Terms and Conditions of Auto Insurance

Based on the high rate of accidents which happen each year, it is imperative that anyone driving a car whether it is your car or a friend’s car must have an auto insurance policy even if it is the least of all insurance policies available.

An insurance covers the policyholder and in most cases it covers other people who use the car or the driver. However if the car gets into an accident which is not in the interest of the policyholder, or in violation with the agreement between the policyholder and the insurance company, the insurance policy will not cover the damages from such accident.

In instances where the insured vehicle gets sold to another person, the new owner is covered by the third party liability Insurance and also by the comprehensive car insurance policy (if there is any) within a period of 3 weeks after the change of ownership. When there is a new active insurance policy, all deductibles under the insurance will be paid by the new car owner.

Auto insurance does not cover damage to vehicles in company possession for purpose of sale

Depending on the car insurance policy agreement between you and your insurance company, there might not be a need for you to notify them when the terms in the policy agreement changed. The consequence of refusal to notify the insurance might be forfeiture indemnity and compensation if an accident occurs or reduction of the indemnity and compensation or lapses in the payment if indemnity and compensation.

Therefore to avoid the consequences stated above, whenever there is a change in the policy information notify your insurance company immediately.

You can purchase the same auto insurance from two different insurance companies without terminating the initial insurance with the first company but when an accident occurs, the agreement in your car insurance policy will applied, and this may mean that both companies pay half is the cost for the accident each.

Another important thing to note regarding auto insurance is the deductibles which are based on the agreement in the auto insurance policy. Deductibles are deducted only once in cases of an insurance event involving both third party liability and damages under the comprehensive auto insurance.

No deductible will apply in situations such as:

1. Damages from a known liable tortfeasor

2. Damages from fire, explosion, lightening or theft

3. Damages from items falling on the car.

Furthermore, there will be additional deductible if there is driving damage to the car by another person other than the policyholder, or any registered user of the three car under the auto insurance policy.

There are certain accidents which your auto insurance policy may not cover. Under the liability insurance, your auto inside policy does not cover;

1. Injury to the driver

2. Damage from the carriage of goods by road under the acts of contract

3. Damage to attached vehicle

4. Damage which occurred at the time the vehicle was rented out unless it can be proved that the damage is as a result of occurrence which is in accordance with the auto insurance policy

5. Damage to items belonging to the driver, policyholder, anyone stated in the auto insurance policy it a regular user.

The following accidents are not covered by the comprehensive auto insurance:

1. Damage resulting from weather conditions

2. Damage car parts during repairs unless it can be proved the damage had occurred during the driving or by fire

3. Damage in the electrician and mechanical parts the vehicle, unless it can be proved the damage occurred in accordance with the auto insurance policy

4. Damage resulting from reckless driving i.e. Overheating or no change of oil

5. Damage which occurred while the car was rented out

6. Damage which occurred from intoxication of the driver

7. Damage caused intentionally by grid negligence

8. Loss of the car due to seizure of the car by law enforcement authority

9. Damage under warranty and guarantee

10. Damage from usage of the car such as wear and tear, scratches on the car body and so on.

Duration of the auto insurance policy is based on the agreement between you and the insurance company. Most auto insurance agreement are annual and are renewed yearly unless it’s canceled in writing by the policyholder or the insurance company with a month’s notice.

Article Source: http://EzineArticles.com/9555724

10 Tips That Will Help Save On Auto Insurance

Very often we land up spending more on insurance policies than on ourselves. Many insurance policies like life, health, home, and auto insurance are not just essential but mandatory. Auto insurance alone can set you back by several hundred dollars every year.

How much the premium on auto insurance will cost really depend on many factors like: your age, driving record, where you live, the risk factors, and the make and age of your car. If you are style conscious and choose a powerful car in the latest model then you will certainly have to pay higher insurance. And, as you know having no auto insurance coverage is not an option. And, if you do not have adequate coverage and when good luck is not on your side, you could land in deep financial mess if you were to be involved in an auto accident or theft of the car for no fault of yours.

