Several companies are promoting vehicle insurance coverage that conveniently looks the other way if you have accident. Sounds too good to be true? Well, maybe it is. While there are some advantages to the accident forgiveness trend, there may be a few things agents don’t mention when you purchase the accident forgiveness.

The Pros of Accident Forgiveness:

Who wouldn’t appreciate a reputable insurance coverage provider simply forgiving an accident and alleviating any otherwise serious consequences? Motorists opting to test drive accident forgiveness coverage on insurance often make the buying decision based on appealing commercials without completely understanding how it works. In theory, companies offering accident forgives policies advertise no-risk coverage if you’re involved in a collision, rear-ender or fender-bender for qualified drivers.

If you have a clean driving record, then you may qualify for accident forgiveness coverage. For such drivers, in theory participating insurance companies will overlook the first accident without raising the insurance policy premium. Furthermore, insurance deductibles could be lowered by $100 annually for every year that your driving record stays clean after an accident.

Major Auto Insurance providers including Allstate, Nationwide, State Farm, GEICO, Liberty Mutual, and Progressive offer coverage with accident forgiveness insurance. Allstate, however, is among the leading provider advertising accident forgiveness benefit. With a top of the line option, as well as a mid-range policy, customers may opt for the coverage that fits their budget and insurance needs.

The Cons of Accident Forgiveness:

Thrifty consumers will soon discover accident forgiveness isn’t cheap insurance and it comes with a laundry list of stipulations. For example, Allstate offers two plans: the Gold and Platinum. Not only is there a difference in price for reach plan with the Gold costing an additional 8% and the Platinum 15% more, but there’s also different requirements for coverage on insurance. Customers opting for the Gold plan are required to keep a clean driving record for 3 years before being protected, while drivers willing to spend a little more to purchase the Platinum plan receive accident forgiveness insurance coverage immediately.

While it’s difficult to calculate exactly how much you’ll save because of individual state laws as well as various companies have different requirements for insurance coverages. If you’re considering purchasing accident forgiveness coverage, it’s important to always read the small print and compare insurance terms and conditions between participating companies. Keep in mind that some agents may not outline the cons of the policy in hopes of making a sale.

Accident forgiveness shouldn’t be viewed as a “get-out-of jail-free” card for only those who can afford it. Drivers still must be responsible and try to maintain a clean driving record in order to keep affordable insurance coverage premiums as well as retaining driver licenses.

References on Insurance Coverages:

-Guide to car insurance Accident Forgiveness
-Truth behind Accident Forgiveness Insurance Coverage
-Available options for Car insurance coverage

compare|Auto accident, Insurance Coverage| 03 22nd, 2012|No Comments »

No Fault Car Insurance coverage laws are popping up across the country, and consumers are quickly becoming the victims of much more than traffic accidents.  There are a number of reasons why the true cost of this type of auto insurance coverage is higher than most drivers can or are willing to pay.   The idea was to streamline the claims process and in some instances, requiring the claim to be paid in as little as 30 days.

What’s No Fault Auto Coverage?

No Fault Car Insurance is a new type of auto insurance coverage that places the responsibility for repairs arising from a traffic accident, not on the individual that is responsible for the accident, but on each individual automobile owner.  This means that if someone runs into your car, you are responsible for the damages they caused to your vehicle.  You will also be responsible for any injuries you sustain along with the injuries of any passengers in your vehicle, despite of who is at fault for the fender bender.

What Should You Know about No Fault Insurance Coverage?

Personal Injury Protection (PIP) is a mandatory choice in the states with No Fault Insurance coverage laws.  These policies cover the insured for any injuries sustained.  But in a “No Fault” system, it leaves a lot of room for fraud.  There have been issues with the laws governing who can report the medical status of the claimant making it easy for bogus claims to be filed costing the insurance companies millions and increasing the premiums for the honest policy holder.

Clinics that provide the medical diagnoses for the insurance coverage claims are, in some jurisdictions, subject to extremely limited regulations in how they receive their licenses.  In some cases, it has been found that these so called clinics do not even have medical personnel but are staffed by what amounts to be witch doctors.

