Auto insurance varies greatly from one group of drivers to another. This is mainly due to different types of driving styles. Factors such as age, sex, credit history, marital status, and criminal background can greatly affect your car insurance rate.

Car insurance rates for teenagers continues to be among some of the highest rates seen by anyone applying for auto insurance. Unfortunately teenagers have alot going against them when insurance companies consider them for coverage. Lack of experience, little to no credit history, and no marital status are all factors that skyrocket a teenager’s insurance rate. The highest auto insurance rates observed by any individual are usually any male driver under the age of 25. Teenager’s are also “statistically” more liable to get into a car wreck. In 2003 teenagers made up less than 5% of all drivers, but were involved in nearly 20% of fatal car accidents, an 22% of any type of car accident. Statistically teenager’s are a huge liability for insurance companies, and they make up for the liability in increased rates.

Fortunately, there are options for teens looking for ways to decrease their rates. A teen may be put under the same policy as his/her parents, therefore decreasing the rate. This can sometimes result in an increased rate for the parent’s, but the overall savings usually make up for the adjustment. The type of car also has a small factor in the rate price. A car with a low profile engine, high safety measures, and mediocre value are generally considered better in the eyes of insurance companies. Obviously a teenager’s rate is going skyrocket if they drive a brand new porsche or high valued luxury sedan.

Another option for teens is to take a drivers training course. Teens that have never driven a car, or are getting their license for the first time would do well to take a drivers training course – as not only would their insurance rates decrease, you are at much less risk to get into an accident after taking the course.

There are many other options available to the would-be teen looking to decrease their insurance rates.

In order to better understand how to protect your car from car theft, and in order to get a better idea of which cars will be stolen, it is important to understand the top five reasons that cars might be stolen. These are the five biggest reasons a person might steal your car.

Joyriding

Joyriding is something that is referred to sometimes as a prank, but it really does happen. This happens because a person sees a car and wants to drive around in it. They steal it with no other purpose other than to simply ride around in the car. These are cars that are stolen and usually recovered within a day or two in the same general area that they were stolen. Most of the cars that are stolen for joyrides are damaged, because the thief doesn’t care what happens to the car. Most of the time, cars that are stolen for joyriding are chosen because the owner has left the keys in the car, or has left the door switch in an unlocked position.

Transportation

The second reason that cars are stolen is simple – the thief needs to get from one place to another. They need to go somewhere, and have to have a car to do that. Most of the time, they leave the car wherever their destination was. Sometimes, the car is wrecked and often there are parts stolen from it, but the biggest reason to take the car in the first place was to simply get where they were going. Thieves choose these cars in the same way – they were left with the keys in the ignition, or in a way that is very easy to steal.

Other Crimes

Sometimes, a car is stolen so that other crimes can be committed. This happens when someone steals a car to get away from the scene of a crime that just happened, like a robbery. However it can also be done to get to a different crime, like a burglary or drug crime. Most of the time the stolen vehicle is abandoned when the crime is finished, but a lot of the time it is damaged or wrecked in the process. These cars are often stolen in places where there is a lot of crime.

Parts

Sometimes, a car is stolen for the parts. This happens when a car is hotwired and stolen, and the radio, or parts of the engine are taken out before the car is abandoned or found. Sometimes, the thieves have one or two main items in mind, and sometimes they strip whatever they can out of the car before someone finds it.

Commercial Theft

The last type of car theft is commercial theft. Unlike the cars that are stolen to strip the parts, these cars are stolen to be resold. Body shops will take in stolen cars, file off serial numbers and change the look of the car and then resell them. These are the cars that are in most high demand, and that is why they are stolen.

A Richmond man has been arrested in a hit-and-run car accident in Vallejo, California that killed a 72-year-old man, and injured two people.

The car accident occurred on October 20th at about 4:15 pm, when Antonio Fisher ran a red light as he was driving along Tuolumne. He broadsided another vehicle, driven by 72-year-old Pablo Mata. There were two other passengers in Mata’s car – 51-year-old Donna Mata, and 27-year-old John Mata. Later that night, Pablo Mata died in the hospital from force trauma injuries sustained in the car accident. His two passengers were injured, and were rushed to hospital.

