The deer population in the United States is on the rise and this means billions of dollars to insurance companies.  Believe it or not, auto accidents involving deer are not rare and are also very costly.

One company, State Farm Insurance, has put quite a bit of time and effort into their analysis of deer-related losses.  In recently released data the company estimates that nearly one and a quarter million collisions occurred for the year from July 1, 2011 to June 30, 2012 that could be attributed to deer.

Topping the list of the states with the most deer strikes is West Virginia.  The Appalachian regions as well as the upper Midwest of the United States are the areas where motorists are most likely to run into a deer.

State Farm estimates that these vehicle-deer accidents cost the company more than $3.8 billion for the year ended on June 30.  According to the National Highway Transportation Safety Administration, nearly 200 people die each year in these accidents. State Farm derived its data from its own claims information as well as state licensed driver counts from the Federal Highway Administration.

Deer-Related Auto Collisions Have Increased

While overall auto insurance claims have been declining, the number of deer-related collisions in the United States has actually increased by 7.7 percent since last year.

“We have known for quite a while that the frequency of auto insurance claims has been declining,” said Chris Mullen, Director Technology Research at State Farm. “But whatever is causing that trend is obviously not impacting deer-related crashes.”

November is the big month for deer-vehicle encounters, according to the State Farm data, with more than 18% of all deer-vehicle collisions occurring during the 30 days of the month.

Knowing this, it is wise to take extra precaution in certain areas of the country during some months of the year.

What You Can Do

• Take extra precautions during the months of October, November, and December when most collisions occur
• Take extra caution when driving in areas known to have large deer populations and especially in areas where deer may be crossing from farm fields over the road into woodlands
• Remember that deer generally travel in groups and single file, so if you see one there are probably more.
• Using your high-beam headlights at night can help you to see the deer
• Special devices such as deer whistles, deer fences, and reflectors have not been proven to reduce the chances of a deer-vehicle collision
• Deer can often become confused when approached by a car. They may be unpredictable so use extreme caution. They may actually move towards an approaching vehicle, they may pause in the roadway, they may even cross over only to come back again.

If a deer collision is imminent the most important thing to do is to maintain control of your vehicle. Many accidents are made worse because the driver lost control and crashed into other cars on the road or objects off the road.

If a collision does occur, it will generally be covered under your comprehensive auto insurance coverage. So, if you are in a high-risk state it’s important to be sure you have adequate coverage for deer-related collisions.

 

http://money.cnn.com/2010/11/01/pf/insurance/deer_insurance_costs.fortune/index.htm?iid=SF_PF_River

http://www.statefarm.com/aboutus/_pressreleases/2012/october/23/west-virginia-again.asp

 

There are Two Types of Liability Insurance: Fact

In regards to liability insurance, there are two types: bodily injury and property damage. Most drivers carry both types of coverage. Liability coverage is important because it protects you when you are the cause of an accident.

If there is damage to the other driver’s car your property damage liability will help pay for the damages. If the driver or passengers in the other car are injured in any way, your bodily injury liability will contribute towards their doctor bills.

Without this type of coverage, you would have to pay for all damages yourself.

http://www.carinsurancecomparison.com/liability-auto-insurance-coverage-facts-and-myths

There are many factors taken into consideration by auto insurance companies when calculating a rate for each individual.  Every insurance company has its own calculations. Factors such as age and type of vehicle, garaging location and driver age are well-known factors.  However, many people are unclear about how various types of tickets may or may not affect their car insurance rate.

For insurance companies, it’s all about risk. Your rate will largely depend on your driving record.  If you receive tickets frequently or for major types of violations, this indicates to the insurance company that you are a risky driver.  They may be willing to still insure you but you will have to pay a higher premium in order for them to cover that risk.

Parking Tickets versus Major Violations

Parking tickets and other more serious types of tickets, such as moving violations, are very different issues when it comes to auto insurance. Car insurance companies do not take parking tickets into account when calculating the best car insurance rate for you. Insurance companies do not receive notice of parking tickets, but are notified of moving violations and other offenses.

If you do receive a moving violation, each company will treat it differently. The insurance companies have access to your state driving record. Most states use a point system and assign points for each type of violation.  Insurance companies will use this system to determine the amount of risk they will likely be taking on to provide you with auto insurance.

Will You Receive a Rate Hike?

If you have been with your company for a long time and have not had a strong history of violations, your company may choose to forego a rate hike if you receive a minor ticket.  However, if you are a young person and you receive a serious speeding ticket, well over the limit, you will probably see a pretty significant rate hike. The insurance company now sees you as a greater risk in the future.

