Why has my car insurance premium gone up? Tips to lower your premiums

And how do we get the best price available?

As someone who
works in the industry, I am fully aware of the stigma that is sometimes
associated with insurance - mostly personal insurance policies, such as
car, home or travel insurances. It is common place on social networks,
chatrooms, forum sites, and in general chit chat amongst friends for the
subject of insurance to arise at some point, whether this be related to
price, a recommendation, or a complaint about a claim etc. I think we
have all had our renewal come through and gasped at the increase...only
to find your insurance company will reduce the price in alot of cases if
you call them to complain about it...! So what are the reasons for
this....?



The methods used
to calculate insurance are complex, but i will attempt to briefly
explain the mechanics behind the underwriting and the marketing
practices used by insurance companies and brokers in the car insurance
market today.



Ok, so
essentially, insurance is a business like every other, they are designed
to make a profit - lets assume for this exercise that an insurer does
not earn any additional income other than that from insurance premiums
alone, ie no investment returns, cross selling etc - this is classed as
"underwriting profit".



Lets also assume
that 100 people want to insure their car (they want to pass the risk of
any financial loss associated with their car to another party) - all of
them pay £200 for one year - the insurer collects £20,000 premium.
Essentially, to make money, the insurer does not want admin costs, or
the costs of claims to exceed £20,000 in one year. Lets say two of these
people have a crash with a couple of other third parties and it is
their fault - even minor incidents are likely to cost the insurer a
considerable amount, but if the claims involved personal injuries, which
many do these days, the costs of these claims may easily top £20,000
each.



Lets take the
£20,000 each claim for this example, which means the insurer has paid
out £40,000 - next year - the insurer is going to have to charge each
person £400 and hope it doesnt have any claims (even then it will only
have recouped the cost of last years claims and will break even).



It is worth
noting at this point that the car insurance market as a whole has not
made an underwriting profit for over ten years!! - this means that your
car insurance is still too cheap! Whattt?? i hear you say.....that cant
be true...!?



Unfortunately it
is - insurers discount the true underwriting premium in order to gain
market share, which is why you are always going to get a cheaper price
when first joining a company - the company know they wont make money off
the car insurance premium itself, but they will try to cross sell
Breakdown, or Legal Expenses to make some money back. Then at renewal,
you will find your price goes up to something more in line with what the
insurer needs to charge to make money.



Ok, so now lets
take a close look at what is going to happen to your car insurance
premium over the next couple of years - claims costs are rising, costs
of parts, solicitors fees, admin fees, all mean the average cost of a
claim is always rising with inflation. In addition to this, there are
more cars on the roads now than ever before, there are more cases of
fraudulent claims, exagerrated claims, and uninsured drivers (uninsured
drivers add around £25 to your insurance premium every year). Personal
injury claims are more frequent, and the payouts higher....can you see
where i am going with this....



Essentially,
your car insurance will probably rise this year, by as much as 10-20% -
and will possibly continue to do so next year - ultimately, the only
thing that can be done to prevent future rises, are for drivers to be
more careful on the roads.



However, individually, there are a few things you can do to keep the cost of your insurance down:



1. If you are Third Party Fire and Theft - get a quote for Comprehensive cover - these policies are sometimes cheaper


2. Try adding your Spouse to the policy - insurers give discounts for Insured and Spouse Drivers

3. Estimate at a
lower mileage per annum - obviously if you are going to go over it you
will be obliged to tell your insurer when you get close to the declared
limit

4. Shop around
at renewal - however, always be careful of excesses and cover offered -
generally you get what you pay for - the same applies to an insurance
policy

5. If you are
prepared to pay a slightly higher voluntary excess, you will get a small
discount off your premium, but have to pay more in the event of a claim

6. As the very last available option....get a smaller engined car!

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British Columbia

Car insurance in this province is provided by a government-run insurance
company, Insurance Corporation of British Columbia (ICBC). Since 1973,
BC consumers have had very little choice in how and where they buy their
car insurance. If they are dissatisfied with the service provided by
ICBC or the premiums they are being charged, drivers in BC do not have
the same option as do drivers in other provinces – the option to switch
insurance companies.

 

BC consumers do have some of the same choices available to other
Canadians when it comes to optional car insurance. Drivers can purchase
collision, fire and theft insurance from the private car insurance
companies competing for business in BC. These companies are committed to
ensuring consumers have the benefit of competition and choice, where
government inaction has made it difficult to do so.

A competitive business environment is a powerful incentive for insurers
to deliver the best service and to understand and meet consumers’ needs.
Auto insurance is no exception to this rule. As consumers’ needs
change, private sector insurance companies respond by offering
innovative new products and services. Product innovations such as first
accident forgiveness, replacement cost coverage, roadside assistance,
and payment plans were all adopted in competitive jurisdictions long
before they were available in provinces with government-run auto
insurance systems.

 

After the BC government’s 2001 election-campaign commitment to increase
competition in auto insurance, a lengthy examination of the role and
mandate of ICBC was conducted. The recommendations for insurance reforms
that came out of that review fell short of creating a fully competitive
market and giving consumers full choice and competition in automobile
insurance. Drivers in BC must still buy their mandatory insurance from
government-run ICBC.

Private-sector auto insurers continue to work to ensure that consumers
in BC have competition and choice in where, how and from whom they buy
auto insurance.

