With the number of vehicles increasing by the hour, life on the road can be unpredictable. You never know when an accident is likely to occur. Even if you’re a safe driver, there’s no certainty about avoiding mishaps. It is important to have adequate auto insurance cover while driving on streets and busy highways.
Every state has a prescribed limit of auto insurance cover, which it makes mandatory for vehicle owners to have while driving. If you’re caught driving without insurance cover, the penalties imposed will be steep. These differ according to the law of every state. Auto insurance cover ensures that you receive protection against the losses incurred through vehicle accidents on the road.
You have to understand that if you are responsible for causing an accident on the road you are liable to pay for the damages to the other party. In such a case if you do not have insurance cover, the other party has the right to sue you for damages caused. In case your auto insurance cover is less than the other party’s insurance, it would mean that you are the underinsured, which would mean that you are liable to pay for the amount exceeding the amount of your policy. In order to be safe and avoid such a scenario it is always a good idea to have more insurance cover than the prescribed limit of your state.
In case you are involved in an accident and have the adequate amount of auto insurance cover, your auto insurance company will take care of the damages paid to the other party in the accident. An auto insurance policy is important because it ensures that you don’t have to face lawsuits or the brunt of the other party in case you are involved in an accident. Many insurance companies offer auto insurance coverage. To avail of auto insurance, you are required to pay a premium to the auto insurance companies. Lots of auto insurance companies offer schemes and discounts in order to attract customers.
The rates among different auto companies differ in terms of the services and features offered by the company. In case your auto insurance policy has expired and you delay the renewal of your auto insurance policy, in the event of an accident during this period you will be solely liable for the damages caused to the other party. Very few states or insurance companies have a grace period to renew auto insurance policies. Always ensure that you check the date of expiration in order to renew your auto insurance policy before the date elapses.
To entice consumers, relatively new auto insurance companies offer lower premium rates to individuals as compared to the already established ones. When you purchase adequate auto insurance coverage, ensure that you wouldn’t have to spend large sums of money in the event of you causing an accident. You can be assured that your auto insurance company will pay for the damages incurred by the other party involved in the accident.
Before one makes a decision of buying an auto insurance policy, one needs to be informed of certain matters, which would affect your choice of the policy. Knowing about your own driving record in the past decade – the fines incurred or accidents you were involved in – would have a bearing on your choice of the insurance carrier. Some insurance carriers concern themselves with driving records of merely the last 3 years, hence if your records until then are clean, but were not so prior to that, would mean you make your choice of policies on offer by these companies.
Next parameter that most insurance carriers use to adjust the quotations is the credit rating of the person taking the policy. A good credit report would obviously work in your favour. In case you are planning to buy a car on borrowed money, the lending party would insist on your obtaining cover, which includes both the comprehensive, and collision insurance cover. When fixing the insurance rates, the companies would consider the safety features installed in the car as well as the cost of damages in case of repairs to be undertaken. Hence buying a functional car rather than an exotic one would be financially prudent.
Another factor that affects insurance rates depends on gender and celibacy. A male less than 25 years of age and not married is considered more of a potential risk by insurance companies for obvious reasons. Taking advantage of discounts available on multiple car cover leads to saving on auto insurance premiums.
Keeping copies of the car registration, insurance policy and your licence along with receipts of new accessories added to your car or any new parts installed are a safeguard in case of robbery. Report of your car being stolen not only to the law enforcement authorities with these details but also to the insurance carrier ensures that while investigations are on, you can avail of cars on rent provided by your carrier. Besides, equipping your car with security alarms again means a saving on the insurance rates.
Purchasing the uninsured and underinsured motorists insurance is necessary. Teenagers especially boys are an expensive addition on your policy. There are companies that offer concessions where your teenager achieves good grades at school, has undergone all the coaching courses on driving and keeps a neat driving log. If insured as on occasional driver, it would help marginalise costs since the liability coverage has to be as high as the necessity.
Opting to pay premium as a onetime payment yearly also attracts discounts. At times, your multiple insurance cover can be stretched to include your two wheelers like bikes, mopeds, and caravans too. The policy cover for personal insurance can be stretched to include not only you, but also your family members, close friends, colleagues and associates, and any driver that occasionally uses the car. At times if you drive very often with a child visitor, its best to seek counsel from the insurance company as to when can the child be include in your insurance policy cover.