In Detroit, policy holders have been required to purchase PIP policies that have no cap to the damages that are paid pushing premiums as high as $6000 per year.  This has also increased the prospects for fraud, as the damages that are paid can now be for the life of the victim. Now all one has to do is find an appropriate clinic, who will claim that the victim requires lifetime care which then results in a fraudulent insurance coverage claim that can be valued into the millions quite easily.

No Fault Insurance coverage is about the same as letting people get away with a hit and run; however, in those cases there’s  legal recourse should the perpetrator be apprehended.  In the states that have chosen to require these types of insurance coverage policies, the victim of a car accident is then victimized again as they will most likely face an increased premium, even though they were not at fault.
Instead of calling it “No Fault” Insurance coverage, perhaps it should be renamed: “No Accountability” Insurance coverage.

Related Links to Insurance Coverage:

Basics of Auto insurance Coverage

Learn more about auto insurance coverage

Problems with No-Fault Car insurance

compare|Insurance Basics, Insurance Coverage| 03 13th, 2012|No Comments »

It’s no secret that nowadays your credit score is almost as important as your social security number, but can having a good credit score lead to cheaper car insurance? Although insurance providers may not willingly divulge the information on exactly how your deductibles and premiums are calculated, but it’s almost a guarantee that your current credit score is thrown in the equation.

Why you may ask? Instead of using your FICO score, insurers examine what’s referred to as an “insurance score” to determine whether or not you’ll be a potential risk for filing claims – a lower credit score, according to some experts in the industry, means that a customer with a low credit score will be a higher risk than those with higher digits. Ultimately, cheaper car insurance premiums do depend on your current credit score.

Affordable Car Insurance and Good Credit Scores

The recent statistics from a study conducted by CarInsurance.com are promising for individuals with credit scores of 750 save on average $783 each year on lower car insurance. The 40% of customers with a credit score over 750 can expect to save almost $23,000 on cheaper auto insurance costs over the span of an adult lifetime.

For teen drivers between the ages of 16-24, credit scores aren’t really significant in factoring cheaper auto insurance because the majority of teens don’t yet have established credit; however consider the following statistics for teens with established credit:

• Credit scores above 750 pay an average of $2,515/yr
• Credit scores between 650-749 pay an average of $2,387/yr
• Credit scores between 500-649 pay an average of $2,692/yr
• No credit pay an average of $4,191

Young adults between the ages of 25-34 with credit scores over 750 and a clean driving record qualify for lower vehicle insurance and pay an average of $1,155 annually, compared to $1,938 to the same population with credit scores below the magical 750. Other statistics revealed the average driver between the ages of 25-34 with:

• Credit scores between 650-749 pay an average of $1,658/yr
• Credit scores between 500-649 pay an average of $2,023/yr
• No credit pays an average of $2,182/yr.

Ways to Boost Your Credit Score to Become Eligible for Cheaper Car Insurance
Even if your current credit score is less than perfect, there are ways to improve your credit to take advantage of lower vehicle insurance premiums.

• Routinely check your credit score from the 3 major credit reporting agencies
• Immediately report any errors.
• Always make payments on time.
• Never allow coverage to lapse.
• Establish credit in your name.
• Don’t hesitate to compare insurance quotes; doing so doesn’t affect your insurance score.

Remember that maintaining a good driving record as well as a credit score of 750 or above are the most effective ways to enjoy the benefits of lower auto insurance! While it may take some effort on your part to be responsible, consider cheaper car insurance premiums a well-worth investment into your future!

Related Links to Cheap Car Insurance and Credit

-Insurance Coverage – Basics

-Cheap Car Insurance

-You Credit Score and Auto Insurance

compare|Credit Score, Insurance Basics, Insurance Tips| 02 28th, 2012|1 Comment »

Many drivers don’t realize the importance of a Car Insurance identification card until the unfortunate event of being involved in an accident, especially in fender benders in which they are at fault.  It’s also possible when being pulled over during a traffic stop to show proof of vehicle registration and Car Insurance coverage.  Also, it’s mandatory before leaving the scene of an accident to provide some form of verification that you’re properly insured to both the state police and any other parties involved.

