Car Insurance Archives - Alexander Insurance Agency

24Jul

Graduating to the Wide-Open Road: A Parent’s Guide to Insurance for Teenage Drivers

The moment when you finally hand your car keys over to your teenage son or daughter and watch them drive away can evoke fear for even the most calm and controlled parent! Some parents are concerned with safety, while others wonder if they will be able to cover the cost. For those who are wondering when exactly their teenager should be added to their insurance and just how much they can expect to pay, we made this week’s blog post with your potentially-nerve-wracked self in mind.

What are Some Key Things to Know About Auto Insurance for My Teen?

First, one form of relief can come as a perk of a learner’s permit. If your teenager is still officially covered under a learner’s permit most insurers don’t charge extra, because they are confident that someone else is there watching them to prevent accidents or other mishaps. Once the teen takes the driver’s test, passes, and acquires their license, you then must formally obtain a policy. With less experience behind the wheel and statistically higher accident rates, teenagers always face the highest cost of insurance. Following are some of the reasons that teens struggle with higher insurance rates:

Overall inexperience
Reluctance to wear seatbelts
Higher rates of distracted driving
Higher rates of drinking while driving
A time-proven tendency to speed
Higher likelihood of nighttime or weekend incidents

How Much Can I Expect to Pay to Insure My Teenage Driver?

Just as it stands with other forms of insurance policies such as homeowners and motorcycle policies, the answer depends on the state you reside in. Age and gender are also a factor, as a 16-year-old will end up costing more than a 19-year-old, and a male will be more expensive than a female. After the various data acquired from last year’s Carinsurance.com study was compiled, the results claimed that the average cost of adding a teen to your auto insurance policy is $3,798 per year, or a quite pricey $316.50 per month. Some teens are holding part time jobs with longer hours than average just to fit the bill for these exorbitant costs.

What are Some Tips to Keep These Costs Down?

It IS possible to secure coverage without completely breaking the bank, as a bit of consideration and proactive measures will make a difference in premium costs. Even after the pandemic had eased up a bit, all of us here at the Alexander Agency of St Charles could tell that families were still hurting and compiled this shortlist to be of assistance.

Hold off Altogether: We know that your teen may not want to hear this right off the bat, but if you wait longer, the costs will not be as high. It’s a bit less fun to take this route, but some metropolitan areas have made strides 2 lower their fares and make public transportation more accessible.
Consider Inexpensive Used Cars: It could prove to be much less expensive to buy your teenager an older or slightly beat-up vehicle and shell out for liability only. Even adding your teen driver as an uninsured driver of your own vehicle could be expensive if you are enjoying the benefits of a newer crossover, truck, or sedan. This tends to vary by the insuring party but will at least allow your new driver to get some experience behind the wheel before they choose something fancier.
Consider Usage-Based Insurance: UBI programs use telematics to keep an eye on driving habits, such as distance, speed, and how aggressively you are braking. If your teens prove themselves with a solid 6-month or year-long streak of good driving behavior, UBI can lead to discounts that will allow the whole family to have more money left over each month.
Increase Your Deductible Limit: If you are willing to opt for a higher deductible, your premium costs will go down. Make sure to talk to one of our agents, who will discuss a feasible balance between deductible amounts and premium costs that are sensible enough for you to pay for, and will “meet all parties in the middle” regarding risk.
Proactively Encourage Good Grades: Many insurance companies will offer sizeable discounts to students who are actively maintaining excellent academic standing. Encourage your teen to do well in school, as nailing down a certain GPA can be another great way to reduce your rates. This one can be difficult for a teen who is already distracted by the potential for freedom on the road with their very own wheels, but it can prove to be well worth it!
Always Ask About Driver Discounts: There are all types of other discounts available when looking to cut costs for a new teen driver. For some companies, these savings come in the form of a distant student discount if the young driver moves away to attend school and the car stays behind. Low mileage, multi-vehicle family plans, and other tactics can all be considered as a great way for a company to extend its knowledge and experience to get your teen driver a better rate.

