Car Insurance, Gas Prices and the Economy

I don’t know about you, but whenever I’ve paid another bill and the financial going seems to smooth out a bit, there’s always some other economic hurdle to climb again. Take the recent rise in gas prices. Although some claim it to be insignificant, this is definitely not the case. Aside from the usual stuff of homeowners and commercial maintenance and insurance costs as well as the never-yielding auto upkeep and coverage premiums to contend with, the price jump hits us all hard.

While diesel truck-drivers can rightfully complain about the consistent upsurge in costs, the average car, van, motorcycle, ATV, RV or ATV now is stung with the painful slap in the wallet. Economists, as well as the leading insurance companies will tell you to fight back.

Fight back? How do you go to war with the gas pumps?

This is how:

1. When shopping for a new car, select one that has an excellent mileage record.

2. Research gas prices and patronize pumps that offer the best rate per gallon.

3. Be consistent with car maintenance practices: have the oil and filter changed as recommended and switch the air filter as per car manufacturer’s instructions.

4. Check you automobile’s fan belt. If it is installed too tightly, make sure it is sufficiently loosened so your engine does not work overtime and your gasoline level does not either.

5. Keep tabs on all four tires and tire pressure. If you are low on air, your gas will unfortunately also go the extra mile in exertion.

6. When the summer’s heat is too much to bear, by all means, use your vehicle’s air conditioning. If, however, you are fine with the windows rolled down, turn off the A/C. Note: this only proves fiscally advantageous on city roads; open window driving on the highway only increases general vehicle resistance liability and motor effort, necessitating an overdose of gasoline usage.

7. Avoid unnecessary loads in your car, as the extra weight keeps your car running hard along with the need to use more fuel.

8. If you can circumvent the busiest motorist time on the road, by all means, do so. Rush hour driving, with all the stopping and going, takes a toll on your gasoline levels.

9. Carpooling is the sensible thing to do – especially when there’s a group that is going to the same business or school location day in and day out. Not only will you save on gas, but also on the wear and tear of everyday automobile usage and accident or collision risk.

10. Instead of driving everywhere, try incorporating healthful walking and biking. You’ll be doing your physical well-being a tremendous favor, as well as your gas tank!

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One More Article About Auto Insurance

What Is Auto Insurance?

Auto insurance is a product that is purchased and also that can pay for damages to your vehicle or others’ vehicles in the event of a car accident or non-accident related harm. Each state has its laws regarding the amount of car insurance that each person should have to be able to drive legally. Many different factors influence auto insurance rates, as well. It does not even base on various companies; it is up to the insurance industry to determine what car insurance is and how much each person will pay for auto coverage.

What is car insurance? It seems like a very fundamental question. However, there are many different facets and elements to consider about car insurance that it can get complicated very fast if you’re not that prepared for what you’re getting in. You need to know how rates are more calculated what types of coverage are available, how much coverage you need or can get, and which companies offer the best auto insurance for your needs.

What Does Auto Insurance Cover?

Auto insurance is used to protect you the individual or a business or organization from financial loss in regards to a motor vehicle. Financial loss can happen due to many reasons, and having auto insurance can cover your losses in a variety of ways.

Liability for Property Damages

Responsibility for property damages is coverage against damage you or a person driving your vehicle with your permission does to someone else’s property. Costs can include the other vehicle, utility poles, fences, buildings, homes, businesses, or almost any type of structure your car comes into touching.

Collision

Collision coverage usually protects your vehicle from damages resulting from an accident with another vehicle, pothole, car flipping over, etc. Collision coverage will pay for repairing your vehicle, or if your vehicle has damaged in the accident, it will reimburse you for the value of the car subtracting deductible and in many cases other costs.

AUTO INSURANCE IN THE USA

Auto insurance is a necessity, and this is amply evident from the fact that all states of the USA have made it mandatory to have car insurance on all vehicles. Most of the time, this appears to be a bothersome exercise, but why to wait until you get involved in an accident to find out how taking an auto cover takes care of your assets and you. High medical expenses and lawsuit judgments on the rise make it worthwhile to protect yourself and your precious vehicle with car insurance.

Furthermore, all jurisdictions have made it compulsory to have two auto insurance systems – the no-fault system, and the Tort system. The former type of insurance favor in most states dictates that your insurance carrier shall pay the injury claims no matter who caused the accident in reality. The amount payable is up to a specified limit, and if you are involved in an accident, your carrier is liable to pay for the injury. As against this, the Tort system the injured party will have to take care of the medical expenses from their packet and then claim it from the guilty driver’s insurance carrier as recompense.

