Insurance

Disability Insurance

2009-01-17T12:33:00.000-08:00

If you are injured or ill and are out of action for an extended period of time, then disability insurance is intended to make up a percentage of your income. Also known as income protection insurance, disability insurance varies in a great degree with some of the cheaper policies only covering you for a period of five years and better quality insurers making sure you are looked after until retirement age. Either way, if you become disabled, that will greatly impact your potential for income and disability insurance is your best way of staying solvent during this time.

Who needs disability insurance?
If you are not financial independent or able to maintain an income in the event of disability or long term illness then you should consider disability insurance. As disability insurance replaces your income can you afford not to pay for this disability insurance premium? There is no requirement by law to have this type of insurance but given the large number of issues that could arise without this insurance it is definitely an investment worth considering.

What typically does a disability insurance policy cover?
Disability insurance typically pays an income stream to you in the event of disability or long term illness. Disability is a broad term and covers a host of afflictions that would cause you to stop working. For the exact list of conditions that you are covered for, check with your potential insurer.

Most policies cover terms from 5 years up to retirement age. The payment level you receive is purely down to the premium you pay. The higher the premium, the higher the payment. Some insurers even include complementary health sessions as part of their package to assist your recovery. Insurers are beginning to offer more and more with disability insurance as they know the sooner you get fit and well, the sooner they can stop paying.

What typically does a disability insurance policy not cover?
A standard disability insurance will not cover disability or illness to a blue-collar worker. Blue collar workers are in a higher risk group so wont be covered by a basic policy. Normally, blue collar workers will have to pay a much higher premium to have the same kind of cover as a white collar worker.

Additional insurance products that policy holders might need in this area
Health insurance is crucial for the wellbeing of each and every person. Healthcare is getting increasingly expensive and without health insurance you can be broke, or worse still, unable to get the medical treatment you require in a timely fashion. Disability insurance normally takes time to establish as it is normally means-tested. Health insurance should fill the gap between your first diagnosis and your first disability insurance payment.

Additional coverage for a disability insurance policy
Disability insurance has two main variables, the length of cover and the percentage of income paid to you. Additional coverage amounts to the percentage of income you would like covered which generally has a top limit of 65%, and length of cover can reach to retirement age. By getting the full amount of coverage, your premiums will invariably go up.

What will disability insurance typically cost?
Disability insurance plans differ massively between insurers. Shopping for the most competitive rate available will end up costing you more money in the long run as your payout may only last a year.

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Motorcycle Insurance

2009-01-17T12:27:00.000-08:00

Motorcycle insurance broadly covers all styles of two-wheeled transportation on the roads including mopeds, touring bikes and high-performance sports motorcycles. Some companies can exclude some form of motorcycle as they may not fit within their risk category. As an example, conservative insurers may not cover modified motorcycles. They will normally have a modified motorcycle insurance plan, moped plan or scooter plan that can be taken as an alternative with a different set of inclusions.

Who needs motorcycle insurance?
Anyone who rides a motorcycle needs to have motorcycle insurance. It doesn’t matter if you are an occasional weekend rider or spend every day on your cycle, you need to be covered. The law for motorcycles is the same as for other motor vehicles.

What typically does motorcycle insurance policy cover?
Motorcycle insurance covers the motorcycle from damage caused by an accident as well as liability to other vehicles or injury caused to another party. Typically, you would make a claim through your motorcycle insurance policy in the same way you would an auto insurance policy.

You also get coverage for a number of accessories with are associated with motorcycle riding. As an example your helmet, leathers, saddlebags and backrest should all be covered. However, the insurance on these accessories is limited so if you have an expensive helmet or other accessory it is recommended to insure it separately.

You should receive roadside assistance as standard as well as a trip interruption payment to ensure you can get home if you are traveling interstate.

What typically does motorcycle insurance policy not cover?
Damage to your motorcycle caused by weather is not typically covered unless the damage is caused while the motorcycle is stored correctly (eg in a garage or a covered car park).

Damage to custom work completed on your motorcycle is also not covered unless you have stipulated to the insurer that the custom work has happened and have provided photographic evidence of the work. This is becoming increasingly common as more people are making large claims for custom work.

Damage caused to you by another party who is uninsured is not covered in the event of an accident. You normally have to request an ‘uninsured motorist’ inclusion.

Motorcycle insurance packages vary massively between states so check the policy carefully as it may different from the advertised package.

