Our country is passing through a recession and at this time the focus of each one of us is to save some money or cut our expenses as much as possible. We over –look the obvious recurring expenses and Auto insurance is a major expense which is a must. Compare Car insurance quotes for free online – an offer only and unique for USA. You can easily save some money on your auto insurance premium without changing your coverage.

This is an on-line offer given by some of the best insurance companies. The auto insurance quote can be obtained at your suitable time, in the comfort of your own home. You need not spend endless hours hanging on the phone and talking to someone who is slow to understand what your purpose of query is. I know it can be really frustrating since I have had the same experience a number of times, trying to get hold of someone. What is more frustrating is hearing the response, “this was not the correct number for this enquiry – please dial 1-800-   …!” Yes, you can get this quote on your own without any hassles.

Automobile insurance covered about 175 million automobiles in the United States in 2004 and a vast number of companies over 161large insurance companies as per Wikepidea and so the options are very high. Comparing auto insurance is becoming a routine for most of us, since we are becoming smart customers and know that the insurance companies do change their auto insurance rates from time to time. The coverage’s offered by each of the insurance also differ and they would change the discounts applicable as per their underwriting philosophy or depending on the underwriting results. It is always reliable to check out the insurance rates online and than decide on the insurer. Information on the financial status of the company can also be found online, before you decide the insurer for your car insurance.

Today, the internet has made things very easy for us. It has brought about the possibility of having all the information at our finger tips. The internet has become very reliable and powerful source of information. Getting a car insurance quote is very easy, if one knows how to key in a few things. Within a matter of minutes you will get the quotes, with no hassles and that also over 5-6 options to compare from.

Even if you save $25/- per month you can save $300/- per year enough to have the extra frills like a nice dress or a gift for someone you care for, at no cost just using your own insightful thinking and skills of being an informed buyer. It’s a good way of saving your cash in the recession. Yes you can pass on the ideas to your friends and they will know what a smart person you are. Small things would make a huge difference. There is nothing to loose and lots to gain. Check out free low auto insurance quotes for yourself, make a difference!

Keith Baxter: Hi again. If I compare auto insurance quote online and find that the rates given by an insurance company are very cheap, can I cancel my present auto insurance policy and get refund in full? 

Response: Keith, when you compare auto insurance quote online and find that the rate of auto insurance is very cheap as per the offer, before you cancel your present auto insurance policy please do the following:

1) Go to the General Conditions section of the policy and read the specific condition on the “Cancellation of your policy” . Please see if there is any penalty specified for cancellation of the policy and any time-line given there. The reason for asking you to do this is because at times insurance companies do keep a penalty for cancellation of the policy. Now, if the cost of cancellation of the policy is going to be higher than the savings you are presently getting on the new auto insurance quote, if would be advisable to continue with your present insurer.

2) Ring up your insurance agent or the present insurance company with whom you are insured and ask them the condition and the penalty for cancellation. When you speak to them, note down the customer service live agent name for future reference.

Once you are sure that the cancellation of the policy can be done without any loss of money, first insurer yourself with the other insurance company, connfirm your insurance policy and than cancel your policy. Here is an important tip, in case the cancellation of the policy is done and for some reason the other insurance company does not accept your risk, you will have to pay the penalty of driving a car without insurance. Secondly, your other insurer will consider that you are uninsured and your insurance is not in continuity and might charge you more for this.

Taylor Swift: What is underinsured motorist coverage? How would taking all the auto insurance coverage of underinsured motorist help me.

Response: Taylor, we discussed this already but let me tell you this again that you need to compare auto insurance quote and coverages before you buy auto insurance. Each of the coverage has its own  risk which is covered, in short you are paid a claim only if you have the coverage for the same. The underinsured motorist protection pays you for damages that exceed the amount of coverage carried by a driver who is considered underinsured. Remember that UIM will only pay up to the limits of your policy after subtracting the amount paid by the other driver’s insurance. This means that the amount listed as your UIM limit is the total amount paid by both insurance companies, not the additional amount your insurance company will pay after the other driver’s insurance pays. Both UM and UIM apply to you and any passengers in your car, and to you and others listed on your insurance policy (including family members) when in other cars.

