October 21, 2012
Automobile Insurance – A Legal Requirement
Every state in America makes having some form of automobileinsurance or proof of financial responsibility a legal requirement, and each state has its own minimum requirements when it comes to the amount of automobile insurance or proof of financial responsibility a driver must have. Most law abiding citizens comply with the legal requirement of having a minimum amount of automobile insurance or proof of financial responsibility; however, there are still drivers out there who don’t have automobile insurance, or who haven’t shown proof of financial responsibility in the event of an automobile accident.
Even though many states are cracking down by requiring drivers to show proof that they hold the state’s minimum automobile insurance or financial responsibility before they can register their vehicles, there are still drivers who are slipping by. Why would a driver choose not to insure himself and his automobile? Many drivers feel that by purchasing automobile insurance, or by forking out the minimum amount of money to cover the financial responsibility requirements of their state, they are spending money they’ll never see again. Plus, this money they feel “they’ll never see again” is usually money they feel they can’t afford. However, should these drivers find themselves in an automobile accident without at least the minimum automobile insurance or financial responsibility requirements of their state, the legal mess will most likely cost much more than the automobile insurance payments or financial responsibility would have cost.
If you’re thinking about “slipping by” without purchasing the minimum automobile insurance or showing the minimum financial responsibility required by your state, don’t. You may think you’re an excellent driver who will never cause an accident, but your state has made automobile insurance or financial responsibility a legal requirement for a reason and it’s not just to protect drivers who may be involved in an accident in which you are at fault – it’s also a legal requirement that will protect you.
How to Get an Automobile Insurance Comparison
Due to the rising prices of basic commodities and services, it will be wise to look for offers that provide the best product or service to a consumer while allowing him to save money on the sale. Just like basic services, the types of insurance policies that provide the best service and coverage while being affordable can immensely help with the budget of a car owner. For this reason, auto insurance finders should always look for ways to find a reliable automobile insurance comparisons to aid them with choosing the best insurance policy.
To prevent a car owner from ever worrying about his budget and his car insurance, he must learn how to find an affordable automobile insurance policy or automobile policies that cover a wide list of damages. Finding an automobile insurance policy that has both will be perfect. Nevertheless, a car owner should never make the mistake of considering a cheap automobile insurance policy that offers only a low premium. This is a common mistake for most car owners. They always fall to the fancy ads that keep mentioning the word "cheap" which they later regret in the event that they do experience automobile damages.
To make the search for the best automobile insurance company successful, a car owner should always remember that the most crucial and critical step is to acquire as many quotes as possible. However, a car owner should always remember that as a general rule, the laws and regulations of a state can affect the policies of a cheap car insurance policy.
The first step in finding an affordable but highly valued automobile insurance policy is comparing many insurance quotes. This can be done by looking for insurance quotes from a number of the country's top insurance companies. This is only possible by asking around and visiting insurance companies to acquire valuable information about their insurance policies and the corresponding price for each policy.
The price of the policy is the most important consideration. Different insurance companies offer different rates depending on age, sex, marital status, zip code, and etcetera. The good news about looking for different quotes is the way the competition can force the rates down.
Another important factor to consider is the state of the insurance company. It is important to find a way to know the financial condition of an insurance company. The rating of the company depends according to its financial strength and its ability to meet obligations to customers. Therefore, to find a stable insurance company, you should take into account its quality, reliability and financial strength.
A very important but often overlooked factor is the customer feedback of the company. Because an insurance company collects premiums from its customers, it is a must that the company honors their agreement by providing the service the customer deserves. A quick search on the internet for feedbacks about a particular company is easy and free.
The importance of an affordable automobile insurance that covers a number of automobile related damages is often taken for granted until such time that a car faces accidents or damages. In a situation like this, the absence of an automobile insurance policy that covers only a limited number of damages in the car can be frustrating for a car owner, let alone the lack of an automobile insurance policy at all. To avoid this situation, a car owner should always make an automobile insurance comparison if he wishes to take care of his car.
