Auto Insurance: Understanding Car Insurance

Understanding car insurance.
Unexpected losses. Future disasters. Insurance can protect against all these eventualities which are potential money draining experiences.

In the case of being an owner of a vehicle, shop around for a good policy and a good tip is to purchase more coverage than required to cover for a variety problems. Some examples of policies include:

Liability

This coverage pays for accidental bodily injury and property damages to others. Injury damages include medical expenses, pain and suffering and lost wages. Property damage includes damaged property and automobiles.

This coverage also pays defense and court costs. The law determines how much liability coverage you must purchase, but you can always get more coverage than required.

Collision

This coverage pays for damages to your vehicle caused by collision with another vehicle or object.

Comprehensive

This coverage pays for loss or damage to the insured vehicle that doesn’t occur in an auto accident. The types of damages comprehensive insurance covers include loss caused by fire, wind, hail, flood, vandalism or theft.

Medical Coverage

Pays medical expenses regardless of fault when the expenses are caused by an auto accident.

PIP

Personal Injury Protection (PIP) pays medical expenses for the insured driver, regardless of fault, for treatment due to an auto accident.

Uninsured Motorist

Pays your car’s damages when an auto accident is caused by a driver who doesn’t have liability insurance.

Underinsured Motorist

Pays your car’s damages when an auto accident is caused by someone who has insufficient liability insurance.

Rental Reimbursement

This type of coverage will pay for a rental car if your car is damaged due to an auto accident. Often this coverage has a daily allowance for a rental car.

Factors That Affect the Pricing of the Auto Insurance

Now that you know more about the various policies available, it’s also essential to know what type of factors affect the pricing of the auto insurance such as:

Drive ‘Safe’ Car

The first thing that affects your policy price would be what kind of car you drive. For instance, a sports car will definitely be more expensive to insure compared to a family car. Also, if your car is a popular target with thieves, chances are that your coverage will be more expensive.

Neighborhood and Mileage Counts

Another factor is where you reside. If you reside in an area which is crime ridden, your policy will be a more expensive one. Drivers who clock up long distance in driving will also pay more than those who live nearby their work places.

Depends on Your Profile

The final factor is that the price depends on yourself. Your age, your gender, marital status and driving records are all taken into account for. Accident rates are higher for drivers under the age of 25 years old, so if you are young, expect to pay a wee bit more.

With that in mind, have fun researching on various policy packages offered by insurance packages to find out the policy that suits your profile!

07-02-2009 by Sorli

category: Auto Insurance

Tips How to Get Cheap Auto Insurance Quote

Here are some useful tips on getting cheap auto insurance quote. These tips are from Brian, a former insurance agent and financial consultant. He gives some tips on how to get cheap auto insurance quote:

Examine Your Auto Insurance Policy – A few changes in the auto insurance coverage can save hundreds of dollars in the insurance premium.

Increase The Insurance Deductible – Deductible is the amount of money have to be paid before an insurance company pays a claim. Raising it can save hundreds of dollars per year of the car insurance.

Install a Security System – Most insurance companies will give discount if security system is installed to the car.

Decrease Your Mileage – The auto insurance that have to be paid is directly proportional to the number of miles you drive. So cut down your mileage, try car pooling or walking sometime.

Shop Online for Cheap Auto Insurance – Try to compare them online.

06-02-2009 by Sorli

category: Auto Insurance, Tips

The Difference between RON92, RON95, RON97 and RON99

Many said that RON92 oil is the older oil, only suitable for older cars or for cars that uses carburetor only. There are also some that said that RON92 oil will make the engine dirty and also said that that RON92 oil is less powerful compared to RON97 and RON99. Before you make any false assumptions, let us see what the real meaning of RON is.

RON stands for Research Octane Number. Octane number or octane rating refers to the gasoline ability to withstand auto ignition (knocking) inside the engine. Higher octane number refers to higher ability of the oil to fight auto ignition. In other words, it means that RON95 is harder to ignite compared to RON92.

Filling gasoline into a car.Different vehicles are designed to be use with different octane number of oil. Higher octane number oil is basically designed for high performance vehicles such as sport vehicle and racing vehicle. Why is that so? This is to avoid premature ignition of oil inside the engine because of auto ignition, which happens before the spark plug ignite the fuel. This phenomenon is known as knocking. Knocking is not wanted because it reduces the performance of vehicle.

