UK Car Insurance - Car Insurance Policy Types

Buying car insurance is a legal requirement for any vehicle which is kept on the street, on a driveway or in a garage � provided you don�t have permission to keep it uninsured and off the road.
But although cover is mandatory, you do have a choice in the kind of policy you buy. Here are details of the three types of cover available: third-party, third party, fire and theft, and comprehensive.

When you search for a car insurance quote, it could be worth checking the price of each type before making a final decision. The kind of policy you choose could affect the size of the premiums you pay � but make sure you are comfortable with the level of cover you are afforded. If you need to make a claim, buying a lower level of protection could turn out to be a false economy.

Third-party only policies

The reason motor cover is required by law is so that other road users are protected from any damage you may cause. (The law is not quite so concerned with the damage you inflict on yourself or your own vehicle.) The most basic type of motor policy is third-party only cover, and it provides this minimum protection � against damage you are responsible for � to other people, their vehicles and their property.

In theory, third-party policies should be the cheapest, but do not automatically assume this will be the case: when you shop around, compare the costs for different types of policy. It could be that extra cover may not cost much more. So if you are in an accident that is your fault, your third-party policy will pay for the cost of repairing any other vehicles, and also for medical treatment costs or legal claims against you.

But it won�t insure you for repairs needed to your own car, or any of your own medical expenses. Nor will you be covered if your vehicle is stolen.
And if you�re involved in an accident where the fault can not be attributed, you will also be unable to claim. If your vehicle is not worth much, you could be tempted to opt for third-party cover � but bear in mind this would leave you without insurance against injuries you yourself sustain.

Third-party, fire and theft

As the name suggests, this offers the same cover as third party but also pays out if your car is stolen or damaged by fire. This type of policy is likely to be more expensive than third-party only, but if your car is not worth much you may be willing to do without the fire and theft cover � especially when you consider you�ll always have to pay something towards any claim in the form of an excess.

Comprehensive car insurance

This type of policy will cover you for damage caused to your own vehicle, as well as to other road users, even if an accident is your fault or if blame can�t be attributed.
You are also covered for fire and theft. You might expect comprehensive policies to be the most expensive type of cover, but this is not necessarily the case.
Some insurers have reported that higher-risk drivers � such as the under-25s � are more likely to choose third-party policies. As a result, the risk associated with this type of cover � and therefore its price � has been rising in relation to comprehensive cover.

Despite its name, comprehensive insurance may not cover you against every eventuality. For example, you may need to pay extra for breakdown insurance, or to ensure that you get a courtesy car if your own vehicle needs to be repaired.

Saving money on cover

Choosing a lower level of protection is not the only way to reduce the premiums you pay (and, as mentioned above, you should bear in mind that comprehensive policies are not always the most expensive). There are a number of other steps you can take to cut the cost of insurance without reducing the amount of cover you have:

• Reduce the excess you pay. You can cut your premiums by opting for a larger voluntary excess � so if you agree to pay the first �250 of any claim rather than just the first �100, your policy will cost less.
• Beef up your security. If your car is fitted with an alarm or immobiliser, it should be harder to steal. This should lead to a lower cost of cover.
• Add a named driver. If you are relatively inexperienced on the roads, this is probably making your insurance more expensive. By adding a more experienced named driver, such as a parent, to the policy, you could see premiums fall.

Various Car Insurance Options Explained

Car insurance Coverage Options

Before buying car insurance, you need to understand the different forms of additional coverage that are available to include in your policy. Car insurance coverage can be divided into many components such as Liability Insurance coverage, Collision Insurance, Comprehensive Insurance, Medical Payments, Underinsured/Uninsured and Personal Injury Protection.

The type of car insurance policy you choose divides the cost into parts of the premium. However, these options vary from state to state. What is available in one state may not be available in the other. Following is a brief and simple definition of different options that maybe available to add to your car insurance policy.

Liability Insurance

If you are found at fault in an accident, you are not only liable for all the damages to other vehicles, but you will also have to pay for property damage and medical costs to individuals involved. This type of option covers these costs if you are guilty or at fault of causing an accident.

Collision Insurance

This type of option covers the charges that are required for repairs or the replacement of your vehicle, at its market price at the time of the accident, no matter who is at fault. This option also covers and applies to static objects such as telephone poles, lamp posts, homes and other buildings.

Comprehensive Insurance

This type of option pays for repairs or replacement of your car if it is stolen, written-off or damaged due to external factors such as fire, floods or other natural disasters.

Personal Injury Protection

This option pays for your lost income, childcare expenses, and medical expenses sustained following an accident. However, these types of options are not available in all states and the amount of reimbursement depends on the type of coverage you purchase.

