Frequently Asked Questions Automobile Insurance

Friday, October 9, 2009

Question:Is the consumers auto insurance primary or secondary?

Answer:There is no such thing as secondary and primary - insurance works as such: Most carriers hold One Million dollars combined single limit & Two hundred fifty thousand dollars per incident. This insurance covers damage done to your vehicle in transit - there is no other insurance. The auto transport carrier is the main and only coverage. (exception: Automobile personal contents are not covered by any carrier insurance and in most cases if lost, stolen or otherwise will not be covered.)

Question:How long should an auto transport take on average?

Answer:Shipping time all depends on the transporter - listed below are some very basic ideas to help you along the way. Make sure however you contact your shipper for their actual scheduled times. East Coast to West Coast - approx. 7 to 14 days Midwest to East Coast - approx. 5 to 8 days South to the North - approx. 5 to 8 days All shipping times are estimated do not base your transport on these examples without first contacting your shipper for assistance. Too many variable go into the time it takes to deliver any vehicle, thus all times are estimates only!

Question:Why does a truck (SUV) shipment cost more than a regular sedan?

Answer:Shipments are based on weight that a truck can legally carry - this is why there is a small price difference between $50.00 and $100.00 for a regular truck or S.U.V.. Size of the vehicle also dictates how many vehicles a particular carrier can haul at any one time. The larger the vehicles, the less amount can be hauled, thus smaller vehicles are cheaper to ship.

Question:How is a transport supposed to work?

Answer:Auto Transport is made very simple with Hilton Transport. Once your order is placed you will be contacted by our Customer Support department, where your order information will be confirmed and payment is processed. At that point your vehicle is placed into the system and our Dispatch department proactively finds a Carrier capable of delivering your vehicle. Upon dispatching a Carrier, Hilton Transport will send you an email with all of the Carrier's contact information. You should contact your Carrier immediately and open the lines of communication. The Carrier will pickup your vehicle and deliver it as fast as possible. At the point of delivery the customer pays the remainder of the Order (Order Total minus deposit) in Cash, Cashier's Check or Money Order to the Carrier directly.

Question:What should a consumer do if their vehicle arrives with damage?

Answer:First thing you should do is make sure the driver understands that the damage is new and was not on the original bill of lading. The damage should clearly be marked and noted, then signed for by the driver. Upon completion of delivery a call should placed to your carrier or broker to inform them of the damage. In most cases the carrier will ask for an estimate and send you payment in a couple weeks. If the carrier is not responsive and unwilling to work with you to resolve the issue make sure you contact their insurance company and make a claim. Be sure however you have all the documentation to back up your claim - false claims can result in legal action by the carrier or agent.

Question:How does a pick up window work?

Answer:When a transporter mentions pick up window they are referring to the time surronding your pick up date. For instance some shippers may have a 14 day window - that way they can pick your vehicle up anywhere between 7 days before and 7 days after your pick up date. Beware of lower priced carriers who do not specify their pick up dates, you may recieve an outstanding price. However you may not see your vehicle for 4 or 5 weeks. It is very important to make sure the transporter you use can get your vehicle within a reasoable time frame.

How Car Insurance Works

If you own your own car, you probably already know a little about car insurance. You may have heard the words deductible or premium. But, do you truly understand the different parts of an auto insurance policy and do you know how to choose the best coverage?

Forty-seven states require that you have at least some kind of car insurance, so it's a good idea to know what the law requires you to have and what additional or optional coverage will help to protect you in the event of an accident.

Before purchasing auto insurance, you must consider a variety of factors including what kind of car you have, your driving record and the amount of money you are willing to pay. Understanding the simple basics of auto insurance will make you confident that the car insurance policy you choose will take care of your needs in the event of an accident.

In this article, we will walk you through the types of coverage that insurance companies offer and discuss possible insurance needs. Additionally we will look at what affects the price of auto insurance, how to bring the costs down and how to understand the components of your policy.

Types of Coverage
Everyone who drives needs car insurance. In fact, most states require it by law. When you buy car insurance, you are buying what is called a policy. Your policy is based on a variety of factors including what kind of car you drive as well as what kind of insurance you want. Auto insurance policies are actually a package of different types of insurance coverage.

The first step in understanding an auto insurance policy is to learn the various types of coverage insurance companies offer. Some of this coverage may be required by your state and some of the coverage may be optional.

* Liability - This coverage pays for accidental bodily injury and property damages to others. Injury damages include medical expenses, pain and suffering and lost wages. Property damage includes damaged property and automobiles. This coverage also pays defense and court costs. State laws determine how much liability coverage you must purchase, but you can always get more coverage than your state requires.


* Collision - This coverage pays for damages to your vehicle caused by collision with another vehicle or object.


* Comprehensive - This coverage pays for loss or damage to the insured vehicle that doesn't occur in an auto accident. The types of damages comprehensive insurance covers include loss caused by fire, wind, hail, flood, vandalism or theft.


* Medical Coverage - Pays medical expenses regardless of fault when the expenses are caused by an auto accident.


* PIP - Personal Injury Protection (PIP) is required in some states. This coverage pays medical expenses for the insured driver, regardless of fault, for treatment due to an auto accident.


* Uninsured Motorist - Pays your car's damages when an auto accident is caused by a driver who doesn't have liability insurance.


* Underinsured Motorist - Pays your car's damages when an auto accident is caused by someone who has insufficient liability insurance.


* Rental Reimbursement - This type of coverage will pay for a rental car if your car is damaged due to an auto accident. Often this coverage has a daily allowance for a rental car.

Many insurance policies combine a number of these types of coverage. The first step in choosing the insurance you want for your car is to know the laws in your state. This will tell you the minimum insurance you need for your car. It's good to keep in mind that, just because your state may not require extensive insurance, extra coverage may be worth the expense. After all, no one wants to be stuck with thousands of dollars worth of bills because of an auto accident.

