If you're anything like me, you'd love to reduce your auto insurance premiums yet not reduce the protection you get. But do you have insurance agents as friends? I do. Two of them. So, after doing some research online, I talked to them about my findings.
My findings were many. Your premium's decided based on who you are (your driving, credit, claims history), the car you want to insure and where you live. Which makes perfect sense to me.
My findings also include two items that my insurance agent friends were not keen on, namely
a. retain the right to sue
b. don't sign contracts that include the words 'aftermarket parts' or similar ones.
Let me go into a bit of detail on these two, as they have important consequences for you, the auto insurance buyer.
Retain the right to sue
The mighty Internet says it's a good idea to retain the right to sue because without it it's easier for insurance companies to take advantage of you.
Basically, if you don't have the right to sue and you and the outfit you got your auto insurance from disagree about something (like the money they owe you if your car is totaled), you have to go to arbitration. If you retain the right to sue, you can, of course, get a lawyer and sue.
Lawyers are a lot more expensive than arbitration. So insurance companies have extra incentives to follow the contract the two of you signed, to settle.
One of my insurance agent friend's idea about retaining the right to sue? "It's true, but it doesn't really work that way. People get favorable results from arbitration."
I never disputed that arbitration cannot yield good results. Just that retaining the right to sue does it faster more often.
Aftermarket parts
IN case your car is damaged and you have the right insurance, the insurance company pays for repairs, including parts. Car parts can be made by the company that made the car or some other company. If they're made by some other company, they're called "aftermarket parts."
Originally, it seems, aftermarket parts were always inferior in condition, craftsmanship, and they were not as extensively tested. Now, some are as good as or better than the parts made by car makers. However, the perception is that they all are inferior quality. So, if your car has aftermarket parts, it's going to be perceived as being less valuable, you'll have to sell it for less than if it had original car maker parts.
I talked about aftermarket parts with the other insurance agent I know. He told me it's not true. Because, unless your car is one or two years old, almost everybody uses aftermarket parts. Which proves my point, not his. There are auto insurance companies out there that do not use aftermarket parts.
So, I say, since there are some, you should aim to get them to insure your car. I say 'aim' because it's not always possible. Your driving history, the claims you've made before might make it so that such insurance companies will not want to insure your care. But you should try. And you try either by crossing the 'offending' words out in the contract or by finding an auto insurance company that does not use them.
By the way, regarding crossing out words in the policy agreement, my insurance friends are saying 'Ain't gonna happen. No insurance company's going to accept that. Don't even try." I think contracts are mutual agreements. That means you have to agree too. Don't sign something just because it's there and they call it 'standard' something or other.
July 27, 2011
Auto Insurance - 2 Things to Watch Out For When Getting Auto Insurance
Pennsylvania Auto Insurance – The Ins and Outs of PA Auto Insurance
If you’re shopping for some great local auto insurance in Pennsylvania, we’re here to help. We can work as the bridge way between you and dozens of strong and highly dependable carriers. However, as you get your quote from these auto insurance sites, their coverage page provides you with the choice of picking from a range of state required packages. You can also select from the wider ranging auto insurance coverage packages.
Then again, you could customize each and every limit as well as deductibles for fitting all your needs. And if even that’s too complicated, you can also contact insurance agents who has license to work in Pennsylvania. They are also available for helping you out from beginning to end for getting quotes and purchasing a policy. And to get a winning deal in Pennsylvania auto insurance industry, you should use all the help you can get.
If you want to see how Pennsylvania auto insurance quotes are trending, you can make use of their average premium insurance trending tool which showcases such changes in the state of Pennsylvania. They’ll showcase some standard auto insurance rates that have streamed during the last few months. These tools can show the monthly trends as well as graphs which the changes that keeps appearing in the average auto insurance rates in Pennsylvania during the last couple of months. And these tools are so user friendly.
For instance, if you just hold your mouse on the points for seeing the yearly average premium Pennsylvania. Getting local auto insurance in each and every area of Pennsylvania becomes very easy this way. All you need to do is entering the zip code into their quote box to get an auto insurance quote immediately.
Just in case you didn’t know, the car insurance premium on average is $1,777 for Pennsylvanian residents in 2010. That’s a bit higher than the $1,577 - the national average. A number of people are under the assumption that the insurance premiums are set by the state or the local insurance companies. That’s the reason they show reluctance about shopping around to get the best rates. But the truth is that, most of the auto insurance companies tend to segment their auto insurance rates differently to make sure that everybody's rate would be dissimilar with every company.
So it’s best to keep shopping around to observe whether you’re saving or losing money. Fortunately, online quote comparison sites helps us to find competitive rates as well as discounted prices in Pennsylvania. That is the reason a typical Pennsylvanians has a good chance to get auto rates which are better-than-average. Year 2010 has seen a decline in car insurance rates. This makes it even more important that you should around for the best auto insurance deal. A good insurance quote site can get you competitive rates directly to you. In other words, these services are dedicated about lowering your costs by using advanced online technology. Make savvy choices!
July 26, 2011
How To Find The Best Auto Insurance And Auto Insurance Companies
Auto insurance is a necessity for everyone who has a car and is a motorist. It is because everyone everywhere nowadays drives and/or owns a car, making the number of motorists and road accidents grow excessively. And to avoid any financial hardship that these vehicular accidents may bring, having auto insurance is a good idea and investment.
Having not just a mere insurance, but the best insurance is everyone’s goal. Even having it from the best auto insurance company is the goal of every motorist. That is why this article will try to provide some guidelines or tips on how and what to look for to have the best auto insurance from the best auto insurance company.
When looking for the best goods or services, everyone thinks of having the cheapest one to be the best choice. It may be good to have the cheapest one, especially when taking into consideration the economic hardship everyone felts nowadays. But when having the cheapest means having the quality of the goods or services diminished, it may not be the best deal. The same goes with cheap car insurance. Remember not to compromise the quality of the goods or services when trying to save money.
And so on auto insurances, purchasing cheap car insurance is still okay as long as it still has good quality on coverage. It must still cover the required specifics by the law and also will help insure protection to the driver and his/her family and property in most times.
While for insurance companies, when looking for the best, there are four basic factors for a consumer to consider before even thinking on purchasing any insurance to that company. Those four factors are the price of coverages the company offer, the licensing, the reputation, and the financial stability of the car insurance company.
Price. Car insurance coverages prices are, yes, affected by different factors, factors like driver’s age, driver’s driving history, credit score of the driver, and others. But still these auto insurance coverages may still vary depending on the insurance company that offers or provides it. So try to compare which one provides the best policy, with at least the best possible price.
Licensing. Some insurance companies, though they have television endorsement, they may not be licensed in your state. Car insurance companies may be licensed in state A, but it might not be in state B. Checking with the website of the Department of Insurance in your state for companies licensing is a good idea.
Reputation. This would mean that every consumer should have some research on the background of the insurance company. Know if that company has any reported claims from its policy holder that it did not cover or insure. The Better Business Bureau is the place where this claims can be researched.
Financial Stability. Remember that having car insurance is to have protection in case something happens, especially car accident, in the future. But how will you be protected or insured by your insurance provider if it is not financially stable. So check first the company’s financial stability before even thinking of purchasing or having car insurance from the.
Auto Insurance Guide - Get Your Auto Insurance Policy
Auto insurance provides complete protection against losses happened as a result of vehicle accidents. Normally it includes car insurance and motor insurance. The customers purchase this insurance policy just to reduce the risk incurred due to accidents of cars, trucks and other vehicles. People can also secure their vehicles against theft, fire damage or accident damage.
Auto insurance policy may cover insured party, insured vehicle as well as third party that are involved in the accident. Sometimes policy is valid for certain circumstances. Different policies are available for the customers and they can purchase anyone as per their requirements. Coverage levels can vary for each auto insurance policy.
Insurance is one of the essential things to secure you, your family as well as your vehicle. You’ve to just pay a certain amount of premium for a fixed period of time and then the insurer agrees to pay you for any kind of damages or loss of your vehicle. Cost of an insurance policy totally depends on the coverage because your policy covers more only if you pay more.
Auto insurance is expensive because it is the best way to secure you and your automobile. Main types of auto insurance are as follows:
Fully Comprehensive auto insurance policy
Third party (fire & theft)
Third party insurance
Specialized car insurance
People mostly purchase fully comprehensive auto insurance policy as it covers all types of cases like theft, accident and other damage. It is an expensive policy but whenever you go to buy this one you should try to get 100% security for your vehicle. Third party insurance is cheapest than others and it offers coverage only if you’re at fault and hit other party. It is the best option in case you owned an old vehicle.