Additional insurance products that policy holders might need in this area
Motorcycle insurance tends to be comprehensive as it covers damage, public liability, roadside assistance, medical expenses and travel expenses. However, those expenses are limited to assisting you in that immediate moment. You may need more comprehensive medical insurance and roadside assistance policies to benefit fully from a claim.

Additional coverage for a motorbike insurance policy
As in auto insurance you can be comprehensively insured on your motorcycle but as a standard policy is so comprehensive there is no real extra coverage you need unless your state has any glaring omissions for their standard cover list.

What will motorcycle insurance typically cost?
Motorcycle insurance is determined by your experience, your auto record, the motorcycle you would like insured and the amount of cover you need. You could pay up to 5% of the value of your motorcycle per year as insurance but it is likely you will pay less than that as discounts are always offered for clean driving records, age, gender and a whole host of other reasons.

Travel Insurance

2009-01-17T12:21:00.000-08:00

Travel Insurance Guide

Travel insurance is a kind of insurance which is designed to insure travelers against all possible unforeseen circumstances and mishaps which can happen during their trips. Although still there are many people who consider travel insurance as well as any other type of travel insurance to be nothing else but waste of money, conscious travelers realize the necessity of purchasing travel insurance policy (an agreement between an insurer and policyholder) and travel insurance covers. Of course you can doubt the necessity of travel insurance, however you should remember that no one can predict whether some unexpected accidents will happen to you during your trip or not. In case you analyze how much time and effort you spend on all trip arrangements, you'll make sure that you need travel insurance in order not to spoil you trip with unforeseen expenses. Notice that the more remote your final destination is the more problems you can have, if something happens to you and you don't have travel insurance.

Firstly before buying travel insurance you have to understand clearly the reasons for this purchase. Secondly you should decide how much travel insurance will be enough for you and thirdly you should know how and where to shop around for travel insurance quote and policy which will meet your travel needs and budget. Reasons for purchasing insurance of this kind can be different, however all these reasons are closely connected with basic travel insurance coverages which are provided by majority of travel insurance companies:

1) Medical care expenses and existing medical conditions.

2) Medical evacuation and transportation in the event of serious illness or injury which cannot be treated in the country you stay in.

3) Accidental death and repatriation of dependants.

4) Loss, theft or damage of luggage and personal belongings.

5) Loss and theft of documents and cash.

6) Loss/theft/damage of rented car.

7) Liability for damage caused to a third party and legal assistance.

8) Trip delay/interruption/cancellation.

All above-mentioned situations cannot be foreseen and can happen to any traveler and result in serious unplanned expenditures. Moreover if you analyze these reasons and coverages properly, you will be able to decide how much travel insurance you need. In case you have neither medical insurance nor life insurance, we recommend you to purchase comprehensive travel insurance, which includes all available coverages.

Another very important question is 'where to search for travel insurance'. In this very case Internet and compare travel insurance are the best tools which will help you not only to find travel insurance coverages you need but also make sure that your choice is the best.

See also: Winter Sports Travel Insurance

Winter Sports Travel Insurance

2009-01-17T12:06:00.000-08:00

If you missed out on a summer vacation this year then perhaps you’re looking to hit the slopes this Christmas for a more active kind of break. It’s true that many people are tempted to forget the daily stresses and strains of work and home for a few days in blissfully dramatic mountain scenery, on a concoction of snow, speed, blinding sunlight and après-ski social fun. Whether going with your partner, your family or a big group of your friends, skiing is a great way to celebrate the winter season, but before you embark on your big icy adventure it’s important to make sure that you are comprehensively covered by the right kind of travel insurance. With the huge amount of choice available, it can be intimidating to trawl through the multitudinous travel insurance companies to find out who has the best deal, so here are a few handy hints to cut down on the leg work and to find you the best offers.

Firstly, it’s important to consider what you require from your travel insurance. If you are planning to take your own skiing or snowboarding equipment then you will need to ensure that this is included on the policy for breakage, loss or damage. If you’re planning to hire equipment on arrival then the insurance for this is usually included in the hiring price. If you’re travelling with a family you’ll need to check that people of all ages are included on the winter sports policy and if you’re working on a tight budget you might want to consider your location as not only are some resorts vastly more expensive than others, but your choice of location can also affect the cost of your travel insurance.

