How much is car insurance?

ONE TRIED AND true way to reduce your auto insurance premium is to hike the deductible on your collision coverage and skimp on your liability coverage. Sometimes this can make sense, but often it's not worth the extra risk. In this section we'll explain several of the coverages you're likely to be offered as you shop for insurance (some are mandatory). Then we'll help you figure out how much to carry of each type.

How much is car insurance?

Your car insurance is a collection of different strategies that you encounter in different ways. Here's how they break down:

• Liability Insurance - These policies contribute to cover liabilities and expenses when you are struggling to accident insurance. The money is for the people you go to hit, but it is not for the people in your car.

• Bodily Injury Liability (BIL) - This policy covers medical expenses of those injured in an accident in which you are wrong. You will often see the BIL policy described as "20/50" policy or "100/300" policy. These figures describe the maximum amount of money the policy for a single person, the maximum for all injuries and injuries by paying all occupants of other cars. For example, a policy 20/50 up to $ 20,000 for a single person will pay for injuries, and up to $ 50,000 total for injuries by everyone in the car you hit.

• damage liability - This policy pays for damage to another car if you are to blame for the accident. Responsibility of property plus BIL is sometimes called the third number, so that the liability package covers 20/50/10 to $ 10,000 for injury to the other car.

How Much Is Homeowners Insurance?

Think about a good homeowners insurance for your home, but do not know how to best proceed? There are a lot of elements that help to account, you will come to a close estimate of how much to pay for homeowners insurance you will need. While some of these items are easy to control, others are usually beyond your control. Knowledge of the factors that will help your home insurance premium you in ways to make the best bargain.

How To Get The Best Homeowners Insurance Rates

Cheap contents insurance policies cover loss or damage resulting from all hazards including many common terms. Yes, thieves have been known to a house, everything you need to replace at his own expense and many families do not have that kind of money is readily available empty. In legal terms, the coverage of all related legal fees, which includes your or to locate a family member. The fastest and easiest way to compare prices at various companies for house and content insurance is through the use of the Internet. Fortunately, there are a lot of different ways, such as your home and not all of them cost extravagant sums to protect. It is up to people who are responsible for your Hoa to determine how much insurance is required for your environment.

How To Lose Your Car Insurance - Late Payments, Fraud, & More

If you have received an auto insurance cancellation letter or non-renewal notice, your insurance company is notifying you that they will not be renewing your auto insurance policy on its scheduled renewal date. Non-Renewal is the insurance company's way of canceling your auto insurance. Here are some of the reasons for auto insurance cancellation:

• Too many tickets, accidents, or violation in a given period.
• A driver in your household who is not listed on your policy
• Company finds a material misrepresentation on your application that was provided to get auto insurance coverage.
• Company has decided not to provide coverage to your county or state.
• Suspension or revocation of your driver's licenses

KEEP IN MIND: Whatever the reason for your insurance being canceled, you will be without auto insurance unless you secure another auto insurance policy by your non-renewal date.

Gap Insurance For My Car

If you are leasing or financing your car, you will want to consider getting gap insurance. Appropriately named, this coverage fills in the gap between what you owe on the loan/lease and the actual cash value in the event an accident results in the total loss of the vehicle. Some insurance companies offer gap insurance at no extra cost, meaning it is built into the coverage on your policy. Other carriers will charge a small amount to include this coverage.

Car Insurance For Leased Or Financed Car

If  you have recently acquired a leased or financed car, you may have read in your agreement that you are required to carry car insurance. This requirement is the finance or leasing company's way of insuring their collateral: the leased or financed car.

What To Know About Car Insurance Agents Before You Buy

Most people start their search for car insurance by going online to their favorite search engine and getting quotes for a basic policy. While online car insurance companies offer easy, affordable, and adequate coverage there are times where you will have questions. If you need to know things like what liability coverage will work for you, or what discounts are available, or how to get help when involved in a car accident then you may want to consider talking with a car insurance agent.

TIP: You may decide that you don't need an agent, however, it is a good idea to explore what one can do for you before choosing your car insurance policy.

