Reader’s Question:

Do I need to get accident insurance?

Miguel

Miami FL

Some individuals may not need this accident insurance if they have comprehensive health and disability coverage and adequate financial resources to pay for accident related injuries. However, you should still consider obtaining for one if:

• you do not have enough funds to pay for the extra bills associated with the injury
• you can not afford time away from work, and may not have enough savings to keep up with mortgage, credit card, utilities and car related bills
• you want a separate coverage from your employer
• you are your family’s bread winner
• you do not have any form of disability coverage
• your savings are allocated for long-term goals

Accident and insurance will always be related. It can stimulate a person to be prepared and can assist financially when circumstances will occur. But, despite its formidable core of protection and preparedness, accident and insurance should not be overlooked as a medium and an aid. It has to be recognized as important and must not be abused by anyone or else, you might lose your own life along the way.

Reader’s Question:

I am moving from Colorado to Tennessee. I would like to know if my car insurance will increase or not?

Brian

Colorado Springs, CO

The minimum liability limits required in Colorado is

$25,000/$50,000 Bodily Injury Liability
$15,000 Property Damage Liability

In Tennessee the minimum liability insurance required is

$25,000/$50,000 Bodily Injury Liability
$15,000 Property Damage Liability

Both states have the same limit however car insurance rates are still being determined depending on state laws and car insurance provider’s rating system.

Coverage limit depends on what the state law requires. It is thus, a prerequisite if you are moving to know the required coverage limit within the new state, of which the new policy could apply. You can do online research before making some changes on your insurance policy. Determine what is required, and then check on several companies for multiple rates you could compare with. Any changes made on the coverage would also mean changes on the premium rates. Always be on the lookout for discount rates insurers offer online.

There’s no standard pricing set for all auto insurance companies, so the rate would be independent from one insurer to another. This makes the market in auto insurance very competitive. The tighter the competition, that also gives the shopper better options on compensation coverage and premium deals. The buyers’ standards now will be dependent of the company’s rate system for statistically measuring risk for the driver. With application forms available online, you could get quotations from several companies free of charge and compare them base on premium rates.

Reader’s Question:

I’m so tired of paying so much on my car insurance premiums. Is it still possible to get cheap auto car insurance? If it is, how can I get it?

Ruth

Des Moines, IA

Yes Ruth, it’s still possible to get cheap auto car insurance and here’s how you can do it:

• Keep your driving records clean.
• Make modifications on your insurance coverage, drop coverages you do not need. For example, it’s impractical to keep paying for collision and comprehensive coverage for an old vehicle.
• Drive a vehicle that is low profile.
• Make your vehicle safe, have it equipped with safety features.
• Shop around for car insurance quotes. Use the Internet for that.
• Ask for car insurance discounts.

Now, you may be wondering what car insurance discounts you can get. In most cases, these are the insurance discounts that insurance companies offer:

• If there are safety features in your car
• If you are a member of organizations
• If you have a profession that is low risk
• If you have more than one vehicle that you would be insuring
• If you are a senior citizen
• If you have low driving miles in a year
• If you are getting more than one insurance product ( like health or home) from the same insurer

To find out if you can get those insurance discounts ask your insurance agent the soonest possible time. If you can get those insurance discount, it can definitely help you get lower insurance rates and get cheap auto car insurance for yourself.

Reader’s Question:

I’m having financial problems so I need to tighten my budget even more. I’m thinking on what I can do about my car insurance. My friend told me I could choose to have monthly auto car insurance to help me budget my expenses. Please tell me more about this. Thanks!

Kate

Bakersfield, CA

I understand what you feel Kate. We all feel how alarming the economic problems that our country is facing right now. And with this crucial moment, we have no choice but to tighten our budget even more. Saving as much as possible should be our number one goal.

So what other options can you do to lessen your financial burden when it comes to your auto car insurance?

Your fiend is right. One of the options that you can choose is to get a monthly auto car insurance. This may able to help you plan your budget more. Car insurance companies are offering this kind of auto car insurance payment plan. There are some companies that only ask for a down payment for a single month and the rest could be paid on a monthly basis.

Purchasing monthly auto car insurance is good for people who would want to pay their car insurance monthly. Auto car insurance terms vary among policyholders so the length of time on how long you would be paying for your auto car insurance bills on a monthly basis depends on it. If you have auto car insurance policy for three months, six months, or one year then your monthly payment for your auto car insurance could go on for those periods of time.

