Do you want to get the auto insurance coverage you desire? One basic way of accomplishing this is by learning the terms of auto insurance. Knowing the terms of auto insurance can not be over-emphasized. It is a key factor to your choosing the right insurance policy for your car.

Take a fresh look at some of the interesting terms of auto insurance to better equip you for the booming industry. Here are some of them:

Binder

Temporary agreement stating that the auto insurance policy is under effect but may not necessary is. This agreement is based on the contract both of the policyholder and the insurance company which may not have taken into effect.

When a policy cannot be endorsed immediately, the binder is used to protect the policyholder until the insurance policy has fully gone into effect.

Bodily Injury

This is an unexpected damage or injury to the body of the car driver and/or passengers, pedestrians etc resulting from an accident, storm, wind, or any other form of casualty.

Sometimes, this could be due to negligence on the part of the car driver. Proper care should be taken by car drivers when they are driving on the road.

It could also be the result of negligence on the part of other drivers on the road. Having bodily injury liability coverage should be expected on the part of drivers.

Bodily Injury Liability Coverage

This is also auto insurance policy coverage for the policyholder in the event of car accidents causing bodily injuries for the driver and others involved e.g. passengers and/or pedestrians.

In most cases, the coverage includes the income lost as a result of the accident and even up to medical bills for the victims having the coverage.

There are much benefits of having coverage of bodily injury. One major reason is the reduction of medical expenses.

Normally, all medical expenses of an accident resulting in bodily injury are assumed to be the primary responsibility of the victim or his or her guardian.

Coverage for bodily injury can be accessed based on the severity of injuries sustained during the cause of the accident and the medical bills involved for such injuries.

As already noted, injuries can be sustained by others not in the vehicle e.g. pedestrian which may result in a legal case against the driver.

In this case, the coverage may also be used to cover the costs of any legal defence involved when the driver is actually found guilty for the injuries sustained by the victims other than him.

Blue Book

This refers to the printed book or writing of auto insurance. It is primarily used for the purpose of determining the actual market value of fairly used cars and trucks that have auto insurance coverage.

The value of the automobile or car as determined by the book is the same as that computed and indemnified to the policyholder for an accident resulting in the damage of the car or truck.

The blue book often helps in keeping the right record and value of the insured car or truck. The book is always safely kept for future references in the event of an accident resulting in a car damage.

Broker

In auto insurance terms, a broker simply refers to a marketing professional or consultant who represents one or more insurance companies.

They take appropriate steps and procedures to ensure the insurance customer or policyholder get the best value or auto insurance coverage.

They are primarily there to working hand in hand with companies and agents to give the best value to all active policyholders.

Broker-Agent

This is a licensed insurance specialist who acts as both a representative agent and a broker for one or more insurance companies.

They also ensure that the customers or policyholders get the best value for their insurance policy. They are like the middle man between you and the insurance company they represent.

They may also have to carry your complaint or feedback to the insurance companies in order to satisfy your insurance needs.

In addition, they may have to give or pass some updates of the insurance company to the policyholder during the time of which the policy is in force.

They need to be reasonable and be keenly interested in the affairs and needs of the insured. They need to be very conversant and familiar with the insurance field they represent.

Broker Fee Agreement

In insurance terms, it means the contract agreement between the insured/policyholder and the licensed broker during the period of active insurance coverage.

Sometimes, this agreement may include the actual charges of the services of the broker for the insurance coverage of the policyholder.

All decisions and actions are mostly based on this agreement of the insurance policy. This helps in avoiding unnecessary disagreement and failures during the insurance coverage.

What is an auto insurance policy and What will an car insurance policy cover? car insurance service offers protection to the driver and passengers in the event an accident occurs. But it is up to you to choose the level of protection you will get.

What questions are you to ask your auto insurance service provider when it comes to auto insurance matters?

in this article, we would discuss on what are the different types of auto insurance policies? we would provide them in details so that when you read through the end you will have knowledge on the different types of car insurance policies.

Types of auto insurance policy

Third party or Liability insurance –
This is often the lowest form of auto insurance policy offered by auto insurance service providers. This is the basic insurance policy you can have, if you got involved in an accident, and after investigation it was proved to be your fault, the auto insurance service provider will pay all the damages to the other party of the accident.
The cover you can get from auto insurance service provider is usually set beforehand. There is a basic set maximum amount they will pay you in case you got involved in an accident.