Specialized car insurance is for the 25 years old vehicles. These vehicles require special services so these are categorized as classic. An individual can choose the best as per his/her requirements. But whenever you go to purchase these policies you’ve to be sure about the source from where you’re going to buy the insurance policy. You should first make you budget means how much you can afford to pay for auto insurance policy premium.
After deciding your budget, make a decision on amount of coverage that you want for each accident. You should tell your requirements to different insurance companies and agents. You should discuss your problems with the companies. Then choose the best among them means select that company which is ready to give more coverage. You can also search on Internet for the best service providers.
Auto Insurance- Shopping For Auto Insurance Guide
With auto insurance premiums rising across the country, comparing premiums for similar auto insurance coverage has become the ultimate test of your shopping savvy. Have you checked with every insurer to be sure you’ll be paying the lowest premium for the most coverage? Did you check on all the discounts for which you might be eligible, such as good-grades discounts for your high school student, driver’s education and defensive driving course discounts, anti-theft device price breaks, and multi-car rates? Putting it all together to know you’re getting the best price is challenging, but the money you’ll save on your premiums makes the extra effort well worth it in the long run. Follow these three steps to be sure you’re making the right choice.
First, log onto http://www.naic.org to find out if there are any online resources that pertain to your area. This is the website for the National Association of Insurance Commissioners (NAIC). Find the link to NAIC States and Jurisdictions. From there, you can find out if your state or area has a website listing the current rates of local auto insurance companies. If so, you’re already a step ahead of the game. Just keep in mind that the rates quoted on these sites cannot take your personal situation into account. If you have bad credit or a poor driving record, your premiums will probably be higher than those listed on your local insurance commissioner’s website, but at least you can study trends of different companies in your area from an unbiased source, making useful comparisons that can save you time when you’re calling around. Even if your state doesn’t have a site, the NAIC website contains consumer guides with valuable information to which you may want to refer during your search.
Next, you need to shop around for coverage. Be honest with the companies you call or visit online about your personal situation, your insurance needs, and your driving history. When you receive a quote, confirm that you know exactly how much coverage is being offered for the premium amount mentioned. Remember that your auto insurance is actually a group of several different types of coverage. Ask how much coverage the quoted premium provides to you and how much each coverage is worth. Make sure you’re comparing similar plans, and know what’s required by law in your state.
Finally, it’s time to talk discounts. Once you’ve narrowed your choices, compare the discounts offered from one insurer to another. Get a quote on the final premium amount after all discounts are taken. One insurer may offer you two discounts good for 5% each while another may offer you only one discount. However, if that one discount offers you a savings of 15% total, it will make more sense to purchase your policy from the second insurer. Take a look at the bottom line (the final premium amount) for a true comparison.
Look at the information the NAIC has to offer you, shop around for the lowest premium and best coverage, and make sure you receive every discount to which you’re entitled. If you follow these steps, you’ll have the peace of mind of knowing you got the best auto insurance deal available to you.
Auto Insurance Companies Or Auto Insurance Brokers – Who’s The Best?
A lot of people engaged in the process of availing auto insurance aren’t even aware whether they are dealing with auto insurance brokers or auto insurance companies. In spite of the restrictions imposed on auto insurance brokers to advertise themselves as auto insurance companies, there are many such brokers who are freely indulging in that malpractice in many states.
You must be aware that it is illegal to advertise as an auto insurance company when all one is running is a small auto insurance broker firm. Consumers are easily led astray by such misrepresentation and end up even getting cheated sometimes.
If you are on the lookout for buying auto insurance, the easiest way to identify the brokerage firms is by the suffixes in their names. They’d normally have ‘insurance brokerage,’ ‘insurance services’ or ‘insurance agency’ added to their business names. In case your state doesn’t permit any such differentiation, you will have to get in touch with the concerned authorities to obtain more information in this regard.
Please don’t ignore this step as there could be a lot of benefits in buying an auto insurance directly from a company and not from a broker.
Internet has revolutionized the way business is done in contemporary times and auto insurance industry too has its wide presence on this medium. You must leverage on the cyberspace’s advantages and check out the extensive information available on all types of auto insurance available online. As with direct purchase from an auto insurance company, internet purchases come with additional benefits that may not be available with an auto insurance broker.
Gone are the days when people would spend an eternity trying to chase auto insurance agents. Back in those times, one would make repeated phone calls to auto insurance brokers and companies to obtain multiple quotes for better decisions. But nowadays, you can simply head online, fill up a few forms to provide your personal information and sit back and relax. What you’ll witness is a plethora of offers arriving in your inbox in no time at all. Moreover, there will be so many of them and with so many benefits that it will become hard for you to pick out the best ones. Eventually, you must base your auto insurance purchasing decision on the company’s rates, market standing and your own specific requirements.
Please note that while auto insurance brokers may look like a better appealing solution, only a couple of calls away, you could be trading in the several benefits available with the auto insurance companies. This doesn’t mean that there aren’t any good auto insurance brokers out there. There are many of them in the market who give customer’s interests the highest priority and make sure that they provide only the best and cheapest quotes from multiple auto insurance companies. There services can sometimes be indispensable too with the extensive knowledge they have about this particular industry. Some of the advices you may obtain from them can last a lifetime for you to make any auto insurance purchase decisions in the future. In the end, it is up to you to make the final choice. Listen to your mind and heart and opt for the auto insurance option that appeals to you the most.
July 12, 2011
The Best Car Insurance - 3 Tips to Keep In Mind.
Shopping for the best car insurance? Sure, price is certainly an important factor to consider. But what else should you keep in mind as you shop? Take a moment to review three small steps that will insure you are getting both the cheapest and the best car insurance.
1.) Start by shopping for multiple car insurance quotes. While this step used to involve hours on the phone while you shopped local agents, you can now use an internet-based quote provider to supply fast multiple insurance quotes from major national insurance companies. (One such company is mentioned at the end of this article.)
2.) Once you have your car insurance quotes in hand, it is time to research the business reputation of the companies you are considering. The best way to do this is by visiting the website for the department of insurance in your state. Most departments have websites and many will publish the consumer complaint ratios for all of the insurance companies that sell insurance in your state. This ratio tells you how many complaints have been received by a car insurance company for each 1,000 claims filed.
If your state doesn’t publish a complaint ratio, try checking nearby states to see if they publish this information. While an insurance company may have varying practices in different states, checking its reputation in neighboring states will give you a feel for the general reputation of the company. If they are getting a lot of complaints in other states, there is a good chance you can expect the same customer service in your own state.
3.) You aren’t finished yet -- now it is time to consider the financial strength of the insurance companies you are considering. As recent economic events have shown, even the largest companies may have weak financial fundamentals. The best way to research the financial strength of a company is to check its ratings at A.M. Best and Standard & Poor. These two companies publish financial ratings for all of the insurance companies. Why is this important to you? Because the financial strength of the insurance company will determine its ability to pay out claims. Which is the only reason you buy car insurance in the first place!
A.M. Best will rate each company with a letter grade from A++ (the highest) to E. An F means the company is in liquidation and S means it has been suspended. You are only interested in companies with at least a B+ rating.
Standard & Poor rates companies from AAA (the highest) to CC. Avoid any company with a rating of R (under regulatory supervision) or NR (not rated). Consider only those companies with at least a BBB rating.
Yes, it is a little extra time and effort to research the customer service and financial ratings of the car insurance companies you are considering. But all of the research can be done on your computer in less than an hour. In the end, you can relax, knowing that you found not only the cheapest car insurance, but truly the best car insurance.
For more tips on finding the best car insurance, please visit the website recommended below.
Your Best Car Insurance Quote - 3 Things To Do Before You Shop
Everybody knows that to get the best car insurance quote, it's important to shop at least five different car insurance companies. But before you even get those quotes, there are a few things you can do to make yourself (and your vehicle) more attractive to insurers.
1) Keep Your Credit Clean…
Studies have shown a direct correlation between your credit score and the likelihood that you will file an auto insurance claim. For this reason, almost all insurers pull your credit report. Your credit report shows an insurer if you pay your bills in a timely fashion and have had the same credit accounts for a long time. Someone who does this is considered more stable than someone who pays late and frequently opens and closes accounts. This information is used to create your "insurance risk score", which is one factor that determines your car insurance rate.
Tip: If your credit history is not strong, start cleaning it up. If there is unusual credit activity on your account, wait about a month for it to return to normal before shopping for car insurance quotes.
2) Think About the Type of Car You Plan to Buy…
Insurers have a rating system for every car make and model. Most use a system devised by the Insurance Service Office, which starts with the cost of the vehicle and then factors in safety and theft data. Cars are given a rating from 1 to 27, and the higher the number, the higher your premium.
Tip: Look up your car's relative risk online. If you're trying to keep your car insurance premiums low, it's best to consider this risk before you buy that high-risk sports car.
