Financial problems always look bad on applications, no matter what the cause. Whether you’re renting a place, buying a car or trying to get car insurance, your financial past will come back to haunt you. So if you’ve ever filed for a bankruptcy, it could have an affect on your premium. Lots of people are filing for bankruptcy these days due to the poor economy and they are being faced with higher premium rates because of it. People are being forced to file for bankruptcy because it is the only way to keep their assets; even the middle-class families are having to deal with this, so it’s not just the low-income households.
In the New York Times, it showed that between ‘07 and ‘08, filed bankruptcies increased by 34%. Then a lot of middle-class families were looking for Chapter 13 bankruptcy protection in order to keep their homes and other assets during financial problems that can have an impact on the household.
So What is Chapter 13 Bankruptcy?
When individuals file for Chapter 13 bankruptcy, they receive the chance to make payments on the debts that they owe; this allows them to protect their assets, unlike with Chapter 7 bankruptcy. With the Chapter 13, the filers who have a steady income are able to keep their property, while still paying back their debts — this usually takes between three to five years. Throughout this period, the person filing is protected from creditors, who will be unable to begin or continue collection efforts for payments that are past due. With the Chapter 7, most of the assets of the individual is taken away, unless they are considered exempt — this depends on the state the bankruptcy is being filed in, most of which base it off of the individual’s income.
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If you’re wondering about what can help you save on car insurance, there are various things you can do. Some are known secrets and others are lesser known. Either way, you’re about to find out some of the best secrets for getting discounts and paying as little as possible on your car premium rates.
Don’t Get Collision for Older Model Car
If you’re driving around a vehicle that’s 7 years or older, then it isn’t as necessary to purchase collision coverage for it. There’s no good reason to have comprehensive and collision coverage for your vehicle if your car is worth $2,500 or less. The deductible you have is near the value of your car, so you’ll losing more than you’re gaining.
Isn’t Cheaper to Bundle Vehicle and Home Insurance
It was previously believed that bundling your auto and home insurance together would save you money. The concept comes from the various bills we have today that can be bundled, such as cable, internet, phones, etc. In actuality, you may be paying more than you have to when you bundle with the same insurance provider. In most cases, you would receive the auto and home coverage for around the same rate; instead, you should be shopping around for the lowest rates for both, even if you have to purchase from two different insurers. Some asset protection companies do offer discounts for adding on more than one asset (2 cars) or type of asset (car and home). So look around as much as you can and ask about any discounts that are available for bundling. Don’t just assume that the bundle you receive from that specific insurer will be the best rate.
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This is a question that has been asked a whole lot over the years. There isn’t any real proof that men are better drivers, but a lot of men will swear by it. Most men do believe that most accidents are caused by women and that they drive better than their mothers, aunts, sisters and spouses. But who is more likely to get a traffic ticket or in a fatal auto accident?
Truth has it that young males are considered to be riskier drivers because they have bad habits that young women don’t. So the men that are between 16 and 25 are said to be more likely to get into a vehicle collision. When insurance companies are giving out quotes, they look at the age and gender factor before giving out an estimate for a car coverage premium. Statistics show that during the first half of 2008, 68% of women didn’t have any traffic violations and 64% of men did have traffic violations. About 30% of the women drivers had between 1 and 3 driver violations vs. the men’s 33%. Only 2% of the women had more than 4 driving violations.
Looking into the statistics even more, the Insurance Institute for Highway Safety, or IIHS, recorded that 14,512 men died from auto accidents in 2007; compare this to the 5,865 women who died while driving. It’s true that there are more men on the road, but the stats show that the fatal accidents rates are extensively higher. Then according to TrafficSTATS, men were recorded to have a 77% higher chance of being killed in an auto accident than women. Studies conducted by the Fatality Analysis Reporting System, also known as FARS, and the National Household Travel Survey had an estimated 14.61 men who were more likely to be involved in a fatal accident per 100 million trips; compare to 6.53 women. Between ‘99 and ‘05, 82.371 women died from auto accidents and 175,094 men died from car collisions.
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Shopping around for the best auto insurance policy can be a bit hard if you don’t know what and how to look for it. Saving is everyone’s top priority, so here are some simple tips you can use to save money on car coverage.
