If you’ve been buying pennsylvania car insurance for any length of time you’re no stranger to the common…almost annual rate increase. One of the most common questions we’re asked as insurance agents is how did the insurance go up even though my cars are now a year older. The drivers who haven’t had an accident or violation in many years have a legitimate concern when they feel that they are being penalized for other drivers misfortune. Up until recently the only option we agents had was to shop for better prices with other insurance companies. The downside to switching insurance companies was giving up accident forgiveness, longevity percs and possibly coverages that are no longer offered. To switch companies for a savings and then be penalized if you have an accident is not a good option but more of a gamble that may not be worth the risk to many consumers.

There is now an option that makes the rate increase a thing of the past. This new option called “RateLock” is being offered by Erie Insurance exclusively through their independant agents. This product is so revolutionary that Erie has applied for a patent on the concept. The RateLock option will allow clients to lock in their rate and possibly never see another increase on their car insurance. Imagine the relief of knowing that there will be no surprises when the insurance bill is opened.

Are there some strings attached ? Some fine print? It’s a simple straight forward product from a well respected company so the restrictions are out in the open for everyone to see. Here are the three things that can unlock your rate…temporarily…until you lock it back in after the changes are made.
1.Change a vehicle
2.Change a driver
3.change your address
 

These aren’t hard to understand but probably deserve a little explanation. If you trade your 2010 Mercedes for a 2011 Ford Fusion you deserve to pay a lower, more appropriate rate for the lower valued car. The same would occur if you traded up to a higher value car.

The change of driver is also fairly simple. If you “locked in” when you had young drivers and now they’ve left home, you’ll want to take them off your policy. Removing a young driver rate is something all parents look forward to. Same thing when adding a new driver. Fortunately for those who add young drivers to their ratelocked policy…the rates are not based on a 16 year olds age as they were in the past. The ratelocked rates are averaged out so parents won’t be shocked by a 16 year old driver rate, but a more averaged rate that is more affordable.

Moving from Bradford, Pa to Philadelphia is a move that will cause your insurance rate to quadruple. Why?, because the cost of doing business and the losses in a city like Philly are astronomically higher than smaller towns in Pennsylvania. The same is true for those who move from the city to rural Pennsylvania. The rates will unlock for your new address and then you have the option to re-lock them again.

This new protection option is available in a number of the states that Erie Insurance operates in. This article pertains to Pennsylvania car insurance so I haven’t gone into any detail about other states. Visiting the Erie Insurance website will help you determine if this program is available in your home state.

I welcome you to visit our site or call my agency for further details on how you can “lock-in” your pennsylvania car insurance rates and avoid another costly rate increase.

Being able to buy cheap Pennsylvania home insurance seemed to be impossible in the past.  If you look closer, you will notice that one of the biggest expenses a homeowner makes is for home insurance premium payments. Well, not anymore. Given the state of the economy after the recent subprime mortgage crisis, people have been incentivized to buy real property in order to liquidate the assets of different financial institutions. Because of this, different industries that are peripheral to the buying of homes such as insurance companies are tendering competitive and affordable packages in order for homeowners to buy insurance from them. Yes, this is the best time for you to buy an insurance policy for your home.

Alternatively, it is also realistic to assume that because of the slowdown of the economy, you have probably been wondering whether purchasing home insurance is a necessity. You probably thought about if it would be strategic to spend the insurance money on other things, as there is always a chance that your house would not be affected by anything anyway. Frankly speaking, that is a very dangerous way to think about things. In taking care of properties, it is better to assume the worst and be ready for the worse, than hope that the best will never end.

Further, insurance policies are not just to protect your properties, but to absolve you of liabilities just in case someone has an accident and gets hurts in your house. It is also important to avail of a policy, especially if you want to have your property appraised, or if you want to use it as a collateral or mortgage for future financial decisions. Having an insurance policy not just protects the structure, but all the movable assets inside it. This is especially true if you want to protect your furniture against natural and artificial reasons of destruction. For example, if after a vacation you find yourself having a house fully robbed of your furniture, there are provisions that will require insurance companies to pay you for the value of the items lost.

