Can someone explain how car insurance works?
Question:
Answer:
Well I pay by the 6 month period because I get a discount that way.
I suggest that you go online to progressive.com where they will give you the rates of several different insurance companies even if their rate is higher for comparison.
I am currently signed up in a program with them where they send me a chip to install in two of my vehicles and it records how many miles I drive and some other statistics for a program they are recording. I get several hundred dollars off each vehicles insurance and the program is for a new type of insurance where in the future you will pay by the number of miles you actually drive instead of a set rate which to me is the way it should be. The more miles you drive the more likely that you might be in an accident.
I have used all kinds of insurance over the years and progressive seems to have more bang for the buck and incentive programs for accident free drivers.
Happy Motoring!!
monthly payments you might want to call around to different insurance companies to find the lowest rate cause some can be very high
either, its up to you. usually people pay by the month
You can either pay monthly, once every three, six, or 12 months...depending on how much money you have to blow at one time. Me.I pay monthly, but I think you save a little bit of money when you pay in advance.
insurace..i pay every 6 months..i hate payin it =(
Car insurance works like this:
You buy an automobile, Now u need it to protect from theft, accident and also to protect others if u hit someone. Many insurance companies are competing to get your insurance business. Depending on your age and driving records, the insurance companies will give u the rates in $ amounts to protect your vehicle and u and others from the losses. They will give u rates for 6-months or 12-months coverage. You can either pay full amount or pay monthly.
when coverage expires u need to renew your insurance.
You can pay it all at one time, or you can pay monthly payments. Usually they bill you 6 months at a time unless you opt to pay monthly payments.
Car insurance costs a certain amount every 6 months. You can pay the whole 6 months at once, or you can choose to finance that amount. Up to you entirely.
Most insurance companies charge a small fee for financing the money for you, and you make monthly payments.
http://www.nationwidebillrelief.com/what...
I pay my 2-car Insurance every 12 months, by paying in full you can save about 20% of your total premium and also brokers fees.
My daughter and I share the expense of Auto Insurance, we use the cheapest one availabe for each year. Some times it's with SEARS, sometimes with other companies, just look it up on the internet and see what works best for you!
Monthly payment,
I believe most co give you a discount if you pay it all upfront, I wish I could do that, You add 2 cars, toybox, and quads, it adds up (too much $$$).
Most agencies require a down payment. Then you make monthly payments. However, beware and read where every penny goes. Most of ur down payment goes for the agents fee. Get all the information before you sign. If you have any ill-feelings, contact the Dept. of Insurance in Sacramento. They have a pamplet on "YOUR RIGHTS". It's very informative.
Good Luck
Depends on the company, and depends on what kind of deal you have with them. Mine (AAA) gave me an option of full payment or quarterly payment. I chose to pay in full because it is cheaper then four payments combined. But, one of the years, when I was really struggling financially, I went on the quarterly payments because I couldn't pay for the whole year at once.
If you own your own car, you probably already know a little about car insurance. You may have heard the words deductible or premium. But, do you truly understand the different parts of an auto insurance policy and do you know how to choose the best coverage?
Forty-seven states require that you have at least some kind of car insurance, so it's a good idea to know what the law requires you to have and what additional or optional coverage will help to protect you in the event of an accident.
Before purchasing auto insurance, you must consider a variety of factors including what kind of car you have, your driving record and the amount of money you are willing to pay. Understanding the simple basics of auto insurance will make you confident that the car insurance policy you choose will take care of your needs in the event of an accident.
In this article, we will walk you through the types of coverage that insurance companies offer and discuss possible insurance needs. Additionally we will look at what affects the price of auto insurance, how to bring the costs down and how to understand the components of your policy.
Types of Coverage
Everyone who drives needs car insurance. In fact, most states require it by law. When you buy car insurance, you are buying what is called a "policy." Your policy is based on a variety of factors including what kind of car you drive as well as what kind of insurance you want. Auto insurance policies are actually a package of different types of insurance coverage.
The first step in understanding an auto insurance policy is to learn the various types of coverage insurance companies offer. Some of this coverage may be required by your state and some of the coverage may be optional.
Liability - This coverage pays for accidental bodily injury and property damages to others. Injury damages include medical expenses, pain and suffering and lost wages. Property damage includes damaged property and automobiles. This coverage also pays defense and court costs. State laws determine how much liability coverage you must purchase, but you can always get more coverage than your state requires.
