Auto Insurance: Important Definitions

February 15, 2018 · Posted in General Articles on Car Insurance · Comment 
by Theodore Hoffstrader

According to the Department of Motor Vehicles (DMV), US law requires every car owner in the country to covered by a some type of auto insurance. This law exists for two reasons: first, to protect the car owner from damages he or his car suffer in an accident, and second, to protect other people from damages that he may cause and may be his fault.

Auto Insurance Coverage determines the obligations and the responsibilities of a person who insures a car (a policy holder). This defines what happens what happens in case there is damage to his car, his car is stolen, or he is involved in a car accident (which may or may not be his fault).

The following are important definitions:

Property Coverage: this describes the amount of coverage available to a policy holder whose car was damaged in an accident, or through other means, such as vandalism. It also includes the theft of his car. Obviously this is an option every car owner should want to obtain.

Liability Coverage: this term involves ones legal responsibility for bodily injuries and for property damage caused by him. This assures the policy holder that whatever happens, the insurance company will protect him – to some extent – from bodily or property damages he has caused.

Medical Coverage: this term applies to the amount of money paid for the hospitalization and treatment of injuries incurred during an accident, as well as the costs of rehabilitation, and wages lost by the injured person during this time of incapacitation.

Standard policies:

Auto insurance policies can be classified into multiple categories. Each exists to compensate for damage or loss sustained, and expenses incurred, in cases of property damage or injury. Several examples:

Third Party: this is the bare minimum policy a car owner must possess in order legally comply with US laws. Unsurprisingly, it is also the cheapest car insurance available. Put simply, this plan protects the policy owner in case he accidentally damages someone or their property.

Fire and Theft: this type of policy protects a car owner from situations where his car is either burnt or stolen, but it does not protect him from other situations, such as property damage or medical injuries.

Collision: this type of policy covers the cost of repairs of the insured car even if the policy holder is responsible for the accident that caused the damage.

Personal Injury Protection (PIP) or Medical Payments (MedPay): this type of policy reimburses medical bills of the driver and his passenger regardless of whos at fault for causing the accident. It also protects against lost wages while the injured person cannot work.

Comprehensive: this is the best type of auto insurance and the most expensive one as well. It offers virtually all protections to the policy holder ranging from accidents, medical bills (at least partially), fire damage, theft, and even natural disasters (“acts of god”). It even partially covers the cost of items stolen from a car!

The following are specialized policies:

There are also specialized policies that suitable to some scenarios.

Classic car insurance: this policy targets owners of antique cars (cars that are older than 25 years), and is equivalent to a comprehensive car insurance. There are usually extra conditions in the policy, such as a limit on the number of miles the car owner may drive in a year’s time.

Rental Reimbursement: in the event a policy holder’s car is unavailable (i.e. it is in repairs as a result of an accident), this policy ensures that the car owner gets a replacement rental car for this period.

Regardless of the policy a car owner has, it is important for him to be familiar with his policy. Some auto insurance providers do not reimburse 100% of the value of a stolen or damaged car, but rather return only 80%, with the rationale being that this prevents frauds – accidents or thefts initiated by the owner of a car who simply dont want them anymore.

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The Most Inexpensive Cars To Insure

February 13, 2018 · Posted in General Articles on Car Insurance · Comment 
by Amy Nutt

With many concerns about the economy and the like, people are desperately looking for more ways for them to save as much money as possible. Especially with rising gas prices, and just about everything else, there is a dire need for people to save just about every red cent. Food is getting more expensive, and there are also things to think about such as healthcare, and the like.

Cars are something that we all need, and insurance is another thing that we need to legally to keep our cars on the road, and us out of trouble. The thing is that many of these cars are pretty expensive to insure, and since we have a lot of other expenses in our everyday lives, it can be quite troublesome to balance everything and still keep us on the road. The car is something that is invaluable, as it takes it to and from work. So, for those who need the knowledge of some of the most inexpensive cars to insure, this may come in handy.

