Car Insurance Hub

Classic, Collectible and Exotic Car Insurance

2008-03-27T21:46:00.001-04:00

Classic, collectible, and exotic cars may be more difficult to insure with standard insurance carriers. An alternative is to look for companies that specialize in this high-end field.

Collector cars typically receive extra care and less usage than cars for everyday use. With some restrictions and exclusions classic collectible cars can be insured for a reasonable premium.

Some of the restrictions include the prohibition of commuting use, a cap on number of claims made, and a blemish-free driving record. Typically the vehicle must be stored in a locked garage and another regular vehicle with full insurance coverage available for normal use.

If a collector wishes to display his vehicle at auto shows, liability insurance may be obtained for the event. $1,000,000 general liability insurance for car shows is available and rates are based on the number of cars at the show.

For street legal hot-rods, custom cars, and exotics, there are policies for liability and uninsured motorist coverage that are based on miles driven. You can select the appropriate plan from a mileage menu.

Supercars and elite luxury cars can also be insured by specialty companies. By choosing some low-mileage options and named driver restrictions a Ferrari, Lamborghini, Maserati, Bentley or Bugatti can be insured without the 25% extra that standard companies may charge for luxury sports cars.

Many of these specialty insurance companies can be found online, and quotes can be obtained for a guideline. Often, however, the final coverage and cost will be determined after a physical inspection.

Club memberships and performance driving class certificates can provide additional discounts that reduce the cost of insurance coverage.

Because these type of vehicles are often driven less and are cared for more, reasonable insurance rates are possible if you deal with specialty companies.

Don't Leave Car Insurance Out of Your Budget

2008-03-27T13:26:00.001-04:00

When times get tough and the bills take more and more of your income be careful you don't drop your insurance. If you don't pay an insurance bill on time, or decide to let it lapse, you could be paying a lot more down the road.

For one thing, it is illegal to drive without insurance. If you get stopped or involved in an accident, even through no fault of your own, you'll need to provide proof of insurance. Driving without insurance is a punishable offense in most states and will lead to fines and unnecessary expense. Worse it will remain on your driving record and cost you more for insurance in the future.

If you let your insurance lapse you may have a hard time getting reinsured. Most car insurance companies will not insure you if you are currently uninsured. Sometimes they will not even give you a quote.

Check that you have appropriate insurance. It's one thing to pay the policy premium but be sure it is the best fit for your needs. There are many ways to save money on car insurance. If your vehicle is old and has low residual value you may conclude that you do not need collision damage insurance. The cost of repair may be more than the value of the car.

If you have a loan on a car, check that what you owe is covered by your insurance. If the value of the car is less than what you owe, and you have a total write-off collision, you will end up paying the difference between the insured residual value paid by insurance and the loan amount outstanding. In this situation you can get 'gap' insurance that will cover you for the discrepancy, even the deductible.

If you are thinking of buying a new car, remember to include the cost of insurance in your budget. Shop for the best rates on a car loan and the best rates on car insurance in order to know what you can afford.

Rental Car Insurance - Accept or Decline?

2008-03-26T12:30:00.001-04:00

When you are renting a car and signing the rental agreement are you sure what to check and initial when you get to the insurance question? You can save money by declining coverage but is that wise? Are you sure you won't be saddled with a huge bill if the car is damaged, either by you or by someone else? One time I was told my credit card would be charged $1500 because of having a puncture!

There are several points to be aware of before you get to the rental car counter. First of all, what car insurance coverage do you hold on your own vehicles? Rental car insurance is usually included in your insurance policy. There may be exceptions and exclusions you must become aware of, such as driving in Mexico, or renting a motor home or moving truck.

Sometimes your policy may not cover the rental car company's loss of use. This can vary by insurance company and state laws. The best advice is to read your policy and ask your agent.

If you learn that rental car insurance is not already included ask your insurer how much it would be to add. This may be the least expensive option.

Otherwise you will want to accept the rental car agreement coverage. This is usually called Collision Damage Waiver. It means that you will not be held liable for any expense incurred if the rental car is damaged. There is also the possible peace of mind that there is no questions asked and no ongoing paperwork if you might have to claim under your own policy. However, it means you will be paying more than twice for the same protection - once under your own policy, and a lot more for the car rental policy.

Daily rates for CDW vary by company, location, and type of car. The major agencies charge from $9 to $36 per day.

The other protection you need to have is liability and medical coverage. Again these are usually icluded in your own vehicle policy. You may decide to add it to your rental car agreement if you feel your coverage is inadequate. This is called Supplemental Liability Insurance. SLI costs from $9 to $16 per day.

Be sure to check your own policy's coverage and ask your agent if you don't understand it. Next time you are at the rental counter you can be confident that you have the protection you need.

Does Age Affect Car Insurance Rates?

2008-03-25T13:44:00.001-04:00

Did you know that most accidents and claims occur for a driver in their first 2-3 years on driving? Insurance companies take that into account when they assess risk of insurance.

It makes sense then that young people are considered a high risk driver because of their age. Young people, especially teens, have little driving experience. They make more mistakes and have not developed good skills or judgment.

But that can also be said for new drivers at any age. If you start driving after your teenage years you may have better situational judgment but your driving skills may still be lacking in experience. A new driver on the road is likely to have more accidents.

That being said, above a certain age, as in elderly adults, car insurance rates can be affected again. Elderly drivers may have years of on-the-road experience, but they may also have begun to lose their judgment, developed bad habits, or have impaired observation, physical mobility and reaction times. Higher incidence of claims in elderly drivers raises insurance rates.

One of the main factors in determining insurance rates is the age of the driver. If there is a teen driver or an elderly driver on the combined family insurance policy then the premiums may be higher.

Car Insurance Secrets

2008-03-24T12:55:00.001-04:00

The way to get your car insurance costs down is to know how the insurance company sees you as a risk.
Here are some ways to lower your risk and lower your policy premium.

Buy a low risk car.
If the vehicle you drive is less likely to be stolen or driven by high risk drivers then it will have fewer claims. e.g. drive a Ford Taurus instead of a Mitsubishi Evo.
Buy a popular car.
A car that is made in high volume and sells well is likely lower priced and easily repaired.
Drive carefully.
Keep your driving history clear of violations and tickets.
Get a higher credit score.
Reduce debt and improve your credit history. It is used to rate your premiums.
Combine insurance lines.
Use the same insurance company for multiple autos and home or contents insurance.
Get discounts.
There are many possible discounts for associated memberships, anti-theft alarms, low mileage etc. Be sure to ask what's available.
Raise your deductible.
If you can afford the first $500 - $1000 for a possible claim, increase your deductible higher than the standard $250.
Shop around.
Check out quotes from 5 or more companies and on online.

These are ways to get the best deals on car insurance. Remember that the insurance business is very competitive. They want your business long term. They also want to charge as much as they can.
Be sure you don't pay for more than you need!