All vehicle owners know that insurance is imperative when intending to drive on the roads, for it protects one from being financially responsible for any accidents that they may cause. Car insurance is not an optional policy but a legal requirement since the cost of damages and/or medical bills resulting from any incidents need to come from somewhere – the contents of your front pocket are very unlikely to cover it!

Whilst the following stories are humorous, they do somewhat explain why car insurance costs are escalating; there are too many chancers on the road taking advantage of the (soon to be over) ‘no win no fee’ compensation model!

The 1 MPH council crash

Many individuals suffer both trauma and whiplash after a road collision but a trio of scaffolders angered a judge when they tried to claim last week for such after being hit by a council vehicle…at the grand speed of just 1 mile per hour! Each attempted to sue for a £3,700 reward on top of £6,430 for the damage caused to the vehicle. A mechanic was called upon for his expert opinion and he quickly determined that the van would cost less than £300 to mend. Eventually, it was the council who was awarded £9,332 due to the time wasted in court by the trio!

Stop blaming the new sign!

A driver from Leicestershire attempted to sue his local council for £10,000 in compensation last June when his insurance policy had to cover damages caused when his vehicle collided with another because he didn’t spot a recently installed Stop sign “in a place where no stop sign had ever appeared before.” Needless to say, the driver’s compensation claim was a failed one – it is up to the driver to be aware of the signs that litter the roads, no matter when they are installed!

Early bus catches the worm-your-way-out-of this-one

A Mancunian man smashed his car into a bus when he pulled out of his drive on New Year’s Eve last year in the early hours of the morning. The man blamed that fact that the bus was five minutes early for his accident. Like the above example, trying to sue the bus company for his hefty £9,000 insurance fine was unsuccessful – you’re supposed to keep your eyes on the road at all times, not just when the bus is not yet due!

A Sub-mersive claim!

After the Navy informed a woman from Portsmouth that her submariner husband was due to port, she drove her car to the base of the port itself. Suffice to say, it was not long until the submarine emerged which would have been fine if it were not for the fact that it accidentally smacked the side of the slip where it was due to berth, causing her car to take the submarine’s place under the water! Surprisingly in this instance however, the female driver was successful when claiming compensation from the Navy for the accident.

Author Information

Kat Cole understands how important it is for drivers to protect themselves with car insurance since she has witnessed many personal injury claims from CompensationClaims.net financially devastate non-covered vehicle owners.

Photo: Morgue File

Classic cars are collected by people who value unique automobiles that can never be replaced. Drivers of these cars must be covered by liability insurance in similar terms to standard insurance, but the actual value of the car is unique to the classic car designation. The following is a brief explanation of classic car insurance.

What is Classic Car Insurance?

Fewer than five percent of all auto insurance companies underwrite classic car insurance policies. This very specialized market segment covers vehicles under a different insurance model than standard auto insurance. Classic car insurance is different than standard car insurance and as such there are some things that you should be aware of before embarking on your search for a policy:

1. Classic cars are loosely defined as any motor vehicle that is considered collectable.
2. Categorized limits are not listed in the same way as the collision and comprehensive limits on standard auto insurance policies.
3. Since classic cars are not comparable to other makes and models, the value of the car is driven by the buyer’s market unique to classic car enthusiasts.
4. Insurance companies are insuring the market value of the vehicle and not a standard loss amount based on the automobile industry.
5. Classic car experts are consulted to set the insurance value of the specific car that is to be insured.

Use the Agreed Amount Policy Form

Insurance agents that own a classic car of their own are more likely to understand the policy nuances that must be addressed for vehicles with a set market value. Prior to signing the insurance policy papers, ensure that the following points are included in the policy.

