Thursday, May 12, 2011

WHy Why Why insurance costs so much


Your 16-year-old son has passed his driver's education course, and scraped together enough cash for his own car. You take a deep breath and give your blessing, until your agent tells you the rather large amount that will be added to your car insurance premium ... just to insure a lousy used sports car.
Why can insurance sometimes cost as much as the car? Why are insurers so tough on kids, or Corvettes?
It boils down to one word: risk.
To an auto insurance company, you are a collection of risks. Your sex, your age, your marital status, driving record, type of car and place of residence all contribute to an insurer's prediction of whether you'll file a claim.
An insurance company can't know, for certain, what kind of driver you are. They can only guess, based on the accumulated statistics for drivers like you. Even if you're a stellar driver, if you happen to be young, single, male and own a sports car, the insurer is probably going to place you in a category with a high premium - or it may reject you entirely.
The good news is that not all insurers price risks identically. While insurers are highly regulated in many states, they still operate as competitive businesses, focusing on certain markets and avoiding others. What's more, some operate their businesses more efficiently than others, passing on the savings to consumers.
That means you may be able to save hundreds of dollars a year by shopping regularly, even if your insurer rewards long-time customers. A great quote from a new carrier may trump the loyalty card.

Financial impact of Wisconsin's auto insurance law questioned


May 10--Insurance experts and opponents of a new, bipartisan-backed auto insurance law that reduces minimum coverage standards to pre-2010 levels say there's little evidence the measure will achieve its primary objective: lowering insurance costs for Wisconsin drivers.
"It's very complex to try to look at a piece of legislation and try to correlate (that) with premium changes," said Steve Witmer, a spokesman for American Family Insurance, one of the largest auto insurers in Wisconsin.
The new law essentially erases the 2009 legislation Gov. Jim Doyle signed boosting minimum coverage standards for the first time since 1982.
The law doubled bodily injury liability coverage minimums to $50,000 per person and $100,000 for multiple people, and lifted minimum property damage by 50 percent to $15,000.
Arguing the rules caused a significant spike in insurance costs for low- and middle- income drivers who can afford only minimum coverage, Gov. Scott Walker signed a law April 12 that will return the minimums to pre-2010 levels Nov. 1.
"Repealing this anti-consumer mandate is good for middle class Wisconsinites and small businesses, and I am proud to sign its repeal and replacement," Walker said at the time.
But experts say it's unclear how much premiums have gone up under the current rules, if at all.
In turn, they say, it's also hard to know how much costs could fall.
"Some changes take a while to shake out and to really feel the impact of them," said Witmer, of American Family Insurance. "I'm not sure we've felt the full impact of those (2009) changes up to this point."
"There's no hard numbers," said Andrew Franken, president of Wisconsin Insurance Alliance, a trade association. "We heard, anecdotally, (costs went up) as much as 20 to 30 percent. (But) it's way too early to tell."
Robert Kraig, executive director of Citizen Action of Wisconsin, a left-leaning collective that opposed the repeal, disputed claims that insurance costs had risen substantially.
"We did a report that showed that rates had gone up very little -- in fact, much less than the historic average," Kraig said. "Wisconsin rates are still among the cheapest in the country.
"I don't think (drivers are) going to see any decrease in their premiums because there was clearly not an increase in the first place."
Even if premiums and rates go unchanged, Witmer argued the new law offers consumers more choice.
"Most people ultimately end up with choices that are responsible and work in their best interest," he said. "For some people who might be on the fringe of being able to afford auto insurance, having that option available to them is a good public policy measure."
Kraig suggested insurance companies and their allies are more concerned about profits than consumers.
"What changes is that the policies aren't as good," Kraig said. "More people are not going to be able to recover nearly as much on auto accidents. People are going to get less for their money. There's much more burden on the individual consumers to buy a good policy at a lower price. It really is caveat emptor, as they say: buyer beware."
On that point, the Wisconsin Insurance Alliance's Franken agreed.
"We encourage consumers to shop around, check with their agents and their companies to see what products are best for them," Franken said. "I think consumers will be able to see some impact immediately when the bill becomes effective."
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To see more of The Post-Crescent or to subscribe to the newspaper, go to http://www.postcrescent.com .

