Auto insurance is a state mandate requirement; this mandate stipulates all automobiles be insured prior to driving on the highway. Whether you are new in town, or you just purchase a new vehicle, you will have to purchase auto insurance. Choosing automobile insurance can be time-consuming and a complicated process if you are unfamiliar with the basic types of auto insurance. However, as you acquire auto insurance knowledge, you will find that it is less complicated than you thought.

Basic auto insurance is in place to protect you against property damage, liability, as well as medical cost in the event of an accident. Vehicle insurance comprised various types of terminology and each type covers different aspect of your auto benefits. 

Accident damage covered under the collision umbrella usually carries a deductible, which can be as high as $1000. The deductible amount you select is the amount you pay up front in the event of an accident. 

Comprehensive coverage reimburses you for damage not collision related such as fire, an animal running into your automobile also loss due to theft. This type of coverage in some cases does not require a deductible. In the cases where a deductible is needed, the deductible is relatively low.

Bodily injury is coverage that is caused by a third party resulting in an injury to you or your family member. This type of insurance is necessary because the liability to you can be extremely high with the cost of medical care and legal proceedings. Therefore, you will find that most states stipulate a threshold dollar amount minimum liability insurance coverage. Some insurance experts however recommend consumers purchase above the state minimum to protect their financial asset.

Medical Payments also referred to as Personal Injury Protection pays for your medical expenses as well as lost wages because of an auto accident. 

Consider property damage liability, it pays for damages that you inflict to someone else’s vehicle.

When you are shopping for auto coverage, you should inquire about discounts. Most insurers offer discounts for car features such as anti-lock brakes, alarms, safe driving records etc. You can also perform comparison-shopping online to make sure you are receiving the best rates available.

Classic car insurance is a perfect way to protect your investment against damage, theft, or other unforeseen circumstances that may arise. We love classic vehicles, but many of us have no idea how to go about insuring them. Even some of us do not realize how valuable classic car insurance can be in case of an accident. Today let us look at why this type of insurance is almost a necessity in today's world of classic automobiles. 

Most people put a lot of hard working in buying and restoring their classic vehicles. It is tough to find parts and locate other items for classic vehicles. This is why classic vehicle insurance is something you must have for a number of reasons. First, if you have your vehicle on the road accidents will happen. No matter how careful you are, you have the chance of being involved in an accident. Keeping your vehicle insured will help give you peace of mind just in case something happens.

Theft these days is another big reason to have classic car insurance. It is widely know that classic vehicles tend to hold their values exceptionally well. Thieves understand this and theft is on the rise so you must protect yourself with insurance on your vehicle. Replacing classic vehicles can get quite expensive as there are fewer in the marketplace. This is why classic car insurance is more expensive than other types of insurance. There are a few things you should know about buying classic car insurance so you can get the best deal.

Buy this type of insurance from a carrier who specializes in this insurance. They will be able to cater a policy more towards what you need. Carriers who do not specialize in it do not understand what you really need and that will not help you. Read the contract very carefully as different companies have different rules on what they will replace and how much. Some may give you full value for your vehicle while others may not. Get several quotes so you can see which is the best deal. Owning a classic car can be very rewarding and fun, but getting the insurance you need should not be a problem by following our tips we have outlined.

Every state has different laws, but we will use Tennessee as an example as a typical state.

In the state of Tennessee when you are convicted of a DUI, on the first offense you lose your license for one to two years. some times you are granted a hardship license that allows you to drive to work and home. You have to keep a copy of your schedule on you at all time to prove that is the hours you are supposed to work. If you get caught driving any other time other than the hours you are scheduled you will lose that hardship license for yet another year.

You will have to serve 24 to 48 hours in jail. You will also have to do community service of 24 hours. When you get a DUI you have court cost that are expensive. On top of having court cost you wll have eleven months and twenty-nine days of probation. With probabtion you will also have probation fees. 