List for comparison auto insurance guide on the web

This is The List for comparison auto insurance guide on the web, also shopping and insurance coverage. You can get quotes instantly, and many sites will also offer up competitors' quotes as well

Carrie Coolidge AIGDIRECT.COM www.aigdirect.com Leave it to insurance icon Hank Greenberg to back the best-designed auto insurance site we found. Navigation is easy, and the site has a number of great tools: one helps you decide if you should lease or purchase a new car, another figures out how much your monthly payments will be for an auto loan. If pressed for time, you can fill out a miniapplication that will generate a quote within two days. If you have more time, fill out a longer application form and get an instant quote. BEST: The site's tools are really fun to use--even if you are not shopping for a new policy. WORST: You only get one quote; you'll have to wait forever for someone to answer the toll-free number.

ESURANCE www.esurance.com, Simply designed and customer-friendly, with an emphasis on online accessibility. You can go into a private online chat session with a representative--especially useful if you have questions or problems. Esurance makes it easy to change and recalculate quotes. If your occupation is considered safe, say you're a scientist, an engineer or an educator, you may qualify for a discount. Customers can access their policy to make changes online; the site also offers online customer service (there's a toll-free number for those who want to hear a human voice). Comparison quotes with other insurers including Allstate, State Farm and Safeco are available. If you're not yet ready to apply, you can return later and pull up your saved quote. No other tools or calculators, though. Esurance says it will be expanding to include homeowner's insurance, boat insurance and life insurance in the next year. BEST: Coverage is immediate if you apply online; you can print out your own insurance cards. WORST: Limited reach. By mid-May the service was available in 16 states.

GEICO DIRECT www.geico.comOwned by Warren Buffett's Berkshire Hathaway, Geico offers a no-frills but user-friendly site. Filling out an application is quick--it takes only ten minutes. Then you get instant quotes for up to four drivers and three vehicles. To qualify, though, you'd better have a pretty clean driving record. If you live in Massachusetts or New Jersey, you're out of luck--Geico doesn't underwrite in those states. Rates are competitive. If you want to talk to a real person, you can call a toll-free number 24-hours, seven-days-a-week. BEST: Quick application process. WORST: No tools, bland design.

INSUREONE.COM www.insureone.comAfter a while insurance Web sites begin to look alike. Until recently, Insureone.com was different. Its design was modeled after a department store featuring a checkout counter and rest room signs. But insurance companies are like sheep. Now Insureone.com has remade itself to look like every other site, but it's still a good place to buy auto insurance. The site offers multiple quotes from major insurance companies. There's a great glossary of insurance terms as well as safe driving tips and useful calculators, like one that figures out the cost of an auto loan. You can also shop for life, health, home and business insurance. BEST: Chat online with a customer service rep. WORST: Boring, me-too design.

PROGRESSIVE INSURANCE www.progressive.com, A customer-friendly site that can teach the competition a few tricks. Once you get through the application process, you'll get instant quotes, along with comparison rates from other insurers. That is a nice feature even though the aim is to point out to you that its rates are competitive or better than other insurers. Pick the Progressive quote, and the insurance kicks in immediately--a big plus (you'll still need to fill out a form offline). You can pay for the policy online, change personal information and print out ID cards. The site will even let you check on the status of a claim. Best of all, Progressive is renowned for its very competitive rates. BEST: Great tools, good rates. WORST: Cumbersome application process.

QUICKENINSURANCE www.insuremarket.comPart of Intuit's family of financial products, the site offers quotes from some of the best auto insurers around, including Travelers and Electric Insurance Co. Lets you apply for (and in some cases, purchase) the policies online, but you'll still have to sign and mail back a form to the company that offered the quote. Quickeninsurance offers some really great tools: Plug in your zip code and the make of your car and find out its safety ranking or its popularity among thieves. BEST: Great comparison shopping. WORST: The site was extremely slow to download.

RELIAQUOTE.COM www.reliaquote.comReliaquote's quick and painless miniapplication process generates multiple quotes within minutes of logging on. You'll need to fill out a more complete application when you choose the quote and insurer you like. The biggest drawbacks: Reliaquote does not sell auto insurance, and only a few brand-name insurers offer quotes here. After you choose the quote you want, the information goes to the right insurance company, then you have to wait for a call from the agent. The site does offer a great tool: Auto 101 has tips about how to qualify for discounts and the consequences of late payments. BEST: Simple application process. WORST: No customer service. If you have problems you have to wait for an agent to call you.

YOUDECIDE www.youdecide.comYoudecide.com allows you to comparison shop between 15 different companies, including Progressive and Nationwide. It uses smart software in the application process that will key off your answers and then customize additional questions to arrive at a better quote. For example, if you are seeking coverage for your teenage child, it will ask for her high school grades. If she has a high grade-point average, you might qualify for a discount. Once you get a quote, you will be transferred to the provider's Web site because Youdecide doesn't sell insurance directly. [Ed. Note: Forbes.com offers insurance through a partnership with YouDecide.com] BEST: Easy to navigate; lots of comparison quotes. WORST: Many of the best insurance companies, like Geico and AIG don't participate.

10+ Tips to Help You Save on Car Insurance

1. Drive less and earn a discount
If you drive less than 7,500 miles per year, you may qualify for a low-mileage discount on your auto insurance. And, some car insurance companies offer a commuter discount if you use public transportation during the week.

2. Don't use your car for business purposes
Some insurance companies will add a "business use surcharge" or increase your car insurance premium as your annual mileage increases. But, if you must use your car for business, be sure to tell your company or agent, so that your daily business travel is covered.

3. Increase your deductible
You might reduce your annual auto insurance premium by as much as 10 to 15% if you increase your deductible from $250 to $500. But, remember that you'll be required to pay the larger deductible upfront if you have an accident.

4. Keep an eye on your credit report
Your credit history is one of many "risk factors" that most auto insurance companies evaluate when setting rates (in states where it's permissible by law). Paying your bills on time and maintaining a solid credit history will help keep your auto and home insurance rates lower.

5. Drive safely
You may be eligible for a price break on your car insurance policy if you have no accidents or traffic violations for a specified period (usually three years – but a few companies will look back five years). Even a single speeding ticket can increase your auto insurance rates 5 to 10% depending on your state.

