Quantcast
Channel: insurance Archives » AutoGuide.com News

Top 10 Cheapest Cars to Insure in 2019 – The Short List

0
0

Get the Flash Player to see this player.

Cars and trucks aren’t getting any cheaper, and neither is insurance.

According to analysts at Kelley Blue Book, during April 2019 the estimated average new-vehicle transaction price in the U.S. was nearly $37,000! You can blame added safety features and technology, the proliferation of luxury amenities and more for this ever-growing figure.

If new-vehicle sticker shock isn’t enough to make you convulse, you’ve also got to budget for fuel or electricity, plus maintenance and possible repairs. Oh, and you’re definitely going to need insurance.

ALSO SEE: Top 10 Most Reliable Cars

Now, this is one area where you could save significant amounts of cash if you’re smart. As they have for nearly a decade, the website Insure.com has compiled a list of the cheapest vehicles to get insurance for. Supposedly they compared rates in every state of the union for some 3,000 different models and trim levels, shopping prices from six major providers and then averaging them out.

So, what are the best insurance bargains out there? Well, here are 10 of the most affordable 2019-model-year vehicles to insure.


10. Jeep Compass Sport, $1,349

2018 jeep compass

And we start with the Jeep Compass Sport, a handsome off-roadable compact crossover that looks like a baby Grand Cherokee. Insurance for this little mountain goat will supposedly set you back $1,349. Not too shabby. Base price for most-affordable Compass is likewise budget-friendly at 23 grand and change including delivery.

Get Jeep Compass Prices
 

SEE ALSO: 12 Things to Know About Alfa Romeo – The Short List


9. Subaru Forester 2.5i, $1,347

2019 Subaru Forester

Undercutting that Jeep by a single two-dollar bill – for insurance coverage, of course – is the Subaru Forester 2.5i. Keeping costs down, this Japanese utility vehicle comes with loads of standard equipment including all-wheel drive, the automaker’s EyeSight suite of advanced safety equipment and even unbeatable crash-test scores, all things insurance companies love!

Get Subaru Forester Prices
 

8. Ford Escape S, $1,344

In position No. 8 on this list is the Ford Escape S, the most affordable version of this compact utility vehicle. In this configuration, it comes with a 2.5-liter engine, a phalanx of airbags and not much else. Plan on spending around $1,344 for insurance. Base price is about $25,000 to park one in your garage.

Get Ford Escape Prices
 

ALSO SEE: Top 10 Best Cars for Teens – The Short List


7. Jeep Renegade Sport, $1,338

Next up, another Jeep! Slightly cheaper to insure than its bigger brother is the diminutive Renegade Sport. According to Insure.com, the average cost of coverage for this petite SUV is $1,338. Grab a front-wheel-drive model with a manual transmission and standard 1.4-liter turbocharged engine and it will set you back about 20 grand.

Get Jeep Renegade Prices
 

6. Honda CR-V LX, $1,333

2018 honda cr-v

Coming in sixth place is the Honda CR-V LX, the first of three vehicles from the Japanese automaker that made it in this top-10 list. Coverage will cost you around $1,333, one solitary Abraham Lincoln less than the Renegade. Shielding passengers from harm should the unthinkable happen, it’s earned a Top Safety Pick score from the Insurance Institute for Highway Safety.

Get Honda CR-V Prices
 

5. Honda HR-V LX, $1,325

The subcompact Honda HR-V utility vehicle is another insurance bargain, averaging just $1,325 for coverage. Even this entry-level model comes with a flipping and folding second-row Magic Seat plus standard front-wheel drive and a 141-horsepower 1.8-liter engine, all for less than $22,000.

Get Honda HR-V Prices
 

SEE ALSO: 8 Great V8 Swaps – The Short List


4. Mazda CX-3 Sport, $1,307

Moving along, in spot No. 4 is the Mazda CX-3 Sport, yet another subcompact crossover. In stripped-down form, it comes with a 148-horsepower engine, front-wheel drive and a six-speed automatic gearbox, all for 21-grand and change. The national average to insure this vehicle is a paltry $1,307.

Get Mazda CX-3 Prices
 

3. Subaru Outback 2.5i, $1,306

But even cheaper than that is the Subaru Outback 2.5i, which clocks in at $1,306. Of course, insurance companies love Subarus because they come with lots of safety equipment and are relatively inexpensive. This base Outback starts around $27,000.

Get Subaru Outback Prices
 

2. Jeep Wrangler Sport, $1,304

Why the Four-Cylinder Hybrid is the Best Powertrain in the Jeep Wrangler

Wowzers, a third Jeep! The off-road brand’s Wrangler also made this list, in Sport form. Insurance companies must love these rugged and often fairly bare-bones vehicles. Sturdiness and mechanical simplicity, in theory, keep them out of trouble. Coverage for this flavor of Wrangler averages $1,304. Base price for one is less than $30,000.

Get Jeep Wrangler Prices
 

1. Honda Odyssey, $1,298

And now for the vehicle that, on average has the lowest insurance rates! Drumroll, please… It’s the Honda Odyssey minivan! Yes, this family hauler will cost you just $1,298 to cover. They say that’s $514 less than the national average of $1,812.

SEE ALSO: Car Maintenance, 10 Things Every Car Owner Should Know – The Short List

Interestingly, the Odyssey has always been an insurance bargain. For eight of the 10 years they’ve been compiling this list, it has made it in the top five. And back in 2010 when they started ranking new models this van cost $1,095 to insure, which means over the last nine years the cost has only increased by $203.

Get Honda Odyssey Prices
 

Check out more episodes of The Short List!

