Auto Insurance Guide Just for Beginners

From financial perspectives, auto insurance is both investment and waste of money.

· As an investment, the coverage protects vehicles and physical health in the event of accidents. Insurance company compensates for property damages and physical injuries.

· For safe driver or low-risk, this is a waste of money since the possibility of road accident is slim. With defensive driving techniques, auto coverage is almost useless.

Accidents do happen; even an expert driver can get into road accident due to bad weather, malfunction vehicle, sudden flat tire, and a lot of possible incidental reasons. Regardless of the circumstance, an accident almost always leads to collision. When that happens, other drivers sustain injuries and their vehicles need repair or replacement. In the attempt to avoid big expenses to compensate other drivers, auto insurance helps give the payout and keep everybody’s finances healthy.

Whether a collision is at policyholder’s fault or not, auto insurance company has the obligation to help its customers to settle financial disputes. The amount of financial assistance available, however, depends on the insurance policy. What makes things complicated is the fact that there is no one-policy-fits-all package. Everyone has different needs and personal preferences, so insurance providers must accommodate the needs with different sets of coverage and limits. There are plenty of coverage options and overwhelmed first-time buyers tend to make the wrong choices without guidance. Chances are they pay either too much or too little; both of which are wrong. Some factors that affect the types and amount of coverage include:

· Personal Liability: it is one of the most important types and mandatory in most states. In the event of accident where policyholder is at fault, this coverage provides compensation for other drivers’ and their passengers’ medical bills. Besides the protection from medical cost, Personal Liability also includes Property Damage coverage to compensate vehicle damage. The combination of those expenses can be too expensive to cover out of policyholder’s own pocket, so the coverage minimizes the risk of financial burden.

· Major Accidents: there can be thousands of vehicles on the road every day. With more of them, the risk of collision increases. In major accident situation which renders the policyholder’s vehicle damaged beyond repair, auto insurance Collision Coverage helps pay for the replacement. If damages are results of natural disasters such as fire and flood, Comprehensive Coverage kicks-in to provide assistance. Both collision and comprehensive are optional.

· Uninsured Driver: what if the at-fault party is uninsured? According to a 2014 study by Insurance Research Council, about 1 out of 8 drivers in the United States have no insurance. In ideal situation where all drivers have valid auto coverage, the cost for vehicle repair and medical bills are the burden of the at-fault party. Insurance providers offer Uninsured/Underinsured Coverage to prepare for such circumstance.

· Faulty Vehicle: regardless of how someone maintains a vehicle, there is a chance of engine breakdown, flat tire, or empty fuel tank in the middle of a trip. Roadside Assistance coverage helps to take care of the vehicle in this emergency situation. It is an optional purchase from insurance provider, but it can save you from hassles and difficulties. For those who drive dozens of miles on day to day basis may find the coverage as good preventive safety measure. Typical vehicle owners clubs tend to offer membership benefit that include roadside assistance as well. Members must pay annual fee to maintain the benefit, yet the service available from insurance company tends to be less expensive.

· Car Type: brand new vehicle that is still under manufacturer’s warranty has little chance of damage. On the other hand, old vehicle which has travelled thousands of miles or years of everyday usage is more prone to damages. Vehicles come in many different varieties such as SUVs, sport, luxury, off-road, and standard personal/family model without any excessive additional features. Performance cars come with higher premium rate due to higher possibility of speeding which can lead to accidents. Luxury vehicles with expensive replacement part also demand for higher premium. Some models have higher risk of theft as well, so the premium will adjust for the perils.

· Experience: insurance companies divide customers into two major categories: low-risk and high-risk. Teen drivers fall into the latter due to the lack of experience behind the wheel. Stand-alone teenage driver auto insurance can be expensive, but parents can include their children as secondary drivers to bundle the policy and get discounts. High-risk category also includes drivers with previous involvements in major accidents, recurrent traffic violations, and seniors.

