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Liability insurance, which covers the cost to repair damages caused by you, is usually your state’s minimum automotive insurance requirement; however, if you are still making payments on your vehicle, your financer may require you to purchase additional automotive insurance coverage until you own the vehicle.

There are many different kinds of additional automotive insurance, and collision automotive insurance and comprehensive automotive insurance are probably the most popular kinds of additional auto insurance. But what is the difference between collision auto insurance and comprehensive auto insurance? Don’t they both cover everything?

No. Collision auto insurance and comprehensive auto insurance are actually quite different.

Collision auto insurance is automotive insurance that will cover the cost to repair damages to your vehicle that result in an accident caused by you. If repairs to your vehicle cost more than the value of your vehicle, the auto insurance company may deem your vehicle a total loss, in which case you will be compensated for the current and actual cash value of the vehicle.

Collision auto insurance is usually the most expensive of the additional automotive insurance options, which is understandable since the auto insurance company is paying for damages caused by their own policy holder.

On the other hand, comprehensive auto insurance is insurance that will cover the cost to repair damages to your vehicle that result in an accident for which you are not at fault. These damages may be caused by incidents involving natural disasters, theft and vandalism, fire, and animals (think of deer running out in the road during your innocent drive home). Comprehensive auto insurance will compensate you for the total cost of your vehicle before the accident.

Although many people opt to purchase only liability insurance since it’s usually the only insurance required, consider paying extra for these additional auto insurances. You never know when you, or an animal, will be the one to cause damage to your vehicle.

Technorati Tags: collision auto insurance, comprehensive auto insurance, liability insurance

Freedom, as an abstract thing, it cannot be touched nor be held literally by the hand.  But you can create or destroy it, or you can give it or take it away.  But freedom is life.  Would you have the heart to take it away?

Freedom comes in different forms.  It can be a freedom of speech, freedom of loving or freedom of doing anything that you want as long as you are not stepping onto other’s freedom and rights.  That means, even driving on the road also gives a sense of freedom, provided that you are not hurting someone or damaging any property, or else, it will be taken away from you.

Because younger people are the ones mostly involved in auto accidents, driving freely on the road cannot be given to them that easy.  Or let’s put it this way: Insurance companies give high auto insurance rates for your teen son.  Why? It’s because they are being considered as high risks on the road.

Car insurances can vary dramatically in price, so read on to learn how to buy car insurance that is affordable for your teen drivers or to know the few things you can do to help reduce the rates you pay for them.

First, make them realize the importance of keeping a clean driving record.  Speeding tickets, traffic violations and accidents are the things that should be avoided to maintain a good record that will be eventually rewarded with lower premiums.

Another way to reduce their rates is by purchasing insurance with a higher deductible.  The higher the deductible, the lower the premium.

If you are going to buy a vehicle for your teen, be sure to check the class where the vehicle falls into, do not choose a vehicle that falls into a sports class or higher rating class.  A vehicle that is built well with extra safety features is a good choice.

In most states in the UAS and some provinces in Canada, the graduated licensing laws have come into effect.  The basic underlying rule is to restrict new drivers by limiting what their license will allow them to do.

A full auto license such as a class 5 may be issued to them but a letter designation behind it indicates that they are new drivers.  These new drivers have nighttime driving restrictions, vehicle occupant restrictions and a 0 alcohol tolerance restriction to name a few.  After specific period of time, they will be required to take an additional test to remove them from the new driver programmer.

To substantially reduce the cost of insurance of your teen driver, purchase a stand-alone policy from an agency that specializes in providing teen insurance.  A stand-alone policy means that they carry their own insurance and not an additional driver to your insurance.  These insurances keep the premium lower for teen drivers by placing certain concessions on their driving habits.  They may require driving school, no driving after dark, or various other restrictions.

Statistics show that a 16 year old is 10 times more prone to accident than an adult between the ages of 30 and 59, so the reason of insurance companies is giving high rates to them is obvious.

Teach your teenager to become responsive and accountable.  Make them earn your trust for the use of the car and make them accountable to pay at least a portion of their insurance premiums.  A part time job that breeds maturity can be helpful.