The post Top 10 Cheapest Cars to Insure in 2019 – The Short List appeared first on AutoGuide.com.


Insurance Companies Developing Apps to Track Drivers

0
0

progressive-snapshot

Insurance companies are becoming increasingly tech savvy about monitoring their customers.

Progressive and Allstate are turning to smartphone apps to monitor how well their customers are driving, a natural progression from OBD-II connected devices like Progressive’s Snapshot. The Snapshot device currently is installed in your dashboard, monitoring a 30-day driving period. Based on the drivers’ mileage and hard stops, customers could be eligible for discounts.

SEE ALSO: 10 Ways to Lower Your Insurance

Now that smartphones are so popular, Progressive and Allstate are both looking to towards apps that would make it easier to monitor their drivers without having to install such a device. Currently, Allstate has launched Drivewise, an app that monitors and gives feedback on driving behavior and is testing it in Montana, Nebraska and New Hampshire. Progressive on the other hand, is running a contest for developers to come up with a clever app but has also been speaking with multiple automakers about installing software that can track and make judgements on driving.

The post Insurance Companies Developing Apps to Track Drivers appeared first on AutoGuide.com.

Touring the Hagerty Insurance Private Car Collection

0
0

The Hagerty Garage

Nestled in the untamed wilds of Northern Michigan, or more specifically the charming mini-metropolis of Traverse City, is a world-class collection of vintage cars you’ve probably never seen or even heard of before.

The-Hagerty-Garage-54.JPGInformally referred to as The Hagerty Garage, this eclectic group of vehicles is comprised of about 25 autos plus a handful of antique motorcycles, some boats and a few outboard motors for a little variety. This private collection is the property of Hagerty Insurance, the largest classic car insurer in the world.

The firm is headquartered in Traverse City and employs around 700 people. They have offices across the U.S. and Canada as well as a branch in the UK that serves Europe.

Jonathan Klinger, public relations manager at Hagerty and my tour guide explained that the collection has three overarching themes. There are cars that have been in the Hagerty family, vehicles restored by Hagerty kids and automobiles with local history. The beautiful red 1967 Porsche 911 S for instance was rebuilt by company CEO McKeel Hagerty. “Some of these cars have been in the family since the ‘60s,” Klinger said.

The-Hagerty-Garage-02.JPGOne vehicle with particular local significance is a 1948 Ford convertible. Nicknamed the “Dunesmobile,” this fully restored drop-top was actually used to take tourists for thrill rides across Sleeping Bear Dunes in the Northwestern corner of Michigan’s Lower Peninsula. It was part of a fleet of 10 such Fords and is the last known survivor.

Another real eye-catcher is a 1969 Chevrolet Camaro SS 396. Painted bright orange this car is impossible to ignore. Curiously it was actually restored by Hagerty employees. Klinger said the company has a special program that allows any worker to get their hands dirty in the garage.

This particular Camaro was totaled in a crash, but instead of scrapping it the company decided restoration was the right thing to do. So far employees have brought three cars back to life in just four years but this ’69 took two years of work to be roadworthy once again because of the damage it sustained

SEE ALSO: Visiting the Studebaker National Museum

Setting Hagerty’s vehicular assemblage apart from other car collections is that these beauties are anything but trailer queens; they actually get used. In fact the company hosts special events where they teach kids how to drive cars with manual transmissions and they do it with some of their vintage vehicles. How cool is that? I even got to test drive a 1915 Ford Model T, which was an unreal experience.

The-Hagerty-Garage-03.JPG

Understandably not everything sees regular use. Klinger said, “The only car that doesn’t get driven much is the E-Type Jag.” He said it’s 100 percent origianl and is simply too special to risk getting damaged.

And Klinger knows a thing or two about driving old iron. He gained notoriety for using a 1930 Ford Model A sedan as his only road-going transportation for an entire year. He put the car through every kind of weather imaginable from rain and snow to baking-hot temperatures and covered salt-covered roads. The project was called 365 Days of A and it concluded a couple years back.

The-Hagerty-Garage-23.JPGBut when asked which car topped his list Klinger said, “My personal favorite is that 1917 peerless, hands down. For me as a car enthusiast I love the early cars, even pre World War I … I’m always amazed at the early technology.” This green beauty is powered by a cutting-edge-for-the-time V8 engine, which was tremendously powerful in its day.

He also has a personal connection to this two-seat behemoth, which sits about as tall as a bar stool and has a cockpit that’s narrower than a laundry basket. In fact it’s so tight in order to operate the clutch pedal you have to remove your left shoe!

Upping its sentimental importance, Klinger said he knew the previous owner before the car was acquired by Hagerty. Additionally he campaigns it in The Great Race, a long-distance, controlled-speed, endurance competition for vintage cars. Accordingly this Peerless is fitted with special analog timing devices for making precise speed and distance calculations. And after riding shotgun around the block it’s easy to see why this is his top choice; it makes glorious noises!

SEE ALSO: Top 10 Coolest Cars at Woodward Dream Cruise

“As time goes on this collection will slowly grow and evolve,” said Klinger thanks in part to the company’s employee restoration program. He also said, “The reason that this collection exits, it’s kind of part of the DNA of the company, the DNA of the family.”

The-Hagerty-Garage-10.JPGThe founder, Frank Hagerty, who recently passed away, got started in this business back in 1984 by insuring wooden boats. He did that at a time when other insurance companies wouldn’t touch them with a 10-foot yardarm. Klinger said they were viewed as “floating pieces of firewood filled with gas”

Over the years his company grew, fueled by customer service and common-sense coverage. Klinger said, “This business was built by a family of car enthusiasts not by a family of insurance enthusiasts.” This is something that’s immediately obvious after taking a peek inside The Hagerty Garage.