The availability of innumerable options in auto insurance does pose a problem of choice. The positive aspect about it is that with the auto insurance expenses soaring, it’s worth the effort and pain to find out which of the available options best suits your needs and at the same time is cost-effective.
Using a comparison site enables ease in looking at different rates and a quick look at the pros and cons of the various options on offer. The best part about a comparison site is that it has exhaustive details on everything concerning auto insurance and even a state-by-state break-up of details. Thus merely filling up the questionnaire available online suffices to find at hand all info on all the insurance carrier options on offer throughout the length and breadth of the country. The fact that quotations are available helps in strategising the search first by price then by policy. Narrowing down, thus allows one to sift through the data without getting overwhelmed. The time and effort involved will pay off in the long run since you would be able to zero in on a cost-effective and an optimal policy. The coverage offered would be the maximum at the least cost.
Amongst the various clauses available, one would be to enrol for the PIP (Personal Injury Policy) which takes care of compensation of medical expenses for injuries suffered by you and your passengers too. This though is not mandatory in all states, it’s advisable to include in your auto insurance.
The other coverage, which again is optional but for sake of prudence one must include is the Uninsured/Underinsured Motorist Coverage. Injury resulting from an accident wherein the driver is uninsured would be covered under this option. Having such comprehensive auto insurance cover on your precious vehicle is deemed playing safe considering that 12 accidents take place every hour in America and every 14th vehicle is not covered by any auto insurance cover. Despite the fact that laws against driving without insurance cover are so stringent in majority of the states.
Making the right choice of auto insurance cover is a matter of a few minutes spent online. But before that you need to do some homework. You ought to get thoroughly knowledgeable with your own precious vehicle – which actually is a pleasant task. Noting down all the extra safety measures and accessories installed in your car will make a difference as far as quotations go. Search further to find out all other benefits on offer including discounts and bonuses.
Being a non-smoker or a driver with a proven track record and armed with credentials of having undergone all courses on safety helps in reducing your costs. Check out the insurance carrier’s financial viability and its customer service reviews to ensure a quick processing of claims if and when the need arises. The ongoing recession is another reason why saving on auto insurance would enable one to use those precious resources elsewhere. It all depends on your inclination to browse a comparison auto insurance site and the times well spent on making the right choice.
Much counsel has been offered on how to get an auto insurance cover that would work out to be the cheapest and at the same time be most effective.
Advocates suggest surfing online. Contacting insurance agents or working with references ought to provide all answers and a panacea to all problems related to auto insurance. The plethora of information available is so mind-boggling, besides, certain terminology is not of current usage or in layman’s terms proves to be cumbersome to be read and comprehended. The site does offer an option of frequently asked questions along with the answers to take care of most oft asked common queries. Yet at times, even the answers provided do not suffice to throw light with clarity on the subject matter. Hence, I endeavor to simplify the common doubts that arise on reading about auto insurance coverage details, options, and clauses.
Umbrella policy as the name suggests extra cover on your auto insurance policy and homeowner’s insurance policy, to cover all those aspects, which do not fall within the purview of the insurance cover offered individually by the respective policies. Auto insurance expenses are high and yet at times the cover offered falls short of the actual damages. In these circumstances it pays to take an umbrella cover, which by paying a one-time premium ranging from $200 to $300 takes care of the extra coverage and all your damages in case of an accident. The insured amount can be high as one million to five millions of dollars. Acting like a safety net, this cover gives you much needed peace of mind in these days of stress.
Comprehensive cover and collision cover as the very words suggest literally – provide protection accordingly. In case of comprehensive insurance, the cover would deem to include damage arising out of naturally occurring disasters – example fire, hail, storm, etc. Whereas collision cover would deem to mean cover for damages arising out of collision – to be precise an accident cover only. Most lenders and banks mandate the purchase of both comprehensive and collision cover which may vary from state to state. To illustrate Katrina would affect one particular state more than the others.
Most states do not allow the addition of teenagers who have a drivers permit to the insurance policy cover.
Exception to this would be, if an insured driver accompanies them. In this case, they would be automatically covered under the insured driver’s policy. On receiving their licence though, teenagers are required to obtain their own insurance cover.
Out-of-state tickets received will show up on your DMV records if that particular state happens to fall within the purview of the Driver’s Licence agreement (DLA). Therefore, the insurance company would have access to all your DMV records from all those states that are a part of the DLA.