An auto insurance card is simply some form of documentation from your insurance company verifying the basic details of your current coverage.   Usually, the ID documents are small enough to fit into your wallet; however, it’s recommended to store the ID safely in your vehicle’s glove box.  It’s important to keep the ID in the correct vehicle, using the VIN to correctly identify which ID card belongs in which vehicle.

Upon purchasing auto insurance, your agent will provide you with an insurance ID card for each vehicle covered on your policy.  Generally agents provide a temporary card, and then mail a permanent ID along with your policy within a few days of buying insurance coverage.  Other insurers, however, don’t provide policyholders with instant temporary ID.  In such situations until you receive the proper documentation, keep your insurer’s name and contact information in the insured vehicle in case of an accident. Fortunately, some states are opting to rely on an electronic- database tracking system to verify current insurance coverage.

What’s listed on an ID Card?

Although various companies handle the distribution and the specific information that’s included on Car Insurance ID cards, the following are basic details that are printed on most ID cards:

•    Name of the Car Insurance company
•    Name of insurance agency in which coverage was purchased
•    Date insurance went into effect
•    Date insurance expires
•    Policy number
•    Named insured covered by the policy (it’s possible for additional drivers to also be listed)
•    Make, model, and year of the vehicle covered
•    VIN number of vehicle covered.

It’s important to keep in mind that your Car Insurance ID card may not list every driver included on the policy.  For example if you give your friend permission to drive your car to work, the friend would be covered; however, your Car Insurance link to policy is considered secondary to your friend’s coverage.

If you have additional questions about obtaining a Car Insurance ID card, contact your agent or insurer for more information.

Related Links to Auto Insurance ID Cards

-How do you print Insurance Cards?

-What is an Auto Insurance ID card?

-FREE quotes from Auto Insurance ID

compare|Auto accident, Insurance Coverage, Insurance Tips| 02 13th, 2012|No Comments »

Although you may be a safe and responsible driver, accidents do happen that can negatively affect your insurance coverage.   Depending on the traffic violation and state laws, the consequences are often felt in higher premiums or even potentially cancelling your insurance coverage altogether.  While non-moving violations such as a parking ticket usually don’t affect coverage, several minor moving offenses occurred within a considerable short amount of time can prove as detrimental as one serious violation.

Understanding How Points Impact Insurance Coverage

The Department of Motor Vehicles (DMV) applies a point system to reflect any incurred driver infractions. Insurance coverage and premiums are based on your driving record, and any traffic violations on record.  Obviously the more points you have on your record, the more you can expect to pay for insurance coverage.

The point system varies among states and insurance coverage providers when calculating points incurred from traffic offenses.  In general, however, major infractions carry the maximum amount of points that go against your driving record.  For example, a DUI may carry up to 12 points, whereas a speeding ticket may only rack up 2 points.  Insurance providers typically review your driving record about twice a year or whenever your policy is up for renewal.  Traffic violations remain on your driving record for 3 years, although the duration also varies according to state laws.

Also depending on the state and infraction, it may be possible to attend a defensive driving course to erase points from your record, as well as prevent your insurance coverage rates from dramatically increasing.  If you accumulate a specific number of points within a certain time frame, don’t be surprised if you find your license suspended.

Tickets Sure to Catch Your Insurer’s Attention

Due to various state motor vehicle laws, there’s nothing set in stone regarding what does or doesn’t affect insurance coverage, however, the following tickets are almost always a guaranteed to negatively impact your vehicle insurance coverage:

•    Driving under the influence of alcohol or drugs
•    Responsible for an accident
•    Reckless driving
•    Racing
•    Intentionally fleeing the police
•    Leaving the scene of an accident
•    Driving with a suspended or revoked license
•    Speeding  (assuming it’s your first in 3 years)
•    Driving illegally on a one-way street or wrong side of the freeway
•    Driving without insurance.

Traffic Tickets that Incur Less Points

While the tickets listed above carry the most points that go against your insurance coverage rates, the following infractions have a lesser impact on premiums:

•    First speeding ticket
•    Driving with an expired or restricted license
•    Expired vehicle registration
•    Driving in a HOV lane
•    Failure to wear seatbelt
•    Failure to secure a load on your vehicle
•    Broken tail light or cracked windshield
•    Loud exhaust/muffler
•    Littering while moving.

