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: Sun Jun 20, 2010 05:13 pm Post Subject:
a grace period
A grace period, technically, is the time following the due date of a premium and the time the policy lapses for nonpayment of the premium. In auto insurance, it is typically 10 days.
When purchasing auto insurance online, you need not accept a quote. You are free to obtain as many quotes as you choose to before deciding which to accept. What else do you need?
I have just inherited an english registered car however the insurance company have cancelled the existing insurance. How can I insure this vehicle until it can be sold.
If the vehicle is here in the US, it should be insurable with any company admitted to transact insurance in your state.
Posted: Fri Jul 16, 2010 03:06 pm Post Subject: what is auto insurance
Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy. Auto insurance provides property, liability and medical coverage:
* Property coverage pays for damage to or theft of your car.
* Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
* Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.
An auto insurance policy is comprised of six different kinds of coverage. Most states require you to buy some, but not all, of these coverages. If you're financing a car, your lender may also have requirements. Most auto policies are for six months to a year. Your insurance company should notify you by mail when it’s time to renew the policy and to pay your premium. you can read more here, (no you cannot...link removed and PM sent by moderator-lori)
Posted: Sun Aug 08, 2010 05:36 am Post Subject: Auto Insurance
Searching for car insurance can be a hassle and a time consuming activity. Making sure you have the best coverage for the least amount of money requires you to shop many different agencies and
compare plans. The best way to make the car insurance buying process go as smoothly and easily as possible is to shop online and request free auto quotes, different companies, plans, and
different automobile insurance rates from the comfort of your home computer.
Comparison Shopping Web sites
Finding an online automobile insurance company is simple. Doing an Internet search for “auto insurance” or “auto insurance comparisons” in any online search engine will bring you results of
companies that offer car insurance and allow you to compare plans and rates with that agency and with their competitors. Have your personal information ready; name, DOB, drivers license, and phone
number as well as the detailed information of your vehicle; make, model, year, and possibly the VIN number. All of this information can be found on your vehicle’s registration paperwork or its
pink slip.
Know Your Budget
How much each month can you afford to sacrifice on auto insurance? How much coverage and what kind do you really want? What is the difference between collision and comprehensive coverage? Do you
need them both? What are your state’s minimum requirements for insurance? All of these things are questions that you will need answers to in order to save yourself the most money and get the best
coverage. Depending on your vehicle, driving history, and past insurance claims, your premium will vary from company to company.
If in Doubt…
… call an agent. If you are lost by the information you find online, choose an agent from one of the web sites and give them a call with your questions ready. If they are a good agent they will
patiently answer your concerns without high-pressure-selling you. Remember, it doesn't cost you a cent to get a quote, and the insurance representative needs your business more than you need to
give it to them if they begin to pressure you into coverage.
When you start your search to find affordable insurance coverage, be patient. There are many of choices out there, some good, some not so good. Do your do dilgance and find out what your state
requires for insurance. Decide how much you can spend on insurance. Decide how much you really need on your vehicle. Start your comparison research online, and if you have any or questions, call
a representative. Do not let yourself get pushed into coverage you do not need by a pushy insurance representative. Keep these things in mind and your patience in check and you will successfully
Posted: Sun Aug 08, 2010 01:08 pm Post Subject:
If in Doubt…call an agent. If you are lost by the information you find online, choose an agent from one of the web sites and give them a call with your questions ready. If they are a good agent they will patiently answer your concerns without high-pressure-selling you.
[and subsequently]
Start your comparison research online, and if you have any or questions, call a represenitive.
Why not save yourself all the hassle and call an agent first?
D-I-Y may work at Home Depot, although plenty of people have electrocuted themselves trying to replace a circuit breaker or carved limbs off their bodies with power saws, but there are at least four or five times as many inexperienced persons who have tried the D-I-Y insurance route, only to end up in D-I-Y bankruptcy court trying to recover from a collision in which they were at fault and woefully underinsured. All because they did not understand the tradeoff between minimum liability limits and minimum premiums and sufficiently high liability limits with premiums perhaps $20-$40 per month higher.
Working with an agent -- a living, breathing human being who can ask the right questions -- is far more beneficial than merely saving a few dollars that will ultimately by wasted on something with too many calories at a neighborhood coffee shop (or something similar).
Posted: Sat Aug 14, 2010 11:49 am Post Subject: When someone sues for more money than your coverage.
Someone is sueing my husband for more than his liability, what can happen to any savings or retirement funds I have as this wife, if we do not settle for the amount the insurance company can pay. Am I protected. Also, what about my husbands retirement and savings, can they touch our future???? :cry:
Posted: Sun Aug 15, 2010 02:08 am Post Subject:
Savings are one thing, retirement plan assets are another. Personal savings are subject to attack, but retirement plan assets in a qualified plan are protected under federal law.
Are you represented by an attorney? You don't state what your liability limits were or what the claim against your husband is. It's hard to know what to tell you under the circumstances.
Posted: Thu Aug 19, 2010 01:27 pm Post Subject: How to do less and get more?
Hi,let discuss this questions?
Posted: Thu Aug 19, 2010 01:29 pm Post Subject: Hello
I am the new one here now.Nice to meet every one...
Posted: Sat Aug 21, 2010 10:49 am Post Subject:
Thanks for sharing about the great idea. It was very helpful for me. Keep posting in this post topic. Thanks
Posted: Sat Aug 28, 2010 03:03 am Post Subject: saving
Savings is a good thing ,you can use it when something emergency occur.
retirement plan is good for both oneself and society,so when we are young and strong ,work hard!
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