About Car Insurance

Buying a car is no more a luxury rather it has become a necessity for everyone. Be it a bachelor or a family man, a married or a single woman everybody needs a car today. Although the process of purchasing a car is easy, the process of buying insurance for a car is equally difficult and sometimes it may be very confusing and annoying. At times it is very tough to compare the rates correctly because the insurance policy coverages may vary from one company to another.

However, it will be very beneficial for you if you can have knowledge of some personal factors that the insurance companies use to establish the insurance rate of your car.

The article features some vital factors that affect your car insurance rates which are:

1. Driving record is a must - The insurance rate of your car is determined by the number of miles travelled by you every year, your ticket and accident history etc. For instance, suppose you travel very less, then your probability of encountering an accident will also be less and hence there are less chances of making a claim. Generally the insurance companies prefer individuals with a clean record which means a past without any accidents and tickets, moving violations and DUIs (Driving under the Influence).
2. Credit score - If you have a good credit score you can be benefitted by the insurance companies. Good credit score means the individual is a responsible person and makes timely payments. Individuals with a good credit score are preferred by the insurance companies. Individuals with a poor credit score are looked upon as irresponsible people and any insurance company doesn't prefer a person who has a record of missing payments.
3. The type of your car - The model of your car, the brand, the anti theft and security devices installed in your car everything matters a lot. The more protected your car is, the more inexpensive it will be to insure it. Moreover, the more expensive your car model is with expensive spare parts which can't be found easily, the more it will be pricey to insure it.
4. Whether married/unmarried - According to the insurance companies there is a less probability to encounter accidents in case of married people as compared to unmarried people. The plain reason is married people are more cautious at the time of driving, whereas unmarried people drive recklessly without worrying about anything. Thus, if you are married you can have the benefit of lower insurance rates as compared to singles.
5. Your profession - Your profession is a major factor in determining your car insurance rates. If your job requires a lot of travelling on the roads and you cover a lot of miles driving on the road, there are chances for you to get higher insurance rates. The insurance companies generally prefer people who travel less on the road and therefore the probability of encountering an accident is also less for them.

How Brokers in Auto Insurance Can Save Your Money

Looking at the wide array of lucrative offers presented by insurance companies, choice of the best suiting insurance plan can be daunting. Insurance brokers can be the torchbearer for you in this respect as they can guide you in zeroing down on a perfect plan, economically.

Why hire the services of Auto Insurance Brokers?

Why it is advisable to hire the services of an insurance agent? This is because these individuals, being professionals from insurance industry, are adept with the available options. They know which insurance plan is apt for you and besides, their information network keeps them abreast with the latest plans & premium amounts. Therefore, the fee you pay them is worth the expertise and the efforts which eventually leads to a substantial premium cost saving. This way, you add value to your money.

Identifying competent auto insurance brokers

Competent auto insurance brokers are professional enough to spend some time in person with their clients so as to know significant aspect like their annual budget over premium amount or coverage required. A good adviser always knows that this is the best way to offer a workable insurance plan amongst all other car insurance policies presented by different companies.

On the other hand, a less competent insurance agent may market himself as the best guy around but may not take enough pains to hand you over a good policy. Quality being of utmost importance, you cannot afford to waste time and money with unprofessional and incompetent people out there.

As a smarter way to get a promising insurance agent, you can run through yellow pages, search online and read customer reviews. Professional & genuine agents usually own a website with quotes of various insurance companies and with valuable tips for new & existing car policy holders.

How an Auto Insurance Broker saves you money

This is the million dollar question particularly because you pay a good sum as brokerage. But looking at it differently, you understand that this is the cost for a high level of expertise and has range of benefits:
A competent agent and your adviser in auto insurance will buy you such a policy that is most relevant to the age & condition of your car. Lucrative coverage plans may look too tempting but this individual actually saves your money by avoiding unworthy plans.

Good insurance agents know the importance of coverage in case of a claim and therefore, will advise you a company whose plan can deliver more value for money, as compared to others.

Your auto insurance broker advises you selected policies from such companies which allow a lump sum premium payout. This sum is certainly quite lower as against the premium paid quarterly or half yearly.

In a nutshell, you can count on numerous benefits like time saving, reduced expenditure, etc. when you hire a good auto insurance broker. And if you use the wisdom shared here, you are far sure to get an insurance broker who surpasses your expectations in terms of cost and services.