Some travel insurance companies do include a certain amount of winter sports cover on their annual policy so if you’re planning to make several trips this year that could be a quick way to save some cash. However, it’s crucial that you carefully check all the small print to make sure that you’re not losing out on effective cover. Perhaps excess fees are higher or medical expenses cover isn’t quite as much – these are all important things to be aware of.

Websites such as MoneySupermarket.com will also help cut down the time you spend looking for your perfect insurance deal. Covering insurers from AA Travel to Insure Direct, it is sure to find some of the best travel insurance deals for you. Above all, be sure to feel secure in your insurance. Be satisfied with the cover that it offers you and you’ll have a much more enjoyable break.

See also: Travel insurance

Dental Insurance

2009-01-17T08:43:00.000-08:00

What is dental insurance?

It’s no secret that dental treatment costs can be quite expensive. Dental insurance offers a way to access high quality treatment through insurance plans involving monthly or annually payments. These plans may cover the entire family or only certain members of the family. The aim is to provide cover for all kinds of dental treatments, including preventative treatment, minor or major treatment.

Dental health insurance policies may cover only NHS dental treatments, or both private and NHS dental treatment.

Generally, your dental insurance plan will include limits that can be paid for a particular treatment, as well as a special limit for the total amount payable for that treatment during a period of one year. The cover may also extend to include dental emergencies. When you undergo treatment you pay the dentist, and then file claims to get the money back from your dental insurer.

Types of Dental Insurance Plans

There are a vide variety of dental plans available with a range of premiums. These premiums can depend on the age of the applicant, and can differ greatly. Check ups are not really necessary before the setting of a premium.

Benefits of Dental Insurance
Dental insurance allows you not only to claim back the money that you spend on your dental treatment, but also allows you to choose your dentist. You can claim dental expenses, regardless of whether you use a private dentist or a NHS dentist, although this may depend on the kind of dental plan you are covered under, and the insurer.

Dental Insurance Coverage
Although dental plans cover all major and minor treatments, they do not cover dental implants, treatment of injuries sustained during sports, cosmetic and orthodontic treatment, oral cancer treatment, salivary gland treatments and treatment of severe dental abscesses.

They also do not pay the entire cost of the dental treatment. Most only pay up to 75% of the total cost of treatment, and may place a maximum annual cap on the amount payable. Your policy will also have a fixed maximum annual pay out. Most plans will require you to enroll for cover at least 3 months before claiming expenses, but this differs according to the insurer.

Types of Dental Insurance plans
You can choose a capitation scheme where you are required to pay every month. This scheme covers dental check ups, X-Rays and tooth extractions. You don’t have to settle a bill every time you take treatment, and the premium can be set after a dental consultation. The disadvantage here is that you can only receive treatment from dentists who have also signed up for a capitation scheme.

The premium depends on several factors, including your dental health. These plans are best suited for those who need regular treatment, and are therefore looking to spread treatment costs.

You can choose one of two types of capitation plans:

1. Maintenance plans give you cover for two oral hygiene check-ups, including X rays and two dental examinations every year. There may be an initial signing up fee, and you may be entitled to discounts on other treatments.

2. Comprehensive Dental Insurance Plans - If you want unlimited treatment, then a comprehensive plan is for you. You will be charged a monthly fee which depends on your oral health. The better your dental health, the lower the fee.

Cash plans provide partial cover for dental treatment, besides general health screening and other treatments. Here, the cover provided can be between 50 to 75%.

Eligibility for Dental Insurance
Most insurers will insist that you have no dental work pending, and that you have reasonably good dental health. Some may even ask you to declare in writing that you visit a dentist regularly for a check up.

