General Myths Surrounding Auto Insurances

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Auto InsurancesIf you own a vehicle then it is absolutely necessary that you acquire auto insurance for it so that the vehicle is covered in the event of any damage, accident or loss. The importance of auto insurance cannot be undermined especially if you have availed a loan for buying the vehicle. There are certain misconceptions that majority of the people have regarding auto insurances. This article will highlight some of these myths so that you can dispel them immediately.

Myth 1: Auto insurances cover all kinds of damages that can happen to a vehicle.
This is not true because auto insurances are of many different kinds which provide cover for certain damages and not for all types of damages. No auto insurance policy can provide full coverage. You have to acquire a variety of auto insurance policies to get an almost full coverage for your vehicle.

Myth 2: Full coverage auto insurance policies will provide cover to a vehicle when it being utilized for any kind of work.
In actual fact, these full coverage insurance policies will offer protection to a vehicle only if it is used for personal purposes. You will have to buy commercial insurance policy to cover your vehicle when it is used for commercial purposes.

Myth 3: Auto insurance is costly for elderly drivers.
Well this myth is also false. Elderly drivers are given discounts for their policies because they have more experience and can avoid accidents more easily than the young drivers.

Myth 4: Military officers have to pay higher interest rates for the auto insurance.
This is another myth that needs to be dispelled because in reality military officers pay lower rates than the rates paid by any common man.

Myth 5: Auto insurance for red vehicles is costly.
Remember color of the vehicle has nothing to do with the costs of the auto insurance policies.

Tips for making claims for car insurance settlement

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car insurance settlementBeing involved in a car accident is not a pleasant experience for anyone. If the injuries that you have sustained are grievous; the accident can actually shake you to the core. Added to that is the worry about the damage that your car sustains. If you have a car insurance then you can obviously make claims to your car insurance provider but it has been seen that at times settling the claims become a cumbersome affair and you need to go through a fair bit of trouble to reach a favorable settlement with your insurance provider. If you want a favorable settlement on your car insurance claim then you will face to make sure that you follow the right procedures while making the claim. You should also know how you can negotiate properly for the claim that you make. Here is some help.

For starters, when you want to negotiate a car insurance claim you will first have to send a letter of demand. The value of the claim that you are making must be mentioned in the letter; but mention the value only when you have a clear idea about it. To support your claims you will also have to furnish supporting documents like the estimate of the cost to be incurred for repairing the damages and photographic evidence of the damages. Other supporting documents might be required as well. The insurance companies have insurance adjusters who will try to counter and reduce the value that you quote in the letter of demand and if you think that you will not be able to argue with the adjuster well then you must hire an insurance lawyer. The lawyer will be able to argue your case better. However, you might need to write a second letter of demand and then take up the matter with your state’s Department Of Insurance if your claim is not granted.

Tips to achieve affordable auto insurance rates

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auto insurance ratesMany car owners stay away from auto insurance fearing high rates. But car insurance is essential to assure the security coverage for your treasured car and the best part affordable car insurance is actually possible. Here are some tips that can get you inexpensive car insurance rates.

First of all, you must know that insurance rates are less for the gentle drivers. Thus, if you can take up a safety driving course from a reputed driving school, your safety driving certificate can get you lower auto insurance rates. You should also maintain a clean driving record.

Then, another important tip is to equip your car with safety features like immobilizers, theft alarms etc. When the car is safe, it’s less likely to be stolen by thieves and hence the owner would be less likely to ask for compensation from the insurance company. Hence cars powered with safety features can earn low insurance rates.

Why should you get car insurance?

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A car is no more a luxury but a necessity that almost every household invests in. Depending on the budget, people opt for new or second hand cars of their choice. But most people make the mistake of not buying insurance for their vehicle. The reason behind purchasing insurance is simple – your car is an asset that needs to be protected against unforeseen situations just like your home, office and life.

With the ever-increasing number of road accidents, your car faces a high level of risk. In the case of an accident, a motor insurance policy will safeguard you by offering to repair and replacing the damaged parts. The insurance market is flooded with innumerable policy options depending on your car type, financial constraint and requirement.

You must conduct an online search to better understand the benefits and types of policies available. Further, you can easily get online access to auto insurance quotes and purchase a policy.

All you need to know about car insurance quotes

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A car is very advantageous for everyone. But along with the advantages it also has some risks involved. To avoid all this it’s best to get an auto insurance for your car. This would protect you and pay your credit payments for car repairs, medical bills and other expenses if you have a car accident.

So to get the best car insurance quotes, you have to do a bit of research work. There are lots, literally many companies available who provide you with these loans with a combination of various interest rates. You need to compare, review the interest rates offered to get the best one. You should also make sure that the company you depend on for these loans is compatible with your country’s rules. This is an important factor. And ensure that your company is legal in all terms. Surely searching for some auto car insurance rate perfect for you is not an easy task after being spoilt by so many choices, but your search will benefit you in the long run.

How to get your car insured online

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Are you planning to get your car insured online? This can really be a tough job, if you are a novice regarding this issue.One thing you should know is that, theauto-insurance rates which you opt for is determined by your credit score. Besides this, your premium also depends largely upon the type of car you have.

Before you go about purchasing a car, you should request the concerned insurance company to give you the details stating the difference in premiums, regarding the different cars you are taking into consideration. Know about what coverage the insurance company will provide and understand the needs of your car. Then you will understand what kind of insurance you need for it.

