Car Insurance Rates – Why Do They Fluctuate?

When you buy the same car that your neighbor has but still pay more for your insurance, it is bound to leave you frustrated. However, you should know the different reasons as to why this happens. There are a lot of explanations for this phenomenon and an understanding of the same might perhaps help you figure out as to why you might end up paying more for your car insurance compared to the others. If you want to learn more about the reason car insurance rates vary from one place to another, you might want to continue reading and try to improve your rate somehow.

Credit history

An important reason for the insurance rate to waver would be because of your credit history. Hence, if you have skipped bills and not made payments on time, you are more likely to pay more for your car insurance compared to others. People with poor credit rating are much more likely to be having significantly higher car insurance rates compared to others. Hence, make sure that you take care of your finances and make all the payments on time to avoid getting penalized for this later on.

Driving record

If you are someone that has had too many accidents I the past, it is quite likely that you are going to be paying more for your car. Insurance companies view drivers with accidents in the recent past as risky individuals, which is why they are made to pay amongst the highest car insurance rates. If you want to be sure that you wouldn’t want to be in this group, then you should be more careful on the road and always obey the law. Getting too many tickets and violating the law while using your vehicle will all contribute to an increase in your insurance rates.

Gender and Marital status

You might find it hard to believe, but there are certain parameters that are true in your case which might be working against you when it comes to car insurance rates. These includes things like gender and marital status, both of which are used in determining how much money you might be coughing out for your insurance on a regular basis.

Men pay higher than women and divorced or single men always pay more than their married counterparts. These rates are based on statistical data available with insurance companies which indicate the kind of people that might end up paying more for the insurance than the others.

Hence, now that you have an idea about how insurance is computed, you might be in a better position to determine whether or not you are paying more for your car insurance. In most cases, it might be easily determinable by just getting multiple quotes. However, at other times, you might have to do a little bit of research before knowing for sure about whether or not your rates are the best in the market. If for some reason you feel that your car insurance rates and cheap car insurance are higher than normal, you should consider switching and opting for insurance coverage from some other company.

Car Insurance Rates – The Best For Less

The cost of your car insurance policy is not an indication of its quality. Although you can’t get the best without paying for it, you can pay a lot more than you should for an insurance policy. What if there’s a way for you to get your present insurance coverage for less? Read through carefully to see how you can save on car insurance.

Anybody who likes shopping knows that it’s the way to get great deals on anything. It makes no difference whether you want to buy a house or get a contractor to help you fix a few things. The difference, however, is that while the margin in many things could be low, in car insurance you can save over $2,000 depending on how you shop, what you shop for and what your profile is.

Why is this so? Insurance companies use certain factors to determine a person’s risk. However, they all have different views of how much each of these factors indicate a person’s risk level. What an insurance company calculates as the risk involved in insuring you is what determines your rates.

Therefore if you check with five different insurers, you’ll get 5 different quotes for the same profile and policy. Differences in rates could be as small as $50 or as much as $2,700!

This means that if you know how to shop and where to shop for quotes you can get as much as 50% or more off your current auto insurance costs. This can be a time-consuming process if you attempt to do it by calling up different insurance agents and getting quotes from them.

Thankfully all you have to do now is visit specialized sites for your quotes. These sites ask for simple details that will help determine your profile and desired coverage. You’ll be done with each site in around five minutes and for that you’ll have up to five quotes if you use certain quotes sites.

If you want to save much more then you have to do more: Visit more of such sites. The reason is that doing this will make you get more quotes thereby reducing the odds that you’ll miss out a great offer not presented on any of the other sites.

If this will take you a total of between 30 minutes and one hour isn’t it worth it even if you only save a few hundred dollars?

But what if your profile and policy are such that might attract savings of over $1,000? A young man saved $2,644!

Insurance Companies and Universal Health Care

Insurance companies serve a very important function in our society. The purpose of insurance is to share risk. Risk is the amount of economic loss that someone is willing to assume in an activity. For instance, a bank would not loan money for the purpose of buying a house, unless the house was protected against losses such as fire, wind and other perils. That protection is provided by a Homeowner’s policy.

A loan to purchase an automobile would not be available unless the car was insured for losses by theft or collision. That protection is provided by an auto policy.

Health insurance is a policy that shares the risk of losses caused by injuries or illness. A share of the risk is assumed by the individual through a deductible or co-pay. In-other-words, if someone visits the doctor, that individual may be required to pay the first $15 or $20 of the visit. The health insurance company assumes the risk of the remainder of the cost.

