Cheap Car Insurance - How to Get It

With gas prices being the way they have people all over the country have started to get creative with their finances and the costs associated with auto travel.

Prices vary from company to company, so it pays to shop around. Get at least four to five price quotes. You will find that there are several websites out there that can save you the time from doing this the slow and hard way as they will often get you quotes from up to a dozen companies all at once. You can call companies directly or access information on the Internet. 

Your state insurance department may also provide comparisons of prices charged by major insurers. And no, companies like Progressive that claim they will compare other companies, but they are an insurance company, so they are not to be trusted. They only have one interest, and that is to promote their own business.Bigger is not always better. There are several low cost automobile insurance companies offering competitive rates in relation to the big names out there. This makes it possible to save a bundle on this expense. 

Many people seem to ignore this cost and tend to accept the burden of expensive insurance even when monthly payments almost match a car payment. In one case, I lowered my car insurance rates by about 50% when I found a good local company (I had switched from a really big name company).One of the best ways to get cheap car insurance is simply to use a service that forces insurance agents and brokers to compete against one another. At the end of this article is one example of such a site. As soon as you finish your online quote request, multiple agents will contact you. But it is important to NOT sign up with any one of them immediately-Instead, let them know that you are awaiting calls from other local insurance providers. After 5 or so of these people have contacted you, you should have a good idea of what sort of range you might expect to pay. 

Then, if you really want to get the cheapest car insurance possible, simply tell the agents that you are ready to buy within the next 24 hours with whichever company offers you the lowest insurance rates. This really puts the fire under them, and is sure to create the most optimal pricing for you. Of course, be sure to carry through on your promise.If it makes sense, you may want to consider getting a bundle package. Basically, see what it might cost to insure not only your car, but also your home, property, health and life insurance. 

This can save a person around 10% - 30% depending on the company you go with; and it does make paying your bills easier as well.Oh, and one more tip, remember that the more info you provide upfront, the more accurate your quotes will be, and the more likely the insurance companies will be responsive to your inquiry. This is especially true when filling out a quote from multiple companies.

Read More

Acquiring the Most Fair Car Insurance Quotes

Not that long ago, the capability to find cheap car insurance appeared to be only a matter of the past. A large number of folks are recognizing that this is a simple accomplishment in current times. One particular reason for this is simply because a majority of the adjusters generally in most every area are extremely competitive with each other. A low price on the particular coverage being offered regarding a vehicle is often exactly what this results in. The ease and the convenience that is found on the web is another large reason why people are capable to acquire more reasonable rates these days.
The internet makes it very simple for a lot of vehicle owners to locate a wide choice of providers for making their choices from. Comparing different companies is a process that results in being quite simple when people decide on the internet for this kind of task. As a topic of actuality, just pressing a button can be almost all it will require to locate cheap car insurance today.
When you determine to look for car insurance quotes online, you will discover it is also a simple way to locate companies offering extra money preserving rewards, including safe driver discounts to their valued customers. Discounted options similar to this can be quite easy to discover, and are normally offered from a greater part of the agencies found on the web. This is definitely one particular cause why it's so crucial to make sure you spend some time and don't hurry about while you are researching information concerning agencies that offer car insurance quotes online.
Another good thing about comparing different companies on the web is the fact you are additionally able to review rates with the specific coverage being offered. There is actually a very important factor that you will need to be very careful about when you're shopping online with regard to cheap car insurance. Upon first glance, you might discover that the rates an agency is offering customers appears to be very reasonable. However, after better inspection of each and every element supplied with the coverage, you find it is far from the reality. A essential aspect connected with making comparisons on cheap car insurance quotes, is always to ensure you are also acquiring adequate coverage. When you're provided quotes that include low quantities of coverage and low rates, this is not a thing you want to agree to.
Simply stated, the net has been found for quit some time being the most beneficial way for acquiring the best car insurance quote offers that are available today. It is an excellent method that permits a person the power of becoming able to compare many different providers quickly and effectively. Taking the needed time to compare the particular coverage on offer, along with the rates which are provided, is one of the first elements a person may wish to take into account. While the total cost is an important issue, you will not really want to ignore the importance that may be involved with the coverage that is associated with these rates.
Being able to understand the different choices in coverage you can select from using cheap car insurance can be baffling for a lot of people. Before a person agrees to the stipulations on any kind of automobile policy, it is crucial that they have the whole understanding of each of the listed elements. The frequent practice regarding quite a few agents, is generally to be certain the cheap car insurance they are supplying is entirely comprehended by the client obtaining the coverage. There are then again, some companies which simply desire to receive money, and they are definitely not worried about the coverage their own customers receive.

Read More

Learn more about the Teenager Car Insurance

Teenagers are more excited when the day they start to drive alone having the license that will allow them. What could be the consequences that you might expect when this day comes? This question is what most parents ask about this thing. There are lots teenagers who are uncontrolled when they are driving. A lot of them are so intense and over confidence already driving in an expensive car with their companions. Parents are most likely involved on how to control this too much excitement of their kids, definitely they are thinking of teenager car insurance that will ensure their kids safety. But, because of these trends some of the teenager car insurance already set standard rates to be paid by the policy holder. These insurance companies give higher charges if the car is an expensive sporty class type.

