Many of us would like to know whether it is necessary to have auto insurance for a used car. Since the state has laws which clearly specifies that every driver need to have some kind of auto insurance and the value of the car has nothing to do with it. So you need to have auto insurance, even if your car is used. A typical auto insurance policy provides the customers with different type of coverage. A lot of flexibility can be gained through the amount of coverage chosen by you. You need to purchase liability insurance as it is made compulsory by the law. Through the liability insurance you can get financial assistance if you get involved in an accident which causes bodily injury to some person or a property. A minimum amount for such type of coverage is fixed by the state. This type of law ensures that every person who is driving should be able to pay the victim if an accident occurs. But if you just purchase an auto insurance based on the minimum coverage then you can never compensate for the actual damages due to the accidents through the coverage money, as the minimum amount is ridiculously low. So it important to have coverage more than the minimum amount set by the law.
Purchasing medical coverage and uninsured motorist coverage are mandatory in some states and in other states it is optional. The medical coverage will take care of the medical expenses incurred by the policy holder on the account of an accident. Uninsured motorist coverage takes care of the damages that are caused to you by a person who does have any insurance or does not have enough coverage to compensate you. An insurance agent will be the right person to judge you if inclusion of these coverage in your auto insurance policy is not mandatory in your state. Based on your budget and requirement you can get this coverage for your used car.
The collision and comprehensive coverage takes care of the physical damage that is caused to your used car due to collision or other reasons. If your used car gets stolen then you can receive compensation through this coverage. If the value of your used car is less than thousand dollars then it is not feasible to include this coverage into your auto insurance scheme as the rate of deductibles and premiums will not make it a profitable proposition.
By: David Hunter
Posts Tagged ‘Accidents’
Back Up Your Used Car With Auto Insurance
January 24th, 2010Car Insurance Tips – Compare Rates
January 18th, 2010
What Can Affect Your Rate?
It doesn’t matter what type of insurance you plan to attain, your going to have to consider the many factors that can affect your rate. A large factor that determines your rate is your location. Some locations file more claims than others, and insurance companies are well aware of this. This rule applies to any type of insurance, including car, health, or even pets!
Another factor is your personal claim history. This is a huge factor and many people are affected by it. For example, someone who has a few accidents on their driving record, recent or not, will usually have a much harder time finding a good rate on their car insurance. If they are at a large risk they may have a hard time finding a company to insure them at all! People looking to lower their car insurance rates have many options available to them. Car insurance companies like to see individuals who have graduated from some type of driving school. They also like to see the purchase of a safe car, with airbags, seat belts, and anti-theft devices.
Always Compare Insurance Rates!
The best thing you can do that can affect your insurance rate to choose your insurance company wisely. Not all companies are created equal, and some are much more expensive than others. Each company has it’s own system of determining risk factors and therefore your overall price. Companies also have different packages to choose from, with different levels of coverage. Be sure to let your insurance company know what needs you require to find out which plan works best for you and your situation. Shopping around for rates is by far the best way you can get the best rate, so get out there and take notes so you can jot down the pros and cons of each company. Only then will you be able to make the best decision for you and your needs.
An easy way to compare insurance companies is online. Major insurance companies usually have a website that give you free online quotes. It can be as simple as entering in your name, your social, and a few personal questions. Usually you will get an estimate immediately. Eventually you will get a call from a qualified agent who has reviewed your information and can give you a more exact estimate. This is a great way to compare rates. You don’t need to travel, you can compare rates in your underwear and insurance companies will be competing for your business. You can’t be that!
By: Timothy Croy
Car Insurance Rates For Teenagers
January 12th, 2010
Do you have a teenager that is getting ready to be of legal age to drive? Are you worried about how you are going to pay for the insurance that you will need for your teen driver? There are ways to get discounts for your teen driver and there are things that you should expect when it comes to car insurance rates for teenagers. Here are some tips to help you out.
Sure, it is true that your teen could cause your insurance rates to double, maybe even triple. This all has to do with the fact that there are more than triple the amount of accidents that involve someone under the age of 20 than involve someone that is over 20. This is why our insurance rates go down at 25. We have matured and we are now able to be safer on the roads.
Teenagers are just learning how to drive and too often we make mistakes and learn the hard way. When I was a teenager I was involved in 5 different accidents and two more before I turned 25. Now I have not been in a single one since I turned 25 and I have notices that I drive much safer and I am always watching out for the other guy.
You can get discounts for your teens by sending them to drivers school or drivers education classes. If the pass the classes and get their certificate, this can save you between 10% and 20% each year on your policy.
There is also a discount offered for good students, which are those with a “B” average or better. This is worth another 20% for your teen and your policy.
You can also get even lower rates if your driving record is clean and your teens driving record stays clean. Now you should not panic when they get their first speeding ticket or other infraction because it will probably happen. The first one is a bit of a freebie though because they can use the deferral program and as long as they do not get another ticket for a year it will be wiped off their record.
Car insurance rates for teenagers are very high and you should explain to your teenage driver why that is. By telling them about the dangers that they face you might just be able to put something in the back of their mind that will keep them safer on the roads.
By: Benjamin Robert Ehinger