A vast majority of motorists consider premium rates as the major factor when they seek for auto insurance, but the reality is that choosing the right insurance company goes beyond the dollar. You can get a cheap premium rate but the claim process becomes an ordeal for you. It is important that you understand the ways in which you can get a hassle-free insurer who will offer good claim process when you need it. As two professionals in the insurance market points outs, there are several things you need to consider when investing in car insurance policy so that you get a trustworthy company that is able to pay your claim on time and in totality.
Dennis Howard, a former insurance adjuster and the director of Insurance Consumer Advocate Network, and Doug Heller, a consumer advocacy with a California’s Foundation for Taxpayer & Consumer Rights both give a chronology of aspects that you must put into consideration before you choose your auto insurer.
Below are 5 steps you can take when choosing the right insurance company as hinted by both Howard and Heller;
1. Check the department of insurance website in your state
Although it is most likely that you are not familiar with this aspect, every state has a department of insurance. Many departments give a consumer complaint ratio for all insurance companies including auto coverage firms like Geico, Allstate, and StateFarm and others. You should avoid companies with higher consumer complaint ratios. The ratios are given per the number of complaints received in 1000 claims that have been filed.
2. Examine the J.D. Power Ratings
J.D. Power and Associates is an instrumental resource that provides forecasts, performance improvements and customer satisfaction insights to consumers. You can get information about the best rated car insurance companies in terms of claim process experience satisfaction as well as the pricing and customer relationships. A few auto insurers which have remained on top of the list are Erie and Amica.
3. Seek the help of insurer body shops
Did you know that body repair shops deal with insurance companies more often because they repair bodies of vehicles that have been damaged? It is likely that they know something if not everything about these insurance companies. Therefore, they may be able to provide useful information. The body shop managers will give you information about bad experience they have gone through when dealing with the insurance companies. These managers also know which insurance companies have the smoothest claim procedure.
4. Examine the financial strength of the insurance firm
It is not a bad idea to check how the companies have performed financially. Financial performance can give a hint about the company’s ability to pay a claim. Insurance companies are likely to exploit the policyholder in order to meet financial challenges they are experiencing. This means that a financially healthy company is likely to execute good claim. You can check for financial rating of insurance companies from Standard & Poor's ratings and A.M. Best.
5. Consult an agent
Although agents will charge for their services, they are able to provide you with a choice of auto insurance companies that meets your insurance needs. They will not let you down because they want you to be a loyal customer. The agent will also guide you on how to get an appropriate policy for your car and where you can get discounts.
Monday, November 18, 2013
Car Insurance Trends...the Most Expensive and Costliest Cars to Insure in 2013
Car insurance is not the same for different models of vehicles and if you thought your insurance coverage is high, you may need to read this article on car insurance trends. The most costliest and expensive cars to insure may not necessarily be the most costly cars in the market. The type of vehicle being insured can affect insurance coverage premiums. The difference between the cheapest models of cars to insure and the costliest models to cover may amount to thousands of dollars in every year.
Based on standard mainstream cars, insurance costs are subject to the chances of the cars getting involved in accidents, the cost of repairing those cars, buying new vehicles as well as susceptibility to theft.
There are models which are more susceptible to car theft and it is important you understand these aspects. The pricier cars attract high premium rates and this is because the replacement of the vehicle or repairs of damages are certain costly. The cost of spare parts for the expensive models of cars is high and insurance companies put this factor into consideration when calculating the amount of premium to be allocated for these cars.
If the expensive models are damaged beyond repairs, replacing them may be very costly. 21st Century Insurance’s director of communications, Terrence Cahill explains that the expensive cars cost motorists a lot of money in repairs and this is because buying spare parts for these vehicles is pricey. The parts of the cars are made of expensive materials like aluminium and carbon fiber making them costly to repair.
Insurance companies also compile historical data of different car models. Those car models that historically record a big number of accidents are likely to attract high premium rates on insurance. From the manufacturers’ points of view, if certain models of cars have a history of causing accidents on the road, insurance companies will tend to allocate high premium. The design features of cars which make them vulnerable to getting involved in accidents will greatly contribute to the premium rates allocated to those models of cars.
