Short Term Car Insurance: When And Why It Is Needed?


Posted on September 23, 2011 by admin

Short Term Car Insurance

Short term car insurance is the ultimate auto insurance solution for drivers who are seldom behind the wheel or for cars which are not used frequently. Auto insurance coverage is very important, especially at such a time when car accidents statistics have gone through the roof.

According to the Bureau of Labor Statistics:

  • The years 2005 saw about 6.5 million automobile accidents reported across the United States. The total cost of these accidents amounted to over $230 billion.
  • Approximately three million people suffered from severe injuries and over 40,000 lives were lost.
  • A report by the National Highway Traffic Safety Administration (NTHA) showed that in the US, auto accidents occur every 12 minutes on average.

Most of the auto insurance companies offering this type of coverage basically charge a flat rate depending on the duration of the coverage. This simply means that a regular per-day rate could be negotiated.

Majority of insurers usually offer a six months policy for the same price, and so it would be up to you to decide on a package that would best address your driving needs.

A key feature that you should look out for is if the coverage would extend to someone else driving your car with your permission. This would absolve you of any liability in the unfortunate event someone else driving your car with your consent gets involved in an accident.

The coverage offers you very reliable and flexible means of ensuring you car is safe on the road even when your car is temporarily in the hands of another driver. Short terms car insurance also spares you the pains of having to add names to drivers on your regular policy or having your no claims bonus stripped off.

The policy also covers any repair services that may be required during a road trip. In fact, most car rental firms have it as one of the mandatory requirements that a client has to fulfill before he /she can be allowed to lease a vehicle.

One of the benefits of taking this type of insurance is that you have the freedom to choose the period for which you want to have coverage, which ideally ranges from one day to 28 days.

Rates usually vary from one insurance provider to another, but this is by no means a barometer which measures the quality of the product. You need to conduct due diligence in order to find the right company. A good bet would be firms that specialize in this type of insurance product.

Whether you are traveling, buying a new car or you intend to share your car with friends, short term car insurance is a useful instrument that you should consider. It is much cheaper than including someone else in your regular policy.

There are several increments from which you can choose such as weekly, monthly, quarterly or even bi-annually. Make good use of the internet as this is where you would be able to get lots of information as well as free quotes.

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One Of The Perks Of Being Female Is Cheap Car Insurance For Women

Posted on September 17, 2011 by admin

Cheap Car Insurance For Women

If you are woman and interested in saving money on your auto insurance, you are in luck! There are many companies that offer cheap car insurance for women and if you do a quick internet search, you will find a multitude of reasons for rates being cheaper for women than it is for men.

In actuality however, the real reason that women typically get their auto insurance cheaper is based on hundreds of risk factors that are determined by the actuarial sciences used in the industry.

For instance, for a male and female getting their licenses as teenagers, both are assigned a risk rating as a youthful driver  Women obtain a risk rating of mature driving status at age 25 or until married, or has a child (whichever comes first).

Men, however, do not obtain that status until age 29, or is married (again, whichever comes first). The insurance industry obviously believes through studies of overall risk, that a woman matures faster than a man and therefore a more responsible driver.

If you are unaware of the discounts afforded to your gender, you could miss out on some of them by not asking the right questions when you shop for your next quote. Some of the best ways to assure that you are getting the cheapest and best policy available is to know what actually qualifies for a discount.

For instance, whether it is cheap car insurance for women (or a man) most States have a law that requires a minimum of at least liability coverage on your car. Liability pays out when an accident involves another car and/or property damage and you are at fault; or the motorist at fault is uninsured.

However, you do not have to carry comprehensive coverage (which covers your vehicle against theft, vandalism, fire or any type of natural disaster).  Neither do you have to include collision coverage; which covers your vehicle if the accident occurring was your fault, or if you hit a stationary object.

Take a look at your driving record and determine if you really need to pay for collision (only if your record shows that you have had claims of accidents being your fault.). You may not want to include comprehensive on your policy either, if your car is more than 8 years old. However, determine if putting your car at risk for total loss is worth the additional monthly payment before deciding not to include these provisions in your policy.

