absolute liability - the insurance company’s responsibility to a third party regardless of any statutory breaches on the part of the insured
actual cash value - replacement or market value less depreciation
adjuster - a person who acts on behalf of an insurance company or an insured in the settlement of claims
agent/broker - a person who solicits or offers insurance products on behalf of insurance companies.
at-fault accident - those accidents which occur because of your own actions. Comprehensive claims such as windshield damage, or stolen stereos are not considered accidents. They are comprehensive claims made against that portion of your coverage, if you carry it for damage to your own vehicle.
cancellation - the termination of an insurance contract before it expires.
cancellation (flat) – an insurance company cancels a policy as of its effective date, without charging any premium to you. This may happen if an insurance company realizes it has given an incorrect quote. It may cancel the policy and refund all your money. It may also do this if they void the policy. It may void a policy if it determines that not all material information was provided to them to properly assess the risk.
cancellation (pro-rata) – an insurance company cancels a policy and adjusts the premium in proportion to the time the coverage was in effect. It refunds a portion of the premium back to you.
cancellation (short-rate) - an insurance company cancels a policy at your request before the expiry date and charges a premium larger than what would be applicable for the period insured. This must be
provided for in the policy. Generally, this increased charge is made because fixed expenses have been incurred by the insurance company. Insurance companies often use fixed rate tables to calculate the premium they have earned.
claim - a demand for payment for a loss under an insurance policy
deductible - The amount of a claim that you are required to pay. For example, if you have $1000 worth of damage done to your car from vandalism and your deductible is $500, you will be responsible for $500 of the cost. The insurance company will pay for the other $500.
driving convictions - these are any offences under the Motor Vehicle Act or the Criminal Code of Canada. They include speeding, careless driving, impaired driving, not wearing a seatbelt. These convictions are included on your drivers abstract which insurance companies are able to obtain as part of their underwriting rules. If you have one or more driving conviction, your insurance premium will likely increase.
endorsement - a form amending the terms of the policy. Sometimes called a rider.
insurance premium - the price you pay for the insurance policy, based on the risk assessment
lapse in coverage – Companies rate a policy based on continuous insurance history. A short lapse in coverage is no longer a reason to decline someone insurance. It is however a factor in the rate charged by an insurer. Before cancelling a policy for a short term, check with your insurance broker to determine how the lapse in coverage will affect you and future insurability.
not-at-fault accidents - A not at fault accident occurs by action other than your own. For example, when you stop at a stop sign and someone hits your rear bumper. (Please note, a windshield or a stolen stereo are comprehensive claims and while they are also not
at fault they do not involve the vehicle moving.)
risk - the likelihood that a person or thing insured may suffer injury, damage, or loss. third party liability insurance - protects the insured against liability arising out of bodily injury or property damage to others underwriter - a person who decides if an insurance risk is acceptable. He/she decides in what amount and on what terms the insurance company will accept the risk. Also called an insurer.
underwriting rules - rules used to assess the risk in insuring you. In Nova Scotia, these rules are established by the insurance companies and are based on their own business needs.
December 19, 2007
Commonly used auto insurance terms
December 18, 2007
Answers to "Auto Insurance" Frequently Asked Questions about
Q: What is “no-fault” auto insurance?
A: No-fault insurance, also known as PIP or Personal Injury Protection, provides coverage for certain medical and rehabilitation expenses from injuries sustained in an automobile accident. It pays benefits for injuries whether or not the insured person is negligent or “at fault”. (Property damage is the responsibility of the at-fault party.) The no-fault law expires on July 1, 2003. All policies with an effective date on or after July 1 will be issued under a “tort” auto insurance law...
Q: What is “tort” auto insurance?
A: A “tort” is a civil wrong, but not a crime. In auto insurance, a tort system means that a determination of fault in an automobile accident is made. The party at fault or his or her insurance company pays medical and rehabilitation expenses to the injured party, as well as property damage. An injured party may also sue for other losses including lost wages and pain and suffering.
Q: What is “liability” insurance?
A: Liability insurance is generally defined as coverage for bodily injury you cause to another person or for property damage you cause to another person’s property through negligent use of your vehicle. The minimum amount of liability insurance required by Colorado Law is as follows:
! $25,000 per person for bodily injury;
! $50,000 per accident for bodily injury; and
! $15,000 per accident for property damage.
Q: What happens to my auto insurance policy on July 1, 2003?
A: The current no-fault law expires on July 1, 2003. That means that all policies that are issued or renewed on or after that date will be written as tort policies. However, if you have a policy that was written before that date but expires after that date, you will still receive the benefits of your “no-fault” policy. For example: Mary has a no-fault policy that was issued on April 15th and expires on October 15th. She is injured in an accident on August 20th. Her medical and rehabilitation expenses will be paid under her no-fault auto insurance policy, regardless of the fact that the no-fault law expired on July 1st. These benefits will be paid regardless of who was at fault in the accident.
Q: Why would my no-fault benefits be paid if the law has expired?
A: Your current auto insurance policy is a contract. It was written under the laws of Colorado at the time you entered into that contract and prior to the expiration of no-fault. The new law does not interfere with your contract and the insurer is required to pay all benefits as outlined in your policy.
Q: If my policy continues until after July 1, can my insurer cancel my no-fault policy on July 1?
A: Not unless you approve of the change. Your auto insurance policy is a contract and cannot be changed mid-term unless you agree to such change.
Q: I don’t want to continue PIP coverage after July 1. Can I buy a tort policy even if my current no-fault policy continues past July 1?
A: Yes, as long as both you and your insurer agree to the change. As the policyholder, you may contact your insurance agent to discuss whether changing from a no-fault to a tort policy is the best thing for your individual needs.
Q: Will I be able to purchase coverage for medical expenses under a tort system?
A: Most, if not all, auto insurance companies will offer limited “medical payments coverage” to their policyholders. This provides coverage for medical bills incurred by you and your immediate family if you are at fault and injured in an auto accident. Check with your agent about the availability of medical payments coverage.
Q: What happens if I am at fault in an accident, and my medical expenses exceed the limits of my medical payments coverage?
A: Under a tort system, it is assumed that the negligent party is responsible for damages. Either you or your health insurance will pay for your medical expenses that exceed the limits on any medical payments coverage under your auto insurance policy.
Q: What happens if I am injured by a negligent driver? Do I have to go to court to get my claims paid?
A: In the vast majority of cases, the answer is no. Typically, the auto insurance companies settle on a determination of fault in a particular accident, and benefits are paid accordingly. Only in few cases where there is a dispute about who is at fault or to the extent of the damages will court action be necessary.
Q: What happens if I am injured by an at-fault driver who does not have auto insurance?
A: If you have purchased uninsured and underinsured motorist coverage, your insurance company will cover your medical expenses. If you have not purchased uninsured and underinsured motorist coverage, you or your health insurance will likely pay for your medical bills. You may of course sue the at-fault driver, but uninsured motorists typically do not have substantial assets from which to recover damages.
Q: How much liability insurance should I carry?
A: You should speak with your agent about your particular circumstances to ensure that you have enough insurance to protect your assets in the event you are sued for damages. Under the old PIP law, if you injured another person in a motor vehicle accident, that person’s PIP coverage would cover their medical expenses. Under the new law, your bodily injury liability coverage will cover those same expenses if you are at fault.
December 15, 2007
Auto Insurance- Shopping For Auto Insurance Guide
By: Brad Stroh
With auto insurance premiums rising across the country, comparing premiums for similar auto insurance coverage has become the ultimate test of your shopping savvy. Have you checked with every insurer to be sure you’ll be paying the lowest premium for the most coverage? Did you check on all the discounts for which you might be eligible, such as good-grades discounts for your high school student, driver’s education and defensive driving course discounts, anti-theft device price breaks, and multi-car rates? Putting it all together to know you’re getting the best price is challenging, but the money you’ll save on your premiums makes the extra effort well worth it in the long run. Follow these three steps to be sure you’re making the right choice.
First, log onto http://www.naic.org to find out if there are any online resources that pertain to your area. This is the website for the National Association of Insurance Commissioners (NAIC). Find the link to NAIC States and Jurisdictions. From there, you can find out if your state or area has a website listing the current rates of local auto insurance companies. If so, you’re already a step ahead of the game. Just keep in mind that the rates quoted on these sites cannot take your personal situation into account. If you have bad credit or a poor driving record, your premiums will probably be higher than those listed on your local insurance commissioner’s website, but at least you can study trends of different companies in your area from an unbiased source, making useful comparisons that can save you time when you’re calling around. Even if your state doesn’t have a site, the NAIC website contains consumer guides with valuable information to which you may want to refer during your search.