Cargo Insurance

2009-01-07T00:32:00.000-08:00

What is cargo insurance?
Cargo insurance (also called marine cargo insurance) covers physical damage to, or loss of yourgoods whilst in transit by land, sea and air and offers considerable opportunities and costadvantages if managed correctly.Unfortunately, many UK traders do not want to become involved in arranging this type ofinsurance because they feel they do not have sufficient knowledge. They see it as anunnecessary expense involving extra administration, and make the mistake of allowing suppliersor customers to control this vital area of business. This loss of control not only increases thedifficulties of implementing an effective trade risk management strategy, but can also have farreaching effects on profitability. Fortunately, this attitude is changing, with more and more companies following the lead of manyof the 'blue-chip' manufacturing and trading giants of the UK economy who tend to take fullcontrol of this type of insurance.When you are looking at the types of cargo insurance available, you may come across the termGeneral Average. This is one of the oldest principles of cargo insurance and relates only toocean and sea voyages but is still relevant in today's trading environment. General Averagecovers the situation where damage or loss of certain goods occurs so that the remaining cargoand the means of transport are saved. For example goods may sustain water damage during firefighting. In this situation, if General Average is declared, all the parties involved must contributeto covering the loss. Cargo insurance is usually provided by the means of one of three Institute Cargo Clauses - A, Bor C, plus War Clauses and Strikes Clauses. Simply put Cargo Clauses A provide the most coverwith B and C giving less coverage which is reflected in reduced premiums for the lower cover(somewhat similar to car insurance cover with comprehensive, third party, fire and theft, and third party policies). Also there is an Institute Cargo Clauses (Air) for movement by air, which isequivalent to the A clauses. Your insurance company or broker will be able to give details ofexactly what cover is given by each clause so you can choose the most appropriate for yourbusiness needs and trading patterns.

Why do traders need cargo insurance?

Exports
Many major UK exporters and trading companies sell on Cost Insurance and Freight (CIF) orsimilar terms, which allows them to arrange marine cargo insurance in the UK - usually on an'open cover' basis. Because this insurance cost is legitimately passed on to the customer, whoalso gets the benefit of the insurance, this virtually amounts to free insurance which the exportercontrols.Many foreign buyers see this as essential service provided by the exporter, given that cargoinsurance rates in UK are often cheaper than those available to the overseas customer in hislocal market. Indeed, exporters who do not provide a 'package' which includes insurance, canlose business to competitors who do. The other side of the coin is where UK exporters allow their customers to arrange the insurance.This can range from selling on Ex Works terms to exporting on Free on Board (FOB) or Cost andFreight (CFR) terms. An Ex Works sale represents the minimum obligation for the seller, who hasmerely to make the goods available at his premises for collection by the buyer's designatedcarriers. However, what tends to be overlooked is that the exporter is totally reliant on the buyer arrangingadequate insurance on goods which have probably not been paid for. If the goods arrivedamaged or if the buyer's insurance does not cover the loss, the exporter may not receivepayment. Additionally if the goods or shipping documents are rejected on arrival at destination,the insurance risk can often revert to the exporter who may not have taken out any insurance.

Imports
Many importers assume that the suppliers are including the marine cargo insurance for freewhen, in fact, the cost is included in the purchase price. In addition, obtaining information fromsuppliers about these costs and whether they are being loaded can prove difficult.Another important issue is the type of cover being provided - is it comprehensive 'all risks' or just'total loss' only? Is it on a warehouse to warehouse basis or just warehouse to UK port? Withoutthis information, importers may not realise they are paying too much for insurance which doesnot meet their needs, and may leave them with uninsured exposure. A further issue is who is actually insuring the goods? The security of some overseas insurersmay not compare favourably with the security of insurers in the highly regulated UK market. Inthe event of goods arriving damaged in the UK, the importer will probably deal with the UK agentof the overseas insurance company - an agent who will be working for the insurer, not theimporter. This can lead to delays in processing and settling claims.If the importer takes control of cargo insurance they can arrange the necessary cover in the UKmarket, which is often more comprehensive and price competitive than in overseas markets.

What types of cargo insurance are available?

Open Cover
This is the most usual type of cargo insurance, where a policy is drawn up to cover a number ofconsignments. The policy can be either for a specific value that requires renewal once theinsured amount is exhausted or an permanently open policy that will be drawn up for an agreedperiod, allowing any number of shipments during this time.

Specific (Voyage) Policy
Although not the norm for cargo insurance, you may from time to time need to approach aninsurance company (or broker, or other intermediary) to request an insurance policy for aparticular consignment. This is usually referred to as Voyage Policy as the insurance covers onlythat specific shipment.

Contingency (seller's interest) insurance
As an exporter you may often sell goods on terms where your customer (as the importer) isresponsible for insuring (or at least bearing the risk of damage of or loss to) the goods, forexample under FOB and CFR Incoterms 2000. In these cases you are exposed to the risk ofdamage to the goods while in transit and your customer refusing to accept them. In the worsecase your customer may not have insured the goods. If this happens and your customer attempts to avoid liability, you could seek redress through thelegal system. However, this can prove very expensive, and may often be pointless. Seller'sinterest insurance, usually for a small premium, will cover you for this contingency. For validcommercial reasons you may not wish your customer to know you have taken out such a policy.

Where can I get cargo insurance?