Finding Low Cost Auto Insurance

One important thing you must think about when seeking low cost auto insurance, is if the policy genuinely will cover you completely, regardless of the state's limits. For instance, the state requires you to purchase a policy of $50,000 and so you find a policy that is $50 a month. You may think you are protected, but what happens if you were to cause an accident where someone is injured severely. More than likely, the $50,000 limit on your policy would not be sufficient to cover the costs you would be responsible for. Therefore, the cheap payment each month would not be really as cheap as it sounded. An independent insurance agent can help you find a policy that can completely protect you, at a price you can afford. Here are some tips to finding low cost auto insurance:

1. Finding the Right Insurance Carrier - An independent insurance agent represents many different insurance carriers. The advantage this gives you is that it allows you to search multiple carriers to find the policy that fits you. If you require insurance for your home, auto, and motorcycle, you may find that 3 different policies from different insurance carriers. Having an independent insurance agent that represents all 3 carriers, allows you to be able to easily manage your policies, all from the same carrier. Be sure to tell your insurance agent, up front, about any traffic tickets, accidents or violations on your record. This will help your agent be able to find a policy that fits your needs, at a price that fits your budget.
2. Discounts - Talk to your independent insurance agent about discounts that may be available on your policy. Renewing a policy, safe-driving courses, a clean driving record and updated safety equipment are all ways you can obtain a discount on your insurance premium. If you are a student driver, good grades can yield a car insurance discount.
3. Changes to your policy - Raising a deductible or dropping coverage are options to lower you insurance premium, but these decisions must be made with caution. Before you do either of these things, it is wise to speak with your independent insurance agent and evaluate your finances. If you raise your limit from $50 to $1000, but you do not have $1000 accessible to you in a savings account, the amount it would save you might not be worth it. The same is true for dropping coverage. If your car is 10 years old, fully paid for and only worth $3,000, it is possible that dropping full coverage is a smart decision. However, if you do not have the money to replace the vehicle if you were to be involved in an accident, it may not be a smart decision. Speak with your independent insurance agent and evaluate your finances before you make either of these decisions.

It is absolutely possible to find low cost auto insurance that still protects you in the case of an accident. However, it is important to make smart decisions when finding a policy. Remember, sometimes, the cheapest policies are not always the best and can cause you to incur risks that can hurt you financially. Before you make any insurance decision, be sure to speak to an independent insurance agent to help you find the best policy for you, your car, and your budget.

Understanding the Expense of Car Insurance

It is hard to understand why car insurance is so expensive. This drives them to try to find the cheapest fleet insurance available on the insurance market. Understanding how insurance is priced will allow people to find the cheapest policy with the most benefits they need.

Car insurance premiums are at a high level that can eat into budgets. The cost is so high because the cost of claims is high. Insurers will bump up premiums to protect their finances, even though many say they will make no profit. Car insurance claims are often fraudulent and it makes honest motorists pay the price.

Insurance companies can find over 2500 fraudulent claims each week. Insurers have established the Insurance Fraud Register in order to track people who are known to be fraudulent to combat the problem. Home insurance frauds are most common, but dishonest car insurance claims are the most expensive with people citing whiplash injuries.

Whiplash injuries are a problem since there is no real medical proof whiplash has occurred. It will not show up in X-rays or scans. Only the person who has been in an accident can know if they truly have whiplash. Everytime there is a claim for whiplash, car premiums go up. There are plans to cut the number of claims down by making it easier for insurance companies to challenge whiplash claims.

There are also plans to ban referral fees in personal injury claims. Personal injury details are often sold by car insurance companies to lawyers which leads to increases in compensation claims.

Personal injury claims relating to road accidents are rising steadily at 60 percent, even with roads getting safer and a gradual 20 percent fall in accidents. A ban may eliminate excesses of the compensation culture, leading to a drop in premiums.

Solicitors will also be capped so the most that can be charged in fees for a traffic accident case can be 500. The insurance industry is fighting uninsured drivers on top of all of this. There are over a million uninsured motorists on the roads who are costing responsible people more money.

Driving without car insurance means no premiums are paid, but the insurance company still has to cover costs of injuries and damage to other persons in the car or in the event of an accident. Uninsured drivers can add to the average car insurance premiums. These drivers kill over 150 people and injure over 23,000 other drivers every year.

Legislation is slowly being introduced to have higher penalties for uninsured motorists. This is called the Continuous Insurance Enforcement. The registered keeper of the vehicle must make sure their vehicle is insured at all times, even if it sits in the garage most of the time.

The only way motorists can get around the Continuous Insurance Enforcement is to declare a car off the road. Penalties for breaking rules are harsh. There will be fixed penalty fines and the vehicle can be clamped, impounded, or destroyed. In serious cases, motorists could face prosecution and huge fines.

Dishonest drivers will push up car insurance premiums for everyone. It comes down to the risk posed to the insurer. For example, women are safer drivers than men, but gender is no longer taken into account. However, age is still a factor in the cost of premiums.

Occupations can also increase the cost of car insurance cover when some jobs are considered a larger risk than others. When driving the car for business purposes, the insurer should know about it. Specialist policies need to be chosen for this kind of car use.

