Car Insurance Basics

Car Insurance – What Is Liability And Collision Insurance?

You know full well that it’s the law, but you’ve been driving around without car insurance for a while now. Why? Car insurance is of supreme importance to any driver, no matter how good you think you are. Accidents happen, plain and simple, and you need to be protected in case it does. Not all car insurance is the same, though, and you may be a little confused as to the concepts.

The first term you need to know is liability car insurance. This covers you from claims arising from an accident where there’s bodily damage or damage to property. Generally, there are three main sections of any liability car insurance policy: bodily injury liability coverage, liability coverage for damage to property, and uninsured coverage. The first type of coverage protects you in the case of an accident, for which you are at fault, and others have been injured. Your liability car insurance company will pay any legitimate claims for medical expenses or lost wages. If you’ve run into someone’s wall, or the side of their house, you’ll need liability insurance for property damage, which will pay for repairs. In the instance where you are not necessarily at fault and the other driver does not have liability car insurance, you are protected by uninsured, or under-insured, motorist coverage.

Liability car insurance is not the same as collision car insurance. As you can see, nothing was mentioned about fixing your car in the above description. That’s because it’s not covered under a simple liability car insurance policy. You’ll need collision car insurance, unless you’re willing to pay out of your own pocket. Collision car insurance covers repairs to your car in the case of, you guessed it, a collision with another object. If you’re one of those people who gets their kicks by running over poor, defenseless animals, this coverage isn’t for you. You’ll need comprehensive car insurance to fix that cracked headlight.

Generally, you can choose you’re deductible rate, i.e., the amount that your car insurance company will pay out to repair your car. Typically, the higher the deductible, the lower the car insurance premium. You will definitely need collision car insurance if you are leasing a vehicle, if you own a fairly new car or if you are making payments to a finance company. Owners of much older cars may want to skip this form of car insurance altogether. If your car is totaled, the car insurance company will pay you that market value of your car, minus the value of your deductible. If you are able to absorb the cost of replacing your car yourself, you may want to forgo this.

Car Insurance, Essential Information About Excess Payments

An excess payment is the fixed contribution you must pay each time your car is repaired through your car insurance policy. Normally the payment is made directly to the accident repair garage when you collect the car. If your car is declared to be a write off, your insurance company will deduct the excess agreed on the policy from the settlement payment it makes to you.

If the accident was the other drivers fault, and this is accepted by the third party's insurer, you'll be able to reclaim your excess payment from the other person's insurance company. But what if the other driver is uninsured?

All motorists know that it's a legal requirement (under Section 143 of the 1988 Road Traffic Act) to have insurance for any damage they cause to third parties. But still many drive without insurance. An estimate of the incidence of uninsured driving in the UK is hard to come by and, for the obvious reasons, those drivers involved in breaking the law have every reason to keep quiet about it.

Calculations from the Department of Transport suggest that in the UK around 5% of vehicles are being driven without valid insurance. This group of people not only impose costs on honest motorists in the form of higher premiums, but their presence on our roads also represents a serious risk to other road users. Consequently, uninsured driving is increasingly being regarded as a major social problem.

But driving without insurance is not a victimless crime. If you have an accident with an uninsured driver and the accident wasn't your fault, the repair costs will be paid for by the Motor Insurers' Bureau that's funded in its entirety by the industry, or by your insurer. Therefore, if you're involved in an accident caused by an uninsured driver you'll eventually get you car repaired but you'll still have to pay the excess and there'll be no one to reclaim your excess from.

What is a Compulsory Excess?

A compulsory excess is the minimum excess payment your insurer will accept on your insurance policy. Minimum excesses do vary according to your personal details and driving record and by insurance company. Today the average excess is around £100, but younger drivers could be faced with excesses of up to £500 - whilst more mature, experienced drivers with a good driving record, could be offered an excess of just £50.

So what is a Voluntary Excess?
In order to reduce your insurance premium, you may offer to pay a higher excess than the compulsory excess demanded by your insurance company. Your voluntary excess is the extra amount over and above the compulsory excess that you agree to pay in the event of a claim on the policy. As a bigger excess reduces the financial risk carried by your insurer, your insurer I able to offer you a significantly lower premium.

The garage has repaired my car but it won't release the car too me until I pay the policy excess to them. Is this right?

Yes, that is normal practice. But make sure you inspect the car when you collect it. Satisfy yourself that the repair is perfect. Then make sure you keep their receipt for your excess payment as you will need this if you're reclaiming against a third party's insurance. And just in case there's a dispute, it's a good idea to make sure the repair garage gives you a repair schedule. This will list all the repairs that were made to you car.

