Modifications to the cars gives rise to expensive insurance. But why aren’t there cheap modified car insurance available?

Vernon

Salem OR

Normally, any modifications made to your car will have your car insurance cost rising. Thus, it is a common insurance tip on how to lower rates to avoid putting additional attachments or make any enhancements to your car. Doing these will create alterations to your car’s standard factory specifications and would increase your premium rate. Most often, conservative car insurance companies see modified cars, especially race cars, as more prone to theft due to their enhanced features and as we all know, the greater the risk of your car being stolen, damaged or lost, the higher your car insurance rate would be. For those who love to enhance their cars, cheap modified car insurance tends to be hard to find.

But don’t worry, there are a few car insurance companies that has found a niche in providing insurance to owners of modified cars at cheaper prices than they should be. These niche cheap modified car insurance companies do not have the same thinking with the rest of the car insurance companies. In fact, they have opposite views on modified cars as compared to the conservative companies.

These niche car insurance companies know that those car owners who love to make modifications to their cars, enhancing and upgrading in the process, are more likely to be the people who actually love their vehicles! For if they don’t love their cars so much, they won’t make efforts to upgrade them or at least, modify them a little to suit their personality. Given that fact, if you love something so much, you make all efforts to take care of it, right? The same goes to car enthusiasts! Since they spend time, money and effort in modifying their cars, they will take very good care of their cars at all cost. In the end, they are the ones who are less likely to make claims against their insurance policy.

Another reason is that if given the chance, thieves would prefer to steal standard vehicles than those modified cars with distinctive identification marks. You got the logic?

I hope you now understand why there are now cheap modified car insurance policies.

Ok so I bought my dream sports car! Now what? How do I get insurance for this? Is there a way to make it cheaper?

Bruce

Seattle WA

Many people are trying to meet both ends or working laboriously so that they can buy their dream sports car. With the increasing problem in our economy, no one will bother saving money to buy their dream car. But for those who have, protecting their investment is one thing they can do since sports car nowadays really costs a lot. This is the reason why many sports car owners are getting cheap sports car insurance to ensure the future of one of their prominent and most important property.

Sports car maintenance involves a considerable expense and a sky-high amount of insurance. But these are already inevitable, hence, it is given. Sports car insurance is greatly indispensable since this kind of car is prone to accidents and favorite of car thieves. The good news is that many insurance companies are have created a new trend in gathering car insurance. The driver is now included with the car insured. The new system promotes safety and to ensure older people and those people who have a good records in driving are allowed to pay lesser insurance than the young car owners. The concept also promotes safe driving, thus, allowing every motorists to minimize their insurance premiums they are paying and that includes the sports cars.

But mostly sports car insurance is already included on the package offered by the manufacturing companies yet these sports cars will still need some additional insurance or get from a particular private insurance company. To have an idea with regards to the market price, shopping for quotations is a must. Moreover, you will also get some special deals which are offered daily. Consulting the insurance agents will help you know about the various criterion which will be based on the amount of the insurance may have been lessened. In other words, it is better to explore around before taking up for a cheap sports car insurance.

Do race car drivers fall under the high-risk category? What type of insurance coverage would suit them better?

Mildred

Edison, NJ

Race car drivers can be regarded as high risk drivers, considering they are always facing risky situations when they are about to do their job – which is racing. But come to think of it, race car drivers are professionals and are more disciplined in doing their job. Shouldn’t they be regarded as the safest drivers the world over instead?

For race car drivers, insurance companies tailor a specialized coverage a (high risk car insurance) that would best fit their job description. An insurer refers to it as Racing Car Insurance. As race car drivers or race car owners, they find their racing car as some sort of investment. To them, it means a lot, and highly valued because they put a lot of efforts and expenses on their car. Insuring their car would mean a lot to them. However, it is hard to find high risk insurance because very few specialized insurance companies can tailor the policy to such demands. Plus, many companies do not want to risk their business considering insuring a race car, as it would be a pretty expensive deal. It would demand a host of coverages that maybe only big companies could afford. Comprehensive and collision plans/policy are nowhere near that of an ordinary car insurance policy, and their policy limits go way over the roof – because racing is a big business. The insured parties do all they can to protect their investments, and insurance companies in turn do all they can to cover for all claims and losses.

