Tips on Buying Car Insurance

Auto insurers underwrite policies to evaluate the risk given to each insurance applicant. During this process, a person is grouped into a category, such as a high-risk driver, low risk, teenage or elderly. If this risk associated with the applicant is considered too high, the application could be denied coverage altogether. After the results are calculated, the insurance carrier then gives a price, which is based on the perceived risk that driver poses.

1. This is also known as rating the driver

Insurers use this rating as a way to measure what it costs to insure a particular person if a claim is made and how likely claims would occur again in the future. This is often referred to as financial responsibility that an insurer takes on. The tip is to maintain a safe driving record and avoid traffic accidents and you will go a long ways towards getting cheaper car insurance.

2. Not all Insurance Companies Rate Drivers the Same

Many providers use the same general metrics but their algorithms that ultimately determine rates are quite distinct. One of the biggest factors that all insurers use in calculating premiums is the frequency of accidents. When a person files a claim, the insurance kicks in and accidents can cost many thousands of dollars, especially if there is a death involved. The more claims a person files, the riskier he or she is in the eyes of the carrier and more likely to file a future claim. Thus, higher rates are imposed on these at-risk motorist. To keep rates low, avoid incidents and filing claims and you will save a lot of money on auto insurance. If you have had accidents in the past don’t worry.

3. Main Contributing Factors that Affect Auto Insurance Rates

*Driving Record: Auto Insurers will take a close look at how many citations and accidents you have been involved in.

Keep up a good driving record and watch your rates go down.

*The Location you live: If you live in the city, you can expect to pay more than if you live in a rural location with much less traffic.

* The Car you Drive: This is a very large factor that makes up rates. New and expensive luxury or sports cars have some of the highest insurance rates. On the other hand, used cars that are safe and cheap to repair have some of the lowest coverage costs. Get a boring used car and save on coverage.

* Marriage Status: Married people pay less for car ins because they are considered more responsible.

* Your Age: Drivers that are under 25 can expect to pay about double for auto ins. The sweet sport for the lowest rates is between 32 and 62 years of age.

4. Apply for all the Discounts you can

A great and smart way to save on vehicle insurance is to apply for several discounts. If you have more than one automobile, consider getting a bundled or multi-vehicle discount. You can also take a safe driver course and save about 5%. Other popular discounts are good student, military, and even teacher.

5. Shop Direct on the Web for the Cheapest Rates

The internet has literally taken over the world. It has also saved millions of people money on car insurance. Buying car insurance online is smart because you can find direct rate pricing that most brokers can’t match.

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Auto Insurance, Filing a Claim

When you get into a vehicular collision or your car is damaged in some other way while operating it, you will need to contact your insurer and file an auto insurance claim. Filing a claim will allow you to get your automobile repaired or replaced. Depending on your insurance company, you can even get a loaner rental vehicle to use at no charge.

Determine if you need to File a Car Insurance Claim

Just because you scratched your mirror going through the McDonald’s drive through window does not mean you need to file an insurance claim. You need to think about the repercussions of filing a claim, and one of those is your rates could possibly go up if you file frequent claims. Many car insurance companies might not raise your rates after the first claim, but if you get into multiple incidents like hitting a pole or scratching your door in a parking lot, your rates are going to shoot way up.

One of the deterrents carriers use to prevent customers from filing frequent claims is the deductible. This is simply the amount you agree to pay before the insurance company kicks in and pays the remaining costs of the incident up and to the policy limits. Deductible amounts are chosen by the customer and usually, range from $250 all the way to $1,000. The higher the deductible is, the lower the premiums will be in general. One of the reasons for this discounted pricing is insurers know that a customer with a high deductible is not going to file frivolous claims and also drive more carefully.

Many small incidents that damage your vehicle can be repaired for a few hundred dollars, so it is often not worth filing a claim. In some situations, you may even bump another vehicle, and there is no visible damage to your car or the other parties vehicle. You may mutually decide that no accident report is needed and then not file for a claim. In any event, in this scenario, it is still good to get the other party involved in the incident name, phone number and insurance info to protect yourself. Another helpful tip is to take several photos shortly after the incident happened and write down in detail how it occurred and who was responsible.