In addition, the extent of damage or personal injuries which are likely to be caused by certain model of cars when they get involved in an accident is also another factor considered by insurance companies when allocating insurance premiums. On the list of the most expensive cars to insure, the highly priced luxurious and sporty models have topped the listing.
In 2012, The V10 powered Audi R8 remained at the top of the list for the costliest cars to insurance. The car fetches approximately $127,700 in the market and this is one aspect that made it to be on the top of the list. A survey that was conducted by Insure.com revealed that an owner of Audi R8 would end up paying more than $2,500 in a year above the owner of the cheapest car to insure in the market as described in the insure.com report. The cheapest car was named as the Toyota Sienna LE minivan, which was trading at $26,145 market price.
This is a big difference for insurance premium and could mean that if you are driving those costly cars, you also have to be prepared to meet the hefty insurance cost. Other models of cars that are on top of the list are the Mercedes Benz CL600 V12 and Jaguar XKR supercharged convertible.
In a difference report released by 4insure.com, it depicted that Mitsubishi Lancer Evolution was the most expensive car to insure however, the big question is that Mitsubishi Lancer does not feature anywhere in the most priciest cars. Certainly, the price of the car was not the factor in this case.
According to James Shaffer, the CEO 4insure.com, he said that the car has qualities that make it vulnerable to causing accidents. The fast acceleration and high speed features are some of the contributing factors to the high insurance premium. Many drivers who drive the car for the first time, and are not used to these features cause accidents.
Based on standard mainstream cars, insurance costs are subject to the chances of the cars getting involved in accidents, the cost of repairing those cars, buying new vehicles as well as susceptibility to theft.
There are models which are more susceptible to car theft and it is important you understand these aspects. The pricier cars attract high premium rates and this is because the replacement of the vehicle or repairs of damages are certain costly. The cost of spare parts for the expensive models of cars is high and insurance companies put this factor into consideration when calculating the amount of premium to be allocated for these cars.
If the expensive models are damaged beyond repairs, replacing them may be very costly. 21st Century Insurance’s director of communications, Terrence Cahill explains that the expensive cars cost motorists a lot of money in repairs and this is because buying spare parts for these vehicles is pricey. The parts of the cars are made of expensive materials like aluminium and carbon fiber making them costly to repair.
Insurance companies also compile historical data of different car models. Those car models that historically record a big number of accidents are likely to attract high premium rates on insurance. From the manufacturers’ points of view, if certain models of cars have a history of causing accidents on the road, insurance companies will tend to allocate high premium. The design features of cars which make them vulnerable to getting involved in accidents will greatly contribute to the premium rates allocated to those models of cars.
In addition, the extent of damage or personal injuries which are likely to be caused by certain model of cars when they get involved in an accident is also another factor considered by insurance companies when allocating insurance premiums. On the list of the most expensive cars to insure, the highly priced luxurious and sporty models have topped the listing.
In 2012, The V10 powered Audi R8 remained at the top of the list for the costliest cars to insurance. The car fetches approximately $127,700 in the market and this is one aspect that made it to be on the top of the list. A survey that was conducted by Insure.com revealed that an owner of Audi R8 would end up paying more than $2,500 in a year above the owner of the cheapest car to insure in the market as described in the insure.com report. The cheapest car was named as the Toyota Sienna LE minivan, which was trading at $26,145 market price.
This is a big difference for insurance premium and could mean that if you are driving those costly cars, you also have to be prepared to meet the hefty insurance cost. Other models of cars that are on top of the list are the Mercedes Benz CL600 V12 and Jaguar XKR supercharged convertible.
In a difference report released by 4insure.com, it depicted that Mitsubishi Lancer Evolution was the most expensive car to insure however, the big question is that Mitsubishi Lancer does not feature anywhere in the most priciest cars. Certainly, the price of the car was not the factor in this case.
According to James Shaffer, the CEO 4insure.com, he said that the car has qualities that make it vulnerable to causing accidents. The fast acceleration and high speed features are some of the contributing factors to the high insurance premium. Many drivers who drive the car for the first time, and are not used to these features cause accidents.
Your Car Insurance Coverage could be Less than you Might Think... Find Out Why!
