Tuesday, 15 January 2013

Vehicle insurance is an insurance purchased for cars, trucks, motorcycles and other road vehicles. Its primary use is to provide financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise there from. The specific terms of vehicle insurance vary with legal regulations in each region. 
Coverage levels
Vehicle insurance can cover some or all of the following items:
  • The insured party (medical payments)
  • The insured vehicle (physical damage)
  • Third parties (car and people, property damage and bodily injury)
  • Third party, fire and theft
  • In some jurisdictions coverage for injuries to persons riding in the insured vehicle is available without regard to fault in the auto accident (No Fault Auto Insurance)
  • The cost to rent a vehicle if yours is damaged.
  • The cost to tow your vehicle to a repair facility.
Vehicle classification
Two of the most important factors that go into determining the underwriting risk on motorized vehicles are: performance capability and retail cost. The most commonly available providers of auto insurance have underwriting restrictions against vehicles that are either designed to be capable of higher speeds and performance levels
Steps to getting Auto Insurance
When it comes to auto insurance, you want to be adequately covered if you get in an accident, but you don't want to pay more than you have to. Unfortunately many people are doing just that, simply because they don't want to spend time shopping for car insurance. It's not inherently enjoyable, after all, despite how it looks in commercials featuring disgruntled cavemen and joke-cracking spokespeople.
But by doing some comparison shopping, you could save hundreds of dollars a year. When one of our editors used a rate-comparison service, he got basic coverage quotes for his two old cars that ranged from $1,006 to $1,807 — a difference of $801 a year. If you're paying thousands to your current insurance company because you have a couple tickets, an accident or an out-of-date and unfavorable credit rating, shopping your policy against others might be well worth the effort. Look at it this way: 
Gather Quotes and Company Information
Annual and monthly rates for the different types of coverage. Make sure to keep the coverage limits the same so you can make apples-to-apples comparisons for cost and coverage.
  • The insurance company's 800 telephone number, so you can get answers to questions you couldn't find online.
  • The insurance company's payment policy. When is the payment due? What kinds of payment plans are available? What happens if you're late in making a payment
Carry Your Proof
After you have secured the auto insurance policy you want, cancel coverage with your existing insurance company. If your state requires you to carry proof of insurance, make sure you put the card in your wallet or the glove compartment of your car.
o    Determine your state's minimum insurance requirements.
o    Consider your own financial situation in relation to the required insurance and consider whether you need to increase your limits to protect your assets.
o    Review the status of your driving record — do you have any outstanding tickets or points on your driver license?