Top 10 Misunderstood Things About Car Insurance

After spending many years in the insurance industry we have come up with a top 10 list of most misunderstood things about car insurance.  These car insurance myths are some of the most common questions that most people have about direct car insurance either buying or reviewing their  auto insurance coverage.  Its better to find out now before you have a claim and  it's too late.

• I just got my 1st speeding ticket my insurance rates are going to go way up.

Reality:  If this is your first ticket your rates probably won't even change.  Most direct car insurance providers will give you a pass if you don't have any other tickets or claims in the past 3 to 5 years depending on the company.

• That new Plasma TV I bought last year won't affect my Car Insurance

Reality:  If you didn't pay the credit card  you charged it on then it just might.  Almost all insurance companies now use some form of credit scoring when determining not only if you will qualify for insurance, but also what you will pay.  There can easily be 50% difference in rates for a person with excellent credit to someone with poor credit.

• I just slammed my car door into my lawnmower parked in my garage, my homeowners policy will cover it

Reality:  Your homeowner's coverage has nothing to do with covering your car.  The only way your car will be covered is if you have Comprehensive (Comp) coverage for your car.  And then only after you pay you deductible.

• I just cracked up my friends car and I tell him don't worry my insurance will cover it

Reality: It will but only after your friends policy pays first.  So let's say your friend has a $500 collision deductible and you have a $250 deductible.  You would have to give your friend the $500 for his deductible as his insurance company is Primary.  Meaning your insurance will only pay after his policy limits are exhausted.  So just remember in this scenario your deductible does not matter its going to be based on your friends.

•  If you're riding your bicycle and get hit by a car your car insurance won't get involved

Reality:  If you get hurt or killed while riding your bike or even walking down the street you maybe surprised to learn that you may be covered by your direct car insurance policy.  If the person driving the car didn't have any insurance or not enough insurance to cover your injuries, your Uninsured or Underinsured coverage would pay for your claim. 

•  Someone just broke into my car and stole all of my personal belongings out of it i.e. Cd's, Cell phone, Christmas Presents, my car insurance will pay for it.

Reality:  Your car insurance does not cover your personal belongings left inside the car.  You are going to have to file a claim with your Homeowners or Renters insurance policy to be compensated for these items.  The general rule of thumb is your car insurance will only pay for items that are attached to the vehicle.

•  I am going to be charged more for my  Car Insurance because my car is red, blue, black, pink...

Reality:  The color of your car has absolutely nothing to do with your rates.  If you like red buy a red car, if you like black buy a black car.  Don't ever let this silly nonsense stop you from buying a car.  

•  I didn't have a car for the last 2 years, this won't affect my rates.

Reality:  Not having continuous car insurance is frowned upon by most direct car insurance companies now a day's.  Some companies won't penalize you for not having prior insurance.  If you don't have prior insurance make sure you have a good excuse like you took the bus, or you were in the military, or some other legitimate reason.  Oh and by the way I couldn't afford my insurance is not on that list.

• Telling a little white lie on my insurance application won't affect my coverage if I ever have a claim

Reality:  This is one of the worst things a person can do.  If you lie on your insurance application there is a good chance you won't have any coverage when you need it the most.  You think they won't find out?  Remember these 2 things when insurance company is on the hook for a ton of money.  #1 They are going to start asking questions and the first thing they look at is your application.  Wouldn't you if you were them?  And reason #2, the insurance companies have more money than god and they have people working full time to find this stuff out. 

•  Buying a cheaper more reasonable car will be less to insure the a more expensive car. 

Reality: There are a lot of different factors insurance companies use to determine rates, however there are many times were the rate for the more expensive car is less than the cheaper car.  One of the biggest factors for the Comp & Collision coverage's are how much do replacement parts cost.  Sometimes on those cheaper cars or the more exotic cars the replacement parts can cost a lot to replace.

So just remember the next time your online looking for a cheaper insurance policy, to consider some of your options.  There are hundred's of direct auto insurance companies out there looking to get in your pocket, just make sure when the time comes you can get into theirs.

Bryan Waldo

Article Source: http://EzineArticles.com/4819595

Car Insurance Penalty

Car insurance agencies have been using penalties to keep customers from changing companies for a very long time, and a lot of people fall for it. People are generally not aware of the penalty charges and how much they will end up costing. Some consumers get insured without taking time to read the fine print, which is where they can find the information they need to know on termination of policies. Many people just renew an insurance policy to avoid running into charges they know nothing about.

Here are a few fundamental tips to help you make the best choices on insurance renewal or restoration:

Analyze The Cost Of The Penalty Against The Potential Savings

Make sure you always weigh your options. For instance, if you will save $300 to change to another insurer but that means you have to pay $200 in fines for canceling your current insurance then it's possibly a worthwhile deal. However, if you have to a pay $200 fine for a $100 savings, you might have to hold on until the agreed expiration date before you change over to another company. It all comes down to if you will save money on a new deal or not.

Stay With The Same Insurance Provider Longer To Lower Your Termination Penalties

If you terminate your policy after two weeks, you might have to pay a $400 penalty, but if you cancel after eleven months, you might end up paying $50 or less.

Always make sure to read all the documents you are given before signing and activating your vehicle insurance.

Use The Competition To Potentially Lower Your Rate

A great number of people use this strategy to their benefit. You can do this if you like your insurance provider but they are relatively costly, and they charge fines for cancellations.

