Saving hard earned money on car insurance is normally the first thing that most people think about. But the question is how best can you save on your auto insurance? Once you have bought a car, you would probably be raring to go, take it for a long drive or test its horsepower to the maximum. Everything looks good except there is one problem: you need to have valid insurance coverage before you can drive your pretty car around. Some of the states have made it mandatory for car owners to have certain types of car insurance. Now what next?
So here are some easy ways by which you can cut costs on your car insurance as well as get one too:
Do your homework: Yes! That’s right you need to do your homework well. The first step towards this is to take out the Yellow Pages and look for car or automobile insurance. There might be a huge list of name and maybe some of them might sound familiar to you. So first check out the familiar names; give them a call and get an insurance quote as well as detailed information of what all is included in the coverage.
Shop Online: There are several car insurance companies who have websites. You can visit the insurance company websites as well as some of the online insurance comparison websites. This way, you will be able to get a fair idea of the amount that you will have to pay as premium for the type of coverage chosen.
Different coverage – Different Quotes: try to get as many quotes as possible for different types of insurance coverage from each of the shortlisted companies. The coverage offered by one company will differ from coverage offered by another company. There will be a difference in the rates, what all it covers and the amount of premium.
Limits: You need to look for the various limits that are applicable on the particular insurance coverage that you need. You need to make a note of all the limits mentioned within each of the quotes given to you.
Adjusting coverage: One of the most important aspects is adjusting the coverage to meet your requirements. To bring down the overall cost, you can always start with a car insurance that offers you a lower coverage and then slowly as years pass, you can always add more coverage if depending on the increase in your financial standings or budget.
Higher Deductible: Buying an insurance coverage with a higher deductible will help you save money on your premiums. When you are shifting the deductible from $250 to $500 ensure that these savings should not hurt you on a long-term basis.
Good driving record: When you are applying for car insurance, you need to ensure that you have a good driving record. If you are a safe driver then you will get different types of discounts on your insurance apart from the fact that your premiums will also be lower as opposed to a driver with accidents on record. More accidents and claims means risky driver and hence the premium will be higher.
Discounts: Always ask your insurance agent for discounts. Most auto insurance companies have plans that offer discounts for example: if you take insurance for two cars from the same company then you will get a discount. You can also get a discount if you purchase a car and home insurance from the same company and this is known as multi-policy discount.
The bottom line is that you need to ask your car insurance agent for discounts and how to save money on your insurance policy.
About Me
Wednesday, February 25, 2009
Racing to Find Car Insurance
What are your options in the world of drag racing?
Are race car drivers the best drivers in the world—or the worst? How about weekend racers or those who just want to experience the open road—on a track—at 100 miles per hour.
An Unexpected Use
According to most car insurance companies, they're the worst drivers. Or at least, the crashes are the worst and that's the reason your personal car insurance policy will not provide coverage at high-performance driving schools or race tracks. Participating in "track days" with your own car is simply too risky a practice, according to most auto insurance companies, because it's rare that the accidents are minor. In fact, a high-speed crash will usually result in a total loss of the car. Driving well above the street-legal speed limit was simply not what your insurance company expected when you said you drive your car "primarily for pleasure"—and your rates are based on expected driving—not racing. Any technology installed in your vehicle to track mileage-based insurance may also take into account not only your speed but any sharp acceleration and braking, which would very quickly uncover any secret street racing you might be enjoying in your spare time!
To Race or not to Race
In the past, most car insurance policies would not cover damage that resulted from drag-racing, organized racing or a timed event. But high-performance driving schools often do not time the runs and they marketed their events as driver's training—not racing. So, those events would technically have been covered by your car insurance policy. However, in the last few years, most auto insurance companies started to exclude coverage for driving at any site that's designed for racing, whether or not the events are timed, which leaves even these safety-oriented driving school opportunities at the side of the road. Drivers who had been racing for years using their own cars are now facing a dilemma—leave their car at home or take a chance that nothing will happen. To minimize their potential losses, some drivers have even stepped down from racing an expensive sports cars to a driving a "beater."
Coverage Options
Since car insurance policies vary by state, there may be states where coverage is still available on your own policy, but it's wise to check with your company first. Many tracks offer single event coverage or a policy that will cover multiple events during a year. An agent or company that specializes in auto insurance for race events can provide you with quotes before you schedule a track day or enroll in a driving school.
Are race car drivers the best drivers in the world—or the worst? How about weekend racers or those who just want to experience the open road—on a track—at 100 miles per hour.
An Unexpected Use
According to most car insurance companies, they're the worst drivers. Or at least, the crashes are the worst and that's the reason your personal car insurance policy will not provide coverage at high-performance driving schools or race tracks. Participating in "track days" with your own car is simply too risky a practice, according to most auto insurance companies, because it's rare that the accidents are minor. In fact, a high-speed crash will usually result in a total loss of the car. Driving well above the street-legal speed limit was simply not what your insurance company expected when you said you drive your car "primarily for pleasure"—and your rates are based on expected driving—not racing. Any technology installed in your vehicle to track mileage-based insurance may also take into account not only your speed but any sharp acceleration and braking, which would very quickly uncover any secret street racing you might be enjoying in your spare time!
To Race or not to Race
In the past, most car insurance policies would not cover damage that resulted from drag-racing, organized racing or a timed event. But high-performance driving schools often do not time the runs and they marketed their events as driver's training—not racing. So, those events would technically have been covered by your car insurance policy. However, in the last few years, most auto insurance companies started to exclude coverage for driving at any site that's designed for racing, whether or not the events are timed, which leaves even these safety-oriented driving school opportunities at the side of the road. Drivers who had been racing for years using their own cars are now facing a dilemma—leave their car at home or take a chance that nothing will happen. To minimize their potential losses, some drivers have even stepped down from racing an expensive sports cars to a driving a "beater."
Coverage Options
Since car insurance policies vary by state, there may be states where coverage is still available on your own policy, but it's wise to check with your company first. Many tracks offer single event coverage or a policy that will cover multiple events during a year. An agent or company that specializes in auto insurance for race events can provide you with quotes before you schedule a track day or enroll in a driving school.
Save Money On Car Insurance
When it comes to car insurance, a little research + the right questions = money in your pocket.
Rates can differ widely from company to company, so it pays to shop around. Independent insurance agents
represent more than one insurance company, so they can compare multiple carriers and policies to find the one that's right for you.
In addition to shopping around, there are other steps you can take to lower your insurance rate:
Is your policy up to date? If you've moved, gotten married or if it has been at least three years since your last driving violation, check with your insurance company. You may be eligible for a rate reduction.
Is your coverage right for your car? Owners of older or inexpensive cars should consider dropping comprehensive and collision coverages. That can often save hundreds of dollars each year.
Know before you buy. Before you buy a new car, research what it will cost to insure. Generally, smaller cars with lower horsepower are less expensive to insure.
Do you carry excess coverage? Many auto insurers give you the option to add rental coverage to your policy, which pays for a rental car while your vehicle is being repaired. While conditions and costs vary from company to company, it may be unnecessary if you can find other transportation.
Raise your deductible. According to the Insurance Information Institute, raising your deductible from $200 to $500 could reduce your collision and comprehensive costs by 15 to 20 percent. Your agent can show you how raising your deductible can lower your premium.
Do you qualify for any discounts? Ask your independent agent whether any of the carriers he or she represents offer reduced premiums for certain car features such as anti-lock brakes.
Are your policies all "bundled" with the same company? This may not be best for you. Your independent agent is uniquely qualified to quote your policies with "best-in-class" carriers that offer specialized coverages and services. "Unbundling" your policies might save you a bundle.
Rates can differ widely from company to company, so it pays to shop around. Independent insurance agents
represent more than one insurance company, so they can compare multiple carriers and policies to find the one that's right for you.
In addition to shopping around, there are other steps you can take to lower your insurance rate:
Is your policy up to date? If you've moved, gotten married or if it has been at least three years since your last driving violation, check with your insurance company. You may be eligible for a rate reduction.
Is your coverage right for your car? Owners of older or inexpensive cars should consider dropping comprehensive and collision coverages. That can often save hundreds of dollars each year.
Know before you buy. Before you buy a new car, research what it will cost to insure. Generally, smaller cars with lower horsepower are less expensive to insure.
Do you carry excess coverage? Many auto insurers give you the option to add rental coverage to your policy, which pays for a rental car while your vehicle is being repaired. While conditions and costs vary from company to company, it may be unnecessary if you can find other transportation.
Raise your deductible. According to the Insurance Information Institute, raising your deductible from $200 to $500 could reduce your collision and comprehensive costs by 15 to 20 percent. Your agent can show you how raising your deductible can lower your premium.
Do you qualify for any discounts? Ask your independent agent whether any of the carriers he or she represents offer reduced premiums for certain car features such as anti-lock brakes.
Are your policies all "bundled" with the same company? This may not be best for you. Your independent agent is uniquely qualified to quote your policies with "best-in-class" carriers that offer specialized coverages and services. "Unbundling" your policies might save you a bundle.
Filing An Auto Insurance Claim
Accidents can happen at anytime to anyone and at any place! Hence it pays to be prepared for such an eventuality. The accident might not be your fault but who pays for the damages? This is where your car insurance will come into the picture because depending upon the type of insurance you have, it will provide cover for the damages or any losses.
When an accident happens, the last thing on your mind will be your auto insurance policy and the first thing would be your safety and that of the fellow passengers. Here are 7 steps that will help you to file your auto insurance claim in case your car meets with an accident:
First things first, you need to understand how your auto insurance coverage works before any accidents or mishaps happen. You need to carefully read through your car insurance policy and understand each and every clause, what all is covered and how and when to file a claim. If you have any questions whatsoever then call your agent.
If your car meets with an accident then first ensure that everyone is fine and check if any of the passengers require immediate medical attention. In case of emergency, first dial 911. If the injuries are minor in nature then take them to a hospital first and don’t forget to keep a copy of the medical bills and prescriptions.
If you are involved in an accident and you are not injured then try and get as much information as possible from the other driver who caused the accident or who is involved in it. The information you need to look for should include his/her name, address, phone number, and the name of his/her insurance company, and if possible their phone number.
Identify any witnesses to the accident and ask for their names as well as contact numbers in case an eye-witness report of the accident is required.
Notify the law enforcement agency in the area and file an accident report. If you are unable to reach a law enforcement agency then you can collect an accident report from the sheriff's office or the local Department of Motor Vehicles office.
You need to then notify your car insurance company regarding the accident and try to do it as soon as possible. Your insurance carrier will send across an insurance adjuster who will then review your accident report for determining the person at fault or the driver who caused the accident. If the accident is determined as not your fault then you can choose to have the driver’s insurance company or even your insurance company to take responsibility of the repair. If you claim repair costs from the driver’s car insurance company then it will be beneficial for you because there will be no claim whatsoever on your policy and you will not be required to pay any deductible.
Last but not the least, never let go of your insurers early i.e., never relieve your car insurance company of their responsibility till the time the cost of damages have been settled according to your satisfaction. The different settlement factors that you can consider include:
Bodily injuries: You will be entitled to monetary settlement for any injury caused by the other driver at fault.
Damages: Your insurance company will assess the damage and then make the payout based on it. If you feel that their assessment is incomplete or not to your satisfaction then you can always obtain another assessment at a recognized/reputed auto body shop.