6. Buy a low-profile car
Cars are rated on a risk scale for auto insurance purposes. In general, sports cars and other high-performance, flashy vehicles are classified as higher risks because they are common targets for thieves and vandals, and because statistically, the people who own them tend to drive more recklessly.

7. Move
If you live in a rural community with little crime and traffic congestion, your insurance premium will generally be lower than if you live in an urban area where your car is more likely to be stolen, vandalized, or involved in an accident. We love city life – but sadly it costs more for car insurance.

8. Keep your car in a garage
Cars parked in garages are less likely to be stolen, vandalized, or struck by other vehicles. Using a garage to store your car may get you to a slight auto insurance premium reduction.

9. Install safety or anti-theft devices
Car insurance companies offer a variety of discounts for anti-lock brakes, automatic seat belts, and airbags. Similarly, anti-theft devices such as car alarms and tracking systems (e.g., LoJack®) may also get you an insurance discount because they reduce the chances of your car being stolen or vandalized.

10. Look for discounts
You may receive a discount from your auto insurance company if you buy more than one type of insurance through that same company (e.g., auto and homeowners). A discount may also apply to your auto insurance if you insure multiple cars under the same policy or with the same company. In addition, you can earn money-saving discounts for taking a defensive driving course, being a AAA member or staying with the same auto insurance company for a number of years. These discounts vary by company.

10+ Shop around
OK, it might go without saying, but your current car insurance company might not be the best one for you in the future! We recommend researching your options 30 to 45 days before your current policy is set to renew, especially if you have not shopped recently. (Fact: Insurance.com customers reported annual auto insurance savings of $538 a year in April 2009. Your savings may vary.)

Travelers Launches New Product for Building Services Contractors

Travelers has unveiled a new coverage the company says will help building services contractors better minimize their risks.

Travelers' new IndustryEdge product for Building Services Contractors includes core lines of commercial insurance such as general liability, workers' compensation, commercial auto, property and umbrella, as well as specialized features and solutions. These include:

* Coverage for damage to personal property in the care, custody or control of the insured

* Coverage for scheduled equipment, including optional Lost Keys Coverage, which covers the cost to adjust or install new locks if a client's keys are lost or stolen

* Coverage for theft of a client's property by an identified employee

"In this challenging economic climate, when some building services contractors may not have the means to pay for uncovered claims out-of-pocket, it is imperative that they have adequate insurance coverage and utilize risk management tools and procedures to control costs," said Deb Denker, industry manager for Travelers Commercial Accounts. "Travelers IndustryEdge for Building Services Contractors was designed to help agents and their customers pinpoint the coverage necessary to manage their business."

Money Saving Auto Insurance Tips

Everyone likes to save money and your automobile insurance is a great place to find savings. You’re most likely required by state law to carry auto insurance on any car you own and auto insurance costs can vary widely.

Here are eight tips to help you start saving money with your automobile insurance.

1. Compare auto insurance quotes – this advice might sound simple, but it is the best way to find the best possible auto insurance rate. Get at least auto insurance quotes to compare and make certain you are comparing similar policies.

2. One way to buy less expensive auto insurance is to ask for a high deductible. You will be out a much larger out-of-pocket expense in the event your auto insurance policy is used to cover a claim, but your premium will be substantially lower. If you take your deductible up to $1000, you can expect savings of 40 percent, or more.

3. If your car is older consider reducing the coverage of your automobile insurance. Two types of coverage to think about are collision and comprehensive auto insurance. A good rule of thumb is to drop unnecessary coverage for any car worth less than 10 times the cost of coverage. In the event you make a claim for an older car, the amount you receive might be less than your auto insurance premiums.

4. Your car has a major impact on the cost of your auto insurance. For example, a sports car is going to be much more expensive to insure than a family sedan. When you are buying a car, take the automobile insurance costs into account. Safety features like air bags, car alarms and anti-lock brakes can all help reduce the cost of auto insurance. Other factors that affect your auto insurance premiums include the sticker price of the car, its safety rating, how much it costs to repair and how likely the car is to be stolen.

5. This tip really shows how shopping around and comparing auto insurance can pay off – if you don’t drive very much you might want to find an automobile insurance company that offers a low-mileage discount.

6. Another way to get a lower auto insurance premium is to buy your auto insurance from the same company where you carry other types of insurance, such as home insurance.

7. Save money by being a good citizen. Really. Keeping a good credit rating and a good driving record can reduce your auto insurance costs.

8. Find out if you are able to buy auto insurance with a group plan at your work or through a group like a professional association. Group plans can offer very large discounts on most types of insurance, including auto insurance.

States with Highest Car Insurance Prices

For most drivers, the all-time most resented vehicle expense is not gas, oil changes or even those triple-digit transmission repairs, but auto insurance.

Every six months to a year, drivers voluntarily or, in some states are required to, play Premium Poker: the high-stakes game in which you bet your driving fortunes against the car insurance companies, all of which have better hands than you do.

Even in these days of almost universal nationwide mandatory coverage, about 15 percent of motorists drive uninsured, according to Insurance Research Council estimates. "The problem of uninsured motorists persists," said Elizabeth A. Sprinkel, IRC senior vice resident. "Responsible drivers who purchase insurance end up paying for injuries caused by uninsured drivers."

Other unofficial estimates of uninsured drivers, which include illegal aliens, the underage, elderly, medically unfit and disqualified individuals who are driving, put the total at a much higher level than the quoted 15 percent. An even more frightening recent GMAC study found that one in six licensed drivers currently on the road are unfit to drive. It is estimated that 600,000 drivers in New Jersey alone are hitting the roads without car insurance. However, they (the car insurance agencies) know that sooner or later the odds catch up with nearly everyone, and your chances of making it through your driving years without a major automotive incident are outstandingly rare. Last year there were there were 5,930,182 police-reported motor vehicle traffic crashes, according to the National Association of Insurance Commissioners, resulting in an average of one fatality every 12 minutes (every 31 minutes in alcohol-related crashes), an injury every 12 seconds, and 4,181,000 cases of property damage.

Even more sobering, is the U.S. Department of Transportation's estimate that an additional 10,000,000 crashes go unreported, many because the drivers have no car insurance and just as many because the drivers are trying to avoid a possible increase in their car insurance prices due to the accident.

