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: Mon Sep 27, 2010 03:29 am Post Subject: Best Auto Insurance

Here i s an excellent site with some wonderful options for you. It will definitely help you.
(Link deleted by Moderator InsTeacher per Terms of Use violation)

Posted: Mon Sep 27, 2010 08:24 pm Post Subject: Insurance claim Denied by State Farm. What to do?

Hi everyone. The problem is that about couple of months ago I was passing through intersection on Yellow light. The other driver made a left turn on Yellow light at the same time, which caused a car accident between us. When a police officer arrived he questioned both of us and after that gave ticket to the other driver for failing to yield right of way( that's what police report sated later when i received it). He was insured by State Farm at the time of the accident. I filed a claim but he's insurance company State Farm denied it, stating that they disputed the lights in the accident. Basically saying that i wasn't sure what was the light during the accident. Me and my friend called them later to ask if they are going to pay for the damages(the estimate i did at the shop $4725.55). The agent told me the same and that the only way is to sue them. What I've learned later that a can't sue them and that i should sue the driver. So I filed a lawsuit against the other driver in small claims court for $3500 because the cap is $3500 at small claims in Omaha, NE. Wanted to get at least that much. On the court day at the court house the administrator told me that he's lawyer transferred the case to the civil court and also demanded Jury. The legal adviser at the courthouse told me that all the lawyers who defended him on the list she saw are State Farm's lawyers and that I don't have any chances. I don't know what to do now. I go to college and work full time. My car is not drivable. Please help!!! Thanks a lot for your time and sorry for such a huge post...

Posted: Mon Sep 27, 2010 08:32 pm Post Subject: more info

I had liability coverage with Geico at the time of the accident. Thanks again

Posted: Mon Oct 04, 2010 04:18 am Post Subject: accident

My daughter was driving my car, She was in a parking lot at walmart. A lady hit my car but my daughteer isnt on my policy. Will it still cover my car.

Posted: Mon Oct 04, 2010 04:36 am Post Subject:

Will it still cover my car.

First, read my sig.

Probably... but if there was material misrepresentation (you lied on an insurance form... such as claiming no other driers in your household) then they could rescind the policy and not pay the claim.

I'm guessing you are asking about your policy... though "will it" is not very descriptive.

Posted: Thu Oct 14, 2010 01:36 am Post Subject: FOR INSURANCE


Posted: Sat Oct 16, 2010 03:18 am Post Subject:

I don't have anything to ask according to this topic. Thanks for another Timely Post. Your ability to share Information is a talent and very appreciated. Thanks for the information, I’ll be making the necessary changes thanks to your tips.

Posted: Mon Oct 25, 2010 05:02 am Post Subject: Discountohioautoinsurance

I am in my 18 and want to know everything that my age group needs for auto insurance. One suggested me to get information at, is it a reliable one?

Posted: Mon Nov 01, 2010 09:52 pm Post Subject:

Will your policy cover everyone that drives your car? Does your Bodily Injury cover passengers if you are at fault in an accident? If you borrow someone’s car and wreck it, does your insurance pay? Or their insurance? Or do you have to pay your friend back out of your pocket? If you are unsure of the answer for any of these questions then I highly recommend you buy your insurance from an independent agent that has been licensed by the state to sell insurance. It is their job and legal duty to fully explain what your policy covers and doesn’t cover. When buying insurance online, you run the risk of not getting the coverage you need and unfortunately, you most likely won’t find that out until it is too late.

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