Automobile Insurance 101

GM, one of the US Auto Industry’s big 3 has done the inevitable, filed for bankruptcy protection to get help from the government while they iron out differences with the French auto maker Fiat with the government getting control of a majority of their company’s stocks. They have been in talks with Fiat for quite sometime but previous efforts to get a working deal that should have prevented this were denied by the US government that funded the firm while they were on the negotiating table. Read the rest of this entry »

Considering that since gas prices went skyrocketing and the recession took hold last year, fewer and fewer people are using their cars even with gas prices normalizing this year. Oil is dirty and people have been forced to notice with the recession getting them to re-think their transport needs and balancing it with the need to look after the environment. One idea that came out of the insurance industry is the “pay-as-you-drive” type of package which would have pro-rated premiums depending on your driving habits. Read the rest of this entry »

There comes a time when we all face the same dilemma, satisfaction with current services and rates have become so high they are not being receptive to your needs. As we all know, the recession is biting hard yet we always love bargains and insurance companies are not always on the negotiating side if you get the picture. Changing providers or insurance companies is an option but you’d have to time your shift to within a few weeks of your current policy’s expiry date due to the waste of double policies. Read the rest of this entry »

With gas prices going down, you may be considering buying a new car for you or your family. But since times are still hard, and it never hurt anyone to save a few bucks of car insurance premiums, here are some tips for getting lower insurance premiums when buying a new car.

1. Buy economical
Car insurance companies are more inclined to give higher premiums for more expensive cars. So when you buy a more practical car, you not only save on the actual price but on the premiums you’ll be paying for it in the future.

2. Repair and maintenance fees
Companies also look at the projected costs of maintenance and repair fees, as well as the cost of spare parts - which depend on the car you buy - so you should take these things into consideration before making a final purchase.

Many Insurance companies have announced that they are freezing rates for this year at least but a large portion of the total number of providers declined to do so sue to uncertainties with the current economy. People and businesses are both feeling the pinch of the stumbling economy and this might be reflected in the fact that car purchases have dwindled to almost zero, with that, the amount of policies sold are also falling. This is in view of other losses such insurance providers might have incurred and with some of the biggest names in finance and banking going into the red zone, times are getting rough indeed.
The need for adequate auto insurance cannot be emphasized more than with the statistics that show thousands die from auto accidents and millions of dollars in losses as a result if such incidents. Uninsured or underinsured drivers risk jail time for such crimes and with most not being able to afford ample coverage, it is becoming quite common.

Your driving habits and even history may have a hidden influence on the premiums you pay for your auto insurance. Any brushes with the law that involves a vehicle such as DUI and other vehicle-related cases will be found by providers when they conduct their background checks as they screen you for the insurance you are applying for. Keep a clean slate so to speak for these records are there to stay for your whole life can even be grounds for denial of coverage by providers.
The higher the risk you are to the firm or the more likely you are to file a claim, the less likely you’d be getting the desired lower premium you so desire. Be safe and always follow traffic rules and regulations and bear in mind that your driver’s license is more of “A Privilege and Not a Right” so take car eon the road.

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A lot of reasons exist why you want to change your car insurance company. Maybe you are dissatisfied with the service given by your current insurance company or simply, there is another company willing to give you the same coverage at a significantly lesser price. Switching to a new car insurance company has never been easier. Get a new car insurance policy first before doing away with the old one. You don’t want to drive with an expired insurance - if you get caught, more problems are in store for you. It is also good to know when to change policies. Depending on your state rules, 3 to 4 weeks before your insurance expires, a renewal notice will be sent to you more or less a month before the new policy starts. The notice will tell you what your new premium and coverage will be including your discounts. You can now shop around for a new policy based on the data that was sent to you. This way, you have enough time to look for the insurance company that will give you value for your money.

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It can be quite of a confusing task to search for your car’s insurance plan. Most especially when you are clueless of any insurance and commercial knowledge. It can be a big help to look through the internet to learn some basic knowledge in car insurance policies and terms. This is very important in purchasing a plan because it will save you from all the trouble when you most need it. Here are some terms you should try to understand to help you start off with your search.

• Property Damage - If you happen to be the party fault in a traffic accident, and you have damaged the other party’s vehicle, this policy will be responsible for paying up for the other party’s car over all repair.
• Personal Injury - It will cover your own medical expenses at a certain price range, according to the term. Sometimes it also covers salary compensation for the time you spent out of work.
• Comprehensive Insurance - This is the most common and popular insurance policy. It specifically pays up every expense that might arise due to the accident. You have complete peace of mind.
• Bodily Injury - This will take care of the other driver ifever he gets hurt in the accident.
• Collision - This will cover only the vehicle damaged in the accident because of your mistake. It does not provide medical expense support.

It is good to know some of these terms so that you can opt for the best policy that will suit your needs.

Would you be willing to pay additional premiums on your car insurance? According to an article on ajc.com, Georgia Insurance Commissioner John Oxendine said he is considering the addition of fees on car and other forms of insurance to support trauma care services for car accident victims and others. This is because the state is desperately in need of more funding for trauma care services. And Oxendine says it makes sense since most trauma cases are a result of car crashes and work accidents.

There is opposition, of course, since insurance industry advocates argue that this would raise the costs and premiums of their products, as well as add new and unfair taxes to the industry. Since such fees are normally passed on to the consumers, it would be a double whammy for responsible citizens who religiously pay their taxes and get car insurance. Moreover, this fee would not be specific to car insurance, but may also apply to health insurance and worker’s compensation.

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In car insurance as in any other form of insurance coverage, there exists what is commonly called as the doctrine of utmost good faith which forms as the founding principle for the execution of any insurance coverage. This doctrine accentuates the reciprocal faith that exists between the insurer and the insured. This doctrine is based on two principles; Duty of Disclosure and Representations and Warranty.

Duty of Disclosure simply states that the insured is obligated by law to disclose to the insurer any information that will have an influence on the issuance of an insurance contract. Representations and Warranty is a declaration executed by the insured that all information provided to the insurer are true and complete to the best of his knowledge and understanding.