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Deductible And Excess Clause In Car Insurance

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In any insurance policy, a deductible is any expense that the policy holder must pay out of his own pocket before the insurer steps up to pay the expenses. It is also used to describe any clauses that are used as a policy payment threshold. There are actually two types of such clauses in a car insurance policy, namely compulsory excess clause and voluntary excess clause.

The deductible or excess is an amount that the insured agrees to pay from his pocket with the balance being taken care of by the insurance company. This is in the event that any claim arises and the amount is determined beforehand in discussions between the insurance company and the insured.

To take an example of a claim, if the deductible in a car insurance policy is INR 5000, and a claim arises for INR 15,000, then the insurance company would pay INR 10,000 while deducting INR 5,000 from the insured.

The compulsory excess clause in car insurance is something that cannot be predetermined by the insured. This is deducted for every claim compulsorily by car insurance companies. The amount that is to be deducted is fixed beforehand depending on the type and condition of the car. Any claims that arise are paid after the deduction has been made first. If this type of clause is mandatory in a car insurance company, then the voluntary excess clause is entirely an optional matter as anyway an amount is deducted from the policy holder’s pocket for every claim. So taking a voluntary option is entirely up to the policy holder.

The advantage of opting for a voluntary deductible even after the compulsory clause has been evoked is that the premium paid is reduced on the policy. The premium has a part called ‘own damage’ on which the discount is applied. The more the voluntary deductible clause amount is, the more discount insurance companies give you on the premium. It is important to understand though, that even though the premiums are reduced when you opt for a high voluntary excess deductible, should any claim arise, then your out of pocket expense will also be higher. So it is better to choose an excess deductible clause that you can easily afford should any claim arise. The higher the deductible, the higher your expenses out of pocket will be should any claim arise, and if it is not possible to come up with a large amount at short notice, it could put you in an uncomfortable situation.

A deductible and excess clause has its pros and cons, both long term and short term, which should be taken into account before deciding on it.

 

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6 Things Auto Insurance Hates and Auto Thieves Love

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Most folks claim that their car, van, truck, RV, or motorcycle is one the most costly assets they own. Nonetheless it is relatively common for many people to simplify matters for auto thieves.

Don’t make it easy for criminals to make off with your car. Steer away from common mistakes others make so that you will find your vehicle parked just where you left it.

Six Easy Ways to Make Car Thefts Less Easy

1. Never leave your vehicle while the engine is still on.

Though its common practice to warm up your car in the cold weather, resist the temptation to let it stand for even a minimum amount of time without being inside. Doing so just invites the unscrupulous thief to take it and drive off!

2. Never leave your extra car keys within your vehicle.

Auto insurance companies tell us that anyone who leaves a spare set of car keys within their vehicle offers car trespassers looking for loot an opportunity to move one step onward in their crime without problems. Providing the guy who broke into your car seeking objects of value free access gives him one more thing to steal and one more claim to make with authorities – your car!

3. Never leave valuables in obvious view.

Although we all know that leaving valuables that are inside your car easily visible is a clear no-no, there will always be the ‘quick return’ excuse. Don’t succumb to the ‘only a moment’ urge. Always lock expensive items away in the trunk when you exit your vehicle. If that is not an option, make sure you conceal them as best you can so that a passerby will not be enticed to break in.

4. Never leave your vehicle unlocked or unsecured.

Assume that a car thief is a professional in his line of business and that he is an expert in breaking in – even through the smallest of window cracks. On the other hand, the guy who is not a pro will have no problem at all in getting into your vehicle is you leave it unlocked.

5. Never think your car is undesirable to a thief.

Even your jalopy is attractive to the car thief looking to make a few bucks from the junk yards that needs scrap metal.

6. Never stop your vigilance.

Whether your car is parked in your driveway, on the side of the road or in a mall parking lot, be mindful of your responsibility to prevent your vehicle from being stolen and thereby keeping general liability auto coverage quotes down for everyone. Follow the above rules at all times and in every circumstance.

