Auto Insurance Law » Car Insurance

Gap Car Insurance Protects Your Auto Financing Investment

admin — Mon, 28 Jun 2010 16:41:58 +0000

What is Car Gap Insurance For?

If you have purchased a new or used car with a loan, you probably owe more than the book value of the car for the first several months you pay on your loan. If you did not put down a large down payment or if you rolled over a loan from your old car, you may owe quite a bit more than your car’s value. You are probably willing to accept this fact because you are really just making car payments, have a car you like, and know that you will get the car paid off in time. But the fact is, most cars lose 20% of their value the minute you drive them off of the car lot.

If you buy a $20,000 car, the actual value of that car may drop to $16,000 very quickly. You have just taken the 20% hit. However, accidents happen. If you have an accident, or your car is stolen, you may be asked to settle for the book value. That means, you still owe $4,000 more on a car you cannot use!

Car Gap Insurance closes the gap between a car’s value and your loan. You normal car insurance will still pay off the car’s value. The auto gap insurance policy will make up the difference. Now some comprehensive auto policies may pay the financed value, but most do not. Be sure to look at your policy or ask your agent to make sure.

Where do you Buy Car Gap Insurance?

When you buy a car, your dealer will offer you a car gap insurance policy. He or she may even offer to roll the price into your loan. However they will charge you a premium price. Some people choose to purchase auto gap insurance this way because it is simple, or because they don’t realize they even have an option!

However, you do have a choice. You do not need to pay $700 or $800 for car gap insurance from a car dealership. You can buy the same policy online, directly from the insurance company. Online car gap insurance policies ill cost less than half as much as car gap insurance from the dealer. You could pay $399 instead of $700 to $800!

Your other choice is to find a comprehensive car insurance policy that will cover your car’s financed value. You can call around, but it is easier to use an online quoting system. Look for an insurance quoting system that is BBB approved and has a stated privacy policy.

By: Marilyn Katz

Car Insurance: Mini Bike Shocks Ahead

admin — Wed, 23 Jun 2010 13:19:29 +0000

Car insurance takes a significant portion out of a lot of people’s incomes, but for younger drivers it can be beyond reach on a low income. Under normal circumstances a new driving licence is a clean one, with penalty points for motoring offences not making an appearance until after at least a little time on the road. These two facts make motorcycle ownership a much more attractive proposition for impecunious young people.

There is however a noteworthy exception to this. It is only relatively recently that mini motorbikes have made an appearance, and their use has been taken up avidly by juveniles, but already legislation has had to be amended to deal with their illegal use. This is resulting in the motorbikes being confiscated and in some cases crushed; and their owners being prosecuted.

There would appear to be little point in prosecuting a juvenile as a result of a motoring offence, but the authorities have decided to use the law to enable them to deal with offenders in a fairly unique way. Even though the offenders are usually children, who are several years from being old enough to hold a driving licence, they are hit with penalty points. These are placed on record, and when a first licence is applied for the penalty is applied and the licence endorsed.

The offences being committed which give rise to these penalties are usually based on laws relating to vehicle use. It is illegal to use any vehicle unless the driver has a licence and the vehicle is taxed and insured; if these requirements are not met then use is only permitted on private land and is subject to the land owner giving permission.

The problem is that the majority of mini motorbikes are used on public land, pavements and roads, and it is doubtful if the (usually) youthful riders are aware that any offence is being committed. It is however even more doubtful if the riders have contributed to the cost of the motorbike in any way. So the machines have mostly been bought by parents who should be aware of the law and should show a greater sense of responsibility.

A number of accidents have already occurred when riders have collided with pedestrians, road users and miscellaneous obstructions. Make no mistake – these machines may be small, but modern engine design has ensured that they are capable of speeds which are out of all proportion to their size. Both riders and their victims have ended up in hospital, and in some cases in intensive care as a result of their injuries.

