7 Types of Car Insurance: Which Ones Do You Really Need?

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The cost of even a small repair makes car insurance nice to have. When we start adding in the medical expenses that can go with a car accident, insurance becomes downright necessary. In many states, insurance is even a legal requirement before you can drive your car out on the road. But a wide variety of options are available when it comes to insurance — there are actually seven different types of car insurance you can choose from in most cases — and it can be difficult to decide just what type of auto insurance is the best choice for you, your vehicle and your budget.

  1. Liability Insurance

When your state requires that you carry some sort of insurance for your car, they’re usually looking for liability insurance. In the event that you are in a car accident and the police decide it is your fault, liability insurance covers the cost of repairing any property damaged in the crash (such as cars or buildings), as well as the medical bills from resulting injuries. Most states have a minimum requirement for liability insurance coverage that you absolutely must have.

  1. Collision Insurance

The biggest problem with carrying only liability insurance is that if there is an accident, you may wind up without the money to repair your own vehicle. A collision insurance policy makes it so that someone else — your insurer — will pay for the repairs to your car. If your car is totaled in an accident, a collision insurance policy will pay out the value of your car. While the payout won’t cover for a brand new vehicle, the sum will equal approximately what the car was worth before the accident.

Collision car insurance comparison isn’t a must-have, as far as insurance goes. If your car is older, it may not be worth paying for insurance, especially if you can work on saving up enough to replace the car if necessary. If you have a good-sized emergency fund, you may be safe without collision insurance. If you’ve chosen a more expensive car or your car is relatively new, however, collision insurance can help you sleep much better at night.

  1. Comprehensive Insurance

Liability and collision insurance policies exclusively cover car accidents. If something else happens to your car — weather damage, theft, an animal collision — you won’t be A comprehensive insurance policy is one of those things that are nice to have. However, coverage can be pricey and may not be worthwhile if your car would be relatively easy for you to replace, if you had to. Note though that you can bring down the price of this policy if your vehicle has an anti-theft and tracking devices installed.

  1. Uninsured Motorist Protection

Just because the law requires everyone to have insurance doesn’t actually mean that’s the way things work out. Even if a driver has a liability insurance policy, most states have relatively low minimums that may not cover all of the expenses that can go along with an accident. One of the worst things that can happen is that you get stuck with the bills in an accident that wasn’t even your fault.

  1. Medical / Personal-Injury Protection

The costs associated with treating injuries after a car accident can be astronomical. In order to cover those costs, medical and personal-injury protection is available. No matter who is at fault, such protection will cover your medical bills along with those of your passengers.

  1. No-Fault Insurance

So far, no-fault insurance is available in twelve states. This option covers injuries and property damage, no matter who is ultimately responsible for a given accident. The decision to choose no-fault insurance really depends on what other insurance options are available to you and at what price. Some no-fault policies can be expensive, making it more cost-effective to choose other options, especially if your car is inexpensive to replace.

  1. Gap Insurance

If you are still making car payments, gap insurance may be a good choice. It’s meant for drivers who still owe money on their cars and need to pay off the vehicle if it is totaled in an accident. It’s generally a good choice if you owe more on your car than you could easily pay off on short notice.

Gap insurance is especially worthwhile if you owe more on the car than you could get for it if you sold it today, since many insurance policies will only cover the value of

[Source: http://moneyning.com/budgeting/7-types-of-car-insurance-which-ones-do-you-really-need/%5D

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Car Insurance and Road Safety

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Background Information to Car & Vehicle Insurance

Motor vehicle insurance has been described as a necessary evil – even if you pay cash for a motor vehicle and you are the most cautious of motorists, you are at great financial risk if you drive an uninsured vehicle.

Having a good insurance policy puts your mind at ease as you drive and this in itself is one of the biggest vehicle insurance benefits – peace of mind that should you be in an accident or have your car stolen, you are covered!

Motor vehicle insurance has become an important business and people are getting more curious about how to safe guard their cars and other vehicles against vehicle accidents, damage and theft.

