Sunday, June 14, 2009

Rental Car Insurance and Credit Cards

Many credit card companies offer insurance on rental car, provided you pay for the rental car on your card. Check your credit provider to see if they offer the insurance, and what type of insurance it is. Combining this insurance with any that your car insurance provides may give you as much coverage as you want. Remember that using your credit card to pay for the rental car will lower your limit, which may be a problem if you plan on paying for the vacation with the credit card. Many rental companies will charge a deposit to your card; while the charge won’t be processed unless you damage the car, the amount will be reflected in your limit until the car is returned.

You Can Reduce Your Premiums

Insurance premium thrift is vital importance matter in a period of global economy crisis like now. Here are several other ways that you can save money on your car insurance:
• Many companies give a break to those who drive less than 7500 miles a year. If you take public transportation instead of driving to work, your can thrift the premium.
• Make sure you get all the discounts for safety feature such as alarm and airbag. Most companies give discount for safety feature. People who pass a defensive-driving course or don't smoke or drink often get discounts.
• Shop around. Compare and study offer that given by some insurance companies and select most appropriate with your need. There are some company that offer better rating, you will know it after shop. To make it easy to compare, find out information by phone or their computer online service.
• Insurance coverage decreases for old car. Claim only limited to "book" value, so you're not likely to get much anyway if you car is more than seven years old.
• Be a good driver. Avoid accidents and traffic violations and you will be rewarded with good-driver discounts.
• Drop coverage for such extras as towing costs or the expense of renting a car while yours is in the shop. The savings are probably small, but your new-car warranty's roadside assistance provision may provide them at no cost.
• If your group health insurance provides generous coverage, consider dropping the medical-payments portion of your policy.

Decide How Much Coverage You Need

It is dangerous if you are not insured. Without insurance, your property is put a risk in an accident. But, if you have many insurance can be an expensive mistake as well. Our big question is how much coverage do we need for insurance?

State law may require as little liability coverage as $15,000 per person, $30,000 per accident, and $5000 property damage. About half of the states require $25,000 per person and $50,000 per accident. Half of them require $10,000 in property damage coverage. If you can afford it, buy more than the minimum. After all, $10,000 for property damage may not be enough if you hit a $100,000 Mercedes-Benz.

The more asset you have, you need more coverage insurance to protect your asset. Most insurers suggest liability coverage of at least US$ 100.000 per person, US$300.000 per accident and US$50.000 for property damage.

There is no any best solution when you buy insurance. Rate varies widely. Surveys recommend that you could pay annually from US$ 500 to US$ 2.000 for the same coverage from different companies. Don't forget the Internet. Many companies now offer online quotes, and insurance shopping on the Web allows you to compare rates from multiple providers in the comfort of your own home.
t and US$50.000 for property damage.

Who You Are Affects Your Premium

Your age, gender and driving record are factors that you can least control may have the greatest impact on your insurance cost. Those factors are key that affect your insurance premium.

Single males under the age of 25 should pay the highest rates for the coverage. Insurance companies charge them very high because statistic shows they are involved in the most accident. But married men pay less than single men because statistically they have fewer accidents. There are fewer states do not allow rates based on sex or age.

Your premiums will likely go up if you are convicted of moving traffic violation, no matter what your age. Driver with clean record - no ticket no accidents - pay the lowest rates.

Your Vehicle Affects Your Premium

You might want to buy a luxurious sports car or a fancy SUV, but watch out; your insurance company may charge you more for such car to protect you while driving it.

Insurance premiums are based partly on the price of the car, which affect the replacement cost if it is stolen or get accident. More expensive the vehicle is to repair, the more expensive your insurance premiums.
The lowest premium for injury claims are from large vehicles such as pick up trucks. Small cars with 2-4 doors have highest injury claims.

If you plan to buy a sports car, you'll pay more for the insurance, it could be two or three times more expensive than amount for ordinary model.

Sport Utility Vehicles often have higher insurance rates than mid and full-size cars. SUV are "hot" for other reason: the are the most frequently stolen cars and the price are more expensive than most cars.
However, insurance companies set rates based on their own experience. If Company A has more collision and theft claims for a particular vehicle than Company B, then A will charge more for the same coverage. It all boils down to a company's actual experience with a particular vehicle or category of drivers. That is why it pays to shop around for insurance

Know Your Coverage Types

Is your car insurance actually insuring? Although you buy an insurance policy that covering a specific vehicle, several components make up the final cost:
• Bodily injury liability: Covers injury and death claims against you, and legal costs, if your car injures or kills someone.
• Collision coverage: Covers damage to your car up to its book value. Collision coverage carries a deductible, which is the amount per claim you have to pay before the insurance takes effect. The lower the deductible, the higher the premium. While it is legally optional, a lending institution or leasing company usually requires collision coverage.
• Property damage liability: Covers claims for property that your car damages in an accident.
• Medical payments: Pays for injuries to yourself and to occupants of your car. In several state, personal injury protection replaces medical payments as part of the basic coverage.
• Comprehensive (physical damage): Covers damage to your car from theft, vandalism, fire, wind, flood, and other non-accident causes. Comprehensive also carries a deductible.
• Uninsured motorist protection: Covers injuries caused to you or the occupants of your car by uninsured or hit-and-run drivers. "Under-insured" coverage also is available, to cover claims you may make against a driver who has inadequate insurance.

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