GALLERY: The Hagerty Garage

The-Hagerty-Garage-02.JPGThe-Hagerty-Garage-03.JPGThe-Hagerty-Garage-04.JPGThe-Hagerty-Garage-05.JPGThe-Hagerty-Garage-11.JPGThe-Hagerty-Garage-13.JPGThe-Hagerty-Garage-14.JPG

The-Hagerty-Garage-15.JPGThe-Hagerty-Garage-16.JPGThe-Hagerty-Garage-19.JPGThe-Hagerty-Garage-20.JPGThe-Hagerty-Garage-25.JPGThe-Hagerty-Garage-27.JPGThe-Hagerty-Garage-29.JPG

The-Hagerty-Garage-30.JPGThe-Hagerty-Garage-31.JPGThe-Hagerty-Garage-32.JPGThe-Hagerty-Garage-33.JPGThe-Hagerty-Garage-34.JPGThe-Hagerty-Garage-35.JPGThe-Hagerty-Garage-36.JPG

The-Hagerty-Garage-42.JPGThe-Hagerty-Garage-43.JPGThe-Hagerty-Garage-45.JPGThe-Hagerty-Garage-46.JPGThe-Hagerty-Garage-54.JPGThe-Hagerty-Garage-50.JPGThe-Hagerty-Garage-53.JPG

The post Touring the Hagerty Insurance Private Car Collection appeared first on AutoGuide.com.

Can I Insure a Modified Vehicle?

0
0

Can You Insure a Modified Vehicle?

Insurance is something everyone needs but no one wants to pay for. Shelling out a big chunk of change every month for an essentially invisible service seems like a gross financial burden until you actually need it.

This is especially true of car insurance. Maybe you’ve never had an accident or perhaps you haven’t even been pulled over since Regan was in the White House, but no matter how cautious you are having good insurance is a smart decision.

And all of this is fine and good if you drive a showroom-fresh Toyota Camry, but what if your car isn’t stock? What if it’s got modifications? Here are some guidelines to make sure your upgraded ride is covered.

Farmers Insurance LogoTo get some answers we talked to Andrew Smidt, underwriting manager at Farmers Insurance about coverage for aftermarket-enhanced vehicles. Surprisingly there’s actually good news for enthusiasts with upgraded cars and trucks. He said, “Our standard auto policy is designed to insure vehicles that are factory built,” but, he said they are still able to offer coverage for vehicles with “minor modifications.”

Smidt said the standard Farmers auto insurance policy typically covers up to $1,000 worth of modifications. But he also cautioned that it depends on what those upgrades are. Things like special graphics, window tinting, smoked tail-lamps or other minor enhancements should be covered by the standard policy up to a grand. But beyond that, stuff it starts to get a little iffy.

“The thing that we get concerned with is anything that changes the way the vehicle drives, makes it less roadworthy or anything that’s not legal,” said Smidt. This means plunking a gigantic turbo in your sport compact, jacking your pickup truck skyward with a lift kit or putting race headers on your sports car are probably not going to be covered.

SEE ALSO: 10 Ways to Lower Your Insurance

Smidt said, “[If] you put something that’s illegal in your vehicle we’ll put it back to the way it was,” but if you get in an accident and file a claim they’re not going to replace components that break the law.

In simple terms this means you’re still covered in spite of any modifications you’ve made to your car or truck, the company simply won’t pay to replace those modifications.

Worst of SEMA 2013 01

But let’s say your vehicle has a bunch of upgrades, more than a grand that’s covered by one of Farmers’ standard policies. What are you supposed to do? “If you modify past that and did something [like] a special paint job or some interior equipment that was more than that, then there’s a customization endorsement that can be used,” said Smidt. Think of these as special add-ons to a standard policy.

To get an endorsement a customer would have to go and talk to a sales agent, walking them through the upgrades they’ve made to their vehicle. If the customer is eligible and the endorsement is available in their state, one of these extra-cost additions from Farmers will cover modifications up to $10,000.

SEE ALSO: Top 10 Cheapest Cars to Insure

Despite their willingness to work with customers that have vehicles with aftermarket enhancements there’s one thing they want absolutely NOTHING to do with. If you go racing or get involved in a speed contest of any kind, “There would be no coverage at that point,” Smidt said. This applies to things like track days and of course street racing, which is an incredibly stupid thing to do, though it makes us wonder if Vin Diesel’s Dodge Charger in The Fast and the Furious was covered in some way.Worst of SEMA 2013 05

In addition to policy endorsements Farmers also offers specialty insurance products. If you’ve got a classic vehicle or a show car you could opt for something that’s known as a stated-value policy. Smidt said these “provide coverage up to the limit that the customer requests.”

Let’s say you have a ’67 Camaro and it’s got historical plates. You might insure it with one of these policies for $25,000; if it ever got totaled in a wreck you’d get a check for that amount.

When it comes to vehicle modifications Farmers’ main focus is getting customers to talk to their agents, and that’s good advice regardless of who your insurance carrier is. If you have special needs or require a unique policy to cover a modified car or truck company representatives can help guide you to the most appropriate policy.