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The Proper Way to Save Money on Auto Insurance

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Saving money on your auto insurance and getting a good value for your premium dollar is not the same as getting “cheap” insurance. Believe me, there are differences between insurance carriers and there is plenty of “cheap” insurance out there. That does not mean you will have the coverage you expect when the worst happens and you need it most! There are however several ways to reduce your premiums. Let’s explore a few that might be beneficial to you:

Take physical damage coverage off your older vehicle. If you carry “Comprehensive” and “Collision” coverage on a vehicle that is over 10 years old, go to the websites for NADA or Kelly Blue Book and check out the vehicles current market value. You may be surprised to learn that you’re spending hundreds of dollars per year for coverage on a vehicle where the return on a total loss may not be a cost- effective investment. Be sure to add however a coverage called “UMPD” that will give you coverage for the market value of your vehicle if it becomes a total loss when in an accident caused by an uninsured motorist.

Increase your physical damage deductibles. The amount that you are responsible to pay when you have been in an accident that causes damage to your vehicle or when your car is stolen or any other covered cause of loss should probably be increased. On average, if you are a good driver, you will probably have a covered loss once in seven years or less so you may be spending hundreds of dollars per year for coverage used infrequently. Get the best value by increasing your physical damage deductibles to at least $1,000.

Insure multiple policies with one carrier. If you decide it is time to “shop” your auto insurance, you should be shopping both your auto and homeowners insurance. Carriers offer significant discounts on both the auto and home policies if they are with the same company. These discounts can be up to 25%. With the cost of insurance these days, that can be enough to pay for that tenants policy that you should have and maybe don’t or the cost of an extra million dollars of liability that you need to properly protect your assets.

Add “towing” coverage on your auto policy. Many carriers offer “towing” coverage that includes key lock out and delivering gasoline if you run out of gas, etc. for far less that purchasing the coverage separately through a “club.”

Having “proper” insurance is so much more cost- effective than not being insured properly, but if you follow some of these tips, you can make sure you have the coverage that makes “cents” for you over many years.

 

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8 Great Ways to Save on Car Insurance

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Car insurance will vary depending on things such as your driving history, your location, the cost of your vehicle, and the gap between your coverages. The right policy is as important to owning a vehicle as regular maintenance. If you happen to get into an accident without an active policy, you are at risk of paying millions in damages. Even a $5,000 penalty could be detrimental to some individuals and families. This is why choosing the right company is crucial for your legal, financial, and personal well-being. Now that we all know why we need car insurance, we need to know what are some important ways to save.

Eight Smart Ways to Save

1. Compare Policy Rates

Prices differ significantly from company to company. Take the time to explore as many options as you can before deciding on one.

2. Choose the Higher Deductible

If you can afford it, choose the higher deductible and pay less each month for coverage. A deductible is the amount you have to pay before your provider will cover the rest of your bill. A higher deductible can significantly lower your monthly bill.

3. Consider Carpooling

The less you drive, the less insurance companies charge you.

4. Buy Only What You Need

What you need for a new model is different than what you need for an older automobile. If your car is an older design, it might warrant you dropping the collision coverage.

5. Combine Your Homeowners/renters Policy

Combining other policies with your car insurance is an effective way to get the most discounts. Car insurance is considered the riskiest investment, but if you combine it with a safer investment, your monthly bill will go down.

6. Get a Tracking Device

It records your driving history-speed, abrupt stops, travel times, distance-and after the first year, you can get reduced rates if you have been a safe driver. You can save as much as 60 percent!

7. Take Care of Your Credit Score

Those with high credit scores may get lower rates as they are considered as less risky choices for providers. Pay all of your bills on time and check your score to stay updated.

8. Take a Defensive Driving Course

By taking this one-time course, your provider might be able to give you a discount.

