Archive for the ‘Auto Insurance’ Category

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The Importance of Liability Coverage

Wednesday, May 5th, 2010

If you’re driving an old clunker or a car that isn’t worth much in the blue book theses days, you probably don’t want more expense than you have to have. As long as it runs and gets you where you’re going, that’s all that should matter, right? Well, not quite. In fact, you are still going to have to think about auto insurance whether you’re driving an old rusted out Model A or something from a recent era. It’s the law, after all, and you will want the cost effective choice that gives you coverage without going bankrupt.

Why Full-Coverage Might Not Be the Best Choice

Full-coverage can be an excellent choice for some drivers. It covers pretty much anything and everything you encounter (with some prior out-of-pocket expense, of course) and can be a blessing in the case that your car is totaled. However, if your car is old and does not have the latest features, you might want to rethink full-coverage. First of all, full-coverage costs more. Those driving newer cars with the latest and greatest safety and security features can benefit from added discounts because of those things. Full-coverage kicks in to cover your needs once you have met the deductible requirement, however, those deductibles are in place to keep the company from having to pay for minor costs. With any car, if there is a major fender bender that leaves the car as a useless pile of scrap metal, insurance is only going to pay you the blue book value. Unfortunately, if your car is old, this might not be enough to cover a better replacement.

Why Liability-Only is a Good Choice for Drivers of Older Model Cars

If you can’t get all those great discounts because of the age of your car, and you realize that you won’t get much for replacement in that event anyway, you might want to go with liability only. This can ease the cringe factor when paying your auto-insurance bill. Since the law says you have to have minimum coverage, liability insurance (so long as it is your state’s minimum requirement) is good idea. It costs less in the long run, and frankly, it has you covered where it matters most. Sure, if there is a wreck, you might be out money to replace your own car (if the wreck is your fault), however, would you want to wind up paying for a replacement car of your own, replacement or repairs for the other party or parties involved, as well as any medical bills incurred that were not covered by the other’s insurance? Probably not.

Cars cost a pretty penny these days, even when it comes to repairs,  and hospitals and doctors don’t come cheap either. At the very least, liability coverage will cover you where it counts the most.

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Automobile Safety and Security Could Spell a Lower Auto Insurance Rate

Thursday, April 29th, 2010

If you’re in the market for a new car, there are a few things you might want to consider when making your purchase that could equal excellent discounts on your auto insurance. Most insurance companies will take your safety and security features into consideration and cut you a break on those factors, adding up to a good amount in savings.

Security

If you own or purchase an older car, you probably won’t be as eligible for discounts on safety features, as an older car may not have all the same features as newer cars, if any at all. However, security features are often on many cars or can be added, so the age of you car might not make a difference in your eligibility for security feature discounts.

Anti-theft systems are an excellent idea. Often standard on newer cars, you can also order one and have it installed by the factory. It makes the car harder to steal and much easier to recover if a theft does occur. Of course, in lieu of this, you can buy yourself an anti theft device that is not necessarily a permanent part of the car. Any security system is a good idea to save your car and your money in the long run. However, talk to your insurance company. Some offer a discount for using any kind of security device and others only offer savings on those that are factory installed. Other safety features may also qualify for a rebate, so check with both your insurance company and auto-dealer when purchasing your new car.

Safety

To qualify for an auto insurance discount, safety features must either come standard on the car or be factory installed. either way, safety features can bring you tons of savings and could also save the lives of both yourself and your loved ones. The insurance companies can afford to give you discounts because safety features protect drivers and passengers, lowering the amounts paid out on claims.

Which safety features can save you money?

Airbags - front driver and passenger side, side curtain, and even the airbags that are now often installed for the back seats.

Other important safety features that could save your life and gain you some great discounts include automatic seat belts, ant-lock braking systems and child safety locks.

Of course, you individual insurance carrier might discounts for additional features, so check into it and purchase the car that best optimizes your security, safety and savings.

