The Automobile Insurance Blog

Auto insurance grounding, Tip 3

3. Don’t presume all cars need the same insurance.

Just as you shouldn’t waste insurance on minor incidents, some cars don’t really need full expensive package insurances. Drivers always need to maintain their liability insurance in case they cause an accident but some cars just aren’t worth the hassle, or the expense for that matter. For example, an old Toyota pickup wouldn’t be missing or noticed it if it falls off a cliff the next day. Insuring it with a reasonable deductible would also be useless. It would irritate insurers without promising much upside in the event of a claim.

Auto insurance grounding, Tip 2

2. Don’t have a tiny deductible.

When buying auto insurance, consumers frequently think of it as a way to protect themselves against every ding and scratch. That’s a bad idea. One should insure for what you cannot afford to lose. That means, don’t have a miniscule deductible of $100 or even $250. If you nickel-and-dime the insurance companies with these small claims, you may get socked with a premium hike or they may say they’re not going to insure you.

Policies with higher deductibles that extend to higher coverage levels are not necessarily more expensive and protect drivers from costs associated with more serious car problems. Higher-deductible policies also cost less.

Auto insurance grounding, Tip 1

1. Don’t think the insurance salesman is your friend.

The best policies for consumers aren’t usually the ones that bring in the best bonuses for salespeople. Quite often, it’s the opposite. Smaller policies leave insurers less exposed to risk and proportionately tend to be more expensive. Most probably, they’re likely to be profitable for the insurer. Because of this conflict of interest and other factors, even wealthy clients are often under-insured.

Be certain that you get “liability” coverage, which is usually standard procedure in most areas and covers the costs of both another person’s car damage and injury. “Comprehensive” will protect you if your car gets stolen, catches fire, or is damaged without coming into contact with another car. “Collision” meanwhile, covers damages if your car collides with another vehicle or object, no matter who’s at fault.

How to choose your auto-insurance company

If you are looking for ways on how to choose a good insurer, here are some guidelines for you to consider.

Study consumer surveys. Look for information regarding which company users find the most appealing. You could also ask those who have tried different insurance companies.

Search the internet. Car insurance is discussed in consumer forums and automotive discussion boards.

Get the opinion of repair shop managers. They would know a lot about car insurance.

Research data from the government. Most states have departments that handle complaints against insurance companies. You could go to the Attorney General’s office of consumer affairs or the office of the Insurance Commissioner.

Tips to save on auto insurance

Do you want to save on your auto insurance? No problem! Here are a few tips.

Shop around. There are a lot of options available for you to choose. Choose between different policies. Choose between different coverages. Pick the insurance that best suits your needs and your budget.

Adjust your coverage. Assume more risk. If you pay more for coverage, you will get a discount on your premiums.

Get your discounts. You could get discounts through a lot of ways: by being a senior citizen, being a member of an association, or being loyal to the insurance company. Know the discounts you are entitled to.

Pick a normal car with money-saving safety features. A luxury car costs more to insure than a normal one. That’s because thieves may want to steal it.

Keep a good driver’s record. More tickets and road accidents means more costly premiums.

You can do without expensive premiums

Paying expensive auto insurance premiums in this time of worldwide financial crisis is really something you should do without. Everyone needs extra cash these days, and you need to save all you can for those unforeseen situations.

One way you can decrease auto insurance premiums is by buying a cheaper car, if you’re in the market for one. Cheaper cars are not only light on the budget, but they also have cheaper premiums. And as long as you’re not too picky, there are many cheap but good performance cars out there in the market.

Another thing you need to consider is repair and maintenance. Vehicles with low projected costs for repair and maintenance have also lower premium payments.

So do away momentarily with your dreams of driving a hot spots car out of your garage. Maybe in the future, when things start to look up.

Prompt Claims – Better

Accidents are a fact of life, driving being one of the most dangerous modes of transport anywhere in the world. There are hundreds of accidents on the millions of miles of roads the world over and having auto insurance assures you have the ability to recover from such unseen events if you should happen to have ample coverage for you, your counterpart driver and both your vehicles. One has to be prompt in filing claims to minimize effort and maximize your claim. Requirements are clearly stated in the policy and a prompt call to your agent would allow them to asses the damage for prompt repair of your vehicle and disbursement of funds for medical costs should they be necessary.
A photo is worth a million words and can prove the establishment of blame in accidents in many cases. In some countries, a properly filled out police report duly signed by the responding authority makes everything easier. Others simply require basic requirements to facilitate processing so read the fine-print and get to know what and what not to file for so you build a good standing with your insurance provider and agent.

Have A Caravan Insurance

Image Source: caravanquoter.co.uk

If you have home and car insurance, that’s great! It shows that you are concerned about protecting your properties. But have you ever gone on a vacation trip in your mobile home? and do you know that you will need some kind of an insurance on that mobile home? Yes, anything you own needs to have some coverage, not because it is a requirement of the law but because it is to your advantage if you do this. If you analyze it, everything you own could be stolen or damaged. In this particular case, you will need some caravan insurance. Let’s face it, anything can happen when you are on the road. Even if you are being a defensive driver, a lot of motorists do not exercise the same level of caution in their driving that you do. In the long run, in the event of an accident, you will suffer the consequence of such an incident even if it is not your fault. Even if you can save money upfront on a lower premium plan, in the long run, it will be to your benefit to have a comprehensive coverage in your insurance. It is better to be safe than sorry. Remember, car repair costs are skyrocketing nowadays.

Don’t be a Victim Of Car Insurance Scams!

Insurance fraud is one of the oldest scams in history. For car insurance fraud, not only is it costly, it’s also dangerous because it may cost you and your family your lives. To avoid being an unwitting victim, you should educate yourself with the different types of insurance scam used. Here are a couple:

• Staged rear-end car accidents is when a scam driver gets in front of an innocent car and then slam on their brakes. The innocent driver will rear-end the scam driver, and the scam driver will get to collect money for vehicle damages. Some scammers also fake medical injuries to collect more.
• After an accident, either staged or not, the scam driver will go to another location and cause extensive damage to their vehicle and claim that the damage happened during the original accident.
If an accident does happen, take notes on everything about the other car, the accident, and everybody that was in the other car. Keep a disposable camera in your car to record damage to both vehicles. And when you talk to your insurance company, let them know if you felt something was suspicious.

Insurance Policy for Rental Cars

One of the benefits of automobile insurance is that you also get insurance pay for a car you rented. If you’re car is in the repair shop due to an accident, find ways to secure rental reimbursement coverage. Read your car insurance policy so that you get refreshed with its scope.

Usually, you’d get paid only if your car got stolen or damaged in an accident. The fee you pay for car maintenance, mechanical service, or anything remotely related to collision, will not be covered, though.