Insurance World

They’re in their early 20’s, freshly out in the world and earning good money, driving flashy cars that are absolutely dripping with expensive extras. Who are they?

They’re the latest “in crowd” women. They are demonstrating their freedom, independence and individuality and are apparently earning the money to fund their ladette lifestyle. Their souped-up cars with their throaty sounding wide exhausts, fancy spoilers and alloy wheels can be heard approaching from a distance by the drumming of the full-on car stereo. Quite clearly they intend to stand out from the crowd and the crowd can hardly ignore them. Figures released recently tell us that 18 per cent of women drivers in the 21 to 25 age group are driving these cars with their costly modifications and specialist trims, normally associated with male drivers.

The resulting increase in car insurance premiums in this group of drivers is hardly surprising. Their cars with their flashy modifications and expensive extras certainly attract attention and in all probability it’s not the sort of attention their drivers would choose to seek. Thieves are attracted to these flashy and expensive cars. The extras alone are tempting and easily re-sold on the second hand car accessory market.

Car insurance in general is falling and this is true for women in particular. Women generally have fewer accidents, do less annual mileage and are considered less aggressive drivers than their male counterparts.

Because of these statistics, insurers are very happy to insure female drivers. There are companies specializing in this market and there has been a great deal of advertising in the press and on television. All these companies are vying for business and have their own specific niche markets. There are carefree girlie groups, very posh middle aged women and young mums featured in the ‘ads. These specialist insurers can’t be relied on to offer the best deals, though, not matter how attractive the ‘ads or catchy the tunes. In all probability you’d find a much better quotation for your insurance by going to one of the internet brokers who’d come up with comparative quotes for you. You need to compare the cover, of course, but they’ll check out all that for you too, and even offer an on-line discount in the bargain.

Should the trend for flash and extras extend across the market, then certainly insurance premiums would show a marked increase, making it doubly important to shop around.

Incidentally, it’s the loyal customers who tend to get left behind in the best premium stakes. It’s very easy to get into the pattern of sticking the renewal notice behind the clock until more or less the day the policy is due to be renewed and then a quick call to the insurer and your insurance money is committed for another year. Spend a little time (and it really is very little) to find an on-line broker who’ll come up with some choices for you. If the price isn’t beaten, there’s nothing lost and you can remain loyal to your insurer. All the information the broker will need will be there on your renewal notice.

It’s worth the trouble. Honestly.

Insurance can be very confusing for those of us who are not in the insurance business.

Often, our insurance agents start babbling about liability, comprehensive coverage, third party liability, and more – and we feel like they are speaking a language we have never heard before. Well – in a sense they are.

Again, it is very confusing to those who are not in the insurance business. Unfortunately, if you are to get the coverage that you need, at a price you can afford, you must start learning some of the terminology.

For instance, many people do not understand what the difference between third party liability insurance and full coverage insurance is. Third party liability coverage and full coverage insurance are much the same, but in other ways they are uniquely different. Before you determine which one you need, it is important to understand exactly what each type of coverage is.

Third Party Liability Coverage is essentially coverage that protects you in the event of an accident that is your fault.

It generally covers other people and their property that is damaged in a covered accident. It does not cover you, your passengers, your boat, your motor, or your trailer. Furthermore, third party liability coverage only goes into effect if your boat is in an accident that occurred when the boat was being used in a private capacity, as opposed to a commercial capacity.

Third party liability coverage is required by most states, and each state will have its own requirements as to the minimum liability coverage amounts that you have.

This type of insurance is generally required whether your boat is financed or not. Third party liability insurance coverage is often simply referred to as liability insurance, or in the case of boats, watercraft liability insurance. Talk to your agent to find out how much coverage is required in your state.

Full coverage insurance, on the other hand, will cover you, your boat, your motor, your trailer, and your passengers.

It is often referred to as comprehensive insurance, and it is available in different coverage amounts, with different options that are available for the policy. This type of insurance will be required by most lenders who finance boats, and most lenders will have their own requirements as to which optional insurance is purchased.

Essentially, what it comes down to is that third party liability insurance coverage protects other people and their property in the event of an accident that is your fault, while full coverage insurance protects you and your property – in the same way that the third party insurance protects others.

In fact, full coverage insurance will cover you whether the accident was your fault, someone else’s fault, or even no-fault. In most cases, it is in your best interest to have both third party liability insurance coverage – which is required – as well as full coverage insurance – which may be required if you have financed your boat.

Again, even if the boat has not been financed, you should strongly consider purchasing a full coverage or comprehensive policy. Many people even continue to carry the full coverage policy long after the boat has been paid off.

Boat repairs are expensive, and anything can happen.

Most full coverage policies will cover you in the event of mechanical failure, theft, and vandalism, as well as losses caused by storms, fires, explosions, sinking, and much more. Talk with your insurance agent to find out about the different options available for full coverage policies, and make sure that you get the coverage that you need!

CopyRight Ian D. Major 2005.