It can be shocking to be notified by an insurance company that you have not been approved to receive auto insurance coverage. This can be particularly devastating if you rely on your vehicle to get back and forth to work or to get your kids to school. Driving without insurance places significant risk on you and your family if you are caught driving without insurance or are involved in an accident.

Determine the Reason

Hopefully the insurance company will include the reasons for their denial in the notice they send to you. If not, you will probably have to submit a written request to obtain the reasons. You need to know this to make sure their decision was based on facts.

Verify the Facts

It is possible they used factors in their risk calculation that are not accurate or need explanation. For example, if you have a poor credit history because of financial difficulties you experienced while married but now you are divorced with little debt in your name, this may be a reason to ask for a review of their denial. Even if they based your denial on your driving record which you know is not perfect, you should still get a copy of your record to confirm its accuracy.

Appeal the Decision

You can ask to meet with or talk to a representative from the insurance company to go over the factors they used in their calculation. You will need to provide documentation for any information you plan to refute such as that mentioned above. Errors on your application can be easily corrected and your application resubmitted for consideration.  Read more...

Nobody likes paying more for something than is necessary. Auto insurance is no different. Since it is required, you cannot avoid paying for insurance. But you do have some control over how much you pay. With cheap car insurance, you can save hundreds of dollars on your annual premiums. There are several ways you can get this type of insurance.

Driving Record

Customers with good driving records will have better rates than those with speeding tickets or accidents on their record. A clean driving record, especially over a long period of time, tells the insurance company you are not a risk to them. And, at the heart of it, that is really what your premium rate represents – the amount of risk you pose to the company. If you have blemishes on your record, work to improve it. This will take time as violations stay on your record for a period of time. However, you can enroll in an advanced driving course to demonstrate your commitment to safe driving.

Credit Score

Like your driving record, your credit history paints a picture for insurance companies. The industry belief is that if you have a poor credit score, you are more likely to submit claims. While this is not necessary true for every individual, it is based on industry experience. Many people are not even aware their credit score is used to determine insurance rates. Insurance companies do not have to get your permission to access that information so you may not know they have until you get a final proposed rate.  Read more...

The need to coordinate insurance activies between states has been recognized for a long time even though an Insurance Commissioner is appointed to each state with their jurisdiction limited to just that state. It would be significantly unfair if there were major differences in the scope and cost of insurance between states. Just imagine a state line passing down the middle of an exurb. On one side, insurance companies offer generous coverage, superior service and all at modest rates. On the other, the insurance companies have a reputation for limited coverage, hostility when it comes to handling claims and high premium rates. Since the law prohibits people from buying insurance cover across state lines, the accident of where customers live would doom them to a good or bad insurance experience. Hence, there’s a National Association of Insurance Commissioners (NAIC) where all the Commissioners meet to exchange ideas and, where possible, agree consistent policies. This effort is supported by the Center for Insurance Policy Research and a number of joint working groups on the different types of insurance.

Not surprisingly, the NAIC and its various working groups are viewed with some degree of hostility by the insurance industry. The insurers prefer to be able to pick off the Commissioners state by state behind closed doors. The power of the insurers to lobby is limited as information is exchanged between the Commissioners. This has prompted a number of attacks on the Association. Most recently, the Republican party challenged the NAIC to explain its status under the Dodd-Frank Act as reformed. In particular, it was asked whether it accepted the rule that all its meetings should be open-door. This is very important to the lobbyists. If those representing consumers are allowed to make presentations without the insurers being allowed to rebut what might be damaging, the Commissioners might decide to move into a more proactive role to police insurers for the benefit of consumers.  Read more...

Why does is it seem that we are always in the cycle of renewing our auto insurance? Insurance is a risky business. The insurance company is betting on your behavior based on how you, and everyone else they insure, behave in the past. You do the same. If every day you have to walk past a yard with a large dog that is friendly, you pass with ease. If on the other hand, you have to walk past 150 lbs of froth and snarl chained just out of your reach, you have concerns. If that chain moves, maybe closer, you want to rethink your route. You want to assess the risk.

Auto insurance companies are constantly assessing the risks of not just your behavior, but all drivers. It helps them to see trends that will affect their bottom line. It also allows you to watch for trends that will affect your bottom line. Often in this economy where individuals have to move around for good employment more than just your job may change. That is a trend insurance companies are watching.

Insurance companies base your auto insurance quote on more than just your driving record. The neighborhood you live in, the number of miles you commute, the amount of debt you carry all weigh in on what kind of a risk profile you show. Even the type of car your drive plays a part in the equation. Did you know the insurance industry maintains a list rating car models on everything from safety to popularity for theft? Consulting with your agent for an auto insurance quote before you buy a new or used car can save you money.  Read more...

It’s a sad fact of our modern lives that the majority of relationships end rather sooner than the participants expect. In the case of a marriage, this is all the more embarrassing because there are words exchanged suggesting we will stay together until parted by death. The latest figures show that half those marrying have been married before. Ignoring the surge of people marrying in states which have legalized gay marriage, the overall percentage of people marrying has been falling. Nevertheless, it’s highly material to insurance companies to understand your household arrangements. When it comes to insuring vehicles, most companies give an additional 5 to 15% discount to people in a stable relationship. There are further discounts for multiple vehicles on the same policy and when you bundle auto and homeowners policies. So, with the premium rates depending on your family arrangements, you have to make a full disclosure when applying for the policy. If there’s any change in those arrangements that would be relevant to assessing the risk, you have to give notice. Failure to notify entitles the insurer to cancel your policy.

So let’s take this step by step. In most states, there are laws requiring you to give notice within thirty days of a divorce being finalized. However, even though the laws may be limited to divorce and termination of civil ceremony relationships, the same duty applies when any previously stable relationship ends. So who will move out and what will the new address be? What property will be taken? If this includes a vehicle, where will it be parked when not in use? Will only one person now be driving each vehicle? Will they now be driven more or less? Will they be driven at different times of the day and night?  Read more...

Whether you are a frequent flyer or not, you want the lowest possible airfare rates possible. Nobody wants to spend a penny more than necessary. This makes cheap flights exceedingly popular. And popularity breeds scarcity. Fortunately, you can still find ways to save money on your airfare. The following tips can help you on your money-saving journey.

Buy Tickets during Peak Travel Times

You simply cannot get around this – if you must travel during these times, you will need to purchase tickets at least three weeks in advance to get the best rates. The closer you get to your departure date, the more you will pay for your ticket. The time of your flight has equal impact on your ticket price as the actual date. Flights outside of commuting hours are cheaper as are weekday flights compared to those on the weekend.

Wait Until the Last Minute

This is an excellent way to save money as long as you do not do this on a holiday weekend or other peak times for travelers. Airlines are more than willing to sell unused seats at cheap prices. But be prepared to fly because these tend to be truly last minute deals. Many travelers live by these last-minute discounts while others find it too stressful to rely on a future that does not guarantee you will get the tickets you need.  Read more...