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Car insurance rates shouldn’t be a mystery. Carriers always look at the same binary metrics when quoting a rate. They can’t ask certain personal questions — like your medical history or financial holdings — but they can home in on other data points that traditionally give them a strong idea of your risk profile.

By knowing exactly what the insurance carriers are looking for, you can position yourself beforehand in order to save money on your policy.

Clean up your credit. Credit scores are a big part of your risk profile. Remember, FICO scores, while helpful to consumers, were originally designed as a tool created by banks to assess your likelihood of defaulting on a loan. The score can also be used more broadly (and subjectively) to determine whether or not you’re a high-risk driver, and therefore more pricey to indemnify.

Look into a group policy.The most common is a collective policy with your spouse and/or your children. Covering three people under one policy is much less expensive than it would be to take out three individual policies. The carriers know that the more customers the merrier, and are happy to give a rate cut to accommodate your group. Group policies can also cover you and your same-sex partner, your roommates, friends, etc. For somewhat old-school industry members, car insurance carriers are pretty open-minded about what constitutes a group for a policy.

Pick the right car. If your car has poor safety ratings and is susceptible to theft insurers are going to charge you more for coverage; Mercedes Benz and Jaguar vehicles often fall into this category. If you’re serious about saving on car insurance seek out safe cars that thieves will have no interest in stealing. The Honda Accord is usually a safe bet.

Shop around. While all insurance carriers look at the same metrics to arive at a quote, most weigh certain factors differently. Some might be extremely keen on your credit score, while others will focus on the type of car you drive. If you don’t like the rate someone quotes you, feel more than free to look around to get a sense of the market. Don’t accept the first offer you get; chances are someone can beat it.

Be female.This one is in jest of course. Nevertheless, women do pay less for car insurance because they traditionally make fewer and smaller claims to carriers. Men also tend to drive more aggressively and there less safely.

The process of arriving at an auto insurance quote is a science, not an art for the carriers. They know exactly which metrics cause a spike or decrease in the rates they will quote. Different carriers quote different prices only because they weigh factors differently. Nevertheless, these are the sacrosanct metrics by which you are judged and if you’re looking to spend up to $25 less each month on car insurance it’s best to focus on them now.

Larry Kuhns is a staff writer at CoverHound, where smart shoppers find insurance.

You ever get that nagging feeling that there is something you should remember to do, but you’re not sure what it is? This can apply to many things in life, but in this case we’re talking about auto insurance. According to Susan Combs, president of Combs & Company in New York City, people “tend to get complacent” with their auto insurance. Reviewing your auto insurance policy annually is a good way to make sure you’re getting the coverage you need at a price you can afford.

Circumstances Change Over Time

Even if you found a good deal on auto insurance when you first signed your policy, circumstances can change. If you overlooked something or made a few errors or omissions on your initial policy, those changes can carryover to the next year. Many insurance companies give you the opportunity to make changes in your coverage once a year. If you assume there is nothing wrong, however, you are not likely to change anything. Some changes that may affect your auto insurance needs include:

• Purchase of new, fuel-efficient car that may make you eligible for certain discounts.
• Sale of a second vehicle that is still listed on your coverage, meaning you are paying for a vehicle you no longer have.
• Additional drivers on your policy may no longer need to be on your policy. This usually includes a former minor who now has his or her own policy.
• No longer driving your car as much as you once did. This could make you eligible for discounts for putting fewer hours on your vehicle.
• Purchase of a new car. If you update to a more recent model year, you could be eligible for discounts since new cars tend to have fewer maintenance issues.
• Discounts you weren’t eligible for at the time your policy started. This typically includes safe driver discounts that you may be eligible for if you had no accidents during the coverage year.

Too Much or Too Little Coverage

A common error people make on their auto insurance policy, according to Combs, is to have too much or too little coverage. If you get auto insurance coverage with the same company that provides your health and life insurance coverage, you’re likely duplicating some of your coverage. You may save money by combining all your policies with a single company. To determine if you have too much or too little coverage, take a look at the types of auto insurance you have and who is covered under your policy.

Coverage Options

Take a look at what type of coverage you have. Common types of auto insurance are: liability, collision, comprehensive, uninsured motorist and underinsured motorist. Additional options include rental reimbursement and emergency road service. When it comes time to consider changes to your policy, look at which coverage options you are using and which you are not. Granted, the purpose of insurance is to protect against the unexpected, but you still may be able to eliminate some coverage options. If you already get emergency road service from a AAA membership, for example, there is no need to have the same coverage with your auto insurance.

Who Is Covered

Auto insurance typically covers you and your spouse, legal drivers under the age of 18 and other licensed drivers who have permission to use your insured vehicle. If circumstances have changed, there is no reason you should be paying for drivers who no longer use your vehicle. Conversely, if you have a child who just turned 16 and is driving, you may want to add them to your coverage. This could save you money in the event of an accident while they are driving your car. Adjusting coverage as needed can reduce your premiums – and that makes for a happier driver.