Bad enough if the damage ended there, with an injured child or pedestrian, distraught parents and a costly motorbike confiscated and crushed, but the delayed effect can also be traumatic. It is likely that all parties to the accident will have forgotten about the other penalty until the young person applies for their first licence on reaching qualifying age.

If the licence is granted it will carry the record of the forgotten penalty points. O.K. so where’s the problem, you may ask. A licence was wanted and has been issued. The problem lies in the next requirement which is insurance. Every company approached for a quotation will ask about the driver’s record, and when they learn that the licence has penalty points on it their interest will fade rapidly.

There will be an instant and fairly savage mark up in the premiums to be paid. This is likely to vary according to the severity of the offence, from a relatively mild but still pricey cost increase for minor offences to swingeing increases for more serious offences such as dangerous driving. Any mention of a drink driving offence will make insurance almost impossible to obtain due to the prohibitive cost, assuming that cover is not refused outright.

An insurance company spokeswoman has given some examples of actual costs. A youthful male Fiesta driver with a penalty free licence is quoted as facing comprehensive insurance payments of around £37 per week, but the same lad with a dangerous driving conviction has to find almost £48 per week. This is a 29% increase and is a considerable sum to pay out every week.

Note that whilst a young female driver in the same position would pay the same 29% increase for a dangerous driving conviction, the relevant figures in her case would be under £24 per week on a clean licence or over £30 per week with the conviction. This is because of the higher accident risk for young males.

So generous parents need to consider carefully. They could be doing their offspring no favours in the long term by splashing out on a mini motorbike for them before they obtain a licence and can then ride legally.

By: Michael Challiner

Car Insurance Scam

admin — Thu, 17 Jun 2010 03:54:21 +0000

Have you wondered why your premiums are going up for your car insurance? There is a motoring scam currently sweeping across Britain’s roads with fraudulent motorists staging crashes in order to claim compensation. This is seen as making money quickly by criminals who deliberately slam on their brakes so the unaware driver behind them bumps into the back of them. Then it’s a case of faking whiplash symptoms to the doctor and claiming through the other driver’s insurance for damage and injuries.

This potentially lethal scam is not only increasing the premiums on the involved driver’s policy, but in fact, everyone’s policy. The estimated value of fraudulent cases per year is around £1.6 billion. This has resulted in the insurance companies increasing the cost of annual policies around £50 in a bid to balance the cost that the insurance companies are losing through the claims.

The police have warned people to be ever so vigilant on the roads and to keep a safe distance between other cars. This is a popular scam adopted by many well organised criminals.

Some fraudsters who are not even on the scene at the time of an incident are claiming compensation claiming they were a passenger in the vehicle, after one or two simple visits to the doctor/hospital; they can receive up to £2,500. An owner of a towing company has also been prosecuted as he had claimed he had towed hundreds of vehicles from crash scenes which had not even been involved in an accident.

This will no doubt lead to a review of the claiming process where claims will become a lot more complex.

By: Barry Loughran

Online Insurance Will Help Fix Car Repairs

admin — Wed, 16 Jun 2010 18:35:53 +0000

Car insurance is something you cannot do without unless you do not have a car. It is a legal requirement that you cannot escape. Most people, in fact, prefer to have more than the basic required levels of insurance. They want to know they will not lose everything if something goes wrong.

Internet banking offers this option.

You can go to internet banking websites and click on the insurance tab to get information. You can also sign up online. Because you will be entering personal information, you will need to sign up with the institution first.

Then, you will give your name, address, and other pertinent information. You will be asked questions about your car: its make, model, condition, etc. You will then be rated according to your driving record, your car’s information, and your area. Internet banking makes it possible for you to do this from the comfort of your own home.

Another product offered by is travel insurance. Many international internet banking companies offer this. They offer coverage for medical expenses when you are out of your home country. You will not have to pay cancellation fees if you have this coverage. It will address such issues such as lost luggage and theft of travel documents.

Many banking operations provide life insurance. You can pay for term insurance with a simple automatic deduction from your account if you choose to do so. You will have to fill out an online information form about yourself.