With the number of accidents and theft occurring widely in the USA, it is essential for every auto owner to buy such an insurance coverage to secure both the vehicle as well as its owner in times of need.

In the USA if you want to have a car on the road you have to have auto insurance. Some states even have coverage minimums where you have to have a certain dollar amount of coverage; usually, this is called primary coverage.

How To Get Better Auto Insurance In The USA

Auto insurance covers accident to a car. The insurance company pays for the financial loss to the owner in return for a small amount of money paid periodically. The amount paid annually is called premium, and the contract you draw up with the insurance company is known as the insurance policy. The insurance company allows you to hold the contract, and you become the policyholder.

Car insurance may not come cheap. However, under unforeseen circumstances of loss or damage to your vehicle, compensation will seem like a godsend. Periodically shelling out lumps of money for protecting your car or cars owned by your business, may look expensive. There could be a tendency to try and cut corners by availing the minimum motor insurance packages. However, even minor car damage is overly expensive; therefore, a minimum package may not give you the extensive coverage at a time when you need it most.

Types Of Auto Insurance In the USA

The most common types of auto insurance available in the US are the Liability Insurance, Auto Collision and Comprehensive Insurance, Medical Payments and Personal Injury Protection, and the Uninsured Motorists and Underinsured Motorists coverage. Most modern companies offer these.

Liability insurance cover pays for the damage you cause to others and their property. It pays for the legal expenses involved and for the expenditure for the victim going to the court claiming damages, within your liability limits. In a case of an accident, the costs of repairing your car are covered by the collision insurance. The comprehensive insurance covers damages caused by incidents other than car accidents, such as natural calamities, theft, fire, vandalism, and hitting an animal.

In a case of the insured person and the co-passenger needing medical treatment for bodily injury due to an accident, this is covered by the Medical Payments coverage. Personal Injury Protection will cover the medical expenses and the wages lost by you and the co-passenger if injured in the accident.

Why You Need Auto Insurance

The primary objective of any insurance is to protect the policyholder and his family against the consequences resulting from an unexpected injuries or death and financial burdens in the event of these disasters. It is a contract between the related insurance company and you, where you agree to pay the premium for the losses that the insurance company will need to cover in the event of accidents.

The auto insurance covers these three main areas:

Property coverage – refers to the damage or the theft of your car

Liability coverage – relates to your legal responsibilities to others whom might in the cause of the property damage loss be incapacitated

Medical coverage – refers to the medical treatments, therapy charges, rehabilitation, lost in the ability to work, or even funeral expenses where there are faculties.

The Work Of Auto Insurance

The auto insurance also protects you from uninsured drivers or motorists. In this case, the uninsured motorists or drivers have no insurance company to pay you for the damage which had happened, but luckily you still have your insurance company to bear the losses.

Protect the bank which had provided the car loan to finance your vehicle. Because if there are any disaster happening to your vehicle, no one will be able to lend or provide any additional money to you to fix the car other than the auto insurance company. Otherwise, you will need to repair the damage made to the car by your own, and this would prevent you from paying for the periodic monthly loan payment on time. The consequences are that the bank will not lend you any more money in the future, with the bad credit standing which you are in at least for some considerable amount of time.

Good to go insurance also provide 24 hours emergency helpline to facilitate the help offering to their customers with the intention to improve the client’s efficiency. Good to go insurance by reducing the long waiting time of insurance claim turn-around time especially. Goodtogoinsurance.

Tips on Buying Car Insurance

Auto insurers underwrite policies to evaluate the risk given to each insurance applicant. During this process, a person is grouped into a category, such as a high-risk driver, low risk, teenage or elderly. If this risk associated with the applicant is considered too high, the application could be denied coverage altogether. After the results are calculated, the insurance carrier then gives a price, which is based on the perceived risk that driver poses.

1. This is also known as rating the driver

Insurers use this rating as a way to measure what it costs to insure a particular person if a claim is made and how likely claims would occur again in the future. This is often referred to as financial responsibility that an insurer takes on. The tip is to maintain a safe driving record and avoid traffic accidents and you will go a long ways towards getting cheaper car insurance.

2. Not all Insurance Companies Rate Drivers the Same

Many providers use the same general metrics but their algorithms that ultimately determine rates are quite distinct. One of the biggest factors that all insurers use in calculating premiums is the frequency of accidents. When a person files a claim, the insurance kicks in and accidents can cost many thousands of dollars, especially if there is a death involved. The more claims a person files, the riskier he or she is in the eyes of the carrier and more likely to file a future claim. Thus, higher rates are imposed on these at-risk motorist. To keep rates low, avoid incidents and filing claims and you will save a lot of money on auto insurance. If you have had accidents in the past don’t worry.

