There are some drivers who know the value of car insurance and also that it is required by law, but due to financial hardship they cannot afford to purchase even the minimum coverage. Luckily for Californians who fall into this category, there is a program called the Low Cost Auto Insurance Program, which makes coverage available to safe drivers who meet the standard requirements. These drivers have access to an acceptable insurance policy for a price that can fit their budget. It’s a program that is monitored closely, and there are heavy penalties for trying to commit fraud by providing false information in order to use the program.
Car insurance pricing is determined on a number of factors, including the driver’s record, place of residence, and the vehicle driven. It’s not hard to understand that people who drive recklessly are charged higher premiums than a person with a clean record, but it’s almost considered unfair that people who live in dangerous areas are charged higher premiums even when their record is spotless. Some drivers don’t have a real choice concerning where they live and may only be able to afford living in a high crime area. Law makers have tried to help these citizens by creating the Low Cost Auto Insurance Program that safe drivers can take advantage of and use it to purchase insurance.
Safe and responsible drivers who cannot afford the current price of car insurance, despite any discounts offered, should not be left to fend for themselves and drive without coverage. If they are in fact a safe driver, the chances of their involvement in an accident are slim, but there is a higher chance that their vehicle may be vandalized or stolen in their “high-crime” neighborhood, which is something the insurer would end up paying for. Law makers have imposed this program in California to help all drivers have proper coverage, which forces companies to offer a certain number of drivers this program.
Who Can Participate?
According to the California’s Department of Insurance Website, all applicants must be at least 19 years old, and any college students must not be claimed as a dependent by someone else. They must have had a driver’s license for the past three years continuously. The driver must be classified as a “good driver,” which means they cannot have more than one point on their record and have only been at-fault in one accident, both within the last three years. Also, they cannot have any felony or misdemeanor conviction on their record either.
The driver’s income also plays a role in determining whether or not someone is qualified to participate in the low cost auto insurance program. The number of people in the household, related by blood, marriage or adoption, compared to the amount of income made during the year is crucial to being permitted into the program. For instance, households of 4 people can make no more than $55,125 a year, and households with 8 people cannot make more than $92,525 a year to qualify. The Department of Insurance site says, “Eligibility is based on the household’s gross annual income which must be 250% or less of the federal poverty level.”
What Is The Coverage?
The limits on this program’s policy is $10,000 for bodily injury liability per person with $20,000 per accident, and $3,000 for property damage liability, also abbreviated as 10/20/3. The normal minimum amount of insurance for a California driver is 15/30/5. There are additional coverage options that can be added to the policy such as medical payments with a maximum of $1,000, and uninsured motorist bodily injury per person of $10,000 and per accident of $20,000. These options do not cover any physical damage to the driver’s own vehicle, but there is an option to purchase comprehensive and collision coverage if so desired, and if the driver can afford it.
What Companies Offer It?
As mentioned earlier, providers are mandated by the state to offer this protection. The driver cannot choose which company will provide this insurance. An application is filled out by the driver, who will then be notified if he/she qualifies. Upon qualification, the driver then enters in their zip code to get a list of “certified producers” who must then be contacted to apply for a policy. Thankfully, no fees will be added on to the price of the policy, such as booking fees or broker fees.
Are There Other Limitations?
The driver must only have the vehicles covered by the Low Cost program, and no other policies. If the driver has another vehicle in the household that is insured by another company on a non-Low Cost policy, the driver will no longer be qualified for this program. Also, the vehicle that is insured through this policy can only be valued at $20,000 or less. A more expensive car is not allowed on this program.
Not Eligible?
For those drivers who discover they are not eligible for this program, rest assured you can still find better rates by using our comparison method and searching for other discounts. When you give us your zip code and answer a short list of questions, we, in return, can provide to you a list of local insurers who are willing to provide insurance to you and their estimated prices to do so. These prices are based on the answers to the questions you gave. If these quotes are still not low enough, check out what discounts you are eligible to receive. Students can get cheaper rates if they get good grades, and senior citizens, usually older than 65, can also get discounts. Defensive driving courses can be taken to learn better driving skills while also earning a discount. Even if your insurance rate isn’t as low as you’d like it to be, you can get it lower with each policy renewal as you work on cleaning up your driving record and looking for discounts.
Tuesday, June 23, 2009
Getting your Low Cost Auto Insurance
There are some drivers who know the value of car insurance and also that it is required by law, but due to financial hardship they cannot afford to purchase even the minimum coverage. Luckily for Californians who fall into this category, there is a program called the Low Cost Auto Insurance Program, which makes coverage available to safe drivers who meet the standard requirements. These drivers have access to an acceptable insurance policy for a price that can fit their budget. It’s a program that is monitored closely, and there are heavy penalties for trying to commit fraud by providing false information in order to use the program.
Car insurance pricing is determined on a number of factors, including the driver’s record, place of residence, and the vehicle driven. It’s not hard to understand that people who drive recklessly are charged higher premiums than a person with a clean record, but it’s almost considered unfair that people who live in dangerous areas are charged higher premiums even when their record is spotless. Some drivers don’t have a real choice concerning where they live and may only be able to afford living in a high crime area. Law makers have tried to help these citizens by creating the Low Cost Auto Insurance Program that safe drivers can take advantage of and use it to purchase insurance.
Safe and responsible drivers who cannot afford the current price of car insurance, despite any discounts offered, should not be left to fend for themselves and drive without coverage. If they are in fact a safe driver, the chances of their involvement in an accident are slim, but there is a higher chance that their vehicle may be vandalized or stolen in their “high-crime” neighborhood, which is something the insurer would end up paying for. Law makers have imposed this program in California to help all drivers have proper coverage, which forces companies to offer a certain number of drivers this program.
Who Can Participate?
According to the California’s Department of Insurance Website, all applicants must be at least 19 years old, and any college students must not be claimed as a dependent by someone else. They must have had a driver’s license for the past three years continuously. The driver must be classified as a “good driver,” which means they cannot have more than one point on their record and have only been at-fault in one accident, both within the last three years. Also, they cannot have any felony or misdemeanor conviction on their record either.
The driver’s income also plays a role in determining whether or not someone is qualified to participate in the low cost auto insurance program. The number of people in the household, related by blood, marriage or adoption, compared to the amount of income made during the year is crucial to being permitted into the program. For instance, households of 4 people can make no more than $55,125 a year, and households with 8 people cannot make more than $92,525 a year to qualify. The Department of Insurance site says, “Eligibility is based on the household’s gross annual income which must be 250% or less of the federal poverty level.”
What Is The Coverage?
The limits on this program’s policy is $10,000 for bodily injury liability per person with $20,000 per accident, and $3,000 for property damage liability, also abbreviated as 10/20/3. The normal minimum amount of insurance for a California driver is 15/30/5. There are additional coverage options that can be added to the policy such as medical payments with a maximum of $1,000, and uninsured motorist bodily injury per person of $10,000 and per accident of $20,000. These options do not cover any physical damage to the driver’s own vehicle, but there is an option to purchase comprehensive and collision coverage if so desired, and if the driver can afford it.
What Companies Offer It?
As mentioned earlier, providers are mandated by the state to offer this protection. The driver cannot choose which company will provide this insurance. An application is filled out by the driver, who will then be notified if he/she qualifies. Upon qualification, the driver then enters in their zip code to get a list of “certified producers” who must then be contacted to apply for a policy. Thankfully, no fees will be added on to the price of the policy, such as booking fees or broker fees.
Are There Other Limitations?
The driver must only have the vehicles covered by the Low Cost program, and no other policies. If the driver has another vehicle in the household that is insured by another company on a non-Low Cost policy, the driver will no longer be qualified for this program. Also, the vehicle that is insured through this policy can only be valued at $20,000 or less. A more expensive car is not allowed on this program.
Not Eligible?
For those drivers who discover they are not eligible for this program, rest assured you can still find better rates by using our comparison method and searching for other discounts. When you give us your zip code and answer a short list of questions, we, in return, can provide to you a list of local insurers who are willing to provide insurance to you and their estimated prices to do so. These prices are based on the answers to the questions you gave. If these quotes are still not low enough, check out what discounts you are eligible to receive. Students can get cheaper rates if they get good grades, and senior citizens, usually older than 65, can also get discounts. Defensive driving courses can be taken to learn better driving skills while also earning a discount. Even if your insurance rate isn’t as low as you’d like it to be, you can get it lower with each policy renewal as you work on cleaning up your driving record and looking for discounts.
Car insurance pricing is determined on a number of factors, including the driver’s record, place of residence, and the vehicle driven. It’s not hard to understand that people who drive recklessly are charged higher premiums than a person with a clean record, but it’s almost considered unfair that people who live in dangerous areas are charged higher premiums even when their record is spotless. Some drivers don’t have a real choice concerning where they live and may only be able to afford living in a high crime area. Law makers have tried to help these citizens by creating the Low Cost Auto Insurance Program that safe drivers can take advantage of and use it to purchase insurance.
Safe and responsible drivers who cannot afford the current price of car insurance, despite any discounts offered, should not be left to fend for themselves and drive without coverage. If they are in fact a safe driver, the chances of their involvement in an accident are slim, but there is a higher chance that their vehicle may be vandalized or stolen in their “high-crime” neighborhood, which is something the insurer would end up paying for. Law makers have imposed this program in California to help all drivers have proper coverage, which forces companies to offer a certain number of drivers this program.
Who Can Participate?
According to the California’s Department of Insurance Website, all applicants must be at least 19 years old, and any college students must not be claimed as a dependent by someone else. They must have had a driver’s license for the past three years continuously. The driver must be classified as a “good driver,” which means they cannot have more than one point on their record and have only been at-fault in one accident, both within the last three years. Also, they cannot have any felony or misdemeanor conviction on their record either.
The driver’s income also plays a role in determining whether or not someone is qualified to participate in the low cost auto insurance program. The number of people in the household, related by blood, marriage or adoption, compared to the amount of income made during the year is crucial to being permitted into the program. For instance, households of 4 people can make no more than $55,125 a year, and households with 8 people cannot make more than $92,525 a year to qualify. The Department of Insurance site says, “Eligibility is based on the household’s gross annual income which must be 250% or less of the federal poverty level.”
What Is The Coverage?
The limits on this program’s policy is $10,000 for bodily injury liability per person with $20,000 per accident, and $3,000 for property damage liability, also abbreviated as 10/20/3. The normal minimum amount of insurance for a California driver is 15/30/5. There are additional coverage options that can be added to the policy such as medical payments with a maximum of $1,000, and uninsured motorist bodily injury per person of $10,000 and per accident of $20,000. These options do not cover any physical damage to the driver’s own vehicle, but there is an option to purchase comprehensive and collision coverage if so desired, and if the driver can afford it.
What Companies Offer It?
As mentioned earlier, providers are mandated by the state to offer this protection. The driver cannot choose which company will provide this insurance. An application is filled out by the driver, who will then be notified if he/she qualifies. Upon qualification, the driver then enters in their zip code to get a list of “certified producers” who must then be contacted to apply for a policy. Thankfully, no fees will be added on to the price of the policy, such as booking fees or broker fees.
Are There Other Limitations?
The driver must only have the vehicles covered by the Low Cost program, and no other policies. If the driver has another vehicle in the household that is insured by another company on a non-Low Cost policy, the driver will no longer be qualified for this program. Also, the vehicle that is insured through this policy can only be valued at $20,000 or less. A more expensive car is not allowed on this program.
Not Eligible?
For those drivers who discover they are not eligible for this program, rest assured you can still find better rates by using our comparison method and searching for other discounts. When you give us your zip code and answer a short list of questions, we, in return, can provide to you a list of local insurers who are willing to provide insurance to you and their estimated prices to do so. These prices are based on the answers to the questions you gave. If these quotes are still not low enough, check out what discounts you are eligible to receive. Students can get cheaper rates if they get good grades, and senior citizens, usually older than 65, can also get discounts. Defensive driving courses can be taken to learn better driving skills while also earning a discount. Even if your insurance rate isn’t as low as you’d like it to be, you can get it lower with each policy renewal as you work on cleaning up your driving record and looking for discounts.
Auto Insurance: 8 Savings Secrets
Everybody has a reason. Maybe they're telling you what you want to hear. Could be they'll get a bonus if they sell you product "A". Heck, they may simply have forgotten to mention it. Bottom line, there's something your car insurance company or agent isn't telling you that might save you money. And it could be one of these 8 things:
1. Older car? Drop collision.
Have a car that's 7 or 8 years old? Is it worth less than $2,500? That's the time to start thinking about taking the risk and dropping comp and collision premiums from your policy. The reason why? Chances are your deductible is closing in on the value of your car and any major collision will send you to the dealership, anyway.
2. Buy home and auto with different companies
With everything being bundled today – from cell phones to Internet and cable TV – you'd think that having your home and auto insurance bundled at the same company would save money. But, do your research, and you may discover that having separate policies can be well worth it. Good rates abound for both types of insurance – but it's rare to find the lowest rate for both from the same company. So, unless you buy an umbrella policy, there's no overriding reason to keep your policies together if you can save.
3. Minimum liability? Not enough.
You may tell an agent that you can only afford the minimum car insurance required by law. And some agents may be more than happy to provide you with that policy – and then get you out the door so the next paying customer can step in. What he may neglect to tell you is that in some states – particularly Ohio, Pennsylvania, South Carolina, Nevada, New Jersey and Oklahoma – state-mandated limits are ridiculously low. And there's a good chance those minimums won't even come close to covering the costs of a serious accident. Which means you could be paying WAY more than you bargained for if you're at fault.
4. Shop around for lower rates
A State Farm agent only quotes State Farm. Same for Allstate. So what are the chances their agent will tell you to shop around for the best deal? Even independent agents only represent a few auto insurers, so how do you know what's fair? Shopping for and comparing services online from companies like Insurance.com allows you to fine-tune the deductibles and coverage you want and then compare auto insurance rates side-by-side. All in one place. All at one time.
5. Go green; keep green
Even auto insurance companies are green – offering discounts that will trim a bit off your premium. Look for things like a discount for driving a hybrid, for opting for paperless statements or electronic payment plans. Even signing your policy with an e-signature can save you some pennies. Basically, the less the company has to spend on paper, the more they'll pass those savings on to you.
6. Consider paying that claim yourself
Naturally, you don't really want to hear that, but if you've backed into the garage, think twice about asking your company to repair it. Why? Besides the possibility that your rates will go up at the time of renewal, the next time you shop for new insurance, many insurance companies will use an insurance history report to see if you've made any car insurance claims, and how much money was paid. Although accidents can only affect your rates for three years, many companies will look back five or more years when deciding if they want to offer you insurance. Having more claims will affect that result.
7. Your car makes a difference. Don't buy that turbo convertible.
All vehicles are not created equal. Small or large, old or new, the type of car you drive will affect the size of the premium you pay, often based on algorithms insurance companies use to determine how expensive it might be to pay a claim. That'll affect how much your premium will be. Even more reason to shop around for the best deal.
8. Teenager turned 16? Don't add them to your policy – yet.
If your teenager has turned 16 but isn't a licensed driver, you're not required to add them to your insurance policy. You're only required to insure them once they become licensed to drive. That also means in most instances you don't have to insure them if they just have a learning permit. But check. Some policies may require it.
1. Older car? Drop collision.
Have a car that's 7 or 8 years old? Is it worth less than $2,500? That's the time to start thinking about taking the risk and dropping comp and collision premiums from your policy. The reason why? Chances are your deductible is closing in on the value of your car and any major collision will send you to the dealership, anyway.
2. Buy home and auto with different companies
With everything being bundled today – from cell phones to Internet and cable TV – you'd think that having your home and auto insurance bundled at the same company would save money. But, do your research, and you may discover that having separate policies can be well worth it. Good rates abound for both types of insurance – but it's rare to find the lowest rate for both from the same company. So, unless you buy an umbrella policy, there's no overriding reason to keep your policies together if you can save.
3. Minimum liability? Not enough.
You may tell an agent that you can only afford the minimum car insurance required by law. And some agents may be more than happy to provide you with that policy – and then get you out the door so the next paying customer can step in. What he may neglect to tell you is that in some states – particularly Ohio, Pennsylvania, South Carolina, Nevada, New Jersey and Oklahoma – state-mandated limits are ridiculously low. And there's a good chance those minimums won't even come close to covering the costs of a serious accident. Which means you could be paying WAY more than you bargained for if you're at fault.