Medical Payments

This type of option helps you to pay for any necessary and reasonable medical bills that come up following an accident. It�s important to note that this policy will often pay out only after an existing medical cover has been exhausted.

Underinsured/Uninsured Coverage

If a driver without car insurance damages your car, or injures you or other passengers riding with you, this type of option helps to cover repairs and expenses. This option insures you are covered against underinsured or uninsured drivers as they may not have insurance or their coverage may not be sufficient to pay for damages you sustained. It is subjected to certain limitations and may vary depending on the type of car insurance.

Gap Insurance

Gap Coverage is an insurance option commonly used by customers who have purchased a brand new vehicle. It�s designed to payout depreciation costs an average insurance policy will not usually cover.

Other Coverage Options

Besides the above car insurance coverage options, there are also several extra insurance features that can be included or sometimes added by default to your car insurance policy. This includes insurance for a rental car, Towing, Labor Cost coverage, Rental Car Reimbursement Coverage. Some coverage options are only available with certain insurance providers. It�s important to check with your insurer and read your insurance policy carefully to find out what�s included, and what�s not.

Auto Insurance Secret Tips

Car Insurance Secrets Revealed

The importance of having a car insurance policy cannot be undermined. The soaring cost auto insurance can make you apprehensive about opting for car insurance. However, by being aware of some secret tips pertaining to insurance policies, you can definitely get good car insurance at a cheap price.

Some of the auto insurance secret tips are:

1. A Poor Driving Record Can Cost You:

If you do not have a good driving record, you may have to pay a relatively high amount of premium on your insurance. As per the industry standards, your premium rate is increased by 40% after your first case of accident (minor or major).

Tip:

You need to know that not all car insurance companies follow this policy. It is advisable to verify whether your insurance provider follows this rule. If it does, inquire in advance about the rates applied for bad driving record. However, having a good driving record is always beneficial.

2. The Make and Model of Your Vehicle

Auto insurance companies have a rating system, usually designed by the Car Insurance Services Office, for different types of car models. This system is based on different factors such as the vehicle's cost and its safety features.

Tip:

You can consider purchasing a car model, which can get discounts on car insurance rates. Based on your car model, auto insurance companies will offer you attractive discounts.

3. Your Car Real Value can Affect your Insurance Rates

Every car insurance company has its own list of car values. They can even contact your local car dealer to find the value of the car.

Tip:

If you do not wish to agree with the car insurance company's value system, you can consider opting for gap insurance.

4. Your Credit Reports

Your car insurer can request your credit reports to check your credit history, which they may use to prepare your insurance score. A good credit history can get you cheap car insurance, whereas a poor credit history may spell doom for your insurance prospects.

Tip:

If you don't have a decent credit history, it will be better to avoid opting for insurance till your credit history regains normalcy. Later on, you can avail car insurance at a discount price.

Besides these tips, it is also advised to officially cancel your insurance policy if you wish to switch car insurers.

Full Coverage And Liability Insurance Guide

Difference Between Full Coverage and Liability Insurance

Car insurance involves many types of coverage and it is quite easy to get confused. It is very important to know the differences between the various types of coverage so you don�t end up either paying more than required in insurance premium or get a car insurance policy that does not provide adequate cover.

The two main types of coverage you need to learn about are full coverage and liability insurance. Both are at the extreme ends of a car insurance policy.

Much of what pertains to car insurance is state controlled. The state lays down the basic guidelines and requirements. The minimum amount of coverage required as per state law is known as liability car insurance.

Liability Insurance Coverage

Liability car insurance covers the damages and injuries to other people and their property when you are responsible for an accident. Liability car insurance consists of three basic parts.

It is normally denoted as x/y/z where �x� stands for Maximum Coverage limit for bodily injuries per person per accident, �y� stands for Maximum Coverage limit for all bodily injuries sustained by all people per accident and �z� stands for Maximum property damage coverage per accident. For instance, 25/50/10. More specific details are available on State car insurance requirements.

The specifications of liability coverage change as per state. You need to purchase a car insurance policy that complies with the liability coverage guidelines of your state. It is recommended that you buy more than the minimum limits to ensure that you have adequate coverage or else you might end up with huge bills. You can add other coverage to this basic plan.

Full Insurance Coverage

Full coverage is a misleading term. It does not cover �everything�. Full coverage includes two more types of coverage in addition to the basic liability insurance coverage. These two additional types of coverage are:

• Collision Coverage: It covers your car against collision with any stationary or moving object (other than a car).
• Comprehensive Coverage: It deals with damage caused by natural disasters (flood, hail, storm), theft and vandalism.

You can purchase liability coverage and comprehensive coverage without buying collision coverage. But you cannot buy collision coverage without opting for liability and comprehensive coverage.