A teenager must be guided in his newfound freedom.  It’s an exciting thing for both of you, but responsibility always counts.  The best thing that you can do now is to get online and research for teen insurance rates, so you can get them on the road.

Technorati Tags: teen auto insurance, auto insurance for teens

We’ve all been bombarded with ads, emails, commercials, and billboards saying how much we can save on our auto insurance by switching to another company. It’s a competitive industry. Just  because another company is offering a better rate doesn’t mean you should rush to call and cancel your insurance and switch. There are a few things you need to make sure of before you do.

Here are a few things to watch out for before you switch your auto insurance to another company.

If you’ve been with one company for many years and they offer a credit that waives the first accident you have, you may want to stay or see if the other company can match it. Sometimes this is referred to as good driver discount or a longevity discount or accident forgiveness. The company rewards you for your loyalty by waiving the first accident you have.

This discount can be pretty significant. Since most accidents can raise your rate by 40% for 3 years the potential savings could be several hundreds of dollars over that 3 year period. But when you switch companies, you lose this credit you’ve built up. If you have an accident with that new company how much are you going to regret not having that accident forgiveness by seeing your rates jacked up by 40%?

Another thing to be mindful of is to make sure the company you are switching to is not offering you just a teaser rate for the first 6 months to get your business and then bump you up 6 months later once they’ve got you on their books. Since auto insurance is a profitable industry, companies may offer you a low ball rate to get you to switch and then once they’ve got you increase your rates at the renewal. If the rate the new company quotes seems too goo to be true do more research. Check out insurance forums or search Google for “XYZ insurance + Reviews.”

Watch out for hidden fees. This is one that can surprise you. Some companies charge you for making monthly payments - usually $3-$5 a month. Over the course of a year that comes out to $36-$60. That one fee can take a big bite out of your potential savings so make sure you factor that into the rates you are comparing. Make sure you are really saving money when you switch.

Two other things to keep in mind when shopping around for auto insurance are the new company’s website and hours of operation. Make sure their hours work with your hours. If they are only open from 8-5 and you work 8-5, when are you going to be able to call them if you have a question or need to make a claim? If you do all your business online you want to make sure the company you are looking at has a capable website that can help you 24 hours a day.

You can save money by shopping your auto insurance around. Just be sure to keep in mind the things I’ve mentioned to make sure the deal you’re looking at is really a great deal.

Technorati Tags: switch auto insurance companies, shopping for auto insurance

The truth about fallacies of many car owners believing that the insurance premium coverage for their new car is covered, and maybe the truth just might make you change course.
(1) “No-fault insurance means, is it not my fault?” That means that your insurance company pays for your damages regardless of who’s at fault. No they don’t!

(2) “Can the color of my car affect my insurance rate?” No!
What do influence your rate are your vehicle’s year, make, model, body type, engine size, credit history and driving record.

(3)”If I lend my car to a friend and that friend is in an accident, his or her insurance company will pay for the damages…right?” Wrong!

Your car is your responsibility! And guess what, even though you weren’t present at the time of the accident, you still will receive a mark on your insurance record and your insurance premium could possibly go up.

(4) “Is my insurance rate is set by the government?” No!
The government has nothing to do with your car insurance rate. Where you live, your credit score, marital status and your driving record is what actually affects your premium.

(5) “I recently paid my insurance premium. Is my new car I just purchased is covered?”

Not necessarily. Most automobile policies require that the policyholder notify the insurance company or agent within a specified number of days, if indeed coverage is desired for the newly purchased vehicle.

(6) “Is it a fact that male driver under the age of 25 pay more for auto insurance?” Yes! Male driver under 25 years old can potentially pay more for car insurance than female drivers. However, across the board, teenagers and mature adults pay more for auto insurance, due in large part because these age groups are typically involved in more automobile accidents.

(7) “Can my credit score have any affect on my insurance rate?” Your credit score really does matter! Many Insurance companies take your credit score into consideration when deciding to increase or renew your auto insurance coverage.