Therefore, if you are planning to get an insurance policy now, the basic step that you should do is to look for insurance policy quotes, which are essential if you want to know the usual rate of policies within the state, the common exclusions, and conditions, which can lead to a smooth transactions. Getting insurance quotes will most likely lead to free and full professional consultation regarding your situation, as well as the most strategic financial decision, which you can take. Meeting with professionals will make you more acquainted with different state regulatory measures and perhaps the repercussions of any decision that you will make. If you are new to this, the best place for you to get information is to use the internet, as most insurance companies already advertise online. You can also use this medium to assess the practices and delivery of promises of companies if you decide to purchase cheap Pennsylvania home insurance finally.

If you recently received your car insurance renewal and your rates have increased it is the perfect time to learn how to find a cheaper Pennsylvania car insurance quote.  In the state of Pennsylvania, drivers are required to purchase and maintain continuous car insurance to satisfy state mandated financial responsibility laws.  If you are caught driving without insurance you could face severe punishments including fines, registration suspension, driver license suspension, and up to 6 months in jail.  Insurance companies rate insurance premiums based on how likely you are to cost the insurance money over time.  When you start to request auto insurance quotes, understand how insurance companies factor in risk to rate your insurance premiums and learn how to lower your premiums without lowering your coverage.

How Does Annual Mileage Factor In?

One of the first questions your insurance agent will ask you following your vehicle information is how many miles you drive on a weekly, monthly, or annual basis.  While you may think this question is irrelevant, to the insurance company it is very important.  Insurance companies rate your premiums based on statistics and risk.  If you are on the road more often then another policy holder, you are more likely to be involved in an accident.  This is why you should disclose a very accurate figure when you are obtaining a Pennsylvania car insurance quote.  Most insurance companies rate based on mileage bands.  The lowest premiums are assigned to drivers driving between 1-3,000 miles and the rating bands will go up in premiums with 15,000 or more being the highest.

Why Do Insurance Companies Care How I Use My Vehicle?

Another question pertains to how your vehicle is driven.  Vehicle usage is very important to factoring insurance premiums.  Studies show that individuals who commute to and from work or school generally drive under stress.  Heightened levels of stress increase the occurrence of accidents.  This is why commute and business usage classifications are rated higher than pleasure use.  If you only drive your vehicle around town for pleasure, make sure to report this to your agent to prevent being charged a higher commuter rate.

What Does Garaging Location Mean?

Some individuals prefer to receive their mail at a different address.  If this is the case, be sure to advise your agent that your vehicle is garaged at a different location.  The “garaging” location generally refers to where your vehicle is parked a majority of the time.  The rates for comprehensive and collision are based off statistics in the zip code where the vehicle is parked.  If your mailing zip code has a higher rate of claims, you could be paying higher premiums without even knowing.

Insurance companies consider much more than just driving record and the value of a vehicle to calculate insurance premiums.  Hundreds of different algorithms are used to add and subtract from the base premium of a policy.  Make sure you understand the importance of giving accurate information and you will find a low-priced Pennsylvania car insurance quote.

Pennsylvania is one of the many states that require insurance to operate a vehicle, which makes it important to get a Pennsylvania car insurance quote before moving to the state. The following information outlines the required coverage in Pennsylvania, defines the difference between limited and full tort coverage, and offers suggestions for keeping the cost of the premiums low. It also details the consequences of driving without insurance and explains a way for uninsurable drivers to obtain a policy.

Required Coverage

Pennsylvania requires drivers to maintain bodily injury liability in the amount of $15,000/$30,000. This means that it will pay out up to $15,000 to one person for injuries or $30,000 for one accident, no matter how many people are involved. The state requires $5,000 coverage for property damage liability and another $5,000 for medical benefits. Property damage kicks in when the insured driver is at fault and covers damage to another person’s possessions. Medical benefits cover medical bills for the insured driver and anyone else covered on the policy, regardless of who causes the accident.

Limited versus Full Tort

Limited tort is a cheaper option for Pennsylvania drivers, but it limits the types of damages the insurance will cover. The driver waives his or her rights to place claims for certain things like pain and suffering unless the injuries meet specific criteria set forth by law. The third party at fault for the accident might get off the hook if the insured driver has limited tort coverage because the innocent person’s insurance carrier will not use its resources to pursue the person responsible.

