What are the benefits of using telematics, or digital tracking devices, in my car for my automobile insurance?

The goal of any insurance provider is to assess the risk that a driver presents, as well as the likelihood that he or she will eventually need to file a claim. While there is no way to predict the future, insurers are taking advantage of modern technology to better determine the driving habits of policy-holders. With telematics, some drivers are paying lower auto insurance premiums than they ever have before.

What are Telematics?

Telematics are digital tracking devices installed on a vehicle to monitor driver speed, acceleration, and sudden braking. Though these devices are optional, there are benefits to allowing insurers to track driving information.

These benefits usually translate to auto premium savings for insured drivers — especially those with a history of insurance claims or traffic violations. Drivers in high risk groups, such as teenagers and the elderly, can also benefit from telematics. Insurers receive actual data for each individual driver instead of relying solely on statistical information and driving records. For those who drive safely, this can mean significant monthly savings.

Telematics are also making it possible to pay for auto insurance on a pay-as-you-go basis. In other words, drivers who operate a vehicle only on the weekends or for leisure may find their premiums decrease as digital tracking devices report less time behind the wheel. This is advantageous for anyone with sporadic driving habits, such as a student home from college during the summer or a retired person who only goes to and from the grocery store.

My Son or Daughter Will Turn 16 This Year. What Do I Need to Know to Update My Auto Insurance Policy?

As your son or daughter gets begins to drive it is often time to update your auto insurance. With a new driver on your policy, you’ll need to take a few key things into consideration. The good news is that you can update your policy with an independent agency to ensure your child has the necessary coverage.

If your child will be driving your vehicles, be sure to discuss this with your insurance agent. He or she should be named on the policy if possible. Additionally, if you plan to buy another vehicle, it is also important for you to have proper coverage on that car. You may not need a comprehensive policy unless the value has high worth. Liability coverage may be enough in some situations.

In many situations, the dependent can be added to a parent’s insurance policy. You may want to do this to keep costs lower. Keep in mind that because he or she is young and inexperienced, the insurance rates tend to be significantly higher than they would be for you, as an adult. Adding the child to your policy, though, will save money in the long term.

Be sure to talk to your agent about options for keeping costs down, too. Even if you decide to provide your child with his or her own policy, especially if there is an added car into the mix, there are likely discounts available. Good student discounts are a common option, for example.

Talk to your independent insurance agent today to make sure you and your child are covered.

Does comprehensive auto insurance generally cover accidents caused by icy road conditions?

It’s a little complex because ice damages vehicles in several ways. In general, damage to other people’s vehicles as a result of driving in icy conditions is covered by basic auto liability insurance. Other specific issues require special coverage on the policy.

Indirectly, an auto accident due to hazardous conditions dents the at-fault driver’s car as well as the vehicle hit. The driver’s collision insurance reimburses repair costs for their car, and liability insurance pays directly for the body work needed for the other car.

Directly, ice can fall and mar autos too. Comprehensive auto insurance, also known as "other than collision", pays for damages in this scenario.

"Comprehensive" is a term of art for insurers referring to a type of coverage, not an overall policy. It’s important to obtain online quotes from an independent agency to review different policy terms to include the various kinds of auto insurance protection available in your state. Coverage and policy language varies by States.

The best approach to icy or other hazardous conditions is avoidance. Unless necessary, do not drive under hazardous conditions such as ice, snow, or sleet. Park the car under a shelter, garage or carport to avoid direct damage from hail, sleet or falling ice.

Provision your car with blankets, flares, food, sand or kitty litter, salt, and a shovel. Where legal, keep a set of chains in the trunk. Be prepared for the results of bad weather driving. Getting stuck away from home requires keeping warm and fed. Creating traction with sand or kitty litter helps move the vehicle safely. Salt melts the ice, and the shovel can be used to dig the car out of a snowbank. Flares signal help and caution other drivers.

So, yes, proper insurance will pay for damages occurring under icy driving conditions. It is important for your safety to avoid driving in these conditions, prepare for the journey, and contact your independent agency online for descriptions of coverage and price quotes.