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Auto Insurance and the Senior Citizen

Monday, April 26th, 2010

Aging is a mark of honor; a badge of victory. Unfortunately, this distinction often comes with a loss of independence, which many seniors don’t want to give up without a fight. Why should they give it up? A part of that independence has to do with being able to drive oneself from point A to point B without having to rely on someone else. As long as a senior citizen is capable and able and has been deemed so by the DMV, there is no reason why they should not be allowed to drive their own cars, on their own, when and where they wish.

Seniors and Driving

With all those years of driving experience behind them, senior citizens are well aware of the laws for and importance of auto insurance. However, many seniors become concerned with the cost of auto insurance, often sacrificing coverage and letting policies lapse because their fixed incomes don’t often leave room for expensive rates and lots of extras.

These concerns are bad enough, but on little slip up, fault of the senior or not, could result in some whether it be the courts or just family and friends, concluding that a person no longer has the right to be behind the wheel, simply because of his or her age.

Proving Them Wrong and Saving Some Money

Want to prove all those naysayers wrong? Keep your driving skills sharp. Whether you think you really need it or not, attend a driving safety course for senior citizens. Look at it this way, you might have some fun, meet some new people, learn a thing or too and can even wind up saving money on your car insurance. That definitely makes the course well worth your time.

Want to save even more money? Look at  other insurance companies in your area and compare senior rates. Find the coverage you currently carry or what you feel you need. Find out what each policy includes and what kind of discounts you could take to save even more. Then, decide if switching insurers could benefit you. Other ways to save include carrying a higher deductible and driving a low profile car, which has less instances of reported thefts and lower repair costs. You might also consider only carrying the coverage you absolutely need and dropping the extras. If you worked many years for one company and are still eligible for pension or benefits, find out if you can get in on their group coverage or get special discounts through them. It never hurts to ask as saving money is good at any age!

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Auto Insurance: The Beauty of the Vanishing Deductible

Friday, April 23rd, 2010

You’re a safe driver. You follow the law right down to buckling up and carrying auto insurance. You pay your premiums religiously. You want that policy in place should you ever have a need for it, however, you often wonder why you’re spending all this money yet not using any benefits. It’s really a catch-22. You’ve got to have the insurance, however, wouldn’t it be nice to be rewarded just for being a good customer and a safe driver? After all, you’re not costing your auto insurer anything by having to file claims. Now, you can reap the rewards of being a safe driver!

Introducing The Magically Vanishing Deductible

Ok. So it’s not really magic, but it sure feels like it! For every year that you go without having any accidents, maintaining a safer driver status with your insurance company, they will reduce you deductible by up to $100, most plans maxing out at a $500 deduction. Imagine it! When you signed up for you policy, you knew you would be obligated to pay so much out of pocket before your insurance company would pay any benefits. It comes with the territory of many kinds of insurance. Some people even pay a higher deductible for a lower monthly premium. Still, it seems like a lot of money to put out just to use those benefits if and when you need them.

Need to Know

The vanishing deductible is appealing. Few of the insured would ever think twice about accepting such a perk. However, it does not come standard with most auto insurance plans, therefore, you will have to sign up for the option. Do not expect to find it everywhere either. If this is a perk you want in your insurance plan, you might need to shop around. The idea has only recently been introduced and there’s just a few top companies offering the benefit. Shop around and ask for it. Maybe someday, the idea of the vanishing deductible will become more widespread, after all, everybody wins. Your insurance company saves money by your being a safe driver, and returns the favor by saving you some big bucks in the long run.

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Your Choice in Cars and Your Auto Insurance Rate

Wednesday, April 21st, 2010

When you walk onto the car lot to purchase a car, you’re bound to find a deal you can’t pass up, maybe even on the car of your dreams. However, that good deal you just got is only the sticker or dealer price. It won’t tell you the hidden costs, especially those associated with insuring your precious new toy on wheels. The choice you make in the car you drive can have a huge impact on the rate you pay for insurance.

Age, Make Model, and Features

If you roll off the car lot in a brand new car as opposed to a slightly older model, you are probably going to pay more to insure it. The type of car you have purchased will also have an impact on the rate you pay. The good news is that if your car comes with standard safety features or if you have them installed by the factory, you can expect to receive some discounts on your auto insurance policy.