3) Pay your insurance premium in full ...
"Fractional premium" fees are usually charged when you pay your annual premium in six-month, quarterly or monthly installments. There is almost always an administrative fee to break down these payments also. This can really add up.
Tip: Ask about fees for paying in installments. If the fees are small enough, it may be worth it. If not, bite the bullet and pay for the insurance premium in full.
OK, you've cleaned up your credit, chosen a low-risk car and have budgeted to pay your full car insurance premium up-front. Now you're ready to shop for your best car insurance quote!
Visit the website recommended below to get free online quotes.
Buy Car Insurance Online - 3 Ways to Get the Job Done
Let's face it. As a society, we have become addicted to instant gratification. We demand an instant solution to every problem. For example, we no longer want to spend the morning on the phone, talking to multiple insurance agents while we shop for car insurance quotes. No, we want instant car insurance quotes. And thanks to the modern miracle known as the internet, we can have them.
Thousands of consumers are forsaking their local insurance agent and seeking to buy car insurance online. It's easy so see why -- the time spent shopping online can be a fraction of the time spent talking on the phone with multiple agents. But there are several ways to buy car insurance online, and a few factors to keep in mind with each. Let's begin by taking a quick look at three different methods to buy car insurance online.
1.) You can solicit a quote from one specific company. If you have already chosen a particular insurance company (perhaps the one with which you're already insured), you can submit an application online at that company's homepage. All major insurance companies accept online applications.
This method allows you to submit the information when it's convenient for you -- perhaps in the evening when you have the time but your local insurance agency is closed. Then the insurance company will review your application and contact you with a quote. They may email the quote or have your local agent contact you. The downside is that you won't have quotes from other insurance companies for comparison.
2.) You can solicit a quote from an online insurer. An online insurer is an insurance company that does business only on the internet, such as Esurance. They have no local agents and they aren't licensed to provide insurance in all states. However, if you live in one of the states in which they are licensed (they will let you know when you apply), the online insurer will provide an immediate quote to you by email. The benefit is the quick response time, but the drawback is that once again, you are only getting one quote. To get multiple quotes for comparison purposes, you would have to submit applications to multiple online insurers.
3.) You can solicit multiple quotes from an online quote provider. An online quote provider, such as NetQuote, is a company who has relationships with dozens of the largest insurance companies. By submitting one application with an online quote provider, you can receive multiple quotes from a number of different insurers. Most online quote providers have relationships with all of the various kinds of insurance companies, so you are likely to receive quotes from local agents in your area, as well as large national insurance companies who do business in all fifty states.
Depending on the state in which you live, you are also likely to receive instant emailed quotes from an online insurer such as Esurance. This method allows you to get multiple quotes for comparison purposes without having to submit multiple applications.
Which of these three methods is best for you will depend on the amount of time you have to invest shopping for car insurance quotes, and the number of quotes you are seeking.
If you are ready to buy car insurance online, please visit the online quote provider recommended below. They will provide at least five free quotes with one application.
Classic Car Insurance - 6 Questions to Ask Before You Apply
Are you ready to shop for classic car insurance? Maybe, maybe not. Before you pick up the phone, let's take a minute to review the six questions you need to consider before you talk with an agent.
Essentially, your agent is going to want to know how much the car is used and how you plan to maintain it. Knowing the answers to these questions will save you time on the phone -- and put you in a much better position to negotiate the best insurance coverage for your classic honey.
1.) Do you plan to insure the car for what you feel it's really worth? Your agent will undoubtedly ask how much insurance coverage you are seeking -- if your personal opinion of value is higher than the vehicle's appraised value, you may want to consider a higher level of coverage.
2.) Do you plan to participate in car club events? If so, you need to consider the amount of liability you can incur in such events. A classic car that is stored 365 days a year has much less potential for liability claims than a car that is driven regularly in parades and other event.
3.) Are you planning an extended period of renovation for the car? If so, do you need to insure the car while it's off the road?
4.) Do you plan to ship the car any time soon? If so, additional coverage may be warranted since the car will be outside of your control.
5.) How many miles a year do you expect to drive the car? If these miles are limited, you may be able to negotiate a lower premium. Be sure to ask about any maximum mileage limitations. An annual restriction of 2,500 miles may be imposed by your car insurance company.
6.) Who will be repairing or maintaining the car? Again, if the car is outside of your control, you may want to consider higher theft and damage coverage. On the flip side, if you personally maintain the car within secure confines on your property, you may want to pay for minimal coverage.
The answers to all of these questions need to be considered before you decide how much coverage is warranted for your classic car. Also, car owners should be aware that some insurance companies specialize in classic car insurance. But as with any car insurance policy, it's best to get quotes from several insurance providers before making a decision.
Hopefully, by carefully considering the answers to the six questions we've discussed, you'll be prepared to shop for the best coverage for your classic car.
You may want to visit the website recommended below to get at least five quotes for your classic car insurance.
Cheapest Car Insurance Quote - 3 Steps to Avoid An Expensive Nightmare
So - you're looking for the cheapest car insurance quote you can find? That's understandable, given today's economic environment and the fact that every household has its purse-strings pulled tight. Who wouldn't want to buy the cheapest car insurance available?
But be careful. If you aren't aware of some minimum necessary insurance coverages, you could quickly find out that you are under-insured, or worse, not insured at all. That's when the cheapest car insurance quote suddenly turns into an expensive nightmare. To avoid that nightmare, consider these three steps before you jump on the cheapest insurance quote available.
1. Check with your state to make sure you are buying at least the minimum required liability coverage. Each state sets its own liability limits. If you're shopping for insurance from multiple sources, you're probably getting quotes from large national insurance providers. It's up to you to know the minimum liability coverage required by the state in which you live.
2. Think objectively about the amount and type of driving that you do. Minimum required coverages may not be enough -- and we're not just talking race car driving here -- if you drive neighborhood kids in the carpool every day, the minimum state-required liability insurance may not be adequate for your potential risk. Be honest with yourself about the amount of coverage you might need in a worst case scenario.
3. Remember that when another driver causes an accident, it's the responsibility of each driver's insurance company to collect from the at-fault party and their insurance provider. So it's important to have your policy with an insurance provider that is financially stable and in a position to legally pursue the at-fault party. Choosing a small, unknown or relatively new company simply because they provided the cheapest car insurance quote could result in "no insurance" at all.
The bottom line -- be smart. It's fine to shop for multiple insurance quotes, but remember that the cheapest car insurance quote isn't always the best car insurance quote. To reduce risk, and save a little time, you may want to shop for multiple quotes from one online quote provider who only has relationships with the top insurance companies.
If you're ready to start shopping for the cheapest car insurance quote, you may want to consider the online quote provider recommended below. They provide at least five free quotes and have relationships with only reputable national companies.
July 4, 2011
Young Driver Car Insurance - 5 Ways to Make It Affordable
Are you dreading the day when you have to add your teen to your car insurance policy? You have probably already heard nightmare stories from friends whose young driver car insurance resulted in a 50-100% increase in the family's overall premiums. Ouch!
Many car insurance companies consider drivers under the age of 25 to be at much higher risk for vehicle-related accidents. And if you've driven by your local high school parking at 3:00 lately, you probably know too well the driving habits of young drivers. Yet, there are a few things you can do to help your teen become a safer and cheaper-to-insure young driver. The following five ideas will have a positive impact on your young driver car insurance rates:
1. Keep that driving record clean. Even one DUI infraction can multiply a young driver's car insurance premium by a factor of ten. And that's not just for one year. The increased annual premium is likely to stay in effect for three years, costing literally thousands of extra dollars in increased insurance premiums.
2. Keep those grades up. Some car insurance companies offer lower rates to young drivers who qualify as full-time high school or college students and maintain at least a 3.0 grade average. It doesn't hurt to ask about it when you're shopping for car insurance quotes!
3. Consider an accredited driver safety course for your young driver. Some insurance companies sponsor them locally, or check online with the National Safety Council. Your young driver might qualify for a car insurance discount, and is likely to become a safer driver in the process. A double win.
4. Consider a safer car. By avoiding sport cars, expensive cars, and SUV's your young driver may save up to 50% on car insurance premiums. Consider a newer model car with airbags as a cheaper, and safer, alternative for your teen.
5. Stuff the car with safety features. To keep your teen safe, and save on car insurance premiums, consider adding side-airbags, automatic seat belts, and anti-lock brakes to your young driver's vehicle.
By considering these five factors that affect young driver car insurance, you can make those teen years a little less expensive and a lot more enjoyable.
When you're ready to start shopping for young driver car insurance, consider getting multiple quotes from the online service recommended below. They provide at least five free quotes from major insurers.
