Car Insurance Basics

Car Insurance Basics

The key to getting affordable and adequate car insurance protection is by simply knowing what different kinds of coverage are listed in your policy.  Some of the coverage may be required by your state while others may be required by the lending company or banks.  A basic understanding of the different types of coverage can help you decide what to include and what not include in your car insurance policy.

Simply relying on your car insurance agent is not enough if you are serious in cutting your auto insurance costs and getting cheap car insurance.  While the insurance agent will try his best to help you, the final decision of choosing what kind of coverage to take is in your hands.

A lot of car owners waste a lot of money on purchasing a coverage that they do not really need because they have no idea what that coverage is for.

Know the different kinds of auto coverage

Each state has its own rules and requirements with regards to what kind of coverage are to be included in your car insurance policy.  If you simply want to get the minimum state requirement, you can contact and ask your car insurance agent or the local department of motor vehicles.  The most common and known types of car insurance coverage are the following:

1. Liability Coverage
This is the most common type of car insurance coverage since almost all the states include it as part of the minimum car insurance requirement.  Liability coverage will help pay for the personal injuries and the property damages suffered by the other party.   In case you got involved in a vehicular accident in which the authorities find you as the one at fault, liability coverage can help you.  This particular coverage can provide you with some form of financial and legal protection depending on the amount of your coverage.  Although most states require a minimum coverage amount, it is financially prudent to get a coverage amount above the minimum.  Vehicular accidents are getting more expensive these days and the minimum coverage amount is not always enough.  If the liability coverage is not enough to pay for the costs of the accident then the party at fault is personally liable for the deficit.  Bear in mind that the liability coverage only covers the other party not the insured or passengers of the insured vehicle.

Bodily injury liability and property damages

Liability coverage normally covers bodily injury and property damages.  These two components are virtually inseparable since both are part of the minimum auto insurance requirement of most states.  Coverage from bodily injury will pay for any personal injuries suffered by the innocent party in a vehicular accident caused by the insured.  Coverage from property damages will compensate the innocent party for the repair or even replacement of the vehicle damaged or destroyed by the vehicle owned by the insured.

2. Personal Injury Protection
More popularly known as PIP but also sometimes known as MEDEX, this coverage will compensate the insured for any personal injuries he or she might sustained regardless of the party at fault.  Aside from the policy holder, this coverage can also include the policy holder’s family living in the same household, authorized drivers and passengers at the time of the accident.  The policy holder and family are still covered by PIP even if they are driving or riding somebody else’s car.  In some states, even as pedestrians, the policy holder and family can still claim compensation from PIP for any personal injuries they might sustained in the event that they are hit by a vehicle while crossing or walking on the streets.  The PIP will pay for the medical bills and even reimburse the insured for the salary lost during the accident and recuperation.  As a result of the accident, you have to hire somebody else to the work that you normally do, the PIP plan can reimburse you.  In the unfortunate event that the insured dies as a result of the accident, compensation will also be given to cover the costs of the funeral.

3. Collision Coverage
This coverage will compensate for any repairs or replacement needed by the insured’s car as a result of a vehicular accident regardless of which party is at fault.  Banks and lending companies usually require the inclusion of this coverage in the insurance policy before approving the car loan.  Owners of new cars can benefit from this coverage but owners of older cars may consider not getting collision coverage at all since the amount of coverage is limited to the car’s cash value.

4. Comprehensive Coverage
This coverage will compensate the insured for repair and even replacement of the car that is caused by an event other than a vehicular accident.  Besides vehicular accidents, car owners also faced other risks such as having their cars stolen or vandalized, fire and other natural disasters.  This coverage is meant to address those dangers.  However, most comprehensive coverage excludes damages caused by earthquake, flood or owner’s negligence unless specified.  A car obtained through a loan from a bank or lending company is usually required to carry comprehensive insurance coverage during the loan period.  Owners of cars that are still relatively new or in good running condition may consider getting this kind of coverage.  But if you own an old car or if the car is in poor condition, taking this coverage is not advisable.

