Car Insurance Tips - Types of Coverage

We all need car insurance, and it is required by most states in the Unites States today. Some states only require liability, while others may also require other types of car insurance. Before you purchase your car insurance it would be best to learn what your state requires and then you can add other types of car insurance as options for better protection. Now, you may be wondering what are the different types of car insurance and what do they cover and do I really need the extra coverage. So, let’s look at the different types of car insurance and what they cover. * Liability insurance pays for accidental bodily injury and property damages to others. . Injury damages include medical expenses, pain and suffering and lost wages. Property damage includes damaged property and automobiles. It will also pay for any defense and court costs if they arise. State law will determine just how much liability coverage you have to purchase, but you can also get more coverage if you desire. * Collision insurance pays for damages to your vehicle caused by collision with another vehicle or object. * Comprehensive insurance pays for loss or damage to the insured vehicle that doesn't occur in an auto accident. This is damage done to your car by such things as fire, wind, hail, flood, vandalism or theft. * Medical Coverage insurance pays medical expenses regardless of who is at fault when the expenses are caused by an auto accident. * Personal Injury Protection pays medical expenses for the insured driver, regardless of who is at fault, for treatment due to an auto accident. * Uninsured Motorist pays for car's damages when an auto accident is caused by a driver who doesn't have liability insurance. * Underinsured Motorist pays your car's damages when an auto accident is caused by someone who has insufficient liability insurance. * Rental Reimbursement pays for a rental car if your car is damaged due to an auto accident. You can choose to only purchase the car insurance that is required by the state in which you live or you may choose to purchase all of the above insurance. Many car insurance companies have packages available where you can mix and match the type of coverage you desire. If you have ever been in a car accident you understand how important it is to have enough coverage. Medical bills can be extensive according to your injuries. Having the proper amount of coverage to cover medical expenses and to pay to have your car repaired is very important. If you do not have the proper coverage you will soon see yourself in debt with medical bills that may be hard to pay if you were injured and are unable to work. You may also get a deal by your age, your sex, and if you use the car for traveling to and from work only. As you compare prices and car insurance companies be sure to ask if they offer any deals because of your perfect driving record or your age. You may be able to save more money than you think. You may also be able to include your car insurance in with your home owners insurance or your health insurance. Sometimes, you can receive a better deal if you use the same insurance carrier for all your insurance needs. But, it is still best to shop around. You may find a better deal and save yourself a bunch of money to spend shopping. Shop around, compare car insurance companies, compare types of insurance coverage offered and decide what you need and desire before you make your choice.

Tips for Getting Cheap Car Insurance

Fourteen suggestions for keeping your motor premiums low Most new and learner drivers are on a limited budget are looking for cheap car insurance. Here are some car insurance tips and suggestions to consider when trying to get a low cost motor insurance policy and keep premiums down: * Opt to pay a higher excess in the event of an insurance claim. * If you have recently passed your driving test, investigate whether it would be cost-effective to complete the Pass Plus training programme to qualify for car insurance discounts. * Investigate buying car insurance online as some companies offer a worthwhile discount for policies purchased in this way. * If your vehicle is not fitted with an approved immobiliser, compare car insurance quotes with and without one fitted. It may be cost-effective to have one installed. * Limit the number of miles you drive each year, and tell insurance companies your typical annual mileage when getting quotes. * Use an insurance broker if you can't spare the time to 'phone or shop around to get quotations yourself. * If you are a student, include Endsleigh in the list of insurance companies that you contact for car insurance quotations. * Restrict the drivers on your car insurance policy. In particular, minimise the number of young drivers under twenty-five. * Drive a cheap car with a small engine. * Start building and protecting a 'no claims' bonus as soon as possible. In the long run, this will have a significant impact on your ability to get cheap car insurance. * Don't modify or customise your car. * If your car was very cheap, it may be cost-effective to have third-party, fire and theft insurance instead of fully comprehensive cover. Compare quotes. * Park your car in a locked garage or other, secure, off-street location overnight. * If you belong to a trade union or professional society check whether it has negotiated cheap car insurance policies for its members. If it has, include the associated insurer in the list of companies from whom you

