Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy.

Auto insurance provides property, liability and medical coverage:
* Property coverage pays for damage to or theft of your car.
* Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
* Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

How is your auto insurance policy price determined?

The average auto insurance policy price  is derived from a variety  of factors.

Many of these variables are common knowledge and make sense for the most part.

It’s always a good idea to refresh yourself with what insurance companies are looking for when determining how your coverage will cost.

* Driving Record
* Coverage Amount
* Age
* Vehicle Model and Driving Mileage
* Your Residence

What auto insurance coverage?

What types of auto insurance coverage to choose from?

* Liability: coverage is the primary-and usually mandatory-part of the auto insurance equation. Liability means what the word implies: it saves your bank balance when you’re liable for destroying someone else’s car or body parts.

* Collision: which is not to be confused with liability. Liability pays the bills for damage you  cause to the other party; collision covers damage done to your own car. If someone else totals it, his liability pays for repairs (assuming he doesn’t hit and run), so if you can follow the aforementioned tip of not crashing, you generally shouldn’t need collision. In simplified terms, buying collision insurance  can be thought of paying someone to save from yourself. The safer you drive, the less necessary it becomes.

*Uninsured/underinsured motorist coverage, required by most states, is always a good idea knowing that 17% of drivers out here don’t have any insurance, and a lot of the rest probably skimp by on the sometimes-in adequate state minimums. This usually varies in tandem with the body injury part of liability. Don’t sweat it too much, as the premium is a mere fraction of liability.

* Personal Injury Protection(PIP) or Medical Payments (MedPay) provides reimbursement for medical bills of you and tour passengers regardless of who’s at fault, and for resulting lost wages. This is an option-one that those with good health insurance plans might not want to exercise.

*Rental reimbursement simply pays for the cost of renting a car. Even is it costs $30 a year, why brother? $30 basically buys a one-day car rental, so it’s hardly worth it unless you get stranded a lot.  (In which case, you might want to switch cars). If you own a second car, this is completely unnecessary. The  same reasoning applies to towing insurance and the like.

* GAP insurance, which covers the difference between what the car is actually worth and what you owe. . This might be an attractive proposition for a car that with heavy depreciation, which is a symptom suffered by young cars in general. A $20,000 car might drop to $12,000 in market value after a year. If you total the car at that point, $12,000 is all you’ll get from your insurance company, yet you’re still obligated to the $16000 in payments that still remains. Obviously, $4,000 is one gap you’ll want closed.

Can you raise or lower your auto insurance rate?

There are 10 factors that can raise or lower auto insurance rates

* Your Age

Generally younger drivers are considered to be  high risk and so the insurance rates are higher.

*The make of your car
Most insurance companies tabulate auto insurance rates based on the make of the vehicle. Compact cars and sedans have lower rates while sports models, exotic cars, and SUVs are assigned high rates of premium.

* General is a factor too
Females get lower rates of auto insurance while males pay higher auto insurance premiums.

*Financial stability
Auto owners with great credit scores and credit reports generally pay lower premium than those with bad credit scores and reports.

*Driving records have a say in premiums payable
If a driver has a clean driving record for three consecutive years then auto insurance providers will happily extend policies with lower premiums.

*Where you stay
Those who live in the city pay more than individuals who live in the country or suburbs. Areas with lower crime rates and less congestion attract lower auto insurance premium rates.

*How many insurance policies you hold
If you approach for auto insurance the same insurance company that has you covered for live, health, hone and so on then you would automatically be eligible for great discounts on premiums payable for an auto insurance policy.

* The condition of the car will be considered before offering a policy
The make, how old  the vehicle is , its maintenance, and so on. A car in prime condition will get better premium rates than a rattletrap.

*The distance traveled per year
If you restrict the number of miles traveled then you will be able to get auto insurance at lower rates. To do this you need to walk, use public transport, and car pool.

*Whether or not you are eco-friendly
If you care for the environment and drive a non polluting vehicle then the auto insurance premiums will be lower.

Why do you need international vehicle insurance?

