Very Cheap Auto Insurance -Tips That Guarantee Affordable Car Insurance Rates (Video)

Sunday, June 14, 2009

Buy Auto Insurance Online - Online Quotes For Car Insurance

By Matt Hellstrom

The web changed the way we shop for car insurance. We used to take a walk through the Yellow Pages. Sometimes an agent or broker would actually come to our home in hopes of lining us up for the full package of insurance products: life, automobile and home. But those days are long gone when it comes to vehicle insurance. Like electricity and water, vehicle insurance has become a regular commodity. Once the first broker put an Instant Quote feature for car insurance up on its website, the game was over. Now the majority of us get quotes on the internet, even if we don't actually buy auto insurance.

In truth, agents for car insurers used to view a person coming to them at renewal time to discuss changing insurers with suspicion. For many insurance firms, customers who switched were flagged and double checked as a matter of policy. The assumption was that if someone wanted to switch car insurers badly enough to actually start shopping for a different insurer, the odds were the shopper had committed some type of insurance infraction and they were looking to avoid the actuarial consequences.

Thanks to online instant quotes, it is no longer the case that the average shopper is subjected to arbitrary review. The mystery has gone out of the actuarial process and along with it, the barriers to get the best rates for your particular needs and circumstances.

There comes a point in the lifetime of a vehicle when it is not worth repairing after an accident. In jurisdictions where the state mandates no-fault insurance, once this point is reached, there is no real financial reason to maintain full coverage. Simple liability (assuming a good driving record) can be quite a cost saver.

No-fault insurance, in its broad sense, describes an insurance policy that says the insurance company agrees to pay the policy holder's losses regardless of who is at fault. Basically, a policyholder and any passengers in the policy holder's vehicle are reimbursed for losses in a traffic accident by the policyholder's insurer without reference to whose fault the accident was.

For good drivers, the no-fault insurance program is manifestly unfair. Nevertheless, variations on this theme prevail in 12 of the United States, Puerto Rico and four Canadian provinces. Do note that the phrase 'no-fault' is also used as a synonym for 'first-party coverage.' First Party coverage refers to any insurance contract in which the policyholder is indemnified against losses by their own insurance company, not the insurance company of the party who caused the loss (unless it was their own fault, of course).

Under these types of insurance laws, the additional cost of carrying collision insurance makes little sense unless new, or close to it. If you are financing the car, you may still be required to carry comprehensive coverage. The great thing if you buy auto insurance online is that you can quickly get the price for full versus liability-only coverage and can quickly know when you're better off dropping the collision and theft coverage.

About the Author:

No comments: