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 Jul 24, 2011 05:52 am Post Subject: auto insurance differences
Can women get cheaper auto insurance rate compared to men?
Posted: Sun Jul 24, 2011 02:08 pm Post Subject:
From age 16-25, auto insurance rates for women may be slightly lower than for men. But by age 26, all bets are off.
Posted: Tue Aug 23, 2011 03:23 pm Post Subject: 2003 Lincoln Totaled
Hi, I have an '03 Lincoln Town Car that was just totaled. State Farm is in the process of getting me a value and I was wondering what you think the car is worth. it is a Signature series with 288,000 miles in average condition. minor surface rust etc. I was hit broadside and am getting the idea i am about to get creamed again by the insurance. Thanks, Chris
Posted: Wed Aug 24, 2011 05:22 am Post Subject:
with 288,000 miles in average condition
Are you serious? With that kind of mileage, the vehicle is next to worthless. Average trade-in price according to NADA is about $2720.
http://www.nadaguides.com/Cars/2003/Lincoln/Town-Car-V8/Sedan-4D-Signature/Standard-Equipment
Posted: Thu Sep 08, 2011 04:00 pm Post Subject: I lost my insurance. How to get a new one?
I have Honda Activa in the name of my wife. she died recently. Now i dont know where are insurance papers? Please guide me, what to do ?
Posted: Fri Sep 09, 2011 08:02 am Post Subject:
Do you know the insurer’s name???
If you do, then simply call them and tell them about your loss of documents.
If you don’t know even the company name, then you can try to locate where the premiums of the policy were going by checking the bank statements for the current and past year.
Once you know the insurance company name and contact it, I’m sure they’ll help you out.
Posted: Fri Sep 09, 2011 08:37 am Post Subject:
Contact the agent of your other policies, like home or health insurance. The auto insurance could've been with the same insurer.
Posted: Thu Oct 13, 2011 05:33 am Post Subject: Mexico insurance
Hey,
Can you please suggest me few Mexico insurance companies. I want to travel through Texas and looking forward for a good company keeping in mind the affordability prospect.
Regards
Chris Lee
Posted: Mon Oct 17, 2011 12:35 am Post Subject:
Mexican auto insurance will not cover you while driving in Texas, and driving in Mexico without a Mexican insurance company-issued policy is both a criminal and civil offense. You can be thrown in jail and your vehicle impounded if involved in a collision or stopped for a minor traffic offense.
Posted: Tue Oct 18, 2011 07:57 am Post Subject: hi :)
To ensure you get the best car insurance for your needs, shop around or try request for quotes. They will narrow down the choices offered by the marketplace. :wink:
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