Posts Tagged ‘auto insurance policy’

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Insurance News: Will You Need to Buy Auto Insurance From Vehicle Manufacturers?

Friday, October 2nd, 2009

As the major auto companies are striving to revamp their vehicle offerings and designs, some manufacturers are taking their innovations a step further by offering their own vehicle insurance policies.  Currently, only one major company, Suzuki, has offered unique insurance policies for their vehicle drivers; however, many experts are wondering if this trend will continue.

Insurance for Motorcyclists

Suzuki, a major manufacturer of various types of vehicles, has designed a unique insurance program specifically for its drivers of Suzuki motorcycles.  As studies show that motorcycle drivers are at a significantly higher safety risk than drivers in an automobile, many insurance companies hike up the costs and rates for motorcyclists.  As a result, many motorcycle owners are forced into a tight financial circumstance; due to motorcycle insurance rates, some owners are forced to sell their bikes, cancel their plans to purchase a new bike, or potentially take a dangerous risk by driving illegally without insurance!  As these outcomes are certainly unfavorable, Suzuki has decided to offer its customers a more affordable insurance program, specifically designed for motorcyclists.  Suzuki’s motorcycle insurance rates will vary for each driver, as rates are based on a driver’s age, driving history, vehicle, along with other factors.

Reducing Motorcyclist Insurance Costs

If you’re planning to purchase a Suzuki motorcycle, check with competing auto insurance companies to ensure that you find the best deal for your specific driving history and coverage needs.  Thoroughly comparing a variety of insurance options before agreeing to one specific insurance contract can prevent you from overpaying on coverage costs.  Adding to insurance comparisons, many drivers can further reduce their insurance costs by opting for safe driving choices, as insurance companies generally offer additional discounts for drivers who make specific choices such as:

  • Wearing a helmet at all times
  • Requiring passengers on the motorcycle to wear a helmet at all times
  • Obeying all traffic laws / maintaining a safe driving record
  • Wearing additional protective clothing and / or protective eye wear that can enhance driver safety and caution
  • Completing a driver’s safety course (specifically designed for motorcyclists)

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How Expensive Vehicles can Accelerate Your Insurance Costs

Monday, September 21st, 2009

While factors such as age, driving history, and credit certainly influence the costs of one’s auto insurance policy, your specific vehicle of choice can also raise or lower your insurance price.  According to recent industry reports and evaluations, opting for one of many the top rated luxury vehicles can result in serious excess insurance costs.  To find out if you’re paying extra bucks for your top of the line automobile of choice, evaluate the industry’s top 10 most expensive vehicles to insure in 2009.

The Top Ten Most Expensive Vehicles to Insure (2009)

According to research conducted by www.Insure.com, the most expensive vehicles to insure are based on a general comparison of insurance costs for a hypothetical driver with the following credentials: male, 40 years old or up, commutes 12 miles to work, and pays a $500 deductible on comprehensive and collision claims.

  • Nissan GT-R
  • Dodge Viper
  • MBW M6
  • Ford Shelby GT500
  • Mercedes-Benz G-Class
  • Audi S-8
  • BMW M-5
  • Hummer H2
  • Lexus ISF
  • Porsche 911

Generally, most of the top ten cars are classified as “sports vehicles,” as options like the Nissan GT-R and the Dodge Viper have gained rave reviews for their speedy, sleek, luxury performance features.  The Mercedes-Benz G-Class and the Hummer H2 are technically the only “SUVs” on the top ten list, while the Audi- S-8 is classified as a larger sports utility vehicle.

How to Lower the Price of Your Policy with a High Coverage Vehicle

While these vehicles are considered to be the 10 priciest options to insure, industry experts often remind drivers that opting for unique coverage changes can serve to lower the general insurance payment price.  For example, as the insurance prices for the 10 aforementioned vehicles are based on a general coverage plan of 100/300/50, altering these ratios could certainly serve to reduce the annual insurance costs.  100/300/50, which stands for $100,000 for one person’s injury liability, $300,000 for any / all injuries, and $50,000 for property damage, opting for reduced compensation allotments can allow drivers to take on a greater risk of loss (if an accident occurs), yet a greater savings each month or year.

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Driving Abroad? Take Advantage of Overseas Auto Insurance Coverage

Wednesday, September 9th, 2009

If you’re planning on taking a road trip abroad, you may benefit from added auto insurance coverage protection. Whether you’re flying to another county to rent a car and explore, or even if you’re driving across country borders, ensuring that your auto insurance policy protects you and your fellow companions from any auto-related damages and / or losses can help reassure for a much smoother ride!

Overseas Auto Insurance

As most standard insurance policies do not specifically include auto-related damages outside of the United States, opting for extra coverage is a highly recommended option for those who are planning to use a vehicle while visiting another country. Depending on your auto insurance provider, you may be able to add protection for travels abroad under your existing insurance policy. Or, if you’re simply planning for a once in a lifetime excursion, you should be able to easily purchase a short term auto policy for the duration of your travels. Typically referred to as “overseas insurance,” auto insurance for out of country excursions provides protection for items such as:

  • Car / vehicle
  • Motorcycle / motorized bike
  • Personal property (specific exclusions may apply)

Detailed Overseas Auto Insurance Protection

While an overseas policy will protect your property and your vehicle, making specific adjustments to your policy features will allow you to enjoy extensive coverage benefits. Generally, experts suggest that individuals traveling abroad opt for auto insurance protection features such as:

  • Liability
  • Comprehensive coverage
  • Collision coverage
  • Repairs
  • Bodily injury
  • Theft

Additional Precautions

Before purchasing your overseas auto insurance protection, ask potential providers the following essential questions:

  • Does the policy protect both yourself and other drivers (such as family members and friends)? If not, can family and / or friends be added to the policy?
  • Does the policy protect against personal injury as well as injuries to others (both in the vehicle and in another vehicle)?
  • What are the specific terms of property damage and / or theft? For example, if a bag is stolen from a vehicle, does the policy offer compensation?
  • Are there any specific restrictions regarding the overseas use of a rental car vs. a borrowed / owned car?

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How Much Will Your Marriage Cost Your Auto Insurance Rates?

Thursday, August 13th, 2009

If you thought the proclamation of “I do” was nerve-wracking, wait until you find out how marriage can impact your auto insurance rates! While planning for a wedding and subsequent marriage involves an incredible amount of scheduling, compromise, and an array of additional demands, the nuptials to your beloved fiancé can alter your insurance rate in a variety of surprising ways.

Marriage and Auto Insurance Shifts

An Unfortunate Increase

As auto insurance rates are calculated with a variety of factors in mind, your own driving history, accident history, claims history, and even your credit history can contribute to the cost of your overall auto insurance policy. When choosing to marry, the histories of your spouse will also be added to this policy-cost calculation! As a result, if your spouse-to-be has a rough accident record and / or a weak credit score, you may need to plan for an unfortunate rise in rates. Depending on your own unique marital situation, if worried about an increase, then meet with an insurance advisor or check with online insurance sources to find out how you can obtain better coverage and rate quotes by insuring your vehicles separately.

Living Happily Ever After!

Yet, while an increase could be a possibility for some newlyweds, most married couples with average / above average driving and credit histories should be entitled to fairly significant auto insurance rate reductions! While insurance rates are certainly calculated with driving and financial histories in mind, most insurance providers consider a married couple to be more stable and reliable, as the commitment of marriage involves serious responsibilities.

These steps down the isle can help you step towards greater savings, as most married couples can apply for discounts by combining their auto insurance policies with one provider. Specifically, if prior to marriage each individual had received auto insurance coverage from two different companies, opting to combine the policies with one of the companies will allow you to typically maintain and / or improve your coverage while reducing the cost. As an insurance company will undoubtedly be glad to accept new, reliable, and safe clients, adding one’s spouse to the plan allows both the insurance company and the newlywed couple to reap greater financial benefits.

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The Secrets to Insuring Your Teenage Driver

Tuesday, August 11th, 2009

Unfortunately, as drivers under the age of 25 are considered to pose the most likely threat to insurance companies, insuring your new teenage driver can be intimidatingly expensive! Since studies show that drivers under 25 have the highest rate of at-fault accidents on the road, any licensed driver in their late teens and early 20s will commonly pay higher rates than drivers 26 and above. Yet, using secrets of the industry, you can find ways to cut the cost on your teenager’s auto insurance plan-without making serious sacrifices!

Auto Insurance for the Teenage Driver

Adding to Your Plan

While your teenager’s age will certainly play a role in raising their auto insurance rates, you can avoid excess charges by adding them onto your own current insurance policy. As auto insurance rates are also influenced by a driver’s credit score, your credit history will most likely allow your teen to gain a lower monthly rate. Additionally, as some providers offer family discounts, parents who choose to add their son or daughter to their auto insurance policy can typically take advantage of multi-driver savings and promotions.

Opting for Inexpensive Vehicles

In addition to adding your teen to the family’s auto insurance policy, individuals who are hoping to save on a teen’s insurance costs should also look at cheaper vehicles. As a more expensive car or SUV will raise a driver’s insurance rates, opting for a cheaper mode of transportation can help to reduce the teen’s monthly rate. Yet, when choosing the best (and most affordable) option, be sure that the vehicle still has standard safety features. Specifically, features such as collision and airbags can help to further reduce the auto insurance rate.

Money and Monitoring

Lastly, one of the most modern methods for cutting back on insurance costs involves taking advantage of incredibly innovative tools of technology. In order to verify that a teen driver is adhering to safe practices and habits, some insurance companies provide / allow teens to install driving monitoring devices in their vehicles. These devices allow the insurance provider (and parents) to verify the teen’s average speed, his / her tendency to brake too quickly, and so forth. With positive proof of safe driving, an insurance provider may agree to cut back on the teen’s rates!

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Determine If Your Auto Insurance Covers Other Drivers of Your Vehicle

Friday, July 24th, 2009

While nearly all states require drivers to hold current insurance policies in order to legally hit the road, not all policies offer extensive protection against damage to your vehicle. If a situation arises, for example, where a friend asks to borrow your vehicle, you should undoubtedly check to see if your insurance policy covers other drivers of your car.

