Automobile Insurance 101

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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.

By: MJ

Now that you know the obvious traps from the past articles, it’s time to know how to avoid them.

a) Keep your eye firmly on the price. There is absolutely no wisdom in discussing monthly payments until you have negotiated the lowest possible total price first.

b) Consider leasing cars. Leasing is a great alternative for those who normally change cars every few years. Customers pay the amount of value a vehicle loses over the time that he/she is using it. The only thing to consider is that you should be a great caretaker of the car and that you should drive within the agreed-upon number of miles per year. Penalties may be applied for damages to the car.

By: MJ

New car buyers are increasingly wanting to buy more luxurious and expensive cars. In order to do so without disrupting the “constancy” in their minds, they extend the duration of the loans to finance their purchase of the vehicle. What constancy is this in their heads? If they buy a cheaper car, let’s say they have to pay $100 a month for 2 years. This is just an example. Now, if they extended the time period, technically, they could still pay $100 a month. BUT, they get to have a better car. It’s the same thing in their shallow minds anyway, $100 a month. The fact that they have to pay for 5 years, an additional of 3 years to the one before doesn’t register in their heads.

By: MJ

How exactly do the sellers pull of this kind of stunt while pulling away with clean fingers? This has partly something to do with the buyers as well. For so long, the mentality of “more for the same” has plagued the minds buyers. After all, who wouldn’t be attracted to that kind of offer? Instead however, they fail to remind themselves that the “same” they are instilling in their own minds is just for a specific time frame only and not the whole duration. Confusing? How about a more specific explanation then? Let’s take into account the present situation, buying of cars.

By: MJ

For the first time, the buyers are outwitting the sellers. Or are they? In a self-convincing attempt that they can have better luxury by still paying the same amount every month, buyers are becoming more and more emboldened by this twisted philosophy when in reality, they are actually dragging themselves down even further. This illusion of undisturbed constancy has been cunningly placed unto the minds of buyers by the sellers but the real genius behind it is the fact that the buyers themselves placed the illusion unto their own heads while the sellers’ hands are clean and have not done a single thing.

By: MJ

The race is not over with the model of the car. Insurance companies also take into account a lot of data such as your driving record and your place of residence when computing your auto insurance premium. Besides that, age, gender, credit history, and miles driven per year are also taken into account.

To break it down even simpler, if you really wish to have cheaper auto insurance, go for those less flashy vehicles. Boring old Sedans , slow vehicles, and vehicles that don’t have a lot of extra parts that could be damaged in a crash often have lower insurance fees.

By: MJ

For small pick-ups, a Dodge Dakota Quad Cab was deemed to have the cheapest insurance offer while a Mazda B plus 4WD led the other unfortunate extreme.

Honda and Mitsubishi battled it out with Honda emerging the winner as having the cheapest insurance in the Small Four-door category. Honda Civic emerged with the cheapest while Mitsubishi’s Lancer Evolution 4WD emerged the most expensive.

A Subaru Outback 4WD had the cheapest insurance in the Midsize Four-door category while a Nissan Maxima led the other end.

Finally, for the big guns, Land Rover LR3 dominated the cheapest insurance for Large Luxury SUVs while Porsche Cayenne dominated the other end.

By: MJ

In the small sports car category, Pontiac Solstice lead the car having the least expensive insurances while Honda’s S200 lead the other end of the stick.

In the midsize Luxury SUV, there was no doubt that Volvo XC90 and Cadillac SRX lead the two extremes with the first one having the cheapest insurance.

Small SUVs had Jeep Wrangler LWB 2-door leading the cheapest insurance for cars while Mitsubishi’s Outlander headed the other direction.

BMW dominated both extremes for midsize luxury automobiles. The BMW 3 Series Wagon lead the cheaper end while BMW M3 lead the other end, the most expensive one.

Trust must be the basis of your relationship with your insurance company. You should be confident that the care and respect that your agent and the company are giving you are genuine. The time will come when you should start looking for a new auto insurance company if:
• Whenever you call the insurance company to get to the claim department, you always get the dial tone.
• When you try to call your agent, the number is already disconnected.
• The cop laughed when you hand him over your insurance information.
• The check you received when you claim is postdated…for next year.
• You notice that they always tell you “We do not cover that.”

by: Djai Tanji

First is you need Quotes from more than three insurance agents or companies when getting an insurance for your sports car. Some companies may have a different perspective of what a sports car is from other companies. Also, you will need every significant information about your car like the condition of it, anti-lock brakes, automatic seat belts, etc. because that can lower your premium. Do not give wrong information about your car and always be honest with the insurance agent or company. Before purchasing the car, ask the dealer if your car is classified as a sports car. Ask also other sports car owner about their experience in getting insurance.