It’s always a good idea to check with your insurance coverage provider to review your driving record periodically or if you have questions or concerns.

Related Articles on insurance coverage:

-Car insurance coverage definitions
-Department of Motor vehicle and auto insurance
-How tickets affect your insurance coverage

compare|Driving Tips, Insurance Coverage| 01 30th, 2012|1 Comment »

Are you thinking of going in for direct auto insurance? It will be advisable for you to go in for quotes from multiple insurance companies. In order to get maximum benefits, try to choose the most appropriate direct auto insurance quote by comparing multiple quotes. When you succeed in doing this then in the long run you will not only save money but also get coverage from a very comprehensive policy with the best reasonable premium. While making your own comparisons by going through the fine print that is offer in any direct auto insurance quotes at your disposal, with this together you will be able to understand very well and clearly what you are in for and not only depend on any gullible talk by agents and brokers.

For those people who are in position of more than one car, I will advice them to go for multiple quotes, reason being that different cars have different policy requirements. In the event of comparing multiple quotes when it comes to the most affordable direct auto insurance quote, it will be wiser to go for an insurance company that offers the same premium uniformly for a particular type of insurance in every state. Thus even if you are going to different states, the rates will always remain the same.

Providing your personal details information when you are going to obtain multiple insurance quotes online, will go a long way to make the information zipped to most websites belonging to various insurance companies in the order to bring you the most affordable deals. That notwithstanding, some sites may not be referred to for the best results thus in this case you must bring the quotes together in order to maximize the spread of quotes to get your hands on the highest number of quotes in record time for comparison. This way you can zero-in on the best direct auto insurance quote.

To go further, make sure that you provide details such as your profile, driving history, social security number, make, model, age of your vehicle, payment method, etc. all correctly so that the quotes you get to compare are specific to your profile details. The main point to compare is the premium offered depending on the type of coverage presented. In the event of comparing quotes to get the appropriate direct auto insurance quote, it will be necessary for you to understand that the cheapest quote provided to you might not always turn out to be the best since it might have hidden costs or may not be comprehensive enough and barely cover the basic requirement.

After a few quotes are short-listed that meet all the criteria you are looking for, you must do a background check on the companies providing those quotes to get an idea about their reputation in the market. To be able to save on car coverage, make sure you do your research and evaluate what insurers offer you. It can make all the difference on your auto insurance coverage bill month in and month out.

compare|Compare Insurance Quotes, Insurance Quotes, Insurance Tips| 01 26th, 2012|No Comments »

If you have ever been in an auto accident, then chances are you have a greater appreciation of your auto insurance and provider. Yes, auto insurance coverage can be expensive, but so is the alternative. However, as the cost of living continues to rise, perhaps you are considering lowering the amount you spend on auto coverage. While this is a plausible budget solution, be sure that you have made sure your auto coverage includes the basic forms of protection. There are 7 types of auto Insurance Coverage that you should have. To help you determine if you have the Insurance you need, here is a basic description of each type of coverage.

Types of Auto Insurance Coverage

1. Property Damage Liability Coverage – This type of Insurance protects you if your vehicle causes damage to someone else’s property. Although this is most often their vehicle, it also covers structures, landscaping elements or other property.
2. Bodily Injury Liability Insurance – This coverage option covers other people’s death or bodily injury for which you are responsible. In addition, it can be used to provide legal defense if another party involved in the accident take you to court. Claims that pertain to bodily injury lawsuits include medical bills, loss of income and pain and suffering of the other involved party, not you personally. Liability Coverage is required in most states.
3. Collision Coverage- This type of Insurance Coverage is for vehicular damage caused when your automobile hits, or is hit by, another vehicle or object. It pays to repair your vehicle, less the amount of the deductible you choose. This form of auto Insurance Coverage is not necessarily required, except in cases where the vehicle is rented or leased.
4. Underinsured Motorist Bodily Injury – If the person who hits your vehicle has insufficient Insurance Coverage to provide for injuries, death or damages to your family and passengers, this insurance policy makes up the difference, up to a pre-set amount.
5. Comprehensive Coverage Insurance – This type of coverage protects your vehicle(s) and occasionally those of someone else (scenario depending) in situations other than a collision. Examples of this coverage are damage caused by flood, fire, animals or theft. While it is not required to have collision insurance, if you rent or lease a vehicle, most of these companies will require it.
6. Uninsured Motorist Bodily Injury- When you are not at fault for the accident, but the offender has insufficient Auto Insurance this coverage option will cover members of your household and passengers for injuries, damages or death caused by the other driver’s negligence. This is also used in scenarios where the other driver has no insurance.
7. Uninsured Motorist Property Damage- This insurance policy is applied in situations where the offender caused property damage and has none/minimal coverage. It typically pays up to a specific amount (varies by state) based on the policy.