One of the best ways to keep teen driver costs at bay is to teach young drivers from the start just how important it is to drive safely, unfortunately, so many films and videos have encouraged otherwise, including footage shot by teens themselves! Since teens are the most inexperienced driving demographic, they, unfortunately, can suffer a high number of fatalities. One example of a company that does everything they can to help teen drivers offset costs is State Farm, who usually offers up to 25% discounts for students with good grades.

Everyone here at the Alexander Agency of St Charles can understand that seeing your team behind the wheel can be a trying and unnerving time. We will assist you with the ideal quotes, perhaps calming you down a bit, and providing consistency and service for your younger ones that will soon be driving away from the comfort of the nest!

16Feb

Tips on Acquiring Affordable Car Insurance for 2023

Car insurance can be an expense that many Americans struggle with, but is legally required to be on the road. If you feel as though you can’t afford the top tiers of coverage and don’t know what to do, there are options out there for you that can be less expensive. It’s always a good idea to see if you qualify for available discounts, and find ways to potentially reduce your coverage limits. Take a look at some of the important factors that affect your rates, and see how you can help make your rates more affordable in the days to come!

Locating the Least Expensive Providers:

Insurance companies don’t always leave a lot of room for people to negotiate insurance rates, but it’s always wise to compare rates from several providers to secure the least expensive option. There are 3 ways we have found that are the most effective to compare rates.

Call independent insurance agents or companies
Check rates directly on company websites
Use a comparison website to investigate rates in your zip code

The Ever-Helpful Discount:

Many online car insurance quotes automatically apply discounts after obtaining your vital information. It is well worth your time to give the most accurate info possible, especially if it could lead to a decreased rate. There are many savvy ways to save money, including:

Bundling policies together
Including a student with good grades on your policy
Adding another vehicle to your policy
Maintain an acceptable driving record
Driving a vehicle with the latest safety features

Explore Defensive Driving Courses

Taking a defensive driving course can help give you a discount depending on your provider and your location. If you are a resident over 55, you can take an eligible course or class approved by your state’s DMV or Department of Public Safety. Some of them can even be completed at home online, and quickly get you up to speed on laws and defensive driving techniques that help with avoiding accidents and taking extra steps to protect yourself.

Cut Back a bit on Coverage:

The specific type of coverage you choose is a large factor in your insurance rates. If you opt for the minimum amount of coverage your state requires, it appears at first as your least expensive option. It still does not provide you with the best financial protection in case you encounter an accident, but there is a reasonable balance you can seek out. If you are in an accident, you will be thankful to have even minimal liability coverage to avoid extreme financial hardship as a penalty.

Improving Your Credit Score:

Credit history has long been a means of determining how much you will be charged for car insurance. Your credit data is compiled along with other attributes to create a credit-based insurance score. It is an indicator of how well you manage risk and your overall behavior. Once you improve your credit score, your rates will also be more feasible over time. Immediately after an event such as bankruptcy, you may notice a harsh increase.

Using the “Buddy System”:

If you can join someone else’s car insurance policy, it is another way to save on costs. If they have a clean driving record and are within an age range that isn’t deemed high-risk, they can find themselves suddenly in quite favorable graces. If an 18-year-old driver joins a policy of an acquaintance who is in their 30s with a clean record, their rates will improve. But, for the policyholder, their rates may rise since they are taking on the one who was the brunt of the new risk.

What Happens if You Don’t Pay Your Car Insurance?

You may, unfortunately, lose your coverage if you do not keep up with your car insurance bills. Most companies provide a grace period of around 10 to 20 days before they cancel your policy. This lapse in coverage does not look good on your record, and when other companies are looking at insuring you, it will weigh on whether or not you can successfully obtain a new policy. If your debt is sent to collections, it can show up on your credit report and affect your ability to get a new place of residence, or employment.

