Category Archives: Insurance

Auto Insurance 101 Explained

For majority of consumers, auto insurance can cause confusion; there is an extremely wide range of insurance and it can be hard to recognize the kind of coverage you need to carry versus the kinds of coverage which you truly need to carry so as to shield yourself, but are not necessary.

How to Select Vehicle Insurance

When thinking of the amount of car insurance you need, it is ideal to carry out some study and discover what kind of insurance is needed by the state where you live.

Not each state needs similar rates of insurance. Some states need more kinds of insurance compared to others and states are different also, in regard to the quantity of coverage which is needed.

car-insurance-2016Therefore, be certain that you are aware of precisely what minimums are present in the state you reside. Also, you need to comprehend what varied kinds of insurance cover are present, so as to comprehend whether you require insurance coverage over and beyond the required minimum of the state you live.

Injuries are covered by bodily injury liability which you inflict on another person as you drive your car. In general, where this kind of coverage is concerned, it is normal to buy more than one; this is state minimums requirement (where you live), so as to shield your personal goods from being sued in case you cause harm to someone.

Personal injury protection popularly referred to as PIP or medical payments covers treatment of harm for the passengers and driver of the car. This kind of policy shall recompense lost wages and medical payments; this is determined by the rate of coverage.

Collision covers whatever destruction happens to your car in case of an accident, regardless of whether you are at fault. Obviously, a deductible shall be applicable. Your lender shall in overall, need this kind of coverage while you still have an outstanding loan on the car.

Comprehensive coverage caters for the loss of your car because of destruction by something, apart from a collision; for instance fire, theft, vandalism, natural disaster, etc.

Once more, your lender shall possibly need this coverage for a financial car. After your loan is repaid, you are the one to decide whether you desire to go on operating comprehensive and collision coverage.

Motorist coverage (uninsured and underinsured) can be useful in case you are involved in a hit and run or if someone hits you and they lack insurance or are underinsured.

When debating on the amount of insurance to take out, begin with the minimum quantity required by your state then ask yourself whether it is a requirement for you to take out any extra coverage because of lender requirements.

Keep in mind that however much we all wish we did not require insurance, in case we do, it can save on finances

Lastly, remember to weigh your options in regard to deductibles. Increasing your deductible can assist you to reduce your premiums and that can facilitate you taking out more insurance which is cheaper.

Simply ensure that you are able to fairly manage to pay the deductible in case you require utilizing it.

If you want to know more about car insurances you should give these sites a visit:

DMV.org – Very informative site. US Focused.

California Department of Insurance

Bilforsikring –  This site is Danish. But none the less it has a  number of interesting articles on car insurance. Use Google Translate if your Danish is not up to date 🙂

HDI.de – Another European site that you may find interesting.

Used cars and insurance

car inusranceBuying a used car is something most of us have done or will do at some point in our life. Whether it’s our first car in high school or a replacement for an old one that bit the dust, used cars come in handy. Of course, as with owning any car having the right insurance is just as important as finding the right car

Used Cars

 There are a few things that one has to consider when buying a used car. When buying from a dealer, generally you can expect a better quality and more confidence in your purchase. This isn’t to say that buying a car from an owner directly isn’t an option but a lot more homework is required. For example, a history of any major repairs, accident reports, the last time the vehicle received a scheduled checkup, etc are good information regardless of who you are buying the car from. However, a dealership will have better access to this information than a direct owner might.

Car insurance

Not all car insurance is created equally. Having car insurance for a newer car vs a used car are two different policies. For new cars most dealerships offer a manufactures warranty on the vehicle up to a set window of time and/or miles driven. This helps keep the insurance rates down as any major issue most of it could very well fall under this warranty meaning the insurance company does not have to run the risk of having to pay. For a used car, a warranty isn’t always a given from the dealership which is why the insurance will generally be far greater for a used car than a new car. Additionally you might need more protection with a used car than a new one. Such as window replacement, towing coverage, along with other possible amenities. All of this increases your overall insurance for the vehicle.

Some great links to read more about car insurance are:

Bilforsikring (In Danish) – You can use Google Translate. It works fine

Wikipedia – Vehicle Insurance

Confused.com – find the perfect car insurance

Gov.uk – Information on car insurance from the UK government

Conclusion

While buying a used car will typically be far cheaper than buying new, there are some pitfalls to beware of. Additionally knowing your state and federal laws regarding the sale of used cars can help you avoid potential scams or false sales. In this day and age owning a car is practically a necessity especially for certain parts of the country. For this reason having the proper insurance for your car will protect you and your family as well as add some extra piece of mind with owning and operating your car.