Friday, April 27, 2007
Tuesday, February 13, 2007
How Strong is Your Auto Insurance Company Financially
When you are shopping around for auto insurance quotes, one important thing to keep in mind is the financial strength of your auto insurance company. How would you like to pay your premiums diligently, like a good auto insurance customer, then get in an accident only to find out that your company wasn't in a financial position to pay you what you're owed? This is especially important in the case of natural disasters, which can cause a tremendous amount of damage, and result in a lot of claims at the same time. If your auto insurance company isn't in good financial health, they may not be able to bear this additional strain. Therefore, it's best to check out the auto insurance carriers financial health before you buy.
So, how do you do this? Well, there are two easy to find resources at your disposal:
As always, do your homework and shop around for auto insurance quotes before you buy. Be sure to check out the companies financial strength, and remember that this rating has nothing to do with customer service, simply the companies financial strength.
So, how do you do this? Well, there are two easy to find resources at your disposal:
- A.M. Best is a company that publishes insurance companies financial strength ratings. The purpose of these ratings it to let the consumer know the insurance companies ability to actually pay a claim. A.M. Best's ratings range from A++, which is the best, to D. Ratings of E indicate regulatory action, F indicate that the company is in liquidation, and S means the company is suspended. Only choose companies with B+ ratings and above.
- Another company that provides ratings on insurance companies financial health is Standard & Poor's. Their ratings go from a top rating of AAA down to the bottom which is CC. A rating of R indicates that the company is under regulatory supervision, and NR means that the company is not rated. You should only look at companies with a BBB rating or above.
As always, do your homework and shop around for auto insurance quotes before you buy. Be sure to check out the companies financial strength, and remember that this rating has nothing to do with customer service, simply the companies financial strength.
Read Your Auto Insurance Contract and Look For These Clauses BEFORE You Sign
Alright, let's say you've followed our advice and shopped around for auto insurance quotes. You've got the lowest auto insurance quote in front of you and you're ready to sign. BUT WAIT. There are two clauses that you must look for in your auto insurance contract.
- Your right to sue - Some companies will throw a clause into the agreement where you will be forced into arbitration in the case of a disagreement, instead of being able to take the case to court. If at all possible you don't want to give up this right. Doing so will make it easier for the insurance company to take advantage of you. Since contracts are mutual agreements, it may be possible to cross out this part of the contract. If the insurance company will not agree to this, it may be best to start looking elsewhere.
- Aftermarket parts requirements - if you see statements such as "new factory", "like kind and quality", or "aftermarket parts" in the contract regarding the parts the repair shop will be able to use in the event of an accident, move on to the next auto insurance company. Aftermarket parts aren't well regulated at this point, and are considered by many to be substantially inferior to the factory parts. It is much easier to just research auto insurance companies that will provide factory parts, then to haggle with a company over the parts to be used after there is an accident.
Monday, February 12, 2007
Accident Auto Insurance: California
All 50 states in the U.S. require some form of auto insurance (also called accident auto insurance, motor insurance, or vehicle insurance), but different states have different minimum requirements and different penalties for failing to provide the minimum auto insurance coverage. It is important that you know your state's auto insurance minimum requirements and your options above and beyond what the state requires.
Types of auto insurance coverage:
Liability
In the event of an auto accident, liability auto insurance pays for bodily injuries as well as property damages to the other (injured) party or parties. Included in bodily injuries are the medical expenses, compensation for pain and suffering, in addition to compensation for lost wages due to the accident. Included in property damages are both damages to the other vehicle in the auto accident as well as damages to any other property involved. Liability auto insurance also pays for court costs and defense attorney costs.
Collision
In the event of an auto accident (between your car and either another car or an object), collision auto insurance pays for damages to your vehicle caused by the incident.
Comprehensive
In an event other than an auto accident, such as flood, wind, fire, hail, theft, vandalism, comprehensive auto insurance pays for loss or damages to your insured vehicle.
Medical Coverage
In the event of an auto accident, regardless of who is at fault, medical coverage auto insurance pays for the medical expenses.
PIP (Personal Injury Protection)
In the event of an auto accident, regardless of who is at fault, PIP auto insurance pays for your (as the injured party) medical expenses incurred from the accident.
Uninsured Motorist
In the event of an auto accident with an uninsured motorist, uninsured motorist auto insurance pays for your insured car's damages from the accident.
Underinsured Motorist
In the event of an auto accident, underinsured motorist auto insurance pays for your insured car's damages when the other motorist has insufficient liability insurance to pay for the damages from the accident. Rental Reimbursement
In the event of an auto accident, rental reimbursement auto insurance pays for a rental car due to the damages of your insured car (usually with a daily price limit).
California Law Minimum Requirements for Accident Auto Insurance
Liability Insurance: $15,000 for bodily injuries to and/or death of one person caused by an auto accident; $30,000 for bodily injuries to and/or death of all persons caused by an auto accident; $5,000 for property damages caused by an auto accident. Insurance policy must be obtained by a ligitimate auto insurance provider recognized by California. In the case of an auto lien (or car loan) more insurance will probably be required by the lienholder, as in other states, to cover the entire cost of the lien in addition to the state's minimum auto insurance requirements. In order to register or renew registration on a motor vehicle in California, you must show the DMV (Department of Motor Vehicles) proof of financial responsibility in one of four possible ways.
California's Proof of Auto Insurance (Financial Responsibility)
Show your liability insurance card.
Give the DMV a $35,000 cash deposit.
Show some kind of proof of a surety bond from a legitimate California company.
Get self-insurance certificate issued by the DMV.
If you drive a motor vehicle in California, you are required to carry proof of liability insurance with you in the car. If you are pulled over for any reason, the officer will ask you for your proof of insurance. In the event of an auto accident, California law requires you to show your proof of insurance to the other driver(s), regardless of who is at fault.
California Law Auto Insurance Penalties
If you do not produce your proof of insurance when asked to by the officer who pulled you over, you may be fined an amount not less than $500 in addition to possible court costs, and your vehicle is subject to being impounded. If you do not have valid insurance at the time that you are involved in an auto accident, your driver's license will be suspended.
California Auto Insurance Exceptions
Trailers, off-road vehicles, special equipment vehicles, and registered PNO (planned nonoperation) motor vehicles do not require auto insurance - check with the DMV.
As always it is important to shop around for auto insurance quotes, as rates can vary greatly between companies. Also, when you get auto insurance quotes, be sure to ask about special discounts which are often given based on age, marrital status, location, etc.
Types of auto insurance coverage:
Liability
In the event of an auto accident, liability auto insurance pays for bodily injuries as well as property damages to the other (injured) party or parties. Included in bodily injuries are the medical expenses, compensation for pain and suffering, in addition to compensation for lost wages due to the accident. Included in property damages are both damages to the other vehicle in the auto accident as well as damages to any other property involved. Liability auto insurance also pays for court costs and defense attorney costs.
Collision
In the event of an auto accident (between your car and either another car or an object), collision auto insurance pays for damages to your vehicle caused by the incident.
Comprehensive
In an event other than an auto accident, such as flood, wind, fire, hail, theft, vandalism, comprehensive auto insurance pays for loss or damages to your insured vehicle.
Medical Coverage
In the event of an auto accident, regardless of who is at fault, medical coverage auto insurance pays for the medical expenses.
PIP (Personal Injury Protection)
In the event of an auto accident, regardless of who is at fault, PIP auto insurance pays for your (as the injured party) medical expenses incurred from the accident.
Uninsured Motorist
In the event of an auto accident with an uninsured motorist, uninsured motorist auto insurance pays for your insured car's damages from the accident.
Underinsured Motorist
In the event of an auto accident, underinsured motorist auto insurance pays for your insured car's damages when the other motorist has insufficient liability insurance to pay for the damages from the accident. Rental Reimbursement
In the event of an auto accident, rental reimbursement auto insurance pays for a rental car due to the damages of your insured car (usually with a daily price limit).
California Law Minimum Requirements for Accident Auto Insurance
Liability Insurance: $15,000 for bodily injuries to and/or death of one person caused by an auto accident; $30,000 for bodily injuries to and/or death of all persons caused by an auto accident; $5,000 for property damages caused by an auto accident. Insurance policy must be obtained by a ligitimate auto insurance provider recognized by California. In the case of an auto lien (or car loan) more insurance will probably be required by the lienholder, as in other states, to cover the entire cost of the lien in addition to the state's minimum auto insurance requirements. In order to register or renew registration on a motor vehicle in California, you must show the DMV (Department of Motor Vehicles) proof of financial responsibility in one of four possible ways.
California's Proof of Auto Insurance (Financial Responsibility)
Show your liability insurance card.
Give the DMV a $35,000 cash deposit.
Show some kind of proof of a surety bond from a legitimate California company.
Get self-insurance certificate issued by the DMV.
If you drive a motor vehicle in California, you are required to carry proof of liability insurance with you in the car. If you are pulled over for any reason, the officer will ask you for your proof of insurance. In the event of an auto accident, California law requires you to show your proof of insurance to the other driver(s), regardless of who is at fault.
California Law Auto Insurance Penalties
If you do not produce your proof of insurance when asked to by the officer who pulled you over, you may be fined an amount not less than $500 in addition to possible court costs, and your vehicle is subject to being impounded. If you do not have valid insurance at the time that you are involved in an auto accident, your driver's license will be suspended.
California Auto Insurance Exceptions
Trailers, off-road vehicles, special equipment vehicles, and registered PNO (planned nonoperation) motor vehicles do not require auto insurance - check with the DMV.
As always it is important to shop around for auto insurance quotes, as rates can vary greatly between companies. Also, when you get auto insurance quotes, be sure to ask about special discounts which are often given based on age, marrital status, location, etc.
Accident Auto Insurance: Colorado
All 50 states in the U.S. require some form of auto insurance (also called accident auto insurance, motor insurance, or vehicle insurance), but different states have different minimum requirements and different penalties for failing to provide the minimum auto insurance coverage. It is important that you know your state's auto insurance minimum requirements and your options above and beyond what the state requires.
