Auto Insurance Articles

When you are first starting out on your own it is hard to know how to factor in all of the many costs of life like income taxes, health care, rent payments, car payments, credit card bills, utility costs, student loans and food expenses into a monthly budget.  While you were in school you may have dreamed about your first real job after you graduated, but then reality hits and you may discover that you don’t seem to have enough money to pay for everything.

Students loans and credit cards may be one a few of the major reasons why there are so many people who drive around without have auto insurance.  Misplaced priorities and lack of money can lead many individuals to drive a vehicle without having auto insurance which is legally required.

Letting your auto insurance lapse or not even getting it might seem like a good way to save on money.  However, consider how much your expenses could potentially be if you were to become involved in an accident and the police give you a ticket.  A ticket may not seem like much, although it could cost up to $1,000, but there is also the possibility of physically injuring someone in an auto accident.  For serious injuries, hospital bills could cost as much as $50,000 or more,  and there would also be the cost of paying for their damaged vehicle.

According to the Insurance Information Institute, fines for driving without auto insurance varies from state to state.  It depends on what percentage of drivers are uninsured.  As an example, in Massachusetts the fine ranges anywhere from $500-$5000 and you may also have to serve a one year jail sentence.  In the state of Florida, your vehicle may be impounded if you are found to be driving without insurance when you are stopped by the police or become involved in an accident.  You are then charged storage fees until you can pay to get your car out.

To find out what the exact penalties and fines are in your state when you drive without insurance, you can visit your local Department of Motor Vehicles.  Once you know what the fines are and compare that to an insurance quote, you will realize that it is much more finally sound to have auto insurance.

To search for the best auto insurance, you can look online and visit a few insurance company websites.  These companies make it very easy for you to get free and fast quotes right from their website.  You can obtain a quote in as few as five to ten minutes.  Find an insurance company that offers twelve and six month payments plans so that it will be easy for you to budget insurance costs.

Also keep a look out for different types of discounts on auto insurance that you may be able to qualify for like university or college discounts, senior discounts and good driver discounts.  Discuss with your insurance agent to find out if there are any discounts that you qualify for.

You can also find insurance websites online that allow you to compare multiple rates from different insurance companies.  This makes it easy to comparison shop.

The number of people who ride motorcycles in the United States is rising.  Many people are looking for ways to say money at the gas pump and still be able to get where they need to go.  Motorcycles are a good alternative form of transportation in most states for a good portion of the year.  With the increased number of riders has come an increasing number of motorcycle accidents.

There were 4,810 motorcycle fatalities in 2006, according to figures from the National Highway Traffic Safety Administration.  This is the highest number of deaths since 1981.  The number of motorcycle accidents has increased for nine consecutive years in a row.

In most states, to legally ride a motorcycle, bikers are required to carry a minimum level of insurance.  The liability insurance covers any damage or accidents that are caused by the motorcycle rider.  It protects the people that are around you from having to pay for any of your negligence.  You should check to see if your liability insurance covers guest riders as well.  There are other forms of insurance coverage in addition to liability that helps to protect you as well as your investment.  One thing that is important to understand is that three out  of four motorcycle accidents involve some other vehicle.  In a majority of cases, the other driver violates the biker’s right of way and causes a collision.  The liability insurance of the other driver may cover some costs, but there are insurance products that are available to further protect the rider.

Once you have liability coverage, the next step is to decide whether or not you want to get collision insurance.  This form of insurance pays for any necessary repairs on your bike that are the result of a collision.  There is usually a deductible for this and your insurance company may only pay you your bike’s book value if it ends up a total loss.

The next type of insurance you can consider is comprehensive.  This covers motorcycle damages that are result of accidents that do not take place on a road.  Vandalism, fire, and theft are some of the situations that are covered.  There also may be a deductible for comprehensive insurance.  Another addendum that can be added to your policy is coverage that insures you against losses caused by uninsured drivers.  It is very important that you realize that these different types of insurance products will vary depending on the state you live in as well as from one insurance company to the next.  You should thoroughly review your policy to determine what the exact coverages are.