4. Shop around for lower rates
A State Farm agent only quotes State Farm. Same for Allstate. So what are the chances their agent will tell you to shop around for the best deal? Even independent agents only represent a few auto insurers, so how do you know what's fair? Shopping for and comparing services online from companies like Insurance.com allows you to fine-tune the deductibles and coverage you want and then compare auto insurance rates side-by-side. All in one place. All at one time.
5. Go green; keep green
Even auto insurance companies are green – offering discounts that will trim a bit off your premium. Look for things like a discount for driving a hybrid, for opting for paperless statements or electronic payment plans. Even signing your policy with an e-signature can save you some pennies. Basically, the less the company has to spend on paper, the more they'll pass those savings on to you.
6. Consider paying that claim yourself
Naturally, you don't really want to hear that, but if you've backed into the garage, think twice about asking your company to repair it. Why? Besides the possibility that your rates will go up at the time of renewal, the next time you shop for new insurance, many insurance companies will use an insurance history report to see if you've made any car insurance claims, and how much money was paid. Although accidents can only affect your rates for three years, many companies will look back five or more years when deciding if they want to offer you insurance. Having more claims will affect that result.
7. Your car makes a difference. Don't buy that turbo convertible.
All vehicles are not created equal. Small or large, old or new, the type of car you drive will affect the size of the premium you pay, often based on algorithms insurance companies use to determine how expensive it might be to pay a claim. That'll affect how much your premium will be. Even more reason to shop around for the best deal.
8. Teenager turned 16? Don't add them to your policy – yet.
If your teenager has turned 16 but isn't a licensed driver, you're not required to add them to your insurance policy. You're only required to insure them once they become licensed to drive. That also means in most instances you don't have to insure them if they just have a learning permit. But check. Some policies may require it.
Motorcycle Insurance And Riding Safety Tips
Progressive Motorcycle Insurance Company gives you some good tips about motorcycles and road safety.
Can't Wait To Hit The Road On Your New Bike? Not So Fast!
Even Veteran Bikers Could Use Some Basic Training When They Switch Bikes
(NAPSI)-Whoever coined the phrase "it's just like riding a bike" probably never switched motorcycles. That's because even experienced riders can be pretty wobbly when they hop on an unfamiliar bike, according to data from the country's largest motorcycle insurer, Progressive.
The study of almost 2 million motorcycle policies over a five-year period found that riders who switch bikes are nearly 70 percent more likely to crash than riders who keep the same bike.
"Most people already know that riding can be especially dangerous for new bikers," said Rick Stern, a Progressive motorcycle product manager who is also a rider. "But our data shows that the less familiar you are with your bike, the more likely you are to be involved in a collision, regardless of your experience."
The study also found that cruiser riders who switch to sport bikes are three-and-a-half times more likely to crash. That's more than double the risk they'd have than if they had just switched to another cruiser.
Sport bikers, on the other hand, can reduce their risk by more than a third just by switching to a cruiser.
"We want experienced riders to know their risks so they can take extra precautions when they replace their bikes," said Stern. "It's a good idea for riders to take their new bike out for a couple of test drives in a parking lot before hitting the open road."
Even people who have been riding for years can benefit from practicing the basics on their new bike, Stern said, including low-speed riding, turning, shifting and swerving, and higher-speed panic stopping.
No matter what your level of experience--both on your bike and on the road--make sure you're covered with a motorcycle policy that fits your needs. Progressive offers coverages such as Trip Interruption, which can cover your lodging, food and transportation if you get stranded on the road, and Total Loss Replacement, which can replace your bike with a brand-new one if it's stolen or totaled.
Can't Wait To Hit The Road On Your New Bike? Not So Fast!
Even Veteran Bikers Could Use Some Basic Training When They Switch Bikes
(NAPSI)-Whoever coined the phrase "it's just like riding a bike" probably never switched motorcycles. That's because even experienced riders can be pretty wobbly when they hop on an unfamiliar bike, according to data from the country's largest motorcycle insurer, Progressive.
The study of almost 2 million motorcycle policies over a five-year period found that riders who switch bikes are nearly 70 percent more likely to crash than riders who keep the same bike.
"Most people already know that riding can be especially dangerous for new bikers," said Rick Stern, a Progressive motorcycle product manager who is also a rider. "But our data shows that the less familiar you are with your bike, the more likely you are to be involved in a collision, regardless of your experience."
The study also found that cruiser riders who switch to sport bikes are three-and-a-half times more likely to crash. That's more than double the risk they'd have than if they had just switched to another cruiser.
Sport bikers, on the other hand, can reduce their risk by more than a third just by switching to a cruiser.
"We want experienced riders to know their risks so they can take extra precautions when they replace their bikes," said Stern. "It's a good idea for riders to take their new bike out for a couple of test drives in a parking lot before hitting the open road."
Even people who have been riding for years can benefit from practicing the basics on their new bike, Stern said, including low-speed riding, turning, shifting and swerving, and higher-speed panic stopping.
No matter what your level of experience--both on your bike and on the road--make sure you're covered with a motorcycle policy that fits your needs. Progressive offers coverages such as Trip Interruption, which can cover your lodging, food and transportation if you get stranded on the road, and Total Loss Replacement, which can replace your bike with a brand-new one if it's stolen or totaled.
Auto Insurance Shopping
Understand How Auto Insurance Rates Are Set Auto Insurance Shopping:
(NC)—If you're shopping around for auto insurance it's important to know how insurance companies set their rates. Many factors are at play, so here are some useful tips from the Financial Services Commission of Ontario (FSCO), the regulator of the auto insurance industry in Ontario, to keep your rates as low as possible.
The auto insurance rate you are charged will depend upon:
• The type of vehicleyou drive. Auto insurance companies evaluate vehicles based on their makes and models, according to their claims experience. Vehicles with lower costs for repairs, lower rates of injury, and lower incidences of accident and theft, will receive lower rates.
• Your driving record, which includes your years of driving experience, past at-fault accidents, completed training courses, and convictions such as speeding or impaired driving.
• Driving routine and frequency. The more time you spend on the road, the higher the chances of becoming involved in an auto accident.
• Where you live. If you live in a busy urban area, there is greater risk for accidents and theft, thus higher rates are charged.
• Your age. Costs are generally lower for drivers 25 years of age and older.
• The amount of coverage you purchase. Your insurance rates will be higher if you purchase additional protection beyond what is mandatory, such as the optional collision coverage, which protects you for damage to your vehicle, regardless of who caused the accident.
• The deductible, which is the portion of a loss that you are required to pay. Your deductible can vary depending on the type of coverage you purchase and the percentage of fault you are assigned in the event of an auto accident. There are deductibles for direct compensation-property damage, collision or upset, comprehensive, all perils, and specified perils coverage. If you opt for a higher deductible, your rates will likely be lower.
• The insurance company you choose. It's important to shop around because financial factors unique to each insurance company will influence your rates. Insurance works according to a "pooling" concept. Your rates are based on the claims experience of the entire group. Some insurance companies have claims that are much higher than others. This results in some insurance companies setting higher rates than others for the same type of insurance coverage.
Factors that cannot affect insurance rates
Under Ontario law, insurance companies cannot use certain criteria to set your auto insurance rates, such as: credit history or rating, past bankruptcy, income and employment status, debts, whether you rent or own a home and not-at-fault accidents.
More information on auto insurance is available online at www.fsco.gov.on.ca where you can download the brochure Understanding Automobile Insurance.
(NC)—If you're shopping around for auto insurance it's important to know how insurance companies set their rates. Many factors are at play, so here are some useful tips from the Financial Services Commission of Ontario (FSCO), the regulator of the auto insurance industry in Ontario, to keep your rates as low as possible.
The auto insurance rate you are charged will depend upon:
• The type of vehicleyou drive. Auto insurance companies evaluate vehicles based on their makes and models, according to their claims experience. Vehicles with lower costs for repairs, lower rates of injury, and lower incidences of accident and theft, will receive lower rates.
• Your driving record, which includes your years of driving experience, past at-fault accidents, completed training courses, and convictions such as speeding or impaired driving.
• Driving routine and frequency. The more time you spend on the road, the higher the chances of becoming involved in an auto accident.
• Where you live. If you live in a busy urban area, there is greater risk for accidents and theft, thus higher rates are charged.
• Your age. Costs are generally lower for drivers 25 years of age and older.
• The amount of coverage you purchase. Your insurance rates will be higher if you purchase additional protection beyond what is mandatory, such as the optional collision coverage, which protects you for damage to your vehicle, regardless of who caused the accident.
• The deductible, which is the portion of a loss that you are required to pay. Your deductible can vary depending on the type of coverage you purchase and the percentage of fault you are assigned in the event of an auto accident. There are deductibles for direct compensation-property damage, collision or upset, comprehensive, all perils, and specified perils coverage. If you opt for a higher deductible, your rates will likely be lower.
• The insurance company you choose. It's important to shop around because financial factors unique to each insurance company will influence your rates. Insurance works according to a "pooling" concept. Your rates are based on the claims experience of the entire group. Some insurance companies have claims that are much higher than others. This results in some insurance companies setting higher rates than others for the same type of insurance coverage.
Factors that cannot affect insurance rates
Under Ontario law, insurance companies cannot use certain criteria to set your auto insurance rates, such as: credit history or rating, past bankruptcy, income and employment status, debts, whether you rent or own a home and not-at-fault accidents.
More information on auto insurance is available online at www.fsco.gov.on.ca where you can download the brochure Understanding Automobile Insurance.
Wednesday, June 3, 2009
Insurance Rates Hit Lowest Point in Year
According to Insurance.com’s RateWatch for car insurance, average annual auto insurance rates held steady in May 2009 at $1,871 – the lowest they have been in more than a year. This is good news for drivers who had been paying as much as $1,950 in September 2008, and it’s great news for drivers looking to buy a car.
“While new car sales are still down compared with last year, car shopping website Edmunds.com predicts that June new car sales will be up almost 9% over May 2009,” said Sam Belden, Vice President at Insurance.com. “Whether you are shopping for a new or used car, spending 30 minutes comparing auto insurance can save thousands of dollars in the long run.”
Insurance.com offers these tips for drivers looking to purchase new or used cars:
Consider car choice
All cars are not created equal. Small or large, old or new, the type of car you drive affects the premium you pay, often based on algorithms insurance companies use to determine how expensive it might be to pay a claim. If you buy a hybrid, some insurance companies offer discounts of up to 10% off your premium.
Look for safety features
Safety features can also cut your insurance costs. Many carriers offer “Safe Car” discounts of 5% or more for air bags, antilock brakes, and antitheft devices.
Compare rates online before buying a car
A State Farm® agent only quotes State Farm. Same for Allstate®. So what are the chances their agents will tell you to shop around for the best deal? Shopping online with companies like Insurance.com allows you to fine-tune the deductibles and coverage you want and then compare auto insurance side-by-side.
Older car? Drop collision.
Have a car that's 7 or 8 years old or worth less than $2,500? It’s time to start thinking about taking the risk and dropping comp and collision from your policy. Chances are your deductible is closing in on the value of your car and a major collision will send you to the dealership, anyway.
Minimum liability? Not enough.
You may think you can only afford the minimum car insurance required by law. But, in some states – Ohio, Pennsylvania, South Carolina, Nevada, and New Jersey– the state-mandated limits are ridiculously low. There's a good chance those minimums won’t come close to covering the costs of a serious accident. Which means you could be paying WAY more than you bargained for if you're at fault.
The RateWatch report data is based on the lowest car insurance rates quoted to consumers in each state, from more than a dozen of the nation's leading auto insurers. The complete report is available at www.insurance.com/ratewatch.
“While new car sales are still down compared with last year, car shopping website Edmunds.com predicts that June new car sales will be up almost 9% over May 2009,” said Sam Belden, Vice President at Insurance.com. “Whether you are shopping for a new or used car, spending 30 minutes comparing auto insurance can save thousands of dollars in the long run.”
Insurance.com offers these tips for drivers looking to purchase new or used cars:
Consider car choice
All cars are not created equal. Small or large, old or new, the type of car you drive affects the premium you pay, often based on algorithms insurance companies use to determine how expensive it might be to pay a claim. If you buy a hybrid, some insurance companies offer discounts of up to 10% off your premium.
Look for safety features
Safety features can also cut your insurance costs. Many carriers offer “Safe Car” discounts of 5% or more for air bags, antilock brakes, and antitheft devices.
Compare rates online before buying a car
A State Farm® agent only quotes State Farm. Same for Allstate®. So what are the chances their agents will tell you to shop around for the best deal? Shopping online with companies like Insurance.com allows you to fine-tune the deductibles and coverage you want and then compare auto insurance side-by-side.
Older car? Drop collision.
Have a car that's 7 or 8 years old or worth less than $2,500? It’s time to start thinking about taking the risk and dropping comp and collision from your policy. Chances are your deductible is closing in on the value of your car and a major collision will send you to the dealership, anyway.
Minimum liability? Not enough.
You may think you can only afford the minimum car insurance required by law. But, in some states – Ohio, Pennsylvania, South Carolina, Nevada, and New Jersey– the state-mandated limits are ridiculously low. There's a good chance those minimums won’t come close to covering the costs of a serious accident. Which means you could be paying WAY more than you bargained for if you're at fault.
The RateWatch report data is based on the lowest car insurance rates quoted to consumers in each state, from more than a dozen of the nation's leading auto insurers. The complete report is available at www.insurance.com/ratewatch.
Information on Low Cost Auto Insurance
Cheap car insurance seems to be what everyone looks for nowadays. Saving money is such a top priority to so many consumers, and you could very well be in that group of savers too. How is it possible to find low cost auto insurance? As you may find, low cost auto insurance isn’t something that usually pops out at you, waiting for you to come and grab it up. While some companies claim to have the lowest rates, some drivers are disappointed that those low rates only apply to drivers who meet certain criteria which cannot be met by others and leads to hopeless frustration.
If you can push aside the frustration for a bit longer, we can provide some insight on how to find that low cost insurance. And, if you don’t qualify for cheap auto insurance for one reason or another, we can show you a few discounts you might be able to apply towards your policy cost.
Comparing Companies Will Help You Find Low Cost Auto Insurance
Comparison shopping, no matter what the product may be, always helps consumers find their product for the cheapest available price. Wouldn’t you shop at the store who offers the lowest price? Most consumers would say yes, of course. The same applies to auto insurance. Although it’s not a physical product, it is a service that protects you and your vehicle from damage or replacement expenses.
Most auto insurance companies will offer the same types of coverage options to purchase for your auto insurance policy, and most of them come with the same terms and conditions. By doing a thorough comparison, you can find the differences, if there are any, and then look at the prices of those same options. There’s no doubt if you find the same coverage option for a cheaper price, you’re going to pick the company who offers the cheapest price.
The most convenient way for you to compare auto insurance companies is by using our site. On our Homepage, simply enter in your zip code and complete the list of questions. We will send you a list of auto insurance companies and their price quotes for a policy, which you can take and decide which one to purchase. There’s no obligation to purchase, nor are there any fees to use our service, so there’s really no harm in using our comparison service.
A Clean Record Will Get You Low Cost Auto Insurance
Drivers who are beginning their descent into the realities of auto insurance have a bit of an advantage over those who are experienced drivers and have already tainted their driving record. You will find that drivers who have no traffic incidents — tickets or accidents — on their driving record will be paying far less for their auto insurance compared to those drivers who do have traffic incidents on their record. Surprised? You shouldn’t be. Auto insurance companies obviously charge the latter group of drivers a higher rate because they file more claims and cause the insurance company to pay out more money than the first group of drivers with no incidents.
Auto insurance companies assign a level of risk to all drivers. This level of risk reflects the chances that driver is going to file a claim, and the higher the risk, the higher the premium.
If you have received tickets or have been involved in accidents, you have already seen your rates rise. To get them back down again, you will need to work on not getting any further incidents on your record so you can lower your level of risk with the insurance company. Driving cautiously and being aware of your surroundings (including the speed limit and stop signs) will help you keep your driving record clean and get low auto insurance rates.
