WHAT IS AUTO INSURANCE?

Car Insurance

Easy and Free Auto Insurance Quotes

Are you are tired of looking for the right auto insurance? Frustrated with all of the confusing terminology? Do you want to get an idea of what your ideal policy would cost you without the hassle of an auto insurance agent insisting you purchase? Well stop looking and start reading (the remainder of this article, that is!). For your convenience, we have put together a list of questions regarding the ease of finding auto insurance with no cost. Below you find popular concerns and questions that most drivers looking for auto insurance face.

Where do I start looking for auto insurance?

There are many places to start looking for auto insurance, but your best bet is right here on our site. Enter in your zip code and answer the remaining questions honestly. Then, you will be given a list of auto insurance companies — including the more well-known companies — that are in your area who are willing to supply you with auto insurance. You can compare prices and companies side by side and think about which company would best suit you. When you have made your decision, you have the option of purchasing a policy online at that time. If you choose not to purchase a policy, don’t worry, you won’t be charged any fees. We offer our services to everyone to give a fair chance to all drivers to get the best auto insurance available.

The alternative method would be to contact auto insurance companies one by one and find out what they can do for you, especially as far as how much they would charge you for your policy. Be prepared to spend a lot of time and know you will be speaking to many people, possibly going through a number of automated systems where you will be using your keypad a few times. If you want to save time looking for auto insurance, use our site to compare quotes quickly and without any charge.

With so many options, how do I choose an auto insurance company?

While there are many options to choose from, each driver should pick their auto insurance company based on the factors that are important to them, not to someone else. For instance, some drivers may feel it is more important to get the cheapest rate possible, while other drivers want an insurer with great customer service and financial stability. Listing the advantages of each company and knowing their weaknesses (if there are any) can help a driver make their final decision. Searching for reviews of the companies and asking trusted family members and friends who they use can also help.

Won’t an insurance agent try to get me to buy insurance that I don’t need?

It’s easy to think that an agent will be attempting to up-sell drivers on their insurance, getting them to purchase more than necessary. This is something leery drivers worry about and informed drivers laugh off. You can familiarize yourself with auto insurance terms by reading our site, which will allow you a better understanding of how auto insurance works. Of course any salesperson will want to up-sell you, but most auto insurance agents and companies are only trying to provide you with adequate insurance for your specific needs. It is recommended by experts to carry more auto insurance coverage than the minimum that’s required by the state, and rightfully so. The expense of repairing property (including vehicles) and medical bills increases over time.

As for medical coverage in your auto insurance policy, if you already know what your health insurance covers it will be an easy decision whether or not to purchase options like personal injury protection or medical payment for your policy. If your health insurance has a low maximum amount, additional insurance for possible medical bills from an accident may be a wise choice.

How much will I pay per month for auto insurance?

This is a popular question, but it can only be answered by your auto insurance company once you have a policy. You can choose the option to pay your premium in equal monthly payments throughout the duration of the policy period, or as one lump sum at the beginning of the policy and each time it renews. If you choose to pay monthly, some insurers will require a down payment, or about 25% of the premium upfront. The remaining balance will be paid over the policy period.

How much will my insurance increase if I’m in an accident or get a ticket?

This is another question that can only be answered with specific numbers by your auto insurance company. Some auto insurance companies will forgive a driver’s first accident if that person has had a spotless record for a few years. Otherwise, an accident can cause a 20-40% of the base rate increase. This increase is given for a number of reasons; two of which are because now that driver has increased their level of risk with the auto insurance company and the higher the level of risk a driver has, the higher their premium is. Second, the increased premium goes towards the costs the insurer had to payout in the claim.

Traffic tickets also increase premium rates because they show the insurance company a lack of paying attention to law or blatant disregard for it. Both of these attitudes show a higher level of risk that the driver will make a future claim. Again, as to how much a traffic ticket will increase your rates is up to your insurer.

How can I find out what my legal responsibility is regarding auto insurance?

