Life Insurance Definitions

Accelerated Benefit Provision
Enables a policy owner to receive early death benefits if he
or she is diagnosed with a terminal illness or permanently
confined to a nursing home.


Accidental Death Benefit
A policy rider that provides additional benefits for those who die of accidental causes


Actuary
A professional trained in the mathematics of insurance and risk management. Known as a mathematician in most countries outside the United States.
Adjuster
A person who investigates and settles insurance claims.
Administrative Costs
Costs related to utilization review, insurance marketing, medical underwriting, agents' commissions, premium collection, claims processing, insurer profit, quality assurance programs and risk management.
Admitted Company
An insurance company authorized to do business in a given state.
Age Limits
The ages below or above which the insurance company will not issue a given policy or renew a policy in force.
Agent
A person who sells insurance products of the insurance company; the person responsible for your insurance coverage needs.
Alien Insurance Company
An insurance company incorporated under the laws of a foreign country.
Assigned Risk
A risk assigned to insurers by law, which they may not otherwise accept.
Automatic Premium Loan
Any life insurance premium not paid by the end of the grace period (usually 31 days) is automatically paid by a policy loan if there is sufficient cash value.
Cancellation
The termination of insurance coverage during the policy period.
Cash Value
The amount of money, before adjustment for factors such as policy loans or late premiums, that the policy owner will receive if the policy owner allows the policy to lapse or cancels the coverage and surrenders the policy to the insurance company. Cash values are a feature of most types of permanent life insurance, such as whole life and universal life.
Certificate
A document used to verify coverage for a person covered under a group insurance policy.
Claim
A formal request for payment of a loss under an insurance contract.
Claimant
The first or third party. That is any person who asserts right of recovery.
Clause
A section or paragraph in an insurance policy that explains, defines or clarifies the conditions of coverage.
Commission
Paid to the insurance agent as compensation.
Composite Rate
A uniform premium applicable to all those eligible in a subscriber group, regardless of the number of claimed dependents. This is common among plans purchased by large employer groups.
Decline
An insurance company refuses to accept the request for insurance coverage.
Disability Benefits
A feature added to some life insurance policies providing for waiver of premium, if the policyholder becomes totally and permanently disabled.
Effective Date (Inception Date)
The date on which an insurance policy coverage starts.
Endorsement (Rider)
Amendment to the policy used to add or delete coverage.
Evidence of Insurability
Medical information about someone applying for insurance; this is used to determine which policies can be issued, and what premiums can be charged. It is kept confidential.
Exclusion
Certain causes and conditions, listed in the policy, which are not covered.
Experience
The record of claims made or paid within a specified period.
Experience Rating
Determination of the premium rate for an individual risk, made partially or wholly on the basis of that risk's own past claim experience.
Expiration Date
The date on which the policy ends.
Face Amount
The amount that the beneficiary receives upon the death of the insured.
Flat Cancellation
the cancellation of a policy as of it's effective date, without any premium charge.
Financial Ratings
Reflects the financial strength of insurance companies, and their ability to meet their obligations to their policyholders. Major rating organizations include Standard & Poor's, Moody's, and AM Best.
Free Look
The right of the owner of the policy to examine the policy, and return it for a full refund if necessary; this usually lasts for at least ten days.
Grace Period
A stated period over which an overdue premium may be paid without penalty.
Group Life Insurance
Life Insurance provided for members of a group. It is most often issued to a group of employees but may be issued to any group provided it is not formed for the purpose of buying insurance. The cost is lower than for individual policies because administrative expenses per life are decreased, there are certain tax advantages, and measures taken against adverse selection are effective.
Guaranteed Insurability
An option that allows a policyholder to purchase new life insurance at certain points in the future, without providing new evidence of insurability.
Illustration
A document showing yearly numbers to indicate how a policy will work; it is used in insurance sales presentations.
Incontestable Clause
A clause in a policy providing that after a policy has been in effect for a given length of time (two or three years), the insurer shall not be able to contest the statements contained in the application. A health insurance provision also states that after that time no claim shall be denied or reduced on the grounds that a condition not excluded by name at the time of issue existed prior to the effective date. In life policies, if an insured lied as to the condition of his health at the time the policy was taken out, that lie could not be used to contest payment under the policy if death occurred after the time limit stated in the incontestable clause.

Top Ten Tips to Save on Life Insurance

Looking to save money on your life insurance? If you are willing to do a bit of work and consider alternatives in your search, you could save yourself a lot of money.
The most important thing, first and foremost, is to shop around. There are hundreds of insurance companies offering a wide variety of plans and prices. Different companies could have different claim experiences and therefore have very different rates. You could save big bucks, just by doing some comparison-shopping.


What else can you do? You have many options. Here are 10 more ways you can save on life insurance:

