How To Lower Auto Insurance Coverage For Commercial Cars

Auto insurance coverage is essential for anyone who uses a vehicle for commercial purposes. This type of insurance provides coverage to vehicles that are owned by a company or business. If you buy insurance for commercial cars, the insurer will cover your expenses in case of unforeseen situations like a collision, a car accident, burglary attempts, fire and theft. Operating a company can be quite costly, so you should do everything possible to reduce costs. You can start by finding ways to lower your premiums on auto insurance coverage.

Finding an affordable insurance plan for commercial cars is no longer a difficult task-all you have to do is to go online and visit websites that will give you multiple quotes from different insurance companies. Many quote comparison websites feature informative articles and honest reviews that can help you make a decision. If your regular insurer provides this type of policy, you might be able to obtain various discounts and bonuses by signing up for multiple insurance plans. Try to determine how much coverage you need and find an insurance plan for commercial cars that meets all of your requirements. To make sure you get the best policy at a fair price, it is necessary to make some small changes.

First of all, you should go shopping online for auto insurance coverage and compare different policies, rates, and features included in the available plans. Review all the options available to you in order to get a good deal. Try to reduce the mileage that you drive during the year, and you will pay less on insurance. Keep your vehicles in a garage instead of parking them on the street. Keep in mind that most insurance companies offer discounts to those who install security devices and alarms, so you should improve the security of your vehicles. Another great way to lower your rates is to raise your deductibles. By requesting higher deductibles, you can reduce your rates significantly.

When shopping for auto insurance coverage, you will be surprised of the differences between the cheapest and the most expensive policies. Each insurance company has its own rules, so the prices may vary from one insurer to another. You can actually save hundreds of dollars by comparing multiple auto insurance quotes for commercial cars. There are many other ways to save money and pay lower rates; you can pay your insurance premium in full, restrict the use of commercial cars to drivers over a certain age, and choose the right amount of coverage. It does not make sense to pay extra for unnecessary features, so do your homework and learn more about auto insurance coverage before choosing a particular plan.

Why Students Pay More For Auto Insurance Coverage

Auto insurance coverage is not cheap for any age group, but student auto insurance usually leads the way in terms of how expensive it is to maintain insurance. The older you get and further away from school you get the more the cost starts to go down and you become able to get better quotes across the board. This is not a good thing for many students as money is already hard to come by without having to pay more than anyone else driving on the road with them.

The reason that student auto insurance costs so much more than other age groups auto insurance coverage is that students are viewed as being more reckless. This is a general perception that is backed up by facts, even though it may be the minority that makes this a problem for all student drivers. The fact that students are statistically more likely to get into accidents due to reckless or distracted driving is reflected in the higher than average car insurance rates for young drivers.

In addition to the fact that the driver that is being insured is generally viewed as being more reckless, insurance companies also consider who they are on the road with the most. In parking lots, leaving school and going places with friends students are usually on the road with other students the most. When you are in that atmosphere you are in a more dangerous predicament than most drivers on a regular basis. Insurance companies offer quotes based on risk and this increases your risk of being in an accident substantially.

When students get auto insurance coverage it is sometimes possible to get it at a discounted rate if the student goes through a school-sponsored program. Some schools have programs that make deals with car insurance companies to offer better rates in exchange for new car insurance policies being written. Other school programs are able to release information about grades to insurance companies and better rates are given to better students. In most cases, better students are better drivers simply because of their focus.

Student auto insurance is generally more expensive than other types of auto insurance coverage for a reason, students usually cost car insurance companies more money. More money is spent on car accidents for student drivers and student drivers are the cause of more accidents than other age groups on the road. This isn't a long term problem for students as you will start to see your car insurance rates drop as you get older. The better your track record is as a driver the more money you will save.

How To Lower Auto Insurance Coverage Rates For New Cars

Many drivers often don't consider the cost of insurance when shopping for a new vehicle. The fact is that auto insurance coverage is an important factor to consider in your budget. New cars require full coverage, which can be quite expensive. If you are in the market for a brand new vehicle, you may want to consider these money-saving tips for insuring your vehicle.

Today, most households have more than one vehicle. An effective way to bring down the cost of auto insurance coverage is by adding the new car to an existing policy, such as your spouse's. Insuring two vehicles together can reduce the rates on both vehicles through a multi-car discount.

Having a clean driving record and maintaining a good credit score additionally help with insuring new cars. These two factors go hand in hand to determine rates. You can have an excellent driving record, but still pay high premiums if you have a low credit score, and vice versa. Steer clear of traffic violations and always make your payments on time to obtain affordable auto insurance coverage.

Did you know that by paying more up front, you could be saving literally hundreds of dollars in the long run? It's true. Paying your car insurance in full will save you more than paying monthly. If you multiply the monthly premium by how long you will carry the auto insurance coverage and compare it to what you would pay in full, you will see a significant difference. This is typically not an option, however, as many people can't afford it all at once.

Drivers looking at new cars should consider one that has great safety ratings. Safer vehicles are known to have lower premiums. If you do choose a car that does not have excellent safety ratings, you can still lower your rates by making a few additions. Your insurance company can tell you which safety features and devices they offer discounts on for having them installed into your vehicle.

In addition to these money-saving tips for insuring new cars, drivers can save even more with special discounts available. Being a safe driver, students that make good grades and driving infrequently are just some of the ways you can qualify for discounts. Ask your local insurance agent what types of discounts they offer their customers that you may be eligible for.

Finally, make a comparison of auto insurance rates from different companies. Comparing quotes is one of the easiest ways to find lower auto insurance coverage. When insurance companies compete, you can find affordable coverage. Regardless of what type of car you buy, there are ways you can obtain reasonable auto insurance rates.

Two Types Of Auto Insurance Coverage That Are Not Always Necessary

State statutes mandate auto insurance coverage for all licensed drivers operating a motor vehicle. Insurance brokers and agents typically include a variety of coverage and benefits in the auto insurance quote; they include many extraneous and expensive coverage elements. Prospective clients, in an effort to be indemnified against all conceivable accidents and occurrences, accept the quote without consideration. Policyholders inadvertently increase their auto insurance invoice with nonessential rudiments that basically have little utility over the life of the policy. It is critical to be informed, aware, and well versed in auto insurance terminology in order to display sapience and profundity when analyzing the auto insurance quote.

First, unless the vehicle is new, comprehensive and collision insurance should be carefully evaluated to determine whether it is a sagacious investment. Collision coverage indemnifies against vehicular damages in an accident; comprehensive coverage provides liability protection against losses due to theft, natural disasters, or vandalism. However, the policyholder must ponder the cost of this auto insurance against its value. If the car is stolen, or damaged in an accident, comprehensive and collision insurance will not unequivocally replace the car. One reason insured maintain this coverage is based on a belief that the policy minimally will provide the down payment on a replacement vehicle; this is conjecture. Comprehensive and collision insurance will pay only “Blue Book” value rather than the owner’s perceived value of the vehicle. It does not consider the amount still owed on a loan, or inflates the value based on improvements unless stipulated on the policy data page. Compensation will be disbursed in accordance with the specific market value, less deductible, to the titleholder. If a vehicle is more than five years old, comprehensive and collision coverage is a fundamentally unnecessary, disposable entity that can constitute up to 40% of the premium. Therefore, in the event the car is destroyed, damaged, or stolen and the estimated compensation equals only a few premium payments or is minimal, this coverage is not an equitable expense.

Another unessential but costly auto insurance coverage is roadside assistance and towing. Many insured are not aware that although this benefit is included in the auto insurance quote, there is usually a “per incident” cost, and there are restrictions for member service providers or the service may not be covered. However, it substantially increases the auto insurance premium. There are travel associations specializing in roadside assistance and towing that are more reliable, accessible, and considerably less expensive.

Finally, auto insurance is required, necessary and provides immeasurable security and peace of mind. But insured should use sapience and knowledge by refusing inessential, expensive coverage.

How To Tell Whether You Need More Car Insurance Coverage

One of the hardest parts of purchasing car insurance coverage is selecting the right amount. A driver with less coverage runs the risk of financial devastation in a major accident. On the other hand, if you buy too much coverage, you’re essentially throwing your money away. Most drivers are confident that they’re buying enough coverage; however, tend to under-buy in order to find less expensive auto insurance quotes. It can be hard to tell whether or not you need more car insurance coverage. Drivers should evaluate their needs carefully before and during a car insurance policy’s duration.

First of all, don’t use your state’s minimum car insurance coverage requirements, as a measuring stick to evaluate your coverage needs. State minimum requirements are designed to provide basic insurance for every driver. They’re not, however, well suited to meet the costs of an accident. If you’re involved in a claim with state minimum coverage, there’s a good chance you’ll end up paying more out-of-pocket expenses. You’d want more liability coverage than what your state requires, and although most states don’t require comprehensive coverage, you need this coverage to protect your vehicle in any type of accident (and comprehensive coverage is usually required for financed vehicles).

In addition, look at your driving habits before collecting auto insurance quotes. Your driving habits greatly affect the amount of coverage you need. Frequent drivers usually require more coverage than less frequent drivers. Add-on coverage, like roadside assistance, is also more valuable to drivers who frequently leave their state of residence. You should even set aside funds in the event of a serious accident. Your policy deductibles should be affordable, while ensuring coverage will meet accident costs. This includes medical bills, vehicle damages, and car rental fees as your vehicle is being repaired.

It can be difficult to accurately assess your car insurance needs. By carefully studying your policy and driving habits, you’ll have a better idea of whether or not you need more coverage. You can also ask your insurance agent for advice. His or her job, however, is to sell insurance, so you’ll probably need a bit less coverage than recommended. Once you decide how much coverage to buy, reevaluate your needs every few months. This will keep you financially protected while on the road, and you can drive with peace of mind.

Deciding Whether To Lower Your Auto Insurance Coverage

Ask any insurance agent, and you'll get the same advice: more coverage is better than less coverage. This is generally true, but in some cases, the premiums on some auto insurance quotes are simply impossible to afford unless coverage is lowered. In these cases, it's necessary to lower your auto insurance coverage. However, before you take any action, you should think carefully about the potential ramifications for your auto insurance coverage, and be absolutely sure that it's necessary to lower your coverage. Here are a few things to think about before you decide to lower your coverage in order to save money on car insurance premiums.

First of all, you should realize that there are often ways to get lowered costs without lowering coverage. You can often obtain car insurance discounts, which save you money every month. These discounts can be something as simple as being a good student if you're in high school or college. Many car insurance companies will discount your rates if you keep a good GPA. Other common discounts usually apply if you can prove that you're taking actions to improve your car's overall safety, or to become a safer driver. If you take certain driving classes, you may be eligible for a discount. This is preferable to lowering coverage, because you'll only have to complete some very simple actions to achieve lower rates.

If this isn't possible, think carefully about the amount of coverage that you need. Drivers that don't spend a lot of time on the road certainly don't need every coverage offered by their insurance companies. Auto insurance quotes will usually explain additional coverage very carefully to you. Start with these add-ons, and eliminate any that aren't helpful to you considering your driving habits. For the main coverage like comprehensive coverage and personal injury coverage, think about what you could realistically afford if you were involved in an accident tomorrow. A decent amount of auto insurance coverage is necessary, but you should neither buy the maximum nor the minimum amounts offered by an insurance provider. The right amount will vary for each driver, but by planning out post-accident expenses, you can usually get a general idea of what you should be buying.

By taking your time to decide an appropriate amount of auto insurance coverage, you'll keep your financial health and your vehicle protected without wasting money each month. Don't rush into any policy, and don't buy a policy that offers inadequate coverage. Lowering your coverage is sometimes a necessity, but when this is the case, any driver can benefit from some sound logic.