When an accident happens, the last thing on your mind will be your auto insurance policy and the first thing would be your safety and that of the fellow passengers. Here are 7 steps that will help you to file your auto insurance claim in case your car meets with an accident:
First things first, you need to understand how your auto insurance coverage works before any accidents or mishaps happen. You need to carefully read through your car insurance policy and understand each and every clause, what all is covered and how and when to file a claim. If you have any questions whatsoever then call your agent.
If your car meets with an accident then first ensure that everyone is fine and check if any of the passengers require immediate medical attention. In case of emergency, first dial 911. If the injuries are minor in nature then take them to a hospital first and don’t forget to keep a copy of the medical bills and prescriptions.
If you are involved in an accident and you are not injured then try and get as much information as possible from the other driver who caused the accident or who is involved in it. The information you need to look for should include his/her name, address, phone number, and the name of his/her insurance company, and if possible their phone number.
Identify any witnesses to the accident and ask for their names as well as contact numbers in case an eye-witness report of the accident is required.
Notify the law enforcement agency in the area and file an accident report. If you are unable to reach a law enforcement agency then you can collect an accident report from the sheriff's office or the local Department of Motor Vehicles office.
You need to then notify your car insurance company regarding the accident and try to do it as soon as possible. Your insurance carrier will send across an insurance adjuster who will then review your accident report for determining the person at fault or the driver who caused the accident. If the accident is determined as not your fault then you can choose to have the driver’s insurance company or even your insurance company to take responsibility of the repair. If you claim repair costs from the driver’s car insurance company then it will be beneficial for you because there will be no claim whatsoever on your policy and you will not be required to pay any deductible.
Last but not the least, never let go of your insurers early i.e., never relieve your car insurance company of their responsibility till the time the cost of damages have been settled according to your satisfaction. The different settlement factors that you can consider include:
Bodily injuries: You will be entitled to monetary settlement for any injury caused by the other driver at fault.
Damages: Your insurance company will assess the damage and then make the payout based on it. If you feel that their assessment is incomplete or not to your satisfaction then you can always obtain another assessment at a recognized/reputed auto body shop.
Is Car Insurance Necessary For Me?
How important is it for you to carry car insurance? Most of you might not know the level of importance and one of the main reasons being that you are not aware of the types of auto insurance available. Car insurance is not a necessity but at the same time it is a protective cover that has several benefits like providing coverage against damages caused to your car or even to you and your passengers. There is insurance coverage for almost everything from accidents to lawsuits and from theft to fire.
Some of the states have their own rules and have made it mandatory to have car insurance. One such state is that of Florida, which requires you to follow the minimum requirements. The minimum requirements of car insurance in Florida include property damage for $10,000 and a personal injury protection for $10,000. The property damage insurance policy will cover the damages caused by you or your car to another person's car. On the other hand the personal injury protection also known as PIP will provide insurance coverage to the tune of 80% of all medical expenses as well as 60% of loss of wages and up to a maximum of $5,000 death benefit to you, your passengers, your relatives and those who are mentioned in your policy minus the deductible. This is a type of insurance coverage that will be able to provide protection in a situation where damage has been caused to other vehicles.
Auto insurance can be compared to any other financial tool because it offers the following:
- Your policy will safeguard your investment made on your car by covering any damages caused.
- Car insurance will pay for all your medical bills after an accident takes place. Some policies will cover your medical bills while others will cover medical bills for third party if you have caused the accident.
- It will act as a shield by covering you against any costly damages due to a severe accident and will simultaneously cover any related lawsuit against you by the other party involved.
- An insurance policy can guard most of the valuable assets like home, bond investments, and retirement funds.
- It will provide protection to you from under-insured or uninsured motorists.
- The policy will pay for any type of repair work for damages due to vandalism, theft, and even natural disasters like hail storms, fire etc.
Above all, with a car insurance policy, you will always experience a peace of mind and will be relaxed.
The most important thing that you need to consider while in the market is the type of policy you need. There are different types of car insurance covers available and you can choose the one that you feel will best support your need. One of the most common occurrences is accidents that can include:
- Collision between two cars
- Your car runs into a tree
- Your car runs into someone’s house
- Your car is hit by an under-insured or uninsured driver
- Your car is damaged by irate mob
- Your car is damaged by natural disasters like hurricanes, fire, storms, tornadoes etc.
Depending on the region or state or county where you stay and if it is prone to natural disaster, you can single out the insurance policy that you will need. The next step will be to identify whether you need cover for your self or for third party? Depending on that you can choose your policy. It is not necessary to take multiple policies; you can always take one policy and add some specific riders to cover certain incidents or accidents. But the bottom line is accidents happen without warning and you need to be prepared mentally, physically and financially!
Some of the states have their own rules and have made it mandatory to have car insurance. One such state is that of Florida, which requires you to follow the minimum requirements. The minimum requirements of car insurance in Florida include property damage for $10,000 and a personal injury protection for $10,000. The property damage insurance policy will cover the damages caused by you or your car to another person's car. On the other hand the personal injury protection also known as PIP will provide insurance coverage to the tune of 80% of all medical expenses as well as 60% of loss of wages and up to a maximum of $5,000 death benefit to you, your passengers, your relatives and those who are mentioned in your policy minus the deductible. This is a type of insurance coverage that will be able to provide protection in a situation where damage has been caused to other vehicles.
Auto insurance can be compared to any other financial tool because it offers the following:
- Your policy will safeguard your investment made on your car by covering any damages caused.
- Car insurance will pay for all your medical bills after an accident takes place. Some policies will cover your medical bills while others will cover medical bills for third party if you have caused the accident.
- It will act as a shield by covering you against any costly damages due to a severe accident and will simultaneously cover any related lawsuit against you by the other party involved.
- An insurance policy can guard most of the valuable assets like home, bond investments, and retirement funds.
- It will provide protection to you from under-insured or uninsured motorists.
- The policy will pay for any type of repair work for damages due to vandalism, theft, and even natural disasters like hail storms, fire etc.
Above all, with a car insurance policy, you will always experience a peace of mind and will be relaxed.
The most important thing that you need to consider while in the market is the type of policy you need. There are different types of car insurance covers available and you can choose the one that you feel will best support your need. One of the most common occurrences is accidents that can include:
- Collision between two cars
- Your car runs into a tree
- Your car runs into someone’s house
- Your car is hit by an under-insured or uninsured driver
- Your car is damaged by irate mob
- Your car is damaged by natural disasters like hurricanes, fire, storms, tornadoes etc.
Depending on the region or state or county where you stay and if it is prone to natural disaster, you can single out the insurance policy that you will need. The next step will be to identify whether you need cover for your self or for third party? Depending on that you can choose your policy. It is not necessary to take multiple policies; you can always take one policy and add some specific riders to cover certain incidents or accidents. But the bottom line is accidents happen without warning and you need to be prepared mentally, physically and financially!
About Budget Car Insurance
With rising costs and job cuts, people are looking for ways to save on monthly bills. One payment you might be able to lower is your car insurance premium. But before you start shopping for a new insurance provider, read on to find out which corners you can cut and which you should leave as they are.
Function
Your auto insurance policy will compensate for damages made to someone else's property and any bodily injuries, provided the insured driver caused them. Certain insurance policies cover fixing the insured driver's vehicle, as well. This type of coverage includes damages caused by the driver, an uninsured or underinsured driver or other factors such as a fallen tree or fire. Before looking for savings, consider what coverage is necessary for you and your family.
Types
The most complete type of car insurance is Comprehensive insurance. It is also the most expensive. If you are financing your car, this type is necessary. You might be able to lower your rate by increasing your deductible. Fire and Theft is a step down from Comprehensive. You can lower your premium on this type by purchasing a lower-profile model vehicle, which is less likely to be stolen. Third-Party, which only covers damage inflicted on someone else by the insured, is the most inexpensive.
Features
Make every effort to remain free from speeding tickets or other moving violations. By keeping your driving record clean, you will be entitled to a lower premium. If you previously had points on your license, but it has been a few years, contact your current insurance agent to see if you qualify for a lower payment. If you have cleaned up your credit rating in recent years, this can also lower your premium. Before you shop around, see what your existing provider can offer you.
Considerations
If you are in the market for a new car, make smart choices to lower your insurance premium. The less expensive the car, the better deal you will get on insurance. Domestic vehicles, cars with four or six cylinders, and four-door cars or minivans are your best bets for lower budget insurance. If you are adding an additional car to your home, ask about a multi-vehicle discount. Installing an anti-theft device and garaging your car will help, too.
Warning
A lower insurance rate is attractive, and there are many legitimate ways to save. However, there are caveats to consider when shopping budget insurance companies. It is highly likely that these policies will not provide extras, such as rental car provisions, roadside assistance or towing. There might be hidden fees for services such as phone support or paperwork costs. The great low rate you are quoted might have a short lifespan, with a significant rate increase once your initial 6 months has passed. Ask lots of questions and always read the fine print.
Function
Your auto insurance policy will compensate for damages made to someone else's property and any bodily injuries, provided the insured driver caused them. Certain insurance policies cover fixing the insured driver's vehicle, as well. This type of coverage includes damages caused by the driver, an uninsured or underinsured driver or other factors such as a fallen tree or fire. Before looking for savings, consider what coverage is necessary for you and your family.
Types
The most complete type of car insurance is Comprehensive insurance. It is also the most expensive. If you are financing your car, this type is necessary. You might be able to lower your rate by increasing your deductible. Fire and Theft is a step down from Comprehensive. You can lower your premium on this type by purchasing a lower-profile model vehicle, which is less likely to be stolen. Third-Party, which only covers damage inflicted on someone else by the insured, is the most inexpensive.
Features
Make every effort to remain free from speeding tickets or other moving violations. By keeping your driving record clean, you will be entitled to a lower premium. If you previously had points on your license, but it has been a few years, contact your current insurance agent to see if you qualify for a lower payment. If you have cleaned up your credit rating in recent years, this can also lower your premium. Before you shop around, see what your existing provider can offer you.
Considerations
If you are in the market for a new car, make smart choices to lower your insurance premium. The less expensive the car, the better deal you will get on insurance. Domestic vehicles, cars with four or six cylinders, and four-door cars or minivans are your best bets for lower budget insurance. If you are adding an additional car to your home, ask about a multi-vehicle discount. Installing an anti-theft device and garaging your car will help, too.
Warning
A lower insurance rate is attractive, and there are many legitimate ways to save. However, there are caveats to consider when shopping budget insurance companies. It is highly likely that these policies will not provide extras, such as rental car provisions, roadside assistance or towing. There might be hidden fees for services such as phone support or paperwork costs. The great low rate you are quoted might have a short lifespan, with a significant rate increase once your initial 6 months has passed. Ask lots of questions and always read the fine print.
Types of Car Insurance Discounts
One of the important aspects that you need to remember while purchasing car insurance is the discounts available. Not many people or car owners are aware of the different types of discounts and hence they are unable to save money on their auto insurance. The best person to inform you regarding the discounts available is the agent but you should not rely completely on them. You can take advice from friends and colleagues if they have insurance coverage for their car. Apart from that, you can always call the insurance companies directly and check with them.
These days most auto insurance companies provide discounts on insurance policies and this can help you to save quite a sum on your policy too. Understanding the various types of discounts and how they work or affect the annual premiums is something that you need to be aware of. So here are some of the most common and popular discounts offered by various car insurance companies in the US:
Safe Drivers
Safe drivers can get quite a discount because they pose a lesser risk to the insurance company. If you have a clean record with no claims or accidents then you can get a good discount. On the other hand if you already have a record of accidents or any previous claims then you will end up paying a higher premium. Here are some examples of types of safe driver discounts:
Three Years: If you have been driving safe and don’t have any accident on the record for the last three years and there are no moving violations too then you will qualify for a special auto insurance discount. The amount of discount varies from one company to another. There is one clause: In the three year period that is reviewed, you should have had standard liability insurance. But if you are a new driver and received your license within the last 3 years then also you will be eligible for this discount.
