Posts Tagged ‘Auto Insurance’
Car Insurance Premiums: What’s Your Address Got To Do With It?
April 28th, 2010
Plenty. Insurance companies base their rates on the probability of something happening. When the quote is for car insurance, the company is specifically concerned about the likelihood of theft, vandalism and accidents. They’re also going to take into consideration the distance you commute to work, whether you live in a highly populated city or a rural environment and whether your area has a reputation for being suit-happy. They may even take a look at the weather conditions.
From an auto insurance provider’s point of view, if your area racks up more car thefts than the acceptable national average, you’re going to rack up higher premiums. Bottom-line, if your car insurance company thinks where you live increases the odds your car will be stolen or vandalized, they’re going to cover their potential losses by charging you a higher car insurance premium.
Big, densely populated cities tend to have more accidents, too. Think about it: more people spending more time on the road in rush-hour and other high stress conditions. To an auto insurance company, that’s a recipe for more accidents and a reason to charge higher car insurance premiums.
But before you move to the ‘burbs, you should also know that auto insurance companies may add on premium points for the length of time it could take a cop or emergency medical service providers to reach the accident scene. Are the roads notorious for potholes? That can cost you, too.
Do you live in Suit City, U.S.A.? Car insurance companies are going to pad your premium to protect themselves from known ambulance chasers.
Does it snow or rain a lot where you live? Does the fog roll in and hang on? Car insurance companies equate nasty weather with impaired driving conditions, which leads to a greater opportunity for an accident, which bumps your premiums up.
Not fair, you say? There are a few things you can do that may lessen the impact of a high-risk location. Install a top-notch auto theft device, preferably one that directly alerts law enforcement and park your car in a security-patrolled garage. Move to a suburb with great law enforcement and well-maintained roads. Or shop around for a lower auto insurance rate.
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Car Insurance Premiums: What’s Your Address Got To Do With It?
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How Much Auto Insurance Coverage Do I Need?
April 28th, 2010
Almost every state requires you to buy a minimum amount of liability coverage. Chances are that you will need more liability insurance than the state requires because accidents cost more than the minimum limits. If you’re found legally responsible for bills that are more than your insurance covers, you will have to pay the difference out of your own pocket. These costs could wipe you out!
The Insurance Information Institute (I.I.I.) recommends that you have $100,000 of bodily injury protection per person and $300,000 per accident. If your net worth is more than $300,000, consider buying additional liability insurance. You may also consider purchasing an umbrella or excess liability policy. These policies pay when your underlying coverages are exhausted. Typically, these policies cost between $200 and $300 per year for a million dollars in coverage. If you have your homeowners and auto insurance with the same company, check out the cost of coverage with this company first. If you have coverage with different companies, it may be easier to buy it from your auto insurance company.
In addition to liability coverage, consider buying collision and comprehensive coverage. You don’t decide how much to buy. Your coverage reflects the market value of your car and the cost of repairing it.
Decide on a deductible—the amount of money you pay on a claim before the insurance company reimburses you. Typically, deductibles are $500 or $1,000; the higher your deductible, the lower your premium.
This content is used with express permission of the Insurance Information Institute, Inc. www.iii.org – To request use of this content, email content@iii.org
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How Much Auto Insurance Coverage Do I Need?
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Considerations When Buying Automobile Liability Insurance – How To Protect Yourself When Protecting Others
April 28th, 2010
Did you know that if you are involved in an accident in which another person is injured, that you could be personally liable for any damages beyond the auto insurance policy limits? For this reason, you want to make sure you purchase automobile liability insurance with high enough limits to protect your financial future.