Teenager are most likely disappointed about this fact, but they have to remember that there are certain reasons on why should they follow this guideline for their own safety. The number of recorded cases will really show on how many teenagers are already involved in different accidents that causes serious and sometimes death casualties. These teenager car insurance companies know this because young people are more fearless when driving compare to those older and experienced drivers. This is one of the reasons why car insurance companies are setting higher rates of premium that offers from these cars belonging to higher categories. Probably one of the things to do is providing these teenagers a much bigger car rather than a expensive sports car that may lead to more serious problem, this big hefty car will not easily crash and it is much safer until the time they can really drive a car which is a horsepower engine. Parents also should consider buying a second hand car for their kids because this is also less expensive and as a starter for their kids in driving this is much safer, they can also get it in cash payment because the amount is much cheaper than brand-new cars and they can easily get the right insurance that will fit their budget. In acquiring a teenager car insurance for their kid will definitely lessen their cost. The liability insurance is more fit because it will totally lower the price rather getting the collision and comprehensive as well. Keep in mind that these second-hand cars are really cheap and the adjustment on the premium payment is very easy.  

There are also some factors that can be helpful in minimizing the premium cost, parents must always remind their kids regarding some of the guideline to follow so they can always take advantage of the discounts especially from the teenager car insurance companies. By maintaining a good driving record it will help you to lower the expenses in paying the insurance. Remember that if there are cases of accidents that teenagers under this insurance policy will really create a headache because this companies will definitely charge higher rates. Most insurance companies offer great deals for student drivers who excel in their class especially having recognition receiving awards. These type of students really deserve to get some good credits from different teenager car insurance because they are also excellent in driving.

Read More

Car Insurance - Cheap Could Be Expensive

Car insurance is compulsory for everyone who drives a car. While buying a policy for their car, most of the people make haste and are usually impulsive. "Cheap" becomes the only "lens" through which they look at auto insurance policies. This might sound like an obvious and accurate approach but it could be a huge error.

Buying an Car Insurance policy, like most policies, is the kind of spending that people like to avoid, especially because of its recurring nature. Insurance is said to be an investment that repays itself incase of a mishap. In most cases, as it is observed, such accidents never happen. This leaves people with a feeling that their money is spent on an imaginary unpleasant incident that hardly ever, and in their own case, never, takes place.
However, accidents do take place. They may not affect everyone simultaneously but at one point of time or other someone could be seen in the middle of a severe adversity. This is precisely the premise which gave birth to the concept called "insurance". Maximum people will pool money for the loss that might happen to someone among themselves.
It is crucial to know that the low-priced options are not necessarily the best options. In the eventuality of a disagreeable contingency people may perhaps discover that the insurance policy that they bought for their car was not the right choice. "Cheap" could turn out to be expensive. It denies the policy holder the benefit Car Insurance is supposed to provide in case of an accident.
Shopping for an insurance policy for vehicles such as a car doesn't have to be complicated. A little knowledge about the basic concepts of insurance coupled with some common sense goes a long way in simplifying the whole process.
Before buying anything it is very important to gain knowledge of the product and know exactly what to buy from an array of options. This rule holds true for insurance too.
A few suggestions are to be kept in mind during the first purchase. These might look obvious but what is obvious is often overlooked. Purchasing first Insurance Policy for the car is no different then purchasing any other product. The insurer must have a good reputation and a well-respected brand. To evaluate an auto insurance company, a small survey should be conducted among a few people who had already patronized the company.

Read More

Single Day Car Insurance - 4/5

4/ How do I process documents and cost?

The whole process is very simple here. Once you have decided what insurance choice and firm to offer with, you can now directly go to this specific company website and start your transaction. Application for one day car insurance is executed online in a very systematic way.

Read More

Single Day Car Insurance - 3/5

3/ Is it free to obtain line reviews online?

It is absolutely free to get prices and compare all other existing insurance plans and packages from several companies. There are many insurance companies giving free quotes and reviews with all other leading firms in the industry of car insurance.

You just have to get into your choices and compare as many rates as you want. However, do not be fooled with some websites that try to improve their business with exaggerated advertising plans. You have to check points very carefully and in no way react on an impulse. Make sure to get the right program or coverage that will fit to your models of excellent while thinking of your funds and your travel issues.

Read More

Single Day Car Insurance - 2/5

2/ Can I use it outside the UK or even use for imported cars?

Both the US and UK require vehicles to be insured while on the road. However, there are certain rules and insurance plans that govern each country or point out that could be several in some ways to each other. For instance, if you are in the UK, you are not allowed to get car insurance for a single day for an brought in car.

You cannot also use your one day insurance policy outdoor the UK. There might be some exceptions to such rules as some companies are now giving extensions or affiliate groups for better business options but you have to check things out first before making a purchase to match your wants best.

Read More

Single Day Car Insurance - 1/5

One day car insurance obviously tops your vehicle or visit for a single day. This is an innovative approach to the typical policy that people usually pay on a yearly basis. The distinction actually lies on the way you travel or the number of times you use your car on the road.

