Monday, January 28, 2008

Shopping Around & Without Auto Insurance

1.Shopping Around

It is always difficult to decide where to go and which insurers to choose. Familiarize yourself with useful advice which help you to find the right car insurance quote for you.

The internet has made shopping around comfortable without the need to wait on call centers. Moreover, some insurers may provide a 20% discount to people who buy their car insurance online.

Generally there are four options available when seeking and buying car insurance. These are:
• Insurance Brokers – The purpose is to deliver the customer choice by utilizing their computer systems. Nevertheless, a broker can only ever present the insurers he has deals with.
• Direct Insurers – They cut out the brokers because commissions paid to them can be saved if the insurer gives the advantages to you. These include: Direct Line, e-Sure, Admiral, Hastings, 1st Alternative, Churchill, Privilege, Norwich Union Direct and Cornhill Direct, Elephant and Budget.
• Branded Providers – Popular reputable names who have added insurance to their extensive list of products. These include: Virgin Money, Tesco, Sainsbury's, MBNA, Marks and Spencer, the Post Office, the major car dealerships and Kwik Fit.
• Full Search Provider – With a full search provider you can enter your data and perform a full search of the market to receive a list of potential car insurance providers that will include insurers, direct insurers, brokers and UK brands.

It is always better to find out more about the company's financial reliability, if you're concerned the cheapest quotes are from insurers you're unfamiliar with. You can do it with the help of the Standards and Poors website. It has the following ratings:
• AAA - Utterly strong
• AA - Very strong
• A - Strong
• BBB - Good
• BB - Marginal
• B - Weak

2.Without Auto Insurance

Think over the consequences of not having auto insurance. Get to know about the penalty of driving without auto insurance. Find out how to budget for car insurance.

When young adults graduate college they are eager to start their first "real world" job, have their own place and purchase a brand new car - one that does not need a screwdriver to start. College students are graduating with not only a college degree and a dream, but also they are graduating with an essential amount of debt. In fact, a lot of students graduate with an average of $3,262 in credit card debt - 10 percent of that group owing more than $7,000 in credit card charges.

Students forget about other life costs, such as health care, 401K deductions, income taxes, car payments, auto insurance, rent, utility bills, student loans, credit card bills and food expenses into their monthly budget. "After you graduate and get your first job, you forget to think about all of these expenses," said a graduate from Ohio University. "Unfortunately, reality sets in pretty fast and you realize you do not have the money for living - it is a hard lesson to learn!"

Graduating College
You may ask why there is so much credit card debt among college students "Many credit card companies have kiosks on college campuses providing students with free pizzas and t-shirts to try and allure them to sign up for a credit card," mentioned David Roush, CEO of "The problem is a lot of college students do not have enough income or financial knowledge to afford a credit card - a problem that is following students in their lifetime and results in financial despair."

In addition to the great credit card bills, students are also graduating with student loans varying from $10,000 to $52,000 or more. Often students think that they will be able to pay everything off once they receive a job and begin earning "real" money, but that simply is not the case.

A lot of new graduates have not only the problem of loan bills, they also have other necessary expenses, such as auto insurance - one bill you legally cannot drive without! "Driving without auto insurance is illegal in all 50 states, but many young graduates choose to go without auto insurance because they think they cannot afford to have it," noted Roush. "It is a frightful thought when 15.3% of all automobile accidents are caused by drivers between the ages of 20 - 24."

While deciding not to pay for auto insurance may seem like a nice idea at the time, graduates are not taking into account the expense of getting caught without auto insurance or the cost of getting into an automobile accident. "Imagine if you had to pay the medical bills of someone who gets into accident when you are at fault - suddenly paying for car insurance does not seem so bad," says Roush.

The Penalty of Driving Without Auto Insurance
According to the Insurance Information Institute, the cost of driving without auto insurance can range from state to state, depending on the percentage of drivers who are uninsured in that state. For example, in Massachusetts residents have penalty from $500 to $5,000 and get a one-year jail sentence. In Florida, Louisiana, Connecticut and New Jersey, drivers operating a vehicle without the state required minimum will have their vehicles impounded - which can cost them thousands depending on how long it takes them to get their car out.

Budgeting For Auto Insurance
As you look for auto insurance, make sure to examine if the insurer offers a 6-month or 12-month payment plan to help you manage your auto insurance payments better. In addition, many auto insurance providers propose a variety of discounts, including alumni discounts. It will be good to ask if your college or university is eligible for a discount, because every bit helps when you are first starting out on your own.