For the past few years we have been experiencing an increase of premiums with regard to insurance policies. I'm sure you have been asking, as I have, why are the ratings rising? One reason is inflation and to that we owe the higher volume of car accidents nationwide. As agents and consumers we have ways to help solve these high rates.
How can we help keep rates low? What factors do we need to consider?
The first thing we need to look at is the driving record. Of course it is always best to have a good driving record. A bad driving record is the number one reason for which insurance companies hike up their rates. When having a poor record, a way to improve it is to take the classes the state provides to lower points on your license. Florida has this type of program so check with your state to see if they do as well.
A second factor to keep in mind is the type of vehicle you are having insured. When buying a vehicle one needs to take into consideration the category the car will fall into and the safety features it has.
A sports car will have higher rates because of the risk of having an accident are supposed to be greater than a car from the family category. In addition insurance companies offer discounts on vehicles have safety features such as anti-lock brakes, airbags, alarm, etc. So it is a good choice to have these types of features in your car so that your policy premium can be lowered.
A third way to lower premiums is to have a policy with no lapse in it. Renewing on time and avoiding cancellations, due to lack of payment or otherwise, will help you because at renewal a discount may apply.
The final factor I will mention is the credit check companies now run to find out if you have had a previous lawsuit against an insurance company. There has been a rapidly growing amount of lawsuits against insurance companies from attorneys. If in fact you have had a lawsuit against an insurance company the policy premium might be raised due to a higher risk perceived by the insuring company.
Knowing all of these factors we may now feel more educated when we buy our car insurance.
Friday, February 13, 2009
Types of Auto Insurance Coverage Explained
A question you might ask yourself is: why must we carry auto insurance? Hopefully one answer you should hear is to protect yourself and your car. For those same reasons the government also requires you to have car insurance.
Each state requires you to carry at least the minimum requirements. Every state has different limits and deductible requiremetns. Our sites explains every requirement and handles it all when you are quoting and purchasing through our site.
There are many different types of auto insurance coverage to choose from, depending on what you want covered and what you can afford. Where should you get started?
First you should ask yourself if you have enough coverage in case of an incident occurring. Besides the minimum requirement coverage previously mentioned, there is another type of coverage that is very important, bodily injury.
Bodily injury coverage is not required by the state of Florida until you get into an auto accident. This would cover you if you were at fault in an accident and the person in the other vehicle suffered injuries exceeding their personal injury coverage. If you did not have this coverage the other party has the right to sue and the state may place a financial responsibility on your motor vehicle report, which you would have to carry for 3 years. That financial responsibility is called an SR22.
Uninsured motorist is another coverage you may want to consider. Uninsured motorist covers you if the other party was at fault and you were injured (exceeding your personal injury coverage) and they did not have bodily injury coverage. You may use this coverage to cover the difference of your injuries.
Where does you car fit for injury theft and collision? Whatabout your dream car? Take a look at this run down based on 2000-2002 HLDIdata:
There are two more very important types of coverage that you might want to explore they are: comprehensive and collision.
Comprehensive coverage would cover your vehicle in the event of fire, theft, vandalism, hail storm damage or any natural causes minus the deductible you agreed upon when purchasing your insurance.
Collision coverage would cover physical damage to your vehicle, if you were at fault in the accident, minus the deductible. The insurance company would pay the actual cash value of your vehicle. If your vehicle is financed comprehensive and collision coverage are possibly are required by your lending institution.
Extra medical payment coverage can also be provided if you are interested and the list goes on. All types of coverage are important but the reality of it is, what we can afford? Keep in mind your life and your family is very important so having insurance should be one of your main priorities.
With the web easily accessible you have a vast amount of knowledge at your fingertips to help you choose the best coverage for you and your lifestyle. Life is too short, get good advice and get the right insurance coverage for you and your family.
Each state requires you to carry at least the minimum requirements. Every state has different limits and deductible requiremetns. Our sites explains every requirement and handles it all when you are quoting and purchasing through our site.
There are many different types of auto insurance coverage to choose from, depending on what you want covered and what you can afford. Where should you get started?
First you should ask yourself if you have enough coverage in case of an incident occurring. Besides the minimum requirement coverage previously mentioned, there is another type of coverage that is very important, bodily injury.
