It is common knowledge that it is very expensive to get auto insurance for teens. There is a good reason for this, which is statistical evidence. According to research, car crashes are the foremost cause of teenager deaths, and teen driven car crashes are more likely to cause death or injury than others.So, now you know why teens and seniors have to pay more for auto insurance. (more…)
Posts Tagged ‘Auto Insurance’
Teen Drivers & Auto Insurance
Saturday, April 24th, 2010Auto Insurance Online: Tips For Using The Internet To Reduce Your Premiums
Saturday, March 20th, 2010Fortunately, it is not all that difficult to cut down your auto insurance bills. Thanks to the Internet and Google, we can take advantage of the fact that shopping around is easier than ever before.
First off, we will need to find out which online auto insurance providers are offering what discounts. (more…)
Automobile Insurance Michigan: Where Do I Begin Searching?
Sunday, January 3rd, 2010There are a number of websites where it is possible to obtain multiple rates offered by numerous insurance companies that provide auto insurance in Michigan. Indeed you will find that the Michigan rate is freely available for all to see.
You will find that all of the information you need to properly apply for a policy with the different companies in and around Michigan will be found on their websites, in most cases the websites are considerable easy to navigate and very often they give you the opportunity to at least start the process of getting low cost auto insurance right from their website.
Finding the best possible rates
With so much information available freely online now, you can come across many different auto insurance companies quoting different auto insurance rates, which makes it possible to comparison shop, and thus gets the best possible deal.
You should have no problems in locating the Michigan rates online for the various different car insurance firms for the major towns such as Detroit, Dearborn, Clinton etc.
The average premium that you will expect to pay for your auto insurance in Michigan should be in the range of four thousand dollars. Surprisingly enough the 00 mark was more or less the norm some four years ago as well, it would appear that thanks to growing competition in the area in and around Michigan, the dollar mark has not really increased in recent years.
It goes with out saying, failing to open up an auto insurance in Michigan policy really isn’t an option open to you, simple put it just isn’t worth it, you will undoubtedly get caught out and be in a worse financial situation, and then of course there is all the unnecessary worry over what would happen if you found yourself in an accident that you would be submitting you and your family to.
Though every state in the United States has its own insurance policies, Michigan State does also have a no-fault policy, which allows the car owner to claim insurance compensation irrespective of who is to blame for an accident, though there are some limitations. Remember to closely examine each company’s policies not just looking at price to truly weigh up the pros and cons of each company’s deals. This is the way to get the deal you deserve.
Don’t Own a Car? You Still Might Need Auto Insurance
Saturday, December 26th, 2009With the soaring cost of gasoline, many people are seeking more economical ways of getting around. Increasingly, people are car-pooling or taking the bus. Many city dwellers rely solely on mass transit and taxis to get around; they rent cars whenever they need to take longer trips. In at least 20 American cities, car-sharing clubs have sprung up. These clubs own vehicles that are available for hourly rentals to club members. The idea is to give people who occasionally need a car access to one without the cost and inconvenience of ownership.
In all of these circumstances, people retain the option of driving when the need arises. This is not a problem if nothing goes wrong. However, what happens if someone has an accident while using a car-sharing club vehicle? Who will pay for the resulting injuries or damage? The driver will likely assume that the vehicle’s owner has insurance to pay for any damages, and that may be true. However, there are some good reasons not to rely on the club’s insurance:
- The club may fail to pay the premium on its policy, causing the insurance company to cancel it.
- The club may fail to inform the insurance company that it has purchased the vehicle the member is driving. There is no guarantee that the club’s policy automatically covers newly acquired autos.
- The club may fail to comply with a policy condition, giving the insurance company justification for denying the claim.
- The club’s policy may exclude coverage for that particular loss.
- The club’s insurance limits may not be high enough to fully cover the loss.
In truth, the driver of one of these vehicles has no control over the amount and terms of the club’s insurance, nor can he control the club’s actions in the event of a claim. These same issues will apply if he rents a car or borrows one from a friend. What is the occasional driver to do? Strange as it may sound, he should consider buying an auto insurance policy.
Insurance companies can offer auto insurance with a special policy change titled Named Non-Owner Coverage. This policy provides coverage for specifically named individuals when they use vehicles not ordinarily available to them. A standard policy written for a car owner already has this coverage, but a policy for someone who doesn’t own a car must include the special form. The policy covers the driver for:
- His liability for injuries or damage to others,
- Medical payments for relatively minor injuries he suffers while using the car, and
- Major injuries he suffers in accidents with uninsured or underinsured motorists.
Coverage requirements may vary from one state to another, so it is advisable to check with an insurance agent about the coverage in your state. Should the policyholder buy a vehicle, the policy insures the vehicle for these coverages automatically for 14 days.
It is important to understand that the liability insurance this policy provides will pay only after the vehicle owner’s liability insurance is used up. It also does not insure other family members unless it specifically lists their names. Finally, it does not insure the vehicle for collision or other causes of physical damage. An insurance agent can explain options for insuring these types of losses. Because of these coverage limitations, however, the cost of the policy may be relatively inexpensive.