Types of auto insurance coverage:
Liability
In the event of an auto accident, liability auto insurance pays for bodily injuries as well as property damages to the other (injured) party or parties. Included in bodily injuries are the medical expenses, compensation for pain and suffering, in addition to compensation for lost wages due to the accident. Included in property damages are both damages to the other vehicle in the auto accident as well as damages to any other property involved. Liability auto insurance also pays for court costs and defense attorney costs.
Collision
In the event of an auto accident (between your car and either another car or an object), collision auto insurance pays for damages to your vehicle caused by the incident.
Comprehensive
In an event other than an auto accident, such as flood, wind, fire, hail, theft, vandalism, comprehensive auto insurance pays for loss or damages to your insured vehicle.
Medical Coverage
In the event of an auto accident, regardless of who is at fault, medical coverage auto insurance pays for the medical expenses.
PIP (Personal Injury Protection)
In the event of an auto accident, regardless of who is at fault, PIP auto insurance pays for your (as the injured party) medical expenses incurred from the accident.
Uninsured Motorist
In the event of an auto accident with an uninsured motorist, uninsured motorist auto insurance pays for your insured car's damages from the accident.
Underinsured Motorist
In the event of an auto accident, underinsured motorist auto insurance pays for your insured car's damages when the other motorist has insufficient liability insurance to pay for the damages from the accident. Rental Reimbursement
In the event of an auto accident, rental reimbursement auto insurance pays for a rental car due to the damages of your insured car (usually with a daily price limit).
Colorado Law Minimum Requirements for Accident Auto Insurance
Liability Insurance: $25,000 for bodily injuries and/or death of one person caused by an auto accident; $50,000 for bodily injuries and/or death to all persons caused by an auto accident; $15,000 for property damages caused by an auto accident. Insurance policy must be obtained by a legitimate auto insurance provider recognized by Colorado.
Colorado's Proof of Auto Insurance
In order to register a vehicle in Colorado, you must have proof of liability insurance. You may use the issued insurance card, the actual insurance policy, or an official letter from your insurance company written on the company's letterhead. The confidential Colorado Motorist Insurance Identification Program (MIIP) requires the state's authorized insurance companies to give the state insurance policy information so that state knows who is properly insured and who is not.
Colorado Law Auto Insurance Penalties
The first offense of driving a motor vehicle without proper auto insurance carries a fine of no less than $500 and 4 points on your motor vehicle record (which will increase your subsequent insurance rates). The second offense results in a fine of $1,000 or more and a four month driver's license suspension. The third violation could result in approximately 40 hours of community service in addition to a $1,000 minimum fine and an eight month driver's license suspension.
Colorado Auto Insurance Exceptions
You can request a temporary (due yearly) auto insurance exemption from Colorado if you reside outside the state temporarily, in the military, or own a seasonal motor vehicle (such as a motor home, motorcycle, etc.).
As always it is important to shop around for auto insurance quotes, as rates can vary greatly between companies. Also, when you get auto insurance quotes, be sure to ask about special discounts which are often given based on age, marital status, location, etc.
Types of auto insurance coverage:
Liability
In the event of an auto accident, liability auto insurance pays for bodily injuries as well as property damages to the other (injured) party or parties. Included in bodily injuries are the medical expenses, compensation for pain and suffering, in addition to compensation for lost wages due to the accident. Included in property damages are both damages to the other vehicle in the auto accident as well as damages to any other property involved. Liability auto insurance also pays for court costs and defense attorney costs.
Collision
In the event of an auto accident (between your car and either another car or an object), collision auto insurance pays for damages to your vehicle caused by the incident.
Comprehensive
In an event other than an auto accident, such as flood, wind, fire, hail, theft, vandalism, comprehensive auto insurance pays for loss or damages to your insured vehicle.
Medical Coverage
In the event of an auto accident, regardless of who is at fault, medical coverage auto insurance pays for the medical expenses.
PIP (Personal Injury Protection)
In the event of an auto accident, regardless of who is at fault, PIP auto insurance pays for your (as the injured party) medical expenses incurred from the accident.
Uninsured Motorist
In the event of an auto accident with an uninsured motorist, uninsured motorist auto insurance pays for your insured car's damages from the accident.
Underinsured Motorist
In the event of an auto accident, underinsured motorist auto insurance pays for your insured car's damages when the other motorist has insufficient liability insurance to pay for the damages from the accident. Rental Reimbursement
In the event of an auto accident, rental reimbursement auto insurance pays for a rental car due to the damages of your insured car (usually with a daily price limit).
Colorado Law Minimum Requirements for Accident Auto Insurance
Liability Insurance: $25,000 for bodily injuries and/or death of one person caused by an auto accident; $50,000 for bodily injuries and/or death to all persons caused by an auto accident; $15,000 for property damages caused by an auto accident. Insurance policy must be obtained by a legitimate auto insurance provider recognized by Colorado.
Colorado's Proof of Auto Insurance
In order to register a vehicle in Colorado, you must have proof of liability insurance. You may use the issued insurance card, the actual insurance policy, or an official letter from your insurance company written on the company's letterhead. The confidential Colorado Motorist Insurance Identification Program (MIIP) requires the state's authorized insurance companies to give the state insurance policy information so that state knows who is properly insured and who is not.
Colorado Law Auto Insurance Penalties
The first offense of driving a motor vehicle without proper auto insurance carries a fine of no less than $500 and 4 points on your motor vehicle record (which will increase your subsequent insurance rates). The second offense results in a fine of $1,000 or more and a four month driver's license suspension. The third violation could result in approximately 40 hours of community service in addition to a $1,000 minimum fine and an eight month driver's license suspension.
Colorado Auto Insurance Exceptions
You can request a temporary (due yearly) auto insurance exemption from Colorado if you reside outside the state temporarily, in the military, or own a seasonal motor vehicle (such as a motor home, motorcycle, etc.).
As always it is important to shop around for auto insurance quotes, as rates can vary greatly between companies. Also, when you get auto insurance quotes, be sure to ask about special discounts which are often given based on age, marital status, location, etc.
Accident Auto Insurance: Connecticut
All 50 states in the U.S. require some form of auto insurance (also called accident auto insurance, motor insurance, or vehicle insurance), but different states have different minimum requirements and different penalties for failing to provide the minimum auto insurance coverage. It is important that you know your state's auto insurance minimum requirements and your options above and beyond what the state requires.
Types of auto insurance coverage:
Liability
In the event of an auto accident, liability auto insurance pays for bodily injuries as well as property damages to the other (injured) party or parties. Included in bodily injuries are the medical expenses, compensation for pain and suffering, in addition to compensation for lost wages due to the accident. Included in property damages are both damages to the other vehicle in the auto accident as well as damages to any other property involved. Liability auto insurance also pays for court costs and defense attorney costs.
Collision
In the event of an auto accident (between your car and either another car or an object), collision auto insurance pays for damages to your vehicle caused by the incident.
Comprehensive
In an event other than an auto accident, such as flood, wind, fire, hail, theft, vandalism, comprehensive auto insurance pays for loss or damages to your insured vehicle.
Medical Coverage
In the event of an auto accident, regardless of who is at fault, medical coverage auto insurance pays for the medical expenses.
PIP (Personal Injury Protection)
In the event of an auto accident, regardless of who is at fault, PIP auto insurance pays for your (as the injured party) medical expenses incurred from the accident.
Uninsured Motorist
In the event of an auto accident with an uninsured motorist, uninsured motorist auto insurance pays for your insured car's damages from the accident.
Underinsured Motorist
In the event of an auto accident, underinsured motorist auto insurance pays for your insured car's damages when the other motorist has insufficient liability insurance to pay for the damages from the accident. Rental Reimbursement
In the event of an auto accident, rental reimbursement auto insurance pays for a rental car due to the damages of your insured car (usually with a daily price limit).
Connecticut Law Minimum Requirements for Accident Auto Insurance
Liability Insurance: $20,000 for bodily injuries and/or death to one person caused by an auto accident; $40,000 for bodily injuries and/or death to all persons caused by an auto accident; $10,000 for property damages caused by an auto accident. Insurance policy must be obtained by a legitimate auto insurance provider recognized by Connecticut.
Connecticut's Proof of Auto Insurance
When you register a motor vehicle or you get stopped by an officer for a traffic violation, you will be required to show a valid insurance card. You must carry proof of current valid auto insurance in your vehicle at all times.
Connecticut Law Auto Insurance Penalties
If stopped for a traffic violation and you do not produce a valid insurance card for the officer you may be cited an additional violation. If your auto insurance on your registered vehicle lapses (expires or is canceled), your insurance company is required to, and will, notify the DMV. The DMV will then contact the vehicle's owner to produce evidence of valid insurance or pay a $200 fine. If you do not respond, the vehicle's registration will be suspended, and if you continue to ignore them, DMV will not reactivate the registration, and if you continue to ignore the auto insurance requirement you may lose any future ability to register other vehicles.
As always it is important to shop around for auto insurance quotes, as rates can vary greatly between companies. Also, when you get auto insurance quotes, be sure to ask about special discounts which are often given based on age, marital status, location, etc.
Types of auto insurance coverage:
Liability
In the event of an auto accident, liability auto insurance pays for bodily injuries as well as property damages to the other (injured) party or parties. Included in bodily injuries are the medical expenses, compensation for pain and suffering, in addition to compensation for lost wages due to the accident. Included in property damages are both damages to the other vehicle in the auto accident as well as damages to any other property involved. Liability auto insurance also pays for court costs and defense attorney costs.
Collision
In the event of an auto accident (between your car and either another car or an object), collision auto insurance pays for damages to your vehicle caused by the incident.
Comprehensive
In an event other than an auto accident, such as flood, wind, fire, hail, theft, vandalism, comprehensive auto insurance pays for loss or damages to your insured vehicle.
Medical Coverage
In the event of an auto accident, regardless of who is at fault, medical coverage auto insurance pays for the medical expenses.
PIP (Personal Injury Protection)
In the event of an auto accident, regardless of who is at fault, PIP auto insurance pays for your (as the injured party) medical expenses incurred from the accident.
Uninsured Motorist
In the event of an auto accident with an uninsured motorist, uninsured motorist auto insurance pays for your insured car's damages from the accident.
Underinsured Motorist
In the event of an auto accident, underinsured motorist auto insurance pays for your insured car's damages when the other motorist has insufficient liability insurance to pay for the damages from the accident. Rental Reimbursement
In the event of an auto accident, rental reimbursement auto insurance pays for a rental car due to the damages of your insured car (usually with a daily price limit).