Basics of Vehicle & Car Insurance

Motor vehicle insurance is essentially a contract in which an insurance company assumes financial responsibility for any loss the insured may incur through damage or theft to his/her vehicle. The bottom line is that you must read your policy and the schedule and make sure that you clearly understand the terminology, terms and conditions, and any exclusion clauses.

Golden rules of car insurance are:

  • Know the promise you’re buying: When you buy car insurance you buy a promise. For years or even decades you may pay your insurer to say: “In certain circumstances that may never arrive, I will give you certain things.” You need to be sure of what these circumstance are and what you will gain from the cover.
  • Keep the promise you are making: When you buy your insurance you give your insurer much personal information such as your habits and the ways you will use the items you are insuring. If the information is wrong, sometimes even a little bit wrong, the insurer’s promise won’t hold up.
  • It is the insurer’s job to pay you what you are due and not more.

Why do I need Car/ Vehicle Insurance?

The South African vehicle hijackings and road crash statistics provide more than enough evidence to the importance of vehicle insurance. Over the last couple of years the cost of repairs has increased dramatically and there has been a significant increase in the average cost of a claim. An increase in vehicle theft, accidents and rising repair costs force insurance companies to recalculate the risk and cost of insuring our vehicles.

If you are an uninsured driver, you alone are responsible for covering the costs of repairing your car or even buying a new one if it is seriously damaged. You will also bear the legal costs of trying to claim damages from another uninsured driver without the assistance of an insurer.

I need Car Insurance – what do I need to know?

The Ombudsman for Short-Term Insurance in his annual report emphasized the need to educate the public on insurance matters. The Ombudsman for Short-term Insurance in South Africa recovered a record amount of R83.9 million from insurance companies on behalf of complainants in 2007.

A staggering 67 percent of the complaints received in 2007 related to motor vehicles. A large number of complaints arose from a lack of understanding of insurance or a failure to understand the significance of the information given to an insurer when applying for insurance.

There are many insurance companies out there and it can be quite tough deciding which to opt for.  Before getting vehicle insurance, it is necessary for you to get a detailed view of different insurance quotes from more than one insurance company. The car insurance quotes may be different for different companies, so it is your responsibility to carefully look into the insurance quotes and then decide which one is suitable for you and your vehicle.

[Source: https://arrivealive.co.za/Car-Insurance-and-Road-Safety%5D

 

How to Buy Cheap Car Insurance

When you buy a car it’s general that you will buy car insurance, but the tricky part is to buy cheap car insurance. Buying cheap car insurance will be easy if you know how to search and compare insurance policy.

Many car insurance companies offer discounted policy, but getting cheaper insurance policy doesn’t mean you get the best car insurance policy. Don’t buy at the first shot, read carefully the total policy conditions; what the policy covers and what the privileges are and compare your policy with other discounted car insurance policy from different companies.
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The car owners who are above 50 years old can be the member of the American Association of Retired People (AARP) and the member has to pay only $12.50 a year who is USA citizens. It seems AARP offers heavily discounted car insurance and older people can easily get free online cheap car insurance quotes.

Car insurance premiums won’t lower or discounted for teenage drivers who don’t have driving record. In some cases insurance companies have cheap car insurance for young drivers. Young drivers who pass the recognized driving test can get cheap car insurance or car insurance companies discount for them. Car insurance companies provide car insurance cheap for the good and skilled drivers.

If car drivers have well driving records without any incident it’s for sure that they are going to get car insurance. But being with the same car insurance company again doesn’t mean car owners will get cheapest car insurance, so check what is the policy your current insurance company offers for renew and what is the policy offering from other companies. Compare as many insurance quotes from different policy and sort out which policy has more discount and cheap then other for you as good driver.

Experiencing having car insurance policy car owners may have edit few coverage, so they should check what coverage they need and what coverage are extra while getting renewed the policy. This simple routine check may reduce the insurance premium and if lucky, they can get cheaper car insurance policy then existing one.

If drivers are women, many car insurance companies have special offer for them such as discount or cheaper. When woman driver is going to buy car insurance online, she should first ask free quotes providing detail information and after getting various insurance rates, she can again provide her basic information such as good driving history, driving license and certificate of immediate taking driving test and describe her present situation with the coverage she need. This process may be providing cheap car insurance.

