Why does your Car Insurance Quote Increase after an Accident?

By A Nutt

Car accidents usually result in an increase in insurance premiums. Even if you are not responsible, your insurance company will have to incur some costs. There is an increase in car premiums and policy quotes because the accident will be rated against your coverage. There are a number of types of insurance coverage that can include collision, personal injury protection, and medical coverage. If you are found at fault' for an accident, coverage such as personal liability and collision will cover you, your vehicle, and personal injury to the other driver. Often, if you have just one accident, you will see an increase in your car insurance quote.

Car insurance quotes will increase because you will be considered a high risk driver. The premium will reflect the nature of the accident and the costs associated with the accident. Insurance companies will usually charge 'points' to your policy. Depending on the insurance company, these points will be charged to your policy for a certain period of time that usually ranges from three to possibly seven years. If you are in an accident that was your fault, the insurance company will consider that you are a high risk of having accidents in the future and increase your rates. You will also receive higher insurance quotes. The length of time between an accident and your quote and premiums decreasing depends on a providers policies. As well, you may have to pay a higher deductible for the insurance.

Another reason why an accident can increase your premiums when you are 'at-fault' in an accident is that there are some companies who will not insure you. When there is less competition for your business, then there is less incentive to give you a good deal. As a result, your insurance quote will be higher. When you add the insurance 'points' into the mix, it is easy to see how an accident can become very expensive. If you have a faultless driving record, it is unlikely that your premiums will increase after an accident that was determined not to be your fault.

You can normally expect a rate increase of between 20-40%. This increase is based on the Insurance Services Office's (ISO) criteria of raising a premium after an accident. According to the ISO, for multi-car policies, the surcharge is 20 percent of the base rate, and for single-car policies it is 40 percent. It is important to remember that there are other factors taken into consideration after an accident such as your age, gender, and driving record. These factors will affect how high the percentage increase will be.

The increase in premiums is not done so that the insurance money can get their money back, but is based on the risk that you may be involved in another car accident. Each insurance company has different policies and standards, but they look at your chances of getting into another accident. The number of accidents that you are involved in also increases your insurance premiums.

Some companies will absolve past accidents after a set period of time has expired. This can be two years, or as much as five years, but the period will vary depending on the insurance provider. Basically, you have to show the insurance company that you are no longer a high risk driver.

The best way to avoid high car insurance quotes is to avoid an accident. You can do this by practicing safe driving. One car accident can seriously impact your car insurance quote and the premium that you will pay.

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Canada's largest independent insurance brokerage firms delivering car insurance London, car insurance Waterloo, home insurance solutions in your community and around the world for over 70 years and offices in Cambridge, Waterloo and Toronto

Auto Insurance: Some Basic Definitions

By Theodore Hoffstrader

According to the Department of Motor Vehicles (DMV), US law requires every car owner in the country to covered by a some type of auto insurance. This law exists for two reasons: first, to protect the car owner from damages he or his car suffer in an accident, and second, to protect other people from damages that he may cause and may be his fault.

Auto Insurance Coverage defines the responsibilities and obligations of the policy holder (the person who insures his car) in case his car is damaged or stolen, or he is involved in a car accident.

The following are important definitions:

Property Coverage: this term generally covers the damage made to a policy holders car by whatever means, and also includes the theft of his car. Clearly this is a necessity when it comes to insuring ones car, and every car owner should be insured against property damage.

Liability Coverage: this defines the coverage the insurance company provides for the policy holder when he is involved an accident and causes bodily or property damage to someone else. By having this option, the policy holder is protected, as defined by his policy, from the financial costs.

Medical Coverage: this term applies to the amount of money paid for the hospitalization and treatment of injuries incurred during an accident, as well as the costs of rehabilitation, and wages lost by the injured person during this time of incapacitation.

The next few items are standard policies:

There is a great variety of auto insurance policies which exist for the purpose of indemnifying the car owner in case of loss, injury or damage. These also can be classified into several types.

Third Party: this is the simplest and cheapest policy, and the bare minimum, a car owner must possess if he owns a car. It financially protects an insured individual when he causes damage to someone or their property.

Fire and Theft: this type of policy covers the cost of a car that is either stolen or burnt, but it does not cover any other damages. For example, if involved in a car accident, based on this option alone, the insurance company is not financially responsible.