How to Know How Much Auto Insurance You Should Carry
How much automobile insurance should you carry? The answer is easy: as much as you can afford. The primary reason to buy automobile insurance, both liability and uninsured motorist (UM) coverage, is to protect yourself and your assets. Your insurance company will never pay more in damages, to you or to a person you negligently injure, than the dollar amount of the coverage you paid for, no matter how high a verdict there may be either against you or for you. Sound complicated? Let's look at two hypothetical examples regarding liability and underinsurance coverage.
Liability Coverage
If you pay a policy premium for $25,000/50,000 in auto liability insurance coverage[1], this is what could happen if you negligently cause injury to another person in an auto accident and the injured person sues you. With significant injuries and damages, a jury might award the injured person $75,000 (a hypothetical figure). Under these facts, your insurance company would pay the injured plaintiff only $25,000 on your behalf, the amount of coverage you bought[2]. As a result, you could be held liable for payment of the remaining $50,000 yourself! This is a harsh result, I am sure you would agree.
What would happen if you had purchased a larger $100,000/$300,000 policy? Your insurance company would ordinarily pay the injured person the entire judgment amount of $75,000. Consequently, you would not be obligated to pay any part of the judgment yourself. To sum it up, the more insurance coverage you buy the less likely it is that you will ever be called upon to pay any part of a legal judgment against you.
Underinsurance Coverage (UIM)
Your purchase of high insurance limits can also help you or your family members when one or more of you are injured through the fault of another driver. This might occur if you and/or relatives who live with you sustain serious injuries in a motor vehicle accident, and the negligent driver who caused the accident has less insurance coverage than you do.
How does this work? As an example, let's say the negligent driver has purchased a $25,000/$50,000 auto liability insurance policy, and you have a policy that provides $100,000/$300,000 in UM coverage. Your injuries are serious. Your medical bills and lost wages are substantial. In your lawsuit against the negligent driver, a jury awards you $100,000 in damages. The defendant driver's insurance will pay you only $25,000, the maximum amount of liability coverage the defendant bought which can be paid to one person with respect to one accident. However, you can look to your own UM coverage to see if there is underinsurance coverage (UIM) available to you. Given the above facts, your insurance company would pay you $75,000 in underinsurance coverage.
How do you arrive at the $75,000 figure? It happens this way. Under Virginia law, if there is UM coverage available to you in an amount greater than the defendant's liability coverage, you will have underinsurance coverage. If not, there will be no underinsurance for you[3]. The availability of underinsurance coverage depends on a comparison between a specific defendant's liability coverage and the UM policy or policies which provide you coverage. With regard to the above example, your own insurance company would pay you $75,000 because that is the amount by which your own UM motorist coverage exceeds the defendant's liability coverage of $25,000. By adding your $75,000 in underinsurance coverage to the defendant's $25,000 liability limits, the $100,000 judgment against you would be paid in full.
However, there would be a different result if there was just one policy available that provided you only $25,000/$50,000 in UM coverage. Under the described facts, your insurance carrier would pay you nothing because your UM insurance coverage of $25,000/$50,000 does not exceed the defendant's own $25,000/$50,000 liability limits. Yes, you can pursue the defendant driver personally through collection proceedings after trial. However, the average defendant has few assets and collecting on a judgment can be a long, expensive, and often futile endeavor. In the end, it is always better to carry high liability/UM insurance limits yourself and ensure that you and your own family are protected in the event one or more of you sustains severe injuries caused by the negligence of a driver with low automobile insurance coverage limits[4].
Footnotes
1. Auto insurance limits of $25,000/$50,000 constitute the minimum amount of auto liability and uninsured motorist coverage you can buy in Virginia. Each state determines its own auto insurance minimum limits; therefore, minimum limits differ from state to state as do laws related to auto insurance. The facts in this article are based on Virginia law only. If you live in another state, you will want to learn about the applicable insurance laws in your own state.
2. When you see a figure like $25,000/$50,000 in relation to an auto policy, it means the limits are "split", that is, one injured person can recover a maximum of $25,000 under the policy while $50,000 is the most coverage the insurance company will pay out to all injured persons regardless of the number of people injured in the same accident or how badly they may be injured.
3. In Virginia, you may be entitled to undersinsured motorist coverage under more than one policy, and these policies can sometimes be "stacked" to give you more coverage. Va. Code § 38.2-2206. This is a complex area of law, and it is wise to consult an attorney to explore whether there is underinsurance in your case.
4. In Virginia, you cannot buy UM coverage in an amount that is higher than your auto liability insurance limits.
How to Choose Car Insurance
Everyone with a license and is a solid person realizes that an insurance policy is a requirement, and also recommended by law. A lot of insurance companies advertise on TV. What should you know when choosing an insurance company? Out of all the ads you've seen on TV, has one particular company caught your attention? If one has, phone them and talk to one of their agents. Inquire if they have an insurance plan more particular to your needs. Be sure to have all information you will need. Once you gain the quote from the agent, say thank you for your time and information but you are still awaiting quotes from a couple of other companies.
When choosing car insurance you shouldn't;t be in a hurry, inquire around some and don't jump at the first proposal they give you. Keep in mind that all insurance companies are competing, and all want your business so no quick snap decision! One of those agencies just might surprise you and give you a decreased rate compared to your leading quote.
Another formula of choosing a car insurance company is to take a gander through your local telephone book. Many decent insurance companies publish in the yellow pages providing names and addresses to those agencies. These agencies could help favor you if stationed handy to home, making for a friendlier customer relationship with your agent.
Car insurance agencies also have internet sites and advice all over the internet. Almost anybody now has access to a computer. Look up some insurance agencies' web sites and see if any of them benefit you. There are some web sites out there that actually scan car insurance rates, and will give you a list of the most competitive companies out there, usually beginning with the most affordable ones.
Your Move, Your Car Insurance and You
Part of the beauty of living in a country that has fifty states rather than just one is the fact that you're free to move from place to place without having to spend hours (and dollars) convincing some government bigwigs to give you permission to do it. If you want to pack your bags and move from New York to San Francisco all you have to do is look for an apartment. You cut off your electric, turn on your California phone number…and make some changes in your car insurance.
Car insurance, like many other things, is regulated by state rather than federal government. That means that the regulations that dictate how much, how little and what kind of coverage you're required to have are going to change dramatically as you travel from the east coast to the west-and if you're not ready for it you may find yourself underinsured when the time comes.
The first thing you should do when you hop state lines (after you find your plates and cups, of course, is find out what the mandatory state limits are for minimum coverage. Your mandatory minimum coverage (also known as minimum liability coverage) is the amount of money your insurance company will pay out if you're involved in an accident and will look something like this:
25/50/25
(25,000/50,000/25,000)
The first number represents the bodily injury liability maximum coverage for a single person injured in an accident; for example, if you were driving and hit a car holding a driver and no passengers that would be the amount your car insurance provider would pay to cover their medical bills and any recuperative therapy. The second number stands for bodily injury liability for two or more people; in other words, any passengers in their car (or yours) injured as a result of the accident. In the example above (which is the actual minimum insurance requirement guideline for the state of Alabama) the insurance company will pay up to $50,000 in medical bills.
The third number shows how much your insurance company will pay for any property damaged-other vehicles, guard rails, street signs, street lights (yes, it's actually happened-something other than a tractor-trailer successfully sent a street light crashing to the ground after an accident), gas station windows or anything else that happened to get in the way.
These liability minimums are going to change from state to state, meaning you'd be wise to find out what your new state minimums are before contacting your insurer. Your old policy limits might not be up to par for your new home, and while most agents will be able to advise you on what changes you need to make to your policies every once in a while a new agent will slip through the cracks and sell you a policy that doesn't meet state standards. Unfortunately, that's still going to be considered your fault-even if you asked.
The good news is, there are plenty of resources available on the web that will help you find your state's guidelines. Once you have those numbers in hand you'll officially be ready to become a resident of Monkey's Eyebrow, Arizona-or anyplace else you want to call home.
Cheap Car Insurance in Ohio Online
Comparing automobile coverage and rates on the internet is considered by many to be the best approach to finding cheap car insurance in Ohio. Finding cheaper costs for policies online for residents of OH is especially advantageous because there are several resources that are available which are able to provide multiple quotes from different reliable providers for consumers to compare. Through sites such as http://www.onlineautoinsurance.com/ this can be provided free of charge and with no obligation. Ohio’s department of insurance advises consumers to obtain multiple quotations before actually making a purchase. This is because it enables the consumer with the ability to make a comparison of prices and eliminate those which seem to be unreasonable and choose from a more competitive market.