Understanding Business Car Insurance

When employees are given cars for business purposes, there is a lot of liability that lands on the company. This is why it is important for companies who perform this practice to get proper business fleet insurance. Insurance will protect both employees and the company from mishaps.

A standard car insurance policy covers cars for social, domestic, and personal use. This can include everyday driving, such as having a day out, going shopping, or visiting friends. Policies can automatically cover the car if there is a commute to and from regular work. If the car is driven to the same office every day or parked in the same car park, then it would be uninsured.

Maybe an employee needs to drive the car to several different offices and work sites or a colleague takes the car to visit clients. Hundreds of miles a week could be put on the car for business purposes. In any of these cases, business car insurance is needed. It can be more expensive than standard motor insurance, so it is important to get the right coverage for specific needs.

The reason business car insurance is more expensive than standard cover is due to the motorist that is driving vehicles for business and pleasure. This is considered more risky in the eyes of insurance companies. The motorist will cover more miles often in heavy traffic and on unfamiliar roads. Chances of a claim will increase.

Because it is more expensive, people and businesses are tempted to lie about their driving habits in order to bring down the cost of insurance. Applying for car insurance means the insurer will ask about the age and postcode of the driver along with the make and model of the car.

Motorists will also need to give details about the business they work for and the driving habits of the vehicle for work purposes. Being dishonest about the demands of driving for work is committing an offence. This could invalidate the insurance policy and the insurer will not pay out in the event of a claim. This means dues paid for insurance are wasted.

There are different classes of business car insurance that can cover. Details will differ between insurers, so businesses and employees need to check the terms and conditions presented by each company carefully. If commuting to work in the car, it needs to be covered under social domestic and pleasure, or additional cover will need to be arranged.

Motorists will probably need class 1 business use if driving the car to multiple sites or offices in addition to the usual place of work. Insurers also include a spouse on this policy but do not insure the car for business use for other named drivers.

The next level of business car insurance covers the policyholder and a named driver who uses the car to travel to different sites for business purposes. An extensive traveller for work needs class 3 business use.

Business car insurance is not the same as commercial car insurance. Commercial insurance is aimed at motorists using cars for commercial purposes, like a taxi driver or delivery person. Remember the definitions of different classes and their differences between insurers. When the car is a company car, meaning provided by the company for the employer, the company will insure the vehicle as well as own it and lease it.

While motorists and businesses alike do not want to pay too much money for business car insurance, the cheapest policy is not always the best policy. Most of the time, extra is needed for more extensive coverage. This will help cover both the motorists and the business.

A Guide for Teenagers Looking for Car Insurance

In every teenager's life the most exciting day is the day they get their license. It is their road to freedom and preparing for adulthood. Although teens think it is all fun and games driving is nothing short of a huge responsibility. Before they can drive they must think of things like finding a reliable car, as well as getting insurance. Getting insurance is confusing for anyone but it is even more so for a teenager. If you are a teenager, or the parent of a teen who is looking for insurance this is an easy to follow guide to follow when purchasing car insurance for teenagers.

The first thing you should do is look for an insurance company that offers good driver discounts. When you have a new teen driver getting an insurance plan that offers good driving discounts can save you a lot of money. This is especially important for the teen who is working and in charge of paying for their own insurance. Finding an insurance company who offers good driver discounts can get you discounts off your monthly payments, offers you a check for your good driving habits, and more. This is one of the best things for teenage drivers.

Taking an extra driving course is a good idea for teenage drivers. Even though you've passed drivers ed when you take another driving course it may impress insurance companies that you are looking to buy your premium from. These courses may get you a low insurance premium, or even knock off a certain amount of dollars from your premium each month. Either way, this course teaches you to be more prepared on the road and will help you find an insurance company that will be impressed with your driving skills and reward you for your maturity and good driving.

Think long-term, well say five years. For an insurance company, providing auto coverage to a teenager with little to no practical driving experience, no track record in being a responsible safe driver is a huge risk. Try to mitigate this. Buy a smaller vehicle with a small engine to keep premiums down and helps avoid temptation of putting the foot down and break the speed limit. Consider the first few years of driving as a way building a good history. The fewer times you have claimed the more likely insurance companies will look at you as a 'good' risk.

Lastly, you should find an insurance company that can work with you when it comes to monthly payments. Being a teenage driver is not cheap. In fact, when you're under 25 and you're driving, your premium can cost a couple hundred dollars. Luckily, there is a handful of companies that are willing to work with the teenage driver to help make affordable payments each month so you are covered when you are out on the road. This can help you build a long-term relationship with your insurance company and down the road allow you to have a low monthly payment for life. It's a win-win situation for everyone involved.

