Understanding Different Types of Auto Insurance

Auto Insurance policies can be divided into different categories according to the coverage they provide. Broadly speaking there are four kinds of policies known as Collision Insurance, Comprehensive Coverage Insurance, Uninsured and underinsured Motorist Coverage policies and No Fault Automobile Insurance policy. Besides these, there are policies that take care of other needs like covering an auto loan, paying for towing expenses or paying for the cost of a rented car while your vehicle is being repaired.

The most common insurance policies are:

Collision: Any property damage caused to your vehicle due to an accident caused by any other vehicle or object is covered under this policy. The claim amount cannot exceed the actual cash value of the vehicle and is subject to any deductible.

Comprehensive: Any property damage to your vehicle that is caused by non-collision factors like fire, theft, vandalism, and even natural disasters like flood, hurricane or earthquake is covered under this policy.

Uninsured Motorist Coverage (UM) and underinsured motorist (UIM) coverage: takes cares of any injury that may result to you or to persons insured in your policy from an accident that takes place with another uninsured or underinsured driver or vehicle owner. Generally only body injuries are covered under this policy.

No Fault Auto Insurance Policy: Irrespective of who caused the accident, the insurance company pays for the medical expenses and for the loss of wages that the insured suffers on account of a collision under this policy.

Some other additional coverage that an auto insurance policy holder can buy are:

Property Damage Liability and Bodily Injury Liability: These two policies protect the insured from any claims made against him for causing damage to property including vehicle belonging to another person or for causing any bodily injury or loss of life to other individuals up to the amount mentioned in the policy.

Auto Lease Protection: is an additional protection that you may add to your collision or comprehensive auto insurance policy to take care of any gap that exists between your auto loan amount and the cash value of your vehicle.

Full Tort and Limited Tort: available only in the state of Pennsylvania allows the insured to retain unrestricted rights to bring a lawsuit against a negligent party or recover expenses incurred for certain damages.

Rental Expense: Known as Extended Transportation Expense Coverage, the policy pays for a rental car while your vehicle is being repaired or replaced.

Medical Payments Insurance covers medical expenses for injuries sustained in an accident involving any vehicle for the insured, his passengers and other parties irrespective of whose fault it is.

Towing and Labor: An additional coverage option that can pay for all necessary towing and labor costs to tow your damaged vehicle to a work shop or another location.

How Do I Lower My Auto Insurance Premiums?

It seems as though the price of everything is on the rise. The amount a house may have cost in the early 70s is how much you will pay for a new car in the 21st century. Oil companies have used the problems in Southwest Asia as an excuse to send gas prices through the roof. And the cost of peace of mind when driving your vehicle knowing if you or your vehicle is injured in an accident you will be covered has become astronomical. So what can you do to lower your insurance premiums so you don’t feel as though you are paying a mortgage note in exchange for a vehicle and a car note in exchange for insurance?

Consider how much coverage you really need to buy and the price each of these coverages will pay. Think about collision and comprehensive coverage, which is how much you will be reimbursed for the loss or destruction of your vehicle. Are you carrying $30,000 worth of collision coverage for a $12,000 vehicle? Is the insurance company really going to give you $30,000 when your vehicle is only worth $12,000, unfortunately not?

If you are leasing or financing your vehicle these coverages may be required however if you are driving an older car that has depreciated significantly you may want to consider saving on your premium by dropping this coverage. Before you drop it make sure you can afford to foot the bill on the entire cost of replacing that vehicle if it is lost.

Think about the cost of insuring that sports car or luxury vehicle before you purchase it. If higher premiums is a small price to pay for going from 0 to 60 in .5 seconds go ahead and purchase that Ferrari, if not consider the sedan.

Generally you can’t help where you live but expect that you will pay higher premiums in cities or towns that have high rates of accidents and vandalism as opposed to more rural low crime areas. The X and Y-chromosomes are luck of the draw and everyone ages in the same slow, drawn out amount of time. Oh and of course everyone can’t find that special someone and settle down right away but if you had control over any of these things it would help control your premium rates.

Single, young males under the age of 25 get the short end of the stick in this deal so if you fall into this category make up for this price increase by purchasing a more sensible vehicle. Consider delaying the purchase of that cherry red Mustang until after you’re 26 and married. Another aspect of higher premiums is your driving record. Drivers who cause accidents will pay for it in their insurance premiums. If you’re a high-risk driver the insurance company is going to supplement the money lost on safe drivers by increasing the amount you will have to pay. So slow down, leave earlier, be patient and think about how much money you can save every year by obeying the traffic laws.