 

Minimum Required Auto Insurance

 Coverage in British Columbia

As of May 1, 2013

Compulsory minimum third-party liability:	$200,000 is available for any one accident; however, if a claim involving both bodily injury and property damage reaches this figure, payment for property damage will be capped at $20,000
Medical payments:	$150,000/person, including rehabilitation, excluding health insurance and other medical plans
Funeral expense benefits:	$2,500
Disability income benefits:	75% gross weekly wages to a maximum $300/week; 104 weeks temporary disability, lifetime if totally disabled; nothing is payable for the first 7 days of disability; homemaker up to $145/week, maximum 104 weeks
Death benefits:	Death of head of household $5,000 and $145/week for 104 weeks to first survivor, plus $1,000 and $35/week for 104 weeks to each child; death of spouse/partner $2,500; death of dependent child according to age, maximum $1,500/child
Impairment benefits:	N/A
Right to sue for pain and suffering?	Yes
Right to sue for economic loss in excess of no-fault benefits?	Yes
Administration:	Government (government and private insurers compete for optional and excess coverage)

 

Steps Required to Become a Fully 

Licensed Driver in British Columbia

Introduced Oct. 6, 2003

How do I become a Learner?

To enter the Learner Phase (Class 7L), you must:

• Be at least 16
• Take a vision test
• Take a driving knowledge test
• Have a parent or guardian’s consent (if you are under 19)

How long will I be in the Learner Phase?

You must be in the Learner Phase for at least 12 months. The Learner’s
license is valid for two years, but can be extended if you re-qualify on
the knowledge test. You can stay in this phase for as long as you like.

You must be 16 years of age (and have passed all license requirements) to enter the Learner Phase.

What are the restrictions while I am in the Learner Phase?

You must drive with a supervisory driver who is 25 or older and has a
valid Class 1-5 driver’s licence. You can have, along with the
supervisory driver, only one other passenger in the car with you.  You
cannot drive between midnight and 5 a.m. You cannot drink when you are
driving – your blood alcohol must be zero. Your car must have the
Learner sign on it.

The minimum penalty for violating any Learner Phase restriction is a
$109 fine. If you break the no-drinking-and-driving rule, you will get
an immediate 12-hour driving suspension, and you will not be able to
drive again for one month, on a first offense.  If you break the
no-drinking-and-driving rule again, you will not be able to drive for a
year.

What else should I know?

If you break any traffic rules while you are a Learner, you can lose
your right to drive very quickly. You will be allowed only two to six
demerit points (instead of the 15 to 19 points allowed to a Class 1-5
driver).  If you get too many demerit points, you will lose the right to
drive for a period of time.

If you get four demerit points (this would usually happen with two
tickets) you can lose the right to drive for one month.  If you get more
than four points you can lose the right to drive for a longer time.

You are also subject to all the penalties and fines that apply to other drivers.  For a chart of these, seehttp://www.icbc.com/Licensing/lic_fines_pen_fine_chart.asp

How do I become a Novice?

To enter the Novice Phase (Class 7N) from the Learner Phase, you must pass the Class 7 road test.

How long will I be in the Novice Phase?

You must be in the Novice Phase for at least 24 months, unless you take and pass an ICBC-approved driver education course (which
reduces this by 6 months). The approved course must be taken and passed
in the Learner Phase. In addition, to qualify for the six month
reduction, you must be prohibition free; ticket and violation free; and
not have any at-fault collisions.

What are the restrictions while I am in the Novice Phase?

You can have only one passenger in the car with you, unless you have a
supervisory driver who is 25 or older and has a valid Class 1-5 driver’s license (one or more immediate family members are allowed even without a
supervisor). You cannot drink when you are driving – your blood alcohol
must be zero. Your car must have the Novice sign on it.

What else should I know?

If you break any traffic rules, you will go back to the beginning of the
Novice Phase; you will lose all of the time you have spent in this
phase.

As in the Learner Phase, you will be allowed only two to six demerit
points (instead of the 15 to 19 points allowed to a Class 1-5 driver).
If you get too many demerit points, you will lose the right to drive for
a period of time.

To graduate from the Novice Phase, you must pass the Class 5 road test.

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Manitoba

Auto insurance in Manitoba is provided by a government-run insurance
company, Manitoba Public Insurance (MPI). Since 1971, Manitoba consumers
have had very little choice in how and where they buy their car
insurance. If they are dissatisfied with the service provided by MPI or
the premiums they are being charged, drivers in Manitoba do not have the
same options as do drivers in other provinces – the option to switch
insurance companies.

A competitive business environment is a powerful incentive for insurers
to deliver the best service and to understand and meet consumers’ needs.
Auto insurance is no exception to this rule. As consumers’ needs
change, private insurance companies respond by offering innovative new
products and services. Product innovations such as first accident
forgiveness, replacement cost coverage, roadside assistance, and payment
plans were all adopted in competitive jurisdictions long before they
were available in provinces with government-run auto insurance systems.

All provinces in Canada have some form of no-fault accident benefits
that are paid to all accident victims. The difference across the
provinces is the degree to which tort (the right to sue) or no-fault
(access to accident benefits) is emphasized. Manitoba auto insurance
operates in a “pure” no-fault environment. This means that if you are
injured in a car collision, you are entitled to a standard and per-established set of benefits provided by the government-run insurer.
If your needs should change or you require additional financial support,
you cannot – under any circumstances – sue for more.

