Auto Insurance Blog

Most Recalled Cars of 2006

Wed, 07 Mar 2007 05:03:47 -0800

Can you believe Honda's popular Civic is making its way to the list of most recalled vehicles?

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How Do Auto Insurance Companies Make Money

Wed, 25 Oct 2006 22:28:39 -0800

Many of you would have insured your vehicle and will be paying your premium regularly. You will also be claiming amount from the insurance company when your vehicle gets repaired or when it meets with any accident. But how many of us know how the insurance company is benefited from this? How does it pay its employees? How does the insurance company make a profit by getting a meager amount in terms of premiums where it has to pay hefty amounts for claims? The fact is that the insurance companies are making good amount of money and are one of the profitable areas of business. Actually the amount the company pays for its claims is very much less compared to the premium it collects from its customers and is thus benefited by the underwriting profit. It is the combined ratio of the company, which is nothing but the loss ratio added to the expenses ratio, which determines the underwriting profitability of the company. If the combined ratio is less than 100% it indicates profit for the company and any thing above 100% is a loss. There are also other insurance companies, which make money on ‘Float’ instead of underwriting profit. This means these companies collect investment income on the money reserved for claims. There are some insurance companies, which manage to make profit even though their combined ratio is above 100%. These companies invest the amount received as premium from the customers and are benefited from the interest they earn before they pay out claims. Actually the return from this investment helps the company to offset any underwriting loss, which naturally results in the company’s profit. But many of these companies, depending on the laws existing in the area where they operate find it prudent to invest in government bonds and other lower risk investments, which may earn lower returns. These companies ensure that the cost of funds i.e., the extra amount it has to pay is less than the returns received from the investments. Although insurance companies mainly depend on underwriting profit, the financial market now expects the companies to earn profit by investing the amount received by them. The fact is that these insurance companies use a wide historical data while figuring out the losses and decide the premium based on it ensuring a certain percentage of profit for them. Further it is always advisable to inquire about different insurance companies before taking policy because the premium rate differs from company to company. So think and ensure that you always choose the company that offers best services with low premium to get the best benefit.

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How To Choose The Best Car Insurance?

Wed, 25 Oct 2006 22:28:39 -0800

Auto insurance is now a necessity for people that own a vehicle. And if you are one of them, it is most likely that you would want to have the best coverage that has the lowest premium. To achieve this, here are a few tips that will guide you in acquiring the best auto insurance for you. Know the types of Auto Insurance You need to start your search by gaining the basic knowledge about the different types of auto insurance which are: comprehensive, liability and collision. Comprehensive auto insurance will cover the repairs or replacement of damaged or stolen vehicle. However, if you want protection against accident and its consequences, you can opt for a liability auto insurance. Because this will not only cover the repairs or replacement for your vehicle, it will also pay for the expenses of injured persons in the accident (ex. medical expenses, lost salary). Lastly, collision auto insurance covers repairs and replacement of a vehicle which collided with another vehicle no matter who is at fault. Keep your Premium low Knowing the types of auto insurance will help you in getting coverage at the lowest possible price. Evaluate which type of coverage you have control or be able to avoid. Then you can cross them out on your list. Those that are left behind are the ones you need to have on your auto insurance. Your premium would also be dependent on different factors such as your vehicle, you and your vehicles age, driving record and place where you reside. If your vehicle is considered one of the safest vehicles, then a percentage of your insurance bill will be cut down. Also, if you have a good driving record (ex. Your record is clear for accidents or moving violations in past years), then you have better chances of getting a low premium for auto insurance. Moreover, moving from one place to another will most likely require you to amend your insurance. Shop for an Auto Insurance Once you know what you need to insure your car, its time to look for the best offer. Companies may sell insurance policies either directly or indirectly (which is usually done via agent). Direct method can be less expensive but may have higher requirements. But regardless of the method that you plan to take, you need to know the background of the prospect insurance company. An insurance company is a good choice if: • it has good reviews in the market • it is credible by living up to its promises • It has great quality service • It is financially stable But knowing these things is not enough, you need to validate the information from someone you personally know and who had made transactions with the same company. Then, identify what each insurance company offers. You can first do your search online. Look for auto insurance search site that will make this job easy and will direct you to specific insurance company sites. Gather all the information you need in a notepad or word document. Once you are done with your online research, it’s time to call or walk in insurance company offices that you haven’t visited online. Now you have gathered all the necessary information, you can now select the best auto insurance by answering this question “Which is the most reliable auto insurance company that offers great coverage at a reasonable price?”

