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: Thu Mar 25, 2010 11:45 am Post Subject: u think the judge will make auto insur.. pay?

I was a passenger in dec 08 no fault insur paid bills 6 month cut me off after ime , i was being treated for sacal dysfuntion and soft injuries leading to fibromyalga, and brain injury i have a history of minor pains from work injury in 03 but i contiued to work, also i have a felony and a hitory of cocaine but i've was clean 4 years prior and still clean thank God!! instead i turn my life around got in college stayed on dean's list and 1 year before grad i was a passenger in this accident stop my life.. do i stand a chance with the no fault insurance company? i am still being treat by psy, neuro psy, psyco thearpy, spine bone specalist, primary, scrum being manually put back into place there no surgy for that so sad...

Posted: Fri Apr 30, 2010 05:41 pm Post Subject: Good info

Very nice site!

Posted: Tue May 04, 2010 02:21 pm Post Subject: Website

Does anyone have a car insurance site they are looking to monetize?

Posted: Thu May 27, 2010 06:01 am Post Subject:

Hi Icebee, it looks like you're asking what factors of insurance claims cause your insurance premiums to go up.  That can vary a lot depending upon who you are buying insurance from and where you live.  Some states have no fault insurance, so a claim shouldn't affect your rate.  You should discuss this with your insurance carrier.  When buying a new policy, the major factors that influence auto Insurance rates are mainly your age, sex, marital status, driving record and record of prior claims.  Not only this but also your vehicle's age, type and the way you are using your vehicle also affects auto insurance rates. But nowadays finding an instant quote online is very easy. For best price you can go for for an instant quote in any state, for example florida car insurance, if that suits you and even buy a policy on the site or get connected with a local agent.

Posted: Sat Jun 05, 2010 10:23 pm Post Subject: How about the cost of teen driver insurrance

Why, with Driver's Training in High School, and Professional Driver's Training that many young driver's are enrolled in are the rates so high for them?
I can understand an "untrained" teen rates remaining high, but certainly considerations should be applied for those that have taken the training!

Posted: Sun Jun 06, 2010 07:37 am Post Subject:

Some states have no fault insurance, so a claim shouldn't affect your rate. You should discuss this with your insurance carrier. When buying a new policy, the major factors that influence auto Insurance rates are mainly your age, sex, marital status, driving record and record of prior claims.

If driving record/record of prior claims is a problem with a new policy, why would it not be a problem with an existing policy, even in a "no-fault" state?

The answer is that prior accident claims, if AT FAULT, are always going to affect your premiums. Notwithstanding the "accident forgiveness" policies of insurance companies. The first one you get a pass, but with the second one, you get the benefit of BOTH, and your rate WILL increase.

Why, with Driver's Training in High School, and Professional Driver's Training that many young driver's are enrolled in are the rates so high for them?
I can understand an "untrained" teen rates remaining high, but certainly considerations should be applied for those that have taken the training!

Well, you sort of answered your own question. Youthful drivers with driver's training courses, 3.5 GPAs, and those who are married get a discount in their rates.

But the fact remains that drivers under age 26 STATISTICALLY have a considerably higher incidence of poor driving behaviors and higher accident rates. Much of it is due to sheer inexperience behind the wheel, the rest often to the "invincibility" of youth.

It was once thought that it only affected those of us who are of the male persuasion, but the most recent studies have demonstrated that females under age 26 are perhaps even more likely than males their age to demonstrate bad driving behaviors.

Until age 26, it's just part of growing up. Risk is risk, and insurance companies who accept it are entitled to be compensated for their acceptance. Those younger drivers who don't get the speeding tickets, who don't involve themselves in traffic collisions, don't see the same increases their peers do.

Posted: Thu Jun 10, 2010 09:35 pm Post Subject: Credit can affect your auto insurance.

Some States have allowed the use of individual credit to be a determining factor in the issuance of car insurance.

However, two such states, Texas and Michigan have institutionalized state agencies to meticulously govern and manage those insurance bodies. These states have a socialized automobile security plan where individuals having bad credit or low income jobs can obtain economical coverage or liability car insurance.

True, each has rather strict guidelines by which a motorist can qualify for low cost insurance. However, this is a two edged sword! The performance characteristics of every insurance agency and company are meticulously maintained. These involve the speed with which legitimate claims are processed by the insurance company, customer satisfaction (both client and claimant), conformity to state and federal laws. A performance index is issued for each firm and their respective insurance costs are compared with both a state and federal cost per coverage.

Posted: Tue Jun 15, 2010 04:20 pm Post Subject: u.k. car insurance

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.

Posted: Sat Jun 19, 2010 06:10 pm Post Subject: car insurance policy

Why isn't a grace period between the time you sign a "good faith" agreement and the actuall quote for the consumer to decide if they want to buy the policy? This should be mandatory when buying on line.

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