Five Years: There is a special discount for those drivers who have not had any traffic violations and accidents in almost 5 years. The eligibility criterion is the same as that of three years but the discount amount is higher.
Defensive Driver: If your age is 55 or even older and if you are the primary driver of the car that you want to insure then you can get a good discount on your annual premiums by simply getting an approved defensive-driving class. This class is not available in all the state and the rules can vary from one state to another.
Safe Cars
How safe your car is will also determine the amount of discount you can get on your car insurance premiums. Car safety is basically determined by the type and amount of safety devices installed in your car and how effective they are. Here are some of the requirements for discounts:
Anti-Lock Brakes: If your car has been factory-fitted with ABS (all-wheel, anti-lock braking system) then you can get a discount on your premiums.
Passive Restraint Systems: If your car is equipped with standard safety equipments like airbags and motorized seatbelts then you are eligible for this kind of a discount.
Anti-Theft Devices: This type of discount is applicable in some of the states and to be eligible your car need to have approved anti-theft devices.
Multiple Policy Discount
Multiple policy discounts is fairly common these days and you can avail of this if:
You have taken more than one car insurance from the same company
You have taken a car and home or any other insurance from the same company
Multi-policy discounts can lower your premiums by as much as 10%.
These days most auto insurance companies provide discounts on insurance policies and this can help you to save quite a sum on your policy too. Understanding the various types of discounts and how they work or affect the annual premiums is something that you need to be aware of. So here are some of the most common and popular discounts offered by various car insurance companies in the US:
Safe Drivers
Safe drivers can get quite a discount because they pose a lesser risk to the insurance company. If you have a clean record with no claims or accidents then you can get a good discount. On the other hand if you already have a record of accidents or any previous claims then you will end up paying a higher premium. Here are some examples of types of safe driver discounts:
Three Years: If you have been driving safe and don’t have any accident on the record for the last three years and there are no moving violations too then you will qualify for a special auto insurance discount. The amount of discount varies from one company to another. There is one clause: In the three year period that is reviewed, you should have had standard liability insurance. But if you are a new driver and received your license within the last 3 years then also you will be eligible for this discount.
Five Years: There is a special discount for those drivers who have not had any traffic violations and accidents in almost 5 years. The eligibility criterion is the same as that of three years but the discount amount is higher.
Defensive Driver: If your age is 55 or even older and if you are the primary driver of the car that you want to insure then you can get a good discount on your annual premiums by simply getting an approved defensive-driving class. This class is not available in all the state and the rules can vary from one state to another.
Safe Cars
How safe your car is will also determine the amount of discount you can get on your car insurance premiums. Car safety is basically determined by the type and amount of safety devices installed in your car and how effective they are. Here are some of the requirements for discounts:
Anti-Lock Brakes: If your car has been factory-fitted with ABS (all-wheel, anti-lock braking system) then you can get a discount on your premiums.
Passive Restraint Systems: If your car is equipped with standard safety equipments like airbags and motorized seatbelts then you are eligible for this kind of a discount.
Anti-Theft Devices: This type of discount is applicable in some of the states and to be eligible your car need to have approved anti-theft devices.
Multiple Policy Discount
Multiple policy discounts is fairly common these days and you can avail of this if:
You have taken more than one car insurance from the same company
You have taken a car and home or any other insurance from the same company
Multi-policy discounts can lower your premiums by as much as 10%.
What Determines Your Car Insurance Rates?
There are several factors that are put together by insurance gurus to decide what your premium will be.
1. The value of your vehicle (the higher the value, the higher the car insurance premium)
2. Your driving record
3. Your age
4. Your marital status (getting married did not make me a better driver! How about you?)
5. Where you live
6. Your sex
7. The make and model of your car (some makes are stolen more than others)
If you live in the city but own property elsewhere you should check into using that address to register your vehicle. If the property is outside the city, the premiums for that area will most likely be lower.
If your under the age of 25 (especially if your male) perhaps you can register and insure your car under your parents name, with you as a part time driver.
If you are the parent of a teenage driver you can restrict their driving privileges so they will be listed as an occasional driver. This may save you a few dollars.
You can always save some money by choosing the higher deductible on your insurance. You can ask an insurance company what the policy quote is with both the lower and the higher deductible. How much will the higher deductible save you? It may be worth it to choose that for your policy.
If your buying a car you may want to think about looking at one with a smaller engine. A vehicle with a larger engine costs more to insure.
The value of the vehicle will also make a difference in your insurance premium.
Have you had any auto accidents? If you've had one or more you could be considered a high risk to the insurance companies. You can take a defensive driving course to help get a lower premium. Taking this course could get you a discount on your car policy.
1. The value of your vehicle (the higher the value, the higher the car insurance premium)
2. Your driving record
3. Your age
4. Your marital status (getting married did not make me a better driver! How about you?)
5. Where you live
6. Your sex
7. The make and model of your car (some makes are stolen more than others)
If you live in the city but own property elsewhere you should check into using that address to register your vehicle. If the property is outside the city, the premiums for that area will most likely be lower.
If your under the age of 25 (especially if your male) perhaps you can register and insure your car under your parents name, with you as a part time driver.
If you are the parent of a teenage driver you can restrict their driving privileges so they will be listed as an occasional driver. This may save you a few dollars.
You can always save some money by choosing the higher deductible on your insurance. You can ask an insurance company what the policy quote is with both the lower and the higher deductible. How much will the higher deductible save you? It may be worth it to choose that for your policy.
If your buying a car you may want to think about looking at one with a smaller engine. A vehicle with a larger engine costs more to insure.
The value of the vehicle will also make a difference in your insurance premium.
Have you had any auto accidents? If you've had one or more you could be considered a high risk to the insurance companies. You can take a defensive driving course to help get a lower premium. Taking this course could get you a discount on your car policy.
WHAT to LOOK for in Auto Insurance Companies
There are tons of auto insurance companies to choose from out there, so how do we choose the right one? If we decide on a certain company, how do we make sure it’s going to be a good choice?
There a quite a few things one should look for when deciding whether or not to choose a certain company. One shouldn’t solely make a choice on one single factor, but a combination of multiple important factors, and if you’d like to, you can add extra consideration on whatever you feel is most important such as price, quality, coverage or stability.
The following is a summary of things one should look for in an insurance company in order to make an educated choice and ensure your satisfaction and security.
* One very important factor that we all automatically take into consideration is price. With good reason, we all want to pay as little as possible for the coverage we need. Instead of determining whether a carrier’s rates are competitive by comparing them to your current or prior rates, one should compare the rates of multiple companies. Many times, consumers obtain two to three quotes from different carriers and believe the lowest one of the three to be competitive. What one should realize is that the rates of auto insurance companies can widely vary for different drivers. If one company is cheapest for one driver, it’s not automatically going to be the cheapest for all drivers. It is recommended to compare the rate quotes of at least five companies in order to ensure a competitive rate. Among the simplest way of completing an auto insurance quote comparison is to visit OnlineAutoInsurance.com. By completing one simple form, you can compare the rates of multiple carriers instantly and quickly instead of contacting companies individually.
* Assessing your coverage needs can be based on what you need and what you can afford. If you have a vehicle with very low value, you may consider waiving comprehensive and collision coverage which is what covers your vehicle in case of damage or theft. Additionally, you can experiment with high deductibles to see price differences. Get quotes for all different types of coverage. Don’t be afraid to quote a certain coverage just out of curiosity and remember that quotes can be obtained online totally free with no obligations at OnlineAutoInsurance.com. You may be surprised to find out that some valuable coverage can be quite inexpensive.
* If a company is offering the coverage you need for a reasonable price, you can begin to look a bit further into other factors such as service. Customer service is a very important factor that should definitely be taken into consideration when choosing the right carrier. If one bases their choice only on price, it is pointless to pay for insurance if you’re not going to receive the service you deserve when it comes time. A good way of determining the service factor is to ask someone that you know has the company. Ask them if they’re satisfied with the carrier and if they recommend the company regardless of price. Also you can contact the customer service number and ask a simple question such as “Do you offer discounts for married drivers?” just to see what hold times you can expect and to see the friendliness of the representatives.
* The stability of a company is a very important factor. If you find a great price from a company having great customer service and they go out of bankrupt before they pay your claim, you’re on the same boat as not having insurance at all. The stability of a company is called financial strength. There are independent agencies that issue letter grades to companies based on their financial strength such as AMBest.com. Some companies are proud of their grade and display it as they provide you with rates. OnlineAutoInsurance.com also gives you company summaries with the AMBest’s the financial strength rating.
* Claims assistance is as important as any other factor. It’s the main reason you insure your vehicles; to help you get through a loss or liability claim. Making sure companies do provide good claims assistance can also be determined through anyone you know who’s had a claim with the company in question. You may also contact you state’s Department of Insurance to get a claims complain history. Obviously, if a company has tons of complaints, you’re likely to end up complaining upon a claim; Vise versa, low complaint records indicate satisfaction from large percentages which likely will be you as well.
There a quite a few things one should look for when deciding whether or not to choose a certain company. One shouldn’t solely make a choice on one single factor, but a combination of multiple important factors, and if you’d like to, you can add extra consideration on whatever you feel is most important such as price, quality, coverage or stability.
The following is a summary of things one should look for in an insurance company in order to make an educated choice and ensure your satisfaction and security.
* One very important factor that we all automatically take into consideration is price. With good reason, we all want to pay as little as possible for the coverage we need. Instead of determining whether a carrier’s rates are competitive by comparing them to your current or prior rates, one should compare the rates of multiple companies. Many times, consumers obtain two to three quotes from different carriers and believe the lowest one of the three to be competitive. What one should realize is that the rates of auto insurance companies can widely vary for different drivers. If one company is cheapest for one driver, it’s not automatically going to be the cheapest for all drivers. It is recommended to compare the rate quotes of at least five companies in order to ensure a competitive rate. Among the simplest way of completing an auto insurance quote comparison is to visit OnlineAutoInsurance.com. By completing one simple form, you can compare the rates of multiple carriers instantly and quickly instead of contacting companies individually.
* Assessing your coverage needs can be based on what you need and what you can afford. If you have a vehicle with very low value, you may consider waiving comprehensive and collision coverage which is what covers your vehicle in case of damage or theft. Additionally, you can experiment with high deductibles to see price differences. Get quotes for all different types of coverage. Don’t be afraid to quote a certain coverage just out of curiosity and remember that quotes can be obtained online totally free with no obligations at OnlineAutoInsurance.com. You may be surprised to find out that some valuable coverage can be quite inexpensive.
* If a company is offering the coverage you need for a reasonable price, you can begin to look a bit further into other factors such as service. Customer service is a very important factor that should definitely be taken into consideration when choosing the right carrier. If one bases their choice only on price, it is pointless to pay for insurance if you’re not going to receive the service you deserve when it comes time. A good way of determining the service factor is to ask someone that you know has the company. Ask them if they’re satisfied with the carrier and if they recommend the company regardless of price. Also you can contact the customer service number and ask a simple question such as “Do you offer discounts for married drivers?” just to see what hold times you can expect and to see the friendliness of the representatives.
