Gap Car Insurance

Getting a new car is great and making sure you have the insurance coverages you need for it is one of the most important things you can do to protect your new vehicle. Of course, you don't want to have a gap in insurance so that is why you need to have gap car insurance. Yes, you know having gap insurance coverage is important but, it is just as important to know what those coverages mean.

You Won't Have a Gap in Insurance, But What Else Will Gap Car Insurance Cover?

If you have gap insurance coverage, you won't have a gap in insurance but, if you need to use your gap car insurance will you understand the coverages? Understanding your gap car insurance coverages will not take a lot of time and it will probably save you a lot of money and time later. There are two important things to know about your gap insurance coverage: what is covered and what is excluded (or not covered). First, let's take a look at common gap car insurance coverages:

Gap Car Insurance Covers Total Losses Due to Most Any Reason Including:

Theft
Fire
Vandalism
Accident
Flood
Tornado
Hurricane

As you can see, pretty much any totaled loss your regular car comprehensive and collision insurance will cover, gap insurance will also cover. Most gap car insurance policies will also cover your insurance deductible.

Gap Car Insurance Covers Most Total Losses, But What Does it Exclude?

So, now that you know your gap car insurance will pretty much cover most any total loss that your regular car insurance company did not cover, what will gap insurance not cover? This is important to know, so here is a list of some gap car insurance exclusions:

6 Common Gap Car Insurance Exclusions:

1. Cars that Are Not Covered by Both Comprehensive and Collision Insurance

2. Any Equipment On the Car that Was Not Factory Installed

3. Money that Was "Rolled" Into the Car Loan Such as From a Trade-in or Leased Vehicle

4.Costs for Any Other Products Added to The Loan or Lease Such as Extended Warranties

5. Unpaid or Overdue Lease or Loan Payments

6. Financial Penalties or Security Deposits on Leased Vehicles

Please remember that these are only examples of common coverages and exclusions and it is important to check your own policy to see what your particular gap car insurance coverages and exclusions are.

Looking For Cars Online and at the Auto Dealership

What is the first thing you do when looking for a new vehicle? Do you just walk into the showroom, wander around for awhile, point at a car and buy the asking price to drive it home? Of course you do not do that.You do research. You find out what the dealer’s cost is compare to the sticker price. Where can you do this research and now possibly do your purchase - online.

Auto dealers are finally smartening up and learning that people like to shop online. Ebay has figured that out and their Ebay Motorssite is a very popular way to purchase a vehicle, especially a vehicle that is not usually available in your area. They have also realized by now that people research vehicles online before purchasing.

The first ones to determine this were the car manufacturers. They have put on their sites ways in which a person could not only look at all the vehicles that they offer for purchase but all the specs as well. You can now “build your own” vehicle on many manufacturer sites. This shows you what your new car would look like with different options or in different colors. Who knows better than the manufacturer what your car should look like?

Next manufacturers have introduced ways in which to have you contacted by the local dealership or better yet ways for you to be guided to a local dealerships site. At the local dealership site begins the next process. You have found the car model you want, the color you want now you just need to find that in stock.

Local dealerships, if they are smart, now have their inventory online. If you are lucky they will have both new and used inventory online. Not a bad way to compare new prices to what previously owned ones are going for. If the used car is certified that usually means it will have a decent warranty included with it.

Now with the inventory checker you can find if the car you want, with your options is actually on a lot in your area to test drive. This is much better than driving from dealership to dealership and walking the car lot yourself. If you want a black truck and the closest dealership only have white and red ones available you know to keep looking.

What is the next step we would take as consumers? That is easy, ways in which to purchase a car through the dealership online. If you have seen what you want enough times in person but just cannot stand to barter with the salesman, wouldn't itbe nice to do the bartering online?

Online sales by dealerships are possible. Ebay Motors shows that bartering online can be done with success. There are companies that will find the best price for a certain vehicle for you and contact you. This is all done online. Hopefully the dealerships will understand the consumer side of this and it will become the new way to purchase a vehicle in the future.

How To Make Money With Previously Owned Vehicles

People in America love their cars. Millions of cars are bought and sold each year. With the price of new cars more going up and up each year more people are buying used or a better term - previously owned - vehicles. Here lies an opportunity to make extra money for your family. Learn how to make money by buying and selling used vehicles.

Stocks were the big thing in the 1990s and now “flipping” houses are big in the 2000s. Flipping in this case means buyinga property putting some money into it and selling it for a profit, usually a pretty big one. Buy previously owned cars, improving them and selling them might just be the next big money making idea.

