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Why Do My Car Insurance Rates Keep Going Up?

Written by Michele Wilmonen. Posted in Ask An Insurance Question Last Updated: 08/05/2017

Q: I don’t have any accidents or tickets, but my car insurance rates keep going up. Why? It doesn’t make any sense.

A: What most people don’t understand is that insurance is literally a group effort and there are a lot of factors that play a part of your insurance rate that really have nothing to do with you.

Insurance explained in its simplest form is that a group of people pay insurance premiums into an account and when one of those people have a claim money is paid from that account to pay the claim. There has to be enough money in the account to be able to pay the amount of the claim or the whole system will not work. So to determine how much each person should pay the insurance company has to take into account how much vehicles cost to replace and fix today, how much medical bills are, how much rental cars cost, how much towing a car costs, and how much wages are to pay for the employees that service your claims and policies.

If any of those things increase, then everyone’s car insurance rates have to go up to compensate.

Another factor out of your control when it comes to your car insurance rates is the risk factor. For example, recently car insurance companies increased rates because the price of gas went down. Because gas prices dropped people started driving more, the more time people spend driving on the road the higher the chance they will be in a car accident.

If you feel you are being charged too much for your insurance after a car insurance rate increase, it may be time to do a policy review or to start shopping other insurance companies.

Does My Car Insurance Cover my Pizza Delivery Job?

Written by Michele Wilmonen. Posted in Ask An Insurance Question Last Updated: 08/06/2017

Q: I do pizza delivery with my vehicle, will my car insurance cover me if I am in a car accident?

A: No vehicle used in the course of business is covered under a personal car insurance policy unless there is a clause in your policy that specifically allows it.  Most likely there will not be. Delivering pizzas increases your time on the road and increases the chances that you will be in an accident, making you an undesirable risk to car insurance companies.  In order for your vehicle to be covered, you will need to have a commercial car insurance policy or the company you are delivering pizzas for will need to provide car insurance coverage on your vehicle for when you are on the clock with them.

If you get into an accident and your car insurance company finds out that you have been delivering pizza and you do not have any other coverage, they will cancel your policy. Not just a warning, you will be cancelled or non-renewed without conversation or exception. If you quit your job and stop delivering pizza before the cancellation, that would be the only thing that may stop a cancellation. Be prepared to provide proof that you quit your pizza delivery job though or the car insurance company may still go through with the cancellation or the non-renewal.

The DMV and Your Car Insurance Proof

Written by Michele Wilmonen. Posted in Ask An Insurance Question Last Updated: 08/06/2017

Q: After I switched to another insurance company, they told the DMV I had an uninsured vehicle months ago. Nothing I could show them could convince DMV and the Driver License Office that I had had insurance until my vehicle title was changed over because the insurance company lied. It cost me $150.

A: First, insurance companies are not out to get you and don’t purposely lie to the government.

If you can produce proof of coverage there should be a refund of the fee you paid, but I am not sure exactly the story behind why they would not accept your proof of coverage. When I have worked with my insurance clients and the DMV for proof of coverage I have rarely had an issue with them accepting a faxed copy of the client’s declarations page from me.

Now if the title was not in your name with the DMV, then yes, they would have trouble matching up your proof of coverage to the vehicle as the information does not match. But if your title was changed over and you had proof of coverage from the time the title was in your name, you are owed a refund.

I would escalate this to higher up in the DMV if you did indeed have coverage that you are not getting credit for. On the other side, if your car insurance company is not providing proof for the correct days talk to a supervisor there.

Car Insurance for Another Driver’s Work Use Vehicle

Written by Michele Wilmonen. Posted in Ask An Insurance Question Last Updated: 08/06/2017

Q: My boyfriend injured his leg and can’t drive his work truck (it’s a manual) because the constant shifting hurts. Can I put him on my insurance for 2 weeks -1 month max (muy car is automatic and has cruise control) so he can use it while he is on the mend? I just bought the car brand new off the lot and it is obviously fully covered.

A: You can actually put anyone you want on your car insurance policy if they are driving your vehicle on a regular basis, regardless of if they are living in your household with you or not. The only exceptions to this are drivers that your insurance company deems too dangerous to drive because of a bad driving record. These are the drivers that the companies see as just too high of a risk to want to insure.

