The Essentials of Auto Insurance
Posted on Oct 31st 2009, 01:52 am, under Auto Insurance 101
All over the country, Americans are trying to cut back on consumption and save as much money as possible. They are taking fewer vacations, keeping their vehicles longer, reducing their dependence on credit cards; in short, delaying big purchases or avoiding them entirely. In addition, most people are trying to pay off their debts and reduce their monthly expenditure. This involves a re-evaluation of their insurance policies and investments. However, don’t be tempted to shave off your insurance coverage in order to save a few more dollars each month Your monthly insurance payment can vary depending on your insurance provider and individual policy. It pays to review ALL of your insurance policies every few years so you can make sure that everything necessary is still covered, and that you're paying just enough; not too much, not too little. Let's take a critical look at your auto insurance so you can decide if what you have is still worth paying for. One vital factor that every vehicle owner should be insured against is damage from uninsured motorists. Although getting auto insurance is mandatory in almost every state, many drivers still fail to get enough coverage, and some drive without any insurance at all despite the law. If you get into an accident with one of these individuals, you need to make sure that your own policy will provide you with enough money to fix your vehicle. Liability is undoubtedly the central component of any insurance policy. If you cause an auto accident and you happen to seriously injure the other party, the cost of repairing the vehicles might be the least of your worries. Hospital bills can easily run into the hundreds of thousands of dollars. Therefore, make sure you have high limits for medical and property damage. Another important component is collision and comprehensive coverage, especially if you own a loan on your vehicle. Collision coverage protects against any damages your car sustains in a moving accident, while comprehensive insurance pays for other damages, such as thefts and accidents of nature (such as fires and floods). If you don't have either of these and you have a car loan, you will have to pay your lender to buy insurance on your behalf, at six times the normal rate. If you want to get the best rate possible, get a deductible of around $500. It's low enough that you can quickly obtain it from your savings or from other sources in case of emergency, yet high enough to keep the insurance rates reasonable. Although a higher deductible will get you a lower insurance rate, you'll probably use the policy well before you derive any benefit from the additional savings.
Switching Auto Insurance Providers
Posted on Oct 31st 2009, 01:48 am, under Find The Best Auto Insurance Quotes
If you're shopping around for auto insurance in the United States, you have a lot of choices: over 2,500 of them, in fact. Of course, as in any industry, there are some big, well-known players such as Geico, State Farm, Prudential, and Allstate, but you don't necessarily have to buy your insurance plan from one of them.
With so many companies in the game, competition is intense. This is good news for buyers. Because it's so easy to switch from one provider to another, insurance premiums and other prices have gone down while customer satisfaction has shot up. The Internet has made it even easier to find the best value for your money -- a quick web search will provide you with direct access to most of these 2,500 companies, plus company reviews and tips for buying insurance.
In addition, you don't have to limit yourself to shopping around only when you need a new insurance policy. Even when your current plan looks like a good bargain, it can't hurt looking for a firm that might offer you an even better deal.
However, always bear one thing in mind when switching auto insurance providers: never allow your old policy to lapse without activating your new one. Failure to do so will increase your premiums drastically, since your insurance company will consider you a high-risk individual due to your irresponsibility. To make things worse, your action is recorded by credit reporting bureaus, and this may lead to an increase in interest rates on any loans and credit cards you take out.
And of course, make sure you've fully considered all important details before you decide to change your insurance provider. Sometimes you may think you've found a great bargain, but it turns out that your new provider has poor customer service or a record of denying legitimate claims.
To ensure that you're dealing with a reputable firm, check your candidate provider's financial stability through services such as Standard and Poor's or A.M. Best. In addition, you can get customer service satisfaction ratings for each company at JD Power and Associates. Get all the facts on potential insurers so you can make the best choice possible.
The Link Between What You Drive and What You Pay
Posted on Oct 31st 2009, 01:30 am, under Improve Your Auto Insurance Rate
If you're dead set on owning a Ferrari or a top of the line SUV, then expect to pay dearly for it, both at the car dealership and at your insurance company. The calculation of your insurance premium is based on a variety of factors; among these, your vehicle’s price is one of the most important. Why? Simply because if your car is stolen or totally wrecked in an accident, it will cost more to replace. Pricey cars also have a higher repair costs than the average car. Surcharges may also apply to car types that are frequently stolen, or that are often involved in accidents. If you want to get an insider look at how insurance companies might value your car, look it up at the Highway Loss Data Institute (HLDI) [www.carsafety.org]. An affiliate of the Insurance Institute for Highway Safety (IIHS), the HLDI offers comprehensive information on theft rates by vehicle model, injury claims, and average collision repair costs. Both of these institutes are fully supported by auto insurance firms. The HLDI lists show that the lowest injury claims come from with large vehicles, such as pick-up trucks and SUVs, while the highest claims are associated with smaller two- and four-door cars. Along with sports cars, small cars also have the highest collision costs. Therefore, if you're looking to buy the latest sports car model, you can expect a high insurance premium to go with it. But don't assume that