Auto insurance coverage can be expensive, but there are many options for you if the cost seems daunting. A policy to see you safely on the road is one of our specialties here at the Alexander Agency of St Charles, and we always take pleasure in knowing your life is easier, safer, and compliant. Whether you are a large family, a recent graduate, or anyone else embarking on a new phase of life, we can assist you with finding the coverage that will instill 100% confidence in every errand or long haul you plan!

11Jan

Options for High-Risk Drivers in 2023

As Americans are already coping with several various forms of rising prices across the board, the monthly expense of auto insurance is no exception. Many different factors can cause you to be classified as high-risk, which will unfortunately raise your monthly rates. Thankfully, we have coverage options to see you through tough times!

We put together a list of our best high-risk insurance companies for 2023. Each company has specific traits that appeal to different types of drivers, and allowing us to filter through them for you will assure that you find the perfect match!

Progressive always remains high on our list due to the discounts they offer for taking defensive driving courses, and their usage-based programs that result in lower rates. They also offer some of the best rates for drivers over 70 and are a time-tested and award-winning insurance company. AARP provides some of the most thorough defensive driving classes, and Progressive is an entity that is happy to provide incentives for completing them.

For drivers that have not had an accident in three years, Progressive has a track record of charging after 31% less than other types of coverage, freeing up more money for your other monthly expenses. Progressive’s Snapshot program keeps an eye on your driving habits through an installed device, and responsible driving will earn you discounts. If you have tickets, not the greatest credit, or DUIs on your record, Progressive will offer incentives for actions such as selecting a safer vehicle.

Travelers Insurance has an excellent focus and solid foundation that helps teen drivers, as they know full well the cost to insure someone under 25. Travelers proudly provide more student discounts than any other company out there and will offer sizable discounts for driving a car with outstanding safety ratings. Travelers offers great binding options for home or renter’s insurance with auto, and has very high-tech tools to help you track payments and keep multiple policy layers organized.

Directly on their website, Travelers proudly claims to insure those who are inexperienced and have a poor driving record. SR-22, gaps in insurance history, and driving sports cars are issues Travelers is known to handle well, with a sense of lenient demeanor and urgency. High-risk factors sometimes depend on how far back an insurance company looks in your record, and how much time accrued points stay on your license history. Even factors such as renting instead of owning a home affect your rates, and Travelers is known for a high level of understanding of the current economy.

Nationwide has long been the choice of many drivers in need of SR-22 and FR-44 forms. Even the most cautious of drivers can still end up with the occasional speeding ticket if they happen to be in a hurry, and Nationwide offers a range of discounts for those who have encountered this misfortune. If you have speeding tickets but do not have any accidents, Nationwide has taken it upon themselves to offer affordable rates in more instances than any other provider for those with tickets.

Nationwide is always worth a quick check to see if they meet your needs. Their Accident Forgiveness option can be purchased as an addition to your regular auto policy, and can constructively offset the price increase you see on your policy after an accident. Nailing down a “5 out of 5” for overall performance from Nerd Wallet, Nationwide was excellent regarding consumer experience, complaint data from the National Association of Insurance Commissioners, and financial strength ratings.

09Sep

How Soon After an Accident Should You File a Claim?

After the stress of a car crash, you may benefit from a form of compensation. This may come to you from the company that provides you coverage, or the one that is covering the driver “in the wrong.” One of the most important questions to ask yourself is how long after an accident you should wait to file a claim.

How Much Time is There to Feasibly File?

In most states, covering insurance companies can set the ground rules for the timeline. Many companies do not have it clearly outlined, but simply require “prompt filing” after the event. This is important, because if you delay for too long, the insurer may be able to deny the claim. Some states such as New York have no-fault rules in place that mandate compensation to be obtained for smaller-scale accidents no matter who was at fault.

