Recommended Auto Insurance Quote Sites You Should Know About
Archive for August, 2007
High Risk Without Auto Insurance
By James Tam on August 19th, 2007
It is mandatory in most states of America for citizens to hold some kind of an insurance cover. While this is usually limited to liability insurance in most cases wherein your insurance company pays for the damages caused if the accident is your fault, there are still vast number of Americans who don’t have any sort of cover for their vehicles. Experts have always stressed about having an adequate cover, more than that required by most state laws (as these laws only pertain to third party liabilities, but not the damage caused to you, if the accident was someone else’s fault, or due to conditions out of human control), however, insurance continues to be, in the eyes of most Americans, money that is only wasted.
Statistics indicate that drivers between the ages of 20-24 cause 15.3% of all automobile accidents in the country. While at the same time, this is the age group that is most likely to avoid getting an automobile insurance for their cars. The reason? Fresh college graduates have lot of debt in the form of student loans. Apart from this, most also have huge debts from credit cards, which are made so easily available these days to college students, with credit card companies entering college premises to distribute these “free cards”.
Also coming fresh out of college may seem like liberation, but with this comes a whole lot of responsibilities, various bills, taxes, 401k deductions etc. that is simply too overwhelming for most students to manage. Car insurance is the obvious payment that can be avoided very easily. While managing so many things, skipping car insurance may seem like a good idea, what most of these young men and women don’t consider are the consequences that may arise due to such neglect.
While there are obvious penalties that are levied by different states if you do not have the minimum required insurance, costs of not having insurance can be much more than this. Massachusetts, for instance, charges fines between $500-$5000 in addition to a year in jail, while states like Florida, Louisiana, Connecticut and New Jersey impound vehicles that do not have the minimum cover according to the law.
Depending on how soon can you get back your car, this may cost thousands of dollars. However, these are just fines that will need to be paid if you are caught without any insurance. Now imagine being involved in an accident. There will not only be legal proceedings, but you might be also required to pay all the medical bills of the victims, which could run into hundreds or thousands of dollars.
Getting auto insurance doesn’t seem like such a bad idea now. The irony is that the fines to be paid for not having auto insurance can usually cover your car for 1-2 years. So if you consider in the long run, getting adequate cover is usually much cheaper, and saves you a lot of trouble.
Credit Ratings Affect Car Insurance Rates
By James Tam on August 13th, 2007
You may already be aware of the fact that creditors use your credit ratings for determining your credit limit and the applicable interest rates, but are you aware that your credit ratings can also affect your car insurance rates? If not, then you certainly need to do a reality check to find out exactly how your credit ratings affect your car insurance rates.
There is no doubt a huge difference between applying for a loan and buying a car insurance policy, but if you look closely, you will realize that there are many commonalities as well. The most glaring similarity is that in both the cases, you are required to fulfill your payment commitments.
In case of applying for a loan, it is the monthly installment that you are required to pay and in case of buying a car insurance policy, it is the premium you are required to pay. Now, since your credit ratings basically display your ability to fulfill your payment commitments, it becomes quite obvious as to why insurers have started scanning your credit reports for determining your car insurance rates.
Earlier, auto insurance companies just used to consider your age, type of car, driving record, and claims record for determining your car insurance rates, but now your credit ratings play a major role in determining your auto insurance rates. So, if your credit ratings are not good enough, get ready to pay higher insurance rates. There will be no escape from rising car insurance costs even when you might be paying your premiums in time, have a decent driving record and may never have filed an auto insurance claim in the past.
So, what is the solution? Well, the answer to that is quite easy – “you just have to improve your credit report”. However, implementing that may pose a challenge because negative entries on your credit report remain there for seven to ten years before becoming eligible for deletion. This is why it is recommended that you take proactive steps rather than waste your time and effort in finding a cure.
It may take some time, but if you start on the right note, i.e. limit your credit usage, and promise to continue on the same lines, you can certainly improve your credit ratings and consequently become eligible for low car insurance premium rates. If needed, you can also get help from financial experts who will tell you exactly what you should be doing to improve your credit ratings and your credit score.
Vintage Car Insurance
By James Tam on August 5th, 2007
Vintage cars are pieces of history that we want to preserve for ourselves, and our future generations. For many, it is the style and the status symbol attached with these cars that make them so attractive. Vintage cars are those cars that are manufactured from 1903 through 1933. There are many owners who have a fleet of such vintage cars as their collection, and they preserve and maintain these painstakingly, taking it out on very few occasions, if at all.
A vintage car that is in a working condition is obviously much sought after than a model of a car that just sits, and cannot be taken out for a ride. A weekend is a good time for such proud owners to give some time to their indulgences. Taking out a vintage car on a bright sunny Sunday morning, maybe for a ride or to the nearest course for a round of golf seems apt for such car owners.
