Why do you Need Auto Insurance?

As tempting as it may be to ditch out on or postpone purchasing auto insurance, you’d better think twice before doing so. In most states it’s required by law to always have insurance on the vehicle you drive or you’d better be able to provide proof you’ve got enough money to repair any damages if you’re in an accident. You’ll soon realize the benefits of paying a monthly fee to insure your vehicle will help you sleep better at night knowing you’re covered.

You may be an excellent driver and think I’ll never cause an accident. While your driving record may reflect your thinking, you cannot assume you’ll never cause an accident. There aren’t enough good drivers on the road to make up for all of the bad drivers. Although your intentions are good to assume you won’t be the cause of an accident, there’s always the possibility of causing an accident while trying to avoid another bad driver. If you swerve to avoid an unexpected object in the road or as a result from getting cut off and subsequently hit someone, you could be found at fault. Those types of circumstances are unpredictable and are reasons why you should never be without the safety of auto insurance.

More unpredictable situations include weather-related accidents. As much as you avoid driving in rainy or snowy conditions, there are times when you must. Roads become very slippery during rain and snow storms and despite careful maneuvering, you could still slip, spin, or slide into an object or another vehicle.

There’s also the possibility of being hit by an uninsured driver. Obviously you have the choice to sue the driver to get the monies needed to repair your vehicle and be compensated for any medical expenses or future medical expenses, but this will take time and money out of your pocket until you receive payment. Usually drivers are uninsured because they can’t afford insurance. If they can’t afford insurance, how will they afford to pay you for any damages? Obtaining uninsured motorist liability will get you coverage you need for this situation.

What if you’re on the other end of that story, and you’re the uninsured driver at fault for the accident? You could be the one getting sued to pay for damages you’ve incurred on another driver. You could be the one financially responsible for medical bills of another party. If you had auto insurance at this time, you wouldn’t have to pay for these expenses out of your own pocket.

Although illegal, hit-and-run accidents occur more frequently that you would think. If this were to happen to you, you would be stuck with the cost of repairing your vehicle. Any medical expenses you incur may be paid through your health insurance if you have it, but it would be more beneficial to have your auto insurance cover any medical expenses your health insurance doesn’t pay for. For example if your health insurance only covers 80% of the cost, and you’re responsible for 20%, a specific coverage on your auto insurance policy may be able to cover that amount. You may be tempted to forego fixing your vehicle to save money, but minor damage can lead to more damage such as rust issues and major damage can leave parts of your car lying on the road as you drive home.

The next time you’re on the road, take a good look around at the cars you pass. How much do you think those cars are worth? If you or a member of your family were responsible for wrecking one of those cars, how much would you have to pay, or be sued to pay, for repairs on that car? What if you were required to replace the car entirely because it was totaled?

Carrying adequate auto insurance takes the “what-ifs” out of your driving life. You no longer need to worry so much about what would happen to you financially if you were the victim of an accident or the person at-fault (again, despite your driving record). Going with an auto insurance company that you can rely on will provide peace of mind. There are many auto insurance companies to choose from, and you’re invited to shop around. Research the kinds of policies that are available to you and any family members you may add to your policy.

After you’ve done your research and know what coverages you want, get quotes from local companies. Ask each company what policies they offer, how much they are, minimum coverage amounts, what they recommend, and what their most popular coverages are. Review each company’s offers and carefully decide what you purchase. Keep in mind the state’s requirements may not be sufficient enough to financially protect you in an accident. Some state requirements are $15,000, which is not enough to replace most new cars on the road today.

The total cost of your policy may initially seem like more money than what you wanted to pay for auto insurance. You have the option to break this cost into more manageable monthly payments, which is sometimes easier to work into a budget. Here, it is important to remind yourself that the cost of your policy could be substantially cheaper than literally paying for the consequences of an accident.

Why do you need auto insurance? You need it to cover the times when you’ve tried to avoid an accident but just weren’t able to. You need it to cover the times you hit black ice and spin out, hitting the median. You need it to make sure you’re not going to have to pay for someone else’s mistake when they don’t have insurance, as well as you paying for your own mistake because you didn’t have insurance. You need auto insurance because it’s the law and you will be fined and possibly arrested if you do not carry it.