Next, you need to shop around for coverage. Be honest with the companies you call or visit online about your personal situation, your insurance needs, and your driving history. When you receive a quote, confirm that you know exactly how much coverage is being offered for the premium amount mentioned. Remember that your auto insurance is actually a group of several different types of coverage. Ask how much coverage the quoted premium provides to you and how much each coverage is worth. Make sure you’re comparing similar plans, and know what’s required by law in your state.
Finally, it’s time to talk discounts. Once you’ve narrowed your choices, compare the discounts offered from one insurer to another. Get a quote on the final premium amount after all discounts are taken. One insurer may offer you two discounts good for 5% each while another may offer you only one discount. However, if that one discount offers you a savings of 15% total, it will make more sense to purchase your policy from the second insurer. Take a look at the bottom line (the final premium amount) for a true comparison.
Look at the information the NAIC has to offer you, shop around for the lowest premium and best coverage, and make sure you receive every discount to which you’re entitled. If you follow these steps, you’ll have the peace of mind of knowing you got the best auto insurance deal available to you.
Would You Like To Save Big Money On Your Auto Insurance And Reduce Your Risk Of Auto Theft?
By: David Maillie
With the rising price of gas, skyrocketing health care costs, etc... Americans are feeling the economic crunch. Lets put some money back in your pocket right now and lets take a bite out of auto theft.
The best part is
(1) You don’t have to switch insurance carriers.
(2) Local auto dealers charge $299-$499 for this same service (real price should be $25-$30)- What a ripoff! (Note dealers also charge $200-$1000 for replacement headlights when you can buy headlight cleaner and restorer for under $20).
(3) You can easily purchase it direct from the manufacturer below cost right through the internet!
Police departments, insurance companies, AAA Auto Club, Motor Week, Speedvision TV, and leading consumer groups and publications all recommend window etching as a strong theft deterrent and a great investment.
The top 10 most stolen autos:
1. Toyota Camry
2. Honda Accord
3. Oldsmobile Cutlass
4. Honda Civic
5. Jeep Cherokee
6. Chevrolet trucks
7. Toyota Corolla
8. Chevrolet Caprice
9. Ford Taurus
10. Ford trucks
Did you know that every 19 minutes a car is stolen in this country! Vehicles equipped with a visible theft deterrent system are 4 times less likely to be stolen. Auto etching uses a strong caustic to etch vin #'s and other registered numbers into your car windows (glass is the third most valuable item after plastic headlights and air bags that professional thieves look for - these items are then resold on Ebay and elsewhere by these thieves for quick cash). 95% of thefts are by professional car thieves.
Chemical auto etching is a safe process. No damage is done to the vehicle and it can be professionally done. It is very affordable as its actual costis 70 – 85% less than auto dealer’s charge and has many benefits:
1) It has been proven to enhances vehicle value at resale.
2) INSURANCE DISCOUNTS OF UP TO 35% OR MORE!*
3) No mechanical parts to break down or need repair.
4) SAVE MONEY AND HAVE PEACE OF MIND! – 9 out of 10 auto thefts are by professionals who will not take a car with traceable numbers.
One of the most cost effective security steps is having a security number etched on each window. Start saving big on your insurance today! Auto etch, like headlight cleaner and restorer, is a bonafide product backed and used by the police in every state. It is guaranteed to save you far more than it costs, has numerous benefits, And you can undercut the dealer and buy it without paying their ridiculous prices ($200-$600+)! For more information on Auto etch and/or similar products like headlight restoration kits contact the author below or look up auto etch on the internet. * Insurance discounts can vary by state and by carrier.
Know the 6 Types of Auto Insurance
Car insurance is the most bought type of insurance in the United States of America. There are more cars than people in America and couple that with various States making car insurance mandatory; you have something that is in high demand. This need for insurance will always have people trying to get the best deals possible on the different types of car insurance available. To be informed, the article will examine the different types of car that exist on the consumer market.
Bodily Injury Liability is an insurance policy that covers drivers of another car. If you meet in accident and the other driver is injured then Bodily Injury Liability will cover the medical costs of in the case the other driver is injured in an accident. This mainly benefits policy holder as he does not have to worry about being sued.
The Medical Payments or Personal Injury Protection (PIP) insurance coverage is close to the bodily Injury liability mentioned above. The difference between the tow is the fact that the policy holder and associated passengers are covered in the case of an accident. This means they are entitled to have their medical bills, loss of wages and even death is covered.
Under Property Damage Liability car insurance policy, the insurance company will cover the cost of repairs to the other party’s car in the event of an accident. With this coverage the other individual’s damages will be paid for by the insurance company, while the policy holder would have to pay for his own damage from his own pocket.
The Collision insurance policy is one of the most common and cheapest auto insurance policies available. With collision the insurance company will pay for the damage or repairs if another driver crashes into you. This usually requires drivers to have a deductible and once the deductible is paid, the insurance company will pay for the rest.
Comprehensive coverage is another popular policy for motor vehicle owners. With comprehensive coverage the car is covered from a wide array of things. The car will be protected from fire, theft acts of God and collision with other vehicles. Policyholders need to pay a monthly deductible. Once this is paid in the event of an accident, the insurance company will cover the rest.
Uninsured and Underinsured Motorist Coverage will usually protect the policy holder in the event that someone with no or insufficient insurance crashes into his vehicle. It will also protect against hit and run drivers in the event of that type of accident.
The breakdown of the different types of car insurance policies available helps to make understanding motor vehicle insurance easier. You have looked at Bodily Injury Liability, Medical Payments or Personal Injury Protection (PIP), Property Damage Liability, Collision, Comprehensive, Uninsured and Underinsured Motorist Coverage. By investigating and understanding the different policies, we are able to see what differences and similarities they offer. This enables consumers to have insight and knowledge into the best car insurance for their car and the one that offers the best coverage options.
About the author:
Amazing writer James Dalton has much more insurance related information on his popular websites Birmingham insurance industry
, Tucson Insurance and Indianapolis insurance . Get more insightful articles at his website
Article Source: http://www.Free-Articles-Zone.com
Car Insurance Facts
Deciding for auto or car insurance is not an easy task in the United States. Not only understanding a few factors can change the money you spend in buying car insurance but also helps to get the best quotes and value for your money. Understanding the car insurance can be sometimes very tricky and absolutely confusing and that sometimes lets you take decisions where you end up spending more money and usually the insurance you buy actually doesn’t suit your needs.
That is why here we have tried to simplify the general insurance facts for you so that you can develop a good understanding of this dreaded but compulsive subject i.e. Car Insurance. Here are some very important facts which you should always consider before buying car insurance.
Appropriate Insurance Coverage is important
Generally the half of insurance covers the liability factor that depends on how you are going to use the vehicle. The amount you pay decreases in case for ex. If you are commuting for home to office and vice versa for work and also if your driving record is clean without a speeding ticket. If your driving record is not clean you end up paying more money as insurance premium. The second half of insurance premium covers damage or loss to your vehicle along with comprehensive and collision coverage.
Shopping around pays
Shop for insurance ad always get more than none quote. There are in fact hundred of companies competing for insurance business from you and in many cases you can save hundred of dollars because of multiple quotes. So, shop around for quotes.
Find out insurance discounts
Many companies in general offer discounts to the customers. You can avail the discount if you are buying more than one insurance policy viz. auto and home insurance. You can also get discounts on factors like air bags, anti-lock brakes, daytime running lights and anti-theft devices.
Consider higher deductibles
You could lower your insurance bill by increasing your deductible but before that just make sure you can pay the higher deductible if you file a claim.
Stacking coverage’s while you file Insurance claim
Stacking uninsured or underinsured motorist coverage’s means you can collect from more than one of your auto insurance policies. Most states prohibit this practice, but there are about 19 states that either allow stacking or don't address the issue either through legislation or litigation. Be sure to check your auto insurance contract to see if it's allowed. Probably you are likely pay a higher insurance premium if you have stacked coverage.
Car gives you benefits
Insurers depend on the model of car you buy, its sticker price, features which may reduce maintenance or accidents or theft. So consult your insurer while you finalize which car to buy.
Notify Insurer of Change
If you wish to terminate the insurance coverage notify the insurer of the same. In many states you get penalty for the number of days you go uninsured so notify your company the change in writing or through phone, terminate the insurance and change the company after that.
Go with your budget
It is always recommended that you strictly follow your budget and choose the payment which fits into your budget. You can get monthly, quarterly, half yearly or yearly mode of payments and choose which suits your pocket.