GALLERY: Trucks of the 2013 SEMA Show

Chevy-Silverado Lifted.JPGDropped-Ram-1500.JPGFreightliner-Drag-Truck.JPGIron-Cross-F350.JPGRBP-Ram.JPGRam-2500-1.JPG

RAM-Duallie-Nose.JPGTuxedo-F350-1.JPGRoad-Armor-F350-1.JPGRBP-Ram-Paint.JPGRAM-Duallie.JPGTuxedo-F350-Nose.JPG

Discuss this story on our Luxury Lifestyle Forum.

The post Can I Insure a Modified Vehicle? appeared first on AutoGuide.com.

What to do After a Crash

0
0

What to do After a Crash

Like an addendum to Murphy’s Law, the unforeseen tends to happen when you least expect it; misfortune is like a lot like a combination ninja/cat burglar/stealth bomber. Glance away for a split second and BAM, something bad happens.

Whether your dog sneaks a slice of pizza off your dinner plate or a friend’s printer stops working for no apparent reason right after installing fresh ink cartridges, misfortune is a fact of life. Likewise, automobile crashes can occur like a bolt out of the blue. One instant you’re zinging along and the next a driver behind you is trying to get a closer look at what you’ve got in the trunk by using their crossover as a battering ram. Let’s say you’ve just been involved in an accident, here are some helpful tips from the folks at AAA.

Preparedness

1. Preparedness

One thing that will make dealing with a crash much easier is being prepared. No, you don’t have to have a FEMA’s worth of supplies and emergency equipment on hand, but a few basics will help immeasurably. Keep a pen and some paper handy for jotting important information down. A smartphone, digital or disposable camera is wise as well for documenting the scene. It also pays to have your insurance and registration information handy and organized. You don’t want to be digging through the glove box for two hours to find this stuff.

Ambulance2. Check for injuries

OK, preparedness is all well and good before a crash occurs, but after the fact is when things really matter. And provided you’re able to, the very first thing you should following an impact is check to see if anyone is injured. Hopefully everyone involved is alright but if they’re not call 9-1-1 and get some medical professionals on the scene as soon as possible. Also, it might be a good idea to keep a first-aid kit in your vehicle, so add that to the items listed in point No. 1.

Pull Over

3. Stay safe

If nobody’s injured and the vehicles involved are drivable do your best to get them out of the way by pulling off to the side of the road or into a nearby parking lot if possible. This helps prevent unnecessary traffic snarls and it keeps you safer; you really shouldn’t be standing in the middle of a highway during rush hour. And even though they may be smashed like a snow globe dropped from a fourth-story window, turn your hazard lights on to help warn other motorists. Signal flares aren’t a bad idea, either, especially if your ride is immobilized.

Call the Police

4. Law enforcement

Now you’ve got to call the police. You could skip getting the constabulary involved but that’s a really bad idea. If you don’t report a crash to law enforcement you may have no recourse down the road, so go ahead, give Ol’ Smokey a ring and get an investigation going. Chances are you’ll be glad you did, especially if you’re not at fault.

Accident Investigator

5. Play accident investigator

After all of this stuff is out of the way it’s a good idea to document the scene. Grab a camera (as long as your Kodak Fun Saver didn’t expire in 1998) and snap a few pictures of your car, the other vehicles involved and any property that’s been damaged.

SEE ALSO: Why do Car Seats Expire?

Next you’ll want to record a variety of information about the other parties involved. Make sure to get their full names; addresses and e-mail addresses; the makes, models and years of all vehicles involved; vehicle identification numbers (VIN); license plate numbers; driver’s license numbers; as well as insurance carriers and policy numbers. If you didn’t keep a ream of lined paper in the trunk to record all of this you may want to consider it in the future.

Insurance Forms

6. Notify your insurer

If you thought talking to the police was rough, now you’ve got to contact your insurance provider. Many companies have employees available 24/7 to help you through the claims process. If possible, it’s likely best to notify them as soon as possible, ideally from the scene of the crash, though jamming bamboo slivers under your fingernails may be more appealing than dealing with an insurance company.Unattended Property7. Unattended vehicle or property

No, that unoccupied van you just sideswiped was not abandoned, it was merely unattended. If an accident you’re involved in causes any damage to property or unattended vehicles you should take action to inform the owner. If that person is AWOL then at the very least attach a note to their vehicle or property with your contact information. It’s just the right thing to do.

Body Shop

8. Repair time!

Next, you get to take your car (or have it towed) to a body shop so they can scrub the blood and gristle from the undercarriage and fix any cosmetic damage that may have occurred from hitting that jogger. Some insurance companies have partnerships with certain repair firms, which may provide some helpful benefits, a free rental car perhaps.

Pray

9. Pray

And finally, it’s wise to make a few entreaties to the sky deity of your chose, asking him/her/it to prevent your insurance company from sending you your rates into low-earth orbit. Insurers love charging “at-risk drivers” absurd amounts of money for coverage; a little faith at this time could save you down the road.

SEE ALSO: IIHS Crash-Test Ratings Explained

The tips and suggestions highlighted above are helpful when you’re involved in a motor-vehicle crash.  But as always it’s best if you can avoid getting into an accident in the first place. Remember to drive defensively, don’t let technological temptations distract you and always remain observant of your environment.

Hungry for more? Check out our Tips and Advice section.

[Source: AAA]

The post What to do After a Crash appeared first on AutoGuide.com.

How to Save Big Money on Car Insurance

0
0

Insurance Deductible Increases

Looking to lower your car-insurance premium? Aren’t we all? Well, one easy way to cut the cost of coverage is to raise your deductible.

Car Insurance SavingsA study published by InsuranceQuotes.com clearly illustrates that higher deductibles result in big savings, though not all drivers benefit equally. Motorists in some states make out like bank robbers while others get shafted.

