Sunday, July 8, 2007
Recreation Vehicle Insurance - The Basics.
What is a recreation vehicle? Do I need to insure it?
The first questions to answer would be, what is a recreation vehicle and why would you choose to insure it.
A recreation vehicle is one that you would normally use to fun/relaxation. For example if you normally use your car to commute but on week-end drive a motorcycle then the motorcycle is considered to be a recreation vehicle. But on the other hand you use your motorcycle to go to work on hot days then the bike is no longer considered to be a recreation vehicle.
Some of the more common recreation vehicles are:
* Motorcycles
* Boats
* Snowmobiles
* Moto-cross bikes/trail bikes/Quad bikes
* ATV's (All Terrain Vehicles) sometimes used for trail rides or hunting
* Travel Trailers
* Motorhomes
* Caravans
* Personal Watercraft (jet-skis, Inflatable and so on)
Do you need to get a recreation vehicle insurance?
In almost every case the answer is yes, the most common reason is because most good insurance company will not charge you a premium for using a vehicle from time to time. You are usually not penalised for having a recreation vehicle. In most cases a recreation vehicles is well looked after, and because, by definition, it is only used once in a while, most insurance company will offer some very low quotes.
But the other important reason is because most recreation vehicles are not used as often so the likelihood of something happening increases.
You must accept that you are not as familiar with that vehicle as you are with your everyday one. So the likelihood off an accident increases.
You should always check with your insurance company that your insurance is up to date; it is often easy to assume that a vehicle is covered for, say, 12 months when in fact it is only covered for 6 months.
You must also ensure that you are carefully following the policy, if your recreational vehicle is an RV, (Motor home or Caravan), does your license allow you to drive it?
Is the vehicle itself 'legal', (can it legally be used for the purpose you are insuring it for?)
Remember that is almost all cases, breaking the local laws will null and void the insurance policy.
Disability Insurance to Protect Your Way of Life
The idea of being sick, out of work, and inmobile real stinks, but hey, stuff happens. And that's precisely why you may want to consider purchasing disability insurance. What if an ordinary spin down the strip on a sunny day leaves you twisted up like a pretezel and being cut from the wreckage of a mangled VW Beetle? How will you support yourself and family? Do you have enough money saved to cover three or four months worth of rent, ultilities, and credit card bills? What if you are unable to work for a whole nine months, or even a year? Would you still be able to foot the bill of your monthly cost of living then?
Disability insurance is designed to replace a portion of your income should you become unable to work do to sickness or injury. Disability insurance benefits have historcially covered approximately 45% to 65% of your gross income. Although this varies depending upon the insurance carrier and the benefits that you are entitled to, as stipulated by your policy. Disability insurance companies and the policies that they draw up in representation of the clients can be as different as night and day.
There are several options and terms to evaluate in an effort to settle on the most important factor of determining the insurance carrier to purchase the disability insurance coverage from. Take this seriously-you'll want to select a disability insurance company that will be there when/if you need them. And be sure that each company give you a fresh earful on just what they define as "disabled."
Upon researching and finally settling on a disability insurance carrier, ask for disability insurance quotes of the various options available. Disability insurance generally falls into one of two categories: short term disability and long tern disability. Short term disability is generally defined as an illness or injury that keeps you from work for up to six months. Long term disability is coverage for injury or illness related income loss that commences at one year of disability.
Here are a few questions to ask your disability insurance carrier:
Is the insurance short term or long term?
When does the disability insurance coverage begin?
What is the amount of the benefits?
How long does the insurance coverage lasts?
How are claims paid?
and Can the disability insurance coverage been renewed once it has been used once already?
Disability insurance protection will remove the inability of being ill and put the ability back into paying the bills. Look at it as insurance to protect your way of life; the way of life you are accustom to.
Pay-Per-Mile Auto Insurance
With gas prices heading higher each year, many people are looking for resourceful ways to save on fuel, such as taking the bus, the train, riding a bike or car-pooling to work. Yet even with these money-saving tactics, drivers are still paying for full auto insurance coverage on their vehicles.
As we all know, there are some corners that just can't be cut. Or so we think! Many auto insurance companies are starting to consider a new insurance program that would offer consumers a discounted rate for reduced car usage. In fact, some insurance providers are already offering trial programs.
One big supporter of this new program is the Environmental Defense, anorganization currently promoting a Pay-As-You-Drive Insurance (PAYD) program to auto insurance companies throughout the United States. This innovative concept would link insurance policies to an odometer rather than just a renewal date on the calendar.
According to the Environmental Defense, PAYD would not only help save consumers money; it would also help reduce pollution. "PAYD provides financial incentive for driving less and is expected to reduce driving and congestion by 10 to12%", states an Environmental Defense official. "Driving less reduces air pollution, toxic runoff from roads, and impacts on climate."
PAYD would also make auto insurance more affordable for drivers by giving them more control of their auto insurance premiums - a change the National Organization of Women's Cents Per Mile group would be happy to see happen. According to NOW's website, low-income drivers often have to bear a higher insurance burden, unjustified by their lower mileage. This burden results in drivers dropping or not renewing their auto insurance policies. The new program will help to alleviate this problem, decreasing the number of non-insured drivers on the road while helping to reduce the financial strain on low-income and part-time drivers.
Exactly how does the PAYD program work? Currently, there are two proposed techniques that could be used to detect car mileage usage. The first method involves installing a proprietary odometer that has an embedded cell phone that occasionally calls in your mileage to your insurance company. The other technique would entail installing a GPS device into an embedded phone, such as OnStar, to detail your actual routes.
Many groups object to this method because of the possible privacy infringement. However, the GPS device does have its advantages. Not only would it track your mileage, it would also detail where and when you drove. For instance, if you were traveling in a congested area during rush hour it might cost you more, as opposed to the savings you could potentially receive for driving during off-peak hours.
How much would it cost?
Auto insurance companies would convert a portion of your current annual rate into a per mile fee. Your auto insurance company would assign your car to one of its rate groups according to your zip code, type, and usage. Once your per mile rate is determined you will more than likely be asked to pay an upfront, set fee for your predetermined number of miles. Depending on how much you drive, you could either receive a rebate or pay more.
Testing the waters.
Currently there are two pilot programs underway in the United States. One program is through OnStar, who has joined with a national insurance company to offer a mileage discount program. Offered exclusively to motorists who own GM vehicles equipped with OnStar, this program will provide owners with the opportunity to earn an extra discount based on the miles they've driven. GM motorists have the potential to receive up to a 40% discount and save hundreds of dollars annually. Discounts are given to motorists who have driven less than 15,000 miles per year - the lower the vehicle mileage, the more significant the discount. Presently the program is only available in Arizona, Indiana, Illinois and Pennsylvania.
The other program, being offered in Minnesota, is designed for drivers that own a 1996 model year or older. This test study uses a matchbox-sized electronic device that is plugged into the owner's onboard diagnostics (ODBII) port. Once set up, the sensor detects how much, how fast and when the vehicle is in use. From there, the information is used to calculate the customers discount. This free, voluntary program can potentially save participants up to 25% on their car insurancea considerable discount when you are trying to conserve funds.
Looking for ways to save on auto insurance, but don't have a PAYD pilot program in your state? Logon to Insurance.com's auto quote comparison tool. There, you'll be able to compare car insurance rates from up to 12 insurance providers, helping you save time and money on your auto insurance.
Please note that this description/explanation is intended only as a guideline.
For more information about auto insurance please go to: Insurance.com
