Your First Insurance Policy for Your Car

Getting your first insurance policy for your car may not be a priority, but it should be. Your first car insurance policy protects one of your first investments, your car. But buying your first insurance policy for your car can be complicated and often new car insurance shoppers fail to compare car insurance rates and in turn fail to reap the financial benefits of finding the best and affordable car insurance available to them.

Shopping for Your First Insurance Policy: Who Needs Car Insurance?

The question asked by most people shopping for their first insurance policy is who needs an insurance policy and why? The answer is simple: it’s the law. The DMV (Department of Motor Vehicles) requires that you take financial responsibility for owning and operating a car in all fifty states. Car insurance protects you when you cause property damage or bodily injury to someone else when driving your car. If you are caught driving without car insurance you will be charged hefty penalties. Violators can face up to hundreds of dollars in fines for a first time offense. Also, if you are involved in an accident and do not have car insurance, your license may be suspended whether you are at fault or not.

Understand Your First Insurance Policy

Now that you know you know how important it is to get your first insurance policy for your car, you will want to understand how car insurance works before you start deciding on which company you will choose for your first insurance policy. The best place to start is Auto Insurance 101. This article will take you step by step in understanding car insurance. Once you understand how car insurance works and have an idea of what type of car insurance you need, you are on your way to the next step of finding the best and most affordable car insurance for you.

Just Because it is Your First Insurance Policy, that Does Not Mean You Have to Pay Too Much

This is often where first insurance policy buyers get sucked into paying too much for their car insurance. Don't just assume since you are purchasing your first insurance policy that you will have to pay extremely high premiums. Yes, you will pay higher premiums than people who have had car insurance for some time, but that does not mean you can not find affordable car insurance. You ask then how does one find the best and most affordable car insurance? Here is a checklist of ways to find affordable car insurance and the best first insurance for you:

Source: Personalinsure.about.com

Know How to Best Do Your Online Shopping for Term Life Insurance

Before Your Online Shopping for Term Life Insurance, Let's Define It

Term life insurance and whole life insurance often get grouped together as just life insurance but term life insurance has a major difference. Unlike whole life insurance, term life insurance is a type of life insurance that covers you for a certain period of time (the term) that is usually for 10, 15, 20 or sometimes even 30 years. At the end of the time period the policy ends unless it is renewable. If it is “renewable” you can keep it but at a rate reflecting your new (older) age and thus a higher price, sometimes substantially higher. Before you decide on an insurance choice, it is best to learn the difference between term life and whole life insurance.

When and How to Use Term Life Insurance

Term life insurance is a great financial vehicle to get the most possible insurance for the money, at least initially. It is especially useful for families that have current and future financial obligations but have not yet grown the assets to fulfill those obligations if they should die prematurely. Think of term or any life insurance as a way of replacing the income one would not be there to earn for those dependent upon them if they should die.

Online Shopping for Term Life Insurance

When shopping online for term life insurance, there are a variety of life insurance sites available. Four common types are:

1. The type that asks for your personal information which they then sell as a “lead” to insurance agents.
2. Sites that market insurance directly but ask for info about you including name and e-mail address before they'll give you a quote.
3. Insurance company sites that quote their company’s rates or refer you to one of their agents.
4. Sites that openly allow you to access the database of life insurance rates anonymously. If you find a price and policy that you like, you can then contact them.

Recommendation

It’s important if you have financial obligations to your family or business, that you have sufficient life insurance. Use the open architecture of a site that lets you search anonymously to learn and see different rates from many companies. Used right, the internet can be a great resource to research information and prices for term life insurance.

Gap Car Insurance

Getting a new car is great and making sure you have the insurance coverages you need for it is one of the most important things you can do to protect your new vehicle. Of course, you don't want to have a gap in insurance so that is why you need to have gap car insurance. Yes, you know having gap insurance coverage is important but, it is just as important to know what those coverages mean.

You Won't Have a Gap in Insurance, But What Else Will Gap Car Insurance Cover?

