The Importance of Uninsured and Underinsured Driver Coverage

Posted on Feb 12th, 05:04 am, under Are You Covered?

Have you ever asked yourself if you've got sufficient coverage already? You may be in need of auto insurance against uninsured and underinsured drivers. If you think they're pretty much the same thing, think again; these are two completely different forms of insurance. Here are the basics that you'll need to know in order to avoid liability on the road.

Uninsured drivers are those motorists who have, as the term implies, absolutely no auto insurance of any kind. If you are unfortunate enough to get into an accident with one of these individuals, your situation should technically be resolved in court. In reality, however, it's highly unlikely that you'll get any compensation from them, since medical and vehicle damage costs in the United States are extremely high. This is why you need an insurance policy that protects you against uninsured drivers. Fortunately, most states require this form of coverage as a mandatory add-on to any insurance policy. If your state doesn't require it, consider adding uninsured drivers coverage (UM) to your policy.

Underinsured driver coverage (UIM), on the other hand, protects you against at-fault motorists that have some auto insurance, but not enough to pay for damages in an accident. This issue is steadily becoming more important, since the minimum basic liability insurance that many states require still isn't enough to cover the damages of most collisions and accidents. Once more, this is due to the ever-increasing costs of health care and vehicle repair in the country. Therefore, in addition to UM coverage, you should also look into getting UIM as well.

Aside from the benefits listed above, UIM also helps to cover lost wages and medical costs if you get into an accident through the fault of another motorist. It really helps "fill in the gap" by compensating you for costs that aren't covered by the at-fault driver's auto insurance or your own health insurance.

But what if YOU are that underinsured motorist? How will you know? Legally defined, an individual is considered underinsured if he or she does not carry liability coverage for bodily injury and property damage. The laws regarding underinsured motorist coverage vary depending on your state. For example, in Florida, UM and UIM insurance is required. In other states, such as Texas, filing an uninsured motorist claim will increase your insurance rates. Because of all the different variables and laws, the best way to find out your personal insurance status is to ask your auto insurance agent for more information.

The Basics of Umbrella Insurance

Posted on Feb 12th, 05:03 am, under Auto Insurance 101

Is umbrella insurance the right kind of coverage for you? If you own more than one vehicle, it very well might be. But what is umbrella insurance, anyway? Let's take a closer look.

Basically, umbrella insurance is a form of coverage that protects a whole range of assets owned by an individual or an entire household. The main benefit of getting this kind of insurance policy is that all of your necessary insurances are gathered under one convenient "umbrella". This way, you can prevent redundancies and get discounts for your coverage.

Umbrella insurance is a good choice for business owners or those who possess a large set of assets where public liability can be a factor - for example, if you own and operate a whole fleet of vehicles. It's an even better idea if you already have several different policies for these assets. Compare the total cost with that of a single liability umbrella, and see the difference.

To ensure that you get adequate coverage with this form of insurance, compare various rates and see which company can offer you the best deal. Umbrella insurance is supposed to cover damages that go beyond the normal limits of a policy, so it's a very smart investment. 

To save even more, you could also try raising your deductible. There are several factors to weigh before you do this, but you'll end up paying less each month in the end. To find out what your "sweet spot" is, check our article here. 

Keep an eye out for discounts as well. They're widely available if you know where to find them. Auto insurance providers offer discounted rates for married couples, senior citizens, good students, and so on. Ask around and do your research before committing to one provider for your umbrella insurance.

Don't forget to check your credit rating when buying coverage. Auto insurance providers use your credit history as a way to measure their level of risk in covering you; the better it is, the lower your premium will be. You can get a one free copy of your credit report each year at AnnualCreditReport.com. If you've already gotten your free credit report, read up on how to get more copies here and here.

If you're uncertain about how much umbrella insurance you'll need, just talk to your insurance agent about it or check a good online insurance quote provider. You may be a good candidate for this type of insurance, so don't pass up this chance to save yourself a lot of money.  

Even More Ways Your Car Could Get Stole

Posted on Jan 31st, 10:29 pm, under Auto Insurance 101

We talked about the various sneaky methods that car thieves have at their disposal before. So you can protect yourself against theft, we take a look at some more commonly used tactics: 

1. Getting your back-up set of keys that you hid in your car. Many owners leave a second set of car keys in a magnetic box attached to their vehicle's underside. Obviously, this is a bad idea; thieves are familiar with all the usual hiding places.

2. Obtaining your personal information from your car's registration, title, or any documents with your home address on them. When you leave your vehicle, always bring your registration and insurance papers with you, and don't leave any personal information inside.

3. Getting your vehicle's specific information and have a replacement key made by the car manufacturer. The most common countermeasure for this is getting vehicle identification number (VIN) etching on your windows and windshield. However, this doesn't deter most thieves from stealing your car, so don't rely solely on this tactic. Drop your business card into your door frame through the window slot to identify your vehicle as yours, in case it gets stolen.

4. Stealing unattended, running cars while owners are dropping off the kids, using the ATM, etc. No matter how quick you think your errand will be, never leave your keys in the ignition. You want to make it as tough as possible to steal your car, so why would you give them a golden opportunity by leaving it unlocked and running? 

5. Waiting outside grocery parking lots, movie theaters, and sporting events, looking for the best car to steal. These areas are prime "hunting grounds" for car thieves, since they offer a large variety of potential targets with minimal security. As much as possible, park your car only in areas with security measures or parking attendants. If you can't do so, park as close as possible near the entrance to increase the chances that there will be a witness in case of car theft. Don't park in the far-off, dark corners of the lot, that only works to the thieves' advantage.

It can't be stressed enough: more often than not, car theft is a crime of opportunity. Of course, if a thief is really bent on stealing your car in particular, he'll do whatever it takes no matter how many deterrents you put in his way. But if you can make it really inconvenient or risky for him to steal your car, this will hopefully discourage him from going through with the theft. 

Anti-theft measures such as car alarms are a good first step, but your precautions shouldn't end there. Use the above tips to make it as difficult as possible for thieves to take your property. A proactive approach to security is always the best way to deal with thieves.