If you are paying a car loan, it becomes mandatory to purchase collision coverage along with the comprehensive one. This helps car insurance companies because if your vehicle is totaled during an accident, the car market value is paid off using the insurance money. However, the difference between the market value and the car loan amount needs to come from a Gap insurance coverage or your personal finances.

Collision and comprehensive coverage are not mandatory. Assess your needs and buy a car insurance plan as per your needs.

Consider GAP Insurance With New Car

GAP insurance coverage � Simple Explanation of GAP Coverage Option

Not everyone can afford to buy a brand new car outright. Therefore, many people resort to some form of personal finance such as loans to fund their purchase. In order to keep payments low, many auto insurance companies or banks offer long term payment of up to six year for brand new cars.

As the price of new cars depreciate or decrease very quickly, buyers of brand new vehicle can expect a significant drop of their car value of few thousand dollars before it�s parked in their drive way. If you purchase a car worth $30,000 and keep it for around a week, your car value may drop right down to a market value of $25,000. In the event of an accident, your insurance policy will only pay out the market price of the car. In our example, it will be $25,000. This creates a scenario where you will be liable for the remaining $5,000 to pay to your garage for a car you no longer have.

This is where GAP coverage option helps. If it�s included in your policy, it will cover the additional depreciation costs which is not included by default in most insurance policies. Going back again to our example above with a GAP insurance coverage, the insurance company will pay out $25,000 plus an additional �gap� of $5,000 made available through the GAP coverage option.

Most insurance companies will strongly recommending having this option for new cars, but some car garages will require it before selling the car to insure it�s paid off by GAP insurance in case it�s totaled following an accident.

How Did Car Insurance Start?

History of Car Insurance - How Did it 

All Start?

Car insurance is one of the most popular types of insurances. It is mandatory for drivers almost everywhere in the world to possess car insurance. It is applicable to all kinds of vehicles and usually covers the physical damage caused to the vehicle due to an accident or other mishaps.

Car insurance also covers liability protection, which means that, if you or another person is injured in an accident, then the company will cover a part of the medical expense.

The earliest record of any type of insurance was first recorded in the ancient civilization of Babylon. The Code of Hammurabi set aside advance money known as �bottomry� for the security of a ship against marine dangers. The investors were protected from debt by paying a 20% premium in case of loss or damage to the cargo.

The origins of the concept of insurance can also be traced back to ancient Chinese ships. The cargo ships, which used to travel across the Atlantic Ocean to the colonies, would often get either drown or were attacked by pirates. Later, to protect their ships, some investors decided to insure the ship and the cargo by paying a premium amount. This is now known as marine investment. Car insurance was derived from this strategy.

Car insurance was developed after it was decided by policy makers that operating a motor vehicle on public property was a privilege. Hence, it was decided that car owners must buy insurance to protect innocent people against injury and damage to property.

A British company wrote the first car insurance policy that offered liability coverage in 1895. The first liability car insurance policy written in the United States took place in 1898 and it was written for Dr. Truman J. Martin.

The first mandatory car insurance law was introduced in Massachusetts in 1927. However, car insurance policies had come into existence much earlier. In fact, the policies started almost one hundred years before the introduction of the motor vehicles in the United States in 1908.

Nowadays, every state in the United States has a mandatory car insurance requirement. Although car insurance obligations different from state to state, they all require a minimum of liability coverage to protect victims from injury.

Car insurance is a necessity. Should you ever be involved in a car accident, it can save you thousands of dollars. The insurance plan is easy on the budget, as most insurance companies offer monthly payment plans.

How Car Insurance Works

How Car Insurance Works - The ABC's of Car Insurance

Most states have laws that make buying car insurance mandatory before you can start driving. So if you own a car, you have probably heard about car insurance. But do you understand exactly how it works?

The purpose of car insurance is to pay for the bodily and property damages incurred after an accident. The law requires all registered vehicles to be insured whether they are driven regularly or not.

The mandatory minimum insurance as per state law is known as �liability insurance�. It varies from state to state. Liability insurance covers any injury or damage to the other person or his vehicle if you are responsible for the accident.

For instance, if your state policy requires you to have a 25/50/10 plan, it means that $25,000 is for bodily injury suffered by the other driver, $50,000 covers medical expenses for bodily injuries suffered by everyone in the accident and $10,000 pays for property damages.

Some states follow a tort system. Under this system, one of the parties involved in the accident is believed to be responsible for it. The guilty party and his insurance company have to pay for all the damages caused by the accident.

Some states also require a �No Fault Insurance�. This coverage pays for damages regardless of who was at fault in an accident. All the money collected through this insurance is put in a common fund by the insurance provider, which is paid to other entities such hospitals for providing you with treatment or a garage for repairing your car.

