Car insurance-How to insure rental or owners car at low cost

by Mark S » Thu Oct 18, 2007 07:33 am
Posts: 1
Joined: 18 Oct 2007

Car insurance policies provide the required protection you look for your car. Any responsible individual who owns a car must have car insurance coverage. Accidents happen suddenly and when they do happen you must be financially supported. This is when a policy plays an important part.


What is car insurance?

Car insurance is a contract made between an insurer and an individual wherein the individual (policy holder) pays a certain amount of money as premiums and in return the company provides protection in case of an accident. State laws require you to have a minimum coverage so that you're allowed to drive a car.

What does car insurance cover?

Having car insurance protection is also a social responsibility besides the financial security you have. If you get involved in an accident and happen to hurt another individual or his property, you will be liable to pay for the damages. Unless you are financially great and have stored away money for such emergencies, you must need coverage for your car.

A basic policy covers the following:

Depending on the state you live in, some of the coverage are required while others are optional.
  • Bodily injury liability: Car insurance protection with bodily injury liability applies to damages that others suffer because of your fault.
  • Property damage liability: This policy pays in order to repair or replace any property that you cause damage to. This includes any other car or property. This policy covers 'pain and suffering' and this applies to situations when a third party sues you for damages. However, you will get coverage only upto your liability limits and nothing beyond that. If the amount that you need to compensate for exceeds your policy limits, then you will have to pay off the balance.
  • Collision coverage: This policy pays to repair your own car after you get involved in an accident in which your car is damaged. To pay lower premiums, you will have to opt for a high deductible. The greater your deductible, the lesser will be your premium value. However, you must pay off the deductible before the coverage pays up.
  • Medical payments or Personal Injury Protection (PIP): MedPay or Medical payments offers coverage for any medical condition suffered by you or any passenger in your car after you get involved in an accident. If you are driving someone else's car (with their permission) and meet with an accident, you will still be covered under this policy regardless of who caused the accident. However, if your insurer finds out that someone else has been at fault, then after having paid you they might subrogate the other person's insurer.

    Car insurance benefits in PIP coverage also include lost wages and medical payments for you as well as the passengers in your car. Another benefit includes funeral costs. PIP is required in 16 out of the 50 states in US.
  • Comprehensive coverage: This policy provides coverage for any damage that is caused to your car not from any accident. It could be damage from a natural disaster, theft, vandalism, collision with animals and damage from fire. Some states allow comprehensive coverage to replace glass without any deductible. However, this again varies from one state to another.
  • Uninsured/underinsured motorist coverage: This policy covers medical bills in case of any injury caused by an uninsured/underinsured motorist. When you get involved in an accident with an underinsured motorist, his policy will have to first pay up to his liability limits and then your underinsured policy can come into play. This policy also covers pain and suffering and in some states it covers property damage too.

Are rental cars insured?

Even if you got a car on rent, you need to be covered. You may buy rental car insurance to cover you for accidents while on a trip. The agency from where you rent the car will likely have a policy to offer you but it is usually very expensive. So, you may approach your existing auto insurance provider to get you an affordable car rental insurance. Know more ...

How do you get cheap car insurance or save money on current policy?

Here are the top 6 ways in which you can get a low cost policy as well as save money on your existing policy.
  1. Compare prices: Do not just stop at one insurer. Look for the best quotes from at least 3 to 4 companies. Check the company's reputation and rating and seek customer feedback on the internet. See if they offer any kind of discount. Sometimes companies offer discounts, depending on your driving history or if you have had training at safe driving. There are other factors too such as safety measures that you take in your car, anti-theft devices installed, the mileage you drive and the like. You can start by checking online car insurance quotes.
  2. Deductible: Higher deductibles mean you have to pay lesser amount as premiums. However, you must remember that when you make a claim you will have to pay up your part of the deductible before the policy can pay its portion.
  3. Drop collision and comprehensive coverage: If your car is old, you may want to drop collision and comprehensive coverage from your policy. This will save you some money.
  4. Type of car: The kind of car you buy is an important factor in determining coverage for your car. Cars that are expensive cost more to insure. Hence, before you buy a car make sure that you can afford to get it insured.
  5. Low mileage discounts: There are companies which offer discounts to individuals who drive less than a pre-determined number of miles each year. This is also an opportunity where you can get cheap car insurance considering the number of miles you drive.
  6. Buy another policy from the same company: Buying another policy (like homeowners insurance) from the same insurer often entitles you to a discount that these companies might offer. Check with the insurer before buying any policy.

Where can you get best car insurance quotes?

