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.