Online auto insurance: dos and don’ts

Online auto insurance: dos and don’ts

One of the first steps to take after purchasing your new car is making sure you’re covered by quality auto insurance. If you already have insurance, ensure you renew your policy since you can’t predict what could happen while you are on the road. However, when it comes to purchasing online auto insurance, you can easily get confused about your car insurance plans. Here are some dos and don’ts that can help you navigate the online insurance buying process. Dos 1. Fill the proposal form yourself Ensure you fill this form by yourself and don’t provide any misleading or false information that may affect your premiums in the future. You should also keep a copy of this form for personal records. 2. Check who else is covered? If you own a family car, chances are you share it with your family members. Always check whether the policy you choose covers other drivers. Some insurance plans don’t cover drivers under the age of 25 who have a bad driving history. Thus, try asking your online insurance providers for policies that cover such high-risk drivers. 3. Update your policy Many vehicle owners forgo minor changes in their lifestyle, forgetting they can affect their premium rates. For example, if you get a new job in a low traffic area, it means your chances of getting an accident are lower. This can save you a lot of money since your insurance rates will be lower. Whether you’re looking for a new online insurance provider or renewing your policy, ensure you update it to get cheap auto insurance. Don’ts 1. Making false declarations Making...
Common types of auto insurance fraud to avoid

Common types of auto insurance fraud to avoid

The insurance industry is a frequent target for fraudulent activities because of the lump sum amount of cash people collect each year. Auto insurance fraud, for example, is estimated to cost many car owners between $400 and $600 in premium costs each year. Unfortunately, even if you aren’t directly involved in auto insurance fraud, it can significantly increase your premium and drag out legitimate insurance claims. It’s essential to avoid auto insurance cases at all costs and report to your insurance provider in case of any fraudulent suspicions. You should also learn to protect yourself from car insurance fraud to ensure you get low premiums and affordable insurance. Here are some types of auto insurance you should avoid. 1. Staged accidents When you deliberately stage a car accident, theft, or injury to collect some money, it’s considered insurance fraud. However, at times you may find yourself in the middle of a staged accident without your knowledge. For example, two vehicles trap you in a rear-end collision, or another car hits yours deliberately. In such cases, always take pictures and get the contact details of the persons involved in the accident. 2. Fake and exaggerated claims Due to the rising number of insurance companies in the market, there are a lot of fraudulent insurance agents that want to collect from unsuspecting clients. Such agencies collect premiums for insurance policies that don’t exist. Always go for a licensed and experienced insurance company to avoid such fraudulent claims and confirm whether the agents work for the said company. 3. Accident repair fraud When your vehicle is involved in an accident, it will...
Pros and cons of buying auto insurance online

Pros and cons of buying auto insurance online

If you own or lease a car, purchasing car insurance is essential since it’s illegal to drive without it in many states. On the other hand, for states where it’s optional, it won’t be smart to be on the road with an uninsured car. For instance, in case of an accident, you’ll have to pay for damages and injuries out-of-pocket, which can adversely affect your finances. Therefore, you need to buy auto insurance to protect yourself in case of any unforeseen circumstances. There are several ways you can purchase insurance, and they include; • Online from an insurance company • In-person from an insurance agent • From a local agent; this may be in person or online Purchasing auto insurance online has become popular since it’s easy and convenient. However, before making this decision, it’s vital to assess the pros and cons of online insurance to understand how it works. Below are some pros and cons you should be aware of when buying online insurance from a local agent. Pros 1. Available 24/7 Online insurance companies provide services at any time, any day. Thus, if you are too busy to walk around looking for car insurance, you can search for local insurance companies on your web. Online insurance agencies also provide 24/7 customer support. Therefore, if you have any queries regarding auto insurance, you can quickly contact them and expect a response within a short time. 2. It’s cheaper When buying insurance online, you skip the insurance agent (middle man) that needs to be compensated by the insurance company. This lowers your insurance policy since your provider doesn’t have...
What you need to know about car insurance for people under 25