So what makes up the cost of your car insurance prices? There are four basic standards:

* Who you are: age, occupation, marital status, geographic location, medical condition.

* What you drive: SUV, sports car, minivan, luxury sedan, high performance model, truck.

* How you drive: tickets, DUIs, accidents, high mileage.

* Where you drive: high crime and crowded urban areas, suburban town, rural and wide open spaces.

There are multiple other factors punched into the cost calculator: is your vehicle financed so the cost can be recovered if totaled; what safety equipment does it have (side impact airbags and curtain airbags are much better); driver education courses taken; history of illnesses which could affect driving safety and that occupational information which shows some drivers (like professors and engineers have) as a sub-culture with much better driving records than, let's say, young, blonde celebrities and aging movie stars.

There can also be a credit check and another verification to see if you are one of the 36 million licensed Americans who have been judged unfit to drive in a study by GMAC, the 2007 Insurance National Drivers Test. That probe found that one in six current drivers could not pass a written DMV exam if taken today. The worst odds of running into one, or perhaps one of them running into you, are on the East Coast, while your chances of fewer encounters would be among the best-educated drivers in Idaho and Oregon.

With all of those factors stacked against your chances of continuing to drive without incident or accident, there are things you can do to lower your car insurance prices, like not driving drunk and giving up street-model NASCARs. Then again, there are those you can't control, like where you drive.

Of course if you decide to move in order to lower auto insurance costs, here are some actual numbers to juggle:

The national average annual outlay for liability coverage alone was projected to be $847 for 2007, according to the Insurance Information Institute. The estimate was based on combined stats of the institute and the National Association of Insurance Commissioners, an organization which assists state regulators. It does not include collision or comprehensive coverage.

Car insurance figures like those can be misleading. For example, consider the highway robbery for drivers in major urban areas. According to Insurance.com, drivers in Detroit, Philadelphia, Newark, New York and Los Angeles were paying, from $5,984 to $3,303 a year, in that order as of February 2006, for $100/300/50* liability, $500 deductible each for collision and comprehensive and $100/300* for uninsured. These multi-thousand-dollar car insurance prices are due, to higher density of traffic, increased likelihood of theft or vandalism and greater incidence of fraudulent claims, according to insurers.

The good news about auto insurance costs is that despite the increasing costs of medical care and vehicle repair plus cumulative weather-related damage such as the Katrina disaster, car insurance experts have anticipated a drop in rates. The Insurance Information Institute forecast a drop of 0.5 percent in 2007, once again, for liability coverage alone. That would be the first decrease since 1999.

Making state-by state comparisons is trickier, however, as the official Insurance Information Institute premium charts are only as recent as 2004; the highest car insurance price for that year was $1,221.08 in New Jersey, the lowest, $579.95 in Iowa.

Below are the most up-to-date state figures from the Mid-Year Auto Insurance Pricing Report by Insurance.com. It's based on car insurance quotes given to consumers by participating auto insurance companies in the 47 states where Insurance.com operates, plus the aggregate profile of consumers who shop using their Web site.

The cost of getting caught driving without auto insurance can vary from state to state, depending on the percentage of drivers who are uninsured in that state. In Massachusetts, residents can be charged anywhere from $500 to $5,000 in fines and receive a one-year jail sentence. In Florida, Louisiana, Connecticut and New Jersey, drivers operating a vehicle without the state required minimum will have their vehicles impounded, which can cost thousands depending on how long it takes to recover the vehicle.

Finally, even though there remain two states –New Hampshire and Wisconsin -- which do not require motorists to carry liability insurance, all 50 have some auto insurance requirement about. In many states, motorists can't register a car without showing proof of liability insurance. In others, they don't ask for proof of car insurance until drivers have accidents or tickets on their records.

Can you buy full coverage auto insurance for salvage vehicles?

Vehicles can get a "salvage" title when they have been salvaged or repaired when damages incurred are close to the total replacement value of the vehicle. These vehicles generally have a lower value due to factors such as safety, reduction of structural stability, major damage repair etc. By laws, a salvage vehicle will hold that title and will be indicated on the registration or title.

Auto insurance companies may look at salvage vehicles as unsafe, high risk or even unacceptable vehicles. That is why some insurers can reject or charge additional premium (surcharge rates) for salvage vehicles even when purchasing liability coverage only. Although some carriers may accept salvage vehicles for full coverage, one must be aware that in case of a total loss, one may not receive the full value from the insurance company.

Most carriers will not insure salvage vehicles for full coverage or comprehensive and collision coverage; however, if one does come across one that will, it is important to find out what their rules are on vehicle value assessment and how much you may receive in case of a total loss such as theft. It is common that an insurer will pay out 50% of what the vehicle would be worth with a clean title (not salvaged). Some vehicles can get listed as salvage even for damages from water, fire, theft, accidents or any damages resulting in a high cost vs. value ratio.

If needing full coverage for a salvage vehicle, one can shop for auto insurance quotes from a variety of companies in order to find out which insurer can offer the coverage for the specific vehicle at an affordable rate. OnlineAutoInsurance.com allows consumers to complete one simple form and instantly obtain the rates of multiple insurers.

Auto Insurance Questions - Answers to Important Auto Insurance Questions

Auto insurance is something everyone needs, but not everyone understands. This is not surprising considering that the average auto insurance policy is several pages long and is written in legalese. Unfortunately most of us are not lawyers so legalese needs to be translated for us to understand it. On the bright side, coverage is not as complicated as the dense wording in the policy would make it seem.

Auto insurance is one of the most heavily regulated industries in the country and this is a good thing for the typical consumer. Most states spell out exactly how much coverage you need and every state, excepting New Hampshire, requires your vehicle to be insured.

The state recommendations are a good guideline for the type of car insurance policy you should consider, but remember the state recommendations are for the minimum amount of protection required. It is usually a good idea to purchase more than the minimum amount.

If you are in a higher tax bracket you should definitely have more than the minimum amount for protection. You should also carry more coverage if you have other assets. Basically you want your auto insurance to shield you from any repercussions that may result from an auto accident that you are involved in.

