Relief at the gas pump seems to be a pipe dream. Prices are rising and drivers are rethinking budgets to accommodate. One way to help save money is through your insurance.

According to certified financial planner Rick Rodgers, car insurance can be a good place to start saving money.

The average annual insurance premium is $850 and Rodgers offered some tips to meet or beat that rate.

Shop Around:

“Your insurance agent doesn’t have a lot of incentive to reduce your premiums,” Rodgers said. He encourages car owners to look around at other insurance agents who will be happy to provide you with lower rates.

Thanks to the internet and the growing insurance industry, it’s easier to compare rates than ever before. Rodgers said he knows someone who saved $1,600 on his premiums by switching agents.

Bundle Up:

Most insurance providers offer discounts when you package more than one of their policies and can be between 10 to 15 per cent. The most common way people bundle policies is by combining can and homeowner insurance. Some companies even offer bundles with renter’s or tenant’s policies.

 Ask for Discounts:

All those safety features in your car might make you eligible for some insurance discounts. Its worth a shot to ask what discounts you’re entitled to, especially if you have a good driving record, or low annual mileage.

Defensive Driving Lessons:

Defensive driving lessons are an important way to keep your skills sharp, even if you’re an experienced driver. Insurance companies see the value in taking a refresher course, and many offer discounts if you participate in one. Also, if you’re older than 50, there are additional driver safety classes that lower your insurance.

Increase your deductible:

A low deductible may seem like a good thing, but if you increase your deductible, you can manage to get away with cheaper insurance. Rodgers encouraged those who have bundled home and auto insurance to consider raising the deductible on their home insurance, as  statistics show the average homeowner files a claim only once every nine years.

Change cars:

Probably the most difficult, yet most effective way of lowering your insurance is by changing your vehicle. We’ve covered the most, and least expensive vehicles to insure on our site before, and if you’ve clicked through those lists then you’ll know, the big flashier cars cost more than boring, practical vehicles like pickup trucks and minivans.

Don’t forget to get a quote before making the switch. In some cases a compact can actually cost more to insure than a hot little roadster. You can also visit our car insurance page to get more information on different insurance providers.

Overall, drivers are more satisfied with their insurance companies this year than last, according to J. D. Power’s 2012 U.S. Auto Insurance Study.

“Although satisfaction with price remains consistent from 2011, auto insurance companies have made great strides in all other areas,” said Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates. “Specifically in the area of policy offerings, a number of insurance companies place an emphasis on product differentiation in their advertising and packaging of discounts and offerings.”

The firm gauges customer satisfaction based on five factors: interaction, billing and payment, price, policy offerings and claims. This year’s study shows, as you would expect, that customers who are more pleased with their insurer will also happily tolerate rate hikes within certain limits.

“Among customers whose insurers meet or exceed all their service expectations, modest rate increases appear to be well tolerated, provided the rate adjustment amounts to less than $50. However, larger rate adjustments may trigger customers to consider shopping for a new insurer, especially those customers who are less engaged with their insurance company,” Bowler said.

Everyone should take note of this: Swedish company Autoliv is developing an in-car breathalyzer that works automatically to keep drivers from taking intoxicated trips.

“It should be seamless. You should not notice the car has an alcohol detection device in it,” said Autoliv CEO Jan Carlson to Automotive News of the new device.

It’s still at least five years away from consumer availability, though such a system would seem like a surefire success once available. Unfortunately, it isn’t even clear whether the device will be affordable or not.

If it proves to be, Carlson expects a quick uptake in areas where current drunk driving prevention technology isn’t as common.

“If you look at the numbers, 30 percent of all fatalities are coming from driving under the influence. When you talk to parents with teenage daughters and sons they would love to have this device in the vehicle,” he said.

Even beyond concerned parents, there are other imaginable scenarios. For example, it wouldn’t be hard to see insurance agencies offering discounts to drivers who install Autoliv’s system. Assuming the cost isn’t prohibitive, a device like that could also protect drivers from being wrongfully accused after having wine with dinner or just a couple drinks.

