Being under insured can be very dangerous ,but, having too much insurance can be a costly error as well. Without insurance, your property is at risk, if an accident happens and your not covered you might lose everything. The minimum amount of insurance required by your state is often not enough to cover the major expenses involved in replacing a vehicle. This is especially true if you own an exotic or luxury vehicle.
State laws might require that a drive only have liability coverage as low as $15,000 per person, $30,000 per accident, and $5000 property damage. At least half of the 50 states require coverage minimums of at least $25,000 per person and $50,000 per accident. The other half require at least $10,000 in property damage coverage. If you can afford it always buy more than the minimum coverage. If you hit a $30,000 BMW, $10,000 dollars of coverage is only going to get you sued.
The more valuable assets and property you have, the more insurance you are going to need. Most insurance companies recommend minimum liability coverage of at least $100,000 per person, $300,000 per accident, and $50,000 in property damage. This is especially important if you have assets to protect, such as a house or expensive car. Most insurance companies recommend a $1 million "personal liability umbrella" policy issued in conjunction with a homeowner's policy. Allstate reported that this type of coverage cost an average of $270 a year, but the amount varies depending on your location and other geological factors. An "umbrella" policy will protect your family from a financial disaster in the event of a major lawsuit.
Just like buying a car, there is no one ultimate solution when it comes to buying insurance. Rates vary widely from company to company. Surveys suggest that you should pay anywhere from $400 to $2700 annually for the same coverage but from different companies. Shop for insurance by consulting two or three of the largest insurers, such as State Farm and Allstate. Then, contact one or two independent agents who can quote premiums from more than one company. In addition, there are direct-marketing companies, such as GEICO and Progressive, which do business over the phone rather than through agents. They also offer some of the lowest rates. Always ask for an itemized list of coverages you plan to purchase. Make sure there are no hidden costs or exclusions.
"We have the best rates available," said spokeswoman Kerry Perry of Allstate, whose rates dropped somewhat during 2011. But with so many factors involved in setting rates, it's still alway best to get several quotes before making a decision.
In 2010, the average price of auto insurance in the United States was $1001, according to the Insurance Information Institute. They expect the cost of auto insurance rates to rise by 3.5 percent in 2011, which would be a small increase in comparison to the last six years.
Don't forget the Internet. Many companies now offer online quotes, and insurance shopping on the Web allows you to compare rates from multiple providers in the comfort of your own home. In fact there are several offers available on this blog. Take advantage of those
Monday, May 23, 2011
Personal History Can Also Affect Rates
Some of the factors that you can least control might have the most affect on your insurance premiums. Your age, gender, credit score, and driving record are the primary elements that affect your rates.
A single males under the age of 25 will pay a highest rate than anyone else. Statistics show they are involved in the more accidents than any other group, so insurance companies charge younger men higher premiums than women of the same age. Married men, tend to have fewer accidents, therefore they pay less for their rates than single men do. Some states don't allow rate increases based on sex or age, but this prohibition has resulted in higher rates for women and done nothing to lower rates for men.
If you are convicted of a moving violations or found to be at fault in an accident, your premiums will likely go up, no matter what your age. Drivers with clean records, no tickets or accidents will pay the lowest rates.
Where you live can also determine a lot about how much you might pay. Urban areas, which have the greatest population density and heavy traffic, get higher rates than rural areas. According to the Insurance Information Institute, the average insurance expenditure in mainly urban New Jersey, this is traditionally the most expensive state. In 2002 it was more than double that of North Dakota, which is a rural state and has the lowest average premiums of anywhere else in the United State. There are higher costs in states such as Florida, Massachusetts, and New York which are attributed to growth, theft, and insurance fraud.
In most states insurance rates are determined by zip code. If you live in a major city like Atlanta or Miami, you will probably pay more than if you lived in outside of these areas.
A single males under the age of 25 will pay a highest rate than anyone else. Statistics show they are involved in the more accidents than any other group, so insurance companies charge younger men higher premiums than women of the same age. Married men, tend to have fewer accidents, therefore they pay less for their rates than single men do. Some states don't allow rate increases based on sex or age, but this prohibition has resulted in higher rates for women and done nothing to lower rates for men.
If you are convicted of a moving violations or found to be at fault in an accident, your premiums will likely go up, no matter what your age. Drivers with clean records, no tickets or accidents will pay the lowest rates.