About the author:
Looking for more information on Car Insurance Rates check out carinsurance-rates.net your guide to Car Insurance Rates
Article Source: http://www.Free-Articles-Zone.com
Auto insurance information guide
Auto insurance as we all know is the insurance consumers purchase for their vehicle be it a car, truck or any other automobile. The purpose of auto insurance is to safeguard the vehicle against accidents, theft and any other loss incurred. Auto insurance can cover, the insured party, the insured vehicle and the third parties. Different policies specify the situations under which each of these items is covered.
Like life insurance, auto insurance too has become the need of the hour. A surge in insecurity of the vehicles has resulted in many big and small companies venturing in this area and trying their luck.
There are different types of auto insurances available. The policies vary with the need and wants of the people purchasing the policy. For example certain types of insurance policies include bodily injury liability, property damage liability, medical payments, and collision and comprehension coverage for physical damage to the insured vehicle.
Broadly speaking an auto insurance policy is divided into five parts.
1. Declarations- this part of policy contains personal information about the drivers in your house. This includes their name and address, make and model of the vehicle, vehicle identification number, policy number, duration etc. This part also comprises of basic type of coverage that you purchased and your policy limits and deductibles. It is very important to provide correct information in this area; otherwise the insurance claim can be declined at ease.
2. Coverage Parts- in this option the coverage limits such as liability, medical, collision and comprehensive are discussed. This section primarily outlines what your insurance company guarantees to provide in return for your payment, based on the coverage and coverage limits opted.
3. Exclusions- this section briefs about what is left uncovered by your policy’s limitations. From here you will get to know that what all will be covered when you make a claim and allows you to make rectifications in the policy.
4. Conditions- this section is all about legitimacy i.e. the legal bindings on the insurer and the insured. It includes premium payment obligations, steps to filing a claim, and guidance to resolve disputes.
5. Definitions- also known as fine print, this segment is where terms and the rights of the policyholder and the insurance company are defined.
In several countries it is mandatory to purchase auto insurance before driving on public roads. The least requirement in this area is third party insurance to protect the third parties against the loss, damage or accident by a vehicle. You may or may not get an insurance cover against loss or damage to your own vehicle. While some other countries make the insurance of both the car and the driver compulsory.
Car insurance plans a regular flat charge per-car or per year despite of the extent to which the car is used. There is no adequate statistical basis for the insurers to compare costs used to support price classifications. Other well known methods of differentiation are reasonable estimation, odometer based systems, GPS based system and OBDII-based system.
About the author:
Mansi gupta recommends that you visit http://www.autoinsurancelowdown.com/information/index.html for more information on Auto insurance.
Auto insurance explained
Automobiles particularly cars are quite expensive nowadays. For many people it takes several years of hard work and lot of savings to purchase a car. So it becomes essential to secure a vehicle by the means of insurance. Automobile insurance is the best way to protect you the automobile and the huge amount invested in it.
Auto insurance is basically an agreement between an insurance company and a vehicle owner.
The latter is required to pay premium at a certain fixed tenure while the former agrees to pay for any damage or loss of the vehicle. In many countries it is mandatory to have an auto insurance policy. For this policy does not just provide monetary assistance to a vehicle owner, it is also of great help while tracing a vehicle in case of theft and the like.
Once you make up your mind regarding which car (any other vehicle) to purchase, the foremost thing you ought to do is to decide the amount of liability coverage that you require. For help and further information in this area you can consult your local Department of Motor Vehicles. After you make up your mind about the liability sum, think about the type of insurance you want. There are different types of auto insurances policies available that vary according to their coverage. For instance the comprehensive auto insurance covers all cases of accident and theft of your vehicle. Whereas the Third Party, Fire and Theft insurance covers only those situations of accident when the policyholder collides his vehicle with someone else’s one. The company will not reimburse in case any other automobile hits the insured one. It is at your discretion as to which policy to adopt. The expense of the policy most often varies with its coverage. So the more a policy covers, the higher is its cost.
Thirdly look for the insurance company from where you desire to purchase your desired policy. For this purpose you can check out the sites of various insurance agencies, can acquire online quotes that are totally free of cost, make a survey in your social circle and so forth. However you should know that in order to determine the contemporary rates, companies take the help of statistical history. These rates depend on the money the required to pay on all claims and company business expenses. The rates of auto insurance policy are also related to the insurance company you choose. This is because each company offers different claim experiences with the number of people they insure. Moreover the cost of doing business i.e. the amount of money to be paid to sell and service their policies and the financial targets to achieve are different for different companies. The companies thus charge accordingly.
Along with these there are several other factors that directly affect your auto insurance rates. These are age, make and model of your vehicle, purpose served by the it, driving record, the manner in which you maintain your car and your credit ratings.
Different types of auto insurance
By Mansi gupta
Nowadays auto insurance is the ideal way to ensure a good life for yourself and your expensive vehicle. Auto insurance keeps safe your huge amount of money spent on your automobile. But on the same hand, auto insurance is also quite expensive. However there are different types of auto insurance policies available today. It is at an individual’s discretion which policy he can afford to adopt.
1. Fully Comprehensive Auto Insurance Policy Types- though this policy is the most expensive one yet it is the most widely adopted type of auto insurance.
This is so because the insurance provides compensation or covers all sorts of cases such as theft, accident, wear and tear etc. If unfortunately an accident occurs where you were not at fault while the other driver who did the accident does not disclose his and his insurance details; you ought not to worry. For being a policyholder of the fully comprehensive program, you can register an insurance claim against your insurance company. But while taking this policy one essential thing should be borne in mind. There are a few auto insurance companies that do not insure your vehicle 100% of its value but of 80% or so. Even though many companies defend their policy as a measure to prevent themselves from fraud cases etc. yet try your bets to find the agency that insures your vehicle 100%.
2. Third Party, Fire and Theft- this type of insurance is basically meant for those car owners who have had finished their car loans but still admire, cherish their car and have great sentiments attached to it. This policy is somewhat akin to the fully comprehensive one but not identical to it. For like the latter the former covers cases of theft, accident, fire etc. but in case of an accident you can receive compensation only when you were at fault and had hit another car. So if any other car hits yours or you by mistake bang t in the garage, the insurance company will not come to your financial aid.
3. Third Party Insurance- it is the insurance that is the cheapest of all and covers only cases of accident where you were at fault and hit a third party. The insurance company is not to be contacted in case of any other mishappening with your vehicle. This insurance policy is generally preferred by those who own an old and less pricey car or any other vehicle.
4. Specialized Car Insurance- is basically for cars categorized as classic, those that are 25 years old. These cars are insured as classic and so accordingly they have their requirements and services. The classic car insurane policy can be said to be as good as the comprehensive one but the only drawback associated with it is that it limits the policy taker to a limited number of road miles he can drive in any given year.
Ultimately it is at the discretion of every individual which policy he desires to take. It is advisable to sort out one’s requirements and budget and also make a survey of the auto insurance policies in the market before actually grabbing a policy.
About the author:
Mansi gupta writes about affordable auto insurance quote. Learn more http://www.lowquoter.com/auto/ .
December 14, 2007
What is Auto Insurance and What Does It Cover?
Every person who drives a car needs the protection that auto insurance can give. If you are involved in an accident in a way that make you responsible for any damage of another person or vehicle the insurance will protect you from financial ruin. All states in America require drivers to maintain liability insurance for their auto. However, this coverage does not provide much protection outside of making sure that if you should be at-fault with another driver that your insurer will step up to bat and pay the bill.
But what if you and your vehicle is damaged, will the insurance cover the expenses? There are a wide very of other coverages available, some that benefit you and some that are rarely used and probably covered by other services you already subscribe to.
If you have a newer car, or one that has a lien against it by a bank or other financial company, you are required to also maintain collision insurance. This type of coverage ensures that your vehicle will be fixed or paid off in the event that you are in an accident that damages your own vehicle and it is your fault. Another widely held coverage is called uninsured insurance. This protects you in case you are hit by a driver who does not have insurance and they are at-fault. Without this coverage it is up to you to try and collect damages from the person at-fault through the legal process which may often take years and never materialize at all.
Other coverages such as ERS (Emergency Roadside Service), rental reimbursement and accident death and dismemberment are purely optional and may hold some value if you are not already protected under another program such as AAA.
When shopping around for insurance coverage be sure to compare apples to apples for rates. It is best to compare just liability, collision and uninsured coverage and then if needed add other coverages on for peace of mind protection.
By : Marvin Toller is a web publisher who likes to write about car insurance. You can read more at his news and in depth information website http://www.11-car-insurance.com
Three Auto Insurance Secrets
by: Steve Gillman
Want to learn something new about auto insurance? Something that can save you a lot of money or get a claim paid? Forget the usual tips. Check out these secrets.