The first step is to find out what your state requires of you for this venture. Most states call for you to have a dealer’s license if you buy and sell a certain amount of vehicles for profit within a certain amount of time. You can research the requirements online or go to your department of motor vehicles office to get this information. It is important to get the correct licenses, insurance policies, permits, and so on. Do not let the requirements scare you off. Once you fill out the correct paperwork you should be on your way to the next step.

What you do next is to find cars to purchase for under retail or “blue book” value so that you can make a profit. You need to start out with an idea of what type of vehicle sells well in your area. Find out what the best selling cars are nationwide and what is most popular in your area. Once you have an idea of what type of car you want to buy there are various ways to find the car you should buy.

Classified ads used to be just in local newspapers. But with technological advances you now can find these ads online using the Internet. With the Internet you can look for a certain make and model with little difficulty. Buying from a private party through a classified ad is one of the easiest ways to find a car for a good price.

Besides local newspaper classifieds being online there are other sites you can look for cars on. Two of the most used sites are Cars.comand Autotrader.com. These sites can be very helpful even for researching and comparing cars you are interested in. You can also search out of your local area if you want to buy from farther away.

Auctions - Now a day there are many types of auctions you can participate in. OnlineAuctions are getting bigger and bigger each year. The best known auto auction site online is probably EBay motors. If the car you want to bid on here is local you should be able to go and take a look at it before buying. If it is not local than be sure you ask questions and know the exact condition of the car and the transportation costs before bidding. Auctions with no reserve are probably your best bet with online auctions.

Public Auctions are also available for you to go to. These types of auctions are open to the general public so you do not need a dealer’s license. Public auctions might have a preview day for you to go and check out the quality and functionality of the vehicle or you might just need to show up a few hours early to find this out.

County, city and states have public auctions. So do school districts, police and sheriff departments. A lot of the vehicles available will be well maintained fleet cars. Other vehicles will be repossessed that might just need a little TLC to get them looking good again. Public auctions are worth a look at to find cars below book value.

Federal government auctions are basically like your local auctions except you might have to travel further to find them. Most all areas of the government have fleet vehicles that they sell annually. These cars are again usually well maintained and sold for a decent price.

Estate auctions are another type you might consider. These are usually found in your local paper and will list if any vehicles are being sold. If possible try to see the vehicle before the actual auction date.

Dealer’s auctions can be a great place to find vehicles for way below wholesale. As the name implies you will need your dealer’s license to purchase a car. The cars found at dealer auctions are mostly trade-ins, rentals or private companies old fleet vehicles.

When you find a vehicle that you believe would sell well in your area be sure to check it out. The worst thing you can do is buy a car that you will spend more money in repairs than you will make by selling it. You do not want a car with major bodywork problems. Minor problems that can be waxed or polished out are fine.

You do not want a vehicle with serious mechanical issues either. Vehicles that appear stout but need cleaned up are the best. If it is sound mechanically you can also put on a new paint job for cheap or better yet polish and wax the car. Make sure the tires are clean and attractive. Clean the interior. Buy new mats for the floorboards. If the engine is stout and the car looks clean you will make money when you sell the car.

Once you have the car looking its best it is time to sell it and make some money. Go about selling it the same way in which you bought it. Place an ad on an online classified site or your local newspaper. Try to include a picture that shows the best qualities of the car. Pictures are very popular online and can sell the vehicle without you even saying a word.

If you love cars why not start making some money out of buying and selling them?Do your research, find the right car, get the lowest price, fix it up a bit and resell it. Remember not to buy a car that needs too much money put back into it and don’t over do it by buying new tires or rims that the car does not need. You want to make what you put into the car and much more.

Helpful Hints On Buying A New Or Used Car

When buying a car you can be either Sally Simple or Susan Smartie. Sally Simple will go to a dealership and find the car she wants and ask the price. Sally will believe the marked price, on either a new or used car, or what the salesman has to say. Now Susan Smartie goes to shop for a car after researching the type of car, the options she does and does not want and knows what the pricing should be. When buying a vehicle you will want to be Susan Smartie and not Sally Simple. Here are tips on how to be the smart one armed with facts and figures when you go shopping for a vehicle.

First you need to decide on what type of vehicle you need. Do you need an SUV, truck or 2 or 4 door sedan? This is the first thing you will need to know so that you can research the different styles of the type of vehicle you want to purchase. For example if you want to buy a 4 door sedan you will be able to research and compare the different types out there for you. You will learn that a Honda Civic and VW Jetta both fit your car type but come with different options. You may even make a list of what options you want on a car. Concentrate on cars that then have the options you want and stop thinking about the ones that are out of the running because they do not fit your criteria.