When you insure your vehicle, you expect that you will be able to get reimbursements for damages or injuries incurred after an accident. However, the amount you get from the insurance company may be less than what you think. It is essential that when you buy a policy, you understand the terms and conditions clearly and other aspects that can affect the amount you are reimbursed. It is good to know exactly what is covered in your insurance policy than wait to discover that the coverage is less than you expected when an accident occurs. Some of the aspects that could affect your insurance cover are step down provisions and underinsured coverage.
Step down provisions
The step down provisions are likely to lower the amount of insurance coverage you have. If you allow another driver to drive your car and is involved in an accident, this may lead to step use of step down provisions when compensating for the damages caused. Many companies lower the compensable amount to minimum liability insurance requirement by the state, which may be less than your coverage.
For example, liability coverage of 50/100/25 meaning $50,000 for bodily injury for one person, $100,000 for injuries of all passengers and $25,000 for property damages may be reduced to minimum state insurance requirements, which are lower than what you have already paid.
In Ohio, the liability insurance coverage is set at $12,500 for bodily injury of one person, $25,000 for injury of all passengers and $7,500 for damages on property after an accident. This means that in a step down provision, the insurance company may reduce your coverage to these lower state limits meaning that you get compensated lower amount than what you are actually entitled. It is therefore important to call your insurance company and inform them if you are going to allow your relative to use your car.
Complexities of underinsured coverage
Another insurance coverage aspect that could affect your actual reimbursement after an accident is underinsured motorist coverage. Underinsured coverage pays for injuries caused when the motorist at-fault does not have sufficient liability cover. There are two coverages that cover against insufficient insurance or lack of insurance coverage by the other motorist and they are underinsured and uninsured coverage.
Uninsured coverage is applicable if the motorist at-fault does not have any coverage at all. The underinsured is applicable where the motorist has insufficient coverage. Whereas these two coverages work of similar concepts, the application of underinsured coverage may be quite complex than you may imagine. What makes the reimbursement of underinsured coverage complex is that the amount paid by the at-fault motorist is deducted from what you are entitled to claim against your own underinsured coverage.
For example, if you are injured in an accident caused by another motorist and the medical bill amounts to $30,000 and the motorist has $15,000 in bodily injury insurance and you have $15,000 in underinsured coverage, the payment from the underinsured driver is deducted based on what you are entitled to claim on top of your $15,000 of underinsured coverage. This is a complicated aspect because you are likely to get nothing if your underinsured coverage is less than that of the motorist at-fault in causing an accident.
In the above case, it means that your insurance company would not settle anything and you have to bear the extra $15,000 that is short of the total medical expenses because this is what can be paid from the insurance of the underinsured motorist. In order to for the insurance coverage to help you, you need to have your own underinsured coverage, which is higher than that of the motorist who caused the accident.
It is important you discuss these aspects with your insurance company and get information on how underinsured coverage is settled whenever an accident occurred. Otherwise you may be surprised to learn that you are not paid for injuries you have suffered.
Step down provisions
The step down provisions are likely to lower the amount of insurance coverage you have. If you allow another driver to drive your car and is involved in an accident, this may lead to step use of step down provisions when compensating for the damages caused. Many companies lower the compensable amount to minimum liability insurance requirement by the state, which may be less than your coverage.
For example, liability coverage of 50/100/25 meaning $50,000 for bodily injury for one person, $100,000 for injuries of all passengers and $25,000 for property damages may be reduced to minimum state insurance requirements, which are lower than what you have already paid.
In Ohio, the liability insurance coverage is set at $12,500 for bodily injury of one person, $25,000 for injury of all passengers and $7,500 for damages on property after an accident. This means that in a step down provision, the insurance company may reduce your coverage to these lower state limits meaning that you get compensated lower amount than what you are actually entitled. It is therefore important to call your insurance company and inform them if you are going to allow your relative to use your car.
Complexities of underinsured coverage
Another insurance coverage aspect that could affect your actual reimbursement after an accident is underinsured motorist coverage. Underinsured coverage pays for injuries caused when the motorist at-fault does not have sufficient liability cover. There are two coverages that cover against insufficient insurance or lack of insurance coverage by the other motorist and they are underinsured and uninsured coverage.
