I Just Want Liability Only Car Insurance – How Much Is It?
Reader question:
Right now I’m purchasing a car through a finance company. At what point am I able to get rid of the comprehensive and collision car insurance coverage and take it down to the minimum personal injury and property damage liability?
Isabel
That’s a good question, Isabel.
It really depends on what it says in your vehicles contract. For most vehicles, and probably all vehicles, which are purchased with the add of a financing institution such as the car dealer ship or a bank, extra coverage for comprehensive and collision, and sometimes gap coverage, is required until you have finished paying of your loan from the financial institution and they no longer have the risk of you ending your payments with them when the car has not been entirely bought. There are some dealer ships and banks that are more strict about this than others, but for the most part the best idea is for you to understand what your contract says and, if you have any questions, for you to just call up your dealer ship or where you got the loan from and ask what the policy is in regards to dropping your car insurance coverage for your new vehicle.
For the most part, though, in order for you to get rid of your extra required coverage on your vehicle, what you must first have is the pink slip noting that you have paid your new vehicle off completely, and a title in your hand allowing that you are the sole owner (unless you have a co signer, of course) of the vehicle in question. If you don’t have this, then you are in essentially a joint agreement between yourself and the financial institution that financed your purchase of the car. What’s yours is theirs and what’s theirs is theirs. If you decide to drop youtr coverage before the time comes up, they could either be surprisingly nice, or they could assert their ownership and repossess this car. Most financial institutions will try to get you to get insurance on your own first, because it is a lot more beneficial to them if you keep making payments on your car than it is if they have to sell it for a very depreciated price, so you probably wouldn’t have it repossessed right away.
Consider that it is not only in your vehicle insurance company’s interest, or in the financial institution financing your car’s interest that you have insurance on your new vehicle, but also in yours. It protects your health, your vehicles, and most importantly, your finances and credit report. While it’s good to have liability for the case of you causing an accident, the same important must be put on the other cove rages, because you can be in just as big a problem for having no insurance on a vehicle that you still haven’t paid off.
If you really are having a hard time trying to pay your car insurance coverage premium, then you should try alternative ways of making your bill smaller. You can try raising your deductible and asking for discounts, as well as getting instant online car insurance quotes from different companies.
Cheers,
Fashun Guadarrama.
What Happens to My Car Insurance Rate After An Accident?
Reader question:
I have pretty much every type of car insurance coverage available on my car. Now what do I do if I get into a car wreck?
Jimmy
Great question!
While the brunt of the handling of the situation will rest with your car insurance company, you will have to do your own share as well. Because of this, you should always be prepared and know what to do ahead of time. It’s good that you are taking interest in this in advance. Here are some guidelines to follow when you get into a car insurance accident.
- Keep an insurance kit in your car. This will contain things like your car insurance card, a disposable camera, a flashlight, pen and paper, phone numbers you might need, and anything else you can think of that might be necessary in the case of a car accident. Stick it all in your glove compartment for easy access.
- Stay cool. If you freak out, not only might you forget to do things that you need to do at the scene of the accident, but you might forget more about what happened when the time comes to tell.
- If there are any injuries, no matter how not serious, call 911.
- If it is possible, drive both cars to an area where they are not in the way of traffic. You already got into one accident for the day, you don’t want to cause another.
- If the damages are more than you can pay, then you should call a police officer so that a police report can be filed. The cop will want to get information from you as well as for those who witnessed the accident, and it is important that a police report be filed with both sides of the story.
- Use your camera to take pictures of damages. This helps you avoid fraud.
- Sometimes you are unable to get a cop out there to file a report. If this happens, you an the other driver have to go to the station to do it yourselves.
- Always report the accident to your car insurance company, and if it is for more than your deductible, file a claim. Even if the other person said that wouldn’t file a claim, call anyway, because you never know if they are telling the truth and you want your car insurance company to hear it from you first.
