auto insurance premium

If you are thinking about buying a new car, you might wonder if you have to worry about your car insurance rates. That new car might be very tempting and very shiny, but how much is it going to cost to insure? You’re already going to be paying a lot of money for the vehicle, after all, and you’re a bit apprehensive about what those insurance rates are going to look like. Does a new car cost more to insure? Well, insurance rates are complicated, but here are a few things that you can keep in mind.

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When you’re talking to your agent about car insurance, they may mention a little thing called a “deductible.” You may be a little confused about this amount you may have to pay in addition to your monthly premium, but it’s vital to the way that insurance works and what can make your policy and your rates work for you. Here’s how.

What is a deductible?

If something happens to your car, your auto insurance deductible is the amount you’ve agreed to pay – your insurance has its part, you have your part. For example, let’s say you have a $500 deductible. You’re in an accident where the damages total $2,000. You would have to pay the $500 deductible, and your car insurance would pay the rest of the money to fix your car ($1,500) so long as it’s a covered claim.

We say your car because a car insurance deductible typically applies to collision and comprehensive coverage. If you only have bodily injury and property liability coverage, your insurance company will probably just pay the other driver’s fees. However, the claim could make your rates go up for next year.

Why do I need collision/comprehensive insurance?

While Georgia requires bodily injury and property damage liability, these coverages are only to cover your responsibility to the other driver in an accident. Collision and comprehensive coverage are the types of coverage that can help you repair damage to your car. Without those, you’ll have to pay the entire amount of your car repairs out-of-pocket. So, a deductible, in the grand scheme of things, isn’t that bad.

Is it worth going through my car insurance for a repair?

Additionally, some things aren’t really worth going through your car insurance because of your deductible. For example, let’s say you have a $250 repair bill for your car. If you have a $500 deductible, you would have to pay out-of-pocket for the total amount of the repair anyway. Because the repair isn’t more than the deductible, it might not be worth it to file a claim for something you’d pay for out-of-pocket anyway.

Similarly, if you had a $600 repair and a $500 deductible, you may just want to take care of the repair yourself instead of making your insurance pay the extra $100, potentially raising your rates next policy term. However, if you have a much higher repair bill than your deductible, by all means, let your insurance help you out!

How does my deductible affect my car insurance?

The thing about deductibles is that they can affect your premium. So, if you’re already paying more for your monthly premium, you can have a lower deductible because you’ve, in a sense, already “paid (part of) your dues” on a monthly basis.

On the other hand, if you choose a higher deductible, your insurance company can see it as you taking more financial responsibility if you have to repair your car. So, they can lower your monthly premium/payment into the risk pool. It’s all a balancing act.

How do I choose my deductible?

So, what does all this mean for you? Well, it means you can be a little more informed in the deductible you choose. That way, you can customize your auto insurance policy for your needs. A good place to start considering the deductible you want is by asking yourself these questions:

How much would I be able to pay if I filed a claim?

Budget for how much you could reasonably pay if you had to repair your car. What amount could you put into your car without being significantly set back in your finances? Your insurance is there, ultimately, to help you. Don’t let it hurt you.

Am I willing to have a higher monthly payment or higher repair costs later?

If you believe you’re able to pay out more every month for your car insurance, and you don’t think something will happen later, go ahead and choose a lower deductible. Accidents happen, even to safe drivers. Still, if you’re not in a high-risk situation that could affect your auto insurance rates, you may be comfortable taking the chance that you won’t have to pay a deductible later on.

However, if you think you won’t be able to afford higher monthly payments, but you would be able to save up gradually for your deductible, choosing a higher deductible and a lower monthly payment may be for you. Remember, though, that your car insurance deductible doesn’t build on itself like health insurance. Each claim that you file means that you have to pay that deductible for that claim. So, if you have a $500 deductible, and 2 claims throughout your policy term, you would have to pay $500 for each of those 2 claims.

Do I still have to pay a deductible if I’m in an accident, but I’m not at fault?

