All posts tagged auto insurance

Car Insurance: How Much Coverage Is Too Much

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Buying car insurance coverage can be a confusing experience for many people, most of whom wind up purchasing more car insurance than they really need when they get full coverage insurance to protect their vehicles and others. Certainly, it is good and reassuring to have auto insurance coverage, and all Canadian provinces require some level of liability insurance to pay for injuries to others and property damage. But buying too much insurance coverage is almost as wasteful as not buying enough.

Full-Coverage Car Insurance Is Not Always Needed

Whenever financing the purchase of a vehicle, the lender will require full coverage insurance with a reasonable deductible amount to protect the loan collateral. But once that vehicle is paid off, maintaining full coverage insurance might not make sense. If the value has depreciated enough, paying for full coverage insurance is not a wise move. Most vehicles worth less than $5,000 don’t warrant full coverage unless they are financed, and insurers will refuse to provide full coverage insurance for vehicles that are worth only $3,000 or so, according to Underwriters Insurance Brokers (BC) Ltd., a provider of auto insurance in Vancouver.

Many Additional Protections Are Not Needed

When buying car insurance in Vancouver or other provinces, a lot of insurance professionals like to talk people into buying additional insurance coverage beyond liability, collision and comprehensive insurance. Most people do not need many additional insurance items, such as rental car insurance, towing coverage, trip interruption and other types of optional insurance protection. Most people have credit cards that provide free rental car insurance coverage, so having additional insurance through an auto insurance policy wastes money.

Trip-Interruption and Towing Not Always Needed

Likewise, trip-interruption insurance is good only for people who travel a lot by car. Those who only drive in town and use airlines, rail and rentals when traveling generally won’t benefit from trip interruption. Towing service also is relatively affordable, but in many cases, the benefit amount does not warrant several years of additional coverage payments. In most cases, a vehicle won’t be towed more than one or two times with a maximum benefit amount of $125 or so per tow and the bill paid up front.

Careful Planning Can Prevent Wasted Cash

When discussing insurance options with insurance producers, people need to ask about policies and the coverage they include. In many instances, they will find additional protections they likely won’t need. Eliminating unwanted coverage will make insurance more effective and more affordable and prevent people from paying for too much car insurance.

Life in the Carpool Lane: Everything You Need to Know About Insuring a Teen Driver

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Having a teen driver is a big source of worry for parents, especially within the first year of having their license. There is a lot that teenagers don’t understand about driving, cars, costs of repairs, etc., and it’s up to you as a parent to teach them about these things. While you may be an expert with your own insurance, you need to know some specific information about insuring your teenager’s vehicle. Read on to learn the essentials of insuring a teenage driver.

The Cost of the Car and the Cost of Insurance

Generally, newer cars are going to be more expensive to insure because states usually have laws requiring a certain level of protection for them. However, you need to weigh out the benefits and the drawbacks. An older vehicle is likely to save you money on insurance, but it also likely has a greater chance of breaking down, which could just lead to more repairs in the end. Knowing the type of usage the car will get helps with this decision.

Drivers Education and Car Insurance

Depending upon the state that you live in, driver’s education might be required. In these areas, it is unlikely that your teenager is going to receive a discount for insurance because he or she was required to take the program. When you are living in a state where driver’s education is optional, ask the car insurance company if a discount is available once the course has been completed.

Receiving Good Grades and Discounts

Encouraging your teenagers to do well in school now has another benefit; it could save you or them money on their car insurance. Find out about the specific requirements of the program when you first sign up. Each car insurance company is going to have a different minimum grade or grade point average that must be achieved for the discounted rate, but many of them will likely have a minimum grade requirement of around a B or higher.

Paying the Deductible

Fully understanding insurance is something that even some adults have difficulty with, but you want to make sure this point is crystal clear to both you and your teenagers. When you have to go through your insurance to pay for the damage on your car, you generally need to pay a deductible. This means that the entire cost of repairs is not paid for by your insurance company. A $500 deductible is fairly common. Therefore, you want to ensure that your teenager has this money saved up if something were to happen with his or her vehicle, and that they know how much a crash or fender bender could set them back.

