Tag Archive for Car Insurance

Your Guide to Compare Car Insurance Policies

Your Guide to Compare Car Insurance Policies

Your Guide to Compare Car Insurance PoliciesIt truly feels intimidating to search for the right car insurance as it takes much time and effort to compare different policies. However, you can actually get the process more simplified although it may seem tougher initially.

These days, a number of insurance providers are indeed walking an extra mile to make your policy hunting much easier than before. You must first determine what you?re actually looking for in your auto insurance policy.

On most occasions, you?ll be checking out all types of liability insurance besides the collision and comprehensive coverage offered by your favorite insurers. The amount of insurance coverage you need plays a crucial role in determining offers that you choose.

Comparing a few of these two types of insurance policies will give you an idea on how much of coverage you?ll achieve. Out of all types of insurance coverage that you come across, liability insurance seems to be the most common one. All costs that you?re liable to bear in the event of an accident will be reimbursed by your liability insurance provider.

On the other hand, your collision and comprehensive insurance will even cover instances of fire and theft besides any amount that you?re liable to pay for causing damages to another party. It will even bear your damages in case your car gets stolen.

How to pick the right insurance policy

You should compare options in order to obtain a cheap auto insurance policy. But you must remember to choose the appropriate deductible in your attempt to compare collision and comprehensive benefits. The deductible is the amount that you?ll need to bear even before your policy benefits actually come into effect. Your insurance cost is bound to be affected by the deductible; more you pay towards your deductible, less you?ll be paying for the cost.

An easy access to online data and the latest advent of technology has brought down the cost of research for most insurers. You?re likely to achieve a few instant insurance quotes from a vast majority of online insurance providers.

These quotes will give you an idea of how much you?ll need to pay for common coverage even when you don?t get a precise quote offer. Insurance buyers are now able to consult various websites for seeking quotes offered by a large section of insurers.

However, it?s in your best interest to put more time in reaching out to insurers individually and requesting a face-to-face discussion with any of their representatives.

You must acquire more knowledge on the nature of coverage that you find in policies which are being offered by your hand-picked insurers. Inquire about their criteria for availing discounts on policy premiums that you may fit in more easily.

Your premium cost might just be lowered when you find a great discount for being a good driver.
You must find out an insurance policy that matches your income level besides yielding adequate protection in the event of an accident. You must compare different quotes and benefits before you strike up the right deal.

Remember that there?s a policy for just about everyone!

 

How did you choose your car insurance policy?

 

Photo courtesy of: ktphotography

How to Budget for Your First Car

How to Budget for Your First Car

How to Budget for Your First CarAcquiring your first car is a big step in your financial life. Most likely, your first car is going to be a used model, but that doesn?t matter. What?s important is that you are able to pay for it, and that it can get you around town successfully from day to day.

Of course, you don?t want to get in over your head from a financial perspective on this purchase. Overspending on your car could mean you have to get rid of it shortly after you pick it out. To avoid that outcome, check out these tips to help you budget for your first car.

Thinking Monthly

The first thing to consider is how money you can afford to spend on a monthly basis for your first car. Figure out how much money you make each month. Then add up how much of that money is already spoken for with other expenses.

Of course, you want to be able to save some money at the end of the month as well, so don?t be tempted to push your budget right on up to the max. Once you have picked out a number that you are comfortable with for your monthly expenditure on this purchase, you can then move on to the next step in budgeting for your first car.

Don?t Forget Insurance

Making the payments on your first car will be the biggest part of your?expense. But don?t forget about insurance as a part of the puzzle. The insurance premium that you need to pay each month is going to depend on a number of factors, including your driving history, the value of the vehicle, and more. Before you finalize the purchase of any car, make sure you research the cost of the insurance in order to get a clear picture of your total costs.

Buy or Lease

You have two options when you are going to acquire a car for the first time. You can buy the car (new or used), or you can lease it. Each option has advantages and disadvantages, so you will want to think about which one makes the most sense in your case.

Most leases have relatively tight mileage restrictions, so leasing might not be a good option if you tend to drive a lot of miles. Purchasing a car is usually seen as the better way to spend your money, but there are situations in which a lease makes more sense.