Of course, low cost should not be your only deciding factor. Simply choosing the cheapest policy on the market is not a smart decision. When comparing different providers, make sure to read about their history, how well they understand the industry, and how much they focus on building relationships with their clients. All of these are important factors in finding the right company. Not only does the policy have to sound good on paper, but you should also be able to personally trust and believe that the car insurance company will be there for you when something unfortunate happens.

 

Classic Car Insurance and More Tidbits

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Funny, isn’t it – how an old car is only attractive if it’s considered antique or classic? For the classic auto enthusiast, the interest is more than a simple hobby. For most, it’s a passion that perhaps even supersedes the passion of an ATV, motorcycle, truck or even boat owner. It’s a pastime that involves homeowners, renters, landlords – and the full spectrum of society.

To this type of auto fan, it becomes an obsession that should flood his or her free moments – especially weekend time. So, for all of you that insurance companies write policies for – this is for you and your wonderful craze!

Exceptional Fun Facts for the Antique and Classic Car Lover

• Do you know the difference between the automobile term, horseless carriage, and the term vintage car? A horseless carriage is in reference to the antique cars that went public from 1896 to 1915 and a vintage car refers to cars made between the years 1916 and 1925.

• See if you can guess this one! How many Barracuda convertible cars were produced in all? The grand total will set you reeling: there were seven in all!

• If you managed to come up with the answer to the above, see how well you do on this one. How many 1940 Dual-Cowl Phaetons did the manufacturing auto company produce in all? The modest answer is six!

• The great and oftentimes revered Mustang car was initially presented by its manufacturer in the year 1964.

• Though car fans usually are associated with the color red, the very first Camaro car was actually bathed in the color black. (Black is beautiful, right?)

• Ever wonder where the English dictionary came up with that great word we reference to the car? Automobile is actually two words that are blended together. Auto means oneself and mobile means the ability to move. Hence, an automobile is that wonderful invention that allows an individual to travel via driving maneuvers!

• The renowned auto company began mass production of its reasonably priced Model T automobile in the year 1913.

• If you view movies about Fidel Castro’s dictatorship, you will be led to believe that the natives only drive classic cars. The reason for the large amount of older cars on the streets of this Latin American country is due to the infamous US Trade Embargo of 1960 that resulted in no new trade of automobiles between the nations.

• Want to know about cheap auto insurance for your classic vehicle? Talk to an experienced independent insurance agent. He will demonstrate how to choose the appropriate policy according to your driving needs and mile accumulation as well as other factors.

Most Affordable Vehicle to Insure

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Reports by renowned publications like Forbes ranks 2015 Wrangler Sports Jeep as the car with the lowest average yearly insurance rate in The United States. According to research by some online research team, the same car also ranked as the car with the cheapest insurance rate. The study conducted by Forbes was carried out on a middle-aged driver who goes on an average drive of 12 miles daily.

The annual cost was averagely about $1,135; which is about $100 monthly. This is, of course, good news for owners of this model that is fun to drive. For prospective buyers who are still contemplating whether or not to acquire the 2015 Wrangler Sports Jeep, these incredible rates are good enough to convince them to go for the brand. All over the US, Maine had the lowest prices for the brand model with an annual bill of about $700, which translates to less than $60 monthly as the premium for a new car. A lot of consumers will appreciate this rate as a result of the recent rise in insurance rates.

Jeeps like Patriots and some other brands had good scores in the research for cheap vehicle insurance rates, ranking among the ten most affordable cars to insure. Many people would wonder why it is relatively inexpensive to insure a Jeep. You may be amazed at the reason: Experts attributes the cheap cost to the engine designs; they are relatively inexpensive to repair and are easily customized, unlike other SUV. These autos are usually not severely damaged in accidents, and its drivers have recorded low mortality rates. Apply for an online quote today with any insurance company for free and find the dramatic reduction in premiums.

