Affordable auto insurance is a term used a great deal in commercials and by those seeking car insurance. However, when people say that they want affordable auto insurance, there is a wide variation on what a person would consider to be affordable. The appropriate price for affordable auto insurance depends upon your situation, and can be affected by factors such as your age, demographics and the type of vehicle you drive.
What is Affordable Auto Insurance
The cheapest insurance policy you can find may seem as if it is the most affordable auto insurance. However, it is vital to remember that other factors go into selecting an insurance company in addition to costs. For example, if the most affordable policy requires you to have a $2,500 deductible, this means your insurance will not pay out until a claim has exceeded $2,500. Furthermore, that would mean that you would need to cover the first $2,500 of any car related damage. If you cannot afford to cover that $2,500, the policy is not really affordable to you at all.
Likewise, if your liability limits are too low, the insurance policy may leave you in a financially vulnerable position. For example, if the upper limits on liability are $10,000, you will be on the hook for any damage that you cause over and above the $10,000. If you cannot afford to make large payments in the event that you damage someone else's expensive car or in the event that you injure someone, choosing such a policy would be a terrible idea for you. The premiums may seem affordable, but you would be putting yourself into a situation where you were facing serious financial risk. A judgment against you in court could lead to bankruptcy, wage garnishment, or numerous other related legal actions.
The most affordable policy, therefore, is the policy that provides you with the coverage that you need in order to be fully protected. While this may mean the monthly premiums are a big more expensive than a bare bones policy, you will want to spend the extra in order to be fully protected.
Evaluating Auto Insurance Rates
Although you want comprehensive coverage, you don't want to pay more than you have to. Compare rates and quotes with national averages to determine if you are truly getting affordable auto insurance. For example, Car Insurance.com reports that the national average for premiums for 2010 is $1,566. For teens, however, the average is much higher. In 2009, the average per month for teens to insure ranged from just over $1700 to just over $1900 per year.
Looking at national averages can be useful in determining if you are paying too much, but remember that policy premiums change depending on where you live and other demographic factors, as well as based on your driving history. The definition of affordable auto insurance thus depends on what you believe is reasonable to pay for protection, and on the type of quotes you can find in your situation.
Sabtu, 04 September 2010
Kamis, 15 April 2010
Ultimate Guide to Cheap Car Insurance
If you own a car, truck, or other vehicle you are required by law to carry some type of insurance coverage. At a minimum, you are required to carry liability coverage that will cover expenses related to personal injury or property damage. In other words, if you cause an accident and someone is injured or property is damaged, you are responsible for paying for damages.
An insurance policy guarantees payment of a certain amount to cover these expenses should an accident occur. The rates you pay for your car insurance policy are based upon many factors including: age, sex, driving history, credit history, and year, make and model of the vehicle being insured. Other cost factors are determined by the amount of coverage you want.
Comprehensive is the most expensive type of insurance coverage. This type of insurance can offer protection to you, your family, and your car. It covers other things that can happen to your car such as fire, vandalism, or acts of Mother Nature such as hail damage.
Liability is the cheapest car insurance; however, if you do not own your car outright, you cannot purchase liability insurance alone. Lenders require you to have comprehensive insurance covering the vehicle until the note is paid in full.
Liability insurance offers protection to people in other cars when you are at fault for an accident. Typically, liability insurance will cover medical expenses and car repairs, up to a certain dollar amount. In most cases, liability insurance covers you in any vehicle that you drive, whether it belongs to you or someone else.
It used to be that Americans had few choices when it came to car insurance. There were a few major players and they basically had the same rates. Today, there are hundreds of insurance companies eager to obtain your business. The best part is they are offering cheap car insurance rates.
The following tips can help you obtain the cheapest car insurance rates, while making certain you adhere to your state’s minimum insurance requirements.
1. Shop around. Conduct research via the Internet or by phone. Nearly every car insurance agent will provide you with a free quote. It’s a good idea to shop around for competitive rates on your current vehicle. If you’re thinking of buying a new vehicle, obtain quotes for the car you are interested in purchasing. Nothing stings more than to buy a car, only to discover you now have a $400 a month insurance premium. Know your insurance costs before you buy a car, and plan your budget accordingly.
