Posts Tagged ‘Insurance Company’
The law requires liability insurance for all drivers and vehicles. This means that if you are involved in a serious accident, and it turns out that it was your fault, your insurance company will pay out any claims that are made against you. Extra coverage on your own vehicle, called comprehensive insurance, is optional.
Insurance companies based on a number of risk factors will calculate the price you pay for this insurance. Basically how it works is the more they feel you are at risk of crashing, and the more they think the resulting crash will cost them, the higher the premium youll pay.
Assessment
Common factors that will be to assess the premium are the value of the car youre driving, the safety of that vehicle, the coverage you want, will there be deductibles or limits etc.? How much youll drive the car, how your driving record stands, how long you’ve held your license, your age, and if you are young, also your sex.
The premium is then calculated. Usually there is a flat per car, per year rate that everyone pays, regardless of other factors. The other factors will then alter this rate, generally upwards. So if your car is especially fast or dangerous your rate will be increased by a set amount. If it is very old, your rate goes up. If youve had one or more accidents in the past, your rate will go up. If youre young and male, your rate will go up. The more of these factors you satisfy, the more your rate will be going up.
Discounts
As a sales enhancement, many car insurers offer a “low estimated future mileage” discount to customers who predict that the car’s mileage will be below some stated limit during the next premium period. There is no verification involved and no additional charge if the car is subsequently driven more than the stated amount. This arbitrary discount tends to foster customer belief in the mistaken idea that “miles” are just one of many classification factors used to raise or lower prices from the territorial base rate. In fact, odometer miles (which insurers do not use) are not a factor but a metric - the only valid basis for measuring each car’s consumption of insurance protection in on-the-road use.
The best way to save on car insurance is to shop around, keep a good clean driving record, drive safely, and choose reliable cars that are not known for their power and speed.
Car Insurance Online Purchase - Some Benefits Of The Internet
Is it possible to purchase car insurance online? Most folks are used to purchasing their car insurance by leafing through a telephone book and calling local insurance agencies. When you call a local agency they usually request a copy of your current coverage in order to give you an accurate comparison as well as advice . This same process can happen with online quoting as well. The online quoting system will require you to post all pertinent insurance information to give you an accurate quote. You do more of the work but you are better informed when you complete the process.
Car Insurance Information Needed for Online Quoting
1. Expiration Date The expiration date is critical because it proves that your insurance has not expired and that will qualify you for a preferred rate with most companies. If your insurance has expired then you may be underwritten into a substandard carrier and those rates are higher.
2. Driver Information All resident relatives that have a drivers license need to be rated on the policy. You will need to enter the name, date of birth, and drivers license number.
3. Driving Record Accidents and violations need to be disclosed to pre-qualify you for the insurance. This needs to be accurate because insurance companies will find out about your driving record anyway. They check motor vehicle reports from your state as well as your prior carrier.
4. Vehicle Information You will have to list each vehicle on the policy. You will need the vehicle identification number for each vehicle. That number will give the insurance company the pertinent information that it needs to discount the vehicle for air bags, anti-lock brakes and other safety features.
5. Current Coverage Use your declarations page to list all of the coverage that you currently have on all vehicles. This will include liability limits, first party benefits and physical damage limits.
Like many people buying car insurance, you shop around and buy online. Youve found a really good, cost-efficient deal. So when it comes to the final checkout, do you choose to tick Yes or No in that Legal Expenses Cover box? It will add a little more to the total, and its not an absolute requirement, so you may be tempted to leave it out. Not least because its definitely not the most well-known part of insurance! It is, however, something we think you really should consider adding if its not in the policy as standard. And heres an example of why:
Earlier in the year Jake, one of our freelance writers, was involved in a car accident. His Golf Mark I is his pride and joy, and hes spent many happy weekends working on it. So naturally, he wanted total insurance coverage for every eventuality even legal expenses.
This certainly proved to be the right decision after the accident. The car was hit from the rear, so some of the vehicle damage could be fixed. The insurance company worked fast to deal with the claim. Unfortunately, Jake also suffered a broken wrist and some whiplash. If he hadnt taken legal expenses cover, the bill for a solicitor to pursue his compensation claim would have been solely his responsibility. Fortunately, since he had the cover, Jake was able to get his compensation quickly. Working as a freelance writer, Jake doesnt have the safety net of employer sick pay. Lost hours mean lost money. Jake was out of work for a month and a months wages. With legal expenses cover, however, Jake was able to claim for loss of earnings and will receive compensation for them any day now.
