Category Archives: Finance

The Insurance That Comes With It

1 – Full Coverage Includes Towing and Rental

Full coverage is not a specific type of coverage, but it refers to a bundled option where multiple types of coverage are included. It can be interpreted in different ways, but most companies use the term to refer to minimum liability requirements by the state. It is worth mentioning that the minimum requirements can be different from state to state, so “full coverage” does not necessarily mean “everything is covered” including towing and rental reimbursement. Both of them are simply extras or optional coverage similar to uninsured motorist, vanishing deductible, glass damage, etc. Any optional coverage carries an additional cost.

2 – Driving Record Plays the Biggest Role when Determining Rates

While it is true that driving history has its part as a variable in determining premium fee, this is not necessarily the most important one. There are other factors involved in the calculation such as personal information (this may include age, address, profession, marital status, etc.), mileage, and car models. If you are a student, your grades are also important variables, meaning good grades can reduce premium fee. You should know that credit score is also involved. Good credit score means cheaper premium since the company needs to make sure that you have good financial stability.

3 – Comprehensive Covers Everything that Collision Does Not

In general, comprehensive coverage is for any damage that is not caused by an accident. There are plenty of possibilities and causes of auto damage. If the damages caused by an accident are covered by Collision, some people think that all other causes of damages are covered by Comprehensive. This is totally wrong, since insurer clearly informs what comprehensive coverage covers including vandalism; natural disasters (flood, earthquake, etc.), fire, theft, and hail. So when your car’s gearbox or manifold is broken, you have to pay for the repair yourself.

4 – Driving Safely Certainly Lowers Premium Fee

Good drivers are treated nicely, and there is a big possibility that the firm lowers your rate. If you receive traffic tickets or you are involved in an accident, the insurance firm can ask for the data from DMV. Depending on the types of violation, insurer can easily increase your rate or simply cancel your policy. It is indeed good to drive safe and obey the traffic regulation, but you cannot expect that your premium rates are lowered accordingly. Moreover, you cannot blame the company in case your rate remains the same anyway. Once again, there are other variables involved such as increasing the cost of repair, more lawsuits, and even regional insurance rate trends. It should not, however, discourage you to stay safe on the road; if driving safe cannot lower the rate, at least it does help prevent the company from increasing the premium fee.

5 – Newer Cars Mean More Expensive Insurance

Newer does not always mean better or more expensive to purchase and insure. Every auto comes out of the factories with its specification regarding speed, reliability, safety features, luxurious equipment, etc. Some people also install additional upgrades on their car, for example audio system, satellite navigation, airbags, anti-theft, and more. In some cases, buying used-car and insuring it can be very expensive, especially if it is a sport car, classic car, or any luxurious model. Newer cars can be smaller, easier to drive, safer, or fuel efficient; they are good features to help you reduce the premium rate.

6 – Smaller Cars Mean Cheaper Insurance

Modern autos that are designed to be fuel-efficient, environment-friendly, and used in metropolitan area for space-saving, are usually small. All those features help lower insurance rate, but the insurer also considers the auto prone to “being totaled” in an accident or collision. If the small car is also a sophisticated one, the premium can be very high or even more expensive that bigger cars are.

7 – Purchasing Online is The best

Buying insurance on the internet is convenient at its best. If you are purchasing online, you are doing it mostly because you can do everything right at your home. You can ask for quotes free of charge, do a diligent comparison, and take your time before finally making a purchase; all of them are done without you having to move from your chair. All it needs is a computer and Internet connection. When it comes to auto insurance, the best deal you can get is when you work with an independent agent, who understands everything better. Independent agent works for you and does all the necessary procedures on your behalf. Even better, the agent can describe everything in details directly face to face with you. There are more data and information that you can get from talking with an agent than doing an online research on your own. You will need to know all discounts offered by certain company and how to be eligible, how to bundle auto and home and pay a lower rate, and all your legal rights after you finally make a purchase. They are all important issues, but often overlooked when buying online.