Talking to your teenagers early about car insurance is smart so that way they know about the costs associated with it and how they can keep their rate down. One day, your teens will be paying for their own insurance, so it’s helpful to help them learn the ropes now. Teen drivers always present a risk, but if you get your insurance set up properly from the get-go, you will have less to worry about.

AUTHOR BIO: Dixie got her advice for this article from the professionals at the Valley Driving School who offer driving lessons in Vancouver.

Sporty and Spendy: This Year’s Most Expensive Vehicles to Insure

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There are many cars on the road today built with just one thing in mind: speed. These are not cars taken to drive leisurely around town, or used for work and errands on a daily basis. These are the cars boasting lightning fast speeds, and also extremely high insurance rates. Nissan, BMW, Mercedes-Benz, and Porsche all have these speedy models, which also come with the highest insurance rates of 2014.

Porsche Panamera Turbo S

According to insure.com, the Porsche Panamera Turbo S is fifth on the list of cars with a pricey insurance rate for 2014. On average, it costs $2970 to insure this car every year. Why such a high price tag? The Porsche Panamera Turbo S boasts 570 horsepower with turbochargers, allowing this vehicle to top out at speeds of 192 miles per hour. In addition to its ability to reach breakneck speeds, the Porsche Panamera Turbo S is also a four-seater, adding backseat passengers to its risk potential.

Mercedes-Benz CL550 4Matic AWD

The Mercedes-Benz CL550 4Matic AWD comes in next on the list of cars with the highest insurance prices of 2014. On average, this car costs $3019 annually to insure. The reasoning behind this price is simple—this car is designed to throw caution to the wind, with 429 horsepower and the ability to go from 0-60 miles per hour in 4.8 seconds.

BMW M6

The BMW M6 is the second most expensive car to insure in 2014. The 560 horsepower engine and the ability to accelerate from 0-60 miles per hour in just 4.1 seconds give this car the speed many crave, and the liability insurance companies dread. Because of this, the cost to insure the BMW M6 is $3065 annually. The coupe model of the M6 is even costlier, due to its lightweight carbon-fiber roof, which both increases its speed and makes it more prone to damage in the event of a collision. 

Nissan GT-R Track Edition

Finally, in the number one category of the most expensive cars to insure is a vehicle with a maker that might surprise you. Nissan’s GT-R Track Edition is the premier sports car for those enamored with the idea of achieving racing speeds. This vehicle, equipped with a turbocharged V-6 engine and a six-speed automatic clutch, accelerates from 0-60 miles per hour in 2.9 seconds and boasts a 545 horsepower engine. The newest model removed the back seat in order to increase the speed and performance of the car. To insure this vehicle, the annual cost is $3169.

A Nova Scotia insurance specialist from Eisenhauer Insurance Inc. reports that car insurance companies typically assess a vehicle’s risk factor to determine the rates they will apply to that particular vehicle. The above listed vehicles all embody a certain amount of risk due to their ability to reach high speeds quickly. Because these cars are, on average, priced over $100,000 and have significant wreck potential, the insurance rates are much higher than those of an ordinary car or SUV.

Five Of The Best Companies To Buy Car Insurance From

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The average person spends a total of 101 minutes driving per day, making it a common activity that is often necessary to maintain a career and fulfill daily responsibilities. With a significant amount of time spent on the road, the type of insurance used is often just as important as the type of vehicle that is driven. Although there are thousands of companies to purchase insurance from, there are a few in particular that offer the best services.

State Farm Insurance

State Farm Insurance continues to grow due to the easy and professional claims processing that it offers. They have a high level of coverage options, as well as strong financial strength ratings. The company’s rates are also based off of mileage and how frequently the driver is on the road for fair pricing options.

Farmers

Farmers Group offers accident forgiveness and new car replacement to its customers with a number of discounts that reward drivers for their vehicles and driving performance. 30 percent of their current customers were recommended to the company through a friend due to the high level of customer service and overall value of the policies.