Some tickets are guaranteed to increase you rate:

• DUI
• Driving with a suspended license
• Driving without car insurance
• Multiple violations in a certain time period, generally 3 years

Receiving a ticket is no fun at all. The repercussions can be quite costly. Not only must you pay the ticket, but you may have to dish out money for a traffic safety course in addition to possible increases to your yearly insurance bill.

Your best bet is to drive safely and responsibly to avoid run-ins with the law and costly insurance rate increases.

Life is always changing so it’s a good practice to review your insurance coverage at least every year.  If you have bought a new vehicle or sold an old one, if you have moved to a new city or state or if you just want to shop around it is wise to know how to properly cancel your current auto insurance coverage so you do not end up paying unexpected fees.

The most important thing to remember is that you must give notice of cancellation to your current company.  If you do not give your current auto insurance company proper notice of cancellation you may end up paying extra costs and facing a higher rate when being quoted by other companies.

Do’s

• Do know your current auto insurance company’s cancellation rules. Find out whether or not you can cancel at any time during the policy period or if you have to wait for the end of the term to avoid cancellation fees.
• Do send written notice of cancellation by calling to request a form or using your company’s online link if they have one.
• Do set up new insurance right away. A gap in coverage can adversely affect your auto insurance rates down the road. If you are able, be sure to start your new policy on the day after the current policy ends.

Don’ts

• Don’t assume your policy will cancel at the policy expiration date. Car insurance policies automatically renew for the next period, they do not end on the policy expiration date.
• Don’t stop paying without notifying your company. You will automatically be billed and if you don’t pay you will be hit with a cancellation notice as well as a bad mark on your credit report.
• Don’t leave a gap in coverage. There are many good reasons to maintain continuous coverage including lower rates and continuous protection. Insurance companies lose confidence in you when there is a gap in coverage so be sure your new policy starts as soon as the old one ends. In this way you will also be sure to be protected should anything happen during that period.

It sometimes pays to switch car insurance companies.  By shopping around you may be able to find comparable coverage at a lower rate than you are currently paying. The insurance market is competitive and good values can be found. However, be sure to follow your insurance company’s rules and be careful to avoid situations that will make it harder for you in the future.

When you begin your search for the best auto insurance rates, it’s helpful to have all the information you need in front of you before you get started.  Taking a few minutes beforehand to organize your information and to give some thought to what kind of, or how much coverage you want or need can help you to get the most accurate quote for your needs.

 

Personal Information

__ Basic information such as name, address, email and date of birth

__ Credit Rating (This is a general rating such as poor, average or excellent)

 

Vehicle Information

__ Vehicle year, make and model OR VIN (VIN will get you the most accurate quote)

__ Commute Miles (Estimate how many days per week and how many miles you drive to and from work)

__ Annual Miles (Estimate of total miles you put on your vehicles each year)

 

Claims and Violations

You will need this information for the past five years.

__ Date of claim or accident

__ State the incident occurred in

__ Type of incident (DUI, Speeding Ticket, Accident)

__ Whether or not you were at-fault

__ Amount of any insurance money paid to you for the incident

 

Insurance Information

__ Name of your current insurance company

__ Expiration date of your current policy

__ Current coverage limits to compare apples-to-apples

__ Amount of your current deductible payment

 

Think About Extras

Decide whether you would like to add optional insurance coverages such as:

__ Collision coverage

__ Comprehensive coverage

__ Windshield replacement

__ Rental reimbursement

__ Trip interruption (Covers hotels and meals if you are in an accident on trip)

 

Look For Discounts

Most insurance companies offer discounts for various reasons.  Make sure you are aware of and are taking advantage of all the discounts you may be entitled to.

__ Accident forgiveness

__ College degree discount

__ Good student discount

__ Homeowner discount

__ Married discount

__ Multiple policy discount (multiple vehicles, home, health and life insurance)

__ Discounts at other stores for using a particular insurance company

 

There are so many options today when shopping for the best auto insurance companies and rates. The internet allows you to shop and compare car insurance estimates from many companies from the comfort of your own home.

Searching for the best car insurance rates takes a little bit of time and organization, but if you know what you have, how you use your vehicles and what you want, you can save hundreds on your yearly insurance costs.

Whether you are just getting off of your parents insurance policy and onto your own, or you are an adult obtaining your own auto insurance policy for the first time, getting the best car insurance for your situation is extremely important. Knowing how auto insurance works, the various policy options and the discounts available will help you get the best policy at the best rate.

First-timers generally face the obstacle of lack of driving experience. This can lead to higher rates so be prepared.  But there are ways to keep costs in check by taking advantage of discounts and performing periodic reviews of your insurance. As long as you remain accident free, you should see your rates come down over time.

The most important step you can take is to understand auto insurance so that you receive quotes for the policy that fits you best.  An auto insurance typically contains six separate and distinct parts. Some are required by law and some are optional.