Operating a motor vehicle is always risky, whether the driver owns, rents or borrows the car. Car accidents can be financially devastating. All who plan to drive at some point should make sure they have proper and adequate insurance backing them up.
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Cover Your Classic with Collector Car Insurance
Saturday, December 26th, 2009Do you dream of making heads turn as you cruise around town in a beautifully restored vintage roadster? Have your eye on a classic convertible that brings back fond memories of your high school days? Whether you’re planning to buy a sporty 1960’s classic or a rare vintage vehicle that was produced more than 100 years ago, you’ll need to find the right insurance to cover your unique dream car.
A car you can appreciate
Unlike modern cars, restored classic cars actually appreciate in value as they grow older. That’s exactly why you shouldn’t cover one of these unique vehicles with standard car insurance.
If you total your daily driver, your car insurance company pays you only the actual cash value (ACV) of the car. When insurers calculate this amount, they include the car’s depreciation in the formula. Because new cars are worth a little less every year, you rarely receive the full amount that you paid for the car.
Because classic or antique cars increase in value each year, you’ll need to cover it with special collector car insurance. Such a policy will cover the full value of your vehicle if it is totaled.
Defining a classic
The first step to finding the right insurance policy for your special car is determining if it actually falls into one of the collector car categories. While car enthusiasts sometimes disagree about the precise category years, here’s how these cars are typically defined:
- Veteran or Antique cars were manufactured before 1903.
- Vintage cars were manufactured between 1903 and 1933.
- Classic cars are often a source of controversy among car collectors. Some say classics are vehicles manufactured before 1973 while others say they are at least 20 years old.
If your dream car falls into one of these categories, you should definitely try to cover it with a collector auto insurance policy.
The requirements
Of course, you’ll have to prove that your collector car meets a certain set of standards before an insurance company will agree to cover it under a collector car policy. Every insurer has a different list of prerequisites, but here are some of the most common requirements:
- Your vehicle must be at least 19 years old and in good or restored condition.
- The car must be stored in a fully enclosed and locked building.
- You must mainly use the car for exhibitions, car shows and other such activities. It should not be your primary mode of transportation.
Surprisingly affordable
Many car enthusiasts are surprised to learn that collector auto insurance is relatively inexpensive. One reason the coverage is so affordable is because most insurance companies limit the number of miles you can drive your car each year—usually between 1,000 and 5,000 miles. After all, the less time you spend on the road, the less likely you are to have an accident.
Depending on your state and the insurance company you choose, your coverage options will vary. This is why it’s so important to do your homework and discuss all your options with a professional insurance agent.
Once you chose a policy, be careful to complete all the insurance paperwork as accurately as possible. One small mistake could lead to delayed payment or even denied claims if your car is damaged.
The Magic Number: Understanding Car Insurance Rates
Monday, November 30th, 2009You just bought a new car, and now you’re searching for affordable auto insurance. Once you supply an insurance company with some information, including the make and model of your car, your age, your address, etc., they give you a quote for your monthly premium. But how exactly do they calculate that number?
Read on to learn how insurance companies determine your rate and how you can save money by shopping around.
Different companies, different rates
Many drivers mistakenly believe that insurance rates are set by the state. While auto insurance companies must follow certain auto insurance laws when calculating rates, the rates themselves are not set by law.
When you ask for a quote, the insurance company considers many different factors as they figure out your rate. However, because each insurance company uses their own unique calculation method, you may receive widely varying rates from different insurance providers.
Crunching the numbers
Depending on the laws in your state, insurance companies typically determine your rate based on some or all of the following factors:
- The year, make, model, body type, engine size and safety features of your car
- Your age and gender
- Your marital status
- Your personal credit history
- Your driving record
- Your usage of the car (such as if you are using the car for work, pleasure or as a collectible.)
- Home ownership status and occupation
- How many drivers will be using the car and their ages
- How many vehicles you own
- What kind of coverage limits you want
- Where you live
- Your weekly, monthly or annual mileage
Generally, your insurance agent will enter all of this information into a computerized system. The system automatically places you into a price group based on your personal information. The insurance company then subtracts any discounts for which you qualify from your group’s rate and you’re left with the resulting quote.
Where your money goes
If you think the quote is fair and decide to purchase a policy with the auto insurance company, you’ll start paying a monthly insurance premium. But what exactly does your monthly premium cover? Here’s a typical insurance premium breakdown:
- About 70 percent of your premium pays for losses and loss expenses
- About 26 percent of your premium goes toward marketing, commissions and administrative costs
- About 4 percent of your premium contributes to the insurance company’s profits
You better shop around
Each insurance company has differing sets of claim payments and expenses, and they set rates for each “price group” accordingly. That’s why you’ll likely receive varying quotes from each insurance company. This is why it’s so important to take the time to shop around and find the best rate.
Plus, while insurance companies are prohibited by law to calculate rates based on race and religion, they are allowed to consider your age, gender and marital status. However, each company places emphasis on different factors. For example, while one insurance company may place more weight on a driver’s gender, another company may think their driving record is more important.
This is yet another reason to request plenty of quotes before you settle on an insurance company. In addition to the rate, you should also consider which company offers the type of coverage you desire. Do your homework and find the best fit for your unique auto insurance needs.
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