Posts Tagged ‘auto insurance policy’

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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: 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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Simple Ways to Keep your Auto Insurance Rates Affordable

Monday, March 15th, 2010

Auto insurance shouldn’t break the bank. In fact, given the competition in the auto insurance market, it is quite possible to find a great policy that is both reasonably priced and comprehensive.

Always remember that there are several auto insurance carriers available, regardless of where in country you reside. However, beyond find the best rate, there are a number of things you can do on your end to lower your auto insurance premiums and save big:

  • Buy a smaller car - Simply put, smaller cars cost less - sometimes much less - to insure than larger cars. Keep in mind, too, that smaller cars just don’t save you money on auto insurance premiums; they also save you on gas and on maintenance costs. Consider, for example, the cost of tires for a small car versus the cost of tires for one of the larger, sport utility vehicles. If you are in the market for a new car, contact your auto insurance carrier and ask them for insurance quotes for both smaller cars and larger cars; you may very well find yourself shopping for a smaller, more economical vehicle.

  • Play it safe - This may seem like a no-brainer, but the fact of the matter is that not many people think about their auto insurance coverage when they get behind the wheel. Aside from the obvious increase in auto insurance premiums should you become involved in an auto accident, also consider speeding tickets, as fines and points can certainly mean an increase in your auto insurance premiums.

  • Consider a professional - If you have a teenage driver, consider enrolling them in a safe driver course. Many auto insurance companies offer great discounts for teenage drivers who pass these tests.

  • Raise your deductible - Consider a slight increase in your deductible, as this can often significantly lower your monthly premium amounts. However, you will also need to make sure that you have the cash in case you become involved in an accident and need to pay out the deductible. It’s always a smart idea to keep your auto insurance deductible amount tucked away in a money market or savings account in case you need it.

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Easy Tips for Finding the Best Auto Insurance Policy

Thursday, March 11th, 2010

We are all as cautious as can be on the roadway, but no matter how careful we are each time we get behind the wheel, chances are that we will, at one point or another, be involved in some type of auto accident.

So, the question is: are you well protected in case of an auto accident?

For many motorists, this question may be “no.” This is because not many of us give too much thought to our auto insurance policies. However, this can prove to be a very costly mistake.

If you don’t even know what kind of auto insurance coverage you have, or how much insurance you have, then you are certainly in good company; not many people understand their auto insurance policies, let alone fully understand their coverage amounts.

  • The first thing you must do when purchasing auto insurance is the policy and its price. The first question you may want to ask yourself is: is the coverage worth the price? And in order to answer this question, you must do your homework and compare prices between several auto insurance companies.
  • Before you can begin comparing prices and policies, you must understand what coverage you want and/or need, as coverage amounts can greatly dictate the price of the policy. Consider such factors as: insured parties; passenger coverage; third party and theft; fire damage; and accident damage.
  • Another factor to consider when shopping for auto insurance is the insurance carrier. The insurance carrier you choose is very important, as it will be your first point of contact following an accident. Research the company, its history, its financial stability and, perhaps most importantly, reviews by other customers regarding their customer service and coverage.

There are several resources you can use to research your auto insurance company, including your state department. Simply head to your state department’s website and you will find a plethora of information regarding the auto insurance carrier whom you are considering. You may also want to ask friends and family for their opinion, as they can be a great source of information and advice. Additionally, insurance review and comparison websites offer robust and often in-depth coverage of insurance policies.

Finding a great auto insurance policy isn’t hard, but it does take some time and research on your part. It is important to remember that your choice of auto insurance policies can mean the difference between overpaying for an undervalued policy, or even getting caught in a situation where you are underinsured and financially responsible for a great deal of money. In short, take the time to find the best auto insurance policy for your specific situation and budget.

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Your Coverage under a No-Frills Auto Insurance Policy

Friday, March 5th, 2010

Although auto insurance policies differ based on coverage amounts, deductibles and the insured driver, among other things, there are a number of items that nearly every auto insurance policy will have. Each type of coverage may be worded differently from one auto insurance policy to the next, but they are general in terms of what they protect.

Keep in mind that auto insurance minimums will depend on the state in which you live, so always check your state’s minimum coverage amounts.

The following is the framework of a general auto insurance policy:

  • Bodily Injury Liability - This section of your auto insurance policy covers any injuries that you cause to another individual. Bodily injury liability insurance is a must because you may be sued by another motorist for a large sum of money. If you don’t have enough liability insurance you could be risking your other assets, such as your home or your savings. Most states have state minimums regarding liability coverage.

