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Archive for the ‘Cheap Insurance’ Category

Make Sure to Include all Drivers in your Household

Monday, July 16th, 2012

Auto insurance companies are getting smarter everyday. They use complicated programs to take every little detail into account. This way they can calculate your premium down to every dollar accurately. These advance quote systems is beneficial for you when you are a low risk policyholder. If you are considered high risk you still have options open to you to reduce risks.

When you are considered by a company they look at your particulars, the vehicles to be insured and all the drivers who have access to your automobile. Most companies would want to know everyone who has a driving license and living with you. This is because those people in your household have a ready access to your vehicle.

Carriers want to know their particulars and driving license numbers. They then can go ahead and check every driver’s driving history through DMV records. That is why you can run into problems if you don’t tell about them when you are getting quotations. In a way the information will be incomplete and misleading.

Normally a standard policy would include any other occasional drivers you may allow. The distinction is clear in terms of occasional drivers and people who have regular use of the insured auto. You need to be clear about who is a regular driver and who is occasional. For example, your girlfriend may need to be included in your policy as named driver even though she doesn’t live with you as long as she is the regular driver.

Some cheaper auto insurers may want to know everybody who is ever going to drive your car. If they are not listed they may not be covered. By knowing about the possible drivers they can control the risk and offer you low rates. This is something you need to check at the time of buying the coverage. When this is the case, it because extra important to list the drivers.

listed driversThere are often court cases where insurers refuse to pay claims due to accidents caused by drivers who should have been on the policy. You may be able to save some money by not mentioning a high risk driver in your home. But this would cause you a serious problem when this person causes an accident. Your carrier can argue that such person has been omitted knowingly to keep the costs low and therefore the policyholder acted dishonestly. This is a good enough reason to refuse to pay the claims.

there is a legitimate way of excluding certain drivers. By talking to your insurer you can exclude someone who is making your premium to go sky high. This would be the case when a motorist has a bad driving and claims history. It would be even worse when someone in your household got done for driving drunk.

If you are going to go down the route of excluding someone from your policy you should make sure that person never gets behind the steering wheel. You cannot have it both ways. Either you pay the premium and insure them properly or ensure that they have no access to your car.

How to Know If a Car Insurance Policy Is Too Cheap?

Friday, June 15th, 2012

Nobody can blame you for trying to get the lowest prices. Auto insurance is one of the big ticket spending item in a household budget. When they see renewal premiums some drivers may overreact and they can go from an expensive policy to way over too cheap one. This may not cause a big concern if you know what you are doing and it is an informed decision. You don’t want it to be a reactionary decision that is made in a spur of the moment.

Keep in mind that you are buying insurance to make sure you don’t face financial hardship. If you end up in a big accident and cause a lot of damages and injuries who is going to pay for them if you don’t have sufficient coverage? Therefore, you shouldn’t buy inadequate policies just because they are cheap. Ultimately you may end up paying a small fortune for this choice.

You may have a good idea how much is your automobile worth. That would be the maximum amount you may lose when it is totaled. However, liabilities claims can be open-ended. You never know how expensive car you will crash into and what will happen to the passengers in it. By the time you total up the damages and medical expenses for injuries it may be tens of thousands of dollars. For this reason you should make sure to have good level of liabilities cover.

don't get scammedThe point regularly mentioned is that you can manage to find money for monthly premium payments. But you would struggle to deal with one large loss that catches you unprepared. To avoid this you would want to buy good level of coverage and you would buy it from reputable companies. Although it is not common there could be some scammers collecting money from unsuspecting motorists with a promise of insuring their cars. You really need to check that anyone who is selling insurance has been licensed by the state. This is a good way of telling if they are for real or having you on.

Many people may have no idea what their policies include and exclude. Cheaper policies are known to have too many exclusions and companies are trying to get out of claims using these exclusions. They may have driver exclusions, not pay for rental cars or don’t allow you to rent a car when yours is being repaired by them.

When you come across a cheap auto insurance policy you should look at the coverage on offer. Pay particular attention to exclusions. Many drivers learn about the cover on offer and still buy these policies with full knowledge. The reason is simple as they are saving a lot of money. Your policy buying decisions should be based on correct information.

One way of avoiding these pitfalls is that you don’t immediately take the policy. Go home and check about the brokerage, insurer and look at the cover. When you are fully satisfied you can always go back and buy it. We are not saying that every low priced policy is a scam. We are saying that you need to be careful about what you are buying.