Car Insurance

Reading auto insurance policies can be like trying to decipher
advanced calculus. It’s really not that difficult if you
understand a few basic terms. Collision, Comprehensive, Bodily
Injury Liability and Property Injury Liability are the main
terms you need to fully understand.

You’ll appreciate Collision Coverage in the event you need
repairs or replacements if your vehicle collides with another
vehicle or property. The higher the deductible you elect, the
lower your premiums will cost you. If you’re at fault for
something, well of course it would still be an accident, as I
doubt you’d plan to run into that guard rail, but how much
would you be able to afford to pay out of pocket for repairs?
$250? $500? $1,000? Just like medical insurance, you’d have to
pay that deductible amount first and then the insurance company
would pay for the remaining charges for the repair.

Another term to become intimately familiar with is
Comprehensive coverage. This is the coverage that pays for
damage caused from falling objects, fire, certain natural
disasters, theft and vandalism. Deductibles work the same way
as with Collision; the more out of pocket costs to you, the
less your insurance premium.

In addition to knowing how much Collision and Comprehensive
coverage you have, you’ll want to know about your liability
coverage. Let’s say you rear-end another driver. Or your foot
slips off the brake onto the gas pedal and you plow down a
mailbox. Your liability coverage will kick in and pay for the
damages that you caused with your insured vehicle. Your
liability coverage will, or could, include bodily injury
(people) and property damage.

You don’t want to go without Bodily Injury Coverage. If you
were at fault in an accident and others involved needed to go
to the hospital and/or lost wages from missing work, those
costs would come out of your pocket if you are not insured with
Bodily Injury Coverage. It doesn’t take a genius to know how
quickly those amounts can add up. This type of coverage can
also help you in the event the other party takes legal action
against you. Many states require you to carry Bodily Injury
Coverage.

The other part of liability includes Property Damage coverage.
Can you imagine how much it might cost should you accidentally
drive into the side of someone’s home? You wouldn’t want to be
caught without property damage insurance should you need to pay
for repairs to another vehicle, building or anything else you
might hit. As with Bodily Injury overage, Property Damage
coverage also helps protect you in the event of a related
lawsuit. Every policy will have its limits and various degrees
of coverage. It’s important that you understand the basics of
what you are paying for and why it is necessary. No one plans
for an accident, be prepared!

Buying a new automobile is usually a bid decision for most
people, and it involves a lot of time, research and most of all,
money. If you are going to be paying for something for five years
or more, you will generally take your time, do your research, and
make sure that you are spending your money wisely on a vehicle
that will last for years. Unfortunately, some new cars, like all
manufactured products, do not perform as they should and are
defective in some way. For reasons lost to antiquity, defective
cars are known as “lemons.”

California became the first state to enact legislation that
provided recourse to purchasers of defective vehicles in 1982;
since then, every state has enacted similar legislation.
Consumers all over the country may now seek either a replacement
vehicle or a refund should they find themselves the owner of a
defective automobile. Even though legislation exists to protect
you if you should find yourself the owner of a lemon, most people
are not familiar with their state’s lemon law. Is it necessary to
file a lawsuit? Do you need a lawyer? Can you go through the
process yourself?

While lemon laws vary from state to state, you can generally file
a lemon law claim yourself. The process usually involves writing
letters to the manufacturer that state your problem and filing a
claim with your state’s Attorney General’s office. You must also
submit your vehicle for repair of the problem; each state
requires that the manufacturer have a “reasonable” opportunity to
repair your vehicle. The next step is probably arbitration, in
which you and the manufacturer present your respective arguments
to an arbitration panel that will rule in favor of either you ore
the manufacturer. In many states, arbitration is mandatory; in
others, you may opt out.

