Why That High Auto Insurance Rate Is Your Fault

Everyone likes to score a great deal, and no likes to pay more for something than they have to. When shopping for auto insurance, many people try to find the average of what those around them are paying — thinking this is a “good” rate for the average person. It may seem like a smart strategy, but it won’t help you out. In fact, it may be a mistake.

Only liability insurance is used in annual statistics. That’s because it’s the only coverage that’s required by law for drivers to carry.  But many people also carry the recommended collision and comprehensive coverage, which raises the price of a policy even further. So if your neighbor is bragging about how he pays only $500 annually for car insurance, he probably carries the bare minimum of coverage and is assuming more risk than you.

It’s also well known that auto rates are determined by status and age. Teenage drivers (especially males) pay some of the highest rates in the country for auto insurance. This is because of their lack of experience behind the wheel, and the greater chance of accidents and citations. Senior drivers on the other hand, pay the lowest rates of any group, even though there’s a debate about whether or not senior citizens are actually safer drivers. Families—whether older or younger generations—pay less than the national average, as do married drivers over single drivers.

So, what are some other big factors that determine your annual policy rate?

1. Location
Urban areas in particular have higher traffic congestion, wages, gas prices, and car theft statistics. New Jersey and Washington DC residents have some of the highest premiums in the country. But, if you’re moving from Oregon to Florida, you’ll welcome the 7 percent drop in your policy rates. Those relocating from Nevada to Utah though will face sticker shock with a 5 percent increase.

2. Deductibles
Average drivers have a $500 deductible on their policy. It grants them reasonable rates and ensures they won’t have to pay too much out-of-pocket in case they need to file a claim. However, some people find $500 a major hardship. You can lower the deductible (depending on your insurance carrier) to $200 or $300, but your annual premiums will shoot up. On the other hand, some people prefer to raise their deductible to $1,000. It’s a quick way to instantly lower your rates.

3. Personal Driving Record
Citations, speeding, DUI’s and crashes all increase your rates or cause your auto insurance company to drop you altogether.

The quickest way you can find low auto quotes for your unique profile is to compare different insurance carriers online. You could see a major drop in price by perusing online quotes annually, so don’t cheat yourself out of your hard-earned money. After all, no one likes to pay more than they have to for car insurance.


Pay Less for Car Insurance: 10 Ways to Save Money Now

Car insurance is probably a significant part of your budget. According to the National Association of Insurance Commissioners, Americans pay on average about $800 a year for car insurance-that’s over $67 a month. Wouldn’t it be nice to reduce that payment by as much as 20 or 30 percent? You can-and it’s not as difficult as you might think. Take a look at the following 10 tips from and start saving money now.

1. Shop Around and Compare Rates Regularly

If you don’t compare rates every once in a while, you’ll never know if you could be paying less. According to an independent study, people who compare rates and switch carriers at save an average of $301* on a six-month policy.

2. Increase Your Deductible

Simply put, the higher your deductible, the lower your premium. The cost of an accident will be that much more expensive, but the savings on your rate could make it well worth it.

3. Insure Your Home and Your Car With the Same Carrier

With a multi-line insurance policy you purchase both your car and homeowners insurance from the same carrier. A multi-line policy can save you up to 15% on both premiums.

4. Pay Your Policy in a Lump Sum

Extra administrative fees are often applied to payments when you split your premium into installments (e.g. monthly, quarterly, etc.). Be aware that a monthly fee of even $7 can add up to almost $100 a year.

5. Take Advantage of Good Driver Discounts

Most insurance companies provide discounts for drivers with excellent driving records. In fact, some states require companies to provide these discounts. If you haven’t had any accidents or tickets in the last three to five years, you’re probably eligible.

6. Don’t Overpay Just Because Your Record Isn’t Perfect

Not all companies look at violations and accidents the same way, and many companies specialize in insuring different types of drivers. If you shop around, you might be surprised at what you find.

7. Look for a Safe Vehicle Car Insurance Discount

Many car insurers offer discounts for various safety features on your vehicle, including air bags, alarms, factory-installed mechanical seatbelts and antilock brakes. When getting  updated car insurance quotes, be sure to indicate such safety features.

8. Pay Less When You Drive Less

Many car insurance companies will offer discounts on vehicles that incur low annual mileage. If your commute has recently changed or you have recently retired and no longer drive your car to work, you might save money by getting an updated quote.