If you are using your car for work every day, then you certainly have signed up for an annual car insurance plan with your selected functions and policy that matches your wants best. You will even wonder what good one day car insurance can do to you with your current way of life. This can actually help you during an unexpected trip, short trips or travel ideas that are not protected with your latest total plan. Here are 5 basic questions that most people ask related to car insurance offers and programs, mainly for one day car insurance. 

1/ Who are certified for this type of short-term insurance? 

You must be at least 21 years of age but not more than 75 years old to avail this temporary insurance for 1 day or even up to 28-day policy. one day car insurance tops such autos as cars, motorbikes and vans.

Read More

Top Tips For Cheaper, Better Car Insurance

Do you have the right car insurance? Do you have enough coverage? While most people know whether they have liability, collision and/or comprehensive coverage, few people pay much attention to their insurance coverage until after they've been in an accident. Shopping for car insurance is a financial planning topic that is often overlooked, since most teenagers are added to mom and dad's insurance policy when they first get behind the wheel, and then later shop for the least expensive policy when they have to the pay the bill on their own. In this article we'll go over car insurance coverage and give you some tips to help you get the most for your money.

The Basic Types of CoverageProtecting your assets and your health are two of the primary benefits of car insurance. Getting the proper coverage is the first step in the process. These are the basic types of coverage with which most people are familiar:
-Liability: This coverage pays for third-party personal injury and death-related claims, as well as any damage to another person's property that occurs as a result of your automobile accident. Liability coverage is required in all but a few states.

-Collision: This coverage pays to repair your car after an accident. It is required if you have a loan against your vehicle because the car isn't really yours - it belongs to the bank, which wants to avoid getting stuck with a wrecked car.

-Comprehensive: This coverage pays for damage incurred as a result of theft, vandalism, fire, water, etc. If you paid cash for your car or paid off your car loan, you may not need collision or comprehensive coverage, particularly if the blue book value of your car is less than $5,000.
(For additional reading, see Pros And Cons Of Leasing Vs Buying A Vehicle.)

Additional CoverageIn addition to the coverage listed above, other optional coverage types include the following:

-Full Tort/Limited Tort: You can reduce your insurance bill by a few dollars if you give up your right to sue in the event of an accident. However, giving up your rights is rarely a smart financial move.

-Medical Payments/Personal Injury Protection: Personal injury protection pays the cost of medical bills for the policyholder and passengers. If you have good health insurance coverage, this may not be necessary. (For additional reading, check out Fighting The High Costs Of Healthcare.)
-Uninsured/Underinsured Motorist Coverage: This option provides for medical and property damage coverage if you are involved in an accident with an uninsured or underinsured motorist.

-Towing: Towing coverage pays for a tow if your vehicle cannot be driven after an accident. If you are a member of an automobile service, or if your vehicle comes with roadside assistance provided by the manufacturer, this coverage is unnecessary.

-Glass Breakage: Some companies do not cover broken glass under their collision or comprehensive policies. In general, this coverage is not worth the long-term cost.

-Rental: This insurance option covers the cost of a rental car, but rental cars are so inexpensive that it may not be worth paying for this coverage.

-Gap: If you demolish that $35,000 sport utility vehicle 10 minutes after you drive it off the lot, the amount the insurance company pays is likely to leave you with no vehicle and a big bill. The same thing applies if your new set of wheels gets stolen. Gap insurance pays the difference between the blue book value of a vehicle and the amount of money still owed on the car. If you are leasing a vehicle or purchasing a vehicle with a low, or no, down payment, gap insurance is a great idea.
Factors That Impact Your RatesIn addition to the specific coverage options that you select, other factors that affect your auto insurance rates include the following:

-Deductible: This is the amount of money that you pay out of your own pocket if you get in an accident. The higher your deductible, the lower your insurance bill. In general, a deductible of at least $500 is worth considering, as damage to your vehicle that comes in at less than $500 can often be paid without filing an insurance claim.

-Age: Younger, less experienced drivers have higher insurance rates.

-Gender: Men have higher rates than women.

-Demographics: People living in high-crime areas pay more than those living in low-crime areas.

-Claims: Accident-prone drivers pay more. If you want to keep your rates low, keep the number of claims that you file to a minimum.

-Moving Violations: Speeding and other moving violations all have a negative impact on your insurance bill. Obey the law to help keep your rates from rising.

-Vehicle Choice: Sports cars cost more to insure than sedans, and expensive cars cost more to insure than cheap ones do. Looking into the cost of insurance before you purchase that new car could help you save a bundle on your car insurance.

-Driving Habits: The number of miles that you drive, whether or not you use your car for work, and the distance between your home and work all play a role in determining your rates.

-Theft Deterrent Systems: If you have an alarm on your car, you'll pay less to insure your vehicle.

-Safety Devices: Air bags and anti-lock brakes both work in your favor by keeping you safer and lowering your insurance bill.

-Accident Prevention Training: Some companies offer discounts if you take a driver's education training course.