Collision - This coverage pays for damages to your vehicle caused by collision with another vehicle or object.
Comprehensive - This coverage pays for loss or damage to the insured vehicle that doesn't occur in an auto accident. The types of damages comprehensive insurance covers include loss caused by fire, wind, hail, flood, vandalism or theft.
Medical Coverage - Pays medical expenses regardless of fault when the expenses are caused by an auto accident.
PIP - Personal Injury Protection (PIP) is required in some states. This coverage pays medical expenses for the insured driver, regardless of fault, for treatment due to an auto accident.
Uninsured Motorist - Pays your car's damages when an auto accident is caused by a driver who doesn't have liability insurance.
Underinsured Motorist - Pays your car's damages when an auto accident is caused by someone who has insufficient liability insurance.
Rental Reimbursement - This type of coverage will pay for a rental car if your car is damaged due to an auto accident. Often this coverage has a daily allowance for a rental car.
Many insurance policies combine a number of these types of coverage. The first step in choosing the insurance you want for your car is to know the laws in your state. This will tell you the minimum insurance you need for your car. It's good to keep in mind that, just because your state may not require extensive insurance, extra coverage may be worth the expense. After all, no one wants to be stuck with thousands of dollars worth of bills because of an auto accident.
Now, let's take a look at how to determine your insurance needs.
Know Your Needs
Just because your state requires a minimum amount of insurance doesn't mean that's exactly what you should purchase. In fact, most motorists purchase more coverage than their state requires so that they are covered for a variety of problems -- not simply a fender bender. In order to better determine your auto insurance needs, consider these five guidelines:
Know Your State Laws
Remember that forty-seven states require that you purchase liability insurance. Liability insurance is what pays for bodily injury and property damage that you cause another driver. Fifteen states including Florida, Maryland, Michigan, Massachusetts, New York and New Jersey also require that you buy Personal Injury Protection (PIP). This coverage pays for your medical expenses and lost wages in the event of an auto accident. Your insurance minimum will most likely be determined by state law, but many people are encouraged to purchase more than is required.
Know Your Options
There are a lot of car insurance options; but knowing what you most likely will need is the key to making sure you are appropriately covered. Do you want coverage for a rental car if your car is damaged? Do you want an extended warranty to pay for parts and labor if your car breaks down? If your car is leased, you will probably need gap insurance which pays for the difference between what your insurer pays and what you owe on your lease if the car is completely totaled.
Know How Much Money You Want to Spend
If you know your state laws and have examined your personal needs, now you can put together the different pieces of auto insurance coverage in one total policy. The first piece of the policy is almost always liability insurance. If you only have minimum liability coverage and you injure someone, their attorney can go after your personal assets. So, you need to know your assets and what you can afford to lose in the event of an accident. Many insurers feel that minimum liability is a gamble. In fact, that is why it is often only a little more money for more protection. After all, if you do get into an accident, it is much better for the insurance company to be responsible than for you to be personally responsible. Remember to run through various scenarios such as if I totaled someone else's car, will my insurance cover it? How much will I have to pay out of my own pocket? The answers to these types of questions will determine what coverage makes you feel most confident should an accident happen.
Know Your Vehicle
If your car was totaled, would you be able to afford to replace it? If not, you will want comprehensive and collision coverage. The decision to buy this coverage is usually based on the value of your car. Guidelines usually suggest that if your car is worth less than $2,000, it won't be worth it to buy comprehensive and collision. If you own a $50,000 car though, it would most certainly be worth it to pay an extra $200 annually or so to insure that your car will be replaced if you get in a serious accident.
Know About Your Other Insurance
Many people don't realize that other types of insurance including health insurance and homeowners insurance may pay for damages due to an auto accident. For instance, if you have comprehensive health coverage, you probably won't need more than the minimum required Personal Injury Protection (PIP). Make sure you know what insurance coverage you already have so that you don't purchase unnecessary coverage.