After you know what type of vehicle you want the best way to start researching is on the Internet. For new cars there are many sites out there that can give you the specs of the car, tell you what options are available and what those options should cost. They will even show you what color options are available for the exterior and interior of the car you are interested in. MSN has an Auto section that breaks down the pricing for the options, extras, and everything to give you a total price. This total tells you not only what sticker price or manufacturer's suggested retail price (MSRP) is but also what the dealer’s costs are. What you want to do is to memorize this information or print out the costs and keep them with you as you go to the dealerships.

With this information you can go to a dealership and easily barter to bring down the sticker price. If the salesman states that a certain option cost $500 but you know they real cost is $250, let him know. He will find out right away that you know your facts and they should be a lot more honest about the price that you can get the vehicle for. Remember the dealership will need to make some money so it is unlikely you will be able to get the price down to the dealer’s cost but you should be able to get it to a $1000 or $2000 above it and that should be a decent savings from the sticker price.

Do not let the research stop at the price, even if that is the most important thing. You should also research the different model types (one car can have 3 or 4 types available), options, safety tests, repair records and dependability. You might also check what previously owned vehicles of your chosen type are selling for just to know what the depreciation will be like.

Get out your library card; it is time to drive to the library. If you do not have access to the Internet, than begin your research at your local library. Once you get there you might find they have free Internet services and you can do the above researching. Even if you have done Internet research the library can still be helpful. Most libraries have a magazine section that will help you. Consumer Reports give annual reviews of what cars they find to be the best. This can be especially helpful for seeing what the repairs rating is. Ideally you want to purchase a car that does not have a history of needing costly repairs. Other magazines have test drives that last for months so they can really give you a feel for how a car will run not only on the day you buy it but 6 months later.

You might be thinking but I’m not buying a new car, how does the information above help me? Well you can use both the Internet and library to research a used car as well. On the Internet you can look up such sites as Edmunds or Kelly Blue Book which will tell you what used cars are worth for retail, trade-in or through private parties. They also give information on new cars so you can get a sense of what depreciation has occurred.

Even when buying a used car you will want to go into it with research. You definitely want to know what the going rate is for the particular vehicle you are interested in so you are not taken in and pay too much. If buying from a private party be sure to ask questions and get the maintenance records for the car. The first and best question to ask a person is why they are selling their vehicle. You certainly do not want to buy one that the person says they are tired of it hounding them with repair bills.

Now that you have your research done for your new or used car it is time to go out and see how the vehicle feels. You will want to definitely test drive the car you plan to purchase. Just because the outside looks good and the inside looks comfy does not mean that it is. Make sure that the inside is comfortable to sit in. If the back seat is to be used by adults or kids make sure there is enough leg roomfor them.

Take the car out on the road. Try to be able to drive the car in different conditions if possible. This might take a couple of trips to the dealership. If you are buying a used car this may not be possible so make the most of your first test drive. Take the car out on side roads, the freeway, stop and go traffic, hilly streets, wet conditions and dry conditions. If you are able to do some or all of this you will get a real feel for the car and if it handles like you want it to.

Buying a new or previously used vehicle is a big decision. It is probably the second most expensive purchase you will make, your home being the first. So this is not a situation to go into without the proper information. If you are well prepared you will not feel as pressured either at the dealership or buying from a private party into making a rushed decision. Remember to be Susan Smartie and not Sally Simple.

How to Buy a Used Car Under Book Value

Cars are not a great investment. That is what my financier friend tells me all the time. Though it may just be an excuse for him having an old, grungy car there is some truth to it. New cars depreciate the moment you drive them off the lot. Nothing you can do to stop or change that. But if you are looking for a new vehicle there are ways to save money and buy a used car for under book value and at least make you feel like you have received a good investment for your money.

Auction, the word can scare some. In America we are not used to the type of bartering that is common place all over the world. One place where we can take part in a bartering system is at an auction. Instead of staying away from an auction you should learn to enjoy it and learn how to benefit from it. Vehicle auctions specifically are what I am talking about here.

Vehicle auctions take place nearly every week someplace. There are different rules associated with different auctions so before just showing up make sure you do not need certain credentials. Some auctions require you to have a dealer’s license and if you do not you might not even get in the door to look at what cars are even available.

Repossessed vehicles are a second kind of auction that you may find. There are government auctions, local city police and sheriff auctions that allow you to bid on repossessed vehicles.These are for the general public in most occasions.You may be able to find a car that is in good shape with few miles but that the owner was unable to pay their fines on so was taken. Others are taken for driving without a license and unable to come get their car. These cars are most likely in good running order. But always be sure to take a look at the vehicle you plan to bid on and not bid blindly.

Other kind of auctions includes cities, counties and schools that sell off vehicles they no longer need. These types of vehicles might have high mileage but because of being a fleet vehicle have been well maintained. These cars have had their scheduled tune ups and have been washed and kept looking good. The interior as well is usually in good condition since it was used for work purposes and not family or rough conditions.