The total cost of this peace of mind and earnings security? An extra 2 a month on his premium, surely a worthwhile investment for anyones money!
Fully comprehensive car insurance ensures that your vehicle is well taken care of, but how about the driver? Jakes accident was not his fault, but he had to spend a month off work. Without legal expenses cover, the cost of getting compensation would have fallen to him. With it, he was as well protected as his beloved car, and didnt have to worry about being able to afford to make a claim.
Take another example of a typical accident: you are unharmed, but your car has to wait in the repair shop for two weeks while parts come in. Without replacement car hire as part of your insurance deal, you will have to rely on public transport not the reason you bought your own vehicle! With legal expense cover, you can use a hire car and know that your trouble and inconvenience will be compensated.
All you need to do when you claim on your legal expenses policy is to provide the accident details in the same way you normally would all the paperwork will be taken care of for you. Its possible that you may need to speak to your solicitor, or appear in the stand in the event of the case going to court, but you wont ever have to pay any legal fees.
And the cost is low, sometimes even free. Admiral include it as standard. Most insurers do make a charge, but it averages around 20 a year for example, More Than charge 17.85, and Budget add an extra 24. Consider the legal battles that have resulted from accident claims in the past especially those where serious injuries and claims were involved. Compensation and costs can run into millions. No-one can doubt that in cases like these, legal expenses cover is a worthwhile addition to any policy.
So next time you buy car insurance, make sure your policy includes legal expenses cover. Take it as an extra if its not part of the standard package. Youll barely notice the extra cost, but youll certainly be aware of the benefits if you ever need it.
During the last few years, the average car insurance premium has virtually been at a stand still. The reason is price competition. There are now over 100 car insurance companies fighting for your business and competition is fierce. There are always bargains to be found as companies cut their premiums to attract motorists in the hope you’ll remain loyal and stick with them in following years. Indeed, every year, 23% of us renew our motor insurance with our existing insurer.
But in recent years the Internet has created a revolution in the marketing of car insurance. It makes shopping around so easy without the need to make loads of phone calls and without spending time threading yourself through the automated phone systems beloved by so many call centres.
But you’d be wise to remember that the lowest premium is not always the best. For example, some insurers have recently pushed up the level of claims excess they want you to pay as this helps them provide you with a much lower quote. You should also check out whether a courtesy car is provided if your car is in for repair. You might also feel you want legal insurance cover and automatic windscreen replacement. An accident helpline can also very useful in the middle of an emergency! You’ll need to phone the broker or insurance company you’re thinking of dealing with in order to check out these points.
17 Top Tips
for cheaper car insurance
Get your online quotes through car insurance brokers. Their computer systems will search for the best quotes from 40 or more car insurers and save you lots of time. When you’ve got their cheapest quote, phone them to discuss the relative merits of the cheapest quotes they found.
Garage your car at night. Insurance companies know that a car left on the road at night is much more vulnerable to theft and damage. If you don’t have a garage, if possible keep it on your drive.
Update the estimate of your mileage each year. If you’ve moved home or changed your job you may have shorter commuting journeys. If so, your premiums should be less.
Your premium can be influenced by your job. Landlords, journalists, and professional footballers to name but a few, all pay more! Go for a job that’s a bit more boring! Accountants and civil servants pay less!
Getting married could save money on your car insurance, particularly if you’re male and under 30.
If you’re under 25, add an older experienced driver with a good riving record onto your policy as a named driver. But don’t let him be too old! premiums start rising again after age 60!
Consider paying a higher accident excess. The average excess is about 100. If you are prepared to increase you claims excess, your premium will fall significantly.
If you have cheap or old car, consider buying just 3 rd Party cover. Get quotes for 3 rd Party and comprehensive insurance and weigh up the savings.
Are you aged between 18 and 21? Then consider pay as you go insurance. Norwich Union has recently introduced the first pay as you go insurance policy, which charges you exactly for the miles you drive. It also charges more for the miles you drive between 11 and 6 at night. The system works through a Global Positioning System which is fitted to your car for a one off fee of 199. The GPS black box tells Norwich Union how many miles the car’s been driven and they send you an monthly invoice.
A new driver? Spruce up your driving technique by taking some more driving lessons. New drivers can slash their insurance costs by as much as 35% by taking Pass Plus lessons. These give you extra training for driving in rush hour traffic, motorway driving and night driving. Lessons cost between 15 and 30 per hour. (www.passplus.org.uk). You can also reduce your premium if you’ve taken a course with the Institute of Advanced Motorists (www.iam.org.uk).