Free Money Saving Auto Insurance Tips

Our money saving auto insurance tips were written for one reason – To Save You Money on your next auto insurance policy. Since in most states you are required by law to purchase a minimum amount of liability coverage we’ve looked for ways to save you money. Additionally many people want more than just the bare minimum in order to provide themselves with adequate protection.

The top two biggest money saving auto insurance tips are to first shop around. There are numerous providers of insurance and generally speaking you can save a great deal of money on your policy if you take the time to find the right provider.

The second biggest tip to lower your rates is to simply raise your deductable. In some cases you can reduce your annual premium by 10 percent or more if you increase your deductible by a few hundred dollars. USE CAUTION HERE: You want to make sure you can actually afford the amount that you raise your deductible to or you’re no better off then before.

Additional tips include eliminating certain types of coverage from your current policy and reducing the amount of coverage you currently have. Generally this is up to each individual based on their needs, wants and desires. You may want to consult an insurance agent before making any drastic changes to your current policy.

Other factors raising the cost of your policy include the amount of mileage you drive annually and the type of vehicle you own and operate.

Did you also know that where you live can determine rates and keeping your car in a garage can lower your rates. Cars parked in garages are less likely to be stolen, vandalized, or struck by other vehicles. Using a garage to store your car may entitle you to a slight premium reduction.

If you have multiple cars and drivers then you could qualify for a multifamily discount. Sometimes your children’s insurance premium can be lowered based on their school grade point average.

Other discounts may be available if you meet certain criteria. Examples may include discounts for taking a defensive driving course, being a AAA member or staying with the same auto insurance company for a number of years. These discounts vary by company.

Finally try using an anti-theft device. This helps to reduce your insurance cost.

Thanks for taking the time to read our money saving auto insurance tips. We hope our free tips and save you some of your hard earned cash.

How to Get the Best Rates on Car Insurance in Maine

In Maine when you buy a new car you should be aware of one very important fact. You can’t register a vehicle in this state without showing proof of insurance. The insurance you purchase must include not only the legally required limits of liability insurance, and uninsured motorist coverage but $1,000 medical payments coverage too. If you don’t show the proof, you can’t operate the car.

All drivers in Maine have one important thing in common. Regardless of what type of car they drive and the level of car insurance they are looking for, they want to get the best rates in Maine. Many people make the mistake of buying a policy based on the first quote they receive. This is never a good idea. In order to find the best rates, you have to do some comparison shopping.

It’s a good idea to call several car insurance companies when you are searching for a new policy. The minimum number you should call is three but really the more the better. When you do call you’ll be asked to supply some basic information and from there the agent will calculate a quote for you. Be truthful with all the information you do give as you want the quote to be as accurate as possible.

Don’t neglect the insurance company you already do business with. If you have a homeowner’s or health insurance policy, that company may be able to offer you a great rate on car insurance in Maine. In fact, if you purchase car insurance from them, it may result in lower rates for your other policy or policies.

If you already have a car insurance policy in place, ask your agent about a renewal discount. If they realize that you are contemplating making the move to another vendor, they may be willing to offer you a better rate in order to keep you where you are.

What The Best Car Insurance Company Can Give

There are probably more than ten companies running their businesses in every state of the country. Of course you can check for car insurance ratings online or simply work with an independent agent to guide you through the entire process from choosing a company to purchasing the coverage.

The biggest problem is that the best car insurance for someone is not always as good for you too. Everyone has personal preferences so determining which company is best entirely depends on your own circumstances. Nonetheless, there are some noticeable features of any good company as listed below; you can use these features to help you tell the good from the bad.

1. No Overcharge

Car insurance companies use your personal data, such as driving record or points, as an important variable in determining your rates. Since everyone basically has different records, the insurance rates can be different accordingly, even for the exact same policies. Traffic law violation including DUI, speeding, or car crash are properly documented by the DMV. Every incident probably stays in your record for up to three or five years. When the points are reduced or completely erased due to proper driving this year, insurance company should charge you less. The best car insurance company rewards good driving record by charging you better rates.

