Car Insurance - Top Insurance Companies

In many jurisdictions it is compulsory to have vehicle insurance before using or keeping a motor vehicle on public roads. Most jurisdictions relate insurance to both the car and the driver, however the degree of each varies greatly.

A 1994 study by Jeremy Jackson and Roger Blackman[1] showed, consistent with the risk homeostasis theory, that increased accident costs caused large and significant reductions in accident frequencies.

 Australia

In South Australia, Third Party Personal insurance from the Motor Accident Commission is included in the licence registration fee for people over 16. A similar scheme applies in Western Australia.

In Victoria, Third Party Personal insurance from the Transport Accident Commission is similarly included, through a levy, in the vehicle registration fee.

In New South Wales, Compulsory Third Party Insurance (commonly known as CTP Insurance) is a mandatory requirement and each individual car must be insured or the vehicle will not be considered legal. Therefore, a motorist cannot drive the vehicle until it is insured. A 'Green Slip,'[citation needed] another name CTP Insurance is commonly known by due to the colour of the pages the form is printed on, must be obtained through one of the seven main insurers in New South Wales.

 Canada

Several Canadian provinces (British Columbia, Saskatchewan, Manitoba and Quebec) provide a public auto insurance system while in the rest of the country insurance is provided privately. Basic auto insurance is mandatory throughout Canada with each province's government determining which benefits are included as minimum required auto insurance coverage and which benefits are options available for those seeking additional coverage. Accident benefits coverage is mandatory everywhere except for Newfoundland and Labrador. All provinces in Canada have some form of no-fault insurance available to accident victims. The difference from province to province is the extent to which tort or no-fault is emphasized.[2] Typically, coverage against loss of or damage to the driver's own vehicle is optional - one notable exception to this is in Saskatchewan, where SGI provides collision coverage (less than a $700 deductible, such as a collision damage waiver) as part of its basic insurance policy. In Saskatchewan, residents have the option to have their auto insurance through a tort system but less than 0.5% of the population have taken this option.[2]

 Ireland

The Road Traffic Act, 1933 requires all drivers of mechanically propelled vehicles in public places to have at least third-party insurance, or to have obtained exemption - generally by depositing a (large) sum of money with the High Court as a guarantee against claims. In 1933 this figure was set at £15,000. The Road Traffic Act, 1961 [1] (which is currently in force) repealed the 1933 act but replaced these sections with functionally identical sections.

From 1968, those making deposits require the consent of the Minister for Transport to do so, with the sum specified by the Minister.

Those not exempted from obtaining insurance must obtain a certificate of insurance from their insurance provider, and display a portion of this (an insurance disc) on their vehicles windscreen (if fitted). The certificate in full must be presented to a police station within ten days if requested by an officer. Proof of having insurance or an exemption must also be provided to pay for your motor tax.

Those injured or suffering property damage/loss due to uninsured drivers can claim against the Motor Insurance Bureau of Ireland's uninsured drivers fund, as can those injured (but not those suffering damage or loss) from hit and run offences.

 South Africa

South Africa allocates a percentage of the money from gasoline into the Road Accidents Fund, which goes towards compensating third parties in accidents.[3]

 United Kingdom

In 1930, the UK government introduced a law that required every person who used a vehicle on the road to have at least third party personal injury insurance. Today UK law is defined by The Road Traffic Act 1988, which was last modified in 1991. The act requires that motorists either be insured, have a security, or have made a specified deposit (£500,000 as of 1991) with the Accountant General of the Supreme Court, against their liability for injuries to others (including passengers) and for damage to other persons' property resulting from use of a vehicle on a public road or in other public places.

The minimum level of insurance cover commonly available and which satisfies the requirement of the act is calledthird party only insurance. The level of cover provided by Third party only insurance is basic but does exceed the requirements of the act.

Take advantage of ways to save on auto insurance

here are proven ways to save money on auto insurance, the Insurance Information Institute said in an e-mail. Dropping necessary coverage should not be one of them. 

