Category Archives: Insurance

The Importance of Getting Your Car Insured

13A car insurance in a policy which protects vehicle owners from auto expenses when the car gets into an accident. Instead of paying out of their pocket for the repairs, the car owners pay an annual premium to the car insurance company. So when the car does get into an accident and needs repair, the insurance company covers the costs. With the number of individuals owning their own private vehicles increasing, the likelihood of one getting into a car accident is higher. auto repairs can be extremely expensive and hence opting for a car insurance online is an ideal choice. The reasons why one must get their car insured as soon as they purchase it is:

1. It is the law

It is believed that a car in a public place can be potentially lethal to the people and its surroundings. The potential damage that can be caused by a car is serious and must not be taken lightly. It is for this very reason that the Government of India has made if compulsory for all vehicle owners to have their vehicles insured as soon as they purchase it. Failure to do so can cause the government to take strict action against the individual.

2. Covers lawsuits

Several car insurances also protect the vehicle’s owner against lawsuits. If the car has been in an accident and a third party files a case against the owner of the vehicle, the insurance company will cover the charges and legal fees put forth.

3. Protects the owner’s finances

One can never predict when they will get into an accident or the extent of damage that the vehicle and other individuals may suffer. Repair work on the vehicle can be extremely expensive and if the owner himself gets injured it tends to add to the cost. Applying for insurances online can help protect an individual’s finances in the event that they do get into an accident.

4. Cover damages

A insurance policy does not only cover the expenses incurred if the individual gets into an accident. The insurance policy also protects the vehicle owner from damages that occur due to fires or thefts.

The process of obtaining a insurance policy is extremely easy for car owners. One can simply opt for insurances online. This is beneficial as online, one can compare the policy offered by different insurance companies and choose the best one. Also, it is time saving as the individual is not required to personally visit the insurance company in person. Many dealerships also help individuals sign up for a car insurance policy as soon as they purchase their new onece.

Most Common Car Insurance Discounts

285The reports list a lot of different expenditure categories and average amount, yet they remain valid indicators of how expensive auto insurance can be. It gets worse when driver falls under high-risk category. A high-risk driver is one who has tendency to file claims more often than an average person due to history of recurrent involvement in accidents, lack of experience behind the wheel, vision impairment, and bad credit score. Auto insurance companies see high-risk drivers as undesirable customers. More claims translate to more payout, and this is bad for businesses. However, there are many different ways to reduce car insurance premium whether a driver is high-risk or low-risk.

Understand Auto Coverage Necessity

Auto insurance provides financial protections through coverage. There is specific type of coverage for a different set of perils for examples Bodily Injury and Property Damage, Collision, Comprehensive, Personal Injury Protection, and Roadside Assistance. Some of them are mandatory by law, while others are optional. Mandatory coverage is unavoidable because all drivers must be able to produce valid proof of insurance when a police officer asks for it. Failure to produce the proof is punishable by fines, driver license suspension, and jail time.

Optional coverage is omissible from auto insurance policy. It is best to understand what each coverage type does to help make the right decision. For example, an old inexpensive car that would not cost too much to replace does not need comprehensive insurance. After some thorough calculations, the premium and deductible for the coverage can cost more than the value of the car. In contrast, a new car that is worth more than ten times of the premium can always use both Comprehensive and Collision.

Regardless of the car model, please make sure that all coverage types in the policy are necessary because omission of useless coverage can save a lot of money. A discussion with an independent agent can help anyone determines the right insurance for their needs.

Cut the Premium but Not the Coverage

Not all drivers can afford the most complete insurance policy or need the same types of coverage. An insurance policy that consists of only the state’s minimum coverage requirement costs less than those with some optional protections indeed, but it does not mean that everyone should cut the coverage to save money. One of the easiest ways to reduce premium without omission of coverage is to take advantage of insurance discounts. Auto insurance premium can look expensive, but reduction from several discounts cut good amount of the cost. There are three basic types of insurance discounts: Vehicle Discounts, Driver Discounts, and Policy Discounts.

1. Vehicle Discounts

Premium reduction is available for those whose vehicles meet and exceed the requirement for safety standards. Vehicles with anti-theft and passive restraint system are the bare minimum requirements for eligibility. Some new vehicles come with these safety features as standard options, so there is no need to purchase and install aftermarket parts. Other safety features include VIN, anti-lock brakes, and stability control. All those additions prevent injuries and accidents on the road; auto insurance companies appreciate and reward drivers’ efforts to stay safe. In case the provider does not offer the discounts, consumers should ask for this.

2. Driver Discounts

Eligibility fort driver discounts depend on the drivers’ profiles. It has nothing to do with vehicle safety features. Some requirements for driver discounts are as follows:

· Completion of Defensive Driving Course: the course teaches drivers to drive safe and avoid involvement in accidents all the time regardless of the road conditions.

· Safe Driver: after a period of ticket-free or accident-free, some insurance providers reward the drivers with discounts. The period can be different from provider to provider.

· Low Mileage: in case the consumer allows, an insurance carrier can install mileage detector on the vehicle. Drivers with low mileage means they spend less time on the road, hence low risk of accidents.