Uninsured motorist property damage (UMPD) coverage may seem strange, especially considering many people already have collision coverage on their car insurance. However, for careful drivers who don’t have collision coverage, UMPD can be a good way to protect their car from uninsured drivers without raising their premium a lot. In addition, a lower deductible for UMPD is frequently cheaper than collision coverage with the same low deductible. UMPD does not apply in hit-and-run accidents, because UMPD coverage is cheaper than collision coverage—making it very tempting for some drivers to make a “hit-and-run” claim under their UM coverage instead of their collision coverage, or to purchase UM coverage and not have collision coverage at all.

Uninsured motorist bodily injury (UMBI) protection can help you in another way. If you’re a pedestrian and you carry this coverage and you get hit by a car while you’re trying to cross the street, the coverage could pay your medical expenses and lost wages. That could be important, because even if you have medical payments coverage and health insurance, those still won’t pay for lost wages. You could get coverage for your lost wages by purchasing disability insurance, which many people have through their employer, but it would not cover your passengers or family members, and could disappear if you switch jobs. In addition to protecting you as a pedestrian, UM/UIM can also protect you and your family members traveling in other cars.

One thing to remember is that you should first inform the insurance company of the accident before you take action.

Taylor Swift : If you’re in an accident and the other driver is uninsured motorist  or underinsured motorist , will you be covered? Do you think I should buy this coverage for auto insurance and will the auto insurance rate increase?

Response : If you have bought the uninsured motorist or underinsured motorist coverage you will be covered for this. Let me explain to you what an uninsured motorist or underinsured motorist coverage under car insurance means.

Uninsured or underinsured motorist coverage can pay for injuries to you and your passengers, and in some locations damage to your property, when there is an accident and the other driver is both legally responsible for the accident and considered “uninsured” or “underinsured.”

An uninsured driver is someone who did not have any insurance, had insurance that did not meet state-mandated minimum liability requirements, or whose insurance company denied their claim or was not financially able to pay it. A hit-and-run driver also counts as uninsured as it relates to bodily injury (UMBI).

An underinsured driver is someone who had insurance that met minimum legal requirements, but did not have payment limits high enough to pay for the damage caused by the accident. In these situations, UM or UIM can pay you for your damages. It is important to note that uninsured and underinsured motorist coverages are separate, although in many states they can or must be purchased together.

At this time, I think it is most advisable to go for an auto insurance policy which covers you for uninsured motorist and also underinsured motorist.  The reason for this is because of the present economical scenerio most drivers are cutting on their auto insurance limits to get low auto insurance premium and reduce their expense. Some of them are in fact not buying insurance at all. . As per the Insurance Information Institute one driver out of every seven in the US is believed to have no automobile insurance. This would mean that 14% of the drivers are uninsured and only 86% drivers are insured. As per the Insurance Information Institute one driver out of every seven in the US is believed to have no automobile insurance. This would mean that 14% of the drivers are uninsured and only 86% drivers are insured. Thus those who have insurance will have to bear the brunt and pay higher premiums or make sure that they are properly insured and have all the apprioprate car insurance coverage and limits.

Joe Jackson [Los Angles]: I am planning to go to Colorado in a rented car. Do I need seperate rental car insurance?

Response: Joe, it is always important to review auto insurance coverage before you go for any trip out of your own province mainly because the requirement of each province for third party liablity is different and so you need to compare car insurance coverage and make sure you have the correct coverage for this.

Insuring a rental car can be confusing, frustrating and downright daunting. Unfortunately, many consumers do not even think about car rental insurance until they get to the counter, which can result in costly mistakes—either wasting money by purchasing unnecessary coverage or having dangerous gaps in coverage.

Before renting a car, the I.I.I. suggests that you make two phone calls—one to your insurance agent or company representative and another to the credit card company you will be using to pay for the rental car.

