A Guide to Car Insurance Companies and Policies

What is Car Insurance?

In the United States, all vehicles (cars, trucks and other motorized vehicles) on the road must be properly or properly insured by the owner, driver or someone connected to the car. The primary use associated with car insurance is to provide financial protection against physical and/or bodily injuries sustained from traffic accidents, as well as liability that could arise therefrom.

Car insurance is a fundamental and legal requirement attached to driving in the United States; a car insurance policy will effectively protect the holder against an egregious financial loss in the event of an accident or incident involving the underlying vehicle. In a general sense, a car insurance policy will typically include the following:

Coverage against damages to property, including all parts of the car or damage related to theft; Liability coverage will protect (in regards to reimbursement) the operator and owner of the car if the parties were found at fault for committing or initiating an accident; and Medical Coverage will offer reimbursement or compensation for the cost of treating injuries, rehabilitation and in some cases, lost wages and funeral expenses.

All forms of car insurance policies are offered by car insurance companies; these companies will extend coverage protection to drivers or owners of a vehicle in exchange for a premium. That being said, different policies specify the circumstances under which damages or items are covered. For instance, car insurance companies may offer coverage that protects a vehicle against fire damage, accident damage or theft in an independent fashion.

Car Insurance Companies and what they Evaluate/Offer:

Car insurance companies will typically offer a coverage package that will provide insurance to the following items associated with the vehicle:

Medical payments suffered by the insured party

Repair costs associated with physical damage to the vehicle

Coverage associated with third parties, such as the vehicle itself, people, property damage and bodily injury.

Costs associated with fire and theft

No Fault Auto Insurance—offered in some jurisdictions, this policy or aspect will provide coverage for injuries to individuals riding in the insured vehicle without regard to fault

Depending on the location, the insurance premium offered by car insurance companies will either be mandated by a governing body or determined by the insurance company in accordance to a regulatory framework established by the government. When the premium is not mandated by a governing body, it will typically be derived from the calculations of an actuary based on statistical data.

The premium can fluctuate depending on a number of factors that are said to have an impact on the expected cost of future claims. Such factors may include the characteristics of the vehicle (the top speed of the car for instance), the coverage selected by the insurance applicant (deductible, limit of the policy, covered perils), the profile of the driver (driving history, age, gender) and the usage of the car (predicted annual distance driven).

In summation, car insurance companies will evaluate the likelihood that the perspective policy-holder will get in an accident or violate traffic laws. The higher the risk associated, meaning the driver is more likely to get in an accident, the higher the premium those car insurance companies will charge.

Temporary Car Insurance Overview

What is Temporary Car Insurance?

Temporary or short-term car insurance is a form of insurance that provides coverage for a driver for only a brief period of time; typically 1 week to 6 months.

The short-term coverage is offered to those individuals who only need coverage for a short time, such as when an individual rents a car or lends a personal vehicle to a friend or relative.

In most instances, short-term or temporary car insurance is kept separate from a long-term policy and will require a different application process that is held separate from the substantial coverage offered in a regular or fixed plan.

The most efficient way to obtain short-term or temporary car insurance is to apply to one’s existing insurance carrier. The existing insurance provider (in most cases) is able to expedite the obtainment of temporary insurance, as they typically hold all the records needed to obtain the coverage. Additionally, by going through the existing provider the individual in need of short-term insurance is typically offered a discount to purchase the substituted form of insurance.

Other options to obtain temporary insurance include conducting an online search. Numerous sites will offer comparisons of the different forms of short-term car insurance that are made available through different insurance companies; this feature enables a prospective buyer to choose a low-cost form of insurance as well as compare coverage details.

The majority of long-term insurance policies will cover rental cars, however, some do not. In instances where coverage is not provided for rental cars, short-term insurance is desirable. Additionally, temporary car insurance is beneficial for cars that are kept in storage; in these examples long-term insurance is not needed as a result of the vehicle’s limited use.

Temporary car insurance is also useful in those instances where adding a driver to a long-term policy may be difficult. The age of the driver as well as the driving record of the individual being added may complicate this process; if a driver has an accident while covered on a long-term policy, the inclusion of additional premiums and the loss of a discount will typically be realized. As a result of the separate status that a temporary car insurance policy represents, the same benefits in regards to coverage will be offered, however, any negative effects that arise due to an individual’s poor driving records will not alter the long-term plan.