· Loyal Customer: a policyholder who stays with the same carrier for several periods can be eligible for this discount.

· Good Student: teenage driver who achieves good grades at school or college is eligible for premium reduction as well.

When life circumstances change, a driver who previously was ineligible for discounts can ask for reductions as long as he/she can show valid proof of eligibility.

3. Policy Discounts

Unlike driver and vehicle discounts, the eligibility for policy discounts depends on how a customer purchases the insurance. Common eligibility requirements include:

· Full Payment: some companies offer multiple payment options. A customer who pays the entire cost upfront deserves a price reduction.

· Multi-Car: a customer who has two or more cars in the same policy is eligible for lower price, too.

Some companies offer a long list of discounts, while others only have several basic options. Please do an online research or consult an independent agent to get the most out of the insurance policy. Discounts become more important when a driver is high-risk. In most cases, a high-risk driver must acquire insurance from non-standard market with higher premium than average. A company that deserves a look in this situation is Good to Go Auto Insurance, a non-standard provider who offers easy approval for high-risk driver and plenty of discounts.

Good to Go Insurance focuses on state’s minimum coverage requirement (the mandatory ones) yet it provides a couple of optional coverage such as Collision and Coverage. Eligibility for discounts from goodtogo can save good amount of money, for example full payment cuts the premium to 31% while loyal customer gets up to 40% reduction.

Car Insurance Rates in Ontario

284Without a doubt, car insurance rates represent the highest insurance cost for Canadians. This type of insurance is significantly more expensive than home and life insurance. Car insurance rates vary significantly across Canada. Did you know the average rate in Ontario is $1,920 per year, but it is only $912 in Quebec and $1,092 in Nova Scotia?

Why Car Insurance Rates in Ontario are the Highest in Canada

Despite the fact that there have been government-led initiatives to reduce car insurance rates in Ontario, they continue to be the highest in the country. There a number of reasons for this, including:

  • Sufficient space for insurance fraud leading to high claims payouts
  • Highest population density
  • The worst roads
  • High rate of vehicle theft

There are a lot of factors that are considered when determining insurance rates in Ontario, such as: location, car make and year, driving experience, driving history, age, marital status and even gender. The ones with the largest impact on car insurance rates are gender, driving history, and age.

Gender: On average, women pay slightly less than men; and this is based on accident history. However, it’s important to note that women don’t have less accidents than men, their accidents just tend to be less costly.

Driving History: A driver’s history is a factor that greatly impacts car insurance rates. On average, drivers with a clean driving record in Ontario pay $1,812 per year; whereas those with more than two violations in the last three years, or a license suspension in the last six years, pay $3,252 per year, which is almost double the amount.

Age: Car insurance rates are higher for individuals under 25-years old because they are considered high risk drivers. Older drivers, on the contrary, benefit from lower insurance costs.

How to Reduce Your Rate

The good news is that there are dozens of ways to reduce your car insurance costs; and they range from buying your insurance in a bundled package with your home insurance, to completing a driving course, to customizing your protection options and deductibles.

Other ways to reduce your car insurance rates are completing a driver course, adjusting amount of your coverage (e.g. buying only liability protection if your car is old and does not need a comprehensive coverage), increasing your deductibles (i.e. amount that you would pay for each claim before an insurance payment kicks in), and many others.

Insurance broker vs insurance agent.

An insurance broker has access to several different products across a variety of suppliers, as opposed to an insurance agent who sells products of one company only. Brokers are compensated by the insurance companies, so you don’t pay extra to use one.

Make an Informed Choice

Hopefully with this information you’ll be able to put a dent in your car insurance rates in Ontario. Remember, an informed choice is the best choice. You don’t have to simply take the rate that one insurer offers. It truly pays to shop around and compare various prices.

Tips on Buying Car Insurance

283Auto insurers underwrite policies to evaluate the risk given to each insurance applicant.

During this process, a person is grouped into a category, such as a high-risk driver, low risk, teenage or elderly. If this risk associated with the applicant is considered too high, the application could be denied coverage altogether. After the results are calculated, the insurance carrier then gives a price, which is based on the perceived risk that driver poses.

1. This is also known as rating the driver

Insurers use this rating as a way to measure what it costs to insure a particular person if a claim is made and how likely claims would occur again in the future. This is often referred to as financial responsibility that an insurer takes on. The tip is to maintain a safe driving record and avoid traffic accidents and you will go a long ways towards getting cheaper car insurance.

2. Not all Insurance Companies Rate Drivers the Same

Many providers use the same general metrics but their algorithms that ultimately determine rates are quite distinct. One of the biggest factors that all insurers use in calculating premiums is the frequency of accidents. When a person files a claim, the insurance kicks in and accidents can cost many thousands of dollars, especially if there is a death involved. The more claims a person files, the riskier he or she is in the eyes of the carrier and more likely to file a future claim. Thus, higher rates are imposed on these at-risk motorist. To keep rates low, avoid incidents and filing claims and you will save a lot of money on auto insurance. If you have had accidents in the past don’t worry.

