Being convicted of driving under the influence (DUI) can pose some serious challenges when you need to insure your car. Your insurance will increase, but there are ways to find affordable insurance, even after making this kind of mistake.

DUI Forgiveness

There are some auto insurers that will forgive a first at-fault accident, but, unfortunately, there are none that will ignore a DUI conviction. There are variations of penalty, however. Some may cancel or refuse to renew your policy, which, sadly, will make two strikes against you – a DUI and a cancellation.

There are companies that will offer you insurance – at a higher premium, mind you – so it will pay to shop around. Spokesman for the Insurance Information Network of California, Pete Moraga says, “Make calls. Go on the Internet and eventually you will find a company that best suits your needs until the DUI disappears from your record.”

Several insurance companies work on a case-by-case basis and will weigh a number of factors into their decision on what premium they will charge you – things like gender, age, vehicle model, and driving history can go into their decision.

How Long Will a DUI Affect My Insurance Rates?

DUIs will usually stay on your criminal record for life, however, insurance companies will look at what’s on your state’s DMV record; when your DUI is cleared from this record, you’ll be eligible for lower auto insurance rates.

How long your DUI stays on your record will vary by state – anywhere from five to 10 years, typically. There are states in which it could remain much longer. Your local DMV will be able to give you information in this regard.

As a kid, you’ve excitedly looked forward to the day you can get your driver’s license and the freedom that comes along with it. Once you’ve passed the driving exam and gotten your license you probably can’t wait to grab the keys, hop in the car, and go for a spin.

In the midst of this excitement, it’s easy for you to overlook the fact that you need auto insurance. Your parents, of course, are aware that they need to insure a new driver in the family and know that it is usually quite expensive. There are ways, fortunately, to keep the costs of insuring yourself as low as possible. The key is to find the lowest priced policies by shopping around; this is easier if you have a plan in place before you begin.

Tips:

Teens have a number of options when looking for affordable auto insurance; be sure to utilize each before you settle on a policy. Begin by getting help from a parent; parents were once teen drivers, but have now been insured for quite some time. Their experience and ability to provide assistance is usually an easy thing to ask for and can help you tremendously. You do have the option of comparing policy quotes of having your own insurance or being insured on your parents’. In most cases, it’s less expensive to be added to your parents’ policy than it is to get your own insurance.

You can lower the cost of your premium by seeking out common discounts offered by auto insurance companies. Most have “good student” discounts, so, depending on the insurance company, this can save you (or your parents) up to 15%; you will most likely need to maintain a “B” grade point average or higher.

You can also take a state recognized defensive or safe driving class; upon completion of the class, you will qualify for this insurance discount as well.

As you prove your ability to drive safely on the road, your insurance rates will drop, so be sure you always be as careful as possible while driving by wearing your seatbelt, not talking or texting on your cell phone, keeping your radio at a moderate level, obeying all traffic signs, and abiding by the designated driving rules of your state.

When you are shopping for auto insurance, you will probably find that virtually every car insurance company will offer a low interest insurance price quote due to the stiff competition of the market today. When such inexpensive rate quotes become a constant, you should delve further and seek out more information to find the insurance company that will stand above the rest. To do this, I suggest you check the efficiency of each company’s service. Find out which of them is likely to act speedily should you have a claim.

If money isn’t an issue, most drivers would, in my opinion, be compelled to have full coverage auto insurance at all times – assuming that the security of the coverage was present, as well. Though it’s great to know you’d be completely covered should an accident or any unforeseen damage happen, full coverage car insurance can be quite expensive; many of us, especially now that the economy has taken a downward turn, tend to opt for the cheapest coverage. This may not, however, provide you enough coverage should you need to make a claim.

Full coverage auto insurance does, of course, cost more due to the simple fact that you are being given the maximum protection possible should anything happen to your car and/or its passengers. But, you can still find great coverage at a great price if you simply work hard to find the right company and the right coverage. Using your buyer power to your advantage is the key; if insurance companies know that you are weighing all of your options carefully (and not just signing up for the cheapest quote), they are likely to find you the coverage you need at a price you can afford. So, getting full coverage auto insurance protection may not be as heavy on the pocket as you think, as long as you deal with the insurance companies on a business level and only deal with companies that seem to be compelled to offer you reasonable quotes.

If you carry auto insurance with Travelers, you may be glad to know that Travelers’ first mobile applications have been debuted. Applications are now available for iPhone – Auto Accident Help – and BlackBerry smartphones – Quick Connect. Both of Travelers’ apps are free of charge; Auto Accident Help can be found at the iTunes store, and Quick Connect can be downloaded at Travelers.com

BlackBerry smartphone and iPhone users will be provided auto accident assistance with these new mobile tools. Travelers existing customers will have the advantage of beginning their auto claims directly through the iPhone application, while BlackBerry users can start the claims process by logging into Travelers’ mobile web site.