Having sufficient Insurance Coverage is simply part of being a good driver. Yes, it is an expense but it is not something that you can afford to skimp on. If you are shopping for new auto insurance, do your homework carefully so that you have all the types of Insurance Coverage you need.

Related resources for Coverage of Insurance

-Definition of Auto Insurance Coverage
-Car Insurance Coverage options – AllState
-Liability Insurance covered in detail
-Coverage characteristics of auto insurance

compare|Compare Insurance, Insurance Basics, Insurance Coverage, Insurance Tips| 01 16th, 2012|No Comments »

Whenever you’ll purchase an auto insurance policy, you must try to find out whether or not your policy includes gap insurance coverage. It’s because, your car value depreciates with the gradual progress of time. If you have brought a new branded car, then you must purchase gap coverage. Otherwise, your insurance company will reimburse you the depreciated value of your asset and you have to be responsible to repay the remaining loan. But with the help of this coverage you’ll be able to get the remaining amount to repay your auto loan. Try to know certain facts about this new coverage.

-Is it possible to get a gap insurance coverage without purchasing the primary auto insurance coverage?

If you have purchased a gap insurance coverage, you have to purchase the minimum auto insurance coverage required by your state. According to the auto insurance laws of your state, you surely have to purchase at least bodily injury liability and property damage liability coverage. In order to take advantage of the gap insurance coverage, you have to purchase a collision and a comprehensive coverage.

-Is it possible to get a gap insurance coverage on a loan that is not specifically used for a vehicle like the Home Equity Line of Credit (HELOC)?

It is not possible for you to get gap insurance for lines of credit which you’ll utilize for other purposes than a vehicle. You cannot take advantage of the gap insurance for mortgage loans, credit lines or other types of loan payments. Suppose, if you have used money from home equity line of credit to purchase your vehicle, then gap insurance will not help you to cover this type of loan as HELOC is not specifically meant to use for auto loan.

-Is it possible to purchase a gap insurance coverage for a car if you have to take out an auto loan from a private person?

If you have taken out an auto loan from a private individual instead of a reputed financial institution such as banks or finance company, then you won’t be able to take advantage of this coverage. It’s because a private loan lacks the proper structure that any financial institute provides and is required by the insurance company to provide you the benefits of gap insurance. If you take out a loan from a private party, then it becomes tough for the insurance company to become assured of the fact that whether or not, you have taken out the loan only for the vehicle.

Thus, it’s quite essential to have proper knowledge about the above mentioned facts. This will help you take the necessary preparations avoid the mistakes before you include this special coverage in your auto insurance policy.

compare|Insurance Basics, Insurance Coverage| 12 21st, 2011|No Comments »

Smiles for Your Miles: Winter Driving Tips that Can Save You Money on Auto Insurance

In regions where snow and ice are a common occurrence, it is always important to know how to arrive safely at your chosen destination. This is important to your physical well-being, but also because safe winter driving will equal better auto insurance rates. Accidents happen year round, but during times of inclement weather-especially like ice and snow- they are more common. So what safe winter driving precautions are recommended by auto insurance providers? After all, as auto insurance providers, they have a vested interest in seeing that you are a safe winter driver. Here are some winter driving tips, collected from various auto insurance companies to help you stay safe while driving this winter.