3. Main Contributing Factors that Affect Auto Insurance Rates

*Driving Record: Auto Insurers will take a close look at how many citations and accidents you have been involved in.

Keep up a good driving record and watch your rates go down.

*The Location you live: If you live in the city, you can expect to pay more than if you live in a rural location with much less traffic.

* The Car you Drive: This is a very large factor that makes up rates. New and expensive luxury or sports cars have some of the highest insurance rates. On the other hand, used cars that are safe and cheap to repair have some of the lowest coverage costs. Get a boring used car and save on coverage.

* Marriage Status: Married people pay less for car ins because they are considered more responsible.

* Your Age: Drivers that are under 25 can expect to pay about double for auto ins. The sweet sport for the lowest rates is between 32 and 62 years of age.

4. Apply for all the Discounts you can

A great and smart way to save on vehicle insurance is to apply for several discounts. If you have more than one automobile, consider getting a bundled or multi-vehicle discount. You can also take a safe driver course and save about 5%. Other popular discounts are good student, military, and even teacher.

5. Shop Direct on the Web for the Cheapest Rates

The internet has literally taken over the world. It has also saved millions of people money on car insurance. Buying car insurance online is smart because you can find direct rate pricing that most brokers can’t match.

Rodney D Young can get you covered for less. Get your fast, free on-line quote now and compare rates in only 5 minutes. Get all of the discounts you qualify for at Rodneydyoung insurance today. At Rodney D. Young, most customers report saving $500 just by switching over and buying direct. See for yourself with a custom quote now.

Car Insurance Quotes

282To get the best value from car insurance quotes, it is important to understand the various terminologies included in your insurance policy. A thorough understanding of these conditions and catchwords will ensure that you are not caught off-guard in the event of a claim. It is important to remember that the point of car insurance is to offer a safety net in times of crises to ensure that you don’t need to dip into your savings account to replace or repair a vehicle.

In order for this safety net to work efficiently, it is important to recognize the various limitations, conditions and terms. Not only will this understanding offer you peace of mind, it will also ensure that you are educated on your insurance company’s various legal and practical procedures.

When it comes to car insurance quotes, most of us can feel a little overwhelmed by the many terms, conditions and buzzwords that appear in our insurance policies.

Few of us understand the jargon of the insurance industry and often find ourselves agreeing to terms that we do not fully understand in the hope of obtaining reliable and efficient vehicle insurance.

I compiled a list of 9 commonly used terms which will arm you with all the necessary information to assist in making a sound decision before singing on the dotted line.

1. Policy Schedule or Coversheet – When it comes to taking out reliable car insurance, you will be required to enter into a contract. This contract can be entered into via telephone, online or, in some cases, in writing, but by law your insurer is obliged to confirm the conclusion of the contract in writing within 30 days. This confirmation is in the form of a policy schedule (Coversheet) summarising all of the specific information of your insurance policy.

2. Claim – You submit/report a Claim to your insurance company when you have suffered a loss or damage to an insured item and you need your insurer to get you back into the same financial position you were in prior to the loss. The merits of your Claim will be validated – and based on the terms and conditions of the policy, the Claim will be accepted or denied (rejected) by the insurance company.

3. Excess – An excess is an agreed amount of money that the policyholder is liable to pay in the event of an insurance claim being settled. For example, if the excess on your car is $300 and the damages amount to $5000 your insurance company will pay the remaining $4700 once you have paid your excess to the repairer. Insurance companies charge an excess to assist clients in managing their risks by not claiming for minor incidents – as well as to ensure that customers do not submit minor or fraudulent claims. If the claimed amount is less than the excess, there would be no claim.

4. Perils – Perils refer to a variety of risks that can cause damage to your car. These include accidental and intentional damage, theft, hijacking, attempted theft or hijacking, fire or explosion, earthquake, storm, hail, flood or snow and glass damage.

5. Premium – A Premium is the amount of money that is paid upfront on an annual or monthly basis to ensure that your vehicle is covered. Your insurance Premium will increase or decrease depending on a variety of factors, referred to as underwriting criteria.

6. Retail Value – Retail Value is the average current selling price (on a dealer’s floor). If you were to insure your vehicle for its Retail Value, it would be insured for the value closest to the replacement cost. Although it is the more expensive option, it has a large number of benefits if anything had to happen to your car. It is also important to remember that the Retail Value of your vehicle decreases on a monthly basis.

7. Market Value – Market Value is the average between the vehicle’s retail and trade value. It is important to note that although you are paying less for your insurance, you are covered for a substantially lower value.

8. Trade Value – When searching for car insurance options, the most attractive deals are those that seem to be the cheapest. If you choose to insure your car for its Trade Value, it would be valued at the average price that a motor dealer will pay you for the vehicle. Trade Value is the lowest value.

9. Specially Agreed Value – This is applied to unlisted, vintage and collectors’ vehicles, caravans and trailers from an authorised source.

To fully understand the details of your car insurance quote, it is best to read through the documentation supplied by your insurance provider and use these definitions for your reference. Not only will this clarify the complexities of car insurance terminology, it will also ensure that you are up-to-date with that which you are covered for and the parameters thereof.