Every year, the National Insurance Crime Bureau (NICB) compiles a list of the most frequently stolen cars in the United States. Year after year, the list is surprising to those who are not familiar with car theft. I will count down the top 10 in just a moment, but I like to point out a couple of interesting observations before I start.

First, late-model cars do not tend to be stolen as frequently as older cars, and this for a variety of reasons. They are easy to come by, replacement parts are readily available, and anti-theft devices (including keypad access) take longer to breach.

Second, older cars may be stolen even if they look like moving wrecks. To understand why this is the case, just read through my top 10 list. You will understand by the time you are done. With that said, here is the list of the top 10 stolen cars in the USA:

10. Nissan Sentra (1994) – The 1994 Sentra was the last of the third-generation of this line. It was also the first to feature Nissan’s now famous SR20DE engine that made it the fastest subcompact of its day. The car sold very well in Mexico, the Philippines, and other markets.

9. Ford Explorer (2002) – The Ford Explorer was completely redesigned for the 2002 model year. As the first in the third-generation of Explorers, the biggest difference with the 2002 was the introduction of independent suspension.

8. Dodge Ram Pickup (2004) – As part of the third-generation of Dodge Ram pickups, the 2004 models sold very well in the retail market. The third-generation face-lift made the truck look more rugged and durable, so thieves who steal these vehicles are looking for grills, headlights, and rims.

7. Chevy Silverado Pickup (1999) – Silverado was the name given to Chevy’s full-size pickups bearing a specific trim package from 1975 through 1999. Without that trim package, they were simply designated with letters and numbers. In either case, they have been among the best-selling pickup trucks of all time.

6. Acura Integra (1994) – Believe it or not, the Acura Integra is actually just a Honda with a different name. The company made the car from 1985 through 2006 in Japan. It is not uncommon to still see these cars on the road today.

5. Dodge Caravan (2000) – In 1994 Chrysler introduced a brand-new vehicle to the market: the minivan. The 2000 Caravan was the last in the third series and sported a brand-new look and a beefed-up, six-cylinder EGH engine.

4. Toyota Camry (1991) – The Camry is probably Toyota’s most defining vehicle to date. It put the company on the map when it was first introduced in 1982. The 1991 model was the first in the second series and introduced a wider body and sleeker look.

3. Ford Pickup – Full-Size (2006) – Ford has always been a good competitor when it comes to full-size pickups. Their F-series is constantly doing battle with Chevy for market dominance.

2. Honda Civic (1998) – The Civic is easily Honda’s best-selling car in North America. It been continually produced since 1972 and is now in its ninth generation. The 1998 model was part of the sixth generation and was primarily focused on sleeker looks and an upgraded suspension.

1. Honda Accord (1994) – Honda began production of the accord in 1976. Since its introduction, it has been one of the best-selling vehicles in North America. The car made history in 1982 as the first Japanese product made on American soil.

So, have you figured out what most of these cars have in common? D you know why they continue to be among the most stolen cars in the United States?

The two things most of them have in common are their ages and the fact you still see so many of them on the road both in the U.S. and in Mexico. They are appealing to thieves because owners need replacement parts yet aftermarket parts are no longer manufactured in large quantities. When thieves steal these cars, they do not intend to sell them whole. They strip them down and sell the parts on the black market.

Even if the body of one of these cars looks a little rough, it would still have value to a thief as long as things like the taillights, wheels, and interior components were still in good condition. Those things are hard to find at auto parts stores and junk yards.

Image Citation: wikipedia.org

It’s probably safe to say that no one reading this article remembers a day when car insurance was not available. If you’re a senior, you may remember a time when it was not mandatory in your state, but the earliest forms of car insurance go back to the late 1800s. It has been a part of all of our lives to one extent or another.

The first car insurance policy on record was written in 1889 to cover the liability of a man named Truman Martin. Mr. Martin owned an early steam powered automobile which, while it was a great invention, was a source of worry in that it could damage property or injure people.

If you want to know the rationale behind mandatory car insurance, that’s it.

Car insurance is a necessity in order to protect us from the carelessness of other people who might cause injury or property damage. If insurance was not mandatory too many people would be at risk of financial devastation after an accident.

How Car Insurance Evolved

The first policies written in the 1800s were pretty much an experiment, given the fact that underwriters really had no idea how much damage a car could cause. Furthermore, so few people had automobiles that accidents between multiple drivers were unheard of. Those early liability policies were more focused on the possibility of damaging buildings, road signs, and pitching posts.