You can obtain cargo insurance direct from an insurance company, or some freight forwardersand other trade service intermediaries. Also you may find that your bank will offer cargoinsurance as part of a trade finance package. However, best practice adopted by manycompanies has shown that using a specialist (marine) cargo insurance broker provides value-added services when arranging cover and gives additional benefits when dealing with any claimsand settlement procedures. The British Insurance Brokers’ Association (BIBA) has a search toolto help you to identify insurance brokers at http://www.biba.org.uk/consumer/findbroker.asp.SITPRO does not sell cargo insurrance or recommend insurers.

What other options are open to me?

There are several other ways to approach the risk involved in the physical movement of thegoods you trade across international borders:
• do nothing and carry the risk yourself. If an incident occurs resulting in damage or loss to thegoods you could take action against the carrier. But you should remember that carrier liabilityis strictly limited by internationally agreed conventions. Also you will need the expertise andperseverance to sustain a successful claim. This could have an impact on your business;
• as an exporter you can let your customer insure the goods;
• as an importer you can let your supplier insure the goods.

The factors you must consider for either of the final two options have been described earlier inthis Briefing;

How much will it cost me?

Like all insurance cover (premises, employer's liability, credit) you will have to pay for your cargoinsurance services. Premium is usually calculated according to the value of the consignment(plus a percentage mark up for profit margin), the type of goods (danger or hazard) and otherspecific risks (mode of transport, route, destination, etc.) from the insurer's perspective. As withall insurance cover, you should spend time researching the market and getting quotes from arange of cargo insurance providers.

Conclusion

More and more companies recognise the long term advantage of buying cargo insurance in theUK and using the services of specialist cargo insurance brokers. If you are a small or mediumsized trader you need to look more closely at this area of your international trading operations.You could reap benefits for your business through enhanced protection of your interests,improved international trade administration, better trading relationships and increasedcompetitiveness, resulting in greater profitability.

Pet insurance

2009-01-03T04:48:00.000-08:00

Pet Insurance pays the veterinary costs if one's pet becomes ill or is injured in an accident. Some policies will also pay out when the pet dies, or if it's lost or stolen.

The purpose of pet insurance is to mitigate the risk of incurring significant expense to treat ill or injured pets. As veterinary medicine is increasingly employing expensive medical techniques and drugs, and owners have higher expectations for their pets' health care and standard of living than previously, the market for pet insurance has increased.

How policies work

Many pet owners believe pet insurance is a variation of human health insurance; however, pet insurance is actually a form of property insurance. As such, pet insurance reimburses the owner after the pet has received care and the owner submits a claim to the insurance company.

UK Policies usually pay 100% of vets fees. Policies in the USA usually offer to pay 80-90%[citation needed] of the costs minus a deductible depending on the company and the specific policy. The owner will usually pay the amount due to the Vet, and then send in the claim form and receive reimbursement, which some companies and policies limit according to their own schedule of necessary and usual charges. In the event of a very high bill, some veterinarians will allow the owner to put off payment until the insurance claim is processed. Some insurers pay veterinarians directly on behalf of customers. Most U.S. policies require the pet owner to submit a request for fees incurred.[citation needed]

Traditionally, most pet insurance plans did not pay for preventative care (such as vaccinations) or elective procedures (such as neutering). Recently however, some companies in the UK and US are offering routine care coverage, or some times called comprehensive coverage.

In addition, companies often limit coverage for pre-existing conditions in order to eliminate fraudulent consumers, thus giving owners an incentive to insure even very young animals who are not expected to incur high veterinary costs while they are still healthy.

Some insurers offer options not directly related to pet health, including covering boarding costs for animals whose owners are hospitalized, or costs (such as rewards or posters) associated with retrieving lost animals. Some policies also include travel cancellation coverage if owners must remain with pets who need urgent treatment or are dying.

Some UK policies for dogs also include third party liability insurance. Thus, for example, if a dog causes a car accident that damages a vehicle, the insurer will pay to rectify the damage for which the owner is responsible under the Animals Act 1971.