* The stability of a company is a very important factor. If you find a great price from a company having great customer service and they go out of bankrupt before they pay your claim, you’re on the same boat as not having insurance at all. The stability of a company is called financial strength. There are independent agencies that issue letter grades to companies based on their financial strength such as AMBest.com. Some companies are proud of their grade and display it as they provide you with rates. OnlineAutoInsurance.com also gives you company summaries with the AMBest’s the financial strength rating.
* Claims assistance is as important as any other factor. It’s the main reason you insure your vehicles; to help you get through a loss or liability claim. Making sure companies do provide good claims assistance can also be determined through anyone you know who’s had a claim with the company in question. You may also contact you state’s Department of Insurance to get a claims complain history. Obviously, if a company has tons of complaints, you’re likely to end up complaining upon a claim; Vise versa, low complaint records indicate satisfaction from large percentages which likely will be you as well.
Save On Your Car Insurance with an Insurance Friendly Vehicle
Women often feel vulnerable when purchasing a car because they sometimes think they will be taken advantage of in the car buying process. As a woman, if you feel like you can't haggle a price or just don't like to, you can at least purchase a car that will give you a low car insurance rate. And, because of the characteristics of insurance friendly vehicles, they are often the less expensive cars to buy anyhow. So, if you are a woman looking into getting a car insurance quote for a new vehicle, make sure to consider first what car you want to buy.
The cost of a car insurance quote should be at the top of the list when a woman is considering the total price of purchasing a new vehicle. Just because she buys a smaller, cheaper car does not insure a cheaper insurance rate. And, although car insurance for women tends to be cheaper than for a man, a woman's driving history is another of many factors that are considered when determining a car insurance rate. Characteristics of the vehicle being purchased plays a large role in insurance costs.
Below is a list of features or types of vehicles to avoid to get the best stretch out of your insurance buck.
For a Cheaper Car Insurance Quote Stay Away From:
# Vehicles With a Lot of Horsepower
# Sports Cars
# High Performance Vehicles
# Luxury Vehicles
# Vehicles With Added Technology Features
# Large SUV's
# Very Small Vehicles
# Vehicles With a High Theft History
Station wagons and vans are the best choices---not to big to cause large amounts of damage to the other car but big enough to cause less damage to their own passengers and, in addition, both have lower repair costs and less theft history.
The cost of a car insurance quote should be at the top of the list when a woman is considering the total price of purchasing a new vehicle. Just because she buys a smaller, cheaper car does not insure a cheaper insurance rate. And, although car insurance for women tends to be cheaper than for a man, a woman's driving history is another of many factors that are considered when determining a car insurance rate. Characteristics of the vehicle being purchased plays a large role in insurance costs.
Below is a list of features or types of vehicles to avoid to get the best stretch out of your insurance buck.
For a Cheaper Car Insurance Quote Stay Away From:
# Vehicles With a Lot of Horsepower
# Sports Cars
# High Performance Vehicles
# Luxury Vehicles
# Vehicles With Added Technology Features
# Large SUV's
# Very Small Vehicles
# Vehicles With a High Theft History
Station wagons and vans are the best choices---not to big to cause large amounts of damage to the other car but big enough to cause less damage to their own passengers and, in addition, both have lower repair costs and less theft history.
Easy Auto Insurance Policy
Looking for an easy car insurance policy online?
Purchasing your policy online is quite simple and does not require any technical knowledge whatsoever. There’s nothing to it other than following a few effortless steps. If you can answer a few simple questions, you are on your way to a smooth car insurance policy transaction online.
Begin by getting quotes the easiest way, which is online. Since the Internet allow us to get a bunch auto insurance quotes online at the same time (rather than individually) it is the recommended method. Easier than taking candy from a baby, you can compare quotations to choose the company which will suit your needs. When obtaining your fast quotes, consider the coverage that you desire. Make sure it’s a protection limit which you will be satisfied with in case of physical damage to your vehicle. Be sure to educate yourself on who is covered in a policy and the different types of protection plans including liability, comprehensive and collision coverage.
Quickly and easily find auto insurance policies with the help of the Internet;
From start to finish, policies can be obtained quickly in about 15 minutes regardless of your skills. One can make shopping for auto insurance easy with the help the Internet since the quotation process is just about 8 minutes long and may vary by adding another car or co operators and drivers. After the quoting process, the next requirements are to provide more details for the verification process. This includes the review of driving records and verifying accuracy of the exact vehicle model.
All the high tech stuff is done automatically which only requires users to complete an easy form to print out a speedy policy declarations which may be used as proof of coverage. Before you know it, you will be done quicker than you expected. Anyone which needs more information can visit OnlineAutoInsurance.com’s site resources which provides a learning center with more information to make your experience go smoothly and fast. For many, going online is faster that going through a broker or direct. Since the World Wide Web lets you work at a quick pace. Pretty soon, most Americans will be going online as a primary method of insuring automobiles.
Easier way to find the best car insurance policy online;
A necessary step to finding easy to do auto insurance online is quickly and easily comparing premiums because the prices of each insurer may differ widely for different drivers. For example, someone under 25 may have a different company offering the lowest rates compared to teen drivers looking for reasonable priced policies. Consider the different terms offered, usually 3 or 6 month terms which can be paid in full or monthly. It is recommended to read the guide for so that you don’t end up with complaints.
Once you complete the rate comparison from multiple companies, make your choice on the different indicators of a good policy such as premium price, quality, underwriting guidelines and what is being offered. Review their procedures and provide whatever online information they may need. Keep in mind that you have access to lower rates by adding multiple cars on one policy. Even if the registration does not match the policyholder’s name, it may not be a problem; however, to be sure, read the underwriting details. Also, prior to committing to a new vehicle purchase, make sure to buy a policy friendly car (one cheap to insure).
If you’re currently insured, you may want to check your company’s cancellation procedures and rules. Many people think that they’re stuck with their current carrier until the term has ended; however, it is not the case and penalties for early cancellation do not include paying for the rest of the term’s premium. Worst case is paying earned premiums and a cancellation fee which usually does not exceed $50. Weigh out your savings vs. any fees after cancelling your policy. Ask your customer service to tell you how and details since you may want submit a request to cancel if it is beneficial to you.
Purchasing your policy online is quite simple and does not require any technical knowledge whatsoever. There’s nothing to it other than following a few effortless steps. If you can answer a few simple questions, you are on your way to a smooth car insurance policy transaction online.
Begin by getting quotes the easiest way, which is online. Since the Internet allow us to get a bunch auto insurance quotes online at the same time (rather than individually) it is the recommended method. Easier than taking candy from a baby, you can compare quotations to choose the company which will suit your needs. When obtaining your fast quotes, consider the coverage that you desire. Make sure it’s a protection limit which you will be satisfied with in case of physical damage to your vehicle. Be sure to educate yourself on who is covered in a policy and the different types of protection plans including liability, comprehensive and collision coverage.
Quickly and easily find auto insurance policies with the help of the Internet;
From start to finish, policies can be obtained quickly in about 15 minutes regardless of your skills. One can make shopping for auto insurance easy with the help the Internet since the quotation process is just about 8 minutes long and may vary by adding another car or co operators and drivers. After the quoting process, the next requirements are to provide more details for the verification process. This includes the review of driving records and verifying accuracy of the exact vehicle model.
All the high tech stuff is done automatically which only requires users to complete an easy form to print out a speedy policy declarations which may be used as proof of coverage. Before you know it, you will be done quicker than you expected. Anyone which needs more information can visit OnlineAutoInsurance.com’s site resources which provides a learning center with more information to make your experience go smoothly and fast. For many, going online is faster that going through a broker or direct. Since the World Wide Web lets you work at a quick pace. Pretty soon, most Americans will be going online as a primary method of insuring automobiles.
Easier way to find the best car insurance policy online;
A necessary step to finding easy to do auto insurance online is quickly and easily comparing premiums because the prices of each insurer may differ widely for different drivers. For example, someone under 25 may have a different company offering the lowest rates compared to teen drivers looking for reasonable priced policies. Consider the different terms offered, usually 3 or 6 month terms which can be paid in full or monthly. It is recommended to read the guide for so that you don’t end up with complaints.
Once you complete the rate comparison from multiple companies, make your choice on the different indicators of a good policy such as premium price, quality, underwriting guidelines and what is being offered. Review their procedures and provide whatever online information they may need. Keep in mind that you have access to lower rates by adding multiple cars on one policy. Even if the registration does not match the policyholder’s name, it may not be a problem; however, to be sure, read the underwriting details. Also, prior to committing to a new vehicle purchase, make sure to buy a policy friendly car (one cheap to insure).
If you’re currently insured, you may want to check your company’s cancellation procedures and rules. Many people think that they’re stuck with their current carrier until the term has ended; however, it is not the case and penalties for early cancellation do not include paying for the rest of the term’s premium. Worst case is paying earned premiums and a cancellation fee which usually does not exceed $50. Weigh out your savings vs. any fees after cancelling your policy. Ask your customer service to tell you how and details since you may want submit a request to cancel if it is beneficial to you.
Steps to Filing Your Auto Insurance Claim
1. Evaluate whether or not you should file a claim: Did you know that just when you call your insurance company with a question about possibly filing a claim it is often recorded on your insurance record? It is important to keep your insurance record clean and one way is deciding whether or not you should file a claim. It doesn’t matter if the accident is your fault or not, you should ask yourself first if you can pay for the damage. Simply put, if you can pay for it yourself without financial hardship, don’t file the claim.
2. Fill out your What to do After an Auto Accident Worksheet: This worksheet, which when you click on the title is provided for print-out, will help you keep track of the information you will need to file your auto insurance claim. It is important to get every detail of the accident documented and to try to find witnesses that would be willing to talk to your insurance company to back-up your story.
3. File the claim ASAP: You will want to file the claim as soon as possible with your insurance company. Even if it is not your fault, your insurance company will handle the claim process as your advocate.
4. Prepare for a possible call from the other insurance company: If there is a dispute between the two parties in the accident, you may get a call from the other driver’s insurance company asking for your version of what happened at the accident scene. If this happens make sure you document everything you say and the name of the customer service agent you talked too.
5. Finally, getting your car fixed: If you had body damage to your vehicle this is when you will finally get it fixed. After your claim is approved, you will likely get a call from your insurance company about sending an insurance adjuster out to assess the damage or asking you to send your car to a pre-approved shop to get it fixed
2. Fill out your What to do After an Auto Accident Worksheet: This worksheet, which when you click on the title is provided for print-out, will help you keep track of the information you will need to file your auto insurance claim. It is important to get every detail of the accident documented and to try to find witnesses that would be willing to talk to your insurance company to back-up your story.
3. File the claim ASAP: You will want to file the claim as soon as possible with your insurance company. Even if it is not your fault, your insurance company will handle the claim process as your advocate.
4. Prepare for a possible call from the other insurance company: If there is a dispute between the two parties in the accident, you may get a call from the other driver’s insurance company asking for your version of what happened at the accident scene. If this happens make sure you document everything you say and the name of the customer service agent you talked too.
5. Finally, getting your car fixed: If you had body damage to your vehicle this is when you will finally get it fixed. After your claim is approved, you will likely get a call from your insurance company about sending an insurance adjuster out to assess the damage or asking you to send your car to a pre-approved shop to get it fixed
How to Compare Auto Insurance quotes online
Comparing online car insurance quotes is easier than most people think. An estimated 30% prefer to talk to an agent, buy why? Most likely because they still need to learn how to do it online. It’s as easy as any other method out there and it’s actually faster.
Here’s how to compare auto insurance quotes online:
1. First you need to make sure you have available the required information for your quotes. No personal information is required; however, you do need to provide important info which will be used for the purpose of the rate quotation such as:
* Driver data such as dates of birth, marital status, driving record history about tickets or accidents within the past 7 years.
