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You may have heard that raising the deductible on your auto insurance can save you money on your premiums. But what does that really mean? Just what is a deductible and why does it affect the cost of your auto insurance?
The antidote for the midlife crisis often comes in the form of a spiffy new sports car. In fact, the average age of a Porsche 911 buyer in the United States is 52 years, according to the International Councils of Societies for Industrial Design. But although that new set of wheels might make you feel young again, the insurance costs that come with swapping the family minivan for a little red Corvette or Porsche may not be worth it.
At some point, you might end up with a vehicle that just sits in your driveway or garage. Maybe it’s a sports car that you drive once a year. Or a clunker you’ve been meaning to fix up. Or a car your child left behind when she went to college. Do you have to get auto insurance for a car that’s never on the road? The answer is “yes.” But there are some ways to minimize how much it’ll cost you.
For more than 10 years, California’s Low Cost Auto Insurance Program (CLCA) has been providing auto insurance coverage for those who otherwise wouldn’t be able to afford it. In October 2011, Gov. Jerry Brown signed a new law that should make it much easier for low-income drivers to get this special coverage — by making it available online.
When you get into a friend’s car, chances are you don’t ask to see a copy of his auto insurance policy. But what if that friend were to get in an accident? Would your injuries be covered? Here’s a look at what options passengers have — and what kinds of coverage your driver would need to have to protect you.
It may seem silly that making late payments on your favorite department store credit card could affect how much you pay for auto insurance — but it might. Insurance companies use your credit history to calculate an insurance score, which helps shape your insurance premium. Why? Simply put, your credit score gives insurance companies an understanding of how responsible you are about debt. And their research has shown that financial responsibility translates into responsibility behind the wheel.
Knowing you have auto insurance can give you peace of mind. But when was the last time you actually looked at the policy you keep tucked away in your car’s glove compartment? And are you sure you’re covered for everything that could go wrong on the road? Here are some types of coverage your policy might include — and some you might want to consider.
Business auto insurance needs to cover more than personal auto insurance does. While a personal policy covers you and your car, business auto coverage has to cover vehicles that are owned by the business, along with other scenarios like employees using their own cars for business and someone driving a company car home.
You have a clean driving record. But what if your spouse doesn’t? Or what if your young adult child (who still lives at home) has a proven tendency to get in accidents? Your good auto insurance karma would be canceled out by the less-than-stellar driving records of those who have access to your car.
In such cases, some drivers turn to what’s called a “named driver exclusion.”
Vehicle fires might be on the decline, according to new data from the National Fire Protection Association (NFPA). Firefighters responded to 215,000 vehicle fires in 2010, a 1.6 percent decrease from the previous year.
Yet vehicle fires are still frightening, dangerous and costly. They killed 285 civilians in 2010, caused $1.3 billion in direct property damage between 2003 and 2007, according to NFPA. Preventing yourself from getting burned involves a combination of vehicle maintenance and the right auto insurance protection.