Minimum Required Auto Insurance

Coverage in Manitoba

As of May 1, 2013

Compulsory minimum third-party liability:	$200,000 is available for any one accident; however, if a claim involving both bodily injury and property damage reaches this figure, payment for property damage will be capped at $20,000
Medical payments:	No time or amount limit
Funeral expense benefits:	7,877 (maximum)
Disability income benefits:	90% of net wages based on gross annual income of maximum $87,000 year; nothing is payable for the first 7 days of disability
Death benefits:	Death any time after injury; benefits for partners depend on wage and age of deceased and range from $57,798 to $435,000; benefits for dependent children depend on their age and range from $27,021 to $49,777; disabled dependants receive an additional $25,286; non-dependent children or parents receive $12,871
Impairment benefits:	Minimum $721/week, maximum $144,490 for non-catastrophic injury. Maximum $228,154 for catastrophic injury
Right to sue for pain and suffering?	No
Right to sue for economic loss in excess of no-fault benefits?	No
Administration:	Government (government and private insurers compete for optional and excess coverage)
Notes:	Residents of Manitoba involved in accidents in Quebec can receive from their own insurer the equivalent to the benefits available to Quebec residents from the Société de l'assurance automobile du Québec.First-party all perils* insurance is compulsory in Manitoba (deductibles vary according to type of vehicle). Policyholders may purchase coverage for economic loss greater than maximum accident benefits. Lawsuits are not permitted with respect to injuries sustained in automobile accidents in Manitoba. Victims and their dependants who reside in Manitoba are compensated by the government insurer for their injuries whether or not the accident occurs in Manitoba.

Steps Required to Become a Fully Licensed Driver in Manitoba

Introduced January 1, 2003

How do I become a Learner?

To enter the Learner Stage (Class 5), you must:

• Be at least 16 (15½ if you are in a high school driver education program)
• Take a vision test
• Take a driving knowledge test
• Have a parent or guardian’s consent (if you are under 18)

How long will I be in the Learner Stage?

You must be in the Learner Stage for at least nine months. You can stay
in the Learner Stage for as long as you want as long as you don’t let
your Learner’s licence lapse. You can leave the Learner Stage no earlier
than age 16 years and three months.

What are the restrictions while I am in the Learner Stage?

You must drive with a supervisory driver who has a valid Class 5
driver’s licence. The supervisory driver must be in the front
passenger’s seat. Passengers in the back seat must wear seatbelts. You
cannot drink when you are driving – your blood alcohol must be zero.

What else should I know?

You must be careful not to break any rules of the road. If you have any
infractions, you may get a warning letter, an additional driving course,
or even a driver hearing.

How do I enter the Intermediate Stage?

To enter the Intermediate Stage, you must complete the nine-month
Learner Stage and then pass the Class 5 road test. If you demonstrate
dangerous driving during the road test, you may have to obtain
permission from the Registrar before taking it again. If you are in the
graduated licensing program and fail the road test, there is a 14-day
waiting period to take it again.

How long will I be in the Intermediate Stage?

You will be in the Intermediate Stage for a minimum of 15 months.

What are the restrictions while I am in the Intermediate Stage?

Between midnight and 5 a.m., you can have only one passenger, unless you
have a supervisory driver in the front passenger’s seat. If you have a
supervisory driver in the front seat, you can have passengers in the
back seat, but they must wear seat-belts. In addition, no matter what the
time of day, you cannot drink when you are driving – your blood alcohol
must be zero.

What else should I know?

You must be careful not to break any rules of the road. If you have any
infractions, you may be given a warning letter, an additional driving
course, or even a driver hearing. After 15 months with no infractions,
you will automatically become a Full Stage driver.

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Alaska Car Insurance

Alaska Car Insurance: State 

Requirements before you Hit the Road

As with every US state, car insurance coverage is required by law in the
state of Alaska. The environment laws in Alaska are very stern and
require strict obedience. Carrying motor insurance with sufficient
coverage insures that drivers will pay for the victim's losses. If you
own a car in Alaska, you need sufficient insurance coverage to payout
for any damages you may cause while on the road.

Alaska Car Insurance Requirements:

Alaska state law requires a minimum limit of $25,000 in Property Damage
Liability coverage, a minimum Bodily Injury Liability limit of $100,000
per accident and $50,000 per injured person. This is the basic coverage
requirement in Alaska is also known as 50/100/25 coverage.

 

Moreover, there is a Tort system followed in Alaska. This Tort system
states that in the case of an accident, someone must be guilty of
causing that accident. The person Found liable or at fault of causing
the accident and its insurance company must pay for all the damages as
appropriate. However, you should know that the Tort system differs from
state to state and what is applicable in Alaska may not apply in a
different state.

 

In Alaska, it is not required for drivers to purchase the
Uninsured/Underinsured Bodily Coverage that cover bodily injury caused
by an underinsured/uninsured driver.

 

Though not densely populated, Alaska has a large ratio of accidents.
Hence, to protect its citizens, several insurance companies follow the
government guidelines when presenting final insurance quotes.

Alaska Division of Insurance has more details on state specific requirements. You can either visit their website at http://www.dced.state.ak.us/insurance/ or contact either their Juneau or Anchorage office at (907) 465-2515 or (907) 269-7900.