So stop thinking of cancelling your auto insurance comprehensive coverage and find ways in which you can have the same extensive coverage for lower costs. You can reduce auto insurance premiums by:

1. Making the time to shop around. Do the exercise well before the auto insurance comes up for renewal. Auto insurance premiums vary from company to company and between online payments and payments at offices or by mail. So, comparison shop and find an insurance policy that offers a great bouquet of coverage for less than what you are presently forking out for auto insurance. Shop online and use the tools for getting comparative quotes from different providers.

2. Thinking about increasing your deductible. Paying a higher deductible always lowers the premiums payable on auto insurance. Check your finances to see how much of a larger deductible is possible without pinching your pocket.

3. Maintaining a good credit score and report these always get you a better deal with auto insurance companies. A good credit report means that your risk is lower than others so insurance companies will gladly offer you better rates to cover your vehicle.

4. Being eco-friendly and driving an eco-friendly car then you will be eligible for a great deal from the auto insurance company. Many companies have special discount schemes on auto insurance for clients who care for the environment.

5. Keeping your mileage low if you driver lowers than say 7500 miles a year you will qualify for a low-mileage discount. Qualify for this discount on your auto insurance premium by car pooling, walking instead of driving to close by locations, and using public transport.

6. Not using your personal vehicle for business related travel. Vehicles used for work related driving attract higher auto insurance coverage than vehicles meant for personal use.

7. Considering a policy that covers all the vehicles the family owns. A group auto policy means much lower premiums than covering each car owned by the family separately.

8. Finding out if your organization or memberships to clubs or other professional organizations, makes you eligible for a discount on an auto insurance policy. For example most companies offer discounts on premiums to cover vehicles owned by members of AAA.

9. Maintaining an error free driving record for three years you will become automatically eligible for a discount on premiums payable. No accidents, drunk driving convictions, moving violations, or break downs means great savings on premiums payable on auto insurance. When you have a clean driving record it means your risk is lowered greatly.

10. Considering taking an auto insurance policy from the same provider who has extended life, home, and health policies for your family. When a company knows you well they are more than willing to offer you auto insurance at lower than market rate.

Other ways of reducing payment for auto insurance are: to live away from the city in a community that has less traffic, lower accident rates, and lower crime rates and to buy a low risk car. Sports and other high-performance vehicles are considered high risk by insurance companies and attract higher insurance premiums than a station wagon, sedan, or compact car.

Lower insurance payments on your car by following the recommendations of the road traffic police and insurance companies. For example installation of anti-theft devices, air bags, seat belts, and anti-lock brakes will make you eligible for great discounts on insurance premiums.

So, instead of moaning and groaning about high premiums reduce your auto insurance premiums by following the recommendations given above and constantly staying abreast of new developments in the auto insurance sector.

Barry Allen is a freelance writer for [http://www.1888carinsurance.com/] the premier website to find Car Insurance Quotes including auto insurance quote, online auto insurance quote, free car insurance quote, cheap car insurance quote, on line car insurance quote and more.

Article Source: http://EzineArticles.com/593308

The Importance of Auto Insurance Comparison

Whether you are shopping for Texas auto insurance, New York auto insurance, Arizona auto insurance or anywhere in between, the process is best approached by speaking with several agents and comparing quotes to get the best auto insurance rate available. To get started, you will need to know the make and model of your vehicle, along with it’s mileage, any extra features and condition. During the process of requesting a free auto insurance quote, you may also be asked about your driving history and/or your preference regarding a deductible.

When it comes to auto insurance rates, the actual amount that you pay will likely be determined by several factors. Among them, your driving record, credit history, the type of automobile that you drive, your age, marital status and even the amount of your chosen deductible. Typically, younger drivers will be required to pay higher auto insurance rates simply because they have less experience behind the wheel and are, therefore, considered to be a higher risk. Mature drivers, including those that are married, are viewed as being more responsible and may enjoy discount auto insurance.