By 1925 there were enough cars in the road to significantly increase the likelihood of multi-vehicle accidents. That forced the insurance industry to reassess cover drivers and effectively deal with the question of personal injuries. That transition paved the way for what is today’s modern car insurance product.

A Policy for Everyone

Whether or not you agree with the compulsory insurance laws in your state, it can’t be denied that healthy competition among car insurance companies has resulted in a wide range of policies and options. As such, there is a policy out there for just about every driver and every need. That’s a far cry from the “one size fits all” policies of the 1920s.

You and I can shop for the cheapest car insurance possible, purchase a comprehensive policy that will cover everything under the sun, or settle on something in between. We can choose between liability limits, different deductibles, and whether or not we want to add items from a long menu of options. In other words, we have enough options to make car insurance accessible and affordable for everyone.

Next time you’re shopping for a new insurance policy remember the rationale behind it. That may not make things any more pleasant in terms of the shopping experience itself, but understanding why car insurance is necessary may take some of the edge off. And, though we sincerely hope it never happens, you’ll get a full appreciation of the rationale behind car insurance if there ever comes a time when you need to make a claim against someone else’s liability policy.

For a lot of people, car insurance is one of those things we purchase grudgingly because the law requires us to do so. If we had our way we wouldn’t bother sinking tens of thousands of dollars, over the course of a lifetime, into a product we may never use. But it’s better to purchase insurance than be caught without it.

These days’ state laws take driving without insurance very seriously. And with good reason. As the cost of health care and consumer prices continue to rise, the potential financial loss represented by even a minor car crash are higher than they’ve ever been. The damage caused by a serious accident could push someone to the brink of financial ruin.

Whether we agree with insurance laws or not, make no mistake that every state requires drivers to make good on any damage they cause or injuries they inflict through car accidents. In legal terms this is called “financial responsibility.” With the exception of Idaho, every state requires drivers to prove financial responsibility before they are legally allowed to register and drive a car.

Immediate Consequences

If you’re pulled over by a police officer or involved in an accident, having no insurance coverage will usually result in immediate consequences. At the very least you’ll be given a citation and forced to pay a small fine. But most states are not that easy. Most will impose severe penalties such as:

• severe fines in the hundreds of dollars
• suspension of a driver’s license and registration
• vehicle impound
• potential jail time

Each state is obviously different in the penalties they impose and the means by which they do so. But make no mistake about the fact that driving without insurance is not taken lightly. If you’re caught, you will pay.

Future Consequences

In addition to the immediate consequences of having no insurance, there are some future, long term consequences as well. First off is the fact that an insurance violation will most certainly result in higher rates on future policies you purchase within the next couple of years.

Second, insurance companies do have the right to reject you for a policy if you have a no insurance citation on your record. You may try to get a policy through half a dozen companies only to be rejected by all of them. In such a case you would be left to purchase your car insurance from a company specializing in high risk; this means higher rates.

Third, repeat offenses can land you in jail in many states. Once that’s on your record it will forever affect lots of things including job prospects, housing options, and so on.

While it’s true many Americans have a hard time finding cheap car insurance they can afford, being caught without it is even more unaffordable. Think long and hard before getting behind the wheel of an uninsured vehicle. It’s not worth the potential fines, suspensions, and jail time just to get where you’re going.

Cheap month-to-month car insurance (pay as you go) is easy to come by these days thanks to the efforts of insurance companies that are adapting to changing economic times and demographics. Most of the country’s major providers offer some sort of month-to-month policy options; some offer multiple options. One of these policies might be right for you if you can’t afford a top-of-the-line policy for your car.

Before getting into the details we should mention that the “month-to-month” designation is applied to two different types of car insurance. The first is a temporary policy you don’t intend to keep in force for a long period of time. The second type is a standard long-term policy that you’ll be paying for every month, rather than in one large chunk or in quarterly installments. It’s vital to understand the difference between these two types of policies before you start shopping for cheap month-to-month car insurance.

Temporary Insurance Policies

A temporary insurance policy is one you might take out under one of the following circumstances:

• you’re a college student only in need of coverage while you’re living on campus
• you have friends or family members who will be using your uninsured vehicle during an extended stay
• you’re borrowing an uninsured vehicle from a friend until such time as you can purchase your own
• you’re insuring a car you only intend to drive during the winter season

The important thing to remember about temporary month-to-month car insurance policies is that they are not designed to be carried for long periods of time. Most companies that offer temporary insurance do so in one, three, or six month increments; you can usually pay one month at a time even if you’re getting a six-month policy. However, because month-to-month car insurance tends to be fairly inexpensive, insurance companies usually will not allow a policy to continue for more than six consecutive months. They do so as a means of preventing enterprising car owners gaming the system.