So if you want a way to get a good investment for way under book value remember to try out auctions. Of course do not go into it blindly. Learn the auction lingo, know what book value is on the car you are interested in and stand firm on how much you want to bid up to. It is best to go to an auction or two to just watch and take in the action before bidding. Remember you are getting such a good deal because there is not a warranty or guarantee for the car in most instances. If you do your research before you go though you can come out of the auction with a nice used vehicle for an amazing deal.

Understanding How Your Credit History May Affect Your Car Insurance Coverage

Many personal auto insurance companies consider your credit information when determining how much premium to charge for your insurance. So if you are calling around for new insurance, keep in mind that many insurers are looking at your credit history. I hope that we will be able to let you know why and how they do this.

The reason that some insurance companies use credit information is because there is a direct correlation between consumer's credit history behaviors and expected claims that may occur. Therefore, they feel that people with better credit behavior are less likely to have severe insurance losses.

The companies that do use credit scoring will still use other factors in determining your premium. They will also use your age, driving history, type of vehicle, where you live in determining how much you should pay for your insurance. Therefore, if you have not established a credit history yet, the companies that use credit history may not be best for you. They may not allow you to be eligible for certain discounts, which could result in higher premiums.

Is it fair for an insurance company even look at my credit information without my permission? The answer is yes. The Federal Fair Credit Reporting Act says "Reasonable procedures. It is the purpose of this title to require that consumer reporting agencies adopt reasonable procedures for meeting the needs of commerce for consumer credit, personnel, insurance, and other information in a manner which is fair and equitable to the consumer, with regard to the confidentiality, accuracy, relevancy, and proper utilization of such information in accordance with the requirements of this title." Found at http://www.ftc.gov/os/statutes/fcra.htm

If you feel that your credit history is better then the insurer can find, make sure the insurer has your correct name, address, social security number, and date of birth.

Some insurance companies will look directly at your actual credit reports when determining your rate, however most will use what is called an "insurance credit score." An insurance credit score is developed by using statistical techniques and methods to predict the likelihood a consumer will have a higher than anticipated loss. These are similar to what lenders use to predict the reliability of an applicant repaying a loan.

Insurance companies use many factors in determining your credit score. Here are some examples of those factors:

• Public records: bankruptcy, collections, foreclosures, liens, charge-offs, etc.
• Past payment history: the number and frequency of late payments and the days between the due date and late payment date.
• Length of credit history: the amount of time you have been in the credit system.
• Inquiries for credit: the number of times you have recently applied for new credit, including mortgage loans, utility accounts, and credit card accounts.
• Number of open lines of credit: the number of credit cards, whether you use them or not.
• Type of credit in use: major credit cards, store credit cards, finance company loans, etc.
• Unused credit: how much you owe compared to how much credit is available to you.

Your insurance credit score may differ from company to company, as they will use different factors in determining your premium. Notice that we call it an insurance credit score. This means that it encompasses many factors including credit.

Since each insurance company uses different techniques to determine your credit score it is hard to tell you what a good credit score is. Usually a good credit score will result in lower premiums.

Your agent or company is not obligated to tell you your credit score. In fact, they might not even know what it is. All they usually know is that your credit score qualifies you for a specific rate or policy. Some companies also offer better rates under each qualifying tier.

If you feel that there is incorrect information on your credit report, you should tell the credit bureau. If you report an error, the credit bureau must investigate the error and get back to you within 30 days. You can ask the credit bureau to send a notice of the correction to any creditor or insurer that has checked your file in the past six months. Once the errors are corrected, it is a good idea to get a new copy of your credit report several months later to make sure the wrong information has not been reported again.

The three national credit bureaus are:

Trans Union (www.transunion.comor 800-888-4213).

Equifax (www.credit.equifax.comor 800-685-1111).

Experian (www.experian.com or 888-397-3742).

Tell your insurance company. Do not wait until the credit bureau investigates the errors to contact your insurer. Tell your insurance company right away and ask if the errors will make a difference in your insurance. If the errors are big, tell your insurer that you are disputing the information and ask if they will wait to use your credit information until the errors are corrected. Small errors may not have much affect on your insurance credit score. If the errors are big, it can make a significant difference in your premium. Some companies are unable to adjust the premiums until the score is corrected, but it does not hurt to ask.

If you have taken the steps to improve your credit score, you should ask your insurance company to re-evaluate your credit score at renewal.

Factors That Affect Your Car Insurance Premium

Many factors affect the premium you will pay for auto insurance. Each is a statistically based risk for a specific population. The higher the risk associated with a person, the more he or she is likely to pay for coverage. We have elaborated on some of the risk factors below, but there are numerous others, including driver's gender, miles driven per year, purpose for using the vehicle (commuting to work, using for work, leisure only), etc.