What to do After a Serious Car Accident

Unfortunately, car accidents happen no matter how carefully we drive. If you do get into a crash, immediately pull over to safety if you can, to avoid being hit from behind. Next, call the proper authorities so an investigation can begin and report written. The police report will be very important as it will determine who was at fault in the incident. If there are injuries, no matter how minor, request an ambulance. Always be on the safe side and go to the hospital for a thorough check-up if you have injuries. You need to then gather some key info with the other party involved in the accident. This includes:

* The person’s full name

* Phone and home address

* License Number

* Insurance Carrier and Policy Number

Find any Witnesses

If there are witnesses that stopped after the accident, get their contact info and statement about what they witnessed. This will help assist the police in preparing the accident report. If there is no damage and the police refuse to prepare a report, you may need corroborating statements from witnesses if you plan on filing a claim.

Contact the Auto Insurer

You should contact your insurer right away after an incident. These days, most people carry cell phones with them, so contact your insurance company and start the claim process at the scene of the crash. An insurance claim rep will ask you several important questions about what occurred. Try and remember exactly what happened and always tell the truth when a claim is being reported. You will then be given a claim number. Write this number down as you will be using it for all further contact about the claim going forward. After your claim has been filed, the insurer will send out an adjuster to examine your car and take photos of the damage and the scene of the accident.

Get your Automobile Fixed at an authorized Repair Shop

Many car insurance companies work with preferred auto insurance repair facilities and will recommend these to you. It is best to take your car to a certified auto body shop recommended by your insurer, but it is usually not mandatory. Drive your car over to the shop or get it towed over as soon as possible so you can get back on the road sooner.

Once the adjuster has collected all the necessary information about the incident and reviewed the police report, the claim will then be settled. After this, the adjuster can pay you for damages to your car, medical expenses and any other incidental costs involved. If the accident was not ruled you fault, your premiums should not go up.

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Terms and Conditions of Auto Insurance

Based on the high rate of accidents which happen each year, it is imperative that anyone driving a car whether it is your car or a friend’s car must have an auto insurance policy even if it is the least of all insurance policies available.

An insurance covers the policyholder and in most cases it covers other people who use the car or the driver. However if the car gets into an accident which is not in the interest of the policyholder, or in violation with the agreement between the policyholder and the insurance company, the insurance policy will not cover the damages from such accident.

In instances where the insured vehicle gets sold to another person, the new owner is covered by the third party liability Insurance and also by the comprehensive car insurance policy (if there is any) within a period of 3 weeks after the change of ownership. When there is a new active insurance policy, all deductibles under the insurance will be paid by the new car owner.

Auto insurance does not cover damage to vehicles in company possession for purpose of sale

Depending on the car insurance policy agreement between you and your insurance company, there might not be a need for you to notify them when the terms in the policy agreement changed. The consequence of refusal to notify the insurance might be forfeiture indemnity and compensation if an accident occurs or reduction of the indemnity and compensation or lapses in the payment if indemnity and compensation.

Therefore to avoid the consequences stated above, whenever there is a change in the policy information notify your insurance company immediately.

You can purchase the same auto insurance from two different insurance companies without terminating the initial insurance with the first company but when an accident occurs, the agreement in your car insurance policy will applied, and this may mean that both companies pay half is the cost for the accident each.

Another important thing to note regarding auto insurance is the deductibles which are based on the agreement in the auto insurance policy. Deductibles are deducted only once in cases of an insurance event involving both third party liability and damages under the comprehensive auto insurance.

No deductible will apply in situations such as:

1. Damages from a known liable tortfeasor

2. Damages from fire, explosion, lightening or theft

3. Damages from items falling on the car.

Furthermore, there will be additional deductible if there is driving damage to the car by another person other than the policyholder, or any registered user of the three car under the auto insurance policy.

