Auto Insurance Articles

A lot of people think that they can go without having auto insurance.  People often don’t get car insurance because they aren’t willing to spend the money on it, and think that their only problem will be that expenses will be higher if they end up in auto accident.  They don’t think that they really need car insurance.

However, it is a fact that not having car insurance can potentially be quite costly.  If you do happen to get into an accident you will have many more expenses that you will have to pay if you don’t have car  insurance.  If you are uninsured you will not only have the responsibility of paying for the costs on your car but also the other car involved in the accident as well, even if you were not at fault in the accident.  This is one of the major risks in going without having car insurance.  It can wind up being quite expensive and cause major problems.

However the potential expenses are not the only reason why you need to have auto insurance.  It is also required by law.  If you are not properly insured while driving you are, in fact, breaking the law.

What this means is if you were to get pulled over for speeding and you are not properly insured, your ticket could end up being very expensive.  However, it’s not just the ticket you will need to worry about.  If you don’t have insurance when you get pulled over, you might have to get insurance fast and provide proof that you have acquired it.  This means you will need to come up with the money for obtaining a policy fast.

If you end up in an auto accident where you have no insurance, you will be solely responsible for all of the costs.  This will not be your only problem.  If you get into an accident without having insurance, you will also be heavily fined.  You could end up even having to serve some jail time.  Being uninsured is a major problem not only because of all the money you will have to spend but also because you could face major legal problems.

Auto insurance is readily available.  Trying to go without it can end up being an extremely costly mistake.  It is also illegal to do so and you could get into a  lot of trouble if you don’t have car insurance.  It is very important that you have an insurance policy covering your entire car.  You also need to be make sure that it doesn’t expire while you are still driving.  A good car insurance policy will save you from having to pay for too many expensive repairs and also spare you from major legal problems.

Rental car companies often end up bombarding people with a lot of extra things, including rental car insurance, when they are renting cars for a vacation or even to use in the local areas where they live.  The big question that a lot of people who rent cars have is whether they really need to get rental car insurance or if it is just an unnecessary expense.  The answer to this question will depend on the car insurance you have for your own autos.  If you have comprehensive, collision, property damage and personal liability insurance on your personal vehicles and you plan on driving rental car in either the U.S. or Canada, then the auto insurance that you already have should apply to rental vehicles as well and have the same insurance coverage, deductibles and limits.

Some rental car companies may require that you have certain car insurance coverage that isn’t covered under your insurance policy.  In these situations you might have to buy the extra insurance coverage from the car rental company.  Or you can buy extra insurance as an umbrella, like comprehensive or collision insurance, to increase limits that come with your car insurance for rental vehicles.

When you set out to rent a car, it is extremely important for you to understand what all of the rules are for renting cars and know as much as you can about the rental company.  If you were to get into accident while you were driving a rental car, a majority of insurance companies will pay for comprehensive and collision claims in addition to personal liability and property damage.  Comprehensive and collision pays on the cash value of the car, or the replacement value of the exact same type of vehicle.  The amount that the insurance company pays is based on total mileage on the car, and wear and tear as well as the age of the vehicle.  There is a good chance that your insurance company will not pay to replace the auto with a new one.  The rental company may also end up charging you a surcharge for wrecking the car.  You may also be charged for the lowered resale value of a damaged car or the loss of rental income on the car during the time it is being repaired or replaced.

Because of these extra charges, it is critical that you understand exactly what charges you will be held responsible for should you get into an accident.  If the rental car company offers insurance for things that your personal auto insurance doesn’t cover, it is probably a good idea to buy the extra insurance.  Another thing you can do is talk to your personal insurance agent concerning what coverage you will have with rental cars.  There are some insurance companies that will treat a rental car the same as if it was your own car.  However, it is very important that you check with both your insurance company as well as the rental car company to make sure you have  adequate insurance coverage on a rental car.

If your auto insurance policy is from the U.S., it is valid only in the U.S. and Canada, and in some cases Mexico.  If you are traveling outside these areas, you will need to find out what the insurance requirements are from the rental car companies in the area you will be renting from.  There is a good chance that your U.S. or Canadian insurance policy won’t be valid in other countries, but you should check with your insurance agent to confirm this.

Small businesses need several different types of insurance coverage.  One of these is car insurance, which for small businesses can be a curse or a gift depending on who your insurance agent is.  There are several considerations for you when it comes time to obtain auto coverage for a small business.

The first thing you need to consider is the type and number of vehicles your business owns.  The more you own the more auto coverage you will need to have.  Some vehicles like work vans, 15 passenger vans, and some forms of SUVs may have higher rates associated with them.  This is because they have higher centers of gravity than most cars which makes them more susceptible to flipping over.  Business auto coverage is similar in many ways to personal coverage which means that many of the rules are the same.  Newer vehicles will be more expensive to insure than older ones.  You should try to avoid exotic cars and ones that have difficult to find parts.

The next thing you need to do is estimate approximately how much auto insurance coverage your business is going to need.  This is a very important consideration before you meet with any insurance agents.  This will help you avoid getting stuck with expenses and coverage that you don’t really need.  Think about how much travel your business requires.  As an example if you have a delivery service you will obviously need more coverage than a restaurant that doesn’t deliver.

