Cheap Auto Insurance – Who Gets It and Why

Potential clients often wonder whether it is safe to buy cheap auto insurance for their vehicle over concerns about whether or not the insurance company will be able to cover for damages in case of an accident. It is a well-known fact that consumers are always in search of a bargain, and this extends to just about everyone when they are looking to purchase auto insurance. And although there are some people who might be apprehensive about a cheaper policy, their fears are unfounded because there is simply no proof that a cheap auto insurance company that has a good reputation is not adequately equipped to compensate you in case of an accident.

Here are some of the reasons why your insurance provider might reward you with a cheap auto insurance policy:

A cheap auto insurance rate could be given in recognition of policyholders who have shown a commitment to the company. Elderly folks may also be asked to pay lower premiums due to their lower risk levels. If you have not filed for a claim for damages for a long period of time you may also be a candidate for reduced premium payments.

Most of the time, high premium charges are as a result of your own culpability. You might provide inaccurate information to the insurance underwriter with the hope of securing a lower premium. Underwriters rely on the information you supply to calculate premium payments. They also research the information you provide to make sure that your data is credible.

It is essential that you give accurate and honest data when seeing cheap auto insurance quotes online. Do not tweak reality in any way. Direct auto insurance quotes are meant to be error free, and you will likely be penalized for dishonesty. This is often the reason some clients are required to pay higher premiums. As such, you should review the nitty-gritty of the quotes and related policy documents before you submit it to the underwriter.

If a company charges very high premiums for vehicle insurance, there might be details in the fine print that are not being revealed. Not all auto insurance companies are equal, so it is important to be well-informed.

Another reason that may lead to high insurance premiums is the type of policy chosen. A comprehensive direct auto insurance policy is more costly than third-party insurance. Although a cheaper policy may not offer as complete a level of protection, it may provide a cheap car insurance alternative that’s right for you needs.

– Mike

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Pay Less and Get More from Direct Car Insurance

The uncertainty of life calls for due preparation. It’s simply impossible to predict what might happen next when you are on the road. The only way you can drive around with peace of mind is by ensuring your vehicle is insured. Of course, auto insurance does not guarantee most safety on the road, but it provides you with the assurance that you will not face financial difficulty in case of an accident. Nowadays, you can pay less and receive more when you sign up for car insurance cheap from direct auto insurance providers.

A complete lack of car insurance or insufficient coverage basically means you will be liable for most of the damages incurred from an accident you are responsible for. These expenses include the damages to the automobile(s) and property, as well as medical bills for all parties injured. The abruptness of an accident and the associated costs can leave a huge dent in your savings. This is besides the emotional anguish and pain of recovery from a particularly nasty crash. No one wishes to be caught up in such an unfortunate situation. This is the reason every driver should obtain auto accident insurance for their vehicles.

Uninsured drivers usually complain about the high costs of coverage for their vehicles. But look around and you’ll soon find that there has been high competition among online car insurance companies for the past few years. This has led to a considerable dip in the rates of premium charged for different insurance packages. You can obtain cheap auto insurance quotes online and compare their rates for various automobile insurance packages. This will help you to choose the cheapest auto insurance company with the most benefits.

It is also easier to find a cheap auto insurance company when you fully comprehend the factors that come into play in the calculation of premiums. For instance, a low maintenance car model costs less to insure than an expensive one. An automobile with safety features such as airbags, car alarms and similar devices is also cheaper to insure. The amount of mileage your vehicle clocks on the road also plays a role in calculation of the premiums. The fewer miles you clock, the lower the premium rates charged. Another factor that comes into play in the calculation of premiums is your personal driving record. A driver with an unblemished record qualifies for direct car insurance bonuses.

You never know what will happen while you are on the road driving. This capricious nature of driving makes the need to carry auto insurance your vehicle an inevitability. Some drivers constantly complain about the high cost of vehicle insurance, but with a little effort, there are ways through which you can obtain car insurance cheap with extra benefits. First though, you must compare auto insurance quotes online and use some of the tips outlined above; to get the cheapest auto insurance with most benefit for you and your ride.


