Smart Auto Insurance Blog

First Acceptance Insurance has a very useful section on their website that outlines your auto insurance policy in simple terms.  To summarize, there are generally 5 parts to a typical auto insurance contract.

Part 1 is called the Declaration section, which is unique from customer to customer.  Part 2 is the Coverage Parts or Insuring Agreement.  This sections discusses the coverage options and coverage limits.  Part 3 is Exclusions which highlights your policy’s limitations.  Part 4 is Conditions which outlines legal responsibilities.  Then there is Part 5 Definitions.  This section goes over terms and rights of the customer and insurer.  This section is sometimes referred to as fine print.

The names of the various sections may vary from company to company but the general points are discussed.  It’s beneficial to understand each section of your auto insurance policy so you can easily compare benefits as you shop around for auto insurance rates.

According to the article “Auto Insurance Customers Urged to get Breakdown Coverage” found on PrudentMinds.com, it’s extra important to have breakdown coverage through your auto insurance policy during the cold weather.

The article says that claim filings increase in the cold weather as road conditions are often hazardous.  In addition, cars are more likely to experience mechanical problems in the colder air.  The article also recommends making minor car checks before hitting the road such as oil level, anti freeze, hazard lights, tire tread and pressure, as well as ensuring you have a spare.  It’s also important to make sure your window wipers are working properly and you have sufficient wiper fluid.

In bad weather, there is a chance of being left in the cold for an extended period of time so it’s important to be protected.  It’s a good idea to keep safety items in your car such as a torch, warning sign, first aid kit, jumper cables, and a blanket.  Before you take a road trip in the wintry conditions, contact your auto insurance company to understand what type of breakdown coverage you have.

Florida requires its residents to carry a Florida auto insurance policy which covers for both personal injury and damage to the property of others according to the article “Minimum Floriday Car Insurance Requirements May Not Be Sufficient” found on auto-mobi.info.  The article suggests that the coverage may not be enough to handle the high costs of medical care and property damage.

Florida auto insurance laws currently require drivers to have a limit of $10,000 for personal injury protection, and $10,000 for property damage liability.  These limits can easily be exceeded following a major accident and may leave you responsible for a large dollar amount if you carry the minimum coverage.  It’s a good idea to see what extended coverage is available and affordable as you shop around.

Drivers should consider adding Comprehensive and Collision to their auto insurance policy if they want to cover their car fully, especially if their car is being financed.  Some lenders actually require coverage for the physical damage of the financed car as part of the loan terms.  Car insurance quotes vary greatly from insurer to insurer, as do the benefits of policies, so it can pay off big time to do your homework.

As to be expected, auto insurance rates are very high for teenage drivers because they are riskier since they are new and in the learning process of driving.  The article “A Crash Course On Auto Insurance” by Diane Giles on kenoshawnews.com points out that adding a teen to an auto insurance policy can double the yearly premium. 

Director of Insurance for the Consumer Federation of America, Robert Hunter, says that data on teen deaths and accidents is very bad.  It’s especially bad for young, male drivers and that is directly related to their auto insurance rates.  Auto insurance companies use this data to determine who is most likely to file a claim.  Car crashes are the number one cause of death among teens in the US.  A driver age 16-19 is 4 times more likely to have a fatal car crash compared to a driver age 25-69.  That is astonishing and extremely concerning. 

Experts agree that it is crucial for parents to get involved and educate their kids on driving safely.  Not only drugs and alcohol are distracting kids.  It’s also talking on the phone, texting, and loud and rambunctious passengers.  By having your teen contribute to their auto insurance bill it can encourage them to drive safely.  They need to understand the direct correlation between a clean driving record and the cost of auto insurance.

According to the article “Additional Auto Insurance May Not Be Needed For Rental Cars” by Lawrence Shipman on usinsuranceonline.com, rental cars have auto insurance through the state of Minnesota. 

Auto insurance to cover a rental car can be up to $10-$15 per day.  This is a lot of money, especially if you are renting the car for an extended period of time.  That’s why it’s important to understand what type of coverage you have through the state of Minnesota and Minnesota auto insurance.  The minimum coverage for covering a rental car in the state is $35,000.  This is probably plenty to cover the car you are driving but the only thing to consider is that if you wreck multiple cars it could end up costing you more.