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Arizona Car Insurance

Arizona Car Insurance: Residents

Requirements Made Simple

The state of Arizona, like all other states of the U.S, requires its drivers to have a minimum liability car insurance policy.

Arizona follows a tort system. Under this system, one of the parties
involved in the accident is considered guilty of causing it. The person
responsible for the accident and his insurance company are held liable
for all bodily injuries and other damages caused by the accident. They
are required to pay for these damages.

The minimum bodily injury liability per person per accident is $15,000
and up to a total of $30,000 for all injuries per accident. $10,000 is
the minimum property damage liability coverage. This basic plan is
referred to as 15/30/10.

 

Before getting your car registered in the state of Arizona, you are
required to show proof of financial responsibility by purchasing either
this coverage or by having a “bond” of $40,000. Financial responsibility
is the proof of your ability to cover the damages in case you are found
at fault in an accident.

Drivers in the state of Arizona are required to carry a proof of
financial responsibility in the car at all times. Non- compliance with
the financial responsibility law may result in a driver being fined up
to $250. It can also lead to the suspension of driver's license and car
registration.

In Arizona, uninsured motorist coverage can be bought for any amount up
to which you have purchased the bodily injury liability, but it should
be more than the minimum bodily injury requirement. Underinsured
motorist coverage can be bought for an amount less than the minimum
bodily injury coverage.

 

Uninsured and under-insured motorist coverage covers you against injuries
and damages if the driver responsible for the accident is either not
insured or under insured.

If you lease your car or finance it through a loan, your finance company
may require you to buy comprehensive and collision coverage as well.

The minimum car insurance limits in Arizona may not be adequate to cover
you if you are responsible for an accident. It is recommended that you
buy more than the minimum requirements of the state law.

More details on AZ auto insurance can be obtained by visiting the Arizona Department of Insurance website at www.id.state.az.us or calling 1-800-325-2548.

 

The average rate of car insurance in Arizona in the year 2009 is $1,834.
This is higher than the national average of $1,794. It is also 12%
higher than what it was in 2008.

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California Car Insurance

California Car Insurance: Saving Tips

and State Requirements

If you have lived in California for a minimum of 18 months and haven't
received a traffic ticket or have not been involved in an accident in
the past 3 years, you are automatically entitled to get a discount on
your auto insurance.

There are various ways to get cheap car insurance in California. Some of which included:

Be a Good Driver

This is one of the most essential requirements for getting cheap car
insurance in California. You can get a cheap car insurance if you have a
good driving record.

Buy a Car with Quality Safety Features

To obtain cheap car insurance in California, it will be beneficial for
you to install safety features in your car or buy one which has these
features included. More safety features mean less possibility of the car
being stolen and less physical damages to the car as result of an
accident. This factor is given due importance by most insurance
companies. Therefore, it’s recommended you consider buying a car with
advanced safety features such as air-bags, alarm system, Dynamic
Stability Control, GPS Tracking System, anti-lock Braking System (ABS)
and safety glasses.

Enroll Yourself in a Driving Class:

Certain car insurance companies in California provide driving classes or
guidance to people to ensure they possess good driving skills. This is
termed as 'defensive driving.' You should consider enrolling yourself in
such these types of driving classes to get cheap insurance rates. Check
with you insurance provider on what type of courses they offer discount
on.

Stay with Your Parents

If you are a teenager or young driver, you can obtain low cost car
insurance in California if you choose to live with your parents and
register your insurance policy under their name, as you may have to pay
less for your insurance premium. This is especially beneficial if you
parents have good driving records and has been with an insurer for a
number of years.

The CLCA Program

The state of California has a program called CLCA, (California Low Cost
Automobile Insurance Program). This program provides people on
low-income with more options to find an affordable car insurance policy.

California State Requirements:

Before buying car insurance in California, it is essential to be aware of the minimum legal requirements set by the state.

As per California Insurance Code §11580.1b, the minimum insurance requirements are:

• $15,000 for injury or death to one person
• $30,000 for injury or death to more than one person
• $5,000 for any damage to property

Most insurance companies in California already have the above coverage
included, but you will need to determine if more coverage options or
higher limits on your chosen options is needed to protect your personal
assets.

To obtain more information regarding California auto insurance, you can
contact the California Department of Insurance in Los Angeles at
800-927-HELP (4357) or visit their website at http://www.insurance.ca.gov .

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Colorado Car Insurance

Colorado Car Insurance: Easy Guide to

Auto Insurance in CO

Anyone in who drives a car in Colorado must have car insurance as per
state laws. If you reside in Colorado, you must know a few basic facts
about car insurance before you take your car out for a spin.

Colorado used to be a “No Fault” state until 2003. Now, the state
follows a tort system. Under this system, it is believed that the
accident is the fault of one of the parties involved in it. The liable
driver and his insurance company are required to pay for all the damages
sustained by other parties.

All drivers, regardless of age, must have minimum liability insurance in
the state of Colorado. The minimum liability in Colorado is 25/50/15.
This means, $25,000 is the liability amount for bodily damages per
person per accident. $50,000 pays for the bodily injuries of everyone
involved in the accident. Property damage liability is $15,000 and this
pays for damages to property such as walls and fences.

You have the option of purchasing this as a combined single limit by
paying a minimum amount of $60,000, which basically serves as proof of
financial responsibility.

