Personal Factors That Affect Insurance Rates

A reporter recently asked Edmunds about the kinds of personal information that can affect the cost of car insurance. She also wanted to know whether people could do anything to address personal factors that were keeping their car insurance rates high.

They’re good questions, and Edmunds was happy to help answer them. During the research it became clear that when it comes to car insurance, there’s hardly anything that isn’t personal. Here are five all-about-you factors that can affect your car insurance premium:

1) Your driving profile. Such factors as the number of miles you drive annually and your accident and ticket history are major elements in setting your insurance rate. The less you drive, the less risk of an accident and a claim. Safer driving — meaning a history free of accidents and moving violations — also points to someone who’s less likely to file a claim.

2) The car you drive. Car insurance premiums are based in part on the car’s sticker price, the cost to repair it, its overall safety record and the likelihood of theft, according to the Insurance Information Institute. The cost of fixing a brand-new $225,000 2010 Ferrari 458 Italia is going to

Is Cheap Gas Bad for Your Car?

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Gasoline is expensive and you’re looking for every way possible to save money at the pump. You already shy away from premium fuel, knowing that your car doesn’t require it. You’d like to save a few pennies per gallon more by going to an off-brand gas station. But you can’t get rid of the nagging fear: Is the cheap gas going to damage your car’s engine?

Edmunds.com put this question to experts in several fields, including an automotive engineer at a major carmaker, gasoline manufacturers and two engineers with the American Automobile Association (AAA). It boils down to this: You can stop worrying about cheap gas. You’re unlikely to hurt your car by using it.

Because of the advances in engine technology, a car’s onboard computer is able to adjust for the inevitable variations in fuel, so most drivers won’t notice a drop off in performance between different brands of fuel, from the most additive-rich gas sold by the major brands to the bare-bones stuff at your corner quickie mart.

Still, spending a few extra pennies per gallon might provide peace of mind to

Car Insurance for Teenage Drivers

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The statistics about teenage drivers aren’t good. According to the Insurance Institute for Highway Safety (IIHS), 16-year-olds get into accidents almost six times more often than drivers between the age of 30 and 59. No wonder car insurance premiums are so high for this age group.

However, not all car insurance companies take the same dim view of young drivers. And some discounts are available to help you cut costs. Remember, the higher the risk, the higher the cost of insurance premiums. Let this be your guiding principle as you shop for insurance.

Here are 10 suggestions to help lower premiums and keep your teenager’s license free of violations:

1. Help your teen learn the laws and follow them to the letter. By far, the best way to lower car insurance costs for teens is for them to keep their driving record clean. Make safe driving a family project. In some states, restrictions apply to new drivers. Parents should know what the laws are and insist that their sons and daughters follow them.

2.

Repair or Replace Your Windshield the Right Way

When faced with replacing a windshield, many car owners default to the lowest-price option. But if you take this route and are in a serious accident, your decision could cost you your life.

An incorrectly installed windshield could pop out in an accident, allowing the roof to cave in and crush the car’s occupants. Furthermore, when the front airbags deploy, they exert a tremendous force on the windshield and will blow out one that is not firmly glued in place.

“There are a lot of schlock operators” installing windshields, says Debra Levy, president of the Auto Glass Safety Council, which offers certification for installers. She says using original manufacturer’s glass is a plus, but choosing a good installer is even more important. To find a certified shop, visit Safewindshields.org and type your ZIP code into the box at the top of the page. Certification is valuable because it keeps installers up to date on advances in adhesives and changing automotive designs.

David Beck, one of two technicians at Windshield Express, near Salt Lake City, installs eight windshields a day and has been working in the auto glass business for 18 years. Beck agrees that certification is important and warns that there

Should You Fill Your Car’s Tires With Nitrogen?

A member of the Dodge Challenger owners’ forum was buying a new car from a dealer and noticed green valve-stem caps on all four tires. The salesman told him that the tires had been filled with nitrogen, which would keep the tire pressure and temperature more consistent and that it would prevent tire rot from the inside out. It wasn’t a free add-on, though. The “nitrogen upgrade” was a $69 item on the supplemental window sticker. Another forum member later posted that his dealer was charging $179 for this same “upgrade.”

Some dealerships and tire stores claim that filling your tires with nitrogen will save you money on gas while offering better performance than air. But a closer look reveals that nitrogen has few benefits and much higher costs. For starters, a typical nitrogen fill-up will cost you about $6 per tire.

Why Nitrogen?
The Get Nitrogen Institute Web site says that with nitrogen tire inflation, drivers will note improvements in a vehicle’s handling, fuel efficiency and tire life. All this is achieved through better tire-pressure retention, improved fuel economy and cooler-running tire temperatures, the institute says.