What you need to know about car insurance for people under 25

If you’re under 25, your car insurance rates could be quite high. In fact, car insurance rates for people under 25 can be several times the rate of people who are much older. This is especially true if you are under 25 and male. However, it is possible to get a relatively good deal on car insurance if you know where to look and maintain a clean driving record. You can also save money by bundling. For instance, if you purchase renter’s insurance from the same company that you get auto insurance from, you may be able to save some money because of a bundling discount. What factors into your car insurance rate? In addition to your age and driving history, your habits related to driving can have an influence on the rate that you pay. People who drive in areas where accidents are more common will have to pay higher rates, and people who are in areas that require you to drive long distances are likely to deal with higher rates. Why are rates for car insurance higher for people who are under 25? People who are under 25 pay higher rates on car insurance because people in this age range are statistically more likely to have a car accident. This is true for people who have recently got their driver’s license, especially drivers who are under 18. Can young people save money by staying on their parents’ car insurance plan? If you are under 25, you can save money by remaining on your parents’ car insurance plan. In many cases, the savings will be substantial. If you’re...
Home and auto insurance cover more than you might expect

Home and auto insurance cover more than you might expect

You might be surprised by some of the things that your homeowner’s and auto insurance will cover. Your auto insurance covers much more than damage from accidents, and your home insurance covers more than damage caused by fires and natural disasters. Here are four unexpected things that home and auto insurance policies will cover: 1. Damage caused by rodents Your auto insurance policy will cover damage to your vehicle that’s caused by rodents. If you have a problem with mice, rats, or other rodents, this coverage can certainly come in handy since rodents can cause substantial damage to vehicles. 2. Injuries from a dog bite If a guest on your property is bitten by your dog, you could face an extremely serious lawsuit. Dog bites can cause serious injuries, and the average dog bite lawsuit could cost you over $30,000. Luckily, your homeowner’s insurance policy will be able to cover the costs beyond your deductible. 3. Vandalism that impacts your home or vehicle If your vehicle or home is damaged by vandalism, the cost of repairing it will be covered by home or auto insurance. This includes damage that is caused by vandalism in just about any setting, such as a protest that got out of control or a rowdy crowd after a sports game. 4. Valuables that are damaged by a natural disaster or fire If your valuables are damaged by a fire, storm, or other disaster, your homeowner’s insurance will cover the damage. This includes damage to jewelry and other high-value items. In most cases, homeowners’ insurance policies will cover $1,500 worth of damage per damaged item....
Is auto insurance cheaper if you lease or buy a car?

Is auto insurance cheaper if you lease or buy a car?

When you shop for a car and decide how to purchase it, be sure to think about insurance rates and other ongoing expenses. These costs aren’t always simple to predict; some vehicles are easy to buy, yet ownership is difficult to afford. The choice between buying and leasing has a major impact on a wide range of expenses. Calculating premiums Insurers generally charge the same premiums for equivalent coverage on owned or leased autos. Other factors like the vehicle model, your location and your age are more likely to affect rates. Nevertheless, you may be required to carry different types of coverage depending on how you obtain the car. This could have a significant effect on the total cost. Required coverage A lease agreement or loan will probably demand full auto insurance. You’ll need to pay for liability, comprehensive and collision policies. This protects you as well as the bank or lessor if a crash occurs. On the other hand, you only have to buy liability coverage if you buy a vehicle and pay for it in cash. A lease may necessitate more costly liability insurance as well. For instance, you could need to buy a plan that covers a maximum of $30,000 in property damage rather than $5,000. You’ll probably only have to purchase the minimum required by law if you take out a loan or pay in cash. However, you won’t have as much financial protection in an accident. What’s included? Many leases and new cars come with roadside assistance. A lessor may provide gap insurance; it ensures that you don’t owe money after a total-loss collision....

How to get car insurance if you have a bad driving record

When you apply for auto insurance, companies will assess your driving record to determine how likely you are to file a claim. If you’ve been in several accidents or filed auto insurance claims frequently, insurance companies may consider you a risky person to insure. This can drive your car insurance rates up dramatically, and some companies may deny you insurance altogether. If you’re in this situation, don’t worry – you can still get insurance. Here are some tips to help you find the right policy. Work with an independent insurance agent Independent insurance agents are experts in their field and have extensive knowledge of the many different types of policies on the market. They will likely be able to direct you to insurance companies that are lenient about driving records and help you find a policy that gives you appropriate coverage. Another advantage of working with an independent agency is that they have relationships with local and regional agencies, who often are able to offer good prices and reliable customer service. Take defensive driving classes In many states, you can earn a discount on your car insurance by taking a defensive driving class. These classes aren’t particularly time-consuming or difficult, and they can get you back in good graces with your insurance company after a major accident or insurance claim. You should also ask your insurance company if there are any other discounts you qualify for – this can help lower your premiums if you’re struggling to afford them. Lower your coverage amount If you’re struggling with unaffordable premiums, try lowering the amount of coverage you have. Lowering the...
Should you use telematics to bring down your car insurance prices?