Shop around: Get at least three price quotes. Call companies directly or access their Web sites. The Oklahoma Insurance Department has an online guide, "Choosing your automobile insurance policy" at tulsaworld.com/ChoosingAuto. This includes a "rate table" for 19 major insurance companies serving Tulsa — from Allstate to USAA Casualty — in five categories: "16-year-old driver, no accidents or moving violations in past three years" to "70-year-old driver, no accidents or tickets in past three years." 

Higher deductible: Your deductible represents the amount of money you pay before your insurance policy kicks in when you have a claim. By requesting higher deductibles, you can lower your premium. Raising your deductible from $250 to $500 reduces the cost of collision and comprehensive coverage up to 30 percent. Raising it to $1,000 saves 40 percent. 

Check insurance before buying a car: Premiums are partly based on vehicle sticker price, the cost to repair it, its overall safety record and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft: air bags, anti-lock 

brakes, daytime running lights and anti-theft devices. Favorite theft targets cost more to insure. Information to help you select the car to buy is available from the Insurance Institute for Highway Safety at tulsaworld.com/InsuranceRisks. 

Reduce old car coverage: Drop collision and comprehensive coverage on older cars. It might not be cost-effective to insure cars worth less than 10 times the amount you would pay for coverage. It makes no sense to pay comprehensive or collision on a car worth less than $1,000, as claim payments would not substantially exceed your premiums minus your deductible. Banks and credit unions can tell you the worth of a car by its age, or you can look it up online on the Kelley Blue Book attulsaworld.com/BlueBook. 

Cover home and auto with same insurer: Most insurers give discounts to customers buying two or more types of insurance from them. Reductions also apply to customers insuring more than one vehicle with the company. Insurers also reduce premiums for longtime customers with good claim histories. 

High FICO score: A good credit score lowers premium costs and vehicle financing fees. Using credit ratings makes insurance rates more accurate, fair and objective. Drivers with long, stable credit records have fewer accidents than drivers who don't. 

Discounts: Insurers offer discounts to accident-free policy holders with no moving violations, for driving fewer miles than the national average, for taking defensive driving courses and to young people with good grades.

Car insurance

If you run a car you have to insure it - that's the law. The type of insurance you get varies according to the extent of protection it provides and how much it costs you.

The costs

The price of insurance can add a lot to the cost of motoring so it's worth knowing the factors that affect the premium you are quoted. Shop around and compare quotes from different insurers. They base their premiums on their claims experiences, which naturally differs.

One company may see your area as higher risk than others. One may charge more because of your occupation. Shopping around on the internet makes it even easier because you can quickly see the effect of, for example, accepting a larger excess.

The starting point is the type of car you want to insure. There are many different insurance categories, with price, performance, and the cost of replacement parts the main factors that dictate the one your car falls into. Driving a smaller car is the best way to cut the cost of insurance.

Your age, sex and address all affect the price you are quoted. Young male drivers generally are charged the most, while women in their 50s pay the least. And you will usually pay more if you live in a city rather than in a rural area. Parking your car on the street overnight, rather than in a garage, will also mean higher premiums.

It is possible to make your insurance cheaper by increasing the 'excess' amount on the policy. This is the amoung of money that you will have to pay towards repairs before the insurer pays out. The higher the excess, the cheaper the premium.

The best time to look for car insurance is when you are due to renew your current cover. Cancelling a contract when it still has time to run is likely to incur a penalty charge. However, it can still be worth switching insurer if the savings are greater than the penalty. See the section on getting the best deal below.

You may be given the option of a payment plan to pay your car insurance premiums. These are basically a loan from the insurer that you then pay back in monthly instalments. The insurer won't shout about it, but these plans can have punishing interest rates. They may be offered on a 0% interest basis, or you could investigate the possiblity of using a 0% credit card with regular repayments to cover the cost. Otherwise, it is best to pay for insurance up front.

High risk categories

Your age, sex and address all affect the price you are quoted. Young male drivers generally are charged the most, while women in their 50s pay the least. And you will usually pay more if you live in a city rather than in a rural area. Parking your car on the street overnight, rather than in a garage, will also mean higher premiums.