How Insurance Companies Calculate Your Car Insurance Rate

When car insurance companies set car insurance rates they tend to favor customers who, statistically, are likely to be good risks while charging high risk customers higher premiums. A good risk to an auto insurance company is someone who is not likely to get into a car accident or otherwise file a claim to recover under their auto insurance policy. In order to build a customer base, auto insurance companies decide how much you should pay based on where you fit such risk factors as driving record, age, sex, number of miles driven per year, type of car, and more.

TIP: When comparing auto insurance rates, it is good to understand what factors affect your premium. By knowing how your auto insurance rates are calculated, you can find ways to lower your payments.

Basic Types Of Auto Insurance Coverage

Understanding the type of coverage available in your auto insurance policy will help you to understand what to do'after a car accident. The main parts of your car insurance policy are:

Comprehensive and collision insurance coverage
Liability coverage
Medical payments (in some states this is called PIP- Personal injury protection)
Standard Types of Auto Insurance Coverage in Every Policy
Before purchasing an auto insurance policy, you will be asked to identify how much coverage you want across the main types. Your choices will influence how much your premium payments are, so you need to understand what each type of coverage offers you:

Comprehensive coverage covers anything that is not collision related. Fires, theft, windshield breakage, hitting an animal (such as a deer) are all examples of items that would be covered under this type of coverage.
Collision coverage on the other hand, gives you coverage if you collide with something, such as another car.

TIP: Both comprehensive and collision coverage section of the policy usually require you to select a deductible paymentamount that you will need to pay should anything happen to your car.

Liability section of your auto insurance pays for the cost of anything that you are liable for as a result of causing the accident. This could be the damage to another person's vehicle, fence, or the bodily injury (medical payments) of another individual. KEEP IN MIND: Your liability section does have limits which will determine the highest amount your insurance company will pay in the event of an accident. Most states have set state minimums - meaning you can't buy limits below this amount. Check your policy for these limits.
Medical payments (or PIP as it is called in some states) pay for injury or medical payments incurred in your auto accident. This is not a medical policy, but is very basic coverage for you and your passenger should any injury incur while in your vehicle. In some states, this coverage will pay medical expenses regardless of fault, so check with your insurance company regarding the particular of your state.
Commercial Auto Coverage

If you are conducting a business of any kind with your auto (driver for hire, transporting, using your vehicle say in a catering business or sales) you may consider commercial auto insurance. Commercial Auto Insurance or a Business Auto Policy is usually written with higher limits due to the higher risk. Make sure you explain fully the business you are conducting and all the information concerning how your automobile will be used in this business. This allows your insurance company to underwrite the risk properly which will give you the best coverage possible for your business.

Many insurers now provide free commercial auto liability quotes on-line or provide information for the nearest agent when pricing policies for large business or complicated scenarios where on-line quotes don't work well.
Gap Insurance


You should also consider Gap Insurance, particularly if you are leasing or financing your car. Gap Insurance covers you in the event you find yourself upside down on a vehicle loan. If your car is considered a total loss in an accident, the insurance company will pay you the actually cash value (ACV) of the vehicle.If this amount is less than your loan payoff, then you will still owe money for the car, even though it has been destroyed in an accident. Gap insurance solves this problem by paying the difference between what you owe and what the car is worth. Before you purchase a car insurance policy, ask your carrier about this coverage. It could save you from making a payment on a car you no longer can drive.

Umbrella Coverage

If you have high assets or at a point in life where you're making a very good income, you may consider purchasing an umbrella policy or a personal liability policy. A bad accident could exhaust your liability limit on your auto policy. At this point, you are on the hook for anything that your insurance company refuses to pay. Usually purchased with a minimum limit of a million dollars, this policy increases the limits by a million dollars above your present auto liability limits. In the unfortunate event of a bad accident where you exhaust your limits under your liability coverage, your umbrella policy will then kick in, paying above those underlying auto limits up to one million dollars.

TIP: For as little as sometimes $200, this policy can give you the extra million dollars in coverage that you could be liable for in a bad accident. In addition to providing extended liability coverage, umbrella policies also add additional types of coverage such as libel or slander.

How much auto insurance coverage you need is up to you, so take some time to evaluate your coverage needs before finalizing your auto insurance policy.

What Is Car Insurance And Why Should I Buy It?

Car insurance is protection against damage to you, your car, another person, or another car in the event of an accident. Before you purchase a policy you should know how your car insurance protects you, and what types of coverage are available so you can decide what level of protection you want out of your policy.