Cheers,
Fashun Guadarrama.
What Are The Different Types Of Car Insurance Coverage And Which Should I Have?
This car insurance commercial that I found on YouTube really cracks me up. It sort of embodies the confusion that most people feel when they are trying to hash out their car insurance policy with their company, and everything seems both repetitive and lost on them every time. I’m going to try to help make this feeling a little better by giving you a short guide to different types of car insurance coverage that you might need when you go to get your policy.
- Comprehensive.
Comprehensive coverage is often required if you are financing a vehicle, but is to required by law in any state. This covers any damage or loss of vehicle in the event of a natural disaster, such as a flood or fire, or in the case of theft or vandalism. These are basically accidents that do not involve driving.
- Collision.
This is another type of coverage that might be required by your financer. Collision covers the damages or total loss of your vehicle of you get into a car accident with somebody else and you are the at fault driver.
- Gap insurance.
Third in the financer trilogy, gap insurance picks up where all of your other coverages leave off. In order to get this type of coverage, you have to have the max limits on all of your other coverage. This could be a lot of help if you total a car that you’re still paying on, because the value is often less than what you still owe.
- Liability.
This is the basic car insurance coverage that is required by most states. Liability encompasses three types of coverage, for injury or death to one or more persons, and for property damage. It covers the other driver in the case of an accident in which you are at fault.
- Uninsured/underinsured motorist coverage.
When a driver causes an accident and does not have enough insurance, or any at all, to cover your damages, this type of car insurance coverage kicks in.
- Personal injury protection.
This is very popular in no fault states, and where it is not required might not be necessary if you have health and life insurance. It kicks in before the other driver’s liability does, and covers you if you are at fault. It handles medical expenses, wage loss, and death.
Cheers,
Fashun Guadarrama.
Can I Get a Car Insurance Discount For Being a Safe Driver?
Reader question:
I have a very good driving record, but my car insurance rates could still stand to go down a little bit. Is there something that I could do to make this happen?
Joel
Glad you asked, Joel.
I’m going to concentrate on the fact that you mentioned that you have a good driving record, which automatically will give you points with any car insurance company. Being safe is the car insurance company’s favorite quality in a customer, and it goes far beyond just staying under the speed limit. The more you do to keep yourself safe while on and off the road, the cheaper your car insurance rates will be. Whether this shows through in actual car insurance discount safety rates or in lower rates due to no claim history, you’re doing good either way.
Here are some tips.
- Anti lock disc brakes come with most new cars, although some are still behind on this issue. These are among the favorite safety features of the car insurance companies, because they prevent many accidents by making it easier to brake in dangerous conditions. Anti lock disc brakes can get you better car insurance rates.
- Anti theft devices are good for your comprehensive car insurance coverage rates. Most companies require that you get an active immobilizer, so that your car cannot be started if it is broken into.
- Another of th favorite safety features for collision rates is the air bag. There are a thousand different types of air bags and the more, the better.
- Daytime running lights are a relatively new entry to the situation, and they make it easier for cars to see each other during the day and while it is raining. These are low beam lights that stay on all the time, and have their own special discounts with many companies.
- Buckle up, like all of the signs say. That sounds too simple, but it really can help keep your car insurance rates down.
Most of all, though, keep doing what you’re doing. The best way to stay in a preferred class of customers is to keep a constant good driving record so that eventually, if you do mess up, you might not even have to suffer the consequences due to your history.
Cheers,
Fashun Guadarrama.
New Student Car Insurance Discounts
Filed under: Auto insurance help, Student Car Insurance
Reader question:
When I turned 16 and got my first car, I also got added to the car insurance policy that my parent’s had. Now I’m leaving state to go to school elsewhere, so I’ll be getting my own new student car insurance. I know it will be more expensive, but how do I make it cheaper?
Sharon
It’s easy, Sharon.