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How To Get Motorcycle Insurance?

Wed, 25 Oct 2006 22:28:39 -0800

If you own a Harley, Yamaha, Honda or other fine bike you are probably very proud of your wheels. Bike prices are skyrocketing in the face of more motorists deciding to take to the streets in search of the ultimate riding experience. How well insured are you? Are you satisfied with your current motorcycle insurance? Just because your auto insurance is with one insurance company doesn't mean that you'll get the best deal on motorcycle insurance with them, therefore it is important for you to shop around for competitive quotes for your cruising or touring bike. Let's face it. Not every auto insurance company will offer motorcycle insurance. You could have the best auto insurance plan available for the buck, but learn that motorcycle insurance isn't even covered by the company. Or, if it is covered, rates are through the roof as your insurer simply doesn't want to cover the risk involved with riding. Whatever the reason, you may want to shop for motorcycle insurance separately from your car insurance. This insurance should offer a wide range of options including: Damage to your vehicle Theft of your bike Vandalism of your ride Collision insurance In addition, towing and labor can be included with your plan or medical payments and even additional coverage for special equipment such as exhaust pipes, side cars, and more. Choose the deductibles that work best for your needs. If you don’t ride your bike all that much, particularly in colder weather, make certain that you insurance representative takes information into consideration when quoting you a rate. Why pay for extra insurance if you only ride your bike six months out of the year? If you find that the rates quoted to you are still too high, you may be overlooking additional available discounts due you including: the successful completion of a motorcycle safety course you had previously taken and your riding association membership. In many cases you can receive additional discounts if your homeowners insurance and auto insurance are through the same company. Savings of ten percent or more on all of your insurance is possible if you bundle your insurance through one provider. Finally, check with other riders to find out who is insuring their bike. You could be overlooking an important opportunity that others are already taking full advantage of, but are willing to share that information with you.

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Can Online Auto Insurance Quotes Save You Money?

Wed, 25 Oct 2006 22:28:39 -0800

There are many factors that are taken into account by the top auto insurance companies when evaluating what premium they will charge you for your annual auto insurance cover. Some important facts to the total auto insurance premium you will pay for your auto insurance premium are age, genre, past motoring experience and occupation. Auto insurance in the United States is an important and compulsory part of the motorists ongoing motoring cost and when buying a automobile you should allow for this cost as it can be quite an expensive amount depending on the driver. It should be noted most of the factors taken into consideration for calculating a auto insurance premium are fairly standard worldwide procedures and will apply to you as a automobile driver where ever you may live throughout the globe. A persons age is one of the most important factors in calculating a auto insurance quote as proven statistics held by the auto insurance companies show evidence that in general younger drivers are more likely to be involved in an accident compared to an older driver. It is certainly proven that female automobile drivers are less likely to be involved in an accident and therefore cost the auto insurance companies less payout compared to a male driver. Past motoring experience such as the number of years you have been driving without being involved in a auto related accident, and without receiving police endorsements for auto insurance related incidents such as driving without insurance, driving while in-toxicated, relclis driving or speeding is also a major factor in the car insurance quote process. When first obtaining your car insurance quote whether online or offline it is of the most important to provide the car insurance company with all the relevant facts regarding your auto history as this is the basics upon which your auto insurance premium will be based upon. If accepted by you will be the information written down on the auto insurance proposal form, this proposal form is the legal contract between you and your auto insurance company and is signed by you stating that all the facts you have provided are correct. You will find that by obtaining auto insurance quotes from several auto insurance companies that your annual premium can be vastly different from company to company and therefore it is in your own interest to shop around to find which auto insurance qoute suits you best, always bearing in mind to find out not only the annual auto insurance premium but also what cover is provided by the auto insurance companies for your money.