 

Purchasing uninsured/underinsured motorist bodily injury coverage is not
mandatory in Colorado, but it is suggested you get this valuable
coverage. It pays for bodily injuries and other damages when you are
involved in an accident with a driver who is either uninsured or
underinsured.

 

Though it is not compulsory under Colorado state law for drivers to
purchase comprehensive and collision coverage, it is mandatory for the
insurance companies to offer them to customers. However, if you have
bought your car on loan, your lender may require you to buy collision
coverage until your loan is paid off.

Colorado state law requires insurers to offer you Medical Payments
coverage for a minimum amount of $5,000. If you don't want this
coverage, you must opt out as its likely bundled by default in the
policy. If you don’t as your auto insurance provider to remove it, this
optional coverage will be automatically added to your premium.

 

It is important for you to check the lease agreement when leasing a car.
Normally, these agreements require you to have liability coverage of
$100,000 per person and $300,000 per accident and property damage
coverage in excess of Colorado Insurance Law.

Failure to comply with the insurance laws can land you in trouble. You
may face either a fine or a suspension. In some cases, you may even face
imprisonment.

For more information on all aspects of Colorado’s auto insurance
requirements, residents can visit the Colorado Division of Insurance
located in Denver website available at http://www.dora.state.co.us/insurance/ or by call their office at 1-800-930-3745.

 

The current average car insurance premium rate for residents of Colorado
is $1,687. This rate is 30% higher than what it was in 2008.

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Hawaii Car Insurance

Hawaii Car Insurance: Quick Guide to

State Requirements

A car insurance is essential to you can driver a vehicle in Hawaii. The
state law requires that your vehicle be insured for the period of its
registration. You are also supposed to have a valid vehicle insurance
identification card in your car at all times.

 

You can be fined if you are found to be driving without a proper
identification card. Driving without insurance will cause your vehicle
registration to be cancelled and you will have to surrender the
registration certificate and the license plate to your county director
of finance.

Hawaii is a “no fault” state. This means that your car insurance company
will pay for the medical expenses for you and your passengers' injuries
up to the upper limit of the Personal Injury Protection, regardless of
who is at fault in the accident.

In Hawaii, car insurance coverage requires driver to carry a minimum of
Personal Injury Protection amount of $10,000 per person for you and
every member of your family.

The bodily injury coverage pays for injuries that you may cause to
others. The minimum amount for this coverage is $20,000 per person and
$40,000 for all injuries per accident.

“No fault” applies only to injuries caused to people. It does not apply
to property damage. Therefore, the person who is held responsible for
the accident has to pay for causing damages to others property. The
property damage liability required need to cover a minimum limit of
$10,000 per accident.

Overall, the basic coverage is referred to as 20/40/10 coverage.

For more details on laws and regulations required by authorities in
Hawaii, contact Hawaii Department of Commerce and Consumer Affairs in
Honolulu, by calling (808) 586-279 or visiting their website at http://www.hawaii.gov/dcca/areas/ins.

 

Drivers may add optional insurance coverage option which includes the
physical damage coverage that pays for the damage caused to your own car
in the event of an accident. This coverage includes collision insurance
and coverage insurance.

Unlike some other state, some coverage options are not mandatory in
Hawaii. However, you can still consider these options for additional
coverage such as having insurance against uninsured or under-insured
motorists.

 

You may buy uninsured motorist coverage at a minimum of $20,000 per
person to pay for serious bodily injury or death if the driver at fault
is uninsured, or in case of a hit and run accident. You may also
purchase underinsured motorist coverage at a minimum of $20,000 per
person to pay if the driver at fault does not have adequate insurance to
cover all costs.

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Idaho Car Insurance

Idaho Car Insurance: Driver's Guide to

Auto Insurance Requirements in ID

Idaho, like most other U.S. states, has minimum mandatory requirements
for car insurance. Before committing to a policy, you must familiarize
yourself with the state's specifications.

Idaho follows a tort system. Under this system, one of the parties
involved in the accident is considered guilty of causing it. The person
responsible for the accident and his insurance company has to pay for
all the damages caused by the accident. The driver who is at fault for
causing the accident can be sued in a civil court by the people involved
in the accident to recover lost wages or compensation for sustained
damages.

 

The state law of Idaho requires all its drivers to purchase minimum
bodily injury liability of $25,000 per injured person per accident,
$50,000 as bodily injury liability for all people injured in an accident
and a minimum of $15,000 property damage liability. This basic coverage
plan is referred to as 25/50/15 coverage. The liability policy pays for
injuries and damages if you are responsible for the accident. It is
recommended that all car owners purchase more than the minimum required
liability.

As per the state law of Idaho, it is not mandatory for car owners to
purchase uninsured or underinsured motorist coverage liability. But it's
wiser to purchase this coverage as it pays for damages if you are
involved in an accident with a driver who is uninsured or underinsured.
If you purchase uninsured motorist coverage, it should be at least the
same amount as bodily injury liability.

Purchasing Collision and Comprehensive coverage is also not mandatory in
Idaho. These types of coverage pay for damages to the insured vehicle
up to its blue book value. If the cost of repairs exceeds the cost of
car, the market value of the car is calculated and given to the owner in
cash.

If you don't comply with the minimum requirements of insurance laws of
the state, your driver's license will be suspended. Once the suspension
period is over, you can apply for reinstatement of your license through
Idaho Transportation Department.

Further information regarding Idaho’s insurance policies can be obtained
by contacting the Idaho Department of Insurance at 1-800-721-3272 or
visiting their website available at http://www.doi.idaho.gov .