Some insurers might class you as higher risk if you are a sports professional, entertainer, barman, chef or builder, among other occupations. But you may be able to avoid having your premium loaded by shopping around. Some insurers specialise in covering people traditionally regarded as higher risk, or non-standard. Even if you can't avoid having your premium loaded, the extra you are charged is now typically in the region of 10%-15%, down from 30% or 40%.

If you suffer from a health condition that could affect your ability to drive, including epilepsy, vision impairment, certain heart conditions or sleeping disorders, or if you are taking any medication that could do the same, you must inform the DVLA. If you don't, you could be charged with a criminal offence.

Get the best deal

If you want to compare several insurers to find the best deal you can use an online comparison website. We have one here at This is Money.

Unfortunately, searching just one site will not guarantee that you are seeing all the policies available to you. There are several comparison sites out there and each of them competes to compare the widest range of insurers, but no one site has them all.

Additionally, some insurers will not be displayed on any comparison sites.

As a loose guide, we would recommend that you search the following comparison sites to ensure you a comparing most of the car insurance market:

Moneysupermarket (Moneysupermarket powers the This is Money car insurance finder.) 

GoCompare 

Conparethemarket 

Confused 

Uswitch

Each comparison site should only take a few miutes to generate a quote for you, so it is worth checking them all.

Finally, as well as the comparison sites, get quotes directly from Norwich Union and Direct Line - two insurers that are not found on comparison sites but who are known to provide competitive quotes.

Insurers will often offer discounts on their prices or special deals that only run for a short time. It may be that an insurer is offering to beat your renewal quote, or is offering to insurer your for 12 months for the price of 10. Keep an eye out for any deals.

How the no claims discount works

You typically get a 30% discount after one year of claim-free driving, rising to 65% after four or five years. But companies vary. Some go up to a 70% maximum while others specialising in younger drivers will give higher discounts at an earlier stage.

Many insurers now offer the opportunity to pay a bit more to protect your no claims bonus. The rules vary but you may be able to make two claims in three years, for example, before your bonus is affected. Protecting your bonus will not stop your insurer from hiking up the premium at renewal following a claim. But at least you won't lose your no claims bonus on top.

Making a claim does not automatically mean you lose your discount. It depends whether the claim is a 'fault' or 'not fault' claim.

This is not just a question of whether or not you were to blame for the accident, but depends on whether your insurer can recover all its costs from someone else.

For example, if you skid on black ice and hit a wall, your claim would be classed as 'Fault', even though you were not to blame, simply because your insurer can't recoup the cost of fixing your car from anyone else.

Where another driver is involved, unless it can be proved beyond doubt that the other driver was to blame, the two insurers will often settle a claim on a 50:50 or 80:20 basis. This means both drivers will lose some of their no claims bonus. With most insurance companies, you will lose two years of no claims bonus if you have a fault claim.

Be warned that it really is up to the insurer to decide whether to uphold your no claims bonus after a claim. It is unlikely that you will any contractual rights to reverse your insurers decision if you have made a claim and the bonus is removed. Indidivual insurers may be willing to listen so it can be worth a polite letter.

Making a claim

If your car is stolen, report it to the police first and then your insurer. You will have to wait a while because many cars are stolen by joyriders and later recovered.

If it is never found or is a write-off, then you may face another problem. Your car may have been in good condition with a low mileage, and the amount the insurer gives you may not allow you to replace it with an equivalent machine.

In that situation, get hold of a car buyer's guide - Glass's Guide is the most frequently used. If its tables support the insurance company, you'll find it hard to get a better offer, even if the car was in good condition.

If you have been in an accident and the other driver was uninsured, personal injury claims and some damage claims will be met by the Motor Insurers' Bureau. You can claim at www.mib.org.uk, or by calling 01908 830001.

This is financed by a levy on all insurance companies and was set up to compensate victims who would otherwise lose out through no fault of their own.

It will also pay out if you are hit by a driver who has bought insurance from one of the fly-by-night unauthorised companies that offer cheap insurance. If you find yourself in this position, tell the police.

Churchill car insurance offers free breakdown cover

Churchill car insurance is helping consumers to keep their costs down by offering free breakdown cover with each policy. 

All new Churchill car insurancecustomers who buy a policy before July 31 2009 will get free breakdown cover thrown in.