(8) “Even without comprehensive coverage, am I still covered for theft, windstorms, and hail and deer accidents?” Many drivers believe that if they only purchase collision insurance, which covers accidents involving objects, that they will also be covered for incidents that involve vandalism, hail, animal accidents and fires. That simply is not true. You need to purchase both collision and comprehensive coverage in order to fully protect your vehicle from all of these situations.

(9) “Can my personal auto insurance cover both my personal and business use of my car?”

If you occasionally use your personal car for business purposes such as transporting clients, going to and from meetings or hauling business equipment, then you will more than likely need to extend your personal car insurance to cover your business use as well. Plus, if your employees use their car while working for you, you will want to also obtain a separate non-owned car insurance policy.

(10) “I’ve never had nor been involved in a car accident, do I still need automobile insurance?” Yes!

Some drivers are lucky enough never to have been or to be involved in an accident. However, if by chance you do have an accident; your risk of losing everything is great. Car insurance is the best protection you can have in the event an automobile accident occurs. It’s also a legal issue - you are required, by law, to have some basic form of auto insurance, and failing to do so carries some fairly strict punishments.

Technorati Tags: auto insurance myths, car insurance, no-fault insurance

With everything else on your mind, have you put your auto insurance on auto pilot? It’s not your fault if you have — lots of people do it. In fact, the insurance companies count on it. They make more money that way by raising your rates over time.

But maybe it’s time you review your policy and compare it with what else might be out there that can save you substantial amounts of money this coming year.

Here are 10 tips that can help you make an informed decision as to whether you are paying too much for auto insurance:

Request higher deductibles.

Your auto insurance deductible is the amount you agree to pay upfront before your insurance company pays its share to repair your damages. Inquire about increasing your deductible from, say, $200 to $500 — you might be surprised at how much you can save every year. In some cases, you could save between 15-30% on the cost of your collision and comprehensive coverage. If you increase your deductible to $1,000, you may be able to cut it even further — perhaps by as much as could decrease that cost by at least 40 percent, or more.

Drop coverage you don’t need.

Do you drive an old beater? Consider dropping collision and/or comprehensive coverage altogether. Who needs to pay a premium that is higher than the actual value of the car to begin with? So go online and check out how much your car is actually worth. You can do this at Edmunds.com.

Don’t pay for double coverage for medical.

If you’re already covered with a decent health, life and/or disability insurance policy, just buy the the minimum personal injury protection that your state requires.

Don’t buy a car that thieves like to steal.

It’s more expensive to insure a car that is popular with car thieves. You can check out the statistics for that at ConsumerAffairs.com. And while you’re at it, don’t buy a car that is expensive to repair.

Drive less.

Many insurance companies offer a “low-mileage discount” to drivers who qualify. So if you can carpool to work, you might save on gas AND insurance. And not only that — you’ll sustain less wear and tear on your vehicle too. Lastly, many cities reserve an express lane on the freeway/interstate for carpoolers — so you’ll get to work faster, too. Call your insurer and find out whether you qualify.

Safety features can save you money, too.

Did you know that You can often get a discount if you own a car with automatic seat belts, anti-lock brakes and/or daytime running lights? Also, if you have an approved alarm system or other anti-theft device you can save money, too.

Put your teenager on your policy.

Don’t put teens on their own policy — it costs too much. And another thing about teens: if they keep decent grads and pass an approved drivers’ training course, you can get a reduced rate for that as well. Lastly, if your teen goes to college more than 100 miles from home, they can qualify for further discounts — if they leave their car at home.

Put all your family’s vehicles with one insurance carrier.

Many insurance companies will be happy to take your premiums for more than one car at a time. And not only that — if you buy homeowner’s and/or life insurance too, you’ll save even more.

Ask this simple question: “What other discounts should I know about?”

If you’re older than 50 and/or retired, you might qualify for a discount through organizations like AARP; if you have no accidents or points on your record, you could qualify for a safe-driver discount; and/or if you’re a longtime customer with your carrier, you could save some money that way.

Reconsider before paying extra for roadside assistance.

Here’s the thing: getting towed might actually increase your premium and/or affect your eligibility for coverage. And adding insult to injury — you might have had coverage through your credit card. Check it out. Sometimes having roadside assistance through an independent company might be the best deal of all.

