Types of insurance policies and cheap car insurance

Types of insurance policies and cheap car insurance

Looking for cheap car insurance can sure take a lot of time and make you believe that it's hard to get. Well, this can be true if you're looking for a cheap variation of an expensive policy type. That's right, there are different types of insurance policies available on the market, and depending on which of them you choose the cost of insurance will vary among different amounts of money. That's why it is crucial to understand the main concepts of basic types of policies and the differences between them if you really want to get adequate and cheap car insurance. Here's a short description of each basic policy type:

Third-party liability

The most stripped down car insurance policy type features only the essential coverage type you need to legally drive a car in most states. This coverage will pay out only in case of an accident that you've caused, and will cover injuries and damage inflicted to the other party. It is the cheapest policy available on the market as this type of policy is stripped of any additional options.

Third party, fire and theft

This policy type extends the range of situations when it covers you. Except the usual third party liability, it also features fire and theft coverage to address some of the most common perils a car may be subjected to besides collision. For any drivers that have either financed their purchase on their own or have paid out their loan this type usually costs a little more but is the most suitable.

Fully comprehensive

If you're looking for a policy that has it all, this is it. Fully comprehensive policies usually include the entire spectrum of coverage options an insurer is ready to provide you with, and doesn't require you to be at fault in the accident. Naturally, this policy type will rarely grant you cheap car insurance, since it's the most expensive you will find. And at the same time, it's the most common policy type in the USA because lending institutions make it a requirement when giving out an auto loan. Still, you might want to shop around to see if there are more affordable offers on the market.

Specialized

Special car types require special policies that cater to the need of their owners. Such is the case of retro, customized or unique vehicles. These policies are usually expensive due to their limited nature and include various requirements that aren't featured in any other policy types.

Getting auto insurance that is cheap following an accident

Getting auto insurance that is cheap following an accident

If you've had an accident, you might be worried that you will never again be able to get the best deals on cheap auto insurance. However, there are several factors that can come into play in order to save you money.

Whether or not your premium increases after an accident, and how much it does so, is related to different facts about the accident and your auto insurance policy. Increases go up depending on factors such as how severe the accident was, what degree the incident was caused by you, how much the claim is (by either party), the type of violation and whether or not any tickets were given, and whether or not the accident appears on reports viewable by insurance companies. Your premium is raised by around $300, on average, if you have an accident.

Many auto insurance companies offer accident forgiveness policies, although sometimes this comes at an extra cost. This option typically kicks in if you are found at fault for a minor incident. Some companies offer a one-time pass if you get into an accident, but this is not the norm. Although if you do not have this option it will not help you once you've already gotten into an accident, it is a preventative measure you can take to help save you money in the future.

There are still other ways to decrease your car insurance premium after an accident. If your credit score or history is less than stellar, improving it can often save you money. The type of car you drive can also be a factor: safer cars and cheaper cars are often less expensive to insure. The area you live in can cost you as well. Areas with a dense population, a lot of traffic, or higher crime rates will cost more. You can upgrade your current vehicle with the latest safety and security measures in order to get a discount. And lastly, there are some other great ways to save money on your auto insurance premium including having a car model that isn't frequently stolen, switching insurers and parking in covered parking.

Hints to get cheap auto insurance next time

Although getting into an accident will likely raise your premium somewhat, is isn't out of your control! Preventative measures and reducing the risk in other areas of your life will save you money. Then, developing a history of safe driving after the accident will work in your favor to lower your rates in the future.

The tragedy of teen drivers' death rates and how insurers are encouraging safe driving

The tragedy of teen drivers' death rates and how insurers are encouraging safe driving

The Insurance Institute for Highway Safety is a the bearer of bad news when it shows statistic with teenagers behind the wheel. Collecting all the available information from the auto insurance industry, law enforcement, hospitals and clinics it has all the tragic statistics. Thus it reports that, between 2006 and 2010, some 18,000 teen drivers died on our roads. That's three times the death rate for drivers aged 20 and over. There's also a pattern with the most deaths in Mississippi, Montana and Wyoming, and the lowest death rates in Massachusetts, New Jersey and New York. It seems teens drive fast on the open roads, and have less chance to speed in the northern cities. It's a tragedy that the combination of inexperience and natural recklessness, can have such a terrible effect. When you add in all the distractions new mobile technology brings, we should be grateful manufacturers have been improving safety design. The new crumple zones absorb the energy of impacts. There are stronger cages to protect the passengers. Nevertheless, tens of thousands of our young are seriously injured.