The good news is that increasing your auto insurance coverage does not usually cost much more money. In some cases you can buy fifty thousand more dollars worth of coverage for just a few dollars per month.

The best way to find an affordable policy that meets your financial needs it to search for a policy online. This will allow you to compare costs and benefits of policies side by side. The other benefit to shopping for vehicle insurance online is that it takes very little time.

Remember that the auto insurance company is working hard to earn your business. Any company worth doing business with will have an automobile insurance agent who can answer any other auto insurance questions you may have.

Auto Insurance Calculator - A Useful Tool to Use While Shopping For Auto Insurance

Shopping for auto insurance online is the easiest way to save money, but how do you know what amount of coverage you should purchase? The fact is that many people have no idea how much insurance they have on their vehicle. They are unsure whether or not they are covered if an uninsured motorist hits them, and they don't know how much the insurance company will pay out if people are injured in an accident.

All of the above scenarios can have serious financial, and in some cases legal, consequences. The reason people are often unsure of their coverage level is that they simply bought the amount of coverage that was suggested to them by an auto insurance agent.

When shopping for insurance online people don't even have the advice of the agent to go on so many people have found that an online auto insurance calculator is just the tool to help them figure out how much coverage they need.

An online auto insurance calculator is basically a web based tool that asks several questions ranging from your income bracket to you educational level. The questions are each aimed at discovering what your insurance needs may be and when they are all answered you will get a recommended amount of insurance to purchase.

The car insurance calculator is a good tool to use in order to get an idea of what you need, but remember this figure is still an estimate. If you have any unique financial situations this estimate may not indicate what the policy will actually cost. The only way to find this information is to speak with an insurance agent, which you can do after deciding on which company to use for your automotive insurance needs.

The automobile insurance calculator is a good tool to use in order to obtain a ballpark figure of your insurance needs, but it should be used in conjunction with other methods when searching for a new insurance policy.

Car Insurance Comparison Websites - A One Stop Shop

Working your way through the car insurance minefield can be a daunting prospect. Even in these days of the internet and the availability of a plethora of comparison websites, making sure that you get exactly what you want can still be challenging and you need to consider many factors, not just price.

Long gone are the days when you had to do all the work of ringing around insurance companies or getting an insurance broker to do the work on your behalf. Now, it is as easy as sitting down in front of your home computer, entering your personal details and letting the web quote engines do the work.

Or so it would seem; however, it's not quite that simple. Car insurance comparison websites cannot access all the insurers that would be willing to cover your vehicle, as some insurance companies prevent comparison sites from trawling their quotation engines. Therefore, any potential deal they may be able to offer is not notified to you - the potential car insurance buyer - in their summary results.

So, if you are going to use a comparison website to find your next car insurance policy, ensure that it is a reputable award-winning one - such as a site that has been independently rewarded by a neutral financial institution. If you see such awards on a comparison website then you know that it has genuine quality when it comes to finding you the best deal.

Once you have found such a website make sure that when you compare car insurance quotes you are not focusing simply on the premium quoted but the entire policy package; compare the level of cover offered including such items as the voluntary and mandatory excess levels in addition to other benefits offered.

When you compare car insurance quotes you may find that they can vary widely and in some cases it is because the benefits of cover are so different. If one quoted premium is far lower than the others then it may be because the level of cover is not as comprehensive as others. So, for example, make sure that it's not just third party, fire and theft cover, which can be an affordable alternative but does not cover your own vehicle if you are involved in an accident for which you are culpable.

Finally, make sure that when you request a car insurance quote - whether by a comparison website or directly to an insurer - that you fully disclose all the information requested. You must give details of previous claims and motoring convictions as they will affect the premium you pay. If you do not disclose all the information requested, your cover may be invalid.

Paul McIndoe writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content

Speeding & Your Auto Insurance

You’re in a hurry. You’ve got the pedal to the metal and your favorite song is blasting in the background. Just as you’re counting your blessings, your good mood turns sour. Red lights flash behind you and your pulse begins to quicken. You’ve been caught speeding!

Avoiding speeding tickets and other violations could save you hundreds (even thousands) of dollars on auto insurance rates and make the roads a safer place for everyone.

Read more to find out why keeping your driving record clear of violations can save you money on auto insurance.

Your Driving Record
Not only are fines for speeding tickets and other violations costly, but they can also wreak havoc on your auto insurance premium. Speeding tickets stay on your driving record for several years, and while on your record can increase your auto insurance premium significantly. On top of that, having violations on your driving record can make you ineligible for discounts that help you save more money on auto insurance!

You’ll pay even more for fines and auto insurance coverage should you get cited for a DUI or reckless driving. Fines and court costs for these 2 serious violations will cost you thousands of dollars, could land you in jail, and may make you uninsurable with most auto insurance companies.

Drinking and driving should never go together. Read tips on how to take care of yourself and spot others under the influence in: None for the Road: Be Responsible, Save Lives, Avoid Auto Insurance Increases.

Fast Facts About Tickets & Your Auto Insurance

* Going to traffic school could remove a traffic violation from your record. If you get a speeding ticket be sure to find out if traffic school is an option. Although traffic school might look expensive and time-consuming, clearing the violation from your driving record could save you hundreds of dollars in future auto insurance payments!
* Contesting your traffic ticket in court could improve your chances of getting your ticket dismissed, especially if you attend your hearing and the police officer that issued the ticket doesn’t show. (If the violation never appears on your driving record, your auto insurance premium will not be affected!)
* Getting a ticket outside your home state doesn’t mean your driving record’s in the clear and the news won’t get back to your auto insurance company. These days nearly all states share information about out-of-state driving infractions. Remember, having a speeding ticket on your record means you’ll pay higher auto insurance rates for several years!
* Driving over the speed limit wastes gas and costs you more money. If rising gas prices have you looking for ways to save, read Got Gas? How to Save Money at the Pump.

Safe driving is always in style. Find out ways you can drive more safely and save money on your auto insurance in the Esurance Auto Insurance Learning Center.