9. Take Advantage of Good Student or Senior Discounts

Because many companies feel conscientious students make conscientious drivers, students currently enrolled in school often receive a discount on car insurance if they can demonstrate good grades. Similarly, providers are also known to value the wisdom of an experienced driver, offering discounts to drivers over 50 as a result.


Don’t Let Repair Costs Come Between You and Your Car

There’s an old saying in the auto industry, “They All Break” – and it’s true, regardless of make or model.

Unfortunately when it comes to our vehicles, they always seem to break when they’re out of warranty which means fat out-of-pocket expenses.

With economic uncertainty many people are holding on to their vehicle for longer than usual and even with proper maintenance, expensive repairs are inevitable.

Data shows that two of the most common big ticket items to go are transmissions and air-conditioning.  The average cost of replacing a transmission is now over $2000 and the average cost for a major air-conditioning repair is now over $700.

But dealing with auto repairs doesn’t have to be a nightmare.  The recent growth in extended and after-market warrantees now gives consumers a good way to protect themselves from large and unexpected auto repair costs.

Today, there’s little doubt that extended warrantees do save you money in the long run

But consumers should be extremely careful when purchasing an extended auto-warranty.  It’s very similar to buying insurance and there are a few key questions you should always ask:

  1. What is the deductible? As with insurance, warrantees can include deductibles that will have an impact on the price. Chose a deductable that makes sense for you and make sure you understand if the deductible is applied on each repair separately or just the first repair.
  2. What are the labor rates the warrantee reimburses for? Do they seem reasonable for your preferred repair shops? Do they pay the repair shop directly, or do you need to pay and wait for reimbursement?
  3. Exactly what is covered under the warrantee? It’s better to have one that clearly lists what is not covered (exclusive) rather than what is covered (inclusive).
  4. Have you read the full agreement? Make sure you do so before signing.
  5. Most importantly, is the warranty provider reputable and financially secure? Will they be there when you need them to pay off?

With dozens of companies now selling extended warrantees, how do you find the right one for your particular needs? 

Fortunately, today there are online services that let consumers quickly shop for the best rates from a nationwide selection of extended warranty providers all competing for your business. 

One of the most comprehensive of these services is called Extended Warranty Pros.  They operate a free website that will find you the best warrantee offers for your exact needs from a wide network of warranty providers.   You simply enter your details and requirements and then receive personalized quotes from a range of providers.  The site works exclusively with reputable companies providing the best value to consumers.  It makes it super easy to compare various warrantees by cost and coverage.

The fact is that there’s a lot of variation in the prices of extended warrantees.   But, with a minimal amount of time and the help of a service such as Extended Warranty Pros you can save time and rest assured you are getting a good value.

So, before your transmission falls out and you have to blow your vacation fund on a new one, find out just how easy it is to get some protection and peace of mind.

Click here to start.


How Much are You Over-Paying for Your Auto Insurance?

In good times, it’s natural that we pay less attention to our individual expenses.  But, in today’s uncertain times, regardless of our current situation, everybody needs to save as much money as possible. 

When it comes to saving money the best place to start is with your auto insurance.

Most Americans can point to a similar list of monthly expenses, including mortgage or rent payments, auto expenses, utility bills, food and clothing, etc.  Many of these expenses are fixed and can’t be changed, so they offer few opportunities to save any significant amounts of money.  Financial experts agree, however, that the one monthly expense where people can, with minimal effort, often find real and substantial monthly savings is auto insurance.

Auto insurance is a necessary evil that responsible people know they can”t live without. In fact, for many of us, it’s a payment we make month-in and month-out, and never see the benefit of.  That”s okay, because the coverage has to be there if we need it–but, it also makes it all the more important that we don”t overpay.

How to make sure your insurance company is not getting rich off you.

Fortunately, today there are online services that let consumers quickly shop for the best rates from a nationwide selection of auto insurance companies, all competing for your business.  You simply enter your requirements and instantly receive quotes from a wide range of reputable companies.

One of the most comprehensive of these services is  They operate a free website service that will find you the best insurance quotes from a wide network of premium insurers.  The site also contains a wealth of reference information that helps you understand how different policies work and how to save the most money possible.

The fact is that auto insurance rates are constantly changing and, for certain policies, rates have actually dropped significantly in the past 12 months.  You can be sure, however, that your insurance company is not going to call you up and let you know their rates have dropped.  But, with a minimal amount of time on a service such as, you may be able to quickly save hundreds of dollars.

So, if you’re into saving money, start by finding out how much you’re overpaying for your insurance coverage.  

Click here to start.