Choosing Auto Insurance – A Guide to Online Comparison

The process of choosing the most suitable car insurance for your vehicle can prove to be a daunting task. There are so many insurers out there, all seemingly offering the best deals, and you’d better get it right lest you end up purchasing the wrong coverage. The good news, however, is the internet really has made it simpler to search for the best car insurance online.

The best sites online for auto insurance compare offerings of course, but also provide information and reviews on the differences between various insurance firms and their products — covering topics like quality of customer service, special discounts, policy holder satisfaction, and similar things that set them apart (and hopefully above) the rest. This information can prove invaluable to anyone shopping around for coverage.

Successful online search for auto insurance quotes requires a certain amount of knowledge on insurance products, since you will have to tailor your search criteria very specifically in order to obtain the right results. For instance, using the search phrase “online car insurance” on Google, Bing, Yahoo, or other tip search engines will yield thousands of pages worth of information, and combing through so many results can be frustrating. However, by refining your phrase further, for instance, using the phrase “online car insurance for 2009 ford mustang,” instead will produce more accurate results.

Your area of residence is also important in your online search for direct car insurance and most websites will ask for your zip code, city and state in order to generate an accurate quote since different areas have different premium rates due to geographic, jurisdictional and demographic factors. If you’re shopping for cheap auto insurance choose insurance providers within your area.

Other information that you might be required to provide includes: records of traffic violations, past accidents and claims, where you reside, car model and the number of vehicles you need insured. The insurance company will ultimately conduct a thorough background check on your records, so there is no point in concealing any information.  They usually use your driving records to calculate auto insurance premium rates.

Insurance websites are more than just sites where you can get free insurance quotes, as many of these sites provide useful information through articles and forums. They keep their members updated on the latest developments in the insurance world, information on new products, and provide a forum for their customers to express their opinions.

Finding the right auto insurance firm online can prove elusive, as every direct auto insurance business blows its own trumpet and promises an unmatched, positive experience. Nevertheless, the internet has made it simpler for you to compare auto insurance quotes online. It is therefore possible to get a suitable insurance provider through online auto insurance compare facilities. Is there ever really such a thing as too much choice?


The Elements of No Fault Auto Insurance

The term ‘no fault auto insurance’ often confuses consumers a lot since most people assume that the term implies drivers are never held accountable for causing accidents. However, this notion is false and misleading as no fault auto insurance actually means that the insuring party will be held accountable for any accidents caused by a vehicle they have insured under this system regardless of where the fault lied.

The no fault system was designed with a view of eliminating lawsuits in case of small accidents, thus ensuring that the courthouses and the legal system by extension was not overloaded with such cases. And although cheap auto insurance companies ensure that motorists get back on the road as quickly as possible, it does not mean that a lawsuit cannot be filed, since individual states determine which kinds of accidents offer the option of initiating a lawsuit.

States that have implemented the no fault system use the same rules to assign blame in the event of an accident. Should the system find you to be the cause of the accident, then you can look forward to paying higher premiums.

In Louisiana, auto insurance firms have a system in which fault is determined and is based on a number system from zero to a hundred percent. Any driver who attains a ranking higher than zero is deemed to be at fault and this is noted in their insurance coverage records.

The no fault system is provided by specific states, and to get the best online car insurance firm offering the best rates, one needs to compare auto insurance quotes online. This will give you a wide range of choices from which to choose from. You can look for most vehicle insurance firms online and get cheap auto insurance quotes online from them.

A number of drivers who are against the system have argued that the no fault auto insurance system gives drivers leeway to cause accidents. They argue that bad drivers are rewarded for their driving since they are not given any incentives to drive safely on the roads, and that by avoiding lawsuits they are more likely to grow into repeat offenders.

On the other hand, supporters of the no fault system point out that the system protects drivers since they own liability insurance, and an increase in premium would be much better than paying for a lawsuit which can, of course, be very expensive.

It does not matter if you live in a state with a no fault system or not; most auto laws are complicated and the best way to get around them is to have a direct car insurance agent supporting you. This is especially true when trying to understand no fault auto insurance.


Major Factors That Determine Car Insurance Prices

Often when shopping around for auto insurance, you will encounter different prices and offers from different insurance companies who are all fighting for your business. For this reason, it is important to know how these companies work out the car insurance cost for your unique driver situation.