Still feel the need for speed? We hope you’ll slow down when you think about the financial consequences, the hassle, and the years of higher auto insurance premiums you’ll have to deal with if you get caught with a lead foot.

Motorcycle Insurance: What You Need to Know

You bought a new motorcycle and you're ready to hit the road. Right? Not so fast. You may think that safety gear is all you need to protect yourself, but if you don't know the basics of motorcycle insurance, you could injure your finances. (I know, I know, it's a terrible joke. But hey, I write for an insurance website, so cut me some slack!)


Why buy motorcycle insurance?
It's pretty simple. Motorcycle insurance is required by law in many states. Besides that, it can protect you from losing your house or life savings or both if you're responsible for causing personal injuries or property damage. It can also cover your medical bills, theft and damage from vandalism. And, if you have a loan or lease, the lender will usually make you buy coverage for the bike itself.

The big one: liability coverage
This is the legally required coverage most people think of when they talk about insurance. It breaks down into two categories:

* Bodily injury liability: Can pay for medical bills, pain and suffering, and loss of wages for people you kill or injure in an accident you cause. Sometimes you don't have to be completely at fault. Even if you're partially responsible for the accident, you might still have to pay.
* Property damage liability: Can pay for repairing or replacing the property of other people, like cars, telephone poles and so forth.

This coverage will also pay for your defense costs if you're sued because of an accident.

Consider buying more than the minimum amount of coverage required in your state. Why? Well, if you have a lot of assets to protect, you'll want to make sure you're protecting those assets. And if you don't have a lot of assets, how will you pay the bills?

Optional but important: protection for you
Although these coverages are usually optional, they all protect you and your property directly. Unless you're rich, take a good look at them.

* Uninsured/underinsured motorist (UM/UIM) coverage: Can cover expenses caused by other drivers with little (underinsured) or no (uninsured) auto insurance. It can cover things like your medical bills, lost wages and pain and suffering. It even protects your riders and other people covered by your policy while they're riding in/on other vehicles or when they're pedestrians.
* Medical payments coverage or personal injury protection (PIP): Can cover a small amount of medical or funeral expenses (or both) for you and your riders, in addition to other people covered by your policy while they're riding in/on other vehicles or when they're pedestrians.
* Comprehensive: Can pay for damage to your bike not related to an accident (e.g., fire, flood, vandalism, theft and animal collisions). Comprehensive is kind of a dumb name for it, since it's pretty cheap coverage that doesn't apply in all situations – but that's what they call it.
* Collision: Can pay to repair or replace your motorcycle if it's damaged in an accident. It doesn't matter who caused the accident – it could even be with a tree. Animals don't count, however. Why is hitting an animal not a collision? It just isn't. However, you can't buy collision without buying comprehensive, so you'll have coverage for animal accidents either way.

Even more coverage
These are some of the smaller and most-overlooked coverages, but they're all relatively cheap for the protection they provide. However, if you don't need them, they're a waste of money.

* Accessory coverage: Can pay for damage to or loss of accessories like modifications, custom paint, safety equipment (like motorcycle helmets), wheels and more.
* Roadside assistance: Can cover towing, minor repairs, and fuel delivery if your bike breaks down, gets stuck near the road or runs out of fluids.
* Rental coverage: Can cover the cost of renting a replacement motorcycle if yours is in an accident.
* Trailer coverage: Covers a trailer used to transport your bike.
* Trip interruption coverage: Covers expenses like food and lodging if your bike breaks down away from home.

And if I buy all that, I don't pay anything else?
If you believe that, you'll believe anything! There's no such thing as "full coverage." It's just something people say so they won't worry. Here's what you usually end up paying for:

* Deductibles: These are what you agree to pay yourself before your insurance takes over. You can choose different deductibles for different coverages. Liability coverage never has a deductible.
* Exclusions: These are situations your policy specifically mentions that it won't pay for. Examples include wear-and-tear and intentional acts. Racing is also excluded.
* Excess costs: Your policy lists a dollar amount for coverage limits. Anything over this amount won't come from your motorcycle insurance company.

Discounts and savings
Many motorcycle insurance discounts are similar to auto insurance discounts. These are some special ones for riders:

* Motorcycle safety training classes (bonus points if you're an instructor)
* Riders club membership
* Theft recovery systems (like LoJack®)

Comparison shopping: boring but useful
Motorcycle insurance quotes for the same coverage on the same bike can be different from each company. If you're getting insurance for the first time or think you're paying too much, it pays to check prices. Just make sure you're comparing the same coverage and make sure the company has a good financial strength rating.

Where the Worst Drivers Live

The worst drivers in America live in New York. Of course, you knew that. You've been in the Holland Tunnel. But now, we have proof.

GMAC Insurance has released the results of its National Drivers Test for 2009. The test, which measures basic knowledge of driving laws, was given to more than 5,000 drivers from all 50 states and the District of Columbia -- and New Yorkers finished last. Last year's loser, New Jersey, improved its score just enough to leap over New York. Hawaii, California and Georgia rounded out the bottom five.

Idaho and Wisconsin drivers tied for the highest average score, with an 80.6.

The point of the test, of course, is not just to confirm what anyone who's tried to merge onto the Thruway already knew. It's to measure how much we know about safe driving. And the news isn't good.

In a press release, GMAC explains, "Results from the 2009 GMAC Insurance National Drivers Test released today found that 20.1 percent of licensed Americans - amounting to roughly 41 million drivers on the road - would not pass a written drivers test exam if taken today." Most of us have trouble, according to the results, with "questions about yellow lights and safe following distances."

The survey has been given for five years. The average score has fluctuated up and down during that time, but this year it is down - 76.6 percent versus last year's 78.1.

GMAC notes, "In general, geographical regions ranked similarly to previous years, with the lowest average test scores in the Northeast, while the states in the Midwest held the highest averages. When comparing genders, men are still more likely to pass the test than women, but the gap is considerably smaller in 2009 (81 percent of males versus 79 percent of females) than in 2008 (87 percent of males versus 80 percent of females)."