Overview of Auto Insurance Coverages

The first two items are part of auto liability insurance. This pays the expenses for injuries or vehicle damage for which you were found to be at fault. Other coverages are recommended but are not required by law.

1. Bodily Injury Liability – Pays for injury to a person, caused by the policyholder.
2. Property Damage Liability – Pays for the damage to someone else’s property caused by the policyholder.
3. Medical Payments – Pays for the treatment of injuries to the driver and passengers of the policyholder’s vehicle.
4. Collision Coverage – Pays for the damage to your own car caused by a collision.
5. Comprehensive Coverage– Pays for damage to your own car caused by factors other than a collision. For instance, theft, vandalism or fire.
6. Underinsured or Uninsured Motorist – Pays for the treatment of the policyholder’s injuries in the case where the other driver does not have insurance, or is their coverages do not cover your injuries.

Know Your Discounts

There are lots of discounts available for auto insurance. Be sure to ask about:

• Safe Driver
• Good Credit
• Good Student
• Military
• Certain Group Memberships
• Certain Occupations
• Multiple Vehicle
• Vehicle Alarm Systems
• Electronic Statements
• Homeowner

It can be both exciting and stressful to obtain your first car insurance quotes and compare auto insurance rates.  Knowing the specifics of policies and what you are getting for your money is the first step to peace of mind once you hit the road.

Because most of us don’t have to think about our auto insurance every day, when it is time to renew the policy or handle the effects of an accident, it can all seem quite complicated.  In addition, there can be ideas about personal auto insurance that we have learned or heard of over the years that are simply not true.

Here are a few common ideas about car insurance and the truth behind them.

Fact or Fiction:

I Chose the “Full Coverage” Option and Everything is Covered

Fiction: While “full coverage” generally means “very good” coverage, including collision and comprehensive, it’s best to sit down and look at your policy to be sure your coverage matches your individual situation.

 If I Let My Friend Borrow My Car I’m Still Covered

Fact: Generally this is true, to a point. However, use caution. If limits are too low, the drivers insurance may be used and you may also be held responsible for excessive damages. Your insurance does extend to the driver of your car if you only let them borrow it for a short time and not on a regular basis.

I Will Pay More Insurance for a Red Car

Fiction: While it may be true that law enforcement can more readily spot speeding red cars than other colors, insurance companies do not ask what color your car is and do not take this into consideration when quoting rates.

A Speeding Ticket Will Raise My Rates

Fiction: This may have been true in the past but times have changed.  Many factors are used to determine the best car insurance rate for you.  If you have a clean driving record and you get a speeding ticket, many companies will forgive this ticket.

Comprehensive Cover is Full Coverage

Fiction:  Comprehensive coverage may have a misleading name.  It does not cover collision damages from an accident. It is used in conjunction with collision coverage to handle losses due to fire, theft, vandalism, or weather events.

I Bought  a New Car so I Have 30 Days to Get Insurance

Fact: This is generally true but does vary by insurance company and state.  Some only extend coverage for 14 days so be sure to check with your company or get new insurance right away.

My License Won’t Be Affected if I Lose My Insurance

Fiction: Not true anymore! Most states now have direct, electronic reporting between car insurance companies and the DMV in your state.  Auto insurance is the law and it is much harder these days to not follow it. If you don’t you may lose your license.

My Car Accident Will Raise My Rates

Fiction: If you are less than 51% at-fault for the accident, your rates may not be affected at all. Some companies also have accident forgiveness.  Be sure to check your policy if you are involved in an accident.

The Accident Was Not My Fault So I Don’t Have to Pay My Deductible

Fiction: Sometimes, if you have collision insurance you may have to pay your deductible and then wait for the other parties’ insurance company to reimburse you when the claim is paid. If you are in an accident, be prepared.

To keep up with changes in insurance law and trends and with your own changing insurance needs, it’s important to perform and annual car insurance review to be sure your policies are up to date.

Don’t rely on past knowledge or hearsay, get the facts and be sure your auto insurance coverage is right for you.

There’s no doubt about it, if you have been convicted of a DUI you have already faced many consequences and have been through a difficult experience. Your car insurance is another hurdle in the process of rebuilding. These days a DUI does not mean you are uninsurable however you should expect to pay a lot more than you may have in the past.

Once your car insurance company learns of your DUI conviction, it is possible that they may cancel your policy altogether.  Some companies are just not in the business of insuring high-risk motorists. However, this is the worst case scenario because not only will you be faced with higher rates at a new company because of the DUI, but you will also face higher rates for having your insurance cancelled by your previous insurer.

