Q: There is a clause in my insurance policy that talks about something called auto deductible reimbursement. I have never heard of this before. Can you explain what this means? Thank you.

A: An auto deductible reimbursement is actually a good thing to have. It usually only costs a few dollars a month and will pay you back your deductible, usually up to $500 dollars, in the event you are in an accident.

Most, if not all, insurance policies require you to pay a deductible in the case you have to file a claim. For instance if you are in a covered accident and your car will cost $1000 dollars to get fixed, your are responsible for the deductible on your policy. So you would pay $500 dollars and your car insurance company would pay $500.

If you have an auto deductible reimbursement policy in the above instance you will receive your $500 dollars back under the terms of the policy. In the case outlined above your out of pocket expenses would be zero if you have auto deductible reimbursement insurance. This type of policy can usually be added as a rider to your existing policy or it can be purchased separately if desired.

Lastly, we strongly recommend that you take a few minutes to sit down and compare auto insurance quotes online from several different companies. Doing some comparison shopping will give you a good idea of whether or not you are overpaying for your coverage and is a great way to save hundreds of dollars each year on premiums.

Car insurance premiums are calculated keeping in mind the risk factors. As is said Hope for the best but be prepared for the worst. Same, theory is used in determining the car insurance premium rate. The insurance company pays heed to how many customers are likely to make insurance claims depending upon their circumstances. The actuaries (a professional statistician who predicts future events based on number of events and probability of occurrence) try all sorts of permutations and combinations before determining the premium. They take into account the cost to be incurred in settling the claim, companys operating cost, funds to be placed in the contingent reserve, and taxes payable.

Factors affecting your car insurance premium:

Place where you reside: The place where you live is important. If you are residing in big city then the probability of accidents and thefts are high thus translating into greater premiums. Also, if you reside in a hilly area prone to earthquake or landslide then the risk of natural calamity is more and thus again the premium would be high. But, if you reside in low risk area then the premium would be less.

Your occupation: If your occupation demands a lot of driving and you use your own car for it then the car is mostly on the road and the risk of accident is high. In short, if you drive a lot then the premium would be on higher side.

Car type, model and make: The car model and make determines the risk factors associated with it. For example, SUVs would any day perform better in the collisions and hence the injury to the occupants and vehicle would be less severe. On the other hand, high end car models may incur more repairing costs and would cost more to insure.

Your driving history: It is one of the major factors in establishing your car premium. For example, if you have a clean record with no accident history you can get discounts upto 50% on your car insurance premium by the way of No Claim Bonus.

Your age: Age is also quite detrimental in deciding the premium. If you are young boy around 18 years then, you may indulge in high risk driving. Certain age brackets have to pay more premium that others.

You can opt for online vehicle insurance once you have calculated your premium by furnishing required details and have decided your insurance provider. The online vehicle insurance helps you get immediate policy issuance as it is a hassle-free and swift process.

Short term car insurance was originally conceived for the franchise motor industry and it is a valuable product that enables people to be insured to drive a specific vehicle for a very short amount of time. This can be used after purchasing a car an insurance policy takes a certain amount of time to be processed. Short term car insurance can also be used of another driver needs to be temporarily insured on a vehicle.

As with any insurance or car hire it is essential to be aware of various issues before signing on the dotted line and this article focuses on the essential things to remember when booking short term car insurance.

Remember that although you can get fully comprehensive insurance it does not necessarily mean that it covers you for every vehicle in every situation. Make sure that you clarify what the short term car insurance policy covers you for and ensure you have the difference between third party and fully comp absolutely clear. It sounds obvious but it does happen a lot.

The car that you drive must be registered with the policy before driving. Just because you have fully comprehensive short term car insurance on one vehicle, it does not mean that you can drive another vehicle. Again it is an obvious point, however if you are insured to drive a certain class of car, your insurance might not cover if you were to start driving a car of greater value.

Always check your policy carefully before driving. You have to make sure that you are clear about the liability clauses, excess limits and what your policy covers. Companies who specialise in short term car insurance often have simple and transparent policies for the period and if you need any clarification on any policy issues, make sure you contact your policy provider.

Always make a note of the dates that your policy covers. Often the short term car insurance refers to a period of between 1 and 28 days however there are other types of policy available and it is essential that you are covered whenever on the road. This is not only in case of damage to your car, but in the event of a third party being injured in an accident.

Check for any hidden surcharges and what the policy is on any extensions to your short term car insurance. The most important thing to remember that is in the eventuality of negligence on the policy holder’s behalf, many policies will be nullified. This includes instances of drink or drug driving as well as reckless behaviour behind the wheel.