Beware of companies that offer low auto insurance rates, but charge exorbitant amounts as No Fault deductibles.

Some states require you to buy uninsured and underinsured motorist coverage. This is to help protect you against damages caused by uninsured drivers.

A Personal Injury Protection Coverage (compulsory in some states and optional in others) pays for medical expenses of the insured driver irrespective of whose fault it is. This is especially beneficial for drivers residing in states that follow a tort system.

A comprehensive coverage pays for damage to the vehicle that occurs due to reasons other than an accident. This includes damage due to vandalism, theft or natural causes such as an earthquake, storm or flood.

Some other important types of coverage that must be kept in mind are Collision coverage, medical coverage and rental reimbursement.

There is no fixed premium that everyone pays for car insurance. It varies for everyone and depends on a number of factors such as your age, driving history, gender, type and make of your car, deductible, coverage type and the state you reside in.

Before you buy a car insurance, don't forget to go through the mandatory state requirements.

Liability, Collusion And Comprehensive Explained

Liability, Collision and Comprehensive Car Insurance Explained

Car insurance is one of the most widely bought insurance in the world. It ensures your ability to cover the costs of potential damages to one�s car, property and any other costs as results of an accident. Following are some of the most preferred car insurance policies.

Liability Car Insurance Policy:

As a driver, it is imperative for you to have liability car insurance coverage. Under this policy, the insurance company covers any type of damage or bodily injuries that you may cause to others during an accident. This policy does not protect you or your car directly as it does not cover the repair costs of your vehicle. It will help you only if you cause an accident that injures other people. It defends you against their claims pertaining to the costs incurred, lost wages, medical expenses and other losses.

Property damage (PD) liability coverage covers any damage caused to the property of other people up to the declared amount provided by the policy (i.e., broken glass, a crushed fender or a damaged fence or wall). Your insurance company will pay for this damage in two cases as follows:

• If you were driving your vehicle or
• Your vehicle was being driven with your consent by some other named driver in your policy.

Property damage liability also pays on your behalf if you damage any kind of public property such as a signpost or light pole, up to the limit you opt for.

Collision Car Insurance Policy:

This is perhaps the most common car insurance policy. Under this policy the insurance company will pay for the repair costs of your vehicle unless it was caused on purpose. If your vehicle is damaged beyond repair, the insurance company will pay you the vehicle's existing market value in cash.

Comprehensive Car Insurance Policy:

This is a very expensive, but beneficial and essential insurance policy that pays you for all the expenses resulting from any vehicle-related accident. It covers the following costs:

� Third party vandalism, fire and theft risks
� Personal accident or damage caused due to natural disasters
� Accidental damage to your vehicle
� Irreparable damage to your vehicle
� Glass replacement (sunroof, wind-screen and windows)
� Damage to or loss of personal property that is carried in your vehicle, to a certain limit
� Medical expenses, to a certain limit

I Just Turned 25, Will I Get Cheaper Car Insurance?

How Does Age 25 Affect Car Insurance?

Insurance companies favor people of a certain age group over others. People belonging to the under-25 age group are considered high risk customers. This is so because people in this age group are more likely to be involved in accidents than others. Statistically speaking, reckless behavior usually decreases as people get older.

Insurance companies use all kinds of data to assess the risk associated with a customer. The more the risk, the higher the insurance premium you must pay. Age is one of the factors considered while assessing your car insurance application.

Twenty five year olds and over are considered more mature because they are more likely to have completed college, started a career and family. This makes them more responsible.

Insurance companies charge higher premiums from people who are under 25 years of age even if they have a clean driving record. Teenagers are considered �high risk�. This may seem unfair, but statistics reveal that teenagers and other young people are more likely to be involved in serious accidents than older people.

Even in the under 25 age bracket, the rates of insurance premiums are higher for male than female drivers.

If you are under 25 and don't want to pay high premiums for your car insurance, consider getting married. As funny as the idea may seem, it is true that car insurance premium rates are significantly lower for married people than single. This is because people who are married or have a child are considered more responsible than their single friends.

Single males who are under 25 years of age end up paying the highest car insurance premium rates.

Some states offer driving lessons. On successful completion of these lessons, your insurance premium rates decrease. If you are under 25, you should consider this option.

You may already know that speeding tickets, intoxication or driving under the influence tickets or some other type of traffic rules violation can cause your insurance rates to go up. But if you are under 25, you should be especially careful. The younger you are, the more difficult it gets. Even one speeding ticket can have severe impact on your insurance rate.

The age at which you get your license is very important. A driver, who gets his license at the age of 25, will be charged higher premiums than another 25 year old, who got his/her license at age of 16. This is due to insurance companies taking into account how long did you have the driving license for, even if it has not been used.