1. Consider term insurance over whole or universal life.
   Term insurance is insurance and insurance only. Unlike whole life policies that have a savings component, you just get life insurance. As a result, you can actually save money on premiums with term insurance. In fact, according to one insurance association, the cost of a universal or whole life policy could be 8 or 9 times more than for term insurance with the same death benefit!
   Having said that, if whole life is your preferred policy, there are still ways to save some money and get the insurance that you want. A big part of the costs associated with whole life insurance are administration fees. If you are willing to check around, you may be able to find companies that sell “no load” or “low load” policies. As always, check any fine print when buying these kinds of products, to ensure there are no hidden charges and that you are getting exactly what you expect.
   Do keep in mind that if you choose whole life, it doesn't really give you the full benefit's of a savings vehicle. Any partial withdrawals or loans will reduce your death benefit. Also, if you partially withdraw or take out a loan against your cash value, and the cash value exceeds the premiums you have paid into the policy, you will be hit with a tax bill. Finally, every year you own the policy, more of your premium money goes to pay for the cost of insuring you and less of it goes toward the cash value. Why? Because your risk of death increases and the cost of your insurance component therefore increases.
2. Look for no-commission policies if possible
   What is a “no-load” insurance policy? Well, first of all, it's really more accurately a “low-load” life insurance policy. Such policies have fewer expenses built into them, such as agent commissions and fees for marketing. This can mean lower premiums to you.
   How can you get a no-load policy? You need to buy from a financial advisor who will charge a “flat fee” rather than collect a commission. The flat fee will normally be lower than the built-in cost of commission.
   You can also buy no-load policies direct from an insurance company. If the company is selling without an agent, there is less cost to them and potential savings to you. More and more insurers are selling directly via the Internet. It's worth checking out.
3. Avoid a guaranteed issue policy if you are young or healthy
   “Guaranteed issue” term life insurance policies require no medical exam and are sold to anyone who comes along. Youve likely seen commercials for “Guaranteed Life” or other such policies. Guaranteed issue policies are riskier for the insurer than policies that require medical exams and are thus more expensive than regular term insurance policies. While these policies can be a great way for people who have medical problems to obtain some life insurance, if you're healthy, you'll get better rates by taking the tests and qualifying.
   Theres another reason not to take a guaranteed life insurance policy. With guaranteed life insurance, your death benefit is usually low. At the same time, your premiums are high because of the risk factor. As a result, you could end up paying more in premiums in just a few years than your family will receive in death benefit's.
4. Shop online!
   While online services may not automatically give you the best price, they can still be a useful source of information about prices overall. You may also find less expensive policies available, from companies who only sell direct and therefore have lower fees. However, the quote you get online will only be as useful as the personal information you provide. Provide the most accurate and complete information possible. For comparison, you should consider speaking with a local insurance broker or other insurance professional to compare quotes and ask additional questions if you have them.
5. Save money by improving your health
   Any kind of health problem can hurt your chances of buying life insurance. However, conditions like high blood pressure, diabetes and heart disease are among the ones that can make life insurance companies reluctant to sell you a policy at all.
   The better your health, the less risk you pose to the insurance company. It's as simple as that. For this, you'll have more choice of insurer and likely lower premiums too.
   If you are a smoker, you will pay more. Research shows smokers pay nearly three times the premium of non-smokers and you can't just quit the day before you apply. Most companies will want you to have been smoke-free for at least a year. However, it's not unusual for a company to require as little as 2 years smoke-free or as many as 5 years, in order to qualify for non-smoker rates.
   Here's a bit more bad news: If you smoke marijuana, pipes or cigars, you still must admit to being a smoker on the policy application, although insurers don't generally differentiate between different types of smoke inhalation. So, no matter what you smoke, you will be considered a smoker. Marijuana users must also disclose their drug use.
   So, your first goal should be to give up smoking, but that's not the end of the road to good health. Some companies are now classifying as many as 5 different categories of non-smoker, based on the other medical conditions that you might have.
   Think you are out of the woods because you chew tobacco rather than inhale it? Insurance companies use urine tests to check for the presence of nicotine. If you chew tobacco, you might just end up with smoker rates on your life insurance policy.
   If you're healthy but somewhat overweight, this could also impact your ability to buy life insurance. Generally, the heavier you are, the more you'll pay, if the company is willing to insure you. Losing weight is the right thing to do; however, you'll have to lose your weight safely and slowly! Rapid weight lose is associated with many serious health conditions.
   If you have a pre-existing medical condition that could lead to higher rates, take action now. By showing your insurer a history of improving your health, taking your medications regularly and acting responsibly about your health, you'll probably get yourself lower life insurance premiums than you otherwise would have.
6. Buy only the insurance that you need
   With life insurance, if you buy too much, you'll pay too much. If you buy too little, you could leave your family with a financial problem. Whats the right balance? It's a basic formula:
   
   
   • short-term needs of your family long-term needs of your family the familys resources = how much life insurance you need
   
   Short-term needs would be for such things as funeral costs, debt repayment, immediate income replacement (six months to a year), and potential childcare to help your spouse continue or return to work. Long-term needs would include your children's college education or long-term income replacement for a spouse who will not be returning to work (especially if you don't have a pension).
   Experts advise you do an analysis at least once every three years or whenever you have a major life change. For example, if you have a new baby, you have to recalculate long-term college education needs and short-term child-care costs. If you own a home, a mortgage is likely your biggest financial burden and it should be paid off in the case of your death. Because your mortgage balance decreases over time, it's important to review the actual amount of coverage you need on a regular basis.
7. Consider a rider on your whole life policy, rather than a new policy
   Do you already have a whole or universal life policy? Well, just because your needs change doesn't mean you should run out and buy a new whole life policy. A rider may be the answer to your problem. A rider amends an insurance policy to expand your coverage, without sacrificing any cash value you may already have.
   Still, be sure to shop around. If you're still in good health, you might be able to get a better deal by buying additional term life insurance to supplement your original whole life one

Donating Your Life Insurance to Charity

As the hunt for funding gets more and more challenging for many non-profit and charitable organizations, I've seen more and more short bit's of information on donating your life insurance as a legacy. Is this a good idea? What do you need to know before you decide to take this route? And is it the best one for you?
First of all, charitable donations are tax deductible. While this isn't usually a prime motivator for most of us, it does make the donation to a charity even more inviting. After all, you can support a cause you believe in and get a tax break on the money you give. It's a win-win, right? If a tax benefit is one of your motives for signing away the benefit's of your life insurance policy, you should first confirm a few things first.

Life Insurance for Children

We always want the best for our children. Life insurance companies know this. As a result, you might find that you are the target of sales pitches from life insurance companies. This is a time when emotions can run high. We all want to secure our children's future, right? If you are considering life insurance for your child, it's a good idea to step back from the sales pitches and be sure that you are clearly considering your and your child's needs before you make a purchase decision.

Life Insurance For the Overweight

Are you overweight? Are you otherwise healthy? You still might have a hard time buying life insurance. Even if you're not obese, there are some cases in which you'll have to pay more for life insurance.
In most instances, the heavier you are, the more you'll pay.Along with age, medical history and lifestyle, life insurance companies take your "build" into consideration on your application. "Build" is your weight relative to your height. Life insurers use standard tables that combine weight and height in a chart to help determine what kind of risk you pose.

The more you weigh in relation to your height, the more potential you have for health problems. That's what the statistics say. Insurers will combine their unique claims history with those statistics to come up with their risk factor for you as a client.
The ideal life insurance customer is someone who is expected to live a long, healthy life. That means that the risk you pose to the insurer is low. Statistics consistently show overweight people pose increased insurance risks, because they are likely to develop health problems as they grow older.
At the same time, the average American waistline is getting bigger. Obesity is considered a silent epidemic. Weight related diseases like diabetes are also increasing at very high rates. Increases are evident regardless of sex, age, race and educational status. Since diabetes increases your risk of an earlier death, an overweight person poses a higher risk to insurers.
If you're just a little overweight, say about 10 pounds, you might see no difference in the life insurance rates you are quoted compared to a friend who is 10 pounds lighter and the same height. However, if you're severely overweight, you'd better budget more money for life insurance. Obesity is clinically diagnosed when you are 20 % or more over your ideal weight. At this level, your insurance rates will likely be increased.
A person can be denied life insurance at some companies if the person is morbidly obese even if that person does not have any other health problems. This is definitely something to keep in mind.