When To Raise Your Deductible And How It Affects Your Coverage

Auto insurance coverage is based on several factors. Drivers are given many options to choose from including coverage type, maximum payout and the total deductible to be paid by the driver. All of these factors combined determine the total premium that you must pay for the current policy. Drivers are able to change the coverage options, including the amount of the deductible. It is a good idea to reexamine the current policy prior to each renewal period to ensure the proper coverage is included in the policy without any unnecessary coverage.

During the process of evaluating your current policy, examine your current situation and consider raising your deductible. When you live in a low risk area such as those with a low rate of car theft and vandalism or if the vehicle has little cash value, you may not need a low deductible. An increased deductible is the best option during seasons with good weather and safe driving conditions due to the decreased risk of weather related accidents.

You may also want to increase your deductible when your vehicle is not being used on a regular basis or when it is only driven very short distances, such as to the grocery store or to doctor’s office visits. Financial situations may also warrant the need for an increased deductible. Drivers are often able to significantly lower the total premium paid to the insurance company by increasing the deductible amounts. This can save money, particularly for low risk drivers and during low risk seasons.

Any changes made to a policy will affect your auto insurance coverage. Raising your deductible will lower the premium that must be paid to continue your coverage. While this will lower your current rates, it will cost you more in the event of an accident or other insurance claim. A higher deductible will greatly increase the amount that you must pay before the insurance company will cover any costs. As an example, a 100 dollar deductible will increase your premium, whereas a 1,000 dollar deductible will decrease your premium but the insurance coverage will not apply for anything less than the deductible amount.

Increasing your deductible has many benefits and should be considered when renewing an existing policy based on individual needs and circumstances. Before making changes, it must be decided whether you want to pay more for coverage that may or may not be needed, or if you want to pay more later on in the event of an accident. The best time to raise your deductible is during periods of low risk weather and is not recommended during periods of bad weather or in high risk areas.

Defensive Driving Courses And Three Ways They Impact Your Coverage

Premiums charged by auto insurance companies vary widely based on location, demographics, driving history, and a multitude of other factors. Despite variation in how insurance premiums are calculated, completion of defensive driving courses from an approved traffic school will result in lower insurance premiums for most drivers.

First, it is important that we understand what is meant by defensive driving’ and examine the various types of classes you might find beneficial. Safe Practices for Motor Vehicle Operations (the National Safety Council standard) defines defensive driving courses as ‘driving to save lives, time, and money, in spite of conditions around you and the actions of others.’ Thus, the classes we are discussing help drivers to better recognize and respond to the situations that commonly cause accidents. Requirements and approved providers vary depending on state and insurance company. Some states allow online self-paced classes. Others states require that courses be completed in the classroom and/or on the road. The training time requirements vary but are generally between four and six hours. The benefits of taking a defensive driving course fall into three broad categories.

Most insurance providers use points on a person’s license as a determinant of auto insurance coverage. Drivers gain points on their license for traffic violations. If you have recently received a traffic ticket, it is possible that you can avoid the points on your license. Courts often dismiss traffic citations when a driver provides proof of completion from an approved traffic school. Drivers with the rare ticket can help keep insurance premiums low by attending traffic school. If you receive a traffic citation and are looking to have it dismissed, it is important to research whether a specific driving program is approved both by the courts and your insurance company.

Many drivers pay high insurance premiums as a result of points accrued from past traffic violations. If you are paying a lot for your auto insurance coverage because of past mistakes, you may also be able to benefit from taking the type of classes we are discussing. Most insurance providers will reduce the premiums of high-risk drivers who become safer drivers through an approved traffic school.

Finally, new drivers and drivers who have never received a traffic citation can also benefit from lower insurance premiums by completing approved defensive driver training. Eeven good drivers lower their risk of collision by learning and applying the techniques taught.

If you are looking for looking to reduce or maintain your auto insurance premiums by improving your defensive driving skills, it is important to do your research. You should always contact your insurance provider to determine specific requirements and find out what programs are approved in your area.

How Young Drivers Can Afford Good Auto Insurance Coverage

Auto insurance quotes are one of the major costs of owning a vehicle for all drivers, but young drivers have it especially rough. Auto insurance coverage costs far more for drivers under 25, and even if they drive as safely as possible, it can take years for car insurance premiums to drop to a reasonable level. However, drivers that actually look for ways to lower their costs may be surprised at the wide variety of insurance programs and techniques for locking in a low-cost auto insurance quote.

For starters, many insurance companies offer good student’ discounts to any college or high school drivers that can maintain a certain GPA. It works as a great incentive to keep your grades up, and it makes sense from the insurance company’s perspective, since good students tend to drive more carefully. You’ll usually have to fax in a copy of your report card at regular intervals, but if you are already a good student, there is no reason not to apply for this discount. Many insurance companies offer other types of discounts that aren’t age-specific, such as discounts for anti-theft devices and discounts for drivers that elect to take defensive driving courses. If your auto insurance premium is exceptionally high, you should contact your insurance agent to see what programs are available.

It should go without saying that safer vehicles cost less to insure, but even so, many drivers don’t look at safety ratings when picking out a vehicle. Young drivers should use online insurance quote tools to look at the varying rates for different vehicles before making a purchase; remember, safer vehicles often cost less at the lot, too, so it makes sense to avoid a flashy car in favor of a safe vehicle, at least for the first few years of your driving career. While you’re online, be sure to look at as many insurance quotes as you can find, as this will help you to understand some of the factors that insurers use when deciding rates, and you’ll be able to compare policies to find an affordable premium.

Above all, young drivers should be especially careful during their first few years on the road. Nothing helps your insurance costs more than a good record, so keep your attention on the road. Be aware of your state’s laws, and avoid any distractions while you drive–especially from cell phones and iPods. In fact, using these devices while driving is against the law in many states, so to avoid a ticket, stay alert. If you’re careful and you shop around for car insurance premiums, you will lock in an affordable rate that you can keep for years.

How Opting Out Of Auto Insurance Add-on Covers Can Put Your Vehicle at Risk

When deciding the amount of auto insurance coverage to buy, many drivers barely graze over the add-on covers that they are offered. These add-on covers provide additional insurance for varying scenarios, ranging anywhere from natural disasters to auto theft and beyond. Avoiding add-ons keeps the cost of an auto insurance policy low, but it can prove an extremely costly strategy. Drivers who opt for basic auto insurance coverage amounts may be putting their vehicles and themselves at great risk, and understanding the benefits of additional coverage is a vital step when buying a new policy.

It is important to consider whether each add-on cover represents a possible or highly improbable threat to your vehicle, based on different criteria such as your driving location. For instance, special coverage against natural disasters might not be worth the extra money if you are living in a safe part of the Midwest, but it might be valuable if you are living on either of the coasts. Auto theft coverage, which is often included as a part of comprehensive coverage, should be approached with a similar mindset. Your auto insurance policy can easily be customized with special coverage types to prepare your vehicle for the area of your residence.

One of the more important elements to deciding on add-on auto insurance coverage is your driving habits. The more you drive, the more coverage you generally need. Roadside assistance is one example of a valuable add-on, particularly if you commute large distances or if you’re planning a cross-country trip. The coverage does not cost very much and quickly pays for itself if you get stuck on the road somewhere. If you add modifications to your car, you’ll definitely need coverage for any customized parts that you add. Do not ever make the mistake of assuming that you’ve got auto insurance coverage; read your policy very carefully to determine what you are paying for, paying particular attention to any terms that mention exclusions. Be aware that covers differ from company to company; for instance, “accident forgiveness” could potentially mean just about anything. Usually, the terminology around coverage options is easy to understand, but do not be afraid to call your insurer and ask questions.

By using add-on covers, you can build a much stronger auto insurance policy and avoid the possibility of a sudden insurance surprise. You should carefully consider each option that you are offered and think about whether you’d need that coverage if an accident were to occur. If your premiums get too high, try looking at a few companies to get your auto insurance costs back to an affordable and reasonable level.

Why Smaller Auto Insurance Companies Might Not Provide Adequate Coverage

Everyone who operates an automobile needs to have auto insurance. In fact, it is mandatory to at least have liability auto insurance coverage in order to drive legally in the U.S. When shopping for auto insurance, keep in mind that auto insurance is controlled by the provisions and guidelines of individual states. Just having a liability only auto insurance policy may not be adequate coverage for you no matter who you buy your insurance from. For instance, if your automobile is financed, you will need to have a policy that provides comprehensive coverage. Liability-only coverage will only cover damages or injuries if you are at fault. Even then, a limited liability policy may only cover damages done to the other driver and his or her automobile.

In an effort to save money, many automobile owners consider going with a smaller auto insurance company. Many times, the smaller insurance companies will have cheaper premiums than larger insurance companies. There are all kinds of smaller insurance companies out there that offer competitive rates and a variety of coverage packages.

However, there are a few reasons why smaller insurance companies might not provide adequate auto insurance coverage. One of the reasons is that the smaller auto insurance company may not have adequate funds to cover a large accident. A smaller insurance company generally has a smaller pool of money to pay out from, which may pose a problem for them when having to pay out for a major accident. The more clients an auto insurance company has, the larger their pool of money will be, and the easier it will be for them to pay major accident claims. However, some smaller auto insurance companies have been around for a long time and are fully funded for such claims because they only insure the safer drivers who have excellent driving records. When shopping for a auto insurance policy, make sure you ask how the company pays claims. If they their explanation of their pay out claims satisfy you, then it may still be worth getting auto insurance through them.

However, you should also keep in mind that cheaper premiums do not necessarily guarantee you will have adequate coverage. If you are financing your automobile, you will need to have comprehensive coverage, which means higher premiums. When shopping for comprehensive coverage insurance from a small insurance company, make sure the policy they are offering you will sufficiently cover all your needs. This way you will be adequately covered if you are still paying on an auto loan. Having adequate insurance coverage is essential when you own an automobile.

Who Decides Percentage Of Fault In An Auto Insurance Claim

In some states, a claim made against a driver’s auto insurance coverage must be decided by a percentage of fault. For many accidents, this is as simple as declaring which driver was completely at fault; for instance, if one motorist backed into the car of another motorist, there’s no question as to whose insurance will pay for the damages. However in some cases, both drivers have some amount of fault, and damages are assessed according to the percentage. For instance, if one driver made an illegal right turn and hit another driver who was exceeding the speed limit, both drivers would have some amount of fault. Many motorists wonder how these percentages are decided, as they seem fairly random in nature.

Percentage of fault is often negotiated between two auto insurance companies when a claim is made. Each insurance company investigates the details of the accident and decide based on a number of factors an agreeable percentage of fault. The factors they use to decide the auto insurance claim include the accounts of both drivers, any pictures submitted, and any reports from officers who’d surveyed the accident scene. Drivers can help to get a favorable decision by providing as much information as possible in these cases, and by avoiding some classic mistakes at the scene of the accident. For example, admitting any amount of fault is a huge no-no. The state insurance commission may step in if a case is excessively complicated or if one driver submits a complaint about the way in which the case was handled.

Different states may have very different systems for assessing who pays for the cost of an accident. It’s important to understand what type of state you’re driving in before making an auto insurance claim. Some states practice no fault’ systems of insurance in which minor accidents where the cost of damages under a certain amount are handled by the insurers of each driver. Nobody is declared at fault, and this prevents the case from going to court. In other states, if either driver is found to be over 50% at fault in an accident, his insurance will pay for the full damages. To find out how your state handles insurance claims, contact your state’s insurance office or simply call your auto insurance agent. It’s crucial that drivers learn what to expect from a claim before filing one, as the paperwork, pictures, and information submitted with a claim report could have a drastic effect on the case resolution. Doing a bit of research now can save you the hassle as well as thousands of dollars in the long run.

