Getting Insurance on a Brand New Car

Getting a new car or just new to you means you have to get some car insurance.  You will find that insurance premiums on a new car can vary a great deal.  If you bought a high end sports car then you can expect to pay, but a slightly older Ford Escort won’t cost anywhere near as much.  Getting insurance on a new car isn’t something that you can avoid.  Before you pay you should also factor in the cost of insurance as part of your monthly expenses.

Getting Insurance on a Brand New Car

New or Used Cars

Brand new cars from this current year are going to cost the most to insure.  You will probably need comprehensive coverage if you are financing your purchase.  The reason that the premiums are so high is that newer cars cost more to replace.  Should your car get stolen or written off in an accident then it will cost tens of thousands to replace.  Repair costs are also higher on new cars, even if the car isn’t written off in an accident but it needs to be repaired that can still run to thousands of dollars.  Another thing to consider is getting separate insurance for any commercial vehicles. Some insurance companies specialize in Service type businesses like Tree Service and Landscaping businesses. Often times these insurance companies can get you a better deal for your Service type business over other insurance companies.

The Model of Car

The make and model of your car also makes a difference.  Insurance companies charge higher premiums for sports cars than they would for a Subaru hatchback.  Insurance rates are based on statistical data including the most common model of car that is stolen.  The other reason that sports cars cost more to insure is that drivers are far more likely to drive at higher speeds.  Let’s face it, you don’t drive a Viper the same way you drive a Camry.

SUVs Cost More

You may think that with four wheel drive and all of the safety features that an SUV would be cheaper to insure.  However that’s not the case, despite being mostly a family vehicle they are also stolen quite frequently and they are used off-road.  Driving off-road is riskier both to your vehicle and yourself.  Anything that causes any kind of risk is a red flag to an insurance company and the price of insurance goes up.

If you are buying a new car, you can always check with your insurance company first to get an idea of what your premiums are going to be.  Remember that having a good driving record will help you to get better rates too.  Remember you need to be able to afford both the car payments and the insurance payments.

Your Car Was Stolen, Now What?

Your Car Was Stolen, Now What?

Imagine waking up one morning and getting ready for work only to step outside and discover that your car is gone.  Stolen cars happen far more often than you think. Almost a million cars get stolen across the country every year.  Car theft is all too common all over the country, but you have insurance so everything should be okay…right?  Actually the claims process can be pretty long and involved but here are some of the steps that you should take when your car has been stolen.

Was the Car Actually Stolen?

The first thing you have to ask yourself is was your car actually stolen?  Is there any possibility that someone else could have taken your car?  Check with family or roommates to see if there is any possibility that someone may have borrowed your car without asking you.  Is there any chance your car was towed, was it parked in the wrong spot.  Lastly you also have to ask if for any reason the car has been repossessed.  If none of these are true or possible then it is time to call the police.

Insurance Coverage

Don’t assume that you automatically have coverage in the event of theft.  In order to be covered in the event of theft you need to have a comprehensive policy in place.  It doesn’t matter what state you live in that holds true across the country.  Even if your car has been stolen from your driveway in the home you own it will not be covered under a homeowner’s policy.  You will have to have comprehensive coverage to recoup your loss.

Putting in a Claim

The first call that you need to make is to the police, you will need a copy of the police report for your insurance company.  You will also have to report the theft to your insurance company to get the claims process started.  Most insurance companies will make you wait 30 days to see if the police can recover the car first.  That 30 days will start from the moment you report it so don’t delay in reporting.

Insurance companies take theft claims very seriously and the adjustor will want to speak to you to make sure there is no chance of fraud.  The adjustor will also investigate on behalf of the insurance company to verify that your claim has legitimacy before they will pay one cent of your claim.  Don’t take all of their questions personally it is their job.

Traffic Tickets Will Cost You

Traffic Tickets Will Cost You
Car insurance is expensive enough but if you have a lead foot it can cost you even more.  Traffic tickets will cost you more than just points on your license they can also drive up the cost of your insurance.  Driving carefully not only helps to protect the public and reduce the amount of accidents on our roads and highways it is can also save you money.

Speeding Tickets

There are over 41 million speeding tickets written each and every year in the US alone with the average cost of a ticket being around $125 each.  You have a 1 in 6 chance of getting caught speeding as you travel along the highways and roadways.  When you are pulled over for speeding not only are you going to get a fine but you stand a chance of losing your license if you are a repeat offender.  Depending on where you are caught the fines can get pretty hefty.

Your Insurance Rates

When the time comes to renew your car insurance you may be in for a very unpleasant surprise.  You will discover that your insurance rates have climbed drastically.  You may think that your insurance company is being pretty punitive but that is not actually the case.  Insurance rates are based on statistics and profits and losses.  Having several speeding tickets says to the insurance company that you are far more likely to get into an accident and they are going to have to pay out a claim because of that.  That means their risk is higher so in order to continue offering you insurance they will have to charge you more.  Here is a look at how rates are calculated.

Your Driving Record

While there are other factors that affect your insurance rates like anti-theft devices, the amount of your deductible and your age, the biggest impact is going to come from your driving record.  Insurance companies view a driving record as an indicator of how likely it will be that you will get into an accident.  Having a bunch of moving violations on your record is an indicator that you’re not a very responsible driver.


If you have a record or are charged with a DUI then your insurance rates are going to skyrocket.  In fact you may see your policy cancelled altogether.  Driving under the influence is just about the worst case scenario when it comes to your insurance rates.

Car insurance is necessary is most cases, it protects you, your car and other drivers on the road.  That doesn’t mean that you have to drive up the costs by driving irresponsible.  Safe driving saves lives and saves you money.

Is it Time to Change Your Car Insurance

Is it Time to Change Your Car Insurance
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Auto insurance is a must but that doesn’t mean you have to overpay for it.  Just because you have been with the same insurance company for years doesn’t mean they are giving you the best price or the right coverage.  Different policies and different insurance companies enter the market all the time and you have to wonder is it time to change your car insurance for a better policy.  Here are some situations where it might be time to change.

  1. You have just bought a house and need house insurance as well. You call around for rates and you are offered a significant discount if you combine policies with one insurance company.
  2. If you move to another state, the rules for coverage may be different. Your existing company may not offer coverage in the new state.  You always want to shop around for prices when you move to a different state.
  3. You have bought a new car and you’re getting a great rate from the dealer. Also if you have just bought a new car it is the time to shop around anyway.  Insurance rates vary depending on the make and model of the car so you should shop around to see who has the best coverage at the lowest price.
  4. You are trying to cut your monthly expenses. Get some comparative rates and see what else is out there. Insurance companies that operate strictly online tend to have better rates.
  5. You just got married. If both you and your spouse had separate policies prior to getting married you can save by putting both cars under one policy.  At the same time if you have kids who just got their driver’s license and they will start driving your car then you want an affordable policy.  Find a policy that covers all the drivers in your house for a good rate.
  6. You’re getting older. There are times when car insurance rates change drastically, when you hit 25 or 55, statistically you are a safer driver.  The first discount comes once you hit 25 it may be time to do some shopping around.  The same goes when you are over 50, plenty of insurance companies offer discounts to drivers over 50 with a clean driving record.

There is no time like the present to shop around and really see if your insurance company is giving you a good deal or not.  If you feel that you are paying too much then maybe you are.  It is incredibly easy to get quotes from a variety of companies with just a few clicks of a mouse.