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.
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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:
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- 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:
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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:
- Age and gender of the driver
- Driving records/ history of the one to be insured
- Prior claims history
- Efficiency of the driver (driving education)
- Model, make and type of the vehicle
- Age of the vehicle
- Mileage of the vehicle
- Location (where it'll be used)
- Purpose for which the vehicle is used (work, personal, pleasure or commercial etc.)
- How the vehicle is garaged
- Your choice of deductible, limits of coverage and benefits
- Auto insurance score
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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.
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- Safety measures: A few insurers offer discounts for safety measures like anti-lock brakes on used cars.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- Good credit history: Maintaining good credit history may also entitle you to certain discounts.
- 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.
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.
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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
- Where to find cheap auto insurance quotes
- Auto insurance FAQ
- How do automobile insurance claims affect your policy?
- What are the advantages of getting auto insurance quote online?
- Should you drop collision coverage from auto insurance policy
- How to get affordable auto insurance quote for teenagers
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?
Posted: Wed Jun 25, 2014 06:14 pm Post Subject: bank said they own my car and is giving it to insurance co t
Insurance co totalled my car from hail damage.they are giving bank 6000 $ for it but bank wants me to cont to pay remai.ing 6000 $.on it.even though it was the bank not me that accepted the claim.
Posted: Wed Jun 25, 2014 06:16 pm Post Subject: bank said they own my car and is giving it to insurance co t
Insurance co totalled my car from hail damage.they are giving bank 6000 $ for it but bank wants me to cont to pay remai.ing 6000 $.on it.even though it was the bank not me that accepted the claim.
Posted: Sat Nov 29, 2014 08:48 am Post Subject: How to sue insurance bad faith pa
first I was in an accident in june 2013 have full torch was never explained the under insurance was basiclally sent papers to decline it I filled out papers wrong showing lawyer on monhday because even with full tork I was told I can only get 25000 cause that's all they had I had to get arm surgery and my 7 year old daughter was in behicle?
and Geico what a nightmare on march6th this year my na burnt down geico totaled iit, made me give t months of my pphone record adjuster never looked at my car didn't hive me my rental car which I had full coverage well when geico called my lean holder gave check santmder a the check for 12500 without even telling me so I had to fight forever to get any money bacjk and then pt it in my record oa charged off paid off an I owe them 2500 when I hat a paper from them paid off ..... Some one please et me know mmy rights.
Posted: Sat Nov 29, 2014 05:44 pm Post Subject:
and the post above is why you should stay in school, kids.
Posted: Thu Dec 04, 2014 11:43 am Post Subject: Cashed check
Hi all,
So I would like some opinions on this:
Our auto insurance company sent us a check for approx $3000 which my wife promptly cashed (total repairs ended up being approx $6000). After we got our car repaired the auto body shop gave us our car back after we payed our deductible. The insurance company payed the auto body shop for repairs minus the amount they sent us ($3000). Of course the auto body shop is now looking at us to receive the full payment.
The twist here is I'm filing for bankruptcy and don't have the money to pay them. What is the auto body's course of action here? Is it to sue me for the difference? Do they have a case? Or can I write this off in my bankruptcy?
Thanks for any answers.
Posted: Thu Dec 04, 2014 01:28 pm Post Subject:
The twist here is I'm filing for bankruptcy and don't have the money to pay them. What is the auto body's course of action here? Is it to sue me for the difference? Do they have a case? Or can I write this off in my bankruptcy?
Wow... so you screwed over the body shop. Nice.
Less the bankruptcy, yes the body shop could pursue you for the $3000 after all, you agreed to pay them and you did not.
As far as how the bankruptcy is involved, as I understand it you need to inform the courts of _all_ debts. This is certainly a debt. The court will determine how this is handled. Do you really think a person simply gets to walk away from all debt when they declare bankruptcy?
Why on earth the body shop would have released your vehicle without full payment is beyond me. Either they made a _huge_ mistake or (I'm guessing since you did not have any problem screwing them over) they they might have been mislead in some way. They _should_ have kept your vehicle and then sold it to make up that $3,000.
Posted: Fri Mar 20, 2015 09:50 pm Post Subject: 3 months later, and nothing is done.
I am at a loss. My cas was involved in a three car read end accident. I was the first car, a rental car was the middle car, and a state farm insurer was the car that casued all the problems.
One month into the accident, the claims person from state farm said they havent been able to contact their insurer. Where does that leave me? No car for a month. Second month.. Same thing. Now state far is saying cant reach Avis rent a car.
Seems insurer only had 25000 in coverage, and that the rental (new mustang) may have taken the whole 25000, leacing my 4000 car with nothing. Does this sound right!
I am really at a loss and dont know what to do!
Any suggestions?
Posted: Sun Aug 02, 2015 11:57 pm Post Subject: Totaled auto involved in accident
In 2013 our area received a massive hailstorm damaging everything for miles around. My 2005 CTS was declared totaled, yet I retain the automobile in the settlement. Presently, the automobile was involved in an accident and the other driver ran a red light. He was at fault and received the ticket for running the light. He has insurance, and I have insurance also. My question is since my car was deemed totaled previously before this accident and now it is totally demolished do I receive any compensation for my vehicle?
Posted: Mon Aug 03, 2015 12:02 am Post Subject: Totaled auto involved in accident
In 2013 our area received a massive hailstorm damaging everything for miles around. My 2005 CTS was declared totaled, yet I retain the automobile in the settlement. Presently, the automobile was involved in an accident and the other driver ran a red light. He was at fault and received the ticket for running the light. He has insurance, and I have insurance also. My question is since my car was deemed totaled previously before this accident and now it is totally demolished do I receive any compensation for my vehicle?
Posted: Mon Aug 03, 2015 01:46 am Post Subject: Totaled auto involved in accident
In 2013 our area received a massive hailstorm damaging everything for miles around. My 2005 CTS was declared totaled, yet I retain the automobile in the settlement. Presently, the automobile was involved in an accident and the other driver ran a red light. He was at fault and received the ticket for running the light. He has insurance, and I have insurance also. My question is since my car was deemed totaled previously before this accident and now it is totally demolished do I receive any compensation for my vehicle?
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