There are many reasons to get your car insured. Leaving your car uninsured is not only illegal in most states, but also leaves both you and your vehicle extremely vulnerable and at a disadvantage. Although it can be expensive, it is the smartest thing to do, and also the right decision to make in order to protect you and follow the law. The arguments against getting car insurance are far weaker than the arguments for getting insurance and staying insured.

Perhaps the Most Risky Thing you do all Day
You should have insurance because of basic auto safety reasons. According to sources like Forbes Magazine, “getting behind the wheel is the riskiest thing most people do every day,” since over 40,000 people a year die in car collisions, and car accidents are the largest killer of people from the teen years to the thirties. There are even more car accidents a year if the fatalities are not calculated, so you can imagine that the number is very high. If you get in a car accident and do not have insurance, you can pay thousands of dollars whether it was your fault or not. For most people, this can put a major stop to important plans and drain their savings, causing stress and inconvenience.

Well, it’s the Law
Car insurance is mandatory in most states in the US. That means that it is illegal not to have insurance for your vehicle if you are driving it on the public roadways, so if you do not have car insurance, you are most likely breaking the law. If you are pulled over and cannot show proof of insurance, the fines and penalties are not only inconvenient, but often very expensive. If you contest in court, or if you are given a court appointment, it can also be extremely time consuming to wait for your hearing or appointment at the courthouse. If you don’t want to break the law, or be penalized through fines and potential court time, it is vital that you have car insurance.

Auto Accidents are Extremely Common
Insuring your vehicle is also something that should be high on your list of financial priorities, since the frequency of accidents makes it likely that American citizens especially will experience a collision at some point in their lives.  With other types of insurance, such as home insurance, you may never have to speak to your insurers. However, many people end up needing the help of their auto insurance company pretty often.

Purchasing a Policy
If you have never bought insurance before, it can seem like a daunting task, and many people put it off, thinking that they will be alright for a little while longer. However, if you get pulled over or even worse, get in an accident, you will immediately regret waiting to buy insurance coverage. Since auto collisions are so common, it will likely happen at some point, even to good and careful drivers. Looking into insurance through helpful sites like those run by the Insurance Information Institute can also help ease your mind about your decision. This site and many others exist to help you learn crucial information and help you make decisions about your insurance coverage with the best knowledge possible.

Insurance is important, not only for covering the potential repairs to your car should you be in a collision, but also for protecting you financially and legally if you are pulled over, if your car is stolen, and many other unforeseen events that could happen to anyone.  Even though you will have to pay monthly premiums for most insurance, staying within the law and saving money if you are in an accident will give you a peace of mind that is invaluable, and definitely decrease the negative effects of anything bad that might occur.

Ellen Cho works for InsuranceSwami.com, a leading provider of quotes for low cost car insurance and information about general consumer insurance plans.

What do you do when your car suddenly starts emitting a rattling sound or a funny “feel” to it when you’re driving… and you just had it serviced 2 weeks ago? Many loan providers understand that car maintenance can be costly, especially if it is unforeseen. Thus, car owners may now take advantage of advancement from car loans and personal loans in the form of a product specific to car maintenance and repairs. Those for whom unexpected vehicle maintenance can be a budget catastrophe can rest easy knowing that they can turn to car repair loans for help.

Car repair loans are a quick, hassle-free way to get that extra cash needed when unexpected maintenance is required for a car. It can be used for car maintenance, car repairs, or just about any emergency maintenance needs that your car may develop. Surprises like these are wholly unwelcome!

All you have to do is to apply for the loan, and if everything in your application is in order, you can receive an immediate car repair cash advance. Many providers of car maintenance loans grant quick loans to vehicle owners who find themselves in a situation where they did not expect to spend any more than they already have on their vehicle.

Car maintenance loans like these are a great solution for the cash-strapped car owner. Instead of allowing the car to rattle on, possibly causing even more damage and thus exacerbating the problem, you can immediately have your car looked at and work out the payment soon after that. This can save the car owner a lot of trouble and worry as a car that is well taken care of would go further, both literally and figuratively, as compared to a car whose maintenance has been neglected. Furthermore, this ensures that your car meets safety and compliance regulations that allow it to stay on the road.

Car maintenance loans are also a great solution if you need to carry out unexpected car repairs in the unfortunate event of a car accident. Many times, an accident puts the owner in a dilemma, especially since no one ever saves up for a car accident. The car involved in the accident may not be road-worthy, yet very much needed for daily activities such as just getting to and from work, or sending the children to school and bringing them home again. Thus, car repair loans come in very handy in situations like these.

Author : Sandra

Business car insurance, technically called commercial auto insurance protects a business from the cost of a car accident.

A flower shop, for instance, may have a commercial van to deliver flowers to customers. If, during the course of running a late delivery, the van runs into a car, truck, or motorcycle, the flower business may have to pay property repair costs and medical injury expenses because of the accident. Without insurance, the business will be in legal trouble for not meeting the states minimal commercial liability requirements, and by underinsuring, it will be in financial trouble. However, with the right commercial auto insurance, it will be legally and financially protected.