Motorcycle insurance is sometimes sold as a rider to auto insurance or another form of insurance or it can be purchased as a stand alone policy.  There are several things you will need to consider as well as look for when it comes to shopping for motorcycle insurance.  The cost will very, depending on where you live.  In states in the north some insurance companies offer what is known as a lay-up policy.  You only have to pay insurance premiums during the months that you are able to ride your bike.  With this type of policy you won’t have coverage during the winter months.  You should also check your policy to see if it covers safety gear.  Helmets, costs, boots and gloves can all end up being destroyed in a motorcycle accident.  You should check to see if your insurance policy pays to replace them.  In cases where your bike is totaled, you want to find out if your insurance pays for replacement costs, the amount you owe on the bike, or the book value.  There can be a very big difference in terms of price between these three values.

Whether you want to have it or not, everybody has to have auto insurance.  Most people think that auto insurance is an unnecessary expense, but if you were ever to be in an accident it would actually be a life saver financially.  Purchasing auto insurance online is known for being a cheaper source of insurance premiums that still offers the same coverage.

The amount you pay for auto insurance is determined by several factors.  Some factors may end up changing which will help you save on your premium.  Or your insurance agent might be able to help you find ways to save money on your insurance coverage.  You can research different ways to save on your insurance online without being pressured.

One of the big advantages that many insurance companies offer online is a free and fast quote.  Usually in about ten minutes you will get a quote that is accurate from an insurance company.  This is a lot easier and faster than the old way of either calling or driving from insurance company to insurance company to obtain quotes.

The fact that you can quite easily compare quotes from different insurance companies is quite advantageous.  It allows you to compare the rates and terms to see which insurance company offers you the best coverage and deal.  You don’t have to wait hours or day any more to get a response.  You can receive instant quotes.

The internet gives you the opportunity to shop online without any hassles on what is sometimes a stressful thing to shop for.  You don’t have to waste a lot of energy and time.  You don’t even need to leave home to do it.  Some people still do it the long way by researching through a ten pound phone book to find phone numbers for local insurance companies that friends or family have told them about.  This takes longer than it needs to.  You can easily get online and do the search to find any insurance company that you might be looking for.

It’s a pretty safe bet to say that nobody likes shopping for car insurance.  No one looks forward to all the hassles of calling around, visiting different insurance companies or negotiating the terms on an insurance policy with one or more agents.

Buying insurance online allows you to research different insurance companies quickly, which helps to ensure that you get the best policy with the best price and terms.  Once you have narrowed your search down, you can always call an insurance company if you still have questions regarding exclusions or coverage.

Another advantage of doing research online for auto insurance is that there is a website you can check to get a consumer grade rating for different insurance companies.  The JD Powers & Associates organization collects information from insurance policy holder all over the United States.  They ask policy holders to grade their insurance company based on price, handling, their satisfaction with their insurance agent, options for coverage, and their overall experience with their insurance company.

When you think you have found the insurance company that you want to buy a policy from, you should still call them before you buy anything.  Call the insurance company and have then explain everything fully to you.  Never buy auto insurance based solely on price.  There is probably a reason why a policy is a lot cheaper than other quotes you have received.  Cheaper policies often have big gaps in terms or coverage and exclusions.

Comprehensive and collision insurance are two forms of car insurance that often get mixed up.  They both provide coverage for your cars, but are also quite different.  Collision insurance provides coverage  on your car if you are ever involved in an accident or collision.  Comprehensive insurance covers other types of things that are not collision insurance.  These include things like disasters, vandalism, theft, acts of God, and fire.

Comprehensive auto insurance does not cover damages to your car that are received in a collision.  To have the best insurance protection on your vehicles, you need to have both comprehensive and collision insurance as part of your auto insurance policy.  Both collision and comprehensive insurance will have deductibles that you will need to pay whenever you file claims to your insurance company.  You can save a lot of money on both your collision and comprehensive insurance premiums by having higher deductible amounts.  However, if you do need to file a claim, you will then have to pay more out of pocket, so make sure that your deductible amount is something you will be able to afford.