• Age
  Statistically, drivers under the age of 25 are at greater risk of being in an accident than those over age 25. Drivers between the ages of 50 and 65 generally have the safest records.
• Gender
  Women are statistically safer drivers, but that trend is changing as more female drivers get on the road.
• Marital Status
  A married person will pay less than a single person with an identical driving record.

You can think about these factors and determine what you can do to change them in your situation. You may be able to save on insurance based upon these decisions:

• Geography
  Where you live makes a difference. Folks living in areas with little or no traffic are likely to spend less on insurance than those living in congested cities or suburbs because areas with a lot of traffic tend to see more accidents. Some neighborhoods also have a higher rate of vehicle thefts, which can result in a higher premium.
• Driving Violations
  Having an accident or moving violations on your record (speeding tickets, DWI, reckless driving, etc.) put you at a higher risk for accidents and will likely mean a higher premium. Some insurance companies will penalize you for your record for as many as five years from when the incident occurred. However, keep in mind, as your record improves, your premium will get lower.
• Vehicle Type
  A cheap car will cost less to insure than that status symbol SUV sitting on 24" rims.
• Accident Claims
  A driving record that is clean and free of accidents will hold far better for you than lots of tickets and/or accidents.
• Credit Rating
  Many insurance companies view having a poor, or even no credit history as suggestive of higher risk and thus, charge you a higher premium. Monitor your credit rating free to see if you can get a better score. A better credit score will save on insurance premiums.
• Occupation
  Insurers have statistically found a correlation between your occupation and risk. For instance, a newspaper delivery person is most likely a higher risk than the personal banker sitting at their desk all day.
• Education
  A higher education can save on your premiums.
• Driving distance to work
• Miles driven each year
• Years of driving experience
• Business use of the vehicle
• Whether or not you currently have auto insurance and how high are your limits
• Theft protection devices (often results in discounts)
• Multiple cars and drivers (another opportunity for discounts)

What can I do right now to make sure I have the lowest premium?

Shop around and compare quotes from different insurers. CarInsurance.com puts many insurance companies on one site so you can compare them in one place. Carriers base their premiums on their claims experiences, which naturally differ. One company may see your area as a higher risk than others may. Another may charge more because of your occupation. Shopping at http://www.carinsurance.com makes it easier because you can quickly see multiple companies and their rates for your particular situation. Where do I go for quotes?

One stop can take care of it all. Go to www.carinsurance.com where you can receive multiple quotes, pick the best price, and then purchase. Get covered immediately on-line or over the phone. It REALLY is the easiest way to purchase car insurance. Enter your zip code above.

Simple Steps to Filing Your Car Insurance Claim

Having even a teeny-tiny car accident can be one of life's least enjoyable moments. However, accidents happen, and sooner or later, we all have the experience of meeting one of our fellow road travelers up close and personal. Using the following seven steps to filing your claim will help you get over this speed bump as smoothly as possible.

They aren’t really accidents. They are more of an incident. Usually they are an incident that you would like to forget.

• Understand your policy before a loss, sit down and carefully read your insurance policy. Call your agent or company if you have any questions about what is or is not covered.
• Make sure everyone is okay and check to see if anyone needs medical attention. Even if your injuries are minor, you may still want to have them checked out at a hospital or with your family doctor. Minor injuries can become major, long-lasting injuries.
• Exchange information when you are involved in an accident, get the other driver's name, address, phone number, insurance carrier, and insurer's phone number. Be prepared to give the same information about yourself to the other driver. You can find insurers’ telephone numbers on the proof-of-insurance cards that should be carried on your person when operating a motor vehicle.
• Identify witnesses and ask witnesses to the accident for their names and phone numbers in case their account of the accident is needed.
• File an accident report and contact local law enforcement officers to have an accident report prepared. If law enforcement is not reachable, accident reports and detailed instructions are available at all police departments, sheriff's offices, your local Department of Motor Vehicles office, and on your local Department of Motor Vehicles' web site
• Notify your insurer by contacting your insurance company about the accident as soon as possible. An insurance adjuster will review the accident report to determine who caused the accident. If the accident was not your fault, you can have either your insurance company or the at-fault driver's insurance company handle the repair or replacement of your vehicle. If you use the other driver's company, you will not have a claim on your automobile policy and you will not have to pay a deductible.
• Do not release insurers too early. Do not relieve your insurance company of its responsibility until the damages are settled to your satisfaction. For example, have your insurance company handle the claim if the other party's insurance company questions its policyholder’s negligence or offers an unacceptable settlement.
• Consider these settlement factors.
  • Bodily injuries: You may be entitled to a monetary settlement for injuries caused by another at fault (liable) party. It can take several days for some injuries to become apparent.
  • Damages: The insurance company is responsible to pay for the reasonable cost of repairs to your vehicle. An insurance adjuster will assess the damage. Usually, insurance companies and auto body shops negotiate disagreements about what should be repaired. If you disagree with their conclusions, you have the right to obtain another appraisal at any auto body shop.
  • Appraisal clause: Most auto insurance policies include an appraisal clause, which can be used to help settle disputes about physical damage claims between you and your insurance company. (The appraisal clause does not apply for claims you file with the other party's insurance company.) If you cannot reach an agreement with your company, you or your insurer can initiate the appraisal clause. Your appraiser and your insurer's appraiser then select an independent umpire to try to resolve the dispute. Check your policy or ask your agent or insurance company for more information about the appraisal clause.

