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12 secrets your car insurer won't tell you

articles.moneycentral.msn.com — Getting a good deal on auto insurance is hard enough. Keeping your premiums from rising? That can feel like playing a game where the rule maker refuses to tell you the rules.

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  • somespecial, on 10/12/2007, -1/+48Yeah, they won't tell you, because it's all common sense..
    • DiggingDeep, on 10/12/2007, -4/+24Common sense is expensive to some.

      My friend asked if he should take his computer to Geek Squad. /slap
    • trghpy, on 10/12/2007, -1/+12Too bad common sense isn't taught in schools any more.
    • Derrekito, on 10/12/2007, -3/+5Or Logic for that matter.
    • PleaseJustDie, on 10/12/2007, -1/+3Mine told me most those things, most of them were part of going over the policy and what was covered and what wasn't and what would happen when things happened. Its public knowledge and car insurance companies have never not told me this stuff.
    • akira117, on 10/12/2007, -1/+3Anyone know where to look up if a car has a good rating?
      Thats the part that interested me most (ex. like the xB vs a the tC)
      Sure for the most part it is common sense but I need specific details :P
    • DiggzDE, on 10/12/2007, -3/+1@somespecial: I completely agree. Everything I was reading I was thinking, "Um... isn't this all relatively known information?"

      I am a young college student who pays my own car insurance and I knew every single fact on that list. Sure insurance people won't tell you a lot of that stuff, but it is often because you should already know about it when looking into car insurance.

      This article should of been titled "12 things your car insurer won't tell you because you already know."

      I don't digg this and I even rated the article on the site at a 1.0.


      Also, with the fact about insurance rated car values, of course they have their own values as they will try to suck every extra penny and dime from you (they are a company afterall), but all you have to do is research your car value some and if you provide them a print out of the recommended kelly bluebook value or such, they will sometimes raise their initial bid.
    • johnpaul191, on 10/12/2007, -1/+4@Akira117
      unless you find a list somewhere, you can spend the time on a site that does instant insurance quotes (like progressive.com) and punch in different vehicles. i have done that when pondering a new (well, new to me) car. if you are indifferent between two cars, the insurance rate could make the difference.

      car insurers use all kinds of seemingly unrelated stats to try to best gauge insurance risks. one thing i have personally noticed is that some vehicles just have bad reputations. my current motorcycle is a 1982 bike, and back in the day was considered a risk of some sort. motorcycle insurance is cheap, but when i bought this 1982 bike my insurance went up 3x what i had been paying for my previous bike (that was only 3 years older with a smaller engine).

      compare a Triumph Daytona motorcycle to the relatively equivalent Japanese (Honda/Suzuki/Yamaha/Kawasaki) model and you will gag at how much more the Japanese bike riders pay for insurance. The people that buy that Triumph pay more for their bikes, and tend to be older and more responsible riders (in the eyes of the insurance companies). The Japanese bikes are also a lot more prone to theft. due to their popularity it is a lot easier to part them out than a Triumph that may have 10 siblings in the given state.

      my mom paid a good bit more for the insurance on her Chrysler Sebring then the larger Chrysler Concord she replaced. It seems the insurance company stats did not recognize the Sebring had just been changed to include a 4-door model (like she had bought) and they still saw it as a 2-door coupe (consider more "sporty"). the cars were very similar otherwise in terms of engine, airbags bla bla bla.

      like i said, if you are on the fence between two seemingly similar cars, it may be worth looking into the insurance rates. it is a lot more about the reputation of the car than you would expect (based on the driving habits of the people that generally buy it, or their likelihood of being stolen).
    • JohnboiWaltune, on 10/12/2007, -1/+313: MAKE SURE YOU HAVE RENTAL CAR INSURANCE ON YOUR POLICY!!!

      When you're in an accident, your car is generally in the shop for 1 week per $1000 of repairs. I got stuck with my car in the shop for 9 weeks and had to pay $1100 for a rental during that period. I didn't have any problems paying the $1000 deductible, but I was unprepared for how long my car would be in the shop (it was my first major accident).

      Some people buy a beater for $2000 or so, drive it while their car is being repaired, and then sell the beater to someone else, hopefully for $2000. Rental car insurance is cheap though, and you're certain to get something decent.



    • gorkish, on 10/12/2007, -0/+1Well most of it is, but some is not quite so obvious to most people.

      For instance, stacking uninsured motorist for multiple vehicles on a policy is generally not something an insurance company will willingly tell you even when you really need it.