8 – No-fault Insurance Is Only For Those Who Are Not At-fault

Some states have no-fault insurance regulation. It does not mean that the insurer will pay for damages, medical bill, and every cost related to an accident only for the driver who is not at-fault. It means that the auto insurer will pay for accident-related damages regardless who is at fault in an accident.

9 – Totaled Means Total Damage

Most people think they can tell whether their cars are totaled after an accident, but they are wrong. Every company has its own method to determine the case; basically, a vehicle is considered totaled when the cost of repair for the existing damage exceeds the actual value of the car itself. Depending on the company, the actual value of the vehicle is between 50 to 70 percent of the purchase cost when it was new.

10 – Totaled Car Means Paid Loan As Well

If you finance your automobile, you pay for the loan you owe and the rate, too. In case the vehicle is totaled in an accident, the insurance company will not pay off the price of that car. You still have to pay the remaining loan to the lending institution. You can cover the gap between the car’s actual value and purchase price by using gap insurance; it covers the depreciation. A good agent usually offers this kind of coverage when the customer purchased the car on extended loans, for example 5 years or more. It is critically important to some people, but it can be a simple waste of money for others. Make sure you understand what gap insurance is before buying.

11 – Once the Car Is Insured, Vandalism and Theft Are Covered

It is a basic misconception that people consider insurance covers many things including theft and vandalism. As previously mentioned, full coverage does not include extra or optional coverage, for example Comprehensive. You need to purchase Comprehensive coverage to help the company pay for your financial loss in case the automobile is vandalized or stolen.

12 – New Cars Are Most Targeted By Thieves

Everybody likes a new car, and that is why they think thieves have the same perspective. Thieves have different point of view; they do not steal the cars and drive them as everyday vehicles. They need to make money out of the stolen merchandise as soon as possible. This leads them to prefer older cars because the car-parts are easier to sell and probably more expensive too. Furthermore, in certain places where the economy is not very friendly to the people, used cars sell like hot cakes. Let us not forget that older cars are usually easier to steal as well; they have old security system, and there is a big chance thieves already know the dirty trick to unlock the old cars’ doors and start the engine without a key. Newer and more modern autos with sophisticated anti-theft systems are of course more difficult to steal.

Insurance Company Pays for Your Missing Laptop

If your automobile is stolen or involved in an accident and you find that your items such as mobile phone, CD’s, or laptop are damaged or missing, your auto insurer will not pay for your loss. Companies cover the vehicle, medical bills in case the drivers and passengers are injured, and the damages you cause to other cars. All your items stored in the vehicle are not covered, but you can file claims to home insurance company.

Sports Car Owners Pay Higher Premium. This can be true if the variable used for determining the rate is only auto model. Sports car is designed to be fast, so auto insurance considers this a high-risk vehicle. This model is also usually more expensive due to its high-performance engine and good-looking. Please put in mind that some sports auto owners do not like speeding. It makes them quite safe from traffic tickets; thus, they have clean driving record. Some performance cars are equipped with plenty of safety systems including anti-lock brakes, 5-point harness seatbelt, better traction control, cruise control, and more. Sports car is indeed capable of going very fast, but the safety features make it eligible for some discounts.

Tips on Buying Car Insurance

Auto insurers underwrite policies to evaluate the risk given to each insurance applicant. During this process, a person is grouped into a category, such as a high-risk driver, low risk, teenage or elderly. If this risk associated with the applicant is considered too high, the application could be denied coverage altogether. After the results are calculated, the insurance carrier then gives a price, which is based on the perceived risk that driver poses.

1. This is also known as rating the driver

Insurers use this rating as a way to measure what it costs to insure a particular person if a claim is made and how likely claims would occur again in the future. This is often referred to as financial responsibility that an insurer takes on. The tip is to maintain a safe driving record and avoid traffic accidents and you will go a long ways towards getting cheaper car insurance.

2. Not all Insurance Companies Rate Drivers the Same

Many providers use the same general metrics but their algorithms that ultimately determine rates are quite distinct. One of the biggest factors that all insurers use in calculating premiums is the frequency of accidents. When a person files a claim, the insurance kicks in and accidents can cost many thousands of dollars, especially if there is a death involved. The more claims a person files, the riskier he or she is in the eyes of the carrier and more likely to file a future claim. Thus, higher rates are imposed on these at-risk motorist. To keep rates low, avoid incidents and filing claims and you will save a lot of money on auto insurance. If you have had accidents in the past don’t worry.