The safety of off-road vehicles and the likelihood of accidents are the concerns of many people. In my opinion, vehicles are like guns, and they function at the dictate of the user. A jeep, if recklessly driven can be dangerous, but when controlled by a responsible driver, it is entirely safe. A driver who drives at top speed, making sharp turns at critical angles can cause a fatal crash that may even lead to the death of passengers.

One nice thing about a jeep is its safety features like dual airbags and solid frame. Also, it can be driven on any terrain, from sand to snow, and this makes it lot safer than small cars. Just like every other car, Jeeps also have limits, and so one must take caution while driving, however, you are free to have fun with your ride. Having these low insurance rates in mind, you can go out there on some more explorations and be adventurous! For years, the producers of these famous cars, The American Motors, gave a picture of these cars as an icon of liberty, freedom, and adventure. If you own a Jeep, then try out some routine four wheeling and have that incredible aura that comes with a Jeep.

Getting Cheaper Wrangler Jeep Rates

Do you know you can get cheaper insurance rates for your Jeep? Check out these tips and save more.

· Combine all your cars

You will get as high as 10% discount for insuring all your cars with an insurance company. This saves you extra bills, making insurance a little easier. You may also want to combine your vehicle and home and save some real cash. Bundled rates are mostly cheaper than purchasing separate coverage from different insurance firms.

· Boost your Credit Rating

Improving your credit score helps you get cheaper insurance rates. Insurance providers are now emphasizing on individual credit rating in calculating insurance premiums.

· Direct Shopping with Insurance Companies Online

It’s no longer news that the web offers incredible deals; same applies to vehicle insurance. Today, virtually every individual has access to the internet, so no excuse is good enough for not shopping online. Purchasing coverage directly from providers can save you as high as between 5% to 20% less the cost from local agents or brokers.

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Theory of Selecting Car Insurance

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Selecting Car InsuranceSelecting the right car insurance requires the similar effort as selecting the car itself. While selecting a car the market research starts months prior and one test drives almost all the cars falling in one’s budget range. But the enthusiasm drops significantly when buying insurance for that priced possession. Many people in India still consider car insurance as a statutory obligation and settle for any run in the mill insurance policy or go for popular insurance company names rather than understanding what all things their policy covers.

The process to compare cars plans is very significant from saving upon premium as well as getting better plan features perspectives. In case of car insurance it is said that one must compare plans of at least three insurance companies. The more the merrier philosophy holds true in this case. Inviting quotes from a big number of companies always works in favor of the buyer as it helps plucking out the cheapest plan in the market.

A comprehensive car insurance policy covers the owner’s damages as well as the damages of the third parties who suffer loss due to collision. If your car is new then never commit the mistake of getting only third party insurance done, which is mandatory to have by the Indian law, as repair costs in case of accidents can be steep. Also, there are many add-ons over the regular OD (own damage) section of comprehensive car insurance policy that one should consider while selecting a plan. Important add-ons are:

Depreciation Reimbursement: The depreciation on parts that have to be replaced because of damage is waived off under this add-on.

Return to Invoice: The insurance company pays the difference between the claim admissible and the sale invoice price of the vehicle or new replacement value of the same make and model, whichever is less.

No Claim Bonus Protection: NCB of over 25% is earned on a new vehicle or by no claims in previous two years. This NCB is protected under this add on provided there are up to 1 claim in a year and the policy is renewed on or before 90 days of the expiry of the policy.

Repair of Glass, Rubber, Fiber & Plastic Parts: NCB is not affected when claim is filed to repair the glass, rubber, fiber & plastic parts instead of replacing them.

Emergency Transport and Hotel Expenses: In events when the vehicle becomes UN-usable the cost of hotel accommodation at nearest place and return to home expenses are allowed up to 50% of the sum insured or Rs. 50,000, whichever is less under this add-on.

Loss of Personal Belongings: Loss of personal belongings lying in the insured vehicle following an accident is covered.

Key Replacement: Cost of replacement of lost vehicle keys is allowed.