And, "The older the driver, the higher the test score." Drivers over 35 were more likely to pass than those under 35, while men over 45 posted the highest scores, and "the age group with the highest failure rates was young adults (18 to 24 years old)."

Curious how you'd do? Take the test yourself at nationaldriverstest.com. When you're finished, GMAC will even let you play a video game that teaches you how to avoid elderly people and aliens in the roadway (no, we're not kidding).

State Rankings

Note: Many states tied for the same position in the rankings.
1 IDAHO
1 WISCONSIN
3 MONTANA
4 KANSAS
5 SOUTH DAKOTA
5 NEBRASKA
7 UTAH
8 WYOMING
8 IOWA
8 OREGON
8 MINNESOTA
12 ALASKA
12 NORTH DAKOTA
14 VERMONT
15 COLORADO
15 MISSOURI
17 OKLAHOMA
17 WASHINGTON
19 NEW MEXICO
20 NORTH CAROLINA
21 VIRGINIA
22 INDIANA
22 MICHIGAN
24 ARKANSAS
24 TEXAS
26 ALABAMA
26 NEVADA
28 WEST VIRGINIA
29 ILLINOIS
30 ARIZONA
31 MAINE
32 DELAWARE
33 NEW HAMPSHIRE
34 OHIO
35 KENTUCKY
36 PENNSYLVANIA
37 LOUISIANA
38 TENNESSEE
38 MISSISSIPPI
40 SOUTH CAROLINA
40 MARYLAND
42 CONNECTICUT
43 FLORIDA
44 DISTRICT OF COLUMBIA
45 MASSACHUSETTS
46 RHODE ISLAND
47 GEORGIA
48 CALIFORNIA
49 HAWAII
50 NEW JERSEY
51 NEW YORK

N.J. Commissioner: State Regulation Helped Insurance Withstand Sagging Economy

New Jersey Banking and Insurance Commissioner Steven Goldman thinks the shaky economy's impact on insurers has been softened in part by state regulation. Sworn in to office by Gov. Jon Corzine in March 2006, Goldman is the chairman of the National Association of Insurance Commissioners' International Insurance Relations Committee and Reinsurance Task Force. Here is some of what Goldman had to say to BestWeek:

State Regulation

If you look at the financial sector over the entire spectrum, the one that has withstood the current economic crisis the best is the insurance sector. That's not by accident. The regulatory structure for the insurance sector has been more effective than the regulatory structure of the other sectors.

Federal Role

The most important part of a federal approach would be in the context of the discussion taking place about a systemic risk regulator. It is difficult for states, either singularly or in the aggregate, to develop programs which would enable the use of systemic risk regulation, which by definition, needs to be across all sectors of the financial services industry. A systemic risk regulator should include representatives from all segments -- including state regulators who regulate the insurance industry.

New Jersey Coastal Insurance

There is affordability and there is availability. We've had a number of new entrants come to the market; we have had surplus lines carriers in the market. It has become somewhat more expensive but we don't think it's become unaffordable and it's definitely available.





Insurers' Adjusting to Auto Reform

Happily, with respect to [the sunset of take-all-comers and caps on urban territories], unhappily with respect to the TREE [Territorial Rating Equilization Exchange] program we put in place. There are a number of carriers who I think understand the purpose. All carriers have been cooperative in working through the process. [The removal of old regulations] coupled with TREE enabled us to remove them without having disproportionate rates follow. We think it's been a highly competitive market.

TREE Progress

Quite good. It is industry board represented; continues to innovate for ways to make it work as smoothly as possible.

PIP Fee Schedule Stuck in Court

We've been trying hard to move that along. We're at the mercy of the court schedule, but we do want to see it implemented. To the extent rates are being driven somewhat higher, that is a principal cause. It would be a great help to New Jersey consumers and to the industry to get a comprehensive schedule in place.

Professional Liability Challenges

It has turned to a softer market the last year or so, so there has been less of an outcry as a result. We've proposed regulations, which would enable us to take a tighter look at the insurance treaties that some of the medical malpractice carriers have entered into so we can be certain there has been appropriate risk transfer. Principally what we are after there is to make sure that the audit committee reports directly to us when we come in about the nature on investments and return on investments. We are also going to propose some ability on the part of the department to review and approve rate increases and decreases.

Auto Insurance Question & Answer

In Tennessee, how many points is allowed before a driver's license is suspended?

The amount of points accumulated on your Tennessee driver's record that will cause your driving privileges to be suspended varies depending upon if you are an adult or teen driver.

As an adult driver you may face suspension of your license once you have reached 12 points within a 12 month period. The TN Department of Safety states that they have set up the Driver Improvement Section of their agency to monitor the driving records of Tennessee drivers and they send out notices when you have accumulated too many points according to state laws.

Drivers that accumulate twelve (12) or more points on their TN driving record within any 12-month period are sent a notice of proposed suspension and given an opportunity to attend an administrative hearing. If they fail to request a hearing, their driving privileges are suspended for a period of six (6) to twelve (12) months. In most cases, when a driver requests a hearing, they are given the opportunity to attend a defensive driving class in lieu of suspension or a reduction of suspension time.

Teenage drivers are looked at closer since they are inexperienced drivers and thus drivers less than eighteen (18) years of age that accumulate six (6) or more points on their driving record within any twelve (12) month period are sent a notice of proposed suspension from the Department of Safety and are placed in the Driver Improvement Program. The driver will be required to attend an administrative hearing, with their parent or guardian present, to discuss the points assigned to their driving record. Certain actions could be imposed based on the outcome of the hearing and the number of points accumulated on the driver's record.

When a teen driver has accumulated between 6 to 9 points:

* Driving privileges may be suspended for 3 to 6 months.
* Driver must attend and complete a Defensive Driving Course within 90 days.
* Failure to attend hearing by the driver and parent/guardian present will result in a mandatory 6 month suspension of the juvenile's driving privileges.
* If a driver's license is suspended, all legal and departmental requirements for reinstatement, including proof of liability insurance, completion of a Defensive Driving Course and payment of reinstatement fees, must be met before driving privileges can be reinstated.