Each state regulates the minimum amount of auto insurance necessary for you to own and operate a motor vehicle. However, just because you satisfy the minimum requirement, depending on what that minimum is, you may want to consider obtaining liability insurance with a higher limit. For example, if the minimum limit of liability is $350,000, but you are involved in an accident determined to be your fault in which another party sustains injuries in excess of that amount, you could be personally responsible for that excess amount. You might be surprised at how high settlements and jury verdicts are in injury cases – people injured in car accidents claim all sorts of damages – past and future lost wages, medical expenses, pain and suffering, etc. These amounts add up quickly and could be in excess of $1,000,000. In the event that you only have $350,000 of liability insurance on your auto insurance policy, you could be responsible for the remaining $650,000+. You might think you don’t have that much, but you could lose your entire savings, your home, and you could have your wages garnished so that the injured party would be entitled to a certain percentage of your income until the amount is paid. Therefore, it is important to make sure when shopping for automobile insurance that you obtain a high enough liability limit to protect the financial future of your family. If you are in the market for auto insurance and would like a rate quote, you can get auto insurance quotes at www.einsurance.com
When considering the most cost effective ways to protect your family, you should consider whether to purchase an umbrella policy to cover amounts in excess of the required minimum primary automobile liability policy. Rather than purchasing a primary automobile policy with $1,000,000 in coverage, you can purchase a primary automobile policy with the minimum liability limit required by your state and then purchase a personal umbrella insurance policy which costs less than primary coverage and will apply in excess of your primary automobile liability insurance and homeowners insurance. Purchasing an umbrella policy is a good way to obtain more liability coverage at a lower premium. In the event of an unfortunate accident, you will be glad you did.
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Considerations When Buying Automobile Liability Insurance – How To Protect Yourself When Protecting Others
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17 Year Old Car Insurance – Insure Your Teen Driver Without Breaking The Bank
April 28th, 2010
Your kid got his driver’s license. He’s proud. You’re terrified because you know that the next step in this American rite of passage are the dreaded words, “Can I borrow the car?” You also know that unless you want to face financial ruin, you’re going to need car insurance for your teen driver, and you’re asking yourself how much is car insurance for a 17 year old?
Yes, 17 year old car insurance is going to cost you. Remember, like all insurance, automobile coverage for your teenager is about assessing risk based probability. In the giant actuary tables of life, teenage drivers don’t stack up as attractive risks. According to the Insurance Institute of America, your 17-year-old is six times more likely to get into an accident than a driver aged 30 to 56! If your teen driver is a male, prepare for more car insurance sticker shock. Young men are statistically proven to have more accidents than young women. Given the risks associated with teen drivers, there almost isn’t such a thing as an average cost of car insurance for a teenager
But covering your assets doesn’t mean you need to cash out the kid’s college fund. Plan ahead for the inevitable and you may be able to realize some teen auto insurance savings.
•Many insurance companies offer discounts on teen car policies to kids who complete a driver’s education program. To obtain the best discount available, check with your insurance company about the programs they recommend. You may also want to shop around to see how competitive other insurance companies are at www.einsurance.com
•Showing proof that your child has maintained a good grade point average (usually 3.0 or higher) may also qualify for a teen driver discount.
•Putting your teen on your car insurance policy as an additional driver rather than buying a separate policy should assure that all your discounts apply to your child as well. Check with your insurer to see if this is the case.
•If your teen gets a moving violation and the judge permits it, have him go to traffic school instead of paying the fine. Sitting through a day of that should serve as a deterrent in the future, and it may keep the ticket off his driving record. Instead of just adding your teen to your policy, it may be worth your while to consider switching insurance companies and looking at the your entire policy covering you and your teen as a package deal and how companies compete – it can be time consuming, but if it means saving money, time is a valuable investment.
If you are in the market for auto insurance and would like a rate quote from some companies in your area, you can get auto insurance quotes at www.einsurance.com/auto-insurance/auto-insurance. While there is no rock-bottom lower insurance cost for 17 year old compared to most other drivers out there, there are several things you can do to lower the risk that your child will be in an accident or get a moving violation:
•Set a good example. If you’re a good driver, the odds are your kid will be, too.
•Look into programs like Students Against Driving Drunk, where kids sign contracts agreeing not to drive under the influence of drugs or alcohol. •Spend time as a passenger while your teen is driving, before and after he gets his license.
•Put your teen driver behind the wheel of a safe, well-maintained vehicle. The family sedan might not be a rad ride, but letting even the most responsible teenager drive a sports car is just tempting fate. •Avoid night time driving and allow your car to be used more during the day
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17 Year Old Car Insurance – Insure Your Teen Driver Without Breaking The Bank
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Uninsured And Underinsured Motorist Coverage – What Is It And Do I Need It?
