March 9th, 2007
This is post two of two in a series about the relationship of owning a hybrid car and the possibility of lowering your car insurance rates.
While some companies are offering low rate car insurance for those with hybrids, there are other companies that are refusing to do so for a variety of different reasons. Companies such as State Farm Insurance Company is saying that they do not plan to offer these discounts because the hybrids can be quite expensive to repair and there are some concerns about how the electrical system of the car will react in the event of a vehicle accident. Some of these concerns appear to be legitimate, while others have been labeled unfounded, but in any event, not all insurance companies are sold on offering a discount for those driving a hybrid automobile.
As the market for the hybrid increases, more than likely there will be more and more insurance companies that begin to discount insurance for these vehicle types. They provide a safer environment, and in some cases they cannot drive as fast as other cars, which can decrease the risks of a vehicle accident. It is predicted that the sale of hybrid vehicles will increase by almost 300% in the next 5 years, and smart insurance companies will want to take part in this ever-growing market. If you decide to purchase a hybrid vehicle, you may have the chance to enjoy low car insurance rates, as well as helping the environment and saving money on fuel costs.
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December 26th, 2006
When it comes to how much you pay for car insurance, where you live plays a significant role. Most people understand that things like driving record, claims history and the type of car you drive is factored into your policy price but most don’t know that location also plays a part.
If you live in a city and your driving takes place in a more congested area, you insurance will more than likely be higher because your chance of getting in an accident is higher. The more traffic, the higher the policy. Also, if you live or work in a high crime area, your chance of vandalism or theft is higher as well, hence, a higher policy rate. What type of weather you have in the location you live may also play a part. If you live in an area that experiences extreme weather often, it’s possible your rates could go up, not only because of possible damage to your car but also driving conditions.
What about living in one state vs. another state? Most people are not concerned about this because how much one pays for a premium is not enough to motivate someone to relocate to another state. However if you’re thinking of moving, and money is playing a part in your decision, check with the state DMV or a national car insurance company to find out the differences in premium price and coverage minimums from state-to-state. The fact that each state is different in what they require you to carry liability-wise and property-wise will also dictate how much you are required to pay and how much coverage you need to have as a minimum. If you find you’re living in a high-priced location, make sure you check with your agent to see if you’re entitled to any special discounts.
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