Is Your Auto Insurance Company Rated?

Several national rating institutions rate insurance companies. Do coverages, rates, and service vary from company to company? Why can you pay less with one company than another can for the same coverages? Choosing the best insurance company for you is a crucial financial decision. Does your insurance company have the financial strength to safeguard you and your family? If the company cannot pay future claims or benefits, other issues become far less relevant. Financial strength ratings are an analysis of a wide variety of risks that could affect an insurance company's long-term viability. Insurance companies have failed or ceased to operate due to inadequate financial strength, competitive forces, or changing dynamics in the marketplace.

Ask your peers what experiences they have had. What is your sense of the reputation of the company? How quickly and easily are claims processed? Is there 24-hour claims service? Is the claims management in the house of the insurance company or have they outsourced? Auto insurance is meant to make you whole in the case of an accident with injury or property damage. It is to protect your assets and protect you from liability. You will want the peace of mind of a superior rated company when it comes time to manage and pay the claim. The financial health of a car insurance company is an often-overlooked area when shopping for the best auto insurance rate. It is human nature to make your comparison solely on the rates for the coverages. While this is certainly important, you should be aware of the company's overall rating and level of satisfaction. Consulting insurance company ratings is crucial. Each insurance company issues a quarterly report that is publicly accessible. You cannot always tell the future from the past. However, the past performance is a valuable insight into what expectation to have for your future coverage. One of the factors that are used in order to determine the companies' ratings is how long they have been in business. If there is no history, you may be taking an unnecessary chance. Look for a company that has a history and make sure that history shows good performance.

What about the reputation of the insurance company? It is very simple to find this information. Just ask around. There are your peers, the BBB, and family. Many times these resources closest to you will be able to share experiences that are favorable or unfavorable regarding the company you are considering. In addition, each state has a Department of Insurance that keeps public information about companies. Use all the resources you can to determine which company is best for you. Once you have paid for the policy, you will then become keenly interested in customer service. Be aware of what the source of information is regarding the insurance company. Many companies put our information about themselves in the form of illustrations that are intended to make them look as good as possible. Of course, while these illustrations must be factual, you should be aware that you are not receiving objective information.

How Much Car Insurance Should You Buy?

Car insurance is not very exciting. Depending on which state you live in, it could be a smaller or larger piece of your budget than your neighbors across state lines.

How much insurance should you buy? Any insurance agent worthy of their salt will tell you that you should buy as much as you can afford. While this is a good rule of thumb, it is about as useful as a stockbroker’s tip to buy low and sell high. It might be sound logic but it does not get you any closer to an educated decision. A few filters need consideration in order to make that educated decision. First, what is the state required minimum coverage where you live? Second, what does the minimum cover? Third, what other coverage is available and can you afford it? Fourthly, what are you protecting?

You can use our easy Insurance Coverage Calculator or get an auto insurance quote to see the recommended coverage levels.

What is the minimum for your state?

You can get up to date state minimum requirements by following this link and selecting your state.

The first two figures refer to Bodily Injury Liability Limits. For example, 20/40 means coverage up to $20,000 for each person injured in an accident, up to a maximum of $40,000 forth entire accident, and then you could have 20/40/10 with $10,000 worth of coverage for property damage.

What do the minimums cover?

Now that you know what your state requires, what are you actually covered for once you purchase the minimum? Using the coverage definitions that follow, find the types of coverage required and see what your state says is the accepted minimum.

Coverage Definitions

Bodily Injury Liability covers other people's bodily injuries or death for which you are responsible. It also provides for a legal defense if another party in the accident files a lawsuit against you. Claims for bodily injury may be for such things as medical bills, loss of income or pain and suffering. In the event of a serious accident, you want enough insurance to cover a judgment against you in a lawsuit, without jeopardizing your personal assets. Bodily injury liability covers injury to people, not your vehicle. Therefore, it's good idea to have the same level of coverage for all of your cars. Bodily Injury Liability does NOT cover you or other people on your policy. Coverage is limited to the terms and conditions contained in the policy.