As soon as the car accident occurred, Fisher apparently got out of his car with his girlfriend, and they both fled from the scene of the car accident. As he was running, Fisher removed his shirt, and discarded it in a backyard. However, video surveillance tapes at a local convenience store earlier in the day had evidence of his wearing the shirt.

Fisher’s crime would have gone unpunished if he hadn’t been for a parole violation. On Tuesday, he was arrested by Sacramento police for a parole violation charge. As police interviewed him, they became suspicious about his involvement in the Vallejo car accident, because of witness descriptions that they received, as well as surveillance footage. During interviews with the police, he admitted to having being involved in the car accident, although he reportedly refused to identify his passenger. Fisher was identified by a witness in a photo line up. He is now being held for the parole violation, and is being questioned in relation to the car accident.

It’s a difficult time for the Mata family, and we extend our sincere condolences to them. The Vallejo and Sacramento police deserve special mention for their adept handling of the accident, and the manner in which Fisher was caught and arrested. Vallejo police have now requested the Solano County District Attorney’s Office to file vehicular manslaughter charges against Fisher.

The Mata family can now breathe a sigh of relief that the man who was responsible for causing Pablo’s death has been found and arrested. This man not only caused a car accident through his reckless driving, but left his badly injured victims on the streets to suffer while he fled. Fisher appears to have been forward thinking enough to discard his shirt hoping to evade identification, but unfortunately for him, the police were more vigilant than he had bargained for. This man deserves to be held accountable for his actions. The Mata family should consider discussing their next steps with a California car accident lawyer.



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In one of our previous articles we listed the “Top 5 Car Dealership Scams To Avoid,” but it doesn’t stop there. This article continues with a few other car dealer scams that we’ve heard happening around the car market. Again, there are a lot of credible car dealerships that won’t try these but it’s always a good thing to know these in case you get a dirty car dealer or salesman.

6. The Dealer Mark up Scam

This is an unnecessary fee that the dealer charges for no reason other than greed. This fee can be seen on the orange sticker marked on the manufacturer’s suggested retail price (MSRP). The additional dealer markup is nothing more than requiring more money for no real reason. They can include all kinds of extra fees in the additional dealer markup.

When you see an extra dealer mark up fee, ask the dealer to get rid of it. If they refuse, it is pretty much up to you, but remember that if you do pay the extra dealer markup, you are overpaying for no real reason.

7. The Payoff Your Loan Scam

This is when the dealer offers to pay off the balance of your current car loan no matter how much money you still owe. It is a common sales strategy. When the average buyer hears it, they think that by purchasing a new car with a new dealership, they will automatically owe no more money on their current car. That couldn’t be further from the truth.

What really happens is that the dealership does help you get out of your current contract; however, they normally are forgetting to tell you how high your fees are going to be for breaking the lease agreement with your old dealership. You will now be responsible to pay fees that are in the thousands to make up for it.

You also will not be able to refinance for a new car until those fees are paid. Of course the dealership can add the cost on to your contract with them at a substantially higher rate. The dealership only agrees to this deal because they want to get more money off of your current car. They aren’t really doing anything for you at all.

The dealership will also give you far less then the car is worth on the trade off. Basically this scam works because they will up your monthly fees, and then sell your trade in for a more money than its worth. The dealership then extends your monthly payments so that they can make it appear that you are paying a small amount monthly when you don’t even realize that you have committed to an extra year of payments.

To avoid this scam, you have to bite the bullet and ride out your current lease until the end. If you are really determined to get a new car, then you should try selling your current car on your own. Just sell it so that the buyer just takes over the lease payments.

8. The Used Car Sold “As Is” Scam

This is when a dealership will sell you a car that has been in a car wreck, but they will tell you that the car has been completely refurbished. When you see the car it has a sticker on it that says “as is” on it and no warranty is included with your purchase. This is the dealer’s way of telling you that you can’t bring the car back, you are assuming all risks for the car, and that it is not under warranty.

To avoid this scam, don’t buy a car without a warranty or one that says “as is” on it. By doing this, you might as well buy a car from a stranger on the street with the same deal.

9. The Bounced Check Scam

This is when you walk into a dealership with a bank draft and the dealership charges that they can’t accept your draft because your bank bounces checks often so they now refuse checks from that bank. Of course, this leaves the table open for them to get the extra money they want by offering to sell you a car at a higher interest rate.