Family Car vs. Show Car

A minivan or compact sedan is going to save you a ton of money on car insurance. These cars often get excellent gas mileage and are standard equipped with the latest safety features to protect the whole family. They are not designed for racing or higher speeds, therefore, the horsepower is reasonable enough to get you to your destination in a short period of time without breaking speed records. These aspects are going to qualify you for great rates, unless, of course, you’re driving record is terrible or the insurance company has other reasons to see you as a high risk, therefore raising your rates.

That lovely Porsche or classic show car you have in mind might be fun and all, but done expect it to save you any money on auto insurance rates. Cars that are a high risk for being stolen, have high horsepower and lower gas mileage, as well as being considered somewhat of a danger on the road for the speeds they can achieve, will not lower your rates. With newer model sports cars, you might get somewhat lucky, as safety features will most likely be present. Adding a security system could also lower your rate.

Either way, it is your choice. No one says you have to settle for the minivan over the Porsche. As  long as you can afford the car, the upkeep, and the insurance, go for it. Just don’t expect a plethora of discounts.

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Auto Insurance: Rewards and Perks for Safe Drivers

Friday, April 16th, 2010

If you’re a safe driver, it shows. You know it, other drivers know it, and of course, you’re insurance company will know it too. Wouldn’t it be nice if they did more than that? If they stood up and took notice, rewarding you for your conscientious on-the-road effort?

Some auto insurers do offer rewards and added perks to customers who are considered low-risk safe drivers. You simply have to go with a company who offers this. Two great choices are Nationwide and All State, although there are several others out there worth looking into. Auto insurance companies who take notice of their safe drivers know that you save them money; therefore, they extend that savings to you and will even sometimes pay you for being a good driver.

Auto Insurance Discounts

When you signed up for your policy, you probably took advantage of all the discounts you qualified for. Maintaining a safe driving record could qualify you for more discounts, over time, depending on both your company and your plan. Ben Franklin told us that a penny saved is a penny earned, so every little bit you can save in insurance deductibles and premiums certainly makes a difference.

Deductible Savings

If you sign up with the right company and choose the options, you can immediately save money off your deductible (typically $100) and for every year thereafter that you are deemed a safe driver, the company will reduce your deductible even more, up to a total of $500 off! This will significantly reduce the amount you have to pay out before your benefits kick into cover your auto needs.

Get Paid for Being a Safe Driver

Some companies will pay attention to how safe you are and will show their appreciation by sending you a check. Six months of safe driving could reward you with 5% cash back on the premiums you have paid. It’s a whole new way to benefit from insurance benefits!

More Ways to Benefit

While they are not exactly rewards and perks for being a safe driver, some companies do offer appealing benefits that make them stand out above other auto insurers. These kinds of benefits give the customer added peace of mind while keeping you coming back to the insurance company for all your  auto insurance needs.

Accident Forgiveness

No more worries that a fender bender is going to raise your rates. With this perk, insurance companies keep your rates from rising, even if you have an accident, no matter who is at fault.

New Car Replacement

With full coverage, an insurance company will pay the money to replace your vehicle. However, the value of the car is assessed and you only get the amount of the current value. Being paid the depreciated value often leaves you with the option of only purchasing a sub-par replacement or paying the difference out of your own pocket. with new car replacement, if your car is totaled within the first three model years, your benefits will buy you a new car, not just pay you the depreciated value of the totaled car.

If you want your auto insurance benefits to payoff without having had any accidents or dents in your driving record or even in spite of these things, look for a company who offers these kinds of perks and benefits; terrific incentives that make those premiums even more worthwhile.

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Auto Insurance: Motorcycles Need Coverage Too

Wednesday, April 14th, 2010

You know you have to have auto insurance. It’s the law and a darn good idea for protecting both you and your precious wheels. What if you’re one of those people who loves the open road: sun and wind on your face, nature all around and the steady purring of the engine? Hey, bikers lover their motorcycles and part of that bike love means motorcycles need insurance coverage too.

After finding the perfect bike for you, you will want to find that perfect insurance policy to protect your new toy.