Hyundai Sante Fe. This vehicle is something that is quite popular in a lot of the countries in the world, and it is probably one of the least expensive cars to keep on the road, as far as insurance goes. On average, this sport utility vehicle comes in at about $830 a year.

Saturn Vue. This is a car that is also quite popular and affordable. With its sleek design that is gaining more and more attention, it’s no wonder why people are finding that this is a great choice in a car. On average, this vehicle is about $910 a year to insure.

Kia Sportage. This vehicle is something that is quite trendy; it’s another one of the smaller sports utility vehicles. At around $840 a year, it only ranks second to the Santa Fe in the realm of the smaller SUVs.

Saturn Ion. The Ion is also an amazing car to insure, and one that also looks quite attractive. Although this may be a little more than the other cars on the list, people are also finding out that this is also quite affordable in most cases. At around $1,120 as its annual premium along with attractive looks, this is definitely one still to consider.

Mazda 3. As the owner of a Mazda will tell you, the company really does make some impressive looking cars. They are also some of the cheapest as well, and that also goes for the insurance rates as well. With an annual premium of about $1,150, it is also one of the more expensive vehicles on the list, but it is still something that is quite affordable for this sleekly designed vehicle.

There are many cars that are quite cheap to insure, and these are definitely some of the cheapest that are available. People that are looking to save a little money should really look into purchasing some of these vehicles, as they are some of the best on the road, as well. With their sleek designs and new age technology, it makes them something that many people should really not pass up.

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Antique Auto Insurance – Where To Buy Auto Insurance Online

February 12, 2018 · Posted in General Articles on Car Insurance · Comment 
by Matt Hellstrom

Antique or vintage automobiles are highly collectible items with a huge fan base. Although the antique auto insurance will only be able to cover the monetary value of a vintage or classic automobile, it is still wise to have some sort of recourse than having none in events these classic vehicles are damaged or stolen. These vehicles are a passion for many people and there are many collectors of classic and vintage automobiles.

Whereas the ordinary automobile faces depreciation in its value over the years, a vintage automobile’s value appreciates with each passing year. The older it is the more value it has to the collector. Some very rare automobiles of such kind are priced so high that they are many times over their original market value. The existence of this anomaly creates a lot of problems when it comes to determining a value for such automobile before they can be insured.

The insurance value for a vehicle is usually determined by the original price less the depreciation over the years that it has collected. In the case of an antique automobile, the price cannot be determined in this fashion as it is the age of the car that contributes to the rise in its value.

Antique auto insurance companies have come up with three different methods to determine the value of a vintage automobile. The preferred method is to determine a value that is agreeable to both the owner as well as the insurance company. This takes into consideration the appreciation in value as well as the original price of the car.

An antique car’s value is usually determined by a comparison based on the current values for similar automobiles as listed in popular vintage automobile magazines and price indexes that are in vogue. Sometimes the services of an independent assessor are sought to determine the value of the automobile.

One less-used method is to fix the value of the automobile as the sum total of the actual cost price plus the many up gradations and enhancements and amount spent on repairs etc over the years. The last method is to fix the value of the vehicle as the amount arrived at after deducting the depreciation with age from the original cost price of the vehicle.

Most antique auto insurance companies put up a few conditions, the satisfying of which the policy can then be issued. Antique auto insurance companies require most owners to have a driving experience of at least 10 years with an impeccable record. Some others require the vehicle to be kept under lock and key with adequate measures of protection in place. It has to be proved that other members of the household are using other vehicles for transport and that the antique car is not used for every trip. Another stipulation is that these automobiles should not be used for racing or transportation purposes.

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Get an Auto Insurance Rate Quote for More than One Vehicle

February 11, 2018 · Posted in General Articles on Car Insurance · Comment 

With a ton of car companies out there making it tough for the consumer to really choose at which company to start. Does it make sense to do your grocery shopping, banking, and insurance policies with one company? Of course, not that’s why there are specialists. Unfortunately for us, auto insurance is required to drive, consequently insurance companies are raking in the dollars from their clients. Fortunately, because there is competition we don’t all have to be at the mercy of price gouging agents. With so many companies fighting for your business prices do remain affordable, despite the fact we all think they can get away with charging whatever they want!