Besides driving records, insurers also use other variables such as marital status, location, and age to estimate your premium fee. A good auto insurance company is one that puts everything into account and uses all the necessary variables to determine the proper price for you depending on the circumstances. The correct calculation helps to avoid any possible overcharge. Another easy example is installments fee. Paying by installments is a good idea to avoid spending a lot of money at a time. However, over the course of an insurance policy, the installments may cost additional charge. In total, you have to pay more than you really need to. If you are looking for an insurance company that offers installments method, please choose one that does not require you to pay more.

2. Good Customer Service

Apart from the market that grows to be very competitive in terms of price, one of the most important features of auto insurance is building trust. To maintain good relationship with clients, insurer need good customer service people who work in professional manners. Customer service is the very first department that you call in case you need help either for making claims or asking questions about any relevant issue. People who work in this department must also handle every complaint filed by any client.

Customer service is an indicator to help you properly separate the best car insurance company from the rest. You will not want to rely on a company with a customer service that does not answer your questions immediately, or simply says things you cannot understand, or in worst scenario, the person you call does not seem to care about what you need to say. Fortunately there are some independent research done on behalf of customers to deliver insurers rating based on this particular subject. Some ratings are based on price, discounts, and customer service; simply check for online ratings created by reputable organizations before you decide to purchase policies from any insurer.

3. Quick and Easy Claiming Process

You need your insurance company the most when you want to file a claim. Every insurer will generally say that the company is best, but customers have to be more careful and thoughtful before they can really believe it. Every state usually has an insurance department where you can find every auto insurance company’s complaint ratio. Information about this is provided free of charge, and you will be able to download it easily to your computer. The ratio is built based on the number of complaints for every 1,000 claims by policyholders. The best car insurance company in your state is the one with the lowest ratio.

The complaints can be many things, but they are likely claim-related problems. Ideally, an auto insurance company allows you to file a claim either by phone or online. You need to report specific data about your policy number, date and location of the incident that makes you file the claim, description of how it happens, license plates, names, and more. The company will send representative to explain whether the incident is covered by your coverage, and if it is, the representative will help you to handle all the related issues that come with the incident as far as the coverage allows.

Things You Need to Set Up an Auto Insurance Policy

Money is an obvious one. And, of course, having a vehicle to insure and a garaging address is another. A completed application with signatures applies to all polices. Also, each company will have their own unique set of guidelines for what you will need. Lastly, legal requirements can change in different jurisdictions.

Payments to start a policy are mostly made by check or credit card. Many policyholders now a days use an electronic form of payment. For credit and debit cards the account number, expiration date, and security code are needed. For an electronic funds bank transfer the account and bank routing numbers. In either case the account holder, which is not always the policyholder, must provide authorization.

Before a policy can begin the exact Vehicle Identification Number or VIN (17 digit alpha numeric) is needed. Providing the year make and model is insufficient. Each car has a unique VIN which identifies the characteristics for that particular car. Air bag, antilock brakes and other vehicle features are verified. CLUE reports (Claims Loss Underwriting Exchange) indicating vehicle claims history require the correct VIN.

Information not provided on computer generated reports such as the MVR and CLUE are necessary to complete the application and issue (begin) a policy. Be prepared to provide the employer (school) name and address for all drivers. When making payments on the car the bank or leasing company name and address is necessary. The application will have to be signed and payment authorized.

Companies often require a variety of documentation supporting the policy. Proof of prior insurance or school transcript for discounts is typical. Photographs of the vehicle or policyholder picture identification are less common. If there are different vehicles in the household covered by another insurance policy you may be asked to provide proof. Not all jurisdictions have the same legal requirements. For example, 7 counties in Florida require mandatory vehicle inspections when starting a new policy that include physical damage coverage.

Most, but not all, of the necessary information for a policy is generated by reports from your name, address, drivers license and VIN numbers. It is imperative that the 17 digit VIN number you provide is correct. Complete information, payment details, specific requirements, and signatures are the things you need to set up an insurance policy.

All You Need to Know About Auto Insurance

What is auto insurance?

It is an agreement between you and the company that defends you against any monetary loss in the happening of an accident or theft. In trade for your paying a premium, the insurance company agrees to pay your losses as summarized in your guidelines.

