Insurelane Insurance Blog

You’re allowed to exclude a driver from your auto insurance policy in most states and you’re allowed to reinstate the person at a later date if you wish and the insurer agrees. Once you name somebody as a driver exclusion they’ll remain ineligible to drive your car on the insurance policy until you ask the insurance company to lift the exclusion or until the company informs you that they’re stopping the exclusion.

An exclusion allows you to name somebody you don’t want driving your car or a specific vehicle on your policy, for whatever reason. However, in rare instances you may have to name the driver exclusion each time you renew the policy. An excluded driver won’t be covered at all under your policy if they drive your vehicle.

The most common reason people name an excluded driver is because they have a bad driving record and if they live in your home your rates could possibly be higher because the insurer assumes they have easy access to your vehicle. They’re usually considered to be high-risk drivers because of their poor driving record. In some cases, the insurance company may even ask you to exclude a driver in your household.

Each policy is different, but in general, the excluded driver remains as an endorsement on the policy for the life of it. It’s something you should look into though just in case your policy requires you to name the exclusion each time it’s renewed. If the driver exclusion is ongoing you can change your coverage and add another auto to it without having to request an exclusion because it’s still the same policy.

If, for some reason you’d like to allow the person to drive your car and be included in the policy you just need to contact the insurance carrier and ask them to remove the exclusion. Also, if the person lives in your home and moves out you can ask the insurer to discontinue the exclusion.

Allowing an excluded driver to operate your vehicle could be very expensive if they’re involved in an accident. Even if they didn’t cause the accident they may not be allowed to claim for damages to the vehicle in some states.

There’s been a recent onslaught of fake auto accidents in Florida to scam money from insurance companies. It stems from the minimum $10,000 personal injury protection (PIP) coverage that all Florida drivers are required to carry. The $10,000 is to be used for personal medical treatment no matter who caused the accident. However, there have been numerous fake accidents recently and this has resulted in higher auto insurance rates for the entire state.

Many people, including Governor Rick Scott, are seeking new laws to help stop the fraud. Scott is asking residents to support House Bill 119 to put a halt to things. The bill would place a maximum cap on attorney fees and would force doctors to answer questions under oath regarding medical care given to supposed accident victims. In addition, anyone hurt in a crash would have to seek medical treatment from a hospital emergency room no more than 72 hours after the incident.

The purpose of the bill is to prevent fraud and forcing victims to seek treatment at a hospital should be able to do that. This is because much of the fraud is being carried out by several doctors and clinics that are in cahoots with the alleged victims. According to an article in the Miami Herald, most of the staged accidents occur when a car stops suddenly on the road and the car behind them bumps into it.

The driver and/or passengers in the lead car then immediately visit a doctor or clinic for treatment, which isn’t actually given since it isn’t needed and a claim for $10,000 in put in, which is then split by the doctor and driver, and possibly a lawyer. It’s believed that some clinics recruit drivers to take part in the scam and are walking way from fake accidents and injuries with thousands of insurance dollars. The state of Florida said PIP claims have risen by 275 per cent over the past five years.

The cost of the $10,000 PIP insurance is often higher than the price of $100,000 worth of liability coverage for drivers. The Senate has also introduced a bill to deal with the problem of fake accidents. This one requires the police to fill out more detailed reports while attending accident scenes. It also calls for the creation of a task force to deal with the fraud and for tighter regulation of clinics. This bill hasn’t been taken up yet by any committees though.

It’s expected that there will be changes to both bills, but many feel there will eventually be some type of laws that passes which will see insurance rates come down.

The best way to protect yourself and others while driving is to make sure you have an adequate amount of auto insurance and keep the policy certificate in your vehicle. Of course, there are still some places where auto insurance isn’t required by law, but those days may soon be coming to an end as more and more states are requiring drivers to possess a minimum amount of insurance.

Keeping a copy of your policy in the car will enable you to prove that you have insurance. However, in some states such as Virginia, it’s law to have auto insurance, but it’s not the law to prove it. According to an article by the republic.com, this has been causing some confusion in the state as drivers have received tickets for not being able to prove insurance.

Some Virginia motorists have been fined and charged court costs after failing to show local police proof of insurance after being pulled over during traffic stops. Virginia state law requires drivers to possess liability insurance for their auto or to pay $500 to the Department of Motor Vehicles for driving without it. If you don’t have the insurance policy or haven’t paid the $500 fee you can be fined up to $500 for a misdemeanor. However, the law doesn’t state that motorists have to carry proof of insurance with them.