Plan for Maintenance Costs

One of the hidden expenses associated with owning a car is having routine maintenance performed on a periodic basis. You will need to change the oil from time to time based on the manufacturers recommendations. There will also be other costs such as tires, brakes, and more.

While these aren?t going to be expenses that you will incur every month, they should be considered. They are going to be part of the overall cost of operating the vehicle. You don?t want your car to become a point of stress within your budget, so think about these maintenance costs while you are building out your budget for this exciting purchase.

 

When did you get your first car? Can you think?anything else that should be included in the budget for your first car?

 

Photo courtesy of: State Farm

What Makes Vehicles so Costly to Insure?

What Makes Vehicles so Costly to Insure?
What Makes Vehicles so Costly to Insure?

Are you in the market for a new car? You may be considering factors, such as the style, size and cost of the vehicle. You may also be considering long-term costs associated with maintenance of the vehicle as well as its fuel economy. But there?s one more item you need to consider in your list: the cost of insuring the car you choose.

There are various factors that car insurance companies consider to determine how much you pay for your premium. Such as if you need car insurance in Maryland, Gaithersburg since it?s capital the associated risks are increased than surrounding cities. These include marital status, age, driving history, credit history as well as geographical location. However, according to a recent study by WalletHub, the type of car you?re driving also plays an important role in determining the cost of your car insurance.

What Influences Insurers

When it comes to types of cars, there are several factors that go into determining how much premium will be charged.

The following are some points to consider when choosing a car:

The Size of the Car

The size of the vehicle influences the cost of insurance. Smaller cars are considered higher risk to insure since they are more likely to be in an accident. This is because younger people prefer smaller cars and are riskier drivers. Accidents involving smaller cars are also more likely to result in fatalities. This makes small fast cars more expensive to insure.

On the other hand, large cars such as SUVs aren?t cheap to insure either. This is because they are likely to cause more damage to property and other cars when involved in an accident, not to mention they?re costlier to repair themselves. If you want cheap car insurance, you?d be safer sticking to the mid-sized cars.

Value of the Vehicle

High-end cars cost a lot more to replace or repair in case of an accident. It therefore makes sense that high-end cars attract higher premiums. High-end cars produced by foreign companies are especially costly to insure. This is because parts are not readily available locally. It can also be difficult replacing the vehicle in case it is written off.

If you?re looking for cheaper insurance premiums, avoid an expensive sticker price. You?ll also cut back on the cost of your maintenance.

Chances of the Car Being Stolen

When your car is stolen, your insurance will cater (if you have comprehensive coverage) the cost of replacing it. Insurance companies are therefore cautious about covering cars that are common targets amongst thieves. Aside from cars that are easy to break into (e.g. Honda Accord) thieves target cars that they can get rid of quickly. They also target cars whose parts are in high demand.

The Size of the Motor

How powerful is your car? Many people who invest in cars with powerful motors like to drive fast. The higher the horsepower on your vehicle the more likely it is to be involved in an accident. Cars with more powerful motors therefore attract higher insurance premiums.

So, Convertible, Hatchback or Minivan?

To start, you?ll want to take your time researching car insurance comparison sites to see what each vehicle type is fetching premium wise.

Minivans are among the cheapest cars to insure. These cars are commonly purchased by families because of their seating capacity and safety features. Married people with children are also thought to be safer drivers.

Hatchbacks attract relatively low insurance rates. Although they are smaller vehicles, they are affordable and often feature mid-sized motors.

Convertibles are considered high-end vehicles. They are often small and fast vehicles. While not heavily targeted for thefts, the horsepower, vehicle value, and size alone easily give convertibles the highest insurance rate out of these three types of vehicles.

What type of vehicle would you choose? Have you found other factors to influence the cost of insurance?

Photo courtesy of: BKD

6 Types of Car Insurance Coverage For All Drivers

Types of Car Insurance For Drivers
Types of Car Insurance For Drivers

The following is a contribution from my blogging friend, Gary.

Although buying auto insurance is mandatory in the United States, the process of getting a policy isn?t as straightforward as consumers would like. There are three different types of car insurance coverage: liability, comprehensive or collision and medical coverage for drivers. Once you’ve determined your insurance needs just fill out a form to quickly generate car insurance quotes and find the best rate. Below, we will discuss the differences between these types of insurance policies to determine which is best suited for your needs.