Car Insurance, Save On Premiums!

Everyone has to agree to an excess of some kind when getting a car insurance policy – it's the way the system works. Basically it means that if you have an accident and your car needs to be repaired, you will have to pay a set amount towards the bill. If the accident is your fault, you lose the money. If the accident is not your fault, the third party insurer reimburses you for the excess payment. If your car is written off, then your insurance company will deduct your excess from the settlement payment.

Things aren't always that simple however, unfortunately there are a number of drivers on British roads that don't have any insurance, so the question is, what happens with your claim if you have an accident with an uninsured driver?

The 1988 Road Traffic Act, section 143 clearly states that all drivers on the UK roads must have insurance for the vehicle that they are driving. The point of the insurance is that if you have an accident and it is your fault, you have the means to cover the cost of the damage incurred by way of your insurance policy. It's a sad fact that a significant minority of drivers choose not to bother with insurance, disregarding UK law and saving themselves hundreds of pounds a year as a consequence. Someone has to pay for these drivers though, and it's the people that do have insurance that foot the bill!

The Department of Transport estimates that as many as 5% of drivers are not insured on the vehicle which they are driving. Statistics also show that uninsured drivers are more likely to be involved in an accident. It's a growing trend and is proving very difficult to eradicate.

If you have an accident, you are not at fault, and the third party is not insured, then you will be reimbursed by the Motor Insurers' Bureau. Who funds them? The car insurance industry! That's where some of your inflated premiums end up. You will also find that you'll have to pay the agreed excess yourself, there will be no-one able to refund that for you.

Here's the low-down on the basics about ‘excess':

Compulsory Excess – this is the amount that the insurance company regards as the minimum amount that you must pay towards the cost of damages . This is agreed at the outset and depends on a few details you're your age and your driving record. For example, if you are older and have a clean driving record, you could only have to pay a minimum of £50. Those with a more chequered driving history, or those that have not been driving for very long, could feasibly have to agree to pay £500. The average for most drivers is £100 .

Voluntary Excess – this is the amount over and above the minimum ‘compulsory' amount set by the insurer that you are prepared to pay. This is an opportunity to lower your premiums, because if you can agree to a high excess, then the insurance company knows it won't have to pay out as much if you need to make a claim. It's one of the few sure fire ways of saving a few pounds on a car insurance policy, but you may not be offered the choice, it depends on individual insurers.

The garage won't give my repaired car back until I give them a cheque for the excess – is this what usually happens?

This is completely normal, and you will have to pay and then get the money back from the third party insurer. Always give the car a good once over to ensure that the repairs have been satisfactorily completed. You also need to keep the receipt to get the excess back from the insurer, and just in case they dispute the charges, get a copy of the repair schedule so the insurer can see exactly what work was completed on your vehicle.

Car Insurance: Types of Insurance You Need to Understand

With all this traveling in and out, back and forth around the maze that is the United States infrastructure, its easy to understand why auto insurance is required in order to own an operate a car. For car buyers, an effort needs to be made on the part of insurance companies to provide information on the different types of auto insurance available. These include bodily injury and liability, collision, comprehensive, full glace, liability, medical coverage, personal injury protection, and underinsured or uninsured motorist.

Liability insurance coverage is imperative to have as a driver. This insurance covers any injuries or damages to property that may occur during an accident. Two types of liability include bodily injury liability insurance and property damage liability insurance.

Medical insurance is different in that it focuses on the driver and passengers of the car. This will cover any medical treatment for the driver and the passengers. In addition, the medical insurance may or may not offer disability insurance and pain and suffering compensation.

Uninsured or under-insured drivers insurance will pay any costs that you or your passengers may experience if an accident should occur with a driver who is uninsured or underinsured.

Collision insurance deals with the cost of damage caused by a collision to your car that may affect the book value. Comprehensive deals more with damage caused by vandalism, natural disasters, theft or other kinds of damage.

There are several other types of car insurance. These include glass replacement insurance, towing insurance etc. These types of insurance are often not required and are not popular as they are often costly.

Now that you know what types of car insurance are out there, the next step is to find a credible insurance agent. The first place to investigate this is through family and friends. Referrals will help you sort those agents that you want to investigate further. You will want to speak with several different agents before you make your final decisions. Ask any and all questions you may have. That is what the agent is there for.

Car Insurance Are You Getting the Best Deal?

