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: Fri Jan 14, 2011 09:19 pm Post Subject:

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.

The statement in bold above is incorrect. If you have insurable interest in the vehicles, whether you drive or not, or even have a driver license or not, is immaterial. You can obtain the necessary insurance. To be declined for any of those reasons is a violation of California law. Insurable interest is an ownership position (if the vehicles are registered in your name in any way -- John AND Mary . . . or . . . John OR Mary . . . or, simply . . . Mary). If the vehicles are not so registered, then you may have a problem -- or you can go to the DMV and change the registration to include your name.

Is your husband's license still suspended? Or was it suspended for a short period of time and is now restored?

If his license is still suspended, then to obtain insurance under your name, you will probably have to EXCLUDE your husband from the coverage. If he drives on his suspended license, there will be no coverage if he is involved in a collision or other claims event . . . not to mention facing the possibility of being jailed for up to one year for driving with a suspended license.

You need to work with a local broker/agent to find replacement coverage if your current insurer will not RECONSIDER your coverage with your husband excluded.

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Posted: Thu Jan 27, 2011 08:20 pm Post Subject: Issue with the rental car insurance


I rented a car from enterprise with full insurance coverage.
It was snowing on the roads and the car skid which resulted in hitting another car.
This is the first time I rented the car so I have no idea what to do?
So I went to enterprise office to tell them about the accident so that they can take care of it.
Now they say that you should not come here.
As you left the hit area we cannot cover the insurance.
I have no idea what to do next?
They told me that I will get a call from the legal person of enterprise.
Please help me out what can I tell the legal person about this incident.
I cannot fix the car which has the damage,please suggest me.

Posted: Fri Jan 28, 2011 08:21 am Post Subject:

What you have been told is probably a bunch of nonsense. Yes, your rental agreement has information about what to do in the event of an accident, and you may not have followed the "rules" properly, but that will not invalidate the coverage, it may just be more difficult to pursue the claim.

what can I tell the legal person about this incident.

The truth. If there was a police report, that will have some/most/all of the information they need. Obviously the person you collided with will have the same thing to say as well. So you just tell them what happened, and it will be taken care of.

And next time, read your rental contract and know exactly what your responsibilities are.

Posted: Fri Jan 28, 2011 03:20 pm Post Subject: Thanks

When the person from enterprise contacts me
Just tell him that was an accident so I came to inform you that is no way related to the coverage of the car.
and that will not invalidate the coverage.

Is this OK to tell that particular person?


Posted: Sun Jan 30, 2011 12:54 am Post Subject:

Dev . . .

The claims person from Enterprise will ask you the questions they need answered. Answer the questions truthfully and don't try to add anything you have not been asked. Listen and answer. That's all.

If the representative asks you to state what happened, just recite the facts. Don't offer opinions -- they don't count -- unless asked specifically for one. And even then it probably doesn't count.

Posted: Tue Feb 08, 2011 02:54 am Post Subject: What does a one time offer mean

I was in a anto accident and I have some medical bills I was the passanger and GEICO has the release form for medical history and bills the accident was on 1/05/2011 it has been 1 month and I've lost time from school.I'm a student at ECPI .So what is a one time offer?

Posted: Wed Feb 09, 2011 12:41 am Post Subject: 3 months and no solution

I've been struggling with my auto insurance company. 3 months ago my wife was in an accident, her fault. We took the car to get repaired and when we got it back the automatice door only worked 60% or the time. We kept taking it back to the dealership and they finally said that they did not know what was wrong. During the 2nd month the dealership sent it to another shop with more expertice with that model and they also could not find the trouble. They wanted to try replacing more parts in the door, but the insurance company would not pay for it until they acctually determined the problem. They said that the cost to replace the parts in the door would be to high without a gauranted solution. Both service departments said they could not determine the problem without using trial and error. Finally, after fighting with my insurance company they agreed to start, "Throwing parts at it." (there terminology) During this time, my rental agreement was maxed out. The garages and the insurance company wasted so much time fighting over who was paying for what that my car sat unrepared for now 3 months. It is drivable, but it does not function normally. There is no end in sight and I can no longer afford to rent another vehicle. I can't sell the car because it is not fixed. I tried to explain this to the insurance company, but they said that they can not do anything to help with the burden. They blame the garages and the garages blame the inssurance company. Do I have any other options with my insurance company or am i at their mercy?

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