5. Uninsured & Underinsured Coverage
This kind of coverage will help pay for the medical treatment of the bodily injuries sustained by insured and passengers and repairs or replacement costs of the vehicle in case the motorist at fault does not have enough insurance or no insurance at all to pay for the costs of the vehicular accident.  This coverage also applies in situations where the driver who caused the accident fled, leaving the insured at the scene of the accident.  This coverage not only includes the insured but also any authorized driver covered by the policy and passengers at the time that the accident occurred.

Alabama Car Insurance

Alabama Car Insurance

The best way to find affordable Alabama auto insurance is to get multiple quotes online. Within just 20 minutes or less you can get a cheap car insurance policy and be sure that you got a great deal. To get a list of the cheapest insurance companies in AL simply enter you zip code at the top of this page and press “Get Quotes”. To learn more about Alabama vehicle insurance requirements as well as state DUI laws and more keep reading this article.

Alabama Road Laws and Requirements

The Alabama state law requires all the Alabama car insurance companies to provide a Bodily Injury Liability with a minimum limit of $25,000 for each injured person. The Bodily Injury Liability limit may also reach up to $50,000 per accident. The coverage of the Property Damage Liability should also have a minimum limit of $25,000. This type of basic coverage is also termed as the 25/50/25 coverage. This limit requirement for all the Alabama car insurance providers has been made effective in August 30, 2008. The 25/50/25 coverage is the minimum required car insurance coverage in Alabama.

The Tort System is an insurance policy system that the state of Alabama follows. The Tort System requires that a person should be found at fault to have caused the accident. The person found to be at fault is required to pay for all the damages incurred together with their car insurance company. However, the Tort System may vary depending on the state that an individual lives in. The Alabama car insurance law differs from the laws of other states. 

Since there is still a possibility that you may encounter a car accident caused by underinsured or uninsured drivers, you can get an Alabama car insurance policy that includes the Underinsured/Uninsured Motorist Bodily Injury insurance coverage. While the state of Alabama do not require its drivers to have this kind of insurance policy coverage, you should still consider having this added to your overall insurance policy package just in case you will meet this kind of accident.

Alabama Laws with Driving Under the Influence (DUI) and Corresponding Punishment

The Alabama DUI (Driving Under the Influence) law states that an individual who has a blood alcohol level of .08% or higher is considered to be driving under the influence of alcohol or other controlled substances. This law is stated in the Alabama DUI law code 32-5A-191. If the driver is under 21 years of age, he or she is considered to be driving under the influence if his or her blood alcohol level is anything greater than .01%. This is stated in the State of Alabama’s DUI law code 32-5A-191. A day care driver or a school bus driver will also be considered as driving under the influence if their blood alcohol levels are greater than .01%. This is stated in the DUI law code 32-5A-191 of the State of Alabama.

Alabama DUI First Offense Penalties
Drivers who have been charged with DUI for the first time are given ten days from the date of the charge in which they can request the Alabama Department of Public Safety for an administrative hearing. DUI drivers who would still want to keep their driving privileges after their DUI charge may do so during the 10 day time frame to obtain a restricted driver’s license during their suspension period. After the ten day period, DUI drivers will no longer be granted with an administrative hearing. Their driver’s license suspension will also be upheld by the Alabama Department of Public Safety.

A first DUI offense, as per the state of Alabama, means that the driver has no prior DUI charges in the past 5 years. The first DUI offense is also considered by the law as a misdemeanor. The penalties include a maximum jail time of up to one year. The fine for a first DUI offense is $500 and may be increased depending on the situation surrounding the charges. The fine may also be increased up to $2000. In addition to these fines, the DUI driver should also pay for a $100 Impaired Drivers Trust Fund. The license of the DUI driver will also be suspended for 90 days.