Comprehensive covers your vehicle, and sometimes other vehicles you maybe driving for losses resulting from incidents other than collision. For example, comprehensive insurance covers damage to your car if it is stolen; or damaged by flood, fire, or animals. Pays to fix your vehicle less the deductible you choose. To keep your premiums low, select as high a deductible as you feel comfortable paying out of pocket. Coverage is limited to the terms and conditions contained in the policy.

Collision covers damage to your car when your car hits, or is hit by, another vehicle, or other object. Pays to fix your vehicle less the deductible you choose. To keep your premiums low, select as large a deductible as you feel comfortable paying out of pocket. For older cars, consider dropping this coverage, since coverage is normally limited to the cash value of your car. Coverage is limited to the terms and conditions contained in the policy.

Medical Payments covers medical expenses to you and your passengers injured in an accident. There may also be coverage if as a pedestrian a vehicle injures you. Does NOT matter who is at fault. Coverage is limited to the terms and conditions contained in the policy.

Uninsured Motorist Bodily Injury covers bodily injuries to you and your passengers when the other person has no insurance or not enough insurance in a crash that is not your fault. In some states, there is also uninsured motorist coverage for damage to your vehicle. Given the large number of uninsured motorists, this is very important coverage to have, even in states with no-fault insurance. Coverage is limited to the terms and conditions contained in the policy

Personal Injury Protection covers within the specified limits, the medical, hospital and funeral expenses of the insured, others in his vehicles and pedestrians struck by him. The basic coverage for the insured's own injuries on first-party basis, without regard to fault. It is only available in certain states.

Property Damage Liability covers you if your car damages someone else's property. Usually it is their car, but it could be a fence, a house or any other property damaged in an accident. It also provides you with legal defense if another party files a lawsuit against you. It is a good idea to purchase enough of this insurance to cover the amount of damage your car might do to another vehicle or object. Coverage is limited to the terms and conditions contained in the policy.

Rental Car Reimbursement covers renting a car if your car isn't drivable or while your car is being repaired because of a covered accident.

What else is available and can you afford it?

Did you come across a coverage and think, "I need that but it isn't required by state law" when you were reviewing the coverage definitions? Chances are you did. Can your budget afford the additional expense of these protections? Alternatively, maybe more to the point can you afford NOT to have these additional protections? At CarInsurance.com it is easy to get multiple quotes all with a click of your mouse. Moreover, during the quoting process, it is simple to add or remove coverage to see how additional coverage will affect your budget.

You can learn more about Insurance Coverages by following this link.

What are you protecting?

What assets need to be protected from being plucked away if you cause injury or damage? A) Your car itself. If this is a significant asset, or at least the bank you owe money to thinks so, then you will need comprehensive and collision. B) Your net worth. Do you have an enormous net worth to protect. If so, either take it out of your name and put it into a trust or buy all the insurance you can. If you have little or nothing to protect, then you can get by with less and still be financially responsible.

However, after you determine how much protection to get, always ask how much more it is for the next level higher. Very often, you can get significantly more coverage for very little cost.

Car insurance is not flashy. There is no "wow" factor and the opposite gender is not going to be impressed by the size of your policy. Nevertheless, not having enough can be the difference between financial stability and financial ruin. For what its worth, CarInsurance.com finds financial stability incredibly appealing.

Does Your Occupation Affect Your Auto Insurance Rate?

Think your occupation does not affect your auto insurance rate - think again! In Insurance.com's 2006 Occupation Report, results show that your occupation can greatly impact your car insurance premium.

Compiled from data from their partnering auto insurance companies, Insurance.com's report shows that scientists, pilots/navigators and actors/performers/artists pay the lowest insurance rates at an average of $935.76 per year. Attorneys/lawyers/judges, executives and business owners pay the highest insurance rates at an average of $1,383.63 per year.

Why such a big difference between occupations? According to David Roush, CEO of Insurance.com, attorneys/lawyers/judges, executives and business owners have highly stressful jobs, which require them to spend more time in their cars and talk more frequently on their cell phones than the average driver. "Taking all of these factors into account, you can see why some occupations are coined as "high-risk" and typically pay more for auto insurance then others," stated Roush.

As for scientists, pilots/navigators and actors/performers/artists, Roush says that there are a number of reasons why these occupations pay less for auto insurance. For one, scientists are viewed as being very meticulous and detailed-oriented people, which translates to good driving habits on the road. This outstanding attention to detail typically means scientists are safer drivers, resulting in lower auto insurance premiums.

