The impact of the financial crisis on the insurance business has been serious but not disastrous. Certainly the insurance companies have been hurt by it but for the most part they have managed to survive. There have been a few companies that have suffered more than others but for the most part the insurance companies took precautions to make sure that they would not be exposed to too much risk, at least the well run companies did. The result is that for the most part the insurance business has acted as something of a stabilizing influence on the financial markets.

The main reason that the insurance business suffered during the financial crisis is that they are major investors in the financial products that caused so much trouble. The business of insurance companies is to collect premiums from their customers and to invest that money to create a pool that can be used to pay out claims. The massive loss in value of most financial investments meant that the insurance companies ended up losing a great deal of money which had to be made up to ensure that there were funds available to pay out any claims.

Most insurance companies have very diversified portfolios to make sure that they are protected in the event of a major market downturn. In this case this turned out to be a problem. In order to diversify many insurance companies invested heavily in mortgage backed securities which were largely responsible for the financial crisis. According to insurance executive Steve Heyer the insurance companies that made sure that they did not put too many eggs in one basket have come through the crisis in reasonably good shape.

Not only have most insurance companies managed to survive but they have also proven to be a stabilizing influence. This is largely because insurance companies are large investors who by the nature of their business have to keep their money invested. Therefore when everybody else was selling the insurance companies were largely buyers in the financial markets. This played an important part in making sure that the markets did not fall any further than they did. Over the long term this should put the insurance companies in a good position since they were able to buy at very low prices but it will take some time for the value of their investments to go back up.

Do not think that your car just sustained a minor damage

After a road mishap, drivers will check their cars and might hastily decide that the damage is just minor when they only see a few dents or scratches. They fail to consider that there can be a mjor damage to the structure of the vehicle unseen during immediate inspection like a cracked axle. It will be wisest to take note of the other driver’s details like name, phone, address, and insurance information just in case you need to make a claim.

Do not be “sorry”

When you are involved in a car accident, do not immediately admit that you are at fault and say sorry to the other party. If the accident is really your fault, your insurance company will be liable for taking care of the damages. If it is not clear who is at fault, let the police investigate and decide.

Do not just hire a tow truck that is near the vicinity of the accident

The tow trucks that are immediately at the scene of the accident might be listening to police scanners for opportunities on the road. Check if the tow truck is licensed or better yet, call the towing company that you trust or have used before.

#1 You have to should the bad driving of your friend

If your friend borrows your car and gets involve in an accident, you will have to file a car insurance claim. You need to shoulder the deductibles plus your monthly premium might go up because of the claim. In case your friend does not have the permission to use your car, you will not be held liable for the damages. The other party may also sue you because of injuries and other possible claims. Best move, do not lend your car.

#2 The personal stuff inside your car is not covered by your car insurance

Laptops and other damaged personal effects are not covered by your car insurance policy. You can use your home insurance to cover for the items if the cost is beyond the deductibles. Check with your insurance agent on how you can go about it.

#3 You can stack your car insurance policies

Stacking your auto insurance policies means you can claim more than once using the same policy or among 2 car insurance policies. If you need to cover for the total cost of a damage, you can make use of the limits under the multiple vehicles covered by the policy.  Another scenario will be to combine multiple policies from different insurance companies to cover the damages. You have to check with your insurance company if there is an option for stacked policies.

#4 Usage based auto insurance may save your some money

There are car insurance policies which charge premiums depending on the amount of driving you do. If you cut down on car usage because of increasing fuel prices, then this kind of policy might work for you.  This is not available everywhere so it will be best to check with providers in your state or country If you can avail of a usage based car insurance policy.

Free Auto Insurance Quotes

There are three ways you can get free insurance quotes:

• Surf the internet for auto insurance companies and get their free quotes. There are also websites which can compare the best coverage available for your area.

• If you are not comfortable doing business over the web, you can make some phone calls and get some quotes from local car insurance firms.

• You can also visit insurance companies and fill up some forms if you want to do it face to face.

Saving some money

Once you have decided to get an auto insurance you can also try the following tips:

Increase you deductible. When you increase your deductible, you can cut some 15 to 50% from your annual insurance premium. Just make sure you are capable of paying the deductible when you have to claim.

Consolidate your car insurance policies. In case you have two or several vehicles, you can get a discount when you get your insurance from the same company.

Drop the comprehensive and collision coverage. This will be a wise move if you are driving an old vehicle. It will not be worth it paying for a very expensive coverage when it is more costly than your vehicle.

Negotiate for discounts. There is no harm in asking. You can try to ask for a discount and you will be surprised that the auto insurance company might give it to you. Remember these are businesses too which try to win clients.

The powertain warranty is a little different though, as it covers everything that makes the car move, including the engine as well as the transmission.  So it does not cover things like scratches or things that might not be under the hood – so that is a choice that you will have to make.

An extended auto warranty typically can be purchased to prolong the coverage of the bump-to-bumper status.

If you decide to buy an extended warranty though, it might be beneficial to you simply because that way, you can make sure that your repairs are covered for a longer period of time.  A lot of them are 10 years or 100,000 miles.  If you drive a lot though, that might not even be the best option for you.

In the next blog, we will talk about what the differences are between an extended warranty as well as a new car warranty.

In the next few blogs, we are going to go through auto warranties in general and make sure that you know exactly what you are looking for and what you should be looking for in the way of an auto warranty.

Firstly, when you are buying a car – you want to make sure that you find a car with a warranty attached to it, that way you know you are covered.

7. AAA also offers shopping discounts. A AAA membership card can get you a lot of discounts, in fact.

This can apply to buying tickets for a show or to go to a theme park, it can apply to hotels, it can apply to museums…

The possibilities are endless.

So do not think you have to rely on AAA solely for automotive assistance. There is a veritable wealth of benefits attached to membership.

4. Medications: AAA actually offers a program specifically for saving on prescription medications. For name brand meds, you can save up to fifteen percent; for generic meds, you can save up to thirty five percent — and this goes for pet meds, too!

5. AAA can also help you remember when things need to be done. They offer service reminders for things like tire rotation, oil changes, and other types of car maintenance that it is a little too easy to forget.

1. Bail bonding: a little known fact, AAA in certain states can actually help you if you get into this kind of trouble with traffic violations.  In addition to covering bail bonds to a set amount (typically five grand), they can offer monetary certificates for fines.

2. Money management: another little known fact, AAA can help you manage your money, through such things as IRAs, credit cards, and even personal loans.