Deductible and Premium

Premium is the payment policyholders have to make every month (or any agreed period). There are many ways to reduce premium such as deductibles and discounts. Deductible is a term to describe the amount of money that policyholders pay out of their own pockets to cover compensation. For example, an accident causes another car to sustain damage worth of $600. When policyholder pays $200 deductible, the insurance company only needs to pay $400. Many insurers offer discounts for safety devices, good students with good grades, multi-car policy, completion in Defensive-Driving course, and on time payment.

High-Risk Drivers

Insurance companies determine whether a driver is high-risk or low-risk based on various factors. High-risk drivers often find it difficult to get approval from insurers, but they can always go for non-standard market. Base premium from non-standard market insurance companies can be expensive, but the available discounts can help reduce the rate. For that, the drivers must look for an insurer that offers a variety of discounts with easy eligibility requirement, and this is where GoodtoGo Auto Insurance comes in.

6 Things Auto Insurance Hates and Auto Thieves Love

Most folks claim that their car, van, truck, RV, or motorcycle is one the most costly assets they own. Nonetheless it is relatively common for many people to simplify matters for auto thieves.

Don’t make it easy for criminals to make off with your car. Steer away from common mistakes others make so that you will find your vehicle parked just where you left it.

Six Easy Ways to Make Car Thefts Less Easy

1. Never leave your vehicle while the engine is still on.

Though its common practice to warm up your car in the cold weather, resist the temptation to let it stand for even a minimum amount of time without being inside. Doing so just invites the unscrupulous thief to take it and drive off!

2. Never leave your extra car keys within your vehicle.

Auto insurance companies tell us that anyone who leaves a spare set of car keys within their vehicle offers car trespassers looking for loot an opportunity to move one step onward in their crime without problems. Providing the guy who broke into your car seeking objects of value free access gives him one more thing to steal and one more claim to make with authorities – your car!

3. Never leave valuables in obvious view.

Although we all know that leaving valuables that are inside your car easily visible is a clear no-no, there will always be the ‘quick return’ excuse. Don’t succumb to the ‘only a moment’ urge. Always lock expensive items away in the trunk when you exit your vehicle. If that is not an option, make sure you conceal them as best you can so that a passerby will not be enticed to break in.

4. Never leave your vehicle unlocked or unsecured.

Assume that a car thief is a professional in his line of business and that he is an expert in breaking in – even through the smallest of window cracks. On the other hand, the guy who is not a pro will have no problem at all in getting into your vehicle is you leave it unlocked.

5. Never think your car is undesirable to a thief.

Even your jalopy is attractive to the car thief looking to make a few bucks from the junk yards that needs scrap metal.

6. Never stop your vigilance.

Whether your car is parked in your driveway, on the side of the road or in a mall parking lot, be mindful of your responsibility to prevent your vehicle from being stolen and thereby keeping general liability auto coverage quotes down for everyone. Follow the above rules at all times and in every circumstance.

Automatic Direct Auto Insurance Quote

Acquiring insurance coverage may not be as easy as you expect, especially if this is your first time. Young drivers, who were previously included in their parents’ policies, need to have their own auto insurance coverage sooner or later. There are some basic requirements such as credit card and saving accounts; many insurers also require applicants to actually have a home. Even when the basic requirements are already fulfilled, young drivers often have to pay quite high premium due to various reasons, for example no home ownership or simply lack of driving experience. Direct General Auto Insurance (or simply referred to as Direct Auto Insurance) has its own method to make the entire processes very easy. To get Direct Auto Insurance quote, applicants do not even need to actually have credit card or saving accounts, meaning young drivers can apply with good chance of approval.

Driving experience is an also an important factor to determine insurance rate. Without enough experience, insurance companies will treat young drivers as “high-risk”, meaning they should purchase non-standard coverage which is always more expensive than its regular counterpart. When acquiring Direct Auto Insurance quote, please remember that you can use the discount as long as you are eligible for it. For young drivers (especially those without occupation or home ownership yet), the “good student” discount is an excellent option to reduce premium by up to 10%.

You can ask for Direct Auto Insurance quote online or at the company’s branch offices spread across 13 states. There are more than 400 branch offices, and you can even acquire quote by phone. Even without credit card or checking account, you can pay the premium bill quite easily, too. In fact, auto direct insurance allows you to choose any specific date in a month to pay the bill, plan your own schedule, installment plans, and even payment methods in including online, offline, and even via phone too.