Auto car insurance for monthly payment is not created equally. There is no uniform price for auto car insurance since auto car insurance rates are governed by numerous factors like your driving records, the vehicle you own, your zip code, and a lot more. So for you to find out the most affordable monthly auto car insurance rate that you could get, check the Web.

Reader’s Question:

I heard that getting higher deductible will give me cheap online car insurance. Can you tell me more about this?

Paul

Des Moines, IA

That’s correct Paul. Getting higher deductibles will give you cheap online car insurance. Let me just explain what a deductible is.

If you get involved in an accident and you file for your car insurance claims, there’s this portion of the claim that you need to pay first before your car insurance providers pays the rest. And that’s what you called the deductible. Below is a scenario that explains what a deductible is all about.

A driver is involved in an accident. And as expected, he would file for car insurance claims. His car insurance claim is $1000. He has a deductible of $100. So he needs to shoulder the $100 personally before the remaining $900 claim is shouldered by his own car insurance company.

That’s how the deductible works. If you were a driver with higher deductible, I’m sure you’ll do your best to avoid getting into any kinds of accident to avoid filing for car insurance claims. Because with higher deductible, you’ll only be required to pay more once you’ve made your car insurance claims. And that’s how car insurance companies view it. They deem drivers who have selected higher deductible as those who would avoid accidents to avoid paying a part of their car insurance claims.

Usually, the kind of car insurance coverage that offers deductible is the physical damage coverage also called as comprehensive and collision. This kind of coverage pays for the damage on your car regardless of who’s the at-fault party. As long as you have this policy, you can be sure that your car insurance provider will cover for the damage on your car.

The usual deductibles offered in the market today are $250, $500, and $1000. For some people, they opt to get lower deductible for comprehensive coverage since this only covers your car from slight problems like vandalism and give higher deductible for comprehensive that covers for collision-related incidents. So some opted to have a deductible of $100 for comprehensive while $250 deductible for collision.

Before deciding on whether you should get higher deductible or not, ask yourself first if you can afford to pay the amount of deductible once the situation calls for it. Also, if you think that you are indeed a very good driver that would not make any car insurance claims and have the financial capability to shoulder your deductible then do so. This is one great way to get cheap online car insurance thus saving on your car insurance bills.

To get more information about cheap online car insurance, ask your car insurance agent or check the websites to get cheap car insurance quotes.

Reader’s Question:

Is it true that I will pay expensive car insurance bills here in Massachusetts because I’m a senior citizen driver?

William

Boston, MA

Yes, it is quite possible for you to pay higher than average car insurance costs because you are a senior citizen. Car insurance companies generally categorize their customers into age groups, and each of these age groups have their own risk level when it comes to getting involved in car accidents. Seniors are not in the best position to avoid auto insurance accidents as they used to be when they were younger, due of course, to the effects of aging such as poorer eyesight, slower reflexes and weaker stamina. The higher your risk, the more premiums you would have to pay for auto insurance coverage.

As a senior driver, however, there are still some effective steps that you can take to mitigate the impact of senior car insurance rates, here’s how:

1.If you don’t feel confident that you can navigate a vehicle through hazardous situations such snowstorms for example, it is best to refrain from driving at all. Getting into accidents and accumulating tickets are the fastest ways to increase your insurance costs.
2.If you can, drive an older or cheaper vehicle. Car insurance costs would be less.
3.Have additional safety and security features installed on your vehicle.
4.Take defensive driving courses.

To look for car insurance companies that can specialize in senior car insurance, as well as offer competitive rates, we suggest using our free auto insurance search tool. This tool is a great way to shop around and compare policies and quote offers, and find the most senior-friendly auto insurance companies in your area as well.

Reader’s Question:

I’ve been wondering: how come some auto car insurance quotes have lesser premiums than other premiums, even though they have the same coverage?

N. L. Piner

Montpelier, VT

If you look closely at the coverage that your different auto car insurance quotes have, you’ll notice that, indeed, the cover the same areas. It’s the extent of coverage limit and deductibles that determines the difference in pricing between these different quotes.

Coverage limit is the extent of cash your insurance company will reimburse for any accidents you may get into. For example: one auto car insurance quote may cover up to $10,000 in property damage, with you paying the rest, while another may cover as far as $50,000 dollars for the damage you inflict. It all depends on the coverage limit of the insurance policy you’re looking up. The higher the coverage limit, the higher the premium of the policy.