Getting car insurance can be quite a difficult task. There are just so many insurance companies out there that are desperate to get your business that choosing between the good deals and the dubious deals can be daunting. But since taking out insurance is such a crucial and important thing to do, you have to wonder if getting the cheapest insurance you can afford would be the best idea.

Because of the fierce competition in the insurance market, premiums have been falling, which is good news for those shopping for car insurance. It is prudent to bear in mind however that price is not the most important part of your car insurance deal!

What you should look to achieve is lower premium payments in order to ease the burden of paying insurance. This can take a great deal of time especially when it comes to comparing the different insurance companies and what they might offer. However there are a number of things you can do to improve your chances of success.

Shop around. Each insurance company offers different setups – sometimes differing so drastically that attention to detail is a must. You can ask for quotations from these companies so that you can compare them with regards to the prices and packages they offer. An easier step would be to visit websites that list insurance companies offering affordable insurance packages.

Keep a good clean driving record. If you can show that you are a good driver then insurance companies will consider you a low-risk candidate, and thus will have lower accompanying premium rates

One great way to lower car insurance premiums is by installing a number of additional safety devices or features in your car. Some insurance companies will automatically lower premiums if they see anti-theft devices, automatic seatbelts and airbags.

Creative mathematics can also bring your car premiums down. Ask for higher deductibles on your car insurance policy. By increasing your deductibles you can lower your premiums from between 15 to 20 per cent. Just make sure that you can shoulder the difference!

If you own a second hand car or an old model car, ask to reduce its coverage. A car whose cost is equivalent to less than ten times the premium that you pay for a comprehensive coverage is not a good deal.

You can actually ask for more discounts from insurance companies. A number of discounts can be requested like lower rates if the car has a low annual mileage. There are also companies that grant discounts if you show proof that you have taken a defensive driving course. Passing an advanced driving test can also be used to ask for a discount.

Your profession can actually give you a better deal than you think. Ask around if your particular profession can be considered as a low-risk group. Insurance companies have a list of professions that are grouped between low risk and high risk. Low insurance risk professions are awarded with lower insurance premiums.

Car Insurance Basics

Car insurance is basically insurance that drivers can purchase for any kind of vehicle in order to protect against losses sustained in traffic accidents. Auto insurance policies are, in reality, a bundle of different coverages. This insurance will usually cover the insured party, the insured motor vehicle, and any third parties involved. Different policies will identify the situations in which each of these entities is covered.

Below are the specific coverages involved when you purchase car insurance.

- Liability Insurance: Liability coverage is the most basic and foundational coverage in car insurance policies and is required in most states. This coverage ensures that if you are the one at fault in an accident, your liability insurance will pay for the physical injury and property damage expenses of any third parties involved. This coverage includes legal bills. Remember that third parties can sue you for “pain and suffering” damages. Minimum insurance may not sufficiently cover you in more extreme cases, which is why many people recommend that drivers purchase more than the state minimum required. Liability coverage limits are usually conveyed with three numbers. For example, liability limits of 20/50/10 indicate that there is coverage of $20,000 in bodily injury coverage per person, $50,000 in bodily injury coverage per accident, and $10,000 in property damage coverage per accident.

- Collision Coverage: In the case that you are in an accident, collision insurance will pay for the repairs that your vehicle requires. Collision coverage is usually the most expensive coverage that you will have to pay for. Insurance companies will declare a vehicle “totaled” or a “write-off” if the replacement would be cheaper than the repairs needed.

- Comprehensive Coverage: This coverage will pay for any damages to an automobile that were not caused by an accident. Qualifying damages include damages arising from carjackings, vandalism, natural disasters, and hitting an animal.

- MedPay, PIP, and No-Fault Coverages: MedPay will pay for the medical expenses of you and anyone else in your car after an accident, regardless of whose fault the accident was. PIP (Personal Injury Protection) and “no-fault” coverages are other forms of medical payment protection. They are broader than MedPay and may be required in certain states. These expanded coverages cover child care and lost wages.

- Uninsured and Underinsured Motorists Coverages: UM (Uninsured Motorists) coverage will pay for injuries you have sustained if you are involved in a hit-and-run by a driver who does not have auto insurance, and is mandatory in many states. UIM (Underinsured Motorists) coverage will pay for you if the driver who hit you creates more damage than their liability insurance can cover.

- Supplemental Coverages: Rental reimbursement is an add-on that will cover rented vehicles in case of damage or theft. Auto replacement coverage ensures that your automobile will be fully repaired for replaced even if the costs are more than its depreciated value. Coverage for towing and labor covers you in case of an auto failure on the road where towing is necessary. These supplemental coverages are usually offered as separate items or included in larger policies.