1. Insurance Company
   Find out how much coverage you currently have on your own car. In most cases, whatever coverage and deductibles you have on your own car would apply when you rent a car, providing you are using the car for recreation and not for business.If you have dropped either comprehensive or collision on your own car as a way to reduce costs, you will not be covered if your rental car is stolen or damaged in an accident.

   Check to see whether your insurance company pays for administrative fees, loss of use or towing charges. Some companies may provide an insurance rider to cover some of these costs, which would make it less expensive than purchasing coverage through the rental car company. Keep in mind, however, that in most states diminished value is not covered by insurers.

2. Credit Card Company
   Insurance benefits offered by credit card companies differ by both the company and/or the bank that issues the card, as well as by the level of credit card used. For instance, a platinum card may offer more insurance coverage than a gold card.Credit cards usually cover only damage to or loss of the rented vehicle, not for other cars, personal belongings or the property of others. There may be no personal liability coverage for bodily injury or death claims. Some credit card companies will provide coverage for towing, but many may not provide for diminished value or administrative fees. Some credit card companies have changed their policies, too, so you may not have as much coverage as you thought.

   To know exactly what type of insurance you have, call the toll-free number on the back of the card you will be using to rent the car. If you are depending on a credit card for insurance protection, ask the credit card company or bank to send you their coverage information in writing. In most cases, credit card benefits are secondary to either your personal insurance protection or the insurance offered by the rental car company.

   If you have more than one credit card, consider calling each one to see which offers the best insurance protection.

At the Rental Car Counter

Since insurance is state regulated, the cost and coverage will vary from state to state. Consumers, however, can generally choose from the following coverages:

• Loss Damage Waiver (LDW)
  Also referred to as a collision damage waiver outside the U.S., an LDW is not technically an insurance product. LDWs do, however, relieve or “waive” renters of financial responsibility if their rental car is damaged or stolen. In most cases, waivers also provide coverage for “loss of use,” in the event the rental car company charges the renter for the time a damaged car can not be used because it is being fixed. It may also cover towing and administrative fees.Waivers, however, may become void if the accident was caused by speeding, driving on unpaved roads or driving while intoxicated. If you already have comprehensive and collision coverage on your own car, check with your personal auto insurer to make sure you are not duplicating coverage you already have. Should you decide it is necessary, this coverage generally costs between $9 and $19 a day.
• Liability Insurance
  By law, rental companies must provide the state required amount of liability insurance. Generally, these amounts are low and do not provide much protection. If you have adequate amounts of liability protection on your own car, you may consider forgoing additional liability protection. If you want the supplemental insurance, it will cost between $7 and $14 a day.An umbrella liability policy, however, may be more cost-effective. Umbrella liability insurance is so named because it acts like an umbrella, sitting on top of your auto and homeowners (or renters) liability policies to provide extra protection including accidents while driving your own car or one that you rent. These policies, usually sold in increments of a million dollars, cost as little as $200 to $300 annually for a million dollars worth of coverage and another $50 to $100 for each additional million.

  Those who do not own their own car and are frequent car renters, can also consider purchasing a non-owner liability policy. This not only provides liability protection when you rent a car, but also when you borrow someone else’s car.

• Personal Accident Insurance
  Personal Accident Insurance offers coverage to you and your passengers for medical and ambulance bills for injuries caused in a car crash. If you have adequate health insurance or are covered by personal injury protection under your own car insurance, you may not need this additional insurance. It usually costs about $1 to $5 a day.
• Personal Effects Coverage
  Personal Effects Coverage provides insurance protection for the theft of items in your car. If you have a homeowners or renters insurance policy that includes off-premises theft coverage, you are generally covered for theft of your belongings away from home, minus the deductible. If you purchase this coverage through the rental car company, it generally costs between $1 and $4 a day.If you frequently travel with expensive items such as jewelry, cameras, musical equipment or sports equipment, it may be more cost-effective to purchase a personal articles floater under your homeowners or renters insurance policy. With such a floater, your valuable items are protected at home as well as while traveling anywhere in the world and the coverage is broader.