Daily Allowance: Cases where the damage takes place due to insured peril and the vehicle takes more than 3 days to get repaired, the insurer would pay allowance for hired transport up to 10 days for normal damages and up to 15 days for total loss. Per day allowance ranges from Rs.600 to Rs.2000 depending on the category of the vehicle.

Engine Protector: Covers damages to the internal parts of the engine due to water ingress ion/leakage of lubricating oil and/or damage to gear box as a result of accident.

Spot Assistance or Road Side Assistance: This cover provides a range of emergency services that the vehicle owner could face in daily use of vehicle. Some of these emergencies do not arise from an accident.

Based upon the category of vehicle and its usage one should decide what all add-ons one must ensure having in one’s car policy.

Study shows that people who compare car plans online save up to 30% on premium. Online car insurance plans are generally cheaper than offline counterparts because online plans eliminate the scope of agent commission. This brings down the premium considerably.

 

Traffic Tickets Affect Insurance Rates

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To keep the premium rates affordable, you must focus on safe driving

Insurance companies want to provide coverage because they basically think you are worth protecting. For them, there are generally two types of customers: safe-driver (which is the preferred class) and high-risk driver. Each type receives different treatments as the former has the bigger advantages such as discounts and generally cheaper rates. On the other hand, providing coverage for high-risk drivers is quite risky; insurers think that those drivers have tendencies to get involved in accidents. Based on this assumption, high-risk drivers will have to pay more without discounts and other good benefits. You are categorized as either safe or high risk type based on DMV’s data concerning driving records. Traffic offenses such as speeding, reckless driving, or driving while intoxicated are some of most important violations which will adversely affect your premium. Not wearing seat-belt is probably a minor one, which can be dismissed from the record after paying fines, will probably never affect anything. You can actually figure out whether you are in the “safe-driver” or “high-risk” category by using car insurance estimator; this tool provides a simple way to use some of your personal data to determine the cost.

Why Traffic Tickets Increase Your Premium Rate

Traffic laws are written to keep everybody who uses the roads safe. Hundreds of different routes have distinguishing features, for example speed limit, number of lanes, signals, road signs, etc. When obeyed properly by everyone, there is almost no possibility of accidents. Failure to comply with all the rules put everybody to risk of fatal injuries due to road accidents. You are not allowed to keep on going at red lights, speeding at school area, or driving to the wrong direction on certain lanes. Even if those offenses do not end up in accidents, you will be pulled over if you commit any of them. You will receive a fine for those violations. The fine are documented by DMV, attached to your records, and eventually will be checked by your insurers. If any important violation appears on the records, your company can simply transfer you from safe-driver category to the high-risk one, meaning you need to pay higher for the coverage. In worst case, your policies will be cancelled. When your policies are cancelled, it can be very difficult to get full coverage insurance, unless you purchase the policies from new insurers who accept high-risk drivers as customers.

A different traffic ticket affects the rate differently as well; some will only increase the premium slightly, while others can break the bank. Parking fines will not affect premium no matter how many you have collected. The biggest problem they can cause is vehicle registration renewal difficulties, but they will never increase your rate. A DUI (Driving under Influence), however, can be quite a problem. There are some types of citations including minor, major, and criminal. More severe offense means greater consequences. Some of the most common citations that will simply increase are excessive speeding, driving while intoxicated, careless or reckless driving, and driving without insurance. Each of them is considered major violation simply because it increases the likelihood of fatal accidents which end up in heavy injuries.

Note that accidents are not the only variables on driving records. There are many other things that they use to determine rates. It means even if you are never involved and at-fault in accidents, any fine will be enough for insurers to charge you more for the coverage. If you think the increase is too much, you can always find new less expensive insurer as long as you meet the minimum coverage requirement in your state. Some websites provide car insurance calculator services for not cost at all, meaning you can estimate the cost before even asking for the quotes. If you properly enter personal data, kind of car, and driving records, the results of the calculation will be accurate.

How Much Will My Rates Increase?

It is difficult to determine the actual amount of the increase. There are some important factors playing their roles such as the specific laws in your state and contractual agreement. A single auto fine for a minor infraction may not increase the rate at all. Your insurer will also consider your previous driving record. If this is your first offense and you have been good customer so far, you will probably be able to discuss the issue and ask them to ignore it. However, a DUI ticket is very serious and there is very little chance that you can get away with it without paying more for the coverage. Your driver license can be suspended for this offense as well. Also, repeated offense is often a reason that insurer cancels your policy. Some companies will not give coverage to high-risk driver, meaning you need to find new insurer before you can reinstate driver license. There are some big firms providing coverage for high-risk drivers; most even give free auto insurance quotes to potential customers. You can compare the quotes to find one that is suitable for your circumstances before deciding to make a purchase.

Please put in mind that any increase in the premium will only occur during renewal. You will probably not realize the increase months after the offense is committed. Bottom line, the best way to avoid any increase is to drive safely obeying any law and road sign you see while you are driving. If you stay on the safe side, your insurer has almost no reason to ask for more money to provide coverage for you. If you drive safe, any increase should be normal or caused by certain circumstances such as changing address to a more crowded area or bad credit score.

A different firm has different rules. You need to consult insurance agents or call your insurers for the details. Some of them simply cannot afford to provide coverage for high-risk driver, and they will cancel your policy due to any major infraction you commit. Luckily, you can find new insurer easily via Internet; you can access almost any company’s official website to get quick car insurance quote. It eliminates the hassles of making appointments with agents or making phone calls to all companies in your state. This is probably the quickest way to get back insured after policy cancellation.

About Parking Tickets

As previously mentioned, parking fines are highly unlikely to increase estimates. Other violations including Driving while intoxicated and speeding have clear correlations with the likelihood of accidents, but that almost has nothing to do with it. Parking tickets are non-moving violation, meaning the offense is committed while the vehicle is not moving. You will receive this fine if you park in the wrong place, such as fire zone or handicap park area. Furthermore, it does not demonstrate any lack of skill as driver. A parked vehicle is not liable for accident; even when the parked auto is involved in an accident, the fault rest on the moving vehicle that crashes into it. A driver must avoid fixed object of any kind including parked auto. When the vehicle is parked (even in the wrong place), it does not pose risk to insurer and will not affect your rates.

The problem is that being not-at-fault does not always mean that your company will pay for the repair. It certainly depends on the coverage you have. There are various types of coverage including comprehensive, liability, collision, medical payment, etc. A minimum requirement may not cover hit-and-run cases, for example when your parked auto is hit by another driver in a moving vehicle.

Parking tickets cause driver license suspension

While parking fines will not directly affect rates, they can unfortunately cause driver license suspension. It will only occur if you get too many tickets and you fail to pay the fines in time. A fine in a parking lot is considerably cheap, but many of them can be very expensive. Suspended driver license means you are not allowed to drive anymore, or you cannot legally drive your car anywhere. The companies will only want to provide coverage for legal drivers, and suspended license can cause policy cancellation. In such case, you need to re-apply for insurance as soon as your license in reissued. A suspended license due to parking fines is not major violation, so you can apply to new company easily. Some major companies give free quotes to potential customers. Just because you ask for the quotes, it does not mean you must purchase it. You can use it merely for comparison before you finally decide to make a purchase.

Fines from another state

In the past, you could get away with speeding fine issued in another state. You did not even have to pay it because the information concerning such issue would never reach your actual local DMV. Nowadays, information is sent electronically in an instant, and DMVs can access central database to all drivers. The database, popularly known as DLC (Driver License Compact), makes information available and easily accessible by almost all DMVs in the country. Therefore, fines from another state will affect insurance as well. All states are member of DLC except Michigan, Wisconsin, Tennessee, and Georgia. Unless traffic offenses are committed in those states, it is almost impossible to avoid an increase in your premium rates. There is also another database known as National Driver Register which keeps all suspension records and reports them. In case your driver license is suspended, you cannot simply apply for a new one in another state.