3. Main Contributing Factors that Affect Auto Insurance Rates

*Driving Record: Auto Insurers will take a close look at how many citations and accidents you have been involved in.

Keep up a good driving record and watch your rates go down.

*The Location you live: If you live in the city, you can expect to pay more than if you live in a rural location with much less traffic.

* The Car you Drive: This is a very large factor that makes up rates. New and expensive luxury or sports cars have some of the highest insurance rates. On the other hand, used cars that are safe and cheap to repair have some of the lowest coverage costs. Get a boring used car and save on coverage.

* Marriage Status: Married people pay less for car ins because they are considered more responsible.

* Your Age: Drivers that are under 25 can expect to pay about double for auto ins. The sweet sport for the lowest rates is between 32 and 62 years of age.

4. Apply for all the Discounts you can

A great and smart way to save on vehicle insurance is to apply for several discounts. If you have more than one automobile, consider getting a bundled or multi-vehicle discount. You can also take a safe driver course and save about 5%. Other popular discounts are good student, military, and even teacher.

5. Shop Direct on the Web for the Cheapest Rates

The internet has literally taken over the world. It has also saved millions of people money on car insurance. Buying car insurance online is smart because you can find direct rate pricing that most brokers can’t match.

Teenage Drivers Auto Insurance

IIHS further suggests that immaturity leads to various risky habits for examples ignorance towards speed limit and the inability to recognize or respond to hazards.

It is therefore not uncommon for auto insurers to charge high premium rate for young drivers. To help lower insurance cost, IIHS recommends parents to only let their teenagers drive safe-vehicles with at least these 4 basic principles:

· Low horse power: vehicles with high-power engines are serious temptations for teenagers to test the limits of their cars.

· Bigger vehicles are safer: small cars are bad, because they offer little protection for drivers in the event of crash. Small SUVs are still in the institute’s recommendation list.

· Electronic Stability Control (ESC): this safety feature helps apply automatic brakes in times when the vehicle suffers from loss of traction.

· Best safety score: the National Highway Traffic Safety Administration (NHTSA) tests every new vehicle and gives score for safety. Teenagers should drive vehicles with at least 4-stars score (5-stars score is best).

Those principles apply anytime parents buy or choose vehicles for their teens. Although the principles seem restrictive, there are still several dozens of vehicles that meet the guidelines. The good thing is that most low horse power vehicles tend to be the less expensive options in the market. The right vehicle reduces the risk of accidents and improves the chance to get affordable auto insurance quote. However, parents and teenagers must work together to keep the record clean. Here are some suggestions to prevent premium surcharge.

1. Help teenagers understand the traffic laws: by far, the most effective way to keep auto insurance premium affordable is to maintain zero traffic violation record. Teenagers may not aware of what some signs and regulations mean, so parents must be able to help their teens understand.

2. Lead by examples: in ideal circumstances, parents teach their children how to drive. Parents play crucial roles in teenagers’ behaviors behind the wheel. If they fail to set good examples, their teenage children will think that it is fine to break traffic laws and show inappropriate attitude on the road every now and then. Action speaks louder than words.

3. Multiple drivers in one policy: before teenagers are ready to drive their own cars, it is best to list them under their parent’s insurance policy. Some companies offer discounts for multiple drivers. This is cheaper and safer option. An independent policy for teenager is also possible, but the total premium rate can be much higher.

4. Good grades: most insurance companies offer discounts for teenage drivers (who are still in college or school) if they get good grades. Academic achievement is good in all cases, but the discount encourages teenagers to study harder.

5. No sport cars: teenagers love sport cars and crave for the high-speed excitement. Apart from the fact that sport cars are expensive to insure, these performance vehicles are quite dangerous for amateur drivers as well. Even if parents can afford to purchase a sporty car for their teenage son or daughter, they need to be safety conscious. Remember that safety always comes first.

