Today’s student has a lot on his mind. Next week’s final, the big game, and the party scene are just some of the distractions facing our youth. Auto insurance is not a major concern for many students. The reasons for this can vary. Many young students are still covered on their parents’ policies, as they can be covered on these policies as long as the parents allow them to be. However, for all of the hard-working students that have to pay for their own auto insurance, there are a few key things to keep in mind.
Collision and Comprehensive Coverage for Students
If you have a new car or a newer used car, it is important to have full-coverage insurance for your vehicle. Full coverage means that you have collision and comprehensive coverage. Collision deductibles are the amount of money that you pay to the insurance company to fix your car in the event of an accident where you are at fault. These claims affect your future rates on insurance substantially. The comprehensive deductible is the amount of money you pay to the insurance company in the event that your vehicle was vandalized, involved in a hit and run, damaged in a hail storm, or even if you hit an animal in the road. These claims do not affect your future rates on insurance, as they are considered not to be the fault of the driver.
Minimum Coverage for Students
States vary in the minimum required bodily injury coverage—anywhere from 50/100/25 to 10/20/20. These numbers translate to the following: x thousands of dollars per person, x thousands of dollars per accident, and x thousands of dollars for property damage to others. Keep in mind that states have mandated minimums. In general, this is not enough coverage to ensure that all parties will be taken care of in the event of an accident.
Work with an Agent
Finally, when choosing your comprehensive and collision deductibles, ask your agent to compare different levels, and get feedback as to what they think you should do. Agents are professionals who do this kind of work for a living. They are trained and licensed, so they will help you to make the best decisions for your current situation. Also, when you upgrade your car, after you graduate, it is important to consider a different level of deductible. If you had an older car that was not worth much and carry liability only insurance for it, consider going with full coverage insurance for your new car.
Source : autoinsurancetips.com
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Automobile Magazine Car Insurance Center is one of the best one online resource for all your auto insurance needs. It was designed first and foremost as an educational tool with tips on how car insurance works, how to shop for it and lower your rates, and also includes a comprehensive glossary to clarify those esoteric terms.
Get your free quotes at AutoMag.
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You will first need to decide on what form of insurance that you need - comprehensive or third party (refer below for the difference between the two). You will then need to have the following information:
- Vehicle Sum insured (based on the market value of your car).
- No Claims Discount entitlement (you may get this from your previous insurer; the new NCD amount will also be printed in the renewal notice or check with us how to obtain the information).
- Vehicle information (registration number, engine & chassis numbers, cubic capacity).
- Number of additional drivers (it is advisable to name those drivers who will also be driving your vehicle, even if it is only occasionally, as you will avoid a compulsory RM 400 excess in the event of a claim. There is a surcharge of RM 10 for each driver in addition to you and the first named driver).
- Additional coverage required (it is advisable to obtain at least windscreen and flood coverage. It is compulsory to obtain Legal Liability to Passengers cover if you are driving to Singapore).
Please note that this tips only applicable for auto insurance purchase in Malaysia only.
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By this principle, the entrepreneur or al-Mudharib (takaful operator) will accept payment of the takaful installments or takaful contributions (premium) termed as Ra's-ul-Mal from investors or providers of capital or fund (takaful participants) acting as Sahib-ul-Mal. The contract specifies how the profit (surplus) from the operations of takaful managed by the takaful operator is to be shared, in accordance with the principle of al-Mudharabah, between the participants as the providers of capital and the takaful operator as the entrepreneur. The sharing of such profit (surplus) may be in a ratio 5:5, 6:4, 7:3, etc. as mutually agreed between the contracting parties.
In order to eliminate the element of uncertainty in the takaful contract, the concept of `tabarru' (to donate, to contribute, to give away) is incorporated in it. In relation to this a participant shall agree to relinquish as tabarru', certain proportion of his takaful installments or takaful contributions that he agrees or undertakes to pay thus enabling him to fulfill his obligation of mutual help and joint guarantee should any of his fellow participants suffer a defined loss.
In essence, tabarru' would enable the participants to perform their deeds in sincerely assisting fellow participants who might suffer a loss or damage due to a catastrophe or disaster.
The sharing of profit or surplus that may emerge from the operations of takaful, is made only after the obligation of assisting the fellow participants has been fulfilled. It is imperative, therefore, for a takaful operator to maintain adequate assets of the defined funds under its care whilst simultaneously striving prudently to ensure the funds are sufficiently protected against undue over-exposure.
Therefore the provision of insurance cover as a form of business in conformity with Shariah is based on the Islamic principles of al-Takaful and al-Mudharabah.
Al-Takaful is the pact among a group of people, called participants, reciprocally guaranteeing each other; whilst
Al-Mudharabah is the commercial profit-sharing contract between the provider or providers of funds for a business venture and the entrepreneur who actually conducts the business. The operation of takaful may thus be envisaged as the profit-sharing business venture between the takaful operator and the individual members of a group of participants who desire to reciprocally guarantee each other against a certain loss or damage that may be inflicted upon any one of them.
Thus it is necessary to emphasise at the outset that the takaful business as practiced in Malaysia is of the kind of cooperative takaful (al-takaful al-taawuni) participated by a group of members of the public for their own cause within the domain of the private sector.
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Economic loss, which is, loss or damage that can be measured in purely financial terms and compensated by money is the protection offers by Insurance Policies. For example, an Insurance Policy can pay for the cost to rebuild a building damaged by fire or replace a damaged car, for the cost of medical treatment for an injury or illness or for the lost income of a person who dies or is unable to work. The purpose is to place the injured party, as nearly as possible, in the same financial position as if the loss had not occurred.
There are many types of losses which can not be compensated by money, therefore, it is important to understand this limitation of insurance. For example, Insurance cannot replace a life or take away the emotional injury or pain which often accompanies an accident or serious illness or compensate for loss of the "sentimental" value of an item of property. When you buy a life insurance, you are insuring only the economic value of the person who is insured, i.e., the financial consequences that can be expected to result from the person's death. When you buy homeowners insurance, you are insuring only the economic value of the home, i.e., the cost of rebuild or repair it.
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There are many tips on how to choose auto insurance, but this vital few will help u alot in choosing an auto insurance :
- Shop around for insurance. There are hundreds of insurers competing for business, just give them a rang or visit their website for free auto insurance quotation
- Many of the insurers give discount for their regular customer, so ask for it
- Pick the insurance payment option that best fits your budget. You can choose mode of payment monthly, quaterly or every six months,
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This is very basic question which normally people ask when their current insurance near to expiry. Most of us end up normally to use the same insurance company as we are too lasy to find for auto insurance quotes. Tend to agree with me ?
The only other time most drivers think about their auto insurance coverage is when they're involved in an accident and have to file an auto insurance claim. This is the worst time as everything needed to submit a claim seems to be missing and even the car number also always being forgotten.
So my advice is get auto insurance quotes from few Companies at least a month before the expiry date. Get online auto insurance quotes will be good also ans hassle free.
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