There is another form of insurance that you may want to investigate, particularly if you have a new car.  Many times when you have to  file a claim for a total loss on your comprehensive insurance, your reimbursement is based on fair market value of your car.  This may actually be less than what it will cost to replace the vehicle, particularly if you still owe money on the car and are making payments.  If you finance or lease your car, your lender or leasing agent may require you to purchase GAP insurance.  This form of insurance will pay the difference between the actual replacement value (the amount you owe) for the car and the claim amount.

Collision insurance covers auto accidents or if you should happen to collide with a light standard or building.  If you buy your car on credit, your lender or leasing company will require that you have collision insurance to cover you in case you are ever involved in an auto collision accident.  If you did not have collision insurance and you ended up in a total loss accident, you might end up with a serious debt even though the car is totaled.  Collision insurance pays to have your vehicle repaired even if you are the one at fault in the collision, and will also replace your car at cash value.  If the collision was not your fault, the other party’s insurance pays.  Their liability insurance covers the damages to your property and yourself, not your insurance.  Therefore, if the collision is not your fault, it shouldn’t have any effect on your rates or premium.  If you are found at fault in a collision, your rates will probably go up.  If you make a claim on your comprehensive insurance you could also end up having higher rates.

When it comes to auto insurance there are several important things to consider.  One thing you will need  to remember to do is as your children get older and become old enough to drive, is to add them to your auto insurance policy.  This way they will be covered when they are driving your cars.  You need to keep in mind that adding children to your insurance policy can be expensive.  However, it is possible to find ways that are cheaper than others.

There are times when an auto insurance policy allows you to add your children at a flexible rate.  There are several factors that go into determining whether you are able to get a decent price on your auto insurance or not that includes your children.  A lot will depend on your children.  Many states offer Driver’s Education courses that your children can enroll in.  Many times an insurance company will cover your children at a lower rate if they take and pass a drivers ed course.  This is because if your children are able to pass a  course, it is more  likely they will be better drivers and it will be less likely that they will get into accidents.  Drivers education courses are a good idea anyway for many kids, so you should check to see if your insurance company offers discounts for teen drivers who take a driver’s ed course.

Another thing to check with your insurance company about is your children’s grades and how that might affect your auto insurance rates.  You may be able to get lower auto insurance if your children regularly receive good grades.  This is another discount that many insurance companies offer.  It is assumed that children who are good students and getting good grades are more likely to be better drivers.  Good students therefore benefit not only with their education but also benefit their parents by lowering the cost of their auto insurance.

These discounts do vary from insurance company to insurance company, so you will need to discuss these with your insurance agent.  As your children get to be driving age, you will need to review your insurance policy and make adjustments to it anyway to make sure that your children are properly covered on your policy.

Even if your children only drive your cars occasionally, they still need to be properly insured.  It only takes one accident without having insurance to cause you major problems.  Therefore it is important to make sure your children are properly insured once they are old enough to drive.  This will keep you out of trouble, keep your children safer, and enable you to teach them about the important benefits that derive from working hard in life and school.

Getting involved in a collision or accident with your car can be a very bad experience, but filing your insurance claim should not be too difficult if you follow a few simple steps.

As a first step, when you first get an insurance policy you should make sure that you read the entire policy and be certain that you understand what is and is not covered for your vehicle.  If you are unsure about anything, contact your insurance agent and have them answer your questions.

If you do get involved in a collision, first make sure that everyone is alright.  If anyone needs any medical attention, you should call 911.  You should also have yourself checked by a physician.  Even minor injuries can sometimes evolve into long lasting ones.

Get the other driver’s personal information such as name, driver’s license number, phone number, address, and insurance information and give them your information.  It is a good idea to have a disposable camera in your car so that if this happens to you you will be able to take photographs of all of the vehicles involved in an accident or collision.  Write down any details from the accident or collision as soon as you can while it is still fresh in your mind.