Each state has their own requirements in regards to how much insurance each driver needs to have and the type of insurance that needs to be carried. Checking with your local State Department of Motor Vehicles or State Department of Transportation will let you know what the requirements are. Also, any auto insurance company in your state should know and should be able to tell you. Most states require at least bodily injury liability and property damage liability, while other states also require either uninsured/underinsured motorist liability, personal injury protection or a combination of these.

Would You Rather Pay Monthly?

A car insurance question is often asked by policyholders nationwide: is it better to pay for auto protection in monthly installments or as one full payment upfront? Before anyone can answer that question for themselves, both options must be explored to find out where the advantages are and if one way really is better than the other.

Paying monthly, otherwise known as low down car insurance or month to month insurance, is one means by which many drivers pay to be insured. They feel it to be a more manageable bill each month rather than set aside and save the money monthly for the one-time payment in full at the beginning of the next policy period. However, others feel the exact opposite, thinking that it’s a hassle to worry about another monthly payment. We’ve answered some of the more popular questions about this topic to help drivers make a better choice that will help them out.

How Much Will My Down Payment Cost?

The amount that needs to be made as a down payment will vary from company to company, but it is a percentage of the total price for the policy. It can range from 15% to 30% of the total cost, and once paid, that amount will be deducted from the total price. The remaining balance will be divided up into equal payments which will be expected to be paid throughout the policy period. There are times when the insurer will not ask for an initial down payment and the entire policy premium will be divided equally between the policy period.

Does a Monthly Payment Signify a Monthly Contract?

No, it does not. The contract of the coverage agreement goes for the allotted time that it was purchased for. Policies come in the form of 3, 6, 12, and sometimes 18 month long contracts, regardless of month to month payments or making a full payment at the beginning of the policy. Rest assured that as long as the payments are made in the billed amount, the policy will stay in effect, and the drivers and vehicles will have coverage. The contract will be canceled on the insurer’s terms if payments are not made.

Are There Any Fees Included in Paying Monthly?

Yes. When paying for monthly auto insurance, the carrier will add a small fee to each monthly payment. This fee could be $3 a payment to $10 a payment. Check with your insurer as these numbers do not represent every company. The fee is for processing costs, and it will be waived if the policyholder pays for the policy in full at the beginning of the policy. If the policyholder is wanting to save money and feels every dollar counts, it could be worth the effort of paying in full and saving the money from the processing fee.

What Happens if I Miss a Monthly Payment?

Each monthly payment is due on a specified date, and if the provider doesn’t receive the payment, a notice will be sent to the policyholder notifying them that the provider hasn’t been paid. This period of time between the due date and the cancellation date is referred to as a grace period because the insurer is allowing the driver to make the payment. The notice that will be sent includes a cancellation date, whereby the provider will automatically cancel the policy for non-payment if payment has not been received by that time. The policyholder should contact the provider ASAP and make a payment over the phone or through their Website to avoid cancellation. If a policy is terminated, the driver could be breaking the law and could be facing expensive punishments if caught.

How Can I Remember to Pay it on Time Every Month?

There are a few options to remember the monthly payment. The easiest way is to set up an automatic bill pay through the insurance company. By doing so, the policyholder is giving permission to the insurer to withdraw the amount of the monthly bill on the same date each month from their bank account. Some banks will do the same thing by sending the monies to the company on a certain date, which is set up by the policyholder. Both of those methods do not require any time on the policyholder’s part to remember to pay the bill, which eliminates the chance of a termination due to non-payment.

Do All Insurance Companies Offer the Choice to Pay Monthly?

Since we do not know the habits of every single provider in America, we cannot fully answer this question. However, most companies do give the option of month to month car insurance because they want your business, and they realize that sometimes monthly options are far more affordable than paying a lot of money at once for one bill. If this option is important to you and your budget, it should be part of prerequisite when choosing a carrier.

Is it Better to Pay in One Lump Sum?