The right usage of octane number based on design and adjustment of engine will maximize the performance and effectiveness of the vehicle. Modern vehicles are equipped with knock sensor which enables it to adjust its combustion timing automatically according to the oil octane number to avoid knocking or premature ignition of oil.

Not all vehicles require high octane number petrol. You can check your vehicle fuel requirement inside the guide book of your vehicle or you can simply check the minimum Octane Rating at the back of the fuel lid cover of your vehicle. Most cars can still use RON92.

Higher RON number does not means that it is more powerful. It means that it is harder to ignite. It is also cost you more.

17-01-2009 by Sorli

category: Auto Insurance, Auto Things

Secret That The Insurance Company Don't Want You To Know

People with lawyers get bigger auto insurance settlement when they involved in an auto accidents. Want to know why? Watch the ads video below.


Adjusters want to settle cheap, quick settlements are not always best, a computer may decide your compensation, and people with lawyers get bigger settlements.

09-01-2009 by Sorli

category: Auto Insurance

Auto Insurance Proposal and Cover Note

A proposal form is an application form to be filled in by you, if you are buying insurance from an Insurance Company for the first time. It will generally ask for your information on the vehicles and to be insured, including their values, your personal data and also details of your insurance history, etc.

Cars in traffic jam.The insurance company base their decision on whether to accept or reject your proposal and what terms to impose on the information you provide in the Proposal Form.

As the information given is crucial to your Insurers, you have a Duty of Disclosure to provide all facts material to the insurance. Please read the “Important Notice” appearing on the Proposal Form.

You are required to sign a declaration that the information that you provide is the truth and that it shall form the basis of the contract.

What Should You Do When Filling an Auto Insurance Proposal Form?

When filling an Auto Insurance Proposal Form, you must state all facts material that you know. These facts material will affect insurance company whether they will receive or reject your proposal or charge you additional fee. In Life Insurance, facts on your health and occupation are facts material.

What happens if insurance agent makes mistakes or fills untrue information?

Even if the matter occurred not caused by your mistake, Insurance Company may refuse the contract. Due to this, you should always read what is written or fill meticulously before signing the auto insurance proposal form.

What is a Cover Note?

After you pay premium, an agent will issue a cover note as a temporary protection before the insurance company decide whether to cancel or receive proposal you. It will expire after that note ending date or when your proposal is rejected or when a policy is issued by the insurance company.

Make sure you get one cover note copy with complete information of everything on auto insurance coverage such as sum insured, premium, excess and protection period after paying the premium to an insurance agent.

Contact your insurance company if you do not receive your insurance policy after 30 day.

What should you do when considering buying a policy?

1. Always read and understand the policy terms and proviso.

2. Do not buy an insurance policy only because the push from insurance agent. Do only when you know the policy and if you need it. However, under law, you must own an auto insurance.

3. When you have your policy you must always pay the premium payments specified.

4. If you take too many policies, the insurance company probably will doubt it and they may cancel your policy.

What should you do if you involved in an accident

Make a report to police in 24 hours time on the accident.

Notify your insurance company in writing as soon as possible all the details about damages or losses which occurred by including the police report. The reasonable time period to report to the insurers is within 14 days. However, for cases which involves limb injury; where a policy holder is hospitalized due to accident, they should report to insurance company once being able to do so. If there is any case, other party charge you and you accept a summons to court, do not plead guilty but notify the matter to your insurance company. If you do not do so, the insurance company may never be responsible in defending your interest when there are claims on you or claims for the damages of others vehicle.

Final question on yourself

Do you own an auto insurance policy or life insurance policy? Have you read the terms and conditions of the policy? Do you know that you are tied down to various terms and conditions?

by Sorli

category: Auto Insurance

Types of Insurance: Auto Insurance

Auto insurance coverage is an obligation for all vehicles used at road. It is to ensure that drivers are protected against liabilities which should an incident occur. A usual type of auto insurance are the Third Party Policy and Comprehensive Policy. Other protection can be obtained with accordance to the policy holder choice.

What are a Third Party Policy and a Comprehensive Policy?

A Proton Perdana V6 car.

Third Party Policy – if you drive a car and hit a car that belongs to B, under the third party insurance, your insurance company only will be responsible to pay compensation on injury, death of driver B or B car passenger and also to B’s car only.