Warning Signs That Your Auto Insurance Claim May Not End Up In Your Favor

After getting in a car accident, many thoughts go through your head, including whether or not your auto insurance claim will be settled in your favor. Although you would likely worry no matter what the circumstances surrounding your insurance claim are, there are some signs that suggest that you might not win your auto insurance claim. However, if you catch these signs early enough, you can take action to help yourself turn the tables and get the reimbursement you believe you deserve.

First of all, you should be monitoring your auto insurance before you get into an accident. If you take a look at your insurance after the fact and realize your coverage amounts are not as high as you thought they were, it’s likely that your auto insurance coverage won’t pay for your accident costs. Even if they pay, they probably won’t pay much. It is wise to carefully scrutinize your policy before you end up in an accident. If you’re naive about your policy, it’s easier for your company to deny your claims.

Secondly, if the insurance company doesn’t see the damage, you’re not as likely to get your claim approved. Of if your claim is approved, it might not be for the amount you think you deserve. If the damage is minimal, or if the insurance inspectors don’t see the damage, your auto insurance coverage probably won’t pull through. One suggestion to avoid this is to go with the assessors whenever they look at your car. In addition, you can always take pictures of the accident as soon as possible, which will give you better leverage as you make your case to the insurance company. However, if your car insurance company doesn’t think your car was damaged, or thinks that the damage is less than you have stipulated, this is one big sign that your claim will be denied.

Thirdly, if you don’t report your accident right away, or if a police report contains information that’s different from your side of the story, it will be harder for you to prove that your version of the truth is in fact the correct version. Although you can get an accident attorney to help you make your case, it’s likely that your auto insurance claim will be denied if a police report suggests that you are at fault. In addition, if no police report is filed and the other driver contests your claim, your insurance claim may be denied. The best thing to do in this situation is to contact the police, even if the accident took place in the past. If you’re facing one of these signs of auto insurance coverage denial, take action before it’s too late.

Using Low Coverage Auto Insurance As A Temporary Solution

Sometimes motorists simply don’t have the necessary funds for a high amount of auto insurance coverage. This can be a serious problem since you cannot legally drive without auto insurance, but in bad economic times there is sometimes no alternative than to cut a bit of coverage. You will often hear from insurance experts that this is a bad plan; driving with inadequate insurance coverage puts you at high risk, and if you are involved in an auto accident, you could be in serious trouble. Nevertheless, sometimes cutting a bit of coverage can be a necessary move, and as a temporary solution, it can help drivers get out of a jam.

Your coverage levels make up a very big part of your auto insurance quote, so lowering coverage lowers the premiums that you will be paying. By checking with your state insurance commission or contacting your insurance agent, you can restrict your coverage to the state-required minimum levels. If you’re leasing a car or using a loan to buy it, you’ll likely need some amount of comprehensive coverage as well. (This is often in your loan or leasing agreement; it protects the bank from a potential loss). You can also raise your auto insurance deductible in a few areas, as this will further decrease your quote, but be sure to leave the deductibles at a level where a minor accident would be affordable. You should always assume that an accident is possible, even if you are only cutting back on your auto insurance for a month or two while you get your finances in order.

It’s very important to switch your auto insurance coverage levels back to a reasonable amount once you’re able to afford the cost. Remember, an accident is always a possibility, and more coverage is actually a good deal when you consider the peace of mind that you’re purchasing. Before you increase your coverage levels, talk to your insurance agent to try to negotiate a lower price than what’s advertised on their website or company literature.

If you’re uncomfortable with changing the levels of your auto insurance coverage, there are other options. Using cost-comparison websites can help you find a company that offers better rates for the same amount of coverage. You can take a driving class or get court supervision if a recent accident or citation has caused your rates to rise. You’ll get a lower premium and will avoid taking a hit to your driving record. In any case, only use low coverage as a temporary solution to financial problems; otherwise, you will pay for it in the long run.

Tips For Talking Your Auto Insurance Agent Into A Lower Rate

Most of us are familiar with the famous quote by Benjamin Franklin that states In this world nothing can be said to be certain, except death and taxes.’ The absolute truth of that statement is debatable, but few would argue against the notion that both those topics are unpleasant to think about. You may call them ‘necessary evils’ of the human experience. Likewise, all law-abiding drivers find auto insurance to be a necessary evil. You must have a valid policy, but that doesn’t mean you have to enjoy paying for it. Let’s consider some ways to negotiate a lower rate on your plan.

The first notion may be the hardest to swallow: you must be an assertive shopper because the insurance agent’s main goal is not to save you money. If you want to get the best deal, you should be prepared to revisit your plan every six months. Blind loyalty to one company can greatly cost you; it is financially beneficial to always keep your options open.

There are many varieties of auto insurance coverage. Remember to use competitors’ quotes as a starting point; but ultimately, it is better to talk to your agent on the phone or in person. Your agent may offer you special deals that aren’t advertised elsewhere if they know they may risk losing your account. Ask about multiple vehicle discounts, such as ‘umbrella coverage,’ which combines your auto insurance policy with a homeowners’ plan and higher deductibles. Be careful not to raise your deductible too much because if your deductible is maxed out and you’re involved in an accident and need to file a claim, you typically won’t get any compensation unless the car is totaled.

Note the various factors when discussing discounts with your agent. Have you had your existing policy for a long time? Ask about renewal discounts on a long-term membership. Has your credit score improved recently? This could lower your rate simply by asking about it. Similarly, if you have a prior accident on your record yet have been a safe, incident-free driver for the last three to five years, you could be eligible for some savings. Finally, reevaluate all the ‘extras’ on your policy. If you have a good health insurance plan, your hospital costs may be covered in case of an accident, making the ‘personal injury’ option redundant. Also, if your car or truck is an older model, you probably can forgo the comprehensive collision option, if repairing the vehicle would cost more than its worth. Shopping for car insurance may seem like a hassle, but as a wise man once said, ‘A penny saved is a penny earned.’

Special Types Of Auto Insurance Coverage For Customized Vehicles

Have you ever seen the TV show Pimp my Ride?’ In this program, the host, a famous rap star, accepts videos from viewers who ask him to help them out with their cars. Their cars are old, beat up, full of rust, held together by duct tape, and in some cases, it is hard to believe that they are even still running. When selected to participate on the show, their old cars are given an extreme makeover with no boundaries. And when I say no boundaries I mean chrome grills, spinners, hydraulics, spoilers, flat screen TVs, fish tanks, full surround entertainment systems, mini casinos, etc. So now that the lucky winners on the show have got their cars all supped up, how do they get them properly insured?

If you have invested a large amount of money to customize your vehicle, you may be eligible for special auto insurance coverage. Most car insurance companies offer to cover your add-ons at an additional cost. This means adding on an endorsement to your current coverage for collision to cover the modifications. It is in your best interest to shop around different auto insurance companies to get the best rate. Keep in mind that each company offers a different amount covered under your endorsement. This amount usually only covers the value of the customized parts, not the expense you pay to replace or repair them. This means that the often pricey installation bill for labor from a mechanic shop will not be covered.

If you are considering customizing your vehicle for the first time, here are a few things to consider: First of all contact your insurance company and let them know exactly which modifications will take place. Make sure that your insurance company will cover these, and if not, you may have to find another company that does. Some companies may be hesitant to insure owners of specialized vehicles under the assumption that these drivers may be ‘wild drivers,’ tend to speed, and the possibility of a high payout to cover the customized parts and equipment in case of an accident.

Overall, all other factors that are taken into consideration when getting an auto insurance policy remain the same, whether your vehicle is customized or not. So when shopping around, use to your advantage any information that may help you lower your monthly payment such as good grades if you are a student, a perfect driving record, home owners insurance, etc. Expect to pay a little more for your customizations, but with enough research, you should be able to find coverage for your needs.

Limiting A Traffic Citation’s Effect On Your Auto Insurance Quotes

Anyone who has had a traffic citation in the past knows that it can certainly have a negative effect on your auto insurance. While it is not always possible to completely stop a citation from affecting your auto insurance coverage or an auto insurance quote, it is possible to limit the effect that it has. Here are some tips for keeping that traffic citation as painless as possible for your car insurance.

If you have received a traffic citation, you should make every effort to keep it from appearing on your driving record. If a traffic citation is paid, you will then have a notation of that on your driving record, which will almost always eventually cause your auto insurance rates to be raised. However, if you are able to go to a court-approved driver safety course, you can avoid having the citation on your record. You can normally request taking a driver safety course, or traffic school,’ with the court at the time you call or report to your court date. The court will give you a time and place to report to the driver safety course, and you will need to pay an enrollment fee (normally around $35) as well as court administrative fees. Typically, the cost for the driver safety school will be less than the cost of the ticket would have been. Completion of the course will allow you to keep the traffic citation off your driving record and will therefore help you avoid an increase in auto insurance coverage.

Another way to limit the effect a traffic citation has on your car insurance is deferred adjudication, which is a form of plea bargain that is available only in certain states, so you will need to check with your local court. If you choose deferred adjudication, you will usually enter a guilty or a no contest plea. You will then be placed on a type of driving probation in which you will need to maintain a clean driving record for the next 90 days. Upon completion of that period, the traffic citation will normally be dismissed. In this way you can avoid any appearance on your traffic record as well as any damage to your car insurance rates. There are some minimal court costs associated with deferred adjudication, which vary by state.

While you may not be able to avoid getting the occasional traffic citation, you can make every effort to be a smart and safe driver. When you do have to deal with a traffic ticket, try using the methods above to limit the effect it has on your auto insurance.

Is Accident Forgiveness A Worthwhile Auto Insurance Add-on Cover

Quite a few extra coverage options exist that a driver can buy when purchasing an auto insurance policy. However, many of these options are not necessarily great purchases for every buyer. For instance, customized parts and equipment coverage are not necessary if a car is not going to be modified or upgraded. Other add-ons, however, seem like logical buys, such as accident forgiveness. Accident forgiveness stops an auto insurance claim from counting as a point on a driver’s record. Since the cost of auto insurance coverage can skyrocket when a claim is made, some drivers consider it a great deal. As with any add-on, it is worthy of consideration, but it is important that drivers understand exactly how accident forgiveness functions.

The problem is that several auto insurance companies offer accident forgiveness, however, the terms may vary greatly. In general, drivers are required to keep a good driving record in order to become part of an accident forgiveness program. One or more traffic citations may result in exclusion. If you have been involved in an accident or have had a citation, you may not be allowed into the program at all. Accident forgiveness is inexpensive yet does come at an extra cost. They are certainly worth the money if you are ever involved in a fender bender. However, a major accident may not be covered under an accident forgiveness program. The program may also extend to all accidents and not just accidents caused by you.

Therefore, it is extremely important to fully read over the details of the add-on before deciding whether or not to purchase it. Talk to your insurance agent if you do not fully understand any of the terms laid out in the auto insurance policy. Ask whether serious accidents are included in the add-on. Also, ask if whether or not you will be notified in the event that you are suddenly excluded from the program. It should go without saying, but the cost of such an add-on is also important. Make sure that you know what you are paying before you decide to make a purchase.

Again, it is important to stress that accident forgiveness is often well worth the cost. However, remember that each driver’s situation will vary. Assuming a driver is eligible, and the addition only costs a few additional dollars each month, it is difficult to think of a reason not to opt into an accident forgiveness program. Accidents can happen at any time, and they can happen to relatively good drivers, so a bit of extra protection could save you quite a bit of money in the long run.

How To Plan For Your Next In-full Auto Insurance Payment

In a tough economy, people are trying to cut expenses in any way they can, but auto insurance is an expense we cannot do without. State laws tell us we must have insurance in order to drive a car, and many states will not even allow you to license an auto without providing proof of insurance. Do you panic when that yearly insurance premium is due? If so, there are strategies to help you plan to pay the full amount without breaking your budget. Some insurance companies offer monthly, quarterly or yearly payments of premiums. However, there is usually a fee that accompanies installment payments, so it is best to pay the auto insurance coverage yearly.

