Car Insurance on Rentals

July 20, 2014 by  
Filed under Car Insurance, Featured

Every time you rent a car you are asked what kind of insurance you would like. The options are generally to take none, which costs nothing, or you could cover liability insurance, which should cost about $10 per day.

Then you have a variety of options to cover the rental car itself, these prices vary from company to company and state to state. The full coverage option, which includes liability, passengers, and the rental car usually, comes to about $25 to $30 a day.

Credit Card Coverage

Make sure you check with your credit card company and your auto insurance company before you get extra insurance on your rental car.  Most insurance companies will cover a rental car depending on your policy. Credit card companies may also cover your rental car so check with them to make sure before you purchase insurance through the rental car company.

Many times people pay extra because the rental car company tells them that their private insurance won’t cover the rental, but in most cases this isn’t true, so do your homework and double check before forking out the extra cash.

Car Insurance Pricing Plans

June 18, 2010 by  
Filed under Car Insurance, Featured

The law requires at least liability insurance for all drivers and vehicles. This means that if you are involved in a serious accident, and it turns out that it was your fault, your insurance company will pay out any claims that are made against you.

The way it works is the more they feel you are at risk of crashing, and the more they think the resulting crash will cost them, the higher the premium you’ll pay.

Assessment

Common factors that will determine the premium are; the value of the car you’re driving, the safety of that vehicle, the coverage you want; will there be deductibles or limits etc.? How much you’ll drive the car, how your driving record stands, how long you’ve held your license, your age, and if you are young, also your sex.

The premium is then calculated. Usually there is a flat per car, per year rate that everyone pays, regardless of other factors. The other factors will then alter this rate, generally upwards. So if your car is especially fast or dangerous your rate will be increased by a set amount. If it is very old, your rate goes up. If you’ve had one or more accidents in the past, your rate will go up. If you’re young and male, your rate will go up. The more of these factors you satisfy, the more your rate will be going up.

Discounts

Most companies offer discounts to safe drivers, multiple vehicles, safety devices and anti theft devices.

The best way to save on car insurance is to shop around, keep a good clean driving record, drive safely, and choose reliable cars not necessarily high priced sporty cars!

What to Know before you Buy Car Insurance

June 18, 2010 by  
Filed under Car Insurance Tips

Car insurance policies have a lot of legal language that most of us don’t understand. What you want to look for is what you are getting (coverage) compared to what you are paying (premium). Here are a few things you need to look at when you are looking for car insurance:

Rating Territory – Where you live ultimately has a lot to do with how much your premium is going to be. Living in a high crime area or big city is going to up your insurance premium.

Liability Insurance – Liability insurance protects you when you are liable in an automobile accident. This is valuable protection for you because this is the portion of the possible that insures you against the highest risk and financial loss. Liability claims because of death and injury are by far the largest.

Physical Damage Insurance – This portion of the car insurance policy pertains to your vehicles. It is a good idea to self-insure in this area by purchasing this coverage with high deductibles. Low deductibles no longer warrant the high premiums for the protection afforded. High deductibles will save you thousands of dollars over the life time of a policy.

Car Insurance Discounts – Many car insurance companies offer discounts for certain things such as; vehicles with air bags, anti-lock brakes, and anti-theft devices. Senior drivers can receive retirement discounts. Young drivers with driver training education or a certain grade point average in high school or college may receive discounts.

Things you will need when shopping around for the best car insurance rate:

The VIN (vehicle identification number) yours and any other potential drivers, drivers license #, your current policy and when it expires, how the vehicle is used (business, pleasure or back and forth for work). If you are checking on a policy for more than one vehicle make sure you have the VIN #’s for all vehicles.

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.