It will include basic demographic facts about you such as age, race, and area of residence. Then, it will get to personal questions about your health. All this will be used to determine where the internet banking service will set your rate. They will get back to you in short order with an offer of a particular rate and policy.

Some internet banking companies go so far as offering health insurance. Health insurance is usually a costly business for anyone buying an individual policy. The company will set you up with this insurance for a competitive fee. However, do not expect it to be cheap. That is just the nature of the product.

Bonding insurance is a seldom offered, but important insurance for some banking customers. This is the insurance for the liability of people who are put in a position of trust of the money or valuables of others. For example, a locksmith must be bonded. A few internet banking operations make this insurance available.

CEO’s of internet banking institutions are constantly on the lookout for ways to make their services more appealing to the consumer. If offering a multitude of insurance options will help bring customers to their website, then that is what they will do.

By: Terry Detty

Car Insurance – Tips to Help You Make a Decision

admin — Wed, 16 Jun 2010 14:58:03 +0000

Often people do not have an auto insurance because they do not know what auto insurance policy to get, as there are many policies that you can choose. Or either, so it happens, that they do not have a clue about where to buy the insurance policy. If you own a car you should know that there are numerous options available for you, but you have to first figure out what you exactly need. Your goal is to find a coverage that will facilitate your specific demands.

Begin by looking at different auto insurance policies and compare the coverage rates. Keep in mind the money that you will be spending to get the protection, and make sure that your budget does not go overboard.

There will be many factors that will be taken into account when insurance companies are deciding on the premium rates. You will get a discounted price for have a clean driving record. If you mange to keep a stable driving history then, unlike many other people, you will not have to face increases in your premiums at the time of your policy renewal. There are many other aspects which can also be taken into account for which you get low rates, like your loyalty to your insurance company and having multiple policies with the same company.

You might also want to look at the discounts that are available to you if you are a senior citizen, or a student who has consistently shown a remarkable academic performance.

When deciding on the limits, try to have a conversation with your insurance agent regarding it. It is always a smart move to have a high deductible as it reduces your premiums significantly, and you should also enhance coverage of your liability insurance. By increasing your liability insurance you are also increasing the financial protection which you will receive if there is an unfortunate accident.

It might be interesting to note that there about 186 million motor cars in America and a significant percentage of this number are the cars which are driving somewhere uninsured. To guard yourself and your loved ones be sure to check online to see what may be available to you, as you never know what options may exist out there and how affordable coverage may actually be.

By: Marcel A Johnson

Rental Car Accident – The Process and Your Rights

admin — Tue, 15 Jun 2010 12:00:43 +0000

Getting into a rental car accident could be frustrating.
Usually you are in a city that you do not know, a state with laws that you are
not familiar with, and you are driving someone else’s car. This is a formula
that can give you a big headache. So here is an overview of how rental car
accident claims get handled and settled.

When you rent a vehicle, the rental company will ask you
for your proof of insurance. Many of them will ask for your
Declarations Page. They want to see what coverages you have. They will be
looking for liability, collision, and comprehensive, in your policy.
Liability is because it is required by law, but collision and comprehensive will
protect the car you will be driving. 99% of the companies out there will extent
coverage to the rental car and the rental company knows that.

Rental companies will want to know how much your
deductible is. Your deductible is the portion of the loss that you are “self
insuring”. For example, if the damage to the car is $5,000 and your deductible
is $500, then the insurance company will only pay $4,500 ($5000 – $500
deductible); you will have to pay the $500 out of pocket. Many rental companies
will require that your deductible be less than $500 or you will have to buy
extra insurance at the time of renting the vehicle.

When you rent the car, then rental agent will ask you if
you want extra insurance. Three things can happen: you decline all together, you
buy extra insurance, or you buy a collision damage waiver. Depending on which
option you select, the rental car accident will be handled differently by your
insurance company.