USAA

USAA is well-regarded for its 12-month auto insurance policies that it offers and a no-drop promise for drivers who have accidents or traffic violations. According to Anthony Clark Insurance Brokerage, a company that offers auto insurance in Calgary, USAA is most recommended for their affordable policies and variety of discounts that are available.

Nationwide

This company has high levels of customer satisfaction due to the coverage options that include vanishing deductibles, accident forgiveness, and a convenient mobile app to use on the go. Customers report great customer service with an easy process when filing a claim.

Geico

Perhaps one of the most popular car insurance companies, Geico offers competitive prices with their policies and an abundant amount of discount options to drivers. Since 1936, it’s continued to grow as a company and also offers coverage for RVs, ATVs, motorcycles, and even boats.

Although finding the right policy can be a challenge due to inexperience with certain companies, the reviews of customers often prove to be effective when ranking the top insurers. With accidents and injuries that commonly occur while behind the wheel, it’s crucial to choose a quality insurance company that will offer an easy and convenient process after filing a claim.

Savannah Coulsen is a freelance  writer. She lives in Raleigh. Savannah loves to read and write and she hopes to write a novel someday. Savannah also loves learning and is a self-proclaimed health guru. Savannah got information for this article from Anthony Clark Insurance Brokerage, a company that offers auto insurance in Calgary.

Beating the System: 6 Keys to Reduce Your Car Insurance Rate

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One of the most perilous things that we can do is a drive a car. It can become a very severe or expensive situation if one driver makes a mistake. This potential high cost is transferred to car insurance premiums. There are many factors involved when it comes to determining car insurance rates. Insurance customers have no control over that part of it. There are some things that you do have control over. There are ways that you can reduce your car insurance rates.

Switch Vehicles

Every vehicle is assessed a different risk variable. This depends on a number of factors. This includes cost of replacement parts, crash test rating, classification, price, how often the model is stolen, and horsepower-to-weight ratio. You should avoid newer vehicles, expensive vehicles, sports cars, and those that are not considered top class when it comes to safety. These are generally smaller vehicles. Insurance make and model comparisons are reported every year. Every insurance company will share similar information if you ask for it.

Pay Up Front

If you pay for the year ahead all at once instead of paying a monthly payment, some insurers will offer a discount. You should pay up front if you have the cash on hand. If you switch insurers, you don’t have to worry about losing your cash. Your insurance company is required to pro-rate you the total bill. They will refund you for the days that you will not be covered under them.

Drive Safely

Your driving record is still considered to be one of the top factors that insurance companies look at. An accident or a traffic violation within the last few years can have a major impact on your premium. Some insurance companies look back about three years. Others look back further than that. You can also reduce your premium the longer you drive without any accidents or citations. There are also driving training courses that you can take as well. This can help reduce your car insurance. Some car companies have begun installing functions into their vehicles which automatically track avg mileage, driving patterns, speed patterns, and braking patterns among others. These features which are directly reported to insurance companies help them evaluate your risk to them. It is a potential savings option if you are confident in your driving.

Reduce Miles

If you drive less miles, a number of auto insurance companies will offer you a lower premium. You may want to consider moving closer to your job. This can save money on fuel and commute time. It will also reduce your car insurances rates. You can reduce your miles by doing this. There are pay-by-the-mile programs that are offered by insurance companies as well. This can cost you less if you rarely drive.

Improve Credit Score

Credit history is being looked at lot more by insurance companies. It is a much highly valued variable that helps insurance companies evaluate your financial standing. Financial standing holds a strong correlation to potential insurance loss. It is important to remember that the less you come across as a liability to insurance companies the cheaper your rates will be.

Purchase Vehicle With Theft Device

You can buy a vehicle with a theft device or you can have one installed. This is important to insurance companies because the liability factor of them having to cash your insurance decreases substantially.

There are plenty of ways to reduce your car insurance rates. Some of these options may vary in different states. You can also look into deductibles, safer car benefits, and sponsored programs to try to get a discount on your car insurance as well.

Informational credit to Drayden Insurance Ltd., an Edmonton car insurance company (free quotes).