Before comparing rates for premiums, the consumer should understand the type of policy that is required by their particular state. Every state requires drivers to have a guaranteed way to pay for injuries or damages that may result from the driver’s negligence or the negligence of anyone else, operating the motor vehicle that the insured owns. Although this is mandatory by every states laws, the minimum liability limits vary. Liability coverage pays on one’s behalf, when one is at fault of causing injuries or death and/or damages of property, to another party. There are two types of coverage under a liability policy. Bodily Injury (BI) being the first, and Property Damage (PD). The minimum limits one must carry at all times in Ohio are as follows:
Liability limits required in OH:
Bodily Injury Liability (BI): Pays for injury or death to others when the driver of one’s car is at fault in an accident, with the following limits:
$ 12,500 for injuries for any one person's injuries, and;
$ 25,000 for all persons injured in the accident.
Property Damage Liability (PD): This coverage pays for damage to other person’s car by one’s car, with the following limit:
$ 7,500 for property damage liability.
Though these are the absolute minimums, it always wise to consider more extensive protection if it can be afforded in one’s budget. Individuals who have higher end vehicles and/or are financing their vehicle should definitely consider the collision protection option. This will help pay for repairs to the insured’s automobile in the event that it hits another vehicle, crashes into something or turns over. It pays regardless of who causes the accident. Whereas, comprehensive coverage pays for losses that result from incidents that are not collisions, such as theft, fire, vandalism, hail, falling objects or hitting an animal.
Therefore, one’s should first analyze risks and accordingly plan to purchase a policy that will benefit them and their needs. This is simply due to the fact that one does not need to pay for options that will not benefit them nor should they overlook an option that will be valuable to their situation. Once the needed protection is decided, one should find a online auto insurance website that provide information and facilitates it’s visitors with the ability to get several quotes from different providers, which helps when comparing prices. These websites will also help their visitors understand other important factors which should be taken into consideration and finally choosing a cheap car insurance provider in Ohio. By understanding what one needs, they should be able to find the right policy at an affordable price. This can all be accomplished through resources available online without having to leave the house or negotiating with agents.
June 25, 2011
Keep your Cheap Women’s Car Insurance with Regular Maintenance
We all know how cheap women’s car insurance can be. The female of the species get a pretty fair deal when it comes to insuring their motor vehicles.
One of the chief reasons why cheap women’s car insurance is so cheap is that statistically they are much less likely to have an accident. Hence, cheap women’s car insurance specialists can afford to offer lower premiums to their customers as they pose less risk than their male counterparts.
However, whilst insurance is usually cheaper for women, a lot of females claim on their insurance needlessly due to a lack of basic motor vehicle knowledge. Not knowing how to maintain your vehicle can lead to some expensive repairs which require an insurance claim. Simple things like checking your oil levels and tyre pressure can save you a lot of money in the long run.
Maintaining vigilance on your vehicle’s oil supply will keep your engine running smoothly and keep all the component parts finely tuned. Most cars require a complete oil change every 3,000 miles, but it’s always wise to check your oil levels with a dipstick at least once a month. Assuming your oil is just fine can prove a very costly mistake, and if you need to replace your entire engine because there wasn’t sufficient oil lubricating the moving parts, then even cheap women’s car insurance is going to take a nasty hike in premium.
Another thing that is easy to maintain and check regularly is the condition of your tires. Tyres are ultimately going to be the deciding factor about whether you stay on the road or end up in a ditch, so checking your tyres regularly is essential in order to avoid those expensive insurance claims.
Physically inspect the tyre for bald spots and worn tread. The tread grips the car to the road, so if the tread is worn, you significantly increase your chances of losing control of your vehicle and having an accident. In the UK, the law requires a minimum of 1.6 millimetres in continuous band throughout the central three-quarters of the tread width. Your tyre tread should be much wider than 1.6 millimetres though and ideally more than 3 millimetres.
Checking your tyre pressure regularly is essential to maintaining equal wear on your tyres. Over-inflated tyres will lead to uneven wear and worse tyre grip. Under-inflated tyres will corner poorly in wet conditions and will increase your breaking distance. You should be checking your tyres at least once a fortnight, and preferably once a week for pressure and tyre wear.
Having a little knowledge can really help reduce your chance of having an accident and a hefty insurance claim on your hands. Some cheap women’s car insurance companies offer as much as a 15 per cent discount to women who are part of an owner’s club or car owner’s forum because enthusiasts take better care of their vehicles and hence tend to have fewer accidents.
By taking simple precautions like checking your tyres and oil regularly, you can make your cheap women’s car insurance even cheaper.
Car Insurance Quote Myths Dispelled
Insurance companies ask for an awful lot of information when it comes to getting car insurance quotes. The level of detail required by the companies is all used to judge the risk you and your vehicle pose, and how likely it is you will make a claim. There are a lot of myths and rumours surrounding car insurance quotes however, most of which are utter rubbish. Here we dispel the fiction and reveal the truth behind your car insurance quote.
Car Colour Makes a Difference
A common myth but utterly untrue; many people are led to believe that the colour of their car will have an effect on their car insurance quote. There are two schools of thought on colour affecting car insurance premiums. The first idea is that the popular car colours: silver, black and red are easier to sell on and hence hold their value much better. Higher value cars tend to have more expensive insurance quotes, and so the myth goes that if you want to get a cheap car insurance quote, buy a car in a lurid pink.
On the other hand, rumours would have you believe that unusual car colours by their rarity are much more expensive to repair if there is any body work damage, and hence insurance companies require a premium for buying a car in fluorescent yellow. Both explanations are completely false; car colour has no bearing whatsoever on your car insurance quote.
My Credit History Will Be Reviewed
Whilst this was certainly prevalent a few years ago, in most cases now car insurance companies will not check your credit rating. The advent of the internet has made car insurance a highly competitive market, and with so many companies out there, insurers are much less likely to take your credit history into account than they were in the past. Whilst it is true that you can receive a discount to your car insurance quote for paying upfront rather than in instalments, this is true for all customers and has nothing to do with credit rating.
Living in a Sunny Area Will Get Me a Cheaper Quote
The reasoning behind this perpetuated legend comes from the true fact that drivers are less likely to have an accident in clear and dry weather conditions. As the myth goes, if you live in an area which has historically better weather, you will on average have more days on the road with clear and dry driving conditions which means you should have fewer accidents as a result of your geographic location. This myth arises from confusion about one of the criteria asked for from insurance companies. When getting a car insurance quote, companies require you to provide an address because they monitor the average crime levels in your neighbourhood. The weather is of no consequence to your car insurance quote.
Don’t Lie to Get Cheaper Women’s Car Insurance
Many women are coming around to the benefits of buying their auto insurance from women’s car insurance specialists in order to receive cheaper rates. However, with the recession in full swing you might be tempted to allow a few fibs into your insurance policy in order to secure an even cheaper premium. The problem is that not only is this against the law, you can also invalidate your insurance policy by not telling the truth. Here are the top items that are most popular on the fib list, and things you should definitely not lie about.
Convictions
If you’ve had a previous driving conviction, even a minor one, then you must declare that when you’re looking for a new quote from a women’s car insurance company. Most insurance companies will ask if you have had any motoring convictions in the last five years. It is important to remember that a conviction will count from the time you were convicted, not the time of the incident. So if you were caught speeding in January but weren’t officially convicted until March then you have to count five years from March to decide if you fall within the category or not.
Mileage
There are usually two mileage categories which you will have to fill out when applying for women’s car insurance. The first is the number of miles your car has already driven; the second is the expected number of miles you will drive annually. Cars with a lower mileage will have a lower premium but, in the event of an accident, insurers can easily check the number of miles your car has done and a discrepancy can be enough to void your policy, leaving you with an expensive bill to pick up.
Health
This is of vital importance not just for women’s car insurance quotes but for your safety also. If you fail to declare any health issues on your insurance policy, or worse to the DVLA when applying for your driving licence, then you are committing fraud and could go to jail. Serious health issues such as epilepsy are something that both your insurer and the DVLA must know about.
Customisation
Although car customisation is stereotypically in the domain of the male driver, female drivers are increasingly looking to altering their vehicles from the norm. If you have made any modifications to your car which take it outside of the normal manufacturer’s specifications then your insurer needs to know about it. Policies differ between women’s car insurance companies, and some will not make adjustments to your premium for “aesthetic” modifications, but if the car’s performance is enhanced, then this will attract a higher rate of insurance to compensate.
In the end, taking a risk with your car insurance is simply not a wise move. Your insurance is a safety net for when things go wrong and giving insurers a reason to whisk that safety net away from you when you need it most can be a very painful experience.
Understanding California Car Insurance Requirements
Car insurance is something you must have in California if you want to drive. It is the law. That being said, what exactly are the insurance requirements you have to meet? In this article, we discuss that very thing.
California is a cause state when it comes to car insurance issues. Simply put, this means that a party in an accident must be assigned the responsibility for the accident. The cause can be partitioned, but that is less common. Regardless, the party that is assigned responsibility for causing the accident is on the hook for the cost of repairs and so is their insurance company.