Now, the other issue in this is how your boyfriend is planning on using the vehicle. You say that it is to replace his work truck, so will he be using the vehicle for work? If the vehicle is used for business it is usually not going to be covered under a personal car insurance policy, but it depends on the business usage. This is something you need to talk to your car insurance agent or car insurance company about to make sure you have adequate coverage on your vehicle while he is driving it and that his usage activity is not something that is excluded from your policy. If it is excluded from your car insurance policy and he is in an accident, the insurance company has the right to deny paying for the claim.

Happy 4th of July from Car Insurance Guidebook

Written by Michele Wilmonen. Posted in Research Last Updated: 08/06/2017

Keep your eyes on the road to keep your car insurance down this Fourth of July.

Fourth of July is a fun summer holiday that most of us look forward to each year. However, for all of its fun, it is also a holiday that is full of distractions that make driving on the road dangerous. Here are some tips on how to keep safe and not become just another statistic on the road this holiday.

Keep Your Car Insurance Down by Keeping Your Eyes Down

We all know that fireworks are the icing on the cake for the 4th of July holiday. It is something we usually only get to see once a year and something that grabs our attention both in the visual and audio sense. This also means that it grabs our attention away from concentrating on driving when we do hear or see one. Now, being distracted by a single firework is not usually enough to cause a car accident; a steady stream of fireworks in the air is.

If you are driving and spot a fireworks show you want to watch, do yourself and everyone else on the road a favor and pull over. That way you will stay safe and you will get to enjoy watching the show without a pesky thing like concentrating on the road interrupting you.

Another distraction on 4th of July is children running out in the road. They also are distracted by the fireworks, as well as playing with friends and even running around with sparklers. Because they aren’t paying attention, you have to be especially vigilant for them while you are driving.

Don’t Spike Your Car Insurance Rate with a Spiked Drink

Drinking on the 4th of July is as popular as fireworks are with some people. If you choose to include this in your 4th of July celebrations please don’t include driving as part of that. Stay at home, stay with a friend, or stay with having a designated driver. With the invention of Uber and Lyft, there is no reason at all for you to be getting in your vehicle after you have been drinking.

Also, there are enough distractions on the road this night without adding a drunk driver to the list of things that other drivers have to look out for. So do everyone a favor and keep your car insurance rates down by keeping off the road that night.

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Car Insurance Guidebook Unravels the Car Insurance Mystery

Unless you work in the car insurance industry, the topic is probably a mystery to you. The words deductible, comprehensive, collision, liability, premium, loss of use and bodily injury are all gibberish when they reach your ears.

Unfortunately, insurance is something that you are required to have by law if you want to drive. Because of how confusing it is many people go around in almost an insurance daze while they get car insurance quotes from the auto insurance companies that they have heard of. In reality, they are completely lost as to what they are actually buying.

Instead of looking at what each insurance company offers in the terms of protection for both themselves and their car, they are instead looking for cheap car insurance. Finding the cheapest car insurance coverage makes having to buy the required product all that much less painful, but misses the whole point of having insurance.

Learning about insurance through your insurance agent or websites like Car Insurance Guidebook will give you the upper hand when you looking for car insurance. You can take your knowledge and not only find the best price for insurance, you can use it to find really great insurance to protect you and your assets. Then you aren’t stuck settling for just average car insurance that can hurt you financially if you ever need it because there isn’t enough protection.

For example, when looking for insurance the car insurance rates are just the first of many factors that need to be taken into account when you are shopping around for car insurance. You also need to take into account the type of vehicle that you are driving. Many people don’t know this.

Are you driving around a vehicle that is a new sedan and can be protected under any blanket insurance policy? Or do you have an old car that you fixed up that needs special protection and could be better covered under classic car insurance?

Don’t just assume that when you compare car insurance that it will be a one-size-fits-all policy. This is where the insurance knowledge will come in handy; you will know what you need to protect yourself and your vehicle.

You will understand what your insurance agent is talking about when they use insurance terms and you will actually be able to make an informed decision. This is much better for you instead of the “nod and smile” approach people take in their insurance agent’s office.

Also just like your life changes your insurance needs will change. This year you may just need to learn about the best deductible to have. Next year you may need to educate yourself on car insurance for young drivers. As the years pass, motorcycle insurance may be something you will need to know.

Many wise people say that you never stop learning, so take their advice and educate yourself on the insurance that you spend a lot of money on and can’t get away with not having.