Reader’s Question:

I’m just wondering why hybrid cars and high tech cars get higher auto insurance premiums rates here in Idaho. Aren’t we supposed to give these cars extra credit because of their environment-friendly nature?

George

Boise, ID

You have a point, George. I totally agree with you. Auto insurance companies, however, have a different point of view on this. Hybrid cars and high tech autos get high premium rates precisely because of their high tech nature. High-tech or hybrid cars have parts and circuits that are not in regular cars. They have parts that function differently compared to regular cars. Because of this, the parts are more expensive and not usually readily available from your friendly neighborhood auto parts store. When you need to have a hybrid car repaired and some parts need to be replaced, it’s going to cost the insurance company more.

Also, hybrid or high tech cars need “hybrid” mechanics. Hybrid cars are complex creatures and sometimes your usual mechanics may not be able to figure out what’s wrong with your car. You need someone with additional expertise. Mechanics will have to have a different training to handle hybrid or high tech cars. These mechanics’ service fees are not cheap, either. So, hybrid and high tech car parts are more expensive than what we are used, too. These are complex cars and they need mechanics trained specifically for these types of cars. It’s a sort of a field of specialization. And if you’re a car specialist in Idaho, you don’t come cheap.

Tags: auto insurance premium, car insurance, car insurance rate

Reader’s Question:

Hi! I’m planning to get married soon and I’m wondering if there would be any changes in my auto insurance cost once my civil status changes, too. By the way, I got my insurance here at Boise, Idaho.

Stella

Boise, ID

Hi, do you have your own insurance policy or are you covered by your parents’ auto insurance policies? You need to know that the rates in insurance policies are based on different factors, such as one’s civil status or age. If a person just got married or maybe is planning to get married soon, he or she could ask for a reconsideration of his or her insurance policy rates. In your case, you may contact your automobile insurance policy agent there in Boise, Idaho and ask to have the rates recomputed. You will notice from the computation a considerable drop in your insurance rates, which is basically due to your plan of settling down. This is because many auto insurance companies believe that married people are more “stable” and are considered less of a risk. The same thing goes with those aged 25 and above who are also believed to be stable and careful drivers with less chances of getting into accidents while on the road. However, if your current automobile insurance policy is from your parents, you will notice that the change is minimal, if there is any. This is because your parents’ auto insurance policy is already getting a special rate with the consideration of being “low-risk” drivers. And since you are covered under their policies, you get the same rate, too. But you may want to talk to your insurance policy agent to ask for rates better than those you are getting from your parents’ since settling down entails a different sense of “stability” as compared to being a dependent of your parents.

Good luck on the wedding!

Tags: auto insurance, car insurance cost, car insurance rate

Reader’s Question:

What is exactly is the difference between comprehensive automobile insurance and collision insurance? I’m Anne from Nampa, Idaho, and I need information. Thanks!

Anne

Nampa, ID

Well, hello, Anne from Nampa, Idaho. I’m Dave, and I’ll be glad to fill your information needs. Let’s start first with collision automotive insurance. It’s the type of insurance that covers you when your car, as the name implies, collides with something, may it be another car or some other inanimate object. You’re also covered for a car rollover, which means literally just that, your car rolling over. For cases like these, the automotive insurance company will pay for the damages up to the car’s fair market value. Fair market value is the price that the car would get in the current market place, provided that both buyer and seller are informed about the property and are free from trade pressures. Simply put, it’s how much the car would sell at the time. Additionally, collision insurance policies work on a no-fault basis, meaning that you are covered regardless of whose fault it is.

Comprehensive insurance, on the other hand is the type that protects you from damages that are caused by everything else apart from collisions. Hence, the name comprehensive. Instances of such are fortuitous events, like flood or earthquakes, vandalism or theft. But of course, you have to read your policy carefully to know the exact details of your insurance plan.

Tags: car insurance cost, collision insurance coverage, comprehensive insurance coverage