Paul asks…
Why can’t I get a decent car insurance premium?
I am a 27 year old male with no points on my licence, its been six years since any kind of accident, I have never been pulled over and given a ticket in my life. It seems that no matter what kind of car or what location Im in I can not get a good car insuarance rate. At one point I was paying over $4000 a year. I recently did an inquiry to see what it would cost to insure a 99 toyota tercell with an alarm, various anti-theft devices and in a state that is known for having lower cost insurance, plus it would only be for work and less than 10,000 miles a year in driving. I was quoted $209 a month! Other than one accident 6 years ago, I have a spotless driving record, why are my insurance costs so crazy?
Thanks for all the help everyone, but I forgot to mention that the $209 is just for liability with a $2000 deductible. This is with many different Ins companies. I think I am just unlucky.
MyDigiResults answers:
Have you kept continuous coverage, if not, that can raise your premiums. Also, I heard somewhere that insurance rates don’t drop for a guy until 30. Sorry!
Donna asks…
I have to switch my car insurance?
Geico has quoted me the lowest rate?
Does anyone have them? What do you think of them? Are the good?
I’m with state farm now, they are wanting to charge me $375/mo. for insurance.
MyDigiResults answers:
Geico Rocks.
Progressive isn’t bad either.
Linda asks…
Why does a “Credit Rating” have anything to do with Auto insurance?
To be honest I don’t feel that a persons credit rating have anything to do with car insurance. A quote should be an honest quote of what it cost per month and per year. Either you pay your car insurance or not. What risk is this to the Insurance company? It can be canceled by the company if payment is not made. The company doesn’t pay for an accident that occur if the policy is not in force. There is no loss to them. What is the point of making someone pay a higher premium if they haven’t had an accident nor was it their fault. This is unfair racking it in. Who made this policy to base it on your credit rating? The economy is in a depression right now so many people will have bad credit ratings and those who have fallen into this mess now will have higher payments and have never had an accident or it wasn’t their fault. They are not responsible for the deficit we have today. All rates should depend on Make, Model and Year of your car. A Credit Rating has nothing to do with paying your monthly amount for coverage. Can you tell me why, if no accidents have been caused? It doesn’t have a feasible answer to me.
MyDigiResults answers:
In a nutshell, (statistically) people who have a poor credit score are more likely to file a claim.
Actuarial studies show that how a person manages his or her financial affairs, which is what an [insurance score] indicates, is a good predictor of insurance claims. Insurance scores, plus other factors such as age, driving record, make and model of your car, and how many insurance claims have been filed in the past, are used to help insurers differentiate between lower and higher insurance risks and thus charge a premium equal to the risk they are assuming.
The goal of every insurance company is to correlate rates for insurance policies as closely as possible with the actual cost of claims. If insurers set rates too high they will lose market share to competitors who have more accurately matched rates to expected costs. If they set rates too low they will lose money.
Some states ban the use of credit scores as a consideration. This might been seen as benefiting those in lower economic groups — but others in the risk pool are subsidizing these people (from a statistical perspective).
Sandra asks…
Why does ones Credit Rating have anything to do with Auto insurance?
To be honest I don’t feel that a persons credit rating have anything to do with car insurance. A quote should be an honest quote of what it cost per month and per year. Either you pay your car insurance or not. What risk is this to the Insurance company? It can be canceled by the company if payment is not made. The company doesn’t pay for an accident that occur if the policy is not in force. There is no loss to them. What is the point of making someone pay a higher premium if they haven’t had an accident nor was it their fault. This is unfair racking it in. Who made this policy to base it on your credit rating? The economy is in a depression right now so many people will have bad credit ratings and those who have fallen into this mess now will have higher payments and have never had an accident or it wasn’t their fault. They are not responsible for the deficit we have today. All rates should depend on Make, Model and Year of your car. A Credit Rating has nothing to do with paying your monthly amount for coverage. Can you tell me why, if no accidents have been caused?
MyDigiResults answers:
Insurance companies are in the business of insuring risk. There is a strong correlation between credit history and insurance risk, it may seem these are unrelated but people who make bad decisions in one area of their life tend to make bad choices in other areas also and are higher risk.
Lizzie asks…
Rough Insurance Quotes (Guesses welcome)?
I am first in line for several used cars I’m considering. The only thing I’m worried about are insurance rates. I’m only 19 and I’ve had my license for less than 6 months. I will be signed on with my parents, and they are with Geico. The three cars I’m considering are a 2000 Ford Mustang, a 2004 Honda Civic and a 2001 Kia Rio. How much would you guess it would cost me a month/year to insure?
MyDigiResults answers:
If you get liability the prices should vary little. Sometimes the price is the same no matter what car you get.
If you’re planning to fully insure your vehicle, the Kia Rio is going to be your least expensive option. The vehicle is smaller, less expensive and the vehicle least likely to get robbed. A 2000 Ford Mustang is going to expensive for your age. Insurance company stats show younger drivers to get more tickets on sports cars. A 2004 Honda Civic would be the considered the middle of the three cars. However, they tend to be robbed often.
Best thing to do is call Geico for the quote.
Mandy asks…
Does filing an insurances claim for a stolen car increases m rates?
In an incident where in my vehicle is stolen and completely demolished or stolen and never recovered how long does the insurance takes to come up with a resolution or whatever. AND by the way does this increases my rate or Quote??
MyDigiResults answers:
Well, in most states, you can’t be surcharged for a comp claim, but the insurance companies WILL count it as a claim against you – so you can lose a loss free credit, or move to a different rating tier.
Technically, it’s not a rate increase, but effectively, it is.
Usually for a theft, the insurance company isn’t going to settle until three or four weeks later, unless the car is found earlier, AND you’re not suspected of being a participant in the crime.
James asks…
car insurance questions?
ok so I need 2 questions answering if possible:
1) I am currently a provisional driver. If I get a quote for say £1200 under a provisional license, when I become a full license holder (and Im assuming I have to tell insurance this), will the current rate stand until the contract is finished, or will the rate suddenly go higher and I’ll have to pay more on the same contract?
2) Say I pay yearly, and after 5 months I get rid of my car (or write it off etc), can I cancel my insurance policy and get back money for remaining months that I have not used?
Thanks
MyDigiResults answers:
1) I think it should stay the same after you pass your test.
2) Insurance companies don’t like giving money away, and refunds are never given on a pro-rata basis. You might get two or three months worth back if you’re lucky, but you won’t get anything like 7, sorry.
Lisa asks…
How much do you pay for auto insurance?
I just spent a few hours getting an auto insurance quote from a number of companies. I got a real good rate ($573 for a whole year) for our 2004 car and all the extras.
I think this is a pretty good rate but wonder if others are paying more or less.
How much are you paying?
MyDigiResults answers:
Try to check this out. An auto insurance company, i heard to offer good coverage.
Betty asks…
Will I lose my claim with my insurance company?
I’m currently expecting approximately $800.00 for a car rental reimbursement due to a car accident. Since then, my insurance rates have gone up about $60.00 more. I got a quote from progressive for $160.00 less than what I am paying right now. If I were to switch insurance companies, will I lose my claim?
MyDigiResults answers:
I don’t think so because you were insured under their policy at the time and you have a written agreement (the policy) which states what your company will pay. Changing insurance companies shouldn’t have any bearing on your claim for car rental reimbursement.
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