less than $2,000, you will probably spend more insuring it than it is worth. The whole idea of driving an older car is to save money, so why not get what is coming to you.

In addition, keep in mind that the type of vehicle you buy could greatly affect your premium. A flashy red sports car is usually going to cost more to insure than a mid sized sedan. This is also true of vehicles that are on the list of most stolen. There are many ways that policyholders can save on their insurance. Knowing more about auto policies and premiums can help consumers take advantage of less obvious discounts while ensuring that they have the appropriate protection for their vehicles. The last way to save is to assume more risk. If you chose higher deductible on your Personal Injury Protection or Comprehensive and collision coverage will lower your premium as well. The deductible is the amount of money you have to pay before your insurance company begins paying the rest.

Understanding how discounts affect your insurance rates is important to save you money.

Visit http://www.carinsurance.com for Discount Car Insurance.

Tim Register is a representative of CarInsurance.com. You can visit CarInsurance.com at http://www.carinsurance.com or contact them at 1-877-327-8728.

CarInsurance.com’s online insurance marketplace gives an opportunity to consumers and to insurance companies. We offer the ability to shop for car insurance online.

Drivers should take advantage of all discounts that many providers offer, that can significantly reduce the cost of car insurance. Understanding discounts and how they can affect car insurance premiums can help smart shoppers make better decisions about their coverage and possibly save themselves some money in the process.

Read below to identify possible discounts that could help you save money on car insurance this year. Other than discounts, there may be some other ways for you to save on your insurance premiums. We will go over several discounts that can help with your current situation.

First, there are discounts for Car Safety features. Certain states will give you discounts for anti-lock breaks. Make sure you know if it is two or four wheel anti-lock break vehicle. Automatic seatbelts and airbags are frequently discounted on your insurance premiums. In most states, a defensive driver class discount may apply. If the principal driver usually 55 years old or older has completed an approved defensive driving class a discount could apply. Keep in mind that most states will only approve this class if it is voluntary meaning that it was not the result of a violation or infraction.

Some insurers will give you a discount for having multiple cars. In some cases, this will only apply if you have two or more drivers. If you have a clean driving record, meaning you do not have any tickets, accidents or suspensions in the last three years (some companies require five years) then you could be eligible for a safe driver’s discount.

Many insurance companies will reward you with staying with the same insurance company for many years without any accidents reported. They will offer you a renewal discount. It makes sense, you have carried insurance with a company for several years, and have not had an accident, your insurance company likes you and wants to reward and keep your business. Some companies honor you with a discount if you had prior limits on your previous policy. They discount you because they understand you are a better risk.

Conversely, if you do decided to change insurers a proof of prior insurance discount may apply. Most insurers request at least 6 months of consecutive insurance from the previous insurer. If you are a full-time student who meets certain grade requirements and are unmarried and usually under 25 years of age (some states the age is 21) you could be eligible for a good student discount. If you own a home, including condominium, town home, or mobile home, which is used as a principal residence, a discount could apply. Military personnel either currently active or retired from any branch of the US military a discount could apply. If your vehicle is equipped with an anti-theft device, a discount could apply.

You could lower the cost of your car insurance in other ways as well.

For people who own older cars, it may not be necessary or cost-effective to protect them with collision and comprehensive coverage. By comparing the book value of your vehicle and the premium that the insurer has offered, you may find that it cost as much for the insurance as it does for the vehicle. If the car is worth less than $2,000, you will probably spend more insuring it than it is worth. The whole idea of driving an older car is to save money, so why not get what is coming to you.

In addition, keep in mind that the type of vehicle you buy could greatly affect your premium. A flashy red sports car is usually going to cost more to insure than a mid sized sedan. This is also true of vehicles that are on the list of most stolen. There are many ways that policyholders can save on their insurance. Knowing more about auto policies and premiums can help consumers take advantage of less obvious discounts while ensuring that they have the appropriate protection for their vehicles. The last way to save is to assume more risk. If you chose higher deductible on your Personal Injury Protection or Comprehensive and collision coverage will lower your premium as well. The deductible is the amount of money you have to pay before your insurance company begins paying the rest.