The Vehicle You Drive Can Be Used To Your Advantage (or Disadvantage)
Were you aware your vehicle assists in determining the cost of your auto insurance? There are a few things to know that can help you use your vehicle to get low cost auto insurance. You can apply this knowledge as you purchase your next vehicle. First, a car that has safety features will get a cheaper premium cost. How many airbags does your vehicle have? Is it equipped with a car alarm? What other safety mechanisms are in included with the car? Letting your insurer know these things will lower the cost of your policy.
Second, a car that is brand new is much more expensive to insure than a car that isn’t brand new. The cost to repair or replace a new car is very expensive for an auto insurer, and therefore they will charge more to insure such a vehicle. Also, on an older car, you may not need to carry options like comprehensive or collision because the cash value of the car isn’t worth the cost of that insurance. With a new car, you would absolutely need to pay for comprehensive and collision coverage.
Third, the type of vehicle you drive factors into your premium cost. It is definitely more expensive to insure a fast sports car than it is to insure a typical four-door sedan. Cars that have the ability to drive fast are usually driven fast and sometimes are then involved in traffic incidents. Auto insurers charge higher rates to drive these cars because the level of risk is increased.
Your Personal Statistics Affect Your Cost
There isn’t much that drivers can do to change these things, but knowing these factors affect your auto insurance cost can help a driver figure out why their insurance may cost more than someone else’s. Young male drivers are statistically less cautious than young female drivers, which leaves young male drivers paying more for their auto insurance. However, the older a driver gets, the more responsible they are thought to be and their insurance cost decreases. Married drivers are charged less for auto insurance compared to their single peers, mostly because married drivers drive more cautiously with their spouse present in the car.
Low cost auto insurance isn’t easy for every driver to find, but it is out there. Taking the time to compare auto insurance companies, clean up your driving record, and evaluate the car you drive will help lower your cost for auto insurance.
If you can push aside the frustration for a bit longer, we can provide some insight on how to find that low cost insurance. And, if you don’t qualify for cheap auto insurance for one reason or another, we can show you a few discounts you might be able to apply towards your policy cost.
Comparing Companies Will Help You Find Low Cost Auto Insurance
Comparison shopping, no matter what the product may be, always helps consumers find their product for the cheapest available price. Wouldn’t you shop at the store who offers the lowest price? Most consumers would say yes, of course. The same applies to auto insurance. Although it’s not a physical product, it is a service that protects you and your vehicle from damage or replacement expenses.
Most auto insurance companies will offer the same types of coverage options to purchase for your auto insurance policy, and most of them come with the same terms and conditions. By doing a thorough comparison, you can find the differences, if there are any, and then look at the prices of those same options. There’s no doubt if you find the same coverage option for a cheaper price, you’re going to pick the company who offers the cheapest price.
The most convenient way for you to compare auto insurance companies is by using our site. On our Homepage, simply enter in your zip code and complete the list of questions. We will send you a list of auto insurance companies and their price quotes for a policy, which you can take and decide which one to purchase. There’s no obligation to purchase, nor are there any fees to use our service, so there’s really no harm in using our comparison service.
A Clean Record Will Get You Low Cost Auto Insurance
Drivers who are beginning their descent into the realities of auto insurance have a bit of an advantage over those who are experienced drivers and have already tainted their driving record. You will find that drivers who have no traffic incidents — tickets or accidents — on their driving record will be paying far less for their auto insurance compared to those drivers who do have traffic incidents on their record. Surprised? You shouldn’t be. Auto insurance companies obviously charge the latter group of drivers a higher rate because they file more claims and cause the insurance company to pay out more money than the first group of drivers with no incidents.
Auto insurance companies assign a level of risk to all drivers. This level of risk reflects the chances that driver is going to file a claim, and the higher the risk, the higher the premium.
If you have received tickets or have been involved in accidents, you have already seen your rates rise. To get them back down again, you will need to work on not getting any further incidents on your record so you can lower your level of risk with the insurance company. Driving cautiously and being aware of your surroundings (including the speed limit and stop signs) will help you keep your driving record clean and get low auto insurance rates.
The Vehicle You Drive Can Be Used To Your Advantage (or Disadvantage)
Were you aware your vehicle assists in determining the cost of your auto insurance? There are a few things to know that can help you use your vehicle to get low cost auto insurance. You can apply this knowledge as you purchase your next vehicle. First, a car that has safety features will get a cheaper premium cost. How many airbags does your vehicle have? Is it equipped with a car alarm? What other safety mechanisms are in included with the car? Letting your insurer know these things will lower the cost of your policy.
Second, a car that is brand new is much more expensive to insure than a car that isn’t brand new. The cost to repair or replace a new car is very expensive for an auto insurer, and therefore they will charge more to insure such a vehicle. Also, on an older car, you may not need to carry options like comprehensive or collision because the cash value of the car isn’t worth the cost of that insurance. With a new car, you would absolutely need to pay for comprehensive and collision coverage.
Third, the type of vehicle you drive factors into your premium cost. It is definitely more expensive to insure a fast sports car than it is to insure a typical four-door sedan. Cars that have the ability to drive fast are usually driven fast and sometimes are then involved in traffic incidents. Auto insurers charge higher rates to drive these cars because the level of risk is increased.
Your Personal Statistics Affect Your Cost
There isn’t much that drivers can do to change these things, but knowing these factors affect your auto insurance cost can help a driver figure out why their insurance may cost more than someone else’s. Young male drivers are statistically less cautious than young female drivers, which leaves young male drivers paying more for their auto insurance. However, the older a driver gets, the more responsible they are thought to be and their insurance cost decreases. Married drivers are charged less for auto insurance compared to their single peers, mostly because married drivers drive more cautiously with their spouse present in the car.
Low cost auto insurance isn’t easy for every driver to find, but it is out there. Taking the time to compare auto insurance companies, clean up your driving record, and evaluate the car you drive will help lower your cost for auto insurance.
What Can Drivers Do to Get Cheap Auto Insurance?
It may seem like an impossible feat for any driver to get cheap auto insurance, but with a positive attitude and time to do some research all drivers can get their auto insurance rates cheaper than what they are currently paying. Because each driver has a different level of driving experience, each driver will have different routes to take to find ways to decrease the amount they pay for auto insurance. We have broken it down to two groups, giving information to teenage drivers (or any new driver) and experienced drivers on what to do to get cheap auto insurance. You will notice that some of the suggestions apply to both groups, but take it as something that should be made into a habit to always be qualified for low auto insurance.
What can teenage drivers do?
All teenage or new drivers should begin their driving experience by having an understanding that although driving can be fun and a way to feel older or temporarily escape from home or school life, it is a privilege that should be taken seriously. Parents should take responsibility and set ground rules regarding the teen’s driving. Often, a contract is made, clearly stating rules, what is expected of the teen driver, and what the consequences are for breaking those rules. Rules should be based around safe driving, including no cell phone use while driving, how loud the radio can be if used at all, when the teen is allowed to use the vehicle, or the number of friends that can be in the vehicle while the teen is driving. Parents shouldn’t hesitate to help their teen driver learn how to be safe while driving by setting rules and expecting them to be followed.
When discussing rules, parents may want to point out that the “cleaner” a driving record is, the cheaper that driver is to insure. Teen drivers start their driving career with a clean slate, having no marks against them. The longer this record stays clear of accidents and tickets, the better off the driver will be in the years to come. One consequence to getting an accident or ticket could be the teen pays for the increase in premium due to their receiving a ticket or causing an accident. Teen drivers are already expensive to insure, and adding a traffic incident to their record only increases it more. Stress the importance of keeping auto insurance premiums as low as possible so the teen understands and perhaps becomes more sympathetic to the financial side of things.
Teenage drivers can also learn the responsibility of driving by having to pay for their portion of the auto insurance policy. Policyholders or parents can figure this amount out by finding the difference between the policy premium before the teen began driving and what the policy is currently now that the teen is driving. Some parents may find this too harsh of an expectation for their child, and if that is the case, then perhaps this could be a consequence the teen must endure if they break a rule in the contract. Paying for gas is another way to teach the teen about driving responsibly. This could help prevent the teen from going on aimless joyrides around town, which could put the teen at a greater risk of being involved in an accident.
Our final suggestion for teen drivers is to be careful of the type of car they drive. Most teenagers dream of driving the coolest car at school; something fast, something everyone covets, and something expensive. However, these types of vehicles are very expensive to insure, especially to a teenage driver. If the parents can afford both the “cool car” and the insurance to cover it, by all means, purchase whatever is wanted. The remaining group of drivers should look for something safe but older for their teen. Ask the question, if my teenage driver wrecked this car, how much would it cost to repair and how upset would I be?
What can experienced drivers do? (clean up record, vehicle type, less miles)
Drivers who have had the opportunity to drive cars for a while should have the experience needed to make good judgment calls in all or most driving situations. Using this knowledge to their advantage will help lower auto insurance rates through keeping their record free from accidents and traffic tickets. If the experienced driver has traffic incidents on their record, it will take time for those to disappear. The best thing a driver can do in this situation is wait it out and make sure to use their driving knowledge to avoid adding more traffic incidents to their record. And, just for the record, your driving record will always follow you, no matter which auto insurance company you use.
Another thing experienced drivers can do to get cheap auto insurance is to drive their vehicle less. A car that is driven less is obviously on the road less, which decreases the chance that it will be mixed up in an accident. Auto insurance companies ask for an estimation of the mileage the car will be driven, and that estimation helps to produce the final premium cost. Taking the bus or carpooling to and from the driver’s destinations will help lower the miles on the insured vehicle, thus lowering the cost of insurance.
A suggestion given to the teenage driver is also recommended to experienced drivers, and that is to drive a modest car with safety features. Not only will teenage drivers develop a “lead-foot” behind the wheel of a fast car, so will experienced drivers. While the teenage driver feels invincible, the experienced driver feels that because of his experience in driving, he can handle driving the fast car at high speeds, safely. Auto insurance companies end up paying more in claims for speedy cars, so they charge more to insure them. The safety features of a car — such as airbags or an alarm — help protect from more severe body injuries or finding the location of the vehicle, which means the insurance company will payout less in claims filed in the end.
What can teenage drivers do?
All teenage or new drivers should begin their driving experience by having an understanding that although driving can be fun and a way to feel older or temporarily escape from home or school life, it is a privilege that should be taken seriously. Parents should take responsibility and set ground rules regarding the teen’s driving. Often, a contract is made, clearly stating rules, what is expected of the teen driver, and what the consequences are for breaking those rules. Rules should be based around safe driving, including no cell phone use while driving, how loud the radio can be if used at all, when the teen is allowed to use the vehicle, or the number of friends that can be in the vehicle while the teen is driving. Parents shouldn’t hesitate to help their teen driver learn how to be safe while driving by setting rules and expecting them to be followed.
When discussing rules, parents may want to point out that the “cleaner” a driving record is, the cheaper that driver is to insure. Teen drivers start their driving career with a clean slate, having no marks against them. The longer this record stays clear of accidents and tickets, the better off the driver will be in the years to come. One consequence to getting an accident or ticket could be the teen pays for the increase in premium due to their receiving a ticket or causing an accident. Teen drivers are already expensive to insure, and adding a traffic incident to their record only increases it more. Stress the importance of keeping auto insurance premiums as low as possible so the teen understands and perhaps becomes more sympathetic to the financial side of things.
Teenage drivers can also learn the responsibility of driving by having to pay for their portion of the auto insurance policy. Policyholders or parents can figure this amount out by finding the difference between the policy premium before the teen began driving and what the policy is currently now that the teen is driving. Some parents may find this too harsh of an expectation for their child, and if that is the case, then perhaps this could be a consequence the teen must endure if they break a rule in the contract. Paying for gas is another way to teach the teen about driving responsibly. This could help prevent the teen from going on aimless joyrides around town, which could put the teen at a greater risk of being involved in an accident.
Our final suggestion for teen drivers is to be careful of the type of car they drive. Most teenagers dream of driving the coolest car at school; something fast, something everyone covets, and something expensive. However, these types of vehicles are very expensive to insure, especially to a teenage driver. If the parents can afford both the “cool car” and the insurance to cover it, by all means, purchase whatever is wanted. The remaining group of drivers should look for something safe but older for their teen. Ask the question, if my teenage driver wrecked this car, how much would it cost to repair and how upset would I be?
What can experienced drivers do? (clean up record, vehicle type, less miles)
Drivers who have had the opportunity to drive cars for a while should have the experience needed to make good judgment calls in all or most driving situations. Using this knowledge to their advantage will help lower auto insurance rates through keeping their record free from accidents and traffic tickets. If the experienced driver has traffic incidents on their record, it will take time for those to disappear. The best thing a driver can do in this situation is wait it out and make sure to use their driving knowledge to avoid adding more traffic incidents to their record. And, just for the record, your driving record will always follow you, no matter which auto insurance company you use.
Another thing experienced drivers can do to get cheap auto insurance is to drive their vehicle less. A car that is driven less is obviously on the road less, which decreases the chance that it will be mixed up in an accident. Auto insurance companies ask for an estimation of the mileage the car will be driven, and that estimation helps to produce the final premium cost. Taking the bus or carpooling to and from the driver’s destinations will help lower the miles on the insured vehicle, thus lowering the cost of insurance.
A suggestion given to the teenage driver is also recommended to experienced drivers, and that is to drive a modest car with safety features. Not only will teenage drivers develop a “lead-foot” behind the wheel of a fast car, so will experienced drivers. While the teenage driver feels invincible, the experienced driver feels that because of his experience in driving, he can handle driving the fast car at high speeds, safely. Auto insurance companies end up paying more in claims for speedy cars, so they charge more to insure them. The safety features of a car — such as airbags or an alarm — help protect from more severe body injuries or finding the location of the vehicle, which means the insurance company will payout less in claims filed in the end.
Which Auto Insurance Company is the Best?
There are so many auto insurance companies out there vying for your attention, claiming they will give you the lowest possible price while providing the best service. Between the highly popular companies and the local companies, it can be a bit confusing to decide on which company is better suited for you. While everyone is trying to find the best one out there, the answer just might be that no one particular company is the best auto insurance choice for every driver. Each driver has their own list of priorities for an insurance company and expectations that they must meet before they are chosen.
Are you looking for an auto insurance company? Drivers who begin the search for their first auto insurance company or who want to change the insurer they are currently with need to know some things to look for in their next auto insurance provider. Always start off by making a list of things that are important to you; things that should be provided by the insurer to make your experience with them as pleasant as possible. If you are not sure what to look for or what additional expectations to have, read our suggestions below to help better explore your options.
Price
No customer wants to pay more for the same product that is offered elsewhere at a cheaper price. Often, a driver’s number one priority from an auto insurance company is to get the best price available when compared to another insurer. To make sure you’ve got the lowest price, you will need to shop around and compare what other insurers are offering to their customers. One convenient way to shop around is by using our site and entering in your information, which will then give you a list of price quotes from competing auto insurance companies in your local area. You can begin by entering your zip code on our Homepage.
Another way to guarantee you are getting the lowest price for your auto insurance is by making sure you are taking advantage of the discounts that are offered by your insurance provider. Each company has their own rules and limits on discount programs, so look for a company that offers a variety of ways to lower your insurance price. Some of these discounts include getting good grades, safety features on your vehicle, and attending specific driving courses. Most companies also have an accident forgiveness program that could save you from increasing rates should you be involved in an accident.
Customer Service
If you know that you want an excellent experience any time you make contact with your auto insurance company, always check into the prospective company’s customer service history. There are a few ways of doing this. First, during your selection process, you can call the companies you are considering and find out for yourself how they treat people over the phone with their questions. Do they treat you with respect even though you are not a customer? How do you think they would help you if you needed to file a claim in the future?
Second, you can check how their customer service rates by researching the Better Business Bureau or J.D. Power (jdpower.com). Both of these companies compile lists and information regarding other customer’s experiences with auto insurance companies. You could save yourself some headaches by knowing what other past and current customers think about different auto insurance companies you are considering to use.
