Understand How Auto Insurance Rates Are Set Auto Insurance Shopping:
(NC)—If you're shopping around for auto insurance it's important to know how insurance companies set their rates. Many factors are at play, so here are some useful tips from the Financial Services Commission of Ontario (FSCO), the regulator of the auto insurance industry in Ontario, to keep your rates as low as possible.
The auto insurance rate you are charged will depend upon:
• The type of vehicleyou drive. Auto insurance companies evaluate vehicles based on their makes and models, according to their claims experience. Vehicles with lower costs for repairs, lower rates of injury, and lower incidences of accident and theft, will receive lower rates.
• Your driving record, which includes your years of driving experience, past at-fault accidents, completed training courses, and convictions such as speeding or impaired driving.
• Driving routine and frequency. The more time you spend on the road, the higher the chances of becoming involved in an auto accident.
• Where you live. If you live in a busy urban area, there is greater risk for accidents and theft, thus higher rates are charged.
• Your age. Costs are generally lower for drivers 25 years of age and older.
• The amount of coverage you purchase. Your insurance rates will be higher if you purchase additional protection beyond what is mandatory, such as the optional collision coverage, which protects you for damage to your vehicle, regardless of who caused the accident.
• The deductible, which is the portion of a loss that you are required to pay. Your deductible can vary depending on the type of coverage you purchase and the percentage of fault you are assigned in the event of an auto insurance accident. There are deductibles for direct compensation-property damage, collision or upset, comprehensive, all perils, and specified perils coverage. If you opt for a higher deductible, your rates will likely be lower.
• The insurance company you choose. It's important to shop around because financial factors unique to each insurance company will influence your rates. Insurance works according to a "pooling" concept. Your rates are based on the claims experience of the entire group. Some insurance companies have claims that are much higher than others. This results in some insurance companies setting higher rates than others for the same type of insurance coverage.
Factors that cannot affect insurance rates
Under Ontario law, insurance companies cannot use certain criteria to set your auto insurance rates, such as: credit history or rating, past bankruptcy, income and employment status, debts, whether you rent or own a home and not-at-fault accidents.
Friday, January 16, 2009
Tuesday, January 6, 2009
How Your Auto Insurance Rates Are Determined
Your auto insurance rates are determined by a number of factors:
driving record
usage, how you are using the vehicle, work, pleasure, business
how many drivers you have and their ages
how many vehicles you have
what kind of coverage limits you want
what area you live in
your payment history
what color car you drive
your insurance credit score
your claims history
your occupation and how many years you have lived at your current residence
how fast you can solve a Rubix cube
your daily, weekly, annual mileage
This are all auto insurance information which we have to follow
There is a lot of information about you that is used to determine your rates. You are grouped or pooled together with similar drives of the same background that way you are not paying for drivers that are much worse than you.
Similar risks will pay similar rates with auto insurance.
Your usage affects your rates because if you are driving to and from work or school 5 days a week, 15 miles one way you have a higher chance of getting in a accident than someone who only drives 1 mile 1 way 3 days a week or someone who works from home and only drives to get groceries. So business, work, and school usage is higher than pleasure usage.
The area you live in affects your rates due to the fact that one area or town may have a higher incidence of claims than another area. One area may have higher lawsuit payouts or higher theft rates than another area. Even if you live in a affulent area your rates may be higher due to the higher value vehicles in your area cost more to fix than in an area with lower value vehicles.
Although you may have heard that if you drive a red car you will pay higher rates but this is not true. It is a myth. GEICO, USAA (For Military Only), and Allstate, to name a few, don't even ask what color car you drive when you apply for a quote. And your VIN number doesn't give this info either.
If you have one car and three drivers you will pay more because that car will get used alot more than if you had only 1 driver and 1 car.
If you have had a poor payment history or your policy has cancelled due to non payment you will have higher rates when you try to reapply for insurance.
The higher your insurance credit score the better. The auto insurance credit score is similar to your FICO credit score such that the higher your FICO score the lower your interest rate and the higher your insurance credit score the lower your insurance premium.
Your claims history will affect you for a minimum of 3 years. If you have filed a claimed or if you even mentioned a claim to your insurance company it can and most likely will affect your rates
driving record
usage, how you are using the vehicle, work, pleasure, business
how many drivers you have and their ages
how many vehicles you have
what kind of coverage limits you want
what area you live in
your payment history
what color car you drive
your insurance credit score
your claims history
your occupation and how many years you have lived at your current residence
how fast you can solve a Rubix cube
your daily, weekly, annual mileage
This are all auto insurance information which we have to follow
There is a lot of information about you that is used to determine your rates. You are grouped or pooled together with similar drives of the same background that way you are not paying for drivers that are much worse than you.