Make Sure Your Business is Covered with comparethemarket.com


LONDON, May 12, 2011 /PRNewswire/ -- Finding the right public liability insurance for your business can turn into a minefield. Does your insurance adequately cover your business? What level of cover should you go for? So many questions and only one answer: comparethemarket.com offers a service that enables consumers to find the right public liability insurance cover at the right price for them.
comparethemarket.com offers quotes for over 750 separate trades giving consumers the opportunity to add on insurance extras including employer's liability, tool cover and business interruption to ensure that extra peace of mind.
Quotes can be instantly compared by a top panel of public liability insurers including NIG, Groupama, Ageas & Zurich.
Jeremy Moll, Commercial Director for comparethemarket.com, says, "Public liability insurance is designed to ensure that your business is adequately covered in the event of third party claims for negligence that have caused persons to suffer injury or illness as a result. It's incredibly important that consumers have the opportunity to search the market and choose the right deal at the right price. Our service does exactly that."
Specialising in more than just car insurance, comparethemarket.com has over 400 insurers offering a range of competitive products, ranging from life insurance right through to pet insurance and if that wasn't enough, comparethemarket.com will even assist you in reducing your utility bills.
Last year comparethemarket.com partnered with Towergate to offer SMEs public liability insurance. Their appointment saw the addition of a larger product offering for comparethemarket.com SME customers.

SOURCE comparethemarket.com

What the To Buy the Save on Your Auto Insurance Costs?????


If you think you do not deserve what you are currently paying for your auto insurance coverage, you need to do something about it. If you are a good driver who had always maintained a sterling driving record, never had any accidents or insurance claims in the past, or enrolled yourself on a defensive driving program, you deserve nothing less but affordable rates. Although it is unclear that your insurance company is probably making money out of you, it is best to review your coverage policies first and to determine if they are what you need. The high insurance costs could be the result of unnecessary policies in your account that you may not be aware of.
Before making any decisions, it is prudent that you have understood the insurance terms and policies regarding the insurance coverage offered by your insurer.
Comprehensive and collision coverage: do you really need it?
There are special cases whom you need this type of coverage. If you are a good policyholder, which means you pay your insurance dues on time, your insurance provider will appreciate for doing that. Also, if you have previously arranged your payment to be automatically debited from your bank account, you might want to review what specific policies you are paying for. This will only take a little of your time and possibly save you hundreds of dollars on your succeeding payments.
Comprehensive coverage is advisable for people who purchased new vehicles or those vehicles considered as classic ones. Both of which would need a total protection that can only be offered by comprehensive auto insurance. This will usually span between 3 to 5 years and after which, it is up to you to downgrade the policy in favor of a cheaper one. Unfortunately, some people are paying the same premiums for many years without even thinking the money they spend on it.
Because of the nature of comprehensive or collision coverage, it is only natural that they are extremely pricey. This is because you are protected in case you had an accident to the full value of your vehicle regardless of who is the cause of the accident.
But then again, you have to remember that your vehicle will depreciate and change its worth year after year. To calculate, in less than 10 years it is no longer prudent to keep paying for $25,000 worth of insurance coverage because it is no longer necessary. In fact, many insurance experts will advise you to pick lower insurance coverage and save the money away. You can either use it to purchase a new vehicle or as a down payment for your new vehicle in the event of total loss.
It is time to drop your comprehensive coverage if what you are currently paying for your insurance premium is 10 times more than the actual worth of your vehicle. You can choose to go to basic liability coverage, which will protect you from property and injury liabilities.
Another important issue that needs to be cleared out is the rental car insurance. So, do you really need it? According to some experts, if you are driving a vehicle outside the US or Canada, rental car insurance is highly encouraged. Otherwise, if you are driving your own vehicle, which presumably has enough coverage, purchasing for rental insurance is no longer required.