Glossary

'Benefit schedule' – a document created by a pet insurance company that lists allowances paid for a given diagnosis and treatment.
'Deductible' - an amount that must be paid by the policy holder in a pet insurance policy for covered veterinary services. Higher deductibles usually translate to lower policy premiums.
'Exclusion' - a condition that is excluded, or not covered under a pet insurance policy.
'Policy Limits' - there can be several types of policy limits applied to a pet insurance policy. When a policy limit is reached the policy will normally no longer pay applicable claims. Typical policy limits are lifetime, annual and per-incident.
'Pre-certification' – when a pet owner to submits a requested treatment to their pet insurance company to see if the treatment will be covered, and at what benefit level.
'Pre-existing condition' - an injury or illness that occurred before the pet insurance policy became effective. Some pre-existing conditions are eligible for coverage after being cured and a specified period of time elapses. Other conditions cannot ever be covered regardless of time elapsed.
'Coinsurance' - the percentage of your claim for which you are liable before any applicable deductible is applied.

Health insurance

2008-12-23T23:08:00.003-08:00

Health insurance policies by the National Health Service in the United Kingdom (NHS) or other publicly-funded health programs will cover the cost of medical treatments. Dental insurance, like medical insurance, is coverage for individuals to protect them against dental costs. In the U.S., dental insurance is often part of an employer's benefits package, along with health insurance. Most countries rely on public funding to ensure that all citizens have universal access to health care.

Othere related insurances: Life insurance, Dental insurance

Most poppular: United States

Home insurance

2008-12-23T23:08:00.001-08:00

Home insurance provides compensation for damage or destruction of a home from disasters. In some geographical areas, the standard insurances excludes certain types of disasters, such as flood and earthquakes, that require additional coverage. Maintenance-related problems are the homeowners' responsibility. The policy may include inventory, or this can be bought as a separate policy, especially for people who rent housing. In some countries, insurers offer a package which may include liability and legal responsibility for injuries and property damage caused by members of the household, including pets.

Also knows as: Real Estate Insurance, Property Insurance

Auto insurance

2008-12-23T23:07:00.001-08:00

Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy. Auto insurance provides property, liability and medical coverage: (1) Property coverage pays for damage to or theft of your car. (2) Liability coverage pays for your legal responsibility to others for bodily injury or property damage. and (3) Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses. An auto insurance policy is comprised of six different kinds of coverage. Most states require you to buy some, but not all, of these coverages. If you're financing a car, your lender may also have requirements.

Most auto policies are for six months to a year. Your insurance company should notify you by mail when it’s time to renew the policy and to pay your premium.

How policies work

If you own your own car, you probably already know a little about car insurance. You may have heard the words deductible or premium. But, do you truly understand the different parts of an auto insurance policy and do you know how to choose the best coverage?

Forty-seven states require that you have at least some kind of car insurance, so it's a good idea to know what the law requires you to have and what additional or optional coverage will help to protect you in the event of an accident.

Before purchasing auto insurance, you must consider a variety of factors including what kind of car you have, your driving record and the amount of money you are willing to pay. Understanding the simple basics of auto insurance will make you confident that the car insurance policy you choose will take care of your needs in the event of an accident.

In this article, we will walk you through the types of coverage that insurance companies offer and discuss possible insurance needs. Additionally we will look at what affects the price of auto insurance, how to bring the costs down and how to understand the components of your policy.

Types of Coverage

Everyone who drives needs car insurance. In fact, most states require it by law. When you buy car insurance, you are buying what is called a policy. Your policy is based on a variety of factors including what kind of car you drive as well as what kind of insurance you want. Auto insurance policies are actually a package of different types of insurance coverage.

The first step in understanding an auto insurance policy is to learn the various types of coverage insurance companies offer. Some of this coverage may be required by your state and some of the coverage may be optional.

Liability - This coverage pays for accidental bodily injury and property damages to others. Injury damages include medical expenses, pain and suffering and lost wages. Property damage includes damaged property and automobiles. This coverage also pays defense and court costs. State laws determine how much liability coverage you must purchase, but you can always get more coverage than your state requires.
Collision - This coverage pays for damages to your vehicle caused by collision with another vehicle or object.
Comprehensive - This coverage pays for loss or damage to the insured vehicle that doesn't occur in an auto accident. The types of damages comprehensive insurance covers include loss caused by fire, wind, hail, flood, vandalism or theft.
Medical Coverage - Pays medical expenses regardless of fault when the expenses are caused by an auto accident.
PIP - Personal Injury Protection (PIP) is required in some states. This coverage pays medical expenses for the insured driver, regardless of fault, for treatment due to an auto accident.
Uninsured Motorist - Pays your car's damages when an auto accident is caused by a driver who doesn't have liability insurance.
Underinsured Motorist - Pays your car's damages when an auto accident is caused by someone who has insufficient liability insurance.
Rental Reimbursement - This type of coverage will pay for a rental car if your car is damaged due to an auto accident. Often this coverage has a daily allowance for a rental car.