Uninsured coverage is applicable if the motorist at-fault does not have any coverage at all. The underinsured is applicable where the motorist has insufficient coverage. Whereas these two coverages work of similar concepts, the application of underinsured coverage may be quite complex than you may imagine. What makes the reimbursement of underinsured coverage complex is that the amount paid by the at-fault motorist is deducted from what you are entitled to claim against your own underinsured coverage.
For example, if you are injured in an accident caused by another motorist and the medical bill amounts to $30,000 and the motorist has $15,000 in bodily injury insurance and you have $15,000 in underinsured coverage, the payment from the underinsured driver is deducted based on what you are entitled to claim on top of your $15,000 of underinsured coverage. This is a complicated aspect because you are likely to get nothing if your underinsured coverage is less than that of the motorist at-fault in causing an accident.
In the above case, it means that your insurance company would not settle anything and you have to bear the extra $15,000 that is short of the total medical expenses because this is what can be paid from the insurance of the underinsured motorist. In order to for the insurance coverage to help you, you need to have your own underinsured coverage, which is higher than that of the motorist who caused the accident.
It is important you discuss these aspects with your insurance company and get information on how underinsured coverage is settled whenever an accident occurred. Otherwise you may be surprised to learn that you are not paid for injuries you have suffered.
5 Practical Ways to Keep the Cost of Auto Insurance Coverage Low
Every motorist wants to keep car insurance affordable but this may not be easy especially if you do not know how to go about it. Car insurance is a necessity meaning that every motorist should have at least a liability insurance coverage, which covers damages and injuries on other motorists. Insurance payment may turn out to be a burden if you do not know how to keep them affordable. There are good ways you can keep your insurance cost minimal and they include switching your insurer and being loyal to an insurance company.
1. Switch your insurance carrier
You can change your auto insurance carrier if you have a good credit report. At times, you will find that some insurance companies offer different premium rates for same coverage like collision or comprehensive. It is a good idea to consider switching a carrier that offers cheaper rates. However, you need to ensure that your credit report is good before you make this decision.
Motorists with bad credit report may pay more on insurance premiums. You are likely to pay 20 to 50 percent more if you switch your carrier and you have a bad credit report. It is better to stick with your current insurer if the credit report is tainted.
2. Evaluate the reputation of an insurer
In addition, before you change the insurance carrier, you should research to ensure that the company is reputable. Insurance companies lower premium rates to entice you to buy policies with them not realizing that this may be a trap. It is usually not good to pay cheaper insurance premiums only to be subjected to a daunting experience when you get involved in an accident and place a claim.
Before you even think of switching the carrier, check on the complaints put forward by consumers about a particular insurance company. There are state logs complaints that can provide you with information about the different insurance company complaints. What this means is that a high number of complaints should raise red flags on the competence of the company to provide hassle-free claim processes.
3. Be loyal to your insurance company
Another way you may lower your insurance cost is by being loyal to your insurer. Some companies reward their loyal customers with discounts and if you switch carriers, you may deprive yourself these benefits. Besides the discounts, there may be other benefits offered to motorists who have demonstrated good driving ethics.
If you have maintained a clean driving record, you may most likely get discounts on your premiums. Similarly if you have installed your car with security systems and safety equips like airbags, you will most likely receive discounts. An old driver who completes safe-driving course may also benefit from discounted premium rates.
4. Consider raising your deductable
Motorists should also consider raising their deductable amount to reduce the costs of paying premiums. The higher the deductable amount you quote the less premium rates you are likely to pay. However, as a precaution, you should not quote very high deductable that you cannot afford to pay when your vehicle is damaged and needs repair. You will need to pay the deductable amount towards the cost of repairing the car.
5. Drop some coverage
You may consider dropping some of the coverage if your car has covered high mileage. Coverages like comprehensive and collision may not be appropriate for old cars that have covered many mileages. You are likely to be paying more in insurance premiums if your car has covered many mileages. You can do away with collision and comprehensive coverage and remain with liability coverage. This way, you will cut down your insurance cost.