[Source: Automotive News]

Drivers who buy auto insurance from Progressive are probably accustomed to the idea of having their driving patterns tracked for the chance at a discount, but now the company is using its program to tempt customers from under competing companies.

Probably one of the most logical policies in the insurance world today, Progressive offers current customers and prospective clients the chance to put a tracking device on their car for a month. The black box records driving data distance travelled, braking patterns and even what time you’re driving. That information is reported back to the company, definitively answering who deserves a coveted good driver discount.

The devices work with any car made after 1996 and plug into the OBD-II port directly. Roughly 70 percent of drivers who offer to prove themselves end up with discounted rates according to the company which touts its program as the first time drivers can objectively compare rates between insurers.

It’s an industry-first move that drivers with competing companies would probably be wise to participate in considering there doesn’t seem to be anything they can really lose — assuming a bad report won’t haunt you down the road.

With 5 billion driving miles already analyzed, Progressive says its driving-behavior data is twice as good at predicting risk as any other factor.

If you feel apprehensive about strapping a monitoring device to the family jalopy for fear of facing higher rates – don’t. Industry analysts are predicting that the opposite is more likely. Those who refuse to forfeit daily driving data will probably start to seem like a statistical risk, ultimately facing higher premiums.

[Source: Automotive News]

Your car is at a standstill, your heart is racing, if you’ve just been in an accident, chances are you’re a little shook up. Take a deep breath. There are a few things to go over when you get into an accident, especially if another driver is involved.

First thing’s first, make sure that everyone involved is okay and try to get your car to a safe place, especially if you’re in danger of getting hit again. If you aren’t able to move your car, turn on your four-way blinkers/hazard lights. If someone is seriously hurt, your car isn’t drivable or if the damages exceed $1,000, then it’s time to call 911. The police will arrive shortly, and you can file a police report.

You can start getting information if the accident isn’t too serious or while you’re waiting for the police to arrive. Names and phone numbers are a nice start, but be sure to get any driver’s license numbers, addresses, insurance providers and policy numbers from anyone involved in the accident. Also get the name of the registered owners of the vehicles involved and their license plate numbers.

It also helps to get the names and information of any of the passengers or witnesses of the accident. This is in case you need an extra account of what happened in case the police or insurance need it.

Write down when and where the accident happened, road conditions, and maybe a quick diagram of the accident. This will help, since you might have to repeat this information several times, be it to a police officer, insurance agent, or lawyer. Also, be sure to snap some pictures if you have a camera, or camera equipped cell phone. Photo evidence does not lie, and is the best way to show someone exactly what happened.

Speaking of insurance, it’s important to decide your actions as soon as possible. The most hassle-free approach to getting repairs done is through insurance, after all, why else do you pay monthly for it? Call your insurance provider and ask them for advice on the situation. They can let you know what the best plan of action is regarding the repair of your vehicle. Your provider will help inform you of who is at fault, how much a repair will cost to you and how long your car will be out of commission, if it’s a complicated repair.

Sometimes the driver at fault may offer to foot the bill of the repair to avoid having to go through insurance. This could have some benefits as insurance rates are less likely to go up, but you are putting your cars repairs in the hands of stranger you just met.

Accidents can be a frustrating experience, but with these tips to keep you focused, you’ll remain confident and be ready to ride soon. Here’s a quick checklist to keep in your car for such an incident:

1. Make sure everyone is okay. Don’t try to move anyone who is seriously injured. If someone is injured, immediately call 911.

2. Turn on your hazard lights, and if possible, move your vehicle to the side of the road. Don’t worry about this affecting your insurance claim or police report.

3. Call your insurance provider to advise you through the process.

4. An insurance advisor should walk you through what information you need to gather. They will also help you understand what’s covered in your policy and arrange a tow truck if needed.

5. Make certain that you write down the names, phone numbers, insurance companies and policy numbers of the driver(s) and any passengers of the other vehicle(s) involved. Also include the licence plate number of the other car and the driver’s licence number, if possible.