This sounds great in theory but let’s take a closer look at each of

How To Prep Your Car for Long-Term Storage

There are a number of times when people need to store a vehicle for an extended period of time. Maybe you have a convertible that you love to drive in the summer, but winter is on the way. Or perhaps you’re going to leave town for a job or an extended vacation. Maybe you are in the military and are being deployed overseas.

Whatever the reason for your time away from the vehicle, you’ll need to put it in storage. If you simply let your vehicle sit on the street or in a garage for an extended period of time, you may return to a dead battery or — worse yet — a damaged engine, ruined tires and a rat’s nest under your hood.

Here are important steps to take before you store a vehicle. They will preserve the life of the engine and ensure that your car starts when you return to it.

Keep It Covered
A garage is the ideal place to store a vehicle. This will protect it from the elements and keep it at a temperature that’s relatively stable. If you don’t have a garage and you can find accommodation at a reasonable price, consider putting the car in

How To Cut Teen Insurance Rates

Teens ages 16-19 are three times more likely than drivers older than 20 to be involved in a fatal crash (or any crash, for that matter) according to the Insurance Institute for Highway Safety. It’s not too surprising, then, that teen drivers tend to have high insurance premiums. For parents, this can mean a big jump in insurance premiums once you add your teen driver to your policy. However, there are ways to reduce your costs right out of the gate, even for very inexperienced drivers. Here are some ways to keep policy costs at a minimum.

Choose the Right Car
It’s simply a matter of economics. There are some cars that cost more to repair and replace than others. There are also some cars that are more likely to be stolen and others that protect passengers better in a crash. Combined, these three characteristics have a lot to do with how much you’ll pay for the collision and theft portions of your policy, says David Goldstein, the author of Insure Your Car for Less: A Practical Guide to Saving Money on Automobile Insurance.

There are several ways to choose the least expensive car to drive. First, check the

Young Drivers, Marijuana and Car Insurance

Marijuana, young drivers and serious car accidents are on a collision course. Fatal crashes involving drivers whose systems showed evidence of THC, the active ingredient in marijuana, nearly tripled in 10 years, rising from 4.2 percent in 1999 to 12.2 percent in 2010, according to a study released earlier this year by Columbia University’s Mailman School of Public Health. In another four-year study, 43 percent of fatally injured drivers under 24 tested positive for cannabinoids. The percentage was lower for older age groups.

Now that marijuana is legal in Colorado and Washington and widely tolerated elsewhere in the U.S., parents may be on their own collision course with pot: They face steep car insurance hikes and even cancellation if young drivers on their policies are convicted of a DUI stemming from marijuana use. Here’s what parents need to know about drugged driving and the effect it can have on insurance coverage.

Drugged Driving: A Growing Concern
Pot use behind the wheel is a subset of a category that law enforcement and the traffic safety community call drugged driving. Every state has laws addressing it. In many, the laws say if a driver is stopped and authorities can prove the individual

How To Fix Your Car’s Oxygen Sensor

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If your car’s “Check Engine” light is glaring at you, it’s probably because the oxygen sensor is malfunctioning. That’s right, the oxygen sensor. It’s a little device that’s a mystery for most drivers but its misbehavior is the problem that most commonly triggers a Check Engine light, according to CarMD.com, which sells an automotive diagnostic tool and provides repair information. The oxygen sensor unseats the formerly most common Check Engine light culprit: a loose gas cap. There are fewer reports of that problem because savvy motorists have learned to fix it themselves and consumers now buy new cars with capless gas tanks.

But don’t despair. Replacing your car oxygen sensor will keep you from wasting money by burning extra gas, and the repair isn’t horribly expensive. We know this firsthand. We had to replace the O2 sensor on our 1996 Lexus ES 300, the subject of our Debt-Free Car project, and it wasn’t as much of a hassle or expense as we had feared.

After the dreaded Check Engine light appeared in our Lexus, we plugged the CarMD device into the car’s computer to

Should You Get Credit Insurance When You Buy a Car?

For most of us, buying a car is the second largest financial transaction we’ll make, next to buying a home. And we’re likely to get loans to finance our car purchase. In the fourth quarter of 2014, 84 percent of new cars purchased were financed, according to Experian Automotive.

If you’re financing your car purchase through a dealership, it’s also likely that the finance and insurance manager will offer you warranty and insurance products, such as an extended warranty, gap insurance or tire-and-wheel protection. The F&I manager might also offer credit protection, which is meant to cover your car payments should you be unable to pay them yourself because of layoff, injury, illness or death.

The most venerable of these products, with an almost 100-year history, is credit insurance. Consumer groups have long been leery of credit insurance products, which are offered not just for cars, but also for credit cards and other consumer loans. Often, the consumer groups contend, the products are expensive and unnecessary. Further, there have been instances of lenders forcing the credit insurance on consumers.