#1 Increase your deductible. It’s a gamble for sure because you’ll be responsible for a larger portion of the bill if you get into an accident. However, this is a sure fire way to lower your annual insurance costs without sacrificing liability coverage.

#2 Shop around and put your policy out for bid regularly. Staying with the same insurance company every year is not in your best interest. You can make changes to your policy at any time. You do not need to let the policy expire. So shop your insurance every few months to compare prices and ensure you are getting the absolute best deal on the market. To find the lowest rates use the quote box above right here at fastcustomquotes.com.

#3 Keep your credit scores as high as possible. More insurers currently use credit based insurance scores to determine what you should pay for your policy. So paying the electricity bill on time will actually keep your insurance costs from turning into high voltage premiums!

#4 Remove unneeded items. Although you may have towing coverage may help you feel better, those additions are rarely used and not really worth the cost. You pay between $15 and $35 a year over the life of your policy to cover towing. In the unlikely event that you need a tow, you’ll pay about $90. Similarly, a small economy car costs $25-$30 a day to rent and car rental tacks on another $25-$45 to your insurance bill every year. So you can feel good knowing that you saved yourself some money.

#5 Look for discounts. Cars that are equipped with safety and anti-theft devices cost less to insure. You can also save money if you insure your car and home with the same company. Other tips are to abstain from alcohol, get good grades in school and be sure to take a driver education course. The result will be that  you are rewarded with much lower premiums.

#6 Stay informed. The best way to save on insurance is to get multiple quotes from top insurance companies. Fastcustomquotes.com provides you with the resources to get the best rates available.

#7 And tip number lucky seven is to stay out of trouble. Accidents, tickets and other infractions all serve to skyrocket your premiums.

Research shows that the average driver’s reaction time is 1.5 seconds. Going a mere four miles an hour over the speed limit nearly doubles your risk for an accident. In addition, playing with your stereo or talking on a cell phone or eating a snack and can drastically increase your reaction time.

Your speed affects other things, which may inhibit your capability to react quickly.

Braking distance  varies depending on the street conditions, the roads incline, your tire condition and most certainly your speed. According to lab tests, your braking distance is proportional to the square root of your speed. That implies that the faster you drive, the longer the distance is required to to slow down and still maintain control.

Control and handling of your vehicle. The faster you drive, the less likely you are to be in full control of your automobile. Another well known fact comes to mind: Newton’s First Law of Motion, which states that an object in motion stays in motion. This is shorthand for the well known fact that if you are on slippery roads your car tends to continue to move in the same direction regardless of your attempts to change that direction. Braking often makes the problem even worse unless your car is equipped with antilock brakes. Faster speeds also increase the odds that you will over or under steer your vehicle.

Sooner or later driving fast will result in a ticket. Not only does a speeding ticket skyrocket your insurance rates, it drastically raises your chance of an accident. Another important factor is how the other people on the road are driving. you can’t account for other people’s driving skills and often you may need proper reaction time to account for their maneuvers. If you have forfeited reaction time due to excess speed you are taking a great risk.

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October through December is peak deer season, during which there is a “dramatic increase in the movement of the deer population,” according to the Insurance Information Institute.

Deer and cars just don’t mix, and in recent years deer have presented an increasing danger to drivers, mainly due to increased deer populations and habitat encroachment (ours into theirs).

Each year deer/car collisions cause thousand of injuries and hundreds of fatalities. The average cost per incident, when you factor in personal injury and vehicle damage, reaches an estimate of way over $10,000 per year.

According to a recent study conducted by State Farm Insurance, these states have the highest number of deer related accidents:

1. Pennsylvania

2. Michigan

3. Illinois

4. Ohio

5. Georgia

6. Minnesota

7. Virginia

8. Indiana

9. Texas

10. Wisconsin

The good news is that no matter where you live, responsible driving works. (The bad news is that that deer whistle you just mounted to your cars bumper doesn’t work, that is an unfortunate myth)

After an aggressive public awareness campaign, Pennsylvania based Erie Insurance Company saw a full six percent reduction in deer-related auto accidents. The conclusion? Regular reminders of the road hazards including deer will keep collisions down and safety up.

Here’s are some tips to minimize the risk of hitting a deer:

• Be particularly alert at night and the early morning
• Use your high beams when ever possible
• Wear your seat belt at all times
• Avoid all distractions such as phones, food and radios
• Always drive sober
• Brake firmly without skidding
• Do not jerk the wheel and swerve suddenly when you see a deer

If you do hit a deer, the Insurance Information Institute offers the following recommendations:

• Do go near or touch the deer (“A frightened deer can hurt you or further hurt itself.”)
• Get your car off the road as soon as possible
• Call the police immediately and report the incident
• Call your insurance agent and report any damage to your car

Collision with an animal is covered under comprehensive insurance, not collision, portion of your car insurance policy.

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So why does the government require auto/car insurance?

To answer this question, we have to understand the economic concept of externalities. Yes, the word sounds intimidating but read on, it’s really easy.

An externality is a result of a specific economic activity, an activity or event either conducted by a person, business, or government. In simple terms an externality is a side effect.

