All You Need to Know About Automobile Insurance: The Ultimate GuideLiability Insurance
Read on for some of the best car insurance rates in October 2010. It insures you against the financial consequences should you meet with an accident, have your car stolen, and now it somehow needs repairs just by that fact alone or even should any lawsuit arise from injuries suffered as a result of greater speed limits elsewhere on highway, curse the Lords of Transportation Reforms and pray for indulgence in seeking lower health premiums next employment season Presentation covers all aspects
Ran's Theme included People ask Insurance.... What?
Car insurance is a contract between the car owner(s) and insurers to protect their interests and finances against accidents or theft or damages inflicted on expensive vehicles which may be due to an auto collision. Payment of annual insurance premiums by a policyholder gives the insurance plan responsibility for meeting certain car accidents.
The insurance plan is responsible for all medical treatment, hospitalization expenses and lost wages. Depending on the exact amount of cover that you take out, the type of vehicle and various other factors, insurance policies are more or less expensive so therefore it's best to always find out what policy comes closest matched to your needs.
Colllision Insurance...... It funds payment for repairs to your car damage after being involved in any accident regardless of who was at fault. This iscrippling if done to your car during an accident such as colliding with another vehicle, bumping against a fixed object or being hit and run.
As collision insurance only covers accidents, comprehensive insurance insures your vehicle against a number of other events, such as theft or vandalism. Like regular cars, it is only protected for such situations.
Personal injury protection (PIP), or “no-fault” insurance, will pay for your medical bills and lost wages if you are injured in a car crash no matter who caused the accident. This also covers any passengers or pedestrians involved in the accident.
UM/UIM–Uninsured and Underinsured Motorist Coverage
This coverage protects you if you are hit by a motorist who has no insurance or inadequate insurance to cover your damages. It lets your liability remain in what would otherwise be unfair circumstances.
Gap Insurance
If your car is “totaled” in an accident, gap insurance covers the difference between what the vehicle's actual cash value is and what you owe on its loan. This can be especially useful if your car loan (or lease) is high.
Roadside Assistance
Roadside Assistance insurance is available as an option with many insurance companies. It includes such things as towing, tire changes, or a jump start if your battery fails on you.
Factors Considered in Automobile Insurance Premiums
There are various factors that can affect how much your insurance will cost. Here are some important things insurers consider when setting premiums for you:
Driving History
Previous accidents or traffic violations can mean much higher premiums for many people. It is an important point to remember. How you have driven in the past can also influence.
Age and Gender
Youth and gender are statistically connected with insurance costs. Young male drivers tend to have more accidents, so they usually pay higher premiums. As you gain driving experience with age, however, rates on your car insurance payments should drop.
Place of Residence
When you live somewhere else your insurance rates will likewise go up. Those who lived in urban areas tend to have higher premiums, because the traffic flow is fast and perhaps more importantly for insurance values, accidents are frequent. In contrast, in rural regions insurance fees were low.
Type of Vehicle
The type, make and year of your car can also affect premiums. Cars with luxury features that can be particularly costly to fix generally have high premiums. Safer and more fuel-efficient cars, on the other hand, may be a little bit easier (and cheaper) to insure.
Credit Score
A number of insurance companies take your creditScore into account when they decide what your premium is going to be. Those with a higher credit score may get lower premiums, and those with lower scores may face worse financial risk putting up even pricier insurance costs for those individuals.
Level of Coverage
The level of coverage you choose will affect your premiums. Selecting higher limits of coverage and adding options — even just for duties such as roadside assistance or rental car reimbursement — will cost more on your total premium.
Deductible
The deductible is the total amount you have to pay before your insurance will kick in. Going for a higher deductible could mean lower premiums, but it also means that you bear more of the cost if you make a claim.
Claims History
If you have made many claims in the past, your insurance company might consider you a high risk--and hence raise your premiums.
15 Tips to Save Money on Car Insurance—Online Guide for Getting Cheap Auto Rates
Comparison Shopping for Insurance Quotes
It is important to do some comparison shopping and get quotes from a number of different insurance companies. Prices and coverage options can vary widely between insurers; taking the time to shop around may well result in significant savings.
If you Bundle PoliciesInsurers will give you a discount on one policy if you bundle other policies.These savings can be huge. For example, by doing this you can save money on both your auto and home/renters insurances.
Maintain a Clean Driving Record3Keeping your driving record free of accidents and traffic violations can go a long way towards achieving this goal. Many insurers offer big discounts for drivers who have no violations on their records or who have completed defensive driving courses,[Read: Usage-Based Insurance]Insurance companies that offer usage-based policies gather data about your driving habits from a mobile app or a device in the car itself.
If you are careful and don't drive much, your coverage will be cheaper.Increase Your DeductibleIf you can afford to soak up a bit more of the cost, consider upping your deductible. That way, if you have an accident and need to make a claim all on one item, it 'll save you quite a bit off the total claim payment which is going out.Take Advantage of DiscountsFurthermore, insurance companies offer all sorts of discounts.
For example having an anti-theft device mounted on your car makes a big difference when they calculate your rates. Alternatively if you drive less than 15,000 miles per year or are an A-student, advertise these good habits to the company that insures you and see what they might do for you.
Common Auto Insurance Questions and Answers
Q 1: What amount of auto insurance is required by law?As with all insurance, minimum requirements vary.
However, in many states liability coverage for both bodily injury and property damage are mandated. Some states also require personal injury protection ( PIP ) or underinsured motorist coverage.
Q2: Do I need full coverage on a car that's old?
If your car has a low market value because it's old, carrying full coverage is not essential. Look at the cost of comprehensive and collision coverage versus what the car is worth and see if it 's worth your while.
A3: What will happen if I drive without insurance?
In most places, driving without insurance is illegal, and you could be hit with heavy fines or lose your license temporarily—and even face jail time. You must have insurance coverage.
A4: How can I lower my insurance premium?
You clean up your driving record, shop around, increase your deductible and apply for whatever discounts may be available.
Question 5: Are rental vehicles covered by my insurance policy?
Rental cars are covered by most auto policies. Be sure to call your insurance agent, though, to find out what is included and whether a rider would be needed.
Q6: I've got poor credit, will I be able to get any coverage?
Yes, bad-credit drivers can usually buy auto insurance. They may pay higher premiums, though. High-risk drivers and those with poor credit can often find it in specific insurers targeting those groups.
Q7: Absence an accident, I'm not insured at all
If you cause an accident while you're uninsured, you have to pick up the bill yourself. When such a situation arises, your uninsured/underinsured motorist coverage will cover you
Q8: Can I just cancel my auto insurance policy anytime?
Yes, you can cancel an auto insurance policy at any time, but some insurers may charge a fee to do so. Also, make sure you have another policy established before canceling your old one so there's no lapse in coverage.
Q9: Is it true that I am covered to drive somebody else's vehicle under my own auto insurance?
Your insurance covers you while driving someone else's car, in most cases, as long as the owner gives you permission. But always check the policy itself.
Q10: So what’s the difference between comprehensive and collision?
For instance, comprehensive coverage is for non-accident incidents (theft, vandalism, etc.) and collision coverage pays for damage due to a collision with another vehicle or object.
Conclusion
Owning a car includes many things, not the least of which is maintaining an automobile insurance policy. Knowledge on the different types of coverage, what factors influence premiums and how to save money on insurance will lead to good choices for your best policy. As usual, be sure to shop around for quotes, keep a clean driving record and find available discounts to maximize the benefit of your automobile insurance.
With due diligence and once-in-a-while look at your automobile insurance policy to make sure you're not underinsured, you'll be on your way.
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