Automobile Car Insurance – Get 40% to 50% Off Price
Car insurance provides security to the driver against liability incurred if he or she should cause an accident. In most states everyone needs to have the basic liability insurance policy.
It is always a good idea to go online to your state government website and check the current minimum requirements for car insurance. You should do this before you apply for insurance either online or with an agent because many times agents and brokers and even the online companies will attempt to sell you more insurance than you need.
Every person wants to save money on car insurance no matter which type of automobile insurance, they are required to buy and there are ways to do this.
1.Buy basic liability insurance. This is the least expensive type of insurance and will cover you in the event that you cause an accident, which causes property damage or injury to other people. This type of insurance will also provide legal assistance to you in the event you cause an accident and people would sue you for damages over and above the liability amount.
Liability insurance however will not pay for your injuries or damages to your car in the event you cause an accident.
Liability insurance is generally 20% less than comprehensive insurance and is a good idea if your car is pay for.
2. Collision insurance. This type of insurance not only pays for other people in other cars but it will also pay for your car even if you caused the accident. If you buy a car and finance it you must have this type of insurance.
3.Comprehensive insurance. This type of insurance will cover your car against absolutely everything including damage and theft. This is the type of insurance finance companies want says that you have in order to protect their investment.
No matter which type of car insurance best fits your needs you can save 40% if you will raise your deductible to $1000 per accident or even $1500 per accident.
With the different types of automobile insurance that are available the best thing to do would be to go online pick out five insurance companies and asked for a quote.
Take the different quotes and call your insurance agent and asked him if he can match the price.
Another option is to buy direct car insurance. These types of insurance companies can sell insurance cheaper because there is no agent involved and no commissions being paid.
Jimmy says there is a lot of different ways you can save money on car insurance. These are only a few.
Automobile car insurance can be inexpensive and all have different rates but you can save money no matter what type you buy if you apply the available discounts.
Automobile Insurance Companies
...and their true underlying financial strength.
Few things are worse that signing up with an automobileinsurance company that won’t float the boat if they receive a flood of claims all at once (no pun intended). However, such a situation can, and has, occurred if a large natural disaster takes place and they receive thousands, or millions of insurance claims all at once. Legally, they are required to have a certain amount of reserves, but even this is not enough for some companies to survive at times. Even more so for smaller insurance companies.
Some well-known national companies will not even offer insurance to certain regions of the country where the risks are very high. Can you imagine the number of claims that are filed after a hurricane? Millions. Certain regions are definitely more prone to hurricanes than others.
In fact, although not a common occurrence, some companies have closed down altogether because their financial strength failed completely—some as recent as this year. Most of us heard that the insurance company AIG went bankrupt, but fortunately, they were able to transfer their clients to other insurance companies to continue their coverage. Their failure was more about market pressures than it was about people filing a lot of claims.
In order to better understand the financial strengths of insurance companies, we have provided a list of the top rated companies, according to Weiss Ratings. Weiss Ratings is an organization that rates the financial strengths and reliability of insurance companies.
More specifically Weiss rates the automobile insurance company underwriters. An underwriter is sort of the insurance company of your insurance company. In other words, they are the actual people that assume the financial risk to insure you. Your insurance company is mostly a sales and customer support group, and comprised mostly of brokers. In fact, there are far less underwriting companies than there are insurance companies. This arrangement actually makes it safer for everyone.
When you are shopping for insurance, you will usually become informed at some point of who your underwriter will be. If they are on this list, you can be rest-assured that their chances of sticking around longer are much greater than other lesser-rated automobile insurance companies.