Permanent Car Insurance Policies

Permanent car insurance policies that allow you to pay premiums once a month are also known as month-to-month insurance. You can find the cheapest car insurance policies of this type by engaging in some comparative shopping. Just as you would with an annual insurance policy, you need to compare the types of coverage being offered, how much each coverage is costing you, what your deductibles will be, and what extras are available to be added.

Keep in mind that even though cheap month-to-month car insurance does exist, it’s never going to be as cheap as purchasing an annual policy and paying for it upfront. Insurance companies purposely give annual customers a better rate as a way of encouraging them to continue purchasing their policies this way. If you can manage to put away the money necessary to buy your insurance annually you could save as much as 20% to 30% per year.

If saving up that much money is not an option for you right now, you might consider putting a down payment on your policy at the time you sign up. This will result in lower monthly premiums and less money paid overall. Conversely, a month-to-month car insurance policy with no down payment is going to be your most expensive option.

Whatever you do, avoid the temptation of making your monthly payments using a credit card unless you have the cash on hand to pay the bill when it comes due. Otherwise, the exorbitant amount of interest you pay on credit card debt will more than destroy any savings you’re getting from a cheap car insurance policy.

Dave is an Army MP who’s been assigned to a two-year stint at a military base in Germany. Being a career military man his family is allowed to come with him overseas. But that leaves some things at home that need to be dealt with, not the least of which is the family van and Dave’s pickup truck. Neither of the vehicles will be used while they’re away. So, do they need to keep them insured?

With a few possible exceptions, most states require drivers to keep insurance valid on any vehicle registered in the state. Using New York as an example, in order to get a registration a driver is required to furnish proof of a liability insurance policy in force. That policy can be the cheapest car insurance available with very limited coverage, as long as there’s something in place. If Dave were living in New York he would either have to maintain his liability policy or surrender the registration and plates of both vehicles to the DMV.

On the other hand, the state of Arizona offers an option known as “de-insuring” a vehicle that is inoperable. An in operable vehicle is defined as one that is not driven on the public roads due to ongoing repairs, restoration, or storage. Dave could keep his registration and plates in Arizona simply by filing a de-insurance affidavit stating his cars will both be in storage during his two years in Germany. When he returns he simply purchases a new policy and informs the state.

Other Options Available

If your state is not one that allows the de-insurance option you need to look at other things. One of the best options is to look for an affordable insurance policy for stored vehicles. These types of policies are usually reserved for owners of classic cars who might keep them stored away in a collection and never drive them on the roads. This type of policy would be beneficial to someone like Dave if he could find a car insurance company willing to provide it for him.

The second option is to discuss the situation with your current car insurance provider. Once they realize a car will not be driven for an extended period of time they might be willing to reclassify it as an “occasional use” vehicle, thus reducing how much you pay on it. Insurance companies are not obligated to provide you with such options. But many of them do. So ask about it; you never know what you’ll come up with once you start digging.

Consequences of Not Taking Care of Business

If Dave lived in the state as strict as New York, not taking care of business before leaving for Germany could cause him a lot of headaches. New York State would immediately suspend Dave’s registration on notice that he allowed his insurance policy to lapse. They don’t care about the fact that he’s in another country for the next two years. When he finally does return he’d have to pay a series of fines and reinstatement fees in order to get his license back. But his vehicles won’t be able to be re-registered for at least a year after Dave settles up.

It’s unfortunate that some states don’t take into consideration circumstances like those we describe here. But that’s the reality. So if you live in one of those highly restrictive states you have to be willing to either keep your car insurance policy in force or surrender your registration and plates. Yes, it’s a hassle. But the consequences of not doing so could be that much worse.

In the “good old days” it was possible to get a speeding ticket outside of your home state without it affecting your driving record or adding points to your license. In fact, we’ve all heard jokes about paying off the small-town sheriff to satisfy a ticket so the driver could get on his way. Unfortunately, the information age has changed all of that. Depending on your own state laws, and the agreement your state department of motor vehicles has with its counterparts in other states, that speeding ticket you got while on family vacation could come back to haunt you and your previously affordable car insurance.