Reducing Life Insurance Costs

You can control your cost of life insurance to some extent. Here are some tried and true tips:

1. Always get more than one quote for life insurance. Comparing prices is critical to getting the right life insurance at the right price. I recently got quotes on term life insurance for $250,000. Quotes ranged from about $40 a month to over $80 a month. This is a clear case for shopping around. But don't just buy on price - I compared life insurance companies with similar financial ratings (mostly by A.M. Best), and similar policies. Then, I bought life insurance based on the life insurance policy itself and it's price.
2. Buy only the life insurance that you need. If you buy more life insurance than you need you will pay more for it - and the chances are in the life insurance company's favor. You are not likely going to collect on that policy. Your chance of being off work for more than 90 days is higher than your chances of dying between the ages of 40 and 64. Keep this in mind.

Term Life Insurance

Term life insurance is generally your most cost effective option if all you need is life insurance.
If you are looking for a tax sheltered investment you might want to consider Universal Life Insurance. If you want a savings component, you might want Whole Life Insurance. But the bottom line is this: you will pay administration charges over and above your life insurance premium cost in both cases.

Term Life Insurance Calculator

The following calculator will help you estimate how much life insurance you need to cover your family's financial needs, following their loss.

Financial Need	Amount
Remaining Balance on Current Mortgage
Funeral Expenses
Children's Future Education
Debt (Autos, Credit Cards, Loans, etc)
Family Emergency Fund
Your Current Income
Total Life Insurance Needed

Other Types Of Life Insurance

Life insurance makes money for organizations. It's the last insurance most of us ever want to collect on.
The chance of paying out is relatively low and it should be no surprise that other institutions want to offer this to you.
Here are two types of life insurance that you may have been offered:

1. Mortgage Life Insurance
   The short answer is that you likely shouldn't get Mortgage life insurance. Your bank will make significant efforts to have you buy it, but tell them you are fully insured through your other life insurance coverage. Why would you do that? Because mortgage life insurance through your bank is notoriously expensive for the amount of coverage. Whatever you pay to have your mortgage of $150,000, completely insured through the bank, it will be more than a comparable term policy 9 times out of 10. Just get more term life insurance if you need it.
2. Credit Card Life Insurance
   Credit card insurance is very expensive coverage for very small amounts. Instead of doing this get more term life insurance. If you don't have term life insurance, get a small policy - you'll find that it's very inexpensive in comparison to the cost of the coverage through the credit card.
   Now, the credit card company will try to sell you the credit card life insurance because "you don't pay if you don't have a balance". Well folks - THEY don't pay you a benefit either if you don't have a balance.
   In general, don't do it.

Whole Life Insurance

Whole Life Insurance, also called Permanent Life Insurance, is bought for the rest of your life. You'll pay more than you would for term life insurance, but whole life insurance premiums do not increase with your age after you buy. This is one of the selling points.
In the early years of the whole life insurance policy when you're a low risk, you'll pay more in annual premiums than you would with a comparable term life insurance plan. However, you become a higher risk at an older age, and the cost of term life insurance goes up. Therefore, the premium eventually becomes less than the cost of a comparable term policy.

Universal Life Insurance

This universal life insurance policy is really best-suited for a person who wants tax sheltered investments outside of their 401(k) or RRSP. Most of us are not maximizing our contributions in these retirement vehicles, so we aren't in the market for universal life insurance coverage.
If you are maxing out your retirement savings then you might consider a universal life insurance policy. But remember - you will pay administration fees.

If you think you might be in the market for universal life insurance you should likely seek some independent financial advice - not advice from a life insurance agent who has a vested interest. A financial advisor can look at your total financial picture and let you know if this product makes sense for you.

For more information regarding life insurance check out the following pages: Life Insurance, Why do I need life insurance, How do I decide what I need, What types of life insure can I get, Permanent life insurance, Whole life insurance, Universal life insurance, Term life insurance, Other types of life insurance and don't forget to check out the How can I reduce life insurance costs page.

Life Insurance - How do I decide what I need?

This is a big question. In general, most financial planners will say that you should have life insurance equal to at least 5 times your annual salary. Some folks with more dependents (older parents, children and spouse) may need more life insurance.
Other financial planners say that you should look at the total amount of income that you want to replace between now and retirement. While the numbers can be big and scary if you are young, your actual life insurance needs will decrease over time.

Let's look at an example. If I'm 25 and make $35,000 a year and I want to replace the income I'd make between now and retirement age, I'd be looking at life insurance for $848,000. Whew! Well, there are a number of concerns with that:

1. First and foremost, can I afford the premium?
   At this age, you may be able to. The risk to a life insurance company is low.
2. Does my spouse work?
   If my spouse does work I may not have to replace my total salary.
3. If I have a stay-at-home spouse, would they consider going back to work after a certain period?
   If you think your spouse may want to retrain for another career you may actually need to consider more money. Or perhaps, if the total amount of the life insurance policy paid out the mortgage and put some money in the bank, your spouse could return to the workforce on a part-time basis.
4. Am I trying to leave my family 'set for life' or am I trying to get them over a tough time?
   This is entirely up to you. Balance it out against the amount of the life insurance premium.
5. Is it overkill?
   (Excuse the pun.)

Beneficiaries

For the sake of your loved ones it's usually better to name a beneficiary on your life insurance policy. If the proceeds of your life insurance go to your estate and get tied up in probate, it could be months before your family is paid the death benefit - and a lot can have happened in that time.
Pay careful attention to how you designate the beneficiary of your life insurance policy. If you want your wife or husband to get the proceeds of your life insurance, you should not just say "wife" you should say the name. Why? If you have a previous wife that person could receive the life insurance benefits.