Still, some Virginia officers have been ticketing drivers for an offense that doesn’t exist. Local court records have shown that police officers have written out several tickets regarding no proof of insurance and this has resulted in fines of $100 for some motorists plus court costs of $10. The obvious solution to the problem would be for the state to require drivers to carry proof of auto insurance while driving or proof that they’ve paid the $500 fee for an uninsured vehicle.

It was reported that the General Assembly considered such a mandate a minimum of three times in the past, but never passed it. You should always know what the auto insurance requirements and laws are in your area, but you can also save a lot of hassle by always carrying proof of insurance with you every time you drive.

With the Christmas holiday season upon us it’s a good time to remember that one of the main reasons for huge auto insurance rate increases in America is alcohol-related driving violations. Being convicted of driving under the influence UI) will usually result in a significant increase in your insurance premiums as soon as your insurer finds out about it. Based on research, the cost could typically increase between 30 and 100 per cent, but could even be higher.

The increase in premiums will depend on the state you live in. For example, the rates could go up about 30 per cent in Colorado for a DUI conviction, but in North Carolina there’s a 12-point penalty under the state’s Safe Driver Incentive Points system and premiums have been known to skyrocket by as much as 340 per cent.

Understandably, insurance companies view drinking and driving offenses as quite serious and risky. This is why you’ll likely be referred to as a high-risk driver and the rates will rise. Some insurance providers may even cancel your current policy when it expires, leaving you to find a new insurer for high-risk drivers.

The length of time your premiums will be affected depends on state laws, but you can count on paying higher rates for a DUI for at least three years. However, many states keep a DUI conviction on your record longer than just three years. You could find your rates affected for five or more years. In California, a conviction means you aren’t eligible for a safe-driver discount for a period of 10 years from the conviction date.

According to an article by foxbusiness.com, after a conviction, many states use something called an SR-22. This is basically certificate of financial responsibility for people who get their licenses back after a DUI conviction, or other serious driving offenses. If you’re required to carry the SR-22 certificate you will be notified what the minimum amount of insurance you need is and expected to purchase it.

The SR-22 certificate usually has to be carried by the driver for a specific number of years, usually anywhere between one and five. If your auto insurance is canceled while you have an SR-22, your vehicle registration and license will usually be suspended.

According to the American Insurance Association (AIA), the National Transportation Safety Board (NTSB) is doing the right thing by calling for a ban on using mobile devices while driving. The AIA, which represents approximately 300 insurance companies, feels that drivers should be concentrating on the road at all times instead of distracting themselves by talking or texting on mobile phones and other types of electronic devices.

Leigh Ann Pusey, who is the CEO and president of the AIA, released a statement that said her organization is supporting the recommendation the NTSB recently made which called for a countrywide ban on using personal electronic devices for any reason other than an emergency. She said that driving is dangerous enough as it is on a daily basis and it’s important that people are focused on their driving when they get behind the wheel of an automobile.

Pusey added that over 3,000 people died in traffic accidents last year because they were distracted by something or other while they were driving. She said that according to research, texting or talking on a mobile phone is just as bad as driving under the influence of drugs or alcohol. She said that America has come a long way over the years when it comes to highway safety, but people are still losing their lives on the roads for no reason and more must be done to help prevent it.

According to an article by the Insurance and Financial Advisor, the State Farm insurance company also said that distracted driving is a major problem in the modern world and it’s getting worse not better. David Beigie, who is a public affairs vice president with State Farm, said that safety advocates are deeply concerned over the use of mobile devices in vehicles. He added that according to research, people of all ages are being distracted on a regular basis by using mobile devices, not just the younger generation.

Several other organizations and insurance companies have voiced their support for the NTSB’s recommendation.

It might come as a surprise to many drivers to learn they can be held accountable for an accident even if their car is parked. According to the law, the car can still be liable for causing an accident even if it’s parked with nobody in it. However, it depends on the situation and local laws.

For instance, if a car is parked illegally and is blocking an exit or driving lane it can be held liable. However, if you happen to nick a car in a parking lot that was parked legally, you’re at fault for the collision. Basically, if the parked car is a hazard then it can be held accountable, but if it’s just parked inconveniently then it’s typically the driver’s fault.