-Multiple Policies: If you have more than one car and/or also have homeowner or renter's insurance, keep in mind that many insurance companies offer discounts based on the number of policies that you have with them.

-Payment Plan: Some insurance companies offer discounts based on your payment plan. Paying your entire yearly bill at one time, instead of in installments, may lead to a discount.

-Credit Score: Good credit lowers your car insurance rates. Bad credit increases them. (To learn more about this process, see Insight Into Insurance Scoring and The Importance Of Your Credit Rating.)
Shopping TipsWhen you're in the market for car insurance, careful shopping is a must. Prices, features and benefits vary widely from company to company. Minimum coverage requirements vary too. In Florida, for instance, the minimum coverage requirements are $10,000 for personal injury protection and $10,000 for property damage.

In the personal injury department, $10,000 dollars doesn't buy much in the way of medical services should an operation or prolonged stay in the hospital be required. The same is true when it comes to personal property, as there are many sport utility vehicles and luxury cars that are priced well above $30,000. Therefore, protecting your financial assets in the event of an accident is likely to require far more coverage.

Comparison shopping is always a smart thing to do, and there are many websites designed to help consumers compare insurance policy prices. Insurance agents can help too. Independent agents often offer policies from multiple carriers and can help you find the policy best suited to your needs. Before you eschew an agent in favor of an online provider, think carefully about who you are going to call after you have an accident. Your agent has an incentive, in the form of your repeat business, to provide good service, while an online service may come up short.

Before you buy a policy, research your policy provider - regardless of who it is. Numerous firms rate the financial health of insurance companies, and your state also has an insurance website that rates firms based on the number of complaints they have received. (For a comprehensive list of state insurance regulators, visit the Federal Citizen Information Center.)

Read More

How To Get The Cheapest Car Insurance !

Insurance is an unavoidable expense if you own a car, but there are a number of ways to significantly reduce your insurance premium. The most obvious way to reduce the cost of your insurance policy is to shop around. However, it’s important to bear in mind that not all insurance agents or companies are created equal. You don’t want to simply find who will give you the cheapest rate and switch your insurance policy. Switching companies might not necessarily be in your best interest. It’s more about educating yourself about how insurance works and how you can use that knowledge to your advantage.

The best way to ensure that you not only receive the best insurance rates today, but continue to get a good deal over the long-term, is to develop a strong relationship with an insurance agent you can trust. If you haven’t heard from your agent since the day you signed up for your policy, there is a good chance you are not getting the best possible deal—simply because an agent who is not up to date on your life situation cannot advise you effectively. The goal of comparison shopping should not simply be to find a cheap auto insurance quote, but to find a great agent who can tell you about other discounts and help you find other ways to save money.

The best way to shop different insurance agents is to ask for a referral. Call someone that you trust, and ask them for the name of their insurance agent. Ask if they are happy doing business with this agent. Once you find two or three agents who come with a good recommendation, call their offices and ask for a review of your insurance policies. Most insurance agents are happy to provide this service at no charge. This is the fastest and easiest way to educate yourself about the different ways to reduce your insurance cost, and it will give you an opportunity to see how each agent works.

Generally speaking, you can save the most money on car insurance by consolidating all of your policies under a single company. If you have multiple cars in your household, and they are insured by different companies, ask about multi-vehicle or multi-line discounts. Nearly every insurance company offers incentives for insuring every car in your household. In addition, you may be able to save money by consolidating your other types of insurance. For example, if you own a home, you may be able to secure additional discounts by buying your homeowner’s insurance and your auto insurance from the same agent.

If you develop a solid working relationship with a good insurance agent, they will be able to tell you numerous other ways to save money based on your individual situation. For example, you might get a discount for belonging to a local club. You might be able to save money by raising the deductible on your collision policy, or by paying your premiums six months ahead. This only scratches the surface; there are always plenty of ways to cut costs. That’s why it’s important to pick one insurance agent who is professional and whom you know will be around for the long haul.

This article was written by Andrew Dean of National Transport, LLC, a leader in the US car shipping industry. You can view additional articles at their blog to keep up with the latest transportation/travel news from around the country.

the cheapest car insurance, cheap car insurance, car insurance, cheapest insurance

Read More

[UK] Teenager receives £33k car insurance quote

A teenager has received a car insurance quote of over £33,000 to insure her first car.
Eighteen-year-old Kaljeet Bansal passed her driving test on her first attempt but when she started looking into car insurance options she was shocked to find that the cheapest quote she could find was almost £20,000, while the most expensive came in a whopping £33,845.22.
The quotes were for insuring a Daewoo Matiz with an 800cc engine. The vehicle was worth around £400.
Kaljeet told the Yorkshire Evening Post: “When I saw the numbers come up on my laptop screen I thought it must be a mistake. But I've tried it four times now and it's the same every time. My friends haven't started driving lessons yet but I think this will put them off.”
A spokesman for Flux Direct, the company that provided the £33,845 quote, told the paper that his company does always try to provide a quote for young drivers, even where other companies don't.
He said: “We try to always provide a quote, which allows us to log the results and refine the final premium when we have more information about the risk. So while it may be unrealistic for the customer to take the policy out online at that price, our underwriters will hopefully be able to provide a cheaper quote when they can assess the risk more accurately over the phone.”