Car Insurance Explained

Finding the right policy and the cheapest insurance cover can be a tricky process; drivers use the Internet, by telephone, read magazines, watch TV advertisement to get information on savings and offers on car insurance.

Owning and driving a car means taking on many risks to yourself and others. When a traffic accident happens, damage, injuries, loss or all of these factors may be inflicted upon you and others. Damage and loss of your property may also occur. Fire, theft, vandalism and natural disasters are other possible risks.

Car Insurance protects motorists and drivers against liability in the event of accidents they may cause. It can also provide cover for the motorist's own vehicle.

Many different types of cover are available, ranging from third party cover which protects individuals against liability should they injure a third party or cause damage to a third party's property, but does not provide any cover for the individual's own vehicle or property, through to comprehensive cover, which can offer protection for accidental damage, theft, fire damage as well as liability towards third parties. The minimum legal requirement for car insurance to drive in the UK is Third Party Only.

Here are 5 steps to follow to find the cheapest deal:

STEP ONE: EXCESS
Voluntary excess – the easiest way to cut your insurance premiums is to accept a higher voluntary excess. An insurer's standard excess may be £100; but if you meet the first £250 of any claim, you'll see a reduction in your premium. This is simply because you are more of the risk so you get a discount by your insurance company. This however is a gamble, insurer should be aware that they may have to meet the cost of a broken window after an attempted theft, then a bill for repairing bodywork damage after a car park crunch.

STEP TWO: SECURITY
One way to get cheaper insurance premiums is to fit a security device. Many insurers advise insurer’s to use Thatcham rated security equipment, usually minimum of an alarm. If you are living in a high-risk which may be known for car crime it would be useful to fit an extra security such as steering lock. This will save you money when your insurance renewal is due and gives you extra peace of mind.

STEP THREE: NAMED DRIVERS
Adding a named driver to your policy can increase or reduce your premiums depending upon the named drivers age, sex and driving record. When adding a young driver will increase your premiums, particularly with a limited or poor driving record. However, adding a driver over 30 years old with a long and clean driving record can cut premiums, particularly if the named driver is a female.

STEP FOUR: ANNUAL MILEAGE
If your annual mileage is, 5,000 miles or less, ask insurers if they offer discounts for agreed mileage restrictions, as some insurance companies do give discounts for restricted mileage. However many insurers won't offer this option as standard but will agree a discount if you ask.

STEP 5 - SHOP AROUND FOR GOOD RATES
The biggest potential savings come from shopping around. This has been made much easier with the explosion of the internet. There can be massive differences between the lowest and highest car insurance quotes for exactly the same car and driver(s).

Car Insurance FAQs

Can I insure a modified or classic car; who will offer insurance cover?

Yes, you can insure a modified car but because your car is a specialist car, not all auto insurance companies might be willing to provide coverage for it since it requires high price replacement parts and also skilled labor if the car is involved in an accident. Thus, you have to take a special car insurance that is designed especially for modified and classic cars.

How can I cut down my car insurance premium?

If you wish to cut down on your car insurance premium you must take care of a few things. Park your car overnight in the garage rather than leaving it on the drive. Fit insurance approved anti-theft devices; consider Third Party Fire and Theft for older cars. Find out discounts offered by the insurance provider when requesting quotes. Young drivers (under 25), who are often charged extremely high premiums, should have an extra driving course certificate.

What is 'excess'?

It is the amount you have to pay when you make a claim for the loss or damage to your car. It can be voluntary or compulsory. If someone else causes the accident you may be able to reclaim the excess through the legal cover, which can be taken out with your car insurance policy. Otherwise you lose the excess. Voluntary excess is the amount you agree to pay to the company. It offers premium discounts. Compulsory excess is generally imposed to young drivers. Because their risk factors are high and the companies don’t want to insure them. So, in order to insure, they have to surrender with this payment.

What is legal cover?

It provides expertise and assistance required to recover uninsured losses such as medical costs, loss of earnings and excess payments where the fault was not yours. It is available as an optional with most car insurance policies.

Can an insurance company cancel my auto policy?

Yes, you auto insurance policy may stand canceled if you fail to pay the premium or if your consumer's license has been suspended or revoked during the term of an auto policy. Also, if there is a fraud or serious misrepresentation when completing the insurance application, if the you are convicted to a crime, or if changes are made to the property that increase the risk of loss then the company may cancel your insurance policy.