In our state of Missouri, you have a generous period to work with, as a five-year statute is in place to file a compensation claim. Once too much time has passed, some evidence can be difficult to locate. Memories may be hard to stir, and details become difficult to dig up. If the statute of limitations has passed, your entire claim will be time-barred, and not allowed to proceed.

Benefits of Getting the Ball Rolling:

Even if you have determined that you have ample time to file your claim in detail, there are some important benefits to pursuing a claim immediately:

Evidence is easier to obtain
The memories of all parties will be fresh
Details that make a difference regarding the accident will be easier to uncover
Damages suffered by any party won’t be difficult to prove

Knowing With Whom to File Your Claim:

To make sure that your claim is filed within a reasonable time, it is necessary to know exactly who you pursue the claim against. This answer stems from where your geographical location is, and which party is ultimately responsible for the action in question. The insurance company providing you coverage is a necessary contact if the collision was your fault, especially if there are medical bills or vehicle damages that need compensation.

If the accident is another driver’s fault, it’s time to make a third-party claim against their provider. You can recover compensation for your car’s damage, medical attention, lost wages from your job, pain and suffering, and even intense levels of emotional distress. If the one who caused the accident was driving illegally without insurance, the claim can fall upon your own insurer under the uninsured motorist provisions of your coverage.

One of the most important things that we tell those seeking coverage here at Alexander Insurance is that Missouri IS a “fault state,” where the driver who caused the accident’s insurance company will pay for assistance and recovery for all involved parties.

What Steps Do I Take To File My Claim?

Make sure to ask us at Alexander Insurance how long you have to file to avoid delay.
Contact us and the at-fault driver’s insurance coverage immediately to assure that you know exactly where everyone stands.
Since Missouri is a fault state, we can pursue compensation from the driver’s insurance company as soon as you begin the process.
It is very important to make sure that you have a police report, witness statements and other evidence delivered to the insurer, and any other evidence from bystanders at the scene.
Make sure you talk to an insurance adjuster that spends their time determining how much damage was done. They will reach out to you to learn more about the incident and can inspect your vehicle along with the details of any medical assistance needed.
When the findings of the adjuster’s report return, you will receive a settlement offer which you and your family can determine is acceptable or not.

If you have just been in an accident, we understand that it is an uncertain, stressful, and time-consuming event that can leave you a bit frustrated and not knowing where to turn! Here at Alexander Insurance, we have helped many drivers by providing the auto insurance policy that sees them through the post-accident onslaught of responsibilities with ease!

25Mar

How a Clean Driving Record Helps you Save Money on Car Insurance

The All-Important Provisions of Your Record: States like Missouri use a point system to keep tabs on violations, and as the offense gets more serious, so do the number of points on your license. Inevitable suspension occurs if you have too many points on your license, and once the record sees points added, premiums can be more costly. If you can keep your driving record clean, it will help you with a substantial amount of savings on your insurance rate.

What Makes for a Clean Record? A clean driving record means that a driver has no violations or accidents on their record. Some insurance companies raise the premiums for drivers who are unlucky enough to commit one small infraction. Other insurance companies will consider a driving record to be completely clean even if a driver has just one or two minor moving violations over the past three years or more. If you are not paying your fines, filing multiple claims, and missing court appearances, your driving record will be affected. You can appeal to your local DMV to get a copy of your official motor vehicle summary from your current insurance company.

Is it Possible to Get a Questionable Driving Record Cleared? The best way to prevent yourself from accumulating enough points to yield a bad record is to obey traffic laws and drive responsibly. However, there are other ways you can get your clean driving record back! You can choose to appear in court to contest your citations if you feel you are in any way wrongly charged.

Even though this is a common practice, you should consider contesting even the most minor infraction to avoid paying more in premiums. Expungement is another method that can effectively clean your record by removing a traffic violation for good. You may have to meet specific criteria to qualify, which also can differ from state to state. Many drivers can take advantage of this process to help them with a completely fresh start when they need it most!

