The online process starts as simply as entering your zip code. One thing you should keep in mind, these websites do require personal information to give you an accurate quote, and by agreeing to the terms and conditions of the websites, you are giving them the right to obtain information from agencies that provide such information as your driving record, credit history and claim data. Your withholding of specific information can be considered misrepresentation, and may result in an insurer denying your application.

“What information do the insurance companies ask for?” you might be wondering. Good question, it does vary among the companies but, in general, here’s what they are looking for:

· Zip code: They want to know exactly where you live; premiums are based on location with rural communities getting a better deal than their urban counterparts.

· Own or rent: Homeowners are considered lower-risk than renters.

· Years of driving: They need to determine if you’re a new or an experienced driver.

· Age of primary driver: The younger you are, the more money it will cost to insure you.

· Driving history: This information appears on your driving record, so be honest – if you’ve got a couple of moving violations then acknowledge them.

· Credit history: This information is also verified through the credit reporting agencies, but they do ask that you “rank” yourself.

· Vehicle to be insured: Basic information, such as the make, model, year, as well as the installation of any anti-theft devices or customizations, etc.

· Primary driving usage: The insurance company wants to determine if the primary usage will be for pleasure, commuting or business. Be honest here, if you suggest that you will only use your vehicle for pleasure, but file a claim for an accident that occurred while you were making deliveries or some other business-related activity, they may deny your claim as misrepresentation.

· Other drivers in the household: All licensed drivers who live in the residence should be added to the policy.

Once you’ve input this information (truthfully), you will either get an instant online car insurance quote or the promise of a quote by email or phone call. If you prefer to remain anonymous, because you’re just “browsing,” several insurers will also give you a “ballpark” estimate.

1. Drive safely. Sounds a little too obvious, but the fact is, your driving record, good or bad, plays a significant role in the cost of your premium. Tempting as it may be, not disclosing a ticket or two is reason enough for an insurance company to reject your application.

2. Choose a car with a lower profile. The difference between insuring a Hyundai and a Corvette is considerable. Before you buy the car of your dreams, check the insurance rates for each.

3. Consider installing anti-theft devices. Your insurance company wants to know that you’ve taken a proactive role in securing your car. You should know that it’s considerably more expensive to have your dealer install them, than it would be a third party.

4. Reconsider buying add-ons such as spoilers and custom exhaust, etc. Yes, they look nice; but what they cost you initially will be no where near what you will be reimbursed by the insurance company, if you file a claim.

5. Adjust your thinking on deductibles. Your deductible and premium are inversely related; you could raise your deductible and put the premium cost savings aside, just in case.

6. Drop comprehensive/collision coverage on older vehicles; the rule of thumb is, if your vehicle is worth less than 10 times your premium, drop the coverage, because you’ll never recoup the value.

7. Watch your credit report; when buying insurance for the first time, or when you adjust your insurance needs, the insurance carrier is permitted to use your credit report as a basis for your premiums.

8. Buy car insurance from your home insurance provider. Often buying an umbrella policy will result in a combined savings of about 10-20%.

9. Ask the insurer if they give discounts for completion of safe driving or defensive driving training.

10. Don’t pay your premiums monthly; an installment and processing fee is usually included in monthly payments. Whenever possible, pay on a semi-annual or annual basis.

11. Ask the insurer if they provide discounts for low-mileage usage. The less you drive, statistically, the less likely you will be to get into an accident.

12. Ask the insurer if they offer discounts for membership in certain societies, civic organizations, alumni associations or clubs. Also, some professions and classes of individuals (i.e. retiree) may be considered “low-risk” so be sure you ask about that, as well.

13. Shop for your insurance online, where you can compare costs and services.

One fact should be perfectly clear, in most states, driving without car insurance is illegal. The repercussions for it may include suspension of your driver’s license or car registration, daily (and usually escalating) penalties assessed by your state’s motor vehicle administrator, and, in the event you’re pulled over by a police officer (for any reason), driving without insurance can result in a misdemeanor charge against you. And last, but not least, an insurance lapse could be reported to the major credit reporting bureaus, which may make it near impossible for you to get a good insurance rate ever again, since you’ll be considered high risk. Even a single day’s lapse of insurance continuity is considered, for all intents and purposes, uninsured, even if you did no driving at all that day.