UNITED SERVICES AUTOMOBILE ASN TX A+
USAA CASUALTY INS CO TX A+
INTERINS EXCH OF THE AUTOMOBILE CLUB CA A+
PROTECTIVE INS CO IN A+
HASTINGS MUTUAL INS CO MI A+
AUTO-OWNERS INS CO MI A
SENTRY INS A MUTUAL CO WI A
COUNTRY MUTUAL INS CO IL A
KENTUCKY FARM BUREAU MUTUAL INS CO KY A
MERCURY INS CO CA A
For the most part, worrying about the financial strength of your underwriter shouldn’t be on the forefront of your mine because it is not often that they collapse. If you do hear of their difficulties through the news or other sources, you may want to consider changing insurance companies. Even if they did collapse, they would notify you and you would be safe as long as you did not need to file a claim at that time.
October 17, 2012
October 15, 2012
What You Need in Automobile Insurance Coverage
So you are looking at automobileinsurance and wonder what you will choose. This is a typical reaction for those looking for automobile insurance. When you sit down with an insurance agent, whether in person or on the phone, they might ask you some questions you do not know much about. This is turn, can change your automobile quote significantly if you do not get exactly what you need. Some people need more coverage, some people need less. Here are some pointers you need to consider before committing to an automobile insurance policy.
First off, what kind of car do you have? If you are making payments on a car (have it financed through a lender), you will have to carry full coverage. There is no getting out of that. Here are some ways you can save on automobile insurance if you are required to carry full coverage:
1. Select higher deductibles.
2. Multi car discount if applicable.
3. Multi line discount – if you own a home
4. Good Student discount. If you are a high school through college student that receives a B or better average, you will qualify for this small discount.
5. Safety features. You will receive discounts for additional safety features that your car has outside those required by law.
6. Military discount – if applicable (active or retired)
7. Driving course – if you have not already taken the driver improvement course, you may want to. This is an additional discount you can receive.
8. Good driver discount. Most insurers offer a good driver discount. This means you have not had any accidents typically.
If you are in the situation where you completely own your vehicle ( are not making payments to a lender), then you have some other options available to you.
1. Decide if you really need comprehensive and collision. It is a well known fact that after a certain year range, it does not make sense to carry comprehensive and collision on a car. If something were to happen to the car, you would only get book value for the car at the time. We all know what that means – not very much. If you are in a situation where you will not get close to the amount of money that you put into the car in case of an accident, then you might want to consider forgoing the comp and collision.
2. Decide if you need an excessive amount of health insurance coverage through your auto insurance policy. Some people have very good health plans regularly and can just use the automobile insurance policy as filler in excess. This is a very touchy subject, however. It is very important you make sure your health insurance will be able to cover a large sum in the case of a serious accident. If it can not, and you need to use your auto insurance, how much extra would you need. Find out the specifics.
If you would like more information on how you can save money, shop around. Each insurance company out there is vying for your business. They know how easy it is to get quotes from multiple insurers. It also helps us, as the purchaser of auto insurance, that we have the internet. It is up to you to make sure you do your research.
Who Has the Best Automobile Insurance Premiums?
When it comes to automobile insurance, there are so many insurance carriers out there; it is sometimes a bit overwhelming. Each company claims to offer the lowest priced premiums and excellent customer service, but in fact, who really does? If you were to search on Google, typing “Automobile Insurance”, you would find thousands of insurance companies. You will notice some of the names, and others you will have never heard of in your life. So where do you go when looking for the best deal on automobile insurance? This articles was designed to give you some perspective on some of the most trustworthy insurance companies out there that offer great deals.
Geico:
It is a safe bet to say, everyone has heard of the insurer Geico. It is hard not to miss their humorous advertisements on the television, radio and internet. They are virtually everywhere! This is because Geico is a healthy company. Not only do they offer great rates, they have excellent customer service. Personally, I have insured both of my vehicles through Geico and have never had a problem. I decided to switch to Geico after talking to a few people. At the time I had Progressive ( an insurer I highly do not recommend). They informed me I was paying way to much for my car insurance, so I got a quote through Geico. And like the commercial said, I did save $102.00 a month on car insurance. Talk about a huge difference!