Preparations for Safe Winter Driving

1. Vehicle maintenance- Before you begin winter driving, be sure your battery is fully charged, in good operating condition and that filters, hoses, coolant, etc. are in good shape so that safe winter driving is easier.
2. Make frequent tire checks-Look for any signs of wear, changes in air pressure and perhaps add snow tires. If your tires are not in good condition, then safe winter driving is much more difficult.
3. Take a brake. Be sure your brakes, brake pads and pedal all work smoothly and efficiently. A good brake system is an important element of safe winter driving.
4. Studies show that winter tires are more effective at preventing accidents during the winter than all-season tires. Better traction means safer winter driving.

Safe Winter Driving in Action

Once you have ensured your vehicle is safe winter driving ready, you can load up and begin your assorted trips. Here are some safe winter driving habits that can help you keep you safe and auto insurance rates down.

1. Always clear the snow from your vehicles roof and windows before pulling out of your parking location to prevent causing and accident.
2. Watch for black ice. Sometimes called glare ice, this is one of the most dangerous elements of winter driving.
3. Safe winter driving also includes knowing, when or when not, to use your brakes. For example, hitting black ice is not a time to touch—especially slamming on- your brakes!
4. Safe winter driving requires an informed winter driver. Check road conditions before leaving your home.
5. Adjust your driving based on the road conditions. The safe winter driver is one who is less concerned about always being on time and more interested in arriving safely.
6. Warming up your car before driving it is not just beneficial because it means you have a warm vehicle interior, but it also helps lubricate the engine parts. Less wear and tear equals safer winter driving.
7. Be seen! For safe winter driving be sure that your headlights and taillights are bright and turned on.

Safe winter driving is more than just keeping your auto insurance rates down, it is about keeping you and others out of danger. Take the time to do these preventative maintenance suggestions and to implement these safe winter driving tips, so your winter driving memories will bring smiles to your miles.

compare|Driving Tips, Insurance Basics| 12 11th, 2011|No Comments »

Slam! Crash! Crunch! There are few things worse to hear when driving than the sounds of an Car Accident. Unfortunately, Car Accidents and what they can do to one’s auto insurance are not fun, but are a part of life!

Regardless of who was at fault, dealing with an Car Accident and its repercussions can be somewhat stressful-especially if you are the injured party! However, being prepared in the event of an Car Accident is one of the best things you can do to make this potentially high-stress situation easier. Nevertheless, one of the most important things to do after an Car Accident is stay calm.

What to Do If You Are in an Car Accident?

Once the Car Accident has occurred and you have determined that everyone is okay, take a deep breath, and then do the following:

1. If no one is injured and damage is minimal, move off the road to avoid causing another Car Accident. If the vehicle cannot be moved stay in the vehicle –wearing your seatbelt- and wait for help to arrive.
2. Be sure to exchange auto insurance information with the other driver. Get the name, numbers, address, Car Accident policy info, make and model of the car.
3. Take photographs of the vehicles involved. If you can, sketch out where the vehicles were when the Car Accident occurred and write out how the Car Accident occurred.
4. Once the officer(s) arrive on the scene, get their name and find out when the Car Accident report will be available so a copy can be sent to your insurance provider.
5. If anyone witnessed the Car Accident, be sure to get their names, contact info and ask them to write down what they saw. These will be vital if there is a discrepancy in driver descriptions of the Car Accident. However, do not try to influence their statements/sketches of the Car Accident.
6. Always file an Car Accident report so the Car Accident insurance claims process is expedited; be sure you know what your Car Accident insurance covers.
7. Call your insurance agent, report the Car Accident, a.s.a.p. and find out if there is a time limit for filing an Car Accident claim. In addition, while some people may choose to not report minor bumps or scrapes, in the event that the other party chooses to report the incident you could be caught in an expensive lawsuit—that could become much worse if you failed to report the situation.
8. If there are significant damages or serious injuries, you may wish to call your attorney.

Having an Car Accident is never pleasurable or an experience that most of us want to repeat. However, it does not have to be a traumatic event. When you know what to do, dealing with the aftermath of an Car Accident is much easier. So, the next time you are involved in an Car Accident, don’t panic. Just take a deep breath then proceed as explained.

TAGS: Car Accident, Compare car insurance, Auto insurance quotes, Compare insurance companies

compare|Auto accident, Insurance Tips| 11 2nd, 2011|No Comments »