You can avoid this scam first by getting your drafts from First Again Auto Finance. Then let the finance manager know that you are aware of the scam that they are pulling and that First Again Auto Finance is in the business of giving loans so the checks don’t bounce.

10. The Forced Credit Application

If you are hoping to pay for a car outright or in cash with a bank draft or check that is what you should do. Some dealerships will not let you. You will hear one of these lines so that they can try and get you into paying monthly terms for more money. “State laws require that you must fill out a credit application before I can sell you this car.” Or “Everyone that buys a car from us fills out a credit application first.” Or maybe “It’s the company’s policy.”

If you hear any of these lies, then know what’s going on. When you are paying cash why would you think that you need to fill out a credit application? It doesn’t make sense. No state will force you to apply for credit when paying cash. Would you have to fill out a credit report if you want to buy a sofa or groceries while paying cash? See how silly this is. To avoid this scam, just laugh in their faces.

If you can identify these scams then you stand a great chance of saving a ton of money down the road on your new car. Stay tuned for our next two posts as we explain some other car dealership scams that have the “Special Offer” tag on them.

Many people buy their own cars because it makes life easier. However, many also struggle with the costs that come with maintaining a car especially when it comes to making car insurance payments. Many car owners are continuously in search for better ways to lower their car insurance premiums. What most do is simply search for companies that provide cheap car insurance. However, what many do not know is that they can save so much more just by following a few simple tips.

For those who aim to save on car insurance payments, the first thing to do is make sure to shop around every so often. In fact, the reason why six-month car insurance polices are most preferred is that it allows car owners to switch and buy car insurance from other providers at the soonest possible time. This means that it is important to continuously survey the insurance market to search for the cheapest car insurance around. Some people find that it is most effective to check out rates for car insurance online while others learn about the cheapest services from their friends and family. No matter what your preferred method for getting car insurance quotes may be, the bottom line is to find the best car insurance to not only suit your lifestyle but your budget as well. Many people who make this a practice report savings of over $300 on policies valid for six months. This would translate to so much more in a span of one year.

Another thing to consider when trying lowering your car insurance payments is to take the option for higher deductibles. Many car owners feel afraid to do this because choosing higher deductibles means shelling out so much more money in case they get into a huge accident. However, the logic behind choosing higher deductibles is pretty sound. Obviously, higher deductibles mean lower premiums. Therefore, lower car insurance payments. Car owners should not worry too much about higher payments when a major accident happens because minor accidents happen more often than major ones and when it comes to minor damages, car owners will still pay the same amount.

Many motorists prefer paying for their premiums in monthly installments because it allows them to shell out a relatively smaller amount at a given time and budget their car insurance payments along with the rest of their monthly expenses. However, what they do not realize is that even the cheapest car insurance providers add on administrative fees for each payment. Even if the additional amount is only $7 or so, for people paying their premiums at monthly installments, this could easily add up to $84 which they could have saved over the period of that one year

Another useful tip to help you lower your car insurance payments is to also look around for companies providing multi-line insurance. This means that you purchase all your insurance from the same company. Most insurers offer huge discounts for this. However, many people still try to look for cheap providers for each type of insurance they need. What they do not realize is that getting their car insurance and home insurance from just one provider can easily translate to about 15% savings.

Furthermore, if you think of yourself as a good driver and no evidence to prove otherwise can be gathered, here’s a good tip for you: look for car insurance providers that can reward you with big discounts simply because of your driving. In fact, some states such as California have made it illegal for car insurance providers to disregard good driving discounts. So, if you have not gotten yourself into any car accidents or received tickets for at least the past three years, do some research or ask around. You may qualify for lower premiums.

Nowadays, a lot of insurance companies will base the prices of their car insurance policies on your credit history. If you have been diligent in building a solid credit standing, then you stand a good chance on getting lower car insurance quotes when you buy car insurance. Aside from making sure unpaid bills don’t pile up, keep your credit balance as low as possible and don’t acquire more credit than you need. Keep your records updated and make sure to correct any errors so your credit history remains accurate.