• The Agreed Amount policy form must be used. The insurance policy form will clearly state “Agreed Amount” or “Agreed Value” on the top of the printed policy information.
• Experienced insurance agents understand the process of working with the insured driver to set an amount that the policy will pay for a loss. Theft or accident is covered in the same manner under this policy form.
• Insurance companies will pay the agreed amount for the car because there is no “actual cash value” clause within the policy documentation that would give the company permission to pay less for the car.
• Insured drivers of classic cars rely on the Agreed Value insurance policy for the peace of mind required when driving a car that is irreplaceable and unique.
• Most drivers will use the money received after a loss to find and purchase a classic car of comparable style and value.

Classic Car Insurance Limitations

In an effort to reduce the risk associated with insuring unique classic cars, insurance companies place some limitations on the use of these beautiful automobiles.

1. Most policies have a stated mileage limit of 2,500 miles each year. Some policies will allow 5,000 miles to be driven each year under the original terms of the policy. There are some policies that allow the driver to purchase additional miles.
2. Classic cars fall into the category of “occasional use” by the insurance industry and are not covered as “full use” vehicles.
3. Car repairs are covered in a unique way by the classic car insurance policy. Original parts must be located and purchased and then installed by a specialty repair shop. These costs are negotiated under the original terms of the policy.
4. After the repair, the value of the car is reassessed because the replacement parts will directly affect the value of the classic car.
5. Specialty features, such as the original wheels or steering wheel, add substantial value to the classic car. The insurance policy must cover repair and replacement of these features.

Driver Profile

Insurance companies place stringent restrictions on the driver’s of classic cars because of the high repair and replacement costs. To mitigate much of the risk associated with underwriting these specialty insurance policies, the drivers must meet the following criteria:

• Every driver must have an excellent driving record that is free from moving violations. Young drivers are not listed on classic car insurance policies and should not drive the vehicle.
• Older drivers are rewarded with lower premiums because of the perceived connection between age and maturity, which translates into risk-free driving habits.
• A second car must be listed on the policy as the full use vehicle for the driver that will use the classic car occasionally.
• The insurance policy will specifically state a car storage requirement that includes a garage.

Cautionary Statements

When the classic car enthusiast enters the insurance market, some specific decisions must be made to protect against loss.

• Select an automobile insurance agent with some experience with writing classic car insurance policies.
• Avoid adding a classic car to an existing standard auto insurance policy. The value of the classic car will not be paid under a standard policy.
• Conduct research about the exact market value of the classic car prior to contacting an insurance agent. Have the car appraised by a professional who will provide an independent assessment.
• Stand firm on the Agreed Value policy form so the insurance policy will pay the full value of the car in the event of loss.
• Take your time in finding a new classic car after the loss to ensure the best value.

Classic Car Auto Insurance Rates

Be sure that you take your time, research your options, and compare rates from various insurance companies before making a purchase.

Author Information

Melissa James is a freelance insurance reporter. She contributes for a car insurance quotes website and a website for comparing car insurance company reviews. When she is not staying on top of the latest auto insurance news she is keeping busying writing her first work of fiction.

Photo: Morgue File

Nice ride! But how much does it cost to insure?

Have you ever bought a new car only to be shocked when your auto insurer quotes you a rate far above what you expected to pay? Sure, you could turn and run to a competing insurer, but most likely your savings will prove nominal—you’ll still end up paying a lot more for insurance coverage than what you had expected.

I like to check out what the Insurance Institute for Highway Safety (IIHS) has to say about the crash-worthiness of a particular make/model. That information comes in handy: the low performers will cost more while those faring best in crash tests generally cost less to insure. That information is certainly useful when it comes to shopping, but getting a quote from your current insurer can help nail down specifics before you shop for a new car.

Insure.com recently released a report naming the best car insurance rates for a number of different vehicles. Various models of the Dodge Caliber, Mazda Tribute, Honda Odyssey and GMC Canyon won their respective segment awards, deemed by Insure.com to offer the lowest rates for a single 40-year-old male driver who commutes 12 miles to work, with policy limits of 100/300/50 ($100,000 for injury liability for one person, $300,000 for all injuries and $50,000 for property damage in an accident) and a $500 deductible on collision and comprehensive coverage.