Shop Around

Before settling on a plan, get a few quotes and see what different companies have to offer. You will want a policy that gives you the excellent coverage you need without costing a few of your own limbs in the process. You do not need to overpay, so check out several companies before you choose. In the end, it does not matter who you go with, if they save you some money and offer you great coverage. After all, in the event of an accident, you are likely to be reimbursed the current value of your bike, regardless of what company you go with.

Factors and Rates

Insurance companies rate their customers based on certain factors and habits. There are several things to keep in mind when it comes to the rate you will be paying. Some factors are demographic and they are essentially non-negotiable, while others are things you can do to increase the chances of obtaining a better deal on your policy. Your age, location, driving record and occupation are all demographic factors that could impact your rate. Listed below are some other things that can impact the rate you pay:

Your Bike

You bought that new, flashy Harley that just rolled of the line. Well, expect to pay a little bit more. The age, model and features of your particular motorcycle will help to determine just how much insurance is going to cost you.

Storing and Securing Your Bike

If your in the habit of park-and-go, you might want to reconsider. Covering your motorcycle, storing it inside a garage and locking it up when you are not riding it could save you some money. Adding an alarm system and other security features could also bring some insurance discounts your way.

Motorcycle Usage

If you’re a casual rider who likes to get out in the summer and roam the back roads, your likely to pay less than someone who uses their bike for primary transportation, weather permitting, of course.

Classes and Certifications

Take advantage of motorcycle safety and other training classes offered by the DMV and other reputable entities. Keep your certification documents handy and make sure the insurance company is aware of your having taken and passed these classes. It could see you paying a bit less for insurance.

Insuring your motorcycle does not have to be complicated or even that expensive. It’s simply something you have to do and something you should want to do, if you love your bike and the freedom of the open road.

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Auto Insurance: What is an SR-22 and Who Needs One?

Wednesday, April 7th, 2010

Does every driver need an SR-22? No. While the rules vary from state to state, an SR-22 is typically only required by court order, for those who have specific driving violations on their record or have lost their license to drive. An SR-22, also known as a Certificate of Financial Responsibility, is a certificate, that once ordered to have, will be issued by your insurance company to the state to serve as proof that you have obtained your state’s minimum required auto insurance coverage. As long as you keep your insurance coverage active, your SR-22 will remain valid. Should your policy be canceled, the SR-22 will become null and void, resulting in a report to the proper state agency and possibly revocation of your driving privileges. So don’t risk it! Keep your coverage going so you can stay behind the wheel.

How to Go About Getting an SR-22

Typically, the court will have ordered you to obtain a SR-22 and fulfill your obligations to them in order to clear up your record or get your license back. This could very well include court fines, restitution and classes, which you may have to pay for yourself. Once you have completed all that the court has ordered you to do, the final step in getting your driving privileges back will be the filing of an SR-22.

You’ll need to find an insurance company, purchase a policy (most states only require liability insurance as the minimum, but be sure to check into that for your particular state), and then let the insurance company know that you need an SR-22. Once your policy is in effect, they will file the certificate with the proper state authorities on your behalf. Keep your premiums paid, and your SR-22 will remain in effect.

What’s it Going to Cost?

Aside from what you have had to pay to the court or state and any other fines and expenses incurred during your case, you’re looking at the initial cost of your auto insurance policy plus your monthly premiums. This, of course, will vary based on your policy, your company, the car you drive and several other factors. As for the SR-22, the fee will vary from state to state and company to company. However, it is only a one-time fee, charged when the SR-22 is filed. The only time you would ever pay this again is if you messed up and your SR-22 become invalid and you had to file again.

The best way to never need an SR-22 is to keep your auto insurance current at all times. However, things do happen and should you find yourself in some kind of trouble over driving violations, lack of insurance, or your license has been revoked, no worries. An SR-22 is your second chance. Use it, but don’t abuse it. Second chances don’t come along very often.

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Auto Insurance: Factors Impacting Your Rates

Wednesday, March 31st, 2010

If you’re feeling the auto insurance rate blues, you’re not alone. While a lot of plans are reasonably priced and can even save you money over their competitors, there are several factors that can and will affect your overall rate.

Age

Statistics say that if you’re a driver under the age of 25, your more likely to be involved in an accident than those who are older.