Car Insurance For High-Risk Drivers

If you are classified as a high-risk driver, finding car insurance can be quite a hassle. Some insurance companies will deny insurance to high-risk drivers, while others just choose to charge extremely high premiums. No matter which insurance company you choose, you will most likely end up with a high rate. However, every insurance company is different, so it is important to shop around for the best rates available.

There are many different factors that can contribute to a high-risk driver classification. However, your driving record is the most important factor in determining your risk status. If you have been involved in several accidents over the course of a year or within two to three years, these incidents will negatively affect your record even if they were not your fault. Being involved in any accident can deem you a reckless driver with a penchant for getting into dangerous situations. Also, if you have received multiple speeding tickets, you are also increasing your risk of getting into car accidents. You may be labeled a high-risk driver just by the number of speeding tickets you have received.

There are also several personal factors that contributed to the high-risk label. Unfortunately, many of these factors are beyond your control. Men are typically deemed a higher risk than women, and those who live in the city are considered higher risk than those who live in the country. If you are a city dweller, you will probably pay higher car insurance premiums than if you live in the suburbs or in a rural area. Also, drivers with newer cars are charged higher premiums than those with older automobiles.

Unfortunately, even your credit history can affect your car insurance rating. Those with low credit ratings are usually charged higher premiums than those with better credit scores. Whether or not you have been covered by car insurance continuously is also a factor. If there are gaps in your coverage, they will assume that you have had periods of uninsured driving. Because driving without insurance is very unsafe and also very illegal, insurance companies take this into consideration when considering your rate.

Though it can take several years of clean driving to erase the high-risk driver label, it can still be done. Three years is the industry standard for reassessing a driver’s safety standing. If you have a clean record for a three-year period, you can work your way back to the benefits of lower premiums. However, three years’ worth of high premiums can really add up over time. If you are a high-risk driver, there are still ways to lower your insurance payments. With a little research, you can reduce your payments by a fair amount.

There are many car insurance companies that offer free quotes online. Rather than meeting with salespeople or playing phone tag with agents, Internet sites will give you a quote in minutes. This makes comparison-shopping easier than ever. There are even websites that will find a list of quotes for you. Sites like Netquote.com allow you to enter all of your information one time rather than repeating the process for every insurance company you investigate. Netquote will generate a list of rates organized in an easy to read fashion. This process may take a few days, but the results are typically worth it.

Working toward a clean driving record is the best way to ensure that you will get the best car insurance rates. Avoid congested areas whenever possible, and be sure to slow down in reduced speed zones. Be aware of your surroundings and never speed, and you will be on your way to a successful reduction in your rates.

Car insurance for lady drivers

Car insurance companies prefer lady drivers to their gentlemen counterparts because they are considered as much less risky drivers. It is not that the accident rates of ladies are low. They face as many accidents as males do. However, the damage caused by them is not as much in most of the cases. So, their claims after the accident are also less. That is why on an average women’s car insurance premiums tend to be 30% lower than that of the male counterparts having same demographic profile.

They drive at speeds lower than men. Hence, accidents caused by lady drivers are not serious. So, even if they might claim as often as males do yet, in all they claim less amounts, giving insurers lesser premiums. Since the male drivers drive at higher speeds so even if they crash on their own, the loss is high. In case, the accident involves two vehicles in high damage state, it becomes an insurance company’s nightmare.

A lady is regarded to be a better risk right from the age of 17. There are many premium discounts available for a young lady driver, like pass plus certificate. It is a series of extra lessons that a young lady driver learns following their test. It can gain you a discount of around 30% for the first year.

Some car insurance companies specialise in auto insurance for women drivers. Literally, these companies try to insure women drivers only. They don’t even encourage getting a lady insured with her husband under combined policy. Because they can’t give too much discount, as they have to think about her husband’s high risk factors as well. So, they would prefer woman with woman. It means providing less risk in total, meaning lower premiums in total. That really clicks for them.

So, the calculation is simple - the lower premiums might mean that they don't make much profit. However, if they can get as many women as possible, then the volume of business can go high. Look out these companies if you are a woman. Lady car insurance quote includes legal cover as well. It helps you to claim back your excess from the third party in the event of a non-fault claim. You can further lower your premium by parking your car overnight in the garage, by getting extra driving license course, and maintaining a good driving record.

Car Insurance How Can I Lower My Premiums?