2. Keep a clean record. Both your driving history and credit history are determining factors in the amount of your insurance premium. If you want to have cheap car insurance rates, keep your foot off the gas, obey traffic laws, and pay your bills in a timely fashion.
3. Bundle your insurance. Many car insurance companies offer other types of insurance such as homeowner’s and life. If you buy all your insurance coverage from them, chances are you will receive a significant discount on your premiums.
4. Increase your deductible. One of the biggest mistakes car owners make is to purchase a policy with a low deductible. By increasing your deductible to $1500, you can save up to 20 percent off your monthly premiums. A smart thing to do is to place $1500 in an interest-bearing savings account. The money can draw interest and you will have peace of mind knowing the deductible money is sitting in the bank should you ever need it.
5. Buy online. You can save up to 10 percent or more by purchasing car insurance online. Many insurance companies offer a discount to individuals who set-up automatic payments. This can be done by entering a credit card number or bank account. Each month the agreed upon amount will automatically be deducted from your checking account or charged to your credit card.
6. Buy a more economical car. Insurance rates are partially based on the type of car you drive. If the vehicle has low safety ratings, high theft rates, or high incidence of vandalism, you will pay a higher premium. It’s a good idea to research car ratings prior to purchasing one. Look for cars with high safety ratings and low maintenance costs.
An insurance policy guarantees payment of a certain amount to cover these expenses should an accident occur. The rates you pay for your car insurance policy are based upon many factors including: age, sex, driving history, credit history, and year, make and model of the vehicle being insured. Other cost factors are determined by the amount of coverage you want.
Comprehensive is the most expensive type of insurance coverage. This type of insurance can offer protection to you, your family, and your car. It covers other things that can happen to your car such as fire, vandalism, or acts of Mother Nature such as hail damage.
Liability is the cheapest car insurance; however, if you do not own your car outright, you cannot purchase liability insurance alone. Lenders require you to have comprehensive insurance covering the vehicle until the note is paid in full.
Liability insurance offers protection to people in other cars when you are at fault for an accident. Typically, liability insurance will cover medical expenses and car repairs, up to a certain dollar amount. In most cases, liability insurance covers you in any vehicle that you drive, whether it belongs to you or someone else.
It used to be that Americans had few choices when it came to car insurance. There were a few major players and they basically had the same rates. Today, there are hundreds of insurance companies eager to obtain your business. The best part is they are offering cheap car insurance rates.
The following tips can help you obtain the cheapest car insurance rates, while making certain you adhere to your state’s minimum insurance requirements.
1. Shop around. Conduct research via the Internet or by phone. Nearly every car insurance agent will provide you with a free quote. It’s a good idea to shop around for competitive rates on your current vehicle. If you’re thinking of buying a new vehicle, obtain quotes for the car you are interested in purchasing. Nothing stings more than to buy a car, only to discover you now have a $400 a month insurance premium. Know your insurance costs before you buy a car, and plan your budget accordingly.
2. Keep a clean record. Both your driving history and credit history are determining factors in the amount of your insurance premium. If you want to have cheap car insurance rates, keep your foot off the gas, obey traffic laws, and pay your bills in a timely fashion.
3. Bundle your insurance. Many car insurance companies offer other types of insurance such as homeowner’s and life. If you buy all your insurance coverage from them, chances are you will receive a significant discount on your premiums.
4. Increase your deductible. One of the biggest mistakes car owners make is to purchase a policy with a low deductible. By increasing your deductible to $1500, you can save up to 20 percent off your monthly premiums. A smart thing to do is to place $1500 in an interest-bearing savings account. The money can draw interest and you will have peace of mind knowing the deductible money is sitting in the bank should you ever need it.
5. Buy online. You can save up to 10 percent or more by purchasing car insurance online. Many insurance companies offer a discount to individuals who set-up automatic payments. This can be done by entering a credit card number or bank account. Each month the agreed upon amount will automatically be deducted from your checking account or charged to your credit card.
6. Buy a more economical car. Insurance rates are partially based on the type of car you drive. If the vehicle has low safety ratings, high theft rates, or high incidence of vandalism, you will pay a higher premium. It’s a good idea to research car ratings prior to purchasing one. Look for cars with high safety ratings and low maintenance costs.
Minggu, 11 April 2010
Insurance Information
Insurance Information
Some types of online automobile insurance are essential, others are desirable; but others are completely unnecessary. Insure your possessions and your family members first.