Similar risks will pay similar rates with auto insurance.
Your usage affects your rates because if you are driving to and from work or school 5 days a week, 15 miles one way you have a higher chance of getting in a accident than someone who only drives 1 mile 1 way 3 days a week or someone who works from home and only drives to get groceries. So business, work, and school usage is higher than pleasure usage.
The area you live in affects your rates due to the fact that one area or town may have a higher incidence of claims than another area. One area may have higher lawsuit payouts or higher theft rates than another area. Even if you live in a affulent area your rates may be higher due to the higher value vehicles in your area cost more to fix than in an area with lower value vehicles.
Although you may have heard that if you drive a red car you will pay higher rates but this is not true. It is a myth. GEICO, USAA (For Military Only), and Allstate, to name a few, don't even ask what color car you drive when you apply for a quote. And your VIN number doesn't give this info either.
If you have one car and three drivers you will pay more because that car will get used alot more than if you had only 1 driver and 1 car.
If you have had a poor payment history or your policy has cancelled due to non payment you will have higher rates when you try to reapply for insurance.
The higher your insurance credit score the better. The auto insurance credit score is similar to your FICO credit score such that the higher your FICO score the lower your interest rate and the higher your insurance credit score the lower your insurance premium.
Your claims history will affect you for a minimum of 3 years. If you have filed a claimed or if you even mentioned a claim to your insurance company it can and most likely will affect your rates
Monday, January 5, 2009
Time to Review Your Auto Insurance Policy
"The beginning Auto Insurance of the year is a great time to get your financial house in order," says Wade Bontrager, vice president of Marketing for GMAC Insurance. "While you're already looking at your finances, it's easy to get out that auto insurance policy and make sure you're getting everything you can from it."
Bontrager says it is also worthwhile to review your policy when it comes time to renew with Auto Insurance. "While 43 percent of drivers report comparison-shopping when looking for an auto insurance policy, 33 percent of drivers don't even think about it -; they simply renew their existing policy and leave it at that."
Bontrager advises Americans to review their auto insurance policies when:
- Your auto insurance company has new offerings. Your insurance company might have introduced new, beneficial services. So, take advantage of them.
- You drive less. If high gas prices have lowered your annual driving mileage, some companies now offer a substantial low-mileage discount, such as the Low-Mileage Discount launched in 2008 by GMAC Insurance in collaboration with OnStar.
- You could save money. Make sure your coverage is at a sufficient level to protect your assets, but also research any discounts that you may qualify for, such as a multi-vehicle discount that saves you money when you insure more than one vehicle with the same company.
- You have a specialized vehicle. If you have a specialized vehicle, whether it's an RV or a commercial vehicle, a standard auto insurance policy will not provide the coverage you really need. Check with your auto insurer to see if they offer specialized policies. If not, consider switching to a company that does. If you move all of your auto insurance policies to one company, you may be eligible for a loyalty discount.
Bontrager says it is also worthwhile to review your policy when it comes time to renew with Auto Insurance. "While 43 percent of drivers report comparison-shopping when looking for an auto insurance policy, 33 percent of drivers don't even think about it -; they simply renew their existing policy and leave it at that."
Bontrager advises Americans to review their auto insurance policies when:
- Your auto insurance company has new offerings. Your insurance company might have introduced new, beneficial services. So, take advantage of them.
- You drive less. If high gas prices have lowered your annual driving mileage, some companies now offer a substantial low-mileage discount, such as the Low-Mileage Discount launched in 2008 by GMAC Insurance in collaboration with OnStar.
- You could save money. Make sure your coverage is at a sufficient level to protect your assets, but also research any discounts that you may qualify for, such as a multi-vehicle discount that saves you money when you insure more than one vehicle with the same company.
- You have a specialized vehicle. If you have a specialized vehicle, whether it's an RV or a commercial vehicle, a standard auto insurance policy will not provide the coverage you really need. Check with your auto insurer to see if they offer specialized policies. If not, consider switching to a company that does. If you move all of your auto insurance policies to one company, you may be eligible for a loyalty discount.
Sunday, January 4, 2009
Privacy Policy
Privacy Policy for http://highautoinsurancecompanies.blogspot.com/
At http://highautoinsurancecompanies.blogspot.com/, the privacy of our visitors is of extreme importance to us. This privacy policy document outlines the types of personal information is received and collected by http://highautoinsurancecompanies.blogspot.com/ and how it is used.