* Vehicle data such as garaging zip code, year - make - model and sub model (you may choose to enter the VIN number for automatic model matching)
* Coverage desired - there are many types of coverage available so be sure to know about them. For more information, visit the learning center to read about the available coverage options.
2. Once you have the required data and have made a decision about the type of protection desired, start the car insurance quote comparison online to receive instant rates by entering your zip code and hitting the “GO” button.
3. Answer the basic questionnaire about the cars and drivers on the policy which will only take minutes.
4. Once the form is completed it is time to compare auto insurance from the variety of companies. Keep in mind other factors than just price by looking a bit further into the company history. Ask a friend if they or anyone they know has any feedback on the carrier.
It really is simple. No computer skills are required. It’s just answering questions online instead of an agent. Don’t worry, if you have questions about the process, you may call the phone number included at the top right once you begin the comparison process. The best part is that you may choose to purchase your policy online or by telephone once an insurer is chosen.
Here’s how to compare auto insurance quotes online:
1. First you need to make sure you have available the required information for your quotes. No personal information is required; however, you do need to provide important info which will be used for the purpose of the rate quotation such as:
* Driver data such as dates of birth, marital status, driving record history about tickets or accidents within the past 7 years.
* Vehicle data such as garaging zip code, year - make - model and sub model (you may choose to enter the VIN number for automatic model matching)
* Coverage desired - there are many types of coverage available so be sure to know about them. For more information, visit the learning center to read about the available coverage options.
2. Once you have the required data and have made a decision about the type of protection desired, start the car insurance quote comparison online to receive instant rates by entering your zip code and hitting the “GO” button.
3. Answer the basic questionnaire about the cars and drivers on the policy which will only take minutes.
4. Once the form is completed it is time to compare auto insurance from the variety of companies. Keep in mind other factors than just price by looking a bit further into the company history. Ask a friend if they or anyone they know has any feedback on the carrier.
It really is simple. No computer skills are required. It’s just answering questions online instead of an agent. Don’t worry, if you have questions about the process, you may call the phone number included at the top right once you begin the comparison process. The best part is that you may choose to purchase your policy online or by telephone once an insurer is chosen.
How to Compare and Find an Affordable First Insurance Policy for Your Car
Getting your first insurance policy for your car may not be a priority, but it should be. Your first car insurance policy protects one of your first investments, your car. But buying your first insurance policy for your car can be complicated and often new car insurance shoppers fail to compare car insurance rates and in turn fail to reap the financial benefits of finding the best and affordable car insurance available to them.
Shopping for Your First Insurance Policy: Who Needs Car Insurance?
The question asked by most people shopping for their first insurance policy is who needs an insurance policy and why? The answer is simple: it’s the law. The DMV (Department of Motor Vehicles) requires that you take financial responsibility for owning and operating a car in all fifty states. Car insurance protects you when you cause property damage or bodily injury to someone else when driving your car. If you are caught driving without car insurance you will be charged hefty penalties. Violators can face up to hundreds of dollars in fines for a first time offense. Also, if you are involved in an accident and do not have car insurance, your license may be suspended whether you are at fault or not.
Understand Your First Insurance Policy
Now that you know you know how important it is to get your first insurance policy for your car, you will want to understand how car insurance works before you start deciding on which company you will choose for your first insurance policy. The best place to start is Auto Insurance 101. This article will take you step by step in understanding car insurance. Once you understand how car insurance works and have an idea of what type of car insurance you need, you are on your way to the next step of finding the best and most affordable car insurance for you.
Just Because it is Your First Insurance Policy, that Does Not Mean You Have to Pay Too Much
This is often where first insurance policy buyers get sucked into paying too much for their car insurance. Don't just assume since you are purchasing your first insurance policy that you will have to pay extremely high premiums. Yes, you will pay higher premiums than people who have had car insurance for some time, but that does not mean you can not find affordable car insurance. You ask then how does one find the best and most affordable car insurance? Here is a checklist of ways to find affordable car insurance and the best first insurance for you:
Tips for How to Find the Best Affordable First Insurance
1. Compare first insurance rates online and locally.
2. Know what you need and how much of a first insurance policy so you don't buy more than you want.
3. Tell the car insurance company that you are comparing X amount of companies so they know that you are looking for the best deal.
4. When shopping online or locally for your first insurance policy, make sure you know what car insurance discounts you may be eligible for. If you are unsure, ask the insurance agent of all their discounts.
5. If you are choosing full coverage car insurance, remember the higher your deductible, the cheaper your car insurance premium will be.
6. If you feel an insurance company or agent is treating you unfairly or breaking the law, know how to file a complaint.
Shopping for Your First Insurance Policy: Who Needs Car Insurance?
The question asked by most people shopping for their first insurance policy is who needs an insurance policy and why? The answer is simple: it’s the law. The DMV (Department of Motor Vehicles) requires that you take financial responsibility for owning and operating a car in all fifty states. Car insurance protects you when you cause property damage or bodily injury to someone else when driving your car. If you are caught driving without car insurance you will be charged hefty penalties. Violators can face up to hundreds of dollars in fines for a first time offense. Also, if you are involved in an accident and do not have car insurance, your license may be suspended whether you are at fault or not.
Understand Your First Insurance Policy
Now that you know you know how important it is to get your first insurance policy for your car, you will want to understand how car insurance works before you start deciding on which company you will choose for your first insurance policy. The best place to start is Auto Insurance 101. This article will take you step by step in understanding car insurance. Once you understand how car insurance works and have an idea of what type of car insurance you need, you are on your way to the next step of finding the best and most affordable car insurance for you.
Just Because it is Your First Insurance Policy, that Does Not Mean You Have to Pay Too Much
This is often where first insurance policy buyers get sucked into paying too much for their car insurance. Don't just assume since you are purchasing your first insurance policy that you will have to pay extremely high premiums. Yes, you will pay higher premiums than people who have had car insurance for some time, but that does not mean you can not find affordable car insurance. You ask then how does one find the best and most affordable car insurance? Here is a checklist of ways to find affordable car insurance and the best first insurance for you:
Tips for How to Find the Best Affordable First Insurance
1. Compare first insurance rates online and locally.
2. Know what you need and how much of a first insurance policy so you don't buy more than you want.
3. Tell the car insurance company that you are comparing X amount of companies so they know that you are looking for the best deal.
4. When shopping online or locally for your first insurance policy, make sure you know what car insurance discounts you may be eligible for. If you are unsure, ask the insurance agent of all their discounts.
5. If you are choosing full coverage car insurance, remember the higher your deductible, the cheaper your car insurance premium will be.
6. If you feel an insurance company or agent is treating you unfairly or breaking the law, know how to file a complaint.
Compare Online Auto Insurance Quotes from Multiple Companies
You chose to go online for your auto insurance quote? Good call! Online is the best way to receive quotes because the Internet and car insurance mix like peas and carrots.
It’s like having a free tool for comparing rates from different companies without having to send your information to each one individually. By using the web you can get your online auto insurance quote instantly by just completing one form.
It goes like this:
1. You answer a quick questionnaire on drivers, cars and coverage and hit “give me rates”;
2. In a split second, online programs use your information to generate quotes from leading companies;
3. Your compare auto insurance quotes online instantly and choose the one that’s best for you;
4. Purchase your policy online (optional);
5. Receive instant proof.
Throughout the whole process, you don’t even have to pick up the phone, it can all be done online. If you take time to read Government issued guides, you will notice that a common tip is to compare rates from multiple companies to find out which will offer you the cheapest rates. Compare auto insurance quotes online in order to quickly see who will insure you for less.
You don’t have to compromise quality to find competitive rates. There are a few insurers out there that are considered reputable and have a strong foundation and over all, are reliable.
It’s like having a free tool for comparing rates from different companies without having to send your information to each one individually. By using the web you can get your online auto insurance quote instantly by just completing one form.
It goes like this:
1. You answer a quick questionnaire on drivers, cars and coverage and hit “give me rates”;
2. In a split second, online programs use your information to generate quotes from leading companies;
3. Your compare auto insurance quotes online instantly and choose the one that’s best for you;
4. Purchase your policy online (optional);
5. Receive instant proof.
Throughout the whole process, you don’t even have to pick up the phone, it can all be done online. If you take time to read Government issued guides, you will notice that a common tip is to compare rates from multiple companies to find out which will offer you the cheapest rates. Compare auto insurance quotes online in order to quickly see who will insure you for less.
You don’t have to compromise quality to find competitive rates. There are a few insurers out there that are considered reputable and have a strong foundation and over all, are reliable.
Auto Insurance Discounts and Their Policy
Auto insurance discounts are offered for various reasons and situations. While it is true that many insurance companies are forced to cut their prices due to stifling competition, the rate of their premiums are far from being just a product of guesswork.
Finding Auto Insurance Discounts
It would seem that finding car insurance discounts is very easy. The abundance of offers would most probably tire out an individual and make him choose out of expediency or confusion instead of careful consideration. However, one should never choose a policy simply based on potential auto insurance discounts; one should not only look at the amount, but also at the policy's coverage and conditions.
Car insurance discounts could be considered as rewards for people who possess certain characteristics, qualifications, or attainments which make them ‘fit behind the wheel. Insurance companies also favor certain types of cars, and are also conscious of how it will be used.
Personal Considerations
Those who have unblemished driving records could easily qualify for auto insurance discounts. Premiums are based on the degree of risk that an insurance company takes when accepting and insuring a client. Hence, it is only logical for these firms to offer lower rates to those whom they believe are very meticulous or conscious when it comes to their safety.
Car insurance discounts are also readily given to those who successfully complete a defensive driving program. Those who often use public transportation or participate in carpool programs will also be favorably looked upon by insurance firms.
Age is also a factor in auto insurance discounts. Students under the age of 25 who have good scholastic records could easily qualify for lower premium rates. Car insurance discounts are also available for those who are already past the age of 55 and are already retired.
Auto Insurance Discounts
Auto insurance companies offer favorable rates to persons whose cars are in good driving condition. Some firms prefer certain types or models of vehicles since they are already proven to be safer than the others. Lower rates are also given to those who own cars that are equipped with certain safety equipment or features, such as airbags, anti-theft systems, and anti-lock braking systems.
Policy-Related Cuts
Some companies provide auto insurance discounts when the policy is combined with another one, such as home insurance. Rate cuts are also given to those who have several cars and insure all of them with one company.
Auto insurance companies are very aggressive in marketing their products. It is therefore important for one to devote time and effort in carefully scrutinizing each offer in order to acquire the best deal.
Finding Auto Insurance Discounts
It would seem that finding car insurance discounts is very easy. The abundance of offers would most probably tire out an individual and make him choose out of expediency or confusion instead of careful consideration. However, one should never choose a policy simply based on potential auto insurance discounts; one should not only look at the amount, but also at the policy's coverage and conditions.
Car insurance discounts could be considered as rewards for people who possess certain characteristics, qualifications, or attainments which make them ‘fit behind the wheel. Insurance companies also favor certain types of cars, and are also conscious of how it will be used.
Personal Considerations
Those who have unblemished driving records could easily qualify for auto insurance discounts. Premiums are based on the degree of risk that an insurance company takes when accepting and insuring a client. Hence, it is only logical for these firms to offer lower rates to those whom they believe are very meticulous or conscious when it comes to their safety.
Car insurance discounts are also readily given to those who successfully complete a defensive driving program. Those who often use public transportation or participate in carpool programs will also be favorably looked upon by insurance firms.
