Auto Insurance: Accidents Happen

You need auto insurance. Most sates require insurance coverage just to register a motor vehicle. No proof of insurance, no registration. It’s the law. But the law or not, you need auto insurance to protect yourself, your loved ones and your assets. We live in a litigious society where lawsuits are common and facing a lawsuit is something you don’t want to face.

Having the right auto insurance protects you, your family and all that you’ve worked for. Choosing the right coverage in the right amounts is essential to protection of all the things important to you.

The Cost of Coverage

Auto insurance costs money. How much money depends on a number of factors including:

  • your driving history
  • your marital status
  • the kind of car you drive
  • your age
  • where your home is (and where you do most of your driving)
  • number of drivers
  • number of vehicles covered under the policy

If you have a few speeding tickets and you’ve had a few accidents (slow down) your monthly auto insurance premiums will be higher. If you drive an expensive sports car you pay more than if you drive a car built for safety.

Younger drivers have more accidents, therefore, their insurance premiums are higher. The factors that determine how much your automobile coverage costs are varied – some controllable, some not.

Automobile Policy Coverage

A quality auto insurance policy covers a variety of common contingencies encountered when driving down the highways and by-ways on the way to work.

Property damage coverage pays for damages done to the other vehicle and other property when you’re in an accident. Because property damage coverage protects the other driver it’s required in most states.

Bodily injury coverage protects you when the other party is injured or killed as the result of an automobile accident. The courts are clogged with cases involving bodily injury claims and you don’t want to add to the log jam.

Medical coverage pays for hospital stays, doctor’s visits and other medical expenses for you and all of those in the car at the time of the accident – again, essential to protecting your family assets – including your home. It doesn’t take much to roll up astronomical medical expenses even in a minor automobile accident.

Comprehensive coverage protects against things like theft, fire, a tree falling through the windshield and other non-accident related damages that can knock the family car out of service.

Uninsured motorist protection provides medical recovery expenses in cases of accidents with uninsured drivers or hit-and-run drivers who flee the scene of an accident and escape. You pay more for this protection but three out of 10 drivers are cruising the streets without insurance. Uninsured motorist protection covers you against these uninsured drivers who disregard the law and common sense.

Collision insurance pays to repair or replace a vehicle that’s been in an accident. Collision coverage comes with a deductible – an amount you pay out of pocket before the insurance company kicks in some cash to cover the crash. The smaller the deductible, the higher the monthly premium.

Collision coverage is one place you can save some money. Increase the deductible and lower your monthly payments. Or, if you drive an old clunker on its last legs, you can drop collision coverage altogether and simply get a new car in the event of an accident. That’s a decision only you can make.

Auto Insurance Coverage: How Much Is Enough?

Start by talking to an expert. Talk to an insurance broker. By bundling your home and auto insurance you often save money on both. And with insurance costs ever on the rise, saving on insurance coverage is always a good idea – as long as you’re protected by a reputable insurer who pays claims quickly and values the loyalty of its insured drivers and homeowners.

Another possibility? Your bank. Banks often sell automobile insurance as part of an auto loan agreement, something that can save you money and make it easier to get a car loan. If the bank knows its interests in your car are insured, that bank is more likely to help you get the car you need.

Using a bank to purchase car insurance can also simplify life by transferring monthly premiums directly from your checking account. No more writing checks, no more late fees, no more insurers threatening to drop your coverage.

How much coverage you need should be something you determine with the advice of an insurance expert. You need enough coverage to protect yourself, your family and your assets, including your home, but you also don’t want to pay for coverage you don’t need. Yes, it’s possible to pay for more coverage than you actually need and an insurance broker or your local bank’s insurance specialist will help you define your risk exposure to cover that risk with a solid auto insurance policy.

So, talk to a pro. You may be under-insured or over-insured right now. Neither case is good. You may be exposed to more risk than your current coverage provides, putting your future in jeopardy.

Accidents happen. Be prepared with the right auto insurance to protect you and your loved ones when they do.

Before you get behind the wheel, even for a quick drive to the store, pull out your car policy and check policy limits. Do you have enough coverage to protect your loved ones in case of a serious car accident? This is serious business. Check now. Call your agent.

Glossary of Auto Insurance Terms

Do you want to get the auto insurance coverage you desire for your car? One basic way of accomplishing this is by learning the terms pertinent to it.

The benefits of learning and knowing these terms can not be over-emphasized. It will not only build your basic knowledge, but stand as a key factor to choosing the right insurance policy for your car.

Damage

This is another term related to this type of insurance. In speaking of this, one is usually referring to the loss of one or more insured properties e.g. car, or the harm that has befallen the policyholder in an accident.

Typically, an auto insurance company would offer a claim to you that has experienced the damage in one way or the other, by means of the insurer adjuster.

It may be important that you (the policyholder) have all the correct details filed regarding any damage that has occurred before sending a claim notice to your auto carrier. This may include the total amount of incurred loss, as computed from the damage.

This is because some auto insurance companies would want to know or determine the cost of damage before offering a claim to you (the claimant), which is absolutely usual. Following legal procedures of your insurance policy would greatly help in the reimbursement of your car.

Deductible

You may likely have heard such word or hear others say it, but do not know what it means. In the insurance field, the word refers to the amount of money that you (the policyholder or insured) must pay to your insurer on the event of a loss, before your insurer can offer you a claim for the loss.

This is an up-front payment as applied to you under the insurance policy, to be qualified for the benefits of loss coverage that your insurer will offer to you. It is a general feature of most insurance companies, but as applied to the law of the state.

The amount considered to be deductible varies, but in most states it may range from about $200-$450. Policyholders of collision and/or comprehension coverage are entitled for deductible, for their loss to be fully reimbursed.

Paying a deductible that is high will most likely save more money for you on your coverage contract. But be informed that your insurer payment for covered loss will be determined by the policy limits of your insurer.

When running an auto policy, be prepared to pay for your deductible concerning any possible loss. In doing so, you are telling your insurer to pay for all the other huge expenses for loss coverage.

 We commit ourselves to providing you with high quality information and reviews about auto insurance and quote to fulfil your coverage needs and make you get the best auto insurance policy for that car of yours.

The autoinsurancemarket.blogspot.com is designed to give you the needed qualification for auto insurance coverage and to get reliable auto insurance companies and cheap quotes that are best for you.

Auto Insurance Coverage – How Much Auto Insurance Should You Buy?

The question is – How much auto insurance coverage should I buy?

Well, the generic answer is: Buy as much as you can afford. But that’s not really helpful. That’s like a stockbroker telling you to buy low, sell high. Really, Auto Insurance coverage is a bundle of several different types of insurance. What you need to determine is – What are your needs?

Types of Auto Insurance Coverage

Well, we learned that BI (Bodily Injury) Auto Insurance covers the liability if you hit somebody else – what you would pay to them and how much insurance you have, to cover you for that loss. We’ve learned that UM (Uninsured Motors) covers injury that will be paid to you if you were hit by someone who doesn’t have enough auto insurance coverage. That means that they are Uninsured or Under-Insured. We also learned about PIP (Personal Injury Protection). That means, insurance you purchased to cover your medical payments.

State Limitations And Auto Insurance Coverage

The first thing you should do is determine – What are the limits which are required by your state? Each state has certain minimum requirements that you must have. Certain states require you to have PIP (Personal Injury Protection). That means you are required, to be a driver in that state, to hold that type of insurance. Others require you to have a certain minimum level of BI.

Not Just the Minimum Requirement

Now, when you purchase auto insurance coverage, you need to look past the minimums. Determine what assets you have. What are your needs? What medical insurance do you have and what might be your needs in the future?

Auto Insurance Coverage Considerations

Usually, you want to look at the following criteria:

1. The more assets you have, the more BI (Bodily insurance) you should purchase. If you have a state which has a lot of uninsured or under-insured motorists, you want to purchase UM. Remember that UM, under-insurance or uninsured motorists, protects you if you are hit by another driver and they don’t have enough auto insurance coverage.

2. Another thing you want to look at is your PIP. Most PIP (Personal Injury Protection) will pay 80% of the first $10,000. Many PIP Policies also offer deductibles. That means you’ve got to pay the first $2,000 out of pocket of your medical expenses.

3. Look at your PIP policy. You might want to augment that with some Med Pay or additional PIP coverage’s.

4. Also, on your UM. Since you are covering your person, get it to the highest levels that you can afford.

5. Other types of auto insurance coverage you might want to look at are your collision. What do you want to pay if your car is damaged or other personal property – that means the vehicle is damaged? If you’ve got a car that’s not worth a lot, you might want to consider waiving or not insuring your car for collision.

All of these decisions are personal and they cannot be made across the board. Sit down with your agent and discuss your personal needs. Remember, the most important thing you are to ensure is your person and your family. Therefore, focus on: UM, PIP, and Med Pay. Those are the types of things your agent will tell you which will cover you and your family if they are involved in an accident and are injured.

Top 7 Tips to Save on Auto Insurance

Now that the economic times are so tough, many people are in search of ways of cutting their expenditure. Most financial advisers recommend their clients to live within their means. However, when it comes to saving on auto insurance, many people find themselves absolutely clueless how save money and still get the right auto insurance policy. For those who have no idea how to save on auto insurance, they should consider the following top 7 tips:

1. Taking precautions

Taking precautions basically means people should do certain things that show the insurer that they are a no-risk client. Normally, the amount of risk posed by a potential insure to the insurer is reflected by their premiums. Insurance companies charge low premiums when they determine that a user will not main any or minimal claims in the future. Two ideal ways of taking precautions effectively include going for defensive driving lessons and getting a separate set of winter tires.

2. Purchasing in bulk

For those who have more than a single car, and they also need to insure their house or other property; they should get all these insurance policies from a single provider. Choosing lump-sum payments is another form of bulk buying. When settling on an insurer, thinking about how much payment will have to be made cumulatively is important. The longer the payment period, the more payment likely has to be made. So paying in bulk for insurances, including auto insurance, is a good way to save money too.