6. Gather the names and phone numbers of any witnesses to the accident.

7. Depending on the situation call the police. Remember: It’s best not to discuss who is at fault with the other driver. Allow the police or claims advisor to determine fault.

Do not leave the scene of an accident if there are injuries or damage to city or private property.

Fisker is reporting that it lost $30 million in inventory after Superstorm Sandy flooded a New Jersey port.

Each Fisker Karma starts at around $100,000, meaning the company’s inventory lost 300 cars. Earlier in the year, the brand reported selling $100 million, or 1,000 units which gives some insight into how deep the storm likely cut into the company’s stockpile.

While this might seem like a major setback for what seems to be an already-struggling company, Fisker told Reuters that it expects “no impact from a business or a financial point of view,” because the cars were all insured.

In total, more than 10,000 vehicles at Port Newark suffered some sort of damage during the course of the storm according to Fisker spokesman Roger Ormisher.

The 300 cars totalled in the storm were headed for U.S. dealerships and included the 16 cars that caught fire during the storm.

[Source: Automotive News]

It turns out that deer season is dangerous for more people than the Elmer Fudds among us who hunt without an orange vest. 

Animal crashes spike in November according to the Highway Loss Data Institute. Vehicle damage from hitting an animal is more than 3.5 times as likely in November than August — a figure that coincides directly with deer mating season.

Vehicle damage from those crashes is covered under comprehensive insurance and the study showed that between 2006 and 2011 there was an average of 6.5 claims per 1,000 insured vehicle years. August showed the lowest statistical frequency of claims with 3.9 while there were 14.1 in November.

Snow and ice on the road can make for a slippery drive home, and the snowflakes falling from the sky can limit your visibility, so it’s no wonder that there’s a definite increase in insurance claims once winter starts.

“Oh yes, there are many more accidents in the winter compared to the summer,” says Anne-Marie Thomas, an Insurance Expert at InsuranceHotline.com. “Many of them are avoidable too.”

It’s not hard to imagine a sense of overconfidence in many of today’s cars. With just about every car out there outfitted with stability control and ABS, many drivers begin to feel invincible when driving, even in the snow, especially when they have all-wheel drive. However, stability control and all-wheel drive do little to help when you need to brake.

“We see a mixture of claims, like multi-vehicle, and single vehicle collisions,” says Thomas, “But we see a lot of claims in regards to drivers getting rear-ended, or going off because they’re just not paying attention.”

She points out that the number one habit that winter drivers should be following is to drive according to weather conditions. “Check the weather information before you go out, be aware if there is going to be black-ice or lots of snow,” she says.

STAYING SAFE

A key point is to wipe the snow off your car. “Clear the snow and ice of your vehicle, not just the portholes, everything.” She points out that especially in the dark, you need your whole windshield. Having any part of your windows obscured by snow or ice is a serious risk. Clearing snow is a safety measure for other drivers too.

“You need to clear your whole car, blown snow off the roof of your vehicle can obstruct other drivers.”

It’s also advised for those who see snow to get dedicated winter tires. “Statistically winter tires can reduce your braking distance by 25 percent,” Thomas says.

She also mentions to check your tire pressure after cold nights. “Pressure drops in low temperature. You might not be able to steer, or brake as well you think.”

Finally, Thomas explains that it might be handy to have a winter-survival kit to be prepared if anything happens. Her suggestions are not too expensive, and include mostly around-the-house items: sand or cat litter for melting snow. For navigation, keep a compass handy. Some road flares let other motorists know where you are. Extra clothing helps if it gets too cold, along with mitts and socks. In case of a longer term mishap, matches and a candle might be helpful. Finally, keep a pencil and a notepad in your car in case you get into an accident, since pencils work fine in the cold, unlike pens where the ink might freeze or not flow.

Driving dynamics change dramatically in the snow and ice. It’s important to learn how to react to your car when you lose control.

“If you’re nervous about winter driving take a defensive driving course,” Thomas advises. Insurance companies won’t sympathize with you if you get into an accident in the winter, even you run into black ice, and couldn’t do anything. She warns, “A car accident can impact your insurance rate for up to six years.”