1. Demand the legal policy minimums if you have no assets. Do you really need a lot of liability coverage if you have no money in the bank? Insurance companies will tell you that you do because you can be sued regardless. It's possible. I can't promise you that you won't be sued and end up paying a chunk of your paycheck to someone for life.
However, honest insurance salesmen admit that people without assets are rarely sued. Lawyers work on a commission in these cases, and won't take a case where there is no money to be collected. In fact, having a bigger liability policy can be an invitation to sue, and it won't protect you from personal liability, because they always sue for more than the policy limit anyhow.
If you have no assets to protect, why buy auto insurance? Because it is a legal requirement. In that case why not just buy the minimum coverage required? But be careful. My own insurance guy lied for years, claiming I had just that, when in fact I was paying for "company-recommended minimums." You might have to push the point, and may even have to sign something saying you understand how risky it is to be "under-insured."
2. Claim diminished value. If you have a collision policy, your insurance company will pay for the repairs after an accident. However, is the financial damage really fixed? Not necessarily. A car that has been in an accident and had the body fixed may look the same, but it won't sell for the same price. Would you pay the same for a car that has been in an accident?
A car that has been in an accident might be worth $2,000 less than a similar un-damaged car. This is called "diminished value," and may be covered by your policy. However, diminished value is often not paid unless you push the point. Get a car dealer to do an estimate of the diminished value if necessary, and present this to the insurance company. You pay for insurance to have your losses covered, and they aren't covered if you aren't paid for this.
3. Lower your premiums by removing kids from the policy. You may have already discovered that you pay a lot for insurance as long as you have driving-age children at home. Even if they are off at school, if their legal residence is your house, you pay more.
However, there is a little-known exception to this rule. If your children are at a college that's more than 100 miles away, you can have them taken off the insurance policy. This can dramatically reduce your premiums. The catch? They are excluded drivers, so you can't let them drive the car when they come home to visit.
These are just a few examples of the auto insurance secrets that insurance companies probably don't want you to know.
About The Author
Copyright Steve Gillman. You'll find 11 more ways to save money on auto insurance secrets in "Money saving Secrets," a bonus in the "You Aren't Supposed To Know - A Book Of Secrets" package at: http://www.TheSecretInformationSite.com.
Answers to 5 Common Questions about Buying Online Auto Insurance
While virtually everyone would agree that driving an uninsured car or driving as an uninsured motorist is both illegal and unwise, not everyone realizes that they may be paying more for auto insurance than is necessary. Indeed, many people keep renewing with the same auto insurance carrier year after year, even though they might be eligible for lower rates with another company. That's because most motorists assume that finding a lower rate means spending the day on the phone, calling company after company and being subjected to sales pitch after sales pitch. Thankfully, that assumption is wrong.
Just as the Internet has transformed so many of our life activities, like shopping, finding information, and socializing, the Web has transformed the ways we can get auto insurance quotes. In fact, obtaining online auto insurance quotes has several distinct advantages. Nonetheless, many people have questions about the process. Here are answers to five common questions about buying online auto insurance.
1. What's the main benefit of getting online auto insurance quotes?
When you use an online auto insurance quote site, you bypass the hassle of calling individual insurance companies to get the best rate. Instead, you submit your information once, and receive quotes from up to 15 different insurance companies.
2. What kind of personal information do I have to provide?
While various sites have different guidelines, the amount of personal information you provide is often up to you. However, the specificity of the quotes is in large part determined by the information you offer. To get the most accurate online auto insurance quotes, you'll need to provide your home address, date of birth, how long you've lived at your current address, information about your vehicles, driver information, and information about accidents or citations.
3. What factors influence the rates that I am quoted?
Your rates are based on a number of factors, including your driving record, your age, and where your vehicle is kept. Some companies also provide discounts if, for example, you have automatic seat belts or airbags, an anti-theft device, a good driving record, or multiple policies with the same carrier. Rates are also determined by the kind of insurance policy you want and the deductible you choose.
4. Do I have to buy car insurance online once I receive quotes?
A reputable online auto insurance comparison site will provide quotes free of charge and not require you to purchase insurance. If you do need immediate coverage, however, choose a site that is owned by an insurance broker who can also help you buy insurance and who can provide you with virtually instant proof of insurance.
5. Will I start getting sales calls or spam if I get quotes online?
Again, it depends upon the site. A reputable online auto insurance broker will respect your privacy and have a privacy policy prominently placed on his or her website. The privacy policy should explain how your email address and contact information will be used by the broker and his or her affiliates.
About The Author
Chris Robertson is a published author of Majon International. Majon International is one of the worlds MOST popular internet marketing and internet advertising companies on the web. Visit their main business resource web site at: http://www.majon.com
Tips On How To You Can Get Better Auto Insurance Rates
Getting better rates on your auto insurance is something that many people would like to do. So many are paying a lot of money, too much money - and doing it unnecessarily. By following a few simple steps, you could reduce your annual auto insurance costs, and save some money for those other projects you would like to do. Here are five steps that will enable you to reduce your costs.
1. Compare Car Insurance Quotes
This is one of the easiest things to do, because you can do it at any time of day, just by going online. You will want to find an insurance Web site that will allow you to get several quotes from different companies with just one application. When you do this, go to at least two different Web sites and get several quotes from both.
Before you get that new car insurance policy, however, you may want to do a little research to discover some things about the company – if you are not familiar with that name. You might check with the Better Business Bureau to see if there are many complaints about them not paying for accidents, etc.
2. Read About Car Insurance
In order to really understand what you may be able to do without, in the way of options, you should have a good understanding of what the options cover. Greater savings will come from a greater understanding of what your needs really are. For instance, if you have a brand new car, you may not need the towing option for at least a year or two. You may also be able to do without car rental, too.
3. Increase Your Deductible
This is one thing that can give you a noticeable reduction. By increasing the amount of money that you pay in each accident, you put the insurance company at less of a risk. They like this, and will lower your rates to reflect the amount that you increase your part. Be sure, though, that if you have an accident tomorrow that you can afford to pay the deductible. You will be required to pay it before the auto insurance company will pay their part.
4. Get Less Coverage
Instead of buying the most coverage you can, it is a good idea to get the recommended amount. Also, if your car is more than 10 years old, you should probably drop the comprehensive part of your auto insurance. After 10 years, you may be paying more for your comprehensive than the car is worth. Save this money instead, and apply it to getting another, newer car.
5. Add Security Features To Your Car
If you live in a more urban area, or in an area where there is car theft, you can lower your car insurance rates by adding some security features to your car. These usually result in a discount with each new feature you have. This includes steering wheel locks, auto alarms, and satellite tracking systems.
Besides these things, you may want to talk to your car insurance agent to see if driving classes will also lower your rates. Having multiple cars insured by the same company, and staying away from cars that are the most likely to be stolen, or sporty, will reduce your rates, too.
Joe Kenny is the webmaster of http://Insure121.com, a UK insurance comparison site offering cheap car insurance or visit NationsFinance.co.uk for more car insurance.
December 13, 2007
Find details about Car Insurance Companies
One can find details about car insurance companies quickly from the World Wide Web search engines. Getting the best deal from the car insurance companies online requires one to have a wide understanding of what one really requires form a car insurance policy.
Informed decision can be made only after the buyer of the insurance has enough understanding of the various polices and the appropriate information that is true to be filled in online forms. Abstract filling of forms offer by the many car insurance companies cannot save you any big deal.
One can find details about car insurance companies quickly from the World Wide Web search engines. Getting the best deal from the car insurance companies online requires one to have a wide understanding of what one really requires form a car insurance policy.
Informed decision can be made only after the buyer of the insurance has enough understanding of the various polices and the appropriate information that is true to be filled in online forms. Abstract filling of forms offer by the many car insurance companies cannot save you any big deal.
Car insurance companies consider your driving records before deciding to grant you the coverage your request. If you have a tampered driving record you may have to pay higher premiums. Be equipped or learn better driving strategies to avoid such interferences. Credit history also helps the car insurance companies to offer you the quote you offer. Credit history is something that cannot be repaired instantly. Working on improving it can get you better insurance deals for low premiums in the future.
Do not switch or swap between car insurance companies. Companies offer discounts to people who stick on to one company for a long time. You may need to purchase at least a minimum liability cover if you cannot afford a big cover. Each state has the minimum liability coverage proposed from time to time. Follow such to get at least a minimum liability package.
Car insurance companies consider the safety standards of you car like the child lock system, traction control, air bags and brakes, anti-theft alarms are an added advantage. The parking practice is also counted. Do not park your cars in the streets if you do not have a personal garage; park your car in safe rented parking places. If you are making additional changes to safeguard your car, the car insurance companies offer some extra discounts in premium; for such, get to know what are they and make the existence of such safety systems documented with your company.