In terms of budgeting, one should always plan ahead in order to be able to pay the full auto insurance premium. As soon as the yearly premium is paid, you should start saving for the next year’s payment. Divide the full amount by 12 to get the monthly amount you will need to save. You may even consider adding a few dollars just in case your auto insurance rate increases over the year. Be diligent about saving this amount by putting it in a savings account. Keep in mind that by putting the fixed amount in your savings account every month, you will be earning a small amount of interest on it. If you were paying your auto insurance on a monthly basis to the company, you would be paying them a fee instead. In essence, you are saving money by doing this.

If the monthly savings plan is not feasible for you, look to an income tax return for the funds. Again, you need to set up a savings account and deposit enough funds to cover your next auto insurance premium. Pay the full amount when it comes due. As soon as you have paid the full amount, go ahead with the idea of budgeting a monthly amount to continue putting in the account. This will help to get ahead for the following year’s insurance premium.

Auto insurance coverage is a necessary part of everyone’s budget, but you can make it easier to pay by planning ahead to pay it in full. You will know that you are prepared to pay the insurance rate when it comes due by simply transferring the money from your savings account to your checking account. Placing that monthly amount into an account to save for an insurance premium may temporarily slightly strap your budget, but it is better than stressing out at the last minute when the full amount is due. You may even consider the interest earned to be a personal bonus!

The Consequences Of Withholding Information From Your Auto Insurance Company

When you begin the search for an auto insurer, you will find yourself asking for auto insurance quotes from a number of companies and hoping one comes at an affordable rate. However, you can be sure the auto insurance agents will be asking you questions as well regarding your driving record and whether you’ve even been in a car accident. You know that answering yes’ will mean a higher auto insurance quote if the company is willing to offer you auto insurance coverage at all.

You need to always tell the full truth on the insurance application. It is legally required that you report all auto accidents you have been involved in, claims you made against previous auto insurer, and/or any driving infractions. Failing to do so could make your auto insurance more costly than if you had been honest up front. Even an accidental omission could end up costing you a lot of money. According to Auto Insurance, about one out of every five drivers leaves out some information-whether accidentally or purposefully- when applying for new auto insurance coverage.

Once you fill out an application for auto insurance coverage, the company is going to review the information and verify it. If it is found that you left out some of your driving record, the insurance company may turn you down. If you left out information and still received insurance, your best course of action is to tell the agent you remembered additional information. The auto insurance company is less likely to drop your coverage if you bring an omission to its attention. Your auto insurance rates may still increase, but at least you will still have coverage.

If you already have an auto insurance policy and are involved in an accident, you need to report the incident to your auto insurance agent even if it is a minor accident that you plan on covering repair costs for yourself. You never know when the other driver involved in the accident might make a claim down the road. If your auto insurance company doesn’t know about the accident, then the company may drop your coverage, raise your rates, change your coverage or reduce your auto insurance coverage once the omission is discovered. If you can notify your auto insurance agent immediately following an accident, do so because your auto insurance policy may have restrictions on who can tow your vehicle as well as where it can be repaired. Though you don’t legally need to notify your insurance agent immediately after an accident, you shouldn’t wait for longer than a week before letting your insurance agent know. The longer you wait, the more suspicious you will appear.

Is There Special Auto Insurance For Electric Cars

Buying auto insurance for an electric car is just like buying insurance for a traditional car, but for one essential element. When you get an auto insurance policy for an electric car, you’re likely to get it a little cheaper. So there is no special insurance for electric vehicles, but their are companies that will give you a better deal on electric vehicle insurance. Electric car auto insurance, even a hybrid car insurance, can be more affordable when placed with the right company. There are several factors that certain companies look at when it comes to these cars. First, electric cars present an image of responsibility, making you look like a better risk to the insurance company. Second, electric cars have less horsepower, which has a direct effect on reducing the cost of auto insurance coverage. Finally, electric cars have a limited range, translating into fewer miles driven and ultimately, lower insurance rates.

On the flip side, there are two aspects of electric cars that work against finding affordable rates. First, pedestrians cannot hear these silent running cars approaching, making the likelihood of a pedestrian accident greater. During low-speed maneuvers like turning and backing, electric cars are 50 percent more likely to strike a pedestrian. Ask the insurance company about discounts for installing an alert device. The second problem for electric car auto insurance rates is common to all new technologies. Electric vehicles are more expensive to repair. As the technology becomes commonplace, these costs should come down, helping to bring down insurance rates as well.

Still, it’s important to be smart no matter what kind of insurance you plan to buy. Because actuarial data on electric vehicles is limited, some companies are using the method applied to first-year model gasoline cars when establishing their rates. These numbers take into account the sticker price of the car, which is often higher on electric vehicles. You want to work with companies that look at electric vehicles in a new light, calculating rates based on the real-world risk that these cars pose, which is substantially less that gas vehicles when it comes to accidents. The only way to find the company that sees electric vehicles in their own category is to shop around. Get an auto insurance quote from at least three companies. Look for companies with a history of innovation and embracing change. These are those most likely to give you the best price on auto insurance coverage. Don’t forget to check the insurance companies and their financial ratings. Work only with companies that are financially stable and will be around to pay any claims that might arise on your electric vehicle.

Can My Auto Insurance Cover A Vehicle I Don’t Own

There are several instances when your own insurance policy may cover a vehicle you don’t personally own. These situations require that you were driving the car and were responsible for the accident. Essentially, your auto policy covers other cars only when they do not have insurance of their own or when they exhaust coverage on the primary policy.

For example, you could be in a rental car while your car is in the shop. It could be that the insurance on the car was exhausted, causing your policy to take effect as a supplemental source of insurance. Perhaps you don’t own a car but occasionally borrow one from a friend. In the first two scenarios, your own car insurance policy can come into play while you are driving someone else’s car. In the third case, you may have a non-owned automobile policy to cover your incidental use of the cars owned by your friends and family.

In the case of rental cars, your auto insurance coverage and limits will often apply to the rental car too. If you have collision coverage on your policy but did not purchase additional collision coverage from the rental company, your policy pays for the damage. If you do buy collision coverage from the rental company, your collision policy would only come into play if the coverage you bought through the rental agency was exhausted. Comprehensive coverage works the same way. Liability coverage is mandated by law in some states. In these situations, the rental company is forced to carry its own liability insurance and will be primary for any accidents. Otherwise, your policy will pay first.

When you borrow a car from someone else, a similar situation arises. It may be that your friend let their car insurance lapse or that the insurance on the other car was not enough to cover the damage. If you were driving the car, your insurance may end up paying the claim.

In the case of non-owned vehicles, you can buy an insurance policy that covers you whenever you drive a car that belongs to someone else. This coverage is most appropriate for residents of large cities that often rent cars. It can be cheaper to purchase one year of non-owned auto coverage that pay rental insurance fees every time you rent. The non-owned auto policy is primarily for liability coverage in the even that losses exceed the coverage on the car you are driving. Damage to the vehicle itself will be covered by the vehicle owner, as long as they gave you permission to drive the car. In general, these policies do not carry deductibles, as is the case with most liability policies.

What You Need To Know About Split Limit Auto Insurance Coverage

When purchasing auto insurance coverage, you need to know that insurance companies use the concept of split limits to reduce the cost of a policy. If they successfully reduce that cost, that enables them to offer the consumer a more attractive auto insurance quote.

When an insurance carrier sets the limits on a split limit auto insurance policy, it provides two numbers like this, 100,000/300,000. The first number represents the amount of money that would be paid to a claimant in an accident. The second number represents the total amount of money that would be paid to ALL claimants in an accident. For instance, if the liability policy were designated as 100,000/300,000 a claimant would be entitled to $100,000 in the event of an accident. If there were multiple claimants, each would be entitled to no more than $300,000 among all of them. If there were more claimants than $300,000 is evenly divisible by, the adjustor handling such a claim would have to apportion each claimant an equitable figure.

The term split limit’is used, as opposed to the term ‘combined single limit.’In a combined single limit plan, there is only one figure, say $300,000. In the event of an accident, that amount has to be divided among claimants, which results in the same outcome as the split limit plan. However, it is when there is only a single claimant that there is a difference. This is because there is no additional cap, like the $100,000 applied above. A single claimant could possibly receive payment of the entire $300,000. Split limit auto insurance is generally used in bodily injury coverage, uninsured (and underinsured) motorist coverage, and property damage. The property damage limit may be tacked on at the end, producing a string of three numbers. A policy designated as $25,000/$50,000/$25,000 would work in the same manner, only with lower payouts. The third figure would be the cap on the property damage, which is not split. Uninsured, or underinsured motorist coverage is used to protect you in the event you are involved in an accident with an uninsured driver. Just as you can select limits on your bodily injury protection, you can select limits on your uninsured and underinsured motorist coverage. This can be particularly important in states such as Texas, where there is a high percentage of uninsured motorists.

Although the technique of splitting liability limits is an effective means of saving money, it is not used in all policy areas. No-fault benefits are a good example of a single limit type of coverage. However, you will find, that most of your car insurance coverage will come with a split limit.

Why Is It That The Government Requires Auto Insurance

The U.S. government has very good reasons for requiring that all drivers in the country carry the right amount of auto insurance. Perhaps one of the most fundamental and compelling reasons that auto insurance policies are required is that cars have the potential to kill or maim people and cause significant property damage. Because a vehicle is a piece of machinery, drivers – no matter how good they are behind the wheel – can’t always control how the vehicle will react in certain situations. Although no one sets out in the morning deliberately planning to have an accident, it happens. And it happens for any number of reasons, such as inattention, inexperience or distraction. We haven’t even gotten to the less forgivable reasons like alcohol or road rage. Auto insurance ensures that regardless of the accident’s cause or who is at fault, the damage will be paid for.

If the government didn’t mandate auto insurance, it would be up to the drivers to their losses from an accident. Damages that occur in accidents can be very extensive, and the associated costs can quickly add up. Victims in auto accidents could suffer serious personal injury. They could also be rendered unable to work. Worst, they could suffer permanent and lasting disability. It is unlikely anyone could afford to pay these costs unexpectedly out of pocket. Insurance is the means by which such pain and suffering and loss of earnings is compensated. After all, a fundamental premise of a developed nation’s legal system is to ensure that victims will be made whole for their losses.

When you obtain an auto insurance quote, one of the coverages you are required to purchase through state law is no-fault insurance. No-fault insurance, or personal injury protection as it is sometimes called, makes the reimbursement of medical expenses automatic rather than based upon fault. By doing this, no-fault coverage frees the dockets of a nation’s courts over lawsuits arising from what, in some cases, are minor medical bills

Then a social issue runs beyond the mere legalities of auto insurance coverage. Imagine the inequities that could arise if people of means could inflict damage to others and then aggressively defend lawsuits arising from their wrongs. Or, in the converse, what if the person of means wasn’t actually damaged, but because of their resources, had the power to bring frivolous lawsuits against another driver to coerce a settlement. In that vein, mandated auto insurance is an equalizer.

For these reasons, it becomes clear that there are very sound reasons for making auto insurance mandatory, from a legal standpoint and from a social justice standpoint.

Does Having Auto Insurance Protect Me From Lawsuits

Having the right auto insurance can protect you from lawsuits. As a matter of fact, this is one of the major reasons for purchasing an insurance policy. We live in a litigious society where people sue each other without hesitation for the smallest things – and a motor vehicle accident is by no means a small thing. When you purchase auto insurance coverage through a carrier, they assume the role of protecting you in an accident. This means that if the other driver hires an attorney to sue you for injuries and vehicle damage, your insurance carrier will step up to the plate and defend those auto insurance claims that arise against you.