If you are going to drive in California, you need to have insurance to cover any damage you are found to have caused. There are two sets of insurance coverage you must have under the law of the state. The first is bodily injury liability insurance. The second is property damage liability coverage. Let's take a closer look.
Bodily Injury Insurance
Under California law, you must maintain $15,000/$30,000 coverage for bodily injury. As the name suggests, this insurance covers any liability assigned to you for bodily injury to another person. If you drive through a stop sign, hit another car and the other driver is hospitalized, your bodily injury policy will cover their bills. The insurance will cover up to $15,000 of the bills for each event, but no more than $30,000 a year regardless of the total number of accidents you cause.
Property Damage Liability
Under California law, you must maintain $5,000 in property damage liability. This insurance is used to repair any damage you cause to another vehicle. This is not a very high number, so you might want to select a bigger figure to cover you in case you run into a car worth more than $5,000.
At this point, you might be wondering how you buy all this insurance? Most of us just buy one policy and don't really know how it works. Don't worry too much. Under California Law, the insurance companies must bundle these together and sell them as one policy. Put another way, you have this coverage even if you don't know it!
The traffic in California is absolutely insane in many areas. Accidents are common. Make sure you are in compliance with California law so you don't run into problems with the authorities.
The Deductible Decision With Your Car Insurance
What is the number one thing everyone complains about when it comes to car insurance? The cost! It can seem like you are just flushing money away given the fact payments are being made each and every year. Adjusting your deductible is one way to address that.
Most coverages included in your car insurance will come with a deductible. What is a deductible? It is the amount of money you must first spend before the insurance will kick in and take care of the various bills produced from a claim. The typical deductible amounts you can choose from are $250, $500 and $1,000. The exact amounts may vary by the insurance company you are working with.
So, what deductible amount should you choose? $250 is considered the default deductible amount. Choosing $250 means you are going to have coverage for smaller events. Let's say someone busts out all the windows of the cars on your block including yours. Your new windows are going to cost more than $250 when installed. You'll have to pay the first $250 of the bill and the insurance company will then pay the rest. If your deductible is higher, say $1,000, you'll have to pay for the first $1,000 of the repair before the insurance kicks in.
Given this example, why would anyone every pick a deductible other than the lowest possible figure? The answer is found in the deductible - premiums relationship. Simply put, the lower your deductible, the higher your premiums. This makes sense for a logic perspective. A person with a deductible of $250 is far more likely to trip the insurance payout than someone with a $1,000 deductible. To "share the risk" the car insurance company cranks up your premiums.
What if we go in the opposite direction? What if we crank our deductible up to $1,000? Will we save money in the long run? It depends on your policy and your driving habits. Raising the deductible to $1,000 will lower your premiums between five and twenty five percent. If the figure is only five percent, it makes little sense to raise the deductible. A discount of twenty five percent is a different matter entirely! The other subtle issue is your driving history. If you've never had an accident and never made a claim, then raising the deductible really isn't very risk at all. If you are always dinging your car, it is. You'll just have to decide.
A common strategy used by many people is to raise their deductible as high as possible. At the same time, they save up $1,000 and set it aside in case it is needed. This approach lowers the premiums, which saves you money year after year after year.
June 15, 2011
Focus on Your Car Insurance When Cutting Your Expenses
To say it has been a rough year for most people is a minor understatement. The name of the game these days is to cut expenses wherever you can. One place most people do not look, but should, is their car insurance. You can make a few changes that will really drive down the price.
Insurance is a subject much like taxes. You don't really want to deal with it, but you know you have to. I own life insurance, but honestly don't really understand how it works other than to know it will pay out money when I die to the person I designated. Other than that, I just send in a check every month and hope for the best.
Most people view car insurance the same way. They ask for "full coverage" and then go for the lowest quote they get. What most people don't understand is car insurance is actually a collection of different insurance coverages. You don't need all of them. The ones you do need do not really require all the coverage you might be paying for. If you can get things under control, you can slash your car insurance premiums and give yourself some serious budgetary relief.
The first issue to consider is the coverage you have. You need liability insurance because this covers you for third party claims. Put more specifically, this covers you for the repairs to other cars and medical claims if you cause an accident. Whatever you do, make sure you maintain liability coverage.
What about comprehensive coverage? Well, you might need this, but you might not. Comprehensive coverage takes care of the cost of replacing or repairing your car. You need it if you drive a new or old car. The question is how much coverage do you need? If you are driving a 5 year old Honda with a blue book value of $6,000, you probably don't need $50,000 in comprehensive coverage. Cut the coverage down to $10,000 and your premiums will drop.
Car insurance comes with coverage for medical bills should you be involved in an accident. Millions of Americans don't have health insurance, but what if you do? There is little reason to pay for medical coverage on your car insurance if you already have independent health insurance. If this is the case, cancel the medical coverage on your car insurance and save big bucks.
The final step with your expense cutting has to do with your deductible. The deductible is the amount you are responsible to pay before your car insurance kicks in. Most people have it set at $250. You should raise the deductible to $1,000. Your premiums will plummet because it is far less likely the insurance company will have to pay any claims. To avoid problems, make sure to save up and set aside $1,000 for any repairs.
You can slice car insurance premiums by 20 to 30 percent with these simple steps. In some cases, the discount will be even more. That is some serious money and we can all use every buck we can find these days.
Car Insurance For Your Kids
Car insurance is going to be a big deal when it comes time for your kids to start driving. The big deal will be the price. Simply put, it is going to be a lot!
Quick - name the riskiest class of drivers on the road. Yes, it would be new drivers. The lack of experience of a new driver means that they are susceptible to making the wrong decision at the wrong time. The definition of experience, after all, is learning from your mistakes. For new drivers, these mistakes often come in the form of accidents.
Insurance companies really dislike risk. The more risk there is with a class of drivers, the higher the premiums that will be charged by the companies. With teens, the risk is much higher. Compared to a senior driver, a teen is three times as likely to get in a crash. Three times! That alone cranks up the cost of insurance coverage.
Your kids are going to start driving sooner or later. When they do, you are going to have to deal with car insurance. Is there any way of cutting down the cost? Fortunately, there is. The key is to go for the discounts offered by the various insurers. When totaled up, they can save you 20 to 30 percent on the premiums.
The first discount you should consider is the good grade discount. Most insurers will offer a 5 to 10 percent discount if the kid drivers maintain a certain grade point average. Why? Well, it tends to require the kids to be responsible and focused, two traits which translate to driving.
The second discount you can take advantage of is the professional training course. The free training through high school, if it is offered, doesn't count. You need to put them in a professional driving school approved by the insurer. This can save you another 10 to 20 percent on premiums and is definitely worth it.
The third approach is to consider bundling all your home and auto insurance needs with one company. In exchange for all the business, they will often heavily discount the cost of insuring the kids. If you can nullify that expense, you can really avoid the hefty price of letting your kids drive.
Buying car insurance for your kids can be an eye and bank account opening experience. Investigate the discount options available to you and you may just find that you can serious cut down the costs involved.
Why Car Insurance is So Important to Your Financial Well Being
Many states now require that you buy a certain amount of car insurance if you're going to drive. Because of this, many people don't realize why it is so important to buy car insurance. Yes, there is a reason other than taking your money! The reason has to do with protecting yourself from potential liability.
If you're an adult, you well know that there a lot of attorneys in this country. From lawsuits over coffee at McDonald's being too hot to the bizarre wording you see on products like hair dryers that tell you not to put the hair dryer in the bathtub, we live in a society that is perpetually in fear of being sued. Well, guess what the number one risk is in your life for being sued? It isn't throwing the hair dryer in the bathtub! It is not serving food or beverages that are far too hot! The single biggest risk that you face for getting sued arises from driving a car.
Car accidents are a normal part of our society. Nearly every one of us drive. With literally hundreds of millions of cars on the road, it's inevitable that there are going to be accidents. Such is life, but the question becomes who is going to be considered at fault in the accident? This is a huge issue because fault necessarily leads to damages. What are damages? Damages are the monetary that must be paid in recognition of your responsibility. Let's take a closer look.
Let's say that you run a red light and hit somebody. They end up breaking their shoulder and are hospitalized for five days. You are clearly at fault and admit it. So what are the damages? Well, the first form of damage is going to be their medical bills. The second form of damages is going to be the cost of the repair of their car. The third form of damages is going to be their pain and suffering from the accident. The fourth form of damages is going to be the lost wages from the five days they stayed in hospital instead of going to work. This fourth form of damages may be even bigger if they can't go to work after leaving the hospital for a certain period of time.