There is always a way to reduce the impact of premiums related to fines. Depending on the types of offense, you are obliged to conduct punitive actions. This may include paying the fines or filing SR-22 document as a proof of insurance. All states have certain programs to help you dismiss the tickets from driving records, but they are most likely for minor infractions. You may be able to erase the record by taking driving courses or do some community services. Classes through the internet are also available to delete them from another state without having to go there very often.

Underwriting Auto Policies

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It is the most affordable type of auto insurance, yet it complies with state’s regulations. All optional coverage for example Rental Reimbursement and Roadside Assistance are not in the policy to reduce the premium without losing the necessary protections.

Standard and Non-Standard Insurance Market

There are two different types of insurance markets including standard and non-standard markets. The former is the typical auto insurance for drivers with little to zero traffic tickets in the driving records. Insurance companies regard consumers of this market as low-risk drivers. Non-standard is for drivers who have major traffic violations histories such as speeding or DUI. For these drivers, acquiring auto insurance from the standard market can be difficult due to strict approval requirements by providers.

Standard market insurers are reluctant to provide policies because of the following reasons:

· High-risk drivers have tendencies to commit the same traffic violations

· There is a chance that the insurer must pay a considerable amount of compensation for repeated violation

· Some drivers get their high-risk status because of policy cancellation from the previous company as a result of frequent late payment

Non-standard market insurance consumers or high-risk drivers must pay a higher price for the policies, but the system allows them to get an easy approval. Regardless of past driving records or involvement in the accident, all applicants should acquire auto insurance policies to help them get back on the road without problems.

Minimum Auto Coverage

Every driver only needs to acquire the state’s minimum coverage requirements to drive without breaking the law. Depending on the states, the coverage limit can be different, but most states require at least the following coverage in the policy:

· Bodily Injury Liability: the coverage that provides payout or compensation following an accident in which the policyholder is at fault. The payout is for someone else who sustains injuries.

· Property Damage Liability: similar to Bodily Injury, the payout is for someone else whose properties or cars suffer from damages in an accident. The at-fault party must help cover repair or replacements.

In some states, Personal Injury Protection (PIP) is also a mandatory coverage. This applies in states that use no-fault regulation.

Collision coverage is a financial protection for a policyholder’s vehicle in case it suffers damages from the accident. The payout from this coverage is available to help repair or replace vehicle’s parts.

Comprehensive also has the same purpose, but it only applies when damages are results of non-accident occurrences for examples falling objects, flood, theft, or hitting an animal. Both optional coverage types are sometimes mandatory by a leasing or financing company.

Payment Options

All high-risk drivers can revoke their high-risk status after taking some obligatory courses for example Defensive Driving or Driver’s Education Course. Please remember that driving without insurance is an illegal act. The price for insurance from non-standard market is higher, but the company allows for flexible payment options as follows:

· Economy Plan: payment system which allows policyholder to pay the down payment to acquire a policy. Installment every 30-day applies for the remaining amount.

· Quarterly Plan: another installment plan in which policyholders can spread the payment and pay once every four months for a year.

· Annual Plan: this is the simplest payment method with one-time payment up front for a year policy.

The rates remain the same throughout one-year policy period regardless of the payment plan applied. The insurance firm guarantees the rate for a full calendar year.

High-risk Drivers

Many people associate the term “high-risk” with repeated violations or major infraction, but most insurers have different views towards the case. Besides bad driving records, some other factors can determine whether or not someone is high-risk including:

· Age: new or teen drivers fall under high-risk category because they have very little experience in driving. Elderly people (70 years or older) are also high-risk due to hearing/vision issues. The company helps these people to get auto insurance in an easy way.