Buying a new car? Then check out the insurance group before you buy. Cars fall into one of 20 insurance groups with 1 being the cheapest and 20 the most expensive. If the proposed insurance premium is too high, chose a car that’s in a lower group.
High spec and performance cars attract thieves and are more expensive to repair - so they always cost more to insure. Consider something with a little less voroom!
It’s hard we know, but try hard not to speed! Most insurance companies will ignore one fixed penalty fine but get more and your premium will rise.
Got 4 or more years no claims discount? Pay the extra get the discount protected.
Fit a satellite navigation system. Some insurance companies have noticed that sat nav cuts the accident rate by letting drivers concentrate on the road. Insurers will soon be giving discounts if you have it fitted.
Get a engine immobiliser or alarm fitted. It could save you between 5-8%.
Got more than one car in the home? Some insurers will give a discount for insuring them all in one policy.
Finding the right policy and the cheapest insurance cover can be a tricky process; drivers use the Internet, by telephone, read magazines, watch TV advertisement to get information on savings and offers on car insurance.
Owning and driving a car means taking on many risks to yourself and others. When a traffic accident happens, damage, injuries, loss or all of these factors may be inflicted upon you and others. Damage and loss of your property may also occur. Fire, theft, vandalism and natural disasters are other possible risks.
Car Insurance protects motorists and drivers against liability in the event of accidents they may cause. It can also provide cover for the motorist’s own vehicle.
Many different types of cover are available, ranging from third party cover which protects individuals against liability should they injure a third party or cause damage to a third party’s property, but does not provide any cover for the individual’s own vehicle or property, through to comprehensive cover, which can offer protection for accidental damage, theft, fire damage as well as liability towards third parties. The minimum legal requirement for car insurance to drive in the UK is Third Party Only.
Here are 5 steps to follow to find the cheapest deal:
STEP ONE: EXCESS
Voluntary excess the easiest way to cut your insurance premiums is to accept a higher voluntary excess. An insurer’s standard excess may be 100; but if you meet the first 250 of any claim, you’ll see a reduction in your premium. This is simply because you are more of the risk so you get a discount by your insurance company. This however is a gamble, insurer should be aware that they may have to meet the cost of a broken window after an attempted theft, then a bill for repairing bodywork damage after a car park crunch.
STEP TWO: SECURITY
One way to get cheaper insurance premiums is to fit a security device. Many insurers advise insurers to use Thatcham rated security equipment, usually minimum of an alarm. If you are living in a high-risk which may be known for car crime it would be useful to fit an extra security such as steering lock. This will save you money when your insurance renewal is due and gives you extra peace of mind.
STEP THREE: NAMED DRIVERS
Adding a named driver to your policy can increase or reduce your premiums depending upon the named drivers age, sex and driving record. When adding a young driver will increase your premiums, particularly with a limited or poor driving record. However, adding a driver over 30 years old with a long and clean driving record can cut premiums, particularly if the named driver is a female.
STEP FOUR: ANNUAL MILEAGE
If your annual mileage is, 5,000 miles or less, ask insurers if they offer discounts for agreed mileage restrictions, as some insurance companies do give discounts for restricted mileage. However many insurers won’t offer this option as standard but will agree a discount if you ask.
STEP 5 - SHOP AROUND FOR GOOD RATES
The biggest potential savings come from shopping around. This has been made much easier with the explosion of the internet. There can be massive differences between the lowest and highest car insurance quotes for exactly the same car and driver(s).
Getting car insurance can be quite a difficult task. There are just so many insurance companies out there that are desperate to get your business that choosing between the good deals and the dubious deals can be daunting. But since taking out insurance is such a crucial and important thing to do, you have to wonder if getting the cheapest insurance you can afford would be the best idea.
Because of the fierce competition in the insurance market, premiums have been falling, which is good news for those shopping for car insurance. It is prudent to bear in mind however that price is not the most important part of your car insurance deal!
What you should look to achieve is lower premium payments in order to ease the burden of paying insurance. This can take a great deal of time especially when it comes to comparing the different insurance companies and what they might offer. However there are a number of things you can do to improve your chances of success.
Shop around. Each insurance company offers different setups sometimes differing so drastically that attention to detail is a must. You can ask for quotations from these companies so that you can compare them with regards to the prices and packages they offer. An easier step would be to visit websites that list insurance companies offering affordable insurance packages.