So what are the monetary numbers that attach to these damages? Well, it is difficult to guess at. In general, you might expect $50,000 in medical bills and another $50,000 in pain and suffering. We might also assign $2,000 in lost wages. We might estimate another $10,000 for the repair of the car. I would consider this a fairly conservative estimate. Still, they total $112,000. So, how much insurance you have? If you're like most Americans, you have $15,000 per accident. Put another way, you're about $98,000 short!
As you can see, car insurance is something that you should not just buy by price. Instead, you should view it as a pivotal part of your financial profile. Life is full of all kinds of risk. A measly 15,000 or $30,000 of coverage is not going to cover you in most car accidents. About 10 times these amounts will do the trick.
By definition, we are all human. We make mistakes. Making mistakes while driving can cause serious damages to others. Make sure you have adequate insurance coverag
Considering Your Car Insurance - Liability Coverage
It is the rare person who considers buying car insurance to be a fun event. Most of us just shop by price and try to get the best deal that we possibly can. Is this the best way to go? In many cases, it is not. The problem has to do with the liability aspect of your coverage.
Few people realize that their car insurance is actually a collection of different types of insurance. One type will often be collision insurance, while another aspect of the policy may be medical insurance coverage, while yet another aspect may be applicable to certain replacement issues. The mass of information can be overwhelming to the point you aren't really sure what is important and what is not, so let's clear that up.
The most important part of any car insurance policy is the liability protection. What is liability protection? It is the aspect of the car insurance that covers you from any claim of damages by a third-party. Why would a third-party be claiming damages? Probably because you were in an accident with them and they believe you were the cause of the accident. This can make you liable for the repairs or replacement of their car as well that their medical damages. But wait, it gets better. If they sue you, you're also going to have to deal with paying a lawyer to defend you. Liability aspect of your insurance coverage may very well cover the cost of that lawyer.
You actually are already fairly familiar with the liability coverage in your insurance policy whether you realize it or not. It is represented by the two dollar figures that are quoted when you shop for car insurance. The first figure is often 15,000 followed by second one of 30,000. These two figures relate to the amount of insurance that you are buying. The 15,000 figure represents the amount of money the insurance company will pay on your behalf for each claim against you. The 30,000 figure represents the total amount of money the company will pay regardless of how many claims are made against you.
Let's focus on the $15,000 figure. Ask yourself a simple question. If you cause an accident and the other person is hospitalized, how far do you think the $15,000 will go towards paying their bills? How about towards replacing their car? It certainly is not going to go very far. So what happens when it runs out? Well, here's a scary thing. You're going to be personally liable for anything in addition to the $15,000. The insurance company does not have an obligation to continue to pay anything other than what is in the policy - a fact that should terrify you.
As you can see, a car insurance policy with a $15,000 per event coverage limit is not really much of an insurance policy at all. The good news is you can buy much higher insurance coverage amounts without spending a ton of money. For example, the difference between carrying $100,000 in coverage and carrying $500,000 in coverage is only about an $80 increase for your premiums. How can this be? Well, it has to do with the probability of you getting into an accident that will result is a big dollar money claim by a third party. While a good number of us will get into fender benders every so often, fortunately very few of us are going to get into crash that results in major medical damages. As a result, the insurance company can tell that the probability of there being a major claim for any particular policy is usually pretty low. With this in mind, the premiums for the additional coverage are also very low.
The last couple years have seen some seriously tough times for Americans given the Great Recession as they are calling it now. There are many areas where you can cut back on your insurance expenses. Lowering your total coverage is not one you should be touching. You can actually raise your coverage without spending a single dollar more than you are now. The key is to raise the amount of your deductible. This will lower your premium to the point that it more than compensates for the cost of the increased coverage.
Car insurance is one of those things we all hate to pay for until we really need it. Make sure you have sufficient coverage to protect yourself should
How Filing Claims Affects Your Car Insurance
Car insurance is a funny thing. Most people can't stand paying for it. Only when they need it are they really happy that they did. While everyone complains about the amount they pay in premiums, the truth is you can do a lot to lower those amounts. In this article, we take a look at the issue of how filing claims against the insurance policies will affect your car insurance rates.
There are two very distinct views when it comes to car insurance. Some people view their policy as a pool of money that they can access whenever they need to. Others view it as a financial tool that should be used only as last resort. Your attitude toward your car insurance goes along way to establishing how much you're going to pay in premiums. For some reason, this is a big surprise to most people. It should not be. Let's take a closer look at how this works.
Let's say you're fresh out of college and you have a job. You living in an apartment in a decent part of town. Unfortunately, you don't have a garage. You come out of your house one morning to drive to work and noticed a dent in the side of your door. The dent isn't too bad, but it's clear that the paint is scraped and the door is dinged in. What do you do? You really have two options. The first is to take it to a repair shop and get it repaired with your own money. The second is to take it to your insurance company and have them deal with it. The first option is going to cost you more in the short term, but the second option may cost you in the long-term.
The more often you file claims under insurance policies, the higher your premium rates are going to go. Why is this? Well, think it through. The more often there are claims on the policy, the more money the insurance company has to spend. You can bet the insurance company is going to be paying close attention to how much money they're spending on your policies. Once they realize that they're spending more and more money, they're going to do one of two things. The first is to raise your premium rates the next time you renew your insurance. If you really go nuts with your claims, they will simply cancel your policy.
So, how do you know if you're making too many claims under policy? The average for all insured motorists in the United States is one claim approximately every 11 years. Yes, 11 years! Once your insurance premium rates start going up because of excessive claims, it can be very difficult to get them to come back down. As a result, you want to be really careful of making claims.
You buy car insurance for a reason. It is important that you figure out what that reason is. If you hate paying high premiums, take care of small repairs on your own. If you don't really care how large your premiums are, then you can make as many claims as you like. It is up to you.
June 12, 2011
Car Insurance Advice - 5 Factors That Influence Your Insurance Premium
First of all you need to know that having car insurance isn't an option it's the law. Even so having car insurance should be done in a way so that you can get maximum benefits out of it.
You can get maximum benefits is you get a hole year policy.
Second you have to know the importance of the car insurance. Mostly the new drivers to the mistake of not knowing it or not understanding what can be the loss of not having the policy. They may suffer a lot by this huge mistake.
You are a driver or a car owner maybe you own a motorbike or another kind of motor vehicle than you absolutely must have car insurance.
Your insurance premiums can vary because of the following factors:
* Age, driving record, and the vehicle you own, vehicle's age and where do you live.
* Also before buying the car insurance, do a retrospection of the coverage components which are resumed below for you.
* Liability protects you in case the accident it's by your own fault. Covers the damages made to the other car and the medical expenses, the pain and sufferance of anyone injured.
* Comprehensive pays for the replacing of your car in case of theft or the repairs your car will need in case of fire, flood or powerful winds.
* Collision, regardless of whose fault was the accident this type of coverage will pay for the repairs to your car or the replacement of it on the market value.
Figure out what coverage you need and you will keep costs down. Many states don't require the same amount for the liability coverage. You can find out about these facts from your state department.
Also you could contact an insurance broker because he will know the current market and will get you the best deal.
By the way avoid the car insurance scams by making sure that your insurance company or agent is licensed by your state.
Shop around don't take the first offer you hear about.
And DO NOT PAY IN CASH! (This can be an easy scam to pull and you don't know how many people fall for this one.)
These being said good luck in finding a fitting car insurance, and let`s all hope that you won't really be using it often.
Car Insurance For Students - 6 Tips To Help You Get The Right Car Insurance Plan
You're in college you and you just bought a car, now you need car insurance so you may "roll on the road". How do you find an insurance policy suitable for you and your car? You need a cheap one of course, but one who can also provide sufficient coverage.
Do you know what are you entitled to since you're a student? No? Well in the following you will get a lot of answers. Basically car insurance for students it's about the same thing with any car insurance only that a student can qualify for few discounts that the average man can't.
What influences the amount you pay on your insurance policy?
The price of the policy is set based on age, gender, driving record, location of vehicle, vehicle accident history, daily mileage; you can't avoid these factors but there are ways to lower your premium by choosing the right insurance plan.
What should you do first?
You should shop around , find out as much information from at least 3 different insurance companies, compare the offers and see which has the more suitable premiums that situates in your budget.
Get to know the basics of a student car insurance plan
This is what car insurance plan should contain:
* bodily injury,
* personal property liability,
* collision, comprehensive,
* personal injury protection,
* uninsured motorist, etc...
Do your grades affect the price of the policy?
In a way yes they do, many insurance companies offer discounts to students that maintain a B average or higher. Bring proof of your grades when you apply for your car insurance.
Get your car insurance policy at the same company as the rest of your family
Make shore you apply for all the discounts the company is offering, even if you get a student discount. You may get family discount if you purchase your insurance from the same company your family did.