Student::::Students could save lot of money with the low-cost insurance program


A simple message was delivered by the Insurance Commissioner Dave Jones at San Diego City College today. Now students who have financial difficulties can approach the California Department of Insurance for financial aid, by obeying the law.
The Insurance Commissioner appeared on the campus and was part of the Cinco de Mayo festivities that took place, where students were introduced to the California Low-Cost Automobile Insurance Program (CLCA). Students are offered automobile insurance at affordable rates especially for those that qualify.
Jones stated that in this recovering economy most Californians and mostly students were looking for ways and means to get more value for their money. Hence, this program according to Jones meets the requirements of California’s insurance and is ideally suited for most college students.
The state’s financial responsibility laws of insurance less than $400 per year can be met with the CLCA program which provides affordable auto insurance (liability only). This is especially appealing for students who face rising costs, but all Californians can easily apply for this, stated Jones.
There are already many students who shop for insurance online and most of them look forward to availing discounts. Hence the California Department of Insurance as well as the ASUS Computer International have long been working on this program and have managed to introduce this in college campuses all over the state. During the event, the representatives from the Insurance Department used the ASUS products and provided a demo to show how easy it is to determine the eligibility criteria for those who were interested in the program.
This event organized at the San Diego City College is the third event in the series of events organized by the Insurance Department. All these events have been successful and there would be more such events that would be organized in fall.
The eligibility criteria include:
  • The applicant should be a ‘good driver’ with no more than one at-fault and property-damage only accident or one point in a moving violation within the past 3 years.
  • The value of the vehicle that is insured must not exceed $20,000.
  • In the past 3 years there should have been no at-fault accident that involved bodily injury or death of a person. There must be no charges of misdemeanor conviction or felony for a violation of the Vehicle Code.
  • The income eligibility limit of the family must meet $27,000 for one person, $36,775 for two people, and $55,875 for a family of four.

Getting-----Getting top deals on auto insurance for senior


When you belong to the seniors’ category, you have earned yourself the right to some very good discounts. All you need to do is work out on how to bag them at the earliest.  As you grow older, you are looking for ways to reduce your expenses. Your requirements are less and you also want to be more independent. Having a car is a very important part of this process of living by yourself and taking care of your needs. Along with this comes the need to opt for auto insurance for seniors. Automobile insurance providers have specific guidelines for this category of citizens and it differs from one state to the other. Check with your sources first before setting out shopping.
When looking for auto insurance for seniors you must consider that people who know you for long and with whom you have been doing business will obviously offer you the best deal. You may have to get a re-evaluation done on your car and even a driving exam if you are looking at some new insurance company in some cases. Sometimes local sources such as your church group or your pals at the bar may know some excellent places to hit for a good insurance deal. Do your research before making a decision.
Driving safe is as important, if not more, than the actual auto insurance for seniors. However it may also be necessary to do a defensive driving course. This is available online and also in driving schools and insurance companies. Clearing these courses will enhance your credibility. Auto insurance for seniors is quite different from the regular insurance in the market and so you will need to do some research and figure out the benefits you are eligible for. Depending on whether you use the car for very few needs and not for regular use, you can cut down on the premiums owed to the company.
When you have multiple residences then you should look at the auto insurance for seniors in both zip codes and get it done at one where you have the most profitable deals. You can also car pool with someone and split insurance costs, thereby saving on payments with your other buddies who live alone or are looking to save on their insurance costs. If you have a really old model or a cheaper car than the one you had before then do check on the costs applicable when you renew the 

Understand the key details of auto owners insurance


We all look forward to getting the best deals on every purchase. Often we find that when we talk to others we hear about deals we did not know before. As with every other instance this is also applicable to auto owners insurance. Especially when you have multiple cars, you need to insure them against possible theft or vandalism. It is important to do so before something dangerous happens. Auto owners insurance is not something that is to be treated lightly. Besides the fact that the law requires everyone to have it, it is also the matter of safety and recovering losses in case of damage.
It is not possible to always think we can drive safely and overcome all losses. Occasionally there may be incidents beyond our control like a drunken driver, a tsunami or an earthquake. Loss to property and vehicles is something that occurs all over the world and a wise buyer always makes sure that they are properly insured in the event of something happening. Auto owners insurance is easily available without waiting in long queues and running from door to door. The important thing to do is to decide on the kind of insurance you want for your car.
Auto owners insurance is not very complicated. Most people get put off by the kind of language that is there in these documents making it rather difficult to pick out what is being said. It is quite simple to see that most of the time the details are quite simple as long as you read the entire document. Clarifying what kind of premiums are to be paid, checking if there are options to decrease the amount by paying a larger deductible and doing a check on discounts you are eligible for will cut costs. Sometimes you can even save on the deal if you apply for it online rather than walk into the same company’s office; you can save on trips to get there and meeting insurance agents as well.
Consider taking driving tests to decrease the cost of your auto owners insurance. There are quite a few deals you can strike if only you knew about it before you had signed up. Don’t make that mistake with your insurance. Choose to do your homework on what you can save on and remember that spending more does not mean better insurance on your car. Spending wisely will be a far better way to do it.