Should you use telematics to bring down your car insurance prices?

A major trend we’ve seen among auto insurance companies lately is the use of telematics. This is when the insurance company tracks your driving habits in real-time, either through an app or a special device, and gives you discounts when you drive safely. Some telematics programs also track the number of miles you drive and charges you a per-mile rate. If your car insurance company offers this, you may be wondering if it’s an easy way to get affordable insurance. Here’s what you need to know about telematics-based insurance programs before you sign up. Advantages of telematics-based car insurance If you are a very safe driver who doesn’t speed or brake abruptly, you can get a very significant discount by using telematics. Most programs will give you a small discount just for signing up, and then increase your discount when your driving habits are good. In some cases, you can earn a discount as high as 20 percent. If you don’t drive often, you may also benefit from a distance-based telematics program. This is often the case for people who live in urban areas and can walk or take public transit around town. Disadvantages of telematics-based car insurance There are also some potential disadvantages of telematics-based car insurance to keep in mind. If you don’t have the best driving habits, this type of insurance can actually hurt you more than it helps. Some telematics programs will actually increase your insurance rates if they notice that you aren’t driving safely. Another thing to keep in mind is that telematics programs give your insurance company information about where you are driving....

Does car insurance cover towing after an accident or breakdown?

Towing or flatbed car transportation often proves necessary after a vehicle collision or mechanical failure. Severe weather can increase the likelihood that a vehicle will need to be towed. Depending on the circumstances and the type of policy you have, auto insurance may or may not cover the cost of this important service. Crashes If towing is necessitated by a traffic accident, it’s possible that collision coverage or another motorist’s liability policy will pay. The outcome varies based on who is at fault and what insurance this person carries. You might have to pay for towing and wait to be reimbursed. When you need this service due to a disaster or vandalism, comprehensive car insurance may provide it. Although it’s unlikely, your vehicle could become involved in an accident while being towed. This may happen if inclement weather caused the original crash and persists afterward. The damage would likely be covered by another individual’s liability policy, the tow truck’s on-hook insurance or your insurer. You’d have better protection in this situation if you carry collision coverage. Breakdowns Some insurers sell towing coverage as an optional add-on. It typically reimburses motorists regardless of whether an accident has occurred. For instance, you could request a tow truck when your vehicle suffers mechanical problems or a large animal shatters the windshield. An insurer may require you to buy a comprehensive plan before you can add towing. Roadside assistance is a similar add-on. In addition to vehicle transportation, it provides help with certain problems like lock-outs and dead batteries. Be sure to learn about any annual limits on service requests. Your insurer may...

Best auto insurance discounts to take advantage of

Most auto insurance companies offer a wide range of discounts to their customers to encourage loyalty and promote safe driving. If you’re shopping for a new car insurance policy, it’s important to ask about potential discounts. When you take advantage of the discounts available, you could potentially save hundreds of dollars each year on your insurance. Here are some of the most common auto insurance discounts. Good driver discount If you’ve been a consistently safe driver for several years, car insurance companies will reward you with a sizable discount. Safe drivers are less likely to get into accidents, which makes you less of a financial risk for them. If you haven’t had any accidents or tickets in the last three to five years, there’s a good chance you’ll qualify for this discount. If you don’t qualify, you may still be able to get a discount by taking a defensive driving course. Bundling discount One of the easiest discounts to get is a bundling discount. This is when you bundle your car insurance with another type of insurance, like home insurance or life insurance. This discount can save you a significant amount of money, because you’ll get discounts on all of the policies you purchase from the same insurance company. Safety features discount If your car has modern safety features, you may receive a slight discount on your auto insurance. This is another way that insurers like to reward safe driving behaviors. Some features that may qualify for this discount include anti-lock brakes, anti-theft devices, or modern airbags. Good student discount This is one of the best discounts available for...