Still, if you increase your insurance deductible – that is the amount a policyholder has to pay before coverage starts – from $500 to $2,000 the national average saving is 16 percent. In some states the reduction was nearly double that at a whopping 30 percent! Without question this is one of the easiest ways to save money on insurance.

SEE ALSO: How to Drive Through a Roundabout

But two-grand for a deductible is a bit steep for some drivers. What if you increase that number from $500 to a more reasonable $1,000? Well, nationally that still results in a nine percent savings.

Residents of Massachusetts, South Dakota, Kansas and Wyoming should reduce their costs the most from this deductible increase. Bay State drivers save the most at more than 19 percent!

On the other side of the coin, motorists in Michigan, Florida, Louisiana and North Carolina get thrown under the bus. Drivers in The Mitten State really get screwed, saving less than four percent by doubling their automobile insurance deductible from $500 to $1,000. Exacerbating this issue, Detroit residents already pay the highest rates for insurance in the whole country.

Click here for more tips and advice.

 

The post How to Save Big Money on Car Insurance appeared first on AutoGuide.com.

Usage-Based Auto Insurance Popularity Wanes

0
0

allstate-drivewise

Usage-based car insurance is losing popularity among American drivers.

According to a recent survey conducted by Princeton Survey Research Associates International (PSRAI), 51 percent of Americans said they would never consider using a pay-as-you-drive insurance program, up from 37 percent last year. The survey suggests that millennials are most likely to use such a service and that they are also the least concerned with privacy issues. Interestingly, 26 percent of respondents said they did not know how usage-based car insurance worked while 21 percent said their primary concern was sharing personal information.

SEE ALSO: What is Usage-Based Car Insurance?

Usage-based car insurance generally employs  a small sensor installed on the vehicle, like the one pictured above, to track mileage, what time of the day owners are driving and how hard drivers hit their brakes. The survey finds that many Americans incorrectly believe that those sensors monitor for drunk driving and driving in high-crime neighborhoods, which they do not.

It also showed that millennials are more than twice as likely as their older peers to hear about pay-as-you-drive insurance from friends or family. Nearly 75 percent of Americans said they learned about usage-based car insurance through a television commercial.

The post Usage-Based Auto Insurance Popularity Wanes appeared first on AutoGuide.com.

10 Things Your Insurance Company Knows About You

0
0

Top 10 AutoGuide insurance knows

Your insurance company can’t verify the annual mileage you drive, your marital status or who in your household drives your car, so why do they ask those questions when it comes to getting an insurance provider?

We reached out to an insurance expert for answers about what you share with your insurance provider. But one thing is for sure; your contract with an auto insurance provider is about trust.

“On every insurance application the consumer is asked to sign it in order to give consent,” says Anne-Marie Thomas, a spokesperson from InsuranceHotline. “You’re authorizing the insurance company to collect and assess your driving history in order to give you insurance.” That means that your driving history and the answers you give on your insurance application is what makes up the majority of the profile that your provider has of you.

The post 10 Things Your Insurance Company Knows About You appeared first on AutoGuide.com.


Top 10 Cheapest Vehicles to Insure

0
0

Top 10 Cheapest Vehicles to Insure Main Art

Car insurance is a necessary evil, an extra expense you really can’t drive without. Coverage is important both to protect yourself and others when the unexpected inevitably happens.

Paying that monthly premium can take a sizable bite out of your budget, especially if you drive an expensive or powerful vehicle. It’s no secret, as horsepower and performance go up so do insurance costs. Does every underwriter have a master’s degree in being a wet blanket?

SEE ALSO: 10 things Your Insurance Company Knows About You

Still, some models are much cheaper to cover than others. Accordingly the folks at Insure.com have determined the 10 most affordable vehicles to indemnify. To come up with this list they’ve compiled pricing information from carriers including Allstate, Farmers, GEICO, Nationwide, Progressive and State Farm, taking data from 10 separate zip codes in each state.

The following prices include $100,000 injury liability for one person, $300,000 for all injuries and $50,000 to cover property damage. The insured is a 40-year-old man with a clean driving record and a daily commute of just 12 miles.


 

Ford Escape

10. Ford Escape – $1,161

Ford’s compact Escape crossover lands in the No. 10 spot on this list, averaging less than $1,200 to insure annually. The S trim level of this vehicle is a bargain in more ways than one; base price is less than 24 grand.


 

Dodge Grand Caravan

9. Dodge Grand Caravan SE – $1,158

Next up, the Dodge Grand Caravan … SE! All it costs to insure one for 12 months is $1,158. What a bargain! But that’s not all. You can practically pick one of these breadboxes up for your signature plus the lint in your pockets as down payment. An SE model can be yours for around 25 large, but unbelievably this trim doesn’t scream “cheap” quite as loudly as the American Value Package, which is a few grand less.


 

Dodge Journey

8. Dodge Journey SE – $1,149

And if you’re looking for even more value you can spend a little extra time at your local Dodge dealer because the brand’s Journey crossover is also an insurance bargain. On average an SE version of this vehicle will set you back just $1,149 to cover for a year. Base price for one of these is less than $25,000 including destination fees.


 

Subaru Outback

7. Subaru Outback 2.5i – $1,144

But American vehicles aren’t the only ones that are affordable to insure, oh no. You can drive a Subaru Outback 2.5i without breaking the bank because annual indemnity costs for this crossover average just $1,144. You’ve probably got that stashed away in your couch cushions. Out the door you can get one of these vehicles for about 26 grand.