HOW TO STEER IN THE SNOW

So what exactly do winter driving courses teach to help you avoid an accident in the snow? As a professional drift racer, Max Pourier has an intimate knowledge of how to control a car at its limits and gave a rundown on the basics, first hand.

“It’s very similar, performance driving and driving in the winter,” he explains “You have to stay smooth and try not to upset the balance of the car.”

On a slippery skidpad Pourier shows us just what to do.

His first lesson was to show what happens to a car when it’s understeering.

He explains; “Understeer is when a car’s front tires lose traction during a turn and results in the car pushing forward.”

The car may start to shudder or shake if this happens, but the most frightening thing is the sense of no control as your car goes forward rather than turning.

“You have to go against your instinct of steering more,” says Pourier. “You can stay steady and allow the tire treads to catch up, or unwind the steering wheel a little bit.” Unwinding the steering, allows the tire-tread to align with the direction you want the car to go, and catch traction again.

Another scary bit of driving occurs when the rear wheels lose traction, something called oversteer. When turning, oversteer is quite dangerous because it can cause a car to do a complete spin.

As soon as oversteer is noticed, it’s recommended to counter-steer quickly but smoothly.

“You have to steer back in order to straighten out the car and point it the way you want it to go,” Pourier says. Since the front tires still have grip, you need to use them to your advantage and control the car.

Finally, he demonstrates the importance of winter tires, which are softer in colder temperatures, allowing them to have more grip than all-season or summer tires.

If there’s one important skill to come away with about winter driving, it’s that you should keep your cool. Panicking on the ice and snow isn’t going to help you stop or turn any quicker and can be dangerous. Be sure to drive according to winter conditions and plan ahead by buying a set of winter tires.

Hurricane Sandy was the most devastating blow to classic car collecting ever according to Hagerty Insurance.

Hagerty, a firm which specializes in classic and collector cars, estimates between 8,000 and 10,000 classic cars were affected by the storm. Among other things, that means pricing for collector cars is likely to shoot up, at least in the short term.

Despite that, car collectors still seem to have as voracious an appetite as ever for the hobby. Hagerty said in a blog post that they’ve  ”talked to countless individuals who have been powering their PCs from portable generators and are already doing what so many of us do under far more normal circumstances — trolling Craigslist and eBay looking for cars.”

With the Barrett-Jackson auction in Scottsdale, Ariz. a little more than a month away, evidence of that demand might make the event especially competitive.

There could also be other side effects from the storm. Hagerty predicts that many owners with damaged vehicles will salvage and sell what parts they can from their cars — something owners with undamaged vehicles might benefit from.

Still, it’s just as important to remember that floods ruin cars and leave use listings the subject of much deserved scrutiny. Corvettes, Mustangs and Camaros were the hardest hit.

This winter season, are you worried about the driving habits of other drivers, or the weather affecting your car’s driving characteristics?

The latest survey from Goodyear is exposing the fact that a large percentage of drivers aren’t prepared for the winter, which is causing unsafe driving conditions for everyone else.

While more than 75 percent of respondents do believe winter tires make a difference in challenging winter weather, 58 percent of those in cold-weather areas don’t use winter tires. That information won’t inspire confidence when the snow starts falling and the roads get icy.

Those drivers that do equip winter tires seem to be waiting for the winter season to start before getting them on. Twenty-three percent of drivers wait until the first storm to put on winter tires, instead of doing it ahead of time, even though 73 percent say they drive just as much in the winter and 19 percent also claim they don’t drive any slower, even with often slippery road conditions.

These winter driving habits aren’t going unnoticed. Fifty-one percent of respondents are saying that they actually fear other drivers more than just the snow and ice.

SEE ALSO: How to Drive on Snow and Ice: Winter Driving Safety Tips

“Simple things, such as equipping your car with a set of winter tires, can make the difference in challenging winter driving conditions,” said Brandy Gadd, marketing manager for Goodyear. “A set of superior-performing winter tires, such as Ultra Grip Ice WRT tires, helps provide consumers with the superior traction they need to confidently drive in ever-changing winter conditions.”