The first thing you need to know is that the newer the vehicle, the higher its insurance coverage will be, and this is for the simple fact that a brand new car is worth much more than an older vehicle. In addition, models that have a record of accidents resulting from manufacturer’s faults or models that have been recalled in the past attract higher insurance premiums, due to higher risk of a pay out. These two factors can help you decide on the type of vehicle to purchase if you are looking for the cheapest auto insurance.

Secondly: Your own driving record determines how much you will pay for insurance. Drivers who have caused accidents in the past usually pay a lot more than accident-free drivers. The latter also benefit from driver discounts which reduce the total amount they pay. According to statistics, accident rates are higher for drivers who are under 25 years old, so your age might also determine how much you will end up paying for your vehicle insurance.

If you use your vehicle for business or frequent travel, auto insurance will be higher than if your car is for personal or domestic uses. You  can also get cheap car insurance if you live in a small town or in a safe neighborhood, since chances of vandalism and car theft will be much less than in urban areas.

Your credit score can also be a factor in determining how much you will pay for insurance. If you have a less than perfect credit history due to issues like unemployment or excessive debt, it becomes a bit more difficult to get car insurance, but many companies now have manageable packages to insure your vehicle. Expenditures due to past accidents also reflect in your credit record, but if you search well, you can find individual insurance that takes this into account without penalizing you too severely.

Despite these factors, it is possible to get the cheapest insurance for your vehicle if you do a little leg work. Begin by getting cheap auto insurance quotes online to show you the best offers for insurance in your area. Many online auto insurance companies also offer discounts such as the above mentioned good driver discount, and others including low mileage discounts and senior’s discounts.

The different types of car insurance are also available at different prices, and most companies offer flexible payment methods that make it easier for you to make payments. For example, you can get  cheap car insurance like a liability only insurance policy available as a 6-month or 1-year policy payable in small, affordable installments.

Given this information, all kinds of drivers can find cheap insurance to suit their budget. Whether you have just bought your brand new car or if you have an accident history in your driving experience, you can estimate your car insurance cost and find the perfect affordable policy for you budget and needs.


5 Main Reasons to Choose Temporary Car Insurance Policies

Many car owners are unfamiliar with the logic behind temporary car insurance. Conventional auto Insurance policies for vehicles usually last for a minimum of one year. Temporary  coverage on the other hand can take anytime from one week to six months depending on your preference. Insurance companies provide temporary direct car insurance for both comprehensive and third party policies. Below are five major reasons why car owners may choose temporary vehicle insurance for their automobiles:

Selling a Car- When you are selling a vehicle, it is essential to have liability coverage before ownership eventually changes. This is meant to guard the value of the vehicle during the transition period. It also protects you against personal liability and the probability of damage by third parties.

Temporary Drivers- Your personal car insurance does not offer protection to individuals who reside outside your home. Similarly, whenever you use a vehicle whose cover is under someone else’s signature, you are not protected by the policy.  It is therefore important to obtain temporary coverage when using a relative’s or friend’s vehicle. You must also insist that anybody who drives your vehicle for more than a day should take up temporary coverage.

Seasonal Vehicles-Many people own an extra car that they take out on rare occasions only. You may have a convertible in your garage for summer days, a vintage sports car for special occasions or a snow mobile for winter. There is no need to obtain full coverage for such a vehicle. Instead, you can secure temporary coverage for the short period you take the vehicle out for a spin.

Rental vehicles: Most car rental companies do not provide clients with sufficient third party coverage. Their primary concern is the safety of their vehicle. Any extra cover you might need is usually overpriced by these rental companies.  Such instances may prompt you to go for temporary coverage for personal safety and protection.

Special Circumstances- Special circumstances can also prompt you to take up temporary direct auto insurance. If you have just bought a new vehicle from the showroom, the paperwork for insurance can take some time to prepare and complete. You will therefore require temporary coverage as you drive your new car home. Similarly, when you go on vacation to another state, your Car Insurance coverage may become limited or invalid.  As such, you might need to back up your protection with temporary direct auto insurance during the vacation period.

