Auto Insurance online - How it protects you and your vehicle

by Guest » Mon Dec 21, 2009 09:12 am

Every state requires you to purchase a minimum auto insurance or vehicle insurance coverage to protect you and others from damages caused by an accident. However, what kind of protection you will get depends on your state's auto insurance laws.

What is auto insurance?

Auto/vehicle insurance is where you pay a regular premium and the insurer compensates you for any financial loss that occurs if you get involved in an accident.

Because every state requires you to have the state minimum coverage, you should look for affordable auto insurance that will protect you if you have an accident. If you are a good driver and haven't had any parking tickets or accidents recently, then most insurance companies will offer you discount auto insurance policies.

What does auto insurance cover?

Your basic policy should cover the following:
  • Bodily Injury Liability: This provides protection if the driver, policyholder, or the policyholder's family member causes bodily injury to someone else.
  • Personal Injury Protection (PIP): If the passengers and driver of the policy holder's vehicle are injured, PIP covers the cost of treatment and may also cover lost wages, cost of replacing services, and funeral costs. Search the internet for best auto insurance rates.
  • Property Damage Liability: If you or someone else permitted to drive your car damages others' property, this coverage will protect you. When you look for free auto insurance quotes, make sure you will be covered under the Property Damage Liability coverage.
  • Collision coverage: This compensates for damage to the policy holder's car as a result of collision with another car. Even if you are at fault, this term will cover the cost of repair to your car minus the deductible. If you are not at fault, then your insurer will try to recover the cost from the other driver's insurer.
  • Comprehensive Coverage: Many of you may be asking yourselves "What is comprehensive auto insurance protection?". If you suffer a loss due to theft or a damage caused by something other than a collision, like a fire, explosion, earthquake, or windstorm, then this protects you.
  • Uninsured/Underinsured Motorist Coverage (UM/UIM): Individuals who buy cheap car insurance are often underinsured and do not have enough money to pay for losses if they are involved in an accident. If an uninsured, underinsured, or hit-and-run driver hits you or your family member, this term will reimburse the cost of your damages. You will also be protected if you are hit as a pedestrian. When you buy car insurance compare quotes for UM/UIM coverage from different companies.

What are the benefits of buying auto insurance online?

With many companies offering online auto insurance quotes, it is easier for you to research the policies, terms, and conditions and compare them. You can also check the company's auto insurance reviews to make the best choice.

Here are 4 benefits you can get if you buy auto insurance coverage online:
  • Easier research: The internet allows you to do extensive research on various companies without having to visit each company. You can easily find the cheapest legal auto insurance online to suit your budget.
  • 24/7 service: This is the best part about looking for information online; you can find information when you need it.
  • Manage a policy: You can manage your policy, print out proof of coverage, and view/ manage your bill online.
  • Claim: You can even file a claim online and follow it up online.

Which factors influence your auto insurance rates?

When you apply for an auto insurance coverage, the company sends over your application to the underwriters. The underwriters evaluate the level of risk associated with an applicant, and accordingly approve and fix his/her rate or reject the application. The factors which are usually considered for the auto insurance underwriting process are:

  1. Age and gender of the driver
  2. Driving records/ history of the one to be insured
  3. Prior claims history
  4. Efficiency of the driver (driving education)
  5. Model, make and type of the vehicle
  6. Age of the vehicle
  7. Mileage of the vehicle
  8. Location (where it'll be used)
  9. Purpose for which the vehicle is used (work, personal, pleasure or commercial etc.)
  10. How the vehicle is garaged
  11. Your choice of deductible, limits of coverage and benefits
  12. Auto insurance score
To know how these factors affect your auto insurance rates, click here.