Connecticut Law Minimum Requirements for Accident Auto Insurance
Liability Insurance: $20,000 for bodily injuries and/or death to one person caused by an auto accident; $40,000 for bodily injuries and/or death to all persons caused by an auto accident; $10,000 for property damages caused by an auto accident. Insurance policy must be obtained by a legitimate auto insurance provider recognized by Connecticut.
Connecticut's Proof of Auto Insurance
When you register a motor vehicle or you get stopped by an officer for a traffic violation, you will be required to show a valid insurance card. You must carry proof of current valid auto insurance in your vehicle at all times.
Connecticut Law Auto Insurance Penalties
If stopped for a traffic violation and you do not produce a valid insurance card for the officer you may be cited an additional violation. If your auto insurance on your registered vehicle lapses (expires or is canceled), your insurance company is required to, and will, notify the DMV. The DMV will then contact the vehicle's owner to produce evidence of valid insurance or pay a $200 fine. If you do not respond, the vehicle's registration will be suspended, and if you continue to ignore them, DMV will not reactivate the registration, and if you continue to ignore the auto insurance requirement you may lose any future ability to register other vehicles.
As always it is important to shop around for auto insurance quotes, as rates can vary greatly between companies. Also, when you get auto insurance quotes, be sure to ask about special discounts which are often given based on age, marital status, location, etc.
Accident Auto Insurance Discounts: Goup Insurance Discounts
One often overlooked auto insurance discount offered by auto insurance carriers is given to members of professional organizations. Auto insurance companies extend these discounts to professional organizations in an effort to get more business, but unfortunately many members simply aren't aware of all the benefits that come with their membership. It never hurts to ask. If you belong to a professional organization give your auto insurance carrier a call and see if you qualify for a discount. So how much could you save on your auto insurance premiums? Geico quotes up to 27%. That's nothing to scoff at. Give your carrier a call today and remember to always shop around for auto insurance quotes to get the lowest rate.
Auto Insurance Deductibles: Should I Raise My Deductibles to Save Money
The question of whether or not your should raise your accident auto insurance deductibles in order to save money on your premiums is a common one, and the situation is different for every person. As with everything involved with insurance, the question is always about how much risk you are willing to assume. The lower your deductible, the less you are at risk of losing money in the event of an accident, natural disaster, theft, etc. However, you will also need to part with a bit more of your money to take on less risk - your premiums will go up the lower your deductible. Conversely, raising your deductible could save you between 25% and 50% on your auto insurance premiums.
Put simply, your deductible should be set at an amount you could afford to pay in an emergency. At the same time, accident auto insurance should not be viewed as a way to get a complete reimbursement for all losses. The average policyholder will claim a total-loss only once in every 50 years, so if you choose to set your deductible too low, you will certainly end up paying MUCH more in premiums than by assuming more risk, lowering your premium, and saving a bit of that money for a rainy day.
It pays to shop around for auto insurance quotes, so every once and awhile check out what the major companies are offering.
Put simply, your deductible should be set at an amount you could afford to pay in an emergency. At the same time, accident auto insurance should not be viewed as a way to get a complete reimbursement for all losses. The average policyholder will claim a total-loss only once in every 50 years, so if you choose to set your deductible too low, you will certainly end up paying MUCH more in premiums than by assuming more risk, lowering your premium, and saving a bit of that money for a rainy day.
It pays to shop around for auto insurance quotes, so every once and awhile check out what the major companies are offering.
Auto Insurance Premium: Should I Pay In Installments
Want to save a bit of money on your auto insurance premium? Think about paying the entire premium up front instead of paying in installments. Auto insurance companies often charge a flat "administration fee" when you decide to pay in installments. This fee is charged every time you make a payment.
Whether or not you should pay your auto insurance premium over time obviously depends on your financial situation. Also, consider the size of your premium. The greater the auto insurance premium, the smaller the percentage you would pay in fees if you choose to pay over time. If you can get a greater return on your investment by putting your money elsewhere (and not paying your auto insurance premium up-front) then by all means choose that option.
Either way, make sure you shop around for auto insurance quotes and ask about applicable discounts to begin saving on your auto insurance. When getting auto insurance quotes also ask them if they charge an administration fee for paying your premium in installments.
Whether or not you should pay your auto insurance premium over time obviously depends on your financial situation. Also, consider the size of your premium. The greater the auto insurance premium, the smaller the percentage you would pay in fees if you choose to pay over time. If you can get a greater return on your investment by putting your money elsewhere (and not paying your auto insurance premium up-front) then by all means choose that option.
Either way, make sure you shop around for auto insurance quotes and ask about applicable discounts to begin saving on your auto insurance. When getting auto insurance quotes also ask them if they charge an administration fee for paying your premium in installments.
Sunday, February 11, 2007
Avoid Lapses In Auto Insurance Coverage
Auto insurance companies are tricky folks. Rest assured, they will use every opportunity they can to charge you a bit more for your auto insurance. One way they do this is through lapses in coverage. If you allow your coverage to lapse, even briefly, you can be disqualified from receiving discounts, which can lower your premium significantly. From their perspective, a policyholder who allows their coverage to lapse isn't really being a responsible policyholder, and thus pose a slightly higher risk to the company. At least that is how they justify it. Plus, policyholders who let their coverage lapse are no longer paying premiums...auto insurance companies are in the business of collecting premiums so they don't like it when people stop.
So what is the moral of the story here? DON'T LET YOUR POLICY LAPSE. Make sure you pay your auto insurance bills on time. If you have searched around for auto insurance quotes from other carriers and decided that you can save money by taking your business elsewhere, be sure that you DO NOT quit your current policy until your new auto insurance coverage takes effect.
So what is the moral of the story here? DON'T LET YOUR POLICY LAPSE. Make sure you pay your auto insurance bills on time. If you have searched around for auto insurance quotes from other carriers and decided that you can save money by taking your business elsewhere, be sure that you DO NOT quit your current policy until your new auto insurance coverage takes effect.
Accident Auto Insurance and Low Mileage Discounts
Do you know how much do you drive every year? No. Well, you best start paying attention. Many auto insurance carriers are offering policyholders discounts for driving less. Again, for the auto insurance companies, it's a game of risk. The less you drive, the less likely you are to get in a crash and cost them money. I hate to sound like it all comes down to money, but from their perspective, it does. Auto insurance companies are running a business, and they are in the business of making money.
So, first of all, determine how many miles you drive annually and call your auto insurance company to see if you qualify for the low mileage discount. If not, ask them what mileage does qualify. Consider changing your habits a bit to keep your mileage under this number. You'd be surprised how easy it is to cut back on your driving. Here are some ways you can cut back on your driving.
So, first of all, determine how many miles you drive annually and call your auto insurance company to see if you qualify for the low mileage discount. If not, ask them what mileage does qualify. Consider changing your habits a bit to keep your mileage under this number. You'd be surprised how easy it is to cut back on your driving. Here are some ways you can cut back on your driving.
- Get out and walk a little if you only have a short distance to go. You will get fit in the process and help the environment.
- For longer distances, consider riding your bike.
- Start a carpool. You drive one day, someone else drives the next.
- Start an office vanpool (same as above, except you drive in a van and go to the office :) )
Auto Insurance and Your Credit Score
More often than not, your auto insurance carrier takes your credit score into account when determining your premium. As we have mentioned before, auto insurers are in the game of risk. The more they are at risk, the more you pay to be protected by them. People with low credit scores have proven that they are a risk, specifically a financial risk, and thus will pay more.
So how important can your credit score be in determining your rate? VERY IMPORTANT! In fact, you could end up paying 50% more for the same auto insurance if you have a poor credit score. So, the moral of the story is to monitor your credit score often, and keep it in good shape. Pay your bills on time, have some credit cards but don't open new accounts unnecessarily, keep a balance on your cards but never more than 50% of the total credit available, and again ALWAYS PAY ON TIME.
As mentioned time and time again, shopping around for auto insurance quotes will help you reduce your premiums. Despite your current credit situation, you should be able to save money immediately by getting auto insurance quotes from the major carriers. TAKE ACTION!
So how important can your credit score be in determining your rate? VERY IMPORTANT! In fact, you could end up paying 50% more for the same auto insurance if you have a poor credit score. So, the moral of the story is to monitor your credit score often, and keep it in good shape. Pay your bills on time, have some credit cards but don't open new accounts unnecessarily, keep a balance on your cards but never more than 50% of the total credit available, and again ALWAYS PAY ON TIME.
As mentioned time and time again, shopping around for auto insurance quotes will help you reduce your premiums. Despite your current credit situation, you should be able to save money immediately by getting auto insurance quotes from the major carriers. TAKE ACTION!
Save up to 50% on your Auto Insurance: Get Rid of Collision and/or Comprehensive Coverage on Older Cars
Comprehensive and collision coverage will cover the replacement of your vehicle in the case of theft, vandalism, or natural disaster, or in the case of a collision, respectively. This is terrific, but what if your car is only worth $5,000. Generally the cost of comprehensive and collision coverage is somewhere around 40%-50% of your entire policy. You could be in a situation where you are paying more in insurance than your car is worth.
So how do you figure out if you are paying too much. Add up your comprehensive and collision coverage premiums and multiply them by 10. If that number is more than the current Kelly Blue Book value of your car then don't buy the coverage. "But what if I get in an accident?" you say. Let's look at the statistics. In general the average policyholder only makes a claim once every 11 years. As for total losses, the average policyholder reports one every 50 years. Odds are on your side, so don't pay more than you need to.
It is a good idea to review your auto insurance policy often. Be sure to do your homework and get auto insurance quotes from the major companies. Getting auto insurance quotes, increasing your deductibles, not getting over insured, and taking advantage of discounts will help you lower your auto insurance premiums significantly.
So how do you figure out if you are paying too much. Add up your comprehensive and collision coverage premiums and multiply them by 10. If that number is more than the current Kelly Blue Book value of your car then don't buy the coverage. "But what if I get in an accident?" you say. Let's look at the statistics. In general the average policyholder only makes a claim once every 11 years. As for total losses, the average policyholder reports one every 50 years. Odds are on your side, so don't pay more than you need to.