For instance, the agent can agree on a $10000 coverage per individual for bodily injury and or $40000 coverage in bodily injury and choose $10000 in property damage sustained in the accident.
You need to confirm from your auto insurance service provider what they will cover and what the limits are. Some insurance companies might offer you a very low premium only for you to realize that your cover is minimal and unrealistic.
Collision and comprehensive insurance coverage –

In a simpler term, comprehensive insurance coverage offers you protection in case you got involved in an accident and are proven to be responsible for the collision the insurance provider will pay for the repair of the vehicle.

But it doesn’t appear simple as you may think, the car insurance service provider will almost always have the final say on the amount to be paid out, so if it is cheaper for them to give you the market value for the car, then they will most definitely do it.

You may have the belief that your car is worth $10000.00 but the real market value of the car may be $5000.00. This is a common scenario. So if it happens that the real value of the repair of your car is more than $5000.00 then the insurance service provider will simply pay the real value of the car.

you have to make sure your auto insurance service provider is not in full control of the real market value of the car, normally an organization like the AA will always provide an impartial market value.

concerning third party insurance policy, the insurance service provider will almost attempt to limit the amount they will pay out to you, but in general terms, comprehensive insurance policy will always have a higher limit.

Recreation Vehicle –

A recreation vehicle often requires its own insurance, a Recreation vehicle insurance is quite different from the basic auto insurance. You should not assume that because your car has a comprehensive insurance, so is your recreation vehicle as well.

Other Types of auto insurance

Medical, Personal Injury protection and no fault cover –
This insurance will cover the medical expense for you and your passengers in case you got involved in a collision.

The insurance service provider under the no fault cover insurance policy will pay you regardless of who is at fault in the accident. This provides you the peace of mind for your family and friends.

Personal Injury protection is often a minimum requirement that is practiced in some states or countries, you can ask your insurance service provider what are the requirements in your state.
Underinsured /Uninsured motorists’ insurance coverage –
This policy offers protection to the policyholders if the person at fault is underinsured or not insured at all. It is advisable to ask your insurance service provider what will be your charges in case you got involved in such a situation. Normally the insurance provider should not charge you some extra premiums.

Rental reimbursement, towing and labor –
This extra coverage often given with a comprehensive insurance are considered as specials by auto insurance companies.

So in case your car got damaged the insurance service provider will pay you for rental cost for only couple of day. They can also offer to pay for the towing of your vehicle but not always included in the policy. You can also inquire from your insurance company what is included in the cover.

Here are ten easy steps you can take in your efforts to save on Auto Insurance and reduce your auto insurance premiums.

1. The first thing and probably one of the most important steps in reducing your Auto Insurance premiums is to shop around and compare insurance quotes. Insurance rates can vary quite a bit across different insurance companies for a variety of reasons, including size of insurance company, the type of vehicle, the coverage you are looking for etc. Therefore its very important that you do insurance quotes and compare rates to ensure you are getting the best insurance coverage and at affordable rates. Online Insurance Quote sites have grown in popularity as more persons search for and compare Insurance rates from the comfort of their own homes.

2. Do your research before buying an automobile as this could be the difference between a higher insurance rate and a lower one. Try to find out which cars tend to be targets for theft and vandalism and avoid purchasing those. Purchasing a vehicle with a higher theft rate could result in you paying higher insurance premiums.

3. Try to pay higher deductibles. Your deductible is the amount of money you have to pay out of pocket before your insurance policy pays a claim on your behalf in the event of an accident, theft or other damages. Generally speaking, the higher your deductibles, the lower your auto insurance premiums will be. Start paying higher deductibles and you will save on auto insurance.

4. If you are the proud owner of a home, consider insuring your car and home with the same insurance company. In most cases having your auto and home insurance with the same company can help to reduce your insurance as a lot of insurance companies offer multi products discount, up to 20% discount or more if you insure multiple products with them. Likewise If you have multiple vehicles try to have them on the same insurance policy as most Insurance companies offer multi vehicle discounts or bulk rates, which you can take advantage of if you insure multiple vehicles with them.

5. Try to drive less and by doing so you will also reduce your mileage. If you have an opportunity to walk, car pool or take the subway to work, this can help to reduce your mileage and reduce your auto insurance premiums. When you drive less you increase your chances of qualifying for low mileage discounts. Also remember that the more you drive the greater your chances of meeting in an accident. If you want to save on auto insurance, drive less.

6. Make an effort to stay accident free as your driving record and history of accidents is one of the most influential factors that can impact your insurance rates.,Avoid speeding and avoid traffic violations as the more accidents you have the higher your auto insurance premiums will be.