During the last few years, the average car insurance premium has virtually been at a stand still. The reason is price competition. There are now over 100 car insurance companies fighting for your business and competition is fierce. There are always bargains to be found as companies cut their premiums to attract motorists in the hope you'll remain loyal and stick with them in following years. Indeed, every year, 23% of us renew our motor insurance with our existing insurer.

But in recent years the Internet has created a revolution in the marketing of car insurance. It makes shopping around so easy without the need to make loads of phone calls and without spending time threading yourself through the automated phone systems beloved by so many call centres.

But you'd be wise to remember that the lowest premium is not always the best. For example, some insurers have recently pushed up the level of claims excess they want you to pay as this helps them provide you with a much lower quote. You should also check out whether a courtesy car is provided if your car is in for repair. You might also feel you want legal insurance cover and automatic windscreen replacement. An accident helpline can also very useful in the middle of an emergency! You'll need to phone the broker or insurance company you're thinking of dealing with in order to check out these points.

17 Top Tips

for cheaper car insurance

Get your online quotes through car insurance brokers. Their computer systems will search for the best quotes from 40 or more car insurers and save you lots of time. When you've got their cheapest quote, phone them to discuss the relative merits of the cheapest quotes they found.

Garage your car at night. Insurance companies know that a car left on the road at night is much more vulnerable to theft and damage. If you don't have a garage, if possible keep it on your drive.

Update the estimate of your mileage each year. If you've moved home or changed your job you may have shorter commuting journeys. If so, your premiums should be less.

Your premium can be influenced by your job. Landlords, journalists, and professional footballers to name but a few, all pay more! Go for a job that's a bit more boring! Accountants and civil servants pay less!

Getting married could save money on your car insurance, particularly if you're male and under 30.

If you're under 25, add an older experienced driver with a good riving record onto your policy as a named driver. But don't let him be too old! – premiums start rising again after age 60!

Consider paying a higher accident excess. The average excess is about £100. If you are prepared to increase you claims excess, your premium will fall significantly.

If you have cheap or old car, consider buying just 3 rd Party cover. Get quotes for 3 rd Party and comprehensive insurance and weigh up the savings.

Are you aged between 18 and 21? Then consider pay as you go insurance. Norwich Union has recently introduced the first pay as you go insurance policy, which charges you exactly for the miles you drive. It also charges more for the miles you drive between 11 and 6 at night. The system works through a Global Positioning System which is fitted to your car for a one off fee of £199. The GPS black box tells Norwich Union how many miles the car's been driven and they send you an monthly invoice.

A new driver? Spruce up your driving technique by taking some more driving lessons. New drivers can slash their insurance costs by as much as 35% by taking Pass Plus lessons. These give you extra training for driving in rush hour traffic, motorway driving and night driving. Lessons cost between £15 and £30 per hour. (www.passplus.org.uk). You can also reduce your premium if you've taken a course with the Institute of Advanced Motorists (www.iam.org.uk).

Buying a new car? Then check out the insurance group before you buy. Cars fall into one of 20 insurance groups with 1 being the cheapest and 20 the most expensive. If the proposed insurance premium is too high, chose a car that's in a lower group.

High spec and performance cars attract thieves and are more expensive to repair - so they always cost more to insure. Consider something with a little less voroom!

It's hard we know, but try hard not to speed! Most insurance companies will ignore one fixed penalty fine but get more and your premium will rise.

Got 4 or more years no claims discount? Pay the extra get the discount protected.

Fit a satellite navigation system. Some insurance companies have noticed that sat nav cuts the accident rate by letting drivers concentrate on the road. Insurers will soon be giving discounts if you have it fitted.

Get a engine immobiliser or alarm fitted. It could save you between 5-8%.

Got more than one car in the home? Some insurers will give a discount for insuring them all in one policy.

Car Insurance Legal Expense Cover – The Policy Essential

Like many people buying car insurance, you shop around and buy online. You’ve found a really good, cost-efficient deal. So when it comes to the final checkout, do you choose to tick Yes or No in that Legal Expenses Cover box? It will add a little more to the total, and it’s not an absolute requirement, so you may be tempted to leave it out. Not least because it’s definitely not the most well-known part of insurance! It is, however, something we think you really should consider adding if it’s not in the policy as standard. And here’s an example of why:

Earlier in the year Jake, one of our freelance writers, was involved in a car accident. His Golf Mark I is his pride and joy, and he’s spent many happy weekends working on it. So naturally, he wanted total insurance coverage for every eventuality – even legal expenses.