If they have been assessed 10 or more points than:

* Driving privileges will be suspended for 6 months.
* Failure to attend hearing by the driver and parent/guardian will result in a mandatory 6 month suspension of the juvenile's driving privileges and attendance at a Defensive Driving Course.
* All legal and departmental requirements for reinstatement, including proof of liability insurance, completion of a Defensive Driving Course and payment of reinstatement fees, must be met before driving privileges can be reinstated.

If a driver under the age of 18 accumulates 6 or more points on their driving record in a 12-month period following the first offense (so this now counts as a second or subsequent offense of receiving too many points on your motor vehicle record), the driver is sent a notice of proposed suspension from the Department of Safety and is placed in the Driver Improvement Program, with a copy sent to the driver's parent/guardian.

Then their driving privileges will be suspended for 6 or 12 months depending on their driving record. All legal and departmental requirements for reinstatement, including proof of liability insurance, completion of a Defensive Driving Course and payment of reinstatement fees, must be met before driving privileges can be reinstated for the teenage motorist.

Per chapter 1340-1-4 of the Rules of Tennessee Department of Safety Control Division an adult driver shall receive only one (1) advisory letter of caution within a five (5) year period. Also any driver not suspended entering the Driver Improvement Program who has not been involved in the program within a five (5) year period shall be treated as a first offender. So if you accumulate 12 or more points twice within a 5 month period you will be given harsher penalties since the TN Department of Safety will look at it as a second offense.

In Tennessee points are typically kept on your record for 5 years. While too many points may affect your driving privileges, too many traffic violations on your motor vehicle record (MVR) and cause your insurance rates to be affected. Whether you have a clean driving record or a few traffic offenses on your MVR, you can click here to get instant car insurance quotes for the state of Tennessee.


How old do you have to be to sit in the front seat in a car?

Legislation varies from state to state regarding the issue of seat belts, child restraints and when a child may be allowed to sit in the front seat. The National Highway Traffic Safety Administration (NHTSA) recommends all children under age 13 sit in the back seat of a motor vehicle. Many states also suggest that the age of 13 is when it is appropriate for a child to finally sit in the front seat.

For example, the Kentucky Transportation Cabinet notes there is not a state law governing the age of front seat passengers but that the risk of injury is greater in the front seat for children, with or without an airbag. Research shows it is best for children ages 12 and under to ALWAYS ride in the back seat so that is their recommendation as well.

New York State notes that although NYS does not have a law preventing children from sitting in the front seat, it is highly recommended that all children age 12 and under ride properly restrained in the back seat. Researchers estimate that just by putting a child in the back seat instead of the front seat reduces the chance of injury and death by more than 30 percent.

NYS also says that infants in rear-facing car seats should never be placed in the front seat of a car with a passenger-side air bag. While air bags provide effective protection for adult passengers, the great forces produced by an inflating air bag can injure or even kill a child. In fact, the safest place for children of all ages to ride is in the rear seat of the vehicle. If there is no other option, children in forward-facing child seats can ride in the front seat, but the passenger seat should be placed as far back from the dashboard (and air bag) as possible.

Rhode Island's laws state that children who are less than seven (7) years old must be transported in a federally approved restraint seat in the back seat of the vehicle. They require you follow instructions for use described in the restraint seat manual for age and weight.

California law (CA Vehicle Code 2736) basically states that any child under the age of six weighing less than 60 pounds must be secured in a federally approved child passenger restraint system and ride in the back seat of a vehicle. The VC notes that a child under the age of six weighing less than 60 pounds may ride in the front seat of a vehicle when:

* There is no rear seat or the rear seats are either side-facing jump seats or rear-facing seats.
* The child passenger restraint system cannot be installed properly in the rear seat.
* All rear seats are already occupied by children under the age of 12 years.
* A medical reason requires the child to ride in the front seat.

A child may not ride in the front seat of an airbag-equipped vehicle if the child:

* Is under one year of age.
* Weighs less than 20 pounds.
* Is riding in a rear-facing child passenger restraint system.

The NHTSA site says that the rear seat is the safest place for children of any age to ride. An infant in a rear-facing child seat must ride in the back seat if your vehicle has a passenger air bag. Make sure that everyone in the front seat is properly buckled up and seated as far back from the air bags as is reasonably possible when they do reach an age in which to sit in the front.

They also advise drivers to make sure that all young children are properly secured in an age and size appropriate restraints. The NHTSA has an Auto Safety Hotline at 1-888-DASH-2-DOT (1-888-327-4236) which you can call to get more information on this topic.

To find out if your state has any laws that mandate you cannot have a child under a certain age in the front seat, contact your local Department of Motor Vehicles.

New York State, do you have to have a valid driver's license in order to get car insurance?

According to the New York State Department of Motor Vehicles you are not required to have a driver license or learner permit to apply for a vehicle registration or title certificate in state of New York. These requirements also apply to the registration of a boat, a snowmobile, or an ATV.

So without a valid license you can buy, register and title a car in your name however getting insurance will be more difficult. Your driver's license record is one of the main rating factors typically for any car insurance carrier so without a valid license they do not have a motor vehicle record to rate you on. Or if your license is not valid due to it being suspended or revoked than an insurer will have difficulties wanting to insure you since you are a risk to them. Obviously if your license is not valid you are not supposed to be on the roadway with the car and so you driving without a valid license pose liability risks to your insurance provider that they do not want.

If you do not have a valid license due to a medical condition, disability or even due to a suspension or revocation you may still be able to get insurance for a vehicle if you are excluded as a driver from the policy and instead have the person (or people) that are going to drive you around in your vehicle listed on your auto insurance policy as the drivers. The car insurance company could then rate your policy using these drivers valid driver's license record.

Not all insurers are willing to exclude the owner from their own policy so you may need to shop around for the right coverage. There are insurance companies, such as Esurance, that allow another person to insure your car, even without insurable interest in it so that could be another option where the driver is the person insuring the car instead of you the owner without a valid license.

Getting auto insurance without a valid driver's license may be possible but is a lot more difficult to do because of insurance company guidelines, not any NYS State laws. New York State just wants you to carry at least the state's minimum car insurance requirements on your vehicle if it is registered in NYS.