Medical Coverage For Drivers

If you get into an accident and you or one of your passengers is injured, your driver medical coverage will pay for any hospital bills. The following are the types of medical coverage for drivers.

  • Medical Payments coverage will help cover expenses incurred should you have an accident ? including funeral expenses for you or any of your passengers. This coverage will also be helpful if a car hits you while you are walking or riding a bike.
  • PIP coverage is there to cover the cost of medical for anyone in your vehicle should you have an accident ? even if it?s your fault. Personal injury protection will pay for any medical expense ? including hospitalization, rehabilitation and money you lose for missing work ? provided you live in a no-fault state.

Vehicle-Based Insurance Coverage

Vehicle-based insurance coverage is there to protect your vehicle in the case of an accident. Various types of vehicle-based insurance coverage include:

  • Comprehensive auto insurance helps pay for repairs or replacements if your car needs to be fixed after damages caused by things other than a car accident, like theft or an ?act of God.?
  • Collision auto insurance covers the cost of repair to your car, which is helpful should you be the one deemed responsible for causing the accident. When collision coverage is matched up with comprehensive insurance, you are considered fully covered. While it?s not generally required to have both comprehensive and collision auto insurance, it might be if you want to lease a car.
  • Emergency roadside assistance insurance is a godsend in the case of an accident. Being involved in a collision is bad enough, but, should your vehicle be rendered un-drivable for any reason, not having the means to transport it would be much worse. If you have ERS coverage, you can call a tow truck to come fix a flat, give your car a jump, or tow your car to your mechanic, all without the cost of service fees.
  • Rental car coverage exists to cover the price of a rental when your car is indisposed. To be eligible for rental car coverage you must have full coverage on your insured vehicle.
  • Loan/lease gap insurance supplements the amount between the ACV or actual cash value of your car, and the amount you owe if it is leased or purchased through loan and you have an accident that totals your vehicle. This is a huge help if you owe more than what the car is worth.

For example, you still owe $10,000 on your car, but at this point it is only worth $4,000. If you have an accident, you?d get a settlement check for the amount your car is worth, but you would still owe $6,000. Your loan/lease gap coverage would cover that expense.

  • Customization insurance covers the repairs for anything you have customized your car with ? a pull out stereo, GPS system, a car phone or a custom paint job. There?s no sense in dropping a ton of money on your vehicle just to have your speakers stolen or your expensive paint job all scratched up in an accident.

Liability Insurance Coverage

Regardless of what type of car insurance you choose, you must at least be covered with liability insurance ? it is required by law. If you cause an accident, liability insurance will help pay for the property, medical care and any possible lost income for other drivers and passengers.

Each state that requires liability insurance has set minimum limits that a driver has to have on their policy. The numbers exist in a 3-tier system, like 30/40/10, which would mean:

  • $30,000 as the most the insurance company will pay out for the cost of injuries per person.
  • $40,000 as the overall amount the insurance company is willing to pay for the cost of injuries per accident.
  • $10,000 as the most the insurance company will pay out for property damage per accident.

While you aren?t allowed to get liability insurance lower than what is required in your state, you can get it for a higher limit. But first, we recommend you research the average car insurance rates in your state. Here are some categories of liability insurance:

BI and PD Liability Insurance

BI, or bodily injury insurance, will pay for the cost of medical and lost income for drivers or passengers who are injured in an accident. PD, or property damage insurance, will pay for any repairs or replacement of items damaged in a collision ? be it a vehicle or some other property like a fence.

Uninsured/underinsured Motorist Liability Insurance

Just as with bodily injury and property damage liability insurance, with uninsured and underinsured motorist liability insurance you are protected in case someone is injured or there is property damage. This type of insurance will help pay for expenses should you have an accident with someone who is uninsured or is underinsured in their coverage.

  • Uninsured motorist liability insurance will cover the cost of medical and lost income of those who are insured authorized drivers and passengers of a vehicle in the case of an accident when the other driver has no car insurance coverage.
  • Underinsured motorist liability insurance helps to fill in the gap if the driver who caused the collision doesn?t have enough insurance to pay for your expenses caused by the accident.