 

Chrysler Town and Country

6. Chrysler Town & Country Touring – $1,140

Well, that was a brief reprieve but we’re back at the Pentastar brand for our No. 6 model. It should be no surprise that if the Dodge Grand Caravan is on this list then its identical twin will be as well. The Chrysler Town & Country miniature vanlette also earned itself accolades for being affordable to insure. Annual coverage for one of these family-haulers averages a paltry $1,140.


 

Jeep Compass

5. Jeep Compass Sport – $1,140

Surprise, surprise, we’ve got another Chrysler vehicle on this list! Tying the Town & Country for insurance affordability is the Jeep Compass Sport. Undercutting other vehicles presented here, the base price for one of these is less than $20,000, not including any rebates that may be available. In more ways than one the Compass is extremely affordable.


 

Honda CR-V

4. Honda CR-V LX – $1,115

Joining the Subaru Outback listed above is another Japanese vehicle, the ever-popular Honda CR-V. Out thrifting even the miserly Compass, this high-quality crossover offers customers a lot of features in a long-lasting, no-nonsense package. Annual insurance costs average just $1,115. As for vehicle pricing, you can snag yourself a CR-V for $24,000 and change.


 

Jeep Patriot

3. Jeep Patriot Sport – $1,104

This is getting old. Next up … ANOTHER JEEP, specifically the Patriot Sport. This off-road-focused crossover kicks off at less than 18 large, not counting any rebates, which could be significant based on where you live. But a bargain-basement price is not the Patriot’s only budget-boosting trick. Annual insurance costs average a paltry $1,104. How’s that for value?


 

Honda Odyssey

2. Honda Odyssey LX – $1,103

Undercutting the Patriot by just one solitary buck in average annual coverage costs is the Honda Odyssey LX minivan. Widely considered the best of its breed on the market today, this vehicle is a great option for families; it’s safe, reliable, efficient and not to bad of a drive, either. Regrettably it’s not that cheap, starting around $30,000 including destination fees.


 

 

Jeep Wrangler

1. Jeep Wrangler Sport – $1,080

How’s this for a surprise? It’s hard to believe, but according to Insure.com of all the vehicles out there Jeep’s Wrangler Sport is the cheapest to insure. Um, how? Well, we’re not entirely sure but this SUV averages little more than a grand to cover for 12 months. The Sport model is the cheapest version available wearing a starting price of less than $24,000. Fortunately higher-end trim levels are also extremely affordable to insure.

[Source: Insure.com]

The post Top 10 Cheapest Vehicles to Insure appeared first on AutoGuide.com.

Michigan is Most Expensive State for Car Insurance

0
0

welcome-to-michigan

A study has revealed the most expensive and least expensive states in the U.S. to insure a car.

Leading the way as the most expensive state in the U.S. for car insurance is Michigan with an average rate of $2,476. The study was conducted by Insure.com, who has done the annual study since 2010 and Michigan has ranked among the top three states for most expensive rates every year since.

One of the major factors that makes Michigan an expensive state for auto insurance is because of its no-fault auto insurance system, which features the most generous personal injury protection (PIP) benefits in the country, according to Insure.com. Coming second on the most expensive list is Montana with an average rate of $1,886. Rounding out the top five are Washington, D.C. ($1,799), Louisiana ($1,774) and Florida ($1,742).

SEE ALSO: Top 10 Most Expensive Cars to Insure

Now if you’re looking to save money on auto insurance, Maine is your best option with an average rate of $805. The state has placed among the three states with lowest rates since the study began in 2010. “We have few large urban areas so we have lower overall traffic problems, and we don’t have hailstorms or tornadoes,” said Jeffrey McDonnell, president of the Maine Insurance Agents Association.

Ohio was last year’s least expensive state but this year rates have gone up slightly to an average of $843. The rest of the top five least expensive states are Idaho ($877), Iowa ($886) and New Hampshire ($905).

The study averaged rates for the 20 best-selling vehicles in the U.S. and compared rates from six major insurance companies. Insure.com admits that the car you drive matters, but it also added that “where you live usually matters more.” Factors that influence insurance rates include theft and fraud, with motorists paying more if they live in urban areas where claims are more frequent.

 

The post Michigan is Most Expensive State for Car Insurance appeared first on AutoGuide.com.

Liberty Mutual Will Inform Policyholders of Recalls

0
0

liberty-mutual-insurance

Liberty Mutual will start informing its policyholders if they have a pending recall on their vehicle.

The insurance company has announced a partnership with a third-party data provider that will help identify any open safety recalls announced in the past six months for their policyholders’ vehicles.

By using vehicle identification numbers (VINs) along with current customer contact information, the company will provide information to policyholders about a specific vehicle’s open safety recalls. Customers will also be able to login to their eService page to find up-to-date information to check whether their vehicle is impacted by a recall.

SEE ALSO: Top 5 Worst Car Insurance Deals

Last year, a record number 51.26-million vehicles were called in the U.S. and Liberty Mutual wants to stress how important it is to have a recalled vehicle fixed. A recent study conducted by the company showed that 62 percent of those surveyed believed it’s the automaker’s responsibility to notify them if their car is recalled. In some cases however, car owners aren’t able to receive the first class mail notifications because they have either changed addresses or the vehicle has changed ownership.

By tying it in with your auto insurance, Liberty Mutual will always have recent information on your mailing address as well as your vehicle, so that they can inform you of any pending recalls.

The post Liberty Mutual Will Inform Policyholders of Recalls appeared first on AutoGuide.com.

Tesla Owners Could Soon be Paying More for Insurance

0
0

tesla dealership in boston

The American Automobile Association has said that it is raising premiums on Tesla vehicles by up to 30 percent.