Now that you’ve been sufficiently warned (or scared to death), let’s take a look at the two simple steps that will enable you to switch your insurance coverage from one provider to another.

1) Call your existing carrier, and advise them of your intent to cancel; give them a specific date that you will be canceling the policy, which will be effective as of midnight (generally) on the date you choose. They may need something in writing from you, or will provide you with a form for your signature. Some insurance providers will require that you provide them with proof of new coverage, so don’t be surprised if they ask for this.

2) Obtain coverage from your new insurance provider; this insurance should be synchronized to start when the existing insurance policy terminates. This is also a good time to review your existing insurance needs; you may find that the old insurance was inadequate or that you need to change your deductible or buy higher protection. Insurance can be arranged for immediate coverage, in some instances, either online or over-the-phone with credit card payment of the premium. Be sure that you either have the new policy sent to your email address, or faxed to you or at a minimum, write down your new policy number until the original comes in the mail.

This might be regarded as overkill, but you also could consider starting your coverage on the day before your existing coverage ends, so that you will have a full day of “stacked” insurance. Not every state allows stacking, though, so you should bear that in mind. But when it comes to making a change to your auto insurance policy, it’s better to have an insurance overlap than an insurance lapse.

The simple way to find out is by making a couple of phone calls.  Call your insurance company’s toll-free number, and ask the agent whether or not your own policy covers rentals.  However, don’t rely on a verbal acknowledgement, ask the representative to either confirm by e-mail or by facsimile; you want the answer in writing, just in case.  If you rent cars often, you might want to consider purchasing additional coverage that would explicitly cover car rentals, and would extend both collision and comprehensive coverage. 

If you don’t have coverage under your own separate car insurance policy, call the toll-free number on the credit or charge cards that you hold, and ask the same question; again, you want an affirmative answer in writing, just in case.  You should ask about dollar limitations in coverage, and whether the coverage applies to any car rental agency.  Bear in mind, certain credit cards may limit the amount of days, or the type or class of car you can rent.  Still other cards require that you pre-enroll with their rental car insurance program.

Diners Club and American Express both have rental car collision damage coverage; they merely require that you decline the offered insurance, and sign or initial the declination statement.  It’s important to note, that collision damage insurance still leaves you exposed to property damage to other individuals or vehicles as well as bearing the cost of injury to yourself.  While you might think it would be a good idea to have additional coverage, by accepting the car rental insurance you invalidate the free one provided by the credit card company.  In most instances, you should also be aware that you must pay the entire fee with a single card; you cannot split between them.

If either of those options is not viable for you, and you think you might want to accept the rental agency’s insurance, you might want to think again.  Often, that insurance provides coverage against rental car theft, but does not include the contents of the car, and there may be specific exclusions under certain circumstances.

A final option is to purchase non-owners car insurance.  This is ideal if you don’t own a car but regularly rent or borrow a car.  Non-owner policies vary among the providers, but generally include liability coverage, reimbursement for medical payments, and uninsured or underinsured motorist coverage.  It’s a very good alternative to purchasing rental car insurance.

Your first move should be to call your current insurance provider, and discuss with them your individual and business requirements.  You may be fortunate and learn that your limited business use is covered by your personal policy.  If not, your agent will be able to tell you if a rider to your existing policy is available, or if a commercial car insurance policy should be purchased. 

The deciding factor which will determine whether or not you need to get a commercial car insurance plan, or purchase a rider that adds business coverage to your personal auto insurance is the vehicle’s primary usage.  In general, insurance companies classify usage into three categories:  Commuter, Pleasure, and Business.  If the car is in use for business or commercial purposes more than 50% of the time, then that is the usage determination.  Driving around making sales calls for part of the day may be alright, but if you derive “direct” compensation, i.e. use it for deliveries or as a livery service, then you’ll need commercial coverage.

Commercial car insurance isn’t much different than regular personal car insurance, basic coverage includes liability, comprehensive and collision, bodily injury and medical payments coverage, as well as cover for uninsured and underinsured motorists.  Some commercial policies also include extras such as rental car reimbursement and towing.  The price differential isn’t that tremendous, either; commercial insurance typically ranges between 10% and 20% higher than private auto insurance, depending on the kind and amount of driving that you do.

Bear in mind, commercial car insurance premiums will vary in price depending on the provider, so do your homework and shop around for the best price and best service.  For the small additional cost of a commercial policy or commercial rider to your personal coverage, you’ll have gained a great deal of peace of mind, while you’re driving around on business.

So, what that means, despite claims to the contrary and disparaging murmurings of “Women drivers,” women are statistically less risky, i.e. safer, drivers than their male counterparts.  Why this might be so, is anyone’s guess.  It’s been variously attributed to women being the “gentler” sex, more cautious, maternalistic, calmer, etc.  All or none of these may apply to any particular female, it’s very individualistic.

From an insurance standpoint, though, insurance rates for women are lower because of several factors:

·                     Women drive less than their male counters; they spend less time behind the wheel, and they put less mileage on their car annually.

·                     Women are involved in half as many accidents as men, and the majority of those accidents are committed at lower speeds and result in less property damage or bodily harm.

·                     Women drivers commit far fewer crimes involving a car, than do their male counterparts.

·                     Women tend to drive at lower speeds, and obey vehicular laws.

·                     Women typically pass their driving licensing examinations, both written and practical, on the first attempt, whereas fewer of their male counterparts succeed the first time.

Does that imply that women are perfect?  Close.  But as it relates to driving, no, women have their little foibles just as men do.  Many stay-at-home moms who get behind the wheel of their mini-van find themselves in minor accidents, but these accidents can usually be attributed directly to distraction from the vehicle’s occupants.  Unfortunately, there is also an alarming increase in the number of women drivers who have become as aggressive as the boys, and engage in such risky actions as tailgating, speeding and improper overtaking.

It is very likely that, in the not too distant future, the disparity between the car insurance rates for men and car insurance rates for women will narrow significantly.  No doubt, it will be attributed to a noticeable, statistically verifiable upward trend of women spending more time behind the wheel; driving for longer periods of time and over longer distances than previously seen.

Driver Education Classes
Most high schools offer these classes as part of the curriculum; if not, enroll your child in a licensed driving school, where they will learn the theoretical and practical aspects of safe driving.  Many insurance providers will provide a discount for enrollment in such classes.

Add Your Teenager To Your Existing Policy
A separate teenager-based policy tends to be more expensive; by adding another driver to your own policy you also are able to enjoy any applicable discounts.

Be A Good Role Model
At all times, even when your novice driver isn’t with you, stay within the speed limit, obey traffic regulations, don’t drive recklessly, and be courteous to other drivers and pedestrians.

Be Mindful Of The State Laws For New Drivers
Many states have implemented driving restrictions for teenage and new drivers, including the hours that they are allowed to drive continuously, and no night time driving.  If you feel that your state laws are inadequate, you can make your own restrictions, such as no driving with other teenagers in the car, and no mobile phone conversations while driving (which may or may not be against state law, in any event).

Empower Them
Whether by paying for it directly, or through some form of barter system that you and your child have agreed to, they should share the burden of buying gasoline, especially if they use the car for their own personal enjoyment, as opposed to running errands for you.

Provide An Incentive For Good Grades
Some insurance companies offer discounts for a high GPA or straight A’s on a report card.  Don’t forget, cash in itself is also a strong motivator, after all gas isn’t cheap anymore.

Parents probably already know that historical data proves that drivers within the 16 to 25 age group, in general, get into significantly more accidents and file more insurance claims than do “mature” drivers, who are older than 25.  That’s why car insurance rates for teenagers are higher than every other age group.  And it only takes a single claim to skyrocket your current insurance premiums, so instill in your teenager the importance of safe driving, and what to do if they should get into an accident. 

Because of the uniqueness of a collector car, the insurance company may impose a significant number of restrictions, which may vary from company to company.  In general, they include:

·                     Driver age requirement – the insured driver must be at least 25 to 30 years of age, and must have a clean driving record.

·                     Mileage limitation – collector cars are prohibited from being driven more than a specific number of miles in a given year, typically starting at 2,500 miles.

·                     Storage requirement – collector cars are required to be adequately garaged or stored.

·                     Commercial use restrictions – transportation of goods and/or passengers, or any other commercial purposes is restricted.  Collector cars to be driven only for pleasure and are of short duration; longer excursions are permitted provided the destination is a collector or club event for exhibition of the vehicle.

·                     Additional vehicle requirement – a collector is required to prove ownership of a second vehicle for day-to-day driving use, thus ensuring the collector car is not regularly used.

Certain components of the custom car insurance are similar to those of regular policies, namely, medical coverage, bodily injury, liability, etc.  As regards the property value of the insurance, there are three different types that a custom car collector should be aware of, but in reality, only one of which should be considered.

·                     Agreed Value – An Agreed Value insurance policy is the ultimate in protection for the classic car owner.  The insured and the insurance company agree to a value, which is based on fair market conditions; and the insured pays a premium based on the agreed value.  Changes can be made on an annual basis, by policy endorsement.  This type of policy takes into account the fact that custom cars appreciate, rather than depreciate.

·                     Stated Value – This type of policy permit the policy holder to “state” a value that is generally higher than the “book” value of the vehicle, but which may not be the “actual” value of the custom car, since the insurance company generally only pays “up-to” the stated value, and not beyond it..

·                     Actual Cash Value – This type of policy is not desirable to a custom car collector, and should be avoided.  The insurance company’s adjustor will ultimately make the decision as to the value of the car at the time of the loss; the “book” value of the car is used, which is inappropriate for custom cars, which have appreciating values, rather than depreciating worth.

A collector car may be your most important investment, but collector car insurance should be the second most important.  When you consider the joy you derive from owning a collector car; you don’t want to save a few pennies now, at the risk of losing a lot of dollars if the unimaginable occurs.

How do you do that? Let’s start with the easy way.

InsureMe.com will do it for you; you simply fill out a questionnaire about your needs, your demographics and the vehicle and the website checks their database, and provides you with a rubric of insurance companies, clearly showing apples to apples values, based on the criteria you entered.

What you want to compare are the categories, such as deductible, comprehensive, liability, uninsured and underinsured motorists and passengers, property damage coverage and exclusions. You want like to like comparisons of the category, and then you want like to like comparisons of the amounts.

If you’ve got individualized quotations, you can make your own chart and compare the auto insurance rates easily. Don’t let it overwhelm you; it doesn’t take an engineering degree, just common sense. You make price comparisons all the time when you do your grocery shopping, think of it in the same terms… how many ounces in the can, Arabica beans to Arabica beans, fine grind to fine grind.

One thing that may not come up on the cost comparison analysis, but you should take a few minutes to find out for yourself, is the rating of the insurance company itself. While the insurance industry is highly regulated on the state level, there are very good companies and there are notoriously bad companies.

There are several rating institutions such as A.M. Best and J.D. Power and Associates that will give you insurance company ratings. The higher the rating, on whatever scale they use, the more comfortable you should feel with an insurance company, and their ability to pay a claim
Your auto insurance comparison of price and service will range from very low to very high, with plenty of variety in between.

The best price may be what influences you, in the end. You should understand, though, that what you gain in savings, you may lose in customer service. If you were in a car accident late on a Saturday afternoon, how happy would you be if you called your insurance company and got a recording that said, “Our office is now closed? Please call again during regular office hours.”
Would it still seem a good value if you had to wait until Monday morning to speak to a real live person?
Ultimately, you get what you pay for.

The Internet brings to your fingertips access to almost all of the 2,500 insurance companies, and from one of them you will no doubt find affordable auto insurance. That's not an oxymoron, by the way. Competition has resulted in premiums and prices dropping, while overall customer satisfaction has improved. It's simply because the insurance companies know that it's now too easy for a customer to switch carriers, if they're not happy or find a better deal elsewhere.

Even if you think you've got great car insurance rates already, it doesn't hurt to shop around for a better deal. You can change your insurance as often as you want, when you find a better deal or if your personal circumstances have changed that will change your coverage needs. One thing to bear in mind, if you are changing auto insurance companies, is never allow an old policy to lapse without ensuring that your new coverage has been activated. In plain language, the insurance company will consider you a (irresponsible) high risk individual, and your premiums will increase, and worse than that, it's reported to the credit reporting bureaus which can result in you having higher interest rates on credit cards and loans.

Whichever insurance company you choose, be sure that you haven't traded off a great price with a risky company. It won't be worth a few dollar savings for poor customer service or claim denial. You can verify your potential insurer's rating through services such as A.M. Best or Standard and Poor's which evaluate and rank each insurance company based on their financial stability. Good auto insurance ratings aren't a guarantee, but they go a long way in helping you determine who will do the best job for you. If you want to know where your insurance company stands in the customer service satisfaction arena, check with JD Powers and Associates.