Shopping for Auto Insurance what Should you be Looking for?

You’ve seen the ads for different auto insurance companies, ranging from catchy tunes to talking animals. As creative as their approaches are, it’s more important to know how they handle claims and what is offered to each driver. In comparing auto insurance companies, some of these questions come to mind: is another company better than my current auto insurer? Are they cheaper? Do they offer more or better coverage options?

With so many companies willing, able, and almost begging to insure drivers, it’s easy to find an insurer to take you in, unless your driving history is shameful. A simple search on the Internet or in your phone book can give you prospects, as well as asking co-workers, extended family, or neighbors who they currently use, who they’ve used in the past and their experiences. Know what kind of protection you want in your policy as you do your research. If you’re unsure what to get, again ask people you trust what coverages they have and think about different accident situations you or any member on your policy could face.

Make a spreadsheet or list and site pros and cons for each company you research. Go online to their Websites or call each company and ask questions about available coverages and costs to include in your spreadsheet. You will most likely get a better, more thorough answer to your question if you call. Many companies will send you a free quote via email after you’ve given them information such as age, address, desired coverage, and accident and ticket history on their Website. Once your comparison is complete, you’ll be able to make an informed decision that is best for you.

While everyone wants to be happy with their auto insurer, everyone requires different terms to be met. Not all drivers are looking for the cheapest insurance, but to some drivers cost of the policy is the most important factor in choosing an insurer. Some are looking for additional coverage because their teen is now of driving age. Others are looking for friendlier representatives that are willing to go above and beyond to help. These are only some of the specifications policyholders want realized as they shop around for auto insurance. What are yours?

No one wants to pay more than somebody else for the same product, hence the obsession with finding the lowest rates. This is what drives the majority of auto insurance company comparisons. Lowest rates are almost always given to the best rated drivers who have the safest driving records. The older you are, the longer you’ve been driving, time between accidents or issued traffic tickets, the number of accidents or traffic tickets, the make, model and year of the vehicle you drive; these are all things that affect your rate. You can help your rate stay low by driving a non-sports vehicle that’s a few years old, and do your best to avoid traffic tickets and accidents. Don’t waste your time trying to speak with different representatives from the same company in attempt to lower the price. Each company has a set price and cannot lower it, according to the state.

Many auto insurers offer discounts for certain drivers. There are discounts available for teens who keep a certain grade point average, showing that a smart student can be a safer driver. Safety devices, such as an alarm or tracking device (low-jack) used in your car can provide a discount, as well as where your car is stored when it’s not in use. Paying for your policy in full instead of making monthly payments, or using automatic bill pay may lower your price. Meeting a safe driver “criteria” can reduce your policy price as well by checking how many traffic tickets and accidents you’ve had. Check with the companies to see what discounts are offered.

Choosing a company that has a Website will give you access to your policy any day, any time. This will allow you get estimates if you make changes to your policy, pay your bill, or make a claim online. You can also view the other coverages they offer that may be of worth to you. This convenience can alleviate some of the stress that comes from dealing with an auto insurance company, like getting placed on hold while you’re waiting for a representative to answer your questions.

Each state has a Department of Insurance. Most states publish a complaint ratio of all auto insurance companies within the state. This number is based on every 1,000 claims made. If your state doesn’t have this ratio, one idea would be to check another state’s and see what the ratios are for auto insurance companies that are also in your state.

A great company has great customer service. How are you treated by the company as a prospective (or current) customer? If a certain company was recommended to you by someone, how was that person treated by the insurer? Don’t be afraid to ask the representative questions about the coverage or the company, be it 10 questions or 100. You need to know the details before you start paying the company to insure you. You should always be treated with fairness and respect when speaking with any representative of the insurance company. They should know that you bring business to the company and as such you are a member of their team.

There are benefits to sticking with one company for a lengthy amount of time. Some auto insurance companies provide accident forgiveness for keeping a clean record over a certain period of time while you’re insured with them. Other companies may keep your rates low because you’ve been a loyal customer with a great driving record. Find out what companies offer this status by asking if there is any benefit to staying with them.