1. Switch your insurance carrier
You can change your auto insurance carrier if you have a good credit report. At times, you will find that some insurance companies offer different premium rates for same coverage like collision or comprehensive. It is a good idea to consider switching a carrier that offers cheaper rates. However, you need to ensure that your credit report is good before you make this decision.
Motorists with bad credit report may pay more on insurance premiums. You are likely to pay 20 to 50 percent more if you switch your carrier and you have a bad credit report. It is better to stick with your current insurer if the credit report is tainted.
2. Evaluate the reputation of an insurer
In addition, before you change the insurance carrier, you should research to ensure that the company is reputable. Insurance companies lower premium rates to entice you to buy policies with them not realizing that this may be a trap. It is usually not good to pay cheaper insurance premiums only to be subjected to a daunting experience when you get involved in an accident and place a claim.
Before you even think of switching the carrier, check on the complaints put forward by consumers about a particular insurance company. There are state logs complaints that can provide you with information about the different insurance company complaints. What this means is that a high number of complaints should raise red flags on the competence of the company to provide hassle-free claim processes.
3. Be loyal to your insurance company
Another way you may lower your insurance cost is by being loyal to your insurer. Some companies reward their loyal customers with discounts and if you switch carriers, you may deprive yourself these benefits. Besides the discounts, there may be other benefits offered to motorists who have demonstrated good driving ethics.
If you have maintained a clean driving record, you may most likely get discounts on your premiums. Similarly if you have installed your car with security systems and safety equips like airbags, you will most likely receive discounts. An old driver who completes safe-driving course may also benefit from discounted premium rates.
4. Consider raising your deductable
Motorists should also consider raising their deductable amount to reduce the costs of paying premiums. The higher the deductable amount you quote the less premium rates you are likely to pay. However, as a precaution, you should not quote very high deductable that you cannot afford to pay when your vehicle is damaged and needs repair. You will need to pay the deductable amount towards the cost of repairing the car.
5. Drop some coverage
You may consider dropping some of the coverage if your car has covered high mileage. Coverages like comprehensive and collision may not be appropriate for old cars that have covered many mileages. You are likely to be paying more in insurance premiums if your car has covered many mileages. You can do away with collision and comprehensive coverage and remain with liability coverage. This way, you will cut down your insurance cost.
What is a Totaled Car... and What Should You Do If Your Car Is Totaled?
A car is considered totaled if the cost of repairing it after it has been involved in an accident is more than the current value of the vehicle. If you are driving an old car that has covered many mileages, it may be declared as totaled if you claim for damages after an accident. Cars that have been used for more than five years may lead to a totaled situation. It is important to discuss with your insurance company about your coverage options.
One thing you may need to consider is doing away with coverages like comprehensive and collision insurance and this means that you will not claim for damages on your car if you were at fault in causing the accident. However, if you are caught up in a totaled car situation, there are a number of things you need to do. When a vehicle is involved in an accident and you have exchanged the information with traffic police department, the other persons involved in the accident, and your insurance company, the insurer sends adjusters to inspect the vehicle.
The adjusters will consider aspects like the cost of repair, the mileage covered by the car, and the person at fault in causing the accident. If the car is regarded as totaled, the adjuster calculates the present market value of the vehicle based on the mileages it has covered and any modifications that you may have done and reported to the insurer. The insurance company writes you a check less the amount you have placed as deductable. Usually a totaled car is uninsurable and you will not be compensated as usual.
This means that the cost of damages which exceeds the values of the car will not be paid. What you get is an amount equivalent to the current value of the car minus the deductible you quoted for the vehicle coverage. The situation is even worse if the vehicle was acquired through a loan. If you are servicing a loan, and the claim coverage is less than the loan balance, you are put into a situation known as “upside down”. This means that you owe more on the damaged vehicle than it is worth.
You will have to meet the difference. In the event that you are leasing your vehicle, it is likely that you have a lease contrast with gap insurance. The gap insurance is meant to cover the difference between the present value of the car and what is actually owed. It is important that if you are leasing a vehicle and you do not have gap insurance, you get one as soon as possible as it may protect you when you are involved in an accident and your car is considered total loss.
