Car insurance is a necessary expenditure, but how much you pay for it can vary considerably. Auto insurers are making big changes in the way they price policies, and that can mean big savings for you.
Pinpointing risk
Because they now have the computing power to pinpoint risk and match it to specific prices, insurers no longer have to cram a variety of people into a wide pricing tier. Allstate, for example, has gone from using seven pricing tiers to 384. As a result, drivers with the best records saw their rates drop as much as 25%.
Even people with poor driving records are likely to benefit, however. In the past, those drivers were relegated to high-risk insurers that charged hefty premiums. That's because mainstream companies didn't have a system for pricing high-risk policies for drivers with multiple accidents or major violations. Now, mainstream companies are offering to cover riskier drivers, often at lower rates than those of high-risk insurers.
Even people with poor driving records are likely to benefit, however. In the past, those drivers were relegated to high-risk insurers that charged hefty premiums. That's because mainstream companies didn't have a system for pricing high-risk policies for drivers with multiple accidents or major violations. Now, mainstream companies are offering to cover riskier drivers, often at lower rates than those of high-risk insurers.
Special perks
Working with an agent to find the best price should also help. Nick Scarafile, an agent in Utica, N.Y., uses a rating service that immediately checks a client's credit, insurance claims and driving record to get price quotes from several companies. (You can find an agent in your area through the Independent Insurance Agents & Brokers of America or by contacting agents who sell for a single company, such as Allstate or State Farm.)
Enhanced versions of Your Choice Auto, including Gold and Platinum plans, cost up to 15% more than Allstate's standard coverage. Both the Gold and Platinum plans provide accident forgiveness; the Platinum level gives safe drivers a credit of up to 5% on their renewals in addition to any other safe-driving discounts they receive.
Enhanced versions of Your Choice Auto, including Gold and Platinum plans, cost up to 15% more than Allstate's standard coverage. Both the Gold and Platinum plans provide accident forgiveness; the Platinum level gives safe drivers a credit of up to 5% on their renewals in addition to any other safe-driving discounts they receive.
Know the score
Your credit profile has a greater impact on your auto-insurance premiums than ever before. Until now, however, it hasn't been easy for consumers to determine their insurance score, which is different from the credit score that lenders use.
Insurers and credit bureaus won't give away their recipe for the secret sauce, but you can get a version of your insurance score from TrueCredit, available through the credit bureau TransUnion for $9.95. The site provides separate scores for auto and homeowners coverage, plus advice for improving your insurance ratings.
Source : Click here
Insurers and credit bureaus won't give away their recipe for the secret sauce, but you can get a version of your insurance score from TrueCredit, available through the credit bureau TransUnion for $9.95. The site provides separate scores for auto and homeowners coverage, plus advice for improving your insurance ratings.
Source : Click here
This entry was posted
on Wednesday, September 2, 2009
and is filed under
Car Insurance
.