You will also want to check with your personal auto insurance policy to see if there is any additional coverage for rental cars.  When you are shopping around for Minnesota auto insurance quotes you can ask if there are any policies that offer such a benefit before making a purchase.  The Insurance Information Institute says consumers are usually covered when they rent a car.

According to the article “The Effects of a DUI on Car Insurance Quotes” by insuranceagents.com, auto insurance quotes can skyrocket after a Driving Under the Influence violation is on your record.

Not only will a DUI on your record cause your auto insurance quotes to increase, but your license may be suspended and your current auto insurance policy may be cancelled, leaving you in a tough spot to find new auto insurance fast. 

There is a zero tolerance for drinking and driving in the United States because of how terribly dangerous it is to the driver, passengers and other people driving on the road.  Not only are you putting lives at risk if you drink and drive, but you are setting yourself up for a potentially very expensive road as well as possible jail time.

According to the article “DMV Requires a New Auto Insurance Policy When You Move to a New State” found on bestsyndication.com, your driver’s license cannot be updated with a new state until you change your auto insurance.

The Department of Motor Vehicles (DMV) requires drivers who are moving to a new state to take out a new and updated auto insurance policy.  Without the new policy in place you will be unable to obtain a new license.  If you are staying within state lines you still need to contact your auto insurance company since part of your rate is based on where you live, but the policy may not be redone at that time. 

When moving, there is already a long to do list, but be sure to make updating auto insurance a priority.  It can cost you a lot of time and money if you get stuck driving without insurance and you are pulled over.

According to the September 8th press release on onlineprnews.com, submitted by insurance-auto-insurance-health-insurance.com, uninsured drivers are on the rise.  In 2007 about 23% of motorists were driving uninsured but now that statistic is closer to 1/2 of all drivers who do not have auto insurance. 

As unemployment rates increase so does the number of uninsured drivers.  But all drivers are at risk on the road when so many do not carry insurance.  A simple auto insurance policy can offer many benefits including property damage, personal injury protection, and many auto insurance companies also offer a term life insurance policy. 

The average payout for a term life insurance policy offered from auto insurance companies is between $10,000 - $25,000.  It’s usually paid in one lump sum to the next of kin.  There is also uninsured motorist insurance which is crucial, now more than ever, since so many other drivers are uninsured.  This type of protection covers you in case you are in an accident with someone who does not have auto insurance.  There are many benefits from auto insurance policies.  It’s just one more reason to ensure you are properly covered.

An article on bignews.biz entitled “3 Signs That Your Auto Insurance Company is Overcharging You” by Ryan McGavin discusses three signs to look for to determine if you are being overcharged for your auto insurance policy.  More than ever people are in need of affordable auto insurance so it’s important to know you are receiving the best price.

Here are the three signs to keep your eyes open for:

1. Driving record has shown improvement but your rates have increased or stayed the same.  Infractions usually fall off around three years.
2. Your bill has fees or additional charges on top of your premium price such as a “convenience charge” or charges for certain payment methods.
3. You are a typical driver yet you are paying well above the national average which is about $70 per month according to the Insurance Information Institute

If you notice any of these trends, shop around.  Auto insurance companies can have very different quotes so be proactive and take charge of your auto insurance bill.  It can end up saving you a significant amount of money.

Car crashes are the #1 killer of our nation’s teens. Through education, teens can learn how to be safer and prevent devastating accidents.

It’s crucial to talk about road safety with your teen as well as establish rules and consequences you can agree on. Discuss when, where, how and with whom your teen is allowed to drive. Limit the number of passengers in the car and enforce a curfew. Insist that all passengers wear seat belts and encourage your teen to call for a ride home if any alcohol or drugs are involved.

Ensure your teen understands the enormous responsibility that comes with having their license. With the proper information and rules, lives may be saved. When it has been determined that your teen is a safe driver and you have to add them to your auto insurance policy, be sure to shop around for the best price.