Don’t Drive As Much
When you don’t drive a lot, the insurance company can breathe easier knowing that there’s less chances of you getting into an accident. When you drive around often, it increases your chances of getting into an auto accident. When you drive less, it decreases your chances of getting citations for road violations, which could also play a part in hiking up your rates. Since you’ll be driving less, you can look into the public transportation system. There is a special discount you can receive for that as well, since that proves you aren’t behind the wheel as much. So what’s not driving much? Well, it simply means that you’re driving less than 7,500 miles annually. This may not seem like much and it isn’t depending on what type of travels you partake in. If you only use your vehicle to go to and from school or to and from work, then the lower your mileage will be, unless you work or go to school far away.
Avoid Using Your Vehicle for Business
When you tell the insurance provider that you’ll be using your car for business purposes, you will likely get all sorts of fees added on, such as a business use surcharge. Using your vehicle for business means that you will be driving more often and more mileage will be placed on your car, which could cause problems in the future. Your annual mileage increases and so will your premium. You shouldn’t lie about this; let the insurer know, so that you will have coverage for you daily business travels.
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If you were to get into a fender bender, would you and your car be covered? What if the other driver involved in the accident doesn’t have insurance or is underinsured? Unless your auto insurance policy has uninsured or underinsured motorist protection, you will be faced with covering the expenses for medical and auto repair bills. With this coverage, you will be compensated for the accidents you get into that aren’t your fault, no matter what (unless it is a hit and run). If you’ve talked with an insurance industry expert, you’ll know that they highly recommend having one of these coverage options. Just because your state requires all car owners to carry insurance doesn’t mean everyone abides by the law. In some states, the rate of uninsured are as high as 25 percent.
What Exactly is UIM and UM?
Underinsured and uninsured motorist coverage is protection you can purchase on your auto insurance policy. Doing so will allow you to pay for injuries related to you or your passenger if involved in an accident caused by a driver that is uninsured or underinsured. If the other driver caused the collision, he or she is legally responsible for paying for damages, but that could take years to collect if the driver is underinsured or doesn’t hold an auto insurance policy at all.
An uninsured driver is an individual who doesn’t have any auto insurance coverage whatsoever. They are illegally driving without the minimal insurance coverage that is required by most states. Some have insurance, but it doesn’t meet the state’s requirements and when they are involved in an accident, the insurance company denies the claim filed and the driver is unable to pay for the damages inflicted. Hit and run drivers are also considered uninsured, as it relates to Uninsured Motors Bodily Injury insurance.
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There are a lot of selfish drivers on the road and it’s not because they’re trying to hog the lane, but because they are likely uninsured. Getting into an accident with a motorist who is uninsured can be a devastating experience, especially for your bank account. In order to protect yourself from this situation, you should consider purchasing uninsured motorists insurance. Just think, if you get into an accident, you could end up paying for the costs out of pocket — even if it wasn’t your fault. If the other vehicle that was in the accident was uninsured and your policy doesn’t have uninsured motorists protection, you will be responsible for covering the damage done to your vehicle. According to the Insurance Research Council, there are roughly 13.8% of drivers who are uninsured in America. This is predicted to change to somewhere over 16% by 2010 (this has some relation to the rate of unemployment).
Not Mandatory, But Recommended
In most states, having auto insurance that covers uninsured motorists (UM) isn’t mandatory. There are some cases where drivers are insured, but they are underinsured motorists (UIM), which means they’re policy may not have enough benefits to cover the damages incurred.
Having UM or UIM can help to save you lots of money in the future if you were to get into an unfortunate accident. The costs for medical services and auto repairs can be very, very high and not many people are able to pay for them out of their own pocket. Getting into an accident with someone who is underinsured could take years before you receive the money you need from the other driver’s insurance. With UIM on your auto insurance policy, your insurance company will pay you what’s owed to you and wait to collect from the other driver. Basically, typical insurance that is required by law offers other drivers protection from you, but with uninsured motorists and underinsured motorists coverage, you’re given protection from other drivers.
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It is very true that your auto insurance premium can be deeply affected by the type of vehicle you’re insuring. When you’re applying for auto insurance, the insurer uses a basic formula to help determine your auto insurance premium. The type of vehicle you drive definitely is an equation in this formula. Looking into the type of car you buy or own, the insurance company is interested in how your car performs on the road, in crashes and what the theft costs would be — the results of all this can and will alter your rate over time. When a car first comes from the manufacturer, it is given a symbol from insurance rating organizations, whom make predictions on the expected insurance costs and compare them to other vehicles of different makes and models.