The same goes for pilots and navigators whose jobs require them to be focused on the safety and wellbeing of others - skills that are often transferred over to their driving habits as well. "Pilots and navigators are often very safe drivers because their driving record not only impacts their personal life, but also their professional life," noted Roush. "If a pilot or navigator was to get into an accident or receive a DUI, their career opportunities would be restricted or even worse, eliminated."

Actors, performers and artists are also at the lower end of insurance premiums because their jobs require them to work in the city, where they are more apt to commute via train or bus to work, versus driving - limiting their time in the car and reducing their chance of getting into a car accident.

However, receiving discounts on auto insurance is not a new concept. For years, insurance companies have been giving discounts to members of "affinity groups," such as AARP, AAA, alumni groups and other associations. These discounts are just now being extended to certain occupations as well, noted Roush.

10 Tips to Avoid Auto Accidents

1. Avoid drinking and driving.

2. Minimize distractions such as reading newspapers or talking on the cell phone when driving.

3. Properly maintain vehicles. Tune up cars according to maintenance schedule, and especially take note monthly of tire condition.

4. Do not encourage aggressive drivers. Let other aggressive driving behavior roll off your back, or call the police. Losing your temper could worsen the situation.

5. Leave a safe distance between your cars and others. For every 10 miles per hour of speed, leave at least one car length space between your vehicle and the vehicle ahead.

6. Maintain a constant speed. Don’t continually slow down or speed up.

7. Adjust mirrors properly and check the side and rear-view mirrors every 15 seconds.

8. Take defensive driving classes to improve your ability to drive and be better prepared for the unpredictable behavior of other motorists.

9. Proceed with great caution through intersections. Intersections are the center of most accidents. When entering an intersection, look left, then right, then left again to ensure the area is clear.

10. Be sufficiently aware of road conditions and be more visible. Keep your lights on at dusk and dawn and during rain, as is the law in most states. Understand basic vehicle dynamics, such as knowing how to recover from a skid.

New Car Insurance Costs

More to the sticker price than meets the eye!

Buying a new car can be a very exciting and overwhelming experience. Sorting through options, makes, models and features is enough to make your head spin. Not to mention the financing and car insurance costs. However, being prepared before you shop can help make the buying process quicker and easier for you!

Identifying the ideal car for you.

Before heading out to the car dealership, make a list of what you are looking for in a new car. As you are writing the list, think about the same concerns a car insurance company would consider when quoting you a rate, such as:

• How do you use your car?
• How many passengers do you typically carry?
• How often do you drive your car?
• Where do you drive?

These factors will help you pinpoint the best car for you, while also helping to potentially keep your car insurance premium down.

Features to consider before you buy.

Make a list of all the features and options that are important to you, such as head and leg room, transmission type, engine, trunk size, airbags, security system, anti-lock brakes and other safety features. Car insurance companies often give discounts for some of these items; saving you significant money on your overall quote.

Also, check out auto manufacture's websites. Many have special pages that let you "shop" for your dream car - giving you the opportunity to select the features that are important to you, while also providing you with the true cost of these "extra perks."

The cost.
Before you buy you should always factor in all costs involved with buying a new car, including sticker price, gas, maintenance, financing rates, taxes and car insurance.

How much you pay for your car has a powerful effect on your car insurance premium. A luxury car with all the latest safety features will typically cost more to insure than a no-frill economy car, due in part, because the higher-priced car may be more expensive to repair or is more likely to be stolen.

Yet some cars do consistently get better deals on car insurance rates than others. For example, a $14,000 Dodge Neon costs about the same amount to insure as a $34,000 Volvo XC70. According to Edmunds.com, the Dodge Neon would set you back an average of $4,410 in premiums over five years, while the Volvo would cost $4,605.

Why, you may ask?

The Volvo tends to receive a bigger insurance discount because it inflicts less damage to other cars in an accident, suffers less damage, has a lower theft rate and protects its passengers better in an accident.

According to one national insurance provider, the Dodge Neon does worse than the average car in all three categories, equaling the reason why it costs so much to insure.

Do your research!
Not only do you need to look at what your new car has to offer, you also need to do some background research as well.

Car insurance premiums are based partly on the price of the vehicle, which affects the replacement cost if it is stolen or "totaled" in an accident. How expensive the vehicle is to repair - including parts and labor - can also impact your insurance rate. In addition, surcharges may apply to vehicles that are frequently stolen or involved in accidents.

To find out if that next dream car might be more than you bargained for, visit Highway Loss Data Institute's website. Here you will find industry-wide information on injury claims, collision repair costs and theft rates by vehicle model.

Comparison shop before you buy.
Before you make your final decision, There, you'll be able to compare car insurance rates from up to 12 insurance providers, helping you save time and money on your auto insurance.

Presently, Insurance.com offers consumers comparative car insurance quotes in every state except Massachusetts, Alaska and Hawaii.