Many insurance policies combine a number of these types of coverage. The first step in choosing the insurance you want for your car is to know the laws in your state. This will tell you the minimum insurance you need for your car. It's good to keep in mind that, just because your state may not require extensive insurance, extra coverage may be worth the expense. After all, no one wants to be stuck with thousands of dollars worth of bills because of an auto accident.

The Price of Auto Insurance

There are several factors that affect the price of auto insurance. Of course, prices vary by company and you should compare prices thoroughly before you purchase a policy. The first thing that affects your policy's price is, of course, what kind of car you drive. For instance, a sports car costs more to insure than a family sedan. If you purchase a vehicle that has a high theft rate, your coverage will probably be more expensive. Essentially, though, your coverage will be based on the value of your car.

Another factor that affects auto insurance costs is where you live. If you live in an area where there is a high occurrence of accidents or vandalism, insurance will cost more money. For instance, since more cars are damaged in urban areas than in rural areas, you will probably pay more for insurance if you live in a city.

How often you drive will also affect your insurance costs. The more you drive, the higher the chances you will be an accident. Drivers who have long-distance commutes will pay more than people who live near their workplace. Meanwhile, if you only use your car on weekends, your insurance rates should be lower than someone who commutes to work daily.

The final factors that affect the price of auto insurance have to do with who you are. Your age, sex, marital status and driving record are all taken into account when you buy an insurance policy. Accident rates are higher for drivers under the age of 25, so if you are young, expect to pay a little more. Also, accident rates are higher for young males and single males. It doesn't seem fair, but if you are an unmarried 19-year-old male, your insurance rates will definitely be affected. If your driving record is impeccable, though, your rates will be lower. Obviously, drivers who are prone to traffic violations or accidents will have to pay more for insurance than safe drivers.

If these cost factors are beginning to scare you, don't worry. There are several ways to keep your insurance rates down.

Bringing the Costs Down

There are four main factors that can keep auto insurance rates down. See if you fall into any of the following categories. If you do, you may be able to save money on your car insurance regardless of the value of your automobile.

If you are looking to buy a car, consider buying a car that "looks good" to insurance companies. For instance, insurance companies know what kinds of cars are prone to problems. They also know what kinds of cars are most often stolen. If you haven't purchased your car yet, find out what cars make this "good list" among auto insurers.
Most insurance companies offer discounts for a variety of reasons - for example, good students, having more than one car insured and accident-free driving are all worth a discount. Ask insurance companies about specific discounts that may be available to you.
Consider carpooling or using public transportation to get to work. The less you use your car, the less your insurance will cost you.
Finally, drive carefully! Insurance companies are not happy to insure accident-prone drivers, so the safer you drive, the less you will have to pay for auto insurance.

Remember, don't be afraid to ask your insurance company about any discounts they offer - it could save you a little cash.

Glossary

Deductible - The amount an insured person must pay before the insurance company pays the remainder of each covered loss, up to the policy limits.
Multi-Car discount - A discount offered by some insurance companies for those with more than one vehicle insured on the same policy.
No-Fault Insurance - Many states have enacted auto accident laws permitting auto accident victims to collect directly from their own insurance companies for medical and hospital expenses regardless of who was at fault in the accident. Although there are many legal variations of no-fault insurance, most states still allow people to sue the party at fault if the amount of damages is above a certain state-determined amount.
Personal Auto Policy - The most common auto insurance policy sold today. Often referred to as "PAP," this policy is written in simple wording and provides coverage for liability, medical payments, uninsured/underinsured motorist coverage, and physical damage protection
Split Limit - Any insurance coverage with separately stated limits for different types of coverage.
Term - The length of time for which a policy is in effect.
Usage - This refers to the primary function or purpose of your vehicle. For example, if you primarily drive your car to and from work, the usage is considered "commute.

Also known as: Vehicle insurance and Car Insurance

Most poppular in: United Kingdom (UK)

Insurance - fundamentals

2008-12-23T23:05:00.000-08:00

According to Wikipedia Insurance is:

Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss.

More information about insurance will be added soon.

We will discuss things about auto/car insurance, home/property insurance, travel insurance, health/life insurance credit/financial insurance, cargo insurance and many more.

Also we will make a list of all major insurance companie and their different offers.