First, if you decline all together, then you better have
an active policy that will provide first party coverage for the rental car. Your
insurance company will be responsible for paying the rental company for the
rental car, but those payments will be subject to all the terms of your policy.
What this means is that your deductible will apply and you will have to pay that
to the rental company up front. It does not matter that you were not at fault
for the accident; the rental car company is entitled to get the car fixed as
soon as possible. Your insurance company will be responsible for going after the
responsible party

The restrictions of your policy can cause several
problems. Mainly it will be on the loss of use,

click here to learn more about the LOU in a rental car accident. If you do
not carry rental coverage on your policy, you will owe the rental expenses to
the rental company as if they had to rent a car. If the vehicle will take five
days to repair, then you will owe the five days rental. Also, if you do carry
loss of use coverage (rental car coverage) in your policy, but the limit is
below what the rental car would rent for, then you would owe the difference. For
example, your rental coverage is $40 per day, but the rental car cost is $50 per
day, you will owe the $10 difference between the two.

Second, you buy “extra” insurance. This is where things
can get a little complicated. The insurance adjuster must look at actual policy
that you bought (not given to you when you sign). The terms of that policy will
determine how the accident will be handled. Some rental insurance coverages
provide complete coverage any rental car accident as long as you pay the
premium. They would cover the car that you hit (if you are at fault), and the
rental car damage. You could still have a deductible. Your insurance company
usually will step in as a secondary form of coverage in case the rental car
insurance policy limits are low. However, you need to read both insurance
polices together to see which one would pay first and which one would pay as the
secondary.

Last, you buy collision damage waiver. Many people will
tell you that this is coverage for your deductible. This is not true. When you
rent a car, you agree that you will return the vehicle as it was given to you.
You also agree that in case of a rental car accident, you will pay for the car.
A collision damage waiver will waive that provision of your
contract. This means that you are no longer responsible for the rental car.
However, you still need to file a claim for your medical bills (in case of
injury) and to defend you or pay for the car you hit (if you are at fault).

By: Hector Quiroga, J.D.

Car Insurance Pricing Plans

admin — Mon, 14 Jun 2010 20:17:33 +0000

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 you’ll pay.

Assessment

Common factors that will be used to assess the premium are the value of the car you’re driving, the safety of that vehicle, the coverage you want, will there be deductibles or limits etc.? How much you’ll 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 you’ve had one or more accidents in the past, your rate will go up. If you’re 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.

By: Joseph Kenny

Unemployment Insurance Is As Essential As Life And Car Insurance

admin — Wed, 09 Jun 2010 05:35:19 +0000

Just as you would protect your life and car by taking out insurance against the unexpected then you should also give some serious consideration to protecting your mortgage, loan and credit card repayments along with your income in case you should find yourself unemployed.

In a world where the unexpected frequently happens if you have a mortgage or loan and make repayments each month thought should be given as to where you would find the money to carry on repaying them if you were to lose your income. If you have mortgage repayments then you need to ensure you can repay them each month otherwise you are risking repossession of your home. Mortgage payment protection insurance (MPPI) taken out as unemployment cover can give you an income to replace your lost one. If its loan or credit card repayments you have to make then loan payment cover would do the same to make sure you had the money to repay them each month and not get behind and into debt. If you want to insure your income then income protection would allow you to insure your income up to a certain amount each month and this would allow you to continue living your lifestyle by paying your essential outgoings.

All protection insurance policies tend to work on the same principle in that you have to be out of work for a pre-determined amount of time before it will start paying out. Usually this can be anywhere between the 31st and 90th day of being continually out of work and would then continue providing you with an income for between 12 and 24 months depending on the provider.

Just as all policies have a waiting period before you can claim they all have exclusions within them that could mean unemployment insurance isn’t the right product for your circumstances. Some of the most common reasons which stop people from being eligible to claim include only being in part time employment, suffering from an ongoing illness when taking out the cover, being retired or self-employed. While these are all common there can be others depending on the provider, so it is essential to check out the small print of any policy you are considering buying.