Collision: this type of policy covers the cost of repairs to a car when the policy holder is liable for the accident. Basically, if you cause the accident, you still get paid for repairs if covered by this type of insurance.

Personal Injury Protection (PIP) or Medical Payments (MedPay): this policy protects the driver and any passengers that were in his car during a car accident, by reimbursing them for medical bills and lost wages. Note that the question who caused the accident is irrelevant for this policy.

Comprehensive: this is the best type of auto insurance and the most expensive one as well. It offers virtually all protections to the policy holder ranging from accidents, medical bills (at least partially), fire damage, theft, and even natural disasters ("acts of god"). It even partially covers the cost of items stolen from a car!

Specialized policies:

The following are specialized policies that only some people may be interested in.

Classic car insurance: this policy targets owners of antique cars (cars that are older than 25 years), and is equivalent to a comprehensive car insurance. There are usually extra conditions in the policy, such as a limit on the number of miles the car owner may drive in a year's time.

Rental Reimbursement: this policy ensures a policy holder that he'll always have a car to drive in. If his car is damaged (no matter which way), he is entitled to receive a replacement rental car until it is fixed.

Regardless of the policy a car owner has, it is important for him to be familiar with his policy. Some auto insurance providers do not reimburse 100% of the value of a stolen or damaged car, but rather return only 80%, with the rationale being that this prevents frauds - accidents or thefts initiated by the owner of a car who simply dont want them anymore.

About the Author:

Theodore Hoffstrader has been struggling for years with Auto Insurance issues, and has learned a lot from his experiences. In this article he discussed a couple Auto Insurance Basics. To view more articles that will help you better comprehend Auto Insurance procedures and may save you money, visit his site, the Auto Insurance Information Highway.

Green Cars Means Cheaper Insurance

By A Nutt

It seems that these days everyone wants to do their part to help protect the environment. Due to growing consumer demands, Business and Industry are now coming up with ways for people to benefit from living a green lifestyle. One way of encouraging eco-friendly living is for insurance companies to provide cheaper car insurance for people who buy green cars. Recent research shows that drivers are increasingly more likely to purchase a green car.

There are many reasons why people are gravitating toward green cars. Because green cars have lower emissions, they will save more on gas. As well, lower emissions will result in a decreased carbon footprint since there is less carbon dioxide and carbon monoxide being released into the atmosphere. This helps slow down global warming.

Because some green cars such as hybrids tend to be expensive, insurance companies are now providing discounts to people who buy more energy efficient vehicles. This can include not only hybrids, but cars that have high mileage. Research has shown that people who drive hybrids are a lower risk of getting involved in an accident and tend to be less reckless drivers. These drivers are considered more sensible and they care about the environment so there risk is lowered. A lower risk driver will receive lower premiums. As well, many of these companies that offer discounts for green drivers are involved in programs that work to make a more sustainable environment.

Green Car Insurance is basically a method of providing discounts for people who drive low emission vehicles. The insurance was designed and implemented on the concept of reduce, reuse, and recycle. They reward eco-friendly customers with discounted car insurance premiums. Most of these companies offer some type of carbon offsetting program. This means they take a percentage of the price of a policy and give it to carbon offsetting projects. Some of the programs involve planting trees, supporting recycling projects, or other eco-projects. They may even offer extra incentives such as using recycled car parts for repairs and recycling the car if it is irrecoverable. There are a number of green car insurance companies that will offset 100% of a vehicle's emissions.

There are also proposed pay-as-you-go car insurance programs. This is where your insurance rates are based on the actual number of miles you drive. This encourages drivers to reduce the number of miles they drive each year. Drivers would confirm mileage either by their repair records, odometer readings, or even a piece of equipment installed on the vehicle that tracks mileage.

Customers are now being rewarded for their green lifestyle with insurance discounts. For example, GMAC offers a program with their OnStar system allowing customers to send their mileage stats via OnStar, and if their yearly confirmed mileage is less than 15,000 miles, they can receive up to a 54% discount on their GMAC car insurance.