Read More

Auto Insurance Advice That Any Consumer Can Use

You can get auto insurance that is affordable when you follow a few tips. The range of criteria that insurance companies use to determine your rates is extensive.

Remember that Auto insurance is the not too expensive when it is the RIGHT Coverage at the BEST price and there for you when you need it.

In case you have an accident in which you need to file an insurance claim, remember that insurance companies love documentation. Taking pictures with your cell phone is very helpful in recording any damage done where a claim must be filed. It can also be advantageous to keep a camera in your vehicle to be prepared for worse case scenario.

Be sure to get quotes from multiple car insurance providers. Rates can vary drastically in the car insurance world. To ensure you're getting the best bang for your buck, make it a point to shop new quotes at least once per year. Being sure that the coverage is the same between the quotes that you are comparing. - An Independent Agent, one that represents many companies can do this for you every year with most of the Companies.  Then you don't have to.

Do not forget to take drivers off of your policy if they have moved or gotten their own. Once your child has gotten a personal policy, he/she can be removed from your plan for a significant reduction in your premium.  Talk to your agent about this, if they are still a ninor, your liability could be affected.   Taking a driver off your policy will almost always reduce your rates. On the other side, don't forget to list the drivers in your household.  If they have their own insurance, you need to provide that to your agent as well.

When you are dealing with infractions on your record that affect the rates you are being offered for car insurance, explore options for receiving a better quote. Some insurance companies allow you to reduce your rate after completing a course that addresses tickets or accidents. Today's technology also allows some insurance companies to install an electronic chip in your vehicle that will track your driving. If the chip records safe, responsible driving habits, your insurance company will lower your rates.

Maintain a detailed record of any improvements or accessorizing that you purchase for your car. If there is accident damage, or something is stolen, your insurance company will want this in order to indemnify you. If the additions you add are particularly pricey, check with your insurance agent to make sure your plan will cover them, in case of loss.

Getting married is one of the many ways a man under 25 can receive lower insurance premiums. It has been noted that on getting married some couples saved nearly 40% on their premiums. So, if you want cheaper insurance, now may be as good a time as any to get hitched.


Your insurance agent will Ask questions to find out what insurance coverage discounts you may qualify for.  If you want to spend as little as possible on auto insurance, you want to make sure you are getting all the discounts you can.

Car insurance rates vary from State to State and even Cities in those States. Different states and cities have different requirements and different premiums. If you are considering a move, you might want to check out the insurance rates in that city first.

As you have read, affordable auto insurance is not as rare as you may have thought. Talk to your independent insurance agent and Use these tips to help you lower your car insurance premiums.
Source:  Auto Insurance Advice 

Read More

[VN] Car Insurance - Liberty AutoCare



Comprehensive coverage with superior towing, repair and replacement services
Life's unpredictability can hit you at any time, which is why Liberty AutoCare offers you 24/7 free call hotline services and comprehensive coverage to protect your vehicles  and  small to large company fleets.

• The most comprehensive coverage, including hydraulic stroke
  insurance
• Repair at qualified garages nationwide
• Replacement of brand-new genuine spare parts without any depreciation charge
• Up to 2 claims per year for partial theft coverage
• New vehicle replacement for total loss occurring within 12 months from the purchasing date of the new vehicle
• 24/7 road assistance service (provision of information; free towing service up to VND 4 million per year in case of accident, vehicle breakdown, flat tire, gas running out, etc.)
• 24/7 support by Customer Service Center

Important notes on garage options

• “Your garage of choice” option gives you access to all garages in Liberty’s garage network
• “Liberty’s preferred garage” option allows the customers to have their vehicles repaired at a Liberty qualified garage at a lower premium.
• For more information, please contact your insurance adviser or 24/7 Customer Service Center at

Homepage: http://www.libertyinsurance.com.vn

Read More

[US] How to Save on Auto Insurance with GPS Fleet Tracking Technology

Managing a fleet is no easy task. On top of the day-to-day responsibilities, fleet managers are constantly feeling the pressure to cut costs. But when dealing with fluctuating fuel prices on top of maintenance, labor and insurance expenses, figuring out where to give and take can become difficult. Many fleet managers are given a specific cost reduction goal, and have to develop their own plans to achieve it.
With the pressure on, businesses are turning towards technology such as GPS fleet tracking to help lower fleet spend.  Not only has fleet tracking technology been notarized for benefits such as fuel, labor and maintenance savings, but there has also been buzz generating around potential insurance discounts. And with insurance being a major fleet operating cost, any opportunity to save can be greatly beneficial.
Why are some insurance providers offering GPS tracking discounts?

• With a fleet tracking application, fleet managers are able to actively monitor driver behavior such as speeding or aggressive driving, which in turn helps to improve driver safety.
• GPS vehicle and asset tracking helps to recover stolen vehicles and equipment. Many insurance providers will offer discounts to fleet owners who utilize these systems, considered anti-theft devices.