Types Of Life Insurance

Life insurance gives you some options

In most cases, term life insurance is your best buy. This is because your need for life insurance actually decreases over time - when your mortgage is paid off, when the kids are already through college and on their own or when you are into your retirement years.
Permanent life insurance provides you with a saving's account coupled with a life insurance policy, in most cases. Premiums tend to be higher in part because many of these policies will develop a 'cash value' over time. Now, if you really want to save money you are generally better off with a savings account. However, for some people, the need to 'liquidate' a life insurance policy in order to get the cash helps to protect these savings

Permanent Life Insurance

he only reason to buy permanent life insurance is that you are going to hold this insurance for life.
By holding the "permanent life insurance for life," we mean for life. There are usually up-front charges which considerably impact the savings component. Eventually, the savings will begin to pay off, but it can take 10 to 20 years for things to begin moving your way.So what are you really getting? Well, it works like this: part of your monthly payment pays for the actual life insurance (This will normally be close to the amount you'd pay for term life insurance). The rest of your payment (minus management charges; which are a fee over and above the cost of premium) is applied to the savings component. Therefore, in order to actually build savings, your premiums are higher than term life insurance by the amount of your savings contribution, plus fees to the life insurance company to 'manage' your money.

Now, if you want someone to manage your money, wouldn't you want a specialist? Maybe a bank?
Originally, the cash value that you built in your permanent life insurance was designed to continue to pay your premiums when you get older and premiums become REALLY expensive. This was a selling point because you banked money to pay high premiums to keep life insurance in force after retirement - when you don't make as much.
Another of the big selling points has been that you (as the life insurance policy holder) could access those savings if you need them. Sounds good, right? Well, it doesn't always work as planned. If you want to use those savings for something other than life insurance payments you will likely pay income tax on them; which negates any "tax shelter" status and could even push you into a higher tax bracket (with higher taxes).
Rules to borrow against a permanent life insurance plan can be very complicated, can cost interest, and what if you don't want to pay it back? It's supposed to be "your money" after all.
Life insurance companies make good money on these policies. There are generally incentives to life insurance agents to sell them. Insurers profit from people who buy these plans young and then drop them early.
For more information regarding life insurance check out the following pages: Life Insurance, Why do I need life insurance, How do I decide what I need, What types of life insure can I get, Permanent life insurance, Whole life insurance, Universal life insurance, Term life insurance, Other types of life insurance and don't forget to check out the How can I reduce life insurance costs page

Life Insurance

Life insurance is a critical part of your long term financial planning. Every person with dependents should have life insurance.
Life insurance is particularly important if you are the sole breadwinner for your family. The loss of you and your income could devastate your family. Life insurance will ensure that if anything happens to you, your loved ones will be able to manage financially.

Why Do I Need Life Insurance?

You need life insurance in order to ensure that your loved ones can cope financially with your loss. That's the bottom line.
The reasoning behind life insurance is most evident when you consider sole breadwinners, but applies to everyone who has dependents, even stay-at-home spouses. If you (as the stay-at-home spouse) were to suddenly die, your family would have to find other ways to: ensure care of children; get the family home cleaned; handle dry cleaning and laundry; do grocery shopping; and many other tasks which you currently handle. While your services appear to be 'low cost' because no one is paying you directly, if your family has to replace you with paid help you will quickly see your 'value'.In addition, funerals are expensive. An average funeral can set you back between $8,000 and $10,000 considering the funeral home services, casket, burial plot and headstone. This is part of what you want to insure yourself against. You can bundle in these costs when you consider a life insurance policy's total benefit amount that you insure yourself for.
While you can buy life insurance policies which are a small amount suitable only to cover funeral costs, you will generally need much more life insurance than that. Many of these life insurance policies look good because of low prices, but you have to look closely. For the dollar amount of coverage you get, it is generally a more expensive life insurance policy.
Some people who are single or have no dependents might want to consider 'funeral coverage' only. For the rest of us, we should be looking at more substantial life insurance.
For more information regarding life insurance check out the following pages: Life Insurance, Why do I need life insurance, How do I decide what I need, What types of life insure can I get, Permanent life insurance, Whole life insurance, Universal life insurance, Term life insurance, Other types of life insurance and don't forget to check out the How can I reduce life insurance costs page.

Top Ten Most Dangerous Jobs

You might not think that you work in a dangerous job. You might just be surprised. However, according to the Bureau of Labor Statistics, the top 10 most dangerous jobs are:

1. Timber cutters
2. Airplane pilots
3. Construction laborers
4. Truck drivers
   5. Farm occupations
   6. Groundskeepers
   7. Laborers
   8. Police and detectives
   9. Carpenters
   10. Sales occupations
   
   Groundskeepers? That one certainly wouldn't have been on any list of mine. Neither would sales occupations. After having worked in an office tower, I'd have included window washers for sure. Which brings us to an important question; do you have enough life insurance? Whether you are in a risky occupation or not, life insurance is part of a complete financial plan for everyone. Having said that, if you're single and no one is depending upon your income for support, you probably don't need life insurance. But you should definitely have it if you fall into any of the following categories:
   
   
   • You're married and your spouse depends on your income
   • You have children
   • You have an aging parent or disabled relative who depends on your income
   • Your retirement savings, pension, or other cash accounts won't adequately support your loved ones after you die
   • You have a large estate and expect to owe estate taxes
   • You own a business
   
   How do you figure out exactly how much you need? You can check out our insurance pages for more detail. Alternatively, you may want to contact an insurance agent or broker who can help you determine what type of life insurance is best for you and the amount of coverage you need.
   Rule of thumb is that you should have enough life insurance to pay off your major debts. This would include your mortgage, your car loan and any other large outstanding loan (which could include credit cards). In addition, if you have children, you should factor in childcare for the surviving spouse and potentially money for college. If your spouse would not want to return to work while the children are young, you might have to factor in a living allowance for a number of years.
   Keep in mind that every year your insurance needs could change. Perhaps you have a new addition to the family. Perhaps you've paid off the car loan. Maybe your oldest is now in college with a full scholarship. Review your life insurance coverage frequently and adjust as necessary. (This will be easier with term insurance than with whole life or other universal insurance.)
   No matter what kind of life insurance you decide to buy, ALWAYS shop around. Since many different types of life policies are available, it's important to compare what you are getting. Your insurance coverage should meet your individual needs. Premiums on insurance of any kind can vary widely, so be sure to get quotes from a number of companies. In most cases, the rule of thumb is at least 3. Just make sure you're comparing policies that offer similar benefits.

Are Men Better Drivers?