What car drivers don’t know is that buying car insurance often saves their money if they can go the right way. So follow these tips and you can get some idea how to buy cheap car insurance.

[Source: http://bestinsurancestock.blogspot.in/2013/05/how-to-buy-cheap-car-insurance.html%5D

3 Top Tips for Cheaper Car Insurance

cheap car insurance

Despite the economic recovery, car insurance is one of the few industries where customers are still seeing rising prices year on year.

In part this is due to the increasing number of young and accident prone drivers on the road, but it’s also because insurance companies are aware that most people will happily auto-renew their premium without checking the details. However, with a few tips and tricks, you can easily get cheaper car insurance.

Haggle

The first and most important step when your new car insurance policy comes through the post is to immediately pick up the phone and start to negotiate the terms.

The rapid rise of insurance comparison websites means that you can arm yourself with a multitude of other quotes in a matter of minutes.

The person in the call centre will be heavily invested through commission to retain your custom, so simply tell them the cheaper car insurance deals that you’ve found and they’ll usually be able to match it or reduce their price.

You can play the more risky game of threatening to leave and it will depend on the person you’re talking to as to whether they’ll simply let you go or will go find a supervisor to knock some more money off.

Drop The Perks

If you’re finding that your cheap car insurance premiums are rising each year, even when you’ve not had an accident, have a look at what additional perks have been added to your policy. Insurance companies are notorious for scaremongering their clients into having more protection than they could possibly need and each level of protection can be charged for.

Typical perks that boost up your premiums include unnecessary levels of medical and legal fee coverage, road side assistance and a courtesy car till you’re back on the road. Regardless of the fact that you can get these perks for cheaper with a breakdown recovery service like the RAC or Green Flag, you’ll still save money by removing these from the policy.

he salesperson you speak to will try to guilt you into keeping them, so make sure you’re focused on the cheap car insurance that awaits you at the end of the phone call.

Have A Higher Excess

Finally, having a higher excess in the case of an accident is a sure fire way of getting cheap car insurance. As a general rule of thumb, you’ll pay an extra £100 in premiums for each £200 less of excess you choose to pay.

Of course, the amount of excess you choose has to be dictated by how much spare cash you have available in the case of an accident, but if you’re a safe driver or don’t do a huge number of miles each year, you should be safe with an excess of £500 which should save you around £200 a year.

[Source: http://www.cityinsurance.co.uk/blog/car-insurance/3-top-tips-for-cheaper-car-insurance%5D

The 6 secrets of cheap car insurance quotes

Sometimes car insurance premiums make sense. People living in places with more car crime or who have more expensive cars pay more, for example. But they’re far from the only thing insurers up your premium for.

Auto-Insurance-Tips

Insurers have gone as far as working out surgeons normally have more accidents where they were to blame than any other profession and building society clerks the fewest. They know Virgos were worst for accidents last year, but Pisceans had more convictions.

That means they will up your premium based on age, sex, job, post code and where you park park as well as what you drive.

But car insurance providers don’t have to have to have it all their own way – we’ve found six ways to get cheaper car insurance that they’d really rather you didn’t know.

1. Use the right job title

If you describe yourself as a “chef” when filling in your car insurance application your average quote is £98 higher than if you write “kitchen staff” comparison site GoCompare.com found – and it’s not just cooks that have this problem.

“Music teachers” pay £86 more than “teachers”, “office managers” pay more than “office administrators”, and “construction workers” pay more than “builders” who – in turn – pay more than “bricklayers”.

Basically, if your job fits in more than one category, check car insurance quotes are for all of them before applying. For more on how your job affects your car insurance,check out GoCompare’s guide . And if you’re a full time parent or retired make absolutely sure you check that box and not “unemployed”.

2. Add another more experienced driver to the policy

It’s a crime to say someone who isn’t the main driver of a car is, but adding a secondary driver is perfectly legal – and more than that, it can save you money.

Get their permission first, then add an experienced driver with a clean driving license and decent no-claims history to your insurance.

