Month: October 2018

Renewing Your Car Insurance Policy

With the exception of the fairly new practice of issuing pay as you go car insurance policies, when you purchase car insurance you are entering into, and bound by the conditions of, a fixed term contract with the car insurance company. In the vast majority of cases this fixed term is for exactly one year since the date of the policy’s inception or beginning.

As you near the end of the period of cover, your insurance company will invite or tender you to renew the contract. These days the systems employed by large car insurance companies will trigger the renewal procedure which initially means the production and posting of a set of renewal documents to the policyholder. This is usually timed so that the invite to renew pack is produced automatically around fifteen days prior to the termination of the existing car insurance contract, giving the prospective renewal policyholder time to correspond with the car insurance company and inform them of any changes that may have occurred during the term of the contract which are not reflected in the renewal documents.

If you intend to renew with the same insurance company you are legally bound to inform this company of any alterations to the statement of fact that you originally made when you first took out the policy.
Likewise you may wish to add or remove elements of cover from the current status of the car insurance policy, as your requirements may well have changed over the previous year.

Because of the compulsory nature of third party car insurance, no ‘days of grace’ are allowed after the renewal date of the policy. This can cause problems for car insurance companies as for practical purposes renewal documents and certificates have to be produced and dispatched to the prospective renewal policyholder in advance, which will become operative from the first day of the new period of insurance.

The renewal certificate, required by law to tax a motor vehicle, in theory cannot be issued until the renewal premium is paid. If payment was received subsequent to the expiry date of the existing car insurance policy, then the certificate would have to be re-written with the operative time and date matched to the time of payment. This could cause a major problem for the car insurance companies, as to issue an unaltered certificate would be equivalent to ante-dating it, which is a criminal offence, whilst re-writing the renewal documents would result in additional costs and expenditure to the car insurer, and more importantly would leave gaps in cover for the policyholder, which would leave a driver exposed to risks and legal action for driving without car insurance.

In order to overcome these practical difficulties of renewals, car insurers have developed a practice of incorporating into the renewal documents a certificate of insurance that is valid for an extended period of seven to fifteen days. This benefits both the prospective renewal and the insurance company by extending the period during which the insured has time to pay the renewal premium, yet still receive a certificate dated from the first day of the new contract period.

Car Insurers are particularly sensitive to what is known as the ‘renewal retention ratio’ , the number of renewals expressed as a percentage of the previous years total policies issued, especially since the introduction of online car insurance underwriting which has enabled a prospective renewal to shop around much easier and perhaps to change supplier.

The issue of this temporary certificate of cover in effect and contract law, constitutes an offer by the car insurance company, which the insured must either accept expressly, by paying the renewal premium, or by implication by doing nothing and having the premium taken from the payment source of the previous year’s policy.

If however the prospective renewal obtains car insurance cover elsewhere or by some action, such as a telephone call, implies that he does not intend to renew and thereby not accept the offer, then this temporary cover would be deemed invalid. If a policyholder does not for some reason receive the renewal quote and certificate, or was unaware of the wording of the renewal notice, he cannot accept an offer and is therefore entitled to a full refund if the money has been debited from his account.

With the vast amount of choice available online for car insurance today, ranging from specialist car insurance schemes targeted at a particular group to the aggregator comparison websites, huge savings can be made by a policyholder at renewal if they are prepared to shop around for equivalent cover. It may not be in the best interests of a policyholder to blindly accept an offer to renew a car insurance contract without recourse to other offerings in the market which may be more suitable for their particular circumstances. Car Insurance rates vary immensely and it is not unheard of for companies to match or better a renewal offer from a competitor if you pick up the phone and give them a ring.

Choosing Your New Car Insurance

Insurance for your new car is a very important financial decision, and shouldn’t be organised in a rush. All financial decisions should be made only after appropriate research and consultation. Start investigating your new auto insurance options long before you finalise the purchase of your new car.

New car insurance, like any other major financial commitment, should be purchased with caution, after careful research and consideration. Identify the new auto insurance best suited to your needs, choose the insurer offering you the best deal, and then allow for the cost of your new vehicle insurance in the budget for your new vehicle purchase.

Factors Affecting Your New Car Insurance

When pricing their new car insurance, insurers will consider a wide range of variables. The market is competitive, so they want to hold premiums as low as possible, but at the same time, they are in business to make a profit, so they need to charge you enough to cover their overall risk.

For these reasons, insurers will look at the statistics, and try to identify any factor which influences the likelihood of you making a claim, or the size of the claim.

This is why the cost of the vehicle is a major consideration, along with obvious variables like your driving record, and the ages of the regular drivers of the vehicle. If you vehicle has safety features, which make a personal injury claim less likely, or reduce the likely size of a claim, it will reduce your new car insurance premium accordingly. And if your new vehicle is a make or model which is particularly likely to be stolen or damaged, you will, unfortunately, be paying a whole lot more for your new auto insurance.

Some insurers consider credit score, hopefully on the basis of statistics, although it is not immediately obvious that there is a direct connection.

There are also factors which you can control to some extent. Many insurers will allow you to choose the amount of your deductible, or excess – this is the contribution payment you make when you make a claim. Some insurers charge you the deductible for every claim, while others will only charge you if you are at fault. The higher the deductible, the less the claim costs the insurer, so choosing a higher deductible can reduce your new car insurance premium.