Externalities can be both positive and negative, but the ones you hear or read about in the news are usually negative.

Take the example of a chemical manufacturing plant, which is dumping the polluted water into the nearby river. The polluted water negatively impacts the river’s ecosystem and all of the fish die.

Meanwhile, down river, Brian operating a fly-fishing outfit notices the fish and his customers are slowly disappearing. The fish and his business are both dying. He is the unfortunate victim of a negative externality. He has no economic interest in the chemical plant’s activities, but he is negatively impacted in a big way.

So that is a negative externality, now let’s get back to auto insurance.

It all has to do with the ability of cars to cause significant damage through their use by individuals or businesses in the form of property damage or human injury.

“We force people to buy auto insurance to protect others,” says economist and writer Megan McArdle. “Drivers have a high potential to cause damage they can't pay for.”

In a world without auto insurance, driving would be too financially risky. An individual could wreck your car, send you to the emergency room with a broken hip, and that person could be unwilling or unable to pay for the damage that their actions caused.

In such a world you would be on your own to replace your car and pay your medical bills.

To sum it all up, McArdle says mandatory car insurance is “a social arrangement to minimize externalities.”

Does it pay off?

If you’ are actively looking for that new dream car, you’re probably considering how much your monthly payments will be along with considering various makes and models. TV ads make leasing seem like a piece of cake and more affordable than financing a car, but what’s the rest of the story?

According to a recent article in SmartMoney.com, leasing a car has the following advantages:

Low down payment. Leasing may involve a lower down payment, but with a smaller down payment comes larger monthly lease payments. (Though they still may be lower than purchasing a car with little to no down payment)

Low monthly payment. A big lease selling point is that your payments will be lower since you’re only paying the depreciation on the car during the period of the lease.

The ability to get a new car every couple of years. If your car is in good shape, you can simply turn it over to the lease owner, usually the car dealer and walk out with something new after your lease term is up.

All of these arguments make leasing somewhat attractive in the eyes of new car buyers. But what about the rest of the story? The SmartMoney article offers the following disadvantages:

No equity in your car. Much like renting an apartment, your auto payments don’t go towards owning anything. True you can walk away after 2 years but you walk away with empty pockets.

Limited flexibility. Lease terms come with heavy fines for early termination, as well as mileage limitations which may become very impractical if your commute to work changes during the lease. Most lease rules require you to drive less than 15,000 miles per year. You may face harsh financial penalties for every mile over the mileage specified in your lease agreement.

Insurance may not cover all eventualities. If the car is totaled or stolen during your lease term, your insurance may only pay for the car’s fair value at the time, which may not cover what you still owe on the lease. You may be able to purchase gap insurance to help prevent this specific financial nightmare.

Still not sure whether to buy or lease that new dream car? Here are several questions that will help you determine what works best for you:

Do you have much cash for a down payment? Sometimes the lack of a down payment make purchasing a car a little tough. Because leasing allows for a lower down payment  and yields lower monthly payments, leasing may be a good option for you. However, don’t get fooled into leasing a car that you really can’t afford.

How much do you travel? Do you carpool? If you tend to put a lot of miles on a car, leasing probably isn’t a good option for you. At the end of your lease term, you’ll be penalized for extra mileage, as well as any unreasonable wear and tear on the car. Also the flip side is that if you rarely drive, you may be paying more for depreciation than you’re actually incurring. In this case the lease holder benefits from your lack of driving.

How much driving will you do for business purposes? Interest on a car loan is not tax deductible. But, if you lease, you will be able to deduct at least a portion of your car’s depreciation on your taxes.

Can you foresee major life changes in the near future? If so, a lease probably isn’t in your best interest. Whatever cash you save with a low down and monthly payment may be obliterated if you have to terminate your lease early.

Leasing a car can be an enticing option. If you’re considering it, make sure you evaluate the items highlighted above and your budget and financial condition. Weigh those factors against the advantages (and disadvantages) of leasing. Doing your own research such as reading this article will pay off when it comes time to buy or lease your dream car.

Insurance coverage for your student entering college is one of the most important yet sadly overlooked aspects of sending your children off to college. Make sure you are asking the right questions and making the decisions that will protect your son or daughter.

Auto Insurance

Question: If my student drives a friends car, will they be covered by my car insurance policy?

Answer: First, if your child doesn’t take a car to college, you could save 20 percent or more on your own auto insurance policy. However, most insurance experts and financial advisors will advise against dropping your child from your policy. Here’s why: If they get into an accident while driving a their friend’s car, they will NOT be covered.

If your student brings his or her car to a school in a large metropolitan area, your insurance rates could move up dramatically. Contact your insurance agent or get a free quote from fastcustomquotes.com to see how much of a premium adjustment to expect.

Health Insurance

Is my student covered under my health insurance policy while at school?

If your student is going to school full time your current policy “should” provide coverage but you really MUST check your policy to be sure. Most health insurance policies will not cover college students if they're going to school part-time, or if they're over the age of 23. In that case you will need to take out a separate policy for your student. Some policies also do not cover students if they're going to school in a state other than where the policy was purchased. It is very important to talk to your health insurance provider to confirm what coverage is if any will be in force when your child leaves for school.