If you live in a foreign country  for an extended period it is important to ensure that your vehicle is properly insured at all times. International vehicle insurance is specially designed to meet the needs of:

* Diplomats.
* Expatriates.
* Humanitarian organizations.
* International businesses.
* International charities.
* International schools.
* Religious orders.
* United Nations agencies.

International Vehicle Insurance should include cover for:

* Accidental damage, fire and theft risks.
* Protection against windscreen breakage and for fitted accessories such as audio equipment.
* Additional protection against riot, civil commotion, hijacking and armed robbery.
* Hurricanes, earthquakes and flooding.
* Payment of the purchase price for a seriously damaged or stolen car that is less than 12 months old (on Non-commercial Policies only).
*Immediate cover anywhere in the world (except the USA and Canada).
* Multiple vehicle and fleet discounts.

Additional policy benefits may include:
*Mature driver and limited driver discounts.
* No Claims discount available
* Fast and efficient claims services including immediate authorization for essential and minor repairs.
* Payment of claim settlement direct to a personal bank account and in the currency of choice.

How do you lower my auto insurance rates?

Since  there are many factors that go into determining your auto insurance rates, there are many chance to lower your rates.

*If you change jobs and your drive to work changes or you stop working or you work from home, you should contact your insurance company.
* If you have a teen driver and they go to school over 100 miles away without a car then you should be able to get a discount.
*If you get married and are in your teens or twenties call your insurance company and see about combining your policies.
*See if increasing your comprehensive and collision deductibles will save you a lot of money.
* You need to compare what you’re saving and how much more you will have to pay if you file a claim.

Can your age be a problem into  auto insurance?

In auto insurance know as the age factor.

Your age can be a big problem in auto insurance. It could also be a great advantage. Whichever group you fall into, there’s a way for you to make the most remarkable savings in auto insurance premium.

*If you’re above fifty-five thank your stars. You’ve entered the hallowed zone in auto insurance. If you don’t get pampered by an auto insurance provider now, you ever will. This is because you belong to an age group that has a high reputation of road safety.

*If you’re under -25, you’re considered a very high risk as far as auto insurance is concerned. Yes, if you’re in your early twenties you’ll be better off than a teenager. However, you still are a high risk group. There are several options open to you.

-You can get married if you are old enough and it makes sense in your circumstance. I’m not kidding here. Marriage does reduce the perception of risk auto insurance providers have of you.

-Another thing you can do as an under -25 is to be on your parent’s auto insurance policy.

Why is Women’s auto Insurance So Much Cheaper Than Men’s?

Statistically, women drivers are the safest on roads, and therefore are rewarded with cheaper premiums for car insurance. Women on wheels combines these discounts with supreme cover, that automatically includes a free replacement car (on comprehensive), free abroad travel, and free legal cover!

About the author:
By Adel Khamis Hassan.
Adel Khamis Helping You To Know Every Thing About Insurance.

Article source: http://article-dashboard.com

By Alisdair Cosgrove

There are a number of terms that are used in auto insurance policies that do not show up in common conversation. These are words that are defined and used specifically within the auto insurance business. If you would like to better informed when it comes to your auto insurance, it may be beneficial to have a grasp of some essential terms you will see.

Before explaining the terms, it is important to remember a few basic facts about car insurance. First, if you don’t have auto insurance you, as the driver, are not protected any way if there is an accident. If you do not have insurance protection it is possible that you may be held entirely responsible for repayment on injuries or damages. This is especially true if you were at a fault for the accident. On the other hand, if the bills, those of your passengers, as well as repairs or replacement of your automobile. These consequences underscore the need for auto insurance coverage. This fact, of course, explains why most states make some level of auto insurance coverage mandatory.

There are really only five basic terms you might want to understand when reading a policy or discussing it with an agent. Those terms are liability coverage, physical damage coverage, medical coverage, emergency assistance coverage, and unattached equipment coverage.