Some insurers are trying to encourage young drivers to take their own safety more seriously. There are a number of peer programs to pass on self-defense driving tactics, there are safe-driver videos online, and competitions with cash prizes to build interest. States have also been changing over to a graduated driver licensing system but the results are not consistent. The real problem is there are no real deterrents to teens getting behind the wheel. If they are not earning, either their parents pay the higher premiums or they drive uninsured. No matter if they get the cheapest car insurance rates or the full-price ones, they drive the same. Worse, the penalties they face if they are caught breaking the law are not considered serious. Indeed, some teens seem to think collecting tickets is part of the rite of passage, that they are not proper teens unless they have been caught speeding. There's a real need for a major rethink on the right to drive. Denying teens (or their parents) the cheapest car insurance is not the answer. There need to be penalties with teeth.

Getting the cheapest car insurance for your new car

Getting the cheapest car insurance for your new car

When you go out and buy a new car, chances are you will finance it. Not too many people walk up to the dealership and pay cash for the car. When you finance, part of your contract with the bank or the finance company is to keep a minimum amount of car insurance. They generally stipulate that you have to buy comprehensive coverage in addition to your liability coverage. While you get online and search for the best car insurance in terms of price, and compare quotes and specific coverage's, you probably aren't thinking about depreciation.

Depreciation is when the value of a good declines over time from its original price. Cars are notorious for quick depreciation. Part of that is because cars are a production commodity. As quickly as a model hits the factory line, a new and improved one is in the prototyping phase of production, and still another is being worked out on the computer. Technology for communications and entertainment as well as materials used for safety equipment and fuel efficiency are making new strides in innovations that customers want to see in their new car. Therefore, last year's model left on the parking lot loses value, and the one you drove away and used loses value even quicker. The fact that you are now moving parts and putting wear and tear on the vehicle just speeds up the loss in value.

Your loan pays the amount down in a linear fashion. You create the loan to be a consistent debt you can pay over time. If you were to graph it, it would be a straight line sloping down. The degree of slope would depend on how many years your financed the car. The depreciation graph would look more like a steep slope that eventually slows down near the middle to end. If you graph the two lines on the same space for a five-year loan, somewhere around year three your loan value will equal then drop below the depreciated value of the car. If you were to get into an accident in the first year or two of the loan, you would cover the loan amount still owed above what the insurance company paid for the depreciated value. To insure against that get a quote on GAP insurance. GAP insurance will mean the cheapest car insurance you have for your new car won't leave you without a car if you are in an accident that totals you auto.

If you are about to buy a new car, take advantage of this advice on insurance savings

If you are about to buy a new car, take advantage of this advice on insurance savings

When you decide to get a new vehicle, you will probably finance it instead off paying in cash at once. And with financing, part of your contract with the bank or the leasing company is to keep a minimum amount of auto insurance. They generally stipulate that you have to buy comprehensive auto insurance coverage in addition to your liability coverage. While you get online and search for the cheapest car insurance, and compare prices and specific coverage's, you probably aren't thinking about depreciation.

Considerations on new cars and ways to get the cheapest car insurance

Depreciation is when the value of a good declines over time from its original price. Cars are notorious for quick depreciation. Part of that is because cars are a production commodity. As quickly as a model hits the factory line, a new and improved one is in the prototyping phase of production, and still another is being worked out on the computer. Technology for communications and entertainment as well as materials used for safety equipment and fuel efficiency are making new strides in innovations that customers want to see in their new car. Therefore, last year's model left on the parking lot loses value, and the one you drove away and used loses value even quicker. The fact that you are now moving parts and putting wear and tear on the vehicle just speeds up the loss in value.

