General Auto Insurance

Archive for December, 2010

The Importance of Having Insurance

December 29th, 2010

For you to understand the purpose of insurance you will first have to ask yourself some difficult question, i.e. What if I was involved in an accident how would I settle my medical bills?, my possible subsequent continuing out patient treatment?, or maintain my standard of living or a descent standard of living after the loss of income due to my inability to work because of personal injury?, How will I pay for the living costs for me and my family until when I am in better health?

The answer is insurance for all the above. There are various types of insurance. General Insurance, Home, car, and life are just four of the diverse kinds of insurance policies that are accessible to the public. Insurance is a safeguard for consumers against all the possible wrong things that can happen to them or their possessions.

In certain circumstances particular types of insurance are legally required. Many governments require car owners to have an insurance policy for each vehicle the person or business owns. In other words, vehicle owners are legally required to buy an insurance liability policy that will compensate those that you have an accident with, but will not compensate your losses. If you would want to also cover your losses, you could buy a more comprehensive policy that will compensate for damages to both you and the 3 rd part in the accident; this policy can comprehensively cover medical costs and property/financial damages.

Therefore the basis as to why insurance is important for vehicles is that it covers you from having to pay large sums of money in damages out of personal finances in the event that you are found liable for the accident. Without automobile insurance policy, you might lose all that you have, and go into debt so as to pay for damages. Another type of insurance policy that is important is the house and contents insurance, the lowest policy level is often based on the probability level worked out by the insurance company.

Their are options in policy lenders for home owners to add to this level of insurance in order to protect such things as their furniture, home fixtures and décor and other personal items against loss. Insurance policies will more often than not extend to 3rd parties who may be affected on the premises should they find themselves in an accident and sustain injuries. Therefore one of the most important reasons for insurance is to protect the owner from legal actions that may arise from 3rd parties as well as to protect themselves from losses they may incur as a result of accident or damages to their property.

In addition to home and content insurance there are many more types of insurance policies. There are policies that insure against loss of income should you be injured; there are business policies that can cover workplace compensation or criminal activities by employees; there are high end policies that can cover expensive and unique items that have to be specially valued such as jewelry. All this tells us that the importance of having insurance is that it can cover almost everything you own and value against loss.

One last note: be sure to learn more insurance, get a general insurance review and learn about various types of coverage before you buy.

By: Andrew S Clayton

About the Author:

Andrew Clayton is a writer with a passion for general insurance review who enjoys sharing insights about his passion with others

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Posted in Articles

Tags: Standard Of Living

What Repairs Will Car Insurance Cover?

December 29th, 2010

This depends on your individual policy as not every deal will pay out for the same kind of repairs. To begin with, car insurance comes in different levels and more basic policies may only pay out for a limited scope when it comes to damage.

The three common types of car insurance are third party only (the most stripped-down kind of policy and the legal minimum required to drive a car legally), third party fire and theft, and fully comprehensive. ‘Third party only’ only covers you for damage or injury which is caused to a third party in an accident. You will have no cover for personal injury or damage to your own vehicle. It is designed to pay out against claims made against you if you have an accident – and a policy like this will not cover damage to your vehicle.

Third party fire and theft does the same as third party but will pay out if your car is damaged by a theft or by fire, typically because someone has stolen it and attempted to or succeeded in burning it out. Fully comprehensive car insurance is often simply called ‘fully comp’ and protects against everything covered by the above policies plus accidental damage. Accidental damage normally means damage to the vehicle named on the policy, and will often include malicious damage i.e. vandalism. Fully comp is designed to cover damage caused in any kind of accident, from the broken bumper caused after you reversed into the garden wall – to a new bonnet, headlights, and windscreen caused after an accident with another vehicle.

There will normally be some exceptions where the policy may not pay out. You can normally expect repairs to not be covered if the damage was caused during an off-road or racing event, perhaps on a track. You will normally need to get special policies to protect against this. The payout will not be forthcoming if you allow an uninsured driver to drive your car, i.e. lend it to a friend who is not covered who then incurs damage.

A general car insurance policy will also not normally cover against maintenance repairs. However, there are special policies which can cover this and breakdown insurance could help you out if your vehicle develops a fault and leaves you stranded. In such circumstances, this cover should pay out towards breakdown assistance, typically allowing you access to an on-call mechanic to come out to wherever you have broken down. Some specialist policies will also pay out towards significant repairs, which can be useful if you have an older car. Parts covered by repair insurance may include things like head gasket repairs and replacements, starter motors, cam belts and radiators.

What is covered depends on your individual policy:

Third party only will pay out only for damage repairs to other people’s cars. Fully comprehensive pays out towards accidental damage, minus any excess on your policy. Maintenance repairs normally not covered. Common extras including breakdown cover and car repair insurance are available.

By: Russell Marlow

About the Author:

Russell Marlow is a London based freelance writer who writes about financial products including car insurance [http://www.tescocompare.com/car.shtml].

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Posted in Articles

Tags: Vandalism

How to Pay Less Car Insurance Premium

December 27th, 2010

Owning a car is a huge commitment on its own, but owning car insurance needn’t be. Although car insurance is a must under the law, there are various methods you can use to pay less premium and gain more protection. The first thing you should do is to discard the mentality that car insurance is a boring must-do. If you start with this thinking, chances are you are going to take whatever that is served to you and take the shortcuts to getting your car insurance and forget about it.

A general rule of thumb is not signing up with the first company you come across. At this stage, you basically do not know what other company have to offer. Needless to say, you should be comparing four or five companies and pick out the best one. But if you are like other normal folks, going from one company to another is not your idea of fun. So what you can do is turn to the internet! By keying in simple information such as your location, age, gender and car details, you can get hold of auto insurance quotes from various companies in a matter of minutes.

Before you proceed to get an online quote, there are various things you need to know in order to secure the best insurance rate. You need to understand how insurance company determine their premium rates so you can work these factors to your advantage. Try to think from the insurance provider’s perspective.

Basically, your insurance provider will want customers who are ‘low risk’. What this mean is you need to convince your insurance company that you are a careful driver who are not likely to make a claim. Also, insurance company need to assess how much they likely need to pay you if you do make a claim.

For example, if you have past records of road accidents stretching back as far as six years ago or have been issued plenty of speeding tickets, you could be paying a higher premium. The same thing applies if you drive an expensive or new car that will require a higher repair cost. So, as you can see, figuring out insurance premium is really not complicated at all.

Also, the more frequent you use your vehicle and the mileage you go, the more likely you are to be involved in a car crash, as far as your insurance company are concerned. Even the neighborhood you reside in can play a role. Staying in a safe suburb rather than the city slump can reflect in your premium quote too, due to lower possibility of theft and vandalism.

A big mistake made by the majority of car owners is buying and forgetting about their car insurance policy. Your car insurance provider will slowly get a clearer picture of what kind of driver you are and your ‘riskiness’ could have decrease since the time you sign up for the policy, especially if you have been maintaining a clean record. Overtime, you may be eligible for discounts that is not made available to you before. To see if you qualify for such discounts, make a review of your policy with your insurance provider every year.

These are only some of the things you can look into to get a better premium rate. In fact, there are many more details you can work on to secure a better quote. The key is to be an informed consumer and adopting a proactive approach to car auto insurance.

By: Steff X

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Visit [http://www.CarAutoInsuranceGuide.com] for more tips and information on getting the most affordable auto insurance out there.