No-Fault Liability Insurance Coverage

In no-fault states, all insured drivers are covered in case of an accident, regardless of whose fault it is. Even so, bodily injury liability coverage is mandatory even in no-fault states because, depending on the injury, the driver who caused the collision can be sued. In that case, bodily injury liability insurance can help cover the costs.

It is recommended to purchase property damage liability insurance in no-fault states, because if you are deemed the at-fault driver, you will be held responsible for any and all damage you caused in the collision.

While liability insurance coverage may be the only required type of insurance in order to have the privilege of driving, it is in your best interest to make sure you are fully covered. The benefits that come with full coverage outweigh the costs, and if you have a good driving history record, your costs will be lower than average, freeing up cash to start investing for retirement.

Which of these types of car insurance do you have? Can you think of any other types of car insurance?

6 Simple Ways to Save on Car Insurance

Car Insurance

Car InsuranceHave you ever looked into how much you?re actually paying for car insurance? Sure, you probably know how much you pay into the insurance company each month but are you really saving money on it? If you don?t know the answer to either, then my suggestion is to?start a budget now and also start comparing prices to see how you can be cutting back on all of your services.

If you start comparing car insurance rates, you?ll likely find there can be a wide difference between what different companies charge. Beyond the obvious comparison shopping there are other ways you can save on car insurance as I’ve outlined below.

Buy an Inexpensive Car

There are so many people that?buy a brand new car because they can ?afford? the payment, but they completely forget about the cost to ?insure it! Sure enough, when they call their insurance agent, they discover that they need full coverage which is going to cost them a pretty penny each month. This payment is on top of the car payment as well!

This is not a fun experience, but there is a pretty easy solution. Instead of buying a brand new vehicle, buy a used one. By purchasing a car with a lower value, you will automatically be dropping the amount needed to cover the car and thus save you money each month.

Buy a Car That?s Known to Have Cheap Insurance

The insurance companies have a ton of data that tells them the likelihood of your vehicle getting into an accident. It goes without saying they also know how much it would cost them to repair it as well. Based on their data, some types of cars are just cheaper to drive than others. According to autoguide.com, here at the top 5 cheapest vehicles to insure:

  1. Jeep Wrangler Sport
  2. Honda Odyssey LX
  3. Jeep Patriot Sport
  4. Honda CR-V
  5. Jeep Compass Sport

Get an Online Quote From Their Competitor

If you get a couple of quotes online that are far cheaper than your current insurance, take the quote in to your current insurance provider. Show them what their competitors are offering and ask them if there is anything they can do to reduce your monthly insurance costs. This won?t always work, but if they care about keeping you as a customer they?ll do what they can to make sure you?re happy.

Reduce Your Coverage

If you own your vehicle outright, then you can insure your car for as little or as much as you want. If you have a healthy emergency fund and can afford general car repairs, then why not increase your deductible?

This will very likely lower your car insurance rates each month. Not only that, but if you get into an accident you can pull out of your emergency fund to cover the need. My wife and I actually have a separate bucket for our car repair needs so it would come straight out of that.

Insurance Through Your Work

If you work for a large firm then an outside the box approach could be through your employer. When I worked in the corporate world I had several employers who had relationships with different insurance providers. The beauty of this partnership is that it can often result in reduced rates as well as having the payments auto deducted from your paycheck if you so choose.

My wife and I have all of our insurance coverage through USAA and would take a lot for us to leave them, but often found that some of the car insurance partnerships available were competitive in price.

Switch to Another Car Insurance Provider

This last option is easy. If you try to work with your current car insurance company, but they can?t give you any additional discounts, then switch to a company that can! It really isn’t all that difficult and it could save you hundreds of dollars a year. I’ve done this in the past with both?Allstate?and?Geico?and each time I’ve been able to save money on my car insurance needs.

 

What are some other ways you?ve been able to save money on car insurance? How much is your bill each month? Would you ever cut your coverage to the bare bones and rely on your emergency fund instead?

 

 

Photo courtesy of: Natloans

 

 

*This post was featured on Penny Thots.