Receiving a free auto insurance quote is usually as simple as picking up the telephone or logging onto the internet. Most agents can offer auto insurance quotes after a brief interview. It’s important to keep in mind that new vehicles will typically call for higher auto insurance rates than a used vehicle. Why? Simply because new vehicles are worth more and, as such, their replacement values are higher. In addition, an SUV and/or sports car will almost always be more expensive to insure than a standard car. If you own more than one automobile, a terrific way to obtain discount auto insurance may be to switch all of your policies over to one auto insurance company. In many cases, you will be given cheap auto insurance because of the fact that you will be granting the company all of your business.

If you want to compare auto insurance rates, it will take more than simply flipping through the yellow pages and choosing a few names at random. While this is a good place to start, you must also consider the benefits of online auto insurance quotes and the competition that only the internet can offer. One of the ways that an auto insurance company will compete for your business is through auto insurance rates. Where better to shop from a world full of insurance companies than online? When you compare auto insurance rates, you can save a considerable amount of money and be proud of the fact that you are a thrifty shopper. Getting the best value for your dollar feels great and when you get discount auto insurance, you can ride with pride.

The information in this article is designed to be used for reference purposes only. It should not be used as, in place of or in conjunction with professional financial or insurance advice relating to auto insurance quotes, discount auto insurance or auto insurance rates. For additional information or to receive an auto insurance quote, contact a local auto insurance company.

Article Source: http://EzineArticles.com/798595

How To Compare Auto Insurance Quotes

The growth of internet has made the comparison of insurance quotes easy. The best place to compare auto insurance quotes is through the internet. The security of the vehicle is very important for the owners. The right way to maintain the security is to buy an auto insurance plan.

There are several insurers around the world, which offers auto insurance policies to the automobile owners. All these companies have their own their coverage plans and rates.

The comparison of auto quotes helps a person to understand the rate and the suitable policies. Most of the insurance websites allow the person to compare the auto insurance quote without any charge, while some others charge small service fee. The idea of both the insurance websites are similar. It is better to choose the free quote websites for the comparison process at the initial stage.

The comparison websites compare both, auto insurance quotes and the policies. The online auto coverage quote helps a person to save both time and money. A person can avoid paying the commission to agent. Thus, with the help of an auto quote comparison, the role of an agent is unnecessary. A person gets clear idea about the plan and the rates, with the comparison of the online auto quotes.

Tips To Compare Auto Insurance Quotes:

It is essential to compare the auto coverage quotes, to ensure that a person gets the lowest auto insurance quote. Numerous quotes are available on the internet. However, people need to keep in mind, certain tips to compare auto insurance quotes.

As an initial step, a person has to fill some personal information in online registration form. The registration is important, to request free comparison chart of auto quotes. Compare auto insurance quotes for the all the desired coverage plans with different companies.

The insurance rate is only a basic factor to buy auto insurance. Evaluate the stability of the car insurer in automobile area. Most of the new insurance companies provide lower auto insurance quotes. A person has to make sure that these companies offer good customer service and holds strong financial stability.

A person has to build up the credit history before requesting an auto quote. A bad credit history creates unpleasant impression on the insurer and as a result, insurer will give high rate insurance quotes.

Stick to the current company for a longer period, to cut down the insurance quote. When a person has to buy new type of insurance policy, a long-term stay with an insurance company provides lower quotes for them. The history of traffic law violation and two accidents will lead to a higher auto insurance quote.

Conclusion:

The comparison of auto insurance quotes with the help of local agents is a time consuming process. Therefore, the best place to compare auto insurance quote is the internet. In brief, a person needs to compare auto insurance quotes online, to access an affordable auto coverage policy. For more on this topic and actually getting a quote you can always refer to the resources below.

Article Source: http://EzineArticles.com/1136371