This question can only be answered by the policyholder. Everyone has different preferences in how they pay their bills. Some people want the bill paid and out of the way for the duration of the policy period, while others do not find it to be a hassle to remember to make the payment monthly. If you are not sure which method you would like more, try both out and make your decision from there.

In conclusion, a low down auto insurance policy may in fact be the better choice for many Americans in today’s economic climate, but only the policyholder knows for sure. There are advantages to paying monthly and there are also advantages to paying the premium upfront in one payment; it all depends on the preference of the person footing the bill. Because the price of everyone’s policy is different, we can’t tell you how much you’ll be paying per month. But, if you have an idea as to what you would like to pay, make sure you try out our quote comparison tool to see if you can get something cheaper than what you have now.

Tutorial on Buying Auto Insurance Online

Purchasing auto insurance online from a quality carrier is much easier and faster than the old ways of doing it, which involved numerous phone conversations and personally visiting their offices. Once upon a time, consumers were left to repetitiously ask the same questions to each different representative, wasting their own time trying to gather the data they needed to make an informed decision. Now that everyone can get car insurance online, no one should put themselves through the inefficient ways of the past.

If the process of buying auto insurance online now seems unsettling or scary, continue to read through this tutorial to get a better idea of the simplicity of this process as we provide the steps that will be taken as you move forward.

Step 1:

The first step is to obtain a free quote from our site, which can begin by entering your zip code on our Home Page. This will help you get quotes from companies that are in your local area. Upon entering in the zip code, a short series of questions will be asked regarding the policyholder or driver, in addition to information about the vehicle that is to be insured. The data that is entered will need to be accurate as this is what the quote will be based off of. Providing false information will result in an inaccurate quote. Also, at this time there is no need to provide any personal information, otherwise known as your driver’s license, social security number, or any other private information that could be stolen and used against you. At no point during this process will anyone be under obligation to purchase a policy, nor will anyone be asked to pay a fee for this process. It is free and there is no limit to how many times a person uses it. Anyone can take advantage of the quote procedure, whether it’s just to casually browse and see what’s out there or for serious buyers.

Step 2:

After the questions have been answered, a list of quotes from reputable companies will be made available. Some of these companies include Progressive, Infinity, Bristol West, and GMAC. Take the quotes and compare them side by side to see which company will give you the cheapest quote for the same coverage as the other companies. Think about the coverage that is being offered and decide if it’s enough to provide adequate protection. If not, begin the method again to receive new quotes and continue to review and compare.

Step 3:

When you have figured out the best quote to fit your needs, you can purchase insurance online right there on the spot by using one of two methods. The option to click and buy now will be available, as well as a phone number that you can call to purchase the policy. If you choose to purchase over the Internet, a quick application will need to be filled out for approval. Know that you will be making a type of electronic signature on the application, which is the same as signing your name on a contract. This electronic signature is usually in the form of using your mouse to click on a box that says “I Agree” next to contractual statements. Don’t be alarmed as this is similar to initialing on paper contracts or applications, stating that you understand the agreement. Auto insurance is an agreement between a policyholder and a company, stating that the policyholder will pay the company while it provides coverage for the car and policy members.

Within this step, the future policyholder and members will need to provide their personal information that was omitted earlier in the process. This includes a driver’s license number, the VIN number of the vehicle and the license plate number. If you happen to be uncomfortable providing this over the Internet, feel free to use the number that was given with your quotes and call to speak with one of our friendly representatives. Rest assured though that our site is secure and we take your privacy very seriously.

Step 4:

Your work is done at this point of the process. You have received and reviewed your quotes, chosen a company and their price, and filled out an application. When the insurer has decided whether or not to provide you with protection, you will be notified. This happens very soon so as to not keep the consumer waiting or try to find it elsewhere. Upon approval, the applicant will then be given the “thumbs up” that they will be insured by their chosen company. In some states, there is a further option to immediately print out a card showing proof of purchase. All others will be required to wait for their proof card until it comes in the mail in a matter of a few business days.