Let them know you have gotten cheaper quotes from their competitor and ask if they can match the cheaper rate. There's a chance they might decrease your cost of insurance and give you a better deal to keep you as a customer. Then you have a better rate and can avoid any termination penalties.

Examine The Termination Rules On Any New Policy You Have In Mind

If you find less expensive insurance and need to opt out, make sure your new provider does not have huge termination penalties. You can call the customer representative and get all the relevant information you need to know about the fees and charges involved. In addition, thoroughly read the terms and conditions of your new contract, to avoid unforeseen fines.

Look For A Direct Insurer That Does Not Force Cancellation Charges

You can look for an insurer that doesn't charge for the cancellation of policy. In the past few years, many carriers have stopped car insurance penalty plans in favor of letting people cancel at any time.

There are now insurance policies with internet-based rates, no hidden fees, and no transaction costs if you want to cancel. This is one of the reasons you should take the time to check your current rate online.

Since you now understand how to stay away from additional cancellation charges, you ought to take a couple of minutes and attempt to get your rates reduced.

You have access to free quotes without commitment online and can realize hundreds in savings in just a matter of minutes. Get started now and lower your insurance rates online.

Mike Heuer is an experienced writer and insurance expert specializing in auto insurance, home insurance as well as other types of insurance. Mike also has written several articles about Loyal insurance Company and others.

Loyal Insurance will provide you with the necessary information you need to know up front about your auto insurance policy and give you unbiased free quotes. Check your current rates online with Loyal Insurance on the web or check online for cheap and trusted insurance quotes at Loyal Insurance Company. Loyal Insurance look for the least expensive plans within the coverage you choose. You can compare different prices and organizations in just five minutes.

  MIKE HEUER

Article Source: http://EzineArticles.com/9472750

Things To Remember While Donating Cars To Charity

Donating cars to charity is a nice and helping step for the needful people. You are contributing a little in serving the humanity. While you think of donating cars to charity, always go step by step and giving a proper focus to below mentioned follow ups:

1. Avoid middlemen.
Several intermediary organizations give their advertisements in order to attract more and more car donors towards themselves and afterward fool them. They claim too high to be believed. The real and actual thing about these intermediary organizations is that they keep about 50% to 905 of the car value and money with themselves and give a small percentage to the charity. If you want to avoid this loss then contact the charities directly and ask them for the car donations and inquire properly.

2. Find a worthy charity.
In case the charities you generally support do not accept car donations as such then you will have to do a little home work and will have to spare some time for a nice and reliable search. Search for a reputable charity and store their records online either through Better Business Bureau site or through Charity Navigator.

3. Check the math.
Many times you tend to take help of the intermediary firms to donate cars probably because you have shortage of time, and then make a mathematical calculation. At least ask the organization about how much they pay to the charity from the selling of the donated car. If the answer is about flat $100 on used and old car regardless of the price of the car or about $2,000 per month, then your donation is not eligible for the tax rebate and deduction.

4. Know the status of your recipient.
In order to get the qualification for the tax deduction, for that you will have to make sure that the charity or the organization that is getting your donation must be an IRS-approved 501(c)(3) organization.

5. Do the delivery yourself.
After identifying the charity, it is recommended to deliver the car to the charity at your own risk, as it will increase the benefits of your donation at a good deal.

By : Debian Miler
Article Source: http://EzineArticles.com/3204397

Donate Car - Why You Should Donate Your Car

John Phu said - If you are rich enough that you can buy a new car and still keep your old car, you obviously can do better with your old car. If you have bought yourself a new car, you obviously do not need the old one. If you plan to get rid of your old car, you can always donate it to the charity that accepts car donations.

Now, the question that arises here is that why would anyone want to donate their car instead of selling it. Obviously, it will bring cash, and a donated car will bring nothing. If you are able to ignore the financial aspects, there are a lot of reasons why you should donate your car.

 First of all, selling a car will save you from the hassle of selling it. Imagine the trouble that you will have to go through while selling a car. You will have to advertise it or use other means of selling a car.

Selling an automobile is obviously a pain, and if you can afford to let the financial aspect go, is it not better to donate your old automobile? A donated car can do well for someone at least.

 You will love to donate your vehicle if you are a charitable person. If you like to do charity every now and then, this can be your best time. A donated car can prove to be one of the most generous charities ever made by you. Once you have donated it, you do not have to worry about its future. Who accept it as a charity; they have a good idea of what to do with these cars. It is also a very good way of tax deduction.

 If you are selling your vehicle, you obviously have to go through a maintenance procedure. People who will be willing to buy your vehicle obviously would want to check the mechanical and all other aspects of the vehicle. They will drop every dollar with every fault that they find. If you plan otherwise, a donated car will not go through any of these things. Donate it as it is and you are done with all of your problems related to your old vehicle.

 If you are still asking yourself this question as to why on earth would you want to donate your vehicle, the answer and reason are simple once again. Donating your vehicle is a fast way to get rid of it. All you need to do is make a call to the charity and they will take care if the rest. This will save a lot of your time, and you will not have to show it to hundreds of buyers who are probably not even interested in buying.

 Last but not the least, you will obviously feel better about the fact that you have donated your car for a good cause. Receiving a donated car will definitely bring a sense of satisfaction. Also, if you do not have enough funds to get the car repaired, consider donating it. It will do well for both, you and the charity people.

 Article Source: http://EzineArticles.com/4691447