Rental car insurance tips

Summer vacation plans include renting a car? If so, your insurance agent, not your travel agent, needs to be first on the call list. And it's not too soon to start thinking about which credit card you want to use to pick up the tab. That's because insurance firms, car rental agencies and credit card companies are all competing for your insurance dollar -- and what they offer today could be very different from what they will offer next week. "It's a constant battle, a fight for advantage," says Gerry Goldsholle, the CEO and founder of FreeAdvice.com, a legal Web site for consumers. "It's like something out of [Mad Magazine's] Spy vs. Spy. "But while everyone wants to be your friend now, that could change if you have an accident. "And you don't want to be caught unprepared," says Goldsholle. Collision and liability Ultimately, it's up to you to make sure you're covered. So plan ahead. If you have auto insurance, call your agent and find out what kind of coverage you have. Most auto policies extend to rental cars. Ask specifically about two things: Collision damage waiver and liability. Collision damage waiver, or CDW, covers any damage to the car you are driving. Liability covers damage you do to someone else. "These are the two areas where you don't want to make a mistake," says Jeanne Salvatore, the vice president of consumer affairs for the Insurance Information Institute, a nonprofit industry-sponsored organization. "These are the two areas that are costly." In addition, if you're worried about theft of your belongings, check your homeowners or contents insurance to make sure that what you're packing is protected. Ask your insurance agent if there is a limit on your collision insurance. If you normally drive a 10-year-old Honda, but are planning to rent a brand new Lincoln Town Car, make sure that your policy will cover the complete cost of replacing the more expensive vehicle. "If you're driving a Toyota worth $4,000 and you total [a rental car] that's worth $15,000 -- you've just lost $11,000," says Rob Weagley, an associate professor of consumer affairs and economics at the University of Missouri-Columbia. Some companies don't limit the collision insurance -- meaning you are fully covered no matter what you drive. Other policies set a limit or exclude certain vehicles, like luxury cars. Find out ahead of time what the rules are. If you normally drive an old clunker and you've dropped your collision insurance -- or you don't have either a car or insurance -- you need to purchase a policy at the rental counter or use a credit card that will give you coverage. If you rent cars frequently, get estimates from your regular insurance agent on a policy to cover you -- it might be the cheaper alternative. Credit card coverage Some credit card companies will supplement your auto insurance when you rent a car. Diners Club, for example, provides unlimited collision insurance for a limited period. But the policy excludes exotic cars -- like Porsches and Lamborghinis -- and does not include liability coverage. Also, if you purchase additional collision insurance from the rental car company, you automatically invalidate your Diners Club coverage. Shop carefully. Two people can carry the same credit card, issued from the same bank, but still be eligible for different rental benefits. In the case of American Express, even having the same level of card -- regular, blue, gold or Optima Platinum -- is no guarantee you have the same insurance privileges. Call your credit card company and get the results in writing -- they can fax you the information if you're in a hurry. If you're not, call them twice. It's not unheard of to get two different answers to the same question from the same company. graphic"There's an 800-number on the back of the credit card," says Salvatore. "Call and ask specifically how much coverage do you have and for what." When you talk to your credit card representative, ask about collision and liability. Then find out if there are any exclusions. Besides excluding certain types of cars, some companies will refuse to cover you if you're driving outside the U.S. Others will cover you, but only for a limited time. Many credit companies will not allow you to use their collision insurance if you purchase any from the rental car company. But because some cards do not include liability coverage, they will allow you to purchase that. Merely having "insurance" isn't enough -- find out what kind and how much. Over-the-counter insurance Think you might be interested in over-the-counter coverage from a rental car company? You guessed it -- you've got a couple more phone calls to make. When it comes to the coverage they offer, all car rental companies are not created equal. For $10 to $25 per day, on average, some companies will offer collision, liability, contents and life insurance -- while others just provide collision. Even collision coverage differs. Some firms cover anything on the car. Others exclude a few of the basics, like tires, wheels and glass -- bad news if you get a flat or crack a windshield. If you purchase over-the-counter rental insurance, ask about those dreaded exclusions. Usually, you won't be covered at all if your accident is the result of outrageous behavior on your part, according to Salvatore. So if you crunch a fender going the wrong way down a one-way street in a strange city, you could be on your own. Want to do some wandering in your rental car -- either across state borders or into Canada or Mexico? Find out ahead of time if the company's insurance will still cover you. Avoiding a rate hike? Some vacationers pick up the rental insurance believing that if they have an accident, they'll be protected from a rate increase from their regular insurance company. Wrong. If you have an accident in a rental car and you're at fault -- your home insurance company can raise your rates no matter who picks up the tab, according to Michael Sullivan, a spokesperson for State Farm Insurance. Thinking of not reporting that rental car fender bender to the company back home? Bad idea. Instead, you should call your insurance company as soon as you get back to your hotel. If the worst happens and your credit card or rental car company doesn't pay -- and you haven't reported the accident to your insurance company -- you could end up paying the damages out of your own pocket. The family trip What about letting teens drive a rental car? Can you hand over the car keys without risking your financial future? That depends on whose insurance you're using. If you rely on your regular everyday auto insurance to cover your rental car, chances are that anyone living in your house is covered. If you think you may want your teen to do some of the vacation driving, broach the subject with your agent before you leave home. If you are relying on credit card or over-the-counter insurance from a car company, your teen might not be covered. Ask the company involved who is allowed to drive, and get the answer in writing. In addition, some rental companies have policies about young drivers -- they may not allow them at all or may charge extra to add them to the rental contract. Find out before you get to the rental counter.

