Monday, August 28, 2017

Car Insurance for New Drivers

If you have just gotten your driving license, you probably feel that the world is your oyster – you are now free to travel and go wherever you want. It is important to remember that passing your driving test does not automatically make you a good driver. That comes with experience on the road and an appreciation of the dangers that exist on the road. It is these dangers that you need to protect yourself against. Even if you do not make a mistake, the mistakes of others could put you and your vehicle in danger. That is why it is illegal to drive without insurance.



The Coverage You Must Have

There are varying levels of auto insurance available. In California, the minimum requirement is liability coverage. This is twofold:

 Bodily injury coverage which covers injuries suffered by others in an accident you are involved in.
 Property damage coverage which covers damage to another person’s property caused by an accident you were involved in.

The idea behind this minimum coverage is to protect others from injury or loss; it does not protect you or your car and if you are injured in an accident or your car is damaged, the medical and repair bills will have to be paid by you.

To be fully protected, you should consider optional coverages that will protect both you and your car. There are many types of optional coverage and an insurance broker will be able to help you find the policy that is right for you. That being said, here are the 3 most common types of additional coverage.

Coverage Options

Collision and Comprehensive Coverage:


  • Collison coverage covers damage to your vehicle in the event of an accident.
  • Comprehensive coverage covers damage or loss of your vehicle due to theft, vandalism, natural disasters natural phenomena etc. If your vehicle is an old one that needs to be replaced soon, then comprehensive coverage may not be essential and collision coverage may be enough. An insurance agent will be able to help you make the right decision.


Underinsured andUninsured Motorist Coverage:

Underinsured motorist coverage protects you should you be involved in an accident with a driver who does not have enough insurance to cover the damage that has occurred.
Uninsured motorist coverage protects you if you are involved in an accident with a driver who has no insurance at all.

Personal Injury Protection:

This will cover your medical expenses if you are injured in an accident, irrespective of whether it was your fault or not. This type of coverage usually allows you to have your medical bills paid without the need to wait for the accident investigation to be completed, a process that could often take a very long time.

What Do You Need?
Insurance is a complex subject and obtaining the guidance and advice of an insurance professional is always a good idea. He will be able to understand the type of driving you do, your current financials status and the type of coverage you require. He will then be able to offer you a policy that best fits your individual needs. 

Too Old For Life Insurance?

Most people buy life insurance during the years that their families are dependent on them financially. This means that the typical age for buying life insurance is between 20 and 40 which is when marriages occur, children are born and homes are purchased. However, this does not mean that you can take a policy after this period. Late marriages are more common, resulting in the financial liabilities continuing until a later age. People are now continuing to work till their 60s and 70s and/or even start new careers. Whether their aim is to simply remain occupied or supplement retirement income, the additional money becomes a part of everyday life and its loss, through the death/disability of the earner, will affect those who are part of their lives.



Life Insurance in Later Years

Contrary to popular belief, life insurance is available for those in their 60s, 70s or even older. Of course, the premiums will be higher as the age increases and there are more procedures to undergolike health checkups, etc. But that is often a small price to pay for the knowledge that if the inevitable should occur, the dependents will not suffer financially, even if they are not completely dependent on the income that is lost. For seniors whose children are financially independent and who have no liabilities, the death benefits from a life insurance policy are often seen as a way of thanking the family for the happiness they brought to the policy holder during their lifetime. Additionally, the benefits from the policy can also help to cover estate duties and other expenses.

The Type of Policy andthe Duration

For seniors, a term life policy is the best option. Death benefits will be paid to the beneficiaries if the policy holder dies during the term of the policy. The benefits of whole life insurance - thecompounding of cash value, liquidity and flexibility are not typically relevant. However, a whole life policy could make sense in some cases. An insurance broker will be able to give guidance on this after studying the policy holder’s financial status.

Age limits for life insurance vary from company to company, but in general the cut offs and duration are:
    • Age 80 for a 10-year term
    • Age 75 for a 15-year term
    • Age 70 for a 20-year term
    • Age 55 for a 25-year term
    • Age 55 for a 30-year term

Is It A Good Option For You?


Every individual and family’s case is different. If you are a senior citizen with no financial liabilities or obligations, you may think that life insurance does not make sense for you. That may be so. However, it is always wise to consult an insurance professional to discuss the matter in detail. There may be benefits for those who are important to you which you may not appreciate.