Bodily injury coverage is not required by the state of Florida until you get into an auto accident. This would cover you if you were at fault in an accident and the person in the other vehicle suffered injuries exceeding their personal injury coverage. If you did not have this coverage the other party has the right to sue and the state may place a financial responsibility on your motor vehicle report, which you would have to carry for 3 years. That financial responsibility is called an SR22.
Uninsured motorist is another coverage you may want to consider. Uninsured motorist covers you if the other party was at fault and you were injured (exceeding your personal injury coverage) and they did not have bodily injury coverage. You may use this coverage to cover the difference of your injuries.
Where does you car fit for injury theft and collision? Whatabout your dream car? Take a look at this run down based on 2000-2002 HLDIdata:
There are two more very important types of coverage that you might want to explore they are: comprehensive and collision.
Comprehensive coverage would cover your vehicle in the event of fire, theft, vandalism, hail storm damage or any natural causes minus the deductible you agreed upon when purchasing your insurance.
Collision coverage would cover physical damage to your vehicle, if you were at fault in the accident, minus the deductible. The insurance company would pay the actual cash value of your vehicle. If your vehicle is financed comprehensive and collision coverage are possibly are required by your lending institution.
Extra medical payment coverage can also be provided if you are interested and the list goes on. All types of coverage are important but the reality of it is, what we can afford? Keep in mind your life and your family is very important so having insurance should be one of your main priorities.
With the web easily accessible you have a vast amount of knowledge at your fingertips to help you choose the best coverage for you and your lifestyle. Life is too short, get good advice and get the right insurance coverage for you and your family.
Tips On How To Save When Buying Car Insurance
If you want to save money when you purchase your car insurance here are a few ways that can help you as you search for auto insurance.
First thing you can do is comparison shop. It cannot hurt to call around to see what other prices are out there. If the price is higher you know you are where you need to be and if you find a lower rate you always have the option to change. You can use information from Florida Department of Financial Services, or a similar department within your state, to help you decide. This Florida department can show you what types of coverage are out there and give you sample rates. You can do this for other states by using the National Association of Insurance commissioners web site. Armed with this information you can get quotes from a number of companies and find the best one for you.
Increasing deductibles is another way to lower your premium. A deductible is the portion of money you pay before the insurance company pays for damages or injuries. The higher your deductible is the less exposure the insurance company has, thus your premium will be lower. If you choose the highest deductible you can afford you may save hundreds of dollars over the term of your policy.
Dropping comprehensive and collision coverage on older cars is another way you can to save money on your insurance policy. This type of coverage protects your car if it is damaged or stolen. Usually it is the cash value of the vehicle at the time of a loss minus the deducible. On older vehicles the value is lowered already by depreciation. You need to take into consideration the premium you pay, the value of the vehicle and the deductible you have. You may be paying more for the coverage then the vehicle is worth. If there is a loan on the car, you may have to keep this coverage on the car until you pay off the loan. After the car loan is paid off it is your choice if to keep these types of coverage and at what levels.
Buying a more economical car may help reduce your insurance. Yes, driving that corvette is fun but if you want to save money maybe you can be driving something that is a little less expensive. Vehicles that are costly to fix or that have a higher chance to be stolen are generally higher priced as far as your insurance premium. There are reports that you can check to find out which cars are stolen more often. One of these types of reports is by The Highway Loss Data Institute. Parts and repair times also tend to me more costly on higher end vehicles. A vehicle that is easier to repair will save with labor costs thus help lower your premiums.
Some companies give discounts if you do not drive your car as much. If you live close to your job you may get discounts for this lower mileage usage. Some companies may also list the car as an "occasional use" vehicle based on the mileage, which can reduce your premiums.
Asking about which discounts are available is a great way of reducing your premium. Discounts are given for safety features such as airbags and anti-lock breaks. Anti theft systems can reduce costs as well. Owning a house, being married, driver training courses and having no tickets or accidents are all ways that may make it possible for you to be eligible for discounts. Getting a list of discounts from your company is a great way to reduce your costs.
Maintaining a good driving record is also a major determining factor on how much the premium will be. If you can maintain a safe driving record, one without violations and/or accidents, your rates will be lower then someone who is more reckless. Many companies give discounts if there are no violations on your driving record. This is due to the company potentially having less exposure insuring a driver with a clear driving record than the driver with multiple tickets and/or accidents.