  • Personal Injury Protection - This section of your auto insurance policy covers any injuries that you or your passengers sustained while in your vehicle. Personal injury protection covers medical payments, lost wages and even funeral costs.

  • Property Damage Liability - This section of your auto insurance policy covers any damage you may have caused to someone else’s property. This may include their car or their property.

  • Collision - This section of your auto insurance policy covers the damage to your car when you are involved in a collision with another car. Your collision coverage will likely come with a deductible.

  • Comprehensive - Comprehensive coverage reimburses you for loss due to theft or damage, provided it wasn’t a result of a collision with another car or object. Comprehensive insurance usually has a deductible.

  • Uninsured Motorist Coverage - This section of your auto insurance policy covers you or a member of your family if you are hit by an insured or hit-and-run driver. This coverage may also be used when you are involved in an accident with an underinsured motorist or if you are hit as a pedestrian.

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Preparing for a Road Trip: What you can’t afford to Leave Behind

Friday, February 26th, 2010

A road trip can be a great experience; the open road, the sunshine and the excitement of visiting new places. However, without the proper items, you could be left in a lurch if your road trip doesn’t turn out as planned.

Before embarking on your next road trip, make sure you have a few essentials:

  1. A cell phone - A cell phone is, without a doubt, one of the most important things you can have with you on a road trip. Make sure it is in good working and make sure that you also have a car charger to keep it charged while traveling.

  2. A roadside assistance membership - A roadside assistance membership is a useful tool for motorists, especially when traveling away from home. Before you leave on your trip, it may be a good idea to contact the company through which you have the membership to make sure your membership is active and to make sure it is valid in other parts of the country. Also, don’t forget to bring along the contact information of the company; it is often best to keep the number of the roadside assistance company in the glove compartment of your vehicle.

  3. Bottled water and snacks - In case of an emergency, it is always important to have at least a one or two day’s supply of water and food. If your trip involves back roads or if you know you may be traveling in remote locations, it is essential to make sure you have enough food and water in case you become stranded or lost.

  4. A comprehensive auto insurance policy - A comprehensive auto policy may just be the most important thing you bring along with you when traveling. Regardless of what happens on the road or what troubles you find yourself in as a result of an accident, a good auto insurance policy will surely come into play. Check your auto insurance policy’s terms and conditions before embarking on your trip so that you will be aware of your rights should you become involved in an auto accident.

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Easy Steps for Filing a Car Insurance Claim

Monday, February 22nd, 2010

With cars come car accidents and claims. Not many of us can say we were never involved in a minor fender bender at one time or another; and, as such, most all of us have had to file a car insurance claim.

Although car accidents will likely happen sooner or later, they don’t have to be a great inconvenience. In fact, you can submit a car insurance claim in a relatively painless fashion, provided you understand which steps you must take to facilitate the process of filing a car insurance claim.

Use the following tips to help you file a car insurance claim and get on with your life as soon as possible:

  • First of all, before an accident ever occurs, make it a point to fully understand the terms and conditions of your auto insurance policy. If you don’t have a clear understanding of your policy’s benefits and limitations then you may be in for quite a surprise when it comes time to filing a claim.

  • Make sure you and your passengers are all right and that no one needs medical attention. If the car accident is more than a simple fender bender you may want to seek medical attention for yourself and your passengers, just in case.

  • Exchange all information if another motorist was involved in the accident. Do not leave the scene until you have secured the other driver’s name, address, phone number and insurance company (including the contact information), regardless of whom was at fault. If the other driver seems reluctant to provide you with his/her contact information or if they appear to be intoxicated, agitated or angry, it is best to contact the police so they can make a police report of the accident.

  • Obtain the names and contact information of any witnesses on the scene.

  • Notify your insurance company about the car accident as soon as possible. Your insurance company will likely assign an insurance adjuster to your claim and review the report to determine who was at fault. If the accident is determined to be your fault, you will likely need to pay your auto insurance deductible regarding your damages. However, if the other driver was at fault, you will not have to pay out your deductible to have your damages covered.

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Understanding your Auto Insurance Policy

Wednesday, January 27th, 2010

An auto insurance policy is generally straightforward; however, it is important to fully understand the details of your policy so that you can be assured that you are adequately protected if you need to file an auto insurance claim.

Your Auto Insurance Policy: Understanding the Various Sections

  • The first part of your auto insurance policy involves three numbers separated by slashes. This section of an auto insurance policy is often the most confusing to auto owners. However, these numbers are quite easy to understand.