The next step is to shop around for insurance coverage.  You should familiarize yourself with different insurance companies and agents that are local to you.  One important thing to keep in mind when you start meeting with insurance agents is that they are basically sales people.  Some of them may not be thinking in terms of your company’s best interests or may only tell you partial truths.  One common half truth that an agent might tell you is that the state won’t allow them to write policies for over a certain dollar amount.  The truth is $1,000,000 is what the standard coverage amount is.  It is possible that a smaller agent may not be able to write a policy over a maximum amount.  So if you needed, for example, coverage of $2,000,000 because your company’s business centered around driving, a dishonest agent might only tell you a half truth and try to convince that you didn’t need the extra coverage.  An honest agent will give you the truth and will offer you different solutions like buying auto insurance that has excess coverage which will meet your business needs.  Make certain that read you policy thoroughly to make sure that your company’s risks and needs are thoroughly covered under the insurance policy.

If, on the other hand, as a result of your assessment of your business needs you realized that you do not have a high auto liability due to the fact that your business doesn’t own any vehicles, you might want to consider adding a non owned and hired auto endorsement onto you general liability insurance policy.

Many people have the mistaken belief that full coverage car insurance will protect you from everything.  This is not true.  However it is true that acquiring full coverage car insurance can provide protection for you in several important ways.

The liability coverage on your car insurance policy covers any damage or injuries that happens to other people or their cars.  All states require you to carry liability insurance with specific minimums whenever you are driving a car.  A common liability minimum limit is 20/40/15.  This stands for $20,000 for an injured individual, $40,000 for multiple injured people in an accident, and $15,000 on damages to another individual’s car.

Some people obtain the minimum amount of auto insurance that they can, especially since it can be quite expensive.  However, if you think about how expensive medical treatments can be and also lost wages, consider that if if you were ever to become involved in a serious car accident and it was determined that you were at fault you could potentially end up being responsible for having to pay hundreds of thousands in medical bills for other people.

Auto insurance agents will all give you their professional opinion that the most critical part of a car insurance policy is liability.  You should look into getting as much coverage as you can reasonably afford instead of trying to get by with the minimum.  Another thing you can consider is obtaining an umbrella policy that increases the limit on your coverage to provide you with a protection level that is higher.

You really do need to have a sufficient level of liability coverage to protect your assets from potentially being taken away from you in a lawsuit, and also to protect any future assets you may acquire from judgments that could occur due to an injury lawsuit.  You not only need to have a sufficient level of liability coverage to protect you and your assets, but you also have a moral responsibility for helping in a situation that you partially or entirely caused, like when some becomes seriously injured.

Another thing you should consider when it comes to acquiring full coverage car insurance is acquiring some additional coverage for things such as personal injury protection, uninsured motorist protection, road service and towing, reimbursement for rental cars and gap coverage.  Uninsured motorist protection covers you if you get into a collision with a driver who does not have insurance or whose coverage is insufficient.  Road service, towing and reimbursements for rental cars are pretty self explanatory.

The purpose of gap coverage is to cover the different between what you owe on your car and the amount that it is worth if the car has to be totaled or in cases where the car is stolen and never recovered.  This is definitely a good investment if you still owe a lot or are upside down (owe more than its worth) on your car loan.  If you have a car with a value of $5,000 but you woe $8,500, if your car was stolen you would be reimbursed by your insurance company for the $5,000 and you would still owe $3,500 on a car that you didn’t even own anymore.  Gap insurance would cover the $3,500.

When you are looking to buy an auto insurance policy, it is a very good idea to obtain quotes from several insurance companies.  Coverage and rates can vary quite a bit from insurance company to insurance company.  The best way to ensure that you get the best deal possible on your car insurance is to review all of your options.  Collecting information on various policies will allow you to make an informed decision regarding your car insurance.

There are several different factors that have an impact on the cost of auto insurance.  Insurance rates can be affected by many factors including the type of car that you drive, age of your auto, the size of your local metropolitan area, your driving record, the amount you drive, your age, and many other variables.  Just because you happen to know somebody who got a really good rate from a particular insurance company doesn’t mean that that company will be the best choice for your situation.

Due to the fact that rates can vary a great deal, you will not be able to get any sort of realistic price without providing information about yourself first with an insurance company.  The only way you can really compare costs on coverage is to receive several quotes from different insurance companies.  When you are requesting quotes you will need to provide specific information about your car and yourself so that the quotes can be as accurate as possible.

When receiving various quotes it is very important that you evaluate closely each of your options.  Don’t ever make the assumption that the least expensive policy provides the best value.  You have to review closely what types of coverage are included with each different option.  The low quote options might end up having lower liability limits, higher deductibles or only provide minimal coverage.

When you are comparing different policies, one thing you should be on the look out for is whether uninsured motorist coverage is included.  This particular form of coverage will protect you should you end up in an auto accident with someone who does not have car insurance.  It will cost you a little extra, but the protection can be very valuable.

Another thing that is important to look for is what the exact amount of the deductible  is for each different kind of claim on the various insurance policies that you have under consideration.  A policy that has a $500 collision deductible will cost more than one that has a $2,000 collision deductible.  When you are deciding between different policies, you will need to balance trying to keep your premium costs low with opting for deductibles that will be affordable for you if you ever find yourself in the position of having to file a claim.

Insurance policies can vary quite a bit when it comes to liability limits.  Those policies with lower limits will cost less.  However, if you do choose lower liability limits in order to make your premiums less expensive, you are exposing yourself to higher levels of liability if you become involved in an accident.

If the property damage liability on your policy has a $300,000 limit, your insurance company would be responsible for paying for any damages that you have caused up to the $300,000 limit minus your deductible.  If the liability limit is $100,000, any damages that go over that amount you will be responsible for.

The best way to ensure that you are comparing different insurance policies equally is to ask for quotes that are for a specific coverage.  If you get pricing from different insurance companies on identical policies that have the same limits, deductibles, exclusions and inclusions you will be able to figure out which policy offers you the best deal.