Five Steps to Choosing Car Insurance

So you're looking for different types of car insurance?

Finding the right car insurance can be a difficult task. You can search and search for what you're looking for, but you may never find the right car insurance because the insurance companies give you the good information on them and the bad of others. You could spend hours on end looking and deciding what auto insurance to buy and in the end most people aren't satisfied with what they choose.

It is difficult to rest your mind and decide to spend money on a certain car insurance company because most of them are different. Many car insurance companies do not offer the same services as others. For example, Geico may offer better rates than Allstate, but Allstate may offer more protection. It is important to be aware of what insurance companies can give you and what they can't.

The difficult part of choosing an insurance company is really deciding which one is better. The truth is none of the insurance companies are any better than the other. Just because Nationwide is not as well known as, let's say Progressive, Nationwide can give your car as much coverage as its competitor. An easy way of choosing auto insurance is to read about a few of them and decide which one has the better offer in your eyes and how it can benefit your life.

Choosing car insurance can be done in five easy steps:

1. Type car insurance into a search engine such as Google or Yahoo.
2. Scan through the multiple links to different car insurance sites such as Statefarm and Esurance.
3. Pick one of them and read about what they have to offer.
4. Go back and research the other available insurance companies.
5. Once you have found one that satisfies you, then you have found the best car insurance for you.

I know I might sound very general when giving these steps, but the main point is to research and learn. Don't make a big deal over choosing what type of car insurance to get. Some companies give more coverage than others, but that is only one out of many services. If you truly want the best car insurance then decide for yourself by researching them.

Another good way to decide which car insurance company is better is to get a free quote. Some companies offer car insurance quotes for free, but remember that they are competing against other companies so they are going to try and make their company and coverage seem better. One way they will do this is by comparing their best contracts with other company's worst contracts. But, just because some companies do this, it doesn't mean all of them will. The best thing to do is either get multiple quotes from different companies or get quotes from unbiased point of views (someone who is not being paid by the insurance companies).

Article Source: http://www.insurancearticle.com

Finding Car Insurance For Teenage Drivers Is Not Always Easy!

I can remember it well. Passing my driving test was perhaps the single most important day of my life. I was simply overjoyed, no, overwhelmed, ecstatic, elated. In fact, I was so thrilled at having passed first time that I gave myself a throbbing headache with all the overexcitement, but who cared. I had arrived. Look out girls, the new man about town will be cruising down a street near you!

Alas, it wasn't so long after that that the bubble popped and the realities set in. Oh, I had saved hard enough and long enough with my part time work to buy my first motor, but being a young and inexperienced driver meant that finding affordable car insurance was not going to be an easy task. Actually, some of the early quotes I got worked out more than what the car was worth. Can you believe that!

Good ole dad came to the rescue and gave me a much needed reality check. First he explained why car insurance for young drivers was so pricey, and then he gave me some real useful tips on how to adjust to the situation so that I can get my first motor and gain some much needed experience. Here's what he told me:

The first and obvious fact was that young drivers, and in particular young male drivers, are among the most reckless on the roads, therefore making them a high risk to the insurance companies. As the insurance business is out to make money, many are reluctant to hand out policies to young drivers. Many will deter you by offering a ridiculous premium that is well out of the reach of Joe the average teenager, or they will simply refuse to quote.

My dad went on to say that there are ways to get into the good books of insurance companies and methods to lower your early quotes. One of the first tricks is to forget the snazzy sports car as your first purchase. It's always wise to go for a car that has a low insurance group number both for safety and cost reasons. If you are purchasing in the UK, these numbers range from 1 to 20, and the higher the number, the higher the premium. So, it's important to narrow down your first choice of car by the insurance group number. Higher numbers are usually determined by a few factors including bigger engines, faster vehicles, and a higher price tag etc.

A low insurance group vehicle on the other hand, is obviously cheaper, smaller and less expensive. Ok, so this probably means your first wheels are not going to be the lady puller you hoped for, but be a little patient, play by the rules, and you'll be getting your experience and no-claims bonuses banked in no time at all. Another advantage of purchasing from the low insurance group is that you will be looked at as a responsible kid by the insurance company. Many folks stay with the same company or broker for years and once they build up a good relationship with the insurer, there are some great deals and discounts offered over time.

Another cost cutter is to purchase only third party fire and theft insurance which will drastically reduce your premium. If your first car is old and inexpensive, maybe you don't need to take out fully comprehensive cover. However, if you have spent a fair bit on your first motor, then only fully comprehensive will do of course.

Article Source: http://www.insurancearticle.com

Can Gap Insurance Save You Thousands Of Dollars On Your New Car?

Have you recently purchased a new car? What if an accident occurred soon after taking your brand new vehicle off the lot and your car was totaled? Your car insurance policy has full coverage insurance on it so you' think that your vehicle is covered... or maybe it isn't.

Did you know that when you drive your new car off the lot, the value of your vehicle immediately goes down, sometimes as much as 20%-30%.

Let's say that you paid $20,000 for you new vehicle and you have an accident a month later, and your vehicle is totaled in the accident. Maybe you made at the most one payment and if you did not put very much money down, your loan amount is still close to the $20,000 purchase price. Especially considering that you would have financed the tax and other fees.

Unfortunately, even with full coverage on you car insurance, which includes comprehensive and collision, you will only receive the fair market value of your vehicle which could be as much as 20%-30% ($4,000 - $6,000.00) lower than the purchase price.

That means you may be stuck paying that 20%-30% ($4,000 - $6,000.00). On a $20,000 car. Just a 20% depreciation on that vehicle would be $4,000! That amount could be more if you financed your taxes and license into your loan.

If you have purchased Gap insurance with your current insurer, it would insure you for the difference between the loan amount on the car and the actual fair market value. But, not all insurance companies offer Gap insurance.

Gap insurance can also be purchased seperatly from other insurance companies than the one insuring your vehicle.

The most frequently asked questions about Gap insurace are as follows:

What is Gap insurance? Gap insurance will insure a vehicle for the difference between what is owed on it and what an insurance company determines to be the fair market value of the vehicle. A very cost effective way to financially protect yourself from a total loss when buying a new car is to purchase Gap insurance.

Is Gap insurance required on all new vehicles? No.

Can I buy Gap insurance for my older vehicle? Gap Insurance is available on new, used, and refinanced cars, trucks and SUV's purchased or refinanced within the past 12 months.

What does Gap insurance cover? The difference between the actual cash value of your car and the balance on your car loan is called the Gap. If your car is stolen or declared totaled, your auto insurance company will pay you the actual cash value of the car. Without Gap Insurance your lender will hold you responsible for paying the Gap (difference). The net effect is that you will have to come up with hundreds or thousands of dollars to pay off that debt.

Does my leased car automatically come with Gap insurance? Frequently, Gap insurance is built into the lease rate but don't assume it is since every lease is different.

Can I buy Gap insurance from the dealership? Yes, most dealerships offer Gap insurance but usually at a higher cost. Check your current policy to see if you already have Gap insurance before shopping for a new Gap policy. Before buying a new car you should call your current insurance company to see if they offer it.

Article Source: http://www.insurancearticle.com