Cheap Car Insurance Companies

June 18, 2010 by  
Filed under Car Insurance

There are many car insurance companies that boast cheap rates. Whether they are good or not is up to you to decide through research. Whichever company you decide to go with you must do your homework and make sure that,  a) the insurance company doesn’t have any negative marks against them with the BBB (Better Business Bureau) b) that they honor their policies and that the price you will be paying will have enough coverage for your vehicle.

For Example, let’s say you call company Super Cheap, and they quote you $150 every six months for your 20 yr old vehicle.  Sure, that’s SUPER cheap, but what’s the coverage, is that just for towing and road service? Make sure you know what is covered compared to what you are paying, it’s worse to be under insured than over insured!

Car Insurance FAQs

June 18, 2010 by  
Filed under Car Insurance

Can I insure a modified or classic car?

Yes, you can insure a modified car but because your car is a specialist car, not all auto insurance companies will be willing to provide coverage for it since it requires high price replacement parts and also skilled labor if the car is involved in an accident. Thus, you have to take out special car insurance that is designed especially for modified and classic cars.

How can I lower my car insurance premium?

There are a few things you can do to lower your insurance premium. First check to see that you have the right coverage for your vehicle and that you are not over insured.  If you have an older vehicle that has high miles, you might not want full coverage because you won’t get the money out of what you have payed in if you are in an accident. Second, see if there is a multi car discount, if you have more than one car insured with the same company there is usually a discount. Third, ask if there is a discount if you have an anti theft device installed, most insurance companies do offer this discount. Just those 3 things can save you A Lot of money in the long run.

What is a deductable?

The deductable is the amount you pay out of pocket before the insurance company kicks in.

Can an insurance company cancel my auto policy?

Yes, your auto policy may be canceled if you fail to pay the premium or if your driver’s license has been suspended or revoked during the term of your auto policy. Also, if there is a fraud or serious misrepresentation when completing the insurance application, if the you are convicted of a crime, or if changes are made to the property that increase the risk of loss then the company may cancel your insurance policy.

Car Insurance Basics

June 18, 2010 by  
Filed under Car Insurance

Car insurance is insurance that drivers can purchase for any kind of vehicle in order to protect against losses sustained in traffic accidents. Different policies will cover different situations and these are explained below.

– Liability Insurance: Liability coverage is the most basic coverage in car insurance policies and is required in most states.  This coverage ensures that if you are the one at fault in an accident, your liability insurance will pay for the physical injury and property damage expenses of any third parties involved. Liability coverage limits are usually conveyed with three numbers.  For example, liability limits of 20/50/10 indicate that there is coverage of $20,000 in bodily injury coverage per person, $50,000 in bodily injury coverage per accident, and $10,000 in property damage coverage per accident.

– Collision Coverage:  In the case that you are in an accident, collision insurance will pay for the repairs that your vehicle requires.  Collision coverage is usually the most expensive coverage that you will have to pay for.  Insurance companies will declare a vehicle “totaled” or a “write-off” if the replacement would be cheaper than the repairs needed.

– Comprehensive Coverage:  This coverage will pay for any damages to an automobile that were not caused by an accident.  Qualifying damages include damages arising from carjacking, vandalism, natural disasters, and hitting an animal.

– No-Fault Coverage’s:  No fault covers you and anyone else that was in the vehicle at the time of an accident.  It will cover your and your passenger’s medical bills.

– Uninsured and Underinsured Motorists Coverage’s:  UM (Uninsured Motorists) coverage will pay for injuries you have sustained if you are involved in a hit-and-run by a driver who does not have auto insurance, and is mandatory in many states.  UIM (Underinsured Motorists) coverage will pay for you if the driver who hit you creates more damage than their liability insurance can cover.

– Supplemental Coverage’s:  Rental reimbursement is an add-on that will cover rented vehicles in case of damage or theft.  Auto replacement coverage ensures that your automobile will be fully repaired or replaced even if the costs are more than its depreciated value.  Coverage for towing and labor covers you in case of an auto failure on the road where towing is necessary.  This supplemental coverage is usually offered as separate items or included in larger policies.

Car insurance and the Elderly

June 18, 2010 by  
Filed under Car Insurance

There were 550 serious accidents last year where the driver was over the age of 70 and where the driver was either killed or badly hurt, reports the Institute of Advanced Motoring. That statistic represents 8% of the national total of 7,035 similar accidents.

As the number of elderly drivers will double during the next ten years, this represents a problem for elderly drivers and their families – not to mention the insurance industry, police and indeed all of the emergency services!

As the price of car insurance is based on historical claims experience, a 75 year old male driver can expect to pay at least 33% more than if he were aged 50. And women fare even worse. Whilst younger women are renowned for their safe driving, they become more accident-prone as they get older. As a result, elderly women drivers pay the highest rates for car insurance.

Elderly drivers can more easily become disorientated and confused. Even a fraction of a second’s delay can make the difference between an accident and a near miss… Many of the policies for older motorists contain special provisions designed to assist them.

A survey carried out by the Institute of Advanced Motorists confirms that older motorists are aware that they represent an increased accident risk. Seven out of ten older drivers surveyed said they would like to take a

refresher course for motorway driving skills and six out of ten wanted to improve their performance at junctions and on unlit roads. In response to these issues, the Institute has extended its advanced tests to older non-members to encourage them to improve and build up confidence. The tests also help spot any serious problems that should encourage the driver give up driving.

Getting The Best Auto Insurance Coverage

June 18, 2010 by  
Filed under Car Insurance

Compare Quotes

This is one of the most effective ways to score savings out of your auto insurance. Find as many insurance companies as you can and possibly talk to each to determine which might not only offer the best policy but has a price reasonable enough for you. The more information you ask the more options you will have when comparing each. If you are worried that asking and shopping around can affect your credit, it will not. So, research a lot, shop around, obtain quotes, and then compare.

Ask About Discounts

Every time you researching a new company ask about discounts. Not asking will make you lose savings opportunities. There are many forms of discounts you can score from an insurance company. Some of these are multicar discounts, safe drive discounts, eco-friendly discounts, and bundling services discounts (like ATV, car, and home).

Having security and theft gadgets can also give you discounts. If you belong to the senior citizen group, you might want to inquire about senior discounts as most companies offer a discount. When you are 55 and older, you may score around 10% discount. It will never hurt to ask if discounts are available.

Don’t Speed

One of the biggest things that cause an individual to pay more than what they should for auto insurance is getting tickets. So avoid speeding at all costs. Stay away from traffic tickets and that would mean you are a good, responsible driver, and who knows, a discount from insurance.

Choose the Right Vehicle

Getting a good mid-sized car for your family rather than purchasing that expensive little red sports car may be a more sensible choice to avoid getting high premiums in your insurance. Nevertheless, always check first with the insurance company and what it recommends for lower premiums.

Remember also that insurance policies may vary from state to state. So, the best thing to do is to ask first before signing up. Insurance providers are always happy to recommend great tips to help you on your auto insurance savings. You may want to attend a drivers safety class so you keep away from vehicular dangers, which can shoot up your premiums as you file for a claim.

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