Tesla, naturally, isn’t happy with the move.

AAA Chief Actuary Anthony Ptasznik said that they noticed some anomalies in Tesla claims to date, so they took a look at some other data sources. Data from the Highway Loss Data Institute, a research organization that gathers and publishes data on vehicle insurance claims, backed up AAA’s findings. Ptasznik said that “looking at a much broader set of countrywide data, we saw the same patterns observed in our own data, and that gave us the confidence to change rates.”

The report covered 2014-2016 model years. In the large luxury SUV class, where the Model X is grouped, claim frequency is the same as the average for all vehicles, and the cost is 43 percent above average. Model X owners file 41 percent more claims than average, and they cost 89 percent more. The Model S, in the large luxury vehicle class, saw 46 percent more claims than average, with claims costing more than double average (the rest of the class is 13 percent more claims and 50 percent higher cost). That’s a big jump for insurers.

Russ Rader, a spokesman for HLDI’s parent group the Insurance Institute for Highway Safety offered an overarching comment.

“Teslas get into a lot of crashes and are costly to repair afterward, consumers will pay for that when they go to insure one,” he said.

SEE ALSO: AWD Tesla Model 3 Will Be Available Early Next Year

Tesla disagrees with the claims. In a statement to Automotive News, Tesla said that its cars were being incorrectly grouped because they had a higher rate of acceleration than their peers. The statement called it “false and misleading.” They also added that National Highway Traffic Safety Administration testing shows the Model S holds the lowest likelihood of injury and said that “we expect Model X to receive the best score for any SUV ever tested.”

Tesla is working with insurance companies as part of their Insure My Tesla program to ensure lower rates for their customers. The automaker says that in addition to the crash testing scores, “leading insurers also appreciate the added safety benefit of Autopilot.”

The company also argues if the Highway Loss Data Institute’s system placed it with the right competitors, Tesla’s crash data would not stand out negatively. The data however, says the Tesla Model S is involved in 46 percent more claims than average, and those claims cost more than twice the average.

A version of this story originally appeared on Hybrid Cars

Discuss this story on our Tesla Forum

The post Tesla Owners Could Soon be Paying More for Insurance appeared first on AutoGuide.com.

What to do if You Are Involved in an Accident

0
0

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.

The post What to do if You Are Involved in an Accident appeared first on AutoGuide.com.

Fisker Reports $30 M Loss in N.J. Port From Sandy

0
0

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]

The post Fisker Reports $30 M Loss in N.J. Port From Sandy appeared first on AutoGuide.com.

Animal-Related Car Crashes Spike in November: Study

0
0

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.

The post Animal-Related Car Crashes Spike in November: Study appeared first on AutoGuide.com.


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

0
0

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.

The post How to Drive on Snow and Ice: Winter Driving Safety Tips appeared first on AutoGuide.com.

Classic Car Collectors Suffer Big Blow from Sandy

0
0

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.

The post Classic Car Collectors Suffer Big Blow from Sandy appeared first on AutoGuide.com.

Drivers Not Prepared for Winter Weather: Survey

0
0

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.

The post Drivers Not Prepared for Winter Weather: Survey appeared first on AutoGuide.com.

Usage-Based Insurance to Dominate by 2020: Study

0
0

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

The post Usage-Based Insurance to Dominate by 2020: Study appeared first on AutoGuide.com.

Women Drivers May Get Insurance Price Hike in UK

0
0

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]

The post Women Drivers May Get Insurance Price Hike in UK appeared first on AutoGuide.com.

What is Usage-Based Car Insurance?

0
0

 

4968253750_3a0c08f893_b

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?

progressivecloseupjpg-d95e58af51ea33afThroughout 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?

Progressive-image2The 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

progressive-snapshot-devicejpg-1897230c15a78be5For 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?

4968253960_ce4eeaa487_bIt’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

Progressive-image1

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.

The post What is Usage-Based Car Insurance? appeared first on AutoGuide.com.

Insurance Rates Up, Customer Satisfaction Down: Study

0
0

 

geico-gecko

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.

The post Insurance Rates Up, Customer Satisfaction Down: Study appeared first on AutoGuide.com.


Usage-Based Insurance Proving to be Popular

0
0

usage-based-car-insurance

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]

The post Usage-Based Insurance Proving to be Popular appeared first on AutoGuide.com.

Drivers Rarely Shop For Cheaper Insurance: Study

0
0

car-insurance-shopping

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.

The post Drivers Rarely Shop For Cheaper Insurance: Study appeared first on AutoGuide.com.

Bad Credit History Could Double Your Insurance Rates: Study

0
0

car-insurance-shopping

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.”

The post Bad Credit History Could Double Your Insurance Rates: Study appeared first on AutoGuide.com.

Drivers Saved an Average $300 by Switching Insurance Companies: Study

0
0

state-farm-insurance

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.

The post Drivers Saved an Average $300 by Switching Insurance Companies: Study appeared first on AutoGuide.com.

Walmart Will Start Selling Car Insurance

0
0

Walmart Insurance

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]

The post Walmart Will Start Selling Car Insurance appeared first on AutoGuide.com.

Auto Insurer Creates Pay-by-Mile Program

0
0

metromile

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.

The post Auto Insurer Creates Pay-by-Mile Program appeared first on AutoGuide.com.

Cost of Car Ownership Dipped in 2013: Study

0
0

cost-of-driving

Cars are expensive any way you take them: Broken ones need to be fixed and fixed ones don’t come cheap. But the costs to own a car actually dropped in 2013 according to the results of a new study.