Of course, every state has different laws.  For example, when you get a DUI in Tennessee you have to switch your car insurance to SR-22, and sometimes that can be very expensive and you have to carry it for a lengthly amount of time. Mind you this is just for the first offense. The fines and jail time become larger with each and every DUI that you face.

SECOND TENNESSEE DUI OFFENSE

• second conviction within past 10 years(misdemeanor)
• at least 45 days jail;
• two year license revocation (one year wait for restricted license);
  DUI school;
• fines of at least $600;
• possible ignition interlock device.

THIRD TENNESSEE DUI OFFENSE

• at least one prior within past 10 years (misdemeanor)
• at least 120 days jail;
• at least three year license revocation (no restricted license available);
• DUI school;
• fines of at least $1100;
• possible ignition interlock device.

FOURTH TENNESSEE DUI OFFENSE

• felony charge
• at least 150 days jail;
• five year license revocation (no restricted license available);
• DUI school;
• fines of at least $3000;
• possible ignition interlock device. 

Each offense get more expensive and requires more jail time. The smart idea would be to avoid a DUI and if you will be under the influence, the suggestion would be to have a designated driver that you could depend on

Many people have heard the term "no-fault insurance." However, do you understand what that actually means? In short, a no-fault insurance system is an auto insurance policy required by state law in which each driver purchases auto insurance that protects him or her and limits his or her ability to sue other drivers for damages while also protecting him or her from being sued for damages by the other drivers in most cases.

Therefore, if you are involved in an auto accident, your insurance company will pay your damages, up to your policy limits, regardless who was at fault. These limits must meet your state's minimum coverage if your state is a "no-fault" state. The other drivers involved in the accident would be covered by their insurance policies. The theory behind this system is to ensure every motorist would receive immediate coverage for damages, thereby reducing the law suits resulting from an accident. This would, in turn, help keep insurance premiums down.

However realistically, there is no "pure" no fault system in practice by any state in which drivers would totally be covered by their insurance policies and, therefore, nobody would sue the other driver for damages. In reality, every "no-fault" state utilizes some form of "no-fault" and standard liability system. Therefore, drivers are responsible for some damage costs that he or she is found "at-fault." Consequently, law suits can be permitted depending upon the monetary amount or severity of the accident.

Currently, Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, Utah, and Puerto Rico are considered "true" no-fault states.

Arkansas, Delaware, Washington, DC, Maryland, New Hampshire, Oregon, South Dakota, Texas, Virginia, Washington, and Wisconsin are considered "add-on" states because they require insurance policy coverage that offer elements of the no-fault system which the true no-fault states feature.

The other 28 states: Alabama, Alaska, Arizona, California, Colorado, Connecticut, Georgia, Idaho, Illinois, Indiana, Iowa, Louisiana, Maine, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, North Carolina, Ohio, Oklahoma, Rhode Island, South Carolina, Tennessee, Vermont, West Virginia, and Wyoming, feature the traditional "tort liability" system in which there are no restrictions on law suits.

Again, since there is no pure no-fault system in practice and every state's laws vary, it is recommended that you contact an experienced personal injury law firm to determine how fault and no-fault laws may affect your situation should you be involved in an auto accident and wish to recover damages for injuries sustained.

Minimum no-fault coverage limits vary between states. As previously stated, some state laws allow law suits depending the severity of injuries incurred, or if the total cost for damages reach a specified monetary dollar amount. Therefore, many no-fault systems will cover damages sustained up to a driver's policy limit, which must meet the state's minimum limits, but will also allow the injured party to sue for damages exceeding that specified limit.

You may have heard Personal Injury Protection (PIP) used synonymously with no-fault insurance. PIP is the name of the actual insurance policy under a no-fault system. Although PIP minimum coverage limits vary between participating states, they are similar in that the benefits usually cover most injury-related expenses including: medical costs, lost wages as a result of injuries, compensation for loss of services, funeral expenses, and death benefits. Generally, damages such as pain and suffering, and emotional distress and inconvenience are not covered by no-fault insurance coverage. It is important to note that medical expenses or lost income above your PIP limits are not covered. Typically, an additional insurance policy to cover physical property damage is not covered under PIP and is typically needed.

Choice No-Fault Insurance

Under this system, drivers can choose to retain elements of no-fault and the traditional fault or tort liability systems. States such as Kentucky, New Jersey, and Washington, DC offer versions of choice no-fault systems.

For example, the difference under a no fault system is that a driver is not allowed to sue an at fault driver for non-economic damages and is also protected from such suits if found at fault. Under choice no-fault, if that driver opts to retain his or her right to sue for personal injury under the traditional tort system, he or she can sue other drivers who have also elected to retain their tort liability rights. Keep in mind that the first party is not protected, and can, therefore, be sued by the second party.

Conclusion
Since situations resulting from an accident can get complicated, an experienced personal injury attorney specializing in motor vehicle accidents can help you sort out your rights and entitlements under the state in which the accident occurred. Therefore, they can clarify and recommend your best option under the applicable laws of that state. © Copyright 2005 The Auto Insurance Web Company

When you are looking at late payment consequences, you are looking at the possibility of the car insurance company canceling your car insurance due to the late payment that you have made. When the car insurance company issues you a policy, you have agreed that you are going to be financially responsible for the car insurance payment. Most of the car insurance companies will not cancel the car insurance the first time that the car insurance is due, unless you are doing this on the first month of the account. Then you are most likely going to see that the car insurance is going to be canceled. 

Most of the insurance companies will allow for you to run a few days late on your payment so long as you call them to let them know that something has occurred and that you need to run a few days past your due date. You will need to make a promise that the insurance is going to be paid within a short time after the insurance due date in order to keep your insurance. If you have repeatedly done this then the insurance company may very well cancel the insurance policy. 

While every state has their own rules on what can and can not occur when it comes to your insurance policy, each company can do as they wish when it comes to the late payment. You want to be very cautious when it comes to how many times you are going to pay your policy late. Otherwise you may just find out one month that your insurance policy is null and void. 

Always bear in mind that when you fail to make a payment on your car insurance that you run the risk of your insurance being canceled. Since most times the insurance company will not call to notify you that your insurance is canceled, you run the risk of driving on a insurance policy that you had no idea had been canceled. If this occurs then you have the chance of being pulled over and arrested for driving without insurance. This can be a more costly mess than if you had just paid the insurance policy in the first place and on time.

There are many things you automobile insurance company just won't say. They leave you to discover them yourself, which can be a tough learning experience.

1. We Charge Young Drivers More, Especially Men

The statistics show that drivers under 25, especially men, have trouble getting insurance. When they do manage to get insured, their rates can be up to 100% higher than older drivers. This survey was taken in 2009 and posted on insurancerates.com.

2. Bad Credit? We're going to charge you even more.

Insurance companies have been taking credit histories into account since the 1990s. In fact, more than 90% do it.

3. You're not going to find out how we set our premiums.

In the 1990s, most insurances companies used the same set of pricing. They divided their customers into a few pricing tiers based on their age, driving record and where they lived. Nowadays, the formula is extremely complex and most consumers have little chance of fully understanding it.

4. Your car is worth so much less with that accident history.

It doesn't matter that you restored the car to tip-top condition. It could be in better shape than before the accident, but an insurance company won't care. It's worth less because of the accident history.

5. We don't use Kelley Blue Book or Edmunds.

The blue book is how most people find out what their used car is worth, but if you happen to total your car, the insurance company won't be using this method. Instead, many of them use claims servicing companies. This can end up costing you thousands of dollars, or much debating over the phone at the very least.

6. We define "totaled."

As a rule of thumb, an insurance company will rule a car totaled when the repairs exceed 70% of the automobile's value.

7. Your mechanic works for me.

Some companies actually own nationwide chains of repair shops, which might give us cause to be wary.

8. We don't want you to switch.

It's not uncommon for insurers to have tricky clauses for cancellation. Ask about their policy before jumping ship.