After you’ve asked your questions and have thoroughly done your research, you will be ready to make an informed decision. Make sure you meet as many of your requirements as possible so you don’t regret your decision later. Worst case scenario would be you aren’t satisfied with the company you choose, and you can always switch when your policy expires.

How do I use my Auto Insurance?

Now that you’ve chosen and purchased your auto insurance policy, you may be wondering how to use it. Hopefully, you will never need to use it, but considering the number of cell-phone-using, make-up-applying, texting, children-managing and new drivers there are on the road these days, chances are, you’ll be using it. Until then, be grateful you’re covered and continue paying for your policy.

Using your auto insurance is really only necessary when damage has been done to your vehicle. This can happen while your vehicle is moving or stationary and usually involves another moving or stationary vehicle or object. After the collision occurs and injuries are assessed and cared for, a traffic officer will request a few items. Along with your driver’s license and registration, you will need to provide your proof of auto insurance. Usually this is a card that is sent to you by your auto insurance company, stating that they agree to insure you for a marked period of time. In many states, failure to provide proof of insurance results in expensive consequences. To be safe, always carry this card in your glove compartment or other safe place within your vehicle.

Following the accident, it may be a good time to get any witness statements and their names and phone numbers for future reference for your auto insurance company and the police report. If you have any passengers that are physically able to gather this information for you, consider having them do so while you fill out the police report. It is also wise to call your auto insurance company and let them know all the information as well: the other driver’s name, license number, and their auto insurance company name, policy number, and the name of the policyholder. Your insurance company may request additional information and should provide friendly help to you during this stressful moment. With all that is going on, you may find it helpful to ask your auto insurance representative to remind you of the details of your policy and your options. Within a few days, both your insurer and the other driver’s insurer will receive a copy of the police report and fault will be decided.

Each auto insurance company may require you to do different things during the process of repairing your vehicle. If you are not at-fault for the accident, the other driver’s auto insurance should be financially responsible for your vehicle’s repairs. This can sometimes be frustrating as you are now at their mercy as far as timing goes and you may need to speak with them regularly to make sure your repairs are paid for. They may send you a check after an estimate is completed by one of their agents, or they may deal directly with one of their approved body shops.

If you are at-fault and are found financially responsible for the accident, the other driver involved was at-fault and not insured, or you were the only driver involved in the accident (collision with a pole or building), you will be required to “use” your auto insurance. Once your representative gets the initial information regarding the accident, there’s a possibility they will wait to receive the police report before instructing you on where to take your vehicle for repair. Be patient with their requests as they are doing things according to the company’s protocol.

Depending on your auto insurance company, it may be days or weeks before you can have your car repaired. After paying your deductible, either you’ll be told where to take your car or you’ll be permitted to choose your body shop. Some insurance companies will pay for a rental car if you need one during the time it takes to repair your vehicle, but often it’s only percentage of the total cost or an “up-to” amount.

As frustrating as these times can be, it’s a good idea to remember the importance of carrying auto insurance. You still may be required to pay for expenses (i.e. your deductible), but it will be comparably less than the cost of paying for the expenses without insurance.

If you have not experienced this before, place yourself in this situation and ask some questions: Would I be covered if an uninsured motorist damaged my vehicle? What would I be financially responsible for if I hit another person’s vehicle or a pedestrian? How would my medical bills get paid if I were injured in an accident that was my fault? How would they get paid if the accident were the other driver’s fault? What if I had to take a few weeks off from work or take a leave of absence? How would my bills get paid? If someone was killed due to an accident I caused, what would be covered and what would I have to pay for? These are the kinds of questions you want to ask and know the answers to before any accident occurs. If you discover any of your questions are not covered in your policy, it’s time to call your insurer and find out your options.