3. Main Contributing Factors that Affect Auto Insurance Rates

*Driving Record: Auto Insurers will take a close look at how many citations and accidents you have been involved in.

Keep up a good driving record and watch your rates go down.

*The Location you live: If you live in the city, you can expect to pay more than if you live in a rural location with much less traffic.

* The Car you Drive: This is a very large factor that makes up rates. New and expensive luxury or sports cars have some of the highest insurance rates. On the other hand, used cars that are safe and cheap to repair have some of the lowest coverage costs. Get a boring used car and save on coverage.

* Marriage Status: Married people pay less for car ins because they are considered more responsible.

* Your Age: Drivers that are under 25 can expect to pay about double for auto ins. The sweet sport for the lowest rates is between 32 and 62 years of age.

4. Apply for all the Discounts you can

A great and smart way to save on vehicle insurance is to apply for several discounts. If you have more than one automobile, consider getting a bundled or multi-vehicle discount. You can also take a safe driver course and save about 5%. Other popular discounts are good student, military, and even teacher.

5. Shop Direct on the Web for the Cheapest Rates

The internet has literally taken over the world. It has also saved millions of people money on car insurance. Buying car insurance online is smart because you can find direct rate pricing that most brokers can’t match.

What Factors Define Your Auto Insurance Premiums?

In the modern over-saturated auto insurance market choosing the right auto insurance package could be very challenging. Some insurance carriers proudly offer the cheapest insurance packages, others try to overwhelm you with impressive array of services and features they offer. But it’s not always the cheapest price nor the richest set of services that you should be concerned of – it’s the ever moving right combination of best price AND the best coverage which you have to try to achieve.

Below are the main factors that will define your individual auto insurance premiums.

Driver’s Age.
Insurance rates for too young and too senior drivers are usually noticeably higher than for the average-age drivers. These two categories of drivers are considered to incur a higher risk of traffic accidents and therefore are more expensive for insurance providers.
Driver’s Gender
This factor would make the feminist movement very happy – male drivers usually pay higher insurance premiums than females! The reason – statistics shows that men are more likely to drive aggressively than females and hence they are more risky for insurers.
The Age and Condition of Your Vehicle.
Brand new cars are more expensive to repair; this can drive the insurance package price up. Also, speedy sport cars are more accident-prone and therefore have higher insurance rates.
Do You Legally Own the Car You Drive
If you drive your car regularly but don’t legally own it – for example, the car you drive is from lease or the car was purchased by you but is not paid off yet – you might be requested to buy more than just liability coverage insurance. The more expensive package of Collision Coverage plus Comprehensive Coverage is often required in these cases.
Average Miles You Drive Daily.
Cars used sparingly, say – only 5-10 miles a day – understandably introduce a lesser risk of traffic accidents and therefore are cheaper than the cars which make 150 miles every day.
Deductible You are Willing to Pay.
A deductible is your co-pay in the case of an auto accident. The higher your deductible is – the more losses you are willing to share with the insurance company and the lower your insurance package price will be.
Your Driving Record.
Drivers with no tickets or accidents always pay less.
Years of Your Driving Experience.
The more driving experience you have – the better your chances are to get a low rate. But this is just a general rule. Many auto insurance carriers would ask a driver about the age when his first driver license was issued in the USA or Canada. For those auto insurance carriers only North American driving experience is counted. Note also, that if you moved to the USA from Great Britain, Japan or any other country with left-hand traffic (total of 76 countries, territories and dependencies) you will likely to pay a much higher premiums in USA.
State of Your Residence.
You might be surprised but insurance rates for the same person and the same vehicle vary significantly from state to state. These differences reflect the increased risk and hence the increased operating cost for insurance companies. For example, insurance rates in hurricane- and tornado-prone areas are usually much higher than in regular places.
Vehicle Safety Features.
Anti-theft protected vehicles decrease the risk of a loss. Also, cars with ABS, air bags, rear-view cameras and other safety gadgets are considered to be safer and therefore are cheaper for auto insurance carriers. That is the main factors which would affect ones auto insurance premiums in general.

Conclusion

Buying insurance policy for your vehicle could be a costly and challenging exercise. Age, gender, vehicle condition, average daily miles you drive, State where you live are the few factors that will define your monthly insurance premiums. Knowing that factors will help you to better understand insurance quotes coming from competing insurance carriers and will make you better prepared for making your purchase decision. Shop around and choose the best auto insurance package for you.