Automobile Insurance 101

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.

by: Djai Tanji

Buy a car that has a lower rating category because there are certain types of car that the rate is too high. Also, include in your list a car that has several safety features. To make the security agency feel more secure towards you, try to have a good credit history. Your rate is more likely to go higher if a lot of debts show in your credit history. With a good driving record and fewer claims also, you can have a lower premium. You can also ask your agent about discounts. There are certain bases that you will be given discounts like if your record shows you are a good driver, if you have anti-theft devices and so on. Shopping around for insurance is also a good way to have a lower rate.

By: MJ

a) There can be no tangible evidence to show for your money at the end of the contract. 2 years of payments will all be for naught once the contract ends.

b) One opting for car lease must start from scratch every time while a person who owns a car already has equity. Even though this asset of his depreciates over time, he still benefits the services it provides once the five year loan is over and he enjoys longer “free transportation”.

c) Cars for lease have a mileage limit. Car owners can drive their cars for as long as they like. They can also have a stained seat, door dings, and dents while not worrying about anything in the end since it is their property whilst leasers have to pay for every little damage that they do unto the car.

By: MJ

a) You’re always driving a new set of wheels. Since they’re basically rented, you can always keep on renting a new one every few years and not have to worry about how the car will depreciate over time.

b) Since monthly payments are lower than loaning a car, you can afford to drive more expensive cars this way.

c) Total cash outlay should be lesser. Customers don’t have to make a large down payment as if they were buying the car. The extra money saved up between the lesser monthly payments and the lesser total cash outlay can be used for other things.

By: MJ

As with renting apartments, fixed periods come with leasing a car. Typically, the time period is 2-3 years. For the length of the contract, you’re obligated to pay monthly. A security deposit will have to be paid at the lease inception to pay for any damages to the vehicle once it is returned.

The thing with leasing cars is flexibility. Customers don’t have to worry about making a long term commitment since they can just bring the car back and walk away when the contract is over. Also, since it’s just a rented car, it’s none of your concern if the car depreciates in value since you paid for it anyway. Doing this makes it easy to switch to newer car models every few years.

By: MJ

Car leasing is increasingly becoming more popular these days. But what exactly does a car leasing entail?

Car leasing, in simpler terms, is just like renting an apartment. You pay to use it, but you don’t get to own it. However, the two are opposite in terms of value change over time. As time goes by and cities overcrowd, apartment spaces become more and more expensive. Meanwhile, cars depreciate in value as time goes by because newer and more efficient and price competitive cars are produced. However, this is the issue of the lessor, the company that leases the car, and a leaser should not worry about depreciating value or any other thing.

by: Djai Tanji

For those who drive without any auto insurance, you better watch out for the Insurance Info and Enforcement System. Basically, the Insurance Information and Enforcement System is a system used specifically in United States by a number of “Department of Motor Vehicles” agencies in tracking people down who might be driving without any automobile insurance. The system was created mostly because many vehicle owners try to deceit the DMV by making them think that they are have a car insurance by registering their car with a policy and then terminating it right after just to keep the plates. There are several jurisdictions that prohibit no-insurance driving and this system is quite useful in keeping track of applications or cancellations of policies.

by: Djai Tanji

Here is the list of basis of premium charges:

•GENDER – men have a potentially higher involvement in vehicle accidents because they have higher average of miles driven per year than women.
•AGE – teenagers who have no record in driving will have higher insurance premiums. At the age of 25, insurance premiums commonly is more likely to become lower. Senior drivers are commonly entitled for retirement discounts reflecting lower average miles driven by seniors.
•DISTANCE – not all plans differentiate regarding how much the car is used but the methods of differentiation include Reasonable Estimation, Odometer-bases Systems, GPS-based System, and OBDII-based system.

by: Djai Tanji

“Excess” is the fraction of any claim that is not enclosed in the policy of your insurance provider. Deductible is an excess compensation, a fixed payment you have to pay each time your car is being repaired with the use of your car insurance policy. It is in the repair “garage,” an establishment where vehicles are being repaired and serviced at, that the fee is directly transacted and the vehicles is collected. “Write off” is a term normally used in car insurance wherein a cheaper vehicle is going to be replaced rather than be repaired. And if your car is affirmed to be a “write off,” the insurance company will subtract the excess decided for the policy from your settlement payment.

by: Djai Tanji

Auto insurance is compulsory in most states in the United States, though the enforcement of the condition differs from state to state. If you choose not to have an auto insurance, the penalty varies according to state but most of the time it entails considerable fine, suspension or revocation of license or/and registration, and in some states you can possibly go to jail. The third party insurance is normally the smallest amount required by law in the United States to protect or cover the third party against the financial result of injury, damage, loss that is caused by the vehicle.