Young drivers can acquire the quote online and have it delivered to home addresses. In case you are not sure about what type of coverage to purchase, Direct Car Insurance provides you with Virtual Insurance Agents including Coverage Assistant and Life Coach; both are designed to help you to understand what coverage to purchase and make sure that your choices comply with state’s regulation. Those virtual agents will ask some simple “YES or NO” questions and give suggestions based on your answers. Recommendations are given instantly and automatically when you are asking for quotes. However, it is possible to change the company’s recommended coverage plan and simply purchase those that you need the most.

How to Get the Best Auto Insurance Rate for a New Driver

Congratulations, the young lady, your daughter that has just turned sixteen years old had finished processing her license and had obtained it. Her thought will definitely be on the type of vehicle to buy. Whereas the major thing you are likely going to be bothered with is how to get the best auto insurance rate for her most especially when she is a new driver and quite young.

It is better to do some home work on the type of insurance coverage before going to shop for the car. There is no doubt that the insurance rate of fort Escort will be lower than that of Mercedes Benz E500. so having an idea of the insurance cost will help in deciding the type of car to buy.

With this in mind then you can go ahead to buy a car of your choice that will be reliable, safe and economical. The best way to start the acquisition of your insurance policy is to go for auto insurance quote comparison. There are several benefit that you van enjoy from shopping for insurance. To start with you can get insurance quote that will be within your limited budget. Further more you can obtain the auto insurance quote that will meet your insurance need.

Individual needs vary as much as our face vary and every one is looking for ways of reducing their liability in case of any eventuality. As the function defines it, insurance is to protect you against any eventuality. Bearing this in mind one of the best way to reduce our expenses on insurance it get auto insurance quote comparison more so that the driver to be insured is a new driver.

Before you consider insurance policy for a new driver there are some facts that you must know otherwise you may not get the best auto insurance rate that you are looking for. You may start to wonder that how can you be sure that the insurance comparison site that you are in will give you the best service.

The first thing is that how much of information they have on their web site. Is the website very educative? Or it is just with scanty information, just like offline business, a good businessman will take pain to explain all the gray areas of the business to any customer that come around. It is the same story online. The content on the web site must give detail of all that you need to know. They should also give the contact means in case there are more details to find out.

A good test is to send a mail to ask for just any information, their prompt response will determine how they will threat your complain if you choose their policy. Any company that will not be ready to give you all the necessary information is not fit to be considered.

The last experience of insuring a new driver had given a good benefit. This had removed any guess work. There was this company the readily give multiple of quotes in a matter of minutes after the required information is supplied. A note of waning is the more the detail of information supplied the better the quote. Wrong or inadequate supplied information will earn you inappropriate insurance quote, the reason is that the auto insurance quote in calculated based on the information you gave them.

Tips To Choosing The Right Auto Insurance Company

Are you in the market for better auto insurance rates? Or, perhaps you are simply looking for a new auto insurance company? Whatever your reason for shopping around, now is the perfect time to request auto insurance quotes from several companies who are more than eager to earn your patronage. In fact, many companies will compete for your business by way of auto insurance rates.

Your first step to choosing the right auto insurance company is to consider the type of coverage that you need. For instance, if you have a less than perfect driving record or past credit problems, you may want to compare auto insurance costs from companies who specialize in giving customers a second chance to earn discount auto insurance. If you own more than one vehicle, you may find that some auto insurance companies will offer cheap auto insurance rates in exchange for becoming your exclusive provider. In other words, transferring all of your policies to one company may result in discount auto insurance at its best.

The next step in choosing an auto insurance company is to look for one that rewards customers based on a good driving record. One of the keys to a respectable auto insurance company is flexibility when it comes to coverage selection and incentives to promote better and more responsible driving. In addition to comparing auto insurance rates and plans, take the time to review the auto insurance company’s policy on discount auto insurance rates for those with a safe driving record.