Low Rates:

The best way to keep your rates as low as possible is to look for discounts. Every insurance company offers them, but it’s usually up to the policyholder to inquire about the exact types that are offered. Watch for good student discounts for any teen or college drivers, as this can save parents from the high expense of insuring this age group. There are also senior citizen discounts offered, too, which can help stretch out living off of retirement checks. Defensive driving courses, safety features on the vehicle, and low mileage can all add up to major savings in your pocketbook.

How Should You Compare Auto Insurance Quotes?

Throughout the articles on our site, we strongly suggest consumers compare their current auto insurance premium with what other companies offer. There is more to choosing an insurer than picking up the phone and dialing the most recent company you saw an advertisement for, purchasing the first option that the representative suggests. Looking further into the future and the possibility of having to file a claim, everyone should realize the importance of having this cushion or protection of insurance, and getting the best coverage for the lowest price is usually the most important part of the process. However, there are other reasons why consumers should shop around for insurance quotes.

Get the Best Price

Any savvy shopper can confirm that the only way to get the best and lowest price for a product is to look around at what all of the companies are offering. Whether the consumer is comparing grocery expenses or insurance prices, they know there is more than one company offering this very same product out there. Because companies are competing to get the business of all consumers who desire the product, they will do whatever they can to take hold of the consumer and get their business to make a profit. With today’s economy on the fringe and people tightening their “money belts,” companies know the best way to lure someone in is with a low price through their radio and television advertisements, as well as these claims displayed on large billboard and magazine ads.

Getting the best price doesn’t just mean being offered the company’s lowest price available, but it means being offered the lowest price for the desired coverage from any company. Take for instance the example of Driver A, who has been with the same auto insurer for years and has seen a gradual increase in his premiums over the years for the basic coverage he carries. His friend is paying for the same coverage with another company, and he decides to check them out and gives them a call. It turns out that for the same coverage he is already paying for with his current insurer, this new insurer could save him 10%. Driver A wouldn’t have known this if he hadn’t compared his rates.

Find More Coverage

Typically all insurance companies offer the same types of coverage, but occasionally some insurance agencies provide more protection within their terms of use than other companies, or the price of their options can be less when compared to others. If drivers are basing their insurance coverage off of a certain budget amount, it would be understandable that the driver wants as much coverage for that price. To make sure this is true in that driver’s situation, she would need shop around to see what she could get from other companies with her budget.

A more specific example would be she takes her budget and makes a realistic hope to purchase the state requirements of bodily injury and property damage liabilities, as well as comprehension and collision and uninsured motorist coverage too. Auto insurance company “A” could only provide her with the state requirements and comprehensive and collision to fit in her budget, while company “B” could provide all the coverage she desires and not go over her budget. For this case, both companies had the same conditions in their terms of coverage, so it was an easy choice for her to choose which company to go with. Had the terms of coverage varied from each other — i.e. comprehensive coverage was different in company “A” compared to company “B” — this driver would have to consider which coverage she would want versus how much she was willing to pay.

Better Customer Service

This reason isn’t always the most popular when wondering why one should compare auto insurance quotes, especially since normally a driver doesn’t need to speak with any of the representatives to get an accurate quote comparison. However, the level of customer service could be a deciding factor between companies offering the same price.

When a driver has been working hard to look at all aspects of insurance carriers’ quotes, they often take other things (besides price) into consideration when making their final decision. The top carriers usually offer similar services and coverage, so it may take something else to help the driver know who to choose. A quick phone call to every insurer that provided a quote will help get a better idea of how well the customer service department works. A polite, knowledgeable staff will be better to work with when filing a future claim or when a policyholder has a question about their policy. Allow the representative to demonstrate how much they know and pay attention to their attitude towards the potential customer. Do they seem irritated by the questions? Are they hurried and trying to get the customer off of the phone? Do they speak calmly with manners?