Third, don’t hesitate to ask family and friends (and even friends of friends) who they use for their auto insurance and how they like the company. Try to find out how the company treated them when they were first purchasing a policy, when they changed their policy, when they filed a claim, when they had questions, etc. You will want to get a full understanding of their experience with their auto insurer so you can form a better opinion of the company’s customer service.
Financial Stability
In this weak economy with failing companies, it would be helpful to know which auto insurance companies are going to be around for a while to pay out any future claims you may make. Auto insurance companies need to have more money coming in to them (by the method of premium costs) than money going out (by paying filed claims). One way to check their financial status is through researching Weiss Ratings (weissratings.com) and A.M. Best (ambest.com). Much like the customer service review Websites, these Websites provide solid information on the likelihood of an auto insurance company paying out a claim.
These third party evaluations are not biased, compared to calling the auto insurance companies themselves and asking how their financial status is currently. Also, making sure these evaluating companies do not accept any forms of pay will keep their findings more truthful and a better way for you to compare the insurers and find the best one for you.
Convenience (close location, online bill pay, answers phone)
The convenience of an auto insurance company may also be a high expectation and help determine which company you want to use. Factors such as online bill pay, a close location, and even how many times the phone rings before it is answered can influence your decision. Any company, including auto insurance companies, should make themselves available to you and be absolutely convenient in every way. The more convenient and easy a company is to use, the more customers they will have.
An auto insurance company that is does not provide conveniences — no Website, far away, never answers the phone — should probably be dismissed as it would cause stress on your part when you do need to contact the company. Auto insurance is for your protection, and you should have every convenience offered to you.
Again, the best auto insurance company is based on matching your needs and expectations with the auto insurance company that provides the solutions. You will find that one company may be better suited for you, but someone else may disagree it’s the best choice for them. Thorough research will help you find your best company and give you a positive experience with auto insurance.
Are you looking for an auto insurance company? Drivers who begin the search for their first auto insurance company or who want to change the insurer they are currently with need to know some things to look for in their next auto insurance provider. Always start off by making a list of things that are important to you; things that should be provided by the insurer to make your experience with them as pleasant as possible. If you are not sure what to look for or what additional expectations to have, read our suggestions below to help better explore your options.
Price
No customer wants to pay more for the same product that is offered elsewhere at a cheaper price. Often, a driver’s number one priority from an auto insurance company is to get the best price available when compared to another insurer. To make sure you’ve got the lowest price, you will need to shop around and compare what other insurers are offering to their customers. One convenient way to shop around is by using our site and entering in your information, which will then give you a list of price quotes from competing auto insurance companies in your local area. You can begin by entering your zip code on our Homepage.
Another way to guarantee you are getting the lowest price for your auto insurance is by making sure you are taking advantage of the discounts that are offered by your insurance provider. Each company has their own rules and limits on discount programs, so look for a company that offers a variety of ways to lower your insurance price. Some of these discounts include getting good grades, safety features on your vehicle, and attending specific driving courses. Most companies also have an accident forgiveness program that could save you from increasing rates should you be involved in an accident.
Customer Service
If you know that you want an excellent experience any time you make contact with your auto insurance company, always check into the prospective company’s customer service history. There are a few ways of doing this. First, during your selection process, you can call the companies you are considering and find out for yourself how they treat people over the phone with their questions. Do they treat you with respect even though you are not a customer? How do you think they would help you if you needed to file a claim in the future?
Second, you can check how their customer service rates by researching the Better Business Bureau or J.D. Power (jdpower.com). Both of these companies compile lists and information regarding other customer’s experiences with auto insurance companies. You could save yourself some headaches by knowing what other past and current customers think about different auto insurance companies you are considering to use.
Third, don’t hesitate to ask family and friends (and even friends of friends) who they use for their auto insurance and how they like the company. Try to find out how the company treated them when they were first purchasing a policy, when they changed their policy, when they filed a claim, when they had questions, etc. You will want to get a full understanding of their experience with their auto insurer so you can form a better opinion of the company’s customer service.
Financial Stability
In this weak economy with failing companies, it would be helpful to know which auto insurance companies are going to be around for a while to pay out any future claims you may make. Auto insurance companies need to have more money coming in to them (by the method of premium costs) than money going out (by paying filed claims). One way to check their financial status is through researching Weiss Ratings (weissratings.com) and A.M. Best (ambest.com). Much like the customer service review Websites, these Websites provide solid information on the likelihood of an auto insurance company paying out a claim.
These third party evaluations are not biased, compared to calling the auto insurance companies themselves and asking how their financial status is currently. Also, making sure these evaluating companies do not accept any forms of pay will keep their findings more truthful and a better way for you to compare the insurers and find the best one for you.
Convenience (close location, online bill pay, answers phone)
The convenience of an auto insurance company may also be a high expectation and help determine which company you want to use. Factors such as online bill pay, a close location, and even how many times the phone rings before it is answered can influence your decision. Any company, including auto insurance companies, should make themselves available to you and be absolutely convenient in every way. The more convenient and easy a company is to use, the more customers they will have.
An auto insurance company that is does not provide conveniences — no Website, far away, never answers the phone — should probably be dismissed as it would cause stress on your part when you do need to contact the company. Auto insurance is for your protection, and you should have every convenience offered to you.
Again, the best auto insurance company is based on matching your needs and expectations with the auto insurance company that provides the solutions. You will find that one company may be better suited for you, but someone else may disagree it’s the best choice for them. Thorough research will help you find your best company and give you a positive experience with auto insurance.
Monday, May 25, 2009
Car Insurance for the Classic or Modified Car
Knowing the type of coverage you need for your car insurance will help you in a couple of ways. First, by knowing what you need before you search for auto insurance, you will be better able to avoid overspending and purchasing coverage that wouldn’t benefit you. Second, you will be better prepared to know what you want as part of your coverage so you are better protected. Having the right coverage for a classic or modified car can be a little more complicated than finding coverage for a typical vehicle. There are a few details in auto insurance that are different for classic and modified cars compared to auto insurance for typical vehicles. Knowing these differences can help get your vehicle better protection and get you the right coverage.
These cars — classic cars and modified cars — are usually a hobby for the owners. Whether the owner spends time upgrading their car with turbos or simply loves to cruise the streets in their mint condition ‘67 Chevy, this is a way for these owners to relax and do something that brings them happiness. Unlike most hobbies, a form of auto insurance or financial responsibility is needed for these vehicles so owners can legally drive them around and fully enjoy the experience. Not only is this necessary for legal reasons, but auto insurance for these types of vehicles should be a priority for any driver to ensure they can get the cash value of the car should it be stolen or damaged.
Car Insurance for Modified Cars
The premium cost to insure a modified car will vary, depending on what kind of modifications the owner has made to the car after purchase. Why would the cost of insurance rise? Many insurers believe that certain types of modifications decrease the driver’s ability to handle and control the car. This lack of control will probably lead to an accident, and the insurer will then be processing and paying for a claim that is made by the driver of the modified car. Auto insurance companies try to stay ahead of the costs they predict could happen, and to do so, they raise their rates for persons with a higher level of risk.
Many changes that are done to the body of a car have little to no impact on the cost of its insurance. Painting the car or putting stickers or decals on it will probably not push the insurer to raise the insurance price. New wheels may also not increase the premium, unless they are substantially more expensive than the stock wheels. There is also the chance that a new stereo would make the premium cost fluctuate. Keep in mind, if those new wheels or stereo (or any new part to the car) are damaged or stolen, the insurance company is to repair or replace all of it. This is why they might charge you more for different car parts that modify the body of the vehicle.
Once the driver begins to think about modifying anything under the hood of the car, the owner can expect auto insurance cost to rise. Most modifications that are done under the hood will increase the speed and horsepower of the car. It doesn’t take too much intelligence to know that if a car has more speed and power than before, the driver will take advantage of it and drive faster. Auto insurance companies also know this (or predict it), and also know statistically when people drive faster, they are breaking the speed limit and put themselves and others at risk of an accident. While insurance companies are happy to provide insurance to most drivers, they are hoping the driver will never have a need to file a claim.
While most modifications made to a car aren’t noticeable from the outside, some drivers may be tempted to omit telling their auto insurance company about their changes in an effort to save money on their insurance cost. This is your choice, but it is not recommended. If the car is in an accident and there is no record of the changes, upgrades, new parts, etc, the auto insurance company will not be obligated to replace those parts. They will only replace your vehicle at its cash value, which will not include the money that was spent to upgrade the car, and the driver will lose money.
Car Insurance for Classic Cars
Surprisingly to some, auto insurance for classic cars is often cheaper than it is for regular vehicles. This is mostly due to the fact that classic cars are not a driver’s primary source of transportation and are driven far less. Also, these cars are usually kept locked in a storage facility of some kind, which keeps it much safer (and cheaper to insure) than if it was stored on a driveway. Auto insurance companies know most owners of classic cars are very careful in the way they treat their car and drive their car, and insurers reward drivers of this by keeping their insurance costs low.
Classic cars can be insured by specialized insurance companies if their auto insurance company will not insure their classic car. Most auto insurance companies will insure most vehicles, so check with the primary auto insurance company first to see if any discounts can be arranged for having more than one vehicle on a policy. When choosing a policy, look for a coverage known as Agreed Value Coverage for the classic car. Once the auto insurance company has acknowledged your vehicle as a classic car, you can purchase agreed value coverage and in the event the car is totaled or damaged, the owner will be paid the entire value of the amount that was insured.
All cars need auto insurance, whether they are minivans, modified, or classic. Most owners want to know they will be compensated for their loss if their car is damaged or stolen, and auto insurance is really one of the only ways to guarantee that. Be wise and talk to your auto insurance agent or company to know your options of insuring your modified or classic car.
These cars — classic cars and modified cars — are usually a hobby for the owners. Whether the owner spends time upgrading their car with turbos or simply loves to cruise the streets in their mint condition ‘67 Chevy, this is a way for these owners to relax and do something that brings them happiness. Unlike most hobbies, a form of auto insurance or financial responsibility is needed for these vehicles so owners can legally drive them around and fully enjoy the experience. Not only is this necessary for legal reasons, but auto insurance for these types of vehicles should be a priority for any driver to ensure they can get the cash value of the car should it be stolen or damaged.
Car Insurance for Modified Cars
The premium cost to insure a modified car will vary, depending on what kind of modifications the owner has made to the car after purchase. Why would the cost of insurance rise? Many insurers believe that certain types of modifications decrease the driver’s ability to handle and control the car. This lack of control will probably lead to an accident, and the insurer will then be processing and paying for a claim that is made by the driver of the modified car. Auto insurance companies try to stay ahead of the costs they predict could happen, and to do so, they raise their rates for persons with a higher level of risk.
Many changes that are done to the body of a car have little to no impact on the cost of its insurance. Painting the car or putting stickers or decals on it will probably not push the insurer to raise the insurance price. New wheels may also not increase the premium, unless they are substantially more expensive than the stock wheels. There is also the chance that a new stereo would make the premium cost fluctuate. Keep in mind, if those new wheels or stereo (or any new part to the car) are damaged or stolen, the insurance company is to repair or replace all of it. This is why they might charge you more for different car parts that modify the body of the vehicle.
Once the driver begins to think about modifying anything under the hood of the car, the owner can expect auto insurance cost to rise. Most modifications that are done under the hood will increase the speed and horsepower of the car. It doesn’t take too much intelligence to know that if a car has more speed and power than before, the driver will take advantage of it and drive faster. Auto insurance companies also know this (or predict it), and also know statistically when people drive faster, they are breaking the speed limit and put themselves and others at risk of an accident. While insurance companies are happy to provide insurance to most drivers, they are hoping the driver will never have a need to file a claim.
While most modifications made to a car aren’t noticeable from the outside, some drivers may be tempted to omit telling their auto insurance company about their changes in an effort to save money on their insurance cost. This is your choice, but it is not recommended. If the car is in an accident and there is no record of the changes, upgrades, new parts, etc, the auto insurance company will not be obligated to replace those parts. They will only replace your vehicle at its cash value, which will not include the money that was spent to upgrade the car, and the driver will lose money.
Car Insurance for Classic Cars
Surprisingly to some, auto insurance for classic cars is often cheaper than it is for regular vehicles. This is mostly due to the fact that classic cars are not a driver’s primary source of transportation and are driven far less. Also, these cars are usually kept locked in a storage facility of some kind, which keeps it much safer (and cheaper to insure) than if it was stored on a driveway. Auto insurance companies know most owners of classic cars are very careful in the way they treat their car and drive their car, and insurers reward drivers of this by keeping their insurance costs low.
Classic cars can be insured by specialized insurance companies if their auto insurance company will not insure their classic car. Most auto insurance companies will insure most vehicles, so check with the primary auto insurance company first to see if any discounts can be arranged for having more than one vehicle on a policy. When choosing a policy, look for a coverage known as Agreed Value Coverage for the classic car. Once the auto insurance company has acknowledged your vehicle as a classic car, you can purchase agreed value coverage and in the event the car is totaled or damaged, the owner will be paid the entire value of the amount that was insured.
All cars need auto insurance, whether they are minivans, modified, or classic. Most owners want to know they will be compensated for their loss if their car is damaged or stolen, and auto insurance is really one of the only ways to guarantee that. Be wise and talk to your auto insurance agent or company to know your options of insuring your modified or classic car.
Different Sections of an Auto Insurance Policy
Have you ever taken a closer look at the bulky envelope your auto insurance company sends you every time your policy renews? That packet of paper holds the details of your auto insurance policy and can be a lifesaver when you need to know those details to file a claim. If you haven’t taken the chance to review your policy on paper, make time to do so. Anyone who doesn’t have an auto insurance policy yet but is wanting to know more, read further as we explain the different parts of the auto insurance policy explanation packet. We’ll break down the parts and explain their purpose.
The first part of your insurance policy packet is the declarations page. This page lists the important factors of your policy, starting with information identifying the auto insurance company and the policyholder. The name of your auto insurance company should be listed, as well as their contact information should you ever need to get in touch with them. Not only will you find your insurer’s information, but you should be able to see your information as well. Your name, phone number, and address should be listed on the declarations page, showing you as the policyholder. Along with this information about you, your policy number should be listed too. Your policy number, which can be all numbers or a mix of numbers and letters, is the way the insurance company identifies you first on their records. This way, if two policyholders happen to have the same name, their information will not get confused and will stay private.
The next part of the declarations page names the types of coverage you purchased and the amount you purchased. Usually a detailed explanation of the coverage isn’t provided here, but you can ask your agent for the specific information or search our site for general information regarding that coverage. These may include bodily injury liability, property damage liability, and uninsured or underinsured motorist liability.
In reference to the cost of each coverage, that amount is the maximum amount, or limit, the auto insurance company will pay for an accident. It is these coverage amounts purchased that help decide how much your premium is going to be. One way to lower your premium is by lowering the limits of coverage you purchased. However, this gives you less protection and you may find yourself in the predicament of not having enough if an accident happens.
The deductible amount is also listed on the declarations page. This is the amount you agreed to pay to the auto insurance company when you file a claim to them. Deductible amounts are usually offered in the amounts of $100, $250, $500 and $1,000, but other options may be available from your insurer. The purpose of deductibles is, one, to show the insurer that you have experienced a loss that exceeds a certain amount, and two, to reduce the final cost the insurer is going to pay. To keep your premiums low, sign up for a deductible that is high, such as $500 or better yet, $1,000. Because you agree to pay more for your deductible, the auto insurance company lowers your premium cost.
Also on the declarations page is the policy period, stating exactly when the policy begins and the date it ends. Pay particular attention to the end date so you can renew your policy and not have a lapse in coverage. Almost all auto insurance companies offer to automatically renew your policy for you on that date so you will always have continuous coverage. If for some reason you want to cancel your policy (moving out of state, wanting a new insurer), you can cancel on that date before your policy renews, or you can cancel it at any time as long as your next insurance policy can begin on your cancel date.
After the declarations page is a section with actual contract language that will go over the details of the coverage you purchased, and the rights and responsibilities of the auto insurance company and of you, the policyholder. It’s common knowledge that auto insurance companies have the responsibility to pay for the coverage that was bought by the policyholder, but they also have rights that protect them from any scandalous activity, like insurance fraud. It is good to know both your rights as the policyholder and the insurer’s rights so any disreputable activity can be reported. Of course, if this “contract language” is too difficult to understand, review it with a lawyer or call the insurance company and have them explain the details.