It depends on the direction you want to take. If you want to ensure that your rates won’t go up, you could go directly through the other driver’s insurance policy to have your car repaired. However, going through another carrier may take longer than expected.

If you have collision coverage, you could go through your insurance to have your car repaired more quickly. In this case, you may end up paying your deductible while your insurance takes care of their part of the repairs. Then your insurance would subrogate (ask the other driver’s insurance company for money) and reimburse you for your deductible.

Overall, deductibles and premiums are a fine balancing act between your premiums, your coverage, and your budget. It can be tough to navigate. That’s why our car insurance professionals are here to help you every step of the way. We’ll walk through your risks so that we give you quotes and discounts on auto insurance that fit your needs. To get started, just give us a call, fill out our online form, or LiveChat with an agent today!

Over the past few years, the auto insurance market has been hardening. Policyholders have noticed this in the form of increased car insurance premiums (or expensive auto insurance premiums.) From about 2011 to 2016, insurers were competing against each other, and this competition led to a soft market in which car insurance prices were lower. However, carriers are now either leaving the market or raising their rates to make a profit and stay in business. This can be attributed to several different factors, which all contribute to the trend of rising auto insurance premiums.

5 factors that have caused car insurance prices to rise.

More people are driving…and they’re driving more.

There are a lot more drivers on the road due to low gas prices and strong employment rates, and those drivers are putting a lot of miles on their cars. However, that also means there are more accidents (more cars on the road means more traffic and more crashes.) This means that the average driver has a higher chance of being in a wreck when they drive. (There are also more accidents due to an increase in unsafe driving habits on the roads, such as distracted driving.)

And those claims have to be paid for – by insurance. And insurers can’t necessarily sustain those kinds of losses and payouts, so they’ve had to pass off some of the expense to policyholders in the form of higher premiums.

Accidents are more severe.

Accidents have also become more severe, meaning that the average cost of a claim has gone up. This increase in accident severity has happened because the cost of medical care is going up. Also, the costs of auto repair have been going up, as has the cost of auto parts. The technologies in newer vehicles are expensive, and on the repair end, it requires special equipment and training for the professionals who are working on the vehicles. All of these things contribute to larger claims and a bigger “fallout” from accidents. Simply put, accidents are costing more. And that means insurers are charging higher insurance rates because of the increased risk.

Lots of motorists are uninsured.

Many motorists do not carry enough insurance – or any insurance at all. And when they cause an accident, it’s the insured driver’s underinsured/uninsured motorist coverage that will pay out for the damage. But these claims have been going up by quite a bit recently too, so that means that premiums have also been increasing. Insured drivers are paying more to offset the trend of increased uninsured motorist claims.

Autonomous vehicles.

Self-driving cars are a trend that is soon to be upon us, and that means that insurers are going to have to learn how to cope with the changes autonomous vehicles will bring to the car insurance industry. The prediction is that self-driving cars will lower accident frequency and make the roads safer, leading to fewer claims (and thus lower auto insurance premiums.) It’s also predicted that the car insurance market will shrink. Insurers are seeing these trends and predictions and they’re trying to get ready for the inevitable change to come, so they are gradually raising rates to compensate for the future when rates could drop by a lot and the personal car insurance market will decrease.

Insurance fraud.

Insurance fraud is yet another factor that has contributed to rising auto insurance premiums. Whether it’s staged accidents or faking an injury to pin the blame on a third party (and collect the insurance money), insurance fraud is always a concern within the industry. It costs the country billions every year. And once again, this cost is transferred to the policyholders.

How policyholders can manage their rates.

Even though these trends are happening and they’re causing car insurance premiums to go up, there are a few things that policyholders can do to keep their rates down and offset the price increase. They can:

• Raise their deductible if they are financially comfortable doing so.
• Maintain a good driving record by driving safely. (Tickets and accidents can cause rates to go up.)
• Choose a safe vehicle to drive.
• Consider bundling their home and auto insurance.
• Explore the car insurance discount options available to them.
• Work on improving their credit score.
• Get multiple quotes for car insurance.