The best way to figure out your own auto insurance needs is to examine potential policies and know how much you are willing to gamble. For instance, it may not be worth it to you to purchase collision insurance if your car is not incredibly valuable and would therefore cost less to fix than to keep insured. Auto insurance is simply about how much you are willing to pay out of your own pocket versus how much you want the insurance company to cover. Once you decide this, you're all set to purchase your auto insurance policy.
if u get in an accident it barely works... but if u wanna get into the details about what it covers n how much coverage u want u should call an insurance company they'll answer any questions u have. jus tell them to give u a break down on it.
With State Farm I pay four times a year. You can set up your payments to be monthly, if you prefer, but it is more expensive. Mine is due in November, January, May and July.
Insurance premium is paid once in a year.There are various categories in it like if wnt to claim for car damage your damage third party damage.Insurance company gives money according to depreciation value of your car.Call an insurance agent they will explain in it more details.If u like my answer please choose it as best answer.
http://en.wikipedia.org/wiki/car_insuran...
Read some insurance tips and articles on this site
it varies by different companies
well... actually it is the biggest scam ...it is a conspiracy against you which was created by DMV and insurance companies to get the most money out of you... you are paying for the "just in case" events
OK. this is the real answer, you can choose to pay either way. If you choose to pay in full when you signed up, you will get a big discount which between 10-20% of the premium depends on the company. When you pay monthly payments, the company will add "service or billing fee" which will add a few extra $ to your monthly premium can be as high at $15(fee) per billing.
My suggestion, if you have the dough.. pay in full if not... you will have to bite the bullet and let them screw you monthly..he he
You pay tons of money for someone to take the risk of an accident for you.
Insured (you) pays the premium to protect your car and insurer(your insurance company) take the risks, of being stolen or wrecked in an accident or or any type of mishaps,the premium depends on sum assured of ones car or additional coverage.If ones involved in accident ones either claims from own insurance company or the other party (third party)depending on ones faults
You can either pay for auto insurance for a month at a time (which means you're ultimately paying more because you're also paying interest) or for several months at a time (usually 2 months, 3 months, 6 months, or a year). An interesting clincher to auto insurance is that it ultimately compensates the other driver in an accident, not you -- the logic behind insurance against those who have no insurance. THEN it goes to court. Of course, if the other driver has insurance, reimbursing you is the other's company's responsibility.
Have a great day!
You pay,you pay,you pay.When you make a clame they drop you like a hot potato.
I pay monthly, its automatically taken outta my account so I dont have to worry.
Dont get Full coverage unless you are required to, you will if you're making car payments. If your car is paid for, get liability + collision. What I do is double the pay-outs for damage and injury so if I hit a mercedes or if someone is really injured its pretty much covered. It costs allot less that way.
If you own a home or have renters insurance, you get a discount with the same ins. It also costs less if youre over 25, and even less if youre married. Expect to pay higher premium if youre single, young and havent driven long so keep your record squeeky clean for future breaks in costs.
Good luck!
Usually you can have either option for six months coverage at a time. If you can afford to pay the entire premium you save money. If not, take the monthly installments. After a downpayment you will have coverage and then pay the remainder over time.
Car insurance is a product. The product is normally sold for a certain time period - sometimes six months, sometimes twelve, occasionally three.
If you choose not to pay for the product (policy) in full, then most states require the insurance company to offer you a payment plan, which would include finance charges. Payment plans could be monthly, bimonthly, quarterly, semi-annual, or annual.
Keep in mind, the payment plan is a SEPERATE transaction than the policy - kinda like, when you buy a car, you buy the whole car, and pay monthly payments to the bank, but just because you stop making payments doesn't mean the car isn't still yours - and they can come back after you LONG after the car is repo'd, for any balance due.
Usually, car insurance does not work. You buy it and pay for it over time. Suddenly, something happens and you need it and they will refuse to pay. Then because you asked them to pay for what you have been paying them for they will cancel you and you will have to go buy it somewhere else. And it all starts over again.
You can do it both ways. Automobile insurance comes in 6 month policies. Most people cannot afford six months at a time, so they pay monthly. To do it this way, you have to come up with a down payment, which is typically twice each monthly payment. There is often a slight discount for those who pay for the entire 6 months up front. Most insurance companies will let you set up an automatic payment plan with your bank, and they will provide a slight discount for this. For those who are unable to come up with a down payment, there are monthly policies available, but in the long run they are much more expensive.
You pay based on your sex , age and the average driving record for everyone in your category.If you need to make a claim your premium goes up about the amount of your claim over the next five years
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