Cheap car insurance is possible because modern vehicles are safer

Back in the 1970s, the Ford Pinto had an unfortunate characteristic. If there was a rear-end collision, it often burst into flames. Ignoring the advice of its engineers, the manufacturer decided not to worry about safety. It made a car that looked good and was easy to market. Marketing became a problem when news about the fire hazard could no longer be suppressed. Today, people studying business ethics use this as a case study on how not to run a business. Partly as a result of this public relations disaster, the government decided it should become more active in encouraging manufacturers to become more safety conscious.

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The National Highway Traffic Safety Administration had been formed in 1970. It was expanded to run tests on all new makes and models. Today, it runs a full set of crash and rollover tests and, more importantly, actively discusses design with the manufacturers. When faults are discovered, recalls are arranged and agreed fixes put in place. The vehicles we drive today are the safest we have ever had.


One of the key results has been the fall in the number of people seriously injured. This is quite remarkable given that the number of traffic accidents each year has remained fairly stable. This is not only good news for the drivers and their passengers, it's also good for the insurance industry. You may have noticed the steady rise in the cost of medical treatment over the last decade. It's become increasingly expensive for both immediate treatment and long-term rehabilitation following injury. With fewer people needing treatment, the cost to the insurers has fallen. This has been passed on to us through relatively cheap car insurance rates.

So what specific safety features have improved our chances of survival. It all begins with the humble seat belt. It may not sound a revolutionary device, but persuading people to wear the belt has been the single most important development in preventing head injuries as people not longer try viewing the world through the windshield. Now add in air bags and the safety cage. Suddenly the compartment for holding people became safer. Outside, engineering metal has produced crumple zones that absorb the energy of impacts. It's cheaper to replace the body parts than to repair the human body. Anti-lock braking systems helps prevent skidding by keeping more of the tire on the road.

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The same applies to traction control which keeps rubber on the road while accelerating. Finally distractions are reduced by paddle controls for changing gear, centralizing switches for cruise control, the windows, and adjustments to the seats for comfort. Put all these together and you have a safer vehicle and fewer accidents. Fewer accidents mean less money required to pay out on claims so cheap car insurance rates can apply to more drivers. All this stems from the disasters of the 1970s and 1980s. Big government's intervention has saved tens of thousands of lives and helped produce cheap car insurance for more drivers.

Find the cheap car insurance by preparing for winter driving

Many people simply admire the beauty of the fall as the leaves turn red or brown. They allow winter to sneak up on them without taking any precautions. This year, the Northeast has already seen snow and ice. It came slightly earlier than usual, reminding us of the need to use autumn as the time preparing for winter driving conditions.

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The question, of course, is what you should do. In part, this depends on where you live, what the winter usually brings in your area, and how frequently you are required to drive in bad conditions. Obviously, if you live in the south where little happens from one year's end to the next, you can ignore the problem. But if you live in central or northern areas, there are varying degrees of hazard to contend with. Let's start with the more extreme problems.

Experience should tell you whether you live in an area which is regularly serviced by snow plows. If not, you need to look carefully at the state of your tires (winter tires have a softer rubber to improve traction), and consider the need to learn how to fit chains. Now think ahead. You need to be able to see where you are going so wiper blades must be effective. The car must start when the temperatures fall below freezing. So maintenance is necessary to reset the ignition and prevent the water system from freezing. The battery must be reliable.

The windshield wiper fluid must not freeze. Now let's assume it has snowed. Before you get in the car, clear all the snow from the windows, headlights, and side mirrors. If you want to avoid annoying those following behind you, you can clear the roof as well. Before you set off, check the radio for warnings about the conditions where you propose to drive. If your journey is not absolutely necessary, stay home. Even if you own a four-wheel drive vehicle, drive slowly. Any vehicle can slip on an icy road. Finally, you should carry an emergency kit.

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Your cellphone must be fully charged so you can call for assistance. If you may be in areas where signal strength is poor, carry blankets, candles and food. Should you feel like helping others who get into trouble, you can carry booster cables to deal with flat batteries and tow cables.

 
In all this, remember to check the car insurance rates by state. You want the premium rates tailored to the weather conditions you are facing. Now think carefully about your own claims record. You command the cheap car insurance rates if you go without ever making a claim. So the safer you make your own driving, the lower your rates will fall over time. One possibility to consider is going through a winter defensive driving course. Learning how to react when your car goes into a skid is useful. Put all this together any you should strike a balance between maintenance costs and cheap car insurance.

Cheap car insurance is easy to find

The first question is to be sure what cover you need. No matter whether you live in an at-fault or no-fault state, you have a choice on how much cover to buy. You could go with the minimum or look for cover on a wide range of different risks with generous maximums, sufficient to meet most of the losses you might sustain. In part these choices will be determined by your financial status. If you have enough money available, there's no reason to take unnecessary risks. You buy enough insurance to protect all your interests.

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 But if money is in short supply, you are in the market for cheap car insurance. This means hitting the legal minimum mandated for your state and then adding whatever seems affordable (and wise). If you are in the borderland, one way to look for savings is in the detail of what's included in the cover. So, for example, some collision policies assume you want every last element of loss covered.

But you may decide you don't want to cover the cost of towing your vehicle from the scene of an accident or for storing it in a secure location while waiting for repair. Perhaps you have a second vehicle and don't need to cover the cost of renting an alternate. By unbundling all the components in the cover, you can often save money by eliminating those you can pay for out of your own pocket.


This naturally leads to the question of the deductible. Although it may seem odd that you should be allowed to insure yourself for the first slice of any claim, the mandate is only interested in confirmation a minimum amount of cover is guaranteed. So long as you have the money available, this is a reasonable way of trading down to the cheap car insurance rates. But never forget the risk of two accidents close together. You may have enough saved or available on your credit card for one accident. What happens if there's a second? From the insurance company's side, the answer is simple. If you don't pay, it need not pay a cent. This leaves you in a deep financial hole.

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Finally, look at the definitions of the risks covered and the list of the events excluded. Cheap car insurance usually means you get less cover for your premium dollars. The limitations can catch you out. For example, if you live on a flood plain and your cheap car insurance excludes damage due to flooding, where are you going to put your vehicle when it rains?

The small print can hide a number of problems and unless you take the time to check through, you can find you paid for a policy that fails to cover you in the more common situations you face. This is all perfectly fair. If you choose not to read the policy you can't complain if you buy something that doesn't help you.