One GPS fleet tracking customer, Capeway Roofing, was able to lower their insurance premiums because of the anti-theft functionality.  Not only that, but their insurance provider’s safety division uses them as a model for other businesses. So, what would insurance savings mean to your business?

*Contact your insurance provider to find out about current discounts and conditions.

Read More

How to choose a term insurance plan

In these times of high inflation, Rs 20 won't buy you much. But it is enough to buy Gopal Gidwani a term insurance cover of Rs 49.99 lakh. The 38-year-old Pune-based professional pays an annual premium of Rs 7,652 for the Anytime online term plan from IndiaFirst Life Insurance he bought two months ago.

Term insurance policies have become very popular in the past 12 months. "Premium rates have come down, companies are advertising term plans in a big way and the online channel is very convenient. This is why sales of term plans have shot up," says Amitabh Chaudhry, CEO and managing director of HDFC Life. The company launched its click2protect online term plan earlier this year. Aviva Life Insurance, which launched its i-Life plan in May 2011 has sold more than 18,000 policies in the past 10 months. Aegon Religare Life Insurance has sold nearly 25,000 i-Term plans.
Financial planners contend that a term plan is the best form of insurance because it gives a very high cover at a low price. The premium of a term plan is a fraction of what you have to shell out when you buy an endowment plan, a money-back policy or a Ulip with the same coverage. Of course, this is also because there is no investment component in a term plan. The entire premium goes in covering the risk. Before you buy a term plan, here are a few things to consider.

How much cover do you need?
Life insurance is meant to provide the dependants of the policyholder with enough money to replace his income in case he dies. Your life insurance must take care of the following things: the basic expenditure that your family will incur, major expenses like marriage of children and other liabilities like loans. If the life cover is inadequate, it defeats the whole purpose of insurance. For instance, a good part of the Rs 12.5 lakh insurance cover that Michael Fernandes (see picture) has will go into paying the Rs 3 lakh car loan that he has recently taken. The Goa-based sole breadwinner of a family of four needs an insurance cover of at least Rs 30 lakh. Turn to page 5 to know how to calculate your life insurance needs.

Till when do you need the cover?
The tenure of the term plan is almost as important as the amount of cover. An insurance policy should cover a person till the age he intends to work. Till a few years ago, this was 60 years. "However, a person may continue working beyond the age of 60," points out Andrew Cartwright, chief actuary, Kotak Life Insurance. Moreover, late marriages and having children at a higher age mean responsibilities do not end at 60. Experts believe a person needs a life cover till at least 65 years, though it may vary according to circumstances.
Don't take a short-term cover of 15-20 years that ends when you are in your 40s. The premium will be very low because you will be insuring yourself for the non-risky years. In the 40s, the need for life cover is at its zenith. If you take fresh insurance at that age, it will cost you a bomb. You might even be denied the cover if you have not been keeping well.
Choose a term plan that offers you the flexibility of fixing the tenure. Many online term plans come with fixed tenures of 15, 20, 25 and 30 years. Others don't offer insurance beyond 60 years. So, a 32-year-old will not be eligible for a 30-year-plan and will have to buy a 25-year cover, which will end when he is 57 years. It is best to avoid such plans and opt for a policy that can be customised to your needs.
Mumbai-based Vivek Kumar has configured the tenures of his five term plans in a way that they match his financial goals. Whenever a goal is achieved, the corresponding term plan terminates. "I have tried to ensure that in case I am not around, my daughter's education and marriage will be taken care of," he says.
Have you factored in inflation?
Have you bought a Rs 50 lakh cover and think it is sufficient for you? Think again. The value of Rs 50 lakh will only be Rs 28 lakh after 10 years assuming an inflation of just 6%. To get around this problem, some insurance companies offer plans where the cover increases by 5-10% every year or is indexed to inflation. "As your sum assured would automatically increase in the coming years, it would take care of the increase in your income as well as inflation," says Rituraj Bhattacharya, head, product development and market management, Bajaj Allianz.

Inflation is high right now but may scale down in the coming months. The long-term average inflation in India is expected to be 6-6.5%. "A 5% increase in the insured amount won't match inflation. If you must go for such plans, opt for either a 10% annual increase or an index-linked one," says Cartwright.

 Source: http://articles.economictimes.indiatimes.com/2012-03-26/news/31240130_1_term-insurance-aegon-religare-life-insurance-term-plan

Read More

How to transfer insurance to your next car

February is a great time to grab a bargain on a used car, as drivers looking for a shiny '13' number plate come March 1 will be trading in their older models now.

Buying a car, whether it's a flash new 13 plate or a bargain used model, can be exciting. However, it does come with some boring but necessary administration which, if you're not careful, can cost you more than it needs to.

So if you're in the market for a new set of wheels, here's a look at how to transfer your car insurance to your next car, and not pay more than you have to in the process.

Before you buy

You need to start thinking about insurance before you shake the dealer's hand, particularly if you're a younger driver, because you need to know how the new car will affect your premiums.