It’s important to realize that auto insurance rates vary from one area to the next. For instance, Pennsylvania auto insurance may be less expensive than New York auto insurance or vice versa. Regardless of where you live, however, most will agree that auto insurance is expensive and it’s essential that you compare auto insurance rates to ensure that you are getting what you pay for. A good auto insurance company, for instance, will offer various deductibles, competitive auto insurance rates and some type of coverage that allows for the temporary payment of medical bills in the event that you ever become involved in an auto accident. If you are injured as a result of another motorist’s negligence, many auto insurance companies will pay for your medical bills and later seek reimbursement from the faulty individual(s). This is a great relief to many, especially those who may not otherwise have health insurance.

As a final thought to choosing an auto insurance company that offers the best auto insurance rate, free auto insurance quotes and/or a flexible program that can be customized to fit your individual needs, simply take the time to shop around and compare auto insurance from more than one company prior to making a final decision.

The information in this article is designed to be used for reference purposes only. It should not be used as, in place of or in conjunction with professional financial or insurance advice relating to auto insurance quotes, discount auto insurance or auto insurance rates. For additional information or to receive an auto insurance quote, contact a local auto insurance company.

When the Illegal Immigrant Has a License and Auto Insurance

Of late, there’s been so much focus on the illegal immigrant in the media that we in the insurance industry have decided to have our say, as well.

Here goes.

Of all the fifty US states, there are only twelve that give driving privileges to the undocumented immigrant. In the other states, any undocumented immigrant that drives does so without having been issued a license. Without a license, you can bet your bottom dollar that there is no auto insurance to cover an accident. If a legal driver is the not at fault party of a collision, not only will there be no coverage to pay for damages from the other party, but it’s likely there will be no out-of-pocket money to speak of in compensation as well.

Good reason to invest in uninsured motorist of underinsured motorist insurance, huh?!

In any case, the danger involved in illegal immigrant driving has prompted the few states that do offer some form of driving licenses to the undocumented to actually expand the eligibility. With the invitation from CA, CO, DE, DC, HI, MD, NV, NM, UT, WA and VT to apply for a driving license, the undocumented immigrant who passes the written and driving test has better odds of safe driving and can actually purchase protective auto insurance coverage.

This means of course that in the event of a vehicular accident, the illegal immigrant that lives and drives in one of the areas where the privilege is open to him or her can have the shielding insurance to cover damages.
But the illegal immigrant who passes the driving test required in order to acquire a legal driving license has other more inclusive options that, like any US citizen, can shield him or her more comprehensively.

These include the options of:

Collision Insurance Coverage – this compensates for the cost of damage incurred to the at-fault driver as well

Comprehensive Insurance Coverage – this provides payment for other losses incurred as a result of a stolen automobile, car vandals, or the damage from a natural disaster

Uninsured/Under-Insured Motorist Insurance Coverage – this provides coverage for damages resulting from an accident with a driver that does not have adequate auto insurance

Irrespective of your standing in regard to residency or citizenship, if you are a legal driver it is wise to seek guidance and advice from a qualified insurance professional in relation to insurance coverage options that are applicable to your individual circumstances.

Protect Your Vehicle and Yourself With Auto Insurance

Auto insurance is a type of general insurance under which you will be protected against any unforeseen situations. This insurance protects you from any kind of financial distress if in the case of an accident or theft or loss of a vehicle or in any of the described events in the policy. You simply got to meet an auto insurance provider to avail this facility. Once you meet the service provider they will explain you various types of auto insurances available with them and the premium you have to pay, the term of the insurance, benefits, and riders if any.

Knowing all these details is enough to go for auto insurance; however, it is always advisable to read the policy documents properly before signing the documents. It provides property, liability, and medical coverage. Property coverage provides protection against theft while liability coverage protects against any legal responsibilities which are to be performed by you. On the other hand, it also provides medical coverage in case of any injuries and sometimes lost wages and funeral expenses.

In any of the above-stated conditions, both your family and you will suffer huge losses if you do not opt for auto insurance. Opting an auto insurance is compulsory if you are buying certain kinds of vehicles, under which your initial premium will be added to your vehicle’s cost and subsequent premiums can be paid either online or offline. Generally, any auto insurance will stay active only for six months or a year; your insurance provider will intimate you before the expiry of a particular policy.