Also get personal information from any witnesses to the accident, such as their names, phone numbers and addresses.  You should file a police report and have the police prepare an accident report.  Your insurance company will ask you for the number to the accident report.

You should contact your insurance  company about the accident or  collision as soon as you can, even if it is not your fault.  An adjuster from your insurance company will come out to make a determination as to who is at fault.  Then either your insurance company or the other driver’s insurance company will pay for the repairs to your vehicle.  How this works depends on the form of insurance you have, the form the other driver has, and also who is ruled to be at fault in the accident or collision.

If you are found to be at fault, it is your collision insurance that will pay to have your vehicle repaired or replaced.  Your liability insurance is what will pay for the other driver’s vehicle to be replaced or repaired.  If the collision or accident is not your fault, you won’t have to do anything.  The other driver’s  insurance company should handle things.  If you are found at fault, you will need to pay the deductible on your collision insurance in order to have your car replaced or repaired.

There are several things going on when it comes to filing an insurance claim.  If you were injured in the accident or collision and were not at fault in the accident, you may be eligible for a settlement due to your injuries.  You need to remain calm and steady throughout the entire process.  If you think either your own or the other driver’s insurance company is not being fair on your claim you should ask for an arbitrator, who is a third party, to come in to help settle the claim.  Or you can ask your own insurance company to deal with the other driver’s insurance company in terms of the information and transactions that need to be handled.

If you drive a car it is critical that you fully understand car insurance basics.  Driving a car is a very important part of many people’s daily lives.  Of course no one wants to think about the possibility of getting into a car accident, but it is true that auto collisions happen on a regular basis.  Making certain that you have the proper insurance is an integral part of being a responsible citizen and driver.

If you need to finance your car when you buy it, your lender will require you to have comprehensive and collision insurance.  This form of insurance coverage provides you with protection that will help to offset repairs for your car if it becomes involved in an auto accident or other event that is covered under your policy.

If you own your car outright, you are not required to carry this form of insurance coverage.  However, you need to realize that even minor fender benders can lead to costly damages to your vehicle.  If your car becomes damaged in an accident where you are found at fault and you do not have any collision coverage, you will be responsible for paying all of the repair expenses by yourself.

If the state you live in has mandatory insurance laws, you will be legally required to have liability insurance.  This form of insurance is not concerned with repairing your auto.  Instead it is for the purpose of protecting the interests of other people’s property that becomes damaged in an accident where you are the one at fault.

When it comes to choosing car insurance, the best thing to do is to select a policy that will provide you with collision, liability and comprehensive coverage.  With these coverage types all taken care of you will protect yourself against any legal claims individuals may make who suffer a loss in an accident where you are at fault.  You can rely on the fact that your insurance company will cover the majority of expenses for repairing your car if it becomes damaged in a situation that is covered by your policy.

Before you make your final decision on your car insurance policy, be sure that you read and thoroughly understand all of the fine print.  What one insurance company calls full coverage might be entirely different from another company’s policy using the same terminology.

Make sure to pay attention to deductible amounts that go with each kind of claim.  That way you will know just exactly what your out of pocket expenses will be if you ever need to file a claim.  It is also very important that you fully understand what the liability limits are so that you know precisely the amount of protection that you have.  Pay very close attention to all of the exclusions that are described in your policy’s fine print as well.  As an example, if you happen to live somewhere where hurricanes occur, then you will not want to choose an auto insurance policy that carries an exclusion in its comprehensive coverage for wind damage.

Selecting a policy that will meet all your needs is extremely important.  You also need to be sure that you select a reliable insurance company to handle all of your auto insurance needs.  You will want to make sure that the insurance company has all of the required state licenses and also confirm that the company has good standing with the insurance commission in your state.

You probably already have auto insurance if you own a classic car.  However, do you have insurance with an insurance company that specializes in insuring only classic cars?  Or do you just have insurance with a regular insurance company?  If it is the latter, you may be paying more than is necessary for the wrong kind of insurance all together.