There are special circumstances that may require you to take up temporary car insurance. This is a short term coverage that might last from one day to six months, with regard to your requirements.  Five major reasons that may prompt you to go for such coverage include: Selling a Car, Temporary Driving, Seasonal Driving, Car Rental, and other circumstances such as driving during a vacation.

Car Insurance Comparison Sites – What to Look for

Whether you are looking for insurance for a new car or to switch from one insurance provider to another, car insurance comparison sites are an excellent resource for anyone looking to learn about car insurance. You can also make use of these sites to find a cheaper alternative to your current insurance plan or find a plan that offers better value for money. Either way, it is a good idea to compare auto insurance quotes online to find the best deal possible.

In most cases, finding car insurance quotes online is a process that only takes a few simple steps. Most online insurance companies offer different types of insurance, so begin by selecting auto insurance, then type in your zip code. Once you press the “get quote” button, you will get a list of car insurance companies in your area and the prices that each offers.

The next step is to go through the list of insurance companies and view their respective websites. Check the insurance policy to see what it covers, for example comprehensive insurance, third party insurance and other types of coverage. Choose the cheapest insurance you can find that offers the best coverage for your vehicle. Local and regional insurance companies should feature in the quote results. It is best to choose a company that is nearby to insure your vehicle but check that the policies are applicable in the different states especially if you intend to drive across state borders.

As a safety measure against con artists, call the insurance companies that you want to deal with to find out more about them including physical address and branch network. Remember that there are plenty of fraudulent scammers posing as insurance providers that use the Internet to snare unsuspecting insurance buyers, so a visit to the company’s offices is highly recommended. While there, get a quote and speak to their customer care representatives and gauge how well they respond to your queries.

Although it is possible to find a cheap auto insurance company from the comfort of your own home you should be cautious of whom you are dealing with. If you find a reputable online auto insurance provider do not be afraid to conduct your business online.

Using car insurance comparison sites is absolutely hassle free. Do not pay for insurance quotes, so any site that requires payment or email subscription should be avoided. The only payment you should make should be to the car insurance provider to purchase the policy for your vehicle. Keep these tips in mind and use the Internet to get the cheapest insurance for your car today.


The GMAC National Drivers Test and Young Driver Insurance Premiums

GMAC Car Insurance Company recently advised its  appointed agents, including,,  of a very interesting set of statistics — One that seems to reinforce the trend towards higher insurance premiums for young drivers.

GMAC has been studying the performance of licensed drivers of all ages behind the wheel on an annual basis. They have referred to this annual study as the GMAC National Drivers Test. Over the last 7 years, GMAC has performed this exam of the licensed driving community. Further; the statistics  contributed are considerable and important.

According to the most recent GMAC Insurance National Drivers Test, 40% of young adult drivers,  18-24, would fail their State’s New Drivers Test if required to take it today.

While the youngest group of drivers prove to be the least knowledgeable when it comes to safe driving, 3.2 drivers out of 10 (25-34 year older drivers) would also fail their home states driver’s test if they were required to take that test again today.

Very interesting;  30% of drivers ages 25-34 failed the National Drivers Test. Sadly, this is a 5% increase in their failure rate since 2009. All these age groups make up a huge portion of the nearly 40 million estimated people deemed unfit drivers on US streets and highways today. This is a very sad statistic.

Interestingly, the news regarding young drivers was not as bad as you would think.  The statistics this year showed 80% of new drivers who had taken the GMAC National Drivers Test, 16-17 years of age, showed they would pass the test if they were required to take their States Driving Test today.

This is really good news for everyone driving on the roads today. As a parent myself this is good news for all parents who have teens in the family which will be soon getting behind the wheel of the family car.

The most unsurprising finding of this year’s GMAC Insurance National Drivers Test was the information regarding older drivers. Bottom line; older drivers are among the safest drivers on the road today.  The older drivers in this years test did achieve higher test scores than younger drivers. Those drivers 45-59 (16%) and those 60-65 (13%), received the lowest failure rates of all age groups. Older drivers are safer drivers, on average.

If you want to take the GMAC National Drivers Test; visit and click on the National Drivers Test button to take the test.