Comprehensive Policy – If the same thing happens and you hold a comprehensive insurance policy, you are being protected from liability that exist as result of death or limb injury of the driver or passengers and car of B and also damages which occurred on your car. The insurance company will also pay compensation to you if your car is lost, stolen or destroyed due to fire.

08-01-2009 by Sorli

category: Auto Insurance, Insurance Basic

Things That You Should Do When Involved In an Auto Accident

Nobody wants an accident to happen on their self. Even though, however prepared and careful we are, if it is unavoidable, what can we say. More, if the road accident involves our vehicle with others.

May be these following tips can help a little if you or a person you know involved in road accident:

  • Be calm and do not be panic. This is the most important thing before we take our next action.
  • If there were those who are injured, contact for ambulance or 911 (or any emergency number at your place) for help.
  • If there is no injury, move the vehicles from the traffic flow to a safe place, if it is possible.
  • Note and write other drivers’ name and addresses involved.
  • Take the model and registration number of other involved vehicles, write them.
  • Take the witnesses name and address, if there is any.
  • Make a rough sketch of the accident and the involved vehicles location just before and after the crash. Picture or photo on the accident can help police’s and authority’s investigation.
  • Exchange information on each others auto insurance company name / operator.
  • Do not discuss on who is guilty. This may create trouble in handling your claim.
  • If your vehicle needs to be tow, make sure that your vehicle will be sent to the right workshop. Contact the hotline number of your auto insurance company / operator to obtain information about the right auto workshop.
  • Report the accident to the police immediately.
  • Report the accident to insurers / insurance operator immediately, although you may have no intention of making any claim. The involved third party in the accidents might make an insurance claim from your insurance company and this can cause you to loose your NCD (No Claim Discount).
  • If you make an insurance claim, be sure to completely fill the insurance claim form and include any related additional information. If you have any doubt, get advice from your insurance company / operator.

Always be calm and do not panic.

30-12-2008 by Sorli

category: Auto Insurance

About LAI – Life Auto Insurance

We teach our children values and principles which we hope will see them through their lives. School also try to import good values and give them an education which will enable them to get a job or to further their studies at colleges and universities.

Yet most of us neglect to teach our children one very important lesson of life and that is how to manage money.

Money – you cannot live without it. Having it can bring you joy but lack of care in managing it can bring you misery – ask anybody who has creditors knocking at his door or worries about repossessors coming to take the car. This is not the type of life that we would wish for our children.

Money problems may not disappear even if you earn more money. Even rich have money problems because they do not know how to manage the money and find themselves knee-deep in debt.

The answer lies in handling money wisely. Yet for parents the financial scene today is so different from what we faced before.

For example, we never had so many banks ‘begging’ us to use their credit cards. Today it is also possible to buy on installments without even having to pay any deposit.

Without preparing our children for the world of easy credit, is it any wonder that today we have bankrupts who are still in their twenties?

Because it is a a whole new world out there, LAI – Life Auto Insurance hope this blog will able to help parents and peoples in guiding their children to understand some basics of personal finance.

Our children, students, brothers and relatives will one day have to make decisions which go beyond how much of the pocket money to spend at their school canteen and how much to put aside to buy that something special.

Decision about money will get more complicated when they get their first holiday job or leave school.

For example, as a child leaves home for further studies to work, she should have fundamental knowledge about how much it costs to live on her own. She should have an idea of how much to spend on rental and her rights as a tenant. Advice should be given on how to save on food and transport so that she can survive within her allowance or income.

It is also important that she is made aware of the dangers of easy credit. She should be taught that credit cards can turn out to costly affairs, something which she will not be told when she signs up for the cards.

She should also be informed that hire-purchase or easy-payment schemes involves more than just small monthly payments. Even if the goods are repossessed, for example, she can still owe the bank money.

She should learn about the above and lots more besides. With the right basic personal financial knowledge, it will be easier for her to better analyze the financial products which she will constantly be approached to invest in. Hopefully she will be less likely to fall victim to financial scams.

Handling money wisely is after all one of the essential living skills needed to survive in today’s world.

Until then, we hope this small blog can contribute to enhance the financial literacy levels of our children and we ourselves.

22-12-2008 by Sorli

category: Auto Insurance, Money Education

Sitemap

Page 1 of 2 : Next

Posts

17-02-2008 by Sorli

category: Auto Insurance

Tags: