As an example of the problem, let’s look at the solar power market. If you live in a slightly better than average home, you are probably paying about $6,000 per year in electricity charges. A home solar-power system costs about $90,000 except the federal government is so keen to promote the use of solar power there’s a 30% subsidy. So the cost of the installation is about $63,000. The system has a life expectancy of about twenty years so, if you pay off the cost over ten years, you get free electricity for not less than 10 years. That seems like a good deal. Except very few people want to pay now to save money later. In fact, the majority will be looking for a no-money-down deal and reduced payment even though, long-term, this is a worse deal.

This unwillingness to invest in the future is what causes your insurance rates to keep on rising. Let’s take just one issue as an example. The insurance industry loses billions a year through fraud. Instead of spending money to put people and systems in place to reduce the fraud, the bill is simply passed on to us as higher premiums. But suppose your state used some of the taxpayer dollars to create a special task force to investigate insurance fraud. This force liaises with all the insurance companies, i.e. the computer systems are partially integrated so that the claims adjusters can refer suspected cases for investigation. Why use taxpayers’ dollars? Because fraud is a serious crime and, if there are going to be successful prosecutions, a dedicated and specially trained force is the best approach. You are worried this may cause tax increases but ask yourself which is better: that you should pay a little more in tax now if this reduces the level of fraud in your state and means your next auto insurance quotes come in at significantly reduced levels?

Just think how much of a deterrent more effective investigations would be. The first people tried and convicted are given media coverage as they go to jail. It only takes a reduction in fraud by a few hundred million, and we are moving towards a better country with less dishonesty and really cheap car insurance. Unfortunately, the politicians have no stomach for this type of policy because it does not deliver benefits to fit into the two-year electoral cycle. To keep their voters happy, they need results today so they will be re-elected tomorrow. If all the voters see is higher spending and only slightly reduced premium rates in two years, they may vote against the big-spending governments and demand the termination of all the special task forces.

In a way, we have all been conditioned to think of this damage as being mainly a property problem. We see all the pictures of the winds picking up buildings and leaving nothing but wreckage behind. When the twisters move through a town, entire neighborhoods are flattened. So we routinely reach for the homeowners insurance policy and start reading the small print to see whether we are covered. As an aside, the insurers have been getting more restrictive with their coverage as the number of wind-related events have been increasing. Premium rates have been rising fast when the homes involved are more prone to damage. This can be the obvious problems of mobile homes and trailers through to older properties where roof construction may not be as robust. You may benefit from asking a builder for quotes to reinforce your roof — discussing the plans with your insurer can bring the premium rates down so rebuilding can be a good investment.

Although buildings are static targets, not everyone can drive their vehicles out of harm’s way. There are three major source of danger for vehicles. The wind can literally blow a high-sided vehicle over. If you are overtaking a semi-trailer truck or a bus, you can suddenly find yourself caught in a trap as something falls on to or in front of your vehicle. Equally, once a tornado or windstorm picks up branches or debris, it has to come down somewhere. If you are driving when it hits, it can cause an accident. If you are parked, it can simply damage the vehicle in your garage or parked on the yard. Secondly, wind can move water. It can be rain, sleet or snow, or in a lake or the sea. This combination can produce flooding which can seriously damage modern vehicles with their electronic systems. Thirdly, windstorms like Santa Ana routinely cause wild fires.

This damage will not be covered by a liability policy. You need both collision and comprehensive cover to give yourself some protection from losses. But this is where the small print becomes important. The number of natural disasters this year is forcing insurers to reprice the risks of losses. This means next year’s auto insurance quotes will be higher and there will be more exclusions and limitations. So if you live in California or in the northern states where the winter winds may cause damage, now is the time to think carefully about precisely how much insurance you carry. Cheap auto insurance is not a good idea if you are at risk. This will only pay out in very limited situations. Aim for the best cover you can afford.

In a capitalist society like ours, we put a price on everything. If you want to drive a heavy car with a thirsty engine, are you prepared to pay more than $100 for a tankful of gas? For the record, the average price of gas and diesel has been at or around $4 for most of 2011 although the price of regular can be as low as $3.30 in some states. Similarly, if you want to drive a high-powered car with ferocious acceleration, are you prepared to pay the higher premium rates to insure it? So here comes the next big question. Are you prepared to fit new technology to your vehicle to tell your insurer when and how far you drive? As an aside, some insurers have bigger better black boxes also containing a GPS transmitter and equipment to monitor how the vehicle is being driven. All this information is transmitted to the insurer in real time so, if anyone wanted to know where you were, some insurers could give a precise location. This also provides actual evidence of law-breaking. At a trivial level, it records every time you go over the speed limit. Should you be involved in an accident where someone dies, the bigger systems record whether you braked sharply, swerved violently or did anything else unusual. Like the black boxes in an airplane, it would allow investigators to create a very precise model of how the vehicle was being driven when the death occurred. It could be the difference between your statement to the police being believed and a conviction.

One of the pioneers of this type of technology is Progressive Insurance and it has just released the latest analysis of driving habits compiled from the data it collects. As you will probably be aware, most insurers offer discounts if you prove you drive less than 12,000 miles per year. This discount was given to half the drivers. Similarly, the majority of drivers claim they never drive between midnight and 4 am — the most dangerous time on the roads. This is also confirmed by the technology. In other words, if you agree to fit technology supplied by Progressive or any of the other insurers, you will potentially gain almost immediate access to all the discounts based on low mileage, the time you drive and the safety of your driving. So, when you are working through the next batch of car insurance quotes, look for the pay-as-you-drive options. If you are prepared to sacrifice some of your privacy, the savings can be significant. As a good capitalist, does a price incentive change your behavior when you see the savings in your auto insurance quotes?

So let’s say you decide to make the long drive, here are a few basic precautions before you set off. First, the farther you are proposing to drive at a busy time of the year, the higher the risk of an accident. Sadly, the holidays bring out a lot of weekend drivers who suddenly switch from short runs to a long journey. They tend to lose concentration. Some even fall asleep at the wheel. So now is the time to think carefully about collision and comprehensive cover (assuming you don’t already have them), and check your health insurance to ensure there will be enough money to cover any visits to the ER out-of-state should you have an accident. That way, you can avoid unpleasant surprises if your journey is interrupted.

Now spend a little money on some routine maintenance. You trust your vehicle when it’s just running around locally. A long run is a whole different ballgame so check the tires and have the engine serviced. The last thing you want is a breakdown in the middle of nowhere when no local garages want to come out and rescue you. Remember to pack emergency supplies should you be stuck by the road in bad weather.

Now suppose you decide to rent a big comfortable people mover for the journey or you fly and rent at the airport. You need to think carefully about insuring the rental. The rental company must give you the basic minimum liability insurance for the state(s) in which you will be driving. Remember, most of these policies do not cover you if you drive into Canada or Mexico. Now the big decision. Even if you have a collision and comprehensive policy on your own vehicle that covers you when you drive a rental, you can find your premium rates climb if you make a claim. It therefore makes sense to buy the Loss Damage Waiver. This pays all the bills if the rental is damaged or stolen. Finally, check your homeowners insurance to see whether all your possessions will be covered in a rental vehicle. It’s probably better to deal with this before you confirm the rental agreement. Get auto insurance quotes for the different possible types of cover. If you are paying for the rental by credit card, there may be some auto insurance thrown in but check the terms and conditions carefully.

One of the ways in which you can follow the economic trend is watching secondhand prices for vehicles. When there’s a boom, people are willing pay the asking price on the used-car lots. Today, prices are bottoming out and starting to rise again as more people want something newer. New car sales collapsed in 2008. There was no credit and people were afraid of more debt. That meant most everyone was keeping their vehicles. Manufacturers found they could no longer afford all those tasty offers that would persuade people back into the showrooms. For the record, some 16 million new vehicles were sold in 2007. Only 11.6 million vehicles were sold in 2010. In turn, that meant the supply of vehicles traded-in dried up and secondhand dealers found they could not shift their stock. Those statisticians have been at it again and confirm the number of older vehicles on the road has been rising steadily. The average age of vehicles today is almost 11 years. Interestingly, a high proportion are gas guzzlers, i.e. very few people want to buy them secondhand. We’re more likely to buy a smaller, fuel-efficient vehicle today, so people are driving their older cars for longer and then throwing them away when it’s uneconomic to repair them.

So here’s the reality. For the last three years, secondhand prices have been falling but the cost of repairs has continued to rise. Indeed, because the dollar has fallen against many of the other world currencies, it’s more expensive to import spares from foreign manufacturers. So if you had an accident during this time, it was increasingly likely your vehicle would be totaled. Why is this? The decision by the insurer depends on the secondhand or fair market value of your make and model. The calculation is: fair market value + reimbursement of a rental replacement - any scrap value for the spare parts > the cost of repair. The figures don’t lie. More than half the vehicles damaged in routine accidents have been totaled, i.e. it’s cheaper for the car insurance company to write you a check. Although you can try negotiating with the claims adjuster, arguing your vehicle was beautifully maintained and worth repairing, it’s very difficult to argue with low secondhand values.

Even though secondhand values are starting to rise again for the smaller, less thirsty vehicles, the industry trend is still to total more than 50% of damaged vehicles. As to the effect on auto insurance quotes, it should keep them lower because, in all cases where the vehicle is totaled, the insurer saves money.

So how do the law enforcers react and what happens to your insurance? For these purposes, let’s assume you are caught doing more than forty mph than the limit allows and/or traveling more than one-hundred mph. The majority of states automatically treat anyone doing more than one-hundred mph as reckless. This brings you into the fine fine zone where your wallet is going to be hit for more than $1,000 in penalties and administrative charges. Obviously, there are no fixed rules about the scale of the fine. It will go up if you ignore school and construction zones. Similarly, the higher your speed in the relation to the speed limit, the higher the fine. Some states have a super-speeder tariff. But the real crunch comes if you’re charged with a misdemeanor or a reckless driving citation. In most states this features an automatic suspension of your license and points on your record. Acquire too many points and your license disappears for a year and more. This assumes the courts don’t decide to throw you in jail. This will be a certainty if you’ve been drinking or have drugs in your body. Otherwise you’d better hope the judge is in a good mood.

The insurer will react depending on the offense. A single speeding ticket with only few mph above the limit may not provoke any reaction. This can happen to anyone. But if you pick up a misdemeanor conviction and jail time, some insurers will cancel your cover. It all depends on how the insurer assesses risk. If this forms part of a pattern, you can expect the car insurance rates to go up dramatically, particularly for younger male drivers. Should you be labeled a high-risk driver and your policy is canceled, finding a conventional insurer to pick up your cover is going to be a challenge. You will be forced into the arms of the specialist companies or your state’s high-risk exchange to find cover. So, before you add extra weight to your right foot, think carefully about the impact on the next set of car insurance quotes.

Let’s start with the simple break down. There you are in a vehicle that’s immediately starting to cool. You say prayers of thanks for your foresight. You have boots and multiple layers of warm clothing in the trunk. You dress for survival and think about abandoning your vehicle. Except before you go, remember to call for emergency roadside service. Did you check whether your policy pays for this service? Some manufacturers include rescue as a part of the warranty for new vehicles. Now are you prepared to wait for rescue? It rather depends on where you are. In a city, it’s probably better to find somewhere warm to wait. Out in the country, it may be hours before anyone gets to you so, if you know there’s somewhere safe nearby, walk to it. Otherwise, did you remember to pack blankets? Should your vehicle be hit by someone else during this time, this will be covered by a collision policy. If there are thieves and vandals out in this weather, damage to your abandoned vehicle and loss of contents will be covered if you have comprehensive cover. As a final thought, if you do abandon your vehicle and the city tows you away as being illegally parked, you pay the fine out of your own pocket. Insurance does not cover citations.

In heavy snow or blizzard conditions, it’s easy to hit the curb. This is the same as a pothole in poor light. Most insurers will treat this as a collision and, if you have the cover, pay for repairs. But, before you take a final decision, get estimates for the repair. If it’s less than or about the same price as the deductible, you may prefer not to claim. As a final thought, suppose you lose control going down a slope and hit several parked cars. Remember it’s a criminal offense to drive away. Think of how you would react if you came back and found your vehicle damaged. It’s better to leave details of your name and insurer. Your liability cover will pay out for repairs to the owners. If you have it, collision cover repairs your own vehicle.

Closing the best deal depends on surveying the market, so get as many auto insurance quotes as possible and then check the terms of the policies on offer to ensure your winter driving risks are covered. Never assume the car insurance policy covers everything.

All the equipment used by the fire department has a cost starting with depreciation, through maintenance, and finally to the labor to deploy the equipment to the crash scene. When asked, most departments produce a cost-per-hour for dealing with the emergency call, allocating staff to the firetruck, ensuring all the necessary equipment is on board, the gas to power the truck to the accident, and so on. Needless to say, this is an expensive proposition even if there’s nothing for the men to do when they arrive. Indeed, they may actually arrive after the vehicles involved in the less serious accidents have driven away. This is not a criticism of the speed of the fire service’s response. Sometimes third parties call out the rescue services not being sure whether there will be a fire or there will be a need to cut people out of the wreckage. The same applies to ambulances and, to some extent, the law enforcement officers.

Whenever there are costs, the fire or ambulance services usually employ a statewide or national billing service. The arrival of the bills, often more than $1,000, is a shock. To many owners, this feels like extortion because of the implied threat to their credit score if payment is refused. They are unimpressed by the argument this is helping local governments keep services solvent without raising taxes. Worse, the majority of insurance companies refuse to pay them. Even the cost of ambulances is often disputed by the insurers. These public-spirited companies argue fire, ambulance and hospital departments are legally required to provide a free emergency service to the public. Any charges are nothing more than an unlawful excise tax. Never wanting to duck an argument, the public services reply an auto insurance company is contractually obliged to meet the liabilities of its insured. Trying to pass on these costs to the taxpayers is therefore unlawful.

Until we get a definitive court case to resolve this argument, you are left in the middle. If your insurer refuses to pay and the billing company insists, this is not a comfortable position. The best answer is to make a formal complaint to your state’s Attorney General and the Insurance Commissioner. Hopefully, they can resolve it between them. If you live in a state that allows billing, check the auto insurance quotes on this point before buying.

So let’s see how this would work on our side of the border. We start with the assumption that anyone convicted of theft would be restricted to liability cover. This would make it impossible to buy a vehicle with an auto loan because it’s a standard term of loans that the owner buys both collision and comprehensive cover. There are two questions arising from this. The first, is this a punishment? Under the Fourteenth Amendment, everyone is entitled to due process and so a state should not deprive a person of liberties and rights without a proper application of the law, usually through the courts where representations can be made. Obviously, the law currently permits a judge to confiscate a felon’s property and restrict his or her rights in various circumstances. But this will usually be restricted in time. Having the right to drive as an adult might be considered a right or liberty deserving protection. So states might breach the Fourteen Amendment if its lawmakers tried to remove the right without a trial, i.e. by denial of insurance. However, the Canadians do not intend to deny insurance altogether. It’s simply a denial of some benefits. If our lawmakers also allowed felons to buy liability insurance, this should not be unconstitutional.

Second, how will the thieves react? In theory, there should be no reaction. Like many others who are short of cash, they will buy the mandatory minimum and self-insure the cost of both medical treatment and repairing their own vehicle. There’s no reason to feel any more resentful. But that’s not the way car thieves think. They have already demonstrated a lack of respect for others’ property and so may be more likely to drive without insurance. As it is, many states are now reporting up to 20% of those on the roads are driving without insurance. If this approach was accepted on our side of the border, this percentage might increase which would not be good for us.

If too many people drive without insurance, the auto insurance quotes for all law-abiding citizens will rise. This is obviously unfair. So all states should do whatever they can to encourage everyone, even those convicted as car thieves, to obey the law and carry the mandatory minimum cover. Although this will not produce cheap car insurance, it will lower the premium rates and make cover more affordable.

This must trigger a small word of reassurance. Sites like this do not store any of your personal details. The way the survey worked was through a temporary modification to send an e-mail along with the quotes asking for the individual to call a toll-free number. Only those who volunteered were interviewed. The reason for this approach was to talk with people at the earliest stages of looking for quotes. Obviously shopping for insurance can be spread over weeks and involve several different methods of collecting information about what the market can offer.

The results are significant because it’s the first time a comprehensive survey has found a majority of responders relying entirely on the internet for information about insurance. Although it’s obvious the human agent was the only way of supplying information before the arrival of the internet, the rise of online power has been remarkable. If we take the popular interest as starting in 1995, it’s taken only 16 years for the culture of tens of millions of Americans to change in favor of automated systems. Of course, reducing the use of labor is a big saving for the insurance industry and some of the savings will have been passed on to us consumers, but the addition to the number of unemployed is not so welcome. It’s also led to a loss in overall satisfaction levels when it comes to claims handling. With insurers hiding behind call centers, the challenge is to find someone to talk with who knows what’s happening. When asked to rate their insurers, the companies with below average satisfaction levels included Esurance, Mercury, Nationwide, and Progressive.

The real benefit of sites like this is the treasure trove of information. You would have to talk with knowledgeable agents for days to extract all the information available on this site. Of course, it takes time to read all the articles, but the quality of information is high and justifies the effort. When you combine this with the free service to get auto insurance quotes, you cannot find better value when you are shopping around for the best value policy. That J D Power now confirms a general swing to online shopping means sites like this will grow in importance. Of particular note is the freedom to ask questions of our experts. If you cannot find the answer you are looking for in these articles, post your question for us to answer. All round, this is the best way of finding the most affordable auto insurance rates so far developed.