Nationwide:
This is an insurance company that carries different types of insurance. It has been around for a long time and knows how to take care of its customers. They offer a huge variety of auto insurance discounts. If you visit their website, you will see a very clear, clean layout that answers many automobile owners’ needs. Another great aspect of this company is they are very forgiving. They have an accident forgiveness program that is truly unique to their company. They are also understanding of teen drivers. If you have not yet considered Nationwide, you might want to get a quote.
Allstate:
If you are a driver that has had a clean record for a while, this is a good option. Allstate is definitely not for the newer drivers, but for the more well established. The difference between say Geico and Allstate is they take your credit score in to major consideration. Allstate offers great deals, discounts, especially if you insure multiple lines with them. Like stated above, if you are in good standing with your driving record and your crdit, Allstate is definitely a great option to choose.
It is important to find the best insurance company that fits your specific needs. The insurance company you pick will vary according to your specific such as a new driver, multiple cars, driving record, credit history and more. Remember, it is important to shop around for car insurance. It costs nothing to get a quote and most quotes are active for at least 15 days after acquiring on. In these times, it is a necessity to save where you can
October 12, 2012
October 10, 2012
The Importance of Automobile Insurance
When you buy a car you need automobile insurance. Buying motor insurance is not only for your own benefit but it is required under the law. You may think that you are a safe driver and you don’t need the insurance or that paying insurance premiums are an unnecessary legally mandated drain on your budget. When you get into an accident caused by a reckless driver your immediate step in aid is your insurance policy which will cover the expenditure that will creep upon you unexpectedly. The bright side of paying insurance premiums is that there are many ways to make them affordable and customized according to your needs.
Every state in the U.S. makes it mandatory that an automobile owner has insurance. If an automobile is driven without insurance, an American driver risks losing his or her license and the departments of motor vehicles of the state charges a hefty fine before the license is reinstated. All states impose a mandatory minimum automobile insurance cover. This basic coverage is for the bodily injury of the driver, the passenger, and for property damage.
Some states follow the traditional tort system where the driver at fault is liable to pay damages and others follow the no fault system where victims of automobile accidents can get a small compensation even before liability is ascertained.
The minimum coverage mandated by the State is never enough to cover actual costs when an accident occurs. It is therefore important to ask for higher coverage because bodily injury and property damage will be the single largest expense if you are involved in an accident. If you live in a state where no fault liability is the law, then a personal injury protection coverage is required. Other coverage policies offered by the automobile insurance company will give you added protection when you are involved in a motor accident. Collision insurance is for damages to your car after a collision and comprehensive insurance is for cases where the accident is caused by vandalism or natural forces like falling trees or floods. You can skip buying collision and comprehensive insurance if your car is an old model.
The automobile insurance industry is a competitive business because there are so many insurance companies in the insurance market. You can shop for the best deal through online quote engines where you can get quotes from reputed automobile insurance companies. Quote engines are useful internet shopping tools because they give you quotes from automobile insurance companies that are highly rated by rating agencies like A.M.Best and Moodies. This can help you lower the monthly premium to be paid for automobile insurance coverage. There is no getting out of the state mandated minimum coverage that must be charged by all insurance companies. However, on all other coverage policies you can shop around and get discounts. There are many reasons for which insurance companies give discounts to their customers. Insurance Companies base their discounts on past driving experiences. While you will qualify for discounts for some Insurance companies, you may not qualify for discounts with others.
Insurance companies may give automobile premium discounts for your clean driving record, the location of where you live, your profession, and on the basis of how often you use your car. You can also get discounts if you buy all of your other insurance policies like health insurance and life insurance with the same company. Paying the premium for a whole year will also give you a discount because it helps the automobile insurance company cut down on administrative costs. The make, model, and year of your car can lower your insurance premium. The website of the Highway Loss Data Institute has details of the cheapest cars for insurance.
Automobile Insurance is the most important aspect of owning a car. By using simple common sense when buying insurance and by paying premiums correctly you will get miles of happy driving.
