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buying Why Smarter Cars Aren't Saving Us Money on Car Insurance

19:00  23 january  2018
19:00  23 january  2018 Source:   nerdwallet.com

How Do Those Car Insurance Tracking Devices Work?

  How Do Those Car Insurance Tracking Devices Work? It may only be a matter of time before insurance companies require these devices.Over the last several years, auto insurance companies have been promoting tracking devices, known in the industry as "telematics devices," to follow the driving habits of their customers. Savvy drivers have wondered what they do, how they work, and if they really help drivers save money on car insurance premiums.

Today's cars have loads of safety features, but in recent years the cost of accidents and auto insurance have risen sharply. Here's why . Federal Consumer Price Index data shows car insurance prices jumped 7.9% in 2017 and 7% in 2016, the biggest annual increases since 2002.

New technology makes some cars smarter than their drivers: Automatic braking systems slow or stop cars to prevent collisions. With more vehicles hitting the road with these and other safety features, you would think car insurance rates would drop along with accidents.

Video by USA TODAY

The great myth about car insurance costs

  The great myth about car insurance costs Consumer watchdogs say insurance companies are doing you no favors if you're one of these lower-risk driversThat's the counterintuitive, but probably accurate, picture drawn by two surveys of auto insurance rates -- one by the Consumer Federation of America (CFA), the other by Internet auto insurance search engine The Zebra.

Car insurance is a must, but you don' t want to spend a penny more than you need to. Here's how to save on car insurance . State Farm offers discounts for students, vehicle-safety equipment and safe driving, among others. The company’s Drive Safe & Save usage-based program gives customers an

Car insurance isn’t a commodity that everyone experiences equally. Many different factors can be used to price insurance policies, including a driver’s age, accident Credit-based insurance scores aren ’ t quite identical to the traditional credit scores used in the context of lending, which are designed to

New technology makes some cars smarter than their drivers: Automatic braking systems slow or stop cars to prevent collisions. Lane-departure warning features alert drivers with sounds or vibrations when their cars drift across lane markings. Self-parking systems can expertly back vehicles into tight spaces without drivers touching their steering wheels.

With more vehicles hitting the road with these and other safety features, you would think car insurance rates would drop along with accidents.

But the cost of accidents and auto insurance have risen sharply in recent years.

Federal Consumer Price Index data shows car insurance prices jumped 7.9% in 2017 and 7% in 2016, the biggest annual increases since 2002.

Low-mileage drivers are at lower risk for accidents, but they usually pay just as much for insurance, study says

  Low-mileage drivers are at lower risk for accidents, but they usually pay just as much for insurance, study says When it comes to how much you pay for car insurance, being married and having good credit often matters more than how much or how well you drive, according to a new study. The research, released this week by the Consumer Federation of America, found that major auto insurers provide little or no discounts to low-mileage drivers, even though they tend to have a lower accident risk. The study The research, released this week by the Consumer Federation of America, found that major auto insurers provide little or no discounts to low-mileage drivers, even though they tend to have a lower accident risk.

Simply provide us with your car information, and we 'll provide you with all the available car insurance policies that Why Choose MoneySmart Financial for Your Car Insurance ? We ’re Comprehensive And Our General Insurance Specialists will help ensure your claims are processed and help you to

Buying your teen car insurance isn’ t cheap. Luckily our ELP experts have some tips to help you save money without lowering your coverage. But new cars also cost more to insure because the parts and technologies are more expensive to replace That’s why Brandon suggests choosing a used car .

What gives?

Miles and miles and miles

Why Safe Cars Aren't Saving Us Money on Car Insurance-story: Today's cars have loads of safety features, but in recent years the cost of accidents and auto insurance have risen sharply.© Unsplash Today's cars have loads of safety features, but in recent years the cost of accidents and auto insurance have risen sharply.

For one, a lot of older cars are still on the road. Even if the new safety features ultimately reduce crashes, it will take time for them to make a dent in the accident rate. The average age of cars on U.S. roads is over 11 years, according to IHS Markit, a research and analytics company.

For another, we’re driving more than ever, thanks to a better economy and job market, says Joe Salerno, vice president of claims for the Arbella Insurance Group.

Drivers logged more than 3.2 trillion miles on U.S. roads in 2016, the fifth straight year that U.S. mileage increased, according to the Federal Highway Administration. Miles driven from January to September 2017 were up 1.3% compared with the same period in 2016.

More miles means more accidents. And more accidents leads to more drivers filing insurance claims, says James Lynch, chief actuary for the Insurance Information Institute, a trade group.

Does Car Insurance Cover Theft?

  Does Car Insurance Cover Theft? What Happens When Your Car Is Broken Into? So you walk out to your car in the morning, and your car is still there, but the window is broken. Maybe you own a vehicle with a manual transmissions and the thieves couldn’t drive stick, so they went after your belongings, instead. Once again, things get tricky. It depends what those things were, where they were located in the car, and how they were used by the owner.If you had valuables in the car, such as cell phones, CDs, a purse, etc., these items are covered under homeowners’ insurance.

How To Get Car Insurance Quotes and Save Money . Many of us have errors in our driving records that can increase auto insurance rates. I once paid a traffic ticket and Some cars are very difficult to insure . Know your insurance costs before you buy a car and plan your monthly budget accordingly. When you decide to buy insurance , don' t think you can be smart and neglect to tell them you had a

New opportunities for saving money with a car insurance discount program pop up all of the time as different You've worked hard to improve your credit score so why not spend a few minutes to see if that can Virtually all of the major car insurance companies offer some form of good student discount.

» MORE:8 ways to get the cheapest insurance possible

The number of collision insurance claims per insured vehicles has creeped up each year since 2013. In the second quarter of 2017, collision insurance claims filed totaled 6.12 per 100 insured vehicles, compared with 5.56 claims per 100 insured vehicles in the first quarter of 2013, according to the institute. That’s a 10% increase.

“What’s happened in the last three or four years is both the accident rates have been going up, and the size of the claims have been going up,” Lynch says.

Accident costs are going up

Two Drivers Exchange Insurance Details After Accident© Monkey Business Images/REX Two Drivers Exchange Insurance Details After Accident

Both medical and car repair costs are rising. Insurers’ costs to pay and administer claims went up 11% or more per insured vehicle in the past two years, depending on the kind of claim, the Insurance Information Institute says.

Technology is partly to blame for the higher costs.

New bumpers, for example, include equipment, such as cameras and lane-departure and backup sensors. The bumper on a 1990 Honda Civic had fewer than 10 parts, Salerno says. A 2016 model has over 30.

These Are The Cheapest And Most Expensive Cars From 2006 To 2016 To Insure

  These Are The Cheapest And Most Expensive Cars From 2006 To 2016 To Insure Buying a car that’s 10 years old isn’t a huge risk anymore. What’s cheap and what’s expensive to insure? Insurance resource company Insure.com recently released a list of cars from 2006 to 2016 that it found to be the least and most expensive to insure. It compiled this list by comparing rates through using an identical driver profile for all the cars “at six major insurance carriers in multiple ZIP codes in each state and the District of Columbia.

This Why You Need Car Insurance . Car insurance is not cheap. One of the easiest expense traps to fall into with your car insurance is to allow your auto policy to renew year after year. Sometimes it is just too easy to keep paying the premiums when the car insurance comes up for automatic renewal.

Accidents are the reason you bought car insurance . Instead of losing your car because of a moment’s inattention, it will be repaired or replaced. Instead of facing a battery of lawyers yourself, you have an experienced insurance company to represent you.

According to Arbella claims information, windshields on cars with advanced driver-assistance systems, such as adaptive cruise control, can cost 82% more to replace than vehicles without those features, Salerno says.

In addition, changes in vehicle composition, including the increased use of aluminum, boost labor costs for repairs. “The complexity of repairs is greater and requires a higher skill set,” he says.

» MORE:How much insurance goes up after an accident

Few insurance discounts for newest safety features

Driving in rush hour traffic© PhotoAlto/Odilon Dimier/Getty Images Driving in rush hour traffic

Most car insurers don’t yet offer discounts for the latest features, such as adaptive cruise control, automatic emergency braking or lane-departure warning systems. (Liberty Mutual is an exception.)

“These features are still new and so far very few vehicles on the road are equipped with them,” says Russ Rader, a spokesman for the Insurance Institute for Highway Safety, a research and educational group supported by insurers.

“Insurers need historical data on whether these systems are reducing claim costs for specific models,” he says. “While a feature may reduce the risk of a crash, it could also raise the cost of repairing a vehicle following crashes that still happen because the sensors are expensive and often placed in vulnerable locations.”

What Is Gap Insurance (And Why You May Need It)?

  What Is Gap Insurance (And Why You May Need It)? It helps protect motorists who are "upside down" on a lease or car loan.If you’re buying or leasing a new car or truck these days, you’ll likely be offered – perhaps required to purchase – so-called gap insurance. This type of policy covers the difference between what a given vehicle is worth and what the owner or lessee still owes on it, should it be stolen or become totaled in an accident. For the record, “gap” stands not for the above imparity, but for Guaranteed Auto Protection.

The type of car you drive has a significant effect on car insurance premiums. In one study on the least and most expensive cars to insure , annual rates One potential money -saver is to pay for insurance by the mile. While not available in every state , paying by the mile can reduce both the miles you drive

Here are a few ways to save on car insurance : Try shopping around: Rates can vary widely among insurance companies Most of us aren ’ t mechanics, so we need to leave troubleshooting to a trusted expert. When you decide to sell that car , you’ll find that your smart decision will return money to you.

Another challenge for insurers is confirming whether a vehicle has those features. Usually, they get a snapshot of a car by checking its vehicle identification number, or VIN, a unique 17-digit code created by the automaker. The VIN identifies the car’s specifications and manufacturer but doesn’t include whether a vehicle has advanced crash-avoidance features like automatic braking.

“Once automakers make a feature like autobrake standard equipment rather than optional, it will be easier for insurers to track,” Rader says. “That’s beginning to happen, and virtually all vehicles will have standard autobrake by 2022.”

Although advanced safety features might not yield a discount yet with many insurers, Rader says they’re worth considering when buying a car.

“Consumers should look at these features as important safety equipment,” he says. “If you buy a vehicle with crash avoidance technology, and it prevents just one crash, the system probably paid for itself.”

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States Where Poor Credit Has the Biggest Impact on Car Insurance Rates .
A study finds low credit scores can cost you thousands a year in car insurance, especially in Michigan.A nationwide report by NerdWallet finds that auto insurers widely use consumers' credit histories to determine rates, and those with low credit scores pay an average of $1,270 extra per year in car insurance. Insurers see those with low credit scores as more likely to file claims, the report states.

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