If a car is parked illegally, but isn’t creating a safety hazard the owner will likely receive a citation for parking illegally, but it’s up to other drivers to navigate around the vehicle since it’s considered to be just an inconvenience. If you’re driving and can see the car parked ahead of you then it’s your responsibility to avoid it.

However, if an auto is parked illegally and you can’t see it until it’s too late or it’s creating a safety hazard then the insurance company of the parked car could be on the hook for some or all of any damages that occur. This is especially true on highways where there are narrow shoulders and drivers might not have a chance to avoid a collision due to moving traffic in the other lanes.

There are many different scenarios though and all of the facts will be taken into consideration by insurance companies, but it’s always worth calling your insurance carrier to find out who’s at fault. Another example would be parking in an illegal spot on a road and blocking the view of cars parked behind it. If one of the vehicles behind the parked car has to pull out to see and is involved in an accident it could be blamed on the parked car.

According to an article by foxbusiness.com, if you’re involved in a collision and feel a parked car caused it, try to get a police report as well as information from any witnesses. You could also take photos of the accident scene for more proof. If you hit a parked car and you’re at fault then your policy should pay for the damage of the other vehicle under the liability coverage. If your vehicle is parked legally and damaged, you would need to have collision coverage to repair the damage if the other driver takes off and hasn’t left you with any of their insurance details.

When it comes to acts of God or acts of nature and your auto insurance, you need to have comprehensive coverage to make sure the damage will be taken care of. These terms are used by insurance companies when damage occurs by acts of nature, such as a storm knocking a tree down on your car. There are numerous things that fall into this category, including earthquakes, hurricanes, fires, floods, and snowstorms etc.

If you just have collision and/or liability coverage on your auto, you’ll need to pay for the damage out of your own pocket. But with comprehensive coverage, you should be covered. An act of God or nature is something that can’t be prevented and nobody is at fault. This means if you make a claim due to this type of damage your rates usually won’t increase.

However, some people try to shirk their responsibilities by blaming accidents on acts of nature, such as crashing in a snowstorm. But, this isn’t considered an act of nature since there was a driver behind the wheel who chose to drive in those weather conditions. If your car is damaged in a collision and the other person’s insurance company refuses to pay then you may have to take them to court or file a claim with your own insurer and they’ll attempt to collect for you.

Most insurance experts feel that comprehensive coverage is essential for owners of new cars since damages from acts of nature can reach thousands of dollars or can total an auto. For example, this year’s tornadoes in Joplin, Missouri, resulted in approximately 6,500 auto claims which totaled about $54 million.

But while most comprehensive plans cover acts of nature it’s still a good idea to check and see if the coverage has any uncovered perils such as flash floods and lightning strikes. Areas of the country that are more susceptible to hurricanes, floods, and earthquakes usually charge more for this type of insurance because the region is at a higher risk.

According to an article by Fox Business, if you owe any money on your car then comprehensive insurance should be bought to protect yourself. Along with covering natural disasters, it will protect the vehicle against just about any other damages caused to it that don’t occur in a collision. If you car is only worth about $1,000 though, the insurance might not be worth buying. The National Association of Insurance Commissioners estimates that 77 per cent of car owners in America have comprehensive coverage.

Britain’s Office of Fair Trading and the House of Commons Transport Select Committee are investigating the auto insurance industry in that nation to try and figure out the how the companies work and how they set their premium costs. This comes just days after some British insurers boasted about their rates going down.

In late October Britain’s Automobile Association (AA) said that premiums were falling and other experts claimed prices were tumbling by quite a significant margin. But that came as news to most drivers and some investigating was done by some of Britain’s leading newspapers including the Telegraph.

They found that not only did it cost more to insure a car in 2011 compared to 2010, but they rose higher than the national inflation rate, which was at its highest level in the past 20 years. The British Insurance Premium Index was studied and it revealed that the average cost for comprehensive insurance rose by 16 per cent while third party, fire and theft coverage jumped up by 21.4 per cent.

It’s also been reported that the average cost of comprehensive auto insurance in Britain is now £1,500, which is approximately U.S. $2,400. This is an increase of 288 per cent when compared to the cost in 1994. But that’s nothing compared to third party, fire and theft policies as they went up 354 per cent over the same time period. In fact, third party, fire and theft policies in Britain offer less coverage than comprehensive, but often cost more.