Keep a good clean driving record. If you can show that you are a good driver then insurance companies will consider you a low-risk candidate, and thus will have lower accompanying premium rates
One great way to lower car insurance premiums is by installing a number of additional safety devices or features in your car. Some insurance companies will automatically lower premiums if they see anti-theft devices, automatic seatbelts and airbags.
Creative mathematics can also bring your car premiums down. Ask for higher deductibles on your car insurance policy. By increasing your deductibles you can lower your premiums from between 15 to 20 per cent. Just make sure that you can shoulder the difference!
If you own a second hand car or an old model car, ask to reduce its coverage. A car whose cost is equivalent to less than ten times the premium that you pay for a comprehensive coverage is not a good deal.
You can actually ask for more discounts from insurance companies. A number of discounts can be requested like lower rates if the car has a low annual mileage. There are also companies that grant discounts if you show proof that you have taken a defensive driving course. Passing an advanced driving test can also be used to ask for a discount.
Your profession can actually give you a better deal than you think. Ask around if your particular profession can be considered as a low-risk group. Insurance companies have a list of professions that are grouped between low risk and high risk. Low insurance risk professions are awarded with lower insurance premiums.
Everyone has to agree to an excess of some kind when getting a car insurance policy it’s the way the system works. Basically it means that if you have an accident and your car needs to be repaired, you will have to pay a set amount towards the bill. If the accident is your fault, you lose the money. If the accident is not your fault, the third party insurer reimburses you for the excess payment. If your car is written off, then your insurance company will deduct your excess from the settlement payment.
Things aren’t always that simple however, unfortunately there are a number of drivers on British roads that don’t have any insurance, so the question is, what happens with your claim if you have an accident with an uninsured driver?
The 1988 Road Traffic Act, section 143 clearly states that all drivers on the UK roads must have insurance for the vehicle that they are driving. The point of the insurance is that if you have an accident and it is your fault, you have the means to cover the cost of the damage incurred by way of your insurance policy. It’s a sad fact that a significant minority of drivers choose not to bother with insurance, disregarding UK law and saving themselves hundreds of pounds a year as a consequence. Someone has to pay for these drivers though, and it’s the people that do have insurance that foot the bill!
The Department of Transport estimates that as many as 5% of drivers are not insured on the vehicle which they are driving. Statistics also show that uninsured drivers are more likely to be involved in an accident. It’s a growing trend and is proving very difficult to eradicate.
If you have an accident, you are not at fault, and the third party is not insured, then you will be reimbursed by the Motor Insurers’ Bureau. Who funds them? The car insurance industry! That’s where some of your inflated premiums end up. You will also find that you’ll have to pay the agreed excess yourself, there will be no-one able to refund that for you.
Here’s the low-down on the basics about excess’:
Compulsory Excess this is the amount that the insurance company regards as the minimum amount that you must pay towards the cost of damages . This is agreed at the outset and depends on a few details you’re your age and your driving record. For example, if you are older and have a clean driving record, you could only have to pay a minimum of 50. Those with a more chequered driving history, or those that have not been driving for very long, could feasibly have to agree to pay 500. The average for most drivers is 100 .
Voluntary Excess this is the amount over and above the minimum compulsory’ amount set by the insurer that you are prepared to pay. This is an opportunity to lower your premiums, because if you can agree to a high excess, then the insurance company knows it won’t have to pay out as much if you need to make a claim. It’s one of the few sure fire ways of saving a few pounds on a car insurance policy, but you may not be offered the choice, it depends on individual insurers.
The garage won’t give my repaired car back until I give them a cheque for the excess is this what usually happens?
This is completely normal, and you will have to pay and then get the money back from the third party insurer. Always give the car a good once over to ensure that the repairs have been satisfactorily completed. You also need to keep the receipt to get the excess back from the insurer, and just in case they dispute the charges, get a copy of the repair schedule so the insurer can see exactly what work was completed on your vehicle.
An excess payment is the fixed contribution you must pay each time your car is repaired through your car insurance policy. Normally the payment is made directly to the accident repair garage when you collect the car. If your car is declared to be a write off, your insurance company will deduct the excess agreed on the policy from the settlement payment it makes to you.
If the accident was the other drivers fault, and this is accepted by the third party’s insurer, you’ll be able to reclaim your excess payment from the other person’s insurance company. But what if the other driver is uninsured?
All motorists know that it’s a legal requirement (under Section 143 of the 1988 Road Traffic Act) to have insurance for any damage they cause to third parties. But still many drive without insurance. An estimate of the incidence of uninsured driving in the UK is hard to come by and, for the obvious reasons, those drivers involved in breaking the law have every reason to keep quiet about it.