Goodyear points out a few tips to ensure you’re prepared for the worst this coming winter.

First they advise to check your tire pressure and tread. Both tire pressure and tread affect traction in the snow and ice. In particularly cold locations which experience a lot of snow, Goodyear advises that drivers should consider winter tires.

Next, Goodyear advises drivers to move with caution. Just because you have superior traction doesn’t mean you can speed in snowy and icy conditions. The idea is to drive smoothly when approaching intersections and stop-signs to provide a cushion of space in case of slippery conditions.

Finally, a key way to help yourself and drivers around you is to keep your car clear. When snow is left on the hood, it can fly onto the windshield when you start moving, obstructing your view. If snow is left on the roof, it can slide onto the rear window. Snow left on the car can also fly off the car, affecting other drivers.

Many of these tips are referenced in our latest feature on driving in the snow. Check that article out for additional tips, and ways to control your car if you’re in a skid.

With proper preparation drivers shouldn’t feel intimidated or worried with winter weather, but sadly, very few drivers out there seem to be taking the right precautions when the snow hits. Take the right steps, and drive with confidence in the cold weather.

You might have seen a commercial by now advertising Progressive’s “Snapshot” service. Even if you haven’t, it’s likely to happen soon. 

That’s because Snapshot, and other usage-based services like it, will dominate the market by 2020 according to a new study released by  strategic advisory firm Strategy Meets Action (SMA). In Progressive’s case, a modular device plugs into your car’s OBD-II port and monitors a driver’s behavior behind the wheel.

SEE ALSO: Progressive Determines Driver Safety with Device, Lures Customers

“Telematics is going to have a profound effect on the auto insurance business,” said Welch. “Even if consumer adoption is in the low end of the consensus range, usage-based insurance will grow rapidly, and as it grows, the traditional market will shrink, making it very difficult for companies not playing in the usage-based segment to maintain market share,” said co-author Richard Welch.

The idea offers benefits to both the insurance companies and drivers, at least potentially. Safe drivers get a way to prove their habits for a lower premium. Insurers, on the other hand, have more access to information on how the people they insure are really behaving.

There are already 20 insurance companies between the U.S. and Canada using such technology and eight of the top 10 U.S. insurance providers are included in those numbers according to the study.

Other, similar, systems are also being made available for companies that have vehicle fleets and for parents concerned about their children driving dangerously.

SEE ALSO: New Device Enforces Restricted In-Car Cell Phone Use

Out in the United Kingdom, women’s insurance premiums could soar as high as 24-percent more than what they’re currently paying thanks to the EU’s Gender Directive that will be put into effect December 21st.

According to comparison site Confused.com, when the EU’s Gender Directive comes into play, insurance companies will no longer be able to vary premiums according to the policyholder’s gender. Because of that, the site believes that women drivers in the UK will see their insurance premiums rise an average of $485 (£299).

Women between the ages of 17 and 25 in central London could see the largest increase – an average premium set to cost $4,222 (£2,599), a rise of more than $812 (£500).

“The EU gender directive, which takes effect on 21 December, looks likely to spoil things, bringing uncertainty into the market once again and is likely to result in different insurance companies adopting different strategies to gain and retain the best business,” said Gareth Kloet, head of car insurance at Confused.com.

It is also believed that the Gender Directive will affect life insurance premiums and annuities used to convert pensions to annual income.

[Source: AutoExpress UK]

Insurance is one of the costliest parts of owning a vehicle and most drivers would do anything in their power to lower their rates. But would you go so far as to hand over your personal driving data?

A fairly new initiative, some insurance customers can now sign up to plug in a logging device to their car, which can track a number of variables to see what kind of driver you are, and possibly lower your insurance rates. Called “pay as you drive” or “pay how you drive” these new systems bring up a lot of questions.

WHAT IS IT?