Reasons to Get Automobile Insurance
If you are having money problems, driving without car insurance can seem like a good idea to save a little money. However, this is an extremely bad idea because you are only a moment away from an accident. This article is going to tell you why you should never drive without automobile insurance.
The point of car insurance, like all other insurance, is to hope you never have to use it; but, you are prepared and have it in case something was to happen. The worst thing that can happen is getting into an accident and not having insurance, so do not try and save money by cutting car insurance.
If you do not have car insurance and are wondering if you should get it; or, if you are just wondering why you should have car insurance before driving, here are some of the top reasons:
1. If you are involved in an accident and neither you nor the other driver has car insurance, and you require medical care, you will not be covered by any form of personal liability insurance. Personal liability insurance comes with auto insurance packages, and you will lose a lot of money, more so than if you bought auto insurance, trying to pay your medical bills.
2. If you cause an accident and you have no insurance you are leaving the victim in a tight spot. If an accident is your fault than your insurance company is suppose to pay the other drivers company, who in return would pay that driver. However, by not having insurance, you will probably have to pay to fix that persons car with your own money.
3. If your car was either stolen or you got in an accident and had to try and pay the cost of either fixing it or replacing it, you could be looking at no transportation for a long time. If you are trying to save money by not paying for car insurance, you are probably not going to be able to fix or replace a car anytime in the near future. This will hinder your ability to get to work or go places period which will lose you money.
4. You may think that you are not breaking any laws, but you are. If you are driving without car insurance you are driving illegally, which is against the law. Also, if you are caught without car insurance you can loose your license.
5. If you are caught driving without insurance you will be moved to the high risk category for car insurance. This will raise how much your car insurance premium will be when you go to get car insurance, which is a bad thing.
From potentially spending more money than you are saving to breaking the law, there are many reasons for you to get car insurance. There is no good reason for you to drive without automobile insurance and you should never leave the driveway without insurance. Hopefully after reading this article you understand the importance of car insurance and you will be on your way to finding a good auto insurance quote.
Automobile Insurance Terminology
Most states require that a vehicle be insured before it can be driven on public streets and highways. It is important to understand the terminology of your auto insurance policy so that you know that you have the necessary insurance coverages for your area. Take time to review your car insurance to make sure you have what you need.
Deductibles: The deductible is the portion of a covered loss that is your responsibility. The deductible applies to each covered loss. Deductibles vary by state but are typically in the amounts of $100, $250, $500 or $1,000. Usually, the higher the deductible the lower your premiums. Of course, the amount you must pay out of your pocket increase with the higher deductible.
Coverage: There can be many types of coverage included within one single auto insurance policy. Insurance coverage requirements vary by state and usually include the following types of coverage:
Liability: Liability coverage pays for accidental bodily injury and property damages to others when the insured person is legally responsible for an accident. Bodily injury damages include medical expenses, pain and suffering, lost wages and other special damages. Property damage includes damaged property and may include loss of use. Liability coverage also pays defense and court costs.
Personal Injury Protection: Personal Injury Protection is required in some states. It pays medical expenses for covered persons, regardless of fault, for medical treatment due to an auto accident.
Medical Payments: Medical Payments Coverage is available in most states. It pays medical and funeral expenses for covered persons, regardless of fault, when those expenses are related to an auto accident.
Collision: Collision coverage pays for damage to a covered vehicle caused by collision with another object or automobile.
Comprehensive: Comprehensive coverage pays for loss of or damage to a covered vehicles, not caused by a collision or accident. Examples include loss caused by fire, wind, hail, flood, vandalism, theft or hitting an animal.
Uninsured Motorist: Uninsured Motorist coverage pays damages when a covered person is injured by an auto accident caused by a driver who does not have liability insurance.
Rental Reimbursement: Rental Reimbursement pays car rentall expenses when your auto is disabled due to an accident.
