Cheap Car Insurance Isn't Always What It Seems
-
By:
Added: 31-01-12
- 1. "My friend told me that I can use my car at my second job delivering pizzas and that my insurance policy will cover an accident."
1. Age - according to studies, motorists that are 25 years of age and under have higher risk to be in incident compared to those that are over 25 years old. In order to pay reduce car insurance rates; ensure you reapply whenever you reach the age of 50 and 65.
David Ward, Liberal Democrat MP for Bradford East has said that the situation for some areas of Bradford is now 'fast becoming ridiculous.' The Nunn family have now been forced to sell the car, simply as the insurance costs were unaffordable. My Nunn has commented: 'My son is car mad like me, but now his aspirations of running his first car at 17 have been blown right out of the water because companies are charging extortionate prices because they want to get their losses back."
The top ten areas for suspicious claims are parts of Birmingham, Liverpool, Bradford, East London, Manchester, North London, Bolton, Blackburn, Southall and Oldham. These towns and cities account for more than four in ten suspicious claims.
A study carried out by road safety charity Brake
Wrong. With one ticket on your driving record you will still qualify for the Good Driver discount, depending on what kind of ticket you have. However, insurance companies also have internal point systems to configure the risk created by a ticket.
Hopefully, action will be taken quickly to prevent these ridiculous premiums, in the mean time it is recommended that young drivers look into taking the Pass Plus course which can reduce premiums. It is also advisable to start with a car with a small engine which should ensure the car insurance rates car fits into a lower insurance bracket from day one. Other tips to reduce
3. Type of Car - going for a cheap vehicle means that you'll pay cheaper insurance rates. A less expensive vehicle compared to Sports utility vehicle-which do you think poses a higher risk to be stolen?
"For as along as I can remember I've suffered from hayfever, I even had to delay my driving test for about five minutes because I had a bout of sneezes. I decided to take over-the-counter medication to reduce my hayfever symptoms but one day, when I was driving on a country road, I began feeling really tired. I found it difficult to keep my eyes open my car started drifting off the road a little. I pulled over as soon as I found a lay-by. If I hadn't, I could have easily been involved in a road accident and needed to claim on my
If you know that you're a hayfever sufferer and you take medication, why risk the danger of having an accident and claiming on your cheap car insurance? If you're planning a journey try to take medication that doesn't cause drowsiness or even ask somebody else to drive.
6. "I only need the minimum coverage."
Each state has set the required minimum level of insurance coverage, here in California it is $15,000 per person injured, a maximum of $30,000 per accident and $5,000 property damage liability. These limits are very low. Emergency medical services are very expensive and $5,000 worth of damage can be exhausted in a very minor fender bender between two relatively new vehicles. It is a serious mistake to maintain these low coverage levels. You could face a serious financial collapse if you find yourself paying out for medical bills and property damage as a result of being under-insured. Being under-insured could make you vulnerable if another driver decides to sue after an accident.
7. "Insurance companies make up their prices and charge whatever they want."
Insurance companies are required to describe how the rates are calculated and then the rates must be filed for review and for approval or rejection. Any increases or decreases must be filed through the state of California department of Insurance for a review and then the rate is accepted or rejected.
8. "My insurance covers any car I drive."
Some car insurance rates insurance polices, called broad coverage policies, transfer coverage to a vehicle that is made available to you on an incidental basis. Every policy is different. Some companies only transfer the minimum state liability requirements while others are a true broad coverage policy that transfers your specific liability limits. However, many insurance policies are restricted policies or named-operator insurance policies that only cover the named drivers, everyone else is automatically excluded and coverage is not afforded.
9. "If my car is stolen, my insurance company will pay off the loan."
If you bought GAP Insurance when you car insurance rates bought your vehicle, this is true. However, if you have comprehensive insurance and your car is stolen or totaled in an accident, the insurance company will establish the fair market value of your pre-accident vehicle and pay you the actual cash value. This estimation excludes finance charges, interest rates, licensing fees, taxes and other charges you may have accrued throughout the lifetime of your loan.
10. "My insurance company will pay for my car rental."
Your insurance company will not pay for your car rental unless you have purchased car rental expense. This coverage is typically sold only in conjunction with comprehensive and collision coverage.
It is important to read and understand your insurance policy. It is also important to ask questions and address your concerns to your agent.
-
-
Reply |
Report abuse
-