Nearly all states require bodily injury liability automobile insurance to deal with health-care medication, medical treatments, and also funeral payments for your passengers, other car drivers, their passengers, and pedestrians. Additional costs that are covered include attorney costs and also non-monetary losses related to pain and suffering. State minimum insurance coverage limits are too low to protect the assets of so many motorists. If your earnings and assets are low, get a minimum of $100,000 for each individual, and $300,000 for each accident.
Property damage liability covers restoration or an exchange of other people’s automobiles as well as personal property. State minimum limits come to about $15, 000. With the typical fee of a new automobile at $25, 000 however, get a minimum of $30, 000 in automobile insurance.
When a hit-and-run driver or a driver who’s inadequately insured hits your car, uninsured motorist and underinsured motorist insurance covers the health care, therapy, burial, and pain and suffering payments of the affected passengers in your car. This important online automobile insurance also covers your family members as pedestrians. Buy this coverage at the same price of your physical injury liability automobile insurance.
PIP (Personal Injury Protection), also labelled as ‘no fault’, covers healthcare, therapy, and funeral charges for your family members, and a small amount of lost money and in-house repairs. If your physical condition and disability coverage are minor, then just buy the minimum amount.
If your budget permits, you should think about some of the following options:
Collision coverage pays for repairs or changes to your vehicle in the event of an accident. If you’ve paid for a new vehicle with a loan, you may well be compelled to purchase this coverage.
Comprehensive coverage pays if your car or its contents are stolen, or if your car is damaged by fire, flood, or other different kinds of hazards. Money lenders may also compel you to purchase this coverage.
For both of these, you may perhaps have to select a deductible amount that you’ll have to pay before the insurance company pays the balance. The higher the deductible you have, the more you will save. Try to have a deductible of at the least five hundred dollars for each coverage.
For automobiles valued at less than five thousand dollars, comprehensive and collision coverage are probably not worth having. In time, the premiums you will pay will possibly exceed the payment, even if your vehicle is entirely totalled in an accident. Moreover, in an accident that’s not your fault, you could perhaps assume that the other driver’s insurance would cover your car. Before trying to purchase online automobile insurance, you should be aware of the different kinds of insurance that are out there. Insurance coverage for automobiles may be categorized in 3 main sections: liability, comprehensive, and collision insurance. Your online automobile insurance plan may split up the price into sections of the insurance premium.
Therefore, let’s take a look at the three different sections of your online automobile insurance plan. Almost 40% of your car’s online insurance fees could be for collision and comprehensive insurance. There is a deductible amount which you are required to pay before you can file a claim. If your claim is priced at $500 and if your automobile insurance plan has a $300 deductible, you’ll probably have to pay the initial amount of $300, and then file a claim for $200. Other insurance policies may include hospital costs for you and your passengers, regardless of who’s at fault.
Comprehensive Coverage
A percentage of your automobile insurance payments may go toward uninsured motorist protection in case you’re involved with in an accident with someone who’s uninsured. Just as the title suggests, comprehensive insurance is precisely that. It pays for replacement of parts or damages if your car is, for example, stolen or ruined in a fire, hurricane, or flood.
Liability Coverage
Liability coverage covers you in the instance that you are accountable for an accident. You can be accountable not only for the damage to other persons’ car, but also for loss of funds, hospital costs, and the pain and suffering to the people affected in the accident.
Collision Coverage
Collision coverage covers the maintenance of your automobile, or replacement of it, at its market-value at the time of the accident despite who’s at fault. However, did you know that this coverage also covers stationary objects like lamp posts and phone poles that would have been broken in the accident?
Additional Coverage Options
There are plenty of additional automobile insurance alternatives which you may include into your main policy plan. An example of this can be insurance coverage for a leased car if your car is damaged or ruined and will require several working days to fix it.
In order to protect yourself and your family, you better be sure that you’re protected from any kind of accident while on the highway, by getting the maximum amount of online automobile insurance you could afford. Supposing you’re insured for a lower amount, and you’re mixed up in a high priced insurance claim, it may possibly clean you out. Enough online automobile insurance would protect you from this mess. Online automobile insurance protects you against money related damage in the event that you are involved in an accident. It is a contract between you and the online automobile insurance company. You agree to pay the insurance premium and then the insurance company decides to pay your losses as specified in your online automobile insurance policy.