On the flip side, despite compelling all of us to drive with auto insurance, the government itself offers no relief in this area. Unlike in other countries, such as Canada, there are no subsidized government insurance programs offered by the government. Nonetheless, with the abundance of private companies offering insurance all will readily offer an auto insurance rate quote which will allow you to compare plans.

Considering everything that’s been said, we all know that there are many companies offering different auto insurance policies at different rates. Getting quotes from several is the wisest decision, as once you have several to compare you can obviously pick the cheapest and best plan for yourself. Something else to consider is that many auto insurance carriers will offer to consolidate your insurance plan with home or life insurance policies. The benefit of this is that they will usually provide a discount to you for signing on to two or more. And, if you own more than one automobile, you can research to see if a carrier can offer you a discount for adding the additional automobile.

But, if the profiles of the multitude of drivers on the policy are different, this could change the equation, and it might be best to consider different policies for each driver. For instance, some companies focus on drivers of any type of profile, disregarding a poor driving past. But, since they have lax criteria for accepting drivers, even at risk drivers, their policies tend to be considerably more expensive. Conversely, there are insurance carriers that focus on enlisting less risky drivers with better driving histories, and consequently they offer better rates. Of course, this has everything to do with business strategy, as the auto insurance companies assess their risks and then price accordingly. So, if you have a great driving record, companies are willing to offer lower rates, knowing they stand a better chance of not paying out claims. In the case of bad drivers, however, the opposite is true, and companies know the odds are not in their favor, and that at some point they will likely pay out a claim.

In sum, weighing different auto insurance policies takes a careful consideration at what is to be won or lost for each different consideration. That goes equally for a multi-driver policy, which can mean a very significant difference in rates depending on the situation of each driver. Any auto insurance rate quote must be compared and contrasted and driver history must be taken into account when ultimately making a decision.

If you’re looking for great insurance deals or an auto insurance rate quote go to our site to receive an instant auto insurance quote.

The Internet and It’s Impact on Car Insurance

February 8, 2018 · Posted in General Articles on Car Insurance · Comment 

Since the concept of insuring a car against road accidents became compulsory as well as common sense, insurance companies have issued policies. History proves that the first policy ever written for car insurance was recorded way back in’95 in the United Kingdom.

In the early days, few people had a need for car insurance. First off, few vehicles were on the road so most people did not even own a vehicle. Today, it’s very common for people to own vehicles and the law had adjusted to protect all people on the road.

Finding insurance coverage has always been a frustrating manner. In the old days, it often involved a long trip from the rural setting to the large city where insurance offices were located. Today it’s much easier to contact insurance companies.

In the past, insurance companies answered the growing demand for car insurance by hiring brokers. These people were licensed and rich in knowledge of car insurance. They were also very friendly and open to meet with potential clients to discuss different policies.

Insurance brokers are business people who earn their profits from commissions by the insurance companies whom they represent. A professional insurance broker will have received some type of formal training as well as being extremely well versed in the policies available not only from their employers but also from competing companies.

Outstanding brokers not only serve the consumer when signing up for the policy, but also in a time of need. If the client is involved in an accident, the broker should step up to the challenge, handling the claim quickly and effectively.

Generally the claims are handled quickly and effectively, and the customer is satisfied which creates a long last relationship with the broker. Others never form a bond, and instead use their wallet as a guide to which broker meets their needs the best.

As I mentioned earlier, brokers are slowly losing their jobs to the digital age or are transferring to doing business online. More people are finding online insurance easier to get and compare. The polices are also usually cheaper, because consumers avoid paying broker fees. Statistics show that people save between ten to fifteen percent of their annual insurance premium by doing business online.

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