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.

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.

Uninsured motorists, according to the Insurance Research Council (IRC), cause fourteen percent of the injuries sustained by occupants of vehicles with insurance. As a driver with insurance, if an uninsured driver is at fault in an accident with your car, your personal auto insurance will not cover your property damage, nor any personal injuries you sustain, unless you opt to include uninsured motorist coverage.

Liability and State Law

It is estimated by the IRC that a full one in seven drivers in the U.S. do not carry auto insurance. In many states, however, state law requires motorists to have sufficient auto liability coverage. Different states, of course, will require varying levels of auto insurance coverage; it often depends upon the age of your vehicle whether or not you must carry full coverage or only liability.

If a motorist is caught driving without insurance, he or she will likely be subject to penalties, including, but not limited to: civil lawsuits for compensation of injuries of damaged property, criminal lawsuits – which can lead to heavy fines or even imprisonment – revocation or suspension of your license, vehicle impoundment, or the inability to become insured after the accident.

Uninsured Motorist Coverage

If you are involved in an accident that has been caused by an uninsured motorist of a hit-and-run, uninsured motorist coverage can help cover the costs of repairs and/or medical treatment. Unlike your regular auto liability insurance, uninsured motorist coverage protects you, rather than others involved in a car collision.

Collision or comprehensive insurance will help you to be completely covered against costs associated with an accident that occurred because of an uninsured motorist.

It is within your right to seek compensation from an uninsured driver through legal action, however, uninsured motorist coverage will ensure that you received compensation for damages or injuries in a timely manner rather than waiting for a decision handed down through the court system.

Underinsured Motorist Coverage

Underinsured coverage is similar to uninsured, but protects you against drivers who have insufficient liability rather than none at all. Your insurance company will cover any amount owed to you by the underinsured motorist if you opt for this type of protection.

]]> http://insurancethought.com/2010/02/04/the-importance-of-adding-uninsured-motorist-coverage-to-your-auto-insurance-policy/feed/ 0 http://insurancethought.com/2010/01/26/how-to-take-advantage-of-discounts-on-auto-insurance/ http://insurancethought.com/2010/01/26/how-to-take-advantage-of-discounts-on-auto-insurance/#comments Tue, 26 Jan 2010 19:25:07 +0000 Stacey Boothe Snelling http://insurancethought.com/?p=204

Save on Your Auto Insurance when You Qualify for Discounts

Auto insurance companies want your business, especially if you’re a good insurance risk, so much so that they will often offer a discount to customers who fit the description of “good risk.” When asking for quotes be sure to ask companies about any discounts they offer. If you qualify, it can significantly lower your auto insurance payments.

Driving Discounts

If you do have a clean driving record, you’re just the type of client auto insurance companies desire, so they will most likely offer you a discount. Auto insurance is generally lower for those who haven’t been the cause of any accidents for three years or more. A three year period with no speeding tickets or other moving violations could also ensure an auto insurance discount; insurance companies view clean driving records as evidence of practicing safe driving habits.

If you’re a new driver, it’s likely you are paying rather high auto insurance rates. Many companies offer a discount to any new driver who takes a defensive driving course. If you don’t drive your car very often, be sure to let your insurance company know; low annual mileage usually means a lower premium.

Auto Insurance Companies and Vehicle Safety

Auto insurance companies are also partial to safer vehicles. Safety features reduce the chances of injury if you’re involved in an accident. Cars with airbags and antitheft devices may qualify for insurance discounts as well.

Extra Cars and Homeowner Insurance

If you carry multiple policies with your insurance company, you will more than likely receive a discount. Additionally, if you use the same insurance company for your homeowners and auto insurance, you may also qualify for a discount.

Other Discounts

Auto insurance companies usually offer lower auto insurance rates for other reasons as well. Drivers over the age of fifty often receive age-related discounts. Students with good grades may also qualify for a discount. If you’re part of a carpool, you may also qualify for lower auto insurance rates. And, certain occupations, such as teacher, may receive discounted rates as well.