There may be an additional section in your packet, known as the endorsement section. An endorsement is something that changes the policy, and those changes must be written somewhere in the contractual agreement. These endorsements expand the policyholder’s coverage in the policy and are made by the auto insurance company. Remember that any time you make a change to your policy, you are affecting the premium cost and your rates will change too. This section is beneficial since you may need to make a change to your policy before your policy ends and renews. For instance, your teenager may begin to drive in the middle of the policy and he needs to be added to the policy at this time. A quick call to your insurance agent or company and they will construct an endorsement that changes your policy, allowing your teenager to be covered. Your new rates will begin then as well.
One last thing included in your policy packet is your proof of insurance card. These cards will show any law enforcement officer that you are carrying auto insurance, which is a law in most states. They should be kept in your glove box or other safe place in your car so you always have them available.
Knowing the particulars of your auto insurance policy will make sure that you have the exact type of coverage you want, instead of wishfully thinking you have options when in reality you don’t. Go through the policy packet every time you get it to make sure nothing has been missed, and if you have any questions, contact your auto insurance company for better clarification.
The first part of your insurance policy packet is the declarations page. This page lists the important factors of your policy, starting with information identifying the auto insurance company and the policyholder. The name of your auto insurance company should be listed, as well as their contact information should you ever need to get in touch with them. Not only will you find your insurer’s information, but you should be able to see your information as well. Your name, phone number, and address should be listed on the declarations page, showing you as the policyholder. Along with this information about you, your policy number should be listed too. Your policy number, which can be all numbers or a mix of numbers and letters, is the way the insurance company identifies you first on their records. This way, if two policyholders happen to have the same name, their information will not get confused and will stay private.
The next part of the declarations page names the types of coverage you purchased and the amount you purchased. Usually a detailed explanation of the coverage isn’t provided here, but you can ask your agent for the specific information or search our site for general information regarding that coverage. These may include bodily injury liability, property damage liability, and uninsured or underinsured motorist liability.
In reference to the cost of each coverage, that amount is the maximum amount, or limit, the auto insurance company will pay for an accident. It is these coverage amounts purchased that help decide how much your premium is going to be. One way to lower your premium is by lowering the limits of coverage you purchased. However, this gives you less protection and you may find yourself in the predicament of not having enough if an accident happens.
The deductible amount is also listed on the declarations page. This is the amount you agreed to pay to the auto insurance company when you file a claim to them. Deductible amounts are usually offered in the amounts of $100, $250, $500 and $1,000, but other options may be available from your insurer. The purpose of deductibles is, one, to show the insurer that you have experienced a loss that exceeds a certain amount, and two, to reduce the final cost the insurer is going to pay. To keep your premiums low, sign up for a deductible that is high, such as $500 or better yet, $1,000. Because you agree to pay more for your deductible, the auto insurance company lowers your premium cost.
Also on the declarations page is the policy period, stating exactly when the policy begins and the date it ends. Pay particular attention to the end date so you can renew your policy and not have a lapse in coverage. Almost all auto insurance companies offer to automatically renew your policy for you on that date so you will always have continuous coverage. If for some reason you want to cancel your policy (moving out of state, wanting a new insurer), you can cancel on that date before your policy renews, or you can cancel it at any time as long as your next insurance policy can begin on your cancel date.
After the declarations page is a section with actual contract language that will go over the details of the coverage you purchased, and the rights and responsibilities of the auto insurance company and of you, the policyholder. It’s common knowledge that auto insurance companies have the responsibility to pay for the coverage that was bought by the policyholder, but they also have rights that protect them from any scandalous activity, like insurance fraud. It is good to know both your rights as the policyholder and the insurer’s rights so any disreputable activity can be reported. Of course, if this “contract language” is too difficult to understand, review it with a lawyer or call the insurance company and have them explain the details.
There may be an additional section in your packet, known as the endorsement section. An endorsement is something that changes the policy, and those changes must be written somewhere in the contractual agreement. These endorsements expand the policyholder’s coverage in the policy and are made by the auto insurance company. Remember that any time you make a change to your policy, you are affecting the premium cost and your rates will change too. This section is beneficial since you may need to make a change to your policy before your policy ends and renews. For instance, your teenager may begin to drive in the middle of the policy and he needs to be added to the policy at this time. A quick call to your insurance agent or company and they will construct an endorsement that changes your policy, allowing your teenager to be covered. Your new rates will begin then as well.
One last thing included in your policy packet is your proof of insurance card. These cards will show any law enforcement officer that you are carrying auto insurance, which is a law in most states. They should be kept in your glove box or other safe place in your car so you always have them available.
Knowing the particulars of your auto insurance policy will make sure that you have the exact type of coverage you want, instead of wishfully thinking you have options when in reality you don’t. Go through the policy packet every time you get it to make sure nothing has been missed, and if you have any questions, contact your auto insurance company for better clarification.
Is Your Auto Insurance Company Rated?
Several national rating institutions rate insurance companies. Do coverages, rates, and service vary from company to company? Why can you pay less with one company than another can for the same coverages? Choosing the best insurance company for you is a crucial financial decision. Does your insurance company have the financial strength to safeguard you and your family? If the company cannot pay future claims or benefits, other issues become far less relevant. Financial strength ratings are an analysis of a wide variety of risks that could affect an insurance company's long-term viability. Insurance companies have failed or ceased to operate due to inadequate financial strength, competitive forces, or changing dynamics in the marketplace.
Standard & Poor's Ratings (http://www.standardandpoors.com)Financial strength ratings of insurance companies, plus detailed financial Insurer Profiles on nearly 4,000 companies.
Fitch Ratings (http://www.fitchratings.com) Financial strength ratings of insurance companies.
Have you heard of the company where you are considering purchasing coverage? Do you have any experience with the company?
Ask your peers what experiences they have had. What is your sense of the reputation of the company? How quickly and easily are claims processed? Is there 24-hour claims service? Is the claims management in the house of the insurance company or have they outsourced? Auto insurance is meant to make you whole in the case of an accident with injury or property damage. It is to protect your assets and protect you from liability. You will want the peace of mind of a superior rated company when it comes time to manage and pay the claim. The financial health of a car insurance company is an often-overlooked area when shopping for the best auto insurance rate. It is human nature to make your comparison solely on the rates for the coverages. While this is certainly important, you should be aware of the company's overall rating and level of satisfaction. Consulting insurance company ratings is crucial. Each insurance company issues a quarterly report that is publicly accessible. You cannot always tell the future from the past. However, the past performance is a valuable insight into what expectation to have for your future coverage. One of the factors that are used in order to determine the companies' ratings is how long they have been in business. If there is no history, you may be taking an unnecessary chance. Look for a company that has a history and make sure that history shows good performance.
What about the reputation of the insurance company? It is very simple to find this information. Just ask around. There are your peers, the BBB, and family. Many times these resources closest to you will be able to share experiences that are favorable or unfavorable regarding the company you are considering. In addition, each state has a Department of Insurance that keeps public information about companies. Use all the resources you can to determine which company is best for you. Once you have paid for the policy, you will then become keenly interested in customer service. Be aware of what the source of information is regarding the insurance company. Many companies put our information about themselves in the form of illustrations that are intended to make them look as good as possible. Of course, while these illustrations must be factual, you should be aware that you are not receiving objective information.
How can you quickly check the company rating? You are on the internet now. Surely, there is a quick way.
Go to http://www.carinsurance.com. Not only will you get the rates of various insurance companies, you will see the A.M. Best rating for each company along side their rates for you personal situation.
Now is the time for your fingers to punch their way to a quick rate analysis and view the ratings at the same time.
Standard & Poor's Ratings (http://www.standardandpoors.com)Financial strength ratings of insurance companies, plus detailed financial Insurer Profiles on nearly 4,000 companies.
Fitch Ratings (http://www.fitchratings.com) Financial strength ratings of insurance companies.
Have you heard of the company where you are considering purchasing coverage? Do you have any experience with the company?
Ask your peers what experiences they have had. What is your sense of the reputation of the company? How quickly and easily are claims processed? Is there 24-hour claims service? Is the claims management in the house of the insurance company or have they outsourced? Auto insurance is meant to make you whole in the case of an accident with injury or property damage. It is to protect your assets and protect you from liability. You will want the peace of mind of a superior rated company when it comes time to manage and pay the claim. The financial health of a car insurance company is an often-overlooked area when shopping for the best auto insurance rate. It is human nature to make your comparison solely on the rates for the coverages. While this is certainly important, you should be aware of the company's overall rating and level of satisfaction. Consulting insurance company ratings is crucial. Each insurance company issues a quarterly report that is publicly accessible. You cannot always tell the future from the past. However, the past performance is a valuable insight into what expectation to have for your future coverage. One of the factors that are used in order to determine the companies' ratings is how long they have been in business. If there is no history, you may be taking an unnecessary chance. Look for a company that has a history and make sure that history shows good performance.
What about the reputation of the insurance company? It is very simple to find this information. Just ask around. There are your peers, the BBB, and family. Many times these resources closest to you will be able to share experiences that are favorable or unfavorable regarding the company you are considering. In addition, each state has a Department of Insurance that keeps public information about companies. Use all the resources you can to determine which company is best for you. Once you have paid for the policy, you will then become keenly interested in customer service. Be aware of what the source of information is regarding the insurance company. Many companies put our information about themselves in the form of illustrations that are intended to make them look as good as possible. Of course, while these illustrations must be factual, you should be aware that you are not receiving objective information.
How can you quickly check the company rating? You are on the internet now. Surely, there is a quick way.
Go to http://www.carinsurance.com. Not only will you get the rates of various insurance companies, you will see the A.M. Best rating for each company along side their rates for you personal situation.
Now is the time for your fingers to punch their way to a quick rate analysis and view the ratings at the same time.
Thursday, May 21, 2009
Why YOU Need Auto Insurance?
Do you really think you can get by without auto insurance? If you don’t own a car and will never drive, then yes. You have no real reason to purchase auto insurance. However, since you are here, there’s a really good chance you are new to auto insurance and are looking to purchase your first policy, or you have an existing policy but you are ready to switch companies for a new policy, or you are simply trying to learn more about auto insurance. We can help you with all three, but right now we will prove why all drivers need auto insurance in the first place.
#1 - It’s the law
That’s right, folks. By law every driver is required to carry auto insurance or another form of financial responsibility in almost every state. The law is designed to protect drivers from being forced to pay for someone else’s mistake, which means essentially it is protecting you from having to pay for damages made to your car by another driver’s negligent driving.
The specific requirements vary from state to state, but almost every state requires a minimum amount of bodily injury liability and property damage liability. These two coverages will pay for the damages you make to another person’s car, property, and/or body as part of your negligent driving. The amount you purchase will be the limit of what the insurance company will pay out to the other party on behalf of you after you have filed the claim, which may include any death expenses. Make sure to purchase enough of both bodily injury liability per person and per accident, as well as enough property damage liability. Any remaining balance after the insurance has taken care of their part will be turned over to you, which you must pay for out of your own pockets.
#2 - It’ll pay off when you make a claim
Carrying auto insurance will not only give you peace of mind as you or members of your policy drive around town, but paying regularly for auto insurance will literally pay off should you ever need to make a claim. The cost to repair vehicles, or especially to replace them should they be totaled, is quite expensive due to the high cost of cars these days. Knowing you can rely on your auto insurance company to pay for these expenses can ease the stress that is felt after an accident.
Not only can your auto insurance policy pay for the damages you cause to another person’s property, but with the right coverage purchased, your auto insurance policy can also cover the damages that come upon your vehicle, whether you were at fault for the accident or not. Note, however, that in purchasing only the state minimum requirements, your vehicle and injuries will not be covered by your insurer.
#3 - It can help with medical bills
Even if you have access to decent health insurance, you should be aware that auto insurance companies offer ways to also provide medical bill assistance. Coverage options known as medical payment (med pay) and personal injury protection can pay for the medical bills that are a result of the accident. One perk of med pay is it will cover chiropractor costs, when regular health insurance usually won’t. Both med pay and personal injury protection are worth considering, especially if you are a regular driver of a carpool group. Personal injury protection will cover the medical expenses of your passengers, whether or not they are members of your policy, up to the amount you have purchased, and so will pedestrians that have been hit by your car.
#4 - Comprehensive and collision are required by your loan/lease company
Any time a vehicle is not 100% owned by the driver, but is under a loan or lease, the driver will be required by the loan or lease company to carry comprehensive and collision coverage on their auto insurance policy. This is so the company will be paid their money in full even if the vehicle has been damaged or stolen.
Because newer vehicles lose their value quickly, there tends to be a gap between the amount owed for the vehicle and the cash value of the car. If the car is damaged or stolen and the insurance company only pays the cash value, which happens to be less than the owed amount at the time, the remaining balance is to be paid by the driver (or the name carrying the loan). A coverage called GAP insurance will cover this balance so the driver isn’t paying out of pocket for the difference.
#5 - Get financially protected from drivers who fail to carry auto insurance
Another reason to get auto insurance is because there are drivers out there who refuse to carry any auto insurance or a small amount. Consider a coverage option known as uninsured or underinsured motorist liability is a possible candidate for your auto insurance policy. By purchasing, your auto insurance company agrees to pay for certain damages or injuries that are caused by another driver who carries little to no auto insurance. Sure, you could try to sue the driver for damages, but if they don’t have any money or assets, you won’t be seeing much money from them and you will be left paying the bill when it was their mistake.
If you are tempted to try to get away without having auto insurance, think twice, and then think a little more. More and more State Departments of Transportation and Motor Vehicle Divisions are using databases that keep track of driver’s auto insurance policies, such as when they expire and get renewed. Auto insurance companies notify these departments when a policyholder has canceled, and if another company does not notify the departments with a new policy for that person, the departments go after them to find out why they no longer have auto insurance. It is also required to show proof of insurance to a police officer when in an accident, and sometimes officers ask for your proof when pulled over for a traffic ticket.
Consequences for not having auto insurance can get expensive and brutal. The first offense usually includes a fine of a few hundred dollars and the suspension of the vehicle’s registration or the driver’s license. Repeat offenders see heftier fines and possible jail time.
#1 - It’s the law
That’s right, folks. By law every driver is required to carry auto insurance or another form of financial responsibility in almost every state. The law is designed to protect drivers from being forced to pay for someone else’s mistake, which means essentially it is protecting you from having to pay for damages made to your car by another driver’s negligent driving.
The specific requirements vary from state to state, but almost every state requires a minimum amount of bodily injury liability and property damage liability. These two coverages will pay for the damages you make to another person’s car, property, and/or body as part of your negligent driving. The amount you purchase will be the limit of what the insurance company will pay out to the other party on behalf of you after you have filed the claim, which may include any death expenses. Make sure to purchase enough of both bodily injury liability per person and per accident, as well as enough property damage liability. Any remaining balance after the insurance has taken care of their part will be turned over to you, which you must pay for out of your own pockets.
#2 - It’ll pay off when you make a claim
Carrying auto insurance will not only give you peace of mind as you or members of your policy drive around town, but paying regularly for auto insurance will literally pay off should you ever need to make a claim. The cost to repair vehicles, or especially to replace them should they be totaled, is quite expensive due to the high cost of cars these days. Knowing you can rely on your auto insurance company to pay for these expenses can ease the stress that is felt after an accident.
Not only can your auto insurance policy pay for the damages you cause to another person’s property, but with the right coverage purchased, your auto insurance policy can also cover the damages that come upon your vehicle, whether you were at fault for the accident or not. Note, however, that in purchasing only the state minimum requirements, your vehicle and injuries will not be covered by your insurer.
#3 - It can help with medical bills
Even if you have access to decent health insurance, you should be aware that auto insurance companies offer ways to also provide medical bill assistance. Coverage options known as medical payment (med pay) and personal injury protection can pay for the medical bills that are a result of the accident. One perk of med pay is it will cover chiropractor costs, when regular health insurance usually won’t. Both med pay and personal injury protection are worth considering, especially if you are a regular driver of a carpool group. Personal injury protection will cover the medical expenses of your passengers, whether or not they are members of your policy, up to the amount you have purchased, and so will pedestrians that have been hit by your car.