There are coverages offered to you to carry on your policy that are sometimes not required by the state but could help lower your final repair cost if in an accident. Comprehension and collision will protect you from theft or damage done to your car, in most cases when it was your fault. If you do not have health insurance, medical payment coverage can pay for any medical injuries as a result of an automobile accident. No-fault insurance (not available in all states) is a coverage that will cover accident-related expenses despite who was at-fault in an accident. Personal injury protection will also cover accident-related expense and is available in all states and required by some.

Everyone needs some form of insurance against damage done to their own vehicle or from damaging another person’s property/vehicle in order to be permitted to drive. Unfortunately it’s very unrealistic to think that you’ll never need auto insurance, and when you do need it, you’ll be comforted to know that everything is already in place for your benefit.

Five Important Auto Insurance Myths Exposed

(NC)-When it comes to auto insurance, many Canadians are not sure what's fact or fiction. To help you better understand auto insurance, RBC Insurance® debunks the top five auto insurance myths.


1. The colour of my car affects my insurance premium.

Many factors determine premiums including your vehicle's year, make, model, body type and engine size. The colour of your vehicle is not one of them.


2. If I use my car for work and have an accident, my employer's insurance will cover it.

Your employer may reimburse you for mileage, but your own insurance provides coverage in case of an accident. If you use your vehicle for work, you should be advising your agent or broker of this business use.


3. Parking tickets increase insurance premiums.

Parking tickets do not affect insurance premiums. But a license suspension from unpaid fines can affect your driving record, resulting in higher insurance premiums.


4. If my friend borrows my car and has an accident, their insurance will pay for damages.

If you lend your car, you lend your insurance. Any claims will be made under your policy, even if you were not involved in the accident.


5. Auto insurance companies can charge what they want.

Auto insurance is subject to significant regulatory requirements. Insurance companies must submit their automobile insurance rates to government agencies for approval.

Time to Review Your Auto Insurance Policy

As you work your way through tax season, it might also be a good idea to re-evaluate your auto insurance policy.

"The beginning of the year is a great time to get your financial house in order," says Wade Bontrager, vice president of Marketing for GMAC Insurance. "While you're already looking at your finances, it's easy to get out that auto insurance policy and make sure you're getting everything you can from it."

Bontrager says it is also worthwhile to review your policy when it comes time to renew. "While 43 percent of drivers report comparison-shopping when looking for an auto insurance policy, 33 percent of drivers don't even think about it -; they simply renew their existing policy and leave it at that."

Bontrager advises Americans to review their auto insurance policies when:

- Your insurance company has new offerings. Your insurance company might have introduced new, beneficial services. So, take advantage of them.

- You drive less. If high gas prices have lowered your annual driving mileage, some companies now offer a substantial low-mileage discount, such as the Low-Mileage Discount launched in 2008 by GMAC Insurance in collaboration with OnStar.

- You could save money. Make sure your coverage is at a sufficient level to protect your assets, but also research any discounts that you may qualify for, such as a multi-vehicle discount that saves you money when you insure more than one vehicle with the same company.

- You have a specialized vehicle. If you have a specialized vehicle, whether it's an RV or a commercial vehicle, a standard auto insurance policy will not provide the coverage you really need. Check with your auto insurer to see if they offer specialized policies. If not, consider switching to a company that does. If you move all of your auto insurance policies to one company, you may be eligible for a loyalty discount.

"It's so important that you fully research your policy," adds Bontrager. "For example, our customers are offered a series of concierge-style services, and we want everyone to know the extra value they are receiving free of charge."

Insurance Scam Fraud Protection

If you become a victim of car insurance fraud, you pay. Not only will you pay higher premiums because you may acquire a costly claim, but, as with any car accident, you and your family could pay with your lives. It is important to learn more about fraud protection so you can protect yourself from others who may choose you to be a part of their next car insurance accident fraud scam.

Insurance fraud began when insurance first began. Incidents have been recorded as far back as ancient Greece. Ship scuttling was an insurance scam in ancient Greece where ships were purposely sunk. Later insurance fraud traveled to England then to America. When automobiles were introduced it opened a whole new arena for fraudulent insurance claims. Today, with modern technology, many fraudulent car accident claims do arise from sophisticated organized crime rings that can be hard to detect. Don't let this make you a victim of an insurance scam. Whether the insurance scam is from an organized crime ring or an individual, there are fraud protection steps you can take to help you be more aware and avoid being a scammer’s next victim.