That shared risk comes about through an exchange of ‘consideration’. Consideration is value. The insured pays a premium in exchange for the promise of the insurance company to pay certain costs associated with the insured’s health care. Which brings us to the controversy surrounding the government’s efforts to institute what some call universal health care.

No matter what side of the argument you are on, in favor or against universal health care, one issue has been settled. President Obama stated publicly that it is impossible to insure the ‘uninsured’ without additional costs. So, the idea that this will be a ‘deficit neutral’ policy has been debunked by the administration itself. Either taxes go up to pay for the program, or health care will have to be rationed to keep costs neutral, or bring them down.

In response to the public out-cry about a government health care program, the administration has called the insurance companies villains. After all, insurance companies exclude preexisting conditions for some period of time when an individual enrolls (however that is not always the case with group policies), and insurance companies are making a ‘profit’.

PreExsiting Conditions

Think about the concept of risk and preexisting conditions. An individual has a home that has been damaged by fire. Would a homeowner’s insurance company now write a policy that would cover the repairs to home caused by the preexisting fire? Of course not! That is not shared risk, that is bad business.

An individual has a preexisting health condition, say diabetes. Purchasing a policy that would exclude the treatment for diabetes for a limited period of time (usually two years), now results in a shared risk. The health insurance company will cover the person for other perils, and if that individual pays the premiums over time, that exclusion regarding the preexisting condition is then dropped.

Is it possible for the government to insure everyone in the United States and force insurance companies to provide policies without regard to preexisting conditions? It is possible, but not without driving the cost of health-care way up. After all, the money to pay the doctors and hospitals have to come from somewhere and President Obama stated that ‘We are out of money’. Since the government doesn’t earn money, its only source of revenue is taxes.

Profit

Insurance companies are being cast as the bad guy since companies make a profit. Which do you prefer, companies that are well run that make a profit, or a company like General Motors that required billions of dollars of taxpayer money to bail the company out? A profit is what allows companies to expand services and provide jobs. Companies that fail to make a profit, go out-of-business.

The government not only fails to make a profit, as a well run business entity should, it runs at a deficit. The latest example is Cash for Clunkers. Not only was taxpayer money used to subsidize auto sales, now car dealers are complaining that the government is not sending the checks for the Clunkers that were promised. It appears that many buyers will have lost their old cars and now face repossession of the new cars purchased since the money for the program did not actually exist.

This does not bode well for a government run health care system.

Tort Reform

Doctors and hospitals must practice defensive medicine. People will sue for anything. Tort lawyers use a ‘shot-gun’ approach when filing a malpractice lawsuit. All doctors, nurses, technicians and hospitals involved in a case are named as a defendant, whether that party had any actual responsibility for the claimed injury and damage.

We need a loser pay system, which provides that anyone who brings a lawsuit and loses, is required to pay the other side’s attorney fees and expenses. That would do away with most frivolous lawsuits and bring the costs of health care down.

Big Government Solution

Government should be required to live within its means. It does not, and the government, not insurance companies, is the villain in this scenario.

The founding fathers did not foresee a large, powerful centralized government. That is what was the war of independence against England was all about. The US Constitution delegated specific powers to the Federal Government, and it does not specify taking over any private sector industry.

Medicare and Medicaid are government health care programs on the verge of collapse. Even President Obama admits Medicare cannot be sustained. No program can be sustained when it runs at a deficit and all government programs run at a deficit.

Universal Health Care will run at a deficit from day one and that is just bad business.

Guidelines For Assessing and Acquiring the Best Car Insurance Rate

Searching for a good car insurance policy can be an expensive undertaking, be it in time or finances, particularly when you need to analyze several insurance company policies and quotes in an attempt to get your hands on the best car insurance policy. Looking for your insurance policy online can in effect make the research progress simpler. Online car insurance quote generation providers allow you to view multiple quotes from many providers as a result of one search query. The process of using this Internet facility is as follows:

1: Provide personal and car details

Online insurance quote generators are linked to many cars insurance company’s websites presenting you the opportunity to view many quotes from several company’s all from one source: their website. All one needs to do is submit their personal and car details. Details that are needed include your driving record, car make, mileage, registered drivers and what the function of the car is, whether it’s a private or commercial car.

2: Review quotes

After you have submitted all the necessary information required, the quote generator will process your information and whenever they get a result that suits your criteria you will probably be informed by e-mail or an on screen pop up on all results that have been generated. These rate quotations are not final, thus giving you the opportunity to evaluate the insurance company’s premium rates and any other details about the policy.

3: Buy the insurance cover

Once you have found the policy that meets all your coverage needs and at the best rate then you may need to start the buying process. This can be done either on the quote generating website or you may be directed to the website of the company of your choice