Age is also a factor in auto insurance discounts. Students under the age of 25 who have good scholastic records could easily qualify for lower premium rates. Car insurance discounts are also available for those who are already past the age of 55 and are already retired.
Auto Insurance Discounts
Auto insurance companies offer favorable rates to persons whose cars are in good driving condition. Some firms prefer certain types or models of vehicles since they are already proven to be safer than the others. Lower rates are also given to those who own cars that are equipped with certain safety equipment or features, such as airbags, anti-theft systems, and anti-lock braking systems.
Policy-Related Cuts
Some companies provide auto insurance discounts when the policy is combined with another one, such as home insurance. Rate cuts are also given to those who have several cars and insure all of them with one company.
Auto insurance companies are very aggressive in marketing their products. It is therefore important for one to devote time and effort in carefully scrutinizing each offer in order to acquire the best deal.
Car Under Book Value
Cars are not a great investment. That is what my financier friend tells me all the time. Though it may just be an excuse for him having an old, grungy car there is some truth to it. New cars depreciate the moment you drive them off the lot. Nothing you can do to stop or change that. But if you are looking for a new vehicle there are ways to save money and buy a used car for under book value and at least make you feel like you have received a good investment for your money.
Auction, the word can scare some. In America we are not used to the type of bartering that is common place all over the world. One place where we can take part in a bartering system is at an auction. Instead of staying away from an auction you should learn to enjoy it and learn how to benefit from it. Vehicle auctions specifically are what I am talking about here.
Vehicle auctions take place nearly every week someplace. There are different rules associated with different auctions so before just showing up make sure you do not need certain credentials. Some auctions require you to have a dealer’s license and if you do not you might not even get in the door to look at what cars are even available.
Repossessed vehicles are a second kind of auction that you may find. There are government auctions, local city police and sheriff auctions that allow you to bid on repossessed vehicles.These are for the general public in most occasions.You may be able to find a car that is in good shape with few miles but that the owner was unable to pay their fines on so was taken. Others are taken for driving without a license and unable to come get their car. These cars are most likely in good running order. But always be sure to take a look at the vehicle you plan to bid on and not bid blindly.
Other kind of auctions includes cities, counties and schools that sell off vehicles they no longer need. These types of vehicles might have high mileage but because of being a fleet vehicle have been well maintained. These cars have had their scheduled tune ups and have been washed and kept looking good. The interior as well is usually in good condition since it was used for work purposes and not family or rough conditions.
So if you want a way to get a good investment for way under book value remember to try out auctions. Of course do not go into it blindly. Learn the auction lingo, know what book value is on the car you are interested in and stand firm on how much you want to bid up to. It is best to go to an auction or two to just watch and take in the action before bidding. Remember you are getting such a good deal because there is not a warranty or guarantee for the car in most instances. If you do your research before you go though you can come out of the auction with a nice used vehicle for an amazing deal.
Auction, the word can scare some. In America we are not used to the type of bartering that is common place all over the world. One place where we can take part in a bartering system is at an auction. Instead of staying away from an auction you should learn to enjoy it and learn how to benefit from it. Vehicle auctions specifically are what I am talking about here.
Vehicle auctions take place nearly every week someplace. There are different rules associated with different auctions so before just showing up make sure you do not need certain credentials. Some auctions require you to have a dealer’s license and if you do not you might not even get in the door to look at what cars are even available.
Repossessed vehicles are a second kind of auction that you may find. There are government auctions, local city police and sheriff auctions that allow you to bid on repossessed vehicles.These are for the general public in most occasions.You may be able to find a car that is in good shape with few miles but that the owner was unable to pay their fines on so was taken. Others are taken for driving without a license and unable to come get their car. These cars are most likely in good running order. But always be sure to take a look at the vehicle you plan to bid on and not bid blindly.
Other kind of auctions includes cities, counties and schools that sell off vehicles they no longer need. These types of vehicles might have high mileage but because of being a fleet vehicle have been well maintained. These cars have had their scheduled tune ups and have been washed and kept looking good. The interior as well is usually in good condition since it was used for work purposes and not family or rough conditions.
So if you want a way to get a good investment for way under book value remember to try out auctions. Of course do not go into it blindly. Learn the auction lingo, know what book value is on the car you are interested in and stand firm on how much you want to bid up to. It is best to go to an auction or two to just watch and take in the action before bidding. Remember you are getting such a good deal because there is not a warranty or guarantee for the car in most instances. If you do your research before you go though you can come out of the auction with a nice used vehicle for an amazing deal.
Auto Insurance Components
Cheap auto insurance can end up costing you a lot more than you bargained for if you purchased discount car insurance without the coverage you really needed in the first place. Before you compare auto insurance quotes and buy insurance online, you should first know the basic types of insurance coverage available and then select the coverage that best suits your needs. We are here to help you make the right choices.
Before you start searching for auto insurance discounts and getting auto insurance, learn about both the basic and optional insurance coverage available. Do you need auto liability insurance and/or bodily injury liability protection? Should you purchase optional gap auto insurance? And what is the difference between comprehensive auto coverage and full coverage auto insurance? You'll find all the answers right here.
When you buy car insurance online, don't just compare auto insurance quotes, take a close look at the insurance coverage that comes with each insurance policy.
Auto insurance coverage is packaged into a number of different components. When considering discount car insurance, the first thing to do is determine what your state's minimum auto insurance requirements are. Each state is different, so visit our State-by State Insurance Guide to find out your state's requirements.
You purchase car insurance for two reasons:1) to protect yourself (and your family) in the event of an auto accident and you suffer a loss to your person or property; and, 2) to protect yourself (and your family) from losses suffered by others in the event of an auto accident.
Here are the basic types of auto insurance coverage and their components:
Listed below are the different components of a basic auto insurance policy, as well as several types of optional insurance coverage :
Before you start searching for auto insurance discounts and getting auto insurance, learn about both the basic and optional insurance coverage available. Do you need auto liability insurance and/or bodily injury liability protection? Should you purchase optional gap auto insurance? And what is the difference between comprehensive auto coverage and full coverage auto insurance? You'll find all the answers right here.
When you buy car insurance online, don't just compare auto insurance quotes, take a close look at the insurance coverage that comes with each insurance policy.
Auto insurance coverage is packaged into a number of different components. When considering discount car insurance, the first thing to do is determine what your state's minimum auto insurance requirements are. Each state is different, so visit our State-by State Insurance Guide to find out your state's requirements.
You purchase car insurance for two reasons:1) to protect yourself (and your family) in the event of an auto accident and you suffer a loss to your person or property; and, 2) to protect yourself (and your family) from losses suffered by others in the event of an auto accident.
Here are the basic types of auto insurance coverage and their components:
Listed below are the different components of a basic auto insurance policy, as well as several types of optional insurance coverage :
- Auto Liability Insurance
- Bodily Injury Liability Protection
- Collision Coverage
- Comprehensive Auto Coverage
- Full Coverage Auto Insurance
- Personal Injury Protection
- Property Damage Liability
- Uninsured Motorist Bodily Injury Protection
- Uninsured Motorist Property Damage
- Rental Car Reimbursement Coverage
- Towing Reimbursement Coverage
Auto Insurance Myths Debunked
Car colour affects your premium. False. It doesn't matter if your car is blue, red, silver, white, or black, your rate for that make and model will be the same.
2-doors cost more to insure than 4-doors
Not true. Insurers look at the price of the car, repair costs, theft frequency and its previous claims history when determining the rate-not the number of doors.
Parking tickets will affect your insurance rate
Parking tickets do not count against your insurance, but unpaid fines might affect your ability to renew your driver's licence, or worse - result in a licence suspension, which will affect your rate.
Getting a speeding ticket means your rates will go up
It depends. Your first minor speeding ticket (typically anything under 45 km/h over the limit) will probably not affect your insurance rate. But get two or three and you'll likely pay more. Any faster, like a major speeding ticket or racing and your rates go up for sure.
It doesn't matter which insurer you have coverage with, you'll pay the same rate
No way. A simple visit to compare instant online auto insurance quotes are shows that auto insurance rates can vary considerably between insurers.
Drivers who don't shop around may be doing themselves a disservice, and ultimately paying a lot more than they have to for their coverage.
Make sure you shop around for auto insurance quotes to make sure you are getting the coverage you need at the best available price
2-doors cost more to insure than 4-doors
Not true. Insurers look at the price of the car, repair costs, theft frequency and its previous claims history when determining the rate-not the number of doors.
Parking tickets will affect your insurance rate
Parking tickets do not count against your insurance, but unpaid fines might affect your ability to renew your driver's licence, or worse - result in a licence suspension, which will affect your rate.
Getting a speeding ticket means your rates will go up
It depends. Your first minor speeding ticket (typically anything under 45 km/h over the limit) will probably not affect your insurance rate. But get two or three and you'll likely pay more. Any faster, like a major speeding ticket or racing and your rates go up for sure.
It doesn't matter which insurer you have coverage with, you'll pay the same rate
No way. A simple visit to compare instant online auto insurance quotes are shows that auto insurance rates can vary considerably between insurers.
Drivers who don't shop around may be doing themselves a disservice, and ultimately paying a lot more than they have to for their coverage.
Make sure you shop around for auto insurance quotes to make sure you are getting the coverage you need at the best available price
Thursday, February 19, 2009
Ways to Save on Auto Insurance
For the past few years we have been experiencing an increase of premiums with regard to insurance policies. I'm sure you have been asking, as I have, why are the ratings rising? One reason is inflation and to that we owe the higher volume of car accidents nationwide. As agents and consumers we have ways to help solve these high rates.
How can we help keep rates low? What factors do we need to consider?
The first thing we need to look at is the driving record. Of course it is always best to have a good driving record. A bad driving record is the number one reason for which insurance companies hike up their rates. When having a poor record, a way to improve it is to take the classes the state provides to lower points on your license. Florida has this type of program so check with your state to see if they do as well.
A second factor to keep in mind is the type of vehicle you are having insured. When buying a vehicle one needs to take into consideration the category the car will fall into and the safety features it has.
A sports car will have higher rates because of the risk of having an accident are supposed to be greater than a car from the family category. In addition insurance companies offer discounts on vehicles have safety features such as anti-lock brakes, airbags, alarm, etc. So it is a good choice to have these types of features in your car so that your policy premium can be lowered.
A third way to lower premiums is to have a policy with no lapse in it. Renewing on time and avoiding cancellations, due to lack of payment or otherwise, will help you because at renewal a discount may apply.
The final factor I will mention is the credit check companies now run to find out if you have had a previous lawsuit against an insurance company. There has been a rapidly growing amount of lawsuits against insurance companies from attorneys. If in fact you have had a lawsuit against an insurance company the policy premium might be raised due to a higher risk perceived by the insuring company.
Knowing all of these factors we may now feel more educated when we buy our car insurance.
How can we help keep rates low? What factors do we need to consider?
The first thing we need to look at is the driving record. Of course it is always best to have a good driving record. A bad driving record is the number one reason for which insurance companies hike up their rates. When having a poor record, a way to improve it is to take the classes the state provides to lower points on your license. Florida has this type of program so check with your state to see if they do as well.
A second factor to keep in mind is the type of vehicle you are having insured. When buying a vehicle one needs to take into consideration the category the car will fall into and the safety features it has.
A sports car will have higher rates because of the risk of having an accident are supposed to be greater than a car from the family category. In addition insurance companies offer discounts on vehicles have safety features such as anti-lock brakes, airbags, alarm, etc. So it is a good choice to have these types of features in your car so that your policy premium can be lowered.