Converting to a low cost policy

Discount auto insurance schemes can help you convert your basic policy into a low cost auto insurance policy. You can find many cheap auto insurance quotes that will allow you to save money and provide adequate coverage. Take a look at few of the ways to save money.
  1. Safety measures: A few insurers offer discounts for safety measures like anti-lock brakes on used cars.
  2. Multiple policy rates: Some of the bigger insurance companies that provide different types of insurance offer "bundle" rates if you buy several kinds of insurance, like life insurance and homeowner's insurance in addition to your car insurance.
  3. Safe driver's discount: In many cases, insurers offer a safe driver's discount if you go for a certain period without a ticket or accident, usually 3 years.
  4. Renewal discount: If you have been with an insurer for a long time, they might offer a renewal discount to get you to continue your current coverage.
  5. Discounts for students: If you are a student, unmarried, under the age of 25 years, and you meet the grade requirements, you may get cheap auto insurance.
  6. Choosing a higher deductible: If you choose a higher deductable, your premium payment will be less, but you will have to pay more if you have an accident.
  7. Type of car: The type of vehicle you buy is a factor your insurance agent uses to determine your auto insurance premium rate. The quotes you get for an expensive car will be higher than for a more standard car. The age and size of your car also determines how high your premium is.
  8. Good credit history: Maintaining good credit history may also entitle you to certain discounts.
  9. Low mileage discounts: Some companies may also offer certain percentage of discounts to individuals who drive less than the average number of miles each year. If you are one of them, then you may also get this privilege.
Apart from the above, there are other ways to maximize your auto insurance benefits while minimizing costs. Learn more...

Will your premium go up after you file a claim?

Every insurer will increase the amount of your premium if you are involved in an accident. The increase is decided by the auto insurance company you purchased your policy from.

If you have a bad driving record, your motor insurance company may refuse to renew your policy and varies from one company to another. Accidents caused by drunk driving are more likely to result in a non-renewal of your policy.

If you decide not to inform your insurer about a minor accident, it may cause problems later. If you get sued by the other driver, your auto policy provider might not cover you because of the time lapse. Even if the claim is not refused, it will be harder to find evidence to support your case.

No one can predict when they will get into an accident. Investing in automobile insurance, protects you and your family during accidents and from losing your license for driving without insurance.

Related readings

Useful auto insurance letter

I've heard of so many automobile insurance claims that affected the insured's premiums. Is it possible for anyone to guide me regarding the major auto claim factors that affect our premiums?

Total Comments: 154

Posted: Wed Nov 02, 2011 07:58 pm Post Subject: A settled Auto case & rehab treatment

Due to an auto accident I suffered significant inuries & was eventually put on potent pain meds. My auto carrier pays for my pain mgnt.medications & mt Dr's visits. I am looking to go to a de-tox facility to get off of these medications (which my Dr. suggested I try) I have 2 questions: 1). Is my auto carrier bound by HIPAA to protect my info.?? Or would I need to take out a personal oan to protect my privacy?? Pls. Help!!

Posted: Wed Nov 16, 2011 06:36 am Post Subject: insurance for car aem 9703

to know the insurance from where

Posted: Wed Nov 23, 2011 10:37 am Post Subject: All state payout on a total loss

I have a 2003 ford expedition that was hit while it was parked all state sent an appraiser that stated my car was a total lost.i can't seem to get any information on the process our what I should do next all state can't even tell me who my adjuster is one day is this person and another day its someone car has 150,000 miles in good condition and just brought a new engine that has 60,000 miles on b it.. What should I do and what should I expect

Posted: Wed Nov 23, 2011 10:41 am Post Subject:

What should I do and what should I expect

First, see my sig.

Welcome to insurance companies that hire people to one thing.... and nothing else. One adjuster to handle 1 car accidents, another adjuster to handle multiple car accidents, another adjuster to handle just injury claims, another adjuster to handle just total losses, another adjuster... well, you get the idea. Given them a couple of days to have it reassigned then all that person and leave a message. When they don't call you back, call their supervisor after giving them 24 hours.

Posted: Sat Dec 03, 2011 03:25 am Post Subject: vehicle valuation

What is your phone number I want to call a vehicle in for valuation for Selective Ins. my phone number is 715-[deleted by Moderator MaxHerr -- it is not a safe practice to post personal information such as phone numbers here in public]

Posted: Sun Dec 11, 2011 10:10 pm Post Subject: USA resident

Is there any way I can get car insurance for my daughter who is resident in the USA for the 2 weeks Christmas holiday period? My own insurers will not add her to my policy.

Posted: Thu Dec 22, 2011 06:15 am Post Subject: llinois vehicle insurance laws

Someone believes that in the State of Illinois if you get into a vehicle accident without any insurance that it is now a Felony charge. Is this true?

Posted: Thu Mar 27, 2014 04:06 pm Post Subject: employment

I am already have license I need a company to sell for and how do I get started

Posted: Mon Apr 28, 2014 05:39 pm Post Subject:

car totaled, not my fault, have to pay a deposit to get new car, can I ask at fault drivers insurance company to cover this?

Posted: Mon Apr 28, 2014 06:14 pm Post Subject:

No. They only owe you for the damaged vehicle. If you want, use that money for the deposit.

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