Your Occupation

You can bet that insurance companies have found a statistical relationship between your auto insurance

risk and your occupation. According to Insurance.com's 2006 Occupation Report, scientists,

pilots/navigators and actors/performers/artists pay the lowest insurance rates of the occupations

reported with an average of $935.76 per year. Whereas, attorneys/lawyers/judges, executives and

business owners pay the highest insurance rates of the occupations reported with an average of

$1,383.63 per year.

Why the high discrepancy, you ask? Well it comes down to a few factors. The group of

attorneys/lawyers/judges, executives and business owners typically have more stressful jobs. They spend

more time on the road and more time on their cell phones, which comes at a higher risk for the insurer.

The group of scientists, pilots/navigators and actors/performers/artists are less risky to insure because

their driving habits are a result of skills necessitated by their occupations. A good example would be the

detail-oriented and meticulous nature inherit with scientists, resulting in safer driving and lower insurance

rates

Marital Status

Your marital status affects your car insurance rates. Yes it's true, if you are

single, divorced, or even widowed, it can add to your auto insurance premium.

It is not uncommon for many auto insurance companies to levy this marital

status penalty. In fact, it's perfectly legal in most states for insurers to practice

this type of discrimination. However, insurance companies will argue that the

actuarial tables back up their guidelines; much like younger drivers being

more likely to be involved in an accident, the same statistics show that

unmarried individuals are more accident prone than their counterparts.

If you're single, you may want to try a little experiment next time you get an online car insurance quote.

Get two quotes, keep all info identical except for the marital status, checking one as single and the other

as married. This may shed some light on which insurers still utilize these practices. Fortunately, the very

act of shopping around for the best car insurance company should eliminate these types of companies,

leaving you with a combination of the highest quality and most competitive auto insurer.

Will You Get Your Cars True Value?

If you get in an accident and "total" your car, it's your insurance company's

responsibility to provide you with an amount of money that would purchase an

equivalent car. This doesn't always happen, unfortunately. Most insurers don't

use the Kelley Blue Book or NADA standards to estimate values. They have

their own formulas and will often consider quotes from various dealers that

aren't always that attainable, and this isn't always a good indication of your

specific vehicle's true worth. Every car is different, with things like condition,

mileage, and repairs playing vital roles. If they choose to use one of these

methods, you may want to present them with some local quotes of your own.

It's recommended that you keep a documented vehicle history as well, so you

can present repair and maintenance receipts if there's a dispute. Make sure

the amount you and your insurer settle on includes sales tax for the purchase

of your replacement automobile. This is often left out by insurers, and

replacing your car should not come with additional tax costs. If you have a

classic car make sure you have classic car insurance that provides

replacement value coverage, otherwise you're putting your investment at

risk.

If you get in a wreck and your car is deemed repairable, make sure to ask for

diminished value compensation. Diminished value compensation pays you

for the loss of market value that your vehicle incurs due to the accident and

repairs. Once your car has been wrecked it is worth less, even if completely

repaired to like new condition. Most people don't want to risk purchasing a

car that's been in a major accident, and this substantially hurts your re-sale

value. It's always a good idea to check with the car insurance company to

see if they offer diminished value before purchasing their coverage.

Your Credit Score

Believe it or not, your credit score is reviewed by your auto insurance company. This can be done at time

of application or prior to renewals. The thinking is that if you're responsible with your credit, making

payments regularly and over time, you're less likely to make regular claims. Statistically speaking, you're

more likely to file claims based on a shaky credit history. And, thus, your credit score plays a major role

in determing auto insurance coverage. Unfortunately, the utilization of this credit score method may result

in higher premiums, even if you have a perfect driving record and no accidents.

Lend Your Car to A Friend

Lending your car to a friend could prove costly. If you lend your car to a friend and he or she has an accident, it's your responsibility. You'll have to file the claim with your insurance company, not your friend's. To make matters worse, you're also responsible for any deductible, and the accident could 

potentially leave a mark on your record, raising your rates, even if you weren't in the car. So, think twice before handing those keys out.

We've all experienced the insurance pitch at the rental car counter. The agents enthusiastically encourage you to purchase car rental insurance, or what's commonly referred to as a collision damage waiver (CDW). This damage waiver is regularly endorsed by rental car agents, who often receive 

incentives to push this oversold product. The good news is—you don't need it. That's assuming you have full coverage on your own car, which commonly includes collision and comprehensive. So, in most cases  the coverage is unnecessary and declining it will save you some money.

Now, if you're cruising around in a '72 Ford Pinto with just liability or no insurance coverage at all, CDW may be just what you're looking for. That's assuming you don't have one of the many credit cards that offer protection. Many credit card companies offer rental car insurance protection as long as the entire rental car transaction is charged to that specific card. Make sure to check with your credit card company or personal auto insurance company before denying CDW coverage.

For New Drivers

By tradition, car insurance companies have been rather cautious about new drivers. If you are a new driver, then statistically you’re also likely to be young and you may have already experienced the nervous tone in the voice of some insurance companies when you’ve contacted them for a quote. Very possibly you also feel aggrieved that car insurance companies tend to view you suspiciously and as someone they expect to make a claim - just because you’re a new and younger driver.


Well, in fairness, it’s not their fault. New drivers, particularly young drivers, are often involved in more accidents than older more experienced drivers – with excessive speed often being a contributing factor.

It could also be that new and younger drivers lack real experience of the roads and so may not always see dangers in advance and react accordingly. So, being realistic, you may just have to be prepared to pay more for your car insurance until your experience grows. Having said that, it’s not all bad news and you shouldn’t give up on finding cheap car insurance because there are steps you can take to help reduce your insurance premiums.

Firstly, it may be possible to drive a vehicle based upon someone else’s insurance policy – a good example would be driving a vehicle as a ‘named driver’ on the policy of a parent. Assuming the other party is happy with the arrangement and you do both actually drive the vehicle, it certainly could reduce your car insurance costs. However, it does have the disadvantage that you are not building up your own ‘no claims discount’ entitlement.

You do have to be careful though in this instance otherwise you could be accused of ‘fronting’ and any claim you make could be rejected. "Fronting" is when a young motorist has a vehicle that is in their name, but they tell the insurer that their parent is the main driver in order to save premiums. If you are in any doubt as to whether you could be accused of ‘fronting’, then speak to your insurer.
Follow-up training

Another possible route open to you is to undertake some follow-up training. This is available through recognised centres one of which is probably reasonably close to you. In fact, your Local Authority may offer some sort sponsorship with some of the organisations that provide this type of training and may contribute to some of your costs. Once you have got through and passed this training then many insurance companies will take this into account and offer a reduction on their premium.

It’s also worth checking around the various suppliers of insurance to search out a deal. That’s because there are companies that specialise in offering car insurance policies to new and young drivers and they may be able to offer you an attractive deal.
As a final thought, remember that one thing that’s extremely likely to frighten insurers and therefore push up your premium is a combination of new driver plus ‘supercar’ vehicle. Yes, when first on the road many of us want to show our independence by getting that head-turning vehicle but remember that big engines and fast cars can equate to higher premiums and this is even more so if you’re a new, young driver.

Boring as it may sound, that conservative and staid looking vehicle with a top-class reputation for safety (if only 1/10 for panache) may be more suitable for your circumstances if you’re looking to keep your premiums down. If you can bear it, put out of your head those lightening fast super-tuned models – at least until you’ve secured a few years experience and associated no-claims bonus!