According to the American Association of Motor Vehicle Administrators, state and local jurisdictions now cooperate by sharing information electronically through the use of two programs known as the Driver License Compact (DLC) and the Nonresident Violator Compact (NVC). Both of these programs rely heavily on interstate data connections and computer databases to link them and share information.

How It Works in the Field

In all but the smallest and most financially strapped police departments, technology has made it possible to give officers on the road real-time access to database information. It’s no longer uncommon for a police cruiser to have an on-board laptop with a wireless data connection capable of accessing DMV records at any time. That means a driver pulled over outside of his own home state will not likely get by without a police officer knowing about outstanding warrants and other things on his record.

By the same token, if that driver contests the violation in court, that court will have access to his driving record through his own state DMV. The judge will be able to look at that record and render a decision accordingly. If a driver has a long and complicated record the judge may not be too lenient. Keep in mind that all of this is done in real-time using computers with direct access to DMV records.

How It Affects Your Insurance

If there’s any good news in this it can be found in the fact that not all states treat violations from other states the same way. For example, a Colorado resident caught speeding in Nevada may not see the violation show up on his Colorado record. No points will be assigned his license, his insurance company will not have record of the violation, and everything remains the same when the driver renews a policy or looks at new auto insurance quotes. Yet if that same driver is convicted of DWI in Nevada, Colorado will not let that slide.

The Insurance Company Connection

If you’re wondering how car insurance companies find out about violations, it’s actually fairly simple. They are connected to the very same system the state DMVs use; they just have different access. Because they’re lugged in, your insurance company can run a check on your record at any time; most do so on a fairly regular basis. That’s why it’s never a wise idea to hide violations or accidents from your insurance company. They most likely will find out and, in doing so, come to the conclusion that you can’t be trusted. In their mind that means increased risk that could make your cheap car insurance not so cheap any more.

The best way to avoid the question of out-of-state violations is to simply obey the law. If you’re not speeding, you’ll never have to worry about a speeding ticket. Not only will this keep you out of trouble with the local police, it will also keep you in the good graces of your insurance company.

As most states require at least a cheap car insurance policy to be in force throughout a vehicle’s registration term, changing from one car insurance company to the next can be tricky. You might be intimately familiar with this if you’ve ever received a notice of insurance lapse from your state DMV. If you’re planning to change insurance companies when your policy is up for renewal there are a couple of important things you need to know.

First of all, every year more states are coming online with electronic reporting. This system provides a direct link between insurance companies and the DMV. Whenever a new insurance policy is taken out in a state with electronic reporting, the agent or insurance company’s computer system automatically reports it. Instantly the DMV has a record of that policy. Likewise, when an insurance company cancels a policy their computers automatically update the system to reflect that change.

What this means is that there’s no longer a built in “grace period” if your state has moved to electronic reporting. If your policy is scheduled to expire at midnight on January 1, the state’s computers will be updated instantly. Should you get pulled over for a violation the following day you will be fined at the very least. You may even have your registration and license suspended in some states.

Making the Switch Properly

Making the switch to a new insurance company without incurring any lapse will be different, in a legal sense, in relation to your state’s laws. But as a general rule a good way to ensure there’s no problems is to have your new insurance take effect the day before your old insurance is set to expire. So for example, let’s just say you found a more affordable car insurance policy you plan to replace your current policy with. If your current policy expires at midnight on June 1, have your new policy begin on the last day of May.

Whether your state uses electronic reporting or an older system, you’ll never be in the wrong having two insurance policies in force at the same time. Keep in mind that while your new insurance company is obligated to report your new policy to your state DMV that won’t necessarily let you off the hook in terms of providing proof of insurance. For instance, in New York State you’re still likely to get a cordial letter from the DMV informing you that your old policy lapsed. You’ll have 30 days to provide proof of a new policy, usually by sending back a copy of your insurance ID card.

A Bit of Leeway

If there’s any good news in the electronic reporting system is the fact that there are some states that still allow a little bit of leeway. For example, if you inadvertently let your cheap car insurance policy lapse because you forgot to make payment, many states will let you off if you acquire a new policy and furnish proof within 30 days. You may have to pay a small registration reinstatement fee as a matter of procedure.