Accidents happen frequently in the racing field and claims pile up. Insurance companies generally would offset this by setting higher premiums. Getting insurance for race drivers depends on who’s driving. If they rarely crash, then they might enjoy relatively lower rates. Always remember the rule that the greater the risk an insurance carrier has to take, the higher the rates that would reflect that risk.

I am going to get me a muscle car. Yes, a muscle car. I’m going to get one in a few weeks. My friends here in Texas have been telling me that this is going to cost me a lot when it comes to purchasing auto insurance. Is there any way I can bring down the auto insurance premium rate?

Kate

Carrollton, TX

Your friends are right, Kaye. A muscle car is a powerful car, and it usually fetches a high auto insurance premium. A muscle car is sweet. Its powerful engine does not come to life when you start it, it roars to life. It’s built for speed. I haven’t seen a muscle car I didn’t like.

And this is actually the reason why it’s more expensive to insure a muscle car. Drivers of this type of car would usually test the limits of the car. The urge to go really fast in a muscle car is just great. High performance cars are rated as high risk cars. If you drive fast most of the time, the likelihood of an accident is higher. The likelihood of the auto insurance company paying for the repair of your car is higher, too.

You can try to bring down the auto insurance rate by enrolling in a defensive driving class. Contact your auto insurance agent in Texas to know which classes to attend. Your gender also works for you. Females are usually given lower auto insurance rates because females are believed to be safer drivers, more relaxed on the road and don’t drive around too much. If your car has lots of safety features, that would help a lot, too.

I’m from Montana and just bought a new car. What do I need to do next?

Desiree

Billings, MT

Before acquiring car insurance, it is important to know that every state has its own insurance laws. Every state demands that its motorist have financial accountability in case they cause vehicular accidents.

The State of Montana requires its motorists to have minimum liability coverage. This insurance covers $25 thousand in medical expenses for a single car occupant, and pays up to a total of $50 thousand in medical costs for all occupants in the car. While for property damage, an amount up to $10 thousand is covered by the car insurance.

Car insurers cover repairs for damages to public properties or the other motorist’s car. Since medical and repairs cost are steadily rising, minimum liability coverage may not be enough. And since the one at fault will shoulder all the expenses to repairs done to his or her own car, it would be smart to carry collision coverage. This section in your policy will assist in paying for your car repairs.

While car insurance is mandatory in all states, some motorists drive without any coverage at all. For this reason, uninsured motorist insurance is also very advisable. This will cover for your medical costs following an accident if an uninsured driver causes it.

Shop around. Get quotes from many car insurance companies. It is best to talk with an agent who represents various companies to save time. You can also visit the websites of car insurance companies in Montana. Knowing all your options will prove to be useful financially.

If you have decided on a company, always remember to deal with a legitimate local agent. Ask for a proof of license. Do not make cash payments. Either pay by check or money order made out to the company. Do not forget to ask for a copy of the policy within a reasonable amount of time from purchase. Read your policy carefully especially the fine print. Knowing the coverage type and its limitations is very important.

I live with my big sister, and she keeps telling me to up my deductibles in my auto-insurance to lower my premiums. Is there any merit to this idea?

Caleb

Columbus, OH

Good day to you, Caleb! Well, you seem to be, well, irritated by big sister’s constant “advice.” Anyway, there is truth to what your sister is saying. Let me outline how this thing works for you to better understand it.

Okay, what is a deductible in the first place? The deductible is that value you agree to shoulder once you file a claim with the auto insurance company. An example would be if you file a claim of, for ease of computation, just $1,500. If your auto insurance deductible is $500, then the auto insurance company covers the $1,000. Increasing your deductible value means a lower cash-out for the auto insurance company. So, how would it affect your premiums? Think of it this way, it is kind of like betting, and both you and the auto-insurance company are on a see-saw. So, when you assume more of the risk, the risk on the auto insurance company’s side becomes lower, so they’d ask you put in less money. After all, you would be paying more for the claims now. Why do this? If I was in your shoes, I would assume that I am a safe driver, assuming more risk means making a bet on that being “safe” at most time. I’d agree to have more deductibles. Now, you can give big sis a break.