The fact remains that vintage cars are very costly to maintain, and especially in a good working conditions. Spares not being available commonly do not help things, and there are not many people out there who are qualified to work on a vintage car if there happens to be some problem.
Also, one of the trickiest parts is the insurance cover for such cars. Many of the major Car insurance companies do not recognize vintage cars as special, and they only offer a cover that is offered for a new car. This is not very helpful for vintage car owners as these cars are indeed special and ideally would require an appropriate cover.
It is a general public perception that vintage car insurance is very cheap as compared to modern cars. This is not always the case, since such special insurance is tied to various conditions. The insurance company would want that such a vintage car has a very limited mileage, and the vehicles need a good protective garage in ideal conditions. The assumption is based on the fact that such cars are not used for transportation, but are collector’s items. So such cars should not be taken on the roads that often.
Also, putting a value to such cars is very difficult, and there might be difference between the owner’s estimation of the car’s value, and the insurance company’s evaluation of the same car. It is beneficial if you and the insurance company can decide on a value fixed by a third party that specializes in valuation of vintage cars.
You should make sure that the insurer guarantees the car’s genuine agreed evaluation. What this means is that if your car gets stolen or is damaged beyond repair, then you will get the full money that is agreed upon as the value of the car.
Car Insurance Policy For Dummies
By James Tam on August 5th, 2007
A car insurance policy is one of the most important aspects associated with cars, and their safety. This is the major reason why most, if not all, states require at least some kind of policy. Apart from protecting the vehicle, and its riders, it also saves your hard earned money if you happen to get stuck in a legal mess after a nasty accident.
Hence car insurance is very important for both life, and property. With so many different forms of insurance, and so many insurance companies, you should have some basic knowledge as to what a particular type of insurance covers. This also makes it easy to shop as you can directly compare between offers made by different companies.
Insurance premium is an amount that you pay your insurance company at regular intervals. This amount is arrived at by grouping various kinds of coverage. The amount of this premium to be paid is calculated by arriving at your risk factor.
There are various conditions that are considered to determine whether you pose a higher risk, or a lower risk, and your premium is set accordingly. Usually teens are charged more premium than adults. However, adults who have poor credit history are also charged a higher premium.
Opting for higher deductibles can reduce the amount of your insurance premium. Deductible is the amount that the company charges you for every claim that you make. However, it is strongly recommended to shop around before deciding on a company and committing, as there can be a significant difference in rates between different companies, even for similar policies.
Liability insurance comes into picture when you are the cause of damage to other vehicles, or personal property. The insurance company pays the person whose property is damaged, on your behalf. The amount covered will depend upon the level of liability you carry with the policy. In case of free and clear title of your vehicle, you may be only required to opt for liability insurance by law.
Comprehensive coverage covers the damage done to your vehicle for no apparent fault of yours. This could be damage caused buy natural phenomenon like a hailstorm, or maybe public vandalism, or even a windshield broken by a stray baseball.
Collision coverage covers for the repair or replacement of your vehicle (as the case may be) after an accident. This insurance covers the car, as well as the driver. There may be many other benefits bundled with this coverage. For example, some companies cover the guarantee for the repair work if you carry it out with a shop that they have a tie up with. This saves the company some money, and you benefit by the quality of the job.
Why You Need Business Car Insurance
By James Tam on August 4th, 2007
The use of a car for your home-based business brings with it the dilemma of whether you should use commercial or personal car insurance. This is because depending on the usage of the car, each would serve a purpose. Most personal auto insurance policies also have enough coverage to protect the investments of owners, but this does not apply to all owners and their policies.
If the car, which is used for your home based business purpose is used mostly for transporting or driving your clients in and around the city, then a personal cover would suffice. On the other hand, if the business requires the regular transport of goods from on place to another then the better option would be that of commercial auto insurance. This is because the commercial policy provides coverage for both, the car and the goods in the case of an accident.
When you are insuring your car that is used for your home base business, you are required to pay attention to the liability and the protection you receive for your personal assets as well as your business assets. It is because of this that the liability limits and the deductibles play a major role in deciding the amount you pay as car insurance. If the insurance limits are higher and the deductibles are lower, you will be required to pay a higher rate as premium.
The other factor that the insurance company takes into consideration while calculating the premium is the miles on your car. They check to see how much you drive or are likely to drive. They also need to know who drives the car, your insurance history along with your driving records and also if you have made any previous claims and the nature of these claims. All these help in determining the rate of car insurance.
Now depending on the type of business purpose the car is used for, the insurance cover needs to be considered. If your job requires you to carry your own equipment from place to place and you have a home-owner’s or renter’s policy, then your business equipment will have no or minimum coverage. To ensure that the car along with the equipment has sufficient coverage, you may be required to invest in a rider. Here you will be guaranteed insurance on both the car and the equipment essential for the smooth functioning of your business.