In regard to the applications’ release, Patrick Gee, senior vice president for Travelers personal insurance claims stated, “Immediately after an accident, it is natural to feel unsure about what steps to take and we want to be there to help guide people through the process. Our new mobile applications allow us to do so by helping consumers with the necessary and important steps after an auto accident.”

Travelers’ ongoing mobile strategy began with the late November 2009 launch of their mobile website; integrating the online claim reporting into these new mobile apps is part of Travelers ongoing efforts to provide easy access to the claims process. According to comScore, the number of individuals accessing news and other information on a daily basis via mobile Web more than doubled from 2008 to 2009.

Spring is obviously (at least here in Indiana it is!) right around the corner, so the season for hailstorms will soon be upon us. Unfortunately, hail can cause quite a bit of damage to your automobile; luckily most hailstorms are pretty innocuous!

If your vehicle sustains damage from a hailstorm, it is sometimes difficult to decide whether you should or shouldn’t make a claim with your auto insurance company to have the damage repaired for fear that your insurance premium will be increased as a result. Luckily, hail damage is covered under your comprehensive coverage; it’s considered an act of nature, so filing a claim should not cause your rates to go up.

Insurance companies will typically endorse a paintless dent repair for hail damage to your car unless it’s too severe for this method. Using the paintless dent repair method retains the factory finish of your vehicle restoring it to pre-loss condition. Repainting your car can reduce its value, so avoiding it if possible is a definite plus.

Your auto insurance company should provide you a few different body shops to go to for repairs. These shops and your insurance company have agreements commonly called “Direct Repair Programs.” Keep in mind that these shops will be under pressure from the insurance company to keep costs to a minimum, so be sure to thoroughly check out their reputations before deciding on which one you will have repair your vehicle.

So if you sustain damage to your car this season, don’t hesitate to contact your insurance company; they should be able to help you find a shop to get your auto fixed without hiking up your insurance costs.

An insurance company will use a variety of factors when determining your insurance credit score.

Some examples of those factors are the following:

• Public records: collections, bankruptcy, liens, foreclosures, etc.
• Past payment history: how many and how often you have made late payments.
• Number of open lines of credit: how many credit cards you have in your name.
• The type of credit you have: store credit cards, major credit cards, finance company loans, etc.
• Length of credit history: how long you’ve been in the credit system.
• Inquiries for credit: how many times you’ve applied for a new credit card, a mortgage loan, and the like.

Your insurance companies use various factors in determining your premium, so each quote will be slightly different and dependent on how they interpret your credit score. An insurance credit score encompasses many factors inclusive of your credit.

Since each insurance company will use its own techniques to determine your score, it’s difficult to say exactly what an excellent – or even good – credit score is, but generally, the better your credit score, the lower your premiums will be.

If you believe there might be incorrect information on your credit report, you should contact the credit bureaus. If you report an error, the credit bureau has to investigate the error and notify you of their findings within 30 days. You can also request that the bureau(s) send a notice of any corrections they make to creditor(s) or insurer(s) who have checked your credit during the past six months. When the errors have been corrected, request a new copy of your report several months later to verify that everything is now in order.

National credit bureau contact information is as follows:

• Equifax (800-685-1111)
• Trans Union (800-888-4213)
• Experian (888-397-3742)

Although small errors might not have much of an affect on your insurance credit score, large ones can make a significant difference in your premium. Some companies won’t be able to adjust your premium until your score is corrected, but, of course, it doesn’t hurt to ask! So, if you’ve taken steps to improve your credit, ask your insurance company to re-evaluate your credit score when you are up for renewal.

Insurance for "Boomerangers"

Like so many things, individuals’ insurance needs have changed in the face of the current down-turned economy. Young adults and new college graduates have so few options, with such a limited number of job opportunities, that many are finding themselves back at home with Mom and Dad, perhaps believing that despite not having a job, they need to find their own health insurance. These unfortunate young people – termed “Boomerangers” by the industry – have been one of the sources of some insurance consequences.

Jane L. Cline, National Association of Insurance Commissioners President (NAIC) and West Virginia Insurance Commissioner says, “In this economic environment, many young adults and their parents are finding themselves in a position they never expected. A grown child moving back home can create insurance implications that must be considered carefully and understood to ensure everyone stays protected.”

If you find yourself in this circumstance, the NAIC recommends the following:

Review health, auto, and homeowners’ insurance coverage for both children and parents, making sure it adequately reflects your current living situation. You will likely save money by combining existing policies and even ridding yourself of unnecessary ones. Just be sure that the policy you do carry is of a broad enough scope to cover all family members now living together.

Discuss your situation with your agent to determine the right amount of coverage for you and your family. Because of the economic difficulties we currently face, many states are allowing adult children through their late 20s, who don’t have employer-sponsored health insurance, to be insured on their parents’ policies. Contact your state insurance department to learn how your state’s laws affect your and your children’s coverage.

