Car Insurance

The biggest worry of most parents today is their children growing up and beginning to drive. They dread having to add them to their auto insurance policy because of the increase in premium. Unfortunately, all children grow up and when they start driving this has to be done. There are several reasons why insurance for young drivers is so high.

The first reason that premiums are high for young drivers is their lack of driving experience. You will need to have, at the least, over three years driving to be quoted a lower rate.

Next is their age itself.. If they are under the age of 25 the rate will mostly likely be fairly high. Normally a single male driver rates higher than a single female. This is because males are rated as a higher risk to insurance companies.

A young driver feels a sense of independence when they begin to drive. It is actually the beginning of responsibility. It is important as a parent to encourage your young driver to have confidence when driving to avoid any fear they might have on the road, to prevent any accidents.

At their age any accident, ticket or a suspension may double or triple an auto insurance premium. As adults, when we have any infraction on our driving record it increases our premium and it hurts our pocket, just imagine being a young driver. Paying for their premiums may help young drivers learn the importance of taking care of what they have and what it means to have special privileges such as driving a car. We must encourage them to realize how car insurance is important and how they must carry the proper types of coverage on the car.

When it is time for our teenagers to get a vehicle we must go with them to pick out a vehicle that best suits their budget. We must explain that a regular sedan or simple vehicle is cheaper in price for insurance then a sports vehicle or sports utility vehicle. As a parent we should have the last decision-making on which vehicle they should purchase at the beginning and explain to them how important it is to obey the laws of driving.

The most important thing is to instill in our young drivers is the importance of keeping their motor vehicle record clean so they are not paying outrageous premiums. It is important to drive safely, not only for them but for everyone else on the road as well. We might be driving carefully but perhaps the person in the other vehicle does not have the same mentality. We must encourage them to keep their eyes on the road and not to get distracted by anything else.

Keep in mind that we were young once. It is exciting for them to feel that sense of independence behind the wheel. So my word of advise to young drivers is, keep your chin up and eyes focused to keep your pocket full.

You just bought a new car and cannot wait to get on the road. What is the first thing you need? No, not some great road music playing on the radio, you need insurance. You are required by law to have auto insurance on your vehicle. Just because insurance coverage is mandatory does not mean that there are not ways in which to save money. Here are eight easy ways in which to cut costs on your auto insurance.

1. Call around. That’s right get out the Yellow Pages and look up Automobile Insurance. Find the name of some insurance companies you are familiar with, such as CarInsurance.com which is not just online, and give them a call. Keep a list of the company and the price quoted as well as the specifics of what is included in that coverage.

2. Go Online. After calling around you can now kick back, relax and surf the net. There are many sites, such as CarInsurance.com, which make it easy because you can quickly see multiple companies and their rates for your particular situation.

3. Get Quotes for different types of insurance with each company you contact. Full coverage at one company may not be the same as it is for another. Maybe you only need liability. Is the new sports car only used on the weekends? If so than you may get a different type of insurance or discount for that.

4. Look at different limits that are available for the insurance coverage you want. Know what limits each quote is giving you. You would not be comparing apples to apples if one company quotes 10,000/20,000 while the next one quotes you 100,000/300,000.

5. Do not be afraid to adjust your coverage to meet your needs. To cut costs when you first get your auto insurance you can start with lower coverage and change it to include more coverage if you have the financial means at a later date. You can also change your coverage by lowering it to save money if you determine your car does not need full coverage anymore and you can now get by with just liability.

6. Buying a policy with higher deductibles will save you money. Before moving your deductible from $250 up to $500 or $1000 make sure this savings will not hurt you in the long run. Make sure you would be able to pay the higher deductible if you need to make a claim.

7. Have a good driving record. If you are a safe, defense driver it will save you. Just think about that next time you feel the need to speed or want to cut some off in an act of road rage. A clean driving record will keep your car insurance rates down.

8. Ask for a discount. See if the insurance agent will be able to cut your costs if you purchase either your homeowners or renters insurance along with automobile insurance at his or her agency. This is called a multi-policy discount. Having all of your insurance going through one insurance company and agent will be easier for you as well.

The law says you need to have insurance on your vehicle no matter if it is a 10 year old clunker or a brand spanking new sports car. Different states have different minimum coverage requirements. Before looking for insurance it would be worthwhile to research what insurance you believe you want to have on your automobile. Once you know what type of insurance you want and need follow the above tips and go save yourself some money.

What is a deductible? A deductible is the amount you pay before your insurance carrier pays any claim. Insurance companies offer deductibles on certain coverage in insurance policies as a method of sharing risk with the people they insure. Insurers believe that if you, the insured, share some of the risk you will likely be more careful and try to minimize the possibility of a claim. Since you, the insured, pay your share before the company is liable for their share, smaller potential claims are often avoided.