You can also go online and check out all the sites which offer such insurances. Reading reader reviews and personal experiences of past customers help a lot too. Next, check up on the sanctity of the site. Once you are through all the mentioned steps, go ahead and get your insurance.

Speed, Safety and Cell Phones

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According to the results of a research conducted by the Center for Auto Safety and Public Citizen on the safety effects of using cell phones and other wireless communications devices while driving, speaking on mobile phones while driving poses a higher risk of road accidents than drink-driving.

This observation has been seconded by a group of researchers in Utah who claim that drivers are more accident-prone while talking on their mobile phones – even hands free models – due to the inattention blindness induced during a telephonic conversation that increases their reaction time and reduces their ability to process visual information promptly.

These studies seem to have struck a chord with the US government which issued the new Wireless Communications Device Law, effective from January 1, 2009, which intends to regulate the use of wireless communications devices in motor vehicles. As per the law, the state considers it an infraction to write, send or read text-based message on an electronic wireless communications device, such as a cell phone, while driving a motor vehicle.

Though all agree that talking on a cell phone while driving is not only distracting but dangerous as well, not much has been done to change it. However, a number of insurance companies have decided to start charging higher premiums from their clients if they get caught talking on the phones while behind the wheels.
If you do not want to feel the pinch of such policies on your pocket, it would be wise to invest in a range of hands-free auto accessories that are available in the market. There is a wide range of cell phone devices available for people who need to stay connected on phone but constantly worry about taking a call while driving and having to pay a penalty for the same.

You can select from a wide array of cell phone car-kits, hands free devices, headsets, speakers, speakerphones and other automotive phone accessories so that you can drive with both hands even while attending a call. This will provide hands free mobility for you while driving, allowing you to talk and drive safely at the same time.

One of the key features that you should look for while buying hands-free auto accessories are that it should be compatible with multiple cell phone systems such as CDMA, TDMA, GSM, AMPS and PHS. Moreover, the car accessory kits that usually include a speaker phone, a headset and a hands free device should have echo cancellation and noise suppression feature, adjustable volume, earphone jack for privacy and a good quality holder, which preferably rotates 180 degrees for greater comfort while handling calls.

These hands-free car kits (HFCK) generally use Bluetooth as their wireless technology and include headsets as well as personal navigation devices (PND). Some of the latest HFCKS are equipped with voice recognition feature and allow the driver to connect to his or her phone even if it is left in the pocket, purse, backpack or briefcase.

With technology geared to add to the comfort of everyday life, this new generation of communication technology will definitely help keep the drivers’ hands on the wheels and their attention on the road.

Insuring a Modified Vehicle: No Two Cases Are Alike

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Just as no two modified vehicle are alike, no two visits to the insurance man to protect those cars will turn out the same way. Insurance companies are in the business of assessing and essentially betting on risk. Many factors go into those assessments — age, gender, driving record, and occupation to name a few. Owners of modified vehicles should be prepared to document all alterations made to their cars and to argue on a case-by-case basis for each. Facts are your friend in insuring a modified vehicle, followed closely by attitude.

First, do not, under any circumstances lie about a modification. Full disclosure is an absolute must. If you do not disclose a modification the company is within its rights to terminate your coverage in the event of an incident. The company can claim that any change, even something as simple as changing out the front seats, alters the driver’s perception of the road thus creating an unsafe situation. The only way to counter that is to disclose the change with full documentation of exactly how the modifications affect safety and driving performance.

At the same time, while you should not lie, you should also couch your disclosure in terms the company wants to hear. A change that increases rpms and horsepower to enhance speed, while sexy to your ears translates to fast, reckless driving in the insurance world with a greatly increased chance of an accident and claim. Talk in terms of engine efficiency. Downplay the speed demon aspect of the change or emphasize that it is for on-track use only. Make it clear that the vehicle is always securely stored and not driven daily. Show proof of membership in a car club or an enthusiast organization to illustrate that you value the car. Highlight the presence of theft deterrent systems like GPS tracking and monitoring.

Be prepared to negotiate every change individually and realize that some changes may counterbalance others. An improved braking system, for instance, may take some of the premium sting out of an engine modification that enhances speed. But also, be realistic. Some things the insurance company will not like no matter what you do. It’s hard to make a case for the safe use of a roll cage and a nitrous oxide injection system. If, however, that equipment can be removed for off track use, you may be able to negotiate a better rate.

After each modification, apprise the insurance agency of the change and review the terms of the policy. Be sure you understand the following insurance terms:

Actual Cash Value: A policy that will pay benefits at a depreciated “book” value. Modifications will not be covered.

Stated Value: A policy that accepts a value for the vehicle at the time the coverage is written but that does not bind the company to using that value in determining a claim payment.

Agreed Value: The only policy that gives the owner a complete return on modifications. Coverage considers the cost of totally rebuilding the car with identical specifications.

The most important thing to remember in a modification scenario is to never let the policy languish. In essence “modify” the coverage every time you modify the car. Disclose everything. Document everything. Be prepared, if necessary, to educate the insurance company. Be reasonable, understanding that some modifications are more expensive in insurance terms than others, and shoot for the best middle ground premium that meets your needs and also suits their risk profile.