You can renew the policy if you want to continue with the same one or else you can go to a different service provider. There is an option of modifying a particular policy as per your requirement. You can add few more benefits to the existing policy for a minimum additional premium. These additional benefits are termed as riders which are intended to protect you from any additional distresses.

The insurance is applicable to any kind of vehicles like car, two-wheeler or commercial vehicles. The premium amount varies depending upon various factors like insured declared value, type of vehicle, the age of the vehicle, fuel type, the age of the insured, etc. Opting for auto insurance not only cushions you against financial distresses but also supports your family in case of any misfortune. The small penny you pay today will protect you and your loved ones from the large loss that could potentially weaken you physically and psychologically.

Best Auto Insurance

The truth is that there is no one company or policy that is considered the “best auto insurance.” What is true is that for every individual there is a policy that is the best for you. There are three main types of auto insurance policies available to the average driver; liability coverage, comprehensive coverage, collision coverage.

Generally speaking, liability coverage is the least expensive, followed by comprehensive, then collision being the most expensive. However, there are many more factors that go into the cost of a policy. Age of primary driver, the location of the vehicle to be insured, make and model of vehicle, driving record of primary driver, and even the safety ratings of the vehicle all go into considering the cost of your policy.

By law, every car that us driven in the United States must be insured. The mandatory nature of this can make it tempting to purchase the cheapest policy possible, especially if you are not a rich person. Many people have made that assumption and bought the cheapest possible insurance only to find out after an accident or a theft that the policy they bought didn’t cover anything! The best auto insurance is most likely not the cheapest. Liability coverage does not cover any damage to your car that occurs in an accident, regardless of which driver is at fault. It also doesn’t cover and theft or the vehicle, which could leave you one sorry car-less driver.

Comprehensive coverage will cover a stolen vehicle and is usually only a little bit more expensive than liability coverage. When is comes to auto insurance, it is best to not be a cheapskate because you could end up losing much more in the end. Comprehensive pretty much cover anything other than a collision, such as acts of nature ie. rain or fire.

Collision coverage will give you the most complete coverage and because of this, it is usually quite a bit more than comprehensive coverage, on average 50% more. Collision coverage will cover any damage done to your car from a crash of any kind, whether it be a collision with another car or crashing into a tree. This type of policy will also cover everything that is covered under comprehensive. Although the monthly payments might be pricey they can pay off big time in case of a major accident or any other kind of incident.

Keep in mind that there is always a deductible that needs to be paid when you file a claim. Usually, the higher your deductible, the lower the monthly payments are. One might be tempted to opt for a high deductible to keep their monthly payments down, but this tactic is short-sighted and could bite you in the rear or you ever do need to make a claim.

Hopefully, these tips and pointers have helped you decide on the best auto insurance for you!

Tips and Tricks for Saving on Auto Insurance

Finding the best auto insurance rates can sometimes be tricky. It is absolutely necessary to be insured on the roads, though. In fact, it is required, by Illinois state law to have coverage. Some find auto insurance to be extremely expensive but, there are ways to help make it more affordable. Here are some things to consider to find the ideal price of insurance.

Shop Around

Get quotes from multiple insurance companies, including different types of companies. Also, realize that the lowest number does not mean the cheapest.

Consider Insurance While Shopping for Cars

Some vehicles have lower reliability ratings and other factors that contribute to higher premiums. While researching cars it is important to compare potential premiums for each of your options to ensure you are getting the best deal.

Increase Deductible

By increasing your deductible, you can decrease your premium. Just be sure that the deductible is manageable for your budget and that you have enough money saved in case you need to file a claim.

Bundle Insurance

If the insurance agency that you choose offers bundling, take advantage of it. If not, try to stay with the same company for all of your insurance needs. This results in discounts in most cases.

Keep Good Credit

Having good credit helps lower insurance rates. Researchers have found a significant relationship between your credit score and amount of claims filed. Insurance companies tend to rely on this correlation to define your financial responsibility.