Motorcycle Insurance

What is Motorcycle Insurance?

All owners of motorcycles need to obtain motorcycle insurance. Similar to other insurance products, Motorcycle Insurance is a service purchased (typically in advance) to provide financial coverage in the event of an accident, theft or any incident that inflicts some sort of damage on the vehicle or the owner. If a situation arises where the owner incurs a financial or punitive damage, the motorcycle insurance holder will file a claim with their respective insurance company to receive financial compensation or to help cover the costs associated with repair.

All owners of any two or three-wheeled motorized vehicles will need to obtain motorcycle insurance—the underlying vehicle must be legally rated for road and highway use in the United States to be approved for motorcycle insurance. The aforementioned classification includes all scooters, mopeds, motorcycles and spyder roadsters.

In addition to a basic motorcycle insurance policy, various companies will offer classical motorcycle insurance, which is a specific policy, aimed to provide coverage to those bikes that are distinctively classified as classic or vintage.

What does a Motorcycle Insurance Policy Provide?

A motorcycle insurance policy provides coverage for both the policy holder and all users or operators of the vehicle. When purchased, a motorcycle insurance policy will provide funding for medical treatment (if necessary following an accident), repairs to the vehicle, as well as all compensatory repairs associated with all public and private property that may have been damaged as a result of the accident.

Furthermore, motorcycle insurance will provide death benefits to the holder’s family or estate in the event of a fatal accident. In the majority of jurisdictions throughout the United States, an owner of a motorcycle, will need to purchase an insurance policy that provides either comprehensive and liability coverage.

What is Liability Coverage?

Liability coverage is a portion of motorcycle insurance that provides reimbursement or cost recovery in situations where the rider of the vehicle or the policyholder is liable or found at fault for the accident. Liability coverage will cover damages that occurred due to an accident or any situation where the driver was deemed responsible. That being said, repairs to the holder’s motorcycle are not covered in this aspect of motorcycle insurance—only damages sustained to property or other people are partially protected by liability coverage.

In contrast, comprehensive motorcycle insurance will cover the motorcycle rider, as well as everything else associated with the situation or accident. As a result of this all-encompassing feature, comprehensive motorcycle insurance is more expensive than liability coverage.

How do I Pay for Motorcycle Insurance?

Payment options for motorcycle insurance will vary based on the provider’s policy and the type of insurance being purchased. In general, there are two ways to pay for motorcycle insurance: you can pay in full in advance; pay in twelve or six equal payments spread throughout the year. The availability of such options is dependent on where you live and the associated risk assessment administered by the insurance company.

Obtain Short Term Car Insurance

What is Short Term Car Insurance?

Short term car insurance is a form of insurance that provides coverage to a driver for only a brief period of time–typically 1 week to 6 months. Short term car insurance is offered as temporary coverage to those individuals who need protection for a special circumstance, such as when an individual rents a car or lends a personal vehicle to a friend or relative.

In most situations, short term car insurance is held separate from a long-term policy and will require a different application—the application process is different from the more-substantial coverage offered in a regular or fixed plan.

How do I Obtain Short Term Car Insurance?

The most efficient way to obtain short term car insurance is to apply through one’s existing insurance carrier. The existing insurance provider is typically able to expedite the obtainment of short term insurance through the presence of an already-filed application containing all the applicant’s personal records and driving history. Additionally, by going through the existing provider, the individual will typically be offered a discount to purchase the substituted form of insurance.

If the individual wishes to go through a different insurance provider, they must research different short term insurance policies to effectively price the market. All short term car insurance policies may be searched for online or directly through the provider’s website.

Furthermore, the majority of insurance sites will offer comparisons of the different forms of short term car insurance made available by competing insurance companies. This pricing feature enables a prospective buyer to choose a low-cost form of short term car insurance, while comparing the details of the policy to ensure that the buyer has purchased the most effective policy available.

What Does Short Term Car Insurance Provide Coverage for and Why Would I need it?

The majority of short term car insurance policies will provide coverage against damages sustained to rental cars, moving vans, lenders or cars that are temporarily borrowed from family or friends. Short term car insurance is considered effective and desirable in situations where an individual is lending a car to a friend or family member or is using an un-insured rental vehicle. Additionally, short term car insurance is beneficial for cars that are kept in storage; in these situations, long-term insurance is not needed as a result of the vehicle’s limited use.