It is a good idea to review your auto insurance policy often. Be sure to do your homework and get auto insurance quotes from the major companies. Getting auto insurance quotes, increasing your deductibles, not getting over insured, and taking advantage of discounts will help you lower your auto insurance premiums significantly.
Get Auto Insurance Quotes BEFORE You Buy Your Vehicle
One sure-fire way to pay less for your auto insurance is to do your research and get auto insurance quotes before you purchase your new vehicle. Auto insurance rates can be significantly different depending on the car you drive.
The year, make, and model of your vehicle are all factored in when your insurer determines what your auto insurance premium will be. Why you ask? Let's take a look at it from the insurance companies perspective. Insurance companies are in the business of risk and probability. Basically, the more of a risk you are driving down the road, the higher your auto insurance premium will be. Right now we are only talking about how your car factors into the risk equation, but obviously human factors like your age, location, driving record, etc. all play a part in determining your auto insurance premium.
Age of your car
By looking at the age of your car, an insurance company can determine the risk that your car will break down, or otherwise fail, causing an accident. The older the car, the more likely it is to fail. On the other hand, older cars are also worth considerably less than new cars. So, comparatively, an older car will cost less to insure than a newer car, despite the fact that there is more risk of a breakdown, simply because the replacement cost is less. However, if you are comparing two cars of similar ages, you may find a significant difference in auto insurance quotes, depending on the track record of the make and model, safety features, style of car, etc.
Make and model
Auto insurance companies have compiled data on the safety of every make and model of car. They take into factors such as safety recalls, safety features, driver behavior, risk of failure, and come up with an overall risk assessment for the vehicle. Basically, the make and model with the better track record as far as risk is concerned, will cost less to insure. Thus, when you are comparing cars, get auto insurance quotes on each as they may be significantly different, even if they are the same age, and a similar value.
Safety features
Safety features such as antilock breaks, automatic seatbelts, and airbags all help your car achieve a higher safety rating and thus the car poses less of a risk, specifically to bodily injury. This means in case of an accident, the auto insurance company will likely have to pay less in medical bills. Thus, you should look for cars with more safety features, and be sure to include this information when getting auto insurance quotes.
Style of car
The style of car makes a big difference in auto insurance rates. A Porsche owner will pay a lot more than a Camry owner. Of course replacement cost is a factor here, but also consider driving habits. A Porsche owner is more likely to go faster and utilize the features the car was built for, namely speed, agility and handling, whereas the Camry owner is probably using their car in a more utilitarian way, to get from point A to point B. The moral of the story here is your auto insurance premium will be lower if you stick to more "practical" cars.
Replacement value
This is an easy one. The higher the replacement value, the Kelly Blue Book value of your car, the higher your auto insurance premiums will be. Consider purchasing a used car with a good track record and safety features, and you will pay considerably less than buying a new one.
Remember, it is important to get auto insurance quotes before you purchase your car. Doing so could help you to choose a car that will save you a lot of money in the long run. When getting auto insurance quotes, be sure to include the safety information of your car and ask about any discounts.
The year, make, and model of your vehicle are all factored in when your insurer determines what your auto insurance premium will be. Why you ask? Let's take a look at it from the insurance companies perspective. Insurance companies are in the business of risk and probability. Basically, the more of a risk you are driving down the road, the higher your auto insurance premium will be. Right now we are only talking about how your car factors into the risk equation, but obviously human factors like your age, location, driving record, etc. all play a part in determining your auto insurance premium.
Age of your car
By looking at the age of your car, an insurance company can determine the risk that your car will break down, or otherwise fail, causing an accident. The older the car, the more likely it is to fail. On the other hand, older cars are also worth considerably less than new cars. So, comparatively, an older car will cost less to insure than a newer car, despite the fact that there is more risk of a breakdown, simply because the replacement cost is less. However, if you are comparing two cars of similar ages, you may find a significant difference in auto insurance quotes, depending on the track record of the make and model, safety features, style of car, etc.
Make and model
Auto insurance companies have compiled data on the safety of every make and model of car. They take into factors such as safety recalls, safety features, driver behavior, risk of failure, and come up with an overall risk assessment for the vehicle. Basically, the make and model with the better track record as far as risk is concerned, will cost less to insure. Thus, when you are comparing cars, get auto insurance quotes on each as they may be significantly different, even if they are the same age, and a similar value.
Safety features
Safety features such as antilock breaks, automatic seatbelts, and airbags all help your car achieve a higher safety rating and thus the car poses less of a risk, specifically to bodily injury. This means in case of an accident, the auto insurance company will likely have to pay less in medical bills. Thus, you should look for cars with more safety features, and be sure to include this information when getting auto insurance quotes.
Style of car
The style of car makes a big difference in auto insurance rates. A Porsche owner will pay a lot more than a Camry owner. Of course replacement cost is a factor here, but also consider driving habits. A Porsche owner is more likely to go faster and utilize the features the car was built for, namely speed, agility and handling, whereas the Camry owner is probably using their car in a more utilitarian way, to get from point A to point B. The moral of the story here is your auto insurance premium will be lower if you stick to more "practical" cars.
Replacement value
This is an easy one. The higher the replacement value, the Kelly Blue Book value of your car, the higher your auto insurance premiums will be. Consider purchasing a used car with a good track record and safety features, and you will pay considerably less than buying a new one.
Remember, it is important to get auto insurance quotes before you purchase your car. Doing so could help you to choose a car that will save you a lot of money in the long run. When getting auto insurance quotes, be sure to include the safety information of your car and ask about any discounts.
Saturday, February 10, 2007
Accident Auto Insurance: Alaska
All 50 states in the U.S. require some form of auto insurance (also called accident auto insurance, motor insurance, or vehicle insurance), but different states have different minimum requirements and different penalties for failing to provide the minimum auto insurance coverage. It is important that you know your state's auto insurance minimum requirements and your options above and beyond what the state requires.
Types of auto insurance coverage:
Liability
In the event of an auto accident, liability auto insurance pays for bodily injuries as well as property damages to the other (injured) party or parties. Included in bodily injuries are the medical expenses, compensation for pain and suffering, in addition to compensation for lost wages due to the accident. Included in property damages are both damages to the other vehicle in the auto accident as well as damages to any other property involved. Liability auto insurance also pays for court costs and defense attorney costs.
Collision
In the event of an auto accident (between your car and either another car or an object), collision auto insurance pays for damages to your vehicle caused by the incident.
Comprehensive
In an event other than an auto accident, such as flood, wind, fire, hail, theft, vandalism, comprehensive auto insurance pays for loss or damages to your insured vehicle.
Medical Coverage
In the event of an auto accident, regardless of who is at fault, medical coverage auto insurance pays for the medical expenses.
PIP (Personal Injury Protection)
In the event of an auto accident, regardless of who is at fault, PIP auto insurance pays for your (as the injured party) medical expenses incurred from the accident.
Uninsured Motorist
In the event of an auto accident with an uninsured motorist, uninsured motorist auto insurance pays for your insured car's damages from the accident.
Underinsured Motorist
In the event of an auto accident, underinsured motorist auto insurance pays for your insured car's damages when the other motorist has insufficient liability insurance to pay for the damages from the accident. Rental Reimbursement
In the event of an auto accident, rental reimbursement auto insurance pays for a rental car due to the damages of your insured car (usually with a daily price limit).
Alaska Law Minimum Requirements for Accident Auto Insurance
Liability Insurance: $50,000 for one person's injuries or death in an accident; $100,000 for all persons' injuries or deaths in an accident; $25,000 for property damages in an accident. Insurance policy must be obtained by a ligitimate auto insurance provider recognized by Alaska.
Alaska's Proof of Auto Insurance
In the event of an auto accident causing any personal injury, death, or property damage over $500, proof of insurance must be shown by all involved parties, no matter who was at fault. Acceptable proof of insurance is Alaska's Certificate of Insurance, available from the DMV. All drivers are also required to show proof of insurance whenever a law officer requests to see it as well as whenever the vehicle is obtaining or renewing registration.
Alaska Law Auto Insurance Penalties
In the event of an auto accident, and you do not have current valid auto insurance, your driver's license will be suspended automatically for a minumum of 90 days and a maximum of one year, depending on your recorded driving history. Drivers who have had license suspensions or revocations, may require an SR-22 auto insurance policy (liability auto insurance with an additional responsibility from the insurance company). In this case, the insurance company is required to notify the Alaska DMV immediately if the driver is without current valid auto insurance - if the policy lapses, is cancelled, or terminated.
As always it is important to shop around for auto insurance quotes, as rates can vary greatly between companies. Also, when you get auto insurance quotes, be sure to ask about special discounts which are often given based on age, marrital status, location, etc.
Types of auto insurance coverage:
Liability
In the event of an auto accident, liability auto insurance pays for bodily injuries as well as property damages to the other (injured) party or parties. Included in bodily injuries are the medical expenses, compensation for pain and suffering, in addition to compensation for lost wages due to the accident. Included in property damages are both damages to the other vehicle in the auto accident as well as damages to any other property involved. Liability auto insurance also pays for court costs and defense attorney costs.
Collision
In the event of an auto accident (between your car and either another car or an object), collision auto insurance pays for damages to your vehicle caused by the incident.
Comprehensive
In an event other than an auto accident, such as flood, wind, fire, hail, theft, vandalism, comprehensive auto insurance pays for loss or damages to your insured vehicle.
Medical Coverage
In the event of an auto accident, regardless of who is at fault, medical coverage auto insurance pays for the medical expenses.
PIP (Personal Injury Protection)
In the event of an auto accident, regardless of who is at fault, PIP auto insurance pays for your (as the injured party) medical expenses incurred from the accident.
Uninsured Motorist
In the event of an auto accident with an uninsured motorist, uninsured motorist auto insurance pays for your insured car's damages from the accident.
Underinsured Motorist
In the event of an auto accident, underinsured motorist auto insurance pays for your insured car's damages when the other motorist has insufficient liability insurance to pay for the damages from the accident. Rental Reimbursement
In the event of an auto accident, rental reimbursement auto insurance pays for a rental car due to the damages of your insured car (usually with a daily price limit).