#4 - Comprehensive and collision are required by your loan/lease company
Any time a vehicle is not 100% owned by the driver, but is under a loan or lease, the driver will be required by the loan or lease company to carry comprehensive and collision coverage on their auto insurance policy. This is so the company will be paid their money in full even if the vehicle has been damaged or stolen.
Because newer vehicles lose their value quickly, there tends to be a gap between the amount owed for the vehicle and the cash value of the car. If the car is damaged or stolen and the insurance company only pays the cash value, which happens to be less than the owed amount at the time, the remaining balance is to be paid by the driver (or the name carrying the loan). A coverage called GAP insurance will cover this balance so the driver isn’t paying out of pocket for the difference.
#5 - Get financially protected from drivers who fail to carry auto insurance
Another reason to get auto insurance is because there are drivers out there who refuse to carry any auto insurance or a small amount. Consider a coverage option known as uninsured or underinsured motorist liability is a possible candidate for your auto insurance policy. By purchasing, your auto insurance company agrees to pay for certain damages or injuries that are caused by another driver who carries little to no auto insurance. Sure, you could try to sue the driver for damages, but if they don’t have any money or assets, you won’t be seeing much money from them and you will be left paying the bill when it was their mistake.
If you are tempted to try to get away without having auto insurance, think twice, and then think a little more. More and more State Departments of Transportation and Motor Vehicle Divisions are using databases that keep track of driver’s auto insurance policies, such as when they expire and get renewed. Auto insurance companies notify these departments when a policyholder has canceled, and if another company does not notify the departments with a new policy for that person, the departments go after them to find out why they no longer have auto insurance. It is also required to show proof of insurance to a police officer when in an accident, and sometimes officers ask for your proof when pulled over for a traffic ticket.
Consequences for not having auto insurance can get expensive and brutal. The first offense usually includes a fine of a few hundred dollars and the suspension of the vehicle’s registration or the driver’s license. Repeat offenders see heftier fines and possible jail time.
Which Cars Keep Your Insurance Rates Affordable
Do you consider the cost of insurance before you buy your dream car? You should. The Highway Loss Data Institute (HLDI) analyzes the cost to insurance companies from theft, collision, and injury claims as they relate to cars. They look at the color of the cars, how many doors they have, and even break them down type.
The Highway Loss Data Institute is a nonprofit public service organization. It is closely associated with and funded through the Insurance Institute for Highway Safety, which is wholly supported by auto insurers. HLDI gathers, processes, and publishes data on the ways losses vary among different kinds of vehicles.
Four door cars have a 93% less chance of having a claim related to theft than their sibling 2-Door cars. Buy a Buick LeSabre and have relatively no chance of a theft loss. Compare that to the convertible Chevrolet Corvette that has over 5 times the average theft rate. You may have known that. However, did you know that the Toyota Celica has a 67% higher chance of theft than the Toyota Camry?
One of the factors that come into play with insurance claims is the cost of repairing a vehicle and the safety features a vehicle has that can keep down the bodily injury claims. To find out which cars are considered “Top Safety Picks” you can check with the Insurance Institute for Highway Safety (IIHS).
The IIHS top safety picks category recognizes vehicles that do the best job of protecting people in front, side, and rear crashes based on good ratings in Institute tests. Winners also have to have electronic stability control (ESC), which research shows significantly reduces crash risk. Crash tests like the ones conducted by the IIHS have driven major improvements in the designs of all kinds and sizes of passenger vehicles and thus making cars safer for motorists.
The IIHS’s list of top picks for safety performance is something to check out when going to buy a car so that you can see not only if your car is rated in crash tests but what kind of damages are done to give you an idea of insurance. Each year the IIHS releases their information which is available to the public. As a motorist searching for the right car to keep insurance costs down, keep in mind that the more damage that is done is a crash, low impact to high, the likelihood insurance rates will be higher since the insurer knows it will cost more to repair that vehicle.
You may be surprised at some of the results. For example, the Porsche 911 has a 67% less chance for injury claims than the norm. Go figure. The Mitsubishi Lancer has almost double the injury claim rate over the norm.
Where does your car fit for injury theft and collision? What about your dream car? You need to check out the latest statistics on theft for a vehicle before choosing a car to buy. There are various sources you can search to find the most common vehicles stolen. One source is the National Insurance Crime Bureau (NICB) which has studies showing the top 10 stolen vehicles in each state. While the list of top vehicles stolen may change each year there are some vehicles we continue to see on the list and are continual favorites of thieves. These cars include the:
* Honda Accord
* Toyota Camry
* Ford F-150
* Acura Integra
* Nissan Sentra
* Toyota Corolla
* Toyota Pickups
Then the list of ones that have the most expensive theft claims include such vehicles as the:
* Cadillac Escalade
* Chevrolet Corvette Convertible
* Lincoln Navigator
Vehicles with the least expensive theft claims include some of the following and as you may notice some are older vehicles:
* Buick LeSabre
* Volvo V70 Station Wagon
* Mercury Grand Marquis 4-four
The NICB encourages everyone to follow what it calls a "layered approach" to auto theft protection by employing simple, low-cost suggestions to make vehicles less attractive to thieves. The four layers include common sense, a warning device, an immobilizing device, and a tracking device.
The Highway Loss Data Institute gives information on what vehicles have the most and least expensive claims for injury and collision claims. According to HLDI, the lowest injury claims are from large vehicles - cars, pickup trucks, and sport utility vehicles (SUVs). Small two and four door cars have the highest injury claims. Small cars also are among the highest in collision costs, along with sports cars.
Models in recent years that have had some of the most expensive claims for injuries include:
* Suzuki Esteem 4-door
* Kia Rio 4-door
* Mitsubishi Mirage 2-door
* Kia Spectra 4-doors
* Vehicle Models with some of the least expensive injury claims include:
* GMC Sierra 2500 2-wheel and 4 wheel drives
* Chevrolet Silverado
* GMC Yukon XL 1500 4-wheel
* Chevy Tahoe 2-wheel
Models that are among the least expensive for collision claims include:
* Ford Excursion 2-wheel drive
* GMC 2500
* GMC Safari 4-wheel drive
* GMC Yukon XL 1500 4-wheel drive
* Vehicles that are most expensive for collision claims include:
* Subaru Impreza WRX 4-wheel drive 4-door
* Lexus IS 300 4-door
* Porsche 911 coupe
* Acura RSX
As you can see the cars on the list for having expensive collision claims include many sporty or high performance vehicles. Insuring a high-performance car can easily cost two or three times the insurance amount for an ordinary model due to the high cost of repairs if they are damaged.
If you have the time and energy to do research on theft rates, cost of collision claims and bodily injury claims on a vehicle you can determine what the most affordable car is to insure for your needs. If you do not have this time than you can research the lists that come out each year or so from sources such as the IIHS, HLDI and NHTSA on the most and least expensive vehicles to insure where they take into account many factors such as the ones we mentioned. The lists can vary since the statistics and reporting tools they use in their research vary.
Typically when one is going to buy a car they have an idea of what type of vehicle they want - sedan, SUV, truck, sports car, etc - and one easy and efficient way to decide on the vehicle that will be affordable to you is to figure out what class of vehicle you want and then narrow done your choice to few models. You then can check the research to make sure they are not on the “worst” list for theft, claims, etc. In addition, maybe with luck they will be on the “best” lists. If not they may fall in between which is fine if the car is going to suit your needs the best.
Once your choice is narrowed down to a few vehicles to find out which is the most affordable of these vehicle to insure, just simply get online and search for auto insurance quotes on the various vehicles. Insurance companies or Insurance Marketplaces, such as CarInsurance.com, will allow you to get as many quotes as you need to determine which vehicle you thinking of purchasing is the most affordable. Once you decide on a car to buy it is easy to then just to go ahead and purchase your insurance policy online.
The Highway Loss Data Institute is a nonprofit public service organization. It is closely associated with and funded through the Insurance Institute for Highway Safety, which is wholly supported by auto insurers. HLDI gathers, processes, and publishes data on the ways losses vary among different kinds of vehicles.
Four door cars have a 93% less chance of having a claim related to theft than their sibling 2-Door cars. Buy a Buick LeSabre and have relatively no chance of a theft loss. Compare that to the convertible Chevrolet Corvette that has over 5 times the average theft rate. You may have known that. However, did you know that the Toyota Celica has a 67% higher chance of theft than the Toyota Camry?
One of the factors that come into play with insurance claims is the cost of repairing a vehicle and the safety features a vehicle has that can keep down the bodily injury claims. To find out which cars are considered “Top Safety Picks” you can check with the Insurance Institute for Highway Safety (IIHS).
The IIHS top safety picks category recognizes vehicles that do the best job of protecting people in front, side, and rear crashes based on good ratings in Institute tests. Winners also have to have electronic stability control (ESC), which research shows significantly reduces crash risk. Crash tests like the ones conducted by the IIHS have driven major improvements in the designs of all kinds and sizes of passenger vehicles and thus making cars safer for motorists.
The IIHS’s list of top picks for safety performance is something to check out when going to buy a car so that you can see not only if your car is rated in crash tests but what kind of damages are done to give you an idea of insurance. Each year the IIHS releases their information which is available to the public. As a motorist searching for the right car to keep insurance costs down, keep in mind that the more damage that is done is a crash, low impact to high, the likelihood insurance rates will be higher since the insurer knows it will cost more to repair that vehicle.
You may be surprised at some of the results. For example, the Porsche 911 has a 67% less chance for injury claims than the norm. Go figure. The Mitsubishi Lancer has almost double the injury claim rate over the norm.
Where does your car fit for injury theft and collision? What about your dream car? You need to check out the latest statistics on theft for a vehicle before choosing a car to buy. There are various sources you can search to find the most common vehicles stolen. One source is the National Insurance Crime Bureau (NICB) which has studies showing the top 10 stolen vehicles in each state. While the list of top vehicles stolen may change each year there are some vehicles we continue to see on the list and are continual favorites of thieves. These cars include the:
* Honda Accord
* Toyota Camry
* Ford F-150
* Acura Integra
* Nissan Sentra
* Toyota Corolla
* Toyota Pickups
Then the list of ones that have the most expensive theft claims include such vehicles as the:
* Cadillac Escalade
* Chevrolet Corvette Convertible
* Lincoln Navigator
Vehicles with the least expensive theft claims include some of the following and as you may notice some are older vehicles:
* Buick LeSabre
* Volvo V70 Station Wagon
* Mercury Grand Marquis 4-four
The NICB encourages everyone to follow what it calls a "layered approach" to auto theft protection by employing simple, low-cost suggestions to make vehicles less attractive to thieves. The four layers include common sense, a warning device, an immobilizing device, and a tracking device.
The Highway Loss Data Institute gives information on what vehicles have the most and least expensive claims for injury and collision claims. According to HLDI, the lowest injury claims are from large vehicles - cars, pickup trucks, and sport utility vehicles (SUVs). Small two and four door cars have the highest injury claims. Small cars also are among the highest in collision costs, along with sports cars.
Models in recent years that have had some of the most expensive claims for injuries include:
* Suzuki Esteem 4-door
* Kia Rio 4-door
* Mitsubishi Mirage 2-door
* Kia Spectra 4-doors
* Vehicle Models with some of the least expensive injury claims include:
* GMC Sierra 2500 2-wheel and 4 wheel drives
* Chevrolet Silverado
* GMC Yukon XL 1500 4-wheel
* Chevy Tahoe 2-wheel
Models that are among the least expensive for collision claims include:
* Ford Excursion 2-wheel drive
* GMC 2500
* GMC Safari 4-wheel drive
* GMC Yukon XL 1500 4-wheel drive
* Vehicles that are most expensive for collision claims include:
* Subaru Impreza WRX 4-wheel drive 4-door
* Lexus IS 300 4-door
* Porsche 911 coupe
* Acura RSX
As you can see the cars on the list for having expensive collision claims include many sporty or high performance vehicles. Insuring a high-performance car can easily cost two or three times the insurance amount for an ordinary model due to the high cost of repairs if they are damaged.
If you have the time and energy to do research on theft rates, cost of collision claims and bodily injury claims on a vehicle you can determine what the most affordable car is to insure for your needs. If you do not have this time than you can research the lists that come out each year or so from sources such as the IIHS, HLDI and NHTSA on the most and least expensive vehicles to insure where they take into account many factors such as the ones we mentioned. The lists can vary since the statistics and reporting tools they use in their research vary.
Typically when one is going to buy a car they have an idea of what type of vehicle they want - sedan, SUV, truck, sports car, etc - and one easy and efficient way to decide on the vehicle that will be affordable to you is to figure out what class of vehicle you want and then narrow done your choice to few models. You then can check the research to make sure they are not on the “worst” list for theft, claims, etc. In addition, maybe with luck they will be on the “best” lists. If not they may fall in between which is fine if the car is going to suit your needs the best.
Once your choice is narrowed down to a few vehicles to find out which is the most affordable of these vehicle to insure, just simply get online and search for auto insurance quotes on the various vehicles. Insurance companies or Insurance Marketplaces, such as CarInsurance.com, will allow you to get as many quotes as you need to determine which vehicle you thinking of purchasing is the most affordable. Once you decide on a car to buy it is easy to then just to go ahead and purchase your insurance policy online.
Wednesday, May 20, 2009
8 Teen Auto Insurance Mistakes
Do you have a teenager who drives, or one who will soon? Then you'll probably find out that adding a teen to your car insurance policy is sort of like balancing a valuable vase on a tiger's head: it'll probably end in an accident, and it'll probably be expensive. (Lesson number one: don't balance vases on tigers.)
The bad news: you have a teenager eager to get behind the wheel – and recent RateWatch data shows that adding a teen driver to your auto insurance policy costs over $2,000 a year on average.
The good news: auto insurance rates are coming down, so this is the perfect time to shop for policy savings. It can cost even less if you manage to…
Avoid some of these common mistakes
1. Let your kid get bad grades.
Were you aware that a "good student" discount could take as much as 10–15% off the price of your car insurance policy? You are now. Some parents pay their children to maintain a B average or better; this discount will have your children paying you instead.
2. Buy a new car for your child.
All of those safety features will get you auto insurance discounts, right? They might, but it costs more to insure a new car – for you and your teen. Find a safe, used car and save on car payments and insurance.
3. Skip in-car driver training with your kid.
Let the driving school do it. Right parents? I mean, that's why you pay them the money! Not so. No matter what your state legally requires, the more time you spend in the car teaching your teenager to drive, the better.
4. Don't set a curfew.
Part of raising a child is letting them take responsibility, so there's no reason to impose limits. Well, not exactly. Even if your city doesn't have a curfew for teen drivers, you should consider it. Statistics show that teenage driving deaths rise dramatically from 9 pm to 6 am. And if you remember your own youth, you'll agree that there's no good reason for teens to plan trips past 9–10 pm.
5. Don't worry about packing the car with friends and distractions.
The most common cause of teen accidents is driver distraction – either from a car full of friends or a cell phone that's blowing up. It gets even worse with loud music, texting and taking pictures with a cell phone.
6. Speed, drink and don't wear your seatbelt.
It amounts to telling your teen the law is optional. If your child gets a ticket, restrict access to the car. If it's something serious – like a DUI – take away their driving privileges.
7. Lower your deductibles or keep them the same.
A low deductible means your auto insurance company will pay more if there's an accident. Raise it, and you could knock a lot off your premium. Dropping collision coverage on your teen's car can also save money. Just remember that you'll have to pay more for repairs in both cases, so calculate your savings before making the switch.
8. Make one of the other seven mistakes.
(Just kidding.)
8. Let your teenager drive a small, old car.
If you saw mistake number two and thought you could avoid it by getting your teen an older compact car, you're probably wrong. If it's not a safe car, you won't qualify for safety discounts.
9. You said there were only eight mistakes!
Well, I lied. That's right; I said it: I lied. I'll let you in on a little secret: there are probably way more than nine, or even ten! But do you know the biggest one of all? (Drum roll, please.) Not shopping around to compare rates! Insurance.com data shows the average difference between the highest quote for adding a teen and the lowest quote is over $2,000 a year. Failing to compare auto insurance rates can be a very expensive mistake.