6. Driver education courses: completion of driver education courses at reputable institution opens the door for discount. Not all courses/institutions give instant eligibility, so please consult an insurance agent to find out the available options.

7. Drive with them: teenage drivers develop either good or bad behaviors on the road over time. Sometimes it is a good idea to drive with teenagers and see if they are still as obedient-to-traffic-law as when they first started.

8. No drugs and alcohol: as hard as it may seem, parents need to talk with their teenagers on the subject of alcohol and drugs. Have a personal conversation and discuss the matters without the intention to accuse or suspect if they consume such substances. Respect their opinions and explain the safety and health risks from the consumption of drugs and alcohol.

An independent auto insurance policy for teenage driver may hard to come by. If it is indeed necessary to get one, Non-standard auto insurance market welcomes any high-risk driver regardless of the previous traffic violations, involvement in accidents in the past, or credit score.

Good2Go Auto Insurance is a reputable company that specializes on affordable premium for high-risk drivers. To keep the cost low, the company emphasizes on the state’s minimum coverage requirements, but policyholders can opt for more complete protections with the purchase of the optional Collision and Comprehensive Coverage.

Teenage drivers also have good chance to be eligible for discounts as there are multiple options. Good Student discount is available for those who get good grades in school or college, and the Driver Course is also available. Approval process is easy since Good to Go Insurance only requires basic personal data such as name, address, age, profession, and previous insurer (if any). There is no need to produce full DMV records and credit score. For those with DUI record, it is necessary to bring SR-22 document for application process.

How to Get the Best Value Insurance Premiums for Sports Cars

Driving a sport car makes one feel like he or she is driving a vehicle that is a cut above other cars. A number of people fancy sports car and associate them with pride and to many it is a luxury. It is not however difficult to secure an insurance policy for such a vehicle and a number of large insurance underwriters would be willing to insure the vehicle. With free quotes tools, one is able to secure a policy for such a vehicle with a lot of ease. The problem however would be higher insurance rates than other vehicles. It is important to understand why this is the case and how one can reduce such rates to lower levels.

Rationale behind the High Sports Car Insurance

There is a high probability for collision due to their high speed. Even in situations where the drivers are seasoned, which applies to most of the sports cars drivers, insurance companies recognize the cost of spares that are involve in case they are to be replaced. This calls for higher rates to cover for the replacement of these parts.

Such sport cars do have a high profile making them a big target to thieves and vandals. Such attacks may be because of envy, financial gain or rage. Insurers will therefore take a calculated risk against such activities increasing the cost of insuring them. The rate for a sports car will also be relatively higher for individuals who are below the age of 25 years compared to a person over this age. Young drivers are attributed to the largest number of accidents and therefore their rates have to be higher than for older people. Free quote tools are in a position of producing lower sports cars rates for individuals owning such cars. The best companies provide the best insurance covers for sports cars.

How to Reduce the Price for Insurance

Premiums depending on the usage, you can decide to take a limited mileage policy for your sports car in case you use the car during the summer or weekends only. It is understandable that the lesser the car moves around the less the chances of it being involved in an accident. By selecting this option, it is necessary to set a realistic mileage limit. This will help in avoiding confrontations with the insurer if the limits are exceeded. Becoming a club member will impact on the amount of rates payable to the insurer because insurance companies offer discounts to car owner’s club members. The security of the car is paramount in determining how much you pay to the insurance companies. Such cars should be locked up at secure garages when not in use.

Where you fit the car with security devices, insurance rates will reduce. All these are aimed at reducing chances of vandalism and theft. Modifications to the car will increase the amount payable to the insurance company. It would be necessary to reduce further modifications that increase such premiums. You can reduce the cost cover for the sports car insurance premium by accepting a higher voluntary excess of the compulsory excess that is required by auto insurance policies. If you are a young driver and you would like to reassure an insurance company, you can add a more experienced older driver to an insurance policy.

At times, premiums may not reduce as the car becomes older because spares may unlikely reduce in value. This will be the case even where the book value of the car has reduced due to depreciation. Another factor that makes the premiums the same is the labor cost used in repairing the car.