Your loan pays the amount down in a linear fashion. You create the loan to be a consistent debt you can pay over time. If you were to graph it, it would be a straight line sloping down. The degree of slope would depend on how many years your financed the car. The depreciation graph would look more like a steep slope that eventually slows down near the middle to end. If you graph the two lines on the same space for a five-year loan, somewhere around year three your loan value will equal then drop below the depreciated value of the car. If you were to get into an accident in the first year or two of the loan, you would cover the loan amount still owed above what the insurance company paid for the depreciated value. To insure against that get a quote on GAP insurance. GAP insurance will mean the cheapest car insurance you have for your new car won't leave you without a car if you are in an accident that totals you auto.

How Car Rental Companies Determine What to Charge You

How Car Rental Companies Determine What to Charge You

Wondering how car rental companies determine how much you should pay for your rental? Car rental companies follow a formula to determine this. As a customer, it usually is difficult to determine how rental companies come up with their prices but you can always calculate the rates by reading the information below and by applying a bit of mathematics.

You can request the rates for a vehicle you are planning to rent. Usually, car rental places have daily, weekly and monthly rates. The next step is for you to choose the kind of insurance plan for the rental. Most companies provide several types of coverage so you should choose wisely. If your own insurance covers rentals then there is no more need for you to get an insurance plan for your rental.

If you are planning to rent a car for three days, you should get the rates under the daily rate category and multiply that by the number of days - in this case three days. After that, you can add your insurance plan for the rental and multiply that by three as well. When done, add these numbers.

What about tax? This usually depends which state you are in. In California for example, the tax is about 10%. You can now multiply your expected price by 10% or by the sales tax indicated by the state where you are in and then add the result to your expected price. Let's say that your expected price is $50 and the sales tax in the state you are in is 10%, you should multiply the two numbers. ($50 x 0.10 = 5) then add the result to the expected price to get the total price ($50 + 5 = $55).

You should keep in mind that rates can change without you being notified so it is always better to ask your car rental company of choice if their rates have changed. They will gladly tell you about price changes. Doing this will prevent you from getting any surprises.

Car rental companies compute car rental costs basically the same way as the computation notes shown above.

Cheap car insurance: getting the best from the black box

Cheap car insurance: getting the best from the black box

You are the kind of person that does things right the first time. You did your comparison shopping, got your insurance quotes. You have a clean record, and think you are getting the most car insurance discounts possible. However, your still wondering is there anything else I can do to get cheap car insurance. Maybe...are you willing to put your driving to the test?

Technology is allowing insurance companies to add another tool to their arsenal that helps them decide if you are a good driver or not. Your driving record may be spotless, but not flawless. Just because you have no tickets, no points, and have been accident free for a number of years, you still may exhibit risky driving patterns. Or, you may be as safe a driver as you think you are.

Most new models (over 80 %) have black boxes already installed at the factory. Moreover, the US senate passed a mandate for cars built in 2015 to have a data recorder that monitors at least 15 different variables leading up to a crash. You can check your owner's manual to find out if you car is equipped with an EDR (event data recorder). EDR's record you speed at the accident, how long it took safety equipment to engage--like airbags to deploy, how the brakes were applied and more. This data belongs to the owner of the car. They can only access the data after an accident and if you give them access or they own the car. If your car is totaled and the insurance company pays you, your insurance company owns the data and can analyze it.

However, if you want the chance to get the best safe driver discount you can opt to have the insurance company add an additional black box to your vehicle, which will sends them data about your driving habits in real time. It will record your momentum around curves, driving speeds, breaking distance, application of the brakes, average distance verses speed and more. IT does not record your GPS. While some of the advertisements say your premiums will not go up if you employ an insurance company black box, that generally is limited to the current contract. At renewal time, if your driving proved to be more risky than you thought, you will see a premium increase. However if your driving is truly safe then a black box is a great way to get cheap car insurance.