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Monthly Archives: June 2017

Auto Insurance Rate Hikes

The driving risks associated with a cell phone is only surpassed by the dangers of texting on a cell phone. It is for this very reason that parents should make sure to be true role models and never handle a cell phone while operating a car. Making it your business to set down firm guidelines will help your young driver avoid the crash course that unfortunately oftentimes leads to tragic irrevocable aftermaths.

1. Tell your youngster to set his or her phone on silent when driving. If the phone does not ring, hum, or vibrate, your teen will not be pulled to answer it when the sole attention should be directed to the road.

2. Instruct your youngster to let his friends and acquaintances in on his driving schedule. Everyone should be aware that there is to be no phone interruptions while he is in the car.

3. If the situation indeed calls for speaking on the cell phone, boundaries need to be enforced. Cell phone usage should be reserved only when your teen driver pulls off to a safe spot on the side of the road and stops.

Besides all that the driving books teach, effective home schooling on proper driving procedures will help your teen advance skills to the point where driver, other drivers, and passengers, as well as pedestrians are safe on the roads – and you are at peace with him or her behind the wheel.

Reduce Bike Insurance Premium

Choose Your Bike Well

Yes, more exotic bikes or the ones with bigger engines definitely will cost more. Also, the unusual or modified bikes are considered to be more expensive when it comes to the repairs and replacement of their spare parts. So, it would be wiser to go for an entry-level motorcycle with a smaller engine. This would attract lower premiums accordingly.

Maintain A Clean Driving Record as A Rider

The insurance company may look at your record for any tickets or accidents. So, if you have more experience as a rider, the less risky you will seem in the eyes of the insurer. This will help you in fetching the best possible premium. Driving safely will help keep your claims low. Which correspondingly would add the benefit of No-claim Bonus to your premium.

Besides a clean driving record, the insurance company also looks at your riding time and experience. That is, how long have you been riding motorcycles and what experience do you have with a specific motorcycle to be insured. The more experienced you are as a driver, lower would be the risk and the cost of premium accordingly.

Avoid Making Small Claims

If you haven’t made any claim in a defined period of time, you are awarded a No Claim Bonus and discounts by the insurer. So, if you make a claim for small damages, you are bound to lose out on the no-claim discount for that particular year.

So, the next time you notice a dent here or a scratch there or a broken tail light, skip the trip to the insurer. You could just take care of these minor damages from your own pocket at a local mechanic shop instead.

Some Consequences if Not Having Auto Insurance

License suspension

When you meet an accident with more than limited damages your license will get suspended for 30 days to six months based on damages you incur.

Lawsuit

When a person is injured in the accident that you are responsible for, the other party will sue you for the damages. In such a case, you have to pay for the injuries or damages that happen to the people as well.

The damages may include property damages, medical bills, pain and sufferings, loss of wages, loss of enjoyment in life, etc.

Sometimes even small damages also cost you more ranging from ten to thousands of dollars. If you lose one of the lawsuits, the court will issue a judgment that may be executed against your bank account, your house, your wages, and sometimes even your personal property in the future.

Purchase auto insurance

Purchasing auto insurance helps in situations just stated. You will also get the benefits/protections like indemnification and defense. These two protections are very essential when you are enough unlucky to be faulted with in the event of an accident.

Indemnification

The insurer will pay for the damages incur in an accident, and you are responsible for the policy limits, if the damages exceed the policy limits, you have to pay from your own pocket.

Defense

The defense lawyer will convince the court of law in your favor when you hire them and they will charge the amount on the basis of hours. The hourly rate is normally $150 to $200 per hour for defense attorney.

Car Insurance Jargon

Deductible- The deductible is the amount you pay out of your own pocket before insurance coverage kicks in. For example, before your insurance covers an accident you caused, you have to pay $500 up front.

Policy limit- This is the maximum amount that your insurance provider will pay. You will be financially responsible for any bodily injury or property damage above this limit, so lower or raise the limit to suit your needs.

Liability- Liability insurance is required in every state for drivers. The liability limit differs by state. Liability is insurance that pays for damage done when you are at fault in an accident.

Full coverage- Full coverage is a name for a combination of insurance policies. A “full coverage” plan will consist of liability insurance, comprehensive car insurance, and collision coverage.

Comprehensive-Comprehensive protects you from the financial losses of incidents that wouldn’t typically be your fault. Things like auto break-ins, bad weather, animal-involved accidents etc.

Collision Coverage-Collision insurance is a separate product that reimburses you for your losses even when you are at fault. Collision plans carry a separate deductible. Collision coverage cannot be purchased without comprehensive coverage, but comprehensive can be purchased without collision coverage.