9. Our prices probably aren't the best.

Always make sure to get quotes from other companies. You may want to do this yearly to snag better and better deals.

10. Claims go on your history, even if we paid nothing.

If you filed a claim with the insurance company and ended up paying out of pocket due to the deductible, it still goes against you. This might make it difficult to switch insurers in the future.

11. Frequent claims? We quit.

Insurance companies will not stick with you for the bad times. If you end up filing four or more times (number varies) within a short period of time, they will drop you like a sack of potatoes.

12. You need a lawyer.

If you've been in an accident and think you need a lawyer, you might actually need one. But some insurance companies even sound out brochures saying not to hire one.

If there is a difference between the balance that you owe on your car and the actual value of your vehicle, gap coverage will cover that amount. Gap coverage will protect you if someone steals your vehicle or if it is totaled in an automobile accident. For example, if you owe $15,000 on your vehicle and you get into a serious car accident that is not your fault, the insurance company will have to determine what your car is worth. If your car is only worth $13,000, the insurance company will cover that amount. Since you owe $2,000 on your auto loan, you would be responsible for paying that off. If you had gap coverage, you would receive a benefit for the $2000.

So who should purchase gap coverage? If you did not put a lot of money down when you bought the car, if your auto loan interest rate is high, or if you purchased a vehicle that depreciates quickly, you should consider purchasing gap coverage. If you do not owe a lot of money on your vehicle or if you put a very large down payment on it, you probably don't need the extra protection. If you suspect that you owe more money than what your vehicle is worth, you should definitely consider buying the extra coverage.

If you are interested in purchasing gap coverage, contact your insurance provider. Find out if they offer gap coverage and what it will cost you. Make sure you review your policy carefully before you sign up for the extra insurance. Gap coverage is usually affordable. It may cost you $100 to 5 percent of the vehicle's sticker price. 

If you are paying your vehicle through the dealer, you can contact them about purchasing gap insurance. If they do not offer it, you should contact an insurance company about purchasing it. Keep in mind that if your car is very old, you may not be able to get gap coverage, but it really depends on the insurance provider. The prices and rules vary among insurance providers. If you decide to purchase gap coverage with your insurance company, they will add it to your current policy.

Umbrella policies are liability insurance policies. An umbrelly policy will protect you, your family, and your assets and it is affordable. It will protect you against lawsuits and claims. If you experience a tragedy and your vehicle or home insurance runs out, the extra coverage will kick in. Generally, people can buy umbrella policies that are worth $1-$5 million. How much you can purchase will depend on the insurance company.

If your money and assets amount to more than the limits of your homeowners or auto insurance, you should purchase an umbrella policy. If someone sues you, you can lose your savings, your home, vehicle, retirement or college fund, wages and such. If you purchase an umbrella policy, you will secure your lifestyle.

So what will an umbrella policy cover? It will cover lost wages, the victim's hospital and medical bills, damage to property, attorney fees, and legal fees. If someone sues you for slander, false arrest, imprisonment, mental distress and other liability situations, you would have the protection that you need. Keep in mind that if you get sued for $3 million and your insurance company only covers $2 million, you are responsible for paying the balance. If you are a homeowner, you should definitely consider purchasing the extra liability coverage. It is also important to note that some types of lawsuits aren't covered with a car or homeowners insurance policy, so umbrella insurance will keep you safe. 

An umbrella policy will cost you about $150 per year or more. The prices vary among insurance providers. If you want to find an affordable umbrella policy, you should compare rates with several insurance companies until you find the best deal. I strongly recommend that you obtain at least $1 million of liability coverage. If your home and vehicle is insured with one insurance company, you should definitely contact them about purchasing an umbrella policy because you might be able to get a discount on your monthly premiums.

Many people are at risk because they never purchased an umbrella policy. Others did not purchase enough coverage to secure their assets. If you have any questions and if you need advice about how much coverage is necessary for your lifestyle and financial situation, consult with your financial advisor.