Short term car insurance is also useful in those instances where adding a driver to a long-term policy may be difficult. The age of the driver as well as the driving record of the individual being added may complicate this process; if a driver has an accident while covered on a long-term policy, the inclusion of additional premiums and the loss of a discount will be realized.

As a result of the separate status that a short term car insurance policy represents, the same benefits– in regards to coverage–will be offered, however, any negative effects that arise due to an individual’s poor driving records will not alter the long-term plan.

Car Insurance for Young Drivers

Car Insurance Defined:

Auto Insurance is a type of insurance consumers purchase for their owned cars, trucks and other motorized vehicles. In the United States, all owners (to whom the vehicle is registered to) are required to obtain some form of car insurance—a failure to obtain car insurance and proceed to operate a vehicle on the nation’s roads or highways is a felonious act—penalties for operating a vehicle without insurance will vary by state. The primary use associated with car insurance is to provide protection, in a monetary sense, against losses incurred as a result of a traffic accident. Car insurance therefore provides reimbursement coverage against all losses—including costs associated with medical treatment and costs of vehicle—that stemmed from the accident.

The specifics associated with that the policy protects against and the price of coverage will vary based on the prospective purchaser’s characteristic and case profile. In a general sense, all car insurance companies will evaluate a prospective purchaser’s likelihood of getting in an accident—the more risky a driver is the higher the cost of coverage. A car insurance policy can cover some or all of the following instances or items—the insured party, the insured vehicle and third parties associated with the incident. Different insurance policies will specify the circumstances under which item (and to what extent) are covered.

How does a Car Insurance Company Price a Premium?

Depending on the jurisdiction, the insurance premium offered by a car insurance provider will either be mandated by a governing body or determined by the insurance company, in accordance to a regulatory framework established by the government. When the premium is not mandated by a governing body, it is derived from the calculations of an actuary based on statistical data. The premium can fluctuate depending on a number of factors that are said to have an impact on the expected cost of future claims. Such factors may include the characteristics of the vehicle (the top speed of the car for instance), the coverage selected by the insurance applicant (deductible, limit of the policy, covered perils), the profile of the driver (driving history, age, gender) and the usage of the car (predicted annual distance driven). These characteristics are grouped together to create a driver profile, then subsequently evaluated to a yield an effective premium, which in essence, compares the expected cost of providing coverage to an applicant versus a profit margin that the insurance company would like to realize.

How does Age affect my Car Insurance Premium?

As a result of driving statistics (young drivers are more likely to break the law and get in accidents) and the general inexperience of youthful drivers, car insurance for young drivers is typically attached with a high premium. Furthermore, teenage drivers, who typically have no driving record to evaluate, will have a higher premium, because as a result of the lack of driving experience, the insurance company cannot properly assess the risk of the candidate. That being said, car insurance for young drivers may be offered at a discount, depending on the nation’s driving laws and the car insurance company’s policy. In the majority of nations, car insurance for young drivers is offered at a discount if the individual undertakes further driving training on government-approved training grounds or courses.

In addition to completing additional driving classes, premiums attached to car insurance for young drivers may be diminished for a number of reasons or achievements. For instance, in the United States, a number of car insurance companies offer a grade discount to students with outstanding academic records or marks. To further promote education, car insurance for young drivers will be offered with a lower premium by various companies if the youth lives far from home and is reliant on a car to get to school. Although discount opportunities are available, in general, car insurance for young drivers is far more costly than coverage given to adults. Typically, insurance premiums will be lowered when the individual reaches the age of 25.

Car Insurance

Understanding Car Insurance Rates

Comprehensive Car Insurance

A Guide to Car Insurance Companies and Policies

Temporary Car Insurance Overview

Motorcycle Insurance

Obtain Short Term Car Insurance

Car Insurance for Young Drivers

Home Insurance Quick Glance

Saving Money with Home Insurance Quotes

Home Contents Insurance Explained

Hazard Insurance Protection

Types of Direct Travel Insurance

Comprehensive Car Insurance

Classic Car Insurance

Making Sense of Young Driver’s Car Insurance

A Guide to Car Insurance Companies and Policies

Insurance Adjuster

All You Need To Know About Torn Claims

Temporary Car Insurance Overview

Find Your Tax Brackets For 2010