This means that your carrier will gather claim documents, investigate the circumstances of the claim and make a decision regarding your liability in the matter. If your insurance company determines that payment should be made to the claimant, it will negotiate a figure with the claimant’s attorney that will settle the matter. This is essentially the means by which insurance prevents you from being sued in court. However, people should understand that such protection against lawsuits is not bulletproof. You can still be sued following a motor vehicle accident, as you can be sued for almost any act of negligence today. If the other driver demands more money to settle the matter than the limits of your policy coverage, your personal assets can be the targets of the lawsuit. Drivers should be aware that at such a juncture, their insurance carrier might place them on notice that they have the right to retain counsel on their own.

This is why some insurance experts advise people to obtain the most insurance coverage they can afford. A high level of coverage can prevent the catastrophic lawsuit that results in the targeting of a defendant’s personal assets such as a home, car, investments and bank accounts. The more assets a person owns, the more the reason to purchase higher limits of insurance. Maintaining adequate policy limits is one means of avoid being sued. Another means to prevent being sued is to comply with the conditions of your policy. This means using the car for the purpose for which you told your insurance carrier you would be using it. If you stray from these conditions, you may open the door to being sued (despite the existence of coverage on your part).

Perhaps the most important thing to remember is there is no such thing as a silver bullet’to protect you from auto-related lawsuits. However, policyholders can enjoy peace of mind knowing that driving prudently, maintaining adequate coverage limits and following the conditions of their policy helps them avoid it.

Strange Stories About Auto Insurance Companies

Over the years, many strange stories about auto insurance companies have surfaced. These stories spread misconceptions regarding the auto insurance industry – how they determine coverage and rates, what different policies cover and how drivers should go about obtaining auto insurance. This article aims to put some of those stories to rest.

One common misconception involves what information is used to calculate auto insurance quotes. In truth, almost all insurance companies use the same basic information to quote insurance premiums. The most necessary information includes information about the vehicle – such as year, make, model, body type, engine size and mileage usage. Additionally, information about the driver is obtained, such as accident and moving violation history, credit reports, age, marital status and where you live and work. Many people believe that other things, such as a car’s color or a driver’s smoking habits will lead to higher premiums. Auto insurance myths regarding car color and smoking habits are indeed false. Simply driving a red car will not have an effect on auto insurance quotes. It is true however that a driver with a red sports car who collects many speeding tickets will have a much higher insurance rate then a driver of a blue minivan who has a clean driving record. This is based on safety factors and an increased risk of accident and not on car color.

Auto insurance coverage is often misunderstood and carries common misconceptions that can lead drivers to underinsure their vehicles. The biggest misconceptions about coverage relate to the different types of coverage. A friend who borrows your car and is then involved in an accident may be partially covered by his or her own insurance, however the accident is viewed as your responsibility and will affect your insurance coverage. Additionally, a car insured for personal use is not covered for business use, especially when transporting clients or making deliveries, even if only occasionally.

The most common coverage myths are in relation to auto theft and natural disasters. Comprehensive coverage is essential for damage due to hail, fire, windstorms, animals and vandalism, as these are not covered by collision coverage. However, it is often thought that insurance will pay off the amount owed on a vehicle in the event of theft or if the car is totaled. The truth is that insurance will only pay out the depreciated cash value of the vehicle minus deductibles.

The biggest and most dangerous myth of all is I’m a safe driver, have never been in an accident or had a ticket; therefore I do not need auto insurance coverage.’Accidents can happen any time to any one. It is always best to consult a reputable insurance company for accurate information.

Michigan Drivers May Be Paying Less For Insurance Coverage In The Future

Although the people of Michigan have had to pay more than residents of any other state for their auto insurance coverage in the past, new legislation might make obtaining insurance at a lower cost possible for them soon. According to, the Michigan House of Representatives passed a bill before the New Year that could lower insurance prices and change how auto insurance is regulated in the Great Lakes state. Despite the fact that Republicans and Democrats still don’t see eye to eye on the issue, it could make some important changes for Michigan residents who are paying too much for their car insurance., referencing the Insurance Information Institute, lists the United States’ insurance average at just over $1,700, while residents of Michigan are paying an average of just over $2,200 annually. Democrat Shanelle Jackson suggests that the new Michigan bill will improve the financial situation of many Michigan drivers by lowering the state’s extraordinary rates. Additionally, Shanelle states that more and more efforts are being made to aide low-income Michigan residents in their pursuit to obtain and keep affordable auto insurance.

One of the ways the bill will help Michigan residents save on their auto insurance premiums is through new regulations for determining auto insurance rates. The new legislation will force auto insurance providers to neglect career as the main variable from which auto insurance premiums are calculated. Instead, the companies will be forced to use different criteria to establish fees and costs. In addition, the new laws will help Michigan auto insurance customers protect their privacy and sustain their comfortable lifestyles. According to, the new law does not allow insurance companies to sell customer information without the permission from policyholders. This means that auto insurance customers won’t have to sift through as much junk mail and e-mail, or receive annoying phone calls.

While the new legislation will mean greater savings for Michigan residents if passed by the senate and signed into law by the governor, it will also mean changes. Michigan residents looking for auto insurance quotes will likely see a reduction in the rates displayed. Because of this, Michigan residents looking to change or obtain auto insurance coverage may want to wait until after the law goes into effect. However, whether the rates continue to go down or they stay the same, Michigan residents should be sure to obtain and keep auto insurance. In addition to the extensive costs that Michigan drivers could accrue if they drive without auto insurance and get in an accident, legal fees and fines for driving uninsured are also possible.

By lowering the cost of auto insurance, Michigan auto insurance companies can help drivers stay safe.

Driver’s Ed Gaining Popularity In Schools, Minimizing Future Insurance Claims

Driver’s education is now currently popular in high schools across the country. There are a number of reasons why teen drivers are benefiting from taking drivers education classes in school. Less than ten percent of the last generation of American school children took drivers ed as an optional course. Here are some reasons why drivers ed is gaining increased popularity in schools.

Inexperienced teenage drivers often overestimate their abilities while driving. Many teens do not know common driving rules. For example, they may not know how to measure a safe distance from other cars while in traffic. Teens that do not learn about why certain laws exist may unknowingly break them. Open discussion forums in classrooms can walk students through many different traffic scenarios. Teens that have some monitored experience driving with an adult have less accidents and unintended property damage claims. Auto insurance quotes allow for a quick addition of young drivers to policies that may include other family vehicles.

Obtaining auto insurance coverage is more affordable for teens that have completed drivers ed in school. Passing the required drivers ed class may be easier with peer support. Students involved in extracurricular activities must pass all classes to participate. Parents may be more involved in helping with reviewing safety issues regarding obtaining a license when there is instruction at school. Meetings should be held to let parents know exactly how their teens can qualify for auto insurance coverage discounts. Many states have increased the budget for driver’s education in high schools. This helps students whose parents may not be able to pay the out-of-pocket expense for the drivers ed course. Some schools may offer the course for free or at a discount. There are some community organizations that support teenage drivers ed courses. Parents that have severely injured teens in auto accidents or those who have experienced traffic-related deaths of their own teens support schools monetarily for providing more drivers education. Educating the parents may increase the number of students that choose to enroll in driver’s education as an elective in high school.

Many car insurance companies offer reduced rates for teen drivers that have one or more driver’s education courses completed. Auto insurance coverage is easier to obtain for teens that have successfully completed drivers ed and obtained licensing. Use the resources provided by local schools to help educate your teen driver. Educated teen drivers have fewer fatalities and severe injuries.

Winter And Auto Insurance Claims

Winter can be a depressing season for many motorists, as the colder months tend to be those when most auto insurance claims are filed. Auto insurance companies are often quick to point this fact out, as their interest is, of course, to decrease the amount of claims they handle in any way possible. They do this by sometimes sending out information on winter driving or even use press releases to try to urge drivers to behave more carefully in colder conditions. Nevertheless, it’s still a treacherous season to be on the road, according to accident statistics on American highways.

The reason behind the elevated number of claims on auto insurance coverage during the winter is easy to figure out – road conditions change drastically during the winter months. Colder temperatures mean more ice, snow, impaired vision via frost on windshields and mirrors, and accidents due to vehicle malfunction. Drivers can, of course, plan for and adapt to these new conditions. Learning the correct procedures for driving on snow and hitting patches of black ice, as well as monitoring your speed on highways or other roads are all crucial for safe winter driving. It also pays to spend a bit of money before the winter hits to get your car ready for the season. Investing in snow tires and getting regular tune-ups can help you coast through the winter months without incident. In addition, dealing with vehicle problems as soon is they’re apparent is also important. Remember, if you make any claims where you’re at fault, you can expect a higher auto insurance quote in the future, so spending a little precautionary money actually saves quite a bit in the long run.

Unfortunately, even if you take every possible step to ensure your safety during the winter months, you can’t do the same for other drivers. One of those other drivers may end up causing an accident with your car, which results in a claim – maybe not a claim that will affect your insurance, but an annoyance nonetheless. Before you hit the road, double check to make sure you’ve got up-to-date insurance information in your car, and make sure you know the correct process for documenting and reporting a claim. A seemingly minor mistake like apologizing for an accident that wasn’t your fault can end up ruining your claim and costing you a lot of money.

Some areas of the country have to worry more about the winter than others, but even if you live in bad winter weather, taking time to know your auto insurance policy and to keep your car (and driving habits) winterized will be incredibly helpful throughout the season.

How Do You Acquire Overseas Auto Insurance

If you are traveling abroad and planning on using a car as your primary transportation, it is imperative that you get sufficient auto insurance coverage for the duration of your trip. Meet with your insurance agent to discuss your travel plans in order to determine the proper amount of coverage for you and any other drivers. And, though most personal auto insurance policies do not usually provide international coverage, if you have an umbrella policy, you may already find you have worldwide coverage. It’s important to meet with your agent to discuss this, and the other options you have for overseas auto insurance.

Additionally, it’s imperative you consider getting breakdown and liability auto insurance coverage. Paying a relatively small fee for this type of overseas auto insurance is much more favorable than paying a heftier fee if your car gets damaged or breaks down. This will help you avoid major headaches. Something as minor as a fender bender could seriously damper your trip. Breakdown coverage includes towing, roadside assistance and some mechanical failures. Ensure that your liability coverage covers responsibility for any property damage or injuries you might experience as a result of an automobile accident regardless of who is your fault. Furthermore, liability coverage should also cover a rental vehicle.

The duration of your trip will also affect what type of overseas auto insurance will work best for you. For example, if you intend to travel a lot during the year, consider getting a yearly international policy, which will reduce the hassle involved with having to get a brand new overseas policy every time you hop on a plane. Additionally, obtaining a yearly international policy guarantees you will have a fixed rate on that policy for that year.

When it comes to overseas auto insurance, there is also the option of purchasing coverage at the rental car counter as opposed to from your insurance agent. Purchasing insurance at the counter of a rental agency is a good idea because paying for a loss damage waiver will lessen your liability. Although the loss damage waiver is not insurance coverage, it removes responsibility from your shoulders for damages or theft and places responsibility on the rental company. However, if you are at fault for damage, this waiver does not include liabilities to other parties. Additionally, it’s possible that by paying for your rental car with a certain credit card that the credit card company will offer you a certain amount of coverage as well.

Whichever route you go to obtain overseas auto insurance, just make sure you are properly covered in case of an accident. There is no need for your trip to be ruined just because you were ill prepared.

Can Proper Winter Car Preparation Result In Auto Insurance Discounts

When looking for an auto insurance quote, you probably make a point to take advantage of every possible discount you can find – good driving, multiple car, safety features, etc. After all, you don’t want to pay a cent more for good auto insurance coverage than you had to. However, once you get your policy, is also helps to look at it every season to find seasonal discounts on your premiums. This is especially true in the winter, which is historically the worst season for driving – claims against auto insurance policies skyrocket during the icy season, and the number of accidents in colder climates climb as drivers hit the road in vehicles that are under prepared for winter driving conditions. Under many policies, you can get an auto insurance discount by taking a few simple steps to get your vehicle ready for the cold.