Are men better drivers than women? Are women better drivers than men? The answer could depend on whom you are talking to! However, in the world of insurance, statistics do the talking.
Here's the bad news (or good news, depending on your gender): you'll find it very difficult to find any documented proof that men are better drivers than women. Further, your gender does play a role in how much you pay for your insurance. Generally, the biggest impact is on younger drivers, but if you are a male driver between 18 and 25, you will pay more.Why would young males pay more? Well, many auto insurance experts would agree with the theory that males, especially young men, tend to drive more aggressively than women. In addition, men will tend to display their aggression in a direct manner, rather than indirectly, which can lead to more road rage incidents. Finally, again in general, male drivers are more likely than women to break the law, with males being greater risk takers. The weight in pricing varies from company to company and by claims experience over time, but, with all other factors being equal, a female between the ages of 18 and 25 would pay less than her male counterpart because as a rule younger women drivers have fewer accidents and moving violations than males in the same age group.
Unfortunately, these statistics seal the fate of a young male driver and his high premium. Figures compiled by the Insurance Institute for Highway Safety (IIHS) show that more men than women die each year in motor vehicle crashes. Individual insurers will not just use outside statistics for their underwriting purposes, but will also use their in-house statistics, which often show more driving infractions of all kinds in a higher percentage among younger male drivers.
However, young female drivers should not be sighing in relief about their rates just yet. More recent statistics show some disturbing trends. The number of female deaths in car crashes has increased over the 28 year period from 1975 to 2003, while male deaths have declined in the same period. Women are starting to drive more aggressively, perhaps picking up bad habit's from their male counterparts.
If such trends continue, the insurance cost gap for younger drivers could close. Don't expect any changes in the next few years. But if the trend to more aggressive driving among females does continue, the gap will close; unfortunately, it will be for the wrong reasons

Auto Insurance Definitions

Accident
An unforeseen, unintended event; something unexpected; fortuitous.
Accident Frequency
The number of times an accident occurs. Used in predicting losses upon which premiums are based.


Actual Cash Value
An amount equivalent to the replacement cost of a stolen or damaged property at the time of the loss, less depreciation. For vehicles, this amount would be determined by a local area private party sales and dealer quotations. Kelly Blue Book would only be used as a guide and not the final word.