Protecting You and Your Vehicle

When you choose your auto insurance, you typically have an option to insure other drivers of your vehicle; however, the auto regulations for each state and each company certainly vary. To ensure that you are protected when allowing others to drive your car, check with your auto insurance policy itself. Essentially, the language of your policy should state that any driver of your vehicle is insured while the vehicle is being used. In other words, the insurance follows the car, even if you are not the main driver.

An exclusion to this typical rule, however, involves a lack of permission. If someone has stolen or “borrowed” your vehicle without your consent, then full coverage may not be issued. Additionally, many insurance policies have specific regulations regarding a borrower’s age, driving experience, and so forth. If a driver of your vehicle fails to meet your policy’s guidelines, then your vehicle may not be covered in the case of an accident. Ultimately, make sure you are protected before you allow any other driver to take control of your vehicle.

What About Uninsured Drivers?

While most states demand that all drivers carry auto insurance, some drivers choose to disregard this regulation. If an incident occurs wherein you are involved in an accident with an uninsured motorist, your auto insurance policy should still be able to offer you protection. Check your policy to verify whether or not you have uninsured motorist protection; this feature provides you with protection if any damage is caused to you by an uninsured driver. For example, if another driver hits your car by running a red light, the other driver is generally responsible for the repair costs of your vehicle; however, if the offending driver does not have insurance, then your policy (if you hold uninsured motorist coverage) will still provide you with the financial reimbursement for any damage.

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Uninsured Motorist Insurance Can Save Your Pocketbook

Wednesday, June 24th, 2009

Uninsured motorist or underinsured motorist coverage on your auto policy can be a big money saver.  If you are ever in an accident caused by an uninsured motorist the other driver is liable for your damage repair and any medical bills.  But what if they are without liability insurance?

Extending Your Coverage Makes Dollars and Sense

If you have uninsured motorist coverage then you can be sure that your insurance company will pay for the damages caused by the other driver. In fact your insurance company will also become responsible for collecting from the other party.  But if you chose not to include uninsured motorist coverage, you will be left with the bill, as well as the stress and expense of collecting from the other driver.

Uninsured motorist coverage is also important for hit-and-run accidents.  If you are the victim of a hit-and-run then your uninsured motorist coverage will pay for the damage repair.  If you are in the vehicle at the time of a hit-and-run always try to get the license plate number of the other vehicle.  It will be important when it comes to filing police report, and for making a claim.  Unless you can get the ID of the other driver you will probably have to pay a higher deductible amount.

A Low Cost Option to Enhanced Protection

Making this decision even easier for the policy holder is the fact that uninsured motorist coverage is rather inexpensive.  When opting for this added coverage, you should plan to match uninsured motorist limits with any bodily injury coverage you have.

You may also want to purchase uninsured motorist if you do not have collision insurance.  Those with older cars may not want the expense of collision, but a small expense of an uninsured motorist clause will come in handy in case of an accident where someone else is at fault.

Be sure to check your current auto insurance policy for uninsured motorist or underinsured motorist coverage.  If you find it is not on the policy, consider adding it for the peace of mind it will give you.  You never know who else is on the road, nor what coverage they may possess.

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When Buying a Car do you Really Need Gap Insurance?

Wednesday, June 3rd, 2009

It’s time for a new car!  You perform the research and find the perfect models that you would like to test drive.  And at the dealer you fall in love with the perfect car and make a trade.  You may have felt as though you made some difficult decisions when buying the new vehicle, however, this is where the real decisions begin.

When it’s time to drive your new automobile off the lot is it covered under your existing auto insurance policy?

Yes, if you have gap coverage.  Most auto insurance policies cover a specific automobile and any losses due to theft or damage of the car.  But auto insurers know that cars are bought and sold on a daily basis.  That is why they invented gap coverage - so you have adequate insurance on a purchased vehicle that has not yet been added into or switched over on your current policy.

Gap Coverage Limitations

Gap coverage is limited however, and contains some exclusions.  What gap insurance will do for you is cover your new automobile in cases of damage from the moment your name is on the pink slip.  Comprehensive damages such as fire, vandalism, or weather.  Gap coverage also includes collision damage that may be sustained in an accident while driving. But what new car owners should be aware of is the exclusions that gap insurance fails to pay for.

Gap Coverage Exclusions Include the Following:

  • Insurance policies that don’t have both comprehensive and collision.  Though it is usual and traditional to have both types of coverage, some people opt out of one type of coverage to save money.  If a new car is not covered by both types of coverage when it drives off the lot it will likely have problems with gap coverage.
  • Non factory-installed equipment.  If you buy a used car that had some interior work done by the previous owner, including expensive CD or other entertainment upgrade, the improvements will likely not be covered by gap insurance.
  • Extended warranties.  Additional costs to the automobile for products like extended warranties are usually not insured by gap coverage.

If you are in the market to purchase a new or used vehicle, make sure you understand gap coverage and ensure that your new car has adequate insurance when you are given the keys.

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