Many insurance companies will add a discount to your policy if you get regular tune-ups and scheduled maintenance. This maintenance decreases the chances of a vehicle malfunction that would lead to an accident – ultimately leading to claims. Choosing tires that are well adapted to snow and ice can also be beneficial to your car insurance policy. The type of tires that you drive on can make an enormous difference, as many motorists in the northern United States already know. Insurance companies also know that the best way to avoid accidents in the winter is to drive more safely. You can refresh your winter driving skills by attending a defensive driving class, and most insurance companies have discounts available for drivers who attend these short, low cost (or free) sessions.

Some insurance companies don’t offer any sort of discount for smart drivers that winterize their vehicles. Most of the major companies have discounts, but it’s impossible to say whether your policy has built-in discounts without looking at your car insurance coverage. Contacting your car insurance agent is the best way to determine whether any sort of auto insurance discount is available when you take steps to winterize’ your vehicle. This may also be something you want to inquire about in your initial car insurance search, especially if you live in the northern U.S. that experiences lots of snow.

Regardless of whether a winterizing discount is available for you, you will at least know that you are taking the proper precautions to keep your passengers safe, and to help you avoid insurance claims due to winter accidents. Doing all these things will also help in the long term, because the less claims you make and the smarter you drive, the easier you will make it one yourself to get car insurance in the future.

Auto Insurance Policies For Military Personnel

Members of the military perform strenuous jobs in order to maintain national security. Unfortunately, this danger level isn’t always reflected in their pay rate. Like every member of society, service members may have large families, be paying off student loans or have excess debt. Luckily, one of those added excessive costs doesn’t have to be auto insurance. Today, many insurance companies acknowledge the sacrifice that military personnel are giving for their country by offering discounts to service members. In addition to these discounts, military members can further save themselves money by exploring other discounts offered by insurance companies. Affordable auto insurance rates can be a help to anyone.

Families of service members may be currently working lower paying jobs due to having to be close to their spouse’s assigned duty station. It also possible that a member’s significant other is watching over the family – and their auto insurance coverage -alone while the service member is deployed overseas. In these situations, having low-cost car insurance that provides the proper amount of coverage can bring peace to a soldier who can’t be there all the time with their family.

When military members are seeking out auto insurance quotes, they can question agents about making sure coverage is adjusted properly. It may also be worth looking to see if the companies you are inquiring with have a separate inquiry process for military personnel. Having this available in the future can be helpful with problems that service members and their families commonly face, including frequent moves, address changes and deployments. Inquiring in this manner can also ensure military families get the best possible rate for the proper amount of auto insurance coverage. If a spouse is taking on this task, they can still make sure the family gets a discount by mentioning their military affiliation.

When determining coverage, it’s important to consider whether the service member will be overseas. If a military member is deployed, their vehicle in the U.S. will likely be left undriven, and therefore will require minimal auto insurance coverage. By making sure this sort of adjustment gets made, insurance rates can be dropped significantly. Avoid dropping insurance on that vehicle all together – though it may be tempting to save money. Even though the vehicle is not being driven, it may still be subject to damage that may occur where it is stored, or it may still be at risk of being stolen. Maintaining a certain amount of coverage is still vital.

Getting an accurate auto insurance quote doesn’t have to be difficult just because you’re a member of the military service. In fact, you might be in for some great money-saving discounts.

What Is Comparative Negligence In Auto Insurance?

One of the most important things you’ll need to understand about your auto insurance policy is the terms surrounding your claim payments. It’s critical to know what situations would prompt an insurance pay out on one of your claims, and how your state figures accident fault. Many states now use a method called comparative negligence to find who’s at fault in an accident. So, if your state uses comparative negligence, you should learn about the term before you’re involved in an accident.

When you’re involved in an auto accident, the party who had is said to have more fault in causing the accident is determined to be the negligent party when figuring who will pay for injuries and damages. Because this could result in some terribly unfair judgments, most states now use comparative negligence. In states with contributory negligence, if the injured party is even 1 percent responsible for the accident, they can’t recover any damages. In comparative negligence, an insurance company decides what percentage negligent each party was in the accident, and drivers are entitled to claims according to these figures. For instance, if you were 10 percent at fault for an accident, you could be financially responsible for approximately 90 percent of the damages caused in the accident.

In many states, 51 or 50 percent comparative negligence laws are used. These basically state that if a party’s negligence is over a certain number (50 to 51 percent), they’re not allowed to receive damages. If you get into an accident where you’re at 50 percent fault in a state with 50 percent comparative negligence, neither you or the other driver will be able to recover any damages – which is why many states opt to use the 51% number. A claims adjuster, who will negotiate with you and any attorneys that you’ve hired, figures the percentage of negligence. When percentage of negligence is decided, it’s submitted to the courts and your auto insurance company. Your auto insurance coverage then takes effect to pay any damages that you owe (other than your deductible and up to your limit).

As always, you should remember never to admit fault if you’re involved in an accident, and to follow the instructions on your insurance card. If you admit fault, you’re automatically 100 percent negligent, which will hurt you in court, so even if it seems obvious, never apologize or admit fault. You should read your auto insurance policy to see what type of coverage you have, and research your state laws to see whether you’re driving under contributory or comparative negligence. Knowing how your state’s insurance law works will be extremely vital if you do get into an accident.

What Is Diminished Value?

After a car has been damaged in an auto accident, it has less value. If you try to sell the vehicle after it has been damaged and repaired, you will receive less money for it. This is also referred to as your vehicle’s diminished value. Research shows that people who buy cars that were involved in an auto accident expect to pay less money for them. In addition, the cost for auto insurance coverage usually increases with previously damaged vehicles. Furthermore, people automatically assume that the car is not in perfect condition anymore, and it might cost them money down the road with repairs. Another concern is the parts used to repair the vehicle after the accident. Sometimes, repair shops do not use parts from the manufacturer, so people assume that the car will not function as well, or it will need to be repaired again in the near future. As a result, the seller risks losing money when someone buys the vehicle. Keep in mind that the seller is obligated to tell the buyer about the car’s history. It is illegal to withhold that information when selling a car.

There are many different factors that play a role when deciding how much a vehicle is worth after being involved in a car accident. This includes the age of the car, the total number of accidents, the vehicle’s condition before the auto accident and mileage. The extent of the car’s damage also affects the value. An expert would be necessary to assess the car’s value after the automobile accident.

Please note that you may be able to collect payment for the car’s diminished value. For example, if someone hits your car, you would file a third party auto insurance claim with that person’s auto insurance company. You can request payment for your vehicle’s diminished value. You can check with his auto insurance provider, because the laws vary in each state. Sometimes, it is difficult to receive payment for the car’s diminished value. Some auto insurance companies have stated that they might have to increase auto insurance premiums to make up for the loss of diminished value claims.

If you have been involved in a car accident and you are interested in filing an auto insurance claim, you can contact a lawyer that has experience with diminished value claims. He will advise you on what you can do. However, in most states you will be able to file a claim with the third party auto insurance provider. Keep in mind that you should file the diminished value claim after the car has been repaired, with the payment you received from the auto insurance provider.

How To Determine If Commercial Car Insurance Is Right For You

Whether commercial car insurance is something you should consider depends on how you use your vehicle. If you own a company and you drive while on the job, commercial auto insurance may be worth having. In other words, your standard auto insurance coverage will protect you when you’re driving to and from work, but it may not protect you if you’re driving for work. A lot of people overlook that serious distinction. Usually, it’s not much of a problem. If you’re in an accident, though, your auto insurance may not cover you if you were driving in a work capacity at the time that the collision or other problem occurred – and that can be true even if the accident wasn’t your fault.

Checking with an insurance agent is the best and safest way to know for sure whether you need commercial auto insurance. However, if you don’t drive your vehicle for work, you probably shouldn’t worry about it. Your coverage is generally enough to cover you if you run out of the office for a few minutes to pick up something. Even though you were buying something for work, you weren’t really using your vehicle as part of your normal workday. Commercial auto insurance applies more to people like sales representatives who use their vehicles for work all the time. They need to be properly covered in case they are involved in a collision.

When you get a job where you’re working for someone else and driving one of the company vehicles, you shouldn’t have to worry about commercial auto insurance either. If it’s a company vehicle, the auto insurance is the responsibility of the company, not the employee who’s driving the vehicle. It’s always a good idea, though, to make sure that there is valid auto insurance coverage on any vehicle that you drive. Check the glove compartment for the insurance card, and make sure that it’s not expired. Even though the insurance is not your responsibility, it’s still good to be careful. Don’t be afraid to ask your boss about valid commercial auto insurance for any car or truck that you drive for work.

On your own vehicle, commercial auto insurance can involve some different things and specific requirements, so getting all your questions answered first is a good idea. There’s no point in buying a lot of expensive coverage for commercial situations if you don’t really need it. On the other hand, you don’t want to buy standard auto insurance and find that it’s not enough when you’re involved in an accident. What kind of business you use your car for will generally dictate whether you need commercial auto insurance.

How To Be Prepared For A Hit-and-run Accident

No matter how safely you drive, or how much auto insurance you have, you can still be the victim of a hit-and-run driver. While there’s no way to foresee a hit-and-run accident, there are ways to protect yourself through auto insurance coverage. Most drivers are prepared for a typical car collision, where one or both drivers’ auto insurance covers the costs of damages and injuries. However, in the case of hit-and-run accidents where the driver at fault leaves the scene, the victim of the accident is the one who’s left to pay.

One way to protect yourself from the potential devastation of a hit-and-run accident is by adding uninsured motorist coverage to your auto insurance policy. This kind of auto insurance coverage not only pays for the damage, injuries and lost wages that may result from a collision with a driver that is uninsured (or underinsured) but it also covers collisions with hit-and-run drivers. This type of coverage is not mandatory in every state so it’s often up to you, the insured, to choose to have it on your auto insurance policy. The small amount you invest in uninsured motorist coverage can save you literally thousands of dollars in the event of a hit-and-run accident. It will also cover your injuries if you are a pedestrian victim of a hit-and-run driver.

It is also helpful to add replacement rental car coverage to your auto insurance policy. This insurance coverage helps to lessen the impact on your everyday life after a hit-and-run accident by paying for a rental car while you your car is repaired or replaced. This coverage ensures that you aren’t burdened with the unexpected expense of days or weeks of a car rental. This coverage costs only a few dollars a year – often less than the cost of a rental car for a single day – and is money that will give you the peace of mind of knowing you’ll have reliable transportation when you need it.

If you already have uninsured motorist and replacement rental car auto insurance coverage, it’s important to review these coverages carefully to familiarize yourself with the amounts your policy covers and what deductible amount you will be responsible for. Make sure you have adequate coverage for the full replacement cost of your vehicle, property damage and medical treatment for yourself and any injured passengers. If your coverage amounts are low, now is the time to purchase more insurance so you’ll have adequate coverage if you need it.

Hit-and-run accidents are an unexpected fact of life. The only way to prepare yourself from them is to have proper auto insurance coverage.

The Wrong Questions To Ask When Purchasing Auto Insurance

It's easy to ask the wrong questions when buying auto insurance. The law requires you to buy insurance if you're going to drive, so it's natural to look around for the cheapest option that satisfies the legal requirement. But, if the only questions you ask when you're buying insurance have to do with cost, you're more than likely to purchase auto insurance coverage that won't meet your needs down the line when you really need it. While it's certainly true that different companies offer some of the same services for different rates, it's also the case that comprehensive coverage costs more. When you buy a policy that covers you more fully, you'll pay more in the short term, but you'll be more fully covered in the event of an accident.