The bad news: you have a teenager eager to get behind the wheel – and recent RateWatch data shows that adding a teen driver to your auto insurance policy costs over $2,000 a year on average.
The good news: auto insurance rates are coming down, so this is the perfect time to shop for policy savings. It can cost even less if you manage to…
Avoid some of these common mistakes
1. Let your kid get bad grades.
Were you aware that a "good student" discount could take as much as 10–15% off the price of your car insurance policy? You are now. Some parents pay their children to maintain a B average or better; this discount will have your children paying you instead.
2. Buy a new car for your child.
All of those safety features will get you auto insurance discounts, right? They might, but it costs more to insure a new car – for you and your teen. Find a safe, used car and save on car payments and insurance.
3. Skip in-car driver training with your kid.
Let the driving school do it. Right parents? I mean, that's why you pay them the money! Not so. No matter what your state legally requires, the more time you spend in the car teaching your teenager to drive, the better.
4. Don't set a curfew.
Part of raising a child is letting them take responsibility, so there's no reason to impose limits. Well, not exactly. Even if your city doesn't have a curfew for teen drivers, you should consider it. Statistics show that teenage driving deaths rise dramatically from 9 pm to 6 am. And if you remember your own youth, you'll agree that there's no good reason for teens to plan trips past 9–10 pm.
5. Don't worry about packing the car with friends and distractions.
The most common cause of teen accidents is driver distraction – either from a car full of friends or a cell phone that's blowing up. It gets even worse with loud music, texting and taking pictures with a cell phone.
6. Speed, drink and don't wear your seatbelt.
It amounts to telling your teen the law is optional. If your child gets a ticket, restrict access to the car. If it's something serious – like a DUI – take away their driving privileges.
7. Lower your deductibles or keep them the same.
A low deductible means your auto insurance company will pay more if there's an accident. Raise it, and you could knock a lot off your premium. Dropping collision coverage on your teen's car can also save money. Just remember that you'll have to pay more for repairs in both cases, so calculate your savings before making the switch.
8. Make one of the other seven mistakes.
(Just kidding.)
8. Let your teenager drive a small, old car.
If you saw mistake number two and thought you could avoid it by getting your teen an older compact car, you're probably wrong. If it's not a safe car, you won't qualify for safety discounts.
9. You said there were only eight mistakes!
Well, I lied. That's right; I said it: I lied. I'll let you in on a little secret: there are probably way more than nine, or even ten! But do you know the biggest one of all? (Drum roll, please.) Not shopping around to compare rates! Insurance.com data shows the average difference between the highest quote for adding a teen and the lowest quote is over $2,000 a year. Failing to compare auto insurance rates can be a very expensive mistake.
Your 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.
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.
How to Purchase Auto Insurance with a Suspended License
It is pretty well known that most states require all drivers to carry some form of financial responsibility to pay for any damages they may cause while driving. A popular form of this financial responsibility is auto insurance, and states have a given minimum requirement of auto insurance for all drivers to carry. This requirement involves the types of coverage that must be purchased, along with the minimal monetary amount that each coverage must have.
Failing to carry auto insurance will result in the notification to your state’s transportation department and penalties will be issued. A state can be notified when a driver isn’t carrying auto insurance, either by an insurance company telling the state a person hasn’t renewed their auto insurance policy or by a traffic officer reporting the absence of proof of insurance when completing a traffic stop. Many officers now request your insurance card in addition to your license and vehicle registration. Penalties for not having auto insurance range from fines and the suspension of your driver’s license and/or vehicle registration to very expensive fines and jail time, all of which depends on how many times you have previously committed this crime.
If you have found yourself in this situation, where your driver’s license has been suspended because of a lack of auto insurance, we can offer some suggestions on what you can do to find a great auto insurance policy as well as reinstate your driver’s license. It may be a question of where to begin or how to approach your situation, but your condition can improve if you work hard and become dedicated to keeping the laws about carrying auto insurance now and through the future.
You will not be able to reinstate your driver’s license until you have proof of auto insurance, so the first step would be to find an insurer who is willing to work with you at this difficult time. You can try to use our auto insurance search by entering in your zip code and honestly answering the remaining questions regarding your driving history and vehicle you drive, but in the end they may not offer you auto insurance over the Internet and will want to speak directly to you to work with you more effectively. If anything, this method of searching for an auto insurance company will at least provide to you a list of local auto insurance companies that you can contact on your own.
Contacting auto insurance companies to get auto insurance when you have a suspended driver’s license needs to be done with a lot of patience on your part. Keep in mind that auto insurance companies provide insurance hoping the driver will not need to make many claims. They base their rates and whether or not they will provide insurance to a particular driver on the driver’s level of risk of making a claim. Being found without auto insurance while involved in getting a traffic ticket or an accident puts you at a higher risk level in the insurer’s point of view, so don’t expect to see any cheap premiums coming your way at first.
When it comes to the price of your premium, allow the auto insurance agent to explain their policies on providing insurance to someone of high risk. They may expect you to pay a high rate for a certain time period, but if you have demonstrated safe driving during that time period by not receiving any traffic tickets or being involved in any accidents while maintaining your auto insurance policy, your rates may begin to decrease. If the insurance agent does not mention this, politely ask if they follow this pattern.
If by chance the first auto insurance company offers to provide insurance to you, perhaps you should opt to tell them you will think about it and call the next auto insurance company to see what they will provide to you. Not all insurance companies offer the exact same price for auto insurance policies, and you could still find something that may be slightly cheaper. Knowing what each auto insurance company is willing to provide for you will help you make a better decision in the long run, as opposed to just picking a random company and going along with what they have to say. Remember to stay patient as you search.
When you have found a policy that suits you best, purchase it and request proof of insurance immediately. Usually the court of law only gives you a small window of time to get auto insurance before they instill another penalty upon you for lack of auto insurance. The quicker you resolve this issue, the better. You can take your proof of insurance card to the courthouse (or other location if it’s recommended) to show the judge, who will then lift the suspension of your driver’s license. If the suspension of your vehicle’s registration was part of your punishment, this will be lifted too. You can then reinstate your license (and registration) by paying a fee, and be prepared for this fee to around $100, if not more.
As you can see, this process is timely and can be stressful with all of the necessary contacting of auto insurance companies, waiting to get auto insurance and the proof that you have it, and then dealing again with the courts and fees it takes to get everything situated to how it needs to be to drive legally. When it is time to renew your auto insurance policy, do not procrastinate or allow the auto insurance company to automatically renew it for you. Do not be late in paying for your premium, whether it is done as monthly payments or at the beginning of the policy in full. If you have difficulties remembering to pay your bills on time, ask the auto insurance company if they have automatic billing programs, where they will bill your bank account directly without any work on your part.
Failing to carry auto insurance will result in the notification to your state’s transportation department and penalties will be issued. A state can be notified when a driver isn’t carrying auto insurance, either by an insurance company telling the state a person hasn’t renewed their auto insurance policy or by a traffic officer reporting the absence of proof of insurance when completing a traffic stop. Many officers now request your insurance card in addition to your license and vehicle registration. Penalties for not having auto insurance range from fines and the suspension of your driver’s license and/or vehicle registration to very expensive fines and jail time, all of which depends on how many times you have previously committed this crime.
If you have found yourself in this situation, where your driver’s license has been suspended because of a lack of auto insurance, we can offer some suggestions on what you can do to find a great auto insurance policy as well as reinstate your driver’s license. It may be a question of where to begin or how to approach your situation, but your condition can improve if you work hard and become dedicated to keeping the laws about carrying auto insurance now and through the future.
You will not be able to reinstate your driver’s license until you have proof of auto insurance, so the first step would be to find an insurer who is willing to work with you at this difficult time. You can try to use our auto insurance search by entering in your zip code and honestly answering the remaining questions regarding your driving history and vehicle you drive, but in the end they may not offer you auto insurance over the Internet and will want to speak directly to you to work with you more effectively. If anything, this method of searching for an auto insurance company will at least provide to you a list of local auto insurance companies that you can contact on your own.
Contacting auto insurance companies to get auto insurance when you have a suspended driver’s license needs to be done with a lot of patience on your part. Keep in mind that auto insurance companies provide insurance hoping the driver will not need to make many claims. They base their rates and whether or not they will provide insurance to a particular driver on the driver’s level of risk of making a claim. Being found without auto insurance while involved in getting a traffic ticket or an accident puts you at a higher risk level in the insurer’s point of view, so don’t expect to see any cheap premiums coming your way at first.
When it comes to the price of your premium, allow the auto insurance agent to explain their policies on providing insurance to someone of high risk. They may expect you to pay a high rate for a certain time period, but if you have demonstrated safe driving during that time period by not receiving any traffic tickets or being involved in any accidents while maintaining your auto insurance policy, your rates may begin to decrease. If the insurance agent does not mention this, politely ask if they follow this pattern.
If by chance the first auto insurance company offers to provide insurance to you, perhaps you should opt to tell them you will think about it and call the next auto insurance company to see what they will provide to you. Not all insurance companies offer the exact same price for auto insurance policies, and you could still find something that may be slightly cheaper. Knowing what each auto insurance company is willing to provide for you will help you make a better decision in the long run, as opposed to just picking a random company and going along with what they have to say. Remember to stay patient as you search.
When you have found a policy that suits you best, purchase it and request proof of insurance immediately. Usually the court of law only gives you a small window of time to get auto insurance before they instill another penalty upon you for lack of auto insurance. The quicker you resolve this issue, the better. You can take your proof of insurance card to the courthouse (or other location if it’s recommended) to show the judge, who will then lift the suspension of your driver’s license. If the suspension of your vehicle’s registration was part of your punishment, this will be lifted too. You can then reinstate your license (and registration) by paying a fee, and be prepared for this fee to around $100, if not more.
As you can see, this process is timely and can be stressful with all of the necessary contacting of auto insurance companies, waiting to get auto insurance and the proof that you have it, and then dealing again with the courts and fees it takes to get everything situated to how it needs to be to drive legally. When it is time to renew your auto insurance policy, do not procrastinate or allow the auto insurance company to automatically renew it for you. Do not be late in paying for your premium, whether it is done as monthly payments or at the beginning of the policy in full. If you have difficulties remembering to pay your bills on time, ask the auto insurance company if they have automatic billing programs, where they will bill your bank account directly without any work on your part.
Do We Need Tort Reform For Auto Safety?
Europe has significant safety features for automobiles that are either standard or optional equipment for their vehicles. These features have not been introduced here in the US. Why?
Could a lack of tort reform be the culprit? It boggles the mind. This was a topic of discussion at an April 21, 2004, meeting of Advocates for Auto and Highway Safety.
What is tort reform and why does it affect car insurance? Tort reform is used by its advocates to describe a change in the United States civil justice system that will limit tort litigation and damages. By doing so, it will reduce litigation’s adverse effects on the economy.
Michael Sanders is the global director for automotive safety for DuPont Performance Materials. Some of the new technologically advanced safety features he told the board about were side curtain airbags, laminated glass, radar-based rear obstacle detection, rear view camera systems, anti-trap technology for windows, an advanced rear seat belt reminder, and pretension seatbelts. Many of these features are standard or optional equipment in Europe. The significance of this is that the market penetration of these features in Europe is deep while they have had relatively no impression here at home.
What is keeping these potentially important safety features out of the grasp of American drivers? You may be surprised to learn that the group believes our litigious society, the contingency fee system, and our court system are reasons such safety equipment is not available in the US and why most of the suppliers are in Europe. What can be done to solve the problem? Unfortunately, it will require more regulation. This seems to be a never-ending spiral of deeper and deeper red tape in order to simplify and safeguard our driving risks. An example of this is to have carefully drawn regulatory standards so that consumers cannot sue auto companies for failure to use such equipment in the past. The group felt that availability of such equipment as standard equipment (OEM) on U.S. cars is probably dependent on tort reform.
We may see a change in this arena.
The U.S. Class Action Fairness Act of 2005 shifts many large class-action lawsuits involving parties from state to federal courts. This may or may not be a good thing. Erasing the needless burden of state litigation with more bureaucratic federal litigation may subvert the constitution’s intent. This Act removes many class action lawsuits from the jurisdiction of state courts. Business groups had lobbied for the legislation, arguing that class-action lawsuits enriched trial lawyers.
The Act accomplished two key goals of tort reform advocates:
1. Reduces the likelihood that out-of-state defendants will be subject to what proponents deem are excessive verdicts, by reducing settlements that may occur in plaintiff-friendly local venues.
2. Enacts procedures for the review of coupon settlements, to reduce attorney's fees that are deemed “excessive” relative to the benefits actually afforded class members.
The Act gives federal courts sole jurisdiction to certain class actions in which the amount in controversy exceeds $5 million, and in which any of the members of a class of plaintiffs is a citizen of a state different from any defendant, unless at least two-thirds or more of the members of all proposed plaintiff classes in the aggregate and the primary defendants are citizens of the state in which the action was originally filed.
Could a lack of tort reform be the culprit? It boggles the mind. This was a topic of discussion at an April 21, 2004, meeting of Advocates for Auto and Highway Safety.
What is tort reform and why does it affect car insurance? Tort reform is used by its advocates to describe a change in the United States civil justice system that will limit tort litigation and damages. By doing so, it will reduce litigation’s adverse effects on the economy.
Michael Sanders is the global director for automotive safety for DuPont Performance Materials. Some of the new technologically advanced safety features he told the board about were side curtain airbags, laminated glass, radar-based rear obstacle detection, rear view camera systems, anti-trap technology for windows, an advanced rear seat belt reminder, and pretension seatbelts. Many of these features are standard or optional equipment in Europe. The significance of this is that the market penetration of these features in Europe is deep while they have had relatively no impression here at home.
What is keeping these potentially important safety features out of the grasp of American drivers? You may be surprised to learn that the group believes our litigious society, the contingency fee system, and our court system are reasons such safety equipment is not available in the US and why most of the suppliers are in Europe. What can be done to solve the problem? Unfortunately, it will require more regulation. This seems to be a never-ending spiral of deeper and deeper red tape in order to simplify and safeguard our driving risks. An example of this is to have carefully drawn regulatory standards so that consumers cannot sue auto companies for failure to use such equipment in the past. The group felt that availability of such equipment as standard equipment (OEM) on U.S. cars is probably dependent on tort reform.
We may see a change in this arena.
The U.S. Class Action Fairness Act of 2005 shifts many large class-action lawsuits involving parties from state to federal courts. This may or may not be a good thing. Erasing the needless burden of state litigation with more bureaucratic federal litigation may subvert the constitution’s intent. This Act removes many class action lawsuits from the jurisdiction of state courts. Business groups had lobbied for the legislation, arguing that class-action lawsuits enriched trial lawyers.
The Act accomplished two key goals of tort reform advocates:
1. Reduces the likelihood that out-of-state defendants will be subject to what proponents deem are excessive verdicts, by reducing settlements that may occur in plaintiff-friendly local venues.
2. Enacts procedures for the review of coupon settlements, to reduce attorney's fees that are deemed “excessive” relative to the benefits actually afforded class members.
The Act gives federal courts sole jurisdiction to certain class actions in which the amount in controversy exceeds $5 million, and in which any of the members of a class of plaintiffs is a citizen of a state different from any defendant, unless at least two-thirds or more of the members of all proposed plaintiff classes in the aggregate and the primary defendants are citizens of the state in which the action was originally filed.
Sunday, May 17, 2009
What Kind of Auto Insurance Do I Need?
auto insurancePerhaps you are the parent or guardian of a new driver looking to purchase auto insurance. Or maybe you are a driver looking to change your auto insurance policy to provide more coverage. Whatever your situation, initially it can be a bit confusing trying to decipher the different parts of auto insurance and what you as the policyholder need to purchase to provide good protection. We offer a few general tips that may guide you towards your decision, possibly helping you see other options that you haven’t before considered.