AAA released its annual “Your Driving Costs” study today and the results indicate that on average, driving was 1.64 cents per mile less expensive in 2013 than a year earlier. That’s a 2.7 percent drop to 59.2 cents per mile or an average of $8,876 per year. The figure assumes 15,000 miles of driving per year and takes a long list of variable operating costs into consideration. They include – deep breath – fuel, tires, registration, taxes and finance charges, maintenance and repair as well as insurance, license and registration fees.

Maintenance and registration fees were actually more expensive on average last year, but relatively cheap gas in the fourth quarter helped drag the average down. In fact, the study says average fuel costs fell by over 10 percent to an average 13 center per mile. As we draw nearer to the U.S. government’s 54.5 MPG mandate in 2025, cars are using less fuel to travel the same distance. On average, a gallon of regular gasoline cost $3.28 last year, which is 21 cents less than in 2012.

Of course, your costs depend directly on the type of vehicle you drive as well as other factors. The study offers a breakdown by vehicle type to offer a more applicable picture to individual owners. These are the average cost figures broken down by vehicle type:

  • 46.4 cents per mile and $6,957 per year for a small sedan
  • 58.9 cents per mile and $8,839 per year for a medium-size sedan
  • 72.2 cents per mile and $10,831 per year for a large sedan
  • 73.6 cents per mile and $11,039 per year for a four-wheel-drive SUV
  • 65 cents per mile and $9,753 per year for a minivan

The post Cost of Car Ownership Dipped in 2013: Study appeared first on AutoGuide.com.


10 Ways to Lower Your Insurance

0
0

 

Updated March 2019

Car insurance can be costly, but there are quite a few ways to reduce your monthly premium.

Some of these tips may be common knowledge, but new car owners might not know of them. Just making sure your insurance company has the latest information on your car is important and will help you get the most accurate insurance costs. Of course, don’t be afraid to ask your insurance company how you can save money. They might have specific tips tailored for you.


1. Change your deductible

car-crash

Increasing your deductible may result in a lower premium, but it comes with a trade-off. If you do need repairs – after an at-fault accident for example – you’ll have to pay more out of pocket for the repairs. It’s a risky move but if you’re desperate, it will help reduce your premium.

See Also: Smart Ways to Save on Insurance


2. Change your terms

car-insurance-shopping

If you have an older car, consider cutting collision coverage. For some people, the annual insurance costs with collision coverage could add up to be more than the cost of the car itself. Dropping this coverage will instantly reduce your insurance costs.

Additionally, maybe you exaggerated your annual mileage. Maybe your private garage isn’t properly described. Some insurance companies provide discounts for parking your car in a safe location or for minimal annual mileage. Making those details clear can save you cash.


3. Security features

onstar-button
A car with a security system is less likely to be stolen or have something stolen from it. Insurance companies like that because they want to minimize all possible risks. Other features like an immobilizer or GM’s OnStar can also help reduce premiums.

ALSO SEE: 5 Affordable Dash Cams That Don’t Suck

Also, be sure to mention safety equipment including features like adaptive headlights, night vision, blind spot monitoring, collision prevention alert, and lane departure systems. Some of these may have an impact on your insurance rates.

ALSO SEE: Buyer’s Guide: The 7 Best Car Alarms and Car Security Systems


4. Shop around

car-insurance-rates

You might have spent time comparing rates when you were shopping for a car, so consider doing the same cross shopping when it the time comes to renew. Insurance companies may even try to match and undercut each other to win your business. You’re a free agent and they want you (and your money) on their team.


5. Look for group rates

aaa-logo

Insurance companies often have special group rates for specific unions, clubs, and alumni groups. Check to see if you’re part of one because they can lead to a substantial discount. Of course, if the insurance provider you’re using doesn’t give your group a special discount try to find one that does.


6. Points and tickets

driving-ticket

Some states have a points system when it comes to your driver’s license. Traffic tickets add points that affect your premium. Going to court to settle these tickets to remove the points can be worthwhile in the long run to avoid paying inflated rates. Additionally, some of those states also offer defensive driving courses that can remove points.


7. Bundling

bundled

Companies often offer coverage outside of automobile insurance and will offer more attractive rates to customers that bundle their services. Even tenant’s insurance can help reduce your auto insurance significantly. In fact, bundling the two can leave you with a monthly premium below what you were paying for automobile insurance in the first place.


8. Usage-based insurance

usage-based-car-insurance

Think you’re a safe driver being judged unfairly? Consider usage-based insurance, a process that takes your driving habits into consideration. By plugging a small data recorder into your car, the system shares details about your mileage, acceleration and deceleration with your insurance provider. If you’re actually a safe driver, you can realize up to a 25 percent discount in some cases. However, if you’re paranoid, you may not be comfortable with the idea that your insurance company will know all the details of your driving style.


9. Tires

Cooper-Tires-Weather-Master-ST2-tire-test

Some insurance companies give you a lower rate if you switch your tires with the season. Because winter tires offer improved grip and safety in the snow, some insurers will offer a discount if you’re willing to use seasonally appropriate rubber.

See Also: These Are the 8 Best Winter Tires


10. Other discounts

Older-driver

There are other discounts available that you may not know about. Many insurance companies have discounts for senior citizens while some even provide good student benefits for maintaining a certain grade-point average. Simple things like online defensive drivers courses can reduce your insurance rates too, so be sure to ask what other incentives and discounts are available to you.

The post 10 Ways to Lower Your Insurance appeared first on AutoGuide.com.





Latest Images