      One thing that the article did not mention that is mildly important is that while there is nothing particularly wrong about carrying more than one auto policy it can really bite you if someone you are in an accident with decides to 'go after' you -- they can file against all your policies just like you could. Instead (except in very certain circumstances such as agreed value policies on antique cars and the like) you should try to increase your coverage on a single policy for all your vehicles.
    • kitwaites, on 10/12/2007, -0/+2@akira117

      Although US insurers don't publish their groups, UK ones do. Any car that is available in the UK as well as US can be checked here: -

      http://www.parkers.co.uk/insurance/

      Insurance cost is banded by group number, from 1 (dirt cheap, Vauxhall Corsa etc) to 24 (Bugatti Veyron!). The rating can depend on lots of things - for instance, popular cars that are reaching the end of their lives are always cheaper because there are loads of old, cheap parts around if they break.
    • essjay, on 10/12/2007, -0/+1How can you say its common sense. Before reading this article I never knew that my unblemished license and 1976 Trabant mean I get lower insurance than the blind guy next door who drives a Ferrari...
  • Bara, on 10/12/2007, -1/+14I stopped reading at "If you have good credit, you'll pay less."
  • AlexShrugged, on 10/12/2007, -2/+11I can't believe someone got paid to write this.
    • trghpy, on 10/12/2007, -4/+6They're paid by how many ads they're text can cover.
    • Ahnteis, on 10/12/2007, -3/+8they're = they are
      their = shows possession.
      there = not here. *t*here.
    • fflush, on 10/12/2007, -5/+2@Ahnteis

      thank you captain obvious. However, our friend above used the correct "They're" as in "They are paid by how many ads they're text can cover."
      so you can stop being a dick now.
    • qkslvr221, on 10/12/2007, -0/+4@ fflush

      Read the damn correction you just typed.

      You just said "They are paid by how many ads they are text can cover."

      Smooth.
  • pevensen, on 10/12/2007, -0/+8Most of these items are common sense. The one that was new to me is that in 28 states they must pay the sales tax on a replacement car.
  • myrddin97, on 10/12/2007, -5/+0You could be like a guy I know who's going to college, about 21 and owns a Porche (it's his, not his parents, but he bought it from a very successful older brother) but as far as his premium goes, he owns a 98 Cavalier. Helps to have family that sells insurance.
    • adml_shake, on 10/12/2007, -1/+6Yeah it does, my uncle sells it as a matter of fact. And he'd better hope to god that kid doesn't commit a single traffic violation. They'll revoke his insurance sales license for something like that.
    • merreborn, on 10/12/2007, -0/+3Yeah, I can't imagine how *that* could ever backfire.

      Unless he ever gets in an accident.
  • brstilson, on 10/12/2007, -0/+14Useless. I have more "secrets" your car insurer won't tell you as well:

    *Pay your bill on time and your insurance won't be canceled
    *When you buy things you don't have to the money for, you go into debt.
    *Fire Trucks are Red
    • Indecision, on 10/12/2007, -2/+2Around here, we've got green fire trucks.
    • H380, on 10/12/2007, -0/+1We got some that are white and some that are yellow.
  • PleaseJustDie, on 10/12/2007, -0/+6Who the hell would think they have to add a teenager to a policy just because they are old enough when they aren't driving or even have a license?
  • frodsteamin2, on 10/12/2007, -5/+1Costiest car to insure, lancer evolution...sucks to be me...well kinda
  • bpmox, on 10/12/2007, -2/+1I've never seen an msn.com article that didn't look like it was lifted right out of some high school newspaper.
  • falstaff, on 10/12/2007, -0/+3"Stolen or damaged personal items like compact discs aren't covered by your auto insurance."
    I had a window smashed, and nothing appeared to be missing. A couple days alter, I realized I had a DVD and a clock I had just bought but didn't bring inside. I sent the receipt in along with the paperwork to get the new window, and got the $40 back. Probably depends on the company and/or the state laws, but that one's not necessarily true.
  • opusagogo, on 10/12/2007, -0/+6funny the article states the insurance company will pay your sales tax on cars in Oregon.... but there are no sales tax in oregon.
  • Ajscott123, on 10/12/2007, -1/+2Did I miss a secret in that article that made it worthy of over 200 diggs? I'd like to see the list of people who actually dugg this.
    • Durrok, on 10/12/2007, -0/+2Click on "Who dugg or blogged it?" up at the top of the page
  • Aliarse, on 10/12/2007, -2/+2Insurance company's are scam artists,and they're experts at performing daylight robbery.