The number of insurance providers that are providing policies that include green options is increasing. Unfortunately, not that many people know about these eco-friendly insurance options because they receive less advertising than traditional insurance policies. If you are one of the millions of people who are concerned about the future of the planet and its resources, ask your insurance company if they offer a green insurance policy. As more people learn about these great insurance options, the green trend will continue to swell. Educating consumers about the importance of green cars will encourage more people to consider purchasing a green car.

Offering cheaper insurance for green car owners means more people will buy these vehicles and thus create a cleaner and greener environment with Auto Parts Stores

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Environmentally friendly Salvage Cars features an online parts search or choose from over 1000 used tires in stock. Schedule your vehicle, used tires, or Cheap Car parts pickup today.

Getting Discounted Car Insurance

By Steve Remsi

We would all love to save as much money as we possibly can and it is nice to be able to do so with items that we absolutely must have. Car insurance is one of these items. Often times car insurance can be expensive. However, the cost of your car insurance will vary from company to company, so it is important that you receive as many car insurance quotes as possible before making an informed decision on your coverage.

Given that car insurance is a required purchase all across the United States, it would be highly beneficial for you to do your homework before settling on an agent and buying your car insurance. For instance, many people are not aware that insurance companies can sometimes offer substantial discounts on car insurance for various criteria you may meet. All you need to do is talk with your insurance agent about what discounts might be available and ask for a few car insurance quotes based on what discounts they may offer. The discounts can be fairly substantial if you are able to take advantage of them all and who really couldn't use some extra money in their pocket?

Though the discounts may vary widely from one car insurance company to the next, this is where the benefit of receiving multiple car insurance quotes will come in handy. It is this way that you can determine which car insurance company and agent to give your business to. Also, be wary if the agent does not offer nor mention any available discounts. Yes, you want to be pro-active and ask about them, but you should also feel confident that your agent has your best interest at heart and not just the best interest of the company's bottom line.

So you are aware, not all discounts are offered in all states, but the most common discounts include: car safety features such as anti-lock brakes, air bags -- both driver and passenger -- and automatic seat-belts; you may also receive a discount for any voluntary defensive driving courses you have taken.

Multi-car discounts are also popular because you will be insuring more than one vehicle with the insurance agent; and it is also possible to receive a discount for a clean driving record -- that is to say, no tickets or accidents in the previous 5 or more years. So be diligent about requesting your car insurance quotes and make sure you can get the most coverage at the best price before purchasing your policy.

About the Author:

Steve knows Texas car insurance, staying plugged in to the world of Texas auto insurance and the joys of Texas car insurance quotes.

Car Insurance Quotes: How Much Coverage is Required?

By Evelyn LeGrand

One of the most necessary -- and required -- aspects to owning a car is having car insurance to cover you, your vehicle and in some cases, the other driver should you find yourself in the unfavorable position of being in an accident. Like most insurance, car insurance can be confusing and difficult to understand... especially if you have an insurance agent whose primary focus is selling, selling, selling rather than providing you with the service and coverage you need. And that leads us to another question, how much car insurance do you actually need? And, how much is it going to cost you?

You definitely want to sit down with an insurance agent in order to determine the right amount of coverage necessary for your vehicle since every state has different laws that apply to what is required when it comes to insurance coverage. However, you can receive a car insurance quote -- either online or by phone -- in order to find out the approximate monthly out of pocket cost that is going to apply to you.

It is important, from a basic business point of view, for you to do your homework where the cost of insurance is concerned. This will prevent any unscrupulous insurance agent from taking advantage of you by charging you too much for whatever insurance coverage it is you need. Too, by searching for car insurance quotes, it may also be possible for you to find an insurance company that is reputable, but has much lower prices than their competition. This is probably one of the main reasons people request car insurance quotes in the first place. Once you have narrowed down your search to two or three insurance companies, you can schedule an appointment with each of them in order to determine what type of coverage is required in the state in which you live.

If you are just searching for the minimum coverage you can purchase, you will certainly need to find out exactly what that minimum will not cover in the event of an accident. Fortunately, the minimum required car insurance that is required in one state is often similar to that of other states, though specifics -- such as dollar amounts -- may be higher or lower. Typically, all states require bodily injury and property damage coverage, but some also require you to carry uninsured (or under-insured) motorist coverage as well.

When you are seeking your car insurance quotes, it might be beneficial for you to include this coverage as well, especially if you plan on traveling to a state that requires it. Once you have scheduled your appointments, prepare a list of questions and you will be able to choose your insurance agent, and the coverage you need, with confidence.