  1. Internet: There are thousands of companies who would eagerly provide quotes online. It saves you time and energy. You can easily compare quotes from different companies and choose an affordable car insurance policy to suit your pockets and needs.

    There are companies that offer cheap car insurance policies which may need you to pay less premiums but provide inadequate coverage in return. However, if you want to buy cheap car insurance policy, look for a company which would provide sufficient coverage at low cost.
  2. Agents: If you do not have access to the internet, you may call an independent agent. The agent will then explain the policies offered by various companies. You may then ask the agent to provide you with affordable car insurance quotes. It is true that you must get a policy that fits your budget so that you do not default on any premium payments. So you must discuss with your agent and let him know that you need a policy that will cover you against any damage. Of course the type of coverage you will get depends on the kind of policy you buy.

Related Readings

Hello everyone,
I have a friend whose car was damaged by another driver. The police came and made a report. My friend then went to a body shop to get an estimate on the damage. She then sent a claim in to the insurance company of the person who damaged her car. The insurance company then mailed a check to this body shop. I assume it's in the body shop's name. Shouldn't the insurance company have sent my friend the check and in her name? What if she decides to have the work done at another body shop? Does anyone know if there is anything she can do about this? I'ts been a long time since I've been in this situation, so I'm not sure what the procedure is. I would appreciate any help. Thanks.

Total Comments: 9

Posted: Thu Oct 18, 2007 11:31 am Post Subject:

Good morning Mark, and welcome to the community,

Yes, she can have this draft in her name only. Have her first contact the shop and see if it is in their name, or if their name is included on the draft, (warning here the shop more than likely will try and get her to come in for repairs etc, they will not be happy about 'losing' the job, and don't even ask them if they will just 'endorse' the draft, they won't they are paying taxes on that money) if that is the case. Have her call the adjuster and tell the adjuster she isn't sure when she will be repairing her vehicle or where and she would like the draft made payable to her ONLY, and mailed to her home. There shouldn't be any problem with this if there is let us know, and we'll go from there, but they should simply stop pay on the original draft and reissue one to her.

If you are an insured with a leinholder, that leinholder has to be protected, so the drafts are generally paid either to the owner and l/holder or owner and shop. But in your friends case she is the claimant, and the insurance company owes no duty to protect her leinholder if there even is one. Understand?

Let us know if any other problems...

Posted: Mon Oct 22, 2007 08:59 am Post Subject:

Hi, I see no point why shouldn't you have the check in your name. Ask her to contact the insurance carrier and state that she doesn't want to mend the car immediately. Some insurer may prefer to pay the body shop directly (it actually makes their job easy), but they shouldn't have problem in rewriting it in her name.

Posted: Mon Oct 22, 2007 09:15 am Post Subject:

Well, lemme assure you, that your friend is free to choose the body shop for the repair works. She can get the compensation check in her name, but as Lori has mentioned, needs to find out whether the check was issued in favor of the shop or not. And thereafter, should inform the company that she wants the check drawn in her name, instead of the repair shop's name. Once she has the check with her name in it, she can pick a body shop of her choice for the repair.

Hope it will make the things little more clear to you. Rupert

Posted: Fri Nov 02, 2007 05:45 am Post Subject:

Hi anonymous RG, Welcome to ampminsure. Your post has been shifted to the following URL.

http://www.ampminsure.org/claims/about3320.html

Thanks,
Lakemen

Posted: Sat Nov 03, 2007 05:27 pm Post Subject:

Be Aware if there is a lienholder on this vehicle they may be required to include their name on the check...

Posted: Sun Nov 04, 2007 12:22 am Post Subject:

CoverageSpecialist This possiblity was covered, please see prior posts....... :wink:


Be Aware if there is a lienholder on this vehicle they may be required to include their name on the check...



If you are an insured with a leinholder, that leinholder has to be protected, so the drafts are generally paid either to the owner and l/holder or owner and shop. But in your friends case she is the claimant, and the insurance company owes no duty to protect her leinholder if there even is one. Understand?

Posted: Sun Nov 18, 2007 06:36 am Post Subject:

Hi EB,

Your query has been shifted to this page >> http://www.ampminsure.org/claims/about3420.html

Thanks,
Lakemen

Posted: Fri Nov 27, 2009 10:35 pm Post Subject: check with my name and lien holders name on it

I received a check to repair damage on my car It has my name on it and the lein holders name on it also do both parties have to sign over this check to thewbody shop?

Posted: Sun Nov 29, 2009 12:14 pm Post Subject:

basser01
Yes, or request your carrier stop pay on this draft and reissue it to you and the body shop only

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