Alaska Law Minimum Requirements for Accident Auto Insurance
Liability Insurance: $50,000 for one person's injuries or death in an accident; $100,000 for all persons' injuries or deaths in an accident; $25,000 for property damages in an accident. Insurance policy must be obtained by a ligitimate auto insurance provider recognized by Alaska.
Alaska's Proof of Auto Insurance
In the event of an auto accident causing any personal injury, death, or property damage over $500, proof of insurance must be shown by all involved parties, no matter who was at fault. Acceptable proof of insurance is Alaska's Certificate of Insurance, available from the DMV. All drivers are also required to show proof of insurance whenever a law officer requests to see it as well as whenever the vehicle is obtaining or renewing registration.
Alaska Law Auto Insurance Penalties
In the event of an auto accident, and you do not have current valid auto insurance, your driver's license will be suspended automatically for a minumum of 90 days and a maximum of one year, depending on your recorded driving history. Drivers who have had license suspensions or revocations, may require an SR-22 auto insurance policy (liability auto insurance with an additional responsibility from the insurance company). In this case, the insurance company is required to notify the Alaska DMV immediately if the driver is without current valid auto insurance - if the policy lapses, is cancelled, or terminated.
As always it is important to shop around for auto insurance quotes, as rates can vary greatly between companies. Also, when you get auto insurance quotes, be sure to ask about special discounts which are often given based on age, marrital status, location, etc.
Accident Auto Insurance: Arizona
All 50 states in the U.S. require some form of auto insurance (also called accident auto insurance, motor insurance, or vehicle insurance), but different states have different minimum requirements and different penalties for failing to provide the minimum auto insurance coverage. It is important that you know your state's auto insurance minimum requirements and your options above and beyond what the state requires.
Types of auto insurance coverage:
Liability
In the event of an auto accident, liability auto insurance pays for bodily injuries as well as property damages to the other (injured) party or parties. Included in bodily injuries are the medical expenses, compensation for pain and suffering, in addition to compensation for lost wages due to the accident. Included in property damages are both damages to the other vehicle in the auto accident as well as damages to any other property involved. Liability auto insurance also pays for court costs and defense attorney costs.
Collision
In the event of an auto accident (between your car and either another car or an object), collision auto insurance pays for damages to your vehicle caused by the incident.
Comprehensive
In an event other than an auto accident, such as flood, wind, fire, hail, theft, vandalism, comprehensive auto insurance pays for loss or damages to your insured vehicle.
Medical Coverage
In the event of an auto accident, regardless of who is at fault, medical coverage auto insurance pays for the medical expenses.
PIP (Personal Injury Protection)
In the event of an auto accident, regardless of who is at fault, PIP auto insurance pays for your (as the injured party) medical expenses incurred from the accident.
Uninsured Motorist
In the event of an auto accident with an uninsured motorist, uninsured motorist auto insurance pays for your insured car's damages from the accident.
Underinsured Motorist
In the event of an auto accident, underinsured motorist auto insurance pays for your insured car's damages when the other motorist has insufficient liability insurance to pay for the damages from the accident. Rental Reimbursement
In the event of an auto accident, rental reimbursement auto insurance pays for a rental car due to the damages of your insured car (usually with a daily price limit).
Arizona Law Minimum Requirements for Accident Auto Insurance
Liability Insurance: $15,000 for one person; $30,000 for two people; $10,000 for property damages in an accident. Insurance policy must be obtained by a ligitimate auto insurance provider recognized by Arizona. All vehicles, including motorcycles, mopeds, and golf carts, must have valid liability insurance.
Arizona's Proof of Auto Insurance
In the event of an auto accident or traffic violation in which you are stopped by an officer, you are required to show proof of insurance. You are also required to show proof of auto insurance when registering your vehicle. Insurance companies are required to notify the Arizona MVD (Motor Vehicle Department) if you cancel or do not renew your auto insurance and the MVD will contact you for proof of insurance.
Arizona Law Auto Insurance Penalties
In the event of an auto accident, if you do not show proof of minimum liability auto insurance, you are subject to monetary penalties associated with vehicle registration suspension, or license suspension. If your driver's license gets suspended, you will likely be required to carry the more expensive SR-22 insurance policy for up to 3 years. An SR-22 auto insurance policy is liability auto insurance with an additional responsibility from the insurance company - they are required to notify the Arizona MVD immediately if the driver is without current valid auto insurance - if the policy lapses, is cancelled, or terminated.
Arizona Auto Insurance Exceptions
Vehicles that are not in use on roads, for reasons such as long-term storage or restoration, are not required to have insurance, but you must apply for permission to forego insurance on your out-of-use motor vehicle.
As always it is important to shop around for auto insurance quotes, as rates can vary greatly between companies. Also, when you get auto insurance quotes, be sure to ask about special discounts which are often given based on age, marrital status, location, etc.
Types of auto insurance coverage:
Liability
In the event of an auto accident, liability auto insurance pays for bodily injuries as well as property damages to the other (injured) party or parties. Included in bodily injuries are the medical expenses, compensation for pain and suffering, in addition to compensation for lost wages due to the accident. Included in property damages are both damages to the other vehicle in the auto accident as well as damages to any other property involved. Liability auto insurance also pays for court costs and defense attorney costs.
Collision
In the event of an auto accident (between your car and either another car or an object), collision auto insurance pays for damages to your vehicle caused by the incident.
Comprehensive
In an event other than an auto accident, such as flood, wind, fire, hail, theft, vandalism, comprehensive auto insurance pays for loss or damages to your insured vehicle.
Medical Coverage
In the event of an auto accident, regardless of who is at fault, medical coverage auto insurance pays for the medical expenses.
PIP (Personal Injury Protection)
In the event of an auto accident, regardless of who is at fault, PIP auto insurance pays for your (as the injured party) medical expenses incurred from the accident.
Uninsured Motorist
In the event of an auto accident with an uninsured motorist, uninsured motorist auto insurance pays for your insured car's damages from the accident.
Underinsured Motorist
In the event of an auto accident, underinsured motorist auto insurance pays for your insured car's damages when the other motorist has insufficient liability insurance to pay for the damages from the accident. Rental Reimbursement
In the event of an auto accident, rental reimbursement auto insurance pays for a rental car due to the damages of your insured car (usually with a daily price limit).
Arizona Law Minimum Requirements for Accident Auto Insurance
Liability Insurance: $15,000 for one person; $30,000 for two people; $10,000 for property damages in an accident. Insurance policy must be obtained by a ligitimate auto insurance provider recognized by Arizona. All vehicles, including motorcycles, mopeds, and golf carts, must have valid liability insurance.
Arizona's Proof of Auto Insurance
In the event of an auto accident or traffic violation in which you are stopped by an officer, you are required to show proof of insurance. You are also required to show proof of auto insurance when registering your vehicle. Insurance companies are required to notify the Arizona MVD (Motor Vehicle Department) if you cancel or do not renew your auto insurance and the MVD will contact you for proof of insurance.
Arizona Law Auto Insurance Penalties
In the event of an auto accident, if you do not show proof of minimum liability auto insurance, you are subject to monetary penalties associated with vehicle registration suspension, or license suspension. If your driver's license gets suspended, you will likely be required to carry the more expensive SR-22 insurance policy for up to 3 years. An SR-22 auto insurance policy is liability auto insurance with an additional responsibility from the insurance company - they are required to notify the Arizona MVD immediately if the driver is without current valid auto insurance - if the policy lapses, is cancelled, or terminated.
Arizona Auto Insurance Exceptions
Vehicles that are not in use on roads, for reasons such as long-term storage or restoration, are not required to have insurance, but you must apply for permission to forego insurance on your out-of-use motor vehicle.
As always it is important to shop around for auto insurance quotes, as rates can vary greatly between companies. Also, when you get auto insurance quotes, be sure to ask about special discounts which are often given based on age, marrital status, location, etc.
Accident Auto Insurance: Arkansas
All 50 states in the U.S. require some form of auto insurance (also called accident auto insurance, motor insurance, or vehicle insurance), but different states have different minimum requirements and different penalties for failing to provide the minimum auto insurance coverage. It is important that you know your state's auto insurance minimum requirements and your options above and beyond what the state requires.
Types of auto insurance coverage:
Liability
In the event of an auto accident, liability auto insurance pays for bodily injuries as well as property damages to the other (injured) party or parties. Included in bodily injuries are the medical expenses, compensation for pain and suffering, in addition to compensation for lost wages due to the accident. Included in property damages are both damages to the other vehicle in the auto accident as well as damages to any other property involved. Liability auto insurance also pays for court costs and defense attorney costs.
Collision
In the event of an auto accident (between your car and either another car or an object), collision auto insurance pays for damages to your vehicle caused by the incident.
Comprehensive
In an event other than an auto accident, such as flood, wind, fire, hail, theft, vandalism, comprehensive auto insurance pays for loss or damages to your insured vehicle.
Medical Coverage
In the event of an auto accident, regardless of who is at fault, medical coverage auto insurance pays for the medical expenses.
PIP (Personal Injury Protection)
In the event of an auto accident, regardless of who is at fault, PIP auto insurance pays for your (as the injured party) medical expenses incurred from the accident.
Uninsured Motorist
In the event of an auto accident with an uninsured motorist, uninsured motorist auto insurance pays for your insured car's damages from the accident.
Underinsured Motorist
In the event of an auto accident, underinsured motorist auto insurance pays for your insured car's damages when the other motorist has insufficient liability insurance to pay for the damages from the accident. Rental Reimbursement
In the event of an auto accident, rental reimbursement auto insurance pays for a rental car due to the damages of your insured car (usually with a daily price limit).
Arkansas Law Minimum Requirements for Accident Auto Insurance
Liability Insurance: $15,000-$100,000 for bodily injuries and/or death caused by an auto accident; $10,000-$50,000 for property damages caused by an auto accident. Insurance policy must be obtained by a ligitimate auto insurance provider recognized by Arkansas.
Arkansas's Proof of Auto Insurance
In the event of an auto accident or traffic violation in which you are stopped by an officer, you are required to show proof of insurance - your insurance card. The Arkansas OMV (Office of Motor Vehicles) actively tracks vehicles and insurance policies by working with insurance companies to match current valid auto insurance policies with VIN (Vehicle Identification Number) numbers. If your vehicle does not match a valid policy, you are breaking the law.