Auto insurance is made obligatory by most of the states and this provides you with some economic protection in case of an accident or any misfortune. But this information is not enough for an individual to decide whether he should take up auto insurance or not. For this, you need to more about different kinds of aspects provided by various schemes. So let us learn how this works and what is obtainable from it.

Different types of Auto insurance:

• Property – This includes losses such as damage to or theft of your car.

• Liability – This includes your official responsibility to others for physical injury or assets damage.

• Medical – Includes the cost of treating injuries, therapy and any other kind of medical expenses.

Fundamentals of Auto Insurance

You need to understand some basic things about your scheme. Auto insurance might be different in some ways but here are some common things about it that will mostly remain the same.

• Your policy will cover you and your family members listed on the auto insurance, whether you are driving your car or someone else’s car (with their authorization).

• Your policy will also provide protection if someone who is not in your scheme is driving your car with your approval.

• Your personal vehicle insurance only covers driving for personal reasons, whether you’re commuting to your office, running household errands or taking a trip to another city. But it will not provide any kind of cover if you use your car for profitable purpose. For instance, if you rent out your car or use it for delivery purposes.

• Personal auto insurance will also not offer coverage if you use your car to supply transportation to others through a ride-sharing service such as Uber or OLA. A number of auto insurers, on the other hand, are now offering supplemental products (at an extra cost) that expand coverage for automobile owners providing ride-sharing services as well.

Is Auto Insurance Mandatory?

Requirements differ from state to state and you might have to get it depending on your state’s legal guidelines. If you are financing a car, your lender may also have its own necessities and might want you to get it. Almost every state requires car owners to take:

• Bodily injury liability – which covers expenses related to injuries or death that you or another person has faced in an accident while driving your car.

• Property damage liability – which compensates others for damage that you or another person who was driving your car might have caused to another vehicle or other property, such as any boundary marker, any building or pole in the accident.

These things make it compulsory to enroll in one policy as soon as possible. This will not only help you but also your family members. So make sure you take up a policy as soon as possible for a safe and secure drive.

Get An Auto Insurance Protection To Protect Yourself From Financial Hardship

It is just like other insurances which is used to protect your financial losses which have occurred to your vehicle. It is, insurance that can pay for accidental/no accidental damage happened to your purchased vehicle.

Well!!!!! Buying insurance is more about buying a promise of someone, who assures you to regain your whole again if something wrong happen to your purchase.

The Automobile is one of the largest investments you make in your life. Just imagine a world without auto insurance. The at-fault driver would have to pay some amount to the accident victim for pain or damage out of their pocket. And the people who are injured at no fault are entitled to have their car repaired, medical bills from resulting injuries and other injury-related expenses paid by the insurance of the person who was at fault. But if the person at fault does not have insurance coverage, then he/she have to pay for those expenses out of their wages.

It Offers Different Levels of Cover For A Driver:

Uninsured Motor Vehicle Coverage – Uninsured motorist insurance can help pay your medical expenses and other related damages if you get in an accident caused by a person who doesn’t have liability insurance.

Collision Coverage – If you have an expensive car or one that is relatively new, this coverage will pay for the repairs to your car if an accident happens.

Liability coverage – It relates to your legal and financial responsibilities. It’s a basic insurance coverage that includes both Bodily Injury and Property Damage to other people if you’re at fault for an accident.

Medical coverage – It refers to the medical treatments, your hospital bills along with those of your passengers will be paid in this coverage, no matter who is at fault for an accident.

Comprehensive Coverage – If something happens to your car other than accident like weather damage, you hit a deer, your car is stolen, and Collision & Liability coverage won’t include these situations. Although Comprehensive insurance can be costly, if you have a lien holder, this coverage is required.

Importance of Choosing a Professional Agents:

A good Auto insurance agent has the ability to help you find the best coverage that will suit your personal requirements and vehicle types. By hiring an agent from Lane’s Insurance, you can save your time and find the most affordable car insurance coverage in a short time.

Benefits of Auto Insurance:

Auto Insurance replaces your car if it’s stolen

Auto Insurance repairs damage from animal collisions

It repairs weather damage

It covers flood damage

It covers fire damage

It Grants Peace of Mind

Lane’s Insurance is the most reputed Insurance Company In Calgary. Our Services are Auto Insurance In Calgary, Home Insurance In Calgary, Life Insurance In Calgary, Business Insurance In Calgary. Call Us Now At 403.264.8171 To Receive Your Quote.