Of course, for many of you, the first three terms are familiar. They are used more commonplace when talking about auto insurance an general. The latter two are less familiar. Liability, medical, and physical damage coverage are considered more recognizable to car owners who know a little abut insurance or have discussed it in brief. Meanwhile, emergency assistance and unattached equipment coverage are mentioned less frequently and remain more obscure to the average insurance policyholder. They are not typically considered as important as other types of coverage. Still, they do offer some great advantages if added to your policy.

Perhaps the most common term that you will see and hear is liability coverage. Essentially, this is the part of an insurance policy that covers damages caused by you during an accident.  As a rule, liability coverage should prove adequate coverage for any possible damages.  If you don’t have enough of this coverage you may have to pay out of pocket expenses to the person who was the victim in the accident. Physical damage insurance is simply that coverage you used to pay for repairs or a to replace a damaged vehicle. Of course, medical coverage is meant to cover not only you but passengers as well by paying for medical expenses.

The final two terms are a bit different. With emergency assistance coverage you would be getting a form of roadside assistance benefits. One emergency assistance coverage is added to your policy, you can feel safer knowing that you can make use of towing and other services when your vehicle has a problem. Unattached equipment coverage deals with those aspect of your vehicle that may have been added later, after purchase that are not  permanent parts of the automobile. They may be expensive additions like fancy lighting, customizations, or sound systems; all may be eligible for protection under this last form of coverage.

Once  you know what these auto insurance terms are all about, you will be better equipped to deal with insurance matters. You will then be able to determine if a policy will do the job you want it to.

About the Author
Alisdair Cosgrove is an expert in the field of the field of auto insurance and has been writing articles on the web for many years and can find more of his work at the insurance site www.Peppercoin.com.

Article source: http://article-dashboard.com

Cheap car insurance may not be as difficult to get as you might think. No, we are not talking about reduced coverage to bring down the car insurance premium rates here. By taking care of some points as given below and by bringing them up either with your insurance agent or your insurance company, you can quite easily land insurance.

It is always good to remember the basic logic about insurance-more risk means more premium rates. This means you can achieve insurance by reducing risk of theft, damage or accident to your car. Typically you also get reductions when you buy something in bulk. Let us see what exactly can be done for cheap car insurance.

First is to make your car safe. Don’t hesitate to install an anti-theft system in your car. It helps to protect your car plus brigs down premium. You could go for anti skid tyres so that risk of skidding in rainy weather comes down. Give your car for regular service and keep it in tip-top order. This keeps the risk of repairs and accidents low and in turn makes way for insurance of cheap car. Taking defensive driving lessons and getting certified also can bring down premium substantially. This is because you become a safe driver on the roads.

Let us say you are planning to lock up your car and not take it out on the roads for a longish period. Why would you need specific coverage in such a scenario? Just go in for a comprehensive coverage as your car is unlikely to have an accident when in storage. This gets you insurance for cheap car in that time frame. Take out annual insurance rather than half yearly because almost all insurance companies show lower premium for annual plans. Not only that when you go for annual plans, even if there is an increase in rates in the interim it will not affect you for a longer period. When you have many cars you are lucky in more than one way. Multiple car insurance equals insurance for cheap car. Getting all your cars or your family cars insured under a multiple car insurance plan slashes rates beyond what you might expect. You could also go in for group insurance so that all those in the group can get insurance for cheap car.

Is your credit rating good? If so you naturally get offers for for cheap car insurance. If not you can try to bring it to par before expecting reduced premium costs. Some times even opting for a particular mode of payment can bring down car insurance costs for you. This includes asking your insurance company to deduct premium dues directly from your card or from your bank account.

Whether you are buying fresh car insurance or looking to lower existing premium costs find out how your insurance company handles the points we saw till now. You could then decide which gives you cheap car insurance while ensure great coverage.

About the Author
By Arondenzel. A good credit rating automatically gives cheap car insurance. The insurance company has a lower risk in doing business with you when your credit rating is high  and so will quote lower rates for you. For more information please visit our website http://www.usinsuranceonline.com/auto-insurance/articles/cheap-car-insurance.php

Article source: http://article-dashboard.com