How Much Car Insurance Should You Buy?

Provided By: CarInsurance.com

Car insurance isn’t very exciting. Depending on which state you live in, it could be a smaller or larger piece of your budget than your neighbors across state lines.

How much insurance should you buy? Any insurance agent worthy of their salt will tell you that you should buy as much as you can afford. While this is a good rule of thumb, it's about as useful as a stock broker's tip to buy low and sell high. It might be sound logic but it doesn't get you any closer to an educated decision. There are a few filters that need consideration in order to make that educated decision. First, what is the state required minimum coverage where you live? Second, what does the minimum cover? Third, what other coverage is available and can you afford it? And fourthly, what are you protecting?

What do the minimums cover?

Now that you know what your state requires, what are you actually covered for once you purchase the minimum? Using the coverage definitions that follow, find the types of coverage required and see what your state says is the accepted minimum.

Coverage Definitions

Bodily Injury Liability covers other people's bodily injuries or death for which you are responsible. It also provides for a legal defense if another party in the accident files a lawsuit against you. Claims for bodily injury may be for such things as medical bills, loss of income or pain and suffering. In the event of a serious accident, you want enough insurance to cover a judgment against you in a lawsuit, without jeopardizing your personal assets. Bodily injury liability covers injury to people, not your vehicle. Therefore, it's good idea to have the same level of coverage for all of your cars. Bodily Injury Liability does NOT cover you or other people on your policy. Coverage is limited to the terms and conditions contained in the policy.

Comprehensive Physical Damage Coverage Covers your vehicle, and sometimes other vehicles you maybe driving for losses resulting from incidents other than collision. For example, comprehensive insurance covers damage to your car if it is stolen; or damaged by flood, fire, or animals. Pays to fix your vehicle less the deductible you choose. To keep your premiums low, select as high a deductible as you feel comfortable paying out of pocket. Coverage is limited to the terms and conditions contained in the policy.

Collision Coverage covers damage to your car when your car hits, or is hit by, another vehicle, or other object. Pays to fix your vehicle less the deductible you choose. To keep your premiums low, select as large a deductible as you feel comfortable paying out of pocket. For older cars, consider dropping this coverage, since coverage is normally limited to the cash value of your car. Coverage is limited to the terms and conditions contained in the policy.

Medical Payments covers medical expenses to you and your passengers injured in an accident. There may also be coverage if as a pedestrian a vehicle injures you. Does NOT matter who is at fault. Coverage is limited to the terms and conditions contained in the policy.

Uninsured Motorist Coverage covers bodily injuries to you and your passengers when the other person has no insurance or not enough insurance in a crash that is not your fault. In some states, there is also uninsured motorist coverage for damage to your vehicle. Given the large number of uninsured motorists, this is very important coverage to have, even in states with no-fault insurance. Coverage is limited to the terms and conditions contained in the policy

Personal Injury Protection Coverage covers within the specified limits, the medical, hospital and funeral expenses of the insured, others in his vehicles and pedestrians struck by him. The basic coverage for the insured's own injuries on first-party basis, without regard to fault. It is only available in certain states.

Property Damage Liability covers you if your car damages someone else's property. Usually it is their car, but it could be a fence, a house or any other property damaged in an accident. It also provides you with legal defense if another party files a lawsuit against you. It is a good idea to purchase enough of this insurance to cover the amount of damage your car might do to another vehicle or object. Coverage is limited to the terms and conditions contained in the policy.

Rental Car Reimbursement covers renting a car if your car isn't drivable or while your car is being repaired because of a covered accident.

What else is available and can you afford it?

Did you come across a coverage and think, "I need that but it isn't required by state law" when you were reviewing the coverage definitions? Chances are you did. Can your budget afford the additional expense of these protections? Or maybe more to the point; can you afford NOT to have these additional protections? At CarInsurance.com it's easy to get multiple quotes all with a click of your mouse. And during the quoting process, it's simple to add or remove coverage to see how additional coverage will affect your budget.

You can learn more about Insurance Coverages by following this link.

What are you protecting?

What assets need to be protected from being plucked away if you cause injury or damage? A) Your car itself. If this is a significant asset, or at least the bank you owe money to thinks so, then you will need comprehensive and collision. B) Your net worth. Do you have an enormous net worth to protect. If so, either get it out of your name and into a trust or buy all the insurance you can. If you have little or nothing to protect, then you can get by with less and still be financially responsible.

However, after you determine how much protection to get, always ask how much more it is for the next level higher. Very often, you can get significantly more coverage for very little cost.

Car insurance isn't flashy. There is no "wow" factor and the opposite gender isn't going to be impressed by the size of your policy. But not having enough can be the difference between financial stability and financial ruin. For what its worth, CarInsurance.com finds financial stability incredibly appealing.

http://www.carinsurance.com

3 Places not to go when you sell a car

By: Paige Filler


Car dealerships


Mainly because of their industry, car salesmen have a bad reputation in general. Sure, there are some car salesmen out there who are great people, contribute to charity, good with children, but bottom line; they still sell cars for a living. Point being, if someone wants to sell a car and they go to a dealership they will have to interact with a salesman whose one goal is to sell them a car. They don't care that you want to sell a car, all they care about is the new vehicle they want you to buy.