    They make it easy as possible for you to send your money to them, but when it comes time to get the money back because your car/bike has been nicked, its a whole different story. You have to jump through x number of hoops, and wait up to 6 months before you see a penny, and even then its not usually anywhere near what it was worth before being nicked.

    It doesn't surprise me that there are so many uninsured drivers around.

    • SoySamurai, on 10/12/2007, -0/+1@aliarse

      I work for an insurance company. In my experience, yeah there are companies that lag big time on paying out. I once heard a chiropractor tell a patient to be patient since they're with a certain insurer. Another way to see a claim take longer is involving a lawyer or simply the other person and insurance company not cooperating. The more complicated the longer. For a nick it shouldn't happen, but its been known to.

      To anyone who cares: If you're looking at purchasing a sports car and you're on a budget. Call your insurance company first for a quote. You would not believe how many calls I get on that one. Yeah common sense.
  • ArmyOfFun, on 10/12/2007, -1/+2"Pay in full to avoid installment fees"

    While this is technically true, you're probably better off investing that money and paying the insurance company as little as possible each month. I get a service fee of $3 a month. To beat that, I need to earn more than $3 a month from wherever else I put my money in to come out ahead. For the amount of insurance I pay, $3/month would be about 1.1% of the total owed. To beat that I only need to find an investment vehicle that'll return a little over 2.1% over the year (keeping in mind the principal gets decreased by a payment every month). This isn't hard considering most (if not all) internet savings accounts returning over 4% for the year.
    • gorkish, on 10/12/2007, -0/+1This depends on the insurance company. With some companies there is very little difference if any between paying your premiums monthly or for an entire period; however, with other companies there can be quite a large difference -- one company I used briefly charged almost $350 less if I paid in advance for the entire period. I don't believe they are able to charge you a premium to pay out monthly, but they certainly can give you a discount for an upfront payment and this is how I have seen it worded.
  • smallestmills, on 10/12/2007, -0/+2In some states, bills are being introduced to keep insurance companies from using credit reports to determine rates. (MI, for one.) Also, just by checking with an agent, you can find out which models have higher rates (like two-door versus a four-door, or even just having a sun roof.)
  • FluxHarmonic, on 10/12/2007, -1/+4But I have good news:

    I just saved a bunch of money on my car insurance by switching to Geico.
  • commonmann, on 10/12/2007, -1/+0Here are other ways:

    13. Don't have insurance at all, this will eliminate the auto insurance alone.
    14. Drive friend's car, that way you don't have any liability. /sarcasm

    *If you incur any cost as long as it is not auto insurance premium, you should be fine. The whole point of the article is to save on auto insurance.
    • Tiggi, on 10/12/2007, -0/+1And go eco - buy a bicycle and have no troubles till the end of your days.
      I guess that your insurer will never recommend it but it is a working decision.
  • jiludi, on 10/12/2007, -1/+0that thing about car models and insurance rates is so true

    I bought my brand new GS300 and forgot to check how much insurance will cost me I though I'd be paying thru the nose
    When I transfered my Geico the rate was $65 less per month than the Chevy, and the GS is 65hp more!
    • mpritc1019, on 10/12/2007, -0/+0don't get ripped off by Geico. They suck. You will pay the same with an agent and you will have help when you need them not some call center with a bunch of n00bs.
      Yes I work in the insurance industry.
    • jiludi, on 10/12/2007, -0/+0can't say i was happier with AllState their rate was high and they did not care at all if I was moving, if I was unhappy about something. Nothing just total "whatever" attitude. I still have 2 months left on Geico so I'm going to look at alternatives just in case
  • drtyfrnk, on 10/12/2007, -0/+1Dugg for Pearl Jam Reference.
  • shiftless, on 10/12/2007, -0/+1Man, if you people really are having that hard of a time with basic law, you should watch an episode of Judge Judy or People's Court or something
  • darthmoonman, on 10/12/2007, -0/+1what, your telling me that if i crash my car I'll have to pay more for insurance, get the ***** out of here
  • yyuuyyuu2, on 10/12/2007, -0/+1here is a cool site to check if your car insurance company is over charging u
    http://car-insurance-comparison.net
  • Emesis, on 10/12/2007, -1/+1Buried as inaccurate, as none of these are secret and you'd have to be dumb as hell not to know most of them already.
  • autoinsurance82, on 03/25/2008, -0/+04 steps you should know before buying an auto insurance - really help full tips and information available online at http://www.insurancesupermarket.net

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