Throughout the US, Progressive Insurance offers Snapshot, a system that plugs into your car’s OBDII port and logs information about how you drive. Canadians also have this tech offered by Desjardins, called Ajusto. Even some insurance companies in Europe offer this kind of logging technology. The system determines whether or not you’re a safe driver and you can net a savings of up to 25 percent. But there are concerns that the insurance company might be horrified by your driving habits, increasing your premiums instead.

“So far they say that they will not increase your rates as a result of the information gathered from this technology,” explains Anne Marie Thomas from InsuranceHotline.com. “It’s all data and statistics, and that’s how insurance rates are set, on statistics. If statistically you’re in the low-risk range, then you should be paying less than those who are in the moderate or high-risk accident range.”

It doesn’t sound like a bad deal, but it’s important to know what information the insurance companies are looking at.

MILES

One of the main things that insurance companies want to know is how much you drive your car. While you may send rough numbers of how much you intend to drive your car in a year, it can vary from year to year. Insurance companies want to know exactly how much road is being covered by your car, and they will adjust your rates accordingly. For example, if you drive under 10,000 miles a year, you end up saving money.

“The less you drive, the less likely you are to be in an auto accident, and that should be reflected in your rates,” says Thomas.

The insurance company’s mindset is more miles means added risk, so if you drive less you’ll pay less for insurance.

SPEED

Insurance companies have reassured us that they don’t care about your actual driving speed, just your rate of acceleration or deceleration. If you accelerate 8 mph faster in one second, or decelerate 9 mph slower in one second, you’re considered to be slamming on the gas, or brake pedals, and driving erratically.

“Insurance companies consider this type of driving to increase your chances of getting into a rear-end accident,” Thomas explains. “If you’re following too close and adjusting your speed too much and too drastically, then you won’t get those discounts.”

The theory is that smooth driving habits are safer (and more fuel efficient too) and that if you’re not constantly hammering on the gas and brake pedals, then you’re a safer driver.

WHEN DO YOU DRIVE?

The most comprehensive information that is collected involves when you drive your car. Depending on when you drive, you may encounter a lot of other vehicles on the road, and increase your chances of getting into an accident and making a claim. Categorized as high, moderate or low risk driving times, insurance companies will deem the riskiest times during rush hours due to the number of other motorists on the road with you, and past midnight when you might be drowsy and less alert.

The lowest risk times are non-rush hour times, like  5-7 am, 9am-4pm and 6-10pm. Weekend driving is also considered low risk. The more you drive during these low risk hours, the more you’ll save.

UNMENTIONED BENEFITS FOR PARENTS

For those worried about privacy, insurance companies allow you to see all the data that you’re providing them. Users can access the information on the web by logging in, and can see how their driving habits affect their insurance costs. This might not sound like much, but it can serve as help for parents who want to know if their inexperienced teenage-drivers are behaving responsibly behind the wheel.

“When your kids are learning to drive, you don’t really have the sense of how they do on their own,” Thomas says. “Being able to see that data is helpful, so you can gauge what they’re like behind the wheel when you’re not there.”

It’s not too intrusive to know where and how fast the car is going in the hands of your teenager, but it’s handy enough for parents to help teach the importance of accelerating and decelerating smoothly in addition to driving responsibly. It also helps to quantify the impact of driving poorly.

Families with young drivers have to pay extra to insure the newer drivers, but signing up for this kind of insurance logging can help bring down those costs, while teaching an important lesson to the inexperience drivers in the household. Equally valuable is the extra peace of mind to a parent.

IS IT SAFE?

It’s clear that the number one concern to customers is privacy. Progressive could change its policies in the future to log more data, or it could use your current data to increase your rates, rather than decrease them. Such bold moves would likely cause more customers to leave the insurance company or opt out of the program. Progressive has clearly spent time researching the reaction of the customer about what they are logging.

“Over the last ten years, we’ve tested several variables, including location and acceleration data. ” says Jeff Sibel from Progressive. “Our research shows that our current version, without location or acceleration, is appealing to consumers and provides us with an accurate picture of our customers’ driving habits.”