If you are lucky and do not face cancellation, all car insurance companies will raise your rate because of a DUI. Exactly how much that will be will vary by company. Most companies look at DUI convictions on case-by-case basis.  Of course other factors will be taken into account such as your history, your age and the car you drive. These other factors may help to mitigate some of the extra costs.

What is an SR-22?

You have probably now heard of an SR-22. In addition to higher rates, you may be required to file an SR-22 once you have been convicted of a DUI. This is a form which you may need to file with your DMV in order to have your license reinstated. The SR-22 is verified by your insurance company and states that you do in fact have the required amount of insurance for your vehicle. Most insurance companies will file the SR-22 for you.

A DUI puts you in the high-risk category of drivers. This means higher rates for at least a few years after the conviction.

Will My Rates Ever Go Down Again?

A DUI conviction is very serious and state DMV’s treat it as one of their highest offenses. A DUI will remain on your record anywhere from 5 to 55 years, depending on where you live.  You may need to file an SR-22 for five years or more and during that time you cannot have any lapses in your insurance coverage or you risk losing your license again.

A DUI is a difficult experience, but with a bit of patience and persistence, and maintaining a good driving record, you can get your rates lower and back to normal in just a few years.

 

Car insurance companies use many variables when determining your car insurance rate. Age, gender, location and yes, credit score can all be used to calculate the amount an insurance carrier is going to charge you to protect your car and property.

Not all states allow this practice however.  In Massachusetts for instance, insurance rates are heavily regulated and monitored and insurance companies are not allowed to use credit history, income, occupation, marital status and home ownership status when calculating your personal auto insurance rate.

Insurers use your financial history to help quantify the risk they may be taking on if they offer you a policy. Many studies have been undertaken which have concluded that there does exist a relationship between your financial history and your insurance claim potential.

What Kinds of Information Will They See in My Credit History?

Your credit history tells a lot about how you handle your financial life. It can show a car insurance company how well you have or have not met your payment obligations to retailers, banks and mortgage companies.

Also shown on your credit history will be any foreclosures, collections or bankruptcies.  In addition, credit score companies keep track of the number of times your credit history has been requested recently, usually for the past two years.

When you apply for auto insurance, the company may look at data from your credit report such how much outstanding debt you owe, how often you were late on payments owed, how long of a credit history you have and how often you have applied for new credit recently.

What If I Have a Poor Credit History?

The best remedies for poor credit are time and moderation.  If you have poor credit now, you may see higher rates. However, as you continue to pay your debts on-time and limit the amount of credit you have outstanding, you will see a reduction in your rate.  Once an auto insurance company sees that you are fulfilling your obligations and continue to do so, they will be more willing to cover you for less money. Essentially, you will be less risky in their eyes.

If you are currently insured and you have bad credit, it may be wise to stick with your current company.  Most insurance companies use credit rating as part of their underwriting criteria now and switching companies may just lead to higher auto insurance rates.

Also, be sure to take a look at your own credit history report.  Often there are mistakes on these reports and you don’t want to be paying higher rates for someone else’s mistake.

Have you moved out of state and think you need a new auto insurance policy? Are you trying to save a little money and thinking that canceling your auto insurance is the way to go? While it may seem like a good idea for a vehicle that you don’t drive, you may regret it down the road.

Stopping the payments on your policy, without notifying the company is even worse. If you do no contact your insurance company, then your carrier will cancel your policy for you.  Having an insurance policy canceled can lead to several issues for you down the road including problems trying to start another policy later and a bad tick on your credit report.

Before you decide to cancel your auto insurance, consider a few consequences and alternatives which may be better for you in the long run.

1. Cancelled Registration – Many states now require you to cancel your vehicle registration if you are no longer carrying insurance on a vehicle. Reinstatement costs for you registration may be more than the any savings you will receive.
2. Lenders Require Insurance – If you owe money to the bank on your vehicle you may be required to keep insurance on it, even if you do not plan on driving it. Lenders require that you minimize their risk of loss by carrying insurance and if you cancel they may go ahead and slap a policy on it for you which will cost you much more than one you get yourself.
3. Risk to Your Finances – If anything damage occurs to your vehicle once you have removed the insurance, you will be stuck with paying the full cost of repairs out of your own pocket.
4. Rate Hikes – When you are ready to restart your insurance, you may suddenly find that your rates have doubled or even tripled because of a lapse in coverage or cancellation for non-payment. Plus, you will lose the continuous coverage deduction you may otherwise receive.

Instead of canceling your auto insurance it may be better for you in the long run to drop your coverages down to a minimum and more affordable level.  Low cost car insurance may be a better alternative. Even if you do not plan on driving your vehicle for a stretch of time, at least it will be covered should any damage occur while it is parked.  If you suddenly need to drive it, at least it will be minimally covered.

Think twice before letting that auto insurance policy go. You may not experience the savings you thought you would.