Different Types of Commercial Auto Insurance

A business that owns commercial vehicles, like passenger cars, delivery vans, and commercial trucks, must invest in buying commercial auto insurance. Although the state only requires minimum liability insurance, it would be advisable for the business to also consider collision insurance, comprehensive insurance, and underinsured motorist insurance.

Commercial Liability Insurance

In the United States, there is no standard commercial liability insurance requirement because this will vary from one state to another.

In Alaska, for example, the state requires:

• 50/100/25 split liability coverage.
• $50,000 bodily injury protection for each person.
• $100,000 bodily injury protection for each accident.
• $25,000 property damage protection for each accident.

By comparison, Montana is almost liberal in its requirements, only asking for a 25/50/10 split liability cover.

Advice on Meeting State Requirements

In working to meet state requirements, there are essentially 3 steps to take:

1. Consult an auto insurance company selling commercial auto insurance or consult the state department insurance website.
2. Over insure, rather than under insure. It costs only a little more, but it can save thousands, if not tens of thousands in expenses.
3. Carry a 100/300/100 split liability cover after reviewing the net worth of personal and business assets.

Collision Coverage

Commercial vehicles are well protected with collision insurance, which covers the cost of repairs after an accident.

This coverage includes more than just a collision between two vehicles. It also includes collision with stationary objects like a wall, a road sign or a mail box.

Comprehensive Insurance

Comprehensive insurance is less specific than collision insurance, not focused on accidents alone, but covering costs associated with less tangible events that can also damage a vehicle. It covers natural causes of damage like bad weather conditions, storms, and earthquakes. It also covers intentional, man-made causes of disaster like vandalism or theft.

Commercial vehicle insurance is recommended for busy and densely populated cities and towns where there is a likelihood of theft or an act of vandalism. It is also recommended for places where storms, extreme weather conditions, or natural disasters are prevalent.

Underinsured and Uninsured Motorist Coverage

Underinsured motorist insurance and uninsured motorist insurance, as the name implies, protect a business financially when an accident involves an underinsured or uninsured driver.

If, for instance, the commercial vehicle has an accident that results in $25,000 worth of repair expenses, but the other driver is underinsured, carrying only $12,500 in property liability insurance, this leaves the business $12,500 short of what it needs for necessary repairs for their commercial vehicle. Instead of having to pay the expense out of pocket to resume business operations, the underinsured and uninsured motorist coverage will take care of the outstanding $12,500.

Insurance for Commercial Fleets

A commercial fleet is usually defined as having 25 or more vehicles, and there are three insurance options to consider:

1. Submitting a cash deposit to the states department of motor vehicles.
2. Obtaining self insurance. This means setting aside money to meet state minimum liability requirements for vehicle-related expenses.
3. Obtaining a surety bond.

Of course, the final authority on the insurance requirements for commercial fleets rests with the states department of motor vehicles. They are the ones who can provide the most reliable information on cash deposit options, self insurance, and surety bonds. The fact is that not every state accepts these alternative forms of insurance.

How to Save Money on Insurance

Although a commercial insurance policy will increase the cost of doing business, it is a necessary expense because it meets state requirements and provides financial protection. However, there are specific strategies that a company can use to reduce costs while not compromising on coverage.

Three of the most effective cost-cutting strategies are choosing a higher deductible, choosing an alternative payment option, and choosing a personal payment provider.

Let us look at these in some detail.

Cost-Saving Strategy 1: Choosing a higher deductible.

A business must pay a deductible when it purchases a business insurance policy. A deductible is the sum that has to be paid before an insurance company will consider an accident claim. The higher the deductible chosen, the lower the premiums will be. This could mean savings on annual insurance expense if the company generally has a safe driving record. However, it also warrants that money be set aside in a special savings account to meet the deductible should the need arise. This strategy can go awry, however, if a company chooses a higher deductible than it can set aside funds to meet. This will result in a company not being able to pay for repairing a damaged vehicle after an accident.

Cost-Saving Strategy 2: Choosing an alternative payment option.

A company can save money by choosing from several payment options.

For instance, it can save money by:

• Paying the commercial insurance policy in full, thus cutting out expenses related to administration costs and interest fees.
• In addition, some insurers also offer an additional incentive for paying the commercial insurance policy in full: a discount of 10%.
• Paying with an electronic funds transfer (EFT), thus savings on administration fees. An EFT payment means the insurance payment is auto-deducted from the company’s business bank account at a predetermined date.

Cost-Saving Strategy 3: Choosing an alternative payment option.

By using the same provider, a company can earn a discounted rate for loyalty. This strategy, however, needs to be tempered by periodically checking auto insurance quotes to ensure that another insurer is not offering even better rates for the same amount of coverage. Pricing structures in the insurance industry are always in flux, and today’s bargain quote can be tomorrow’s highest cost.