· Address: living in an area where the crime rate is high makes a driver high-risk as well. Cars in such neighborhood often fall victim to vandalism or theft.

· Credit history: The company does not use drivers’ credit history to determine approval.

Apart from those three factors, insurers use many variables to decide whether an applicant deserves approval or cancellation. the company only needs basic personal data to start underwriting auto insurance policies for customers.

Discounts

To help policyholders save money on insurance, the firm offers multiple discounts. There are three categories for discounts:

· Driver Discounts: eligibility requirements include taking Defensive Driving Course or Driver’s Education. Students with good grades are eligible for the discount as well.

· Policy Discounts: more affordable premiums for policyholders who registers multiple vehicles under one policy. Those who pay in full get 31% off premium.

· Vehicle Discounts: installing safety devices such as airbag, passive restraint, cell-phone blocking, and anti-theft system grants more discounts, too.

Best Vehicle Insurance Coverage

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It is a legal obligation of every vehicle owner to have at least state liability insurance. This is applicable in all states except New Hampshire because of its delay in passing the insurance requirement laws for drivers in the state. However, there are some confusing laws like the R-S-A 264:3 statutes that suspend your driving license and registration if your car is uninsured and you are involved in an at-fault accident.

On the other hand, as a resident of the other 49 states which accommodate more than 99% of the population of the United States, you must get an insurance policy or face legal implications that can financially cripple you. It will, therefore, be wiser to obtain the best affordable vehicle insurance coverage for complete coverage, to satisfy your state’s insurance specifications, as well as a good match for your budget. Here is a summary of the basic types of vehicle insurance

Vehicle Liability Insurance

This basic type of car insurance covers you or another insured driver on your policy, in case an at-fault vehicle accident occurs, this will compensate for the cost or the bodily injuries and the repairs of the car of the third party. Individuals who usually obtain this form of coverage are on a tight budget and minimal assets.

In the event a fatal accident occurs, leading to severe damage, the chances are that the insurance claim will far exceed your policy. Hence the need for an extensive coverage as your assets increases.

Collision Insurance

This form of coverage pays for the damages sustained by your car as a result of a vehicle-related accident, regardless of who is at-fault. So, this policy covers you when you collide with another vehicle or your car gets damaged by some other elements different from colliding with another vehicle. Several scenarios may cause damage to your vehicle that is not resulting from an accident with another automobile and of which may require that you file a claim.

Such scenarios involve colliding with a pole, losing control of the wheels and running into a guard rail. Also, remember that a collision insurance covers only your damaged car and not liable for the third party’s damaged car or property. Liability insurance for damaged property would be responsible for the damaged properties of a third party.

Comprehensive Auto Insurance

This form of insurance offers you a critical cover that keeps your mind at rest. Comprehensive insurance will also protect you against damages not caused to your car by a vehicular crash, but by other causes like fire, water, or in the event your vehicle gets stolen.

A comprehensive cover is best if you reside in an area with high crime rate, where there is a high possibility of your car getting stolen.

Uninsured Motorist

In recent times, auto insurance rates have skyrocketed which makes a lot of people to take the risk of moving around without any vehicle coverage. Now, you could easily guess what would be the outcome in the event an uninsured driver damaged your car; could you afford the cost of replacement? Assuming you recently completed the payment for the vehicle, after six years of committed payment.

It is smarter to increase your premiums slightly and obtain an uninsured motorist protection. This insurance covers you, your passengers, and your car, in case you get hit by a motorist who is under-insured or uninsured. You may either get a UMPD or uninsured-underinsured motorist protection damage or collision deductible waiver (CDW). People with a liability are often the buyers of UMPD; they often ignore the comprehensive or collision policy.

Get Free Quotes for the Best Rates Only

The web is where you can find the most affordable vehicle insurance coverage. Most insurance firms have become aware that customers first search the web and compare different quote before deciding what coverage they will purchase. These carriers are competing to have you obtain their policies; hence, they offer amazing discounts online.