Where you live can also determine a lot about how much you might pay. Urban areas, which have the greatest population density and heavy traffic, get higher rates than rural areas. According to the Insurance Information Institute, the average insurance expenditure in mainly urban New Jersey, this is traditionally the most expensive state. In 2002 it was more than double that of North Dakota, which is a rural state and has the lowest average premiums of anywhere else in the United State. There are higher costs in states such as Florida, Massachusetts, and New York which are attributed to growth, theft, and insurance fraud.
In most states insurance rates are determined by zip code. If you live in a major city like Atlanta or Miami, you will probably pay more than if you lived in outside of these areas.
Vehicle Affects Insurance Rates
You have always wanted to own a Ferrari, one of the fastest sports cars in the world. However, what you pay to drive that sports car or fancy SUV that you have always dreamed of might not be worth the rates. Your insurance company may charge you a higher rate to protect you while driving it.
Insurance premiums are based primarily on the cost of the vehicle, which affects the replacement cost if the car is damaged, stolen, or "totaled" in an accident. The more exotic the vehicle is the more it cost to repair -- including parts and labor -- which can also affect the coverage rates. In addition, surcharges may apply to vehicles that are frequently stolen or involved in accidents based off of national statistics.
Industry-wide information available on injury claims, collision repair costs, and theft rates by vehicle model is available from the Highway Loss Data Institute (HLDI). You can write them at 1005 North Glebe Road, Arlington, VA 22201. HLDI is affiliated with the Insurance Institute for Highway Safety (IIHS). This is not a government organization.
According to HLDI, the lowest injury claims are from large vehicles -- cars, pickup trucks, and sport-utility vehicles. Small 2- and 4-door cars have the highest injury claims. Small cars also are among the highest in collision costs, along with sports cars.
If you have your heart set on a certain vehicle, it's very important that you consider the cost of coverage before making a purchase. Insuring a high-performance vehicle can easily cost two or three times the insurance amount of an ordinary family model.
Sport-utility vehicles, are not as expensive as they used to be, the economy has cost the price to fall. Therefore insurance rates for mid and full-size cars is less expensive but some SUV models are relatively cheap to insure. SUVs are good for other reasons as well. Such as high safety ratings. However, they are among the most frequently stolen vehicles, and they used to be more expensive than most cars. Cadillac's Escalade is currently the most popular model sought by thieves, but it's followed by the Nissan Maxima, which cares a rather high insurance rate. SUVs also costly to fix, especially if the 4-wheel-drive system is damaged in an accident.
However, insurance companies set rates based on their own terms and experience. If Company A has more collision and theft claims for a particular vehicle than Company B, then A might charge more for the same coverage. It all comes down to what a company's actual experience with a certain vehicle or type of driver. That is why it pays to shop around for insurance.
Know Your Coverage
Know what kind of coverage your money buying from your car insurance company? Although you may be buying a single insurance policy to cover a specific vehicle, a number of components determine the final cost:
Bodily Injury Liability: Covers injury and death claims against you in the event you are sued because of an accident. It covers legal expenses and legal if your car injures or kills someone.
Property damage liability: Covers claims for property that may have been damaged in an accident. Because liability coverage protects the other party, it is required in all but three states.
Medical payments: Pays for injuries to occupants of your car and yourself in the event they are necessary. This is optional in most states. In "no-fault" states, personal injury protection replaces this type of basic coverage.
Uninsured motorist protection: Covers injuries caused to you and/or the occupants of your car if your hit by uninsured motorist or a hit-and-run driver. "Under-insured motorist" coverage is also available. This is designed to cover claims you make against a driver who is inadequately covered. In some states, statistics show that as many as 30 percent of U.S. drivers are uninsured.
Collision coverage: Covers damage to your vehicle up to its current book value. Collision coverage carries a deductible, which is the amount per claim you would have to pay before the insurance covers the rest. The lower the deductible, the higher the premium. The extra expense is usually worth it. While it's legally optional, a lending institution or leasing company always requires collision coverage.
Comprehensive (Physical Damages): Covers damage to your vehicle that is the the result of theft, fire, wind, vandalism, flood, and/or other non-collision related causes. Comprehensive also carries a hefty deductible.
Bodily Injury Liability: Covers injury and death claims against you in the event you are sued because of an accident. It covers legal expenses and legal if your car injures or kills someone.