Other factors that might allow you a discount:

  • Good driver – little or no claims
  • Mature driver status – over age 25 or have a child.
  • Multiple car discount
  • Multiple policies with same company (auto-homeowners-renters-etc)
  • Senior discount (if over age 49, interestingly though, the discount is removed and the policy goes back up after the age of 74)
  • Your auto safety features play a part with discounts (like airbags, anti-lock brake system, alarm, etc)
  • Student with good grades
  • Non-Smoker
  • Few or no claims history
  • Good credit score
  • Higher deductible amount

Even though you are allowed these discounts, every agency does not automatically include them when quoting you the policy premium. Make sure you have addressed each possible discount opportunity with the agent before choosing the insurance company and/or the agent where you will buy your policy.

Statistics show that if you are a woman, insurance is an area in which you are considered less of a risk to insure than your male counterpart. Cheap car insurance for women is readily available at most agencies and they are all waiting to give you a quote.

Whether you ask for your quotes on-line or at the local agency around the corner, most will provide you with the same type of processing. However, you should not believe that your gender will entitle you to lower rates under any and all circumstances.

For instance, you and your twin brother each own and drive the same age and model of car. He is a good driver, has no claims on his policy and has good credit; whereas, you have had two speeding tickets, one accident (that was your fault) and bad credit.

In this analogy, which of you do you honestly think should have the cheaper rates?

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The Practicality Of One Day Car Insurance

Posted on September 16, 2011 by admin

Introduction To One Day Car Insurance

There are many situations in which one should consider purchasing one day car insurance. Some you may have thought of already, others you may have not considered. What makes this a practical purchase in a multitude of situations is simple. When the unthinkable happens, you must be covered in order to avoid serious financial losses.

  • One Day Car Insurance for Rental Cars

Many people falsely assume that when they rent a car, the basic coverage levels will be enough. The truth is that serious accidents can cost thousands of dollars. Should injuries or death occur, the total can climb to over a million dollars.

While everyone likes to assume that these scenarios will never happen, the truth of the matter is that they do each and every day. Having the maximum level of protection is highly advised.

  • One Day Car Insurance for Borrowed Cars

Those that do not own a vehicle may find that they need to borrow one from a friend or relative from time to time. Purchasing one day car insurance is a must in these situations. While the car may be insured by the owner, the driver needs to be as well.

Should you cause bodily injury to another driver, or passengers within a vehicle, you can be sued if the accident was your fault. These lawsuits can be extremely stressful, and can take a huge toll on your finances.

  • One Day Car Insurance for Rented Moving Vans:

This coverage is also practical when renting a vehicle for moving purposes. The possibility of an accident occurring may actually increase when one is driving a vehicle that he or she is not used to.

Most people do not drive large moving vans on a daily basis, and these vehicles can be hard to maneuver. Obviously, large trucks and moving vans are worth more than an average car.

Therefore, a high level of coverage needs to be in place to cover the cost of repairing or replacing one should an accident happen.

  • Covering Transitional Vehicles:

If you have been given, or inherited a vehicle that you plan to drive, but do not plan to keep, coverage will be necessary. One day car insurance is extremely practical in these situations, as it will help you avoid purchasing any long term coverage. Even if you do not plan to drive the vehicle, you may still wish to protect it, as even parked cars can be damaged due to weather and other external factors.

What Is The Terms and Conditions?

These will vary by provider. It is important to completely understand what the terms and conditions are in advance. Failure to follow the rules can result in coverage being denied. The terms will be easy to live with so long as the vehicle is being used in a reasonable manner. Discuss how you will be using the vehicle with the coverage provider. This will ensure that there are no surprises.

Coverage can be purchased for more than just a day should you need it. It is possible to purchase short term coverage. Though this product is not highly advertised, there are many companies that offer it. What is most important is to choose a provider that is reliable, and offers coverage levels that you feel comfortable with.

These are just some of the reasons why one may need one day car insurance. This product should be thought of each time you get behind the wheel of a car that is not your own.

While hopefully you never need to rely on it, insurance is always a wise investment. Failure to have it can have serious consequences.

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