What is the right deductible to carry? It depends not only on the particular coverage but further on your willingness and ability to pay the specified amount in the event of a claim. In other words, select a deductible based on your tolerance for risk. Your agent should be able to help you choose a deductible that is right for you. Often, the decision is an easy one as insurers may only offer a few choices in deductible for a specific coverage.

Typically, which type of coverage offers a deductible? The most common type of coverage with a deductible is physical damage (also known as comprehensive and collision). This is coverage for your vehicle itself. For damage caused whether or not at fault. In many cases if you have borrowed money to purchase your vehicle through a bank or credit union, the lien holder will require that you carry this coverage. Thiscoverage is usually required in the event any damage occurs while you are still paying for the vehicle. Typical physical damage deductibles are $250, $500, and $1000. Higher deductibles will reduce the cost of your insurance by lowering your premiums. When evaluating higher deductibles, it is a good idea to consider carefully your circumstances. Ask your insurance provider for quotes for various deductibles, and analyze them carefully before making a decision. The higher the deductible is on aspecific coverage, the lower the premium for that coverage. This is a great way to save on the total cost of your policy. For example, increasing your deductiblefrom $250 to $500 could reduce the physical damage portion of your policy from 15% to 30% depending on your insurance carrier.

Another type of coverage typically offered with a deductible is Personal Injury Protection or PIP. This coverage is also sometimes referred to as No Fault. “No Fault” insurance is a general term that is used to describe any auto insurance system that only requires drivers to carry insurance for their own protection, and places limitations on their ability to sue other drivers for damages. In an accident, under no fault laws, your auto insurance company will pay for your damages (up to your policy limits), regardless of whom was at fault for the accident. Any other drivers involved will be covered by their auto insurance policies. Not every state requires this type of coverage. No Fault is required if you live in: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, Utah or D.C.

No Fault is usually offered with or without the option of a deductible. You can choose to purchase this coverage with a deductible if you want to absorb some of the risk as with other coverage such as physical damage.As with physical damage, the higher the deductible, the lower the premium on the No Fault portion of your policy. Your agent may recommend taking a deductible on your No Fault if you have health coverage elsewhere since you can only make one claim on any one injury. Some health insurance policies exclude automobile accident so it may be wise to check with your healthcare provider to make sure you are covered if you decide to go with a deductible. Common deductibles options on No Fault are $0, $250, $500, and $1000.

A car is “totaled” when it is so damaged that it would cost more to fix it than what it’s actually worth. Insurers differ on how much damage must occur before they consider a car totaled, but over 50% damage will generally do it. When that happens, you generally have two options:

* Take the money and run. Most insurers will offer you the car’s actual cash value (ACV), minus any deductibles you might have. Totaled cars are generally sold to salvage yards and the insurance company keeps those profits. If you don’t agree on the ACV your insurer proposes, you can bring in an independent appraiser at your own expense or seek the advice of an attorney.

* Keep the car and have it repaired. In this scenario, you can take the ACV, minus deductibles and what the insurance company would have gotten at the salvage yard, and fix the car yourself. Keep in mind that these insurance proceeds are usually not enough to fix the car, so make sure you think it through. In addition, totaled cars generally need to go through a state inspection and insurers are sometimes hesitant to insure cars that have been totaled (which will be noted on your title).

Whichever option you choose, make sure it’s an informed decision and don’t sign anything if you aren’t certain of the terms!

There are many reasons a claim can be denied, valid or not. If your claim was denied, take note of the reason(s) given in the denial letter. Then take out your insurance policy and start reading. The denial could be an error based on a lack of complete information or misinformation. But it could also be a correct determination by the insurance company.

Some of the common reasons for denial are:

* No coverage was purchased for the claim presented. For example, if you drive an older vehicle, you may carry only liability insurance and have no collision coverage because it’s expensive. A claim under your policy for damage to your own vehicle will rightfully be denied.

* You made an Uninsured Motorist Claim under your policy and it turns out the other party to the accident was insured.

* You do not qualify as a named insured under the policy. For example, you are a teenager and you are specifically excluded under your parents’ policy because your parents do not expect you to drive their vehicle.

* Your coverage has lapsed because you failed to pay your premium before the end of the grace period.

* The amount of damage claimed exceeds your policy limits and the insurance company will not cover the excess.

* You bought a new car and failed to notify the insurance company to add it to the policy within the specified time given in the policy.

What if, after reading the insurance company’s reasons and reviewing your policy, you still believe coverage has been wrongfully denied? You have certain rights under your policy and under state law. Your insurance company has a duty to fairly and promptly settle your claim in good faith.

Steps you can take if coverage has been wrongfully denied:

* Write back to the insurance company to tell them where their mistake is and provide them with evidence to support your response.

* Appeal the company’s decision to the State Insurance Commissioner.

* Hire an attorney to discuss the error with the insurance company.

* Sue the insurance company for bad faith, breach of contract, and/or violations of your state’s insurance code.