First I want to remind you of the option to just not get a new student car insurance policy at all. If you are going to school in a different state, most car insurance companies will give a huge discount or not charge for you at all while your name is still on the policy, so if you leave your car at home you could end up paying nothing for car insurance and still be covered when you use it during visits home. This may not sound reasonable, but consider that if you are moving to a college town, not only will you live on campus but you will probably be able to get places where you need to go by taking public transportation.
If that isn’t what you want to do, or if your college town doesn’t have a good bus system, then here are some ways to get it done.
- Raise your deductible. This is the most basic cheap car insurance rates advice. The higher your deductible, the lower your premium. Just make sure that you can afford the higher deductible.
- Lower your standards. Pick a car that has some grey hairs and wrinkles, but is still safe. Older cars are cheaper to insure, and you also won’t need as much insurance. In the same vein, consider not getting that great stereo and those rims.
- Is your car worth less than your premium? Then you should only get the minimum state required car insurance coverage.
- Take a class in defensive driving.
- Maintain your credit report. It’s time that you are starting out in life and getting your credit going, so be careful now or you’ll have problems in the future.
- Look around for your car insurance company. Get instant online rate quotes and compare, compare, compare.
- Join an organization that helps you get discounted car insurance rates.
Cheers,
Fashun Guadarrama.
Where Should You Buy Used Car Insurance? Who Has Lowest Rates?
Reader question:
A couple of weeks ago I bought a used car in cash, and now I need to get used car insurance. Now, I know this car isn’t top of the line, but I’m not sure what kind of coverage I should get. Some help?
Anthony
Good question, Anthony.
Used cars tend to cost more in upkeep than do new cars, especially the used cars which can be bought for cash. They need more repairs more often and are less reliable on the road. On the bright side, though, you don’t have to make a monthly payment for them, so the only thing you need to think about is getting car insurance coverage, which confuses a lot more people than just you, Anthony. On one hand, everyone wants to protect their car, but that protection needs to be taken down a notch or two with used car insurance.
Every state except New Hampshire makes you get some kind of car insurance, usually just the basic liability.This coverage takes care of the other driver and their car insurance claims if you cause an accident, but the amount that the state makes you get normally isn’t enough to protect for real. If you want to stay on the safe side, I would get more liability than required. That goes even if you have the cheapest car in the world, and it goes even more so if you have a big, damage causing vehicle like an SUV.
When thinking about what kind of coverage you should get beyond just that, you have to take into account the cash amount that you paid for the car in the first place, and remember that you probably paid more than it is actually worth. If your car is worth than a thousand dollars, stick to the basic coverage. If it’s worth a little more, you should consider a little further and might decide to only get liability or to get a little more.
As someone who has had bad experiences with cash cars constantly breaking down, I suggest that for an older car you get mechanical breakdown coverage, since you normally don’t have the option of getting a guarantee. Not all car insurance companies offer this, but it is extremely useful. GEICO is one of the companies that does.
Cheers,
Fashun Guadarrama.
How Do I Get A Student Car Insurance Discount?
Reader question:
I’m getting student car insurance for the first time. How do I do this?
Mandy
Great question.
Stepping into the car insurance market can be a disorienting thing when you are a student who has possibly just gotten her first car. In fact, it might not be the first thing that you are thinking about when you embark on your journey to college and the rest of your life, because so many people do not put the priority on car insurance that it requires.This general lack of attention is one of the primary causes to the fact that the majority of policy holders driving in this country are paying more for their car insurance policy than they actually need to. When you’re a student and are paying higher prices than most anyway, shopping around for a good car insurance company becomes extremely important.
Most of the time, when you are just getting into car insurance for your first time, you might not be clear on the details. Do I even need it, you might ask. And why? There’s a good reason why. In every state there is some kind of law regulating posession of car insurance, and if you go driving without car insurance coverage, then you are going to end up with serious fines and possibly the loss of your license–and once you shape up and get that insurance, after you’ve made your mistake you might be paying higher rates than before.