 

The average car insurance premium rate for an Idaho resident is $1,494
for 2009. Car insurance premium rates are increasing every year.

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Montana Car Insurance

Montana Car Insurance: Simple Guide

to State Auto Insurance Requirements

Before you start driving in the state of Montana, there are some basic
regulations that you need to know. The most important of these are the
minimum car insurance requirements as mandated by the law of the state.

Minimum Legal Car Insurance Coverage

The law in the state of Montana requires a driver to have a minimum
bodily injury liability of $25,000 per injured person per accident and
up to $50,000 for all injuries per accident.

The property damage liability coverage has a minimum limit of $10,000.
This basic plan is often referred to as 25/50/10 coverage.

 

Under Montana auto insurance law, it is mandatory for companies to offer
uninsured motorist coverage. But it is up to a driver to decide if they
want to take this coverage. In other words, it’s recommended and
sometimes bundles as part of your auto insurance quotes, but it’s still
optional.

Unlike some other states that follow a “no fault” system, the state of
Montana follows a tort system, which means that one of the parties
involved in the accident must be responsible for causing it. The person
held responsible for causing the accident has to pay for all the
damages. The tort system varies slightly from state to state.

 

Though not required by the law, you may also purchase collision and
comprehensive coverage to pay for damages against accidents and other
factors such as theft and natural disasters.

Private Injury Protection is also a valuable addition to your insurance
policy. It pays for medical expenses required in treating injuries
sustained by you and your passengers in the event of an accident.

The state of Montana allows owners of 25 vehicles or more to obtain a
self-insurance certificate. More details on auto insurance requirement
in the state of Montana can be obtained by directly contacting Montana
State Auditor in Helena on (406) 444-2040 or visiting their website at http://www.csi.mt.gov/industry/insurance.asp.

What if you Drive with No Auto Insurance?

Driving without valid insurance can result in strict penalties within
the state of Montana. You may be hit with a misdemeanor charge, which
includes a fine of up to $500 and 5 points on your driving license. A
total of 30 points on your license ultimately leads to its cancellation.
You may also be jailed for 10 days. However, if you are caught a second
time without valid car insurance, you will face a higher fine and
another 10 days in jail. Moreover, your license may be suspended for a
period of 90 days.

In order to find the best rate possible for car insurance, make sure
that you compare the prices of at least 3 to 4 car insurance companies

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Nevada Car Insurance

Nevada Car Insurance - Basic Guide to

Residents Requirements

If you are a driver residing in the state of Nevada, you are required by the state law to have car insurance.

Even though each state has its own requirements, bodily injury liability
and property damage are the minimum coverage plan that you need to buy
in Nevada. Only if you own 11 vehicles or more, you are exempt from
buying insurance in the state of Nevada.

The state follows a tort system which means that one of the parties
involved in the accident must be guilty of causing it. The party held
liable is responsible for covering expenses of bodily injuries and
property damage.

 

Whether a vehicle is in use or not, the owners must have $15,000 of
bodily injury coverage per person per accident, $30,000 for all injuries
in an accident and $10,000 as property damage coverage per accident.
This basic coverage is referred to as 15/30/10 coverage.

The basic coverage plans are there to compensate others and their
property from damages as a result of an accident. This basic coverage
doesn't cover costs of any injury or damage to you, your passengers or
your car if you are found at fault.

Over and above the mandatory basic plan, it is advisable to add a few
optional coverage options to the policy. These coverage options prove
really beneficial if you are at fault in an accident.

The Personal Injury Protection coverage will pay for medical expenses
required by you and your passengers in case you are at fault in an
accident.

Uninsured and under-insured motorist coverage options are not required in
Nevada. They are equal in amount to the basic coverage plans.

 

Unlike most states, if you own 11 vehicles or more, you are exempt from buying auto insurance coverage in the state of Nevada.

The average car insurance premium for Nevada residents in the year 2009
is $2,097. This year the rate is 10% higher than that of 2008.

To ascertain who has coverage and who doesn't, the state of Nevada has
an Insurance Verification Program in place. This is one of the reasons
why you need to carry proof of your coverage in your car before you
drive off. SR-22 form is available from your car insurance company for a
small fee serves as proof of your insurance coverage. It is valid for 3
years.

More details on Nevada auto insurance requirements can be obtained by
contacting the Nevada Division of Insurance in Carson City on
1-775-687-4270 or Las Vegas on 1-702-486-4009 or visiting their website
at http://doi.state.nv.us.

 

Driving without valid insurance can attract severe penalties. You may
even have your driver license suspended until you get insurance that
meet the state requirements.

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New Mexico Car Insurance

New Mexico Car Insurance: Simple

Guide to Auto Insurance in MN

Before you take your car out on the roads in the state of New Mexico,
you must prove to the authorities that you have the financial capability
to cover costs of all damages if you are involved in an accident.

To establish your financial responsibility, you can deposit a lump sum
of $60,000 in the state treasurer's office in the form of a surety bond
or cash. The other more popular and cheaper method of securing financial
responsibility is to buy car liability insurance.

 

The state of New Mexico requires you to buy a minimum bodily injury
liability of $25,000 per person per accident and up to $50,000 for
injuries of all people in an accident. The property damage liability is
set at a minimum amount of $10,000 per accident. This mandatory coverage
plan is referred to as 25/50/10 coverage.