One final way to save on insurance is to keep your policy enforced. By making payments on time and keeping your policy intact you avoid extra late fees and you avoid costly tickets for not carrying the proper type of coverage that your state requires. You avoid possible a suspension of your driver's license and you also may be eligible for discounts for renewing your policy all by just keeping up with your premiums. Most companies will give renewal discounts as an incentive to stay with them and keep your policy valid and in good standing.
These are just some ways that you as a consumer may use to lower your insurance costs. Now get out there and start saving some money!
First thing you can do is comparison shop. It cannot hurt to call around to see what other prices are out there. If the price is higher you know you are where you need to be and if you find a lower rate you always have the option to change. You can use information from Florida Department of Financial Services, or a similar department within your state, to help you decide. This Florida department can show you what types of coverage are out there and give you sample rates. You can do this for other states by using the National Association of Insurance commissioners web site. Armed with this information you can get quotes from a number of companies and find the best one for you.
Increasing deductibles is another way to lower your premium. A deductible is the portion of money you pay before the insurance company pays for damages or injuries. The higher your deductible is the less exposure the insurance company has, thus your premium will be lower. If you choose the highest deductible you can afford you may save hundreds of dollars over the term of your policy.
Dropping comprehensive and collision coverage on older cars is another way you can to save money on your insurance policy. This type of coverage protects your car if it is damaged or stolen. Usually it is the cash value of the vehicle at the time of a loss minus the deducible. On older vehicles the value is lowered already by depreciation. You need to take into consideration the premium you pay, the value of the vehicle and the deductible you have. You may be paying more for the coverage then the vehicle is worth. If there is a loan on the car, you may have to keep this coverage on the car until you pay off the loan. After the car loan is paid off it is your choice if to keep these types of coverage and at what levels.
Buying a more economical car may help reduce your insurance. Yes, driving that corvette is fun but if you want to save money maybe you can be driving something that is a little less expensive. Vehicles that are costly to fix or that have a higher chance to be stolen are generally higher priced as far as your insurance premium. There are reports that you can check to find out which cars are stolen more often. One of these types of reports is by The Highway Loss Data Institute. Parts and repair times also tend to me more costly on higher end vehicles. A vehicle that is easier to repair will save with labor costs thus help lower your premiums.
Some companies give discounts if you do not drive your car as much. If you live close to your job you may get discounts for this lower mileage usage. Some companies may also list the car as an "occasional use" vehicle based on the mileage, which can reduce your premiums.
Asking about which discounts are available is a great way of reducing your premium. Discounts are given for safety features such as airbags and anti-lock breaks. Anti theft systems can reduce costs as well. Owning a house, being married, driver training courses and having no tickets or accidents are all ways that may make it possible for you to be eligible for discounts. Getting a list of discounts from your company is a great way to reduce your costs.
Maintaining a good driving record is also a major determining factor on how much the premium will be. If you can maintain a safe driving record, one without violations and/or accidents, your rates will be lower then someone who is more reckless. Many companies give discounts if there are no violations on your driving record. This is due to the company potentially having less exposure insuring a driver with a clear driving record than the driver with multiple tickets and/or accidents.
One final way to save on insurance is to keep your policy enforced. By making payments on time and keeping your policy intact you avoid extra late fees and you avoid costly tickets for not carrying the proper type of coverage that your state requires. You avoid possible a suspension of your driver's license and you also may be eligible for discounts for renewing your policy all by just keeping up with your premiums. Most companies will give renewal discounts as an incentive to stay with them and keep your policy valid and in good standing.
These are just some ways that you as a consumer may use to lower your insurance costs. Now get out there and start saving some money!
Should I Buy Rental Car Insurance?
Rental car agencies have a menu of insurance policies they would like to sell you. While each policy could be of some benefit under the right circumstances, you should review each plan (its provisions, limitations, and exclusions) before making a purchase. It is a good idea to request the detailed information from an agent at the rental office, as most companies only provide a summary on their Web sites.