How Far Back Can Insurance Providers Go to Check Records? Moving violations and accidents are usually listed for around three to five years. Once something is on your driving record, it can be hard to ignore the consequences. Alexander Insurance Agency of St Charles is a provider of home, health, life, and auto insurance quotes that always keep the client in mind as our first priority while finding you coverage.

Our best advice for any driver looking to keep a clean record is to drive the speed limit! These are the tickets that slowly add points on your license. A clean driving record will always help save a substantial amount on your rates and clear the path for lower premiums.

21Mar

Protecting Your Pocketbook: Understanding How Your Car Insurance Costs are Calculated

There is nothing more frustrating to a driver than car insurance prices going up for seemingly no reason. There are many factors that can make the price of car insurance suddenly increase. Some are directly related to your driving habits, while others are a bit beyond the policyholder’s control. Here are some of the most common factors that can lead to an increase in insurance rates that you may not be expecting.

Claims history and your longstanding driving record
Your past history of convictions and other driving violations
Change in residential ZIP code
New drivers added to the policy
A sudden cancellation of home policy, or other policy causing the loss of the multi-policy discount.
Any removal of a vehicle from the policy, causing the loss of the very effective multi-car policy discount.
A change in employment that results in the loss of a group or any professional discount.
Any pre-existing or reoccurring serious medical condition
Errors that insurance companies make
Any changes to the payment plan fees or overall structure on the insurance plan.

Every month as you and your family are going through the finances, it can be a surprise when extra bills and/or additional costs come up. These are some of the factors that can raise premiums that are sometimes beyond your control:

Liability Claims Paid by the Insurance Company: If the previous year saw an increase in the amount that insurers are paying out after a claim, then adjustments can be made.
Collisions in Your Area: Accidents may be due to the change that the traffic flow is experiencing, trouble from weather, or an increase in traffic congestion over time. Insurance providers will adjust their rates based upon these factors, which are unfortunately a common occurrence as urban areas experience growth.
Increased car thefts in your area impact both new and older cars each time the yearly stolen vehicle statistics are released. Any successful entity providing insurance is going to want to take note of what models are alluring targets, and the addition of anti-theft devices or vehicle engraving can sometimes get a discount to help ease the increases in premium price.
The Growing Epidemic of the Uninsured: From 2010 to 2015, the number of uninsured drivers on the road increased from 12.3 percent to 13 percent. Insurance providers will pay billions of dollars each year on claims that fall upon the backs of the uninsured, and to offset these costs, insurance companies must make the decision to raise premiums for everyone holding policies.
Casualties of Credit Score Changes: Intense calculations are involved when trying to find optimal insurance rates, and most companies use your credit score as a factor when determining insurance rates. As tough as a pill it can be to swallow, lower credit scores can prove to be a greater risk for drivers.
Rate Increases Under the Guise of General Underwriting Principles: When insurance companies such as our experience losses that exceed our beginning expectations, rates will need to increase to remain profitable. This revolves heavily around the principles that govern insurance even beyond supply and demand: the policy buyer must understand that you are buying into an ability to protect you if anything goes wrong, and if it does so, all of us here at the Alexander Insurance Agency of St. Charles need to be waiting to back you up, settle claims, and be there for you during your time of need.

At Alexander Insurance, we make sure you are getting the best price and features with your policy. There are many creative and constructive ways to obtain better rates for you! Contact us now for a quote that provides you with the rate you deserve!

28Feb

Being in Control of Your Premiums Behind the Wheel in 2022: Ways to Save Money on Car Insurance

When it’s time to go over expenses, we know costs can go up substantially, and every penny counts more now than ever! Having appropriate coverage is intelligent and responsible, but can add drastically to the cost of your monthly car insurance. There are a number of different factors that can have an effect on your monthly bill, and it’s always a good idea to give your coverage a thorough review during renewal time to assure that your auto policy is providing you what you need at a price you can afford!

Experts like us at Alexander Insurance are always looking for ways to make your coverage more reasonable and effective. Here are some of the ways that you can save when it comes time to pay your car insurance premiums!

Consistently Comparison Shop:
Every company offers different rates, so it will always pay to shop around and compare. We think that it’s best to get at least three quotes from different companies: those that offer policies through their own agents, those that sell through independent agents, and those that sell directly to consumers online. It’s always a great idea to ask trusted friends and family for their recommendations based on their experiences, and extensively research the company before you commit.

One thing we pride ourselves on is being there for you when things go wrong, and following through when it’s time to make a claim. The least expensive option is not always the one that’s going to benefit you in the long run, and you are going to want someone reliable to be there for you in the event you need your insurance.

Analyzing Your Costs Before You Make the Car Purchase:
Many insurance premiums are based in part on the car’s price, how much it will cost to fix, its safety record, and the likelihood that it will be stolen. Many insurers offer discounts for high-tech additives that reduce the risk of your car being stolen, personal injuries, or for cars that have stellar safety ratings. When you are out there comparing new or used vehicles to purchase, it is also important to research what each model will cost to insure. The IIHS Highway Safety picks are a great resource for this information!

Think About Raising Your Deductible:
By making the choice to have a higher deductible on your car insurance, you can assure that your premium costs will be lower. As long as you can manage to stay safe on the road, this is a sure-fire means of lowering your expenses when the monthly bills arrive.

Reducing Optional Coverage on a Gently Used Model:
If your car is worth less than 10 times what you are paying for a premium, opting for collision and comprehensive coverage may not be worth it. To determine whether this is worth it for you, simply check the value of your car with excellent and trustworthy resources such as Kelley Blue Book, National Association of Auto Dealers, and TrueCar. When you are behind the wheel of an older model, it can be best to focus on coverage that hovers closer to the minimum.

The Benefits of Bundling Various Forms of Coverage:
Many insurance providers will be happy to give you a discount if you purchase two or more types of insurance, or choose to have more than one vehicle covered. Some companies are happy to offer hefty discounts to customers who have been using their services for a long time.

Keeping in Great Standing With Your Credit:
Keeping up with a great credit history will benefit you by providing much lower costs. Many insurers use in-depth information about your credit history to adjust prices on your policy, and drivers who are great at managing their credit don’t make as many claims. To be positive that you are getting the credit rating you deserve, it’s necessary to check your credit record frequently to assure that it is thoroughly accurate.

Leveraging Low Mileage Discounting:
If you don’t drive as far as some others do, your rates could be reduced. Valuable low mileage discounts can also apply to drivers who make the Earth-friendly choice to carpool to work.

Getting By With a Little Help From Group Rates:
Many companies like us will offer reductions to drivers who obtain insurance through a group plan from their employers, through business charters or other various associations. It’s always a good idea to check with your affiliated organizations to see your available offerings.

Auto insurance is absolutely one of the most crucial needs for everyday life, and all of us here at Alexander Insurance are professionals when it comes to securing the best policy for you at an affordable price. You can drive away knowing that your family is fully protected, and your monthly budget is still intact!

17Jan

A “Can-Do” Approach for Stellar Results Behind the Wheel: A Guide to Navigating Car Insurance Premiums

Car insurance is necessary as you are covered against extreme financial losses due to theft or accidental damage of your vehicle. Many various types of detrimental loss can happen due to a third party, and our goal here at the Alexander Insurance Agency of St Charles is to consistently assure that you are covered by the best and most useful policy for you. At Alexander Insurance, we want you to be prepared and knowledgeable when it comes to all things related to your vehicle. We provided you with a list of some of the basic points of interest regarding car insurance.

How Exactly do Car Insurance Premiums Work?

The premium is the amount that you pay to your provider for going the distance and offering you coverage. Factors that affect this are the make and model of car, geographical location, how extensive your coverage will be, your deductible, and your past driving record. Any vehicle being operated needs valid comprehensive or third-party insurance, which became compulsory nationwide under the 1988 Motor Vehicles Act. Most policies are valid for either six months or one year. You can benefit from a discount by paying the annual premium or paying monthly to assure the policy stays active and you are legally able to hit the road.

How is your Premium Amount Calculated?

When you are buying a new car and excitedly preparing to hit the road, car insurance is essential to see you abiding by state laws and protecting yourself while you are behind the wheel. The amount of the premium is the major focus while purchasing the policy, and there are several factors at play that determine its amount. How much the vehicle is officially worth, its age, and the engine’s cubic capacity are some of the major factors that affect the premium’s cost. Where you are driving, how much you are covered for in case of an accident, and other legal and liability coverages.

The Vehicle’s Insured Declared Value:

This refers to the highest amount of a claim that we as your potential provider will pay out if the damage to the car is considered officially as a total loss, or the cost of the repair is greater than 75% of the IDV. The moment you proudly roll off the lot with a new car and purchase insurance, the insurer decides the IDV while factoring in important depreciation elements. Every year you own your vehicle, it depreciates. Additional accessories such as luxury stereos will be added to the Insured Declared Value separately and the price will then be adjusted for depreciation.

Is the Car Going Experiencing its Graceful Aging Period?

As your vehicle gains more years, it starts depreciating naturally. Every time a newer model Is launched, it further reduces your car’s value. Insurers have a set schedule that is applied to vehicles and their overall market value depending on their age. It is also very important to understand car insurers and the way they work in your state. In certain states, you may be required to have a car insurance policy that includes Personal Injury Protection, medical payments coverage, or uninsured motorist coverage, as you need your state’s specifics in mind to make your decision.

The All-Important Full Coverage Comparison

If you opt for just liability coverage, it does not pay for your car or injuries sustained during a traumatic crash. Many of our customers here will opt for “full coverage”, adding in the very attractive benefits of collision and comprehensive coverages. Comprehensive coverage can kick in and help with the value of your car if it’s stolen and not recovered. It can also help with protection from floods, fire, falling objects, explosions, and vandalism.

We have been helping the residents of St Charles and many surrounding communities locate the best coverage for years. Relaying messages of positivity from satisfied customers is always the best part of our day. Every time you head out for anything from a quick errand to an all-out weekend trip, you’ll know that your best interests and vehicles are consistently covered through us here at the Alexander Insurance Agency!

03Jan

How Car Insurance Rates are Affected by Your Credit Score

When you are shopping for affordable auto insurance, you’ll probably notice how many factors affect your rates. Accidents on record, the make and model you drive, and many other things are considered when preparing a car insurance policy. Forbes studied car insurance rates in relation to credit scores, and they found that those with poor credit usually see an increase of around 76% on their rates.

How Exactly Are Your Insurance Rates Affected by Poor Credit?

Auto insurance providers frequently cite research that finds credit-based insurance scores are a good way to determine if a driver will need to file claims. The Federal Trade Commission Report has conducted frequent studies that have seemed to verify the fact that a driver’s credit score is correlated with their risk, as delinquent behavior regarding financial matters finds its way into other areas of life.

How Long Do the Effects of Bad Credit Weigh on my Premium?

Traffic tickets are unique in that they can drop off your driving record and not influence your rates after three to five years, but a bad credit score or bankruptcy can have a more lasting impact on your rates. The best way to keep your credit from affecting your auto insurance premiums is to find ways to raise your credit score. When you see your score go up, see if you can get lower rates.

Things like bankruptcy can affect your credit score and therefore your rate, but there is still good news! After you complete your filing, your credit score will sometimes jump back up after only 4 months instead of the dreaded five years some people suffer through. Every situation is different, and not all results will be the same.

Is Poor Credit as Bad as Accidents or DUIs on Your Record?

Some providers are intent on increasing your rates due to poor credit more than things like speeding tickets. When you get a speeding ticket, your rates usually rise by about 21%, but having bad credit can rise them about 76% annually. If you have an accident where you are the driver at fault, the average rate increase is around 41%. A DUI is a very serious offense, and it comes with a hefty hike of around 74%.

Here are some of the ways you can try to obtain decent rates even with credit that has been affected:

Don’t be shy to Ask for Help:

When it comes to your financial livelihood, you can feel good about asking for discounts. You can choose not to have your bills mailed to you or bundle your auto insurance with other options to shave a few extra bucks off your premium cost.

Prove You Are Safe on the Road:

There is no reason to be leery about having your behavior monitored when you are doing an awesome job behind the wheel! Safe driving monitors can yield you rewards in the long run, and you can enjoy discounts of up to 40% with many providers. Technology has allowed for many ways to check up on drivers to assure that you are following the rules, keeping your speed down, and even how often you drive.

Be Sure You Are Comparison Shopping:

It is easy to go with the first provider you find, as your search will be over, and you won’t have to do time-consuming comparisons. However, it is best to look around once a year to ensure you are getting the best rate. Some providers may greatly value your credit history, and some may tend to be more lenient while looking at other aspects that allow them to properly cover you.

At Alexander Insurance, we will always keep you our number one priority and provide world-class coverage during uncertain times. We will always be here when you need us, and we consistently make progress and offer more coverage options with your bottom line and longevity in mind!

10Sep

Strategies for Saving on Car Insurance Costs

As soon as you turn the ignition and pull into gear, you need car insurance! You may choose to have the minimum to legally drive or full coverage to handle a wreck or theft. No matter which option you choose, we can assist you and find you the policy that best meets your needs. Here are a few strategies we have found that will help lower your cost and leave you with a little extra cash!

The Perks Of Multi-Car Discount: Once you have obtained a quote to insure your car, many companies have it in their best interest to give you a higher quote per vehicle than with a bulk rate covering multiple drivers. The multi-car discount works best if the cars are at the same residence and if you wish to obtain other forms of coverage such as homeowners’ insurance.

The Positive Effects of Keeping Your Eyes Peeled: So many drivers are distracted on the road, and being mindful can save you from multiple accidents or violations. From small infractions to major violations, the many ways in which drivers don’t comply always trickle down to the rates they pay. If you have been able to keep the points off your license, there is already a favorable beacon of light shining down on you when it comes to premiums.

Consider a Defensive Driving Course: Insurance companies will provide a substantial discount for those who complete a defensive driving course, and you can even get some of those pesky points reduced as well! When a driver takes classes to learn to drive defensively, insurance agencies are likely to recognize that they are less of a risk and charge them less.

Gazing at Where the Grass May be Greener: If your policy is nearing renewal and your premium has recently gone up, it will do best for you to shop around and get quotes from other companies that would be happy to have you as a new customer! It is also best to keep in mind that going with the cheapest company may not always be in your best interest, as a creditworthy and reputable name in the business will always settle a claim promptly.

The Growing Movement Towards Embracing Mass Transit: One of the most important questions insurance agencies ask when assessing risk is the number of miles you drive annually. The more time you spend in your vehicle getting to work every day, the higher your premium will be. With so many cities now expanding their mass transit options and routes, you can use them to your advantage to decrease the number of miles you drive before asking for a discount. Taking advantage of a city’s resourcefulness will save you some money!

Consider a Smaller Ride: The biggest SUV on the block may sound like an exciting buy, but sometimes the cost to insure a large vehicle is NOT worth the price! Many insurers will offer a discount for buying a hybrid and doing your part to protect the well-being of the planet.

Leave the tough questions up to us here at Alexander Insurance before making a purchase. We can provide solutions for you that leave both you and your checking account in the healthiest of shape.

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