Low Mileage Discounts

Research mileage averages and see if you fall below that. Do not be afraid to ask about a low mileage discount. This discount could also apply to you if you are someone who carpools.

Group Insurance

Some people fall into the category of people who receive insurance from their employer or other groups they belong to. Some insurance providers offer discounts on auto insurance to people who fall into this category.

Other Discounts

Ask your agent if there are any additional discounts you are qualified for based on certain qualities such as how you drive, etc.

Purchase 10+ days before you actually need it

By purchasing coverage before you need to use it helps drive down premium costs.

Pay in Full Up Front

If possible pay in full, rather than setting up a payment plan. The amount you save annually will add up.

Get New Policy When You Move

Especially out of state! Some states have significantly higher insurance rates than others.

Older Cars

Buying a brand new car, just released is exciting, but if your priority is lower insurance premiums it is better to purchase models that are 5+ years old. They are considered more reliable.

VIN Number for Quotes

The purpose of this is to see if you are eligible for a discount if you have anti-theft devices.

Go Paperless

Some companies value using less paper and offer a small discount to those who opt out of using paper which is not hard to do in this age if technology. It is a small offering, but it adds up.

Insurance Vocabulary

Be sure to understand what the verbiage means so that you have a good idea of what you actually need covered and what questions you need to ask your agent.

Automatic Billing

This is another way to save over time, similar to going paperless.

Education

Some insurers offer discounts based off of the level of education you have. For example, some offer discounts for college graduates.

Teen Drivers

Teen drivers are known to drive up insurance costs, since they are more accident prone. But, if they are in a college that is 100+ miles away without a car some insurers allow them to be temporarily taken off of the plan. Additionally, most companies offer a “good student” discount implying that they correlate this test of intelligence with responsible driving habits. Proof of a safe driving class can also save some money on teen auto insurance.

Change Insurance When Lifestyle Changes

If you expect to drive less due to retirement or other factors, report this to your insurer. This can reduce the amount that you have to pay for insurance.

Most importantly, be aware of your needs and form a relationship with your insurance agent. Awareness is the first step towards savings.

Auto Insurance Rates: Do They Rise As We Age?

The auto insurance industry realizes that the senior population has a lot of driving experience under its belt. That does go a long way as far as safety is concerned, and, seniors are rewarded in good measure with low premiums on their policies. But, by the same token, no one can deny the fact that as the years go by, eyesight becomes weaker and people are not as quick to react as before. In addition, compromised health situations tend to develop, necessitating medication.

Studies indicate that all this can translate into car accidents – a significantly large amount of these involve tragic fatalities. The insurance companies know about the resulting damages, injuries and death because of related claims that are submitted by policyholders. And claims are an expensive drawback that triggers rates to go up.

Before you begin to panic, allow us to reassure you that the premium hike for seniors at a certain stage is rather slight and it can be countered by savings rewarded to those who attend approved safety driving classes, as well as discounts that many insurance carriers offer.

For clarity, please view the following synopsis of the varying insurance developments in the course of the senior’s driving life.

• If you are in the fifties, you will essentially enjoy lower premiums than those older and younger than you. This is because you typically are still in good health and you still have quick reflex reactions.

• From sixty years of age to sixty-five, you still will be getting the less expensive auto insurance premiums – something that may shift afterwards.

• If you are in the 65-69 year old category, you might see your auto policy increase in rate. In this case, it is in your interest to seek an insurance agency that has the ability to shop the network to see if you can get a cheaper policy.

• Between the ages of seventy and seventy-nine you will generally see an increase in premiums. This is related to a higher risk of an accident. It does not mean, however, that you will not find a cheaper plan elsewhere with a company that understands you still may be in good physical shape and are not personally prone to a collision.

• Once you hit eighty, you will be viewed as a high-risk to the auto insurance industry and retroactively be billed higher rates. If you choose to continue driving at this age, speak to an experienced independent agency that has the ability to shop for cheaper premiums and get applicable discounts to lower your premium.

Whatever your situation, remember to take all precautions in driving safely. After all, it’s your well-being and others on the road that is at stake.