Keep in mind; you may not need to buy this additional car insurance because you have auto insurance from your own car insurance company. Generally speaking, when you rent a car, the liability coverage limits you have in your own auto insurance policy remain in effect with the same limits. In addition, the comprehensive and collision coverages you have in your own auto insurance policy remain in effect with the same deductibles. You do have comprehensive and collision coverage don't you? See our article, "How Much Car Insurance Should You Buy?" for a listing of coverage types and definitions.
You may also have some kind of additional auto insurance coverage through your credit card but it is important that you check your credit card information for specific details. Some cards only offer coverage if you rent your car from a particular agency. Some limit the days for which coverage is available. Some will only provide coverage for certain types and/or classes of cars. With some cards, the coverage is not automatic and you must enroll in a program to get coverage. Some cards that advertise automatic rental insurance really only reimburse you for the deductible that you would have to pay under your regular insurance policy. Still others may provide only collision and comprehensive coverage, leaving you exposed for personal injury or property damage to others. Rental car agencies typically offer liability coverage in two parts - a supplemental liability policy protects against claims from others and a Loss Damage Waiver (LDW) covers the rental car. LDW is not technically insurance; rather, it is a company's agreement not to hold the consumer liable for loss from all or part of any damage to merchandise.
Before you rent a vehicle, realize the charges you could be responsible for and how these charges are covered or not covered by both your own auto insurance policy and the car insurance the rental company is offering.
If you suffer a loss that is not covered under your auto policy, check your other insurance policies. For example, if personal property has been stolen from your rental car, it may be covered under your homeowners or renters policy. Similarly, certain medical policies may cover costs of injuries not covered by your car insurance policy.
Keep in mind; you may not need to buy this additional car insurance because you have auto insurance from your own car insurance company. Generally speaking, when you rent a car, the liability coverage limits you have in your own auto insurance policy remain in effect with the same limits. In addition, the comprehensive and collision coverages you have in your own auto insurance policy remain in effect with the same deductibles. You do have comprehensive and collision coverage don't you? See our article, "How Much Car Insurance Should You Buy?" for a listing of coverage types and definitions.
You may also have some kind of additional auto insurance coverage through your credit card but it is important that you check your credit card information for specific details. Some cards only offer coverage if you rent your car from a particular agency. Some limit the days for which coverage is available. Some will only provide coverage for certain types and/or classes of cars. With some cards, the coverage is not automatic and you must enroll in a program to get coverage. Some cards that advertise automatic rental insurance really only reimburse you for the deductible that you would have to pay under your regular insurance policy. Still others may provide only collision and comprehensive coverage, leaving you exposed for personal injury or property damage to others. Rental car agencies typically offer liability coverage in two parts - a supplemental liability policy protects against claims from others and a Loss Damage Waiver (LDW) covers the rental car. LDW is not technically insurance; rather, it is a company's agreement not to hold the consumer liable for loss from all or part of any damage to merchandise.
Before you rent a vehicle, realize the charges you could be responsible for and how these charges are covered or not covered by both your own auto insurance policy and the car insurance the rental company is offering.
If you suffer a loss that is not covered under your auto policy, check your other insurance policies. For example, if personal property has been stolen from your rental car, it may be covered under your homeowners or renters policy. Similarly, certain medical policies may cover costs of injuries not covered by your car insurance policy.
Simple Steps to Filing Your Car Insurance Claim
Having even a teeny-tiny car accident can be one of life's least enjoyable moments. However, accidents happen, and sooner or later, we all have the experience of meeting one of our fellow road travelers up close and personal. Using the following seven steps to filing your claim will help you get over this speed bump as smoothly as possible.
They aren’t really accidents. They are more of an incident. Usually they are an incident that you would like to forget.
* Understand your policy before a loss, sit down and carefully read your insurance policy. Call your agent or company if you have any questions about what is or is not covered.
* Make sure everyone is okay and check to see if anyone needs medical attention. Even if your injuries are minor, you may still want to have them checked out at a hospital or with your family doctor. Minor injuries can become major, long-lasting injuries.
* Exchange information when you are involved in an accident, get the other driver's name, address, phone number, insurance carrier, and insurer's phone number. Be prepared to give the same information about yourself to the other driver. You can find insurers’ telephone numbers on the proof-of-insurance cards that should be carried on your person when operating a motor vehicle.
* Identify witnesses and ask witnesses to the accident for their names and phone numbers in case their account of the accident is needed.