April 28th, 2010
When you purchase an automobile liability insurance policy, the insurer will likely ask you whether you want “UM/UIM” coverage and at what amount. UM,uninsured) motorist, and UIM,underinsured motorist coverage is extremely important for you and your family. In the event that you are injured in a motor vehicle accident, you would hope that the “at fault” driver has liability insurance that would cover your damages. But what if they don’t? You don’t want to suffer because someone else failed to buy insurance or because someone else purchased the very minimum in coverage which does not come close to covering your injuries. How do you protect yourself and your passengers? Obtain insurance with high enough UM/UIM coverage.
When you buy automobile liability insurance, the insurer may be required to offer you UM/UIM coverage at an additional cost. In fact, if you do not want such coverage, the insurer may be required to obtain your express written rejection of such coverage. Think long and hard before rejecting UM/UIM coverage – that is the coverage that will protect you and your passengers in the event the “at fault” vehicle does not have insurance or enough insurance to cover the injuries of the driver and passengers in your car. You purchase automobile liability insurance to protect others – don’t forget to also protect yourself and your loved ones by obtaining UM/UIM coverage with high enough limits.
In the event of a serious accident, you and your passengers would incur lost wages for time away from work, medical expenses which can be incredibly high depending on the extent of injuries, and time at the hospital and surgery costs add up fast.. These are not pleasant things to think about now, but in the hopefully unlikely event that you are involved in an accident, it would be even worse to be in that situation and also have to worry about financial issues. Think ahead now and hopefully you’ll never have to think back. Protect yourself and your passengers by making sure you obtain UM/UIM coverage with high enough limits.
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Uninsured And Underinsured Motorist Coverage – What Is It And Do I Need It?
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Uninsured And Underinsured Motorist Coverage – What Is It And Do I Need It?
April 28th, 2010
When you purchase an automobile liability insurance policy, the insurer will likely ask you whether you want “UM/UIM” coverage and at what amount. UM,uninsured) motorist, and UIM,underinsured motorist coverage is extremely important for you and your family. In the event that you are injured in a motor vehicle accident, you would hope that the “at fault” driver has liability insurance that would cover your damages. But what if they don’t? You don’t want to suffer because someone else failed to buy insurance or because someone else purchased the very minimum in coverage which does not come close to covering your injuries. How do you protect yourself and your passengers? Obtain insurance with high enough UM/UIM coverage.
When you buy automobile liability insurance, the insurer may be required to offer you UM/UIM coverage at an additional cost. In fact, if you do not want such coverage, the insurer may be required to obtain your express written rejection of such coverage. Think long and hard before rejecting UM/UIM coverage – that is the coverage that will protect you and your passengers in the event the “at fault” vehicle does not have insurance or enough insurance to cover the injuries of the driver and passengers in your car. You purchase automobile liability insurance to protect others – don’t forget to also protect yourself and your loved ones by obtaining UM/UIM coverage with high enough limits.
In the event of a serious accident, you and your passengers would incur lost wages for time away from work, medical expenses which can be incredibly high depending on the extent of injuries, and time at the hospital and surgery costs add up fast.. These are not pleasant things to think about now, but in the hopefully unlikely event that you are involved in an accident, it would be even worse to be in that situation and also have to worry about financial issues. Think ahead now and hopefully you’ll never have to think back. Protect yourself and your passengers by making sure you obtain UM/UIM coverage with high enough limits.
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Uninsured And Underinsured Motorist Coverage – What Is It And Do I Need It?
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The Basics Of An Insurance Policy
April 28th, 2010
There is more to an insurance policy than what it costs you. In order to accurately compare one policy with another, you need to know more than just what the premium is. You need to know what each of the policies covers in order to understand if the po…
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The Basics Of An Insurance Policy
April 28th, 2010
There is more to an insurance policy than what it costs you. In order to accurately compare one policy with another, you need to know more than just what the premium is. You need to know what each of the policies covers in order to understand if the po…
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The Logic Behind Auto Insurance Quotes
April 28th, 2010
We all want affordable auto insurance, but sometimes it seems that the setting of auto insurance premiums are arbitrary and capricious. But there really is more method than madness to setting premiums and online auto insurance quotes. So, why does auto insurance cost what it costs?
All insurance involves spreading risk from an individual or entity to a larger group of investors and underwriters. The premium you will pay compensates the auto insurance company for agreeing to bear the risk of making good on an auto insurance claim, and the risk is assessed by all the contributing factors in your life that may make you a more or less risky person to insure.
