Car insurance can be a nightmare for the most experienced drivers but if you are a beginner it can overwhelming. Basically if you want to drive a car it is a legal requirement to have car insurance. All drivers must be protected from financial liability if they wound the property of a ‘third party’ this means other drivers, passengers, cyclists and pedestrians.
Car insurance policies vary greatly depending on what kind of shroud you purchase and which insurance company you chose. The different types of cover are broken down into three main categories:
Third Party
This is the minimum type of cover you can have. If you are eager in a car accident then the insurance company will pay out for the damage to other people’s vehicles and injuries but it will not cover the costs to your own car. This option can be good if you are on a tight budget or possess a low value vehicle which you can afford to replace.
Third Party Fire and Theft (TPFT)
This is a step up from third party insurance and will also cover you if your car is stolen or damaged by a fire. Despite advances in car security there is no guarantee that your car won’t be stolen or at best damaged in an attempt to be stolen so this type of insurance permits you to peruse a claim in these circumstances.
Comprehensive
This is the most extensive insurance available as well as TPFT it will also cover damage to your own car. There are all sorts of comprehensive car insurance and its worth shopping around. Some of the additional benefits can include courtesy car, breakdown cover, windscreen protection and legal expenses. This is generally the most expensive type of insurance but is worthwhile getting if you have an expensive car.
The only other technical terms you need to catch to grips with before purchasing car insurance is the excess and no claims bonus. The excess is the amount of money you will need to pay yourself before the insurer will pay out. You can make voluntary excess payments which are additional payments that you agree to pay towards any claims which could prick the cost of your premiums. No claims bonus is when your insurance company will cut the amount of your premiums every year you go without making a claim.
Finally some top tips to assist reduce the cost of your car insurance –
• Do not steal a car with a huge engine it will put your premiums up
• Add security features such as alarms and steering locks
• Support your car in a garage
• Add an experienced driver to your policy
• Get a range of car insurance quotes
• Pay in one lump sum
Jennifer Adams writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.
Filed under Car Insurance Questions by on Feb 25th, 2011. Comment. 
Auto insurance can be one of the most costly monthly bills for a large part of Americans. With more and more people looking for ways to save money in 2010, saving on auto insurance becomes a popular topic. Below are a few simple ways to help cut your auto insurance costs.
The easiest way to nick your insurance cost is to lower your coverage. By lowering your liability and comprehensive coverage amounts, you can save hundreds of dollars per year. In an example insurance plan, the driver has bodily injury coverage of 50,000/100,000 and pays $950 per year for this level of coverage. If they were to reduce the coverage to the 25,000/50,000 level, the cost would be reduced to less than $800 per year. Reducing coverage amounts increases your financial risk but reducing unnecessary coverage amounts keeps you fully protected while also saving you money.
In addition to lowing your coverage amounts, increasing your deductible can also cut your insurance cost. Some auto insurance policies include a collision deductible starting at $100. Increasing this number to $500 or $1000 can set the driver a significant amount. Increasing your deductible does not reduce your coverage, its impact is felt only when a claim is made on the policy. Increasing your deductible can be especially beneficial for limited use drivers or drivers with an accident free record.
Another simple change to reduce costs is to eliminate any small policy additions which may be redundant. Some insurance policies come with small additions such as roadside assistance or rental car allowance. These additions can be useless if you have similar coverage elsewhere. Some drivers will have roadside assistance or rental car allowance through their cell phone policy, car warranty or in-car assistance program such as OnStar.
It is possible to cut your insurance cost while maintaining the same level of coverage. One way to do so is to change insurance providers. With the colossal variety of car insurance providers, you may find cheaper rates at a different company. Companies like Progressive and Geico provide drivers with an online quote making it easy to compare prices. The same coverage, for the same person can be drastically different at two different companies because of varying company policies and associated costs. If you had an insurance claim four years ago, and your current company keeps a five-year history, you can effect money by switching to a company with a three-year driver history policy.
You may also find savings by combing your current policies. If you have homeowners insurance and car insurance through separate companies, you may find a nice discount by moving your policies to the same provider. Find the company which allows you to join the most policies and gives you the biggest discount for doing so. Combing your car insurance with your health insurance, renters insurance or homeowners insurances can provide a large discount.
Keeping the same coverage but changing your covered car can also help you cut costs. A newer car costs more to insure and rates can be higher depending on the model and type of car. If you trade in your sports car for a sedan, you will rep significant savings. Cars can also come with significant savings attached. Models with high safety ratings will yield a bigger insurance discount.
Cutting your insurance cots can also be as simple as searching out all of your eligible discounts. Being a member of a certain groups, such as travel rewards organization or college alumni associations, can mean savings on car insurance. Ask your group if they provide any insurance discounts as some alumni associations offer up to as much as a 15 percent savings. Some insurance companies also offer military and college graduate discounts.
Remember to keep your policy up to date at all times. Drivers can receive discounts for where they live, how old they are or if they got married. If you move, even with the same region it is important to update your information. Insurance costs are typically cheaper when you live in less populated areas. Drivers can recieve a discount for being married and for being in a household with multiple policies so updating your status can save you money.
Filed under Car Insurance Questions by on Jan 21st, 2011. Comment.
Having to file a car insurance claim is the last thing most drivers want to do, they are insensible and it can take a long time to gather all the required documentation. In order to get the absolute most out of your insurance claim you will want to know how settlements are determined so that you can ensure a better outcome on your behalf. This article is going to take a look at how car insurance claims are obvious and how you can near out on top in the situation and get the most money possible. This article is assuming that you are filing the claim on your own and without the help of a lawyer; you don’t need a lawyer for most distress cases, but you should have one for personal injury.
What kind of documentation should I have?
Car insurance settlements are determined by looking at your loss during the accident; this could include but not limited to medical bills, loss of work, and actual harm to the vehicle. You will want to thoroughly document the entire accident; you need to have an ample amount of photo graphs of the harm, as well as the personal information of anyone else involved in the accident including insurance. If you have before and after pictures you can give the insurance company enough reason to enlighten a claim based on the distress done from this specific accident. You will also want damage estimates from multiple sources, at least 3-4 separate quotes from different repair shops. You should also be aware of what your insurance policy covers so that you can make sure you are getting the best settlement possible.
How noteworthy time do I have to file a claim?
You should file a claim immediately; however, the time you have to file a claim varies state to state, and insurance company to insurance company.
How do insurance companies determine how much to settle for?
Insurance companies have a data base on how much your vehicle is worth based on market value, and they also give out money for your loss. Insurance companies will estimate how much you lost from missing work or from medical bills, and add that with the vehicle afflict to determine how powerful to settle for. The numbers are typically lower than what you may want, and yes you can submit a counter offer.
How do I regain the best settlement possible?
This is where a claim gets tricky and you have to be stern. If you know the exact pain based on the quotes you received, and after ample research you can write your insurance company a letter for the amount of money you request. You can also wait for them to make a settlement offer on the claim; you can review your notes to determine if the number is fair; however remember the car insurance companies want the best possible deal for themselves. Submit a well analyzed counter offer; simply stating you want $10,000 instead of $8,000 is not enough. Give the reasons why you deem the offer was shameful balled, you will get yet another counter offer, which you can accept or counter against. Once you accept an offer (whether that is from a lawyers intervention or on your own behalf) the settlement is over and you get the allotted money from the settlement.
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Filed under Car Insurance Questions by on Dec 16th, 2010. Comment.