3. Cleaning up record

Those who want to save themselves from the exorbitant charges of their auto insurer, they should make sure that they got their end covered and protect themselves to avoid paying too much. Their insurability and their record will be influenced by certain options. The first thing that breaks or makes their bargain plea is their driving record. The driving record should be kept clean, without accidents and tickets. People can save up to at least 5% in auto insurance premium costs by keeping a clean license.

4. Lowering liability

Those who are not able to save on auto insurance in any other way; they should choose to shed off the unnecessary. There are several ways of cutting back. One of them is lowering the value of the car. The cost of repair is directly proportional to the value of the car. Avoiding extras on the car is another way of cutting back. When a claim is made, insurance companies try to scale it down as much as they can. Extras on the car are ignored this way, so wasting money for unnecessary claims should be avoided.

5. Using temporary covers

Using hire cars or rentals instead of the car that is insured is another way of saving on auto insurance. Another way of saving on auto insurance is to purchase a cover for 27 days.

6. Doing homework

Reviewing the reputation of the insurer is also very important when it comes to saving on auto insurance. Moreover, quotes should be compared and the lowest of all the quotes should be selected. Penalties can be avoided by sticking to a single insurer for a minimal period of time. Jumping to the next auto insurance becomes available is also a way of enjoying cheap auto insurance. However, it is not advisable to move from one insurance company to the other during the mid-policy term. By actually finish the term, many savings can also be availed. People should spend some time shopping around.

7. Evaluating the deductibles

When a claim is made, the deductible are what is paid up front. Some things should be considered before varying this amount. Knowing when to raise the deductible is important. Deductibles should definitely be raised by careful drivers if it causes the premiums to decrease significantly. Knowing when to lower the deductible is also important. If a claim is expected to be made in a year, how much premiums will be saved that year should be considered first. If it is less than what will be added to the deductible, then the deductible should be lowered.

Saving on auto insurance is not an easy thing to do, but following these top 7 unique tips will allow people to save on auto insurance effectively.

How to Get Your Best Auto Insurance Policy

You just have bought a car and you are wondering – what insurance premium can I expect for my vehicle? One fixed answer perfect for everyone doesn’t exist here. We are all different, so different will be our best individual auto insurance policies.

Getting your best auto insurance policy is a two-phase selection process:

  1. Deciding on what insurance provisions you really need.
  2. Choosing your auto insurance provider.

Phase 1 – Make You Decision on What Auto Insurance Provisions You Really Need.

· Road-side Assistance

If your car is not a new one you might find this feature very attractive as it could save you some money and a lot of nerves if your car gets broken in the middle of the road.

· Accident Forgiveness

Some insurance carriers offer accident forgiveness to its drivers. This valuable feature would protect your insurance rate from increase after your car gets involved into a traffic accident even if the accident was at your fault.

· Collision Coverage

With Collision Coverage your Insurance Company will pay even if the accident happened at your fault. Make sure that coverage is sufficient in funds, if not – you will be liable to pay the rest.

· Uninsured/Underinsured Motorist Coverage

With this feature in policy your Insurance Company will pay for injuries to you and all your passengers in the case of any traffic accident which happened at other motorist fault and that motorist had no insurance at all or had insufficient insurance.

· Deductible

Deductible is the amount of money you agree to pay from your pocket in the case of a traffic accident; the rest will be paid by your Insurance Company. Higher deductible always translates to lower insurance rates. However don’t over-indulge on this feature – it is you who will be requested to pay that money if anything happens.

· Medical Coverage

This feature defines how much money you will get in the case of your auto accident-related injury.

· Comprehensive Coverage

With this feature in policy your insurance company pays a damage repair to your car for the reasons other than a collision. This includes windstorm, hurricane, fire, theft, vandalism etc. This type of coverage is often required if you lease or use multi-year financing for your car, but it would also be very valuable for every driver who wants to get fully protected.

Phase 2 – Choose your auto insurance provider.

· Get a second opinion – use the word-of-mouth approach – ask colleagues, neighbors or friends, visit web forums or any other available channels to get an initial list of insurance provider candidates.

· Narrow it down to 5-10 short-listed insurance companies which you believe will meet your needs well.

· Visit your state’s “Department of Insurance” web site. Yes, many of us don’t know that fact, but every State has “Department of Insurance” which keeps track of insurance providers under state’s jurisdiction. Check consumer complaint ratio for each company in your short-listed companies list and narrow it down to 3-5 best candidates.

· Get your preliminary quotes for each insurance company in your short list.

To simplify this step use Get Instant Quote resources available for free in the Internet.

· Choose the final company with the best insurance policy for you and your vehicle.

Conclusion

With the detailed selection check list provided above getting the auto insurance policy which would be right for you becomes a relatively easy task.

Using the knowledge about insurance policies and their features covering you and your vehicle you will always be able to get the right decision. Protect yourself on the road and save your money in the case of auto accident by purchasing the right car insurance for you and your family.

Alvin Borsinger – web master and web marketing manager at CarGalaxies.com – a BorSystems Company.