If you live in a state that grants such leeway be careful not to abuse it. Often your DMV is only gracious once. After that, repeated insurance lapses could result in extended registration suspensions, license suspensions, and SR 22 filings. From both a financial and practical standpoint it’s simply not worth it. You can find affordable car insurance in most cases if you’re willing to dig a little. If you truly cannot afford a policy then, unfortunately, you’ll have to find another mode of transportation.

When it comes to car insurance for young drivers there are lots of websites out there making it sound like you can get policies for next to nothing. They utilize all sorts of catchy slogans and ambiguous statements to lure you into using their service, only to provide nothing of any value.

Unfortunately, the truth about car insurance for young drivers is that it’s very rarely as cheap as what adults pay. That’s just part of being a young driver we all have to accept. That said there are some things you can do to find the best possible price.

Young Drivers

How Insurance Rates Work

Car insurance rates are not determined in some sort of random, “pin the tail on the donkey” sort of way. They are calculated through a somewhat complicated formula that takes into account a driver’s age, sex, driving history, and geographic and demographic information. It just so happens that young drivers end up paying the highest rates because statistics show they are responsible for the largest portion of traffic accidents. Those statistics, when plugged into the formula, produce higher rates.

Knowing this, it becomes easy to see that affordable car insurance for young drivers relies on defying those statistics until the driver reaches age 25. At that point he is statistically less likely to have an accident and will see a reduction in his insurance rates. Until then, young drivers need to be careful to avoid accidents and violations of the cost. When a young driver fails to do so each accident or violation causes a rate increase much steeper than what would be realized by an older driver.

Simple Things You Can Do to Help

When you call companies to compare car insurance quotes you may notice they ask if young drivers have taken any sort of drivers Ed course. They do so because drivers Ed tends to reduce the likelihood a young driver will have an accident. So one of the easiest things you can do to reduce the cost of insurance for a young driver is to make sure that driver completes a driver’s Ed course. They are available through most public school systems.

Another simple thing you can do is encourage your young drivers to maintain good grades while they’re in school. Lots of insurance companies offer good great discounts which will save you a few dollars.

Along those same lines, if you encourage your young driver not to purchase his own vehicle while he’s still in school it will cost less for him to be covered under one of your vehicles. Should he decide to buy his own, he becomes the principal driver of that vehicle and will pay more for his insurance.

For a young driver looking for cheap car insurance the best he can do is shop around and keeps his nose clean. But even the most expensive policy will begin to see rate drops when that young driver turns 25, gets married, and graduates from school.

Car insurance premium is what the insurance companies will be charging you monthly for the coverage that you want from them. There is no set car insurance premium of a company or a service that anyone can quote. It depends upon a lot of things and similarly can be affected by many factors too.

Car insurance premium charged by one insurance company would be different from what the other car insurance companies would be charging for the same service from the same consumer with the same car. Varying car insurance premium is basically the reason why consumers are advised to shop extensively, get different car insurance quotes from dissimilar companies, compare them and then make the final decision in order to avail the opportunity of cheapest car insurance rates.

Now let’s look at some of the factors that can affect car insurance premium.

• The first thing that could affect a car insurance premium is the gender of the driver. This is not because an average insurance company is a sexist firm, but because statistics have helped the companies evaluate that an average female driver is far safer on the road than an average male driver; therefore they deserve a discount. So if you are a female driver than on the average you can enjoy a 10% discount on your car insurance premium.

• The other equally important factor is the age of the driver. If you are a young driver (and for an insurance company, anything under the age of 25 is young) then you are at a higher risk according to the car insurance company and would therefore be charged a higher car insurance premium than if you were somewhat older and experienced.

• If you are married and your spouse is equally responsible while driving, then this fact can affect your car insurance premium. Buying multiple insurance policies from the same insurance company can lower the car insurance premium.

• Sadly, where you live, will also be heavily affecting your car insurance premium. If according to the car insurance company you live in a high risk area then you can expect higher car insurance rates. A high risk area includes places where the crime rate is high and where there is increased occurrence of natural disasters like earthquakes, tornado’s, hurricanes etc.

• Your driving history is something, which has obvious effects on the car insurance premium. The safer the driver you are and the clearer your history, the lower insurance you are going to pay in future.

• Similarly if you have a rusted, almost broken car then don’t hold your breath waiting for someone to offer you cheap insurance rates. Keep a car in a sound condition, that have a less chance of breaking down if you are looking for some nice insurance rates. Similarly if you keep a car which is on the wanted list by car thieves, then again your insurance premium is going to be high.

It is evident therefore that there are more than a few factors affecting the cost of car insurance premium.