Arkansas Law Auto Insurance Penalties
The Arkansas OMV maintains an updated database with all insurance policies for every registered motor vehicle. All insurance companies notify the OMV within 30 days of a policy lapse - failing to make payments or policy cancellation. Any vehicle without valid insurance will have its registration suspended. To reinstate your vehicle registration, you will be required to show proof of valid auto insurance. For vehicles that are not in use and do not need registration, you can cancel the insurance on it, but you need to inform the OMV of the VIN and auto insurance information.
As always it is important to shop around for auto insurance quotes, as rates can vary greatly between companies. Also, when you get auto insurance quotes, be sure to ask about special discounts which are often given based on age, marrital status, location, etc.
Types of auto insurance coverage:
Liability
In the event of an auto accident, liability auto insurance pays for bodily injuries as well as property damages to the other (injured) party or parties. Included in bodily injuries are the medical expenses, compensation for pain and suffering, in addition to compensation for lost wages due to the accident. Included in property damages are both damages to the other vehicle in the auto accident as well as damages to any other property involved. Liability auto insurance also pays for court costs and defense attorney costs.
Collision
In the event of an auto accident (between your car and either another car or an object), collision auto insurance pays for damages to your vehicle caused by the incident.
Comprehensive
In an event other than an auto accident, such as flood, wind, fire, hail, theft, vandalism, comprehensive auto insurance pays for loss or damages to your insured vehicle.
Medical Coverage
In the event of an auto accident, regardless of who is at fault, medical coverage auto insurance pays for the medical expenses.
PIP (Personal Injury Protection)
In the event of an auto accident, regardless of who is at fault, PIP auto insurance pays for your (as the injured party) medical expenses incurred from the accident.
Uninsured Motorist
In the event of an auto accident with an uninsured motorist, uninsured motorist auto insurance pays for your insured car's damages from the accident.
Underinsured Motorist
In the event of an auto accident, underinsured motorist auto insurance pays for your insured car's damages when the other motorist has insufficient liability insurance to pay for the damages from the accident. Rental Reimbursement
In the event of an auto accident, rental reimbursement auto insurance pays for a rental car due to the damages of your insured car (usually with a daily price limit).
Arkansas Law Minimum Requirements for Accident Auto Insurance
Liability Insurance: $15,000-$100,000 for bodily injuries and/or death caused by an auto accident; $10,000-$50,000 for property damages caused by an auto accident. Insurance policy must be obtained by a ligitimate auto insurance provider recognized by Arkansas.
Arkansas's Proof of Auto Insurance
In the event of an auto accident or traffic violation in which you are stopped by an officer, you are required to show proof of insurance - your insurance card. The Arkansas OMV (Office of Motor Vehicles) actively tracks vehicles and insurance policies by working with insurance companies to match current valid auto insurance policies with VIN (Vehicle Identification Number) numbers. If your vehicle does not match a valid policy, you are breaking the law.
Arkansas Law Auto Insurance Penalties
The Arkansas OMV maintains an updated database with all insurance policies for every registered motor vehicle. All insurance companies notify the OMV within 30 days of a policy lapse - failing to make payments or policy cancellation. Any vehicle without valid insurance will have its registration suspended. To reinstate your vehicle registration, you will be required to show proof of valid auto insurance. For vehicles that are not in use and do not need registration, you can cancel the insurance on it, but you need to inform the OMV of the VIN and auto insurance information.
As always it is important to shop around for auto insurance quotes, as rates can vary greatly between companies. Also, when you get auto insurance quotes, be sure to ask about special discounts which are often given based on age, marrital status, location, etc.
Accident Auto Insurance: Alabama
All 50 states in the U.S. require some form of auto insurance (also called accident auto insurance, motor insurance, or vehicle insurance), but different states have different minimum requirements and different penalties for failing to provide the minimum auto insurance coverage. It is important that you know your state's auto insurance minimum requirements and your options above and beyond what the state requires.
Types of auto insurance coverage:
Liability
In the event of an auto accident, liability auto insurance pays for bodily injuries as well as property damages to the other (injured) party or parties. Included in bodily injuries are the medical expenses, compensation for pain and suffering, in addition to compensation for lost wages due to the accident. Included in property damages are both damages to the other vehicle in the auto accident as well as damages to any other property involved. Liability auto insurance also pays for court costs and defense attorney costs.
Collision
In the event of an auto accident (between your car and either another car or an object), collision auto insurance pays for damages to your vehicle caused by the incident.
Comprehensive
In an event other than an auto accident, such as flood, wind, fire, hail, theft, vandalism, comprehensive auto insurance pays for loss or damages to your insured vehicle.
Medical Coverage
In the event of an auto accident, regardless of who is at fault, medical coverage auto insurance pays for the medical expenses.
PIP (Personal Injury Protection)
In the event of an auto accident, regardless of who is at fault, PIP auto insurance pays for your (as the injured party) medical expenses incurred from the accident.
Uninsured Motorist
In the event of an auto accident with an uninsured motorist, uninsured motorist auto insurance pays for your insured car's damages from the accident.
Underinsured Motorist
In the event of an auto accident, underinsured motorist auto insurance pays for your insured car's damages when the other motorist has insufficient liability insurance to pay for the damages from the accident. Rental Reimbursement
In the event of an auto accident, rental reimbursement auto insurance pays for a rental car due to the damages of your insured car (usually with a daily price limit).
Alabama Law Minimum Requirements for Accident Auto Insurance
Liability Insurance: $20,000 for one person's injuries in an accident; $40,000 for all persons' injuries in an accident; $10,000 for property damages in an accident. Insurance policy must be obtained by a ligitimate auto insurance provider recognized by Alabama. An alternative to the required liability auto insurance is a motor vehicle liability bond for $50,000 or a deposit of cash to the State Treasurer in the amount of $50,000.
Alabama's Acceptable Proofs of Auto Insurance
A current insurance card issued by the insurance company.
A temporary insurance card issued by the insurance company.
The premium receipt or binder issued by your insurance company.
The actual policy, or the current declarations page of your policy, for your vehicle.
Proof of purchase of the vehicle within the past 60 days and a valid insurance card from your previous vehicle.
For a rental car: the copy of the rental agreement that specifies the insurance coverage.
Alabama Law Auto Insurance Penalties
Vehicle owners in Alabama are ranomly surveyed by the Department of Revenue to make sure drivers are insured. If you are not insured, your vehicle tag registration is suspended until proof of insurance is shown and a $100 reinstatement fee is paid for the first suspension. Subsequent suspensions will require proof of insurance and a $200 fee after a four month suspension.
Types of auto insurance coverage:
Liability
In the event of an auto accident, liability auto insurance pays for bodily injuries as well as property damages to the other (injured) party or parties. Included in bodily injuries are the medical expenses, compensation for pain and suffering, in addition to compensation for lost wages due to the accident. Included in property damages are both damages to the other vehicle in the auto accident as well as damages to any other property involved. Liability auto insurance also pays for court costs and defense attorney costs.
Collision
In the event of an auto accident (between your car and either another car or an object), collision auto insurance pays for damages to your vehicle caused by the incident.
Comprehensive
In an event other than an auto accident, such as flood, wind, fire, hail, theft, vandalism, comprehensive auto insurance pays for loss or damages to your insured vehicle.
Medical Coverage
In the event of an auto accident, regardless of who is at fault, medical coverage auto insurance pays for the medical expenses.
PIP (Personal Injury Protection)
In the event of an auto accident, regardless of who is at fault, PIP auto insurance pays for your (as the injured party) medical expenses incurred from the accident.
Uninsured Motorist
In the event of an auto accident with an uninsured motorist, uninsured motorist auto insurance pays for your insured car's damages from the accident.
Underinsured Motorist
In the event of an auto accident, underinsured motorist auto insurance pays for your insured car's damages when the other motorist has insufficient liability insurance to pay for the damages from the accident. Rental Reimbursement
In the event of an auto accident, rental reimbursement auto insurance pays for a rental car due to the damages of your insured car (usually with a daily price limit).
Alabama Law Minimum Requirements for Accident Auto Insurance
Liability Insurance: $20,000 for one person's injuries in an accident; $40,000 for all persons' injuries in an accident; $10,000 for property damages in an accident. Insurance policy must be obtained by a ligitimate auto insurance provider recognized by Alabama. An alternative to the required liability auto insurance is a motor vehicle liability bond for $50,000 or a deposit of cash to the State Treasurer in the amount of $50,000.
Alabama's Acceptable Proofs of Auto Insurance
A current insurance card issued by the insurance company.
A temporary insurance card issued by the insurance company.
The premium receipt or binder issued by your insurance company.
The actual policy, or the current declarations page of your policy, for your vehicle.
Proof of purchase of the vehicle within the past 60 days and a valid insurance card from your previous vehicle.
For a rental car: the copy of the rental agreement that specifies the insurance coverage.
Alabama Law Auto Insurance Penalties
Vehicle owners in Alabama are ranomly surveyed by the Department of Revenue to make sure drivers are insured. If you are not insured, your vehicle tag registration is suspended until proof of insurance is shown and a $100 reinstatement fee is paid for the first suspension. Subsequent suspensions will require proof of insurance and a $200 fee after a four month suspension.
Accident Auto Insurance: Get Auto Insurance Quotes and save money!
In almost every article on this site we mention the importance of shopping around for auto insurance quotes. The auto insurance industry is highly competitive, with all the major companies like Geico, Progressive, Allstate, Nationwide etc. working very hard to get your business. What should this mean for you... LOWER RATES. You could potentially save 50% or more on your auto insurance through lower rates, special incentive programs, and discounts, simply by getting auto insurance quotes. The entire process might take an hour or so of your time, but believe me you will be well paid for that hour of your time.
When getting auto insurance quotes remember to tell your insurance agent if you fall into any of the following categories:
You are employed in a low-risk occupation You belong to a professional organization You have multiple policies (homeowners insurance or renters insurance with the same auto insurance company) or multiple cars on the same auto insurance policy.
Your car has safety features such as antilock brakes, automatic seatbelts, and airbags
You are willing to assume more risk as a driver
You are a senior citizen
Start with your current insurance company and make sure they are giving you the lowest auto insurance rate possible. It may only take you a few minutes and you could save 50% or more every month. Over the course of a year this could add up to A LOT, so stop reading and make the call or get auto insurance quotes online.