If you have gap insurance coverage, you won't have a gap in insurance but, if you need to use your gap car insurance will you understand the coverages? Understanding your gap car insurance coverages will not take a lot of time and it will probably save you a lot of money and time later. There are two important things to know about your gap insurance coverage: what is covered and what is excluded (or not covered). First, let's take a look at common gap car insurance coverages:

Gap Car Insurance Covers Total Losses Due to Most Any Reason Including:

Theft
Fire
Vandalism
Accident
Flood
Tornado
Hurricane

As you can see, pretty much any totaled loss your regular car comprehensive and collision insurance will cover, gap insurance will also cover. Most gap car insurance policies will also cover your insurance deductible.

Gap Car Insurance Covers Most Total Losses, But What Does it Exclude?

So, now that you know your gap car insurance will pretty much cover most any total loss that your regular car insurance company did not cover, what will gap insurance not cover? This is important to know, so here is a list of some gap car insurance exclusions:

6 Common Gap Car Insurance Exclusions:

1. Cars that Are Not Covered by Both Comprehensive and Collision Insurance

2. Any Equipment On the Car that Was Not Factory Installed

3. Money that Was "Rolled" Into the Car Loan Such as From a Trade-in or Leased Vehicle

4.Costs for Any Other Products Added to The Loan or Lease Such as Extended Warranties

5. Unpaid or Overdue Lease or Loan Payments

6. Financial Penalties or Security Deposits on Leased Vehicles

Please remember that these are only examples of common coverages and exclusions and it is important to check your own policy to see what your particular gap car insurance coverages and exclusions are.

Stop Them from Stealing Your Car

You keep your valuables under the seat, your packages in the trunk, and your doors locked at all times, but is that enough? You even try to avoid high-end extravagant SUVs and sports cars in hopes of deterring a car thief. Unfortunately, keeping your doors locked, your valuables hidden, and driving an older model car is not enough to stop a car thief from targeting your car.

According to statistics given to ABC News by Mike Siemienas, an Allstate Insurance Spokesman, and the National Crime Information Center, the most often targeted cars for theft are Hondas. And not the latest, high-end models. Early 90's and late 90's models of Hondas top the list of theft targeted vehicles. Why? Because these vehicles are long-living vehicles and often their engines outlast their body parts (fenders, doors, etc.) and accessories (seats, airbags, etc.). So when owners of these vehicles need new parts there is a shortage of extra parts at salvage yards. It is a basic supply and demand issue. Since supply of these parts is low the demand for the parts brings in big money. According to Siemienas and the National Crime Information Center, big money can equal more than $13,000 for a 1994 Honda's parts when the vehicle's actual cash value is only a few thousand.

OK, so you don't have one of these wanted vehicles. So, it doesn’t cost you anything, right? Wrong: According to information given to ABC news from Siemienas, vehicle theft is the number one property crime in the United States that carries a price tag of more than eight billion dollars a year. In many cases, auto theft costs are absorbed by all insurance consumers in the form of higher insurance rates. We all need to try and find ways to stop vehicle theft.

In addition, just because you don't have a vehicle that is at the top of the theft list doesn’t mean you can't be a target. If your vehicle is easily accessible and it shows, a thief can still make some quick cash out of it. The best way to protect your vehicle is to visually display vehicle theft deterrents. If a thief just sees theft device items used in your vehicle they will automatically seek out another car that is much easier to steal.

One of the most popular theft deterrent devices is called The Club. It simply attaches to your steering wheel and can usually be found in most variety stores at a reasonable cost. Another great visual deterrent is to buy a do-it-yourself VIN number engraving kit. These VIN number engraving kits can be bought online at many merchants and can quickly be done by anyone in a short amount of time. The VIN number is engraved in a car's window and it makes the part unusable for resale by a thief because the VIN number can be tracked back to a stolen vehicle.

So whatever vehicle you own, it is important to realize the impact of vehicle theft for everyone. By using visual theft devices like the ones above and continuing safety measures such as hiding packages and purses stored in your car along with keeping your doors locked at all times, you will keep a vehicle thief away from your car and keep down insurance costs for everyone.