Drivers who are protected by Churchill's car insurance policy will not be left stranded if they should break down, as not only will they get roadside assistance, but rescue cover is also included. 

As the recession rages on, squeezing household finances, many are looking for ways of cutting back on their outgoings, and research has shown that insurance is sometimes on the first costs to be cut.

But, Churchill hopes that offering free car breakdown cover will encourage people to retain their insurance policies, because they might turn out to be more valuable than ever in financially difficult times when money is tight. 

Breakdown services and recovery home or to the nearest garage can be costly, but with Churchill car insurance it will be free, so cash-strapped drivers will not have to worry about how to pay for the tow truck. 

Commenting on the new offer, Tony Chilcott, head of Churchill car insurance, says: "In a recession, people should look for value and service. As a Churchill customer, any repairs undertaken by our repair centres will be guaranteed for five years and if you breakdown, a recovery operator will be with you in just under 30 minutes."

Car insurance from Churchill also offers named drivers the opportunity to earn their own NoClaims Discount, which, Mr Chilcott says, could be invaluable to households which are having to cut down to one car. 

Common Car Insurance Mistakes

When was the last time you checked out your auto insurance policy?

If you can't remember, it may be a good time to review your policy, because you may notice a mistake.

Insurance experts say there are some common mistakes that could cost you in the long run.

Without uninsured motorist coverage, officials say you will be required to pay for repairs out of pocket it you're hit by an uninsured driver or a hit-and-run driver. Keep in mind, uninsured driver coverage could raise your premiums by as much as 10 percent, but it may be worth the cost.

Also, if you're shopping for a new car, check with your insurance company before signing off on the deal. Things like safety features, reparability and even the likelihood of your dream car being stolen may affect your rates.

Another mistake is having an older car that you could be paying too much collision coverage. Also, officials say to make sure you check your vehicle's blue book value to see what it's worth.

Car insurance bill passes Senate

Thousands of car owners could get relief from a recent spike in their insurance bills under a bill approved by the Senate on Monday night.

The legislation, passed 48-0, would eliminate a requirement that auto insurance policies provide the same level of coverage for uninsured and underinsured motorist protection that they do for liability coverage.

Many car insurance bills rose on Jan. 1 because of a statewide rate increase, but thousands of those premiums also jumped because of a twist in a new state law. The law requires that all policies include coverage for medical expenses and other costs from accidents in which the car owner is hit by another driver who has no insurance or insufficient insurance.

Roughly 12 percent of drivers are uninsured, according to the Department of Insurance. Car owners cannot renew their auto registration each year without proof of insurance, but some let the insurance lapse in between registration renewals.

"Unfortunately the [new law] had an unintended consequence," Sen. Dan Clodfelter, a Charlotte Democrat and chief sponsor of the bill, said during the vote Monday night.

The catch was that the new law required that the amount of coverage, the maximum payout, would be the same whether it's to the policyholder for injuries from being hit by an uninsured driver or to another driver when the accident is the policyholder's fault.

Some owners didn't need that much uninsured/underinsured motorist coverage, because their health insurance or other means would take care of medical bills.

"They had to either pay a lot more than they wanted to pay for uninsured motorist coverage," Clodfelter told senators, "or, if they wanted to keep their premium down, they had to lower the coverage on their liability."

Policyholders could choose the level of uninsured/underinsured coverage that they want under the bill approved Monday night.

The number of car owners who saw a rate increase because of the new requirement for equal levels of coverage is unclear. One indicator is that about 70,000 customers of Nationwide, the largest auto insurer in the state, got bigger insurance bills because of the law. The average increase was about $22 for the year, and the largest jump was about $120 for the year, according to a company spokeswoman.

Those customers, though, were a small percentage of overall customers. About 99 percent of Nationwide's customers already carried uninsured/underinsured coverage, and 91 percent maintained equal levels of coverage.

The bill that passed Monday, if next approved by the House, would take effect Oct. 1.

10 Tips to Help You Save on Auto Insurance

. Drive less and earn a discount

If you drive less than 7,500 miles per year, you may qualify for a low-mileage discount on your auto insurance. And, some companies offer a commuter discount if you use public transportation during the week.

