San Francisco Quote Blog
Basics of Auto Insurance
For drivers who are starting to look for auto insurance, the terminology of auto insurance coverage can be confusing. From deductibles to collision, liability, medical coverage, and premiums, understanding auto insurance can be quite a mental challenge.
However, once the driver understands the basics of auto insurance, he or she is more prepared to move forward in obtaining auto insurance quotes and getting the car insured.
Auto Insurance Basics: What Is Auto Insurance?
Simply put, auto insurance protects the driver financially in the case of an auto accident or an act of God. Auto insurance also pays for damage the driver causes to another car in the case of an auto accident and medical expenses borne as the result of the accident.
Auto insurance is mandated by every U.S. state. If a driver refuses to purchase auto insurance, he or she faces substantial penalties including fines, revocation of the driver's license, and even jail time in certain circumstances.
Auto Insurance Basics: How Auto Insurance Works
Essentially, drivers pay an auto insurance company a premium in order to be covered in the case of an auto accident or an act of God. In either scenario, the driver files a claim with the auto insurance company and pays only the amount of the deductible.
However, the driver may be required to contact another auto insurance company to file a claim. For example, if Driver A is at fault in an auto accident, Driver B files a claim with Driver A's auto insurance company.
The amount the driver pays for auto insurance is based on numerous factors including deductible amount, driving record, type and amount of coverage, driving frequency, local statistics regarding accidents, and safety and theft statistics of the car.
Auto Insurance Basics: Coverages and Deductibles
States differ in the way they approach auto insurance. But generally, auto insurance offers two major coverage types: liability and collision.
Liability is coverage for property damage and personal injury done to others as the result of an auto accident. If the insured causes an accident, the insured's auto insurance company pays for the damage and/or medical expenses for the other driver.
Collision is coverage for the insured's car in the case of an auto accident, for example, body work or engine part replacement. Additional types of coverage are also offered by auto insurance companies (e.g., comprehensive coverage for theft, windshield damage, and acts of God).
Auto Insurance Basics: Paying Premiums
Drivers pay premiums to the auto insurance company every six months when the policy renews. However, most auto insurance companies offer differing payment options that may lower the cost of auto insurance including extended billing and monthly payments.
Drivers can also lower their costs by adjusting coverages and deductibles. For example, raising the deductible amount for certain categories of coverage or eliminating unnecessary coverages may lower the overall auto insurance premium.
Auto insurance doesn't have to be confusing. With a basic understanding of auto insurance, how it works, coverages and deductibles, and how to pay premiums, those searching for auto insurance can be confident when approaching car insurance companies for auto insurance quotes.
Posted on March 23, 2009
Annuities: Might be attractive soon
As we debate, on the national stage, what needs to happen for our economy to grow beyond its current problems there could be one positive outcome; Interest Rates Rising! I know, this sounds crazy, but there are a few places where interest rates rising can offer some salvation.
When Alan Greenspan lowered interest rates continually beginning in 2000, there was a multitude of side effects with one of them being the internal rate Life Insurance companies paid on their investments. This effect had a shockwave through the industry. Life Insurance policies which were both Universal and Whole LIfe began to get weaker internal rates of return, which caused some policies to suffer. Also, new annuity contracts (and those ending their terms) were given very low rates as well. I was fortunate in 2001 to get my Aunt into an annuity contract paying 6%. This was an incredible rate at the time, which unfortunately the insurance company tried to not honor. However, a contract is a contract. The last time anyone saw something close to 6%, without the rate being a teaser rate, was early 2000's.
My suggestion: Take a look at any insurance contract you have entered over the past five years. With a very, very low interest rate environment comes very, very low payouts by the insurance companies. Even check out Universal and Whole Life policies which were issued over the past four years. You might be surprised to see the differences today.
** As an aside, if you had to borrow money over this same period unless you were living off the annuity you probably benefited more from lower rates **
Posted on July 7, 2008
Why are Gas Prices so High?
Did you know there hasn't been a refinery built in America in 32 Years.
Kinda makes you mad doesn't it. But don't just blame Big Oil for this, thank the lawmakers too.
Posted on June 19, 2008
World's Strongest Cat Lifts Car
Simply Amazing!
Posted on June 10, 2008
Flipping a Car Over Is This Easy
I have no idea how this person lost control of their car, but it does appear that they were having a hard time with the manual transmission. It goes to show that flipping a car over at a moderately slow speed is not that hard.
Posted on June 4, 2008
Ladies, What Age Is the New 20?
There is no question that medical treatment is getting better and people are living longer. Maybe someone someday will come up some fabulous anti-aging pill. We can only hope.
Ladies, what age is the new 20?
Posted on June 4, 2008
Video - Thank Goodness for Insurance
People do the silliest things. Thank goodness for insurance, right?
Posted on June 2, 2008
CPR for dummies
The American Heart Association endorses a simplified method of Cardiopulmonary Resuscitation
Here's a somewhat humorous video to illustrate the new technique:
It's not your parenents CPR. The previous recommended method for adults called for a combination of chest compression and artificial respiration. The artificial respiration part has been abandoned when performing CPR on adults.
The Wikipedia entry has been changed to reflect and explain the new method:
Cardiopulmonary resuscitation (CPR) is an emergency medical procedure for a victim of cardiac arrest or, in some circumstances, respiratory arrest. CPR is performed in hospitals, or in the community by laypersons or by emergency response professionals.
CPR has for 50 years consisted of the combination of artificial blood circulation with artificial respiration (i.e. chest compressions and lung ventilation). However, in March 2008 the American Heart Association, in an historic reversal, endorsed the effectiveness of chest compressions alone--without artificial respiration (see 5.1 Cardiocerebral Resuscitation below). CPR is generally continued, usually in the presence of advanced life support, until the patient regains a heart beat (called "return of spontaneous circulation" or "ROSC") or is declared dead.
CPR in a nutshell
It's pretty simple. The American Heart Association has created a new website dedicated to the technique called Hands CPR Only:
When an adult suddenly collapses, trained or untrained bystanders – that means a person near the victim – should:
1) Call 911
2) Push hard and fast in the center of the chest.Studies of real emergencies that have occurred in homes, at work or in public locations, show that these two steps, called Hands-Only CPR, can be as effective as conventional CPR. Providing Hands-Only CPR to an adult who has collapsed from a sudden cardiac arrest can more than double that person’s chance of survival.
Posted on April 3, 2008