Driving safely while you are under 25 can pay off nicely once you turn 25. If you are 25 and have a clean driving record, your car insurance rates will go down. You may get discounts of up to 20%.

My Auto Insurance Rate Suddenly Increased, Why?

Why Car Insurance Rates Increase?

Obtaining the cheapest and probably the best insurance rate for the first time is no guarantee it will remain the same. Rates may change at any time during the lifetime of the policy. The main reason for this would be a speeding ticket for example. Some insurance providers may ignore the first or all traffic offences, while others may consider it an increase of negligence on driver�s part which constitutes an increase in risk. If the driver�s risk increases, the insurance rate will follow.

Changes in Auto Insurance Market

The insurance industry is a very competitive market and when some companies are under certain strains, they may pass some costs to the customers. This may happen if the insurance provider has been providing some very competitive rates to a driver that has been filing repeatedly for claims. After some math, they may realize that a particular insurance policy is no longer sustainable and will need to be increased to cover the costs involved. Some of the changes implemented by insurers are not isolated to drivers with many claims and can simply be mass increase of costs to cover certain operating expenses. This is not fair to all drivers, but it�s how insurance companies may choose to operate at certain times.

Changes in Insurance Policy

Changing you registered vehicle is another reason why your insurance company may increase you premium. We don�t necessarily changes cars exactly at the time when our insurance policy expired, so this is bound to happen to many drivers. Anytime the vehicle information is updated in the policy, the insurance company will recalculate the premium based on the new data. If you used to drive a small car and have just upgrade to a sport or high performance car, the insurance rate will increase. This is because the cost to repair or replace the new car will be different and this causes insurance companies to revaluate the cost and ask you to pay more. This may also be the time a policyholder may add GAP to cover the difference between the new car and amount owed on a loan. This additional coverage will also increase the rate.

Car Insurance Discounts And How They Apply

How to Get a Discount on Car Insurance -Simple Guide to Car Insurance Bargains

The cost of driving your car can increase if your car insurance rate is high. In recent times, with the economic crisis, it is essential to save money. One way to reduce your driving cost it to lower your insurance premiums. In other words, get a discount on your insurance. But how would you get a discount on insurance? The following tips could help you get a discount on your car insurance.

Ads and Special Offers:

Advertisements for insurance companies can be very enticing. However, these advertisements are more offer than not very tricky. When you buy car insurance, you must be wary of all the hidden costs. It is advisable to read between the lines. You must observe closely the terms and conditions. It is, therefore, necessary to read the application form thoroughly before submitting it to avoid any extra payments in future.

Good Drivers Discount

Certain car insurance companies give discounts depending on the driver�s driving credentials. If the driver has been involved in any accidents or has violated traffic rules, his car insurance premium will go up. It is essential that you be a safe driver to avail insurance discounts.

Age Matters

Age also plays a role when seeking a discount on car insurance. Most insurance companies offer discounts to adults over 25 of age, retired workers and people who are above the age of 55. So if you are above the age of 55, ask your insurer about this discount.

Keep you Insurance when Shopping for Bargain

If for some reason you consider changing your car insurance company, it is advisable that you do not cancel your existing policy from your current insurer until you get insurance coverage from the new company. This is because, even if you are without insurance coverage for only a few hours or days, the insurance companies tend to charge you more as they see the non existence of insurance as a bad remark.

Secure you Vehicle

If you have security devises installed in your car, the insurance company might offer you a discount on your insurance. This is because, if your car is equipped with safety tools like anti-lock brakes, global positioning and tracking system and airbags, it reduces the risk of the car being damaged or stolen. Locking you vehicle inside a garage can also help you get you discount as the risks such as theft is reduced.

The above mentioned tips can help you obtain a discount on your car insurance. You can use our free quotes comparison tool at the end of this article to start comparing available discounts from companies in your area.

Comparing quotes from multiple insurance companies is by far the best method to finding cheaper car insurance deal.

Can I Reduce My Car Insurance Rate? If So, How?

How to Reduce your Car Insurance Rate?

Once your insurance rate increases it�s a tough task to reduce it to where it was originally or even cheaper. Companies offering expensive insurance premium sometimes provide better coverage then those who offer cheaper quote. As you have probably realized from reasons why insurance rates increase, it doesn't take a lot of effort to see you insurance rate increase. Speeding ticket and changes in your policy are examples of things that are likely to happen to most drivers. However, there ways to reduce this rate for those willing to dedicate some time and effort.

Shop Around for Discounts

Best way to reduce your car insurance rate is to shop around for discounts. Some insurance companies offer discounts that are not available to existing customers. By comparing available discounts, it�s easier which offers the cheapest and best quote for you.

