Car Insurance

There are five basic types of auto insurance coverage: bodily injury liability, property damage liability, medical payments, uninsured and underinsured motorist coverage, and comprehensive and collision insurance, a two-part coverage which covers physical damages to a vehicle.

Although they have big names, most car insurance coverage is self-explanatory and can be figured out in the name of the coverage. Bodily injury liability will pay for any claims made involving bodily injuries caused in an accident, while property damage liability will pay for damages caused to another person’s vehicle – or property - in the case of an accident. Medical payments will cover the medical bills of anyone in the policyholder’s car or any passengers in that car so the costs don’t come out of pocket.

Underinsured and uninsured motorists, will save a lot of worry and hassle if involved in an collision where the person who hit you does not have any or has insufficient insurance coverage. This type of insurance coverage, which in most states only covers bodily injury losses - protects a driver from other drivers who might be negligent.

The final portions of insurance coverage, collision and comprehensive, will help pay for physical damages to your vehicle. Collision means when or if you are involved in a car wreck, any damages caused to your vehicle, like broken headlights or a dented side panel, will be replaced by the insurance company and not from your pocket. Comprehensive covers things like a broken or cracked windshield or natural disasters, such as storms, earthquakes, fires, and other non-collision oriented accidents.

Which state you live in will determine the types of car insurance coverage that you will have to have on your policy. Most states require at least liability insurance at a minimum, and many make sure auto owners have insurance before drivers can even register their car with the state. Still other states use a type of system which doesn’t inquire about insurance until drivers have gotten a speeding citation or has been involved in an accident.

Determining which kind of car insurance is right for you depends on the situation. If your car is worth a lot of money, you will most likely need a higher amount of insurance coverage. The premium will also be higher if the insurance company is expected to pay a lot. The second part of insurance that you’ll have to decide on is a deductible. Generally ranging from $50,000 to $250,000, insurance plans have deductibles that are on average about $500; this will limit how much you pay out of pocket before the insurance coverage will take over. You can set your deductible as high as $1,000 to keep your payments down or set it as low as $200 to keep out of pocket expenses down, depending on your insurance company’s regulations.

The most important types of insurance coverage are collision and comprehensive so there is some protection in case involved in an accident where your vehicle is damaged or completely totaled. That way no matter what happens, you will most likely always have some sort of protection.

You left your home too late and are now rushing to get to an appointment. Or perhaps traffic was backed up and now that it’s freeing up a bit, you want to make up for lost time.

But before you put the pedal to the metal, did you know that speeding is one of the most prevalent factors contributing to traffic crashes? There are approximately 6 million police-reported car accidents every year in America–that’s one accident every five seconds. According to the National Highway Traffic Safety Administration, speeding reduces a driver’s ability to steer safely around curves or objects in the roadway, extends the distance necessary to stop a vehicle and increases the distance a vehicle travels while the driver reacts to a dangerous situation.

Do you recognize any of these other seemingly harmless driving behaviors?

• Swerving or missing an exit while talking on a cell phone?

• Applying lipstick or mascara while driving?

• Driving while reading a newspaper or your text messages?

• Encroaching on the bumper of the car in front of you?

Whether you’re 16 or 60, responsible driving should be everyone’s priority. Additionally, safe driving practices may help you save money on your auto insurance because insurance companies base premiums, in part, on driving records. It pays to find out if your insurer will give discounts for being accident-free. A few habits that may help you become a safer driver include:

• Signaling when changing lanes;

• Slowing down and using caution when driving in bad weather;

• Maintaining a two-second rule when following other vehicles;

• Asking someone else to take over the wheel when you’re tired, upset or have consumed alcohol.

Some insurance companies will also give discounts if you’ve taken a defensive driving class or if you are a student and meet certain requirements such as achieving good grades. Others offer rewards for safe driving where discounts can be earned toward the next renewal premium.

Maybe you finally have the car of your dreams or perhaps, your current auto insurance carrier raised premiums for no good reason again. Whatever the case may be finding the best car insurance rate you qualify for just takes some patience and research on your part. The most important thing is to make sure you get the coverage you want for a fair price.