Emergency Road Service: Emergency Road Service pays expenses incurred for having your auto towed as a result of a breakdown.
Who is covered under an auto policy?
Your policy usually covers you, your spouse and other relatives who live in your household and others who have permission to drive one of your covered vehicles.
Automobile Insurance in Illinois is Not 'No Fault' Insurance. But PIP Endorsement Can be Added
First Party coverage in car insurance relates to the coverages which the policy offers to the individual insured. Two main parts of automobile insurance coverage are medical payments (Med Pay) and Personal Injury Protection (PIP). The type of insurance coverage chosen will fluctuate depending on what is requested in each state. It is very necessary to learn these two very different types of insurance coverage and how it will handle any probable car insurance claims.
Both Medial Payments Coverage and Personal Injury Protection are regarded as 'first party coverage.' This suggests that it applies to the named insured or member of the insured's household, the passengers of the insured and certain others on occasion.
Understanding Medical Payments (Med Pay)
Medical Payments Coverage is compulsory in some states that do not have 'No Fault' laws in place. Med Pay Coverage will pay for acceptable medical and burial expenses due to bodily injury or death that is brought about by an automobile accident.
The limit of liability for Med Pay Coverage is stated in a auto insurance policy declaration page. There is a limit on medical payment coverage. This is the limit per qualified injury party related to the accident. Ultimately, Med Pay Coverage will allow for the injured party to receive medical treatment and not worry about the costs associated with that treatment. The most typical limits on Medical Pay are $1,000 to $5,000 per person, although a limit of $25,000 is obtainable with some companies, normally preferred companies. Certain non standard companies provide up to $1,000 per person.
Understanding Personal Injury Protection (PIP)
Which party is legally responsible for paying for bodily injury in case of an auto accident? You, or the other operator? In jurisdictions that draw from the "tort liability" system, the individual that prompted the damage is the same one that is determined to be responsible for having to pay all the damages. What about if you were, to a certain degree mostly responsible for an accident, who will pay for your bodily injury? To eliminate the course of the operator looked at as not to have caused an accident having to file a lawsuit the other driver's insurance company to cover damages, PIP policy was 'invented' to deal with that issue. States that embraced PIP policy are called the "no fault" states. Fifteen states as well as the District of Columbia require following the 'no fault' system, hence requiring automobile insurance policies to include the Personal Injury Protection or PIP,. These states are: Delaware, Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, Pennsylvania, Texas, and Utah.
Illinois is one of the states that still feature the traditional "tort liability" systems in which there are no constraints on law suits. To get paid for your bodily injury you must sue someone, and you may win based on the particulars that your adversaries were negligent and induced your bodily injury that specifically caused you loss and suffering. That is why medical payment is even more important in Illinois: You do not have to sue any one to collect it. Remember that the fact that Illinois, or any similar state, is not an 'at fault' state, it does not prevent auto insurers to endorse their policies to embrace the PIP. But with the intense competition among car insurance companies, only few give you the choice to have the PIP endorsement, at additional higher price.
Coverages and Limits: Despite the fact that PIP minimum coverage limits vary between involved states, they are similar in that the benefits usually cover most injury-related costs including: medical bills, lost wages as a result of injuries, payments for loss of services, burial expenses, and death benefits. The PIP can also cover bills associated with certain psychiatric assistance in connection with bodily injury, physical or occupational therapy and any rehab costs associated with car insurance claims.
Typically, damages such as pain and suffering, and emotional distress and inconvenience are not covered by no-fault insurance coverage. In addition, PIP does not provide any protection for any injury caused by work related auto accidents.
Finally, if you live in a 'no fault' state, there is one reason to not purchase both Med Pay and PIP insurance. There is an overlap in coverage. This is because PIP insurance provides more coverage in case there is a need to file medical claims related to a car accident, regardless of fault.
Deductibles on PIP Liability: Most people in 'no fault' states are used to the PIP policy without any deductibles, although it is not uncommon to find some companies offering PIP with deductible.
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