When you're browsing the forecourts it's important to take down the registration numbers of any cars you're particularly interested in, so that you can get quotes on insuring them. You might have found the car of your dreams, but it could turn into a nightmare if you were to part with the cash and later find out it's going to cost you a lot more for cover.

Call your insurer; tell them you're thinking about changing your vehicle and that you want to know how it would affect your premiums.

They'll take the registration number; confirm the make and model of the new vehicle and ask a few questions to see if your circumstances are the same as when you took out the cover.

If the car is more powerful or, as is likely, more valuable than your old car, the cost of your insurance may rise. There is also likely to be an administration fee, usually around £30 to pay to transfer the insurance to the new car.

I did this recently and was quoted a fee of £45 for the transfer and administration. If, initially, you paid for your cover outright, you can choose to pay the sum in one go or spread the cost over the remaining term of the cover.

If you pay for your car insurance in monthly instalments, you have the option of adding the sum to your policy and spreading the cost over the remainder of the policy. In my case, this amounted to an extra £4 a month. Of course you can also simply pay for the transfer and administration upfront if you prefer.

The administration fees for changing the vehicle on your policy should be set out in your insurer's terms and conditions.

Not your only option

Transferring your existing car insurance policy to the new car is not your only option. Alternatively, you could cancel the policy on your old car and set up a new policy for the new vehicle.

All insurance policies in the UK come with a 14-day 'cooling off' period, in which you can cancel without penalty. Once this period ends, you'll be charged a cancellation fee - which varies from one insurer to the next and will be detailed in the policy's terms and conditions.

Be aware that these cancellation fees are designed to make it disadvantageous to cancel your policy. Technically you could be entitled to a partial refund by leaving the contract early, but the cancellation fee could cancel any refund out.

Also, cancelling a policy, say, after nine months in order to set up a new policy elsewhere will mean losing nine months' worth of No Claims Bonus.

That said, it's worth running a quote over for the new car over on our car insurance channel because if you can get significantly cheaper cover with another provider, it may be more cost-effective to take the hit on the cancellation fee.

A word on gap insurance

If you're spending a substantial amount of money on a new vehicle, you might want to consider gap insurance.

If you were to buy a new car for £10,000 and write it off nine months later, your insurer would likely only pay out for the current market value of the vehicle, which could be £7,000 or less, depending on how the make and model depreciates in value.

Gap insurance makes up the shortfall between what your insurer pays out for the vehicle's current market value and the trade price you paid, allowing you to replace the written-off car with something similar to what you originally bought.

This might be a particularly worthwhile investment if you're buying a car on finance, or you've taken out a personal loan to buy your new wheels.

A quick search on MoneySupermarket's gap insurance channel returns a quote of £3.62 per month over 36 months for gap cover on a car with an invoice price of £10,000. Over three years this amounts to £130.32 and covers you for a maximum claim amount of £10,000.

Unlucky 13

Finally, if you're a superstitious sort and think that a 13 number plate is more likely to land you in an accident, the DVLA is offering you a way out.

For a starting fee of £250 you can buy a personalised number plate from the DVLA... though a rabbit's foot would be cheaper.

Read More

How to get proof of no claims discount

You've just landed yourself an epic deal on your car insurance by switching to a new insurer, and now it's asking for proof of your no claims discount. So how do you prove it?

As long as you don't make any claims on your car insurance, you'll earn a no claims discount. In the eyes of an insurer, this shows you're a careful and safe driver, and you'll be rewarded with cheaper car insurance.

If your new car insurance provider has given you a great deal on the understanding that you've kept a 'clean sheet' over the past few years, it'll probably want to see some proof that you've not made any claims.

How you get this proof will depend on who your last car insurance provider was, because each insurer has a different system for providing proof of no claims discount certificates.

To save you some time, here's a table showing how to get your proof of no claims discount from some of the most popular car insurance providers.

Read More

New law shakes up insurance buying process

It'll now be harder for insurers to turn down claims on the grounds of the non-disclosure of relevant information, thanks to the first change in the UK's insurance contract law in more than 100 years.

The Consumer Insurance Act came into force on April 6, and is the first major legal change the industry has seen regarding non-disclosure since 1906. It should mean greater protection for consumers, provided they do not deliberately lie to an insurer about their circumstances.

Here's a quick Q&A on what the Act entails and how it will affect the way you buy car, home or any other kind of insurance.

What's changing?

When you buy insurance now, the insurer will have to ask you a series of questions to find out specific details about your circumstances. The Consumer Insurance Act will then protect you if you unwittingly give them incorrect or incomplete information - since they should have asked you specifically for it.

It means that the insurer won't be able to turn down a claim on the grounds that you failed to disclose certain bits of information - basically shifting the onus to them to ask for the information, rather than on you to volunteer it.

Of course the Act won't protect you if you carelessly or deliberately lie about your circumstances.

Why is it changing?

Given that contract law around buying insurance hasn't changed in more than a century, it's probably high time it was updated.

That's not to say insurance has stayed the same since 1906 - because insurers have been continuously improving their proposal forms to make things easier and clearer for customers.