Driver Competency Tests

Better discounts are available to drivers with good driving records or those who didn't make too many claims. Taking some special courses such as Defensive Driving course or similar will demonstrate a driver skill advantage to your insurance company. Passing these courses may reduce your insurance premium as you will be considered a low risk driver.

Reduce your Yearly Mileage

One other way to reduce you rate is drive your car only when needed. Less mileage on your insurance policy means you spend less time on the road and you are less likely to be involved in an accident. Most people don�t need a car to driver to their local supermarket or visit friend nearby. Using a bike or taking the bus for instance are ways to stay healthy, help save the environment and reduce your insurance premium. After all, it's that difficult to findaffordable auto insurance if you add the right coverage options and remove the ones you don't need.

Finding a cheap car insurance rate is hard, unless you are driving with fantastic driving record and cheap car. Insurance companies provide cheaper quote only to those who are seen as low risk drivers. However, understanding why rates increase or decrease will help you make informed decision when shopping around for a car insurance quote.

Steps To Buy Good Car Insurance

Steps to Buy a Good Car Insurance

How much you pay for car insurance depends on a number of factors including your age, marital status, the area you live in, and the kind of car you drive. The following simple steps will help you determine how much insurance you need to carry. These useful steps will also guide you to get the best car insurance coverage at the lowest possible price.

Step 1: Decide How Much Coverage you Need

To find the right car insurance, check on the amount of coverage you need. Learn about different coverage options available outside you state requirements and then plan accordingly.

Step 2: Determine your State's Insurance Requirements:

Car insurance differs from state to state and it is advisable you meet the state's requirements before you buy car insurance.

Step 3: Evaluate your current Insurance Policy and Driving record:

Before you buy car insurance, you should check the following: the status of your driving record, current coverage and premiums. Set a rough amount of coverage and the amount of premium you are going to pay.

Step 4: Get Free Quotes from Multiple Insurers

If you have an accident, it is necessary that your car insurance covers every expense. Look for those car insurance quotes, which help you to save money but still provide comprehensive coverage.

Step 5: Look for Discounts

Explore all the options relating to discounts. Many insurance companies give discounts for favorable credit scores, good driving records, safety equipment such as antilock brakes and so on.

Step 6: Choosing the Right Insurance Company

Now that you have most of the information in front of you, it�s time to settle for a good company. For this, always consider contacting reputable insurance companies and brokers that has established a good customer service. Check out the financial strength ratings of an insurance company by referring to various rating agencies.

Step 7: Review the Policy Before Signing

After you decide on an insurance company, read and verify the policy. Verify that it contains all the coverage you want. It�s the small print most of us don�t want to read, but it helps to know what you are covered for to decide if it�s worth what you are going to pay. Avoid insurance companies that attempts to set confusing or misleading terms in the policy.

Step 8: Revoke your Old Car Insurance Policy

For existing insurance holders, once you settle for an insurance company, and purchase a new coverage, cancel all coverage with your old or existing insurance company. Also, always carry proof of insurance, at least copies, just in case you are stopped by the police or other law enforcement entity.

Speeding Ticket And Your Car Insurance Rate

How Speeding Tickets Affect My Insurance Rate?

A study done by the National Highway Traffic Safety Administration has revealed that drivers who have received traffic tickets have a higher chance of being involved in an accident than those who have not.

Therefore, as per statistics, getting a traffic ticket makes you a high-risk driver in the eyes of insurance companies. As a result, your insurance premium may go up.

A ticket received for a traffic violation in one state follows you into another state. The ticket stays on your driving record for several years. Along with other factors such as age, gender, car and credit history, insurance companies also go through your driving record also to determine the insurance premium.

Getting a speeding ticket may not have an immediate effect on your insurance premium because insurance companies do not check your history every month. Checking your driving record costs the insurance company money. Therefore, it is not done very often. It is done either once every 3 months or once a year before the contract is renewed. If a speeding ticket is found on your record, the premium charges are likely to increase. Luckily, the rates return to normal at the end of 3 years.

Getting one ticket will not cause increase in your insurance premium as the law in most states prohibits insurance companies from raising the premiums after just one ticket. However, if you get many in a short span of time, your car insurance rate will go up with every subsequent one.

Every company follows a specific procedure for raising the premiums. Some of them may consider the seriousness of your violation while others may raise it by a specific amount every time you get a ticket.

In fact, receiving a number of tickets or being involved in several accidents can cause you to lose your insurance entirely. You become too much of a risk to be sustainable by insurance companies and they may even consider canceling an existing insurance policy.