A key element insurance companies use in determining individual rates is risk. What specific risk means is the likelihood of you and your vehicle being involved in an accident. Certain age groups and other categories often receive lower rates. Some examples of individuals who qualify are those over twenty five years old, especially men who are married, younger drivers who have successfully completed a drivers’ ed course, and people in respectable careers, like professors, attorneys, and engineers. Students can obtain lower insurance rates by performing to high standards in school.

It is considered an indication of maturity and responsibility. The type of area you live in can play a factor in how much an insurance company decides to charge. Rural drivers tend to have lower rates because of the rarity of accidents in country communities. Car owners who frequently use their vehicle during rush hour in highly populated areas are more at risk for the occurrence of an accident. Another way to receive lower insurance rates is to own and drive a car that has the highest manufacturer’s safety rating.

The best way to ensure that you get the best rate possible is to shop around and know the process as well as possible. Many people make the mistake of accepting the first quote they receive. Look into the rates of companies suggested by family and friends. Their experience can take a lot of the guesswork out of the situation. They also know about important features like customer service and how willing the company is to settle a claim.

Another excellent source is the Internet. You can get several insurance quotes in a short time by applying online. Some websites even list more than one car insurance company on their sites for quick reference. As far as knowing the process, make sure you have a good idea of the risk range you fall into. Expecting an excellent rate when you are 19, male, and drive a Corvette is unrealistic. However if you are married, have children, and drive a family car you should realistically expect a better premium offer.

Before officially applying for car insurance another good thing to check out is your driving record. Mistakes happen and you don’t want to be offered higher rates because of a clerical error. Your driving record also has a lot to do with how willing companies are to work with you on an affordable rate.

It is possible to not pay through the nose for car insurance. Like every major purchase, car insurance needs to be properly researched and be sure to get several quotes from various sources before making your final decision.

The more you know about insurance and how it works, the more you’ll be able to save off your premiums. The good news is that www.kanetix.ca has compiled a list of the most common money-saving tips to get you started.

Insure all your cars on the same policy

Most insurance companies offer a “multi-car discount” for customers who insure more than one car on the same policy. This alone can bring you a savings of up to 10 per cent!

Insure your home and car with the same insurer

You can get up to 5 per cent off your premiums if you insure your car and your home through the same insurance company. This is commonly referred to as a “multi-line discount” and is offered by most insurance companies as an incentive to get your home insurance business too.

Increase your deductibles

A deductible is the portion of an insurance claim you agree to pay. Your insurance company picks up the rest. By taking on more financial responsibility, the insurance company considers you less of an insurance risk and will adjust your premiums accordingly.

In other words, the higher the deductible you choose, the lower your insurance rate. How much are we talking about? That depends, but online quotes through www.kanetix.ca show that increasing your deductibles from $500 to $1,000 you could save about 5-10 per cent!

Bonus tip

If your car is getting up there in age, you might want to consider dropping the collision coverage on your policy altogether. Talk this one out with your insurance representative because you need to weigh the cost of the collision coverage with the value of your car and your deductible. But consider this, if your car is worth $1000, and your deductible is $1000, your collision coverage is not going to help.

Choose a car that costs less to insure

Sure they all have 4 wheels and get you from point A to point B, but each car is rated differently - mostly on its previous claims history. For example, the more likely the car is to be stolen or in an accident, the more you will pay for insurance to cover it. If you are buying a new car, compare quotes online first to see how your new car rates with insurers.

Shop around

Auto insurance coverage may be standard throughout the province, but insurance premiums are another story. Coverage from one company to the next can vary by hundreds of dollars. The only way to make sure you are getting the best price for your policy is to shop around and compare rates from several companies.

Some of the major factors that affect what you pay for your auto insurance are - The Type of Auto Insurance Policy - Rule of Thumb in this case is that the higher deductibles you choose, lower is the price you pay for your insurance. Your Car Type - Sports cars generally have a higher cost of insurance compared to stationwagons. Your Age - Young and single males under the age of 25 generally have to pay more for their auto insurance. Your Driving Records - The more accidents in the past, the more you have to shell out. Where You Live - The cost of auto insurance is generally higher in areas where there is a high rate of vandalism. To get the best deal for your auto insurance, its best to get multiple no-obligation auto insurance quotes. Listed above on Auto Car Insurance Quotes .net are free auto insurance quotes providers. Filling up a short form on both Insurecom and Insurancetracker gets you free no obligation quotes from multiple insurance companies in your area allowing you to compare and get the best auto insurance deal for your money.