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Four Sure Ways To Reduce Your Auto Insurance Premium

Tue, 10 Oct 2006 04:57:27 -0800

Increase Your Deductible When you apply for auto insurance, one of the decisions you'll have to make is how much your deductible will be, which is essentially how much you are willing to come out of pocket in the event of an accident. If the accident results in damages that require more than your deductible, your insurance company will cover the rest so in their eyes, a higher deductible makes it more likely that they will be "off the hook". They reward you for that by reducing your premium so for a lower premium, increasing your deductible is certainly an option. Just be sure you have the cash on hand to cover those expenses in case an accident does occur. This also means not having any insurance claims on your record since that will obviously make the insurance cautious about doing business with you. Add an Anti-Theft Device This can help save you a few dollars per month as long as you purchase a system that your insurance company recognizes. It would be a good idea to check with them to see what the requirements are or if they have any recommendations on particular makes and models. In addition to the lower premiums you'll enjoy, you can also rest easy knowing that your car will be a much harder target for thieves once you add your new alarm system. Enroll in a Defensive Driving Course This can also save you a bit on your payments but much like the anti-theft suggestion, you'll want to be sure that your insurance company recognizes the course and that it's approved. They might even be able to recommend some training facilities in your area. Compare Rates Online Quotes from different auto insurance companies can vary wildly, even for the same driver and same car. Since that's the case, it's always a good idea to check your insurance rates against what other companies might be prepared to offer. As long as you know you're getting the exact same coverage in terms of the type of coverage and amounts, it might make sense to switch to a new insurance company and pocket the difference. Luckily many sites online provide instant quotes for auto insurance, allowing you to compare multiple offers at your convenience, any time of the day. Once you find an offer that meets your needs, you can have your new policy and insurance cards in hand in a matter of minutes.]]>

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How To Choose The Right Auto Insurance Company

Thu, 05 Oct 2006 07:25:04 -0800

For any driver, finding the best car insurance company is an important task. While the insurance we take out for our automobiles is, much like the health insurance we choose for our families, a service we hope to have very little need to avail of, there is little doubt that should the worst happen, we hope that we will have chosen our car insurance company wisely. For any individual, however, or even the group of individuals we might know, like our family and friends, exposure to insurance companies will have been limited. But thankfully, there are people who deal with car repairs on a regular basis, making them ideally placed to help us select the best car insurance company for our needs. Who on earth are these experts, you might ask, and how on earth can we find them? The answer is simple, and you will be able to locate them in your own area more easily than you might think. Simple take a quick trip down to your local auto body repair shop, and you will find yourself in the midst of several car experts, who will each have amassed, through their years of experience in dealing with them, an essential insight into the workings of your local car insurance companies. There are two groups of people that we call if we are unfortunate enough to find ourselves in an auto accident – the car insurance company with whom we took out our personal policy and the local body repair shop. Because these are our two ports of call when dealing with this kind of event, they necessarily have quite a bit of interaction with one another, making them ideally placed to determine the reliability and professionalism of the other’s operations. So if you are trying to find the best auto insurance company in your area, why not give them a call, or better yet, pay them a quick visit? Body shop managers and other personnel deal with insurance adjusters from several companies as a natural part of the course of their day. They will be able to tell you which car insurance companies are most professional, which are speedy in their response. Car repair shop workers will have the hands on experience of car insurance companies that allows them to determine which carriers offer the most user-friendly claims procedures, and which offer customers a more time-consuming and complicated service. They are ideally placed to offer you an unbiased opinion on which companies they would assign the best overall ratings in terms of the quality of the product they provide, and the quality of the customer service. When you are unfortunate enough to experience an accident in your vehicle, you will want to deal with people who are both speedy and professional, and no one can offer you a better insight to this end than the body shop workers who deal with car insurance companies every day. So if you are looking for reliable and unbiased ratings of the best companies around, then don’t forget to give the body shop a call.