However, there are some ways to get a speeding ticket off your record. In most states, there are driving improvement programs or classes you can attend to improve and demonstrate good and safe driving skills. It�s possible then to erase those tickets from your record following completion of the course. You can also contest the ticket in court if you believe it shouldn't have been issued. This keeps the ticket from showing up on your driving record when obtaining your car insurance coverage. You can also plead down your ticket to a non moving violation. For a non-serious violation, many state departments will do this.

A clean driving record can get you discounts of up to 20% or more from insurance companies. This can result in substantial savings. However, the benefits of discount will not be noticeable if your insurance provider learns about new speeding ticket or other driving offences.

Car Insurance For Young Drivers

Young Drivers Car Insurance - How to Get the Cheapest Auto Insurance Deals

Young drivers in the United States find it hard to get car insurance. The reason for this is that young drivers are more prone to accidents and insurance companies see them as high risk drivers. This doesn't make life easier for young drivers as every state makes it legal requirement to have car insurance.

Getting an expensive insurance at a young age when you are just starting up is difficult. Young drivers can overcome this obstacle by getting their name added onto their parents' car insurance policies. This can be done at cheaper price, and you may also get a reduced insurance rate.

Under certain circumstances, obtaining regular car insurance through the parents' policy is not possible for young drivers. In this case, young drivers must purchase their own insurance and pay a higher price for it. Here are some tips that can help you find an affordable auto insurance policy.

Shop Online

Using our free quotes comparison form, it is easy to get free quotes from many insurance companies online and compare their rates. Insurance quotes are easy to obtain and are free. You can follow on the policy with the insurance company if you think it�s the most affordable and meets your needs.

Drive a Small Car

Select a vehicle with low auto insurance rates. Cheap cars have the lowest rate of insurance as they have a low cost of repair; they are involved in a smaller number of accidents and are seldom stolen. Frequently stolen vehicles like Escalade and sports cars have higher rates of insurance than sedans. Vehicles fitted with safety equipments also have a low insurance rate.

Watch your Credit Score

Most drivers are unaware that car insurance companies will use every piece of information to access the risk category of a particular driver. Credit score is on factor used to determine your insurance rate. People with a poor credit score have to pay more than people with a good score. Keeping a good credit score will help you get better quotes when shopping for car insurance.

Select the Coverage you Need

Comprehensive or collision coverage covers the cost of damage to your car or covers the value of your car if it�s stolen or written-off. It is recommended to drop collision coverage if your car is old and if you think the premiums could be higher than the car's value. Not taking collision and comprehensive coverage for owner of new vehicles can be a mistake, because repairs to the car after an accident can become expensive. You can avoid the cost of collision and comprehensive if you have enough savings to cover the costs of repairs.

Location, Location, Location...

Car insurance costs different from state to state. Insurance rates in highly dense urban areas such New York are higher than the rates in a smaller or less populated cities. You can reduce the insurance rates by moving to an area with a low population and good neighborhood.

Keep your Records and those of Family Accurate

Factors like your age, status, the distance you cover everyday affect insurance rates. It is prudent to assure that you and your family's records with insurers and various financial and government institutions are updated and correct to get best insurance deals.

10 Tips To Reduce Your Auto Insurance Rate

10 Tips to Reduce Car Insurance Premium

Insurance of your vehicle is one of the most expensive parts of owning a car. Sometimes, people end up paying more for car insurance than the value of the car, which is unreasonable. Here are some tips to reduce the premium of your car insurance:

Tip #1. Try to get quotes from as many companies as possible. It is easiest way to spot the best deals.

Tip #2. Try to have more than one insurance policy with same insurance company. Try insuring your car with the company that insures your house. It is likely that they will offer you a discount on one of the policies.

Tip #3. If there is a second car in your family, then you stand a chance of getting a discount. It is known as the second car on the motor quotation.

Tip #4. Choice of the car also affects the insurance premium. The make and model of the car, the engine size, its age and value are used to calculate insurance quotes. To keep car insurance premiums to a minimum, choose a small car that has low modifications and a small engine.

Tip #5. Car modifications should be kept to a minimum. They affect the premium to some extent. Modifications that enhance the security of the car such as alarms reduce the premium.

Tip #6. Keep your car parked safely in a garage. It reduces the risk of theft and the insurance premium significantly.

Tip #7. The deductible is the amount of money that you need to pay before your insurance company steps in to pay the rest. You can offer to pay a higher deductible and save a lot of money in the process. By offering to pay an excess, you reduce the risk associated with you. This way, you only pay for small damages and your company pays for the big ones.

Tip #8. A no claims bonus is an effective way of reducing insurance premium. You need to have your own car insurance policy before you can claim a no claims discount.