How To Get New Car Insurance

The easiest way to get new auto insurance is to phone your insurer and ask for a “cover note”. This temporary new car insurance will cover your vehicle for a few days, while you complete the necessary paperwork for your full new vehicle insurance.

New car insurance in important, and often overlooked or rushed. Take the time to shop around, and really understand your options. Read the find print, ask questions, and make sure your new auto insurance really provides the cover that you need.

There is nothing worse than getting to the point of making a claim, only to discover that your new vehicle insurance doesn’t cover whatever just happened to your car. The $2.50 per month that you saved on the premium suddenly doesn’t seem like such a good deal, then.

Free Car Insurance Estimates

Law of the land requires every motorist on the road to have his car insured.  Besides the requirement of law it is otherwise also beneficial to you and provides a sound protection from potentially demolishing consequences if some accident occurs. Once you are insured and some accident occurs, the insurance company assumes liability for your actions.  There are various plans of insurances and some will pay to repair your or repair the other vehicle involved and there are others that will cover cost of medical expenses if somebody is injured. In the absence of any such insurance, you will be solely responsible for all these expenses besides the litigation that you might have to face. The first step involved in getting your car insured is obtaining car insurance estimates.

For determining the charges for giving you insurance coverage, the insurance companies consider various factors.  They will check several other things also like the car you drive, your gender, your age, how much you drive, your driving records, your credit history and your marital status.  These companies would also like to know the type and amount of coverage you would want.  While there are certain things that are within your reach, there are some other things on which you have no go.  These things play a great role in determining the amount of premium payments that you will have to bear.  For instance, if you can keep your driving record clean, it can be used to lower down the premium payment.

It will be helpful to you for ever to get various accurate car insurance estimates so that you could choose the best suitable to you.  It may be kept in mind that you are not under any obligation to buy if none of the offers is of your liking. There are some very famous brand insurers that show you the ways to save hundreds of dollars on your annual premium.

Every car insurer offers different car insurance estimates.  Their formula for calculating premium is different.  One insurer may not take into consideration seriously an accident or traffic ticket while the other may offer discount on car insurance estimates if you have undergone an approved driver safety course.

With large number of factors affecting car insurance estimates, a casual approach in this matter will not be of much benefit to you. There are so many car insurance estimates available online.  It hardly requires wee minutes to fill out and get an updated and exact car insurance premium from local agents. Then it’s up to you to assess and evaluate the rates and decide which one to choose.

As a matter of fact, everyday you see advertisements on television or on the internet.  All insurance companies claim that they offer the best car insurance estimates with best coverage for your car.  It may be kept in mind that your coverage and rates will be determined by various factors as already stated above.  Further there are very limited companies that may have recorded their presence in all locations.  Otherwise most of the insurance companies are confined to their respective locations only.

It is the requirement of every state that your auto must be insured.  In case you have acquired your car through financing, the lender will require comprehensive and collision insurance that covers the damage to the vehicle.  You can make your search for insurance estimates more pleasant.  Most of the reputed companies provide car insurance estimates free of cost on the internet.  While looking for good car insurance estimates, you can pick up the phone, as a first step, and starting inquiring from various insurers of your locality. It does not take much time to search an affordable rate for insurance. To obtain free car insurance estimates you can go to the internet, enter the ZIP code of the destination of your vehicle, reply a few quick queries and can easily compare several car insurance quotes to arrive at your cheapest rate.

Acquiring Second Car Insurance

Sometimes a car enthusiast will find a second car that needs to be restored or rebuilt. They spend many hours working on the car to create an exact replica of the original vehicle. Often times having second car insurance does not enter the enthusiast’s mind because they spend so much time restoring the vehicle. It is important though that second car insurance be the first thing that a car enthusiast thinks about when they get a car to rebuild or restore.

Acquiring second auto insurance is also very important when a car is selected for a child who is going off to college. Many times a student’s auto insurance will be much more expensive than it is when added on to an existing policy as second car insurance. The vehicle covered by the second car insurance enjoys all of the benefits of the primary car. The driver will receive free towing and other services offered by the insurer. They will also have the advantage of working with a insurance group that already knows the family that is getting the second insurance.

In most states all cars must be covered by insurance to legally be on the road. Second car insurance will assure that all of your vehicles are properly insured and you will not be liable for an accident in an uninsured vehicle. When acquiring second car insurance it is important to find out what the increase in the primary policy will be and also to make sure that all the individuals who will be driving the cars are covered under the policy. In some insurance policies, there are strict restrictions on who can drive specific cars. If you are purchasing second car policy for a child, you will want to be sure that your child is insured in any car that they drive.

Whether you are restoring a car, rebuilding a car, or purchasing a car to be used by a member of your family, it is important that you also purchase second car coverage when you purchase the car. Once your have purchase a second car insurance policy you will not have to worry about accidents or damage to the vehicle that you have invested in, and your car will be legal to drive on the roadway. This is very important when you are planning on sending a child off to college and do not have time to spend in acquiring a standard insurance policy for the car they will be using. In most cases acquiring second car insurance involves a simple phone call to your insurer to add the car to your primary policy and will not require an expenditure of funds to make the addition to your primary policy.