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 Nov 01, 2010 09:55 pm Post Subject:

Many states allow insurance companies to slightly customize their policies. In other words, what one insurance company may cover the next one won’t. Don’t risk everything you own just because you want to make a rush decision and save a buck. Take just a few minutes, find an independent agent, and let them learn about your family, your assets, and your needs and offer a policy to you for the best rate for the best coverage.

Posted: Tue Nov 02, 2010 01:32 am Post Subject:

Does your Bodily Injury cover passengers if you are at fault in an accident?

If it doesn't, something is wrong. Of course, low liability limits could result in unpaid losses that have to be made up out of one's own pocket.

If you borrow someone’s car and wreck it, does your insurance pay? Or their insurance?

Neither will if both of the policies don't cover collision and the driver of the vehicle is the AT FAULT party.

I highly recommend you buy your insurance from an independent agent that has been licensed by the state to sell insurance.

And be sure you check their license status before you write a check in their name. Most, but not all, insurance companies have you write checks in the name of the insurance company. If your agent is actually a "broker", he/she may have authority to accept checks in the name of their agency, rather than in the name of the insurance company (which is the ONLY way most "agents" may accept the money).

Also . . . be sure to verify the coverage by calling the insurance company and asking if you have a valid policy. You won't offend your agent by doing so. But, there are plenty of people out there who appear to be legitimate, and yet they steal the money of others and leave them exposed to the risk of loss. You don't want to be one of their victims. It NEVER hurts to check.

Posted: Wed Nov 03, 2010 01:02 am Post Subject: CO insurance

Do you have to carry auto insurance in the State of Colorado?

Posted: Fri Nov 12, 2010 03:39 pm Post Subject:

Thanks a lot for your information.

Posted: Thu Nov 25, 2010 09:59 pm Post Subject: I like your site

Interesting post

Posted: Thu Dec 09, 2010 11:30 pm Post Subject: they just disappeared

I got in an accident in October...I received one bill after that, paid it, and just realized that I haven't received a bill, nor any cancellation notification by email or snail mail. I went to check my account online (they sent monthly newsletters) and when I typed in my email address, it said my address was not in their system. I feel they've "dropped" me by not sending me anything, and hoping I would not notice in time, so I won't be able to make good, which is what I think happened. The last payment I made had a due date of 10/23; so I've missed 11/23...and that's more than the 30 days required for them to give me a chance to pay...

Posted: Fri Dec 10, 2010 03:29 am Post Subject:

The obvious question is: Have you tried calling the insurance company and talking to someone about this?

Posted: Sat Dec 11, 2010 03:54 pm Post Subject: Settling claim agenst me.

I have a claim that says I hit another persons c ar and put a small smudge on the bumper. I have tried to write to Jennifer Snobeck who has my case but no response from her. I am deaf and cannot hear the phone. I have written her but she claims that she hasn't heard from me.
Claim number-00-181-542195-1324 please try to contact her and tell her I'm sending another letter.

Posted: Sun Dec 12, 2010 01:01 am Post Subject:

Constance . . .

We are not the insurance company. We don't even know what company or what state is involved. Every insurance company has a toll-free TTY number that can be called. Look for it on the insurance company's website.

Posted: Fri Jan 14, 2011 06:47 am Post Subject: auto insurance

My husband is the primary insured in our auto insurance but his California license got suspended last Nov, 2010 , our auto insurance does not want to renew our policy becasue his drivers license is suspended. is there a way around it? or can possible let me what are our options? we need to renew our car insurance, otherwise DMV will suspend our registration effective Feb 4th 2011.

I hope you can give me some light with regards to my dilemma. I can not be the primary insured since I do not drive at all. what are my options so I can get through processing the renewal of our auto insurance.

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