2. Don't use your car for business purposes

Some insurance companies will add a "business use surcharge" or increase your auto insurance premium as your annual mileage increases. But, if you must use your car for business, be sure to tell your company, so that your daily business travel is covered.

3. Increase your deductible

You might save as much as 10 to 15% if you increase your deductible from $250 to $500. But, remember that you'll be required to pay the larger deductible upfront if you have an accident.

4. Keep an eye on your credit report

Your credit history is one of many "risk factors" that most auto insurance companies evaluate when setting rates, in states where permissible by law. Paying your bills on time and maintaining a solid credit history will help keep your home and auto insurance rates lower.

5. Drive safely

You may be eligible for a price break on your car insurance policy if you have no accidents or traffic violations for a specified period, usually three years. Even a single speeding ticket can increase your auto insurance rates 5 to 10% depending on your state.

6. Buy a low-profile car

Cars are rated on a risk scale for auto insurance purposes. In general, sports cars and other high-performance vehicles are higher risk because they are common targets for thieves, and statistically, the people who own them tend to drive more recklessly.

7. Move

If you live in a rural community with little crime and traffic congestion, your auto insurance premium will generally be lower than if you live in an urban area where your car is more likely to be stolen, vandalized, or involved in an accident.

8. Keep your car in a garage

Cars parked in garages are less likely to be stolen, vandalized, or struck by other vehicles. And, you may get a slight premium reduction.

9. Install safety or anti-theft devices

Auto Insurance companies offer discounts for anti-lock brakes, automatic seat belts, airbags and more. Car alarms and tracking systems may also get you an insurance discount.

10. Shop around

OK, it might go without saying, but your current auto insurance company might not be the best one for you in the future! We recommend researching your options 30 to 45 days before your current policy is set to renew, especially if you have not shopped recently. Fact: Insurance.com customers reported annual auto insurance savings of $538 a year in April 2009. Your savings may vary.

Insurance.com is the top national online auto insurance agency in the country, offering comparison car insurance quotes you can buy online or by phone. www.insurance.com.

Reduced home insurance or car insurance cover could be devastating

BIBA (British Insurance Brokers’ Association) has warned that customers reducing theirhome insurance or car insurance cover to save money during the recession could be devastating.

According to BIBA research, over 20% of insurance brokers have found that cutomers taking out car insurance or home insurance have reduced their level of insurance cover during the recession.

BIBA Chief Executive, Eric Gailbraith, said ‘The economic downturn generates an increased focus on cost’ and added we ‘are warning consumers about the dangers of reducing cover without guidance from a broker.’

Customers are reducing their home or car insurance cover primarily by

• reducing the sums insured
• increasing the excesses
• reducing non-essential cover and add-ons

Customers need to be very careful about reducing their home insurance or car insurance cover.

Clearly it is important that you have insurance that meets your needs, otherwise should you need to make a claim you face the possibility of it not being met, partially or in full, by your insurer.

Insurance brokers can provide you with assistance or there are many websites that you can use to get an insurance quote.

As well as companies such as Direct Line or Norwich Union (soon to be AVIVA), there are insurance comparison sites, such as GoCompare and MoneySupermarket.

Fee in Florida budget may boost car insurance costs

A fee increase tucked into the state budget has Florida insurers in a tizzy. And it could boost car insurance costs for consumers.

The state budget -- which legislators will vote on today -- would increase certain Department of Highway Safety and Motor Vehicles fees by more than three-fold. The fees are for drivers' history and crash records, which insurers pull for every driver in a prospective customer's household.

"This is how we find out if someone has a revoked license, DUI, several speeding tickets, etc.," Allstate spokesman Nick Halliwell said in an e-mail. The higher fees have "the potential to further increase our costs of doing business."

Those costs ultimately get passed to customers across the country, Halliwell said.

The records are also used to estimate insurance policy costs so the move may deter some insurers from providing quotes by phone, which restricts customers shopping around for policies, said William Stander, assistant vice president of the Property Casualty Insurers Association of America.