The other question you may ask is if you will keep your totaled car. When the insurer gives you a check for a totaled car, it gains ownership of the vehicle. In most cases, the car is sold at auction and the money goes to the insurance company. However, if you act fast, you may keep the totaled vehicle. What you need to do is inform the auto insurance company in advance before it begins the auction process.
Waiting for long may mean that the insurance will proceed with auction plans and at this point, it becomes difficult to get it back. When you opt to keep the vehicle, the insurer will still reimburse the actual value of the car but less the deductible amount. In case the car was sold through an auction, the insurer may also deduct the amount it received. At times, this process may be difficult needing the involvement of a legal expert to help you out acquire your totaled car.
One thing you may need to consider is doing away with coverages like comprehensive and collision insurance and this means that you will not claim for damages on your car if you were at fault in causing the accident. However, if you are caught up in a totaled car situation, there are a number of things you need to do. When a vehicle is involved in an accident and you have exchanged the information with traffic police department, the other persons involved in the accident, and your insurance company, the insurer sends adjusters to inspect the vehicle.
The adjusters will consider aspects like the cost of repair, the mileage covered by the car, and the person at fault in causing the accident. If the car is regarded as totaled, the adjuster calculates the present market value of the vehicle based on the mileages it has covered and any modifications that you may have done and reported to the insurer. The insurance company writes you a check less the amount you have placed as deductable. Usually a totaled car is uninsurable and you will not be compensated as usual.
This means that the cost of damages which exceeds the values of the car will not be paid. What you get is an amount equivalent to the current value of the car minus the deductible you quoted for the vehicle coverage. The situation is even worse if the vehicle was acquired through a loan. If you are servicing a loan, and the claim coverage is less than the loan balance, you are put into a situation known as “upside down”. This means that you owe more on the damaged vehicle than it is worth.
You will have to meet the difference. In the event that you are leasing your vehicle, it is likely that you have a lease contrast with gap insurance. The gap insurance is meant to cover the difference between the present value of the car and what is actually owed. It is important that if you are leasing a vehicle and you do not have gap insurance, you get one as soon as possible as it may protect you when you are involved in an accident and your car is considered total loss.
The other question you may ask is if you will keep your totaled car. When the insurer gives you a check for a totaled car, it gains ownership of the vehicle. In most cases, the car is sold at auction and the money goes to the insurance company. However, if you act fast, you may keep the totaled vehicle. What you need to do is inform the auto insurance company in advance before it begins the auction process.
Waiting for long may mean that the insurance will proceed with auction plans and at this point, it becomes difficult to get it back. When you opt to keep the vehicle, the insurer will still reimburse the actual value of the car but less the deductible amount. In case the car was sold through an auction, the insurer may also deduct the amount it received. At times, this process may be difficult needing the involvement of a legal expert to help you out acquire your totaled car.
What is the Right Insurance Coverage for High Mileage Cars?
The mileage your car has covered can affect your auto insurance choices. High mileage cars may not require coverages like comprehensive and collision. As you continue using your car, it depreciated in value. The biggest depreciation in the value of a vehicle is witnessed within the first two years after purchase. When the ownership of a car is transferred to the buyer, the vehicle immediately depreciates.
A large amount of automobile value is immediately lost when you drive it from the dealer. If you were to turn back and sell the same vehicle to the dealer, it would fetch lower price than you bought it.
Auto insurance needs to be reviewed when your car has covered more mileages. If you have been using your car for the past four to five years, it is time you considered the kind of insurance coverage you should hold. The more years you have used your car, the more the mileage you have covered.
An old car is likely to experience mechanical breakdowns than a new car. A car with more than five years of use may be costing you more premium payments than the value of the vehicle. The most appropriate coverage for high mileage cars is liability insurance. This coverage protects you against liability you bear when you cause damage or personal injuries to other motorists.
However, this coverage does not coverage you and your vehicle against injuries and damages respectively caused by you. It is not a bad idea to drop some of the coverage you have bought for your high mileage car. One of the coverage you can do away with is collision coverage. This kind of car insurance pays for damages on your car and not the other motorist’s vehicle.
