Tuesday, November 2, 2010

More on Car Insurance


Car insurance is legally required for each driver in all states in the USA except for New Hampshire.  The amount of your car insurance premium is determined by how much of a risk you pose.  As with all types of insurance, the higher the risk you pose, the more likely you are to need to use the insurance.

Different car insurance vendors specialize in catering to different groups of risk.  A car insurance company that insures all levels of risk will likely have higher grouped rates because there are higher risk inviduals who are included in the group.  The benefit to these groups is that if you get in a couple of accidents, or if you get a few tickets, you can still keep the same car insurance despite any problems.

Some car insurance companies only focus on insuring those with 1 or less accidents or moving violations.  The risk in this group is lower, so the car insurance premiums are lower for the entire group as well.  The car insurance company benefits because this low risk group has less of a likelihood of needing to use the insurance.  The driver/consumer benefits because of lower car insurance payments.  The con to this type of group  is that if you exceed the 1 accident or moving violations, you will be dropped from coverage or won't be allowed to renew until these fall off of your driving record.

The rule of thumb is that the lower the risk, the lower your car insurance premiums.

74 comments:

  1. yup, car insurance is important. but expensive.

    ReplyDelete
  2. I've only been in one "accident" where I dinged a pole and past 21, but my insurance is still ridiculous :(.

    ReplyDelete
  3. You have to be careful with the type of car as well. Some 4 door family sedans are considered sports cars, which have higher premiums.

    ReplyDelete
  4. LOL good thing I have a red convertible as a teenager. SO MANY RISK.

    ReplyDelete
  5. Interesting entry, had no info abour car insurance before. Thanks!

    ReplyDelete
  6. Man it's bullshit that I have to pay so much for insurance because I'm a young white mail.

    ReplyDelete
  7. My insurance is temporarily canceled :/

    ReplyDelete
  8. thanks for the update, very educational :D

    ReplyDelete
  9. car insurance is great thing!

    ReplyDelete
  10. i need to look for cheaper insurance soon

    ReplyDelete
  11. thanks for this useful tips:)

    ReplyDelete
  12. hmmmm... maybe i should get one for my car too.

    ReplyDelete
  13. good thing im a safe driver

    ReplyDelete
  14. Insurance is ridiculous being young :(

    ReplyDelete
  15. We only have one choice for auto insurance in BC, kinda sucks in a way.

    ReplyDelete
  16. Unfortunately, I don't believe there is such a thing as "low cost" car insurance these days.

    ReplyDelete
  17. Darnit that was a good post, but I kept looking at the pic. That girl looks like a very likable person.

    ReplyDelete
  18. Wow, I didn't know it wasn't required in New Hampshire.

    ReplyDelete
  19. The amount of money you fork over on car insurance also depends on where you live. :)

    ReplyDelete
  20. She looks hot. Oh yeah, nice article yada yada

    ReplyDelete
  21. ugh car insurance...UUUUGH

    ReplyDelete
  22. yea i think i need to switch policy

    ReplyDelete
  23. My rates finally went down after some speeding tickets 3 years ago, so happy!

    ReplyDelete
  24. interesting as always:)

    ReplyDelete
  25. All this talking about cars really makes me want a car again :P

    ReplyDelete
  26. i guess it's all about risk

    ReplyDelete
  27. I heard the more healthier you are, the less risk you have of having a car accident.

    ReplyDelete
  28. I hate car insurance, costs so much cause of age, but it's so important.

    ReplyDelete
  29. first year i had my license = 3 accidents. none had to be reported though!

    ReplyDelete
  30. I always get that feeling of dread in my stomach when i know my current car insurance policy is up for renewal.

    ReplyDelete
  31. I haven't a car yet but nice info

    ReplyDelete
  32. toot toot daily love ;]

    ReplyDelete
  33. Great post! very informative!

    ReplyDelete
  34. interesting post, thanks a lot

    ReplyDelete
  35. a bunch of thieves is what they are

    ReplyDelete
  36. awesome info as always.

    ReplyDelete
  37. as said before (dunno if it was in here) i don't have a car, therefore i don't need the insurance (yet)

    ReplyDelete
  38. Is That girl insuranced?

    ReplyDelete
  39. car insurance is so expensive these days!

    ReplyDelete
  40. Drive slower and you should be able to avoid more accidents, thus keeping payments low :"D

    ReplyDelete
  41. im thinking bout getting car insurance

    ReplyDelete
  42. Very educational, thanks for the invite. Cheers mate.

    ReplyDelete
  43. its stupid how old people have lower insurance then I do >.<
    and I think I can drive 10 times better >.<

    ReplyDelete
  44. i need a car as i can make a insurance

    ReplyDelete
  45. I would hate to go driving in New Hampshire.

    ReplyDelete
  46. interesting post.

    also, look if you can change the date color, it's nearly the same as the background

    ReplyDelete
  47. never actually knew this. thanks

    ReplyDelete
  48. Completely agree.. Insurance Companies totally screw you!

    ReplyDelete
  49. My yearly costs 3k because I'm male and u25, even though I've never crashed and I drive a safe/slow tranist van

    ReplyDelete
  50. One can never have too much car insurance.

    ReplyDelete