Auto Insurance online - How it protects you and your vehicle

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.

What does auto insurance cover?

Your basic policy should cover the following:
  • 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:
  • 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:

  1. Age and gender of the driver
  2. Driving records/ history of the one to be insured
  3. Prior claims history
  4. Efficiency of the driver (driving education)
  5. Model, make and type of the vehicle
  6. Age of the vehicle
  7. Mileage of the vehicle
  8. Location (where it'll be used)
  9. Purpose for which the vehicle is used (work, personal, pleasure or commercial etc.)
  10. How the vehicle is garaged
  11. Your choice of deductible, limits of coverage and benefits
  12. Auto insurance score
To know how these factors affect your auto insurance rates, click here.

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.
  1. Safety measures: A few insurers offer discounts for safety measures like anti-lock brakes on used cars.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. Good credit history: Maintaining good credit history may also entitle you to certain discounts.
  9. 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.
Apart from the above, there are other ways to maximize your auto insurance benefits while minimizing costs. Learn more...

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.

Related readings

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?

Total Comments: 154

Posted: Sat Jan 23, 2010 11:42 pm Post Subject:

Looks like the poster of this article has never come back to respond to any of the posts..

I've GOT to clear up a couple of things...

Collision coverage: This compensates for damage to your (policy holder) vehicle as a result of collision with another automobile or any other object. There is generally a deductible. Even if you are at fault in an accident, this policy will cover the repairing cost of your vehicle minus the deductible. If you are not at fault, then your insurer will try to recover the cost from the faulty driver's insurer.

Collision 'coverage' (NOT POLICY), does NOT cover the collision between the insured vehicle and ANY other with an animal covered under Comp coverage..

Uninsured/Underinsured Motorist Coverage (UM/UIM): Individuals who buy cheap motor insurance are often underinsured and cannot get enough money to pay for losses when involved in an accident. If an uninsured or underinsured or a hit-and-run driver hits you or your family member, this policy will reimburse the cost of damage. .

NO NO NO AND NO AGAIN!!!! First off, these are two completely different COVERAGES..they are not sold together! UM is Uninsured motorist coverage and required by most states...the UM that is required is UMBI, (uninsured motorist bodily injury), and will NOT reimburse you or your family member for ANY covers INJURIES (only) caused by an uninsured driver...if you purchase (separately) UMPD, (uninsured motorist property damage)...then and only then will you get the damages caused by an uninsured motorist covered, (other than the obvious collision coverage)..

You will also be protected if you are hit as a pedestrian. When you buy car insurance compare quotes for UM/UIM from different companies

"IF" the car that hit you is uninsured...UIM, will cover the person and the vehicle damage if the at fault party's limits were too low to meet the loss..regardless of the loss..

Posted: Wed Feb 03, 2010 07:16 am Post Subject: car insurance

what will happen to my car insurance if i haven`t pass any accident?

Posted: Wed Feb 03, 2010 12:12 pm Post Subject:

what will happen to my car insurance if i haven`t pass any accident?

I guess keep trying and maybe you won't "fail" it next time? :?

I have no idea what you're asking...I'll hazard a couple guess' are you asking, 'what will happen to my car ins if I haven't had any accident? You won't get an accident related rate increase...."what will happen to my car ins if I have a past accident?" You'll pay higher premiums than someone who didn't have a past accident.. :roll: :?

Posted: Tue Feb 09, 2010 08:44 pm Post Subject: Insurance Fraud?

My son is married and living in another county. We still have him on our policy because it cost less. Is this insurance fraud. Can we continue to cover him even though the car is regstered in his name and he does not live with us

Posted: Tue Feb 09, 2010 09:37 pm Post Subject:

As long on the insurance company knows the "garage" location of his vehicle, I see nothing wrong with this.

Posted: Wed Feb 17, 2010 10:59 pm Post Subject: insuring a box van

where can I get a personal policy on a box van?

Posted: Wed Feb 17, 2010 11:15 pm Post Subject:

From any agent.

Posted: Mon Mar 22, 2010 06:59 pm Post Subject: massachusetts auto ins law?

We have three cars: 2000 toyota, 2002 pontiac and 2008 kia. My husband drives the pontiac, I drive the kia and my 20 yr old son drives the toyota. My insuance company is charging us for insurance based on my son driving the kia. They claim the highest risk driver has to be paired with the most expensive car. Is this true?

Posted: Wed Mar 24, 2010 12:45 pm Post Subject: insurance claims

was n accident 1 week ago. still have not heard from ins. co. how long till phone call or a check?

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