Lower Your Car Insurance Cost

Ways To Lower Your Auto Insurance Costs 1. Shop Around Prices vary from company to company, so it pays to shop around. Get at least three price quotes. You can call companies directly or access information on the Internet. Your state insurance department may also provide comparisons of prices charged by major insurers. (State insurance department phone numbers and Web sites can be found here.) You buy insurance to protect you financially and provide peace of mind. It's important to pick a company that is financially stable. Check the financial health of insurance companies with rating companies such as A.M. Best (http://www.ambest.com) and Standard & Poor’s (http://www.standardandpoors.com/) and consult consumer magazines. Get quotes from different types of insurance companies. Some sell through their own agents. These agencies have the same name as the insurance company. Some sell through independent agents who offer policies from several insurance companies. Others do not use agents. They sell directly to consumers over the phone or via the Internet. Don't shop price alone. Ask friends and relatives for their recommendations. Contact your state insurance department to find out whether they provide information on consumer complaints by company. Pick an agent or company representative that takes the time to answer your questions. You can use the checklist on the back of this brochure to help you compare quotes from insurers and on the same coverage. 2. Before You Buy a Car, Compare Insurance Costs Before you buy a new or used car, check into insurance costs. Car insurance premiums are based in part on the car’s sticker price, the cost to repair it, its overall safety record, and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft. These include daytime running lights and anti-theft devices. To help you decide what car to buy, you can get information from the Insurance Institute for Highway Safety (www.iihs.org). 3. Ask for Higher Deductibles Deductibles are what you pay before your insurance policy kicks in. By requesting higher deductibles, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15 to 30 percent. Going to a $1,000 deductible can save you 40 percent or more. Before choosing a higher deductible, be sure you have enough money set aside to pay it if you have a claim. 4. Reduce Coverage on Older Cars Consider dropping collision and/or comprehensive coverages on older cars. If your car is worth less than 10 times the premium, purchasing the coverage may not be cost effective. Auto dealers and banks can tell you the worth of cars. Or you can look it up online at Kelley’s Blue Book (http://www.kbb.com). Review your coverage at renewal time to make sure your insurance needs haven’t changed. 5. Buy your Homeowners and Auto Coverage from the Same Insurer Many insurers will give you a break if you buy two or more types of insurance. You may also get a reduction if you have more than one vehicle insured with the same company. Some insurers reduce the rates for long-time customers. But it still makes sense to shop around! You may save money buying from different insurance companies, compared with a multi-policy discount. 6. Maintain a Good Credit Record Establishing a solid credit history can cut your insurance costs. Insurers are increasingly using credit information to price auto insurance policies. To protect your credit standing, pay your bills on time, don't obtain more credit than you need and keep your credit balances as low as possible. Check your credit record on a regular basis and have any errors corrected promptly so that your record remains accurate. 7. Take Advantage of Low Mileage Discounts Some companies offer discounts to motorists who drive a lower than average number of miles a year. Low mileage discounts can also apply to drivers who car pool to work. 8. Ask about Group Insurance Some companies offer reductions to drivers who get insurance through a group plan from their employers, through professional, business and alumni groups, or other associations. Ask your employer and inquire with groups or clubs you are a member of to see if this is possible. 9. Seek Out Other Discounts Companies offer discounts to policyholders who have not had any accidents or moving violations for a number of years. You may also get a discount if you take a defensive driving course. If there is a young driver on the policy who is a good student, has taken a drivers education course or is at a college out of the area without a car, you may also qualify for a lower rate.

Car Insurance Tips

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