Another coverage that you may need to drop when using a high mileage vehicle is comprehensive coverage. This insurance policy covers damages that are unrelated to collision including storms, theft, fire and earthquakes. If you have collision and comprehensive coverages, and a claim is made against those coverages, they can easily equal the value of your car.
In this situation, your car is considered as totaled for auto insurance, which means that it is not insurable anymore. When an accident occurs, an insurance company sends adjusters to evaluate the damages and the value of the car. A car is considered as totaled if the cost of repairing is more than its current value.
If the value of your car has diminished, holding these kinds of coverage may only be a burden to you. Because an old car will experience mechanical breakdowns, you may consider other coverages like towing, mechanical breakdown and rental car reimbursements.
In summary, when your vehicle depreciates to a large extend after many years of use, you should review the insurance coverage you have purchased for the vehicle. You may be paying more premiums than what the value of the car is and this is a burden to your finances.
Opting for a liability insurance which is a mandatory coverage and doing away with other coverage like comprehensive and collision may help you save money in your insurance payment. You also need to ensure that you drive carefully and be prepared to meet the cost of your car damages and personal injury costs when you are at fault in causing an accident. Otherwise, the liability for damages of other motorist’ vehicles is covered by the liability coverage.
A large amount of automobile value is immediately lost when you drive it from the dealer. If you were to turn back and sell the same vehicle to the dealer, it would fetch lower price than you bought it.
Auto insurance needs to be reviewed when your car has covered more mileages. If you have been using your car for the past four to five years, it is time you considered the kind of insurance coverage you should hold. The more years you have used your car, the more the mileage you have covered.
An old car is likely to experience mechanical breakdowns than a new car. A car with more than five years of use may be costing you more premium payments than the value of the vehicle. The most appropriate coverage for high mileage cars is liability insurance. This coverage protects you against liability you bear when you cause damage or personal injuries to other motorists.
However, this coverage does not coverage you and your vehicle against injuries and damages respectively caused by you. It is not a bad idea to drop some of the coverage you have bought for your high mileage car. One of the coverage you can do away with is collision coverage. This kind of car insurance pays for damages on your car and not the other motorist’s vehicle.
Another coverage that you may need to drop when using a high mileage vehicle is comprehensive coverage. This insurance policy covers damages that are unrelated to collision including storms, theft, fire and earthquakes. If you have collision and comprehensive coverages, and a claim is made against those coverages, they can easily equal the value of your car.
In this situation, your car is considered as totaled for auto insurance, which means that it is not insurable anymore. When an accident occurs, an insurance company sends adjusters to evaluate the damages and the value of the car. A car is considered as totaled if the cost of repairing is more than its current value.
If the value of your car has diminished, holding these kinds of coverage may only be a burden to you. Because an old car will experience mechanical breakdowns, you may consider other coverages like towing, mechanical breakdown and rental car reimbursements.
In summary, when your vehicle depreciates to a large extend after many years of use, you should review the insurance coverage you have purchased for the vehicle. You may be paying more premiums than what the value of the car is and this is a burden to your finances.
Opting for a liability insurance which is a mandatory coverage and doing away with other coverage like comprehensive and collision may help you save money in your insurance payment. You also need to ensure that you drive carefully and be prepared to meet the cost of your car damages and personal injury costs when you are at fault in causing an accident. Otherwise, the liability for damages of other motorist’ vehicles is covered by the liability coverage.
Sunday, November 17, 2013
Driverless Cars Set to Hit the Automobile Market By 2015
It is a curious anticipation for driverless cars to hit the market by 2015 but technology always amazes people. Rumour has it that driverless vehicles could actually be on the market by 2015. Different companies are at advanced levels of developing and testing driverless automobiles including the giants in the motor vehicle industry such as Ford, BMW, Audi, GM, Volkswagen, Google, and Volvo.
Google has taken a center-stage role in running a project dubbed Google driverless car which brings together technology advances for self driving cars. The project is led by Google engineer Sebastian Thrun among other big brains in the science and tech world. Google carried out successive tests that involved a fleet of an Audit TT and six Toyota Prii. The cars navigated over 140,000 miles across the streets and highways of California.