Tip #9. Women are considered safer drivers than men. Thus, some insurance companies offer cheaper car insurance to women. If your car is used equally by a male and a female family member, then you can get the insurance in the woman's name. Also, it is advisable to young drivers to add the names of older and more experienced drivers to their car insurance.

Tip #10. Even if you are happy with your car insurance company, it is better to check offers of other companies every year before you renew your insurance.

Why Buy Car Insurance Online?

Advantages of Buying Car Insurance Online

A car insurance policy can definitely come to your rescue if you or your vehicle suffers any kind of damage in an accident. The Internet can be a very helpful tool for getting car insurance. Some of the advantages of buying auto insurance online are as follows:

Saves time and money

You can compare car insurance quotes from different companies by personally visiting them or by calling them. However, it will take a lot of time, as you will need to contact many insurance agents and visit many insurance offices. Most insurance sales agents will chase you, sometimes relentlessly, by phone to follow on quotes to the point where it gets very annoying. An easier way to check and compare quotes is to use our free quotes with no obligation to buy. We can get you quotes from multiple auto insurance providers within seconds, so you all you need to do is compare before you opt for the best one. You can do all this without leaving the comfort of your home or calling anyone!

After you have chosen the most appropriate policy for you and your car, and have carefully gone through all the terms and conditions, you will just have to fill out an online form. Filling the insurance form online also eliminates the possibility of any kind of errors as you have an option to verify your form before you submit it.

This way, by getting car insurance online, you will be saving not only your precious time, but also your money, as you won't be required to pay commissions to any insurance agent.

Comprehensive Information on the Insurance Coverage you Need

Most offline auto insurance businesses don't go through a great deal of details on various aspect of you insurance coverage. Through our website and the power of internet, you can easily find detailed information pertaining to the terms and conditions, car insurance jargon, and insurance quotes of different car insurance companies. In addition, you can compare various car insurance quotes both by coverage and by policy. This will allow you to make an informed decision and choose the insurance policy best suited to your needs.

Grab Bargains and Save!

Getting a car insurance policy online will cost you much less, as the car insurance companies operating online have lesser overhead costs than traditional offline insurance offices. Besides, online advertising is comparatively cheaper than conventional modes of advertising. Hence, online auto insurance companies can charge you less on premiums. Many online insurance companies offer attractive discounts if you buy online and based on your driving record and the safety features of your car. You can consider obtaining an insurance policy from our list of reputable car companies and save more money.

Easier Claim Process

Many online insurance companies enable their customers to make insurance claims online. The procedure to be followed when making a claim online is very convenient and less time-consuming than traditional procedures.

Car Insurance Quotes For Women

Car Insurance for Women - Why Female Drivers Get Cheaper Insurance Rate?

Car insurance companies consider many factors while going through your driving history to decide if you are a responsible driver or not. These factors include the number of traffic violations, number and type of claims, involvement in accidents, and the seriousness of these offences.

To decide the rate of insurance premiums, an insurance company must determine the overall risk associated with you via their own custom metrics system of risk assessment. They consider not only the probability of an accident occurring, but also its severity because this is the factor that ultimately influences the cost of repairs.

Women enjoy a lot more benefits than men when it comes to car insurance. Insurance companies not only offer them lower premium rates, they also have policies dedicated for women only. Some insurance providers even specialize in insuring for female drivers only.

The reason behind this is that women are considered safer drivers than men. They are valued as low risk customers. Even young female drivers are considered more responsible when compared to their male counterparts.

Women tend to drive more safely and carefully. Thus, even when a claim is filed by a woman, it is generally for minor repairs rather than heavy-duty repairs or even a write-off required by vehicles owned by men when they are involved in an accident.

Women may not be better drivers than men, but they definitely make fewer insurance claims than them. This makes them low risk consumers in the eyes of car insurance companies. The claims filed by women cost significantly less as compared to claims filed by men. Male drivers accounts for the highest number of vehicle write-offs whereas women tend to report only minor scrapes and dents.

Women have exhibited safe driving habits for a long time. Statistics also support this. On average, women are responsible for only 18% of motoring convictions and 14% of cases of careless driving violations in a year.

Insurance is also cheaper for women because they drive shorter distances annually compared to male drivers. This further decreases the possibility of an accident. Also, women seem to prefer smaller cars with medium sized engines, which have lower maintenance costs compared to the bigger cars preferred by men.

In recent years, an increase in the number of traffic violations involving women has been noted. Also, women are now driving longer distances than before. As there is not enough data to support that female driver are of as of the same risk category as their male counterpart, the likelihood of any changes in insurance premium rates remains rather low.

Many car insurance companies have realized the advantages of offering insurance policies to women and are making the most of it by designing policies to attract female drivers.