The Car Insurance Blog

Anything that is associated with a teenager is usually expensive like clothes, jewelries, allowances, gadgets and other stuffs. Providing your teenager with an auto insurance coverage is no different. There is a need to keep them safe while on the road especially with the rising incidence of drunk driving accidents. The life of your teenager is of course priceless hence can never compare to the amount you have to pay as premium for their insurance coverage.

Teenagers are considered a high risk group because of the different misdemeanor that they usually get involved with. Helping your teenager to become a responsible driver is very important not only for his safety but to help you lower the premiums on the car insurance coverage. As a parent, you need to lead by example and show your teenager how to be a responsible driver, otherwise he will adopt whatever driving habits he forms while on the road.

Funny as it may sound, but there really are some car insurance myths that have been passed on like urban legends and have been taken as fact. It is time to set the record straight to help you get the best car insurance protection for your investment.

In no particular order, here are some common car insurance myths:
1.Red cars mean higher premium payments.
2.If you get one speeding ticket, your premiums will go up.
3.There is no regulation of the car insurance industry.
4.I do not need add-op options for my policy.
5.The cheaper my car, the lower my premiums.
6.It is not my responsibility if someone is using my car and he causes an accident.
7.The older my car gets, the lower my premium.
8.A smoker needs to pay higher premium.
9.My premium should be the same as my neighbor�s.
10.My premiums will drop when I reach the age of 25.
11.Comprehensive coverage means it covers all situations I am involved in.
12.Rental Reimbursement coverage will protect me when I crash my rental car.
13.Getting all my insurance from the same company guarantees me a lower premium.

Just when you think you have done everything to attain the lowest car insurance premium possible, some auto insurers are coming out with innovative programs for certain sectors so that they can avail of additional discounts on their premiums.

There are some auto insurers who give preferential discount based on your profession, age or Internet usage. Aside from the traditional discounts given by insurance providers, here are some additional discounts you can look into:
� Those with Engineering degrees are considered low risk;
� Teachers get additional discounts
� Active and Retired Military personnel discount
� Multiple cars in one policy discount
� Online Internet purchase discounts

Yep, at least there is some good news that is coming out of the gas price hikes that are currently sweeping the country. People ar in fact driving slower on the roads and they are obeying speed limits. This used to be a challenging area for law enforcement for drivers have been known to go over the set speed limits for an infinite number of resons they can conjure up. Driving slowly allows more fuel economy allowing you to maximize the gas you put in your gas tank. People are also choosing not to fill-up rather estimate their consumptions for the week (even by the day) and filling up just a bit over that to allow for emergency stops or drives. If people only folowed the speed limits then their gas guzzlers wouldn’t have consumed too much gas and supply would have lasted a tad bit longer. Drive Safe Guys.

Urban dwellers used to be the types of folks you spend the summer with at farms as you watch the rising of the sun when you wake up early on grandpa’s farm. Studies are now showing that people in urban areas are getting nastier by the minute and auto insurance is one of the areas they happen to get high failing marks for. Farms usually get subsidies when it comes to auto insurance and other vehicles due to their use for agricultural use, but guess what? Some farm owners are claiming farm subsidies for their Porche’s, Saab’s and Jaguars among some of them and they are comitting insurance fraud in the highest respect. These people have relized that living on a farm kinda’ gets you some priviledges in the form of discounts in matters such as insurance for the farm and vehicles and knwoing that, they have started to get the same subsidies for their more speedy type vehicles and Insurance forms are finding out about it. If caught with such mis-declarations, they are subject to insurance fraud which can lead to jailtime.

THIRD PARTY FIRE AND THEFT INSURANCE: This type of policy will pay for the damages caused by your car to other people’s property due to an accident. It also has limited cover for loss or damage to your car against theft or fire only.

However, most policies do not cover damages caused by mechanical, structural or electrical failure. Also damages by depreciation, wear and tear and rust due to old age. Also, policies are meant to cover the repairs due to accidents, fire or theft and not to replace parts that have stopped working due to failure, old age, or some inherent fault.

Most people only read their policy from cover to cover when they need to make a claim. Unfortunately, by this time it’s often too late.
There are three types of car insurance policies that are offered:

COMPREHENSIVE INSURANCE: This type of insurance will cover to the damages to your car and to other people’s property if you have been involved in an accident and the driver is covered by the policy.

THIRD PARTY PROPERTY INSURANCE: This will cover the expenses on the damages to other people’s property caused by the accident. Howerver, it will not pay for the damages inflicted to the car.

Stalling car? It might be your fuel injectors or maybe your fuel pump. But, beware of so-called parts-replacers and mechanics who seem to have no clue what the problem even is, yet, are still more than happy to “fix” your car. They merely keep guessing and what’s worse is that they even charge you for their little guesswork. In reality, most parts-replacers simply do not have the proper skills to determine car problems. Some even have the nerve to rely on the idea that customers will keep coming back.

Thus, the best answer is to demand a certain guarantee or warrant on the next repair attempt. If the mechanic still doesn’t fix the car problem, then most likely you’ll have to find a better one.

Collision insurance only covers accident involving objects. To fully protect your car from all accidents, you should purchase both collision and comprehensive coverage.

8. I’ve never had or been involved in a car accident, so I don’t need automobile insurance.

False. You were lucky enough that you weren’t involve in any accidents, for now. But what if you’ve encountered an accident? You are at great risk of losing everything. Car insurance is the best thing that you can have in the event of an accident occurs. You are also required by law to have a basic form of car insurance, and failing to do so has its repercussions.

How many times have we seen this trick being pulled off? The mechanic tells you something in your car must be replaced, like the starter motor or maybe some other obscure car part we haven’t heard of and instead of replacing that perfectly fine, functioning part, the mechanic merely removes it, gives it a good scrubbing and polishing so it will look like a new replaced part, and puts it back in your car with none the wiser. Car parts which are singled out for the spit-shine trick are those which can be easily removed by hand. Batteries are just some of these “prime targets”. Some shops will not even bother to do anything about it. Instead, they will tell you that they have replaced the part with one that was refurbished (thus explaining why it doesn’t look that shiny and new).