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Posts tagged with: Car Insurance

Things to Look For When Buying Car Insurance

Many people believe that the primary criteria to buy car insurance is price. That’s not at all helpful unless you know how your auto insurance works, the things that are covered, and what are the things that you can’t skimp on.

One of the things about comparing car insurance quotes is that you can only compare your quote on the car insurance after understanding the things covered in it and the ones that are best for you. There are so many insurance providers available online that can get you the best help when it comes to car insurance and things covered. You can use the Xfinity internet services to get in touch with them and know about things that you might know before going for your car insurance:

Many Helpful Coverages Are the Cheapest

Liability insurance that is one is supposed to buy is the most expensive and it is supposed to be this way and it might cost the insurance 100s and 1000s of dollars to pay for any kind of damage that you come across. Other insurances and coverages are subject to the value of the car. While collision that pays for your car’s repair if it is done by your end can be a bit pricey as well.

Other optional coverages that include roadside assistance, rental reimbursements, gap coverage and others can provide you with a lot of protection if you increase the price a little. Another expensive coverage might include comprehensive coverage and is only half the price of the collision coverage and a third part of the liability coverage. It is valued at the cost of comprehensive coverage to cover your car in case of theft, vandalism, or if there is a fire.

Uninsured motorist coverage is important as there are many benefits that you can have and many states have a greater number of uninsured drivers than average. 

You Can Take Advantage of Insurance Discounts

Many insurance companies offer different auto insurance discounts for many car safety features, electronic payments, anti-theft devices and many other features. Make sure that you get rewarded for being a safe driver and for having a car that is safe to drive. You can even get rewarded if you stay safe on the road and have a safe car. You can avail such rewards and discounts if you have insurance with a company that appreciates your record.

The Insurance Price Can Vary From Company To Company To Company

Your car insurance rate is different according to the insurance company. This is because all insurance companies use their own formula to calculate risk and determine when you pay for the coverage. This means that any other company will not have the same price for the same policy and this difference can go up to 100s of dollars. So it is a good idea that you should compare the rates before signing up or will end up paying too much.

A Policy Lapse Will Let You Pay More In The Long-run

Many insurance companies consider many drivers who have a driver’s license but don’t have insurance for their cars as risky and irresponsible drivers. So if you will let your policy lapse, you will probably be paying more than usual when you go for buying your car insurance. To make sure that it doesn’t happen to you and you don’t want to pay for your insurance or plan to let your policy expire. Also, make sure that you purchase car insurance before the policy you have at hand is canceled.

The Money Affects Your Coverage

A major part of your car insurance premium is dedicated to the legally required liability part of your policy. It is not a good idea to reduce this amount and save a lot of money because you will be responsible for any damage above your policy limits. Different coverages are very helpful and can be reduced to lower the premium.

High Deductibles Mean Less Premium

The insurance price is based on which company you are closing the deal with. If you want to pay for the maximum part of your own damage by increasing your deductibles, the car insurance company will know that they are not supposed to pay you as much for the claim. This means that you might get a lower premium and if you want to raise your deductibles to save money, make sure that you can afford to pay the deductible if you have to make a claim.

Final Words

We can conclude here by saying that getting insurance for your car might be a tricky business. One of the things that you should always keep in mind when buying your car is getting insurance after it. Not only should you know what you have to pay, but also if there are any rewards and discounts that are part of your policy.

Author Bio:

About Caroline Eastman:

Caroline is doing her graduation in IT from the University of South California but keens to work as a freelance blogger. She loves to write on the latest information about IoT, technology, and business. She has innovative ideas and shares her experience with her readers.


Car Insurance Myths Exposed

Reality check, many of us, still ask our not so expert friends and relatives on various decision-making matters, and that includes buying a CAR INSURANCE! Although they may have experience or knowledge, some that they may be sharing are their personal thoughts or pass on beliefs that are not necessarily true. Those will not help any get the auto insurance that fits their needs and budget. Its high time to expose those myths, learn facts, and get the best auto insurance quotes.

Myth 1: Red, white and black cars are more expensive to insure, are they?