While you may represent yourself during the arbitration process,
you may feel more comfortable hiring an attorney. There are many
attorneys who specialize in lemon law cases, and they may be able
to expedite the process. The presence of an attorney may also
make you feel more comfortable if you have little or no
experience with this sort of procedure. If the of the arbitration
panel does not rule in your favor, or if your state allows you to
opt out of arbitration by choice, you may elect to sue the
manufacturer yourself. This is often a last resort, as
arbitration is often a simpler and faster alternative to lawsuits
involving auto Lemon Law claims. Should you decide to sue, an
attorney will almost certainly be necessary. Many states will
allow you to collect attorney fees in a lemon law-related
lawsuit.

Should you find yourself the owner of a defective automobile, you
can certainly file a lemon law claim yourself, but many people
will find that the process goes more smoothly with the aid of an
attorney who is experienced in lemon law cases. If you think your
car is a lemon and you might need to file a claim under your
state’s Lemon Law, you should first check with your state’s
Website, or contact your state’s Attorney General’s office.

©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner
of Retro Marketing. Retro Marketing, established in 1978, is a
firm devoted to informational Websites, including
LemonLawHelp.net, a site devoted to automobile lemon laws and
End-Your-Debt.com, a Website devoted to information about debt
consolidation and credit counseling.

The law requires you buy auto insurance. So if you must get
cover, how can you reduce costs ? Here’s 7 easy ways to get the
best possible auto insurance deal.

* Multiple Quotes

Get multiple quotes - use the internet and call a few brokers.
It’s easy to gather some good comparison quotes.

Remember to get different types of quotes e.g one from a
direct-sell insurance company; another from an offline broker who
keeps a database of quotes; and a couple from the internet.

Cheapest might not mean best. Will they pay out if you make a
claim ? How financially secure ? How reputable ? Check around
with family and friends, and look for online reviews.

* Different type of car

Insurance costs vary depending on car type. Obviously, that $100k
sports model costs more to insure than your average runabout. If
you’re planning to buy a new car, check insurance costs before
you buy. I once set my heart on a beautiful, high performance,
highly tuned Pontiac.

Luckily I checked the auto insurance before I bought it, because
I couldn’t get insurance. Every broker, every insurance company
flat turned me down because I lived in a high car-crime area. So
I had to forget the car of my dreams until I moved up-town.

* Age and Value of Car

Maybe you’re buying a used car ? Maybe your car saw better days a
few years ago, and now values much lower ? So why pay for
high-priced auto insurance ? In particular, do you still need
fully comprehensive coverage ?

A good rule of thumb multiplies insurance premium by 10, and
compares that figure with your car value. So if you’re quoted
$1000 premium and your car is worth less than $10,000 you may
want to think if comprehensive represents good value. If you drop
collision and/or comprehensive coverage, you should get big
savings.

* Higher deductibles (excess charges)

Most auto insurance companies use deductibles to keep policy cost
down. Deductibles, or excess charges, show what you pay before
your auto insurance policy kicks in. Try requesting quotes with
different levels of deductibles, and see how your quotes vary.

Most internet quote forms contain a box where you can specify
preferred level of deductibles. Ask your broker his recommended
level. For example, going from $250 to $500 deductible can slash
your insurance costs by 20% or more. Go to $1000 and you save a
lot of money. But you must pay the deductible if you need to make
a claim !

* Multiple Insurances

I guess this might come under the ‘Get Multiple Quotes’ heading,
but it’s still worth mentioning separately. You usually get an
insurance break if you buy multiple policies with the same
insurer.

This might mean multiple vehicles, or homeowner and auto
insurance. Either way it’s worth asking about multi-policy
discounts.

* Low Mileage

More and more people work at home. No more commuting. Fewer
business trips. Low mileage on your car. Maybe you do travel to
work, but car pool ?

Either way, look for low mileage discounts.

* Good Driving Record

A good driving record always reduces your auto insurance costs.
Keep a clean drivers license. Don’t speed, don’t drive
dangerously, and you’ll save money (apart from other benefits !)

* Bonus Tip

Okay, I said ‘7 Ways…’, but here’s some extra tips. Fit
anti-theft devices to your car. Go on an advanced driver training
course. Use daytime running lights. If you’re a college student
away from home, consider adding to parents policy.