How do you know if you qualify for a cheaper premium?
Car insurance is usually based on the car's safety probability so if you're thinking to buy a high speed sport car and you want a smaller premium better think again. As well look at the possibility to install a burglar alarm that should reduce your premium considerably.
Are you a safe driver?
If you want to lower your insurance policy you shouldn't drink and drive! This sounds like a police warning but actually this the most important step in lowering your car insurance. The fewer driving violations you have and car accidents the more money you safe on the insurance. Park your car in a safe area and maintain the speed limit.
A car to a college student it's like "a baby to his mother", having a car to college is a luxury that many students don't have. College should be both fun and safe. Take care of you and your car; Get an insurance policy so you would feel more secure.
How Much Is Your Car Insurance?
When thinking of purchasing a car, most individuals will think 'is this motorcar costly to insure?' Interestingly, owning an price automobile does not inply that your motorcar policy will be cheap. Still, owning an costly automobile doesn't mean that your policy will price you an arm and a leg.
The type of car you get and it's claim chronicle has a larger affect on what you will pay for insurance than does the actual price of the automobile you're insuring.
For example, if a certain car has a track record of being stole more often than others, if its repair costs are comparatively high, or if it's been in more accidents than other motorcars, auto policy insurance premiums for that car will be substantially higher than average.
Your car insurance premiums are based on various factors. The most important are as follows:
The more pricey the automobile, the more it price to replace it.
It's fix costs. To A Greater Extent technologically advanced automobiles are commonly more expensive to repair.
Whether it's stole more than often than other autos. For example, the BMW M5 and the A5 are an example of two cars that are stole the most often. If you live in an region with higher motorcar thieving rates your insurance quote will likely be higher.
The more raw power the car, the more significant your insurance premiums will be. high performance cars, sports cars, and luxury cars are in the greatest theft class including light weight vehicles due to they have the greatest death values. Lorries and passenger vans are categorized as having the lowest losses for auto vechile impairment, however although trucks and Sport Utility Vechiles will generally have less damage in a collision, they will induce greater damage and consequently their financial obligation rates will be higher.
If you live in a country that features had a deal of policy fraud, such as Texas, your insurance rates will be higher. Your age, your sex, your driving account . If you are young, male, and have a low driving record your insurance will be substantially high compared to a middle aged man with a good driving record.
So, one of the greatest expensive autos to insure would be a light weight, high performance sports automobile that is pricey, technologically advance and have a history of being stolen frequently. Today if it's driver is a 18 year old man with a account of accidents who lives in a busy city the auto insurance insurance premiums will most likely be substantial.
Car Insurance - Why Loss of Use Should Be Part of Your Policy
People often say that the car has replaced the horse in modern society. This is really inaccurate. The car is far more important than the horse ever was. Don't believe me? When was the last day you went without driving your car? It was probably a long time ago. Even if it wasn't that long ago, how long do you think you could go without a car? Unless you live in a city, the answer is probably not very long.
When buying car insurance, many people assume that they're getting certain things. Obviously, they expect to be covered in case they cause an accident with another car. They also expect the car insurance will pay for the repair or replacement of their own car should it be damaged. One of the things that they may not really contemplate, but do expect, is that they will be given a replacement car while theirs is being replaced. Many policies actually do not provide for this automatically. If you are at all dependent upon your car, it is vital that you make sure that this type of coverage is included. Rental cars are not cheap!
So how do you tell if you have this kind of coverage? Well, you need to look at your insurance policy. The language you are looking for refers to something called "loss of use." What is loss of use coverage? As the name suggests, loss of use coverage refers to the expenses for transportation while your car is in being repaired or replaced. In more practical terms, this simply means that you have coverage for a rental car. Indeed, many people including those in the insurance industry refer to this clause of the car rental coverage clause.
Buying loss of use insurance with the car policy is definitely something you want to do. The idea of buying more insurance probably is one of the least favorite things for most people. That being said, going for days without your car is far worse. Most of us drive to work and home. Most of us need our cars just to get around to find basic things like food. You really don't realize how dependent you are on a car until you don't have it. If you don't believe me, try a simple little test. Lend your car to a friend one morning and tell them not to bring it back till the end of the day. I guarantee that you'll be going batty by noon!
Loss of use insurance is simply worth its weight in gold. It may not seem like it now, but it will when you suddenly need to get around and your car is in the shop. Paying for a rental car with your own money for more than a few days is an extremely expensive proposition. Paying 10 to 20 bucks a year extra on your car insurance to get loss of use coverage is definitely a better deal. Do it!
Should You Buy Road Service As Part of Your Car Insurance?
It is amazing how things have changed in these modern times. It wasn't that long ago that when you had problems with your car, you had to hike up and down the road trying to find somebody to help you. Well those days are long gone. Now there is something known as road service. It is truly one of the great inventions of these modern times!
What is road service? It is exactly what the name suggests. If you have a problem, you simply contact the phone number provided. A service professional will be sent out to your location to assist you. The service professional is usually a local provider who will take a look at the car and make any simple repairs on the spot. If the car can't be repaired quickly and easily, they will then arrange for the car to be towed to a facility. You'll then be given a ride home or transportation will be arranged. It is a wonderful service!
If you purchased a new car in the last five years, you're probably already well aware of what road service is. It did not originate as an insurance product. Instead, car manufacturers started offering it as an enticement to buy their cars. Manufacturers such as BMW and Mercedes were some of the first to do this. As is often the case in industry, the other manufacturers started offering it once they saw how successful it was for the original manufacturers.
If you have a new car, there's no reason to buy road service as part of your car insurance. The manufacturer will cover it for an initial period that can be anywhere between three and five years depending on the program their offering. But what if that time is past? Should you buy roadside service as part of your car insurance? The answer is that you probably should not. There are a couple of reasons.
The first reason you should not buy road service as part of your car insurance has to do with the quality of the service. Simply put, other groups like AAA are far better at handling it. They've been doing it forever and they have the service down to a fine art. When you have a problem, you just call and AAA takes care of everything. As an additional benefit, you do not have to file a claim or anything of that sort. Everything is simply handled by AAA as part of the flat fee you pay for membership.
There's an additional reason why you should not buy road service as part of your car insurance that is little more subtle. Some car insurance companies consider calls for road service to constitute a claim. The premiums you pay for your insurance are determined by a number of different factors. One of the factors is the number of claims you make on your policy. You can probably see where I'm going with this. Let's assume you have three problems with cars on the road in the next five years and call for road service each time. If your insurance company considers each of those problems to be a claim, your premiums are going to skyrocket! That will be a disaster.
Road service is a great thing and you should definitely arrange to have it. That being said, including as part of your car insurance is probably not the best idea. There are other options that are better from both an economic and strategic perspective.
June 7, 2011
How To Find Cheap New Driver Car Insurance
Passing your driving test is a brilliant feeling, as you probably are aware otherwise you would not be reading this. It gives you a new level of freedom, being able to jump in your car whenever you want and go wherever you want to.
The whole process can be very costly though, the cost of a car, the tax, the mot and of course the car insurance. Unfortunately for new drivers, car insurance is very expensive when you start out. Usually over the thousand pound mark. This can often be more or nearly the same price as the car, unfortunately until you acquire some years of no claims bonuses, there is little that anyone can do to lower the insurance cost. With my first car my insurance quote was over fifteen hundred pounds, an amount of money that I was prepared to pay, but instead of getting too downhearted I did my research and found a great solution to the problem, in the end I managed to get it down to just below one thousand pounds.
But there is one way to pretty much guarantee you can knock some money off your insurance premium and that is to use a car insurance comparison site. I would not recommend using any standard car insurance comparison site because they aim at the general market, being a niche consumer of car insurance, i.e. a new driver, you need to visit an insurance comparison site that specialises in providing cheap new driver car insurance. There are a few around, and the reason you need to visit them is because they provide insurance quotes from insurers that concentrate on finding extremely good deals for new drivers.
If you go with any general insurance broker they are unlikely to offer you the best price on your car insurance because just like every other business they have to make money and unfortunately it is risky to insure new drivers. Something like 70 percent of new drivers crash in their first year, so unfortunately for the other 30 percent, you have to pay price of others mistakes.
But by choosing a car insurer that concentrates on providing new driver car insurance in the UK you will definately get a lower quote. This is because these car insurers deal mainly in supplying insurance to new or young drivers, they will have excellent prices for you to sign upto, helping you to enjoy the freedom of being able to drive.
But who do you choose? As with everything in the insurance market, there are hundreds of companies all fighting for the same business. I recommend you chose someone that compares a lot of insurers and that also offers a simple to use and quick to fill in quote form.
Good luck with finding your new insurance policy and enjoy the driving.