Some companies are advertising the fact that customers are saving money on premiums by suggesting they’re paying lower premiums or the same price as last year. But the investigation showed that auto insurance price-comparison websites were actually raising the costs even higher than the insurance firms were, and possibly pocketing the difference.

The AA insisted that for each 100 British pounds the auto insurance industry took in during 2009 they were paying out a total of 123 pounds, but they have neglected to give out the figures for the past two years when premiums have soared.

According to an article by the Telegraph, it seems the only way some Britons can escape the high costs of auto insurance is to purchase cars that cost less to insure when it comes to Britain’s insurance rating system for vehicles.

Many teenage drivers across America earn some extra cash by delivering pizzas for the local parlor or chain. But if you’re using your own vehicle to deliver the pies you need to make sure you have the proper auto insurance in place.

In fact, delivering pizzas or anything else is actually a pretty risky job. According to a study by the Bureau of Labor Statistics, being a delivery driver is ranked as the eighth most dangerous occupation in the nation as they suffer hundreds of fatal accidents each year.

Pizza delivery drivers are at risk because many of them are pretty young and don’t have much driving experience. They’re often in a hurry and take their eyes off of the road while searching for addresses, usually in the dark and sometimes in bad weather.

But the main problem with delivering pizzas in your own vehicle is that your personal auto insurance plan likely won’t cover you. However, if you’re driving the company’s vehicle then they’re liable for any accidents. Of course, all speeding tickets etc. will be placed on your driver’s license.

A pizzeria is able to purchase liability insurance if its driver is using their own vehicle, but this type of plan won’t cover your medical bills and damages to the auto. This means it’s important to check with your insurance company and employer before delivering pizzas to find out exactly what type of coverage you have if you’re involved in an accident. You’d be surprised at how many pizzerias don’t have the adequate insurance in place.

According to an article by Fox Business, if the employer doesn’t have any insurance then the driver will likely have to face the consequences. This could result in financial ruin for some people if they’ve been negligent and don’t have the right type of coverage in place.

If you’re going to use your own vehicle to deliver pizzas or anything else be sure to check with your insurance company. To be insured for damages and liability you can buy commercial driver insurance. It costs more than personal policies, but it will provide the necessary coverage.

However, it’s important that you purchase the right amount of coverage as the vehicle owner could be responsible if the policy limits are exceeded by the amount of damage. In addition, the parents of a young driver could be responsible for their actions if the child lives with them and is listed as a dependent on their tax return.

While Great Britain and the USA are similar in some ways, there are small differences that can often cause a lot of confusion. For instance, in Britain, when you purchase goods and services, the cost on the price tag is what you pay. The taxes are included and there are no hidden costs.

When Britons and other Europeans rent a car in their homelands, the cost of third-part liability insurance is always included in the rental bill. However, in the USA and Canada auto-rental firms aren’t obligated to supply insurance to renters. Collision Damage Waivers and Loss Damage Waivers are available, but they cost extra, usually up to about $25 a day.

This has caused some confusion with British travelers as it’s estimated that close to 1.5 million of them rent cars while on holiday in America, which represents about a third of all British tourists to the U.S. A company named YouGov recently conducted a study that shows about 75 per cent of British visitors aren’t aware that the insurance policies need to be paid for separately in North America.

According to an article by Market Watch, this can be a costly misjudgement since they could be charged for the entire cost of the automobile if it’s damaged. They could also face huge lawsuits if a third party is injured or killed in an accident no matter who was at fault. What complicates matters worse is the fact that some auto-rental agencies do in fact include the insurance in their costs while others don’t.

A visitor who rents a car in New York may have the insurance included. But when they rent a car in California it might not be added to the bill, but the customer assumes it is because of their previous experience with renting a car in the USA. In addition, some states don’t require liability coverage and some companies UK websites often quote prices with insurance included while their U.S sites don’t include it.

It’s easy to see why there’s a bit of confusion when Britons and other Europeans rent vehicles in the U.S. This also leads to people assuming they’re getting a better deal at one company over another, but don’t realize that the price will go up when the insurance is added on. Whenever you’re renting a car in the U.S. it’s recommended that you inquire about the insurance policies that are available. You may even want to purchase a stand-alone policy from a third party.

These types of policies will cover rental drivers no matter who they rent the car from or what state they’re driving in. If this type of insurance is bought beforehand, then no additional insurance policies need to be bought at the rental agency. Some of these policies also cover carjacking, travel expenses, road rage, and hotel expenses.