Particularly this coming year of 2007, it has been predicted that used car sales will rise as new car sales decline. This means that those car salesmen at dealerships will be chasing their customers with added desperation trying to defeat those projections. Do yourself a favor when you want to sell a car and avoid the headache and potential purchase that comes along with a dealership.

The local newspaper

While it may seem simple to place an ad in your local rag and deal with individual buyers yourself, beware of the many issues that may arise from this avenue. To begin with you are forced to reveal your contact information, which lets face it, in this day and age can be a bad idea. Not to mention that you are forced to meet with strangers (always do it in a crowded public place), and allow them to test drive your vehicle. This poses a liability problem to your insurance carrier, and could be a personal liability for obvious reasons.

In addition to close contact with strangers, there is also the issue of haggling, selling and convincing reluctant potential buyers, not to mention people who aren't serious about buying wasting your time. Another serious issue is payment fraud. Selling a big ticket item isn't something to be taken lightly and almost any type of payment you take can be fraudulent. If you must sell a car yourself be sure to only accept cashiers checks made out to you, and as an added step you should meet the buyer at the bank the check is drawn off of and never turn over the keys until you have negotiated the check and have cash (or another cashiers check you purchased) in your hand.

A high visibility parking lot

Car Articles

When the hunt for car articles intensifies we can safely assume that plans for a new car is in the pipeline� gone are the days when you forced yourself to believe that it is not yet time to sell your car because you were afraid of getting into the painstaking process of sifting through a heap of auto classifieds and car articles in news papers and magazines, hoping and praying that you will find the right choice. In today�s Internet age it�s all readily available at the click of a button and run a search across the world at one go! If you have finally decided that it is time to dispose your car off, take a moment to glance through the car articles at the world of Car Fanatics.

While the actual procedure is as simple as finding a suitable buyer for your current car and locating another car that suits you, with the ever mounting number of cases of fraudulent deals, it is always wise to ensure that the interests of both car sellers and buyers are protected. First of all, when you buy your car, in case you find slightest amount of urgency from the seller�s side to seal the deal, it is okay to think that there is something wrong. If you do feel convinced enough to buy this �panic sale� car, you can request for what is known as a �return option� which allows you to take written permission from the seller allowing you to return the vehicle you have been �sold� in case it turns out that the car is not in good condition. Several of these aspects are covered in our car articles.

Our car articles at Car Fanatics also serves as a great source of updated information on car accessories and other trends that are in vogue. Beginning with the functional fog lights or extra headlights and horns to the more cosmetic fancy adhesives on the car�s sides or flashing tail lights or others, car accessories are sure to add value to your car. Find out where to get them, the best ways to use them, just anything to do with car accessories are available with us.

Several of these innovative car accessory concepts are design changes made to enhance safety, thereby helping reduce the incidence of car accidents. The most unfortunate aspect about car accidents is that it usually also affects those who are not even remotely connected to driving nor have an interest in cars; passengers or pedestrians are usual victims of car accidents.

www.car-fanatics.com Car Articles

Prototype

GM debuts fuel cell Precept Prototype midsize car

General Motors Corp. announced a step forward Tuesday in the race to replace the gasoline engine with a fuel cell that gets more than 100 miles per gallon and leaves no pollution in the air. GM Precept GM's Precept concept car, powered by electricity generated by a chemical reaction, was touted as a fast and fuel-efficient auto during a preview for automotive analysts and reporters at the North American International Auto Show. Engineers said the Precept demonstrates a practical way to store electrical power and hydrogen aboard the vehicle. This development ultimately would help lower the extreme cost of the new propulsion systems to $2,000 to $3,000 per vehicle, about the same cost of today's gas engines. "This vehicle is a step in the long journey toward the different future we see for the automobile," GM Vice Chairman Harry Pearce told the audience. "We are far enough along in our research to believe we can drive the cost-curve down." Pearce showed off the Precept fuel cell car Tuesday for the first time. Detroit's annual auto show in Cobo Center opens Jan. 15 for the public. Road tests will begin by year's end to prove the lightweight hydrogen container system is durable and works reliably in different conditions. Engineers say hydrogen-powered engines could be available for family sedans by the end of the decade. Faced with complaints that their gasoline-burning engines contribute heavily to air pollution and global warming, automakers worldwide are spending billions of dollars to develop the fuel cell as an alternative to internal-combustion engines. GM's version takes in air through a rear fender vent, mixes it with hydrogen, and feeds the mix into a thin filter that sifts out electrons and forces them into the batteries for energy. The batteries power the electric motor that drives the car. Only heat and water vapor are in the exhaust. The five-passenger Precept, the size of a midsize sedan, is supposed to accelerate from zero to 60 m.p.h. in 9 seconds, go faster than 120 m.p.h., and achieve the equivalent of 108 miles per gallon in everyday traffic. Fuel cells were developed for U.S. spacecraft in the 1960s, but automotive engineers have been trying to gear down the cost and size of the equipment. In the new Precept, a chemical hydride material developed by GM scientists efficiently stores and releases hydrogen. In turn, researchers came up with a stack of high-density batteries so compact that they can fit under the cabin without intruding into the seating area. By 2004, automakers want to show fuel cells are feasible for powering a car. That's the deadline for producing an 80-miles-per-gallon family sedan under the auspices of the Partnership for a New Generation of Vehicles, a U.S. government and auto industry consortium. January 12, 2000 The Detroit Free Press By Ted Evanoff