This personal risk assessment isn’t arbitrary or random. Mathematical models are developed from a variety of datasets that predict the likelihood of a specific insurance coverage event to occur again. The table, derived from mathematical modeling or actuarial science, which shows the likelihood of an event occurring is commonly referred to as an actuarial table,
Armed with actuarial tables, auto insurance companies can scientifically calculate their level of risk. When they issue you an auto insurance quote and ultimately a policy, they’re betting the odds that the worst won’t happen to you (or your car, property, business, health, etc.), in which case they’ll never have to pay a claim against your insurance policy. In the meantime, they collect your auto insurance premium and invest them in other financial vehicles, so that if the worst should happen, the premium plus the interest they’ve earned from investing your premiums will more than cover the cost of making good on your auto insurance claim.
Many factors and variables play a role in calculating your risk as potential holder of an auto insurance policy. Some of them, such as your driving record (think DUI’s, fender-benders, emotionally charged or reckless driving behavior,) you can control; and some of it you have no control over, such as your age. Simply put, you may be the most responsible 17-year-old driver on the planet, but the auto insurance statistics work against you as the average cost of car insurance for a 17-year-old teenager can be high. Being responsible and older with more driving experience will mean a cheaper auto insurance quote and premium.
Calculations and variables considered for auto insurance quotes and policies constantly change. If you already have automobile liability insurance, you should not wait until its renewal time to shop for a more affordable auto insurance policy. If you find a better rate, you don’t have to wait until your current policy expires to switch auto insurance companies.
Once you purchase the new policy, you can contact your current insurer or agent and cancel your existing policy. You will then be issued a check for that part of the premium that has not been “used.” So, if you have half a year to go on your current policy and you find a better deal on auto insurance now, you can cancel and could get a refund of 50 percent of the premium you’ve paid – there are some exceptions such as policies where the premium is financed so check your policy to be sure.
E-INSURE Services Inc. recommends that you shop for insurance quotes from a variety of different insurance companies to make sure you are getting the best deal.
Don’t forget, shopping for the best available auto insurance quote, you will want to make sure you are comparing apples to apples — make sure you consider more than just the premium. Do the policies have the same limits? Do they have the same coverage? Are the policies issued by reputable insurance companies? Be sure you know the answers to these questions when comparing auto insurance quotes.
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Build Your Own Discount Auto Insurance – Seek Out Savings on Car Coverage
April 28th, 2010
Looking for dirt cheap auto insurance? Instead of settling for coverage from a fly-by-night company, you may be able to build your own discount auto insurance policy by seeking out some hidden savings. There are many considerations when buying an auto insurance policy.
If you have multiple policies covering a variety of insurance needs spread among several companies, consider putting all your insurance eggs in one basket. Discounts are available from many companies if you buy more than one policy from them. Lump your boat insurance, motorcycle insurance and both car insurance policies in with your homeowner insurance and you could see significant savings on insurance in general, including a discount on your auto insurance.
Opting for a higher deductible can result in a discount on your auto insurance, too, especially if you have a safe driving record. According to the Insurance Information Institute, you can realize 15% to 40% on your car insurance premium (collision and comprehensive part) by raising your deductible. The more you’re willing to pay out of pocket in the event of a collision, the lower your premium will be.
Rather than taking the monthly payment option for your car insurance quote, try to pay the annual premium in one lump sum. The money added as a service charge for the convenience of making installments could add up to an entire monthly insurance payment — another nice discount for auto insurance!
While you’re at it, see if your insurance company provides discount auto insurance for automatic payment deductions from your bank account.
If you’re driving an older car (we aren’t talking about a vintage vehicle), you may think about dropping your collision insurance altogether. You’ll still need to carry liability to pay for damages to people and property, if an accident is your fault, and medical to pay for injuries to you, but paying for collision/comprehensive on a jalopy junker that isn’t worth repairing doesn’t make sense. Give yourself another discount on auto insurance by ditching that coverage.
Now, add up all the money you’ve saved building your own discount auto insurance and park it in an interest-bearing bank account. If you are in an accident, you’ll have rainy day savings to pay for your share of repairs, or maybe even next year’s auto insurance premium.
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Build Your Own Discount Auto Insurance – Seek Out Savings on Car Coverage