Log Files
Like many other Web sites, http://highautoinsurancecompanies.blogspot.com/ makes use of log files. The information inside the log files includes internet protocol ( IP ) addresses, type of browser, Internet Service Provider ( ISP ), date/time stamp, referring/exit pages, and number of clicks to analyze trends, administer the site, track user’s movement around the site, and gather demographic information. IP addresses, and other such information are not linked to any information that is personally identifiable.
Cookies and Web Beacons
http://highautoinsurancecompanies.blogspot.com does use cookies to store information about visitors preferences, record user-specific information on which pages the user access or visit, customize Web page content based on visitors browser type or other information that the visitor sends via their browser.
DoubleClick DART Cookie
.:: Google, as a third party vendor, uses cookies to serve ads on http://highautoinsurancecompanies.blogspot.com/.
.:: Google's use of the DART cookie enables it to serve ads to users based on their visit to http://highautoinsurancecompanies.blogspot.com/ and other sites on the Internet.
.:: Users may opt out of the use of the DART cookie by visiting the Google ad and content network privacy policy at the following URL - http://www.google.com/privacy_ads.html
Some of our advertising partners may use cookies and web beacons on our site. Our advertising partners include ....
Google Adsense
These third-party ad servers or ad networks use technology to the advertisements and links that appear on http://highautoinsurancecompanies.blogspot.com send directly to your browsers. They automatically receive your IP address when this occurs. Other technologies ( such as cookies, JavaScript, or Web Beacons ) may also be used by the third-party ad networks to measure the effectiveness of their advertisements and / or to personalize the advertising content that you see.
http://highautoinsurancecompanies.blogspot.com/ has no access to or control over these cookies that are used by third-party advertisers.
You should consult the respective privacy policies of these third-party ad servers for more detailed information on their practices as well as for instructions about how to opt-out of certain practices. http://highautoinsurancecompanies.blogspot.com/'s privacy policy does not apply to, and we cannot control the activities of, such other advertisers or web sites.
If you wish to disable cookies, you may do so through your individual browser options. More detailed information about cookie management with specific web browsers can be found at the browsers' respective websites.
At http://highautoinsurancecompanies.blogspot.com/, the privacy of our visitors is of extreme importance to us. This privacy policy document outlines the types of personal information is received and collected by http://highautoinsurancecompanies.blogspot.com/ and how it is used.
Log Files
Like many other Web sites, http://highautoinsurancecompanies.blogspot.com/ makes use of log files. The information inside the log files includes internet protocol ( IP ) addresses, type of browser, Internet Service Provider ( ISP ), date/time stamp, referring/exit pages, and number of clicks to analyze trends, administer the site, track user’s movement around the site, and gather demographic information. IP addresses, and other such information are not linked to any information that is personally identifiable.
Cookies and Web Beacons
http://highautoinsurancecompanies.blogspot.com does use cookies to store information about visitors preferences, record user-specific information on which pages the user access or visit, customize Web page content based on visitors browser type or other information that the visitor sends via their browser.
DoubleClick DART Cookie
.:: Google, as a third party vendor, uses cookies to serve ads on http://highautoinsurancecompanies.blogspot.com/.
.:: Google's use of the DART cookie enables it to serve ads to users based on their visit to http://highautoinsurancecompanies.blogspot.com/ and other sites on the Internet.
.:: Users may opt out of the use of the DART cookie by visiting the Google ad and content network privacy policy at the following URL - http://www.google.com/privacy_ads.html
Some of our advertising partners may use cookies and web beacons on our site. Our advertising partners include ....
Google Adsense
These third-party ad servers or ad networks use technology to the advertisements and links that appear on http://highautoinsurancecompanies.blogspot.com send directly to your browsers. They automatically receive your IP address when this occurs. Other technologies ( such as cookies, JavaScript, or Web Beacons ) may also be used by the third-party ad networks to measure the effectiveness of their advertisements and / or to personalize the advertising content that you see.
http://highautoinsurancecompanies.blogspot.com/ has no access to or control over these cookies that are used by third-party advertisers.
You should consult the respective privacy policies of these third-party ad servers for more detailed information on their practices as well as for instructions about how to opt-out of certain practices. http://highautoinsurancecompanies.blogspot.com/'s privacy policy does not apply to, and we cannot control the activities of, such other advertisers or web sites.
If you wish to disable cookies, you may do so through your individual browser options. More detailed information about cookie management with specific web browsers can be found at the browsers' respective websites.
Subscribe to:
Posts (Atom)