* File an accident report and contact local law enforcement officers to have an accident report prepared. If law enforcement is not reachable, accident reports and detailed instructions are available at all police departments, sheriff's offices, your local Department of Motor Vehicles office, and on your local Department of Motor Vehicles' web site
* Notify your insurer by contacting your insurance company about the accident as soon as possible. An insurance adjuster will review the accident report to determine who caused the accident. If the accident was not your fault, you can have either your insurance company or the at-fault driver's insurance company handle the repair or replacement of your vehicle. If you use the other driver's company, you will not have a claim on your automobile policy and you will not have to pay a deductible.
* Do not release insurers too early. Do not relieve your insurance company of its responsibility until the damages are settled to your satisfaction. For example, have your insurance company handle the claim if the other party's insurance company questions its policyholder’s negligence or offers an unacceptable settlement.
* Consider these settlement factors.
o Bodily injuries: You may be entitled to a monetary settlement for injuries caused by another at fault (liable) party. It can take several days for some injuries to become apparent.
o Damages: The insurance company is responsible to pay for the reasonable cost of repairs to your vehicle. An insurance adjuster will assess the damage. Usually, insurance companies and auto body shops negotiate disagreements about what should be repaired. If you disagree with their conclusions, you have the right to obtain another appraisal at any auto body shop.
o Appraisal clause: Most auto insurance policies include an appraisal clause, which can be used to help settle disputes about physical damage claims between you and your insurance company. (The appraisal clause does not apply for claims you file with the other party's insurance company.) If you cannot reach an agreement with your company, you or your insurer can initiate the appraisal clause. Your appraiser and your insurer's appraiser then select an independent umpire to try to resolve the dispute. Check your policy or ask your agent or insurance company for more information about the appraisal clause.
They aren’t really accidents. They are more of an incident. Usually they are an incident that you would like to forget.
* Understand your policy before a loss, sit down and carefully read your insurance policy. Call your agent or company if you have any questions about what is or is not covered.
* Make sure everyone is okay and check to see if anyone needs medical attention. Even if your injuries are minor, you may still want to have them checked out at a hospital or with your family doctor. Minor injuries can become major, long-lasting injuries.
* Exchange information when you are involved in an accident, get the other driver's name, address, phone number, insurance carrier, and insurer's phone number. Be prepared to give the same information about yourself to the other driver. You can find insurers’ telephone numbers on the proof-of-insurance cards that should be carried on your person when operating a motor vehicle.
* Identify witnesses and ask witnesses to the accident for their names and phone numbers in case their account of the accident is needed.
* File an accident report and contact local law enforcement officers to have an accident report prepared. If law enforcement is not reachable, accident reports and detailed instructions are available at all police departments, sheriff's offices, your local Department of Motor Vehicles office, and on your local Department of Motor Vehicles' web site
* Notify your insurer by contacting your insurance company about the accident as soon as possible. An insurance adjuster will review the accident report to determine who caused the accident. If the accident was not your fault, you can have either your insurance company or the at-fault driver's insurance company handle the repair or replacement of your vehicle. If you use the other driver's company, you will not have a claim on your automobile policy and you will not have to pay a deductible.
* Do not release insurers too early. Do not relieve your insurance company of its responsibility until the damages are settled to your satisfaction. For example, have your insurance company handle the claim if the other party's insurance company questions its policyholder’s negligence or offers an unacceptable settlement.
* Consider these settlement factors.
o Bodily injuries: You may be entitled to a monetary settlement for injuries caused by another at fault (liable) party. It can take several days for some injuries to become apparent.
o Damages: The insurance company is responsible to pay for the reasonable cost of repairs to your vehicle. An insurance adjuster will assess the damage. Usually, insurance companies and auto body shops negotiate disagreements about what should be repaired. If you disagree with their conclusions, you have the right to obtain another appraisal at any auto body shop.
o Appraisal clause: Most auto insurance policies include an appraisal clause, which can be used to help settle disputes about physical damage claims between you and your insurance company. (The appraisal clause does not apply for claims you file with the other party's insurance company.) If you cannot reach an agreement with your company, you or your insurer can initiate the appraisal clause. Your appraiser and your insurer's appraiser then select an independent umpire to try to resolve the dispute. Check your policy or ask your agent or insurance company for more information about the appraisal clause.
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