If you are committed to a single steady income job, some car insurance companies do consider that factor to offer you with low premium high value coverage, because you are reliable for your premium payment on accounts of your job! So, stay employed gainfully. If you use your car for very less and not very regularly let your company know of it so that they can decide on giving you some benefits, because less use is less danger.
http://www.sure2insure.com
Be wise to choose the Auto Insurance Quote
Most of us save commissions that we pay to the auto insurance by getting insurance from the car insurance companies via online quotes and online application forms. Not only do we save on agent commission, we do get direct discounts if we apply online. The risk involved in taking an auto insurance quote without the assistance of an agent lies in choosing the wrong coverage because it is cheap. However, even in the absence of the agent one can make the correct choice of the auto insurance quote offered by making clarification calls to the toll free customer care center of the car insurance companies that offer the policies.
Be wise to choose the auto insurance quote that will really protect you. There is a high chance of buyers misunderstanding the auto insurance quote and the discounts offered without the assistance of a genuine and experienced auto insurance agent. Getting an auto insurance quote online without the assistance of an agent is wise to avoid commission, but if people choose the cover that really does not protect them in times of danger they may regret to have spared the commission for the agent.
Surf through every inner facts and outer facts centered on the auto insurance quote and what it actually covers. Almost all the auto insurance quotes cover liability for the most part. Liability has a lot to do with how one is using the vehicle and how often one uses the vehicle and above all your driving records and the number of accidents you have created. More often if you have a very good driving record you may not create any frequent claim needs as against speed drivers and you can decide on an auto insurance quote with a comparatively little more than the minimum liability cover that has to be taken as proposed by the state. You can save some money on the premiums that cover these.
Before availing auto insurance ask your current insurance provider if he would offer discounts on an auto insurance quote offered by him as you are his existing and good customer. If you have good premium payment records for your other insurance with the same provider, most do consider giving you good discounts that your new provider may not, because they may not wish to loose your business as you are a good customer. If you choose a high deductible you can save on the premium, make sure the deductible is affordable by you.
Save Money with these Online Auto Insurance Tips
Auto insurance is a necessity for anyone who owns a car, but it can also be affordable. You can save money and receive great coverage by comparing online auto insurance quotes and by meeting certain criteria. Let's explore some ways to keep your auto insurance premiums to a minimum.
Auto insurance is a necessity for anyone who owns a car, but it can also be affordable. You can save money and receive great coverage by comparing online auto insurance quotes and by meeting certain criteria. Let's explore some ways to keep your auto insurance premiums to a minimum.
Keep a Clean Driving Record
With a clean driving record that is absent of speeding tickets, accidents, and traffic violations, you can usually obtain much cheaper auto insurance quotes. Online auto insurance companies are no different than other companies when it comes to your driving record. They will consider whether you're a safe driver or if you take unnecessary risks while driving. Each time you get a speeding ticket, there's a possibility of scarring your driving record with unwanted points. So whenever you're tempted to exceed the speed limit, think ahead to the additional insurance premium you might be required to pay for several years to come.
Choose a Low-Risk Automobile
The type of automobile you choose can also raise or lower car insurance quotes. Choose a vehicle that's not classified as a sports car for a lower premium. Sports cars are usually considered to be high-risk cars because owners tend to drive them a little faster. Other factors of an automobile that can affect auto insurance quotes include the theft protection or safety equipment that's built into your car, and other features of your car such as anti-lock brakes and airbags. The age of the driver is also a major factor.
With high-end automobiles, insurance coverage is often higher because repairs and parts are more expensive for these cars. For example, online auto insurance quotes for a Porsche or BMW will likely be higher than those for a Chevrolet or Ford.
Opt for a Higher Deductible
Another way to lower your online auto insurance premium is to opt for a higher deductible. A deductible is the amount you're willing to pay out of pocket for repairs before your insurance coverage becomes effective. Insurance companies offer lower premiums when you're willing to pay more out of pocket to save them the hassle and expense of minor repairs. Deductibles can range from $250, $500, $1,000, to $1,500 or more depending on what you're willing to pay out of pocket.
Insurance Companies and Credit Scores
Good credit can also encourage lower premiums for car insurance online. Though insurance is not given on credit, nor does it affect your credit rating, insurance companies do often consider credit scores to determine premiums. If you pay other bills on time, the company can assume you will make your premium payments on time as well. They may reward you with lower premiums for having a good credit record.
Whether you meet all these criteria or not, you can still go on the Web and comparison shop for very affordable auto insurance online. There are some helpful websites that will give you quotes from multiple insurance companies so you can compare quotes and policies in just minutes.
Use these tips to save money on your online auto insurance and to obtain maximum coverage for your automobile.
To learn more about subjects like online auto insurance please visit the web site at: http://www.onlineautoinsurance.com
For more information and informative related articles and links about this subject matter and content, please visit Majon's Financing\Investing directory: http://www.majon.com/directory/Financing\Investing
December 8, 2007
How to Save on Car Insurance
Everyone who owns a car needs auto insurance. This article will give you some tips on lowering your auto insurance costs. You will find a checklist of items to ask your insurance agent that may qualify for discounts. Keep in mind that not all discounts can be applied with all insurance companies in all states.
1. Shop Around
Go to your favorite search engine and type in "free car insurance quotes online". You'll see a long list of insurance companies that you may even be familiar with. Visit at least five car insurance websites and look for a link to free quotes. You will then be asked basic information about yourself, your driving history, and your car's make, model, and year.
Are You Still Paying Too Much for Car Insurance?
Everyone who owns a car needs auto insurance. This article will give you some tips on lowering your auto insurance costs. You will find a checklist of items to ask your insurance agent that may qualify for discounts. Keep in mind that not all discounts can be applied with all insurance companies in all states.
1. Shop Around
Go to your favorite search engine and type in "free car insurance quotes online". You'll see a long list of insurance companies that you may even be familiar with. Visit at least five car insurance websites and look for a link to free quotes. You will then be asked basic information about yourself, your driving history, and your car's make, model, and year. It just takes a couple of minutes, and shortly thereafter, they will email you a no obligation quote. Write down their website address, their toll free number, and customer service email address.
Each insurance company will ask you generally the same questions, and will give you options about how much coverage you will want. Find your current policy, if you have one, and take note of the coverage you currently have. Always provide the same information and ask for the same coverage at each company so you will be comparing apples to apples. Read the fine print and make sure nothing is excluded from the quote like Rental car coverage, towing, medical, etc...
For the purposes of the quote, the insurance company will not ask you your social security number, but keep in mind your actual cost maybe higher or lower depending on your credit history. If you're not sure about some of the terminology or coverage, take notes so that you can ask the insurance company about them directly.
Once you have at least five quotes emailed to you, take the lowest two or three quotes and see if they are less than what you are paying now. Most likely at least one of them is much lower. At this point you will want to call them directly to get the most accurate quote by providing additional personal information. For additional discounts, here is a checklist of things you should ask about.
[ ] $500 deductible
[ ] $1,000 deductible
[ ] Paying monthly, semi-annually, or annually
[ ] More than 1 car
[ ] No Accidents in 3 Years
[ ] No Moving Violations in 3 Years
[ ] Driver Training Courses
[ ] Defensive Driving Courses
[ ] Anti-Theft Devices
[ ] Low Annual Mileage
[ ] Air Bags
[ ] Anti-Lock Brakes
[ ] Daytime Running Lights
[ ] Student Drivers with Good Grades
[ ] Auto and Homeowners Coverage with the Same Company
[ ] College Students away from Home
[ ] Long-Time Customer
[ ] Other Discounts
2. Saving Insurance Premium on cars you own outright.
If you own a clear title to your car, meaning there is no bank loan on it, then you may want to consider dropping the collision/comprehensive coverage. As a rule of thumb, if the cars value is less than $3000, it may not make sense for you to pay for this additional coverage. Over time, the cost of the additional insurance premium will exceed the value of the car. It's pretty simple math.
Check the fair market value of your car either through Edmunds.com or even your local newspaper. See what other people are trying to get for the same car. Keep in mind your cars mileage, condition, and age. Has it been in an accident before? Does it have unusually high mileage in excess of 15,000 miles per year? Does it need new tires? You get the idea. Be realistic, because in the event that this car is in an accident and is damaged beyond repair, it is unlikely you will get the full value of the car.
3. Ask About Insurance Rates in Different Areas
Rates can vary widely even in the same state. Different locals have different accident rates, population, and crime. These all factor in to the final cost. If you are moving to a different area, ask about what the rates are for that town.
4. Ask About Getting Other Insurance Policies Together With Your Auto Insurance
Combining insurance policies with the same company can often give you additional discounts. If you own a home, ask about combining your homeowners insurance with your auto insurance. Also ask about other polices, such as life, health, and business insurance. Most insurance companies cover a wide range of policies and will give substantial discounts when you do business exclusively with them.