Property damage liability: Covers claims for property that may have been damaged in an accident. Because liability coverage protects the other party, it is required in all but three states.
Medical payments: Pays for injuries to occupants of your car and yourself in the event they are necessary. This is optional in most states. In "no-fault" states, personal injury protection replaces this type of basic coverage.
Uninsured motorist protection: Covers injuries caused to you and/or the occupants of your car if your hit by uninsured motorist or a hit-and-run driver. "Under-insured motorist" coverage is also available. This is designed to cover claims you make against a driver who is inadequately covered. In some states, statistics show that as many as 30 percent of U.S. drivers are uninsured.
Collision coverage: Covers damage to your vehicle up to its current book value. Collision coverage carries a deductible, which is the amount per claim you would have to pay before the insurance covers the rest. The lower the deductible, the higher the premium. The extra expense is usually worth it. While it's legally optional, a lending institution or leasing company always requires collision coverage.
Comprehensive (Physical Damages): Covers damage to your vehicle that is the the result of theft, fire, wind, vandalism, flood, and/or other non-collision related causes. Comprehensive also carries a hefty deductible.
Saturday, May 21, 2011
Finding Quality Car Insurance
Today's car insurance rates can be astronomically high, depending on who you shop with. There are also other factors to consider like your age, sex, credit score, vehicle, and other factors that affect these rates. Some car insurance companies offer very cheap rates. These companies are usually smaller and lesser known, offering low down payments. While you can save money using one of the companies for car insurance, this could be your biggest mistake. These companies often leave you stranded in your time of need. They sell you enough insurance to keep you legally on the road. Then when you have an accident, you find out your car insurance wasn't enough to cover the damages. Then what do you do? You've already lost your vehicle, the insurance cover you have doesn't cover a rental, and the bills don't stop just because you've had problems. This is why you need to be prepared. Your car insurance policy is one thing you should never take lightly. People can predict the weather, but, they can't tell you when you'llbe in an accident. You think it could never happen to you. You hear stories about how it happened to one of your coworkers. Not me you say, never could this happen to me. Believe me, that coworker thought the same thing. Now he's asking himself why he didn't do more to prepare.
That's why I'm here to help you my friend. To help you find the best car insurance for your situation. There are several tips and bits of advice that I will post on here to teach you how to find the best car insurance rates available. I'll even list a few of the most popular and dependable car insurance companies here in the United States. Then we'll review the companies that you should stay away from when looking for quality coverage as well. First I'll start off by giving you a few tips about saving money on your premium.
* Maintain a good credit score
* Be a safe driver, no tickets
* Maintain continuous coverage
* Take a drivers safety course
* Join an auto club (AAA).
* Search for deals. Never go with your first quote.
* Be patient. It takes time to find the right coverage.
Next I would like to review a few of the recommended companies for instant car insurance quotes.
Allstate
Allstate has been around for almost 100 years. They are one of the leading automobile, motorcycle, and home insurance companies in the world. They have several different coverage options and offer loyalty programs for their customers. They even have accident forgiveness coverage. However, unless you have excellent credit this companies rates are a little high for the coverage. Allstate is one of my top choices but you may want to try some of the other companies listed on here first. Get an instant car insurance quote at www.AllState.com, where your always in good hands.
That's why I'm here to help you my friend. To help you find the best car insurance for your situation. There are several tips and bits of advice that I will post on here to teach you how to find the best car insurance rates available. I'll even list a few of the most popular and dependable car insurance companies here in the United States. Then we'll review the companies that you should stay away from when looking for quality coverage as well. First I'll start off by giving you a few tips about saving money on your premium.
* Maintain a good credit score
* Be a safe driver, no tickets
* Maintain continuous coverage
* Take a drivers safety course
* Join an auto club (AAA).
* Search for deals. Never go with your first quote.
* Be patient. It takes time to find the right coverage.
Next I would like to review a few of the recommended companies for instant car insurance quotes.
Allstate
Allstate has been around for almost 100 years. They are one of the leading automobile, motorcycle, and home insurance companies in the world. They have several different coverage options and offer loyalty programs for their customers. They even have accident forgiveness coverage. However, unless you have excellent credit this companies rates are a little high for the coverage. Allstate is one of my top choices but you may want to try some of the other companies listed on here first. Get an instant car insurance quote at www.AllState.com, where your always in good hands.
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