Things You Should Know About Car Insurance

The insurance company will offer two types of car insurance that you can choose before you decide to buy it. Each type of insurance is called car insurance TLO and All Risk. So, before you choose which type of insurance you will use, you need to know in advance what is meant by the policy along with the coverage offered.

TLO, All Risk, and Comprehensive Insurance

TLO car insurance stands for Total Loss Only. Based on the name, at first glance, you may have guessed about how the work of this type of insurance.

This insurance has the primary objective of providing risk coverage to the “total” level or a car with a truly severely damaged condition, with an important note where the extent of the damage must exceed 75 percent if you want to get insurance coverage.

In addition to such damages, TLO can also provide coverage for car loss case. Meanwhile, All Risk car insurance can provide coverage for any type of risk that occurs in your car, although of course, this insurance has some more requirements for the car to meet the feasibility in order to get compensation.

However, there are some conditions where the risk of the car can’t be claimed to the insurance company.

Risks include:

  • Damaged by accident for violating traffic regulations,
  • Damaged by natural disasters,
  • Damaged by all kinds of riots, and others.

However, you do not have to worry because those risks can still be covered by the insurer if you use extended insurance coverage.Car insurance, in general, does not provide coverage caused by the riots, but you can get it easily by using expansion. Well, if your car is using All Risk insurance, and after that, you add it again with expanded coverage, it will become comprehensive insurance.

Well, if your car is using All Risk insurance and after that, you add it again with expanded coverage, it will become Comprehensive insurance.

In other words, comprehensive insurance is a combination of All Risk insurance coverage with one or more coverage. Because of the completeness of the protection provided, when compared to two other types (TLO and All Risk), it is not surprising that this plan has a higher premium rate than others.

The conclusion is that TLO car insurance is a type of insurance with the cheapest price, while the premium cost of All Risk is in between.

However, it does not mean that one type of car insurance is superior to other insurance because the protection of all types of car insurance has its own advantages.

Moreover, the most important thing here is that you have protection for your car. This is certainly better than when you have no insurance at all to anticipate the possible losses.

Conclusion

The car is one of your valuable assets and you would certainly agree with this statement. Car prices are not exactly cheap. Risks with worst-case scenarios can happen. So, undesirable events can lead to huge losses if you do not have car insurance.

How To Reduce Your Bike Inscurance

As you must be aware, if you own a motorcycle in India, the law requires you to have it insured. According to statistics, India has the highest rate of two-wheeler accidents as compared to other countries. This itself emphasizes the need of insurance for your two-wheeler.

Though insurance is important and can’t be bypassed, it could turn out to be expensive and add burden to your finances. And these days the price of everything seems to be shooting through the roof. So, you are bound to pay your bike insurance premium with a heavy heart. Well, we could help you with 5 easy ways to reduce your bike insurance premium. Read on to know how!

#1 Choose Your Bike Well

Yes, more exotic bikes or the ones with bigger engines definitely will cost more. Also, the unusual or modified bikes are considered to be more expensive when it comes to the repairs and replacement of their spare parts. So, it would be wiser to go for an entry-level motorcycle with a smaller engine. This would attract lower premiums accordingly.

#2 Maintain A Clean Driving Record as A Rider

The insurance company may look at your record for any tickets or accidents. So, if you have more experience as a rider, the less risky you will seem in the eyes of the insurer. This will help you in fetching the best possible premium. Driving safely will help keep your claims low. Which correspondingly would add the benefit of No-claim Bonus to your premium.

Besides a clean driving record, the insurance company also looks at your riding time and experience. That is, how long have you been riding motorcycles and what experience do you have with a specific motorcycle to be insured. The more experienced you are as a driver, lower would be the risk and the cost of premium accordingly.

#3 Avoid Making Small Claims

If you haven’t made any claim in a defined period of time, you are awarded a No Claim Bonus and discounts by the insurer. So, if you make a claim for small damages, you are bound to lose out on the no-claim discount for that particular year.

So, the next time you notice a dent here or a scratch there or a broken tail light, skip the trip to the insurer. You could just take care of these minor damages from your own pocket at a local mechanic shop instead.

#4 Boost Your Bike’s Security

The insurers are bound to offer you a lower premium rate if your bike is more secure against theft, vandalism and incidental damage. So, if you install safety equipment and additional security measures, it will decrease the risk posed to the insured property. Make sure you park your bike in a secure area like a garage. And then insurers are more likely to offer you premium discounts.

#5 Bundle Your Policies

Why not get the benefits of a packaged deal? that gets all your insurance needs covered by one insurer. Let’s say, if you have a car insurance policy with an insurer, then the same insurance company is more likely to provide you with a discounted premium for your bike insurance as well.

Besides these, you have the option of paying the premium annually or in monthly installments. Paying your bike insurance premium annually would also cost you lesser. Also, if you are part of a riding, touring or automobile association, a few insurers do offer you some discount. Not carrying a pillion can earn you some extra discount and so is limiting your mileage. And all of these factors when taken into consideration will ensure that the insurance premium doesn’t make a dent in your wallet.

So, when the time comes to renew your insurance, don’t just settle for your current insurer. Instead be wise enough to spare some time and do a thorough research online. Compare the various options available and pick the one that best suits your requirement.

How To Choose Auto Insurance Company

Are you in the market for better auto insurance rates? Or, perhaps you are simply looking for a new auto insurance company? Whatever your reason for shopping around, now is the perfect time to request auto insurance quotes from several companies who are more than eager to earn your patronage. In fact, many companies will compete for your business by way of auto insurance rates.