5. A Clean Credit History Can Reduce Car Premiums:
Having good credit can also lower your insurance costs. Many insurance companies will use credit information to price auto insurance policies. Drivers with good credit and a clean driving record may qualify as a "preferred" customer with lower risk and will be rewarded with lower premiums.
6. Low Mileage Discounts
Some companies offer discounts to drivers who drive a lower than average number of miles per year. If you car pool, take public transportation like the subway, or work from home, you will most likely drive few miles per year than the average driver.
7. Group Insurance
Some insurers offer discounts to drivers who work for certain companies or belong to professional associations, and alumni groups. Ask your employer, group or clubs that you belong to if they have any special arrangements with different insurance companies.
Using all of these tips can save you hundreds of dollars per year, especially when you have multiple cars and multiple drivers in the same household.
http://valuesweb.com
Answers to 5 Common Questions about Buying Online Auto Insurance
While virtually everyone would agree that driving an uninsured car or driving as an uninsured motorist is both illegal and unwise, not everyone realizes that they may be paying more for auto insurance than is necessary. Indeed, many people keep renewing with the same auto insurance carrier year after year, even though they might be eligible for lower rates with another company. That's because most motorists assume that finding a lower rate means spending the day on the phone, calling company after company and being subjected to sales pitch after sales pitch. Thankfully, that assumption is wrong.
Just as the Internet has transformed so many of our life activities, like shopping, finding information, and socializing, the Web has transformed the ways we can get auto insurance quotes. In fact, obtaining online auto insurance quotes has several distinct advantages. Nonetheless, many people have questions about the process. Here are answers to five common questions about buying online auto insurance.
1. What's the main benefit of getting online auto insurance quotes?
When you use an online auto insurance quote site, you bypass the hassle of calling individual insurance companies to get the best rate. Instead, you submit your information once, and receive quotes from up to 15 different insurance companies.
2. What kind of personal information do I have to provide?
While various sites have different guidelines, the amount of personal information you provide is often up to you. However, the specificity of the quotes is in large part determined by the information you offer. To get the most accurate online auto insurance quotes, you'll need to provide your home address, date of birth, how long you've lived at your current address, information about your vehicles, driver information, and information about accidents or citations.
3. What factors influence the rates that I am quoted?
Your rates are based on a number of factors, including your driving record, your age, and where your vehicle is kept. Some companies also provide discounts if, for example, you have automatic seat belts or airbags, an anti-theft device, a good driving record, or multiple policies with the same carrier. Rates are also determined by the kind of insurance policy you want and the deductible you choose.
4. Do I have to buy car insurance online once I receive quotes?
A reputable online auto insurance comparison site will provide quotes free of charge and not require you to purchase insurance. If you do need immediate coverage, however, choose a site that is owned by an insurance broker who can also help you buy insurance and who can provide you with virtually instant proof of insurance.
5. Will I start getting sales calls or spam if I get quotes online?
Again, it depends upon the site. A reputable online auto insurance broker will respect your privacy and have a privacy policy prominently placed on his or her website. The privacy policy should explain how your email address and contact information will be used by the broker and his or her affiliates.
November 30, 2007
Auto insurance basics
Auto insurance is a contract that protects your financial security in case of an accident. Although it is not mandated by federal law, the purchase of auto insurance is usually a requirement in most states; every state (with the exception of New Hampshire and Wisconsin) have minimum insurance laws.
These two states, instead of having insurance requirements, have mandated financial responsibility laws, so that the owner of a car is required to show that he has sufficient funds to pay any necessary claims. If said owner cannot produce proof of satisfactory assets, then he must buy an auto insurance policy. Regardless of the law, having good auto insurance is practical for the driver who wishes to avoid lawsuits or immense repair bills.
According to the Insurance Information Institute (III), a basic auto insurance policy is comprised of six basic types of coverage. While some of these types of coverage are required by state law, some are considered optional. These are:
1. Bodily injury liability
2. Property damage liability
3. Medical payments or Personal Injury Protection (PIP)
4. Collision
5. Comprehensive
6. Uninsured/Underinsured motorists coverage
Liability coverage is the foundation of any auto insurance policy, and is required in most states. If you are at fault in an accident, your liability insurance will pay for the bodily injury and property damage expenses caused to others in the accident, including your legal bills. Bodily-injury coverage pays for medical bills and lost wages. Property-damage coverage pays for the repair or replacement of things you wrecked other than your own car. The other party may also decide to sue you to collect "pain and suffering" damages.
Liability insurance
Liability insurance (both bodily injury and property damage) is the foundation of most auto insurance policies. Every state that requires auto insurance mandates the purchase of property damage liability, and Florida is the only state that requires auto insurance but does not call for bodily injury liability. If you are at fault in an auto accident, your liability coverage will pay all the expenses, bodily injury, property damage, and any legal bills. The bodily injury coverage would pay for medical bills and lost wages; the property damage coverage would pay for any auto repairs, or replacement. Property damage liability usually repairs damage to other vehicles, but can also cover damages to things such as lamp poles, fences, buildings, or anything else that your car may have struck.
Collision and comprehensive coverages
If you cause an accident, collision coverage will pay to repair your vehicle. You usually can't collect any more than the actual cash value of your car, which is not the same as the car's replacement cost. Collision coverage is normally the most expensive component of auto insurance. By choosing a higher deductible, say $500 or $1,000, you can keep your premium costs down. However, keep in mind that you must pay the amount of your deductible before the insurance company kicks in any money after an accident.
Insurance companies often will "total" your car if the repair costs exceed a certain percentage of the car's worth. The critical damage point varies from company to company, from 55 percent to 90 percent.
Comprehensive coverage will pay for damages to your car that weren't caused by an auto accident: Damages from theft, fire, vandalism, natural disasters, or hitting a deer all qualify. Comprehensive coverage also comes with a deductible and your insurer will only pay as much as the car was worth when it got wrecked.
Because insurance companies normally will not pay you more than your car's book value, it's helpful if you have a rough idea of this amount. Check the Kelley Blue Book or the National Automobile Dealers Association. If your car is worth less than what you're paying for the coverage, you're better off not having it.
Neither collision nor comprehension insurance is required by any of the states, but some lenders, when the owner finances the car, may require the purchase of collision and comprehensive in the loan agreement. Even when it is not required, collision and comprehensive coverage is highly recommended by the insurance industry, so that in the unforeseen event of damage or theft, the owner of the car can avoid heavy bills. Theft of cars is not as unusual as some people may think. In 2004, a car was stolen in the United States every 26 seconds, and a car had a 1 in 190 chance of being stolen.
November 17, 2007
Tips for Young Drivers in auto insurance
As a young driver, here are a few tips on getting the best
rate for you:
■ Take a driver training course that is recognized by your
insurance company.
■ Consider gaining experience as a named occasional
driver under the insurance policy of a parent or
guardian, rather than as a principal driver of your own
car. Premiums for young, occasional drivers are much
lower than premiums for young, principal drivers.
■ Ask your insurance company if they offer any student
discounts. Some companies give discounts to young
drivers with good grades, or young drivers who live
away from home for part of the year.
As a young driver, building a good driving record free of
at-fault accidents and driving convictions is the best way to
ensure low future premiums.
Tips for Saving Money on Car Insurance
The following tips may help you save money on your car
insurance:
■ Build a good driving history free of accidents and
convictions. This means driving carefully and obeying
the rules of the road. Wear your seat belt and don’t use
your cell phone while driving. Don’t drink and drive.
■ Be a comparison shopper. Talk to your friends and
neighbours. Make some phone calls and check
websites for on-line quotes. Compare rates. Different
companies price policies differently. Do your shopping
well in advance of when your current policy expires.
■ Don’t pay for coverage you don’t need. For example,
it may not be cost effective to have Collision or
Comprehensive coverages on a car that is worth less
than $1,000 because any claim you make would not
substantially exceed your deductible or the annual cost
of the premium.
■ Consider higher deductibles. This means you’ll
contribute more toward the loss if you have an
accident, but it will also mean a lower premium.
■ Make sure you always pay your premium on time.
If you pay your premium by cheque or through
automatic withdrawals from your bank account, make
sure you always have enough money to cover your
payment. If your insurance company is unable to
withdraw your payment because you don’t have
enough money in the account, it could result in the
is cancelled for nonpayment of premium more than
twice, and you have to purchase car insurance all over
again, many companies may consider you a higher risk,
and you could pay much more for your car insurance.
Also, if you’ve had your insurance policy cancelled
more than once over the past three years because you
failed to pay your premium, insurance companies are
not required to offer the option of monthly payments.