Even though car insurance rates have been rising, we can help you get the coverage you need to protect yourself financially at a great rate. Our agents can help you get multiple quotes so you have options to choose from, and we’ll make the insurance process as easy as possible. You can get in touch with us by filling out our online quote form or giving us a call today.

Okay, so you have a situation: the car insurance didn’t get paid. Maybe you forgot. Maybe money was a bit tight this month and you couldn’t pay it. And now your Atlanta car insurance has lapsed…and you’re a little anxious. Your main question is what do I do if my car insurance lapsed? And what could happen now that your auto insurance has lapsed? We’re going to answer those questions by explaining what to do if your car insurance lapsed…and why it’s important to get coverage in place.

What do I do if my car insurance lapsed?

Well, the first thing is to stop driving the car if you don’t have insurance. Mooch rides from friends, take public transportation, use a ride-share service…just don’t drive. There are a lot of potential consequences to driving without insurance (and we’ll go over that in more detail in just a second.)

Okay. Moving on.

You need to call your agent or your car insurance company. You might be able to reinstate your policy without too much trouble if you’re not too late with the payment – particularly if you’ve got a good driving record and if you don’t make a habit of paying your car insurance bill late. Your insurance company might forgive a “whoops” moment, and you may just end up paying a surcharge. But if it’s more than just a “whoops” situation, that could be a problem. You’ll have to talk to your agent and see what options they have.

It can be difficult to get reasonably priced insurance if you’ve been cancelled for nonpayment. An insurance company is probably going to be pretty leery of insuring you because they see you as being a risk. To be blunt – they want to get paid.

So, long story short: if your car insurance lapsed, call your insurance agent to find out what your options are.

Pro tip: Set up automatic payments for car insurance. Then the bill will always get paid because it’ll be automatically be deducted from your bank account.

What happens if I drive without car insurance?

Well, that could get problematic.

In Georgia, you’re legally required to carry liability insurance to drive on the roads. You need $25,000 bodily injury liability insurance per person and $50,000 bodily injury liability per accident. You also need $25,000 of property damage liability. Those are the Georgia state minimums for car insurance. If you’re not covered by those levels of insurance and you get into an accident or get pulled over, that’s big trouble. Like we said, it’s illegal to drive without the right insurance. (Also, the Georgia DMV can find out that you don’t have the required coverage.)

Pro tip: Carry your insurance card with you when you drive. You could get in trouble if you don’t have it with you and you get pulled over.

But wait – there’s more.

If you drive without car insurance, you may be on your own if you’re at fault in an accident.

That means you could have to shoulder the cost of things like…

• The medical bills/expenses of the driver and their passengers.
• Repairing/replacing the other driver’s car.
• Repairing/replacing your car.
• Legal fees and expenses if the other driver sues you.
• Etc.

These expenses could be coming out of your pocket. Sure, your insurance premium might seem expensive…but not as expensive as the fallout from an at-fault accident. You don’t want to have to cover those expenses on your own..

So. This is why it’s important to keep valid Atlanta car insurance. Though you may feel auto insurance is very expensive, consider it an investment in your financial security. No one wants to think about worst-case scenarios, but driving comes with a lot of risks. It’s essential to protect yourself financially. If you’re concerned that car insurance is going to be too expensive, reach out to your agent and ask about payment plans, discounts, and coverage options.

And your Atlanta Insurance agent can help you shop for your rates so that you can compare coverage options and pricing – and save money on your car insurance. Get started with your Atlanta car insurance quotes by filling out our online quote form or giving us a call.

Source:

https://www.thebalance.com/avoid-a-car-insurance-lapse-527455

https://www.thebalance.com/policy-canceled-for-non-payment-2645553

https://www.consumerfinance.gov/ask-cfpb/what-is-force-placed-insurance-en-827/

https://www.thebalance.com/penalties-for-driving-without-insurance-in-georgia-527222

Auto insurance is not cheap. It’s a fact of life. If you feel like your auto insurance payments have gotten a bit out of control, you’re probably trying to scheme ways to save money on your car insurance. And maybe it seems like you’re not making much headway with that plot. Before you lose hope with saving money on your Atlanta car insurance, take a look at the following tips for lowering your auto insurance premiums.