Calculations from the Department of Transport suggest that in the UK around 5% of vehicles are being driven without valid insurance. This group of people not only impose costs on honest motorists in the form of higher premiums, but their presence on our roads also represents a serious risk to other road users. Consequently, uninsured driving is increasingly being regarded as a major social problem.
But driving without insurance is not a victimless crime. If you have an accident with an uninsured driver and the accident wasn’t your fault, the repair costs will be paid for by the Motor Insurers’ Bureau that’s funded in its entirety by the industry, or by your insurer. Therefore, if you’re involved in an accident caused by an uninsured driver you’ll eventually get you car repaired but you’ll still have to pay the excess and there’ll be no one to reclaim your excess from.
What is a Compulsory Excess?
A compulsory excess is the minimum excess payment your insurer will accept on your insurance policy. Minimum excesses do vary according to your personal details and driving record and by insurance company. Today the average excess is around £100, but younger drivers could be faced with excesses of up to £500 - whilst more mature, experienced drivers with a good driving record, could be offered an excess of just £50.
So what is a Voluntary Excess?
In order to reduce your insurance premium, you may offer to pay a higher excess than the compulsory excess demanded by your insurance company. Your voluntary excess is the extra amount over and above the compulsory excess that you agree to pay in the event of a claim on the policy. As a bigger excess reduces the financial risk carried by your insurer, your insurer I able to offer you a significantly lower premium.
The garage has repaired my car but it won’t release the car too me until I pay the policy excess to them. Is this right?
Yes, that is normal practice. But make sure you inspect the car when you collect it. Satisfy yourself that the repair is perfect. Then make sure you keep their receipt for your excess payment as you will need this if you’re reclaiming against a third party’s insurance. And just in case there’s a dispute, it’s a good idea to make sure the repair garage gives you a repair schedule. This will list all the repairs that were made to you car.
If you are classified as a high-risk driver, finding car insurance can be quite a hassle. Some insurance companies will deny insurance to high-risk drivers, while others just choose to charge extremely high premiums. No matter which insurance company you choose, you will most likely end up with a high rate. However, every insurance company is different, so it is important to shop around for the best rates available.
There are many different factors that can contribute to a high-risk driver classification. However, your driving record is the most important factor in determining your risk status. If you have been involved in several accidents over the course of a year or within two to three years, these incidents will negatively affect your record even if they were not your fault. Being involved in any accident can deem you a reckless driver with a penchant for getting into dangerous situations. Also, if you have received multiple speeding tickets, you are also increasing your risk of getting into car accidents. You may be labeled a high-risk driver just by the number of speeding tickets you have received.
There are also several personal factors that contributed to the high-risk label. Unfortunately, many of these factors are beyond your control. Men are typically deemed a higher risk than women, and those who live in the city are considered higher risk than those who live in the country. If you are a city dweller, you will probably pay higher car insurance premiums than if you live in the suburbs or in a rural area. Also, drivers with newer cars are charged higher premiums than those with older automobiles.
Unfortunately, even your credit history can affect your car insurance rating. Those with low credit ratings are usually charged higher premiums than those with better credit scores. Whether or not you have been covered by car insurance continuously is also a factor. If there are gaps in your coverage, they will assume that you have had periods of uninsured driving. Because driving without insurance is very unsafe and also very illegal, insurance companies take this into consideration when considering your rate.
Though it can take several years of clean driving to erase the high-risk driver label, it can still be done. Three years is the industry standard for reassessing a driver’s safety standing. If you have a clean record for a three-year period, you can work your way back to the benefits of lower premiums. However, three years’ worth of high premiums can really add up over time. If you are a high-risk driver, there are still ways to lower your insurance payments. With a little research, you can reduce your payments by a fair amount.
There are many car insurance companies that offer free quotes online. Rather than meeting with salespeople or playing phone tag with agents, Internet sites will give you a quote in minutes. This makes comparison-shopping easier than ever. There are even websites that will find a list of quotes for you. Sites like Netquote.com allow you to enter all of your information one time rather than repeating the process for every insurance company you investigate. Netquote will generate a list of rates organized in an easy to read fashion. This process may take a few days, but the results are typically worth it.
Working toward a clean driving record is the best way to ensure that you will get the best car insurance rates. Avoid congested areas whenever possible, and be sure to slow down in reduced speed zones. Be aware of your surroundings and never speed, and you will be on your way to a successful reduction in your rates.