Taking out the cover with a standalone specialist provider is the best option as opposed to taking it out alongside the loan or mortgage. Policies sold with the high street lender and alongside loans and mortgage are what has earned the product a bad name and which have been associated with mis-selling.

If you want to avoid the high premiums and poor selling techniques which were a focus of investigations into the sector recently by the Financial Services Authority and currently, the Competition Commission, then stick with someone who specialises in payment protection products for your policy. It was the high street lenders who received fines by the Financial Services Authority during the investigation not the specialists and it is important to remember that it isn’t the product that is at fault but the firms who have little or no experience in selling unemployment insurance.

By: Simon Lance Burgess

Multi Car Insurance Can Work Out Cheaper

admin — Sat, 05 Jun 2010 06:14:58 +0000

If you have more than one car in your home then it can work out cheaper to take out multi car insurance. Car insurance can be confusing and there are limitations which are set out in the exclusions and it is essential that you read the small print of any policy you are interested in and let a specialist website search around on your behalf for the lowest premiums for your cover.

Specialist insurers will offer discounts when you are insuring more than one car if you take them both out together at the same time but just as when comparing premiums for single car insurance it is better if you let a specialist website search around on your behalf for the cheapest premiums. You can also benefit from a specialists’ advice by the FAQs and other information they will make available so you understand a policy and the options available.

The three main types of car insurance include fully comprehensive which offers the most cover but of course is the most expensive type of car insurance. Depending on the value of your car you might have to take to take out fully comprehensive, certainly if you buy a brand new car. Third party fire and theft can be taken cheaply but this of course doesn’t give you as much cover as fully comprehensive though it covers against having your car stolen or if destroyed or damaged by fire as well as covering any damage caused by you to a third party or their vehicle.

The cheapest form of motor insurance is third party only and this insurance will payout for damage to others but not your own car if you should cause an accident.

Once you have determined the type of insurance that you require then a specialist will be able to find you the cheapest quotes for multi car insurance and present them to you in the shortest time possible along with the vital information needed to ensure that you understand your policy.

By: David H Thomson

European Car Travel Insurance Cover

admin — Sat, 05 Jun 2010 05:39:38 +0000

Approximately twelve percent (12%) of UK motorists travel to European destinations every year and of these more than a third are unaware that they have too little European car travel insurance cover. They assume that they are fully insured to drive in Europe but what actually happens is that many UK insurers will downgrade the level of insurance cover on any vehicles taken abroad. By law they have to provide a minimum level of cover for driving in European countries but this is usually third party only.

There are basically two types of insurance cover. Firstly, there is the temporary cover which is ideally suited to holiday makers and people going on short visits. Then there is the more comprehensive cover which is specifically for people intending to stay in Europe for extended periods of time.

Some insurers will automatically offer comprehensive European car insurance cover for up to 90 days, valid in all EC countries with no requirement that the motorist must inform the insurer the intended dates of travel. This is ideal for holiday travellers and perfect for short business trips. Other insurers will want to know beforehand the date of travel and the duration of the trip. They will also inform you of the amount of free European car travel insurance cover you are entitled to and what additional cover is available.

Some companies will charge a little extra for comprehensive insurance including European breakdown cover. Something to be aware of, the cost of recovering a vehicle outside of the UK especially when there are no suitably equipped garages nearby to service the car can be extremely expensive. For instance, Auto parts in Europe for cars with right hand drives are not commonly available and the cost of returning a car to the UK could run into several hundreds of pounds.

One important document you will need to take with you and your insurer will provide is the ‘Green Card’, although this is no longer a legal requirement when travelling in Europe it can make life so much easier in the event of an accident. The green card is internationally recognized and confirms that you have the minimum level of car insurance coverage.

Finally if you do intend to spend more time in mainland Europe and require a longer term insurance cover it may be worth considering an international car insurance policy. Speak to your insurer, they will be able to advise you which policy would be best suited to your needs.

By: Eric Penning