More car insurance facts!

Car Insurance is Important!

Even with the economic recession coming into play, it is still important to have a car insurance policy.  It pays to have that safety net in case of any accidents or other expenses that might cost you more in the long run had you opted to pay for them yourself.  Although you have that option, having an insurance plan helps you guard against emergency spending.   Not getting a car insurance policy also labels you as a high risk driver, which translates into higher car insurance premiums.

Cell Phone Safety

Many countries around the globe have banned the use of cellular phones while a vehicle is in motion and for one very good reason:  the amount of accidents related to cell phone use has grown considerably!  Car insurance has also followed suit for being a violation of the law, coverage can actually be denied if an accident is found to be related to cellular use.

Cell phone use has increased the accident rate approximately 50%, and is blamed for many deaths.  It has been likened to drunk driving due to the amount of distraction the driver experiences.  The best bet?  Either drive to a stop if you have to answer the phone, or just let voice mail get it.  If the caller doesn’t leave you a message, then the call wasn’t worth your life.

Higher Gas = Lower Insurance Premiums?

With gas prices going up again, the price of insurance premiums are coming down a little.  Why? People are driving less to save gas, therefore they are on the roads less and having fewer accidents.  Fewer accidents means less money paid out for claims and, ultimately less money charged in premiums. 

Insurance Scams

There are a lot of insurance scams we should be aware of to avoid being a victim.  Rear end accidents are one of the most common stages seen.  This usually occurs when someone is seen dodging in and out of traffic.  Because most rear-end cases are found to be the second car’s fault, your insurance will take the hit and pay for fake exams and treatments.  Exaggeration scam is another one to be aware of.  Sometimes, intentional damage is already visible on their car, then by the time they hit you, it is impossible to prove what damage happened when.   Also, be very careful with the good Samaritan waving you through traffic.  Sometimes they might intentionally put you in harm’s way, then claim they never waved you in.

More Fees!?!?

There is a heated debate in Georgia, as the Georgia Insurance Commissioner said he is considering the addition of fees on car and other forms of insurance to support trauma care services.  This is because the state is in desperate need of more funding for trauma care services.  The commissioner says it makes sense because most trauma cases are a result of car crashes and work accidents.  However, since such fees are usually passed on to the consumer, this would cause a double whammy for those citizens who pay their taxes and buy insurance.  Let’s just hope this doesn’t fly in Georgia and they get wild ideas here in Oklahoma!

The Real Deal with Sports Car Insurance

It is a fact that sports car insurance is more expensive than other auto insurance.  Sports car insurance is determined by your car’s speed and resultant mobility on the road.  So how do you reduce your premium?

*Don’t drive it very much.  Low mileage = lower premiums.

*Don’t customize.  Tweaking the stock features can increase the premium.

*Don’t go beyond the speed limit.  Speeding tickets also increase the premium.

Sounds like this defeats the purpose of owning a sports car, doesn’t it?  The bottom line is, if you just have to have that new Camaro, just be prepared to pay a little extra in premiums.

Switching insurers?  Don’t forget to cancel your policy!

When switching car insurance companies, it is important to cancel the old policy.  Don’t just ignore the bills, because unless you make the request to cancel, the company still considers you a customer.  Unpaid premiums can be sent to collections and can hurt your credit score.  Plus it makes you look high risk to other companies for not paying your premiums.

Have questions?  Give your friendly independent agent a call!