I’m planning to buy a new car here in Louisiana. Will my collision and comprehensive insurance rates be affected by the model of my car?

Paula Anne

New Orleans, LA

Before you buy a car or before you buy auto insurance, try to get more information because insurance rates are definitely affected by the model of the car that you’re driving. Driving a high performance car or driving a sports car means you will to pay more for auto insurance. But this fact is not the general rule in determining insurance rates for your car. As a matter of fact, most auto insurance companies calculate your collision and comprehensive premiums by studying the car’s loss history, whether the model gets stolen very often, and the costs of its repair after an incident. Nowadays, insurers charge higher premiums to sports utility vehicles or SUVs due to recent tests that show that SUVs cause more damage in accidents than other passenger vehicles.

Auto insurance companies often utilize actuarial companies that give ratings of vehicles. Certain factors are used to determine the comprehensive and collision coverage costs in order to minimize the insurance company’s risks. Then, these actuarial companies assign a risk number to a car which is then used by the auto insurance company to calculate their policy rates. However, these risk numbers are not available to the public.

But if you want to know how much it will really cost you, you can contact an auto insurance company before you purchase a vehicle. That way, you can find out first how much you should pay for an auto insurance of a BMW or a Ford pick-up truck.

Just remember, it is better to look around for more information before jumping into conclusions or making decisions about buying a car or getting auto insurance.

I am a flight stewardess, and I travel a lot because of the nature of my work. So, I really don’t use my car that much, and I just leave it in Naperville, Illinois, where I actually live. When I am away for long periods of time, can I suspend my auto insurance?

Gayle

Naperville, IL

The answer to your question is not really that easy. You will have to take a lot of things into consideration.

When you we say automobile insurance, it does not necessarily mean that we are having ourselves and our vehicle protected from damages only when driving. The automotive insurance coverages that we may need if we constantly use our car are collision coverage, the basic liability coverage required by most states, uninsured and underinsured (UM/UIM) motorist coverage, and the coverage for medical payments.

But what if your car just stays at home and gets damaged for numerous reasons, like vandalism or theft or fire? Comprehensive coverage is the one that is going to pay for these kind of damages which do not necessarily involve a collision. I think, what you can do is suspend just a part of your whole automobile insurance policy and not cancel it entirely.

Another matter that you need to be aware of is that all states in this country require vehicle drivers to carry a certain amount of insurance coverage. Most motorists avail of the basic liability coverage. If you are to suspend your auto insurance policy, they might also cancel your registration. If this happens, when you get back, you will be faced with all the troubles of having your car registered and reinstating your automobile insurance.

In any case, you will still have to correspond with your auto insurance carrier to be really sure about this. If you are 100% sure that your car is not in danger of getting damaged or stolen there in  Illinois, while you are away, you might want to suspend just a part of your coverage. But never just stop paying your premium without talking to your auto insurance company because this will just give you more trouble.

Hi! My name is Jimmy, and I would like to know a couple of things about getting a car insured . I have the car financed, and I wanna know which kind of insurance would suit best for this setup. Thanks.

Jimmy

Hillsboro, OR

This should be an easy one, Jim. You’re going to need ALL of them. You have to have full coverage, Liability and Comprehensive, and Collision type. This, i think, should hold true not only there in Hillsboro, Oregon, but across all states. You see, Jimmy, finance institutions aren’t about to take the risk of not being able to retrieve the loan amount in case there is total loss. Though “full coverage” doesn’t necessarily mean your car and everything in it is covered, it still would cover “the whole car”– to include those “parts” that are permanently attached to it. Though loosely defined in this sense, it is also about the only type of vehicle insurance coverage the finance institution would want you to carry.

As with any other business, the financing firm will invariably require that you have the means to address issues involving collisions, damages to the vehicle, property, etc., etc. If you consult your finance relations officer, you’d be sure to hear the exact same thing, though maybe in a slightly more acceptable tone. But the bottom line of all this is that they want to get their money back in case you lose the car for some reason or another, and they want to make sure you can get the car fixed if it is damaged.