Mr. Joe Driver also has good credit and a clean driving record, two important attributes in determining rates. Let’s take a look at what Insure.com discovered after sampling rates with six insurers in ten zip codes in each state:

About the rankings

You can find an interactive tool on the Insure.com website to help you compare auto insurance rates. And, finally, this article is not a paid endorsement of Insure.com…the information has been presented to you for your personal edification.

Progressive Insurance wants to offer you a discount, but there is just one little catch.

You’re driving down the middle lane of the interstate when a car passes you to the left then suddenly pulls directly in front of your car before swerving off the road to make a nearby exit.

You take evasive action by slamming on your brakes and quickly shifting lanes to avoid being rear-ended, an action that has you cursing under your breath while be shaken to the very core of your soul. A slower reaction on your part could have proven deadly for either you or some other driver, but the fool who started it all is nowhere to be found.

Oregon, Michigan, and Alabama are three states offering MyRate with New Jersey next in line. By the end of 2009, Progressive Insurance expects to have the program implemented nationwide.

One week later you tear open a notice from your car insurer informing you that your rates have been bumped up due to hazardous driving. It seems that the insurance company discovered certain “erratic maneuvering” on your part, for what you know was the incident that saved you from certain injury, perhaps death.

You make a call to the insurance company to explain what happened, but you hang up frustrated when the agent tells you that your information is “under review” and that an answer to your appeal is one or two weeks away. You don’t want to pay the $150 auto insurance surcharge and wonder if anyone will accept your account of what happened.

Though the story is fictitious it could provide the type of scenario that some drivers will be facing in thanks to a black box in their car which monitors driving. Progressive Insurance plans on being the first auto insurer to offer the device, a move which could cut insurance premiums for motorists who agree to be monitored.

Under the company’s MyRate program, drivers could save a whopping 60% on their insurance plans, but the catch is that Progressive Insurance will be able to log your driving habits. If you pull out too quickly when the light turns green or have a habit of slamming on your brakes, then you could find your insurance rates suddenly jacked up.

Progressive says that the information gathered will be encrypted to avoid mischief from hackers. In addition, the company says that they will not share or sell those details with other insurers…yet.

In Minnesota, which is one of the state’s currently offering the MyRate program, the local chapter of the ACLU warns that drivers who participate in Progressive’s program are essentially offering a private record about themselves which the insurance company will own.

Photo Credit: John Boyer

The mail has arrived and with it is your latest car insurance bill. You open it up and the new rate has you gasping for breath. What should you do? Will you roll over and accept the increase or will you look at some options to reduce your costs? If you choose the latter, the following five tips can help you reduce your car insurance premiums very quickly.

1. Start Shopping For A New Policy. Even with so-called “loyalty discounts” factored in, many drivers will find that a competing company offers significant savings over their current plan. This is especially true if your state recently opened up the market to expand the competition to include new providers.

2. Change Your Coverage Amounts. As your vehicle ages, you many want to consider dropping or reducing your collision coverage. In addition, your comprehensive coverage may be due for reexamination. Lastly, make certain that you are not paying for something that is already covered elsewhere such as towing insurance if included with your automobile club plan.

3. Change In Family Status. You may be paying more for your insurance if your policy shows that you are still single when, in fact, you recently married. Rates are typically lower for married folks as well as for some mature drivers.

4. Increase Your Deductible. Instantly you can realize savings by raising the deductible you are willing to pay. Maybe you don’t need that $250 collision deductible when $500 or even $1000 is sufficient.

5. Take Advantage Of Security Discounts. If you park your car in a locked garage and/or have an alarm system installed make sure that your insurer knows this as your premium should be reduced accordingly.

In many cases you may be able to save on car insurance by bundling it with your homeowners insurance. Lastly, talk with your insurance broker to see what other measures you can take to gain additional savings.