A third way to lower premiums is to have a policy with no lapse in it. Renewing on time and avoiding cancellations, due to lack of payment or otherwise, will help you because at renewal a discount may apply.
The final factor I will mention is the credit check companies now run to find out if you have had a previous lawsuit against an insurance company. There has been a rapidly growing amount of lawsuits against insurance companies from attorneys. If in fact you have had a lawsuit against an insurance company the policy premium might be raised due to a higher risk perceived by the insuring company.
Knowing all of these factors we may now feel more educated when we buy our car insurance.
Cheap Car Insurance – 7 Tips To Reduce Your Car Insurance Costs
With the cost of car insurance becoming more and more of an issue for the average American family, there are increasing numbers of people looking for cheap car insurance. But although it is possible to find cheap car insurance, the question remains, is it worth buying?
Everyone knows that car insurance companies are not all equal. Cheap car insurance is wonderful when paying the bill, but make a mistake on the company you select and you could find that the cheap car insurance policy that you found may turn into a nightmare. Cheap car insurance may not turn out to be so attractive when making a claim.
So if you have found a discount car insurance broker don't just take the cheapest quote that you get. You need to find out a little about the insurance company that is offering the cheap car insurance rates.
And there's ways to reduce the cost of your car insurance even with the best of companies. Here are some tips for those looking for cheap car insurance to help reduce the cost of car insurance without compromising other things.
7 Cheap Car Insurance Tips
1. Look at your deductible amount. This is the amount that you pay first out of any claim. The cost of your policy is directly related to this amount. Many people, particularly those who have had their insurance policy for a long time, have never considered whether they ought to vary their deductible. If you have a good driving record and are prepared to increase the risk of paying a larger amount in the event of a (hopefully unlikely) claim you can save money by increasing your deductible.
2. Have a look at the type of car you drive. Certain types of cars attract higher car insurance rates. Cars such as sports cars and also certain makes and models that are prime theft candidates cost more to insure. If you are buying a car then find out which makes and models these are before you buy.
3. Drive carefully. Although it sounds a little trite to say it, your car insurance cost is a factor of your risk profile. You won't get cheap car insurance if you have had 3 speeding fines and 2 accidents in the last year. These things are all taken into account and you should take care with how you drive. It all adds up onto your bill. There are big safe driver discounts available.
4. Considering installing safety and anti theft devices in your car. Again these affect your risk profile. If you have a car that is safer and less at risk of theft it should be cheaper to insure. And if you have a car with certain safety devices now check that your insurance company is aware of these, if not tell them.
5. Look at your policy when it comes to renewal time, don't just pay. There are some things that you can vary in your policy that will affect the cost. Often there are some things there which duplicate other insurance that you may have that can be eliminated. Be critical, look carefully and ask questions about all these before you renew your policy.
6. Have a look at who your other insurers are. Many insurers offer a discount for multiple policies. If you insure your house with a certain company then ring them up and find out if they do car insurance. Get a quote from them. Find out what discounts they offer.
7. Find a good online discount car insurance broker before renewing. The internet is a fabulous resource. Use it. There are all sorts of discount insurance brokers online where you can get fast quotes from a wide range of companies. Don't just settle for the same company you always use. Car insurance rates vary all the time. Always get comparable quotes before renewing any policy.
So if you're in the market for cheap car insurance there's some ideas for you. Don't just accept that car insurance is always prohibitively expensive, get out there and do something about it.
Auto Insurance Basics
Some people only think that insurance is something they need to get their registration and tag so they can drive. It is needed because their license may/will be suspended if they don't have it. It's just a bother to some because people think "I don't get into accidents, I am a careful driver."
Often times people will call for insurance and say "give me the cheapest insurance or give me only what is required." Many people don't even know what this insurance coverage this is. A lot of people only really become aware of what coverage they have when they need it, like when they need to make a claim.
When you run into that stopped car or have someone sideswipe your car in a parking lot while you are shopping, suddenly having only the coverage that is required by law may not be the best thing to have. You should always have as much insurance as you can afford to carry. Having too little is never good and if you have insurance you cannot afford is not any better. A policy that is cancelled due to non-payment does you no good at all.
Lets take a look at the state I am familiar with - Florida. Florida is a no-fault state. What does this mean? Well, if you have the proper state required coverage you will be protected by the no-fault law. If you are in an accident whether you are at fault or not at fault you will go through your own personal injury coverage for your medical expenses for the first $10,000. If you do not have at lease state minimum insurance then you will not be protected and may be subject to paying for the injuries of the other people you hurt in the accident.
There are many types of coverage to purchase and meet your insurance needs. Every coverage has a purpose and all are good to get.
Florida state minimum insurance is Personal Injury Protection and Property Damage. Personal Injury Protection or P.I.P. covers your medical, hospital and funeral expenses up to its limits. It also covers others in your vehicle and pedestrians struck by your car. You are covered for up to $10,000. There also may be a deductible. This can be 0, 250, 500 or 1000 deductible. A $1000 deductible being the minimum in Florida.
Property Damage liability covers if your vehicle damages another person's property. This could be their car, house, motorcycle, etc. Limits for this are $10,000, $25,000 or $50,000. The Minimum in Florida is $10,000.
Another valuable coverage is Bodily Injury Liability. Bodily Injury covers other people's injury or death that you are responsible for up to the limits you purchase. This is not required by Florida for state minimum insurance, but it would satisfy another law called the Financial Responsibility law. This law states that if you are not financially responsible at the time of and at fault accident where someone gets injured or property damage occurs, your license may be suspended. At this point you may be able to get your license back by filing an Sr-22. This form shows to the state you are now carrying Bodily Injury Coverage and are now financially responsible. Usually you must carry this for 3 years with no lapses in coverage.
Another common insurance people ask for is Full Coverage. This is not an insurance coverage and means a different thing with every company you call. Most people only know that their car dealer or bank wants Full Coverage so they ask for it. Comprehensive and Collision is what these companies are looking for. Collision covers repairs when your vehicle hits or is hit by another vehicle. If it is destroyed it will also pay up to the book value of the vehicle at the time of a loss. Comprehensive covers for loss caused by other circumstances other than a collision. Some examples are theft, flood, fire or animal damage. This will also cover total losses up to the book value of the vehicle.
Other types of coverage available are medical and Uninsured Motorist. Medical covers medical costs to you and your passengers injured in an accident. Uninsured Motorist covers injuries to you and your passengers when the other person in the accident is at fault but does not have insurance or does not have enough insurance.
These are just some of the basics about the insurance there is more detailed information about each coverage out there that you can find. But this information should give you a good idea about what type of coverage you might need to research more or be ready to purchase. Knowing the basics is your first step on making smart purchasing decisions!
Often times people will call for insurance and say "give me the cheapest insurance or give me only what is required." Many people don't even know what this insurance coverage this is. A lot of people only really become aware of what coverage they have when they need it, like when they need to make a claim.
When you run into that stopped car or have someone sideswipe your car in a parking lot while you are shopping, suddenly having only the coverage that is required by law may not be the best thing to have. You should always have as much insurance as you can afford to carry. Having too little is never good and if you have insurance you cannot afford is not any better. A policy that is cancelled due to non-payment does you no good at all.
Lets take a look at the state I am familiar with - Florida. Florida is a no-fault state. What does this mean? Well, if you have the proper state required coverage you will be protected by the no-fault law. If you are in an accident whether you are at fault or not at fault you will go through your own personal injury coverage for your medical expenses for the first $10,000. If you do not have at lease state minimum insurance then you will not be protected and may be subject to paying for the injuries of the other people you hurt in the accident.
There are many types of coverage to purchase and meet your insurance needs. Every coverage has a purpose and all are good to get.
Florida state minimum insurance is Personal Injury Protection and Property Damage. Personal Injury Protection or P.I.P. covers your medical, hospital and funeral expenses up to its limits. It also covers others in your vehicle and pedestrians struck by your car. You are covered for up to $10,000. There also may be a deductible. This can be 0, 250, 500 or 1000 deductible. A $1000 deductible being the minimum in Florida.
Property Damage liability covers if your vehicle damages another person's property. This could be their car, house, motorcycle, etc. Limits for this are $10,000, $25,000 or $50,000. The Minimum in Florida is $10,000.
Another valuable coverage is Bodily Injury Liability. Bodily Injury covers other people's injury or death that you are responsible for up to the limits you purchase. This is not required by Florida for state minimum insurance, but it would satisfy another law called the Financial Responsibility law. This law states that if you are not financially responsible at the time of and at fault accident where someone gets injured or property damage occurs, your license may be suspended. At this point you may be able to get your license back by filing an Sr-22. This form shows to the state you are now carrying Bodily Injury Coverage and are now financially responsible. Usually you must carry this for 3 years with no lapses in coverage.
Another common insurance people ask for is Full Coverage. This is not an insurance coverage and means a different thing with every company you call. Most people only know that their car dealer or bank wants Full Coverage so they ask for it. Comprehensive and Collision is what these companies are looking for. Collision covers repairs when your vehicle hits or is hit by another vehicle. If it is destroyed it will also pay up to the book value of the vehicle at the time of a loss. Comprehensive covers for loss caused by other circumstances other than a collision. Some examples are theft, flood, fire or animal damage. This will also cover total losses up to the book value of the vehicle.
Other types of coverage available are medical and Uninsured Motorist. Medical covers medical costs to you and your passengers injured in an accident. Uninsured Motorist covers injuries to you and your passengers when the other person in the accident is at fault but does not have insurance or does not have enough insurance.
These are just some of the basics about the insurance there is more detailed information about each coverage out there that you can find. But this information should give you a good idea about what type of coverage you might need to research more or be ready to purchase. Knowing the basics is your first step on making smart purchasing decisions!
Things To Teach Your Teenage Driver
Is it hard to communicate with your teenager about issues in his or her life? Regardless of the communication problems, there are two issues you need to discuss with them: driving and insurance. The following are four things to teach your teenage driver.
1. Driving is a privilege, not a right.
From a state's viewpoint, they will not hesitate to suspend or revoke a driver's license if too many violations are received in a short period of time. If the driver receives a DUI or is involved in an accident and he or she is not adequately insured the state will suspend or revoke a driver's license.
From the parents' viewpoint: if the teenager is a minor or a dependant, the state may hold the parents liable for his or her actions. Also, since parents usually pay for the teenager's bills, they should be honest and let the teenage driver know that driving his or her driving privilege will be revoked by THEM, if she or he does not meet their expectations for driving responsibility or anything else.
2. Insurance for teenage drivers is expensive.
Due to the accident statistics for teenage drivers, their rates start out high that is a fact. It only gets higher with accumulated violations. Also, with accumulated violations, the parents' insurance company and other insurance companies, may not choose to insure them. This lack of supply by insurance companies creates a higher demand, and as a result creates higher premiums.
3. Teenagers need to know there are consequences to their actions - especially if it involves auto accidents.
The teenage driver needs to know that people get hurt and possibly DIE in auto accidents. Teenagers seem to be oblivious of their or anyone else's mortality. There are laws of physics that need to be understood when an accident takes place. Also, it may not seem cool, but the teenage driver needs to make sure everybody in the vehicle wears his or her safety belt.
4. Last, your teenage driver needs to avoid distractions and concentrate on driving.
Unfortunately, a safety belt and an air bag do not totally protect the human body. Only avoiding accidents will keep everyone safe. In order to do this, the teenage driver has to know why she or he is driving. Most of the time, it is to reach his or her destination SAFELY.