Classic car insurance is quite unique when it comes to auto insurance.  It actually provides insurance coverage on cars that usually are not driven very frequently.  That fact and also the special nature of this kind of insurance, often allows insurers of classic cars to charge a lot less for insurance.  This can save classic car owners a significant amount of money as well as giving them peace of mind in knowing that the specific concerns and risks that come with owning a classic car are covered.

Depending on the insurance company that your purchase insurance from, you policy could include a range of special as well as standard features.  Probably the most important feature is agreed value coverage.  This type of coverage means your classic car will be insured for its full value in cases of a loss.   Your car’s value is agreed upon ahead of time by the insurer and you.  This is a very important element of classic car insurance due to the fact that regular car insurance will take depreciation into account which ends up reducing the amount paid out on an auto claim.  If you have regular insurance on your classic car this is the primary reason why you need to think about changing your insurance.

There are other special features that classic car insurance can include:

• Premium rates that are based on usage of the car (the insurer will usually offer different premium rates and policies in different categories that are based on annual mileage figures)
• Collision, liability and comprehensive coverage, which are very similar to regular auto insurance
• No deductible
• One liability charge even if you happen to own more than one classic car
• Instant coverage for new purchases up to a maximum dollar amount (the coverage goes into effect before the car is even evaluated by your insurance company)

Many insurers of classic cars do have some special requirements that must be met.  They can include the following:

• Any car that is insured must be kept in a locked and safe garage whenever the car is not in use
• Classic cars can not be driven for every day errands and tasks like driving children to school, for business purposes or to replace your regular car.
• Some insurers have their own exclusions.  As an example, there could be a stipulation that the insurance on the car doesn’t apply to racing cars, driving at timed events or at high speeds, or a car that is used for driver education.
• If the car is in the process of being restored, there could be special conditions that must be met as to where the car is to be stored during the restoration process.  Agreed value coverage might also not apply to cars that are undergoing restoration.

As many parents can tell you, having a teenager driving a car for the very first time can definitely be just as nerve wracking for the parents as it is for the teen driver.  There is a very good reason for this as statistics show that a 16 year old driving is about 10 times more likely to get into a driving accident than drivers who are between the ages of 30 to 59.  The leading cause for death for teens ages 15 to 20 is auto accidents.

For this reason, teen drivers, or also  known as new drivers to auto insurers, will usually pay the most expensive premiums for auto insurance.  Parents can generally expect the premiums on their car insurance to increase by somewhere between 50% to 200% after they have added their teenager to their auto policy.  However it may be possible to negotiate with your insurance company for a lower rate after your teen has a safe driving record for one or two years.

While it is true that auto insurance for teenagers is expensive, there are things you can do to help less the financial hit.  It usually does cost less to add your teen driver onto your auto insurance policy than it is to buy a new policy.  Any discounts that you have will also apply to your teen.  If you have multiple vehicles, your insurance company might assign your teen driver to the car that is most costly to insure automatically unless you specifically request something different.

Many insurance companies will offer discounts to teenagers who complete a course in safe driving.  You can usually save somewhere between 5 to 15% on your insurance rates if your teenage completes a course.  Some insurers also give discounts if you use their booklets and instructional videos about safe driving.  Teens that get good grades in school may also be eligible for a discount  of 10 to 20% with a B grade average or above.

The kind of car your teenager drives can affect the rate on your insurance and also influence how your teen drives.  A teenager who is driving a sports car is more prone to driving fast; if a teen is driving a minivan or family car equipped with safety features the chances of them driving sensibly is more  likely.  If possible, avoid allowing your teenage to drive a truck or SUV, as they type of vehicles are more prone to rollover accidents.  If you are buying a car for your child, consider a used car which will be a lot less expensive for you to insure.

One final thing, despite the fact that your child will likely object, you should go for a drive with your teen driver.  Ride as the passenger to get a sense of how good a driver they are and any driving errors they might be making.  If you see any examples of aggressive or bad driving, lack of signaling, speeding or dangerous lane changes, be sure to point them out.  Also any time you have a teen riding with you while you are driving, make sure you set a good example for them.

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.