When getting auto insurance quotes remember to tell your insurance agent if you fall into any of the following categories:
Start with your current insurance company and make sure they are giving you the lowest auto insurance rate possible. It may only take you a few minutes and you could save 50% or more every month. Over the course of a year this could add up to A LOT, so stop reading and make the call or get auto insurance quotes online.
Accident Auto Insurance: Why should I get accident auto insurance?
As with any type of insurance, having accident auto insurance is about protecting the people and the things that are important to you. For example, if you were to get in an accident without having any sort of auto insurance, would you have enough cash on hand to repair or even replace your car? If not, how would you get to and from work to make money and support your lifestyle? How would your kids get to school? If you had an outstanding loan balance on your car, could you afford to make payments on the old, now totaled automobile, as well as payments for your new car? As you can see, without auto insurance, an accident can be quite devastating to your financial situation.
So far, we've only talked about the damage to your own vehicle. What if you caused the accident and you totaled another persons car? Would you be able to pay to replace their vehicle if they sued you? What if they were injured during the accident? Could you pay their medical bills? Even if it isn't your fault, what happens if the other driver isn't insured, and couldn't pay even if you won a lawsuit against them? You would still have to pay for a new car. The ramifications of an accident can be widespread, for all involved.
Having auto insurance can help you in many ways including:
It is highly recommended that all drivers have current accident auto insurance. You can get auto insurance quotes from many services online, and from each of the auto insurance companies such as Geico, Progressive, Allstate, Nationwide, and StateFarm. We highly recommend that you shop around for auto insurance quotes as rates and discounts fluctuate often and can vary considerably between companies.
So far, we've only talked about the damage to your own vehicle. What if you caused the accident and you totaled another persons car? Would you be able to pay to replace their vehicle if they sued you? What if they were injured during the accident? Could you pay their medical bills? Even if it isn't your fault, what happens if the other driver isn't insured, and couldn't pay even if you won a lawsuit against them? You would still have to pay for a new car. The ramifications of an accident can be widespread, for all involved.
Having auto insurance can help you in many ways including:
- Protecting your automobile investment
- Pay for your medical expenses, as well as for your family and the other people involved in an accident
- Protect you financially from lawsuits
- Cover you in case of theft, vandalism, or natural disasters
- Helps you achieve peace of mind knowing that you are covered in your time of need
It is highly recommended that all drivers have current accident auto insurance. You can get auto insurance quotes from many services online, and from each of the auto insurance companies such as Geico, Progressive, Allstate, Nationwide, and StateFarm. We highly recommend that you shop around for auto insurance quotes as rates and discounts fluctuate often and can vary considerably between companies.
Accident Auto Insurance: What do I do in case of an accident if I am covered by auto insurance
Hopefully you will never be in an car accident, but chances are you will be in some sort of accident at some point in your driving career. If you are in fact in an accident, and are covered by auto insurance (which I highly recommend) here are the steps you should take:
Hopefully you never need this information, but if you do, it is handy to keep a copy of it in your car. Make sure your auto insurance is always up to date and in effect. It is helpful to shop around for auto insurance quotes, to make sure you are getting the most for your money. By getting auto insurance quotes from a number of companies you will be able to maximize your coverage.
- Your first concern is getting yourself in a safe position. If it is possible stop your car in a place that is both safe and visible. Your number one priority is getting yourself and the other passengers in your vehicle out of harms way. Next turn your car off, and carefully (make sure it is safe) exit the vehicle.
- Now you must assess the situation. Again the first concern is human safety. Was anyone injured in the accident? If so, do not move them; doing so can cause further damage and is best handled by professionals.
- Immediately call the police (911), tell them you've been in an accident, and report any injuries, giving them as many details as possible. The more details you give them regarding injuries, the better they will be able to help when they arrive on the scene.
- Now it's time for some administrative duties. If there was another vehicle involved in the accident immediately write down the following information: car's year, make, model, license plate number; other drivers name, address, license number, and their auto insurance provider. Also, write down the name and addresses of any other passengers or anyone who witnessed the accident. Obviously there is a lot of writing going on at this point, so be sure to have a small notepad and a writing utensil in an accessible place in your car at all times.
- Hopefully the police and other emergency personnel will arrive soon. When they do, be sure to record as many badge numbers as you can in case these people need to be contacted again in the future. Obviously, don't hinder rescue efforts in this process; human safety is always the number one priority in emergency situations.
- Do you suspect that the other driver could have been under the influence of alcohol or drugs at the time of the accident? Indications include swerving, weaving, or otherwise irradic behavior before the accident. If so, ask that you and the other driver both be given a breath test.
- DO NOT admit guilt in any way for the accident, that will be determined in a later investigation, but always cooperate with the police. If asked, show them your insurance, but never tell anyone how much coverage you have.
- DO NOT accept any money from anyone on the scene, as doing so may fore-fit your rights later on.
- DO NOT agree to disregard a minor accident. While it may seem like the polite thing to do at the time, you may come to find out that the damages are greater than first thought. The other driver could even file a lawsuit against you in the future.
- If you have a camera available, take pictures of the accident, both cars, the other driver and passengers, and any other aspects of the accident you deem relevant. If no camera is available, try write down as many details as you can including the condition of all other people involved in the accident, damage cause by the accident, and damage that was clearly there prior to the accident.
- As soon as you can, report the accident to your auto insurance agent, who will promptly open a new case and start an investigation.
Hopefully you never need this information, but if you do, it is handy to keep a copy of it in your car. Make sure your auto insurance is always up to date and in effect. It is helpful to shop around for auto insurance quotes, to make sure you are getting the most for your money. By getting auto insurance quotes from a number of companies you will be able to maximize your coverage.
Accident Auto Insurance Coverage: How much accident auto insurance policy coverage do I need?
It is always possible to lower your auto insurance rate by choosing a higher deductible, and getting less liability coverage, although often times it just isn't worth the savings. So how much accident auto insurance do you need?
As with all insurance, determining how much coverage you need is determined by how much risk you are willing to take on. Assuming the worst case scenario, that you are in a major accident, how much could you afford to pay out of pocket. Maybe a more appropriate question is how much would you be willing to pay out of pocket? Remember, in the event of a major accident hospital bills, and replacement vehicle costs could be quite extensive.
Bodily Injury Liability
This part of the policy is all about protecting your assets. This will protect you from liability should the driver or passengers of the other car, or the passengers in your car, suffer medical problems arising from the accident. It doesn't matter how good of a driver you are, accidents can certainly happen to good people, and most likely you will not be controlling the outcome.
Bodily injury liability is sold in two parts, per person, and per accident. This means you could get accident auto insurance that covers for example, $100,000 per person and up to $300,000 per accident. How much bodily injury liability you need is really determined by how many financial assets you need to protect. Obviously, the more money you have, the more you could possible loose in the case of a lawsuit, and thus the more you have to protect.
How much you will pay for additional bodily injury liability depends on a lot of factors including age, driving record, location, and marital status. Obviously if you live in a city where bodily injury is more likely to occur, then you will have to pay more than in a rural area. Protect the money you have, and you will sleep better at night knowing that in the case of an accident you are covered by your auto insurance.
Property Damage Liability
This part of the policy pays for any damage to the other persons car and property involved in the accident. There are certain state minimums, some as low as $5,000, but really, how many $5,000 cars do you see driving around. If you get in an accident with a new porsch, you're going to want more coverage. $50,000 per car is the minimum recommended, and $100,000 to be completely safe.
Personal Injury Protection
It sounds funny, but this may be one part of the policy you can cut back on, depending on what other coverage you already have. This would cover the medical or funeral expenses of you and your family in the case of an accident. Check your health, life, and other insurance policies to see if they already contain adequate coverage in this area. If so, then you may be able to remove it completely from your policy.
Uninsured or Underinsured Motorist
This policy is essential, and will cover you and your families medical expenses in the event that you are in an accident with an uninsured or underinsured motorist, which is actually quite prevalent. These policies are quite cheap and well worth the insignificant expense and will pick up where your health insurance leaves off.
Collision and Comprehensive
Collision will cover the cost of repairs or replacement of your vehicle in the event of an accident, whereas comprehensive auto insurance will additionally cover you in case of a natural disaster, theft, or vandalism. This is a significant portion of the cost of your policy, and thus, to lower your rate, increase the deductible to whatever you are willing to pay. Generally the point of insurance is to protect you from losing A LOT of money, not to pay for every little scrape. A $1000 deductible might be acceptable. Also, in the case of a total loss, where your car is completely destroyed, the most you will receive is the kelly blue book value for your car, so don't insure yourself for more than your car is worth.
Extras
Get the full glass coverage which will cover you in case your auto glass (which is expensive) is damaged (which happens easily and often). Others such as towing coverage and rental car coverage are not worth the cost. In the former, you're better off getting a AAA membership which offers more services for the money, and in the latter, chances are 50/50 the other persons insurance will be paying for the rental car.
As always it is best to get auto insurance quotes from multiple companies such as Geico, Progressive, Allstate, Nationwide, and StateFarm. Rates do vary and shopping around for auto insurance quotes can save you a lot of money.
As with all insurance, determining how much coverage you need is determined by how much risk you are willing to take on. Assuming the worst case scenario, that you are in a major accident, how much could you afford to pay out of pocket. Maybe a more appropriate question is how much would you be willing to pay out of pocket? Remember, in the event of a major accident hospital bills, and replacement vehicle costs could be quite extensive.
Bodily Injury Liability
This part of the policy is all about protecting your assets. This will protect you from liability should the driver or passengers of the other car, or the passengers in your car, suffer medical problems arising from the accident. It doesn't matter how good of a driver you are, accidents can certainly happen to good people, and most likely you will not be controlling the outcome.
Bodily injury liability is sold in two parts, per person, and per accident. This means you could get accident auto insurance that covers for example, $100,000 per person and up to $300,000 per accident. How much bodily injury liability you need is really determined by how many financial assets you need to protect. Obviously, the more money you have, the more you could possible loose in the case of a lawsuit, and thus the more you have to protect.