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4 Things to Consider When Purchasing Auto Insurance

Are you looking to buy a new insurance for your car? If this is the case, then you might be overwhelmed with the wide variety of offers that are present on the market. So how do you proceed? In this article, we will be providing 4 tips to help you make the best decision when purchasing auto insurance.

Know your requirement

You need to know what you are looking for before starting your search for an auto insurance company. Not all companies are equal, and each one of them specializes in one area of insurance. For instance, some companies specialize in low-cost insurance while others might charge a premium but offer a better service. The key here is to determine which type of auto insurance you want, and then you can start your search.

Consider the reputation

It is also important that you consider the reputation of the insurance company. Some companies might offer some fantastic policies only for you to find out later on that they are not easy to deal with when it comes to claims. For this reason, you should ensure that you check the reputation of the company first.

A quick search online should provide you with feedback from other buyers, and there are plenty of forums online where you can interact with other insurance policy holders to find out whether the company you are interested in is a reliable one or not.

Accessibility

Some companies are only available through online channels while others have local offices. In the majority of cases, the ones that are available solely online are the cheapest, but it can be difficult to get in touch with a real person in the event of an emergency.

If you are more confident in dealing with a real person, it might be important that you consider an insurance company that may have local offices in your area. Also, make sure that there is a phone number listed on the website to ensure that you can quick access to the company.

Compare quotes

As mentioned above, not all insurance companies are equal, and it might be interesting to compare quotes. Nowadays everything can be done online or via email, and this can allow you to get numerous quotes quickly. Just make sure that you are comparing like with like as policies may differ between companies.

Once you are satisfied with a quote, you can still call your insurance agent to discuss further and attempt to get a lower rate for your auto insurance.

Mexican Auto Insurance Policies

Planning to take a trip and drive to Mexico? Or maybe to a more specific location, say, planning to drive to Baja? Before you pack your bags, here are some important facts you need to understand.

If you’re planning to drive down to Mexico without Mexico auto insurance and by some unfortunate twist of fate, you get involved in a vehicular accident and you don’t have the necessary means to compensate for any damages caused or the resources necessary to obtain legal counsel, you could very easily end up in prison. Don’t take that risk!

Before taking a drive to Mexico or to Baja, as a responsible driver you should arrange and apply for a Mexican auto insurance policy. Insuring your automobile or vehicle for taking a trip to Mexico is very important. Vehicle insurance is a must if you are driving an American or Canadian vehicle, whether it’s a car, van, truck or RV, across the Mexican border. The law in Mexico requires drivers to have a minimum of $50,000 worth of proof of financial liability for any sort of bodily injury or property damage they instigate to others involved in the accident. Purchasing an insurance policy endorsed by a Mexican company is the only sensible means to avoid a run-in with the law, as Mexican authorities do not acknowledge foreign insurance policies for privately owned vehicles or automobiles in Mexico. Only licensed Mexican insurance companies are able to provide the necessary auto insurance coverage that is acknowledged and accepted by the legal system in Mexico. Without proper insurance, a minor vehicular accident could very well turn into a nightmare, necessitating jail time and enormous monetary penalties.

As Mexican law requires that the liability insurance must be obtained from a licensed Mexican company, then it also means that your auto insurance policy must be issued by a Mexican insurance company, or arranged via a broker in the US that’s affiliated with a Mexican insurance company. Another way is to arrange your vehicle insurance coverage online before you decide to travel as you can get insured at a much better price, arrange immediate coverage online and won’t have to worry about filing all the necessary paperwork.

All insurance policies are purchased from brokers. It’s essential that you know which insurance company is endorsing the policy you are purchasing from the broker, as the insurance company who is endorsing your policy is more important than the broker selling you the policy. In selecting a broker, pick one that is properly licensed and has the necessary resources to appropriately attend to your claim and needs when you’re in Mexico.

There are well over 50 insurance companies in Mexico. Make sure you ask your insurance broker about the size and financial stability of the Mexican auto insurance company they work in conjunction with. Purchasing insurance from a more reliable and financially stable insurance company may be more expensive, but the supplementary premium presents a lower risk to you in the event of claim. Guard yourself and your financial investment by ensuring that the insurance company who endorses your insurance policies has a reliable, stable and strong history.