Uninsured Motorist Coverage - Do You Really Need It?

Even though every state has laws requiring drivers to carry a minimum amount of car insurance, there are thousands of uninsured drivers out there.

So most car insurers are required to offer optional uninsured motorist coverage to help cover your expenses if you are in a collision with an uninsured motorist who is determined to be at fault.

Prices and coverage amounts vary with insurers, and there are several factors you need to consider when deciding about whether or not to purchase this coverage.

Most uninsured drivers KNOW they're driving illegally, and will often run from the scene of a minor accident. Uninsured motorist coverage sometimes doesn't cover a hit and run; you may have to have police confirmation of the other driver's identity and the fact that they had no insurance.

However, if their car is inoperable, they have no choice, but to accept the consequences.

A major accident is when you are most likely to need the coverage, as the cost of repairs to a newer-model car in a major accident are often more than the car is worth, and a major accident is more likely to result in injuries.

What's the likelihood of getting into an accident with an uninsured motorist? That depends on two variables: the likelihood of getting into ANY accident, and the number of uninsured motorists in your area.

Do you drive in heavy traffic or other high-risk situations? Do you drive in an urban area which may have a higher percentage of uninsured drivers? Does your state or area have a high probability of illegal immigrant drivers?

Another consideration is whether or not you have adequate health insurance coverage. If you are injured in an accident with an uninsured motorist, medical costs can be astronomical.

Choosing coverage is a complicated balancing act. Your premiums are based upon the extent of coverage you choose. But coverage for any possibility is probably going to cost more than you can afford, so you need to choose the coverage you are most likely to need within your budget.

Your insurance agent may be able to advise you. However, it's important to remember that your agent's job is to sell insurance, so he may advise a level of coverage that's beyond your budget. Make him aware of your limited budget; he'd rather write less coverage than have you miss payments and suffer cancellation of the policy and risk of losing your license or having an accident while uninsured.
As a rule, your best bet is to buy the coverage you can afford, and set up an emergency savings account to cover deductibles and minor damages that aren't worth filing claims on."

Affordable Auto Insurance - Tips Needed For Saving

In this dreadful economy everybody wants to save money right? Especially users of auto insurance. These few tips should help.

Airbags are important safety features and if your car has one you will pay less for insurance so when buying that next car make sure it come it an airbag. Engraving the VIN number of the car on the windscreen and your car having an alarm, and an anti theft protection and low jack would increase your chances of recovering your car if stolen.

Your wife just got a new car and your son now drives her old one, the family is thinking of buying separate policies for each. This would be a waste of resources. You can combine all the cars in one policy and save cost.

Taking the bus helps you save cost both on fuel and insurance policy. When you travel by bus you reduce the mileage on your policy and your insurer charge rates on mileage too.

Cars like SUVs and sports cars are very valuable and are at risk of getting stolen. The more valuable the car the higher the rate you pay on it especially new cars. Insurance companies pay more for repairs of cars if damaged so it costs them a lot of money when it is a new car that means they would charge you more rates for your expensive car.

Many insurers are willing to give discounts if their customer is willing to pay a higher deductible on their policy. So you get discount on your policy if you are willing to pay a higher deductible.

Having said all these, you must get and compare enough quotes to ensure you enjoy affordable auto insurance."

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