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Friday, March 04, 2005

Go to Church? Save on Car Insurance?

Omaha World-Herald reports that Churchgoers and religious volunteers will receive special discounts on their home and car insurance under a new product line launched by GuideOne Insurance.
The West Des Moines-based company, which specializes in insuring churches and private schools, said its new "FaithGuard" product line is a natural extension of its coverage of 45,000 churches nationwide.

The Iowa Civil Liberties Union on Thursday criticized the line, saying it appears to violate laws prohibiting discrimination on the basis of religious views. The group predicted a nonreligious customer would challenge the policies in court.

"They are making religious distinctions between their customers, and they are treating some customers better than others based on those distinctions," said Randall Wilson, the group's legal director. "How is that not religious discrimination?"

Under the policies, the faithful would not have to pay a deductible if they are in a car accident on the way to church activities, and they would receive double medical coverage in such accidents. Churchgoers would not have to pay a deductible if they lose personal property while at church. Both home and auto policies would provide up to $750 to cover a policyholder's church donations, or tithing.

The policies will also give discounts to pastors, drivers who do not drink, and homeowners who do not smoke. A nonsmoker, for instance, will get a 5 percent discount on home insurance.

So let me get this straight. I pay an outrageous premium because of my age group, yet there are companies out there that decide to "take your word for it" if you are a "churchgoer" and don't have to provide any sort of proof and give you a discount on car and home owners insurance.

I guess it's time I start going to church to get "special discounts" on my car and home owners insurance.

But seriously, I can't see this passing in a court of law. It's preposterous to even fathom such an idea. Giving a discount on any product based on religious beliefs has got to be one of the dumbest things I've heard in a long, long time. It's like Comcast or DirectTV giving discounts to their customers because they believe in the Easter Bunny.

posted by Richard @ 7:53 PM   0 comments links to this post  

Thursday, March 03, 2005

Higher Age, Lower Car Insurance Costs?

USA Today published an article regarding the adjustment of the driving age to 18. The reason behind this adjustment is due to a study conducted by the National Institute of Health.

Apparently, the part of the brain that makes crucial decision making skills isn't fully developed until age 25 (could this be why adults aren't granted a huge break in their cost of car insurance until 25?). At age 16, however, this part of the brain is very under developed compared to that of an 18 year old.

The debate on age requirements to obtain a drivers license in the US has been one that has been going on for years. 1,000 people were polled the question:

At what age do you think people should be permitted to have a driver's license?

In May of 1995, 46% of those polled said 16 years old.
In December of 2004, 35% of those polled said 16 years old.

The increase of the driving age may also have cost benefits where car insurance is concerned. At 16 there are more accidents than any other age group. It's reported that one in five 16 year olds will be in a car accident. One of the determinants of a car insurance premium is the statistics of the age groups of drivers. Younger drivers (especially males) typically have higher premiums than other drivers (due to higher risk of accidents and traffic violations). As a driver ages and is considered a good driver (no accidents or outstanding tickets) their premium typically lowers.


So, 18 might not be so bad afterall...

posted by Richard @ 8:24 PM   0 comments links to this post  

Wednesday, March 02, 2005

21st Century: A Personal Recommendation

From a personal standpoint, I use 21st Century Car Insurance as my car insurance provider of choice. The main reason I chose them was because out of numerous agencies, 21st had the lowest Car Insurance rates. When I was shopping around initially, I decided that the most important feature I wanted was the ability to contact my agent at any time as well as be able to file a Car Insurance claim either over the phone or online. I also wanted the ability to pay my Car Insurance bill online rather than having a paper billing feature. You can have the paper billing feature as well, but I prefer to do all Car Insurance payments online as it's easier for me to manage.

I've been using 21st Century Car Insurance for the last year and a half or so and find them to be top notch. They offer very affordable Car Insurance rates, however they are limited to a few states: California, Arizona, Ohio, Illinois, and Indiana.

Another main reason I made the switch from AAA Car Insurance to 21st Century Car Insurance was the fact that I was able to save $300 a month! This varies between states and cities, but on average most people do tend to save around that amount by switching. You can also double your home owners insurance and other vehicles for an added savings.

If you would like a free quote from 21st Century Car Insurance, please click here and hopefully you too can save some hard earned money on auto insurance.

posted by Richard @ 11:03 PM   0 comments links to this post  

Car Insurance Tips

Here are some Car Insurance Tips to get you started on purchasing the right form of Car Insurance at an affordable rate.

1. Shop Around for Car Insurance

Prices vary from company to company, so it pays to shop around for car insurance. Get at least three car insurance price quotes. You can call car insurance companies directly or access car insurance information on the Internet. Your state car insurance department may also provide comparisons of prices charged by major car insurers.

You buy car insurance to protect you financially and provide peace of mind. It's important to pick a car insurance company that is financially stable. Check the financial health of car insurance companies with rating companies such as A.M. Best (ambest.com) and Standard & Poor’s (standardandpoors.com) and consult consumer magazines.

Get car insurance quotes from different types of car insurance companies. Some sell through their own agents. These agencies have the same name as the car insurance company. Some sell through independent agents who offer policies from several car insurance companies. Others do not use agents. They sell car insurance directly to consumers over the phone or via the Internet.

Don't shop price alone. Ask friends and relatives for their recommendations. Contact your state car insurance department to find out whether they provide car insurance information on consumer complaints by company. Pick an agent or car insurance company representative that takes the time to answer your questions. You can use the checklist at the end of this guide to help you compare car insurance quotes from insurers and on the same coverage.

2. Before You Buy a Car, Compare Car Insurance Costs

Before you buy a new or used car, check into car insurance costs. Car insurance premiums are based in part on the car’s sticker price, the cost to repair it, its overall safety record, and the likelihood of theft. Many car insurers offer discounts for features that reduce the risk of injuries or theft. These include daytime running lights and anti-theft devices. To help you decide what car to buy, you can get information on car insurance from the Insurance Institute for Highway Safety (iihs.org).

3. Ask for Higher Deductibles on Car Insurance

Deductibles are what you pay before your car insurance policy kicks in. By requesting higher deductibles, you can lower your car insurance costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15 to 30 percent. Going to a $1,000 deductible can save you 40 percent or more. Before choosing a higher deductible, be sure you have enough money set aside to pay it if you have a claim.

4. Reduce Car Insurance Coverage on Older Cars

Consider dropping collision and/or comprehensive car insurance coverages on older cars. If your car is worth less than 10 times the premium, purchasing the coverage may not be cost effective. Auto dealers and banks can tell you the worth of cars. Or you can look it up online at Kelley’s Blue Book (kbb.com). Review your coverage at renewal time to make sure your car insurance needs haven’t changed.

5. Buy your Homeowners and Auto Coverage from the Same Insurer

Many car insurers will give you a break if you buy two or more types of car insurance. You may also get a reduction if you have more than one vehicle insured with the same insurance company. Some insurers reduce the rates for long-time customers. But it still makes sense to shop around! You may save money buying from different car insurance companies, compared with a multi-policy discount.

6. Maintain a Good Credit Record

Establishing a solid credit history can cut your car insurance costs. Insurers are increasingly using credit information to price auto insurance policies. To protect your credit standing, pay your bills on time, don't obtain more credit than you need and keep your credit balances as low as possible. Check your credit record on a regular basis and have any errors corrected promptly so that your record remains accurate.

You can obtain a free credit report (without the actual numerical score) from www.annualcreditreport.com starting December 1st, 2004 in many Western States. Other states will be added in the future.

7. Take Advantage of Low Mileage Discounts

Some car insurance companies offer discounts to motorists who drive a lower than average number of miles a year. Low mileage discounts can also apply to drivers who car pool to work. Car pooling not only saves YOU money on insurance, but it also saves on the wear and tear of the vehicle, not to mention the ENVIRONMENT.

8. Ask about Group Car Insurance

Some car insurance companies offer reductions to drivers who get car insurance through a group plan from their employers, through professional, business and alumni groups, or other associations. Ask your employer and inquire with groups or clubs you are a member of to see if this is possible. The discounts could be dramatic in some cases, such as members of the military or police forces.

9. Seek Out Other Car Insurance Discounts

Companies offer car insurance discounts to policyholders who have not had any accidents or moving violations for a number of years. You may also get a car insurance discount if you take a defensive driving course. If there is a young driver on the policy who is a good student, has taken a drivers education course, or is at a college out of the area without a car, you may also qualify for a lower rate.

When you comparison shop for car insurance, inquire about discounts for the following:*

[ ] $500 deductible
[ ] $1,000 deductible
[ ] More than 1 car
[ ] No Accidents in 3 Years
[ ] No Moving Violations in 3 Years
[ ] Driver Training Courses
[ ] Defensive Driving Courses
[ ] Anti-Theft Devices
[ ] Low Annual Mileage
[ ] Air Bags
[ ] Anti-Lock Brakes
[ ] Daytime Running Lights
[ ] Student Drivers with Good Grades
[ ] Auto and Homeowners Coverage with the Same Company
[ ] College Students away from Home
[ ] Long-Time Customer
[ ] Other Discounts

The key to savings is not the discounts, but the final price. A car insurance company that offers few discounts may still have a lower overall price.

*The discounts listed may not be available in all states or from all car insurance insurance companies.

For more information, call the National Insurance Consumer Helpline (NICH) at 1-800-942-4242

posted by Richard @ 9:20 PM   3 comments links to this post  

Monday, February 28, 2005

Car Insurance

Welcome to my site about Car Insurance. The purpose of this site is to create awareness of changes in the Car Insurance business. Come back soon for more information on Car Insurance.

posted by Richard @ 3:52 PM   0 comments links to this post