Getting Temporary Car Insurance for Permanent Drivers

Getting Temporary Car Insurance for Permanent Drivers


               

         

   

       

 

By itself auto insurance is confusing enough for many people. Throwing in a wrinkle like temporary car insurance may be a bit much. But relax, temporary car insurance is quite specialized and really isn't that scary.

As the name implies, temporary auto insurance is a policy designed to be in force for a short period of time and for a certain occasion. Terms for policies are usually measured in days or weeks. Temporary car insurance shouldn't be confused with things like non-owned auto insurance, which is a full-term auto insurance policy that covers a driver instead of a vehicle.

Temporary Car Insurance for Rentals

Although there are other uses for it, the most common application of temporary car insurance is in a rental situation. Rental temporary auto insurance is not true car insurance as much as it is an agreement between you and the rental company for that company to reimburse you for damages. It's an added charge to your rental and always presented as an upsell.

Many insurance companies will automatically cover you at least partially in a rental car as long as you stay in the United States or Canada. Temporary car insurance offered by the rental company may pick up the slack, or may be completely unnecessary.

If you plan to rent a car in the near future and are unsure of your coverage, consult with your insurance agent before renting. It could save you quite a bit in unnecessary rental car charges. If you do rent, plan on an extra $6 to $12 a day in rental charges - not cheap if you annualize that premium.

If you're driving in any other country, however, you want to seriously consider taking the rental company's temporary car insurance. Apart from Canada, most American auto insurance policies exclude international coverage in general and coverage in Mexico in particular. The chances are very good indeed your car insurance back home won't be there when you get off that international flight. That rental auto insurance may be the only thing between you and an unfortunate international incident should you get in an accident.

Temporary Car Insurance in Mexico

Another common application of temporary car insurance involves driving south of the border, even if it's your own car. Unlike in Canada, where your local auto insurance policy is valid and generally recognized by local authorities, legally driving in Mexico carries an entirely different set of requirements.

American insurance companies don't do business in Mexico or sell Mexican auto insurance. You will have to strike out on your own to get the coverage you need.

Temporary Mexican car insurance may be available through your agent by way of an insurance brokerage, online, or through an agency based close to the border. When purchasing temporary auto insurance for use in Mexico - and especially when dealing with agents or firms you don't know - be sure you're actually getting Mexican auto insurance. Also be sure you're not paying too much.

There are several reputable Mexican insurance companies to choose from including ACE Seguros, HDI Seguros, Grupo Nacional Provincial and others. Don't be afraid to do some research on these companies as many have A. M. Best ratings for financial security just like their American counterparts. "Seguros," incidentally, is Spanish for "insurance."

Now that you have your Mexican insurance, you're just about halfway done. You also need to get a Mexican tourist visa and a "Temporary Vehicle Importation Permit" for your automobile. Although this permit isn't required in Baja California and parts of Sonora in the northwestern part of the country, don't even think about driving without it elsewhere in Mexico. If you're caught without one, your car will likely be confiscated and you might find yourself spending time behind Mexican jail bars.

The visa and permit are available at the customs port of entry at the border or at a Mexican consulate. An English-language online application for the permit is also available, which will help you save time at the border. All told the total investment for driving in Mexico will run you several hundred dollars, however much of that is a deposit on the permit. You'll get the deposit back when you surrender the permit upon returning to the United States.

Article Source: http://EzineArticles.com/5962581

How Car Insurance Companies Calculate Your Premium

How Car Insurance Companies Calculate Your Premium

How your insurance premium is calculated depends on various factors. Some of the factors can be determined or selected by you, but unfortunately most of the factors such as your age, where you live or your marital status are out of your immediate control.

               

         

   

       

 

Gone are the days where only a few basic parameters determined the rate you pay. Insurance companies has come a long way and nowadays, the criteria for calculating insurance premiums has changed significantly and includes several complex parameters that are being considered to determine the premium rates. In this article we explain the main factors that influence the insurance premium that you pay for your car.

THE VALUE OF THE CAR

Insurance companies usually covers vehicles at their 'Market value', except if requested or stated otherwise. The 'market value' of a car revers to the average between the trade-in and retail price.

The trade price is the price a second hand auto dealer will pay for a used vehicle whereas the 'retail price' refers to is the value that the car 'retails' for if you were to buy it from an auto dealer. The 'trade price' off a vehicle is basically the lowest value of a used car, and the 'retail price' can be seen as the highest valuation of a used car.

Market value is calculated with this formula: Market value = (Trade value + Retail value) / 2

The premium is then calculated based on the car's market value, which takes into account the make and model, age, condition of the vehicle and the resale value, and the value of all additional accessories.

MAKE / MODEL OF THE CAR

Types of cars vary greatly - from Luxury SUV's, a family sedan to a contractor's faithful old bakkie. It can hence be expected that the make and model of a vehicle have a big influence your car insurance premium. Some vehicles would cost a lot more to repair while other cars could be more at risk of being stolen or hijacked. Remember, each car make / model has its own claim record and the insurer calculates the vehicle premiums based on its own claim experience.

The age of the vehicle will have a definite influence. Older cars are often cheaper to insure than their more modern counterparts. Older, second hand cars may be less expensive to replace, but it may be difficult to get parts for the vehicle. Big engine capacity, high speed and younger drivers are usually associated with sports cars and will raise the premium significantly whereas safety features offered with a particular vehicle would in turn positively influence your premium.

TYPE OF INSURANCE / COVER

Two main types of car insurance cover exists in the market and some variations of the two main types. Comprehensive insurance is very extensive and covers injury to other people or damage to their vehicle / property in an accident as well as your own vehicle for accidental or other damages, theft and hijack, and some 'acts of god'. It is therefore the most expensive type of car insurance.

Third party insurance is quite limited and is also the cheapest of the options. Generally, it covers you for damage to another party's vehicle and costs associated with the accidental death or injury of third parties involved in the same accident, but you are not covered in any way.
Some insurance companies may also provide a discount on your car insurance if you also maintain other policies, such as homeowners' or life insurance with the same firm.

WHO YOU ARE PLAYS A BIG ROLE

AGE

As you get older, seek out discounts at the ages of 21, 25 and even 55 which is common milestones where insurers consider a statistical reduction in the risk of a driver. When turning 60, you may be eligible for still more discounts. Check to see if your insurer offers a discount for retirees.

If you have kids below the age of 21, insure them on the parents' policy rather than a separate policy to save costs. Insuring a teen driver can be expensive, but teenagers who maintain a very good school average (Usually at least a B-average) could qualify for significant discount. Never list yourself as the main driver on a teenage driver's policy if you are not - This is known as fronting and can nullify your insurance cover with the company.

GENDER

Single males under the age of 25 are considered the highest risk and pay the highest rates. Statistics show that male drivers are involved in more accidents and female drivers, so insurance companies charge young men higher premiums than women of the same age.

OCCUPATION

Many car insurers consider education and occupation when they set rates. Even though they usually do not publicise exactly how much a premium is affected by this, specific discounts are offered for people who work in or have degrees in particular fields.
Vehicle insurance companies have found that people in the following fields are statistically less risky than other occupations:

• Educators: College professors and school teachers
• Medical professionals: Doctors, surgeons, dentists and other
• First responders: Police officers, fire-fighters and emergency medical technicians
• Scientists: Any field with suitable degree
• Engineers: A bachelor's or higher degree in Engineering or Architecture
• The Military: Active or retired military-related associations, Pilots

MARITAL STATUS

Most insurers factor your marriage status into their risk equations. Those who are married are viewed by some insurers as less risk prone, and qualifies for a discount.

EDUCATION

Almost all insurers will offer a discount to anyone with tertiary schooling, particularly persons with a degree are considered less risky than those without one. Some insurers might even offer further discounts to alumni of certain universities.

DRIVING / CLAIM HISTORY

Drivers with a good driving record with little or no previous claims may benefit when they purchase a vehicle insurance policy by receiving lower premiums. First-time drivers or drivers with no history on South African roads could expect a higher premium until they build up a reputation as a responsible driver.

WHERE YOU LIVE

Where you live and work plays a big role in the cost of you insurance premium. Urban areas, with greater population densities and heavier traffic, get higher rates than rural areas. Your specific neighbourhood or whether you live in a secure housing complex also plays a role. If your car is kept in a locked garage at night where you live or in a secure basement during the daytime where you work, you would see a reduced premium rate.

SECURITY FEATURES

The premium may be reduced if the vehicle is fitted with security features. Cars fitted with anti-theft systems such as GPS Tracking devices, visible wheel, steering locks or ignition cut-off anti-hijack systems are less likely to be stolen, and hence less expensive to insure against theft.

BUSINESS VS PRIVATE USE

If you use your car for business regularly, you would inevitably have a higher annual mileage rate. Higher than average mileage rates increases the chance of being involved in an accident which translates into higher risk to an insurer and your premium would be adjusted accordingly.

EXCESS AMOUNT

Most insurers allow you to negotiate the amount of the excess you are willing to pay. This means you can undertake to bear a fixed amount of the loss for every claim, and hence get a substantial discount on your premium. Generally, the higher the 'excess payment' value that you agree for, the lower your premium will be.

NO CLAIM BONUS

Insurance companies usually offer a 'no claim' bonus to policy holders who maintains a 'clean record' for a specific period of time. The longer the period you have not claimed, the greater the discounted premium you can expect to pay.

CREDIT RECORD

Insurers also make use your credit score as part of the criteria for calculating your insurance premium. Insurance companies see people who take good care of their financial situations, as typically a more careful type of driver. Commonly, the better your credit score, the lower your insurance premium will be.

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How to Buy Classic Car Insurance

How to Buy Classic Car Insurance

Collector Car Insurance and Classic Car Insurance

If you are fortunate enough to own a classic car - or any collectible automobile - then you want to ensure that your luck does not run out because of having inadequate insurance coverage. Call it covering your butt - or covering your "asset" - but by all means, call one of the major providers such as American Collectors, Haggerty, or Parish Heacock insurance companies and let them put you in the driver's seat in terms of professional protection of your cherished automotive investment.

How to Kick the Tires on Classic Car Insurance

The whole idea of insurance is that it needs to do what you expect of it in an emergency, when the rubber really hits the road. And classic car insurance is as different from conventional auto insurance as, well, a classic car is from your run of the mill generic vehicle.

When you buy a classic car insurance policy, you are essentially purchasing protection for those times when - God forbid and knock on wood it doesn't happen - disaster strikes in the form of a fire, a collision, or an act of theft or vandalism. Just as we now have modern airbags to save us in the event of a crash, we also have collector's car insurance, to protect us with adequate moneybags when calamity throws a wrench in the works.

The time you invest in choosing the right classic car insurance coverage is well worth the value and peace of mind that a quality collector's insurance policy delivers for owners of classic motor cars.

The Nuts and Bolts of Classic Car Insurance Coverage

Collector car insurance is not the same as the insurance you buy for normal coverage of your daily transportation. Collector car insurance, or classic car insurance, is made especially for the needs of the car collector. And while ordinary insurance does offer some protection, no matter what you drive, it can leave you high and dry in the event of a loss that it not effectively covered by the terms of the insurance contract.

For example, you may have a garage-kept Cadillac Sedan DeVille with swooping fins your grandparents bought for $7,000 brand new back in the 1960s. But dealers have offered you three times that much, and you saw another one sell at an auto show for $35,000. If you don't have special collector car insurance or classic car insurance, and the car is totaled, you will be lucky to get $7,000 for it. With depreciation calculated in, the insurance statisticians may decide that it is worth only half that much, or less, and you could wind up with two or three grand in exchange for your dream machine.

Stipulations or requirements normally encountered while shopping for collector car insurance or classic car insurance:

• A decent driving record.
• At least 10 years driving experience
• No teen drivers on the policy or drivers with poor driving records
• Secure and out of the weather garage
• Proof that you have another car for daily transportation
• Collector vehicle insurance is sometimes limited by the age of your car, and if your car is too young it may not qualify for a particular policy.
• Limited mileage. You probably don't want to drive your creampuff car all the time, and your insurance company doesn't want you to either. Mileage limits have increased recently, though, so if you can live with 250 miles a month you're probably okay.

Coverage with collector car insurance or classic car insurance: Three kinds of value are important to understand when buying your policy. 1) Actual cash value: This is what you usually get with ordinary insurance, and is based on replacement cost minus depreciation.

2) Stated value:

The insurance company pays up to the stated value of the car, but may not guarantee the full stated value. And deductibles of up to $1,000 usually apply.

3) Agreed value:

In most jurisdictions, those who provide collector car insurance or classic car insurance are allowed to insure for a value that you and your insurer agree upon. And for most autos, there is no deductible. If your $100,000 vintage Rolls get trashed, you get a check for 100 grand, plain and simple - which is exactly why collectors use special classic car insurance coverage.

Do a periodic review of your coverage limits, because classic car prices are rising. What you insured your cherry classic for ten years ago may be a fraction of what it's worth today. And if you are restoring a vehicle, ask your agent to give you appropriate insurance. There is no need to pay extra based on mileage statistics, if your car is up on blocks with no engine inside it. And as the car's value increases thanks to your hard work of restoring it, you should raise the coverage to keep up with the added value of the restoration.

Keep all your receipts and paperwork - for everything from parts and labor to expenses incurred to take it to a classic car show - so that you can document the total investment your collector's car represents. And take photos and keep them updated, for the same reason. And Last But Not Least: Special Savings Opportunities

As long as you meet the criteria in terms of how you use and take care of the car, you can usually buy a policy.

Traditional insurers will either refuse coverage, offer only a replacement value based on the nuts and bolts (minus heavy depreciation) of the car, or will charge you a prohibitive amount for the premium. But many collectors find that special collector's coverage saves them money - as much as half - while insuring them for higher limits, sometime three or four times what a traditional company gave them.

Yes, it's possible to get collector's insurance coverage for full market value for your car, and save up to 50 percent off of the premium you'd pay with ordinary insurance. That makes classic car insurance a must-have for any serious car buff.

Below is information about three of the most reputable and dependable collectors and classic car insurance companies in the USA (All information listed below subject to change, please contact the insurance companies listed to be sure.):

Hagerty Insurance P.O. Box 1303 Traverse City, MI 49685-1303

Email: auto@hagerty.com Toll Free: 800-922-4050

Qualifications:

• Similar to the others listed below, but please contact Haggerty for details.

American Collectors Insurance P.O. Box 8343 Cherry Hill, NJ 08002 Email:info@americancollectors.comToll Free: (800) 360-2277 Qualifications (subject to change or regional laws so check with the company for specific up-to-date information).

• At least 15 years old
• Garage-kept
• Driven on a limited, pleasure-only basis (up to 5,000 annual miles - available in most states)

You may also qualify by:

• Having at least 10 years driving experience
• Having a good driving record
• Having at least one "regular" vehicle for every licensed driver in the household You may request a policy application either directly from American Collectors Insurance or through your local insurance agent (rates are the same either way).

Parish Heacock Classic Car Insurance P.O. Box 24807 Lakeland, FL 33802-4807 Email: info@parishheacock.com Toll free: (800) 678-5173 Qualifications (subject to change or regional laws so check with the company for specific up-to-date information).

• Each household member of driving age must have at least 10 years driving experience or be excluded.
• Each household member must have a regular use vehicle less than 15 years old that is insured with liability limits equal to or higher than the limits being applied for on the collectible vehicle.
• All licensed members of household and any other drivers of the vehicle must be listed on the application.
• Maximum of two accidents or violations in the household, maximum of one per licensed household member in past 3 years. No major violations permitted in past 5 years.
• A Driver Health Questionnaire must be completed for all drivers over 70 years old.
• Auto must be stored in a locked permanent garage facility when not driven.
• Auto may not be used for commuting to or from work or school, used for business purposes or as a substitute for another auto.
• Autos not covered while on a racetrack or when being used for: racing, speed, driver's education, or timed events.
• Must display pride of ownership: well maintained, in restored or well-preserved condition.
• Vehicles under restoration must be stored at residence or a restoration shop, with a target date for completion. Agreed value coverage is not available on cars under restoration. Eligibility subject to company review.
• Replica Vehicles and Pro Street vehicles are subject to company review.
• Trucks and Jeeps must be over 25 years old, and not be used for towing, hauling, off-road or utility use.
• Generally do not require appraisals, but may ask for one if vehicle value is difficult to determine.

Article Source: http://EzineArticles.com/310140