Marital Status

Yes, being married will actually lower your insurance rate. Singles pay more regardless of the driving record.

Gender

Though the stereotype seems to say otherwise, statistics say that women are better drivers, therefore they get a lower rate.

Your Car

You’re going to pay a whole lot less for insurance on a family sedan than you will on sports car or exotic showpiece. The age of your car, the make, model, body style, and engine will all make a difference as well. Oh, and no, the color of your car makes no difference. You’re not going to pay any more for cherry red than you would silver.

Your Driving Record

A good driving record will save you money. A few speed bumps or a seriously flawed record will find you with a higher rate. The good news is that over time, as the record improves, your rate will come down.

Your Credit Score

Believe it or not, your credit rating will affect the car insurance rate you are offered. Like a loan or credit card, insurance companies view those with low credit scores as high risk. Therefore, you must pay a higher premium.

Occupation

For some reason, there seems to be a correlation between one’s occupation and the driving risk they present. People in certain occupations will pay  more than others.

Your Level of Education

That college degree might pay off in more ways than you thought. Those with higher education  might find themselves with an auto insurance discount.

Multiple Cars/Drivers

This is another great opportunity for a discount.

There are other factors that might also make a  difference in the rate you are paying for your car insurance. Your location can make a difference. Lower traffic areas and less vehicle thefts in the same area might find you paying less where those who live in areas with more congestion and a higher rate of theft will often pay more. The number of years you have been driving, the distance your drive every day (mainly to and from your job) and the number of miles you put on your car every year can also have some impact.

When shopping for insurance, keep these things in mind when you see your rate quote. Try to shop around for the best rate and take advantage of the discounts you are able to get. You must have insurance in order for your car to legally be operated 9on the road, but you don’t want to go broke trying to keep it. Look for the discounts and try to get any factors you can change under control to ensure a better rate.

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Auto Insurance: A Little Peace of Mind for You and Everyone Else on the Road

Thursday, March 25th, 2010

It’s an unfortunate source of frustration for drivers time and time again. You’re involved in a fender bender and when you get out of the car, you find the other guy saying he’s uninsured. You’re first thought will most likely be “Why are you out here on the road in the first place, then?” Failure to carry some kind of automobile insurance is a very careless and inconsiderate move. You’re certainly not doing yourself any favors, nor is it fair to all the other people who happen to be sharing the road with you.

Some people don’t bother to maintain an auto insurance policy because they think it’s too expensive. The truth is, auto insurance can be quite budget friendly and compared with the costly consequences of not having it, well, it’s a rather minimal expense.

Not only is it a good idea to have insurance if you plan to drive, it’s the law. Go ahead, tell a police office that you don’t have car insurance when you have that little fender bender and see what happens.(And no, you can not hide it or fake it. The truth will surface.)

Consequences for the Uninsured  Motorist

Initially, the uninsured driver might get lucky enough to only receive a warning or a citation. Still, a citation will cost you some cash, so if cost is a concern, one should have just gone with insurance in the first place. Failure to maintain a car insurance policy could eventually leave one kicking themselves for not doing so and hopefully, the lesson will be learned.

Lacking auto insurance can also lead to racking up points on your license. Enough of this and you might eventually find yourself without a license at all. You will wind up having to wait a period of time to get your license back, go to court, pay fines, possibly take some kind of driver education class (paying out of your own pocket, of course) and filing for an SR-22 just to get back on the road.

In the case of a fender bender or even a serious accident, if you are the uninsured party, you could end up in a devastating situation. There could be more citations, fines and even restitution. Without insurance, you will be out the expense for the other party’s car, possibly medical bills related to any injuries sustained,  and any costs for repair or replacement of your own car. Surely, by now, you see the pattern here: money, money, money.

Insurance Ensurance

When you take the cost of not having auto insurance and compare it to the cost of keeping an up to date policy, well, insurance is not so expensive after all. So if you plan to get behind the wheel, keep these things in mind and get yourself some insurance. Full coverage is the best idea, but at the very least, get a liability policy and keep it current.

You’ll thank yourself and other drivers will too.

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