Besides fastening safety belts, the teenage driver needs to set radio before she or he starts to drive. Teenagers need to be advised not to use a cell phone until he or she is done driving. This will allow them not to be distracted by either looking down to switch stations as they drive or by concentrating on their phone conversation instead of the road ahead.
Also, while driving, the teenager needs to keep his or her eyes moving. This will help keep the driver from 'dazing' and allow him or her to concentrate on the surroundings, especially the other cars sharing the road with them. The teenager needs to expect the unexpected while he or she is driving. In particular, he or she needs to be aware of the unpredictably of children, people on bicycles, and aggressive drivers.
Talking to your teenager may not be easy. She or he may not want to participate with you in an in-depth driving conversation. However, the previous four things should be taught to him or her not only to keep teenagers safe on the road but so you can sleep at night knowing that you have communicated to them the finer points of driving and the insurance that goes along with that.
1. Driving is a privilege, not a right.
From a state's viewpoint, they will not hesitate to suspend or revoke a driver's license if too many violations are received in a short period of time. If the driver receives a DUI or is involved in an accident and he or she is not adequately insured the state will suspend or revoke a driver's license.
From the parents' viewpoint: if the teenager is a minor or a dependant, the state may hold the parents liable for his or her actions. Also, since parents usually pay for the teenager's bills, they should be honest and let the teenage driver know that driving his or her driving privilege will be revoked by THEM, if she or he does not meet their expectations for driving responsibility or anything else.
2. Insurance for teenage drivers is expensive.
Due to the accident statistics for teenage drivers, their rates start out high that is a fact. It only gets higher with accumulated violations. Also, with accumulated violations, the parents' insurance company and other insurance companies, may not choose to insure them. This lack of supply by insurance companies creates a higher demand, and as a result creates higher premiums.
3. Teenagers need to know there are consequences to their actions - especially if it involves auto accidents.
The teenage driver needs to know that people get hurt and possibly DIE in auto accidents. Teenagers seem to be oblivious of their or anyone else's mortality. There are laws of physics that need to be understood when an accident takes place. Also, it may not seem cool, but the teenage driver needs to make sure everybody in the vehicle wears his or her safety belt.
4. Last, your teenage driver needs to avoid distractions and concentrate on driving.
Unfortunately, a safety belt and an air bag do not totally protect the human body. Only avoiding accidents will keep everyone safe. In order to do this, the teenage driver has to know why she or he is driving. Most of the time, it is to reach his or her destination SAFELY.
Besides fastening safety belts, the teenage driver needs to set radio before she or he starts to drive. Teenagers need to be advised not to use a cell phone until he or she is done driving. This will allow them not to be distracted by either looking down to switch stations as they drive or by concentrating on their phone conversation instead of the road ahead.
Also, while driving, the teenager needs to keep his or her eyes moving. This will help keep the driver from 'dazing' and allow him or her to concentrate on the surroundings, especially the other cars sharing the road with them. The teenager needs to expect the unexpected while he or she is driving. In particular, he or she needs to be aware of the unpredictably of children, people on bicycles, and aggressive drivers.
Talking to your teenager may not be easy. She or he may not want to participate with you in an in-depth driving conversation. However, the previous four things should be taught to him or her not only to keep teenagers safe on the road but so you can sleep at night knowing that you have communicated to them the finer points of driving and the insurance that goes along with that.
Car Insurance and No-Fault Benefits
In most No-Fault states, such as Florida, if you are in an accident and receive bodily injuries it is your own car insurance that will cover your injuries and medical bills. This no-fault insurance is usually termed Personal Injury Protection or PIP.Many states have passed laws requiring vehicle owners to have no-fault coverage (PIP) as part of their state mandated minimum automobile insurance coverage.
If you have been in an automobile accident the first course of action, whether you have bodily injuries or not, is to contact the police to make a report. The next step is to contact your insurance company to report the accident. Your insurance provider should then be able to walk you through the steps of making a claim. If you have injuries and need to place a claim against your PIP coverage, this can be done at this point as well.
If you are unsure of what your personal injury protection policy covers, ask your agent to explain the benefits and which will be of use to you under your current situation. Benefits typically can include payment for loss of wages, medical expenses, replacement services and other economical damages you might have suffered due to the accident.
Medical expenses that will be covered by No Fault are those medical expenses that are reasonable and necessary are covered. The state’s statutes in which you reside usually regulate what is deemed reasonable and necessary. This definition usually excludes experimental treatments or alternative/holistic treatments.
In Minnesota their statutes include as medically necessary the following items: medical, surgical, x-ray, optical, dental, chiropractic, and rehabilitative services, including prosthetic devices. Also allowable by MN statutes are prescription drugs, ambulance or other transportation expenses incurred in traveling to receive other covered medical expense benefits.
The state of Minnesota’s PIP system demands that before any wage loss claim will be paid by your insurance provider that a doctor's disability note must be presented to your PIP insurance adjuster in order for you to receive wage loss benefits and that proof of wage loss from your employer on a form available from your insurance adjuster.
In Florida their no-fault (PIP) coverage includes payment for 80 percent of medically necessary expenses, 60 percent of lost wages, 100 percent of replacement services such as child care, housekeeping or yard work, and $5,000 for death benefits. Florida also allows that for a higher premium you may amend your personal injury protection coverage to increase medical expenses to 100 percent and lost wages to 80 percent or increase your minimum limits from $10,000 to $20,000 or more.
There are other states, such as Washington, that do not require PIP but have it as an option that a driver can carry as part of their insurance coverage. In Washington State personal injury protection if you choose this optional coverage it pays for medical and other expenses resulting from an auto accident, for people specified in the policy, regardless of who is at fault.
While this coverage is not required in Washington, it is mandatory that it is offered to car insurance buyers and must be rejected in writing if the car owner does not want to add the coverage. In a Washington PIP policy the named insurer and residents of that person’s household related by blood, marriage or adoption are covered for injuries incurred in an accident. Also passengers of the named insurer’s vehicle and pedestrians are covered.
In Washington, just as Minnesota and Florida, PIP covers reasonable and necessary medical expenses for injuries sustained in an automobile accident, up to three years from the date of the accident and up to the $10,000 limit. Other benefits of PIP in Washington State include income replacement (maximum of $200 per week for 1 year, after a person has been disabled for 14 days after the accident), funeral expenses of $2000 and loss of services of up to $5000.
Whether your state requires you to carry Personal Injury Protection insurance coverage or not you will want to be informed of this coverage and what benefits you may receive from it. Find out from your insurance agent, or your state’s insurance regulatory body (Department of Insurance) who is covered by a PIP policy and if there is different coverage options you may want to include for better protection of you and your family.
If you have been in an automobile accident the first course of action, whether you have bodily injuries or not, is to contact the police to make a report. The next step is to contact your insurance company to report the accident. Your insurance provider should then be able to walk you through the steps of making a claim. If you have injuries and need to place a claim against your PIP coverage, this can be done at this point as well.
If you are unsure of what your personal injury protection policy covers, ask your agent to explain the benefits and which will be of use to you under your current situation. Benefits typically can include payment for loss of wages, medical expenses, replacement services and other economical damages you might have suffered due to the accident.
Medical expenses that will be covered by No Fault are those medical expenses that are reasonable and necessary are covered. The state’s statutes in which you reside usually regulate what is deemed reasonable and necessary. This definition usually excludes experimental treatments or alternative/holistic treatments.
In Minnesota their statutes include as medically necessary the following items: medical, surgical, x-ray, optical, dental, chiropractic, and rehabilitative services, including prosthetic devices. Also allowable by MN statutes are prescription drugs, ambulance or other transportation expenses incurred in traveling to receive other covered medical expense benefits.
The state of Minnesota’s PIP system demands that before any wage loss claim will be paid by your insurance provider that a doctor's disability note must be presented to your PIP insurance adjuster in order for you to receive wage loss benefits and that proof of wage loss from your employer on a form available from your insurance adjuster.
In Florida their no-fault (PIP) coverage includes payment for 80 percent of medically necessary expenses, 60 percent of lost wages, 100 percent of replacement services such as child care, housekeeping or yard work, and $5,000 for death benefits. Florida also allows that for a higher premium you may amend your personal injury protection coverage to increase medical expenses to 100 percent and lost wages to 80 percent or increase your minimum limits from $10,000 to $20,000 or more.
There are other states, such as Washington, that do not require PIP but have it as an option that a driver can carry as part of their insurance coverage. In Washington State personal injury protection if you choose this optional coverage it pays for medical and other expenses resulting from an auto accident, for people specified in the policy, regardless of who is at fault.
While this coverage is not required in Washington, it is mandatory that it is offered to car insurance buyers and must be rejected in writing if the car owner does not want to add the coverage. In a Washington PIP policy the named insurer and residents of that person’s household related by blood, marriage or adoption are covered for injuries incurred in an accident. Also passengers of the named insurer’s vehicle and pedestrians are covered.
In Washington, just as Minnesota and Florida, PIP covers reasonable and necessary medical expenses for injuries sustained in an automobile accident, up to three years from the date of the accident and up to the $10,000 limit. Other benefits of PIP in Washington State include income replacement (maximum of $200 per week for 1 year, after a person has been disabled for 14 days after the accident), funeral expenses of $2000 and loss of services of up to $5000.
Whether your state requires you to carry Personal Injury Protection insurance coverage or not you will want to be informed of this coverage and what benefits you may receive from it. Find out from your insurance agent, or your state’s insurance regulatory body (Department of Insurance) who is covered by a PIP policy and if there is different coverage options you may want to include for better protection of you and your family.
What To Do If You Are Rear Ended In Your Car
Depending upon the severity of the crash; which could be just a slight tap on your rear bumper due to some one's foot slipping off the brake at a stop light. It could be a major collision, totaling your car, and causing you or your passengers severe long-term whiplash and other medical injuries.
Call the police. Even if your rear-ender is a slight bump; in order to facilitate your insurance claim, you will need a police accident report. Insurance companies need legal documentation that an accident actually occurred; when, where, how, what happened, and the parties and their vehicles involved.
Police will help both parties to get the information they need, but you need to be sure you have their data as well, and if you are able, do so before police arrive. You will need your insurance card, and your vehicle tag registration. Each party should get a copy of the police accident report. Assuming both parties are medically able, here is a list of the information you will need to exchange with the other driver:
- Name(s) of drivers and owners of the vehicle
- Address
- Phone numbers, home, work, and cell
- License tag numbers
- Drivers License numbers
- Name of insurance company, and agency
- Their phone numbers and claims numbers
- Physically look at insurance cards and drivers licenses
Additionally, if there are any witnesses to the crash, get their name, address, phone numbers.
Try to remain emotional calm, even though you may be dazed or shocked by the crash. Do not get into a hostile confrontation. Usually the other driver is also shaken up, so try to be helpful, if anyone needs emergency aid let the 911 operators know if you are the one who summons the police.
If you have a camera with you in your car (ideally a digital camera kept in your glove compartment or a cell phone) take photos of the accident and damage done. Note any unusual circumstances that might have led to the cause of the crash, or if the camera would help the claims department of an insurance company, or attorney determine negligence, or percent of negligence.
As an example; here is a a typical rear-ender
- Driver A is stopped
- Driver B hits the car from behind.
Some states assume Driver B is at fault, but Driver B may argue against that presumption of fault. For example, Driver B may argue that Driver A stopped so suddenly it was impossible not to hit them. In that example, liability or fault may be split between the drivers. In a comparative negligence state Driver B may be 70% at fault and driver B is 30% at fault. Some states don't use comparative negligence, but many do.
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