There is another good reason to get the state’s minimum car insurance coverage. The fact is that if you cause an accident, you are responsible for the damages to the other car. If you don’t have car insurance, then the only person the other driver has to come to for their repairs is you, and you could end up with a big law suit on your hand. Even the most expensive car insurance premium is cheaper than thousands and thousands of dollars in legal fees.
One thing that most who are under the age of twenty five know when they are going into the student car insurance market is that they will e paying high prices. This takes their guard down. The truth is, you can get a good price even at twenty. How?
- Shop. The first thing you need to do when looking for car insurance coverage is get online and find a site that offers free online auto insurance quotes from several companies. Then, take your best quotes and look up the websites for their companies to find out which one you like best.
- Be informed. Figure out before you send over the money what kind of coverage you need. Get to know what your state minimum is. As for the other ones, do you have health insurance? If not, get personal injury protection. Is your car pretty old and junky? Then you probably don’t need comprehensive or collision.
- Inform your car insurance agent that you are looking at several other companies. This makes them more competitive in giving you a good price.
- Discounts are one of the best ways to get a low car insurance rate. Since you’re a student, you might do well to get the good student discount which rewards a B average or better. If you are studying something like mathematics, some companies give discounts for that, too.
- Make your deductible as high a you can afford. That will keep your premiums extra low, and if you drive safe, then you might not ever need to pay it.
- Always stay aware of what’s going on. If something is seriously wrong with the company, then you might need to file a complaint.
Cheers,
Fashun Guadarrama.
Cheap Breakdown Car Insurance Coverage
Even with a thousand features on your car to keep it from getting into a car accident, you are still often unprotected from it suddenly breaking down on you. Even a car that you take care of constantly will go out at some point, even if it isn’t your fault, especially in the winter. However, most of the time you can avoid this just by a little extra care once a month. Most people don’t bother, and that’s why things such as rescue and breakdown coverage provided by car insurance companies comes in very handy.
There are several different kinds of coverages that can come in here. Roadside assistance is one of the best, because it saves you hundreds of possible dollars in the costs of towing and other things. It can come in handy when you’re stuck out in the middle of nowhere with a broken down car and have no one to pick you up. You can just call and bring a tow truck, and show them your car insurance card. The types of roadside assistance vary. Some go by the person, but most go by the car that is being insured in the first place, so you will be covered for roadside breakdown and a tow to a repair shop regardless of who is driving the car.
Some car insurance companies even offer breakdown coverage that will take care of you if your car breaks down right there in your driveway. You can even get a combination of the two.
One of the most important things to have to accompany your roadside assistance coverage is car rental reimbursement. This is a great investment, because if your car breaks down or you get into a car accident, that won’t change the fact that you need transportation. If carpooling isn’t a possibility for you, then you’ll want to pay the few extra dollars a month in order to be paid back if you should have to rent a car while you’re out of your own one. The amount that you will pay for this type of coverage in an entire year is usually less than even a day’s worth of paying for a rental car.
Some companies offer extended coverage for breakdowns, such as GEICO. GEICO’s mechanical breakdown insurance is a lot like a warranty, and is a great option for drivers who still need coverage once their warranty is out. Like warranties, it does not provide coverage for things such as wear and tear, and you can’t expect to get reimbursed for something if you don’t maintain your car and the breakdown is a result of wear and tear. All you have to pay for any other breakdowns is the $250 deductible, and the rest belongs to GEICO.
It is often a better option than an extended warranty from your dealer, because, for one, it is much cheaper than you will be charged for. Also, at a dealer they usually tell you what parts you can get repaired, whereas GEICO does not restrict this. And anytime you need, you can take your car in to get repaired so long as it falls under the requirements. Even if you’ve already bought one, you usually still have one to two months during which you can refund it and get something else.
Cheers,
Fashun Guadarrama.
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