Category: Auto Insurance

Checklist For When You Compare Car Insurance Rates

If you’re looking for car insurance, perhaps the best way to compare car insurance is online. There are several factors you should consider before you buy car insurance.

Type of policy

When you compare car insurance, consider the type of policy you’re looking for. Are you going to want comprehensive coverage, collision, or just liability? In general, if your car is more than 10 years old and you have it paid off, you should only opt for liability coverage. Liability coverage is mandatory in most states regardless of the car you drive. You must have this type of insurance in the event you’re involved in an accident and are found at fault. Liability insurance covers both personal injury and property damage for the other party, as in up to $50,000 in property damage and $25,000 per person for personal injury. The amount of coverage you need varies by state. Check to see how much you need where you live.

Two other types of insurance coverage are collision and comprehensive. Liability coverage does not cover anything about you personally, or your car. That type of insurance is only to cover the other party for personal injury or property damage if you are at fault. This is where collision and comprehensive coverage may be needed. Both collision and comprehensive insurance protect your car in the event of an accident or other damage, regardless of who may be at fault. Collision insurance covers car accident damage specifically, while comprehensive insurance pays for damage to your car that may have happened because of vandalism or theft, for example. Again, you generally only need either of these types of coverage if your car is under 10 years old or hasn’t been fully paid off. You will pay more for this type of car insurance than you will for just liability, though, if you need it.

Your driving record and credit score

When you compare car insurance, of course your driving record is going to come to mind. If you’ve had a lot of speeding tickets or several accidents, it’s going to be tougher to get inexpensive insurance and you probably know this. However, you may be surprised to know that your credit score matters, too. This is because insurance companies look at your level of responsibility in a holistic manner, in that they look at your “whole life” as much as they can. Your credit score tells them whether or not you’re responsible in general; if your credit score is poor, it’s going to affect the amount of insurance premiums you’ll have to pay, and you’ll likely have to pay more for the same coverage than someone who is more responsible than you are. Some insurance companies may not cover you at all. If your credit score is poor, spend some time to get it cleaned up as much as possible before you start getting car insurance rate quotes.

Having more than one policy with the same company

When you compare car insurance, a good place to start is with the same company that carries your homeowners or renters insurance. This is because the same company will often give you a break on automobile insurance if you carry more than one type of insurance with them. However, you shouldn’t stop there.

Shop online

The best way to compare car insurance quotes between insurance companies is to shop online. Again, although you’re going to want to start with the same company that provides your homeowners or renters insurance, you shouldn’t stop there. You may still get a better deal from someone else. The Internet has made it very easy these days to comparison shop between companies, and you can often get an instant quote online based upon information you provide to a specific company. This should help you find the best car insurance rate possible.

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.

Three Car Insurance Policies That Benefit a Motorist

A motorist should purchase a No-Fault Coverage because it would enable an insured motorist to pay for the medical expenses and economic losses of the other driver, the other driver’s occupants and any pedestrian that got involved in the car accident. It enables an insured motorist to pay all the victims of the car accident without having to prove who is at fault or who the negligent driver that caused the car accident is. No-Fault coverage is designed to protect all the victims involved in the accident so that they could restore their health immediately so that they could also return to their productivity state immediately as well. No-Fault only covers bodily injuries and does not cover the payment of property damages that resulted from the car accident.

Because No-Fault only covers for bodily injury and economic losses, I suggest that a motorist should avail for the Liability Insurance. The Liability insurance covers both the bodily injuries and property damages. In other words, in case an insured motorist or anyone he permits to drive his car is accused by a third party to be responsible on a certain car accident, the Liability insurance pays for the hospitalization of those injured and the property damages for the properties damage due to the car accident.

You may be wondering why are my suggestions only pay for the hospital expenses and property damages of the other party, and there is none for the insured driver’s hospital expenses and property damages. That is why I also suggest every motorist to purchase the Uninsured Motorist Coverage, which also includes the Underinsured Motorist Coverage, and the Collision and Comprehensive Insurance. In case the insured motorist got involved in a hit-and-run accident or the negligent driver is either an uninsured motorist or an underinsured motorist, meaning has a certain level of car insurance but has minimum level of coverage that would not be enough to cover for the expenses due to the car accident, the Uninsured Motorist Coverage would enable the insured driver to have his and his occupants hospital expenses for their bodily injuries be taken care of the insured motorist car insurance company. In addition to hospital expenses for bodily injuries it also takes care of the property damages the insured motorist’s car acquired in the car accident. And in case of other kinds of car accident where in an insured motorist’s car got damage, like for instance the car slipped and got damaged due to icy road or the car got damage because it got hit by a deer, the Collision and Comprehensive Insurance will be shouldering the repairs for the property damages inflicted on the insured motorist’s car.

Lowest Car Insurance Strategies and Tactics

Getting the lowest car insurance is all about planning. It is best to do this well before you need to find the lowest car insurance. There are two aspects to finding the lowest auto insurance: strategies and tactics.

The best way to get the lowest car insurance is to be the sort of person that an insurance company wants to insure. If you are a safe, reliable driver with years of experience and you live in a secure environment and do not make claims then an insurance company will normally offer you a low car insurance premium to insure with them.

Strategically you need to become a low insurance risk to insurers. This way you will attract the lowest car insurance quotes. You can do this by becoming and staying a safe driver. Driving whilst tired and distracted can increase your chance of being involved in an accident. An accident may still not have been your fault. But if you remain alert you are better at anticipating what other drivers might do. This could result in you avoiding an accident. It could even save your life. When you drive try to anticipate what other drivers might do. It will make you a safer driver. Stay calm when other you see other aggressive and impatient drivers. We all see drivers that we think will be involved in an accident if they carry on that way. If these people are going to have an accident make sure you are not close to them when they do.

If you want the lowest car insurance then check the insurance band or category that your car belongs to. Choosing a car in a lower band will save you money every year you own it. The insurance category for a car will be a combination of factors. It is likely to include the car’s power and performance, purchase price and costs to repair.

Then it is time to move onto the tactics for getting the lowest cost car insurance. Firstly decide how much time you want to spend searching for the lowest auto insurance. Speak to friends and family in advance so that you have an idea as to what you might be paying. Remember that different car insurance companies may be targeting different types of customer. They may be very competitive for one group of drivers and not for other groups. So, it is best to talk to people similar people to yourself and who drive similar cars. This should help you set a benchmark price. A price that you feel is reasonable but which you want to beat if possible.

If you are busy and don’t have lots of time to search for the lowest car insurance then get an insurance broker to look for you. Maybe you’ll need to check a couple of brokers who will be paid a commission by the insurance company.

You can also quickly check for the lowest car insurance at one of the comparison websites. Decide what insurance you are looking for and you can then compare the costs. If you want to reduce the cost of your insurance then consider what excess amount you can accept. A higher excess for any claim will normally lower your premium. Not all insurance companies are included on comparison sites so you may want to get a quote directly.

Sometimes you may be buying more insurance than you need. Has your insurance quote included extra elements? These may include charges for a protected no claims bonus policy. Does it include an element of windshield cover? Does it include breakdown cover, claims administration service or some element of accident and health cover? If you have a claim do they provide a car while yours is being repaired? You can reduce your cost and get lower auto insurance if you exclude these different elements.

Before you finally decide on your car insurance check the payment terms. Sometimes insurers offer installment plans. If you will be spreading your payments over a number of months you will need to understand if you will be paying extra for this. There is no point finding the lowest auto insurance if you then pay a lot more in the way of finance charges.