And there have been other movements too, such as the Association of British Insurers' (ABI) code of practice on non-disclosure, designed to reduce the number of claims that get turned down because the insurer says the customer failed to disclose important information.

The ABI said: "We want customers to take out insurance policies with the confidence that they are covered. By placing a legal duty on insurers to ask customers all relevant questions at point of sale, people will know exactly what they need to disclose upfront."

The Act has also been introduced to help insurers tackle fraudulent claims, by making sure the questions asked by insurers are clear-cut enough to stop people from providing false information on purpose.

Which insurance products are affected?

The Act affects any personal insurance policies, so things like car, home, travel, health, pet, life, critical illness and income protection insurance. It also applies to pension annuities.

You'll be protected regardless of where you buy cover, whether it's from a broker, directly from an insurer or through our insurance channel or other comparison websites.

Will I notice the change?

As the onus to get all the relevant information is on the insurer, you probably won't notice a great deal of difference due to the Consumer Insurance Act - especially since insurance providers and industry bodies have been refining their approach over the past 30 years to make sure consumers get a fair deal.

The Act itself will just set an official, industry-wide standard for insurers to abide by.

Can insurers still turn down a claim for non-disclosure?

Yes, there will still be circumstances where a claim is turned down because a customer failed to disclose the correct information - but only in instances where the customer deliberately, carelessly or recklessly gives incomplete or incorrect information to the insurer.

Basically, if you're intentionally lying or withholding the truth about your circumstances, you could still have your claim rejected.

This means it's important to make sure you answer each of the insurer's questions to the best of your knowledge, and if you're unsure of something you need to ask your insurer about it directly.

Read More

5 ways to pay less for car insurance

Car insurance will be ferociously pricey, therefore it's crucial to fight back and realize rock bottom premium you'll.

We're here to assist - in 2 ways in which. First, we tend to create it fast and straightforward to buy around among over one hundred thirty leading insurance corporations, transfer you the advantages of a competitive market, straight to your pc or device.

Next, we provide tips and steerage to enhance your risk profile, which suggests insurers can need to charge you lower premiums as a result of there is a reduced probability of you creating a claim.
So here ar 5 fast wins to assist you are taking the warmth out of your automobile insurance prices...

1 -Shop around!

We can't say it often enough: whenever you buy car insurance (whenever you buy any kind of insurance, come to think of it), you should shop around. Don't simply accept the renewal quote your current insurer offers you, and don't let your busy schedule and long "to-do" list mean you neglect to interrupt the automatic renewal journey they're hoping you'll complete.

Insurers don't reward loyalty. They save their best prices for new customers, not those renewing their policy. So it makes sense to act like a new customer every year and see which company is willing to offer the best quote. And this is something you can do in 10 minutes or less on our site.
Our figures show that 30% of drivers could save over £400 on the cost of their annual cover by shopping around.

2- Boost your discount

Drivers talk in hushed terms about their no claims discount - hardly surprising, since it can knock 75% or even more off a premium after five years of claims-free driving. So it makes sense to look after this discount - and there are three main ways to do it:

• Pay an additional premium to 'protect' your NCD so that you can make one or even two claims in a year without losing it
• Refrain from making a claim for relatively minor bumps and scrapes
• Driving as safely as possible to reduce the likelihood of having to make a claim for an accident.

Few of us drive recklessly, but then few of us are perfect drivers either. So it's worth thinking about speed limits, distances, weather conditions, possible distractions behind the wheel...
Accidents will still happen, but we can play a part in reducing their frequency and severity. The reward will be fewer incidents (a good thing in itself), which should in turn lead to lower premiums at future renewals.

3- Increase security

If accidents are one main source of car insurance claim, theft is the other. Insurers look at your car and where you live and work out the risk of it being stolen - and charge more if you're in a high risk area. But if you fit approved security devices (such an immobiliser) and park your car off-road overnight - or, even better, in a garage - you should make a dent in your premium.

4 - Manage your policy

There are various elements of your car insurance policy that provide money-saving opportunities. For example, you'll be asked your expected annual mileage - and the more miles you say you'll be driving, the more you'll be charged. So if you can commit to driving fewer miles, you should see a reduction in premium.

Whatever number of miles you pick, however, make sure you stick to it - bust your self-imposed limit and your insurer might start playing hard-ball if you make a claim.

You should definitely avoid paying by instalments if you can avoid it, as insurers charge interest in return for spreading the cost. Paying several hundred pounds or more in one chunk can be unpalatable, but remember it could be costing you £80 a year for the pay-monthly option.

Increasing your voluntary excess is another option that can trim your premium, as is adding an older, more experienced individual as a 'named' driver on the policy.

5 Consider 'telematics'

Telematics is the use of satellite technology within your car to monitor your driving.

Essentially, you pay less for cover if you drive safely on low-risk routes at less busy times of the day.

And you risk paying more if the data gathered by the black box under your dashboard shows you to have the driving style of a heavy-footed boy-racer who haunts the highways of the night.
Such policies aren't for everyone - not least because they usually restrict your annual mileage to 6,000 miles - but if you're struggling to find affordable insurance, telematics is definitely an option to consider.

Read More