The road is a dangerous place. Any driver on the road has
life-and-death power over his passengers and everyone he
encounters on the road, including other drivers. Do not, ever,
lose your focus when you are driving. Here are 5 quick tips to
ensuring your safety on the road.

1. Drive safely, or don’t drive. There are many things that can
go wrong on the road. But there are also things that you can do
to lessen the risk on the road. Two rules: Do not drive when
you are drunk, sleepy, or not in full control of yourself. Do
not drive when you are not in full control of the car.

2. Be cooperative. Driving is all about teamwork. You have to
work as a team with the other drivers on the road so as to
ensure nobody gets hurt. You can do anything that people will
reasonably expect you to do. But don’t ever surprise other
drivers by doing unexpected things. This can cause big trouble,
especially on the highway.

3. Think ahead. You need to give your fellow drivers time to
react to anything you do. Don’t do anything sudden. Signal
before you change lanes or turn. Do things evenly, be it
changing lanes, accelerating, slowing down, etc. Allow the
other drivers to mentally compute where you are going to be.

4. Cool it. Don’t let your emotions take control of you. Never
get angry with other drivers, no matter how unreasonable they
are. It is inevitable that drivers make mistakes, even grave or
stupid ones. Some drivers will even weave in and out of traffic,
just to get to the front, and in the process irritate everyone
else. Don’t get angry with them, and never get back at them in
anyway, or you may become a hazard yourself. Always remember to
stay “cool, calm and collected”.

5. Your area of vision is the most important. The rule of thumb
is “if you can’t see, don’t go!” Perhaps your windshield is
cracked. Perhaps your mirrors are not adjusted properly.
Perhaps your windshield wipers are faulty. Don’t drive if you
cannot see, especially in wet weather. It’s always better to be
late than never.

About The Author: Pete Lance is the founder of
http://www.USGasTracker.org , a premier company which helps the
consumer save money on gasoline. Thousands of gas stations
across the nation are tracked daily to guarantee the lowest
prices on gasoline anywhere in the United States.Free daily
emial with locations and prices.

If you’ve got your eye on a little red sports car as your weekend car, for every day, or to help you through a mid-life crisis, be warned that the flashier your vehicle is, the more you’ll pay for auto insurance.

Your choice of vehicle helps determine your auto insurance rate. Esurance tells you how!
Who Pays More?

Auto insurance protects your finances in the event of a loss. Because of higher repair and replacement costs when there’s an auto insurance claim, generally, fast, high-performance vehicles are more expensive to insure than 4-door family sedans. It makes sense that owners of more expensive cars have to pay higher auto insurance rates— these cars may cost more to repair in an accident.

Everyone notices a sports car— in fact, police officers are especially on the lookout for drivers in flashy vehicles. Or, perhaps it’s just more tempting to speed in one! Drivers of flashier cars, especially red ones, are more likely to get cited for speeding and other violations. Speeding tickets on your driving record can really increase the long-term costs of your auto insurance.
Vehicle Features that Help You Save

Safety features are an important part of your vehicle— sports car or sedan. They could save your life in an accident and earn you auto insurance discounts, from auto insurance companies like Esurance. Esurance also offers an auto insurance discount if your vehicle features an anti-theft device of some kind.
Online Research Saves You Money on Auto Insurance

Considering a new or used car? While you’re doing online research for the car of your dreams, get an auto insurance quote from Esurance to find out how much you’ll pay for coverage. You may decide that you’re not ready for that pricey toy when you see how much more it costs to insure!

Esurance has tools and information to simplify your entire insurance experience. Use the FAQ to find answers to your questions about buying and managing online auto insurance. If you’re wondering what all the terminology in your auto insurance policy means, you’ll find explanations for some of the most common auto insurance terms in our online Glossary. Not sure if you’re carrying the right amount of coverage? Get your customized report from our interactive, auto insurance planning tool, Coverage Counselor.