Monthly Archives: September 2017

The damage to the insured vehicle

Auto insurance is financial coverage of an motor that protects the driver from having to pay out of pocket for any damages caused by traffic accident, theft, or other vehicle damage. Car insurance is the law in the United States. It is purchased for all motor vehicles including cars, trucks, and motercyles. The driver pays a monthly payment called a “premium”. This premium goes to the auto insurance company and they agree to cover the expenses that could be incurred in a traffic accident. This money is used to pay for the damage to the insured vehicle, the proper that is damaged in the accident, and the other vehicle damaged as well.

The amount you pay for premiums really depends in the state you live in and their particular requirements. Some states may not even allow you to get a license without proof of insurance. It’s important to do research about what your particular state requires.

Auto insurance is broken down into several levels and types. We will discuss four of them.

One type of auto insurance is “liability” coverage. Liability is the most basic type of auto insurance and required in all auto insurance. Liability coverage only pays for the physical injury, property or vehicle damage that the driver is directly responsible for.

Another type of auto insurance is “collision”. Collision covers all damage directly relationed to an auto accident. This includes the vehicle itself, and/or physical injury of the driver or passengers as a result of the accident.

“Comprehensive” coverage is financial coverage of motor vehicles in case of damage caused by incidents other than a traffic accident. That includes fire, theft, vandalism, and in some cases, weather damage.

“Full Coverage” is the combination of liability, comprehensive, and coverage.

There are several other types of auto insurance as well. It’s important to do lots of reasearch and be familiar with the insurance laws in your particular state.

As with most auto insurance, you gernally have to pay what is call a “deductible”. A deductible is a set, agreed upon amount you have to pay before your insurance coverage kicks in the case of an accident.

Auto Maintenance Tips

With gas prices high and household budgets crunched as never before, vehicles often get the short end of the stick when it comes to upkeep.  The estimated annual cost of routine auto maintenance runs about $1,200, depending on the make and year of your vehicle.  That’s a substantial chunk of change for most people, but the good news is that there are ways to pare down the cost of maintenance.  Here are a few tips for keeping come extra bucks in your wallet:

Find a repair shop or mechanic that you trust and stick with them – it will save you money over time.  Taking your vehicle to whoever is offering a discount on tune-ups or brake jobs can cost you big bucks in the long-run.  Mechanics want to keep loyal customers and will usually go the extra mile to hang on to your business.  Plus, they’re less likely to perform unnecessary service or overcharge you if you’ve built up a relationship with them.

The dictum that you must change your oil every 3,000 miles isn’t written in stone.  In fact, many experts now say that you can go 5,000 or more miles between oil changes without doing any harm to your engine. Follow your car manufacturer’s recommendations about oil changes, but remember that going an extra 500 miles over the recommended amount isn’t going to make much of a difference.

Consolidate many short trips into fewer long ones.  This saves on gas, but it will also save you money on repairs. Most of the wear to your vehicle occurs when your engine is cold, because the oil hasn’t started circulating around the moving parts yet. Another damage factor is condensation in your engine from combustion.  If you start your car and drive only a couple of blocks to the store or a neighbor’s house, the engine won’t heat up enough to evaporate the condensation or circulate oil. This wears on your engine. It’s not a problem if it only occurs occasionally, but making a habit of it will cause problems and result in subsequent repairs.

Save money on tires.  The big box stores sell most brands of tires, usually for a lot less than regular tire stores. They’ll also install them for you and often include free flat repair, balancing and rotation.  They don’t stock as many sizes as a tire store, but most will order them for you if they don’t have your size.  Check them out before you pay a higher price somewhere else.

Insurance Company Knows About You

If Big Brother is watching, he just may be your insurance company. No matter what insurance company you use, it is guaranteed that they know plenty more about you than you know about them. When you apply for a new insurance policy or when you submit a claim, the insurance carrier gathers a wealth of information about you.

The insurance carriers obtain your credit score and utilize in making decisions. However, they use your score to create something different. By giving different weights to different factors than the credit bureaus, they come up with what is called an insurance risk score. You can obtain your credit score, but you cannot find out what your insurance risk score. Studies have been done that show a direct correlation between someone’s credit score and on how likely they will be to file a claim. The better the credit, the less you will pay for insurance coverage.

Your insurance company will certainly check your driving record. This has a direct effect on whether or not they will insure you and on how much your insurance premiums will be. Driving records are essential as a predictor of insurance risk, and are utilized by all insurance firms.

Insurance firms often buy comprehensive information about potential customers from large database companies. This information could contain your credit report, your driving history, your claims history, your address history, criminal records, lawsuit history, aliases, and the history of vehicles. As much information that can be gathered will be used in making any decisions.

You can double check much of the information that is used by insurance firms. You can obtain a copy of your credit report from Equifax, Transunion, or Experian. You can write to the Department of Motor Vehicles in your state to get a copy of your driving record. It is always good to check for errors on a regular basis. Errors are common, and one error can cost you.