First, it is important to know what types of insurance scams are used. There are many types of car insurance scams. Set-up car accidents can range from vehicles deliberately stopping in front of a driver to cause a rear-end car accident to drivers who pretend they are being helpful but intend to cause a car accident that will look like the innocent drivers fault. Scams can also involve people one would generally trust such as doctors and lawyers.

Educating yourself more about fraud protection against car insurance accident scams is the best way to avoid being someone's next victim. Here is a list of common scams to be aware of:

Staged Rear-End Car Accidents: A scam driver will quickly get in front of an innocent car and then slam on their brakes. This causes the innocent driver to rear-end the scam driver. Along with collecting money for vehicle damages, the scam driver will often fake medical injuries to collect even more.

Adding Damage: After an accident, either staged or not, the scam driver will go to another location and cause extensive damage to their vehicle and claim that the damage happened during the original accident.

Fake Helpers: Scam Helpers will wave an innocent driver into traffic, but then crash into the innocent driver. When it comes time to file the claim, the scam driver will deny waving anyone in. Other ways fake helpers try to scam people is by offering to help an innocent driver find a auto repair shop, doctor, or lawyer. In this case, everyone is in on the scam. The body shop charges you enormous rates, the doctor and lawyer also lie to collect more from your insurance.

Since these scams can happen at any time and place, it is important to be prepared. Awareness is the most important. Watch for drivers who may be following you or examining your driving habits. Also, make sure you leave plenty of room in front of you in order to stop. If an accident does happen, take notes on everything about the other car, the accident, and everybody that was in the other car. Keep a disposable camera in your car to record damage to both vehicles. Furthermore, use your judgment in driving, not others. Make sure you have enough room to get out and just let other cars pass instead of letting others "waive you in." And, when you talk to your insurance company, let them know if you felt something was suspicious.

Should You Shop Around for Auto Insurance

How do you know if what you are paying for your insurance is a good deal? What is a good deal? Is choosing the cheapest company the best way to go? Does buying from the most expensive company mean you are buying the best coverage? Generally, a good deal is a state of mind. As long as you are happy, with the amount of coverage, you have and how much you paid for it, then you got a good deal. For each person, the amount of coverage they need and what they can afford to spend is usually a different amount. You can use our Car Insurance Coverage Calculator to see some options, also we offer a simple quote form that will guide and explain the best coverage packages. We recommend ‘Superior’, but for some customers the ‘Standard’, ‘Basic’, or ‘Minimum Required’ package are better selections.

The main reason driver over pay on their insurance is because they do not shop around. CarInsurance.com offers an easy way to shop around. They compare the pricing of several auto insurance quotes. Knowing how much coverage you need will help you select the right insurance company. This is one of the best ways for consumers to maximize what they get for their insurance premiums.

Insurance is a highly competitive business. There are thousands of insurers offering policies to consumers. Each consumer's goal should be to find a financially solid company that offers a fair price along with superior customer service. How do you know which company can provide such a combination of both good pricing and customer service? One way is to talk to friends, relatives, and business associates. Ask people you know and respect what insurance company they use. Ask if they are pleased with how their company handles claims. Trust a licensed agent like CarInsurance.com because they are licensed in all states by every Insurance Department AND the companies they represent have certified them.

The insurance industry is highly regulated. It is important to do business with a company that is licensed by the state in which you live. Another factor of the strength a company has is its A.M. Best Company rating. You want to be comfortable knowing that in the event of a claim your company will be there for you. A.M. Best Company is the industry leader in providing ratings and financial information for insurance companies. A.M. Best ratings are recognized as the standard by which an insurers' financial strength is measured. CarInsurance.com offers the A.M. Best rating of each company once you complete your quote by simple clicking on the company logo.