Actuarial
Statistical calculations used to determine insurance rates and premiums, based on projections of utilization and costs for a defined risk.
Actuary
A professional trained in the mathematics of insurance and risk management. Known as a mathematician in most countries outside the United States.
Act of God
Natural occurrence beyond human control or influence. Such acts of nature include hurricanes, earthquakes, and floods.
Additional Insured (Additional Interest)
An organization or individual that is protected under someone else's auto insurance policy, such as a leasing company; exists for liability purposes.
Additional Interest (Additional Insured)
An organization or individual that is protected under someone else's auto insurance policy, such as a leasing company; exists for liability purposes.
Adjuster
A person who investigates and settles insurance claims.
Administrative Costs
Costs related to utilization review, insurance marketing, medical underwriting, agents' commissions, premium collection, claims processing, insurer profit, quality assurance programs and risk management.
Admitted Company
An insurance company authorized to do business in a given state.
Age Limits
The ages below or above which the insurance company will not issue a given policy or renew a policy in force.
Agent
A person who sells insurance products of the insurance company; the person responsible for your insurance coverage needs.
Alien Insurance Company
An insurance company incorporated under the laws of a foreign country .
Anti-Theft Device
A device designed to minimize the chance that an automobile will be vandalized or stolen, or to hasten it's recovery. Alarm systems, keyless entry, and motion detectors are a few examples that could affect insurance premiums.
Assigned Risk
A risk assigned to insurers by law, which they may not otherwise accept.
Automobile Insurance
Coverage on the risks associated with driving or owning an automobile. It can include collision, liability, comprehensive, medical, and uninsured motorist coverages.
Automobile Insurance Plans (2)
Assigned risk plans, set up by the state to assist those who cannot obtain standard insurance. See Assigned Risk.
Auto Insurance Premium Discount
A discount offered to drivers for such safeguards as air bags, seat belts, good driving record, anti-theft devices, multiple vehicles, etc.
Basic Auto Policy
Still covers substandard risks, two-wheel motorized vehicles, and commercial vehicles; has been largely replaced by the Basic Auto Policy, which covers both physical damage and liability insurance.
Basic Limits of Liability
The lowest level of liability coverage that can be purchased, as determined by law. Increased coverage, with increased premiums, is available.
Binder
A temporary or preliminary agreement which provides coverage until a policy can be written or delivered.
Blue Book (Red Book)
A publication used for the determination of values for used automobiles and trucks.
Bodily Injury Liability
Legal liability for causing injury or death.
Cancellation
The termination of insurance coverage during the policy period.
Claim
A formal request for payment of a loss under an insurance contract.
Claimant
The first or third party. That is any person who asserts right of recovery.
Clause
A section or paragraph in an insurance policy that explains, defines or clarifies the conditions of coverage.
Collision Coverage
Insurance coverage which pays for damage to the policyholder's car caused by collision.
Combined Single Limit
Bodily Injury and Property Damage coverage, combined as a single amount.
Commission
Paid to the insurance agent as compensation.
Composite Rate
A uniform premium applicable to all those eligible in a subscriber group, regardless of the number of claimed dependents. This is common among plans purchased by large employer groups.
Comprehensive Coverage
Coverage in automobile insurance providing protection in the event of physical damage (other than collision) or theft of the insured car.
Continuous Coverage (Continuous Liability Insurance)
The length of time in which insurance has been maintained on a particular vehicle.
Continuous Liability Insurance (Continuous Coverage)
The length of time in which insurance has been maintained on a particular vehicle.
Customized Equipment (Special Equipment)
Items not covered under standard auto insurance plans, such as electronic equipment, aftermarket exterior pieces, or additional interior amenities.
Decline
An insurance company refuses to accept the request for insurance coverage.
Deductible
The amount of the loss which the insured is responsible to pay before benefits from the insurance company are payable. You may choose a higher deductible to lower your premium.
Defensive Driving Course
A driver improvement course, offered privately or through the Department of Motor Vehicles, which may reduce premiums for some drivers.
Depreciation
A decrease in value due to age, wear and tear, etc.
Driver Improvement Courses
Optional coverage that covers any vehicle operated by the insured person.
Driver Education
A course covering at least 30 hours of professional classroom instruction.
Driver Training
A course covering at least six hours of behind-the-wheel instruction.
Earned Premium
That part of the premium applicable to the expired part of the policy period, including the short-rate charge on cancellation.
Effective Date (Inception Date)
The date on which an insurance policy coverage starts.
Endorsement (Rider)
Amendment to the policy used to add or delete coverage.
Exclusion
Certain causes and conditions, listed in the policy, which are not covered.
Experience
The record of claims made or paid within a specified period.
Experience Rating
Determination of the premium rate for an individual risk, made partially or wholly on the basis of that risk's own past claim experience.
Expiration Date
The date on which the policy ends.
Extended Non-Owner Liability
Policy providing broader liability coverage for certain people (such as family members) who operated a trailer or automobile that does not belong to them; this covers carrying people or property for a fee, or using vehicles provided by employers to employees who do not own vehicles themselves.
Family Automobile Policy
A package for both liability and physical damaged to the vehicle(s) of the insured; has been replaced by the Personal Auto Policy.
Flat Cancellation
the cancellation of a policy as of it's effective date, without any premium charge.
Financial Ratings
Reflects the financial strength of insurance companies, and their ability to meet their obligations to their policyholders. Major rating organizations include Standard & Poor's, Moody's, and AM Best.
Financial Responsibility Laws
Laws requiring motorists to have enough money to compensate those whom they injure; this is done through liability insurance requirements, set out by law.
First Party Benefits (PIP)
Coverage present in no-fault states which pays medical, loss of income, death and/or disability, and loss of services incurred as a result of an automobile accident.
Gap Insurance
Optional coverage making up for the difference between the market value of a vehicle and it's outstanding payments.
Good Student Discount
A discount for students who achieve high academic standing.
Hit-and-Run
Describes an accident from which the perpetrator flees, without providing information or assistance.
ID Card
Provides evidence of liability insurance; this is required in most states.
Inception Date (Effective Date)
The date on which an insurance policy coverage starts.
Lapse in Coverage (Policy Lapse)
A period during which a policy has been canceled or terminated by the insurance company for a variety of causes.
Mathematician
A professional trained in the mathematics of insurance and risk management. Known as an actuary in the United States.
Medical Payments
Covers medical and funeral expenses, as well as passenger injuries, resulting from an auto accident, regardless of who is at fault. It also covers other people's vehicles that you are driving with permission, and injuries sustained as pedestrians.
Misquote
An incorrect estimate of the insurance premium.
Multi-Car Discounts
A discount offered to those who have two or more vehicles listed on the same policy. Some companies may grant multi-car discounts to those who drive company vehicles.
Motor Vehicle Record (MVR)
A record containing information gathered from a driver's application and abstracts of convictions and accidents. Also known as a DL printout.
MVR (Motor Vehicle Record)
A record containing information gathered from a driver's application and abstracts of convictions and accidents. Also known as a DL printout.
Named Insured
A corporation or individual designated on a policy. Others, such as those operating the vehicle with consent of the insured, may also be protected.
Named Non-Owner Policy
A policy endorsement for those who operate a vehicle that they do not own, such as someone who drives a company vehicle regularly.
No Fault Insurance
A system in which each driver's auto insurance coverage pays for injuries and damage, no matter who caused the accident (used in some states and provinces). Most jurisdictions still allow one to sue the party responsible for the accident, up to a given threshold.
PAP (Personal Auto Policy)
The most common auto insurance policy being sold, written in simple language, providing coverage for liability, medical payments, uninsured motorist coverage, and physical damage.
Per Occurrence Limit
The cap amount for which an insurance company will pay claims resulting from a single incident. It generally covers bodily injuries of everyone involved; determined for each occurrence.
Per Person Limit
The cap amount for which an insurance company will pay claims resulting from a single incident. It generally covers bodily injuries of everyone involved; determined for each person.
Personal Auto Policy (PAP)
The most common auto insurance policy being sold, written in simple language, providing coverage for liability, medical payments, uninsured motorist coverage, and physical damage.
Personal Injury Protection (PIP)
Coverage present in no-fault states which pays medical, loss of income, death and/or disability, and loss of services incurred as a result of an automobile accident.
Physical Damage
Any damage to an insured vehicle resulting from a collision, fire, vandalism, or theft.
PIP (Personal Injury Protection)
Coverage present in no-fault states which pays medical, loss of income, death and/or disability, and loss of services incurred as a result of an automobile accident.
Rider (Endorsement)
Amendment to the policy used to add or delete coverage.
Physical Damage Insurance
Property damage coverage for a vehicle under the 'collision insurance' and 'comprehensive insurance' sections of the policy.
Policy
A written insurance contract; can include forms, riders, endorsements, and attachments.
Policyholder
Literally, the person who has possession of the policy; can refer to the policy owner and those covered under the policy. Thus the term is non-functional as commonly used.
Policy Lapse (Lapse in Coverage)
A period during which a policy has been canceled or terminated by the insurance company for a variety of causes.
Policy Limit
The maximum amount a policy will pay, either overall or under a particular coverage.
Policy Period
The time in which a policy is in effect.
Preferred Risk
A risk considered better than that on which a premium was calculated.
Premium
The amount of money an insurance company charges for insurance coverage.
Premium Financing
When a policyholder contracts with a lender to pay the insurance premium on his/her behalf. The policyholder agrees to repay the lender for the cost of the premium, plus interest and fees.
Property Damage Liability Insurance
Protection from liabaility to someone else's property, including loss of use. Bodily Injury and Property Damage Liability are usually included as part of the same policy.
Private Passenger Automobile
A vehicle that requires registration for personal use.
Quote
An estimate of the cost of insurance, based on information supplied to the insurance company by the applican't.
Rebate
A reduction of a premium.
Red Book (Blue Book)
A publication used for the determination of values for used automobiles and trucks.
Reinsurance
A form of insurance that insurance companies buy for their own protection.
Replacement Cost
The cost to repair or replace an insured item. Some insurance only pays the actual cash or market value of the item at the time of the loss, not what it would cost to fix or replace it. If you have personal property replacement cost coverage, your insurance will pay the full cost to repair an item or buy a new one once the repairs or purchases have been made.
Replacement Value
The full cost to repair or replace the damaged property with no deduction for depreciation, subject to policy limits and contract provisions.
Reinstatement
The restoring of a cancelled policy to full force and effect. The reinstatement may be effective after the cancellation date, creating a lapse of coverage. Some companies require evidence of insurability and payment of past due premiums plus interest.
Renewal
The process by which someone can keep an existing policy in effect.
Rental Reimbursement
Optional coverage that will reimburse the costs of a rental car while your vehicle is in repair.
Risk
A term used to designate an insured or a peril insured against.
Safe Driver Plan
A rating system to determine premium costs based on a driver's record of accidents and traffic convictions.
Short-Rate Cancellation
When the policy is terminated prior to the expiration date at the policyholder's request. Earned premium charged would be more than the pro-rata earned premium. Generally, the return premium would be approximately 90 percent of the pro-rata return premium. However, the company may also establish it's own short-rate schedule.
Special Equipment (Customized Equipment)
Items not covered under standard auto insurance plans, such as electronic equipment, aftermarket exterior pieces, or additional interior amenities.
Split Limit
An insurance policy with limits for different types of insurance (such as bodily injury or property damage).
Surcharge
An extra charge applied by the insurer. For automobile insurance, a surcharge is usually for accidents or moving violations.
Term
The period in which a policy is in effect.
Tort
An act of wrongdoing committed negligently or willfully, but not as a breach of contract, which results in legal liability; auto insurance plans cover unintentional torts.
Tort Feasor
Someone who commit's a tort.
Towing and Labor Costs
An endorsement that covers the cost of towing or on-site labor; it can be added to physical damage coverage.
Transportation Expenses
Part of physical damage coverage; covers transportation expenses in the event of vehicle theft, up to a maximum daily limit.
Umbrella Liability Insurance
A liability policy that covers in excess of primary limits of the basic liability policy.
Underwriting
The process of selecting applicants for insurance and classifying them according to their degrees of insurability so that the appropriate premium rates may be charged. The process includes rejection of unacceptable risks.
Unearned Premium
The part of a premium left on a given policy term.
Uninsured Motorist Bodily Injury
Bodily injury coverage for uninsured motorists (required in most jurisdictions), which will cover injuries sustained due to a hit-and-run for which an uninsured motorist is responsible but cannot pay.
Uninsured Motorist Coverage
Endorsement to a personal automobile policy that covers an insured's claims for bodily injury involved in a collision with a driver who does not have liability insurance.
Uninsured Motorist Property Damage
Covers property damages caused by uninsured motorists.
Unsatisfied Judgment Fund
A fund, set up by some states, to reimburse people who have been injured in an auto accident but have been unable to collect from the person who caused the accident.
Usage
The primary purpose for which you intend to drive. Commuters' rates, therefore, will be different from business rates or pleasure rates.
Vehicle Identification Number (VIN)
An identification number that is unique to each vehicle, which provides it's serial number, make, model, options, etc.
VIN (Vehicle Identification Number)
An identification number that is unique to each vehicle, which provides it's serial number, make, model, options, etc. This number must appear on all auto insurance policies.
Waiver
(a) A rider waiving (excluding) liability for a stated cause of accident or (especially) sickness. (b) Provision or rider agreeing to waive (forego) premium payment during a period of disability. (c) The giving up or surrender of a right or privilege that is known to exist. It may be effected by the agent, adjuster, or insurance company employee or official orally or in writing.
Waiver of Collision Deductible
Covers your collision deductible on a vehicle that is damaged by an at fault, uninsured or hit-and-run driver; applies only to physical contact.
Whole Dollar Premium
Premiums rounded up to the nearest dollar (any amount of 51 cents or more); lesser amounts are typically eliminated entirely.

Insurance for Bad Drivers

Have you had a few tickets lately? Perhaps you've had a fender bender or two? Perhaps you're worried about your insurance going up. Maybe you're even worried about being denied coverage.
What can you do?
First of all, not all people with a few tickets and a fender bender are actually considered a high-risk insurance prospect. More factors decide this than you may expect. Here are the big ones:

1. Driving record. Your driving record is an obvious impact on your insurability. Everybody knows that at-fault accidents will increase your rates, but even tickets and not-at-fault accidents can too. Why? For every speeding ticket you get, your chances of being involved in a traffic accident rise by 100%, and being involved in multiple car accidents, (even if you're "not at fault") may suggest a pattern of reckless driving. Remember that insurance companies live and die by statistics and that means they aren't looking at you as an individual. They are looking at the data on you and making a decision about whether you are a good risk or a bad one
2. 2. Personal profile. Your personal profile takes into account your gender, your age and other personal characteristics. Unfortunately, this is an area you can't do much about, and it's also ruled by statistics. Insurance companies will always consider men a greater risk than women, teens greater than adults and urban dwellers greater than rural folk. It's all in the stats.
   3. Continuous coverage. Whether you've carried auto insurance coverage continuously over the past few years will affect your ability to get a policy now. Continuous coverage establishes a record of your insurability and also proves that you've been driving with proper coverage. While it may not seem like a big deal to you, it's a big deal to the insurance company.
   4. Your credit history. Now this may not seem fair, but your credit is a factor that increasingly influences other areas of your life, including insurance. Statistics show that drivers with poor credit file more auto insurance claims, and so companies use this info to classify high-risk drivers. Again, insurance companies really like statistics, because this is the way they evaluate risk.
   Well, if you are considered a high-risk driver, what can you do?
   There are things you can do to get yourself out of this category. It may take some time, but it will be worth it. First on the list would be changing some basic behaviors (like cleaning up a bad driving record by driving the speed limit and paying your bills on time).
   But, there are a few things you can do to cut high-risk auto insurance costs now. Consider driving an older car and dropping collision and comprehensive coverages. Or, if you can accept the risk, carry lower amounts of other standard coverages.
   There are insurance companies who specialize in high-risk drivers. One of the best ways to find one is to shop online. You can get quotes right away with many online services. You may even be able to comparison shop between several offers! With the internet, you don't have to hunt around in person wasting valuable time and effort. More often than not, you'll get several quotes from one application. However, expect to pay substantially higher premiums to match your high-risk status. You might also have less-attractive coverage options to choose from, but at least you'll be covered!
   Are you in a real bind? Even if the high risk Agents won't touch you, there's still hope! Every state has some kind of program that helps the uninsurable get insured by entering the state's "shared" market. Your risk is "shared" among all the auto insurance companies in this pooled market. The insurance rates are quite steep (sometimes triple the average premium) and it covers only general liability, but you'll meet the lawful requirements and have some protection in case of an accident. Contact an agent or your state insurance commissioner for more information

Car Insurance for Teenagers

It's a right of passage for most teenagers to get their license. We smile proudly and tell our friends that our teen got their license on the first try. Then, we get the shock of a lifetime when we find out how much it costs to insure our new young driver.
Why does it cost so much for our teenagers? Drivers under the age of 25 pose the greatest risk to insurers because of their high level of at-fault accidents. It's that simple. Insurance companies seek to limit their exposure to this high level of risk by charging higher insurance rates for 16 to 24 year-olds than for any other age group.