About the Author:

Few are as knowledgeable as Evelyn in New York car insurance, staying plugged in to the world of New York auto insurance and the joys of New York auto insurance quotes.

The Best Quote is an Easy Quote

By Adam Schwantelmann

The days of having an insurance agent that people go to for all their insurance needs are coming to a close in the near future. The days of finding the best insurance deals online are here and are not going away. Finding an online auto insurance quote is a very simple process. There are several sites that people can go to and receive free quotes from various companies. The nice thing about these sites is that they will search multiple insurance agencies to find the best rates for the coverages requested. This saves people the time of doing all of the searching on their own.

Many of these websites have licensed insurance agents that work to find you the best rates on the coverage amounts that you want. They won't just send you a piece of paper with your coverages and tell you to sign it. These agents that provide the online auto insurance quote will walk you through all of policies step by step. These experts are also available to answer questions and give you information about the policies that you might not otherwise know. Depending on the type of car you are trying to insure, there are some ways that you can save money on your policy premiums.

One of the biggest factors in determining your premium amounts on any car insurance is the amount of coverage that you want to have. When looking at an online auto insurance quote, it is a good idea to get quotes with one set of coverage amounts, and then change them and compare the other set of quotes. If the premiums aren't that much more for higher coverage amounts, then it might be worth it to you to have them. The other factor that will have a large impact on your premium amounts is your deductible.

The higher you set the deductible for the policy, the more your premiums will go down. Setting the deductible too high, however, can put you in a tough spot if you ever are in an accident. When you look at an online auto insurance quote, change the deductible amount a few times to compare the premium differences. Shopping for car insurance is something that people should spend time doing before they decide on a policy. Talking to an insurance agent about coverage amounts is a good idea. Looking online is the best way to compare prices, get questions answered and find the best policy.

About the Author:

Few are as knowledgeable as Adam in Texas car insurance, staying plugged in to the world of Texas auto insurance and the joys of Texas car insurance quotes.

How Cheaper Is Pay As You Drive Insurance?

By Graham McKenzie

Pay as you drive insurance can really help you, especially if you don?t put on many miles. For many your car is your lifeline, but for others a car is something that is only used for long trips out of town. If you use the bus you will really understand the importance of pay as you drive insurance, since you are paying for a car you hardly use.

This type of insurance is really more of a deduction. It is an option given to motorists, but it is only available in some states. Because your final price is only received after you relate your hours or miles driven, the actual price cannot be stated in the agreement, which makes it illegal in some areas. This complication is trying to be sorted out so everyone can have the benefits of pay as you drive insurance.

Pay as you drive is determined in several different ways. You can have an inspector come out and examine your mileage and be charged accordingly, or have your mileage sent to your insurance company directly from your GPS. Your GPS system can also relate driving styles and patterns if you think that it will help lower your premiums further. There are even ways of recording your mileage through pay-at-the pump technologies.

Pay as you drive insurance can really be cheaper, for drivers who do not hit the road too often. Almost two of every three people can use this insurance plan and save money. Another advantage of the plan is that you can opt to have a short period of coverage. This can be ideal for the college student who come home and drive only during summer vacation. Instead of paying insurance all the year around, they can get covered by the pay as you drive plan. A lot of people find their cut by nearly 50%, which matters greatly for many drivers.

Some rural drivers are a little cautious of this type of insurance because they believe they will be charged more for having to drive more. Don't worry; the insurance companies adjust for this, seeing as most accidents occur in the city anyways. Your premiums will be set based off of the average information from your area, and discounted according to how many miles you put on.

Besides, being a cost saving scheme, the pay as you drive insurance also helps in protecting the environment. As few people will drive cars, there will be comparatively less accidents and the carbon dioxide discharge will also be reduced. You can this way begin serving the environment, without having to change your way of living.

In case you are doubtful of the pay as you drive plan, attempt tracking your mileage for one month and then look around for quotes. You will have to contact an insurance agent for the quotes, but it is expected that you?ll be highly surprised by seeing your savings. In case you feel that your monthly mileage is too much for this insurance plan to be advantageous, then you can carry on with your old insurance plan.

About the Author:

Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading car insurance portal.