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: Thu Feb 10, 2011 11:35 pm Post Subject: medical/no fault

If a passenger in car is injured and I caused the accident, who is responsible for medical bills?

Posted: Sat Feb 26, 2011 02:52 am Post Subject: insurance claim

If i own a vehicle and i perform the repairs on it can i charge labor?

Posted: Mon Apr 11, 2011 09:10 pm Post Subject: Lienholder

I was in an accident when it was icing and snowing on the road and damaged my vehicle. I received a check that was written out to me and my lienholder. I sent the check to the lienholder for endorsement and I did not sign the check before sending. They have kept the check so long, we had to pay the shop out of pocket. Since they have had the check for almost a month, my car payment was just due and now they are saying they will not send the check unless I make a payment or they will cash the check and apply part of it towards my payment and send me the remaining amount. Can they cash the check without me endorsing it???? And is this legal for them to hold my insurance check until i make a payment??? :x

Posted: Sun Apr 17, 2011 12:30 am Post Subject:

Since they have had the check for almost a month, my car payment was just due and now they are saying they will not send the check unless I make a payment or they will cash the check and apply part of it towards my payment and send me the remaining amount. Can they cash the check without me endorsing it???? And is this legal for them to hold my insurance check until i make a payment???

Insurance claims and loan payments are unrelated unless the vehicle's damage was a total loss, which is not your situation.

It is ABSOLUTELY UNLAWFUL for the lienholder to impair your right to the insurance claim check by demanding that you make a loan payment. Similarly, you cannot impair their right to collect payments on the vehicle loan -- you are contractually obligated to pay 100% of the loan principal, and interest until the principal is repaid.

The two matters are ENTIRELY UNRELATED ACTIONS. Your lender's demand conditioning sending you the insurance check on you sending a loan payment is not likely to be a part of your loan contract.

If your lienholder cashes the insurance claim check and fails to send you 100% of the money, and instead uses any part the money to pay themselves, that is known as CONVERSION, and they can be sued for doing that (just like it is unlawful for the bank to take money from your savings account without your consent to pay a check written against a different account). If the lienholder signs your name on the back of the check, they have committed FORGERY, for which they can be prosecuted (same as you could be for signing their name).

But don't fail to make your loan payment. For that, they could repossess the vehicle. And you would have little recourse.

It is unconscionable that the lienholder has acted in this manner. You should consider seeking legal counsel to inform them of the error of their ways. In a best case scenario, you might even obtain title to the vehicle with no additional payments as punitive damages. Even if they send you the insurance check after you make your payment, you can still sue them for breach of contract -- but your attorney will need a copy of your loan contract to find the provisions he/she needs to cite as the cause(s) of action.

Posted: Sun Apr 17, 2011 10:02 pm Post Subject: Gap Insurance

What if I total out my car with no Insurance on it, but I did have the gap insurance from the dealership wil that with the payoff.

Posted: Mon Apr 18, 2011 12:15 pm Post Subject:

NO. Guaranteed Auto Protection (GAP) insurance only pays some or all of the portion of your loss not paid by your own insurance (or the insurance of someone else who caused your damages). It will never pay the ENTIRE LOSS.

Besides, you do not normally get GAP insurance as a "stand alone" policy, you get it as an added provision in your personal auto policy. If you cancel or lapse your policy, you probably have no GAP protection.

Posted: Tue Apr 26, 2011 02:25 am Post Subject: ins after an accident

is there some1 out there who can help an absent minded ol fool who was jus trying to make their nephew/nieces lives more "easy" by giving them a vehicle...later is responsible for all the legal woes like repo, accident etc etc. Seriously is there such an ins that can assist....????

Posted: Wed May 04, 2011 10:32 pm Post Subject: Can I su my insurance company or agent?

I was involved in an accident while driving in inclement weather, I started hydroplaning and lost control of my car. I ended up slamming into a guard rail and damaged the back end of my car. I filed a claim with GMAC, when the adjuster called me back she informed me that the vin number was wrong on my policy(this was my agents fault) and that my car was not covered. My agent admitts to the mistake, but wn't take responsibilty for fixing my car. It has now been 3 weeks. I have complained to the insurance comission and wrote several letters and did not receive a response. I can't find a lawyer to take my case because there was no other car or person involved. What can I do now??


Posted: Mon Jun 13, 2011 06:13 am Post Subject: Mold Possibly caused by sunroof

Hello, my wife and I have our two cars covered through progressive insurance in Massachusetts. My wife had told me a few times that her car smelled of mold. Then a few months back I was driving and observed some water pour out of the dome lighting. I suspect that this is coming from a problem with the sunroof. Well now I noticed a VERY strong smell of mold and have discovered, what looks like mold coming out of one of the speakers on the dashboard. I have a 11 month old baby and I do not want her riding in this car one day longer(my car is a 2 door that is in worse shape then my wife's). My question is weather or not you think this is covered under my comprehensive insurance? Please give your advice on how I can go about getting this car either replaced or fixed and mold free.

Under my policies "General Provisions and Exclusions"
this is listed:
. .We wll not pay for damage to your auto which is due solely to ordnary wear and
tear, freezng, mechancal or electrcal falure, or for ordnary road damage to tires.
We willl, however, pay for ths damage. if it is the result of some other loss which is
covered by ths polcy.

Posted: Wed Jun 15, 2011 08:53 am Post Subject: Auto Insurance online - How it protects you and your vehicl

Thanks for this topic . I was wondering to gather information about Auto Insurance online and about protect yourself and vehicles . Thanks for sharing it.

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