One trick you can use is the same one that parents have been using for decades. It is possible to add a teenage driver to a parents existing auto insurance policy as an occasional driver; once that teen has a permanent drivers license. While this can still be relatively expensive compared to the cost of insuring an adult, it usually saves some money on the cost of insurance overall.
It may even be possible to get a discount directly on your teen driver, if you've invested in your child's driver education. If your teen has taken a defensive driving course, this is likely to get you (and your teen) a break on the cost of insurance. It's well worth the time and money.
My parents took advantage of all of the above. I took a defensive driving course. I was listed as an occasional driver on their insurance. In addition, they purchased a less expensive, older model vehicle that was ultimately shared by my siblings and myself. As a result, my parents saved even a bit more money on my insurance because I was listed as an occasional driver only on the older model car. How can this save you money? Well, older vehicles generally pose less risk to an insurer because repairs tend to be less expensive. Therefore, the insurance premium cost is going to be even lower than if you had your teen listed as a driver on your family vehicle. It also ensures that if your young driver does happen to get into an accident, they haven't banged up the primary family car.

How Your Driving Record Affects Your Rates

Your driving record is a key part of how your insurance company will assess your premiums. They will normally get a copy of your driving record from your states motor vehicle department. Then, they will use your driving record as part of how they assess you for insurance, under their underwriting rules. Since your driving record can have a direct impact on how much you pay, it is essential to keep your record as clean as possible.

Generally, the motor vehicles department has a "point" system, which they use to track your driving record. Under the typical point system, each type of infraction (moving violations, parking tickets, at-fault accidents, driving under the influence, etc.) is assigned a certain point value. When you are found guilty of one of these infractions, the appropriate number of points is added to your driving record.

If you are discussing the score of your favorite sports team, points are good. However, when you are discussing your driving record, you want to avoid points. The more points you have, the worse your record.
Typically, an auto insurance company has the right to review the driving record of anyone who applies for an auto insurance policy from that company. They do this to determine two things:

• Whether you meet their guidelines for insurance and are eligible for a policy under their guidelines.
• Your risk potential to them (which will affect how much you will pay).

Having said that, every insurer has unique underwriting guidelines for evaluating prospective clients. As a result, the points on your record may have a more significant impact with one insurer versus another. As always, it pays to shop around.
Once you have insurance with a particular company, your insurer likely has the right to review your driving record. Some insurers will review your record very regularly; they may review as often as once a year on your policy renewal date. Other insurers may be less diligent. There are, however, certain times when you can be relatively sure an insurance company will be checking your record. These include:

• When you initially apply for coverage.
• When you request a change to your policy, such as an increase in coverage.
• When you add a vehicle to your policy or change vehicles.

Discount Auto Insurance

There is one way to discount your auto insurance cost, which doesn't put you at risk. However, this only applies under certain circumstances. You may qualify for auto insurance discounts and should ask about them if you:

1. Have a car with ABS brakes
2. Have airbags
3. Have an anti-theft system
   4. Drive low mileage
   5. Have daytime running lights
   6. Maintain good credit
   7. No accidents in the last 3 years
   8. No tickets in the last 3 years
   9. Have a driver training course
   10. Are a senior citizen
   11. Have an AAA or CAA membership
   12. Are a student and have good grades.
   
   Don't forget to check out the reduce auto insurance cost, discount car insurance, car insurance medical, auto insurance collision, liability insurance, comprehensive car insurance, uninsured & underinsured, auto insurance cost, and how much insurance should I carry guides and click on the links above for auto insurance companies.

Reducing Auto Insurance Cost

Reducing the cost of your auto insurance usually involves some 'gamble' on your part. It depends on your ability to tolerate risk. Most things you can do to reduce the cost will mean that you have the chance of more money coming out of your pocket in the case of an accident. These are the most common tactics:
Increase your auto insurance deductible
Increasing your auto insurance deductible is an easy way to save money. The gamble is straightforward: If my driving record is good, I raise my auto insurance deductible - because I don't expect to be making a claim. If my driving record is bad - then I have some decisions to make.

With a bad driving record a higher deductible can save you a lot. However, you have a greater chance of an accident. So, if you raise your deductible be sure to have an equal amount put away "for a rainy day." Just in case.
Also remember that many auto shops will allow you to pay for repairs over time - which means less hassle if you ever have to get it repaired after an accident.
Drop either collision auto insurance and/or comprehensive auto insurance coverage on older cars
If you have a 1989 Dodge Shadow (I did until two years ago) you shouldn't be carrying either collision auto insurance or comprehensive auto insurance. The cost of the auto insurance coverage doesn't make any sense. If anything happens to the vehicle, you are going to junk it.
Insure through a single insurance company for multiple policies (auto, home, etc)
Most insurance companies reward "loyalty". They do that by giving you a multiple policy discount. This can often mean 10 or more percent off your total insurance bill. That adds up.
So, buying insurance for auto AND home? You will likely get the best deal if you insure both with one company.
Also, if you have more than one vehicle, insure them with a single auto insurance carrier. Multiple auto policies usually means a discount; with or without your home insurance included.
Reduce auto insurance coverage extras
Auto insurance companies are always looking for other areas where they can provide insurance coverage. This is their livelihood. Therefore, over time they've come up with a variety of additional auto insurance coverages, which you may or may not need.
Does your insurance company offer towing coverage?
If you've already got an auto club membership don't buy towing coverage! And if you have an older car you are likely better off to get the auto club membership than pay for this service through auto insurance. Why? Older cars have a higher rate of breakdown. Auto insurance companies know that.
Another extra is car rental insurance.
While it's likely to be cheaper through your auto insurance company, than through the car rental agency, it's still expensive. However, if you have a 'gold' credit card it likely provides car rental insurance as a benefit. Check all your credit cards - gold or not - and see if this is covered. Then you can waive this extra!
Compare auto insurance quotes
This is where the internet makes it easy! There are many internet sites which will let you get multiple auto insurance quotes and which will deliver those quotes right to your email address. Most of these services are free - but some charge a fee. Check carefully. Click on the above links to access some auto insurance quotes online.
Never get less than three auto insurance quotes. It's in your best interest.
You can also call multiple auto insurance agents. Most agents will be able to give you a quote over the phone. Agents will work with more than one auto insurance company. If you want to know which auto insurance companies the agent checked you are free to ask.
Don't forget to check out the reduce auto insurance cost, discount car insurance, car insurance medical, auto insurance collision, liability insurance, comprehensive car insurance, uninsured & underinsured, auto insurance cost, and how much insurance should I carry guides and click on the links above for auto insurance companies.