1. Raise your deductible.

Quick definition: a deductible is the amount you agree to pay if you have a loss or claim. Basically, you’re responsible for a portion of the loss and the insurance company is responsible for the rest.

Anyways, this is significant because there’s a connection between your deductible and your premium. Think of it as a teeter-totter. The higher your deductible, the lower your premium and vice versa. This is because if you have a higher deductible, you’re accepting more risk and you’re less likely to make a claim (since you would have to pay that higher deductible, it might not be worthwhile to file a small claim.)

Here’s the thing: you need to balance your teeter-totter. Okay, what we mean by that is you don’t want to set your deductible so high that it would be burdensome or ruinous if you did have a claim. However, if you take a look at your finances, evaluate how much you could comfortably afford in the event of a claim, and decide that you could stand to raise your deductible a little, you could save money on your premiums.

2. Keep up a clean driving record.

Accidents and speeding tickets cause your insurance rates to go up. That’s because these things are seen as indicators of risk, and insurance companies don’t exactly love risk. The “riskier” a driver you are to insure, the more you will end up paying for your insurance. So, to get lower car insurance rates, respect the benefits of being a safe driver. Focus on the road – don’t text and drive or engage in any other activity that could distract you. Don’t speed. Drive safe. Your insurance will likely be cheaper.

3. Go on a discount mission.

Who doesn’t love a good discount? For your car insurance, there’s the possibility that you could save substantial sums just by meeting certain qualifications. There are scads of discounts for auto insurance, although they do differ depending on what company you’re insured with. Maybe your company has a multi-vehicle discount if your family has insured more than one car with them. Or they might have a Good Student Discount if you’re a high-schooler, college student, or young adult with good grades. You could also get a low-mileage discount if you don’t do too much driving.

Anyways, if you’re looking to score some savings on your car insurance, go on a quest for discounts. Google your insurance company and check out their website. Give your agent a call. You never know what might come of it.

4. Bundle your home and auto insurance.

And while we’re on the topic of discounts, you could also get a discount if you purchase your car insurance and home insurance from the same company. This is usually called bundling. Do some research or call your agent to find out if you could get a discount for getting multiple policies from them. If it makes sense to do so, you might consider switching your home insurance to your car insurance company, or your car insurance to your home insurance company.

5. Boost your credit score.

Some insurance companies see your credit score as an indicator of risk. If you have a better credit score, you’re seen as being a lower risk. That means that those with better credit scores may get better insurance rates.

6. Choose a safe car.

Lower insurance rates may be granted to drivers of cars with safety features like anti-lock brakes and good airbags. You may also get lower auto insurance rates if you have an anti-theft device installed. If you’re thinking about buying a car, try to do some research on its safety ratings and how much it will cost to insure. While you may really, really want an expensive, sleek car, you will have to prepare yourself for the probability that the insurance will likely be very expensive.

7. Shop around for car insurance.

When you’re on a mission to get car insurance, you may not want to just settle for the first policy and price you find. It’s important to look at the different coverage options and policies available from different companies. Since insurance companies all evaluate risk differently, you could get quotes that are quite different from each other. So, it may take some elbow grease and some patience, but if you stick with it and put on your “shopping” hat you could find a great rate for great coverage.

If you feel that you’re paying too much for your car insurance, there are steps you can take to lower your auto insurance rates. You can go on a mission to find discounts, bundle your home and auto insurance, or improve your credit score. And of course, you can shop around for the best coverage at the best rate. Our team of agents can help you with that – we’re professionals at helping people save money on auto insurance. All you have to do to get car insurance quotes is fill out our online form or call us today.

Source:

https://www.forbes.com/sites/robertberger/2017/12/10/11-quick-ways-to-save-money-on-car-insurance/#144a65af4a88