Early patents of the device list some GPS or cellular functionality to track your information, but it’s clear that customers weren’t comfortable with that data.

Other insurance companies have toyed with the usage based insurance idea. Another Canadian provider, Aviva, had a pilot program which was ultimately ended.

“The program was voluntary and we did not experience any issue with customer privacy concerns,” explains Aviva spokesperson Glenn Cooper, but he didn’t hint as to why the company didn’t follow through and offer the same program to all customers. “As it was only a pilot program, there was not a specific reason why we discontinued.”

NOT THE ONLY WAY TO SAVE

If you’re comfortable with trading discrete data about your driving habits for discounts on insurance, then these data-logging solutions will be a great avenue for you.

However, it’s important to know that by shopping around you can likely find lower insurance costs elsewhere, without having to resort to giving up potentially personal information about the way you drive.

“Sure you can get this technology to help you save money, but another way to save without any modifications to your vehicle is to just shop your rates,” Thomas says. “It’s entirely possible to find those savings at another company without resorting to the logging technology.”

So if you’re not comfortable with big brother watching, then you don’t have to sign up for it, and can save regardless just by shopping around.

Overall customer satisfaction with auto insurance companies are on the decline in 2013 from an all-time high in 2012.

Despite the drop this year, customer satisfaction remains comparatively high relative to the previous decade according to a recent study by J.D. Power and Associates. By measuring customer satisfaction across five factors, J.D. Power assigns an overall satisfaction score with auto insurance companies based on a 1,000-point scale. Those five factors are: interaction, price, policy offerings, billing and payment, and claims. Overall satisfaction is at 794, down 10 points from 2012. However, 794 is the second-highest level since the study launched in 2000.

The two primary factors attributed to the overall decline are price and policy offerings – both of which declined by 13 points. The study concludes that there is a direct relationship between the amount of a premium increase and the proportion of affected customers who switch insurance companies as a result. It also found that only 16 percent of customers had a discussion with their insurer before a rate increase was put into place.

Of the five factors, price satisfaction was the lowest scored at 716, more than 100 points lower than the average scores for interaction and claims.

According to recent research, more than one-in-three insured drivers would considering switching to usage-based car insurance.

But can it really offer you savings between five and 30 percent as some analysts have claimed? The survey, which was conducted by Lynx Research, at the very least proves that pay-as-you-drive insurance is gaining interest despite privacy concerns and potentially hidden costs. According to the National Association of Insurance Commissioners, 20 percent of all insurance plans will incorporate pay-as-you-drive features within the next five years.

SEE ALSO: What is Usage-Based Car Insurance?

Though usage-based insurance could provide more accurate rates for drivers by taking in current driver habits into account, the up-front cost along with the cost for transmitting the driving data adds up. Still, surveyed drivers would switch if it saved them up to 10 percent a month. Unfortunately, there’s a lot of fine print that goes along with usage-based car insurance premiums, and in the end, it’s difficult to enjoy a discount.

[Source: Detroit News]

According to a recent study, less than 10 percent of drivers will compare insurance rates when it’s time to renew their policy.

For the most part, drivers remain loyal to their current insurers despite overall customer satisfaction trending downward in the industry. In addition, more than 20 percent of new insurance shoppers are turning online to find the right auto insurance policy for them.

“As rate increases continue to drive customers to shop around for the best price, insurers need to provide a seamless shopping experience, including competitive websites with quote compatibilities and a satisfying on-boarding experience to acquire new customers,” said Jeremy Bowler, senior director of the global insurance practice at J.D. Power.

SEE ALSO: Usage-Based Insurance Proving to be Popular

The report comes from J.D. Power’s 2014 U.S. Insurance Shopping Study which revealed that the auto insurance customer retention rate is at an impressive 97 percent with only three percent of customers switching insurers and eight percent of them shopping for other policies.

Your credit score could play a significant role on how much you’re paying for auto insurance a new study has revealed.