How do you know what to expect from your insurance company? Your insurance company and its representatives should be able to answer your questions. They should be able to help you determine what coverage and limits you should carry based on your needs. They should handle any claims fairly, efficiently and quickly. You should feel comfortable with both the insurance company that you select and the insurance agent or company representative that you will be working with. Your insurance professional should take the time to understand your insurance needs and answer all of your questions to your satisfaction.

Another important point is that insurance companies target drivers and situations. They do this so they can specialize in certain types of risks. For example, some companies only have rates for drivers with accidents while another company only has rates for drivers without accidents. Through CarInsurance.com’s platform, we make competitors available to visitors, through the Online Insurance Marketplace™. The best rate last year is not the best rate this year. Each company designs its rates around the drivers they are targeting. Use CarInsurance.com to find your perfect match. You no longer have to go to each company to get a quote; you only need to come to CarInsurance.com for one-stop shopping. You need to shop around for car insurance so you Save Your Time AND Save Your Money!

Car Insurance Discounts

Trying to save money wherever you can is important to us all. Insurance should be no different. Do not assume that your agent knows everything about you and your vehicle. CarInsurance.com goes out of their way to find all the possible discounts that are available to each customer.

Drivers should take advantage of all discounts that many providers offer, that can significantly reduce the cost of car insurance. Understanding discounts and howthey can affect auto insurance premiums can help smart shoppers make better decisions about their coverage and possibly save themselves some money in the process.

Read below to identify possible discounts that could help you save on auto insurance this year. Other than discounts, there may be some otherways for you to save on your insurance premiums. We will go over several discounts that can help with your current situation.

First, there are discounts for Auto Safety features. Certain states will give you discounts for anti-lock breaks. Make sure you know if it is two or four wheel anti-lock break vehicle. Automatic seatbelts and airbags are frequently discounted on your insurance premiums. In most states, a defensive driver class discount may apply.If the principal driver usually 55 years old or older has completed an approved defensive driving class a discount could apply. Keep in mind that most states will only approve this class if it is voluntary meaning that it was not the result of a violation or infraction.

Some insurers will give you a discount for having multiple vehicles. In some cases, this will only apply if you have two or more drivers. If you have a clean driving record, meaning you do not have any tickets, accidents or suspensions in the last three years (some companies require five years) then you could be eligible for a safe driver's discount.

Many companies will reward you with staying with the same insurance company for many years without any accidents reported. They will offer you a renewal discount. It makes sense, you have carried insurance with acompany for several years, and have not had an accident, your insurance company likes you and wants to reward and keep your business. Some companies honor you with a discount if you had prior limits on your previous policy. They discount you because they understand you are a better risk.

Conversely, if you do decided to change insurers a proof of prior insurance discount may apply. Most insurers request at least 6 months of consecutive insurance from the previous insurer. If you are a full-time student who meets certain grade requirements and are unmarried and usually under 25 years of age (some states the age is 21) you could be eligible for a good student discount. If you own a home, including condominium, town home, or mobile home, which is used as a principal residence, a discount could apply. If you are a military personnel either currently active or retired from any branch of the US military a discount could apply. If your vehicle is equipped with an anti-theft device, a discount could apply.

You could lower the cost of your insurance in other ways. For people who own older cars, it may not be necessary or cost-effective to protect them with collision and comprehensive coverage. By comparing the book value of your vehicle and the premium that the insurer has offered, you may find that it cost as much for the insurance as it does for the vehicle. If the car is worth less than $2,000, you will probably spend more insuring it than it is worth. The whole idea of driving an older car is to save money, so why not get what is coming to you.

In addition, keep in mind that the type of vehicle you buy could greatly affect your premium. A flashy red sports car is usually going to cost more to insure than a mid sized sedan. This is also true of vehicles that are on the list of most stolen. There are many ways that policyholders can save on their insurance. Knowing more about auto policies and premiums can help consumers take advantage of less obvious discounts while ensuring that they have the appropriate protection for their vehicles. The last way to save is to assume more risk. If you chose higher deductible on your Personal Injury Protection or Comprehensive and collision coverage will lower your premium as well. The deductible is the amount of money you have to pay before your insurance company begins paying the rest.

Understanding how discounts affect your insurance rates is important to save you money.

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