Fact check: No, they are not! This is the most well-rooted myth known, and still many falls for it. Contrary to popular belief, vehicle colors have nothing to do with the computation of auto insurance premium rate. If you know the basics about auto insurance, you will understand why you need to get insurance. The cost will only come second. The make and model of the car, purchase price, the likelihood of theft, the overall safety, and the possible cost of repairs are all weighed in calculating premium rates. Simultaneously, car models that are prone to passenger damage or are frequent thieves target like sports cars cost more to insure.

Myth 2: My credit standing will not affect my car insurability, will it?

Fact check: Yes, it will! Gone are the days when insurance companies don’t include financial stability in the criterion. The insurance industry, the commerce that manages risks, now uses a credit-based insurance score system to determine risks of their potential policyholders. Drivers and car owners who have good credit standing are believed more responsible in meeting their premium dues and have the capability to keep themselves healthy physically and mentally. Their vehicles well maintained, thus fewer chances of meeting accidents. On the viewpoint of the insurance provider, managing their risks is tolerable. Subsequently, premium rates for these drivers and car owners are lesser. Insurance applicants who have a low credit standing most likely cannot avail of monthly payment terms, will get higher premium rates and approval may take longer.

Myth 3: Minimum auto liability coverage required by law is best, isn’t it?

Fact: No, it is not! Every country or state has its own vehicle insurance public policy, most require auto liability coverage but on a very minimal amount. This coverage is responsible for the after-accident expenses such as a third-party vehicle or property damages, bodily injury or death. Lawmakers understand the need for it but do not usually do the calculation on their recommended policies. It is possible that they arrived on the amount using the statistics or researches whereby not every incident was adequately accounted for. Thus, it is way below the entire amount involved when dealing with third party property repair, hospital and other medical bills and burial expenses. Therefore, if insured will only consider the coverage amount required by the state, they are facing the possibility of spending out of their pockets, losing the purpose of purchasing the insurance policy.

The insurance experts recommend a minimum of $300,000.00 per accident and $100,000.00 of bodily damage protection per person.

Myth 4: Staying in one insurance company means savings, does it?

Fact check: No, not necessarily. The only advantage one can get from staying in an insurance company is the ease of automatic annual renewal of the policy. If the insurance provider has other insurance products, then there is also bundle insurance premium discounts. As the saying goes, the only constant in this world is changing, and the same applies to car insurance commerce. This industry evolves according to how the need for protection and handling of risks changes, and an example of this is the scoring systems they apply in approving insurance applications.

Another example is the newly proposed behaviour based insurance system used to detect risky behaviour driving—a driver and car owners coverage level needs and capacity to pay changes also from time to time. For example, insurance holder loss his job and thus can no longer keep with higher premiums. So, shopping around annually, planning on a budget and knowing one’s needs are the key to getting the auto insurance that fits finest.

Myth 5: Monthly premium payment is cheapest, is it?

Fact check: No, it is not! The basis for premium fees is comprehensive, varies from state to state but meeting this financial obligation is another story. Many insurance providers offer monthly, quarterly, semi-annual and annual or one-time (the standard) payment terms. Although paying it monthly or quarterly allows the policyholder to spread the cost and manage their finances well, it is not a good option in the long run. The difference is that insurance companies impose upfront deposits (amount varies per company) and adds interest when policyholder opts to avail monthly as a payment option. It is designed like a loan. Thus, it is not the cheapest.

Myth 6: No claims in previous years means no increase in insurance premiums, right?

Fact check: Wrong, it only has an impact. Auto insurance is not all about driving records and tickets. Although policyholder is proving a sound driving track here, the basis for premium insurance costs includes so many other factors such as drivers age, gender, marital status, coverage levels, vehicle make and model, location, household and so on. But don’t fret, many, if not all insurance companies give discounts and promotions to good drivers (mechanics apply and varies). Also, applying to other auto insurance will be much easier if the driving record is clean. 

Myth 7: Personal auto insurance protects business car uses, too isn’t it?

Fact check: No, it isn’t. Although many self-employed professionals or employees can get away with it, it shouldn’t be that way. If a car is used mainly for business, a business auto insurance must be purchased primarily because personal auto insurance is designed to protect policyholders minimally. It has not enough coverage to protect a business. For example, a business owner used his private car to bring his team to a sales meeting, and while on their way, a van collided with them. He was sued and his company. The insurance provider can only cover the expenses up to the personal auto insurance limit. His business will not be protected.