After experience begins to accumulate for that specific make and model, it will determine if it moves up or down in the rating system; this would ultimately reflect on your premium for comprehensive and collision coverage. Of course, other than the type of vehicle you’re insuring, you are judged upon your credit history, claims history, gender, age, driving record, amount and kind of insurance you’re buying, where you reside and a few other factors. It is known that sports cars and SUVs cost a bit more for liability premiums. It all depends on the auto insurance company when it comes to how SUVs are rated — they go by how much damage it could possibly cause to other vehicles in a collision. Those that have a history of causing more damage in an auto accident, will receive higher premiums.
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There are plenty of myths associated with getting auto insurance. Some people believe that the color of their car affects their premium rate or that their credit score has nothing to with their quote. Then those who purchase a new car think that it is covered because they already have auto insurance. Here is a list of common misconceptions about auto insurance.
If I have no-fault insurance, it means it isn’t my fault: This is completely untrue. No-fault insurance simply means that the insurer pays for the damages whether it was your fault or the other drivers. In some states all of the insurance policies are no-fault, so if anyone is in an accident and they have auto insurance, the damages will be covered no matter what.
My car’s color can raise or lower my premium rate: Untrue. Your rate is not determined by the color of your car. The only factors about your car that affects your premium rate include year, make, model, size of engine and body type.
The Government determines my insurance rate: Again, this is a false conception. The government is not responsible for determining your insurance premium rate. The regulator of your auto insurance is the state’s insurance department. Based on the regulations, insurance companies are able to set their premiums within the guidelines. Your residence, credit history, marital status and driving records are used to determine the premium rate for each individual.
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Are you feeling like it’d be a great idea to switch auto insurance companies? The process doesn’t have to be as grueling as most may think. The reasons for switching auto insurance companies are plenty. Some aren’t satisfied with the service of their current insurer and others have come across another auto insurance company that offers the same coverage for a cheaper price. With the use of technology, browsing around for insurance rates is very simple. Using your home computer, you can explore your options with ease. There are various comparison websites out there that offer side-by-side views of the companies details, so you’re able to compare them thoroughly.
Why Change Insurance Companies?
As you begin planning to search around for another auto insurance company, keep an eye on your current policy. If you truly feel that you’re not getting the bang for the buck, then maybe it’s time to begin looking elsewhere for automotive coverage. Before you call up your company and cancel your insurance policy, do a lot of shopping around in order to confirm your insecurities. If you see that there are insurance companies out there that have benefits and quotes that are more alluring, you can begin considering applying with them. Auto insurance companies in different states have unique ways of coming up with their quotes. Their estimations are based on personal experiences with the claims filed with them by their policyholders. For instance, in a given year, the insurance company will study the types of claims that were filed, then based on age group, car type and amount of accidents within those claims helps them to make decisions about future policyholders.
Avoid Gap in Coverage
While you’re looking for a new auto insurance policy, keep in mind that lapses in coverage can be counted against you. So don’t cancel your current policy before you buy another one. Even a one day gap isn’t good. The car insurance company you’re buying a policy from will be able to coincide the cancellation of your previous policy with the purchase of your new one.
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Times are hard and everyone’s always looking for ways to pinch a penny. Some may even be a little tempted to let go of their auto insurance policy. Before you even think about doing this, don’t do it! Everyone is having a hard time with bills and such, but cutting something like auto insurance would only cause you to spend lots and lots of money later on. Then you’ll realize it was a big mistake, but by then it will be too late.
Auto Insurance Laws
In every state, it is required by law that all drivers carry auto insurance for their vehicles. Some people think that they can drive about without auto insurance without getting caught. Although, many go a while without authorities finding out, but eventually they get caught. — up until the point of getting into an accident that is. There’s really no telling what will happen, especially when you’re driving with other people on the road. There could be a person falling asleep, driving drunk or just not paying attention to the road. No one can truly avoid getting into an accident; even the most careful of people can’t predict other drivers. It is a crime to drive without auto insurance and in most states, you’re required to show proof of auto insurance whenever asked for it. There are even random checkpoints, which everyone is checked whether you’ve done something wrong or not.
Verification of Auto Insurance
In many states, there are surprise auto insurance inspections that take place. When this takes place, you are required to mail in proof of insurance that shows you had coverage on the day the letter was sent. If you’re caught without auto insurance, it’s too late.
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