Online automobile insurance provides personal property, liability, and health care coverage:
• Personal Property coverage pays for damage to your car or if it’s stolen.
• Liability coverage pays for bodily harm/injuries to other people and even property damage.
• Health Care coverage pays for hospital costs, medical treatments, and also lost funds and funeral costs.
An online automobile insurance policy brings together six different kinds of coverage. A good number of states demand you to obtain some, but not all of them. If you have a loan on a car, your lender may also have some requirements. A large number of online automobile insurance policies are usually anywhere between 6 months and a year. Your insurance coverage company should advise you through letters when the time nears to renew your online car insurance policy and even to make your payment.
With the exception of a few, nearly each state requires you to acquire a minimum amount of liability insurance. Chances are you will require more liability insurance coverage than the state requires considering that accidents cost more than the minimum amount can cover. Supposing you’re found legally responsible for damages which are greater than the limit of your car insurance, you’ll probably have to pay the difference out of your own wallet. Such expenses could surely bankrupt you!
It is highly recommended that you have $100,000 of injury coverage for each person and $300,000 for each accident. If your entire estimate is a lot more than $300,000, you should think about paying for additional liability coverage. You may even come to a decision about obtaining an umbrella or excess liability policy. Such online car insurance policy plans pay when your principal coverage is used up. Most often, these types of policies are priced between $200 and $300 a year for a $1,000,000 insurance policy. If you happen to have insurance coverage from different companies, it may perhaps be smarter to buy the same types of insurance from one online automobile insurance company.
Along with liability insurance coverage, shop for both collision and comprehensive coverage. You cannot pinpoint the amount of insurance coverage to buy. Your coverage reflects the current price of your car and also the expense of fixing it. Settle on the deductible amount that you’ll have to pay before the insurance company pays the balance. Usually, deductibles are 500 dollars or a thousand dollars; the greater your deductible, the smaller your insurance premium is. An online automobile insurance policy mainly covers:
• You and your wife or husband
• Family members who live inside your residence
• Other qualified automobile drivers who have your permission to drive your car.
Some types of online automobile insurance are essential, others are desirable; but others are completely unnecessary. Insure your possessions and your family members first.
Nearly all states require bodily injury liability automobile insurance to deal with health-care medication, medical treatments, and also funeral payments for your passengers, other car drivers, their passengers, and pedestrians. Additional costs that are covered include attorney costs and also non-monetary losses related to pain and suffering. State minimum insurance coverage limits are too low to protect the assets of so many motorists. If your earnings and assets are low, get a minimum of $100,000 for each individual, and $300,000 for each accident.
Property damage liability covers restoration or an exchange of other people’s automobiles as well as personal property. State minimum limits come to about $15, 000. With the typical fee of a new automobile at $25, 000 however, get a minimum of $30, 000 in automobile insurance.
When a hit-and-run driver or a driver who’s inadequately insured hits your car, uninsured motorist and underinsured motorist insurance covers the health care, therapy, burial, and pain and suffering payments of the affected passengers in your car. This important online automobile insurance also covers your family members as pedestrians. Buy this coverage at the same price of your physical injury liability automobile insurance.
PIP (Personal Injury Protection), also labelled as ‘no fault’, covers healthcare, therapy, and funeral charges for your family members, and a small amount of lost money and in-house repairs. If your physical condition and disability coverage are minor, then just buy the minimum amount.
If your budget permits, you should think about some of the following options:
Collision coverage pays for repairs or changes to your vehicle in the event of an accident. If you’ve paid for a new vehicle with a loan, you may well be compelled to purchase this coverage.
Comprehensive coverage pays if your car or its contents are stolen, or if your car is damaged by fire, flood, or other different kinds of hazards. Money lenders may also compel you to purchase this coverage.
For both of these, you may perhaps have to select a deductible amount that you’ll have to pay before the insurance company pays the balance. The higher the deductible you have, the more you will save. Try to have a deductible of at the least five hundred dollars for each coverage.