Keeping Premiums Low

Purchasing limited tort coverage keeps premiums low, as does removing optional types of coverage such as uninsured motorist, underinsured motorist, and income loss or funeral benefits. Once the car has been paid off, collision and comprehensive coverage can be reduced or eliminated. Cars with safety features like airbags or security features such as a car alarm also have lower premiums. Many companies offer discounts for multiple vehicles or multiple policies, and good drivers and good students often qualify for discounts as well. Mature drivers can lower premiums by taking a refresher-driving course every three years. Finally, compare prices and coverage at no less than three insurance companies to find the best possible value.

Consequences of Driving without Insurance

Driving without insurance in the state of Pennsylvania is against the law, and the consequences can be severe. If caught, a driver can have his or her license and the vehicle registration suspended for three months. There is a fine of $300 for driving without insurance and substantial fees associated with reinstating both the license and the registration. The auto may be impounded and the driver will have to pay to get it out of the impound yard.

Insurance for the Uninsurable

A driver might be found uninsurable because of a poor driving record or more than one accident in a year. These drivers can participate in Pennsylvania’s Assigned Risk Plan, which every insurance company in the state is required to take part in. The Assigned Risk Plan forces companies to cover otherwise uninsurable drivers so they can legally operate a vehicle.

Pennsylvania is a beautiful state to move to, but driving without an automobile policy can be risky. Taking advantage of discounts, choosing the right features and comparing policies can keep premiums to a minimum while preventing a driver from having to experience the consequences of being caught on the road without insurance. So before moving to the state, make sure to get a Pennsylvania car insurance quote and secure the proper coverage to drive safely and legally.

Paying for automobile insurance is a necessity, but there are several ways to get cheap Pennsylvania car insurance. Choosing the right coverage, taking advantage of discounts and buying the safest vehicle are all ways to reduce the premium. Performing a policy comparison can also ensure the lowest prices are being paid for the greatest amount of coverage.

Choosing the Right Coverage

Pennsylvania requires drivers to maintain specific amounts of liability insurance. Bodily injury coverage must be in effect in the amount of $15,000 per person and $30,000 per incident, regardless of how many people are involved. Medical benefits cover the driver and others covered by the policy and should be secured in the amount of $5,000. Property damage liability protects damage the driver does to another person’s property and it should also be in effect in the amount of $5,000.

Vehicles with loans need to keep collision and comprehensive coverage, but once the loan is paid off this coverage can be lowered or dropped to reduce premiums. Other optional coverage such as uninsured or underinsured motorist, rental reimbursement or towing coverage can be eliminated to lower the price of the policy further. Higher deductibles also result in a cheaper annual cost.

Finding Discounts

There are many discounts available for Pennsylvania residents, depending on the individual company. People with good driving records or students with good grades can get discounted premiums. Families with more than one vehicle on the same policy or those with their homeowners and auto insurance through the same company generally qualify for a reduced rate. Young drivers can get a break with a completed drivers education course while mature drivers can take a refresher course every three years to get a price cut.

Buying a Safe Vehicle

The type of vehicle being insured has a significant effect on the annual premium. As a rule of thumb, vehicles that are more expensive result in insurance that is more expensive. Safety features such as anti-lock brakes and airbags can lower the cost of insurance. Prices can also be reduced with the addition of security features like car alarms or location devices. Sporty cars are pricier to insure than station wagons, and off-road vehicles can carry some of the highest premiums of all.

Performing a Cost Comparison

Perhaps the easiest and most effective way to find the cheapest policy is to perform a cost comparison. It is advisable to start by understanding the driver’s needs before beginning to compare policies. Decide whether the minimum required coverage is enough or if the amounts should be higher to protect the driver’s assets fully. Review the benefits of add-ons such as towing and rental reimbursement and determine if any of these extras would be helpful. Once the drivers needs have been established, gather information from no less than three companies. Do not forget to look to the Internet as some online companies offer great savings to Pennsylvania drivers.

Paying for automobile insurance is not fun, but being caught without it is worse. Pennsylvania residents can suffer loss of registration, loss of license, fines and fees if the appropriate coverage is not in effect. To keep insurance affordable, drivers should be aware of legal coverage requirements, take advantage of discounts and buy the safest vehicle possible. To find cheap Pennsylvania car insurance, a driver should perform a cost comparison to find the best value at the most reasonable price.