Your first step to choosing the right auto insurance company is to consider the type of coverage that you need. For instance, if you have a less than perfect driving record or past credit problems, you may want to compare auto insurance costs from companies who specialize in giving customers a second chance to earn discount auto insurance. If you own more than one vehicle, you may find that some auto insurance companies will offer cheap auto insurance rates in exchange for becoming your exclusive provider. In other words, transferring all of your policies to one company may result in discount auto insurance at its best.

The next step in choosing an auto insurance company is to look for one that rewards customers based on a good driving record. One of the keys to a respectable auto insurance company is flexibility when it comes to coverage selection and incentives to promote better and more responsible driving. In addition to comparing auto insurance rates and plans, take the time to review the auto insurance company’s policy on discount auto insurance rates for those with a safe driving record.

It’s important to realize that auto insurance rates vary from one area to the next. For instance, Pennsylvania auto insurance may be less expensive than New York auto insurance or vice versa. Regardless of where you live, however, most will agree that auto insurance is expensive and it’s essential that you compare auto insurance rates to ensure that you are getting what you pay for. A good auto insurance company, for instance, will offer various deductibles, competitive auto insurance rates and some type of coverage that allows for the temporary payment of medical bills in the event that you ever become involved in an auto accident. If you are injured as a result of another motorist’s negligence, many auto insurance companies will pay for your medical bills and later seek reimbursement from the faulty individual(s). This is a great relief to many, especially those who may not otherwise have health insurance.

As a final thought to choosing an auto insurance company that offers the best auto insurance rate, free auto insurance quotes and/or a flexible program that can be customized to fit your individual needs, simply take the time to shop around and compare auto insurance from more than one company prior to making a final decision.

The information in this article is designed to be used for reference purposes only. It should not be used as, in place of or in conjunction with professional financial or insurance advice relating to auto insurance quotes, discount auto insurance or auto insurance rates. For additional information or to receive an auto insurance quote, contact a local auto insurance company.

Things You Should Know About Car Insurance Cut

The seemingly never-ending rise in car insurance prices could be coming to a screeching stop thanks to proposed government changes.

New proposals will see a huge U-turn on the rate at which payouts for victims of serious accidents is calculated which is known as the Ogden rate.

The Ogden rate is set to be changed as soon as next year in a bid to provide a “fairer” system.

How does the Ogden rate work?
Set by the government, the Ogden rate is the amount awarded to victims with life-changing injuries after an accident.

The rate had been set at 2.5% which meant that for every £1,000 awarded to a victim in a claim, the insurer would pay out £975 – with the other 2.5% or the Ogden rate expected to be earned by the claimant through investment interest. This would then give them the full pay out they were due.

In March 2017, the rate was cut to -0.75% or in a monetary sense, insurers would now have to pay victims £1,007.50 per £1,000 payment.

It was this increase in pay outs that helped cause car insurance prices to hit record highs* in the last 12 months.

What’s the latest Ogden rate change?
While a specific date hasn’t been announced, the Ministry of Justice have confirmed that they are revising the rules and it’s expected that the Ogden rate will be put at 1% from next year.

The changes have been welcomed by insurers as it will reduce the amount they are forced to pay.

Huw Evans of the Association of British Insurers commented on the proposed changes:
“This is a welcome reform proposal to deliver a personal injury discount rate that is fairer for claimants, customers and taxpayers alike.”

“If implemented it will help relieve some of the cost pressures on motor and liability insurance in a way that can only benefit customers.”

What do these changes mean for drivers?
The last time rates changed it meant an increase in car insurance premiums as insurers passed on the extra costs to drivers.

Now with pay-outs to victims expect to drop, it only makes sense that the savings will be passed on to drivers by reducing the overall cost of their cover.

Changes are not expected to come into effect until next year so it may be some time before these savings can actually be seen on the price of annual insurance.

How will it affect accident victims?
While it’s potentially good news drivers, victims of serious accidents who are left with life changing injuries could be short changed.

Instead of receiving the full amount of the awarded pay-out, victims will now once again be expected to invest their money for profit.

While the assumption is that these people will be able to make up the difference comfortably, many have commentated on the unfairness of the new rate.

Speaking to The Mirror, President of the Association of Personal Injury Lawyers, Brett Dixon said:

“Someone with a life-long, life-changing injury such as brain damage or a spinal injury cannot afford to take any risks with how his compensation is invested,”

“The last thing people with devastating injuries think about when they are lying in a hospital is their insurance premiums. They think about how they are going to manage. Insurers say an increased discount rate will benefit customers through their premiums. It is of no benefit if they are severely injured and forced to take risks with the compensation they so desperately need.”

4 ways to reduce the cost of your car insurance
While you wait for rate changes to bring the cost of you cover down, there are a number of ways you can save yourself money right now.

Reduce your risk
While there are some details you can’t change, there are a few things you can do to reduce the risk you pose. Something as simple as changing your job title from an office manager to an office administrator could save you money.

You also need to consider the vehicle you’re driving. When choosing a car, you should try and get one that’s safer, slower and less eye-catching.

Increase your excess
Increasing the amount you’re willing to pay if you have an accident will reduce the price of your premium. This is a great way to reduce the overall cost but remember you should never agree to an excess that you can’t afford to pay.

Make sure your car is secure
Whether it’s adding an immobiliser to your car or locking it away in a garage overnight, increasing your vehicles security will make it less attractive to thieves and cut the cost of your cover.

Make sure you let your insurer know about your improved security as some providers will offer discounts even before you renew.

Only pay for the cover you need
If you’re only borrowing a car or just need to drive for a few days, an annual insurance policy could be a huge waste of money.

A temporary policy offers the same level of cover and financial protection as yearly insurance at a fraction of the price.

You get the cover you want without having to pay for insurance you don’t need. You can get a range of quotes in minutes and compare prices to save time and money.