When trying to decide how much auto insurance you need, don't ask yourself how much coverage it will take to satisfy the basic legal requirements. Rather ask yourself what it would take to protect you from a situation that could disrupt your life financially, medically or practically. If you think you can't afford decent auto insurance coverage, just imagine what it's going to be like to try to afford all the expenses that can accrue if you're in an accident and don't have sufficient coverage. You might have to buy a new car, miss work or be saddled with expensive medical bills. Compared to these costs, the price of a decent auto insurance policy really doesn't seem so bad.

If you have an unsafe driving record, don't ask yourself whether it makes sense to pay for auto insurance coverage in the first place. Your premiums may be high, but the consequences of driving without insurance can be devastating. It can not only be detrimental to you if you're caught and forced to pay an expensive ticket, but also for the other drivers on the road if you are involved in an accident and unable to meet financial obligations. Court costs, as well, will make the money you would have paid for coverage seem like a real bargain.

It can also be unwise to place too much emphasis on convenience when shopping for a policy. It's all too easy to do the bare minimum research, find a policy that seems sufficient and affordable, buy it and end the process. Purchasing an auto insurance policy online can be the right choice for many people, but if you don't understand what you're buying, it makes more sense to find an agent who will answer your questions.

In general, when buying auto insurance, the wrong questions are the ones that focus on the short-term cost, and the right questions involve looking at the benefits in the bigger picture.

Perks To Keeping Your Auto Insurance Coverage

Auto insurance companies have begun battle for your patronage. Everyday, carriers are beaming their slogans and mascots directly into your homes attempting to convince you that their coverage or service is superior to that of all others. While conventional wisdom may imply that the best auto insurance benefits are to be reaped by switching insurance companies, this is not always the case. By staying with your current auto insurance carrier, you can incur a number of slightly more hidden – but equally valuable -benefits, such as greater familiarity and fiscal savings.

Though absence may make the heart grow fonder, it is familiarity that breeds stability and consistency. Staying with your same auto insurance carrier means that your company will have records of their past interactions with you. All too often, claims will fall through the cracks – or at the very least, take a much longer time than is necessary – due to insufficient policyholder contact information. If you stay with your company, they'll have records of all past phone numbers, addresses and e-mail addresses they've contacted you at. On top of all that, insurance companies see fraud all the time, so they thoroughly investigate claims being reported by new policyholders. These investigations can hold up claims for days, weeks or even months at a time. As a loyal customer at a company, you can avoid prolonged fraud investigation and the auto insurance company will push your claim right through.

You may be missing out on some hidden financial benefits if you're hopping from company to company with your auto insurance coverage. Almost every major insurance company offers some type of "long-time customer" discount on their plans. These may not come after your first or even your second renewal, but they will come eventually. Think of the time and effort it takes to shop around for auto insurance coverage; you call independent agents, captive agents, do some poking around online. All this can take hours, or even days. So how much is your time worth? If you value your time more than the relatively minor annual savings you might find shopping around, then skip it and stick with the auto insurance policy and company you've already got. In most cases, insurance companies require a "deductible" to be paid for any first party damages. With some companies, you'll be rewarded for going a number of years without any accidents; they could waive your deductible. Other companies offer deductible savings plans or disappearing deductibles.

All these auto insurance options however, are not available everywhere and are often only available to long time customers. Finding the best provider for you can often be difficult but once you do, the benefits of keeping said insurer are plenty.

In What Situations Is Full Coverage Auto Insurance Necessary

When talking to your insurance company about auto insurance, many times they will mention or suggest getting full coverage auto insurance. While full coverage insurance is not required in every state, it can be important to at least consider.

Quite simply, full coverage auto insurance is "a policy that covers the state's mandatory requirements, as well as the additional protection of physical damage to the policyholder's vehicle." Basically, any physical damage done to the vehicle, along with death or physical injuries caused to those people involved in the accident is covered financially for you. This sort of auto insurance coverage will also cover any property damage caused by insured person's vehicle.

There are various types of full auto insurance coverage. Liability will cover the costs incurred during the accident for the other person's car only. Collision coverage will pay for your car's damage. Comprehensive coverage covers your vehicle in the event of vandalism, theft, collision with wildlife and other unforeseen incidents not involving another vehicle. Many insurance companies will consider you fully covered when comprehensive and collision coverage types are added to the policy. First party coverage will secure damages caused to the policyholder's vehicle that wasn't caused by the accident, such as, weather or fire damage. In terms of collision, any loss "incurred and renders a 24-hour towing" is covered. If the car can't be driven until it's fixed, your insurance company will reimburse you for car rental, up to a certain amount. Third-party coverage is for vehicles that are not owned or insured. This sort of coverage ensures that your costs will be covered in case you are involving in a collision with someone who doesn't carry an auto insurance policy. Third party insurance is beneficial when it comes to handling medical bills of someone who is not insured and will relieve any stress when it comes to medical billing and claims.

Having full auto insurance coverage is not only important, but it can be very beneficial to drivers. When determining if this amount of coverage is right for you, it's important to discuss the terms, conditions, limitations and all types of coverage with your insurance company. You need to know what exactly you're purchasing before you sign any paper work. In addition, once you've determined the amount of coverage you required, shop around to make sure your agent is offering you the best price. You can do this at no cost through several websites that offer the direct comparison of many auto companies for the same amount of coverage.

If you are looking for a complete state of peace when driving your vehicle, full coverage auto insurance might be the best option for you to consider when comparing online auto insurance quotes.

Auto Coverage For College Goers

When a college student moves away from the home, auto insurance coverage might be the last thing on parents' minds, but it's an important consideration that's best made sooner rather than later. On one hand, if you're paying for too much insurance for the college student, you're wasting money; on the other hand, it's never a good idea to be uninsured, especially when young drivers are involved. Here's a look at how to determine how your insurance policy should change when a college student moves away from home, and how parents can keep their children properly insured.

If a college driver is taking a car to college, then your policy will likely need a few changes. Contact your insurance agent, as different insurance companies handle college drivers differently. You'll want to take your own name off of any vehicles that you won't be regularly driving, and consider adding coverage to your auto insurance policy–college drivers may be more likely to get into minor accidents, and it's always a good idea to set a low deductible if you can afford the difference in your monthly premiums. See if your insurance company offers lower rates for drivers that take defensive driving courses; college students who take these courses tend to be much safer drivers, which is a load off of parents' minds, and the lower premiums can allow you to adjust your deductibles.

If, on the other hand, a college driver isn't taking a car, now is a good time to remove them from your auto insurance coverage if they're going to school far away and won't use your car. Even if they're sticking close by, if they're not going to be driving your vehicle much, it doesn't make sense to pay for coverage that you won't be using. Most plans allow you to insure "temporary" drivers, which should be more than enough for occasional laundry visits, and will keep your premiums fairly low. Remember, most teen drivers are considered fairly risky by insurance companies, especially males, so removing them from your policy entirely will free up a lot of premium money. Further, if the student isn't driving, removing him or her from your policy is an obvious choice.

Most importantly, you'll want to talk to your auto insurance agent as soon as possible, as they'll be able to guide you to the best changes in your own policy to account for the college driver leaving the home. Make sure that the college driver is covered for serious situations, but don't pay for insurance that you don't need and your auto insurance budget will thank you.

Auto Insurance Coverage Keeps You Relaxed When Driving

Just being armed with auto insurance is not all; you have to know if the auto insurance coverage is sufficient to stand you in good stead if you meet with a car accident. Having no insurance coverage for your vehicle is illegal in a majority of the states, so you need to have one. It is not a good idea to carry very little auto insurance coverage as that might land you in trouble in the future.

The many types of insurance coverage

If you cannot make up your mind on how much coverage is essential for your vehicle, you can go through the following types of coverage. It will come in handy.

* Collision Coverage pays for car repairs, even if you were at fault. Your dealer will be asking you to carry this coverage even if you purchase or lease a car. You can get the highest deductible that is possible for you to afford.

* Liability Coverage pays your legal fees. It meets any claims that are made against you if you end up killing or injuring someone, or may be damaging someone’s property with your car. In case, you own a lot of assets, it is wise to get the highest amount that will shield you from the lawsuits. You can have this coverage as standalone coverage or you can also combine it with other coverages.

* Medical Coverage is for personal injury protection. Incase, you meet with a car accident, this coverage pays for your medical expenses as well as the passenger’s medical expenses. This coverage is an optional one and can only be present along with the liability coverage.

* Comprehensive Coverage is a good coverage that pays for the damages that were made to your car from theft, fire or vandalism. The damages that this coverage pays for also include natural disasters like hurricanes and hailstorms.

* Uninsured Motorist Coverage is for paying for the damages that are done to you. The payment that is made is also for the damages made to your car and passengers by underinsured or uninsured hit and run drivers.

Make use of the websites

You can surf through the reputed websites that can give you good and detailed information on the many kinds of auto insurance coverage available. Analyze them well and settle for the one that suites you and your lifestyle. Your ultimate goal should be to get the right kind of auto insurance coverage for your self and your family.

The Minimum Amount Of Auto Insurance Coverage You Are Allowed To Have

Auto insurance can cost a lot of money, so there are many people trying to lower their auto insurance coverage in hopes of trying to save money. The cost for insurance will depend on different things, like how much coverage you want. The question is, how much coverage is actually necessary. Understanding your state's minimum liability coverage and whether that will be enough to cover you in case of an accident is important to determine what you will want to seek when looking for your insurance policy.

According to Ezine, the definition of "minimum auto insurance" is the minimum amount of insurance a state requires all drivers to carry before they will be classified as "insured." The website states that the "minimum insurance requirement is stated in a/b/c terms."  "A" represents the "amount of bodily injury liability insurance" that's required to have "per person" when an accident occurs. "B" is the amount of "bodily injury liability insurance" needed in that situation, and "C" is the amount of "property damage liability" you need per accident covered in your policy. Typically this amount varies from state to state.

Liability insurance is what's going to cover expenses when an accident occurs; the payout takes care everything for the person you hit. Many insurance companies will recommend that your auto insurance policy cover $100,000 in bodily injury and $300,000 per accident. In addition to liability coverage, there's collision and comprehensive auto insurance that should be considered. Collision will cover any damage to the car, and comprehensive coverage takes care of your car in the case of any "unexpected problems."

According to Insurance Information Institute (III), drivers often need more liability insurance than what's required because accidents can easily cost more than what the minimum will cover. With the lowest coverage, if an accident occurs, you could be legally responsible for bills totaling more than what you're covered for. This means money will be coming out of your pocket to pay the balance. It's good to talk to your agent or a representative about higher liability limits. III also recommends purchasing an "umbrella" or excess liability policy. This type of policy will pay when "your underlying coverage is exhausted." When choosing your policy, you must also choose a deductible – the amount you pay on a claim before the insurance company reimburses you. Most deductibles are $500 or $1,000. However, the higher your deductible, the lower your premium.

Though you must always do research before deciding on a plan, investigating what your state requires and determining if that auto insurance coverage is enough for you is an even more imperative step when deciding on your policy.

State-to-state Coverage: How Long Can You Go Without Switching?

Insurance laws can vary from state to state. If you have auto insurance coverage in one state and then move to another, there are vital steps you'll need to take in order keep your vehicle covered and to keep driving legally. Most of the time you don't have a very long window of opportunity for changing your auto insurance coverage when you change states. This is especially true if your coverage provider isn't licensed to insure in your current state – leaving your vehicle's insurance completely invalid. Familiarizing yourself with state requirements and the coverage you need will be highly beneficial to you as a driver.

Each state has different auto insurance requirements. Even if your insurance provider is licensed to cover you in the state that you have moved to, your auto insurance may have too little coverage to meet your new state's laws. Typically, most states require you to register, title and insure your vehicle within their state as soon as you claim residency. Having the auto insurance coverage you need as required by law will be necessary to get through this legal process.