 

For more information on New Mexico consumers can contact the New Mexico
Public Regulation Commission in Santa Fe by calling 1-888-4ASK-PRC or by
visiting their web site at: http://www.nmprc.state.nm.us/.

 

The state follows a tort system, which means that one of the parties
involved in the accident is guilty of causing it. The person responsible
for the accident and his/her insurance company has to pay up all the
money to cover costs of bodily injuries, property damage and any other
damages covered in the policy document.

 

If you are held responsible for causing the accident, the victim has a
right to sue you. In such a case, the minimum insurance cover may not
cover all costs. Therefore, it is better to have an insurance coverage
that is more than the minimum set by the authorities.

 

29 % of all motorists in New Mexico are uninsured. This is the highest
ratio of any state in the country. Thus, getting coverage against
uninsured and underinsured motorists is a highly recommended.

The insurance companies in the state monitor the drivers using the New
Mexico Insurance Identification Database and report any irregularities
in the insurance to the state authorities.

If you drive around the state without valid car insurance, you could
face misdemeanor charges, a fine of up to $300 and the cancellation of
your vehicle registration.

The average car insurance premium rate in the state is $1,939 in 2009.
Car insurance is mandatory and it does not come cheap. However, this
does not mean that you should pay more than what is required. Before you
buy a car insurance policy, don't forget to shop around and compare the
quotes offered by various companies.

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Oregon Car Insurance

Oregon Car Insurance: What Residents

Need to Know

Oregon, a state in the Pacific Northwest region of the U.S., is one of
the most strict and inflexible states in the U.S. when it comes to car
insurance requirements. It is mandatory for every driver in the state to
possess auto insurance. If you are caught driving in Oregon without an
auto insurance policy, you may have to bear tough consequences in the
form of SR-22 compliance. In the worst case, you can be suspended of
your driving privileges and the local law enforcement group may even
'relocate' your vehicle to some other place.

To avoid these complications, it is better for you to opt for a cheap Oregon car insurance policy.

The Minimum Insurance Requirements for Oregon:

1. Bodily injury and property damage liability of $25,000 per person,
2. $50,000 per crash for bodily injury you cause to others,
3. Personal injury protection to cover "reasonable and necessary
   medical and other expenses for one year after the accident" of $15,000,
4. $10,000 per crash for anyone else's personal property that decides to get involved,
5. Uninsured motorist coverage of $25,000 per person and $50,000 per accident

For more specific details on regarding Oregon insurance consumers may
contact the Oregon Insurance Division of the Department of Consumer and
Business Services in Salem at 503-947-7980 or by visiting their website
at http://www.cbs.state.or.us/external/ins/index.html.

 

It is essential for you to be aware of the ways in which you can get cheap car insurance in Oregon. Some of the ways are:

Keep a Good Driving Record:

This is the first factor that auto insurance companies consider when
offering insurance. Based on the policies of your car insurance
provider, an accident can stay on your record for 3-7 years. Hence, an
'at-fault' accident can increase your insurance premiums for up to 7
years and this can cost you a considerable amount of money. Therefore,
it is very important for you to maintain a good driving record. A clean
driving record will surely fetch you cheap car insurance in Oregon.

Maintain Low Mileage:

Some car insurance companies in Oregon consider the mileage your car
covers in a year, on average. This is because, the fewer miles you drive
on the roads, the lower the chances of you getting involved in an
accident. Therefore, it is advised that you use the public
transportation system at least twice a weak to get to your workplace. If
your car insurance company offers discounts for low mileage, you will
pay cheap insurance rates.

It is advised that you choose the most appropriate insurance coverage
for yourself by considering quotes of different car insurance companies
in Oregon.

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Utah Car Insurance

Utah Car Insurance: A Simple Guide to

Saving and Requirements

Utah, a western State in the U.S., has made it mandatory for all drivers
to carry an insurance policy. Getting cheap car insurance in Utah is
not a daunting task. However, you need to know some tips in which you
can use to obtain cheap insurance quotes.

 

The first thing you need to do is use our free insurance quotes form and
visit at least 3-4 car insurance companies in Utah to compare each
quotes. This way, you will have more options to choose from. After you
have gone through the quotes of different auto insurance companies, you
can choose the most feasible insurance policy for your needs.

Many car insurance companies in Utah offer discounts if you meet the guidelines set by them. Some of these discounts are:

1. Safe driver discounts for not being involved in an accident for three or more years.
2. Senior citizen discounts for drivers who are 55 or more.
3. Multiple policy discounts if you decide to purchase your home and auto insurance policy from the same company.
4. Good student discounts for students who score well in their exams.

If you can qualify for any of the above mentioned discounts, you will pay less on your car insurance rates.

The majority of car insurance companies in Utah value cars that have
safety features. Hence, it is advised that you consider installing
safety features such as front and rear crumple zones, air bags, alarm
system, anti-lock braking system and GPS.

 

Although not all car insurance companies take note of a person's credit
record when offering insurance, it is always good to have a clean credit
record. By paying your bills regularly, you can convince your insurance
provider that you are a trustworthy customer. And if your insurance
provider values a good credit record, you can get cheap insurance rates.