This certainly proved to be the right decision after the accident. The car was hit from the rear, so some of the vehicle damage could be fixed. The insurance company worked fast to deal with the claim. Unfortunately, Jake also suffered a broken wrist and some whiplash. If he hadn’t taken legal expenses cover, the bill for a solicitor to pursue his compensation claim would have been solely his responsibility. Fortunately, since he had the cover, Jake was able to get his compensation quickly. Working as a freelance writer, Jake doesn’t have the safety net of employer sick pay. Lost hours mean lost money. Jake was out of work for a month – and a month’s wages. With legal expenses cover, however, Jake was able to claim for loss of earnings and will receive compensation for them any day now.

The total cost of this peace of mind and earnings security? An extra £2 a month on his premium, surely a worthwhile investment for anyone’s money!

Fully comprehensive car insurance ensures that your vehicle is well taken care of, but how about the driver? Jake’s accident was not his fault, but he had to spend a month off work. Without legal expenses cover, the cost of getting compensation would have fallen to him. With it, he was as well protected as his beloved car, and didn’t have to worry about being able to afford to make a claim.

Take another example of a typical accident: you are unharmed, but your car has to wait in the repair shop for two weeks while parts come in. Without replacement car hire as part of your insurance deal, you will have to rely on public transport – not the reason you bought your own vehicle! With legal expense cover, you can use a hire car and know that your trouble and inconvenience will be compensated.

All you need to do when you claim on your legal expenses policy is to provide the accident details in the same way you normally would – all the paperwork will be taken care of for you. It’s possible that you may need to speak to your solicitor, or appear in the stand in the event of the case going to court, but you won’t ever have to pay any legal fees.

And the cost is low, sometimes even free. Admiral include it as standard. Most insurers do make a charge, but it averages around £20 a year – for example, More Than charge £17.85, and Budget add an extra £24. Consider the legal battles that have resulted from accident claims in the past – especially those where serious injuries and claims were involved. Compensation – and costs – can run into millions. No-one can doubt that in cases like these, legal expenses cover is a worthwhile addition to any policy.

So next time you buy car insurance, make sure your policy includes legal expenses cover. Take it as an extra if it’s not part of the standard package. You’ll barely notice the extra cost, but you’ll certainly be aware of the benefits if you ever need it.

Car Insurance on Rentals

When it comes to car insurance, there are a couple of traps you can fall into. The contracts are complicated and extremely difficult to understand, and that’s if you even have the time to read them. The fact is that most people don’t read insurance contracts and there is a significant information shortage when it comes to consumers and the contents of their own insurance contracts.

One of the problems with this information gap is that it can lead to wasted money. Every time you rent a car you are asked what kind of insurance you would like. The options are generally to take none, which costs nothing, or you could cover liability insurance, which should cost about $10 per day. Then you have a variety of options to cover the rental cat itself, prices for which vary from company to company and state to state. The full coverage option, which includes liability, passengers, and the rental car usually, comes to about $25 to $30 a day. Most people genuinely don’t know what option they should be taking.

Liability

Liability insurance is the only insurance you are required by law to take out. All the others are optional. That’s the first and most important thing to remember when you’re at the rental desk, and the total price for your two-week vacation car is quickly adding up and up. The other thing to know is that in many cases, you will be covered, to some extent by your existing car insurance. You will have to check your insurance policy to make certain, but for the vast majority of drivers, they will have liability insurance by virtue of their own car insurance, and this will carry over to the rental car.

It is however, unlikely that full or comprehensive coverage will carry over from your own car insurance. This is because comprehensive insurance is calculated based on the value of your car. Insurers don’t want to be in a position where they set your policy based on your say, $15,000 vehicle, and then have to pay out when you crash a $40,000 rental. So your policy will state that only liability insurance is provided when you rent.

Credit Card Cover

You may still require no insurance from the rental company however. This is because many credit card companies, including both visa and MasterCard, offer this insurance if you pay for the rental with one of their cards. This is a major benefit of using a credit card and should not be wasted. Again you should check with your credit card provider what they cover, but the bottom line is, if your own insurance covers liability, and your credit card covers the rental car, why pay a couple of hundred dollars for extra insurance when you’re already covered?

If you are in doubt as to your insurance, it is wise however to take the rental company’s policy, especially liability.

Car Insurance Online Purchase - Some Benefits Of The Internet

Is it possible to purchase car insurance online? Most folks are used to purchasing their car insurance by leafing through a telephone book and calling local insurance agencies. When you call a local agency they usually request a copy of your current coverage in order to give you an accurate comparison as well as advice . This same process can happen with online quoting as well. The online quoting system will require you to post all pertinent insurance information to give you an accurate quote. You do more of the work but you are better informed when you complete the process.