Economic Survival Guide: Drive Down Car Insurance

You depend on it when you're on the road. But are you paying too much for car insurance?
Menands resident Diane Miller thought so. She's took a class at the mall... to save.
"I would say I've done it three times and it's every three years. You get 10% off," said Miller.
"How many of you aware that in Schenectady County it's a $500 fine to text?" asked Defensive Driving Instructor George Plante, to a class of students. Plante was teaching at Right Way Driving Center, located at Colonie Center.
It's a six hour defensive driving class, that saves you ten-percent on insurance premiums, three years in a row. Plus, students who complete the class can get up to four points off their licenses, from traffic tickets.
"Like if you pay $800-a-year, you're saving eighty dollars a year. Times three. That's $240 dollars. It's worth it," said Miller
So if you can save 10-percent by taking a class, what else can you do to drive down insurance costs?
News Channel 13 reporter Beth Wurtmann took her policy to Liberty Mutual, where she's been a customer for years.
"Alright, let's take a look here," said Albany Branch Manager Dorothy Mobley, as she reviews the policy.
Mobley finds that Wurtmann was already getting about $500 in discounts, for things like having passive restraints, anti-lock breaks, and being considered a safe driver. Another discount was for belonging to a college or union affiliated with the insurer. And she's getting a multi-policy discount, for having home owners insurance with the company too.
But then, Mobley found more.
"Consumers can be missing out on available discounts they're not aware of," she said.
Mobley added that if Wurtmann took that defensive driving class, paid a bill electronically, and raised her deductibles slightly higher, she could save $390-dollars per year MORE.
But what about those ads for cheaper car insurance? Like Geico, that advertises that it can save consumers 15-percent on their policies after fifteen minutes for a quote.
Wurtmann did get a quote from Geico, and although the company would only guarantee a rate for six months, it priced out at hundreds of dollars less than her current policy.
But Mobley said, consumers have to consider a number of factors besides price, like face-to-face communication with their agents, and the level of customer service.
"Do you want the bottom line basic low price or are you looking for a combination of the best price, product and the customer service? What is it you want?" she said.

Saving A Buck On Auto Insurance

With money tight, we wanted to know if local drivers are cutting back on state required auto insurance coverage.
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Area insurance agents say they haven't seen a drastic increase or decrease in business. But they do say more motorists are revisiting their auto insurance plans, looking for ways to cut back.
State Farm Agent Larry Ice II says he's not sure how much the economic downturn has effected business because State Farm doesn't track why clients may drop a policy.
But he has noticed more financially strapped customers looking for a discount.
“There’s a lot more focus on saving money,” said Ice.
He says foot traffic is increasing at his small business, as consumers become more financially conscience.
“And I think that overall that goes from health insurance, auto, home every type of insurance,” said Ice.
Ice says he’s seeing a new and surprising trend; more clients are purchasing health insurance policies.
“People are a lot more concerned about what might happen if my husband losses his job, or if I loss my job, I might not be able to continue that health insurance coverage,” said Ice.
But the financial concern isn’t limited to auto and health insurance.
Indiana’s NewsCenter spoke with several area auto repair shops that say customers are waiting longer to get an oil change.
But what's most concerning, auto experts say more motorists are waiting until the last minute to repair their breaks.
Auto experts warn that the metal on metal grind could become dangerous not only for the driver but also other motorists.
Ice says his company recognizes the financial strains on families and is taking steps to speak with clients about ways they can reduce their rates without lowering their coverage.

Progressive Auto Insurance Shares Car Insurance Tips

Use these car insurance tips and hints from Progressive to save money and select the right coverage. Plus, Progressive says it will include all available auto insurance discounts when you get a quote.
Savvy consumers know it pays to do the legwork and shop around for car insurance. Considering auto insurance prices for a six-month policy can vary greatly between companies, why not take the time to compare rates for several companies? To help you in your quest for car insurance, we've compiled a few tips that can help you save money and make the right choices for your situation.
Before you get started, review your auto insurance coverages and keep your auto policy on hand to make fair comparisons to your current coverage. Then start shopping. Visit insurance Web sites and insurance agents/brokers and get quotes. Following are a few more shopping tips.