Understanding how discounts affect your car insurance rates is important to save you money.

Everyone wants to get the cheapest car insurance available don’t they? The cost of running a car now is becoming scary, with the price of gas as it is, and it’s certainly no fund when the car insurance bill arrives to make it worse. What are some things you can do to reduce your car insurance costs?

There are quite a few things, but I’d like to look at car insurance discounts. It is not well known but car insurance companies offer all sorts of discounts to car insurance policy holders. These discounts help reduce the cost of the policy and therefore reduce your car insurance costs.

Although these discounts exist the car insurance companies don’t immediately offer them to you however, and to get them you often need to ask. It is estimated that the insurance companies take millions of dollars in premiums each year which they would not if policy holders got all the discounts they were entitled to.

So here are a few ideas for you about discounts. Remember always to ask if you qualify for these, they vary from area to area and company to company.

No claims or renewal discount. Probably the most well known of all, a discount for having a clean insurance claims record. Over time, up to a certain point, your percentage discount will increase for a clean record.

Anti theft devices. Each year the car insurance companies pay out hundreds of millions of dollars for claims related to auto theft. Anything which reduces the risk that your car will be stolen will reduce their risk that they will need to pay a theft claim. So if you have an anti theft device this may well result in reduced premiums, if you ask about it.

Advanced driver training. A more skilled driver also results in reduced risk of accident. So if you have undertaken an advanced driver training course then this may well reduce your premiums, especially if you are young.

Often with things like advanced driver training and anti theft devices the reduction in premium can, over time, pay for the extra costs involved in getting these things.

Multi policy discount. The insurance companies want more business, and so if you have an auto insurance policy with them, and have a home insurance policy as well, you may well qualify for a discount on both by holding them at the same company.

Multi vehicle discount. Exactly the same as above. Hold policies for more than one vehicle at the same company and you may well get a discount.

Low mileage discount. If your vehicle only drives 5000 miles a year that reduces the risk to the auto insurance company. If you do few miles then let them know and see if you are entitled to a discount.

That’s just a few but I’m sure you get the idea. The car insurance companies will reward things which reduce their risk or increase their business with discounts. But you often need to ask, they don’t always volunteer them.

So when your next renewal comes remember to ask about discounts.

Things to know when shopping auto rates:

Before you call or ask for a quote, have your auto policy in hand. Inform the agent of your deductible amounts and limits of liability, medical payments, uninsured motorist, towing and labor and rental if needed. This way you are comparing exact coverages in comparing premiums.

Don’t be afraid of higher deductibles. Low comprehensive and collision deductibles make up the biggest cost in an auto policy. Example…if you had a 100 dollar deductible on comprehensive coverage and a 250 dollar deductible on collision coverage, lets say this cost you 600 dollars a year. Now by increasing your deductibles to 500 comprehensive and 500 or 1000 dollars on collision, you could save two to three hundred dollars a year. If your car is financed, you need to check with the lender for their limits on your deductibles.

Naturally, no one can know when an accident may occur. When choosing a deductible for collision coverage, please keep this in mind. Weigh the risk and cost factors when choosing your deductibles. Consider if it is cost effective to choose the higher deductible. Ask your insurance agent to quote your insurance rates using the higher and lower deductibles. Compare the saving of the higher deductible over a six month, year or two year period in making your decision. In choosing the higher deductible, you are essentially (self insuring) a portion of the financial responsibility in the event of an accident in which you are at fault.

Multi line Discounts

All insurance companies give discounts for multi line policies. Meaning that if you have your auto, homeowners, life, health or business insurance with the same company, these discounts will be applied to all policies. If you are satisfied with a certain company, it could be to your advantage to have them quote all your insurance needs. Many times you can save hundreds of dollars with multi line discounts.