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Some Tricks To Get Cheap Car Insurance

Thu, 05 Oct 2006 06:55:14 -0800

I probably will not get this far by saying owning multiple vehicle is a good way to go for cheaper car insurance, but some of the following tips are sound.

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Low-Cost Auto Insurance Does Not Mean Inferior Quality

Thu, 05 Oct 2006 06:55:14 -0800

Cheaper prices on car insurance do not automatically mean lesser quality on the services purchased. But some people get hung up on the zeroes behind the dollar sign – figuring the more money they shell out, the better deal they’re getting. Some companies even take advantage of these particular consumers by actually selling inferior products for much higher prices to make it appear that their products are more valuable. Remember, name recognition does not necessarily equate the best service. Value, however, is the key, especially in car insurance. While the consumer wants to be sufficiently covered in the event of an accident, no one wants to pay more than necessary. Customers demand lower prices and companies hear those demands. And like all companies in a free market, insurance companies have to compete in order to stay in business. Low-cost car insurance is oftentimes purely a product of marketplace competition. Other factors play into lower pricing. Sometimes the reason cheaper car insurance is available on, well, cheaper cars is because those cars actually have a smaller risk of loss or damage by the very fact that they’re cheap. Lesser value reduces the insurance company’s overall risk. By transferring that risk to enough people paying low premiums, insurers are betting that will make up for the relatively small number of major accidents per year.

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RV Insurance Coverage You Need

Thu, 05 Oct 2006 06:55:14 -0800

Total Loss Replacement: If your RV is totaled for any reason this coverage will provide you with a brand new comparable RV if you are the original owner and it is less than 5 years old. If you bought used or if it is older than 5 years old, you will get a check for the purchase price to put towards an RV. Personal Contents Coverage: This provides you the funds to replace items such as clothing, jewelry, cookware and kitchenware, etc. Towing and Roadside Assistance Coverage: Covers the cost of towing the RV, locksmith services, fuel refill, and battery recharging. Some policies cover this 24 hours a day, seven days a week. Emergency Expense Coverage: Covers your hotel, food, rental car and even airline ticket expenses if you need it.]]>

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Why You Should Shop Your Auto Insurance Online

Thu, 05 Oct 2006 06:55:14 -0800

Shopping for car insurance online can be extremely frustrating, or it can save you a lot of money. Getting an online auto insurance quote can help you to make sure you are getting the best deal on your car insurance. Be careful, however, because not all companies are as affordable as their advertisements let on. Getting an online car insurance quote is a great way to figure out how much your potential premiums are going to cost. A car insurance online quote will include not only your premium total, but also different payment plans that are available to you. Also, your quote will show you the types of coverage you can purchase. One of the benefits of shopping for car insurance online is the ability to compare different companies’ rates side by side from your computer. You can determine relatively quickly which companies offer the most affordable services. However, do not be swayed by advertising. This is where shopping online gets frustrating. Read the fine print, do your homework and make sure the price you are quoted is really the price you will pay. Some websites will offer a free price quote for several providers in one area. This is a great service because there is no risk and it offers you the chance to compare rates while only filling in one form. Do get information from several of these types of sites, to ensure you are getting quote from all the providers available to you. By doing some simple research, the internet can be a great money-saving tool in your search for affordable car insurance.

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Three Tips Of Getting The Best Auto Insurance Rates

Thu, 05 Oct 2006 06:51:35 -0800

If you only need one advice when you are looking for auto insurance coverage, that is to shop around.

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What Kind Of Credit Information Do Insurance Companies Use?

Thu, 05 Oct 2006 05:55:53 -0800

It is no secret that insurers use your credit information to judge you, but you may be amazed by how many types of credit information they use.

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Do You Need Gap Insurance?

Wed, 20 Sep 2006 20:22:12 -0800

Yes, gap insurance is probably a good idea if you have a brand new car.

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Car Insurance ABC: What Is Property Damage Liability (PD)?