If they don’t qualify to be on a parent’s policy, other options for coverage include:

• Alumni Associations – this may need to take place within a certain length of time after graduation, so check with your or your child’s school for details.
• State Insurance Pools – many states have pools for those who are unable to get private insurance coverage; check with your state insurance department for details.
• Industry Associations – professional groups and associations will often offer members with access to preferred rates; request more information through associations that exist for your industry.

The full story can be found on NAIC’s website, http://www.naic.org, under Headlines – News & Alerts.

Although the point of paying expensive insurance premiums every month is obviously to keep ourselves protected should we fall ill or become injured, insurance companies, unfortunately will likely try to find an excuse not to pay a claim if and when you do need to make one. If your insurance company tries to wriggle its way out of paying your claim, they are engaging in what is known as “insurance bad faith.”

Insurance bad faith, according to a legal term that “describes a tort claim that an insured person may have against an insurance company for its bad acts” is the attempt to skirt the duty they have to pay a claim, implied by the fact that they accepted an individual’s premium in return for coverage. This duty is often referred to as the “implied covenant of good faith and fair dealing” which automatically exists by operation of law in every insurance contract. If an insurance company breaks this duty, it can be sued on a tort claim in addition to a standard breach of contract claim. The insurance company may then be liable for paying damages above and beyond the value of the policy because of bad faith.

Almost every type of insurance carrier has a legal duty to honor their agreements to pay policyholder claims. Types of insurance companies that are sued in bad faith often include: Health, Auto, Life, and Long-term disability.

To protect yourself from going through the ordeal of having to sue an insurance company in order for them to pay your claim, you should always check with the National Association of Insurance Commissioners (NAIC) to make sure the company with whom you’re insured is in good standing, both financially and legally.

Knowledge is Power When It Comes to Buying Insurance

When you’re shopping for insurance, it’s important to know as much as possible in order to compare quotes and find the best insurance for the best price based on your specific needs. The National Association of Insurance Commissioners (NAIC) commissioned a survey to find out the extent of Americans’ knowledge on the subject; their findings were not terribly impressive. The average score on the “insurance IQ” quiz, a 10-question portion of the survey, was a mere four. The low scores are in great contrast to the fact that only 15 percent of those taking the survey felt insecure with matters of insurance, while 60 percent had reported feeling “very confident” in their decision-making abilities.

Here is an example of the questions on the NAIC Insurance IQ quiz portion of the survey:

1. Does auto insurance automatically cover a rental car? (no)
2. Can you own a house without homeowners insurance? (yes)
3. In general, how much life insurance is recommended in relation to your annual salary? (5 – 7 times your annual salary)

The majority of American adults could not answer these questions correctly; if you knew the answers, you are among the few who did!

To take the entire quiz, go to: http://www.insureuonline.org/iiQ_final.htm

The NAIC survey revealed that only 62 percent of Americans knew that accident history, vehicle safety features, and geography are key factors in determining the cost of auto insurance. A mere 19 percent knew that the requirement for private mortgage insurance is based on the size of the down payment and the lender. Just under 40 percent of those taking the survey had any idea of how much life insurance to carry based on a yearly income multiplier. And fewer than 50 percent knew that when choosing COBRA health insurance after losing a job they must cover the entire cost of coverage.

You really MUST educate yourself about whatever type of insurance you plan to purchase so you can utilize the knowledge to compare quotes from various providers. Before signing a policy, you should confirm that the provider or agent is licensed with your state insurance department. Once you’ve decided on which insurance is best for you, be sure to review the policy regularly so you know how well you’re covered should you need to make a claim.

Insurance Claim Rejection Can Be Costly

Auto insurance is incredibly valuable if you are involved in an accident, therefore it is imperative to purchase your insurance from a reputable, reliable company. Should you choose to insure with a company with internal asset problems, you may be left in financial ruin if you are at fault in a car accident, not to mention you will have wasted an awful lot of money on premiums for essentially worthless insurance. Make certain you do the research necessary to find an insurance company that will be able to pay any claims you might need to make.

There are reasons, however, that, even though they are capable of paying, an insurance company may deny auto insurance benefits; this, too, could end up costing you more than you can afford.

Here are a few reasons companies may reject auto insurance:

1. Intentionally inflicted damages – more often than not, an insurance company will not cover damages that are not accidental. In the case of theft, the company will likely not pay if they can prove that the incident was due to the driver’s irresponsibility (i.e. leaving the doors unlocked with the keys inside).

2. Giving false information – this gives the insurance company grounds fro invalidating your claim. Giving false information can also lead to legal action against you.

3. Losing important papers – losing receipts for repairs or replacement items or other legal documents gives the insurance company valid reason to reject your claim. If you can’t support your claims with legal documents, you have no proof to claim benefits.

If you find yourself being rejected by your insurance company for a claim, be sure to go back and read over your policy documents carefully. If you believe the company has no legal right to reject the claim, you should seek legal counsel to compel your insurance company to pay the amount they should.