A better way to obtain cheap car insurance in Utah is to opt for the
minimum liability or a cheap Utah car insurance policy, also called as
25/50/15 policy. This policy requires:

 

• Bodily injury coverage of at least $25,000 for each person you injure in an accident.
• Bodily injury coverage of $50,000 for all overall injuries you cause.
• Property damage liability of $15,000 for the damage you cause to other people's car and property.

As Utah is a no-fault state, it also requires you to have a PIP
(personal injury protection) insurance coverage to pay for your medical
bills and damaged property, irrespective of who was at fault, when you
are involved in an accident.

If you own a good comprehensive health insurance policy, it is advised that you opt for only a minimum PIP policy.

For more details on Utah auto insurance policies, you may contact the UT Insurance Department by visiting their website at http://www.insurance.utah.gov/.

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Washington Car Insurance

Washington Car Insurance: WA State

Auto Insurance Requirements

The state of Washington requires a driver to have a car insurance
liability policy, a certificate of deposit or a liability bond of the
required limits.

The minimum bodily injury liability is $25,000 per person and up to
$50,000 per accident. The property damage liability is $10,000. This
basic coverage plan is also referred to as 25/50/10.

 

If you prefer to buy bonds instead of an insurance liability, the same
rules apply. However, if you wish to purchase a certificate of deposit,
then you need to pay $60,000 to the office of the State Treasurer. If
you own 26 vehicles or more, the state of Washington allows you to have
self-insurance.

You are required to carry proof of your car insurance with you at all
times in Washington. You can be fined around $450 if found driving
without adequate proof. There is also a chance that this may go on your
driving record as a violation. Moreover, the court can impose a fee on
your fine.

 

You must comply with all the rules of Washington's mandatory auto
insurance law, even if you are an out-of-state non-resident driver who
happens to be driving through Washington.

Vehicles over 40 years old that are especially licensed as “antique
vehicles”, “collector's vehicles” or “classic cars” that are over 30
years old and vehicles owned by public bodies and two wheelers are
exempt from the auto insurance law in the state.

 

The state of Washington requires insurance companies to offer uninsured
and underinsured motorist coverage as part of their deals. However, it’s
up to customer whether they want to purchase it.

Insurance companies are also supposed to offer their customers a type of
coverage known as Personal Injury Protection (PIP). This must provide a
minimum of $10,000 in medical expenses, $2,000 for funeral expenses,
$10,000 as wage compensation subject to a limit of $200 per week, and
$5,000 for loss of services subject to a limit of $200 per week per
person insured.

Washington follows a tort system which means that someone must be at fault for causing the accident.

More information on Washington auto insurance can be obtained by
contacting the Office of the Insurance Commissioner at 800-562-6900 or
by visiting their website available at http://www.insurance.wa.gov/.

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Wyoming Car Insurance

Wyoming Car Insurance: A Simple

Residents Guide to WY State

Requirements

It is illegal to drive a car in the state of Wyoming without owning
proper insurance. Car insurance proves you are financially responsible
in case of an accident. The drivers are also recommended to carry proof
of car insurance while driving in the state of Wyoming.

Basic coverage for Wyoming car insurance is often referred to as
25/50/20/. The state law requires minimum Bodily Injury Liability limit
of $25,000 per injured person up to a limit of $50,000. Minimum limit
for Property damage Liability is $20,000. There are also other types of
coverage options such as rental reimbursement and collision, and
comprehensive coverage.

For more detailed information on auto insurance requirements all Wyoming
residents should contact the State of Wyoming Insurance Department in
Cheyenne on 1-800-438-5768 or visit their website at http://doi.wyo.gov.

 

WY follows the Tort system, which states that the person responsible for
the accident be found, and that person and his/her insurance company be
held responsible for all the damages.

You can determine which car insurance policy is most suitable for you by
comparing car insurance quotes of different companies. Some tips to
getting cheap car insurance quotes in the state of Wyoming are:

Insurance More Cars Per Address

Multiple car discounts is a good way of obtaining cheap insurance
quotes. Car insurance companies offer a discount if you insure two cars
at the same time.

Purchase Auto Insurance for at Least One Year

Purchasing a car insurance policy for a year instead of 6 months or less
can extend the savings on your auto insurance. If you purchase a policy
for six months, you will have to pay a rate which changes every six
months.

Reduce your Yearly Mileage

Moving closer to your work or college is also a great way to get a cheap
car insurance quote. Cars with less mileage per year are offered a low
rate by most insurance companies.

Listed Organizations for Discounts

Many Car insurance companies offer discounts if you are affiliated with
organizations like credit unions or other entities listed for discounts.
It is recommended that you ask for a list of organization affiliations
to the insurance company you wish to use for your auto insurance cover.

Defensive Driving and Other Special Driving Courses

Some car insurance companies give discounts to people who have taken a
special driving course. Insurance companies consider people who have
taken special driving course as less likely to get into an accident.

Multiple Insurance Services

You can get a cheap insurance quote if you register your car and home insurance with the same company.

Watch your Credit Score

Keeping your credit score high is another way to get cheap car
insurance. Car insurance companies now decide the insurance rate you are
to pay based on your credit score.

What if you Can’t Get Coverage?

There is an insurance option available for high-risk individuals, too.
If you are classified as a high-risk driver, and find it hard to get car
insurance or cannot afford the high premiums, it is recommended to look
out only for companies which specialize in insurance bad drivers, such
as The General. You may also contact the state insurance commissioner
for further assistance if you are still having trouble getting auto
insurance.

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