What Does Car Insurance Cover? 

Car insurance policies differ based on your insurance provider, and the type of coverage that you'd like to have. All policies have some form of liability insurance, and will include collision & comprehensive insurance coverage if you want.

INSURANCE GUIDES

Car Insurance Advice
If you are a driver or owner of a car, motorbike, lorry or any other type of motor vehicle, you must be insured by law.

In order to drive a motor vehicle you require a valid driving licence. The paper part of the licence runs until you are 70 years of age. The photo card part of the licence is subject to renewal every 10 years. If you fail to renew the photo card part of the licence, you are still entitled to drive but you may be committing an offence and may face a fine of up to £1,000

10 Steps to Buying Auto Insurance

How to Find the Right Coverage at the Right Price


When it comes to auto insurance, you want to be adequately covered if you get in an accident, but you don't want to pay more than you have to. Unfortunately many people are doing just that, simply because they don't want to spend time shopping for car insurance. It's not inherently enjoyable, after all, despite how it looks in commercials featuring disgruntled cavemen and joke-cracking spokespeople.

But by doing some comparison shopping, you could save hundreds of dollars a year. When one of our editors used a rate-comparison service, he got basic coverage quotes for his two old cars that ranged from $1,006 to $1,807 — a difference of $801 a year. If you're paying thousands to your current insurance company because you have a couple tickets, an accident or an out-of-date and unfavorable credit rating, shopping your policy against others might be well worth the effort. Look at it this way: You can convert the money you save into buying something you've wanted or needed for a long time.

Filing auto insurance claims

Car insurance is a product you buy, but hope never to need.


Sad but true: When you really need it, the company you've paid to protect you can become your adversary.

While it's the insurer's job to restore you financially, that doesn't mean they have to go along with your assessment of what that means. Be prepared to prove your losses.

Maximize auto insurance savings

Lots of car insurance discounts are available, but you have to ask for them.

You can't change many of your risk factors. But you can save money by taking advantage of discounts that insurers offer for behavior that lowers your risk - from driving less than the average number of miles per year to taking a defensive driving class. Certain types of people - senior citizens, for instance - also are eligible for lower rates. You'll also save if you have certain safety or protective equipment installed in your car, like anti-lock brakes or a security system. Make sure you ask about these discounts. Your agent may not tell you about them.

Auto insurance: Picking an insurer

Find broad auto coverage without burning a hole in your pocket.


Towing and labor only pays if you can't drive your car away from an accident. Members of auto clubs with such privileges don't need this coverage.
Rental insurance costs only a few dollars per year, certainly a worthwhile expense if you travel and rent cars frequently. But spare the expense if you don't rent cars often and can depend on another car in a pinch.
Glass breakage coverage can add up to 20 percent to your comprehensive premium. When it's not built into the premium, avoid it.
Cast a wide net.

First, check what's out there. Get quotes from at least four carriers. Try a free database such as InsWeb.

Understand car insurance coverage

Some auto insurance provisions are crucial, others are desirable, still others are just unnecessary.

Cover your assets and your family first.

Most states require bodily-injury liability insurance to cover medical treatment, rehabilitation and funeral costs incurred by your own passengers, other drivers, their passengers and even injured pedestrians. Other costs covered include lawyers' fees and non-monetary losses related to pain and suffering.

State minimum-coverage limits are too low to protect the assets of most motorists. Unless your income and assets are minimal, buy at least $100,000 per person, $300,000 per accident.

Why car insurance costs so much

Auto insurers will not only judge you on your record, but on the records of people like you.


Your 16-year-old son has passed his driver's education course, and scraped together enough cash for his own car. You take a deep breath and give your blessing, until your agent tells you the rather large amount that will be added to your car insurance premium ... just to insure a lousy used sports car.

Why can insurance sometimes cost as much as the car? Why are insurers so tough on kids, or Corvettes?

A quick guide to car insurance

These car insurance tips will show you how to understand your auto coverage and pick an insurer.


1. You're a statistic.

To an insurer, you're not a person, you're a set of risks. An insurer bases its premium (or its decision to insure you at all) on your "risk factors," including some things that may seem unrelated to driving a car, including your occupation, who you are and how you live.