Car Insurance Information Needed for Online Quoting

1. Expiration Date – The expiration date is critical because it proves that your insurance has not expired and that will qualify you for a preferred rate with most companies. If your insurance has expired then you may be underwritten into a substandard carrier and those rates are higher.

2. Driver Information – All resident relatives that have a driver’s license need to be rated on the policy. You will need to enter the name, date of birth, and driver’s license number.

3. Driving Record – Accidents and violations need to be disclosed to pre-qualify you for the insurance. This needs to be accurate because insurance companies will find out about your driving record anyway. They check motor vehicle reports from your state as well as your prior carrier.

4. Vehicle Information – You will have to list each vehicle on the policy. You will need the vehicle identification number for each vehicle. That number will give the insurance company the pertinent information that it needs to discount the vehicle for air bags, anti-lock brakes and other safety features.

5. Current Coverage – Use your declarations page to list all of the coverage that you currently have on all vehicles. This will include liability limits, first party benefits and physical damage limits.

Car Insurance Policy – What To Know About Car Insurance Before You Shop

The car insurance policy has a lot of legal language that most of us do not begin to understand. The essential parts of the car policy are found in the declarations page that you receive when your policy renews. Car insurers are always competing for each other’s policyholders. Every car insurance company uses actuaries and underwriters to help determine the rates.

Rating Territory – Whether you like it or not, your neighbors and friends in your community help determine the rates in your area. These areas are called rating territories by the insurance companies. If there are high losses and frequency in your area then your rates are going to be higher. The opposite is also true.

Liability Insurance – Liability insurance protects you when you are liable in an automobile accident. This is valuable protection for you because this is the portion of the possible that insures you against the highest risk and financial loss. Liability claims because of death and injury are by far the largest. Don’t cut yourself short in this area.

Physical Damage Insurance – This portion of the car insurance policy pertains to your vehicles. It is a good idea to self-insure in this area by purchasing this coverage with high deductibles. Low deductibles no longer warrant the high premiums for the protection afforded. High deductibles will save you thousands of dollars over the life time of a policy.

Car Insurance Discounts – There a number of discounts in car insurance, Vehicles with air bags, seat belts, anti-lock brakes, and anti-theft devices all have discounts. Senior drivers can receive retirement discounts. Young drivers with driver training education receive discounts. Some companies give good student discounts for the young driver with a 3.0 grade point average.

It’s also important to have certain information available when shopping for car insurance. The vehicle identification number for all vehicles, the driver’s license number for all drivers, and your current insurance information will make your shopping easier.

Car Insurance Pricing Plans

The law requires liability insurance for all drivers and vehicles. This means that if you are involved in a serious accident, and it turns out that it was your fault, your insurance company will pay out any claims that are made against you. Extra coverage on your own vehicle, called comprehensive insurance, is optional.

Insurance companies based on a number of risk factors will calculate the price you pay for this insurance. Basically how it works is the more they feel you are at risk of crashing, and the more they think the resulting crash will cost them, the higher the premium you’ll pay.

Assessment

Common factors that will be to assess the premium are the value of the car you’re driving, the safety of that vehicle, the coverage you want, will there be deductibles or limits etc.? How much you’ll drive the car, how your driving record stands, how long you've held your license, your age, and if you are young, also your sex.

The premium is then calculated. Usually there is a flat per car, per year rate that everyone pays, regardless of other factors. The other factors will then alter this rate, generally upwards. So if your car is especially fast or dangerous your rate will be increased by a set amount. If it is very old, your rate goes up. If you’ve had one or more accidents in the past, your rate will go up. If you’re young and male, your rate will go up. The more of these factors you satisfy, the more your rate will be going up.

Discounts

As a sales enhancement, many car insurers offer a "low estimated future mileage" discount to customers who predict that the car's mileage will be below some stated limit during the next premium period. There is no verification involved and no additional charge if the car is subsequently driven more than the stated amount. This arbitrary discount tends to foster customer belief in the mistaken idea that "miles" are just one of many classification factors used to raise or lower prices from the territorial base rate. In fact, odometer miles (which insurers do not use) are not a factor but a metric - the only valid basis for measuring each car's consumption of insurance protection in on-the-road use.

The best way to save on car insurance is to shop around, keep a good clean driving record, drive safely, and choose reliable cars that are not known for their power and speed.