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Nation 50 Direct Auto Insurance |
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What affects the price of Auto Insurance? What are you insurance needs: What coverages and deductibles attached to your policy. What kind of car you drive: the more expensive the car, the more you pay. Where you drive: Due to higher rates of vandalism, theft and accidents, urban drivers pay more for insurance than those in small towns or rural areas. How much you drive: People who use their car for business and long-distance commuting normally pay more than those who drive less. Your age, sex and marital status: Accident rates are higher for all drivers under age 25, especially young males and single males. Your driving record: Drivers who cause accidents must pay more than those who are accident-free for several years. Your credit history: Studies have shown that credit history is a powerful predictor of future auto insurance losses. Many insurance companies consider certain credit characteristics in addition to many other factors when determining an individual's rate. What can I do to save money on my Auto Insurance Avoid cars more susceptible to damage or occupant injury Ask about discounts for:
How much Auto Insurance do I need? Consider the following questions… How high should my liability coverage limits be? No one can predict exactly how much you would have to pay if you were to cause an accident. Ask yourself how you would pay for any damages exceeding your coverage limits. The higher your liability coverage limits are, the more likely your policy will be able to pay all of the damages. How high or low should my collision and comprehensive deductibles be? Higher deductibles lower your premium but increase the amount you must pay out of your own pocket if a loss occurs. Ask yourself how much you would be willing and able to pay on short notice in order to save on your premium. Should I carry collision and comprehensive coverage? You may be required to carry collision or comprehensive coverage if your vehicle is leased or financed. Once you have paid off your car, and its value decreases, you might consider dropping these coverages to save money on premiums. Consider, though, whether the savings would be enough to offset the risk of having to pay the entire cost of repairing or replacing the vehicle. What is a Deductible? A deductible is the part of a covered loss that you have agreed to pay with your own money. If you file a claim against your insurance, you will pay only the amount of the deductible. Nation 50 Direct Auto Insurance will pay the rest - up to your coverage limit. When choosing a deductible, you must decide how much you would be willing and able to pay out-of-pocket, if you ever had to file a claim. Typically, higher deductibles mean lower premiums. Who does my auto insurance policy cover? · You and your spouse · Relatives who live in your home · Other licensed drivers who have permission to drive your insured vehicle. What are the 7 most common auto insurance coverages? An Auto Insurance policy generally consists of several kinds of coverages. Because all 50 states have different laws when it comes to Auto Insurance, the following coverage descriptions are simply general information. 1. Liability Auto liability coverage pays for the damage if you are legally responsible for accidentally injuring someone, or for damaging another vehicle or other property in an auto accident. Auto liability coverage falls into two categories: 1 Bodily Injury Liability - covers medical expenses, pain and suffering, lost wages, and other special damages. 2 Property Damage Liability - covers damaged property, and may include loss of use. Liability coverage also pays legal defense and court costs. 2. Personal Injury Protection (PIP) This coverage pays the reasonable and necessary medical expenses for covered persons for treatment due to an auto accident. It may also pay for:
3. Collision This coverage helps pay for damage to a covered vehicle caused by:
4. Comprehensive This coverage helps pay for loss of or damage to an insured vehicle, not caused by a collision or vehicle rollover.
5. Uninsured Motorist This coverage pays for damages when a covered person is injured in an auto accident caused by a driver who does not have Liability Insurance. 6. Underinsured Motorist This coverage pays for damages when a covered person is injured in an auto accident caused by another driver who has insufficient Liability Insurance. 7. Rental Reimbursement This coverage pays for renting a car when your auto is disabled due to an auto accident. Daily allowances or limits vary by state or policy provisions. What are the Benefits of Car Insurance?
Ways Parents Can Help Their Teenage Drivers Every year, nearly 6,000 teenagers are killed in car crashes. Nearly 300,000 are injured. That's why Allstate is always seeking new ways to protect teens and their parents from the dangers of the road. Since teens lack driving experience, they’re a higher risk to insure; therefore, the premiums assigned to them are typically higher than an adult. However, there are steps you and your teen can take to help reduce rates:
What are the driving Provisions for Teenage Drivers?
What are the Claims Causing Canceled Insurance? Your auto insurance premium will almost certainly increase after an accident, especially if you're at fault. The reason for this is simple: actuarial evidence indicates that people who have had accidents in the past are more likely to have accidents again in the future. What is the Connection between Credit and Insurance? It seems that there is a connection between credit risk and safety risk. Although there is no explanation for the findings, some insurance company statistics show that drivers with derogatory credit, historically file more accident claims than drivers without derogatory credit. Insurers reason that a consumer who is careful with one aspect of their life (e.g., financial affairs) is also likely to be careful with other aspects of their life (e.g., driving habits). Credit information is also needed to determine whether an applicant is likely to pay premiums in a timely fashion. How does the your driving record and the point System affect Insurance Rates? In most states, the motor vehicles department has a "point" system, which is used to track your driving record. Generally, each type of infraction (moving violations, parking tickets, at-fault accidents, driving under the influence, etc.) is assigned a certain point value. When you are found guilty of one of these infractions, the appropriate number of points is added to your driving record. The more points you have, the worse your record. An auto insurance company has the right to review the driving record of anyone who applies for an auto insurance policy from that company. The purpose of this initial review is to determine whether you meet the insurer's standards of insurability (i.e., whether you will be issued a policy at all); also, to evaluate your risk potential (i.e., how much your insurance will cost). Each insurance company has its own method of evaluating applicants, so the points on your driving record may or may not have a direct impact on the rates you pay for auto insurance. Should I have an Auto Insurance Policy if I’m a non-car owner? If you drive at all, it's a good idea to have an automobile insurance policy--even if you don't own a car. Many insurance companies offer a "nonowners policy" for people who drive occasionally but don't own their own car. Nonowners policies typically include liability, medical payments, and uninsured/underinsured motorist coverages. Nonowners policies generally do not include comprehensive, collision, towing reimbursement, or rental reimbursement coverage. nonowners policy provides coverage for any car you drive, not just rental cars. |
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