Some states accept out-of-state insurance policies, but you'd be hard pressed to find an auto insurance provider that would be willing to cover your vehicle in another state. Before you move, check if your car insurance agency provides coverage in the state you're moving to. If they do, you'll need to work with an insurance agent to customize your auto insurance coverage to fit your new home state's laws. If the agency is not willing to provide coverage where you're moving, you'll need to give them ample warning that you will soon be canceling your policy with them. Most insurance companies will be sympathetic to your situation, as long as you give them fair warning. If you don't give them this, it may affect your credit score negatively.

Failing to pay your insurance bill is not the correct way to inform an auto insurance company of your cancellation. Along with your tardy payment, you will also receive a tacked on fine. This is fair practice by auto insurance companies because it makes it easier for each state to keep track of who's properly insured within their state. Many states understand enough to allow you a short period of time to get your affairs together before enforcing changes over your auto insurance providers. However, if you delay too long, you just might end up with a fine.

For the most part, it's just a good idea to check with your local Department of Motor Vehicles about the rules that apply within your new home state. This will ensure you and your vehicle are covered wherever you go.

Auto Insurance Abroad: Making Sure You’re Covered While Traveling

Traveling overseas is undoubtedly an exciting opportunity to explore new places, to immerse yourself in rich cultures, to have culinary feasts and to take as many spontaneous road trips as you can. Driving in another country may sound like a fabulous idea, but before flying out of here and getting yourself behind the wheel, it would be best to review your auto insurance coverage. You might think that your auto insurance policy in the U.S. will cover you elsewhere, but this not always true.

As a traveler, you might want to consider a renting a car. If you do the research, you will find several international agencies that do business involving renting cars. When renting from an agency, be sure to check if the rental will include auto insurance. If not, you may opt to purchase temporary rental auto insurance from that agency. This is the best option if you do not have the necessary coverage in your current insurance policy. This also is usually the most cost-efficient and economical way of driving abroad. In looking for proper insurance, you may also want to contact your credit card companies. You might be qualified for insurance from them when driving overseas. Companies like MasterCard or American Express many times will cover your auto insurance when in a foreign country with a rental car paid for on that credit card.

You may also plan on borrowing a friend or relative's car when traveling. Ask first if they have car auto insurance coverage. It may be possible that his or her policy will cover anyone driving the car.

When looking to motor around another country, it's also good to educate yourself on requirements you may need as a driver. It is not entirely required for you to hold an international driver's license when traveling. In many cases all you need is a permit. Check with the country you are traveling to find out which type of permit you will need. Most valid international driving permits can be purchased before travel, as long as you hold your own U.S. driver's license.

Bottom line is, do not hesitate to ask questions. Contact your auto insurance company if you are uncertain and need clarifications about your insurance coverage overseas. You might even discover that, under your own insurance policy, you qualify for auto insurance coverage abroad without additional fees. Most auto insurance companies based in the U.S. do not offer auto coverage abroad. It would be best to consult with your insurer before making any travel plans to discuss your policy and to help you get the appropriate auto insurance coverage for while you travel.

Will My Car Insurance Cover Other Drivers?

Will My Car Insurance Cover Other Drivers?

In most cases, car insurance policies will cover damages to a vehicle, no matter who was driving your car. However, this is not always true. It is important to check your specific policy, or inquire about this coverage from any company you receive car insurance quotes from. Also, different states have different policies when dealing with these situations so it is important to be thorough when searching for car insurance coverage.

Who‘s Responsible For Damage?

Most commonly the car‘s owner is responsible to have liability coverage to pay for damages to another vehicle or property. Nearly all states mandate liability coverage. In the case of an accident, it will depend on who was at fault. If a friend driving your car hit another vehicle, then your liability insurance should cover the damages. Before you get in the drivers seat of someone else‘s car or let someone else drive your car, remember to make sure the vehicle has adequate insurance coverage for all parties involved.

You may want to check with your insurance agent to see what your policy all covers and look into your state‘s laws regarding driving someone else‘s vehicle. But, here are some good rules of thumb:

Always make sure you have the owner‘s permission to be operating their vehicle before getting behind the wheel.

So if you were driving in your friend‘s car and got into a fender bender your friend will likely would file the car insurance claim with his or her insurance company. This is the case even if your friend was not in the car while you got in the accident in their car.

As long as you had permission to be driving the car, the majority of time the car insurance follows the car first for coverage.

Your friend‘s liability coverage would be used on any damage to another vehicle or property. If they have collision coverage on their own car, they would just then need to pay the deductible for those damages to be repaired. It is not typical that your car insurance policy would cover collision damage of someone else‘s vehicle. Your friend‘s insurance rates could also be affected since the claim would be filled with their car insurance company.

If you were pulled over by law enforcement for a moving violation such as speeding or running a stop sign, you the driver would be responsible for any fines and that would go against your driving record.

Know You Car Insurance

It is always vital to know exactly what you need and what you want to pay for when dealing with automobile insurance. You want your car insurance policy to cover everything it is that you need but you do not want to pay for coverage that you will not use.

These days there are so many options when it comes to car insurance policies that it is important for you to do your homework and research before you start shopping around. Knowing what it is you need from your coverage, shopping online and asking about what discounts you may qualify for can help significantly save you money when buying automobile insurance.

It is easier when you know the product you are shopping for. Remember different states and car insurance companies vary with their coverage of cars and drivers. It is always important to know what your personal insurance policy covers when getting behind the wheel of any car.

What Does Full Coverage Mean?

What Does Full Coverage Mean?

In today‘s market, there are an absurd amount of options to choose from when insuring your automobile. There are a wide range of different levels of car insurance plans for different needs and different budgets. It is very important to know what you are paying for with your plan and what is all included in your coverage. You want to pay for only what you need and deserve, especially when the cost of everything around you is on the rise.

The Definition of Full Coverage

One common term that is often used when describing automobile insurance is full coverage. What does full coverage actually mean? Often times the term full coverage is used to refer to a plan that includes and covers more then just liability damages and costs of an accident.

It is important to keep in mind that different car insurance companies offer different full coverage packages and plans – not all full coverage policies offer the same coverage.

Obviously, in most cases, the more you pay the more the plan will include. Some car insurance companies‘ full coverage includes the repair of your vehicle, and if you were at fault and the accident was caused by you the repair of the other damaged vehicle or property involved as well. Depending on the full coverage plan, any injuries caused by the accident to you or others may also be covered.

With all the variances in full coverage options and packages it is very important that you know what is all going to be actually covered under a full coverage plan.

Most full coverage auto insurance plans will cover the costs of:

  • Vehicular damage, even if you are at fault in the accident.
  • Medical costs for you, no matter who is at fault.
  • Medical costs and vehicle damage to other parties, if you were at fault.
  • Acts of God, such as hail damage, tree limbs falling, etc.
  • Vandalism and non-accident related damage.

One automobile insurance company‘s full coverage plan might be equal to or less effective for you than another car insurance agency‘s comprehensive plan. It is essential to know what your car insurance package includes and what coverage you are exactly paying for.

What Factors Into a Full Coverage Rate

There are lots of factors that play a role in determining your car insurance rates. Gather your information and go about getting the best and most affordable coverage by knowing what it is you are looking for and what it is that you need from your car insurance. Consider the age and condition of your vehicle, your past driving record and what rates are like in your geographical region to help determine the amount of coverage you need. Rates are determined by:

  • Driving record of primary and secondary drivers
  • Age of all drivers
  • Credit history
  • Age of vehicle
  • Value of vehicle

Remember, when shopping around for automobile insurance it is important to think about, research and investigate what kind of coverage it is that you need. Doing your homework when searching for car insurance can help save you a bit of money. You can work with car insurance companies to find a plan that covers all of these needs and fits within your budget.

What does it mean that my car is insured, but not the driver?

Automobile insurance polices and coverage can vary from company to company and state to state. In most instances, car insurance follows the car first and the driver second. What this means is that the owner of the vehicle is usually responsible for making the insurance claims on any damages that are accrued from their automobile, no matter who was the wheel.

The Four Vital Steps

There are four vital steps that should always be taken before allowing someone else to drive your car or before you get in the drivers seat of someone else‘s car:

  1. Always ensure that you give or get permission to drive the vehicle.
  2. Make sure that the vehicle you are in has sufficient car insurance.
  3. Check with your automobile insurance company and see what your policy covers.
  4. Look into your state‘s laws regarding non-owners operating your vehicle.

Who‘s Responsible?

So if you were driving in someone else‘s car and backed into another car on the street, the owner of the vehicle you were driving most likely would file the car insurance claim with his or her insurance company. As long as you had permission to be driving the car, the majority of time the car insurance follows the car first for coverage. The owner of the automobile is responsible for the liability coverage of any damage to the other vehicle that you backed into.

If there was damage done to the owner‘s vehicle they would have to have collision coverage on their car to get those damages fixed. They would just then need to pay the deductible and those damages could be repaired. It is not typical that your car insurance policy would cover collision damages of someone else‘s vehicle.

Also, the owner‘s insurance rates could be affected since the claim would be filled with their car insurance company. If you happened to get pulled over by a law enforcement officer for a moving violation such as speeding or running a stop sign, you the driver would be responsible for any fees and that would go against your personal driving record.

Comparing Car Insurance Rates and Coverage

It is always vital to know exactly what type of coverage you want when you begin searching for car insurance online. If you want a policy that will cover all drivers, no matter what, then be sure to inquire about this with the car insurance company. Remember that different states and car insurance companies will have different requirements when it comes to insuring cars and multiple or unknown drivers. To be on the safe side, always ask the auto insurance company.

Many auto insurance companies allow multiple drivers for a vehicle, but to get the best rates when applying for auto insurance online, be sure to know the driving history and personal information of any other drivers you want on the policy. As said before, the car will likely be insured, but the driver may not. If you want all drivers to be covered, ask your auto insurance company and get the specific policy you want.

What’s An Auto Insurance Binder

Understanding the terms of your auto insurance coverage is crucial. Otherwise, you might end up driving with less coverage than you’d thought, or you might even end up on the road without an active auto insurance policy. This happens to many policyholders because they don’t familiarize themselves with the details of their insurance coverage. One part of most car insurance policies that’s often neglected by motorists is the auto insurance binder. Many drivers aren’t even aware of what a binder is, much less how it works. It’s certainly a term you want to know when you’re shopping around for an auto insurance quote because it pertains to when your new insurance becomes active, and when your policy becomes officially legal.

The selling insurance company issues an auto insurance binder when a driver first purchases the auto insurance policy. The binder provides temporary proof of insurance. You should be able to find the active dates of the binder listed on the card. (If you buy your insurance online, you might print the binder, in which case it’s listed somewhere on the page that you print off). An auto insurance binder is issued while underwriting is completed for your insurance policy. Basically, the binder provides proof that you legally have auto insurance coverage, but indicates that your policy isn’t completely purchased or active yet. After the underwriting process is complete, an official insurance card will replace the binder. Depending on the state that you live in, the length of an auto insurance binder might vary. It may be helpful to research your own state’s laws to ensure that your insurance is valid before you hit the road.

It’s a bit complicated, as you might have noticed. But all a policyholder needs to know is that their policy is active and legal as long as they keep the auto insurance binder with them, and replace the binder with proof of insurance cards as soon as they can. If you get into an accident in your newly-insured car while you’ve got a binder, you can still make a claim on your new insurance policy, and you still have all of the coverage that you paid for when you purchased your new plan.

Remember, it’s always a good idea to familiarize yourself with your insurance policy. If there are any terms that you don’t understand, contact your insurance agent immediately, and when looking for an auto insurance quote, inspect all parts of prospective policies. If you get into an accident, it will be very helpful to know how your auto insurance coverage works, and you’ll save yourself a lot of hassle when submitting a claim.