There are certain accidents which your auto insurance policy may not cover. Under the liability insurance, your auto inside policy does not cover;

1. Injury to the driver

2. Damage from the carriage of goods by road under the acts of contract

3. Damage to attached vehicle

4. Damage which occurred at the time the vehicle was rented out unless it can be proved that the damage is as a result of occurrence which is in accordance with the auto insurance policy

5. Damage to items belonging to the driver, policyholder, anyone stated in the auto insurance policy it a regular user.

The following accidents are not covered by the comprehensive auto insurance:

1. Damage resulting from weather conditions

2. Damage car parts during repairs unless it can be proved the damage had occurred during the driving or by fire

3. Damage in the electrician and mechanical parts the vehicle, unless it can be proved the damage occurred in accordance with the auto insurance policy

4. Damage resulting from reckless driving i.e. Overheating or no change of oil

5. Damage which occurred while the car was rented out

6. Damage which occurred from intoxication of the driver

7. Damage caused intentionally by grid negligence

8. Loss of the car due to seizure of the car by law enforcement authority

9. Damage under warranty and guarantee

10. Damage from usage of the car such as wear and tear, scratches on the car body and so on.

Duration of the auto insurance policy is based on the agreement between you and the insurance company. Most auto insurance agreement are annual and are renewed yearly unless it’s canceled in writing by the policyholder or the insurance company with a month’s notice.

Article Source: http://EzineArticles.com/9555724

Cheap Comprehensive Car Insurance

Once of the important choices, you need to make when researching the right policy, is whether or not to add comprehensive insurance. This extended coverage is also referred to as “full cover insurance” and provides a greater level of vehicle protection. Let’s take a close up look at the definition first. Comprehensive insurance is coverage for damage that’s been inflicted to your vehicle that’s not connected to an automobile collision.

The things covered can be quite broad but also very rare in some instances. Here is a short list of the most common comprehensive claim occurrences.

* Vehicle Theft

One of the main reasons people buy this type of insurance is protecting the value of their car, in the event it is stolen. Automobile thefts are escalating and not just for expensive luxury cars. Take a look at the top 10 most stolen vehicle list, and you will see Honda Accords, Civics, and even the Toyota Camry. If you park your car on the street in an urban area, you should strongly consider adding full cover auto insurance on your policy.

* Glass Breakage

Have you ever cruised behind a dump or garbage truck only to have something come flying at your windshield at 60+ MPH? Probably so and for many people, it happens every year or two. This is yet another reason why comprehensive ins might make sense to you. Under this plan, if your windshield is busted, you can get it replaced. You will have to pay a deductible, though.

* Animal Damage

Believe it or not, thousands of automobiles get hit by animals each year, hard enough to cause vehicular damage. Even large dogs can strike a car and cause dents, not to mention a 600-pound deer. If you live in an area that has lots of wild animals, consider getting comprehensive protection.

* Weather Events

There are numerous weather related things that could inflict damage to your car. A flood might completely ruin your car’s electronic system, or a tornado might pick it up in the air and completely total it. Even a mild windstorm can cause heavy branches to fall and hit your vehicle, causing severe damage.

* Vandalism

Some people do nasty things, and this includes vandalizing other people’s private property. This can be tire damage, “keying” or even smashing your vehicle due to rage. This is why it’s always important to not only get enhanced insurance if you can afford it but always garage your car in a secured area.

Mandatory Comprehensive Auto Insurance

There are some situations where you may be required to get comprehensive ins. The main one is if you’re leasing or financing a car. Lenders need to protect the value of the loan amount they’ve invested, and they do this by making this enhanced coverage mandatory. Also, even if you pay for your car in full, if it is worth more than $25,000 you should probably get full cover ins.

Another fact worth noting is many insurers will not let you buy comprehensive insurance unless you first add collision onto your policy. These 2 types of coverage go together and provide excellent protection for almost anything that can happen on and off the road.

How to get Cheap Comprehensive Car Insurance

Although this type of insurance is more expensive than “bare-bone” liability plans, there are a few helpful tips that can bring your

costs down quite a bit. The first thing you should do is get a higher deductible. Many people think it should be low, like $250 or $500. Raise it to $1,000, and you can save about 10% or even more. Another tip is to bundle all your cars together and save another 5% to 10%.

Article Source: http://EzineArticles.com/9559511