State Law Requirement
Some new drivers may not realize that almost every state in our country requires — by law — that all drivers obtain and maintain an auto insurance policy. Failure to do so will result in consequences that may include pricy fines. Consequences also include the suspension of the vehicle’s registration and the suspension of the driver’s license, both of which will be reinstated by the owner by paying a hefty reinstatement fee. A repeat offender could find themselves being charged with time in jail simply for not maintaining auto insurance.
Each state specifically requires drivers to carry what’s known as financial responsibility, or the ability to pay for damages that may be caused by the driver. Because the most popular form of financial responsibility is auto insurance, each state has given specific requirements regarding what type of auto insurance coverage should be carried and the minimum dollar amount that should be purchased. Every Department of Transportation or Department of Motor Vehicles will be able to inform drivers of the state’s requirements.
These requirements revolve around bodily injury liability and property damage liability. Bodily injury liability is set on two factors: one, it is a coverage for the other driver and passenger’s bodily injuries as individuals that were sustained when you crashed into them; and two, it is a combined maximum amount for the total cost of bodily injuries. For instance, if an amount of $15,000 was purchased for bodily injury per person, and $30,000 per accident, the insurance company will pay up to $15,000 for the cost of the medical injuries of each person as a result of the accident. The combined cost for all injuries of the driver and passengers in the other vehicle cannot exceed $30,000, as this is the amount purchased.
Property damage liability is just as it sounds; it covers the cost of repairing the property that was damaged in your accident. This property can be another vehicle, a pole, fence, building, the traffic light pole, or any other structure you negligently ran into and subsequently damaged. If an amount of $10,000 was purchased, the insurance company would pay up to $10,000 to restore the damaged property to its original condition.
As with any recommended auto insurance coverage purchased, the insurer will only pay up to the specific amount purchased by the policyholder. Experts agree that many of the minimum requirements are not enough to pay for major accidents where a large amount of damage takes place. Medical bills and property repairs are becoming more expensive, and often the state required amounts do not rise with those costs. Policyholders should compare the minimum purchased amounts with current repair/medical bill costs and evaluate if they are carrying enough.
When the amount of repairs exceeds the amount of insurance, the policyholder is then left wondering how to pay the balance. As an example, a policyholder purchased $5,000 in property damage liability. The policyholder’s 17-year-old son was talking on his cell phone with the radio on and wasn’t paying attention to the child in the parking lot. To avoid a collision with the child, the 17-year-old swerved and ended up through the wall of the store. The total damage of the store was $17,000, which left the policyholder (and the son) financially responsible for $12,000 after the insurance paid for their $5,000.
Experts suggest carrying a policy of 100/300/100, or $100,000 for bodily injury liability per person, $300,000 for bodily injury per accident, and $100,000 for property damage liability, despite what the minimum state requirements are. And no, these coverage options do not apply to your vehicle or medical injuries. Other coverage options are needed for that.
Other Possible State Requirements
Beyond bodily injury and property damage liability coverage, some states also require the purchase of additional auto insurance coverage while other states leave the decision to the driver. Uninsured or underinsured motorist liability protects policyholders (and members of their policy) by agreeing to pay for — up to the purchased amount — any damages that occur to them from drivers with little or no auto insurance. Because those drivers do not have the financial means to pay for their own damages, the policyholder’s insurance can pay for those damages.
Another coverage that may be required by your state is personal injury protection. This coverage works much like a health insurance policy, where the medical bills of you and your passengers will be covered by the auto insurance company, up to the amount purchased. If this coverage is not required in your state, but you regularly drive a carpool, you may want to consider adding this coverage option to your policy as it provides compensation for your passengers.
Again, check with your state transportation or motor vehicle departments to know what coverage you need to have to be considered legal to operate a vehicle.
Drivers with Little to No Health Insurance
Drivers who do not have access to quality health insurance may want to consider personal injury protection (discussed above) or the option known as medical payments. Medical payments also covers the medical expenses of the policyholder and can be used in conjunction with health insurance or on its own.
Other Options
To be able to pay for your own vehicle’s damage you will need to purchase options like collision and comprehensive coverage. If you do not own your vehicle but are making payments, your loan or lease company will probably require you to purchase those options.
Conclusion
Basically, when choosing the type of coverage within an auto insurance policy, be thorough. Think of different situations you or members of your policy may encounter and evaluate the cost that would come from those mistakes. It’s understandably stressful to think of accident conditions, but more stress will come if those accidents happen without having adequate auto insurance.
State Law Requirement
Some new drivers may not realize that almost every state in our country requires — by law — that all drivers obtain and maintain an auto insurance policy. Failure to do so will result in consequences that may include pricy fines. Consequences also include the suspension of the vehicle’s registration and the suspension of the driver’s license, both of which will be reinstated by the owner by paying a hefty reinstatement fee. A repeat offender could find themselves being charged with time in jail simply for not maintaining auto insurance.
Each state specifically requires drivers to carry what’s known as financial responsibility, or the ability to pay for damages that may be caused by the driver. Because the most popular form of financial responsibility is auto insurance, each state has given specific requirements regarding what type of auto insurance coverage should be carried and the minimum dollar amount that should be purchased. Every Department of Transportation or Department of Motor Vehicles will be able to inform drivers of the state’s requirements.
These requirements revolve around bodily injury liability and property damage liability. Bodily injury liability is set on two factors: one, it is a coverage for the other driver and passenger’s bodily injuries as individuals that were sustained when you crashed into them; and two, it is a combined maximum amount for the total cost of bodily injuries. For instance, if an amount of $15,000 was purchased for bodily injury per person, and $30,000 per accident, the insurance company will pay up to $15,000 for the cost of the medical injuries of each person as a result of the accident. The combined cost for all injuries of the driver and passengers in the other vehicle cannot exceed $30,000, as this is the amount purchased.
Property damage liability is just as it sounds; it covers the cost of repairing the property that was damaged in your accident. This property can be another vehicle, a pole, fence, building, the traffic light pole, or any other structure you negligently ran into and subsequently damaged. If an amount of $10,000 was purchased, the insurance company would pay up to $10,000 to restore the damaged property to its original condition.
As with any recommended auto insurance coverage purchased, the insurer will only pay up to the specific amount purchased by the policyholder. Experts agree that many of the minimum requirements are not enough to pay for major accidents where a large amount of damage takes place. Medical bills and property repairs are becoming more expensive, and often the state required amounts do not rise with those costs. Policyholders should compare the minimum purchased amounts with current repair/medical bill costs and evaluate if they are carrying enough.
When the amount of repairs exceeds the amount of insurance, the policyholder is then left wondering how to pay the balance. As an example, a policyholder purchased $5,000 in property damage liability. The policyholder’s 17-year-old son was talking on his cell phone with the radio on and wasn’t paying attention to the child in the parking lot. To avoid a collision with the child, the 17-year-old swerved and ended up through the wall of the store. The total damage of the store was $17,000, which left the policyholder (and the son) financially responsible for $12,000 after the insurance paid for their $5,000.
Experts suggest carrying a policy of 100/300/100, or $100,000 for bodily injury liability per person, $300,000 for bodily injury per accident, and $100,000 for property damage liability, despite what the minimum state requirements are. And no, these coverage options do not apply to your vehicle or medical injuries. Other coverage options are needed for that.
Other Possible State Requirements
Beyond bodily injury and property damage liability coverage, some states also require the purchase of additional auto insurance coverage while other states leave the decision to the driver. Uninsured or underinsured motorist liability protects policyholders (and members of their policy) by agreeing to pay for — up to the purchased amount — any damages that occur to them from drivers with little or no auto insurance. Because those drivers do not have the financial means to pay for their own damages, the policyholder’s insurance can pay for those damages.
Another coverage that may be required by your state is personal injury protection. This coverage works much like a health insurance policy, where the medical bills of you and your passengers will be covered by the auto insurance company, up to the amount purchased. If this coverage is not required in your state, but you regularly drive a carpool, you may want to consider adding this coverage option to your policy as it provides compensation for your passengers.
Again, check with your state transportation or motor vehicle departments to know what coverage you need to have to be considered legal to operate a vehicle.
Drivers with Little to No Health Insurance
Drivers who do not have access to quality health insurance may want to consider personal injury protection (discussed above) or the option known as medical payments. Medical payments also covers the medical expenses of the policyholder and can be used in conjunction with health insurance or on its own.
Other Options
To be able to pay for your own vehicle’s damage you will need to purchase options like collision and comprehensive coverage. If you do not own your vehicle but are making payments, your loan or lease company will probably require you to purchase those options.
Conclusion
Basically, when choosing the type of coverage within an auto insurance policy, be thorough. Think of different situations you or members of your policy may encounter and evaluate the cost that would come from those mistakes. It’s understandably stressful to think of accident conditions, but more stress will come if those accidents happen without having adequate auto insurance.
Simple Steps to Filing Your Car Insurance Claim
Having even a teeny-tiny car accident can be one of life's least enjoyable moments. However, accidents happen, and sooner or later, we all have the experience of meeting one of our fellow road travelers up close and personal. Using the following seven steps to filing your claim will help you get over this speed bump as smoothly as possible.
They aren’t really accidents. They are more of an incident. Usually they are an incident that you would like to forget.
* Understand your policy before a loss, sit down and carefully read your insurance policy. Call your agent or company if you have any questions about what is or is not covered.
* Make sure everyone is okay and check to see if anyone needs medical attention. Even if your injuries are minor, you may still want to have them checked out at a hospital or with your family doctor. Minor injuries can become major, long-lasting injuries.
* Exchange information when you are involved in an accident, get the other driver's name, address, phone number, insurance carrier, and insurer's phone number. Be prepared to give the same information about yourself to the other driver. You can find insurers’ telephone numbers on the proof-of-insurance cards that should be carried on your person when operating a motor vehicle.
* Identify witnesses and ask witnesses to the accident for their names and phone numbers in case their account of the accident is needed.
* File an accident report and contact local law enforcement officers to have an accident report prepared. If law enforcement is not reachable, accident reports and detailed instructions are available at all police departments, sheriff's offices, your local Department of Motor Vehicles office, and on your local Department of Motor Vehicles' web site
* Notify your insurer by contacting your insurance company about the accident as soon as possible. An insurance adjuster will review the accident report to determine who caused the accident. If the accident was not your fault, you can have either your insurance company or the at-fault driver's insurance company handle the repair or replacement of your vehicle. If you use the other driver's company, you will not have a claim on your automobile policy and you will not have to pay a deductible.
* Do not release insurers too early. Do not relieve your insurance company of its responsibility until the damages are settled to your satisfaction. For example, have your insurance company handle the claim if the other party's insurance company questions its policyholder’s negligence or offers an unacceptable settlement.
* Consider these settlement factors.
o Bodily injuries: You may be entitled to a monetary settlement for injuries caused by another at fault (liable) party. It can take several days for some injuries to become apparent.
o Damages: The insurance company is responsible to pay for the reasonable cost of repairs to your vehicle. An insurance adjuster will assess the damage. Usually, insurance companies and auto body shops negotiate disagreements about what should be repaired. If you disagree with their conclusions, you have the right to obtain another appraisal at any auto body shop.
o Appraisal clause: Most auto insurance policies include an appraisal clause, which can be used to help settle disputes about physical damage claims between you and your insurance company. (The appraisal clause does not apply for claims you file with the other party's insurance company.) If you cannot reach an agreement with your company, you or your insurer can initiate the appraisal clause. Your appraiser and your insurer's appraiser then select an independent umpire to try to resolve the dispute. Check your policy or ask your agent or insurance company for more information about the appraisal clause.
And that is it. While filing a claim is certainly no fun, following these seven steps will make the process almost as easy as getting free quotes and purchasing your car insurance at CarInsurance.com.
They aren’t really accidents. They are more of an incident. Usually they are an incident that you would like to forget.
* Understand your policy before a loss, sit down and carefully read your insurance policy. Call your agent or company if you have any questions about what is or is not covered.
* Make sure everyone is okay and check to see if anyone needs medical attention. Even if your injuries are minor, you may still want to have them checked out at a hospital or with your family doctor. Minor injuries can become major, long-lasting injuries.
* Exchange information when you are involved in an accident, get the other driver's name, address, phone number, insurance carrier, and insurer's phone number. Be prepared to give the same information about yourself to the other driver. You can find insurers’ telephone numbers on the proof-of-insurance cards that should be carried on your person when operating a motor vehicle.
* Identify witnesses and ask witnesses to the accident for their names and phone numbers in case their account of the accident is needed.
* File an accident report and contact local law enforcement officers to have an accident report prepared. If law enforcement is not reachable, accident reports and detailed instructions are available at all police departments, sheriff's offices, your local Department of Motor Vehicles office, and on your local Department of Motor Vehicles' web site
* Notify your insurer by contacting your insurance company about the accident as soon as possible. An insurance adjuster will review the accident report to determine who caused the accident. If the accident was not your fault, you can have either your insurance company or the at-fault driver's insurance company handle the repair or replacement of your vehicle. If you use the other driver's company, you will not have a claim on your automobile policy and you will not have to pay a deductible.
* Do not release insurers too early. Do not relieve your insurance company of its responsibility until the damages are settled to your satisfaction. For example, have your insurance company handle the claim if the other party's insurance company questions its policyholder’s negligence or offers an unacceptable settlement.
* Consider these settlement factors.
o Bodily injuries: You may be entitled to a monetary settlement for injuries caused by another at fault (liable) party. It can take several days for some injuries to become apparent.
o Damages: The insurance company is responsible to pay for the reasonable cost of repairs to your vehicle. An insurance adjuster will assess the damage. Usually, insurance companies and auto body shops negotiate disagreements about what should be repaired. If you disagree with their conclusions, you have the right to obtain another appraisal at any auto body shop.
o Appraisal clause: Most auto insurance policies include an appraisal clause, which can be used to help settle disputes about physical damage claims between you and your insurance company. (The appraisal clause does not apply for claims you file with the other party's insurance company.) If you cannot reach an agreement with your company, you or your insurer can initiate the appraisal clause. Your appraiser and your insurer's appraiser then select an independent umpire to try to resolve the dispute. Check your policy or ask your agent or insurance company for more information about the appraisal clause.
And that is it. While filing a claim is certainly no fun, following these seven steps will make the process almost as easy as getting free quotes and purchasing your car insurance at CarInsurance.com.
Thursday, May 14, 2009
Car Insurance Rates Are Dropping
According to a new survey by Insurance.com, 44% of shoppers believed they were overpaying for car insurance. In addition, 22% said that they were shopping because their rates had recently increased with the renewal bill from their current auto insurance company.
Are you getting a good deal? March RateWatch data shows that drivers who pay too much for car insurance now have a great chance to save. "Consumers who shopped for car insurance recently saw rates that were $100 lower on average than rates quoted last fall," said Sam Belden, Vice President at Insurance.com. "Most policies renew every six months, so this decline in average quotes comes as good news for consumers whose policies were affected by rising prices in late 2008."
Insurance.com's survey also found that 32% of drivers were driving less compared to six months ago. Driving fewer miles presents another savings opportunity, because it could earn drivers a 5–15% Low Mileage discount on their auto insurance policy with most insurance companies.
Consumers are making tough decisions about how much coverage they buy, while still trying to maintain their policies. 25% of car insurance shoppers surveyed bought less auto insurance coverage than they had on a prior policy, and 26% dropped comprehensive and collision coverage. While less coverage always beats no insurance, we'd like to remind you that auto insurance provides important protection. Consider these tips:
Are you getting a good deal? March RateWatch data shows that drivers who pay too much for car insurance now have a great chance to save. "Consumers who shopped for car insurance recently saw rates that were $100 lower on average than rates quoted last fall," said Sam Belden, Vice President at Insurance.com. "Most policies renew every six months, so this decline in average quotes comes as good news for consumers whose policies were affected by rising prices in late 2008."
Insurance.com's survey also found that 32% of drivers were driving less compared to six months ago. Driving fewer miles presents another savings opportunity, because it could earn drivers a 5–15% Low Mileage discount on their auto insurance policy with most insurance companies.
Consumers are making tough decisions about how much coverage they buy, while still trying to maintain their policies. 25% of car insurance shoppers surveyed bought less auto insurance coverage than they had on a prior policy, and 26% dropped comprehensive and collision coverage. While less coverage always beats no insurance, we'd like to remind you that auto insurance provides important protection. Consider these tips:
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