The first number is the maximum coverage for your policy, per person. In other words, the initial number equals the total amount of bodily injury coverage for each person. The next number is the total amount of bodily injury coverage. In other words, the first number may be $100,000 and the second number may be $300,000, so the total amount of coverage for bodily injury is $300,000, or $100,000 per person. The third number equals the total amount of property damage coverage for your auto insurance policy.

  • The next section of your auto insurance policy includes the policy’s declarations, and also includes information about your vehicle, the drivers on the policy, the monthly premium for your policy and details of the limitations of your coverage. This section also includes additional information on your policy, such as rental car reimbursement; these additional benefits are usually referred to as riders on your policy.

  • The next section on your auto insurance details and defines the language used in your auto insurance policy. This section is designed to help you understand your policy, so it is common to see auto insurance definitions in this section. This section will also help you understand the process of filing a claim and your responsibilities as the driver of the vehicle.

  • The last section of your auto insurance policy will detail your policy’s exclusions. In other words, this section describes situations in which your policy would not cover you. This is an important section to read and understand, as it will clearly detail your rights and limitations under your auto insurance policy.

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How to Choose an Auto Insurance Policy

Friday, November 27th, 2009

We all need to save money, but we don’t want to give up quality and service to do it. So, is it possible to get both a low price and great service and coverage under one auto insurance policy? Absolutely!

We are all bombarded by countless auto insurance ads during any given day. From billboards and radio to those incessant television commercials, auto insurance ads are everywhere we look. It certainly makes it difficult to sort through all of the hype and instead find an auto insurance company that can provide you with the coverage and price we need.

Thankfully, there are ways to get around the auto insurance lure tactics so that you can make the best decision for you. Here are some of the things you should be looking for when comparing auto insurance companies:

  • Price - There are many, many things that influence the price of auto insurance. From your age and accident history to your marriage status and vehicle type, the cost for auto insurance can vary widely. You can simply call auto insurance companies and ask for their rates, or you can contact the Department of Insurance in your state for a list of average rates. Finally, you can check online for prices; most insurance companies have online calculators.

  • Service - Don’t forgo service for low prices, or you could be in for a potential nightmare when the time comes to submit a claim. You can certainly ask friends and family for recommendations. You can also contact the Better Business Bureau and ask about the number of complaints the company has filed against them.

  • Financial Stability - With so many companies in the country failing, it becomes hard to distinguish a strong company from a weak one. You may want to consider looking into the company’s financial position; this information is readily available online.

  • Customer service - One of the biggest factors when deciding on your auto insurance company will likely be customer service. If the representatives were not helpful and courteous when you called for an auto insurance quote or asked questions then you can be pretty sure that they won’ be courteous when it comes time to file a claim. Bottom line: consider all aspects of an auto insurance company before diving into a policy.

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Moving to a New State? Find Out if You are Legally Required to Carry Auto Insurance

Friday, October 30th, 2009

If you’re planning to relocate to a new state in the near future, then you’ll most likely need to continue to invest in your auto insurance policy; however, as each state has its own unique auto insurance requirements, you may need to alter your coverage in order to meet the legal guidelines for driving on your state’s roads.

Auto Insurance and State Requirements

In examining the legal requirements pertaining to each state, most of the country’s 50 states demand that all drivers carry some form of auto insurance.  Specifically, 48 states legally require hat drivers purchase liability coverage-excluding New Hampshire and Wisconsin.  Most states demand liability coverage in order to protect individuals from financial ruin in the unfortunate case of a serious accident.  As liability protection helps to cover the costs of bodily injury, legal costs, and other potential related costs pertaining to an accident, the basic liability policies help protect all drivers involved in some form of collision or auto mishap.  Essentially, if you are at fault of causing an accident, then you may be susceptible to potential lawsuits from other drivers involved in the collision.  As such, liability coverage can help protect you from exorbitant legal fees, compensation for damages, as well as coverage for yours and / or others’ physical injuries.

Registering Your Car in a New State

Once you’re settled into your new home inside your new state’s boundaries, you’ll need to head to the DMV to register your car.  Before heading in to receive your new documents, verify whether or not your current insurance coverage meets all of the state’s demands.  Oftentimes, some states will not allow you to register your vehicle until proof of insurance is verified.  Also, since states often change their insurance requirements each year, it will be to your advantage to verify the requirements often!

Penalties for Lack of Coverage

If you’re tempted to post-pone your vehicle registration with your new state, be aware that delay can lead to your spending extra dollars!  Nearly all states enforce financial penalties for late registration.  Adding to this, if your state’s DMV finds out that you have been driving without insurance, you can be forced to pay an incredibly large fine (depending on the number of days that your vehicle has been uninsured).

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