Conclusion

So there you have it — lots of ways to save on your auto insurance. Pick up the phone and check it out. After all, who wouldn’t like to have an extra few hundred (or thousand) dollars to save or spend?

Technorati Tags: cheap auto insurance, car insurance, low cost car insurance, discount car insurance

A classic car auto insurance quote is often times very difficult to come by. A classic car is very difficult to ensure because they’re so hard to value, and also they’re highly targeted by thieves.

Also, generally speaking restrictions are applied. For instance, your car usually has to be at least 15 years old, you need a good driving record, and drive the car on a limited basis.

Even if you meet these requirement, you often times won’t be able to obtain classic car insurance, depending on your individual situation. Remember that these car insurance companies are taking on a lot of risk by insuring a classic car, and that’s why they are so stingy about who they accept.

However, don’t be discouraged; just because it is difficult to obtain a classic car auto insurance quote, you certainly still can get one if you are persistent. Here are some helpful tips to help you find the right rate insurance for your classic auto.

One of the biggest reasons the classic cars are so hard to insure is that they are highly targeted by thieves. Quite simply, classic cars have the highest theft rate in the country, making a very difficult and expensive to insure.

Also, another consideration is the valuation of the classic car. Obviously, most newer cars are easy to value, as you simply look up the look of the blue book value. Once a car gets past a certain age, however, they start going up in value again; this makes it very difficult to value.

Therefore, you probably don’t want to go with a regular car insurance company for your classic car. Try to focus on companies that specialize in only classic car insurance, as they’ll be more experienced to handle the difficult nature of this insurance.

In fact, there are many these companies, and finding them really isn’t that difficult. Some of the major companies out there are Hagerty, Norwich union, and Lelandwest.

You should probably take a quote from all three of these before making your decision, in order to find out which is the cheapest. Also, whichever one values your car the highest might be the best when you go with, because you get the most money in the case of a theft or accident.

The bottom line is this: it is very difficult to obtain a good classic car auto insurance quote today. However, don’t let that stop you. When you shop around and compare rates with every classic car insurance company, you will certainly be able to obtain the insurance you need.

If you are persistent you can certainly enjoy your classic auto and receive the insurance you deserve. There are few things in life as rewarding as fixing up and maintaining an older car; not only does it turn heads, but is a lot of fun to drive. Hopefully these tips will be able to help you get the best classic car insurance quote possible, and find the coverage you need to get you on the road now.

Technorati Tags: classic car auto insurance quote

People have different opinions when it comes to leasing a vehicle and buying a vehicle, but here’s the basic gist of it: buying a vehicle differs from leasing a vehicle in that buying a vehicle requires you to pay for the entire vehicle, whereas leasing a vehicle requires you to pay for the amount of the vehicle you “use up” during a set period of time. Simply put, once the time period is up the person leasing the vehicle may decide to buy the vehicle, or move on.

There’s no difference, however, in purchasing automotive insurance for bought and leased vehicles. If you lease a vehicle and finance through the dealer or a bank, you’re still required to purchase automotive insurance for your leased vehicle. Just because you’re only paying for the portion of the vehicle that you use during a specific time period doesn’t mean you aren’t responsible for repairing the damages to the leased vehicle, or the damages your leased vehicle may inflict upon another person’s vehicle, or another person.

For example, if your leased vehicle is involved in an accident that is your fault and involves another party, you’re responsible for paying to repair not only the damages to your leased vehicle, but the damages to the other party’s vehicle, as well. At the same time, if your leased vehicle is involved in an accident but no other party is involved, you’re responsible for repairs to your leased vehicle if the accident was your fault.

Too, your leased vehicle may be involved in an accident that wasn’t your fault with a party that doesn’t have automotive insurance. By having automotive insurance for your leased vehicle, you are safeguarding yourself against drivers who don’t have automotive insurance.

The purpose of automotive insurance is universal. Regardless of whether you buy or lease your vehicle, and regardless of your reasons for buying or leasing, you must still purchase automotive insurance.

Technorati Tags: auto insurance and leased vehicles. leasing your car