■ Choose the type of car you drive wisely. For example,
if you buy a car with a high theft rate, your premium
will be higher. Choose a car with good security
features.
■ Take advantage of discounts which may be available
to you. (See the section called “Discounts” for more
information.)
■ Make sure you tell your broker, agent or insurance
company about any changes (e.g., different drivers,
different use of the car) on your policy. In some cases,
your premium will drop.
Discounts for an insurance shopper
As an insurance shopper, you should check with your
insurance company, agent or broker about possible
discounts that may be applicable to you, such as:
Driver Training Discount: Most companies offer a discount
or a reduced premium for new drivers who have completed
a recognized driver training program.
Group Discount or Group Rates: If you belong to an
eligible group, check to see if they offer group rates.
An eligible group may include employees of the same
employer, members of a union or professional or
occupational association, or certain non-profit associations.
Multi-Policy Discount: Some insurance companies offer a
discount if you purchase your car and home insurance from
the same company. This discount can range from 3 to 15%.
Multi-Vehicle Discount: You may be able to get a
discount if you insure more than one vehicle with the
same insurance company. The multi-vehicle discount can
range from 5 to 15%.
Renewal Discount: Your company may offer you a renewal
discount if you have been with the company for a certain
number of years without an at-fault accident. The discount
can range from 5 to 20%.
Retiree Discount: If you are retired and meet certain
conditions, you may be able to get a retiree discount on
your premium. The retiree discount can range from 5 to
15% off your premium for the accident benefits coverage.
Other Discounts: Some companies may offer discounts if
your yearly car mileage is low or if you have installed an
alarm in your car. Each company applies discounts differently,
with some applying it to certain coverages only,
while others apply it to your entire premium. Check with
your broker, agent or insurance company to find out what
discounts are available and how they are applied.
What Are Underwriting Rules?
Insurance companies use underwriting rules to decide
whether or not to sell car insurance to you. Insurance
companies also use underwriting rules to decide whether
or not to renew your existing car insurance policy, or to
change your physical damage coverage, such as Collision
or Comprehensive coverage.
All underwriting rules used by insurance companies must
be filed with FSCO. Once FSCO has reviewed and approved
these rules, insurance companies may not use other rules
to deny you coverage.
If an insurance company refuses to sell you an insurance
policy, or to renew your policy, the company must advise
you in writing which rule (or rules) it has used to deny
coverage to you.
While underwriting rules differ from company to company,
these are some of the more common rules:
• whether you or drivers in your household have had
more than a certain number of at-fault accidents or
driving convictions;
• whether you’ve had a car insurance policy cancelled
a number of times because you failed to pay your
premium; or
• whether you’ve failed in the past to provide correct
or complete information when applying for car
insurance.
When shopping for car insurance, or when trying to renew
your car insurance policy, keep in mind that an insurance
company’s underwriting rules will affect whether or not you
can obtain insurance – or continue to be insured – with
that insurance company. Check with your broker, agent or
insurance company to find out what your company’s
underwriting rules are and how they may affect you.
Underwriting rules which do not comply with the Insurance
Act or the regulations, such as those which are contrary
to public policy, are prohibited. FSCO has determined that
rules which are contrary to public policy deny insurance
to individuals based on such factors as:
• religion, race, nationality or ethnic group;
• age, sex and marital status;
• location of the car; or
• whether they are newly licensed or a driver new
to Canada.
Note: Factors such as: age; sex; marital status; where
you live or the location of the car; and whether you
are newly licensed or a driver new to Canada; ARE
permitted as rating criteria (i.e., what the policyholder
will pay for coverage).
Auto Accident Victim
“DISCOVER WHAT INSURANCE COMPANIES
DON’T WANT YOU TO KNOW ABOUT YOUR INJURY CLAIM!”
If you have recently been injured in an auto accident because of someone else’s fault, you are probably confused or worried about what steps to take next:
1. Will I be paid for the time I’m losing from work?
2. Will my medical bills be paid?
3. What do I do if the person who hit my car doesn’t have auto insurance?
4. Will my car be repaired?
5. What if I don’t make a full recovery and cannot return to my former work?
6. What will the insurance company offer me for my personal injuries?
7. How will I know that the insurance settlement is fair for my injuries?
8. How will I know that the lawyer I’ve chosen to represent my case is a competent lawyer and will know what to do?
9. How will I be able to know if I don’t have a competent lawyer?
NINE INSIDE SECRETS INSURANCE COMPANIES DON’T WANT YOU TO KNOW ABOUT YOUR INJURY CLAIM
This is where you get Ripped Off. The insurance companies don’t want you to know your rights and to what you are entitled when you make a personal injury claim following an accident. The following are secrets the insurance companies do not want you to know:
1. You DO have the right to an attorney and should at least consult with one:
Attorneys who specialize in personal injury and auto accident law generally do not charge an injured person in an initial conference. Generally, you can meet with an attorney for one hour and learn what rights you have as a result of the injury that you suffered. You can then make your own decision as to whether you wish to retain an attorney to represent you on your claim. As I mentioned, there is generally no charge for this conference and you should find that out up front from the attorney when you call the office to schedule such a consultation.
2. You are not in “GOOD HANDS” if you trust the insurance company:
Despite the fact that many insurers will encourage you not to retain an attorney, and they will tell you that they intend to treat you as one of their insureds and that you are in good hands, this is a myth. The insurance companies have one and only one interest when they contact you early after your accident. They are interested in getting your claim settled as quickly and cheaply as possible. Providing you a “fair” settlement is not first and foremost in their mind. They want to save the shareholders of their big insurance company as much money as they can from lost profits.
3. The auto body repair shop the insurance company refers you to has a sweetheart deal with the insurer:
Frequently, insurance companies will refer you to one or more body shops to have estimates performed on the damage to your vehicle. What they do not tell you is that with many of these body shops, there are sweetheart deals by which the body shops use cheaper and inferior parts to repair your vehicle and only repair the obvious damage as opposed to the hidden damage. As a result of these repairs, you might have continuing problems with your car which will frustrate you and may never get fully repaired. It will also result in a lower cost of repair which the insurance company will then throw back at you and say how badly could you have been injured if it didn’t cost much money to repair your vehicle.
4. In addition to getting your vehicle repaired, you are also entitled to recover the decreased fair market value of your car:
Insurance companies will talk to you about repairing the property damage to your vehicle. They will never initiate conversation with you regarding the fact that in addition to the repairs to your vehicle, if, as a result of the accident, your vehicle has lost fair market value, you are also entitled to a sum of money to compensate you for that loss of fair market value. This is something that even many attorneys are not aware of and you have to be certain to inquire into this when you consult with an attorney.
5. Insurance companies often do not tell you about all benefits to which you are entitled:
Whether it be your insurance company or that of the responsible party, you might be told that you are entitled to have your medical bills paid and they may offer to pay you for your loss of earnings or out-of-pocket expenses. But, the insurance company will not go into any detail as to what other damages you are entitled to receive compensation for. Some of these damages I have listed in the prior section of this report. Further, if you are a pedestrian or bicyclist and are injured by a person driving a motor vehicle, you are considered an additional insured under that policy, even if the accident was not that person’s fault.
6. It is not in your best interest to settle your claim quickly:
The insurance adjuster will be interested in settling your claim as quickly and cheaply as possible. To accomplish that, the adjuster might even offer to pay the medical bills that you have incurred to date and continue to pay reasonable medical bills for another six months. However, early in a case, you have no way of knowing just how seriously injured you are and just how much treatment you might need and for how long. If you enter into a settlement of that nature, once that six months passes, you are out of luck. Further, what do you do if you submit additional medical bills to the insurance company within that six month period of time, and the insurance company tells you that they don’t believe those bills are reasonable or related to the accident? You have lost all leverage in dealing with the insurance company and may not even be in a position where you can sue them to force them to pay for those medical bills. It will certainly be difficult for you to find an attorney to represent you at that point in time.
7. People truly can be injured even with minimal property damage to their automobile:
If you are injured in an accident where the vehicles did not sustain much property damage, the insurance adjuster will tell you that they would not expect you to be very injured, nor to have incurred much in the way of medical expenses given the minimal amount of damage to your vehicle. They will attempt to intimidate you into not seeking health care and not getting adequate treatment for those injuries. In reality, studies show that people very definitely can be injured in what are called low impact automobile accidents. In fact, thousands of people sustain such injuries and the visible damage to the automobile itself is irrelevant to the injuries that can be sustained by the occupants of the automobile.