3. Never leave it till the last minute

Searching around and switching car insurance three weeks before your renewal date, rather than on the day, saves you an average of £280, comparison site Comparethemarket found – with even bigger savings available for younger drivers.

4. Get some cash back

Comparison sites make money because when you switch products with them they get a referral fee from the insurer. But if you’re clever, you can get that money yourself.

Topcashback is offering up to 110.25 bucks cashback when you switch through them. Once you’ve compared prices and found which deal is cheapest, head over to one of them and see if you can get an even better deal by switching through the cashback site.

5. Pay up front

Did you know that many insurers charge interest on your payments if you spread the cost over the year? Well, they do. an average of £62 more Money supermarket worked out. So if at all possible, pay up front.

6. Cut your extras and boost your excess

What’s included in your car insurance quote? Breakdown cover? Windscreen cover? Theft from the car? Driving abroad? Personal accident cover? A courtesy car? Every extra adds to the premium. More than that, a lot of them might already be covered by things like your travel insurance, AA membership, home insurance or even your bank account.

Double check you’re not double paying and then look to see if you really need these extras. Oh, and you need to check how much excess there is on your policy. This is how much you have to pay yourself when making a claim. The lower the excess the higher the car insurance, so work out how what you can afford to pay in the case of an accident and set your excess to that – even £50 can make a difference.

And of course….

These will all lower your quote, but to pay less make sure you’ve compared car insurance providers too.

Source: http://onlinecarinsuranceindia.weebly.com/blog/the-6-secrets-of-cheap-car-insurance-quotes

Why should you choose insurance over warranty?

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We all are fascinated about the concept of extended warranty with the purchase of a product be it an electronic item or a car. And we have to admit that we are often tempted by the offer. But how many of us actually stop to consider an extended warranty and differentiate it from other product that helps mitigate risk at a cost, like an insurance cover. When you buy a new car you receive a warranty from the manufacturer that the car is made available to you in a perfect condition. What we forget is that an unconditional warranty is embodied in the Sale of Goods Act, 1930. Which means this warranty should be applicable through a time period generally accepted as the lifetime of the car.

If it’s breached then we have the right to have the manufacturer either replace or repair a particular part or the product itself. Besides, let’s not forget that the customer can always approach the consumer court for relief in all such circumstances. However, the extended warranty often sold, generally claims to cover limited items like defects in the product, malfunction, accidental damage or in some cases it could be an all risk cover but always for a limited period of time. However, the question here is whether extended warranties adhere to the rules set by the Sale of Goods Act? The question is intriguing because the two concepts (warranty and car insurance) seem very similar but are distinct at the same time from each other.

The article will gives you insights on what is warranty and insurance? A warranty, is essentially an assurance to another person with certain conditions which if not fulfilled couldn’t claim for damages. A car insurance contract on the other hand is simply a contract where for a specified consideration, one party undertakes to compensate the other for loss relating to particular subject such as third party damages, damage to own car, accidental coverage due to natural calamities, stealing, burglary etc.

While having a closer look at the insurance policy and warranty, we can see that insurance effectively provides cover for practically every eventuality, whereas the warranty and an extended warranty, with all their limitations and exclusions, may not.

A car insurance contract is a contingent contract. A contingent contract is a contract in which promise is conditional and the contract shall be perform only on the happening or not happening of some future uncertain events. Essentially, the car insurance provider promises to save the subscriber from loss caused due to risks listed in the insurance policy.

However, the challenge is that though extended warranties seem like distinct concepts, they exhibit all the characteristics of an insurance contract and those who offer them argue to treat them as warranties portraying an edge over insurance. This means that despite the insurance sector being highly regulated, extended warranties escape the applicability of stringent insurance regulations entirely and are fed into the minds of people for purchase.

So, next time when you have to choose between warranty and insurance, stop thinking that warranty offers more than what car insurance provides. Infact, risk covering car insurances would be more economical and useful to customers than an extended warranty. Insurance is a regulated product and easier to claim; and the high cost of extended warranties is disproportionate to the risk it covers.

Source: http://onlinecarinsuranceindia.weebly.com/blog/why-should-you-choose-insurance-over-warranty