For automobiles valued at less than five thousand dollars, comprehensive and collision coverage are probably not worth having. In time, the premiums you will pay will possibly exceed the payment, even if your vehicle is entirely totalled in an accident. Moreover, in an accident that’s not your fault, you could perhaps assume that the other driver’s insurance would cover your car. Before trying to purchase online automobile insurance, you should be aware of the different kinds of insurance that are out there. Insurance coverage for automobiles may be categorized in 3 main sections: liability, comprehensive, and collision insurance. Your online automobile insurance plan may split up the price into sections of the insurance premium.
Therefore, let’s take a look at the three different sections of your online automobile insurance plan. Almost 40% of your car’s online insurance fees could be for collision and comprehensive insurance. There is a deductible amount which you are required to pay before you can file a claim. If your claim is priced at $500 and if your automobile insurance plan has a $300 deductible, you’ll probably have to pay the initial amount of $300, and then file a claim for $200. Other insurance policies may include hospital costs for you and your passengers, regardless of who’s at fault.
Comprehensive Coverage
A percentage of your automobile insurance payments may go toward uninsured motorist protection in case you’re involved with in an accident with someone who’s uninsured. Just as the title suggests, comprehensive insurance is precisely that. It pays for replacement of parts or damages if your car is, for example, stolen or ruined in a fire, hurricane, or flood.
Liability Coverage
Liability coverage covers you in the instance that you are accountable for an accident. You can be accountable not only for the damage to other persons’ car, but also for loss of funds, hospital costs, and the pain and suffering to the people affected in the accident.
Collision Coverage
Collision coverage covers the maintenance of your automobile, or replacement of it, at its market-value at the time of the accident despite who’s at fault. However, did you know that this coverage also covers stationary objects like lamp posts and phone poles that would have been broken in the accident?
Additional Coverage Options
There are plenty of additional automobile insurance alternatives which you may include into your main policy plan. An example of this can be insurance coverage for a leased car if your car is damaged or ruined and will require several working days to fix it.
In order to protect yourself and your family, you better be sure that you’re protected from any kind of accident while on the highway, by getting the maximum amount of online automobile insurance you could afford. Supposing you’re insured for a lower amount, and you’re mixed up in a high priced insurance claim, it may possibly clean you out. Enough online automobile insurance would protect you from this mess. Online automobile insurance protects you against money related damage in the event that you are involved in an accident. It is a contract between you and the online automobile insurance company. You agree to pay the insurance premium and then the insurance company decides to pay your losses as specified in your online automobile insurance policy.
Online automobile insurance provides personal property, liability, and health care coverage:
• Personal Property coverage pays for damage to your car or if it’s stolen.
• Liability coverage pays for bodily harm/injuries to other people and even property damage.
• Health Care coverage pays for hospital costs, medical treatments, and also lost funds and funeral costs.
An online automobile insurance policy brings together six different kinds of coverage. A good number of states demand you to obtain some, but not all of them. If you have a loan on a car, your lender may also have some requirements. A large number of online automobile insurance policies are usually anywhere between 6 months and a year. Your insurance coverage company should advise you through letters when the time nears to renew your online car insurance policy and even to make your payment.
With the exception of a few, nearly each state requires you to acquire a minimum amount of liability insurance. Chances are you will require more liability insurance coverage than the state requires considering that accidents cost more than the minimum amount can cover. Supposing you’re found legally responsible for damages which are greater than the limit of your car insurance, you’ll probably have to pay the difference out of your own wallet. Such expenses could surely bankrupt you!
It is highly recommended that you have $100,000 of injury coverage for each person and $300,000 for each accident. If your entire estimate is a lot more than $300,000, you should think about paying for additional liability coverage. You may even come to a decision about obtaining an umbrella or excess liability policy. Such online car insurance policy plans pay when your principal coverage is used up. Most often, these types of policies are priced between $200 and $300 a year for a $1,000,000 insurance policy. If you happen to have insurance coverage from different companies, it may perhaps be smarter to buy the same types of insurance from one online automobile insurance company.
Along with liability insurance coverage, shop for both collision and comprehensive coverage. You cannot pinpoint the amount of insurance coverage to buy. Your coverage reflects the current price of your car and also the expense of fixing it. Settle on the deductible amount that you’ll have to pay before the insurance company pays the balance. Usually, deductibles are 500 dollars or a thousand dollars; the greater your deductible, the smaller your insurance premium is. An online automobile insurance policy mainly covers:
• You and your wife or husband
• Family members who live inside your residence
• Other qualified automobile drivers who have your permission to drive your car.
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