Why is it more expensive to insure certain sport utility vehicles?
Insurance premiums depend on several factors, including your age, sex, place of residence, and driving record; the amount and type of coverage you select; and whether you drive your vehicle primarily for business or personal purposes. This explains why one driver might pay a different premium than another for the same make of vehicle.
But why might it cost more to insure one sport utility vehicle (SUV) than another? In addition to the factors listed above, insurance companies consider the likelihood that a particular brand of vehicle will be stolen, vandalized, or involved in an accident. They also track the cost of repairs. They gather their information from claim statistics. The Highway Loss Data Institute, for example, indexes the amount of money insurance companies have paid out (on average) for collision, injury, and theft claims for various types of motor vehicles. Therefore, the SUV that is most attractive to thieves across the country will probably be more expensive to insure than the one that is stolen least often.
Insurance companies also consider their own past claim payouts. For instance, if one company has paid numerous claims regarding a particular make of SUV, it may charge higher insurance rates for that type of SUV than another company would. This is why we shop for your insurance through 40 different companies – to find the right policy for you.
- Published in Auto Insurance Premiums, Automobile Insurance, Insurance Doctor
My teenager just got his license. How can I insure him without spending a fortune?
As you have probably discovered, insuring a teenage driver can be very expensive. Drivers under the age of 25 pose the greatest risk to insurers. Insurance companies try to limit their exposure by charging higher insurance rates for 16- to 24-year-olds than for any other age group.
The least expensive option would probably be to add your teenager to your existing auto insurance policy once he gets his learner’s permit. Although this can still be an expensive prospect, your teen might be able to take advantage of certain discounts as a driver on your policy (e.g., safe-driver and multiple-car discounts for which you are eligible).
We can help you determine your most cost-effective option. If you’re thinking about purchasing a used car for your teen, be prepared to tell us the make, model, VIN#, and year of the cars you’re considering. This way, we can give you accurate insurance quotes and help you decide whether to purchase separate insurance for your son or add him to your policy. Sometimes these quotes can even help you decide which car to purchase.
- Published in Auto Insurance Premiums, Automobile Insurance, Insurance Doctor, Road Safety, Uncategorized
Buying a Car? Let us help you find the best insurance rate!
Many insurance companies issue automobile insurance, but finding the BEST policy for you can be challenging and time consuming. This is why people come to The Insurance Doctor – because we do the shopping for you through 40 different companies.
Remember that your profile will be a good fit for one of our companies. Our shopping helps you find the policy that’s right for you.
We compare premiums offered by 40 different companies and look for high customer service standards. The ability to pay a claim promptly will be important if you’re ever involved in an accident. And of course, we offer 24 hour claims service.
Finally, we understand insurance discounts and how you may be able to take advantage of them. You may benefit from multi-car and/or multi-driver discounts. You may receive a multiple policy discount if you purchase your auto insurance coverage through the same insurer that covers your motorcycle or boat insurance. An insurer may also offer you a discount if you have a safe driving record or have completed a driver’s education course.
Give us the chance to compare 40 companies and rates to ensure that you make the decision that’s right for you.
So my driving record is not that great! How does this impact my insurance rates?
In most states, the department of motor vehicles has a “point” system, which is used to track and measure your driving record. Generally, each type of infraction (moving violations, parking tickets, at-fault accidents, driving under the influence, etc.) is assigned a certain point value. When you are found guilty of one of these infractions, the appropriate number of points is added to your driving record. The more points you have, the worse your record.
Typically, an auto insurance company has the right to review the driving record of anyone who applies for an auto insurance policy from that company.
There are two purposes for this initial review:
To determine whether you meet the insurer’s standards of insurability
To evaluate your risk potential (i.e., how much your insurance will cost).
Each insurance company has its own method of evaluating applicants. So the points on your driving record may have a direct impact on the rates you pay for auto insurance. This is one of the reasons why we shop among 40 different insurance companies and programs to find the best policy for you.
There are certain times when you can be relatively sure your insurance company will be checking your record. These include:
When you initially apply for coverage
When your policy comes up for renewal
If a review of your driving record uncovers negative information, your insurance rates may increase. Insurers typically have their own “point” system to calculate the increase (if any). Then we go to work for you to find you the lowest rate even with this negative information.