Contact your agent to be sure you’re receiving all the auto insurance discounts available to you!

Be Sure You Thoroughly Research Each Insurance Company You Are Considering

In general, one of the main goals of an auto insurance policy consumer is to purchase the cheapest one, “get the best deal,” save money. Price – plain and simple – is important. However there are things you don’t want to overlook when finding a company that can provide a policy at a price that’s right for you.

When you begin the hunt for the best coverage at the best price, be aware of facts regarding the companies at which you are looking. Ultimately, you want to be insured by a best-rated car insurance company. Why? Probably one of the most important reasons is that the company you choose will be the one responsible for paying you if you should need to file a claim. A carrier with a poor rating may not be financially stable enough to honor the claims they are supposed to pay.

To Find the Best Rated Auto Insurance Carriers:

There are several ways you can find a carrier that will provide the security you seek. Some individuals ask friends and family to recommend their companies if they are satisfied with their providers, while others look online for opinions of those who’ve used the companies’ services. Though some prefer to just sign up with the company that offers the cheapest insurance, it is likely to be worth a bit of a cost increase to have the security of being backed by one of the best companies in the industry.

Don’t halt your shopping for insurance simply because you’ve found the cheapest rates available. Keep a few of the most affordable quotes you’ve obtained, then spend a little extra time conducting some research on those companies to determine their financial stability.

You will find that several agencies rate insurance companies based on their financials and ability to pay claims that get filed. One way an agency will do this is to “grade” the companies; much as your child receives a grade on his or her report card, the companies are given grades that show potential consumers how financially stable they seem to be. You can find such an agency rather easily online.

The other basis for rating an insurance company would be customer satisfaction. You can check with your state’s Insurance Regulator for the number of complaints that have been filed with the companies you’re interested in.

Once you’re armed with information about each insurance company that can offer you coverage at an affordable price, it will be easy to make a decision about which one is the best possible choice.

Auto Insurance Rates Are Based on a Number of Factors

Do you own a car? If so, you most likely pay to have it insured. Most of us, though, do not understand why the rates vary so much with individual drivers. Many of us don’t even ask why we pay a certain amount!

Auto insurance rates are based on the following factors:

• Vehicle’s cost/value
• Vehicle’s characteristics/safety features
• Vehicle usage
• Type of coverage selected
• Driver profile/record

Your coverage, first of all, is based on how much it will cost the insurance company to replace your vehicle, therefore, certain models will be costlier to insure. However, it also depends on the type of vehicle you choose to drive. Certain types of vehicles will indicate riskier (i.e. a sports car or motorcycle) or safer (mid-size “family” cars, vans) driver behavior, so companies base some of the costs associated with coverage on this factor as well.

A driver’s profile – age, sex, marital status, driving record – also contribute to determining the rates a company will charge. Statistically, the accident rate is higher for drivers under 25 – especially males – so 16 to 25 year olds will generally have the highest auto insurance premiums. If you have a student driver you must cover, you should check with your insurance company about a “good grade discount.” This can alleviate some of the costs if you have a good student who is otherwise costly to insure.

Driver training courses can also be a way to take advantage of additional discounts for younger drivers. And, of course, keeping a clean driving record will make your coverage less expensive as well.

Another area companies look at is how often and how far you drive your vehicle. Those who drive their cars only to run errands or visit nearby friends and family will be charged lower rates than those who must commute long distances on a daily basis.

The other portion of auto insurance that can affect your rates is how much coverage you elect on each portion of your policy. You may or may not need as much coverage as you carry, so be sure to take a look at this so you won’t be paying for coverage you will never need or use.

It’s always a good idea to evaluate each of these areas about once a year to determine if you have enough or too much coverage; you don’t want to be over- or under-insured, so be sure you speak with your agent and take a close look at your auto insurance policy together to determine if you need to make any changes for the upcoming year.

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