7. If you are a new driver, consider taking a driver’s training course.A lot of insurance companies offer discounted rates to new drivers who take an approved driver training course within the last 3 years. Therefore taking these courses can help to lower your auto insurance rates. Taking a defensive driving course or accident prevention course can translate into huge insurance savings and help reduce your premiums.

8. If you can, pay your yearly insurance premium upfront instead of via installments such as a monthly plan. By doing so you can save a lot on your Auto Insurance.You can incur additional fees by being on a payment plan as many insurance companies charge interest or admin fees for their installment options.

9. Installing anti-theft devices such as alarms in your automobile could lead to a reduction in your auto insurance premiums as it means more security and safety for your vehicle.

10. Pay attention to the age, color, features and specs of the vehicle which may all have some bearing on the price of your insurance premiums. Performance and non-performance modifications may also increase your premiums. For example top end car stereos, alloy rims, custom paint job, upholstery, turbo kits, enhanced muffler and exhaust system and so on will almost certainly increase the value of your vehicle and my make it more desirable to thieves. This may result in higher insurance premiums.

In the modern over-saturated auto insurance market choosing the right auto insurance package could be very challenging. Some insurance carriers proudly offer the cheapest insurance packages, others try to overwhelm you with impressive array of services and features they offer. But it’s not always the cheapest price nor the richest set of services that you should be concerned of – it’s the ever moving right combination of best price AND the best coverage which you have to try to achieve.

“Lower your auto insurance”

Below are the main factors that will define your individual auto insurance premiums.

  • Driver’s Age.

Insurance rates for too young and too senior drivers are usually noticeably higher than for the average-age drivers. These two categories of drivers are considered to incur a higher risk of traffic accidents and therefore are more expensive for insurance providers.

  • Driver’s Gender

This factor would make the feminist movement very happy – male drivers usually pay higher “about insurance” premiums than females! The reason – statistics shows that men are more likely to drive aggressively than females and hence they are more risky for insurers.

  • The Age and Condition of Your Vehicle.

Brand new cars are more expensive to repair; this can drive the insurance package price up. Also, speedy sport cars are more accident-prone and therefore have higher insurance rates.

  • Do You Legally Own the Car You Drive

If you drive your car regularly but don’t legally own it – for example, the car you drive is from lease or the car was purchased by you but is not paid off yet – you might be requested to buy more than just liability coverage insurance. The more expensive package of Collision Coverage plus Comprehensive Coverage is often required in these cases.

  • Average Miles You Drive Daily.

Cars used sparingly, say – only 5-10 miles a day – understandably introduce a lesser risk of traffic accidents and therefore are cheaper than the cars which make 150 miles every day.

  • Deductible You are Willing to Pay.

A deductible is your co-pay in the case of an auto accident. The higher your deductible is – the more losses you are willing to share with the insurance company and the lower your insurance package price will be.

  • Your Driving Record.

Drivers with no tickets or accidents always pay less.

  • Years of Your Driving Experience.

The more driving experience you have – the better your chances are to get a low rate. But this is just a general rule. Many auto insurance carriers would ask a driver about the age when his first driver license was issued in the USA or Canada. For those auto insurance carriers only North American driving experience is counted. Note also, that if you moved to the USA from Great Britain, Japan or any other country with left-hand traffic (total of 76 countries, territories and dependencies) you will likely to pay a much higher premiums in USA.

  • State of Your Residence.

You might be surprised but insurance rates for the same person and the same vehicle vary significantly from state to state. These differences reflect the increased risk and hence the increased operating cost for insurance companies. For example, insurance rates in hurricane- and tornado-prone areas are usually much higher than in regular places.

  • Vehicle Safety Features.

Anti-theft protected vehicles decrease the risk of a loss. Also, cars with ABS, air bags, rear-view cameras and other safety gadgets are considered to be safer and therefore are cheaper for auto insurance carriers. That is the main factors which would affect ones auto insurance premiums in general.

Conclusion

Buying insurance policy for your vehicle could be a costly and challenging exercise. Age, gender, vehicle condition, average daily miles you drive, State where you live are the few factors that will define your monthly insurance premiums. Knowing that factors will help you to better understand insurance quotes coming from competing insurance carriers and will make you better prepared for making your purchase decision. Shop around and choose the best auto insurance package for you.

Alvin Borsinger – web master and web marketing manager at CarGalaxies.com – a BorSystems Company.

You can get a pretty accurate picture of what real auto insurance premium you can expect in your particular case if you use the right Internet resources.