Many car insurance companies also offer discounts to people whose cars have safety features. Airbags, seatbelts, anti-lock braking systems and other factory-installed safety features on your car may help you find the cheapest car insurance you can get. Make sure you tell your insurer that you have such features installed on your vehicle when you get car insurance quotes.

Sometimes it pays to be diligent to the point of being anal. If you want the cheapest car insurance you can get, you should review your car insurance coverage to check for unnecessary expenses in it. If you’re not thorough you may be spending on additional coverage that you don’t need or already have. A perfect example would be towing services. Most, if not all, auto clubs provide such services yet this is part of most car insurance policies as well. So before you buy car insurance review the car insurance quotes you’ve gotten and eliminate all the unneeded expenses.

If you’re looking for cheap car insurance, look for insurers that give discounts to students and senior citizens. Some car insurance companies will offer discounts for students with good academic records and for drivers over the age of 50. Ask around or research on car insurance online, as well, if you have a college student in your family. Some insurers give discounts to parents with college-age children who go to school a certain distance away from home and don’t bring a car to their campus.

One last great tip to lower you car insurance payments is to use your car less. There are a lot of car insurance companies that will give you discounts if you keep the annual mileage on your vehicle low. So, evaluate how you use your car. If you make frequent short trips around town you might consider planning ahead and organizing all your errands so you can check all of it off your list in as few trips as possible.

One thing to remember though is that car insurance companies may differ in what they consider to be low annual mileage, so do your research. If you think you might be able to lower your mileage then get updated car insurance quotes.

Following just a few of these recommendations will surely help you lower your car insurance payments. Remember, it is not always about finding the cheapest car insurance provider. Most of the time, it is simply about knowing your options and weighing them to find the perfect car insurance strategy for you.

Many consumers are looking to cut household expenses any way they can in these uncertain economic times.  The first place most households often look is car insurance premiums.  To clarify, a car insurance premium is the amount you pay to the car insurance company on a regular basis (ie monthly) so the car insurance company will fix your car in the event of a car accident.  Car insurance can be considered a necessary evil.  No one likes paying for car insurance.  You have to pay for car insurance when you don’t use it and when you finally need it; car insurance companies make it a major hassle to obtain your money from them to fix your broken car. 

One of the most common ways to reduce your monthly car insurance premium is to increase your insurance deductible.  What is a deductible you ask?  A deductible is the amount of money you pay out of your own pocket in the event of a car insurance claim (i.e. a car accident that is your fault).

As tempting as it may seem to raise your car insurance deductible to reduce your monthly insurance payment, you need to evaluate your financial situation first.  For example, ask yourself, “If I raise my deductible from $1,000 to $2,000 do I have the $2,000 deductible set aside in the event I get into a car accident?”  If the answer is no, you may want to postpone raising your car insurance deductible until you save $2,000 and can comfortably put it aside.  If the answer is yes, you still need to consider your car driving habits and your risk of a car accident.

Your car driving habits can alter your car insurance expenses significantly.  If you are a safe driver and can go a long period of time without getting into a car accident, raising your deductible may be a smart move.  If you are not a safe driver and you frequently get into car accidents, raising your insurance deductible may not be worth it.  The longer you go without getting into a car accident, the more money you save on car insurance expenses.  If you get into a car accident shortly after raising your deductible, you may end up losing money.  Let’s look at an example.

If increasing your deductible from $1,000 to $2,000 decreases your monthly car insurance premium by $25, then it would take 40 months (starting from the date you raise your car insurance deductible) for your monthly savings to cover the $1,000 increase in deductible (40 x $25 = $1,000).  So that means if you have an accident during those 40 months, you are better off keeping your deductible at $1,000.  With your driving record, can you go 3 years and 4 months without a car accident?  If not, you may want to reconsider or change your driving habits.

So, you are a great driver and fully confident in your ability to go 3 years and 4 months without a car accident.  Too bad it’s not that easy and too bad we don’t drive on roads without other vehicles.  You also have to consider other drivers on the road.  We all know there are plenty of dumb drivers on the road.  Due to congestion and higher population, there are a larger number of morons on the road in the city than in the country.  Your chance of getting into an accident in an urban environment is a lot higher than in a rural environment.  So carefully take into consideration where you live, work and play before you raise your car insurance deductible.

Is raising your car insurance deductible right for you?

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