Car insurance friendly cars, which are they?

You have heard about budget friendly vehicles and environmentally friendly vehicles. Have you heard about car insurance friendly cars?

Your first reaction might be: “What do I care if my insurance likes my car or not?”. The answer of course is, you should care a lot, unless you are a millionaire and then you are not likely to be reading this article. First things first, what do we mean by car insurance friendly cars?

Car insurance friendly cars are cars that car insurance like to insure. They are more desirable for car insurance for a variety of reasons. For instance they might be cheaper to repair or the price of the spares might be lower. Some vehicles also have lower rates of accidents, and that is something car insurance companies really appreciate. Vehicles can also be considered more dangerous by the size of the engine and the potential speed they can reach. Faster cars equate to more serious accidents if an accident occurs, which translates to more expensive claims for the insurance company. Finally some cars are associated with high risk groups that tend to have more accidents, like young men. Car insurance companies penalize these vehicles because these vehicles cost them more in claims and they want to incentive’s other vehicles while making the high risk vehicle owners pay for their larger slice of the insurance claim cake. Don’t you like paying more than others for the same service? Be smart choose car insurance friendly cars.

So how can I choose a Car Insurance friendly vehicle?

This article will details a number of practical sugestions to save money on your next car insurance.

1) Buy the right TYPE of car. Buy cars that do not have street racing characteristics like hyper tuned engines. Flashy sport cars and big 4×4’s, have negative connotations to do with the type of use their owners put them through. It does not mean you can’t get a nice car. In fact car insurance like new cars (less things to go wrong with them) with good safety features like ABS, side reinforcements, Airbags and so on.

2) Don’t go to popular. It is a good idea not to buy a car in the top ten most stolen cars in your country or state. National insurance crime bureau and other official organisms in other country provide lists of the top ten most stolen cars.

3) Go with cars that are cheaper to fix. Buying cars that are made in the country you live will bring down the price of spares. You should also choose houses that are built to last and that are designed to withstand bad treatment.

4) Go as inexpensive as you want. Expensive cars are most expensive to insure and insure companies prefer to limit them and might completely ignore them until they buy a new vehicle some time.

Buying cars that are car insurance friendly can save you a fortune and get you to become a pioneer that enjoyes theministry.

Car insurance facts for dummies.

If it is the first time you get car insurance or you never spent any time researching  car insurance in the past this is your chance of getting a basic understanding of the facts and terminology of car insurance. Don’t worry about the dummies part of the title, as the popular line of self help books says, “it is a reference for the rest of us”. The fact is that few of us have spent the time necessary to research all the terms that control car insurance. Some of these terms are quite specialised and belong in the legal profession which explains why so few of us understand them.

How does the Car Insurance industry work?

Let’s start by explaining what makes the wheels of the car industry spin. How is business kept in motion and how is profit made? Well, it is important to understand that Car Insurance like all insurance provides protection from the possibility of something occurring to your property, to you or your family and dependents. In the case of car industry the insurance protects you from the financial consequences of your car being stolen or damaged and the physical injuries it causes on you and the passengers in the car. Because the Car Insurance company is not actually selling you something tangible, just the promise of cash if things go badly in the future, many don’t understand the way that premiums are worked out and how to tell a good insurance apart from a bad one.

Liability insurance

This is the most important type of car insurance. It is so important it is obligatory in most countries or states. Liability insurance protects you from the financial responsibility when you damage another car, cause injuries (or even death) to others. You must check that your liability insurance is at least as high as the minimum of your country or state. A good rule of thumb is to at least have 25,000 /50,000 dollars in liability insurance. This means that the insurance company will provide up to 25,000 for a single person and up to 50,000 when there are multiple victims.

Property damage or liability insurance

This insurance will pay for any property damages you cause if you are in the wrong in an accident. This protects against damages to other cars, public and private property. You can fix your property damage liability insurance as high as you want, although this will affect your premiums.

Comprehensive insurance

This type of insurance provides financial protection when your own car is damaged by vandalism, bad weather, etc… or when it is stolen. This type of insurance can really pump up the price of your premium. You can control the cost increase by adding deductibles to this (and any other) insurance types.

Deductibles are a feature in car insurance where you cover the first xyz amount on a potential claim. For example if you have a 1,000 dollar deductible you will pay the first 1,000 dollars on any claim on the insurance the deductible applies to.