Another factor that determines Auto car insurance quote are the deductibles you’re willing to pay. These deductibles are what you’ll have to pay before the insurance company steps in to cover the rest of the expenses. If you set your deductibles up to $500, your insurance company will only reimburse expenses that exceed your deductibles. That means if you incur $1,500 worth of damage, your car insurance company will reimburse $1,000 while you fork the $500 from your own wallet. This inversely affects your premium: the higher your deductibles, the lower your insurance premium. The only problem with high deductibles is that when you do get into an accident, you may not be able to handle the sudden loss of money it’ll take to cover the affected party’s damages.

Reader’s Question:

I am a new driver. I’m quite hesitant when shopping for cheap auto car insurance because I’m afraid that I may be mislead into getting something I don’t need at all. Can you give me some tips that I need to do when buying car insurance policy?

Eden

Sioux Falls, SD

These are some of the tips (if I may add important tips) that my mom advised me when I was getting my cheap auto car insurance for the first time:

First, if you are getting you car insurance policy from a car insurance agent, bear in mind that he is not a friend. I am not saying that you go ahead and treat him like an enemy. What I’m trying to say is for you to realize that he’s there to sell you something because that is how he’s gonna generate his income from. So, he may end up selling you something you don’t really need.

Second, request for an updated copy of your driving record. If you were involved in some traffic violations and you’ve already paid the tickets or have enrolled in driving school to have those tickets removed from you record, make sure those do not reflect in your records anymore;

Third, always remember that the higher the deductible the lower the car insurance rates.

Fourth, give truthful information. Do not even attempt to lie about your driving history because you auto insurance company will surely verify that;

Fifth, avoid getting collision or comprehensive coverage if you’re driving an old car. The rule of the thumb is simple, if the current value of your car is less 10 times of the amount you’re paying for your premiums, then it’s useless to even add those coverages in your policy;

For more information about getting cheap auto car insurance you may check with you department of insurance.

Reader’s Question:

I let my old insurance plan expire two weeks ago, since I swapped in my old car for a brand-spanking new one. I called up my insurance company, but the auto car insurance quotes that this agent’s been offering me have an outrageously high premium! I’ve been with this company for a couple of years now, and I don’t want to switch companies, but the new premium they’re asking for me is just way too high. Is there any way for me to negotiate with him to lower it?

Jane

Denver, CO

That’s strange… you should actually be getting a discount on your auto car insurance quotes rather than it getting raised, since you’ve been a loyal customer. If you’ve gotten into accidents in the past, especially if you’re at fault, then your premium would definitely go up.
But if you’ve been in no accidents in the past, your agent may be pulling one over you. They may have inserted extra coverage in the new policy they’re offering you, so you may have to check your contract clearly. The more coverage you get in a plan, the more you’re going to have to pay.

If that doesn’t work, you may want to consider raising the deductibles from your plan. That means you’ll get a lower premium, but you’re going to have to fish more money out of your pocket if you do get into an accident in the future.

One last tactic you could use would be to get auto insurance quotes from rival insurance companies and present them to your agent. The usual reaction would be to lower their offer to match that of their rivals.

Reader’s Question:

I’ve been browsing around for insurance to slap on my new car. I’ve stumbled across a couple of cheap auto insurance premiums, and they’re looking pretty attractive to me. However, I can’t shake the feeling that there’s a catch. How come other auto insurance premiums are much more expensive compared to other offers? What makes them different?

R. D. Lee

New York, NY

Good question. Some people are often too distracted by the low premiums of cheap auto car insurance to actually check what they’re paying for, while others get the most expensive insurance policies without even considering the fact that they may not even need some of the stuff they’re signing up for.

Here’s one good rule of thumb to check if you’re getting the right insurance policy:

Know what you need, look for it, and get it.

If you want to be insured for everything under the sun that could happen to you and your car, you definitely won’t find it in a cheap auto car insurance policy. If you only need insurance for car accidents, get a plan that only has collision coverage. Skip out on the comprehensive coverage, since it covers non-accident related problems like theft, fire and vandalism.

You may also want to check the other insurance policies you’re signed up for. They may have features that overlap with the car insurance policy you’re planning to get. For example, if your medical insurance covers your own expenses in case of an auto accident, skip out on insuring yourself from an accident.

As long as you know what you need, you won’t have to worry about spending on unnecessary coverage plans or making the mistake of not protecting yourself when it counts.