Alabama DUI Second Offense Penalties
Drivers who have been arrested on DUI charges for the second time are required to have a jail time of five days to 1 year. A driver with a second DUI offense is also required to pay for $1,000 to $5,000 depending on the circumstances. The $100 charge for the Impaired Drivers Trust Fund also applies in the second DUI offense. The Alabama DPS will also revoke the driver’s license of the defendant for one year. Lastly, the defendant would need to attend a DUI school as well as a substance abuse program depending on the court order.

Alabama Car Insurance Rates Compared to the Average National Rates

Due to the fact the state of Alabama has safer roads compared to other states, the Alabama car insurance policy rates are relatively lower compared to the national average. While the amount of money you are required to pay for your Alabama car insurance will depend on several factors such as the model, the year and the make of your car, it is still cheaper compared to the national average of car insurance policy rates of at least $1,441 per vehicle.

Top Ten Vehicles Stolen in the State of Alabama

If your car is the same model, year and make that most of the car thieves prefer to steal, then you will be required to pay for a higher Alabama car insurance policy. The top ten most stolen vehicles in the State of Alabama include the full size 1994 Chevrolet Pick-Up, the 1994 Honda Accord, the 2004 Ford F150 Pickup, the 1989 Chevrolet Caprice, the 2005 Chevrolet Impala, the 2002 Ford Explorer, the 2004 Dodge Ram, the 1999 Toyota Camry, the 2001 Ford Taurus, and the 1997 Crown Victoria. If you own any of these vehicles, then you should be prepared to pay higher for your Alabama car insurance policy.
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Lexington Car Insurance

Lexington Car Insurance

Like any insurance company, Lexington auto insurance companies need to think about their market, and that market is the entire city of Lexington, Kentucky. With a population of around 295,000, this city is relatively large and populated.

For ordinary motorists who are searching for cheap car insurance in Lexington, Kentucky however, the first step in achieving that goal is to gather a large number of car insurance quotes. Quotes, by their very nature, can help you deal with your options, not to mention help introduce you to some Lexington auto insurance companies that may suit your needs.

Aside from their obvious benefits however, there are also other ways by which quotes can help motorists. Car insurance quotes can also help you understand how the city of Lexington affects its car insurance companies. If you observe the questions that you encounter prior to getting the quotes you need, you will find that some of them may ask you about your zip code, your level of education, your income, your car’s model, your driving record, and any other issue that car insurance websites consider relevant.

The purpose of these questions is to determine your potential risk as a motorist, and to give you quotes which fit those characteristics. It is through these questions that motorists can begin to understand how demographic issues affect Lexington car insurance companies and their clients. So what this all comes down to is that quotes can be thought of as a point of reference for when you want to research certain aspects of auto insurance in Lexington, Kentucky.

Consider age for example. This issue matters because people of certain age groups, namely teenagers and seniors, have a higher risk of getting into accidents than people from other age groups. About 28% of all motorists in Lexington are either teenagers and senior citizens, who are above the age of 55. So given the relative size of this segment of the population, as well as the probable risk they represent, many Lexington car insurance companies will naturally want to know what your age is.

There are various other demographic issues that car insurance companies are concerned about, and you can research them at your leisure, but whatever they may be, you have to remember that they are there to determine what sort of motorist you are, and properly contextualize car accidents. However, you should also try to learn as much as you can about car accidents as well as their implications on your premiums.

Traffic fatalities, for example, are a serious source of concern for many car insurance companies, and in 2009, Lexington has 23 cases of traffic related fatalities. Naturally, car insurance companies want to know which areas of the city most of these accidents occurred in, as well as the people who were responsible for them. Any common factors found among those responsible will be taken into account, and will be reflected in the process of acquiring car insurance quotes.

It’s also worth remembering that the average car insurance quote in Lexington, Kentucky is around $1,600. Although slightly higher than the national average ($1,500), what you have to remember is that this amount is influenced by many different factors, and it is these factors that you have to be familiar with if you want to get affordable rates for your insurance policy.