Apparently only one accident was witnessed during the test but this occurred in a rare testing occasion when a human was actually driving. Google also took another test featuring 1000 miles and during this testing, no accident was reported. The road to unveiling a truly driverless car seems to have progressed to greater heights.
The designers of these cars argue that they will eliminate accidents on roads, which have taken away lives of many motorists, pedestrians, and passengers. Many of the notorious accidents witnessed today arise from driver errors. The precision of driverless cars is expected to improve the flow of traffic, which is another daunting thing experienced in big cities and towns.
This means that the traffic jams may be reduced significantly. It is also thought that the cars would allow commuters to embark on other things when travelling such as sleep, read, work or make discussions while aboard the vehicle. As the innovative designing and testing automated cars in the market continues, Audi has voiced its ability to have a fully automated car on the market by 2015 however; this is subject to the wishes of the drivers and whether they are really prepared for such a big thing in just a few years to come.
In Las Vegas this year (2013), Audi made remarkable comments that it would have a technology that could be applied to remotely park cars in parking areas using smartphones or tablets and this is by 2015. These systems are a series of other technological developments that will have been unveiled before the grand launch of the driverless cars.
However, prior to the autonomous cars, the market is expected to get releases of semi-autonomous vehicles. This may happen in about few months and the use of the remote parking apps could be a step above the semi-autonomous cars. It is expected that towards the end of 2013, Mercedes-Benz will sell vehicles, which are capable of steering themselves in a lane.
The auto control systems are aimed at being in-charge of the car to avoid crashes. In the driverless cars, Google seems to be posing stiff competition as it has already begun testing its self-driven cars that use Google’s mapping system. However, the big challenge is whether car buyers will be willing to pay for such technology. And, as Dr Wolfgang Durheimer, a member of Audi’s board of management that handles matters pertaining to technical development says, it is a question of how much consumers will be willing to pay for the advanced self driven cars.
| Google's driverless cars an ongoing project |
Google has taken a center-stage role in running a project dubbed Google driverless car which brings together technology advances for self driving cars. The project is led by Google engineer Sebastian Thrun among other big brains in the science and tech world. Google carried out successive tests that involved a fleet of an Audit TT and six Toyota Prii. The cars navigated over 140,000 miles across the streets and highways of California.
Apparently only one accident was witnessed during the test but this occurred in a rare testing occasion when a human was actually driving. Google also took another test featuring 1000 miles and during this testing, no accident was reported. The road to unveiling a truly driverless car seems to have progressed to greater heights.
The designers of these cars argue that they will eliminate accidents on roads, which have taken away lives of many motorists, pedestrians, and passengers. Many of the notorious accidents witnessed today arise from driver errors. The precision of driverless cars is expected to improve the flow of traffic, which is another daunting thing experienced in big cities and towns.
| Driverless cars cockpit |
This means that the traffic jams may be reduced significantly. It is also thought that the cars would allow commuters to embark on other things when travelling such as sleep, read, work or make discussions while aboard the vehicle. As the innovative designing and testing automated cars in the market continues, Audi has voiced its ability to have a fully automated car on the market by 2015 however; this is subject to the wishes of the drivers and whether they are really prepared for such a big thing in just a few years to come.
In Las Vegas this year (2013), Audi made remarkable comments that it would have a technology that could be applied to remotely park cars in parking areas using smartphones or tablets and this is by 2015. These systems are a series of other technological developments that will have been unveiled before the grand launch of the driverless cars.
However, prior to the autonomous cars, the market is expected to get releases of semi-autonomous vehicles. This may happen in about few months and the use of the remote parking apps could be a step above the semi-autonomous cars. It is expected that towards the end of 2013, Mercedes-Benz will sell vehicles, which are capable of steering themselves in a lane.
The auto control systems are aimed at being in-charge of the car to avoid crashes. In the driverless cars, Google seems to be posing stiff competition as it has already begun testing its self-driven cars that use Google’s mapping system. However, the big challenge is whether car buyers will be willing to pay for such technology. And, as Dr Wolfgang Durheimer, a member of Audi’s board of management that handles matters pertaining to technical development says, it is a question of how much consumers will be willing to pay for the advanced self driven cars.
Subscribe to:
Posts (Atom)