In New York, how long does a ticket stay on my insurance

Auto insurance in New York is a necessity if you plan to drive an automobile. Although we all think we are great drivers, sometimes we get in a hurry on the way home from work or we drive too fast when meeting friends for a night out. If you have ever gotten a speeding ticket, you know what a hassle it is. A ticket will usually stay on your insurance for about three years after you are covicted of a moving violation. If you are hoping to save a little money on insurance, contact your independent agent who may be able to help you find a discount on your coverage.

Comparing quotes for auto insurance is the best way to make sure you are not paying too much money. If you have a few tickets on your record, you should shop around for different insurance in January before recent violations will show up on your abstract. Getting pulled over for a traffic violation does not necessarily mean you are guilty. If you plead not guilty – the ticket will not show up on your insurance plan. Of course, the best way to save money, is to drive carefully in the first place.

Contact your independent insurance agent to begin comparing quotes today. You may be surprised how much money you can save by switching to a new company.

Auto Insurance – Coastal Guidelines Standards

Buying auto insurance in one of the coastal states does not have to cost a lot of money. There may be a few extra conditions you must meet, but once these requirements are taken care of, you can obtain coastal auto insurance the same as in other states. Just remember that when it comes time to make a claim, if you did not give accurate information, your insurance company may not pay.

One restriction you may find in the coastal areas is where your vehicle is garaged. The closer you live to the water, the more you may pay for auto insurance. This is the same for people who live in large cities or areas prone to earthquakes. Living close to the coast makes your car more susceptible to hurricanes and floods. Insurance providers take this into consideration when they are determining the amount of your premium. One way to save money is to make sure you can park your vehicle in a garage or other location where it would be safe in the event of a disaster.

Other coastal guidelines may include an inspection of the vehicle before it can be insured. Companies do not want to pay for damage to a car that occurred before the policy became effective. Sometimes, you will have to take the auto to an inspection station or they may send you a disposable camera and let you take pictures yourself.

Save money on your coastal auto insurance by combining it with your homeowner’s policy or choosing to have a bank draft of your premium each month. If you drive a vehicle, you need coastal auto insurance. Compare quotes and you will find a deal you can afford.

Temporarily Lower Your Insurance Costs

In the current economy, many people are looking for ways to temporarily lower insurance costs. When you have to make a choice between making the house or car payment and paying for insurance, you may have a difficult decision. Instead of letting your coverage lapse, look for ways to lower the cost and still retain insurance protection.

First, the easiest way to reduce your insurance cost is to raise your deductible. When you first purchased your protection, you may have asked for low deductibles to reduce the out-of-pocket expense when you are involved in an accident or a disaster strikes. By raising the deductible, your premium will be cheaper while you retain the same amount of coverage.

Another way to lower the cost is to combine policies with the same company. When you bundle your protection with the same insurance provider, they will probably offer a multiple policy discount. If you already have homeowners insurance, auto insurance and life insurance, save money by combining these policies.

A third way to temporarily lower the cost of insurance is to shop around for a new provider. Even if you have been with the same company for a long time, you may be able to find a cheaper rate. Insurance companies are in competition with each other and they may offer different incentives. Take a few minutes to compare quotes and you may be surprised by how much money you can save.

Finally, make sure you make your payments on time. This will not only save you money on late fees, but having good credit will also get you lower insurance premiums. Don’t cancel your insurance all together; just find a way to lower the cost until you are financially stable once again.

Your State’s Minimum Car Insurance Requirements

It’s important to make sure you meet your state’s car insurance requirements. If you are in an accident and you do not have the correct amount of coverage, you could be fined or, even worse, sued. It is easy to do some quick research to find out exactly how much and what type of car insurance you need. Just take a few minutes and look online or contact an auto insurance provider.

Most states require at least liability insurance for your vehicle. If you are involved in an accident, this type of coverage will take care of the expenses for the other person that is involved. If the accident is found to be your fault, you will definitely need this type of insurance. People who do not have the right amount of coverage will end up paying for the expenses out of their own pocket. No one wants to go into debt or be forced to use their child’s college fund to pay off a claim from a serious accident.

Other requirements may include uninsured motorist auto insurance. Although most people do not like to pay for this type of coverage, it could be the most beneficial to you if you are in an accident with someone who does not have insurance. If a person could not afford to insure their vehicle, they probably will never be able to pay for a claim for someone else. Make sure you are fully covered and you will not be left without transportation after an accident.

Before purchasing auto insurance, make sure you are aware of the requirements for your state. You can easily find all of the information you need online. Shop around and find the best deal for your car coverage needs and you will give yourself peace of mind.

The Different Types of State Liability Insurance Available

Liability insurance pays damages to other people and their property caused by the negligence of an insured person. There are many types of auto insurance liabilities.

Three types are included in a standard policy:

  • Bodily injury and property damage liability covers injuries to other people and property damage to their auto. This basic auto liability fulfills the statutory requirements of financial responsibility to operate a licensed vehicle, or higher limits can be purchased.
  • Uninsured motorist coverage pays the policy owner for damages when the other driver is uninsured.
  • Underinsured motorist coverage pays losses in excess of the other driver’s liability coverage in the event of a catastrophic claim.

The traditional liability plan covers the costs of at-fault accidents, referred to as a “First Party” policy.

Additionally, some states have a “No Fault” liability system for smaller claims. With this type of arrangement, the auto owner buys insurance, has a fender bender, and then collects under his own policy. The system is based on lowering claims costs by avoiding the determination of liability.

A no-fault system differs from a state plan. A state plan is an “insurer of last resort,” which means if the driver cannot find insurance in the standard market, the state will issue a policy. Commercial insurers participate in the profits and losses of the assigned risk pool.

Medical payments coverage is not liability coverage. Medical payments coverage reimburses, as an accommodation, small medical amounts for injuries involving an insured vehicle. This coverage would include incidents such as fingers pinched by a door as well as the result of an accident.

Although the various types of auto liability insurance can be confusing, the simple reason it exists is to protect your assets when you are liable in an accident.

How Much Car Insurance Coverage Do I Need?

Getting just the right amount of auto insurance can be a tricky process. On one hand, you want to be fully protected in case an accident arises. On the other hand, you don’t want to spend more of your hard-earned money than you need to by purchasing more coverage than you are likely to even use. Although it’s impossible to determine with absolute certainly which auto insurance plan would cover your needs for the future, there are a few simple tips and tricks to consider before settling on the perfect plan.

1. Find Out Your State Requirements

Every state has different requirements for the minimum amount of auto insurance each driver in the state is legally obliged to have. Determine what the requirements are in your state and use this as a base for your coverage plan. More often than not, these requirements are sufficient for establishing a good amount of insurance coverage for your needs.

2. Balance Your Insurance Plan

The best way to avoid overextending yourself in your auto insurance plan is by balancing the amount of your coverage to the total value of your assets. For example, you wouldn’t want to purchase an insurance plan that covers $10,000 worth of damages when your car is only worth $5,000. Consider these figures as well as how much you have in the bank for investing in a new vehicle in case of an accident.

3. Look for a Plan With a High Deductible

To help keep your premiums low, specifically look for auto insurance plans with high deductibles. Prepare to cover the costs of any routine repairs with your own money to keep the price of insurance as low as possible. This will help you get the coverage you need while keeping the price within your budget.

Things You Don’t know about Liability Insurance that can Cost You

On the surface, liability-only insurance sounds great to a driver who wants to save money. It provides the legal minimum state-required coverage at an affordable price. Unfortunately, those financial savings may not offset the ultimate cost that a liability-only policy may impose on an underinsured driver.

Liability insurance is auto insurance that covers a limited amount of bodily and property damage that you are at fault for while operating your vehicle. For example, if you experience a collision with another vehicle due to your own negligence while driving, liability insurance pays for a portion of the other driver’s losses, such as vehicle repairs and medical bills. It does not, however, pay for repairs to your own vehicle or medical expenses that you incur due to the collision. This could leave you with a significant bill, and in some cases, without transportation altogether.

Carrying the minimum amount of auto insurance can cost you even more than your own repairs and medical bills too. If your coverage maximums don’t cover all of the expenses that another driver incurs due to a collision, you could face a lawsuit. In most U.S. states, you are ultimately responsible for the bodily and property damages you cause while driving, so a judge could force you to liquidate some of your cash and assets in order to pay for the damages your insurance does not cover.

It’s always a good idea to be prepared. Rather than skimp on your auto insurance coverage to save money, try achieving an affordable full-coverage premium by maintaining a good driving record, raising your policy deductible and combining your auto and homeowner’s insurance policies with the same insurer. You’ll still save money without risking your financial security every time you get behind the wheel of your car.