As a parent you might ask the question of putting them under your own insurance. You can only ask if this will be cheaper overall till their age reduces the premiums somewhat. Of course, you take on some of the risk too in that if there is a claim it will likely raise the coverage for the family as a whole so weigh this up too. The end goal though would be for the teenager to build up their own track record so they can get to lower monthly payments on their own faster.

Being a teenager and a young driver can be a bit frustrating sometimes but it doesn't have to always be that way. This guide can help make the life of a teenage driver easy and will give you the plans you need to get insurance that works for you. It can also help the parents of a young driver understand what their child needs to do and help them work with their teenager when it comes to finding the right insurance company. Don't procrastinate on finding car insurance; it is the most essential thing you need other than a reliable and safe car. Start researching insurance companies today, and remember; a safe and mature driver is a happy driver!

How to Buy Car Gap Insurance

Car Gap Insurance, at first glance may seem a very easy form of insurance to understand. However, should your car ever be stolen or involved in an accident you are protected financially.

So, why is there so much confusion?

Why are the majority of the general public still not aware of how to source the most suitable level of protection?

This could be attributed to the fact that all too often consumers concentrate on the premium price of the policy, in the misguided opinion that this reflects the quality.

Instead, the best and most secure way to buy car gap insurance is to ignore the premium. Yes price is important, however, the way in which your policy performs when you need to make a claim has to be the ultimate acid test.

Making any form of an insurance claim can be stressful. Just the fact that you have been a victim of theft, your vehicle has been stolen or worse, that you have been involved in an accident can be traumatic and financially devastating.

However, this can be compounded when you then discover that you are not completely protected or that your policy will only cover a proportion of your claim.

Instead concentrate on policy terms and conditions. If viable look for a policy with the least amount of exclusions possible.

Understand what the policy exclusions are. Ensure that you know and understand how they will affect you should you need to make a claim.

Check the regulatory conditions. Under no circumstances consider any form of cover if the company or organisation offering the policy, does not have the required regulatory credentials.

Will your policy allow for lifestyle changes?. At the moment you may have no intention of changing or disposing of your car, but lifestyles can change. Financial circumstances may also change and it is therefore important to know that your policy will be able to adapt.

Last but not least. Find out who your policy is underwritten by. The underwriting insurance company is the organisation who will be responsible for settling any claim. There has been a lot of miss-information circulated regarding the geographical location of the underwriter and this importance that this may have should you need to make a claim. The geographical location is instead, personal preference providing that the company is fully regulated and backed by the financial services compensation scheme.

How to Deal With Your Insurance Company

Auto insurance is often taken for granted and treated almost as an afterthought. Drivers know that it is unlawful to operate a motor vehicle without proper insurance, but what about dealing with the claims process after an accident? When it comes to invoking policy coverage and accessing benefits after an accident, many drivers are not familiar with the procedure.

It is important to understand that auto accidents are matters of liability, which means that the insurance company expects them to happen at some point. At a minimum, auto insurance policies protect drivers against claims arising from the damage they may cause to property when operating their vehicles and the injuries they may cause to others. When insured drivers get into accidents, it is very important that they remember the following points:

1. Prompt attention to injuries and to safety is the first priority; to this end, drivers should call law enforcement and first responders if the situation calls for it. The next phone call should be to loved ones, relatives or associates who can help. Calling up the insurance company should be the next step, but there are a few things to remember in this regard.
2. All drivers should take some time to understand what their policies cover and exclude when it comes to auto accidents. Coverage will vary depending on the type of policy, the state where it was issued and the location where the auto accident took place. Understanding policy coverage and exclusions will help drivers insofar as making the right decisions when it comes to contacting their insurance companies or auto accident attorney. To this end, drivers who are already represented by attorneys may want to think about contacting them before speaking with an insurance company representative.

Smartphones and other mobile devices can come in very handy for drivers when they get into auto accidents. These devices have cameras as well as audio and video recorders that can clearly show details about the extent of damage and the overall road conditions at the time of the accident. In some cases, drivers can even take pictures of the documents they show to each other such as insurance policies, license plates and driver's license.

Additional insurance benefits may be available to drivers who have been involved in auto accidents through other policies or through their credit cards, and in some cases that benefits can be substantial. Attorneys who specialize in insurance claims and auto accidents can be very helpful in this regard.

A very important aspect of auto insurance to remember is that accidents are matters of civil law, and that they can be very expensive to the parties involved. Depending on the type of coverage and the jurisdiction, drivers may be able to enhance the benefits they are entitled to when they pursue their cases in court with the help of legal counsel. To this end, it is important for drivers to write down all the expenses they incur as a result of auto accidents. These expenses should include:

• Medical bills
• Time lost from work
• Transportation costs
• And so on ...