The study used a hypothetical 45-year-old, single female driver with a bachelor’s degree and no prior claims or lapses in coverage to determine how much annual premiums on auto insurance could differ by looking at a unique factor called a credit-based insurance score. Not to be confused with your standard credit score, a credit-based insurance score is calculated by insurance companies using information in your credit report. Most insurance companies use their own formula to evaluate your credit-based insurance score based on your credit history.

SEE ALSO: How to Get the Best Car Insurance Rate Discounts

According to the study conducted by InsuranceQuotes.com, a median credit-based insurance score means you’ll pay 24 percent more for auto insurance than a driver with an excellent score. Those with a poor credit-based insurance score can see their premium nearly double, paying 91 percent more.

There’s good news though if you’re in California, Hawaii or Massachusetts. Those states ban insurers from using credit in order to set auto insurance rates. But for the rest of the U.S., 97 percent of insurance companies use credit-based insurance scores to set your auto insurance premium.

Even an insurance underwriting expert at Fair Isaac Corporation (FICO), Lamont Boyd, agrees that there is a correlation between credit history and insurance rates. According to Boyd, “About 40 percent of every consumer’s bottom line score will be driven primarily by whether or not you paid your credit obligations on time.”

You could be saving up to $300 annually by switching your auto insurance company.

According to data from the latest J.D. Power U.S. Insurance Shopping Study, consumers saved an average of $300 off their annual premium by switching auto insurers in the past year. The leading reason customers were shopping for a new insurance company in the past 12 months was poor experience with their insurer. According to the study, increases in premiums did not drive shopping around as much as poor experiences.

SEE ALSO: Top 10 Insurance Myths Explored

The study also revealed that increases in the annual premium of more than $200 can triple the rate of customers who switch insurers. Even more telling, the longer customers had been with their previous insurer, the higher the savings, most likely due to price hikes over the years.

The 2014 J.D. Power U.S. Insurance Shopping Study is based on responses from over 16,900 consumers who had shopped for an auto insurance price quote from at least one competitive insurer in the past nine months.

“Customers who were with their prior insurer for 11 years or longer before switching save an average of $426 per year on their premiums, compared with $291 among those who had been with their previous insurer less than two years before switching,” said researchers.

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Walmart is known for its low prices, questionable labor practices and general ruthlessness. But the retail giant that sells everything from fresh bread to fishing bait is about to enter a new market: car insurance.

The multinational corporation has partnered with a price-comparison website. AutoInsurance.com will provide Walmart customers with an easy one-stop way of comparing and purchasing coverage on the Cyb3rw3b.

Insurance will be offered by firms like Esurance, Travelers and Progressive. Naturally the retailer will heavily market its latest financial offering, though Walmart will not be responsible for its operations.

Right now the service is still in its infancy; it’s in the process of exiting the pilot phase in Pennsylvania. Beyond the Keystone State it’s expected to enter additional markets including Louisiana, Mississippi, Missouri, Oklahoma and a handful more. A nationwide rollout is expected later this year. Save money. Drive Better… oh never mind…

[Source: The Truth About Cars]

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City drivers can potentially save money by turning to a pay-by-mile auto insurance policy.

San Francisco-based MetroMile allows motorists in California, Washington, Illinois and Oregon to pay by the mile for their auto insurance, stating that the typical person who drives less than 10,000 miles a year can save up to $400 annually. Customers simply plug the company’s free connected-car device, called the Metronome, into the diagnostic port of their vehicle so that the Metronome can capture mileage data and transmit it wirelessly.

SEE ALSO: Top 10 Insurance Myths Explored

In addition, MetroMile offers an iOS app for Apple devices that gives drivers ”predictive insights to help them save time and gas on their daily drives, easily diagnose check engine lights, and find their car wherever it is parked,” MetroMile said in a statement.

According to the company’s website, mileage charges are capped at 150 miles per day as an Illinois or Oregon driver and 250 miles per day as a Washington driver. The company also received an excellent rating from the agency A.M. Best Company, a nationally recognized statistical rating organization.

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