How much you will pay for additional bodily injury liability depends on a lot of factors including age, driving record, location, and marital status. Obviously if you live in a city where bodily injury is more likely to occur, then you will have to pay more than in a rural area. Protect the money you have, and you will sleep better at night knowing that in the case of an accident you are covered by your auto insurance.
Property Damage Liability
This part of the policy pays for any damage to the other persons car and property involved in the accident. There are certain state minimums, some as low as $5,000, but really, how many $5,000 cars do you see driving around. If you get in an accident with a new porsch, you're going to want more coverage. $50,000 per car is the minimum recommended, and $100,000 to be completely safe.
Personal Injury Protection
It sounds funny, but this may be one part of the policy you can cut back on, depending on what other coverage you already have. This would cover the medical or funeral expenses of you and your family in the case of an accident. Check your health, life, and other insurance policies to see if they already contain adequate coverage in this area. If so, then you may be able to remove it completely from your policy.
Uninsured or Underinsured Motorist
This policy is essential, and will cover you and your families medical expenses in the event that you are in an accident with an uninsured or underinsured motorist, which is actually quite prevalent. These policies are quite cheap and well worth the insignificant expense and will pick up where your health insurance leaves off.
Collision and Comprehensive
Collision will cover the cost of repairs or replacement of your vehicle in the event of an accident, whereas comprehensive auto insurance will additionally cover you in case of a natural disaster, theft, or vandalism. This is a significant portion of the cost of your policy, and thus, to lower your rate, increase the deductible to whatever you are willing to pay. Generally the point of insurance is to protect you from losing A LOT of money, not to pay for every little scrape. A $1000 deductible might be acceptable. Also, in the case of a total loss, where your car is completely destroyed, the most you will receive is the kelly blue book value for your car, so don't insure yourself for more than your car is worth.
Extras
Get the full glass coverage which will cover you in case your auto glass (which is expensive) is damaged (which happens easily and often). Others such as towing coverage and rental car coverage are not worth the cost. In the former, you're better off getting a AAA membership which offers more services for the money, and in the latter, chances are 50/50 the other persons insurance will be paying for the rental car.
As always it is best to get auto insurance quotes from multiple companies such as Geico, Progressive, Allstate, Nationwide, and StateFarm. Rates do vary and shopping around for auto insurance quotes can save you a lot of money.
Geico Accident Auto Insurance: The history of one of the auto insurance industries major players
Most people know Geico by the adorable little Geico Gecko in their commercials. Maybe the line "save a buck or two" comes to mind. Some even know that it is owned by the second wealthiest man, Warren Buffet. Most, however, do not know that Geico has been around since the 1930's.
Geico, which stands for the Government Employees Insurance Company, was started by Leo and Lillian Goodwin in the 1930's during the great depression. Geico insurance was created with the idea that if insurance were marketed directly to a targeted consumer base then the savings could be passed along to the consumer via lower premiums. Geico's target customer was federal employees and military officers. The business model proved to be solid and the company began to grow quickly. By 1936 Geico established operations in Washington DC, had 3,700 active policies, and a staff of 12.
Lorimer Davidson, an investment banker and close friend, helped the Goodwins find additional investors when the original investors decided to go elsewhere. He would later become Leo Goodwin's successor upon his retirement. One of the new investors was Benjamin Graham, well known to many as Warren Buffets teacher and mentor using the value investing strategy. Geico steadily grew through the 1960's passing the 1 million policy holder mark in 1964, and premiums reaching $150 million in 1965.
Geico went through some difficult times in the 1970's, seeing the loss of first Lillian Goodwin then Leo Goodwin, and a significant drop in their previously almost boundless expansion. However they focused on their underwriting and reserve activities and strengthened the company significantly. In 1976 Warren Buffet made his second stock purchase, this time over 1 million shares.
In the 1980's expansion was a bit slow, but steady, and the companies focus on customer service was paying off. As part of this effort they offered 365 day, 24 hour, telephone support. In 1993 Olza Nicely became Geico's chairman and propelled the company into the national spotlight with a much larger advertising budget. This again caught the attention of Warren Buffet who in 1995 purchased the remaining Geico stock, making Geico a subsidiary of the Berkshire Hathaway investment firm. This in turn propelled national advertising even higher.
In 2000 Geico introduced the Gecko which quickly became quite popular. Geico assets have climbed to 21.2 billion dollars and they have passed the 7 million policy holder mark with over 20,000 associates in over 12 locations.
Check out Geico's site for more information about their policies and up to date auto insurance quotes.
Geico, which stands for the Government Employees Insurance Company, was started by Leo and Lillian Goodwin in the 1930's during the great depression. Geico insurance was created with the idea that if insurance were marketed directly to a targeted consumer base then the savings could be passed along to the consumer via lower premiums. Geico's target customer was federal employees and military officers. The business model proved to be solid and the company began to grow quickly. By 1936 Geico established operations in Washington DC, had 3,700 active policies, and a staff of 12.
Lorimer Davidson, an investment banker and close friend, helped the Goodwins find additional investors when the original investors decided to go elsewhere. He would later become Leo Goodwin's successor upon his retirement. One of the new investors was Benjamin Graham, well known to many as Warren Buffets teacher and mentor using the value investing strategy. Geico steadily grew through the 1960's passing the 1 million policy holder mark in 1964, and premiums reaching $150 million in 1965.
Geico went through some difficult times in the 1970's, seeing the loss of first Lillian Goodwin then Leo Goodwin, and a significant drop in their previously almost boundless expansion. However they focused on their underwriting and reserve activities and strengthened the company significantly. In 1976 Warren Buffet made his second stock purchase, this time over 1 million shares.
In the 1980's expansion was a bit slow, but steady, and the companies focus on customer service was paying off. As part of this effort they offered 365 day, 24 hour, telephone support. In 1993 Olza Nicely became Geico's chairman and propelled the company into the national spotlight with a much larger advertising budget. This again caught the attention of Warren Buffet who in 1995 purchased the remaining Geico stock, making Geico a subsidiary of the Berkshire Hathaway investment firm. This in turn propelled national advertising even higher.
In 2000 Geico introduced the Gecko which quickly became quite popular. Geico assets have climbed to 21.2 billion dollars and they have passed the 7 million policy holder mark with over 20,000 associates in over 12 locations.
Check out Geico's site for more information about their policies and up to date auto insurance quotes.
Accident Auto Insurance Discounts: How to save a little, or maybe even a lot on your auto insurance through discounts
As you may or may not know, the auto insurance industry is highly competitive mainly because it is also highly profitable. Consequently companies will do a lot to get, and keep, your business. One way that auto insurance companies do this is by offering auto insurance policy discounts to different types of drivers, generally deemed to be lower risk.
Some of the most popular, and obvious, discounts are given if you've had no accidents or tickets in the last 3 to 5 years. Another popular discount is called a "multi-line" discount where you are given a discount by purchasing multiple policies, such as a homeowner's or renter's insurance policy. There is also a "multi-vehicle" policy given when you purchase accident auto insurance for multiple cars.
Here are some other discounts you may not know about:
Engineers
21st Century Group gives auto insurance discounts to people with college degrees in engineering and science-related fields. They found that these folks tend to be a lower accident risk, go figure. This discount could save you between $40 and $120 on your accident auto insurance.
Teachers
The Horace Mann Insurance agency offers discounts to teachers belonging to the National Education Association or state education associations. This discount is based on the auto insurance agencies observations that teachers have stable jobs, and are under scrutiny by the community, which apparently lead to safer driving. 21st Century offers teachers an auto insurance discount, but to those certified by the State of California Commission on Teacher Credentialing, or full-time college or university professors.
Army
Geico offers a 2% to 5% discount to active and retired members of the military. This discount is not available to policy holders in the following states: Georgia, Indiana, Maine, Massachusetts, Michigan, Mississippi, New Jersey, New Mexico, Tennessee and Texas.
Seniors
Hartford's AARP Auto Insurance Program offers AARP members a discount of as much as 45% of their auto insurance premium as follows: 20% to 25% off your auto insurance for insuring multiple cars on a policy, 10% if you also have a homeowners policy with Hartford, and 5% if you have been with the company for more than 5 years without blemishes on your driving record.
Some of the most popular, and obvious, discounts are given if you've had no accidents or tickets in the last 3 to 5 years. Another popular discount is called a "multi-line" discount where you are given a discount by purchasing multiple policies, such as a homeowner's or renter's insurance policy. There is also a "multi-vehicle" policy given when you purchase accident auto insurance for multiple cars.
Here are some other discounts you may not know about:
Engineers
21st Century Group gives auto insurance discounts to people with college degrees in engineering and science-related fields. They found that these folks tend to be a lower accident risk, go figure. This discount could save you between $40 and $120 on your accident auto insurance.
Teachers
The Horace Mann Insurance agency offers discounts to teachers belonging to the National Education Association or state education associations. This discount is based on the auto insurance agencies observations that teachers have stable jobs, and are under scrutiny by the community, which apparently lead to safer driving. 21st Century offers teachers an auto insurance discount, but to those certified by the State of California Commission on Teacher Credentialing, or full-time college or university professors.
Army
Geico offers a 2% to 5% discount to active and retired members of the military. This discount is not available to policy holders in the following states: Georgia, Indiana, Maine, Massachusetts, Michigan, Mississippi, New Jersey, New Mexico, Tennessee and Texas.
Seniors
Hartford's AARP Auto Insurance Program offers AARP members a discount of as much as 45% of their auto insurance premium as follows: 20% to 25% off your auto insurance for insuring multiple cars on a policy, 10% if you also have a homeowners policy with Hartford, and 5% if you have been with the company for more than 5 years without blemishes on your driving record.
Internet
Unitrin will give you a $50 discount on your auto insurance premium just for purchasing through their website. They will give you an additional 10% discount if you are a four-year college graduate under age of 30. These discounts are only available in Arizona, Colorado, Connecticut, Florida, Illinois, Indiana, Missouri, Nevada, Ohio, Oregon, Pennsylvania, Texas, Virginia and Wisconsin.
Because of the great amount of competition in the auto insurance industry, it certainly pays to shop around for auto insurance quotes. As shown above, getting auto insurance quotes including discounts from multiple companies can save you 45% off your policy, if not more, so do your homework!
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