8. So called “independent medical examiners” where the insurance company might send you to be examined are NOT “independent”:
Whether it be your insurance company or the other person’s insurance company, at some point in time they may wish to send you to a doctor for an examination. They will tell you that this is an “IME,” which is supposed to stand for “Independent Medical Examination.” In reality, these doctors are NOT independent. They get paid thousands upon thousands of dollars every year by the insurance industry to write boiler plate reports that are designed to cut off all benefits to the injured person. Although there are times that you cannot avoid attending these examinations, there are things you can do to prepare for them and to attempt to minimize the damage that could be done to your claim by such examinations. You’ll never learn these things from the insurance company. You will have to be advised by a private attorney who specializes in personal injury and auto accident claims.
9. If they can’t settle early, delay, delay, delay:
If the insurance company cannot get the claim settled early, then they switch tactics to delay matters as long as possible. It is not unusual to have your telephone calls not returned and, when you do finally talk to an adjuster, find out that the adjuster has been changed. In many instances, an adjuster may be changed three or four times within a matter of a couple months. The intent here is to get the injured person as confused and frustrated as possible so that hopefully he or she will decide they can’t waste anymore time on trying to deal with this company and will just go away.
These are just some inside secrets or tips that the insurance companies don’t want you to know about your personal injury or property damage claims.
Factors That May Affect Your Car Insurance Rates
Insurance works according to a “pooling” concept. This
means that companies “pool” the money they receive from
you and other drivers they insure. As a policyholder, you are
one member of the risk pool in the company you select as
your insurer.
The cost of all the claims paid out by the insurance company
is reflected in the rates it charges its customers.
The rates charged to individual customers are based on a
number of additional factor.
Factors That May Affect Your Car Insurance Rates
The amount you pay for insurance will depend on factors
such as:
The type of car you drive: Many insurance companies rate
makes and models of cars according to their actual claims
experience, such as the cost of repairs, the rate of injury,
and the likelihood that a particular car may be stolen or
involved in an accident.
Your driving record: The premium you pay for car insurance
also depends on your driving record. This includes at-fault
accidents, the length of time you have been licensed to
drive, whether or not you have taken a driver training
course that your insurance company recognizes, and driving
convictions (such as speeding, impaired or careless driving).
Generally, your first minor conviction will have little or no
impact on your rates. But if you have had a second minor
conviction in the last three years, it will most likely affect
your premium. If you have had at-fault accidents over the
last six years and/or major, serious or a number of minor
driving convictions over the last three years, your premium
will be higher or your insurer may not renew your
insurance. Likewise, the better your driving record, the
lower your premium will be. (Impaired or Careless Driving
convictions are not considered to be minor convictions, but
are major convictions and will impact your insurance premium and whether you are renewed.)
How much you drive: Your car insurance premium will also
be affected by how much you drive. This is because the
more time you spend on the road, the higher the chances
of becoming involved in a car accident. In urban areas,
driving to work may include driving to a subway, bus or
train station. If you live close to work, you will probably
have a lower premium than someone who lives far from
work or who needs to use their car for business.
Where you live: Car insurance rates are generally higher
in larger urban centres. This is because there are a greater
number of cars on the road, and the chances of getting
into an accident are higher. Also, more cars are stolen in
urban areas.
Your age: In general, mature drivers have fewer accidents
than younger drivers, particularly teenagers. Drivers who
are 25 years of age and over can generally buy insurance at
a considerably lower cost than younger drivers.
The amount of coverage: Many people buy additional
protection beyond the mandatory coverage. For example,
if you buy optional Collision coverage which protects you
for damage to your car regardless of who caused the
accident, or Comprehensive coverage which protects you
against theft, vandalism, hail or explosion, your car will be
covered against any such incidences, but you will pay more.
There are also other options such as increasing your Third-
Party Liability protection. All of these optional coverages
will have an effect on the cost of your policy.
Your deductibles: Your deductible is the portion of a
loss that you are required to pay. Your deductible can
vary, depending on the type of coverage you have and
the percentage of fault you are assigned in the event
of an accident. There are deductibles for Collision,
Comprehensive, All Perils and Specified Perils coverages.
You can also pay a lower premium by having a deductible
on Direct Compensation-Property Damage (DC-PD)
coverage, or raising the deductible on the other coverages.
For example, by having a higher deductible of $500,
instead of $300, on Comprehensive coverage you can save
about 10% off of your Comprehensive premium.
These savings are due to the fact that higher deductibles
mean you pay more towards the cost of repairing your car,
while your insurance company pays less toward the total
cost of repair. As a result, your premium will be lower.
If you’d rather have lower deductibles, you may be able to
do so if you meet certain conditions and if your company
offers them, but your premium will be higher. (Recognize,
however, that since Collision and Comprehensive coverage
are optional coverages, your insurance company may
obligate you to carry higher deductibles if you have had
a lot of prior claims.)
If you have an older car, you may choose to reduce your
premium further by dropping Collision and Comprehensive
coverage entirely.
Note: Your insurance company cannot use rating criteria such
as credit history, bankruptcy, employment status, credit
card possession and residence stability, to determine how
much you should pay for car insurance.
Insurance companies use underwriting rules to decide
whether or not to sell car insurance to you. Insurance
companies also use underwriting rules to decide whether
or not to renew your existing car insurance policy, or to
change your physical damage coverage, such as Collision
or Comprehensive coverage.
All underwriting rules used by insurance companies must
be filed with FSCO. Once FSCO has reviewed and approved
these rules, insurance companies may not use other rules
to deny you coverage.
If an insurance company refuses to sell you an insurance
policy, or to renew your policy, the company must advise
you in writing which rule (or rules) it has used to deny
coverage to you.
While underwriting rules differ from company to company,
these are some of the more common rules:
• whether you or drivers in your household have had
more than a certain number of at-fault accidents or
driving convictions;
• whether you’ve had a car insurance policy cancelled
a number of times because you failed to pay your
premium; or
• whether you’ve failed in the past to provide correct
or complete information when applying for car
insurance.
Where Can You Buy Car Insurance?
Shopping for car insurance can be confusing. There are
many companies that sell car insurance in Ontario. There
are also many ways to buy car insurance. For example, you
can buy car insurance in person, over the phone or through
the Internet from:
■ a broker;
■ an agent; or
■ directly from an insurance company.
The difference between insurance agents and brokers is that
an agent represents an insurance company, while a broker
represents consumers to assist them in obtaining coverage
from one of the companies with which that broker deals.
If you choose to buy car insurance through a broker, you
may ask him or her for a list of all the companies for whom
he or she sells insurance. You can also ask your broker for
the names of the companies and the quotes. If you want
this information in writing, your broker is required by law
to provide it to you.
You should never buy insurance from a company that accepts
barter payment. People who barter perform a service for
another member of the barter company and obtain barter
dollars for the work they do. They can trade barter dollars
for other products or services offered through the barter
company. Companies that accept barter payments are not
licensed to sell insurance in Ontario, and if you buy car
insurance through barter companies, you do not have valid
insurance and may have to pay substantial fines.
Multiple Car Insurance Quotes - How to Get the Best Rate
Getting multiple car insurance policies through the same insurance company can save you a lot of money on your insurance. Here's how to get the cheapest multiple car insurance quotes with a reputable company.
Why Get Multiple Car Insurance?
Having one or more cars insured with the same company can save you up to 15% on your auto insurance. Another benefit is that you have only one insurance company to deal with, and only one bill to pay.
How to Get the Cheapest Multiple Car Insurance Quote
The easiest and quickest way to get the cheapest multiple car insurance quote is to go online to an insurance comparison website (see link below). The advantages of using one of these sites are:
* You get quotes from multiple insurance companies, not just one, so you can compare those quotes and choose the cheapest one.
* It only takes a few minutes of your time, saving you hours of visiting insurance company websites or calling local insurance agencies.
* Most insurance comparison websites only affiliate with A-rated companies, so if you choose to purchase your insurance through them you know you'll be dealing with a solid, reliable company.
How to Lower Your Premium
Increase your deductible - Increasing the deductible (what you pay toward insurance claims before your insurer will pay) can save you up to half on your insurance bill. This will also prevent you from making too many small claims which could cause your insurer to cancel your policy.
Request discounts - Auto insurance companies offer all kinds of discounts and taking advantage of them can save you a lot of money. Some of these discounts include:
* Multiple policy discounts for having both your homeowners policy and your auto insurance policy with the same company.
* Safety discounts for having airbags, anti-lock brakes, or other safety features installed on your car.
* Security discounts for having an auto alarm or an anti-theft device installed on your car.
* Senior discounts if you are over the age of 50.
* Safe driver discounts if you have an accident-free driving record for three or more years.
* Low mileage discounts for driving less than the average driver.
* Professional discounts if you're in the military, law enforcement, or other designated professions.