For some odd reason, most California insurance companies treat driving without a license as a less serious offense than driving with a suspended license. According to OnlineAutoInsurance.com the insurance rates are generally higher for those whose licenses are suspended than for people who are caught driving and convicted because they aren’t licensed.

Those convicted of driving without a license still feel the crunch when it comes to buying auto insurance, but not as much as drivers with suspended licenses. The insurance website conducted a study recently by trying to purchase insurance from online comparison sites.

They applied for coverage as a single driver with a clean record and then compared the quotes to a driver applying for insurance who had one conviction of driving with no license as well as a driver who had one conviction of driving a vehicle with a suspended license. They received quotes from 11 major insurance providers. The comparison was used for a 30-year-old driver of a 2010 Toyota Corolla LE who is male and married.

The results of the survey are as follows: Drivers who were convicted of driving with no license faced premiums that were up to 37 per cent higher than a driver with a clean record with the average being 23 per cent higher. However, three of the insurers offered coverage at the same cost.

The person who was convicted of driving an auto with a suspended license was punished by premium increases from 28 to 76 per cent with the average being 56 per cent. All 11 of the insurance companies charged higher premiums for the driver who was convicted of driving with a suspended license.

According to an article by the San Francisco Chronicle, statistics show that drivers with who aren’t licensed and those who are driving under suspension are generally considered to be a higher safety risk. Also, the California Legislature states that over 20 per cent of motorists who are involved in fatal traffic accidents don’t have driver’s licenses.

The Legislature added that drivers with suspended licenses are four times more likely to be involved in fatal accidents than drivers who are licensed.

A lot of drivers cancel their comprehensive auto insurance once their cars get older as they feel it’s just not worth it. However, if you live in areas of the country where there are high deer populations, you may want to think twice about cancelling anything, especially when hunting and mating seasons come into effect.

If you hit a deer with your vehicle these days the costs to repair it usually costs a few thousand dollars and sometimes the insurance companies will even write the car off. According to statistics gathered by State Farm, the most collisions between vehicles and deer take place in the month of November. Over 18 per cent of all crashes with the animals take place in this month with October being the second worse followed by December.

On the bright side, the actual number of collisions with deer is going down at a pretty sharp rate. Between July of 2010 and June of 2011 there were a total of 1.09 incidents. That’s a decrease of seven per cent from the year before and nine per cent from three years previous.

State Farm has also released the odds of hitting a deer. The most likely location to run into one is West Virginia with the odds of one in 53, followed by Iowa, South Dakota, Pennsylvania, and Michigan, where the odds are one in 90.

But even though the number of actual accidents is decreasing, the cost of repairs to automobiles is increasing. The average cost to repair a vehicle after hitting a deer is now $3,171, which is an increase of 2.2 per cent from last year. In addition, your auto insurance won’t cover it unless you have comprehensive coverage.

According to an article by MSN, If you don’t have comprehensive you’ll be stuck with the bill. This is why some drivers who live in areas with a high frequency of collisions with large animals keep their coverage, even when their autos are quite old. Another reason is that the value of used cars is pretty high these days, which means even older models can be worth insuring. It’s a good idea to check the value of your vehicle before turning down or cancelling your comprehensive insurance.

In addition, if you rent a car in a high-collision region, make sure that it’s covered if you happen to hit a deer. Be aware that deer are usually most active during the hours of dawn and dusk. It’s a good idea to use your high-beam headlights when possible so you can see better. If you do see a deer in the road, brake but don’t swerve your vehicle as you could be hit by oncoming traffic.

If you’re worried about your car breaking down while driving it, most people opt to join an organization such as the AAA or something similar. These types of organizations can help out in a number of situations, such as running out of gas, a dead battery, locking the keys in the car, and other types of minor breakdowns.

However, you can also get insurance that covers you for breakdowns. This isn’t a warranty or guarantee, it’s actual insurance that kicks in when your car decides to pack it in. It’s known as mechanical breakdown insurance and it covers the cost of repairs to your vehicle.

This type of insurance is purchased separately from your regular auto insurance policy as it covers different types of things. It can usually be bought through your auto dealership, insurance company, or a financial institution which deals in auto financing.

The plans don’t cover the wear and tear on the vehicle or the regular maintenance procedures. This means things such as tires, windshield wipers, and brakes aren’t covered. The policies are an ideal way to cover yourself once your vehicle’s warranty has expired or as supplemental insurance.

Some of the policies cover repairs for a certain time period or amount of miles. You can insure more parts of the vehicle with additional coverage. For instance, you may want to pay a higher premium to cover things such as air conditioning, the fuel system, and steering, etc.

Most of the policies also cover things such as rental car coverage and towing expenses. The cost of the insurance is based on the type automobile, the length of the policy or miles covered as well as the level of coverage chosen. Some of them also have deductibles to help keep the premiums down.

In addition, if you have purchased a policy and decide to sell your car the coverage can be transferred to the new owner. This could make it easier to sell the car. If the car is sold and the coverage hasn’t expired you are also eligible for a refund for the unused portion.

The policies vary when it comes to repairs. Some plans allow you to have your auto repaired by any licensed mechanic while others will require you to have the repairs done by a specific mechanic or at a specific auto repair shop. Most of the plans also pay the mechanic directly and cover parts and labor and don’t have any effect on your regular auto insurance costs as they’re not related at all.

According to an article by insurance.com, When looking into this type of insurance it’s a good idea to see how it differs from the manufacturer's warranty and find out exactly what type of repairs are covered and which ones aren’t. You need to find out if you can have the car repaired anywhere or if there is a network of mechanics and you need to visit one of those.

In a way, the policies are sort of comparable to health insurance plans for automobiles.

Even though every state in America, other than New Hampshire, requires drivers to possess automobile insurance, it’s estimated that about one out of every seven drivers in the country is driving around without any coverage. According to an article by USA Today, a leading insurance industry organization estimates that 13.8 per cent of American drivers don’t have the necessary insurance in place. The number has increased since the nation has been faced with its recent economic woes as many people simply aren’t renewing their policies.

David Corum, who is the Insurance Research Council’s vice president, said that the number of uninsured drivers has been closely related to the number of unemployed people in the country during the past 20 years. He added that insured drivers are paying a huge price for those who don’t have any insurance and that the figure supplied by the National Association of Insurance Commissioners for 2007 was close to $11 billion. Corum said most insured drivers purchase policies that cover them in case they’re injured in a collision with a non-insured driver.

Loretta Worters, who is the Insurance Information Institute’s vice president, said that the current laws seem to be ineffective when it comes to forcing people to purchase auto insurance. She said that some people just can’t afford the insurance and others don’t want to pay the surcharges for having bad driving records. She added that things are unlikely to change because the odds of getting caught driving without the proper coverage are generally pretty low and the penalties for those who are caught aren’t nearly severe enough.

According to the Insurance Research Council, Massachusetts has the lowest rate of uninsured drivers at just four per cent, while Mississippi has a nationwide high of 28 per cent. Drivers have to prove that they have insurance before they can register an automobile in Massachusetts. This seems to be a simple way to solve the problem, but for some reason it’s not being followed in about half of the other states.

In Mississippi, police don’t have any way of determining if a driver has auto insurance and no proof of it is required by the state. However, it’s simple enough to rectify if the legislature had enough courage to do so.

Most people realize and understand that their driving record, sex, and age are usually used by auto insurance companies when calculating their yearly rates. However, many drivers don’t know that their credit ratings are also being used as a factor by some companies when deciding how much to charge. It might not be fair, but in most American states it’s legal.

An article on MainStreet.com reported that a new study said there’s definitely a link between credit ratings and insurance premiums. In addition, CarInsurance.com reported that drivers who have a credit rating that’s above 750, pay about $785 less for their insurance each year when compared to same-aged drivers whose credit rating is below 700.

It’s estimated that a 25-year-old driver who has a good credit rating would pay about $22,800 less by the time they retire. However, the method of calculating rates by using credit scores isn’t used by all auto insurance companies. Many of them only use the practice when customers opt to pay their premiums in monthly installments.

Understandably, not everybody is happy about the inclusion of credit ratings when calculating premiums and some state legislatures have challenged it. Seven states have even passed legislation that restricts the practice. These include Texas, Michigan, and Maryland. If you’re not sure what the laws are where you live, you can check with the insurance commission in your state to see what methods are being used and if there are any restrictions.

If you’re going to pay your yearly premium up front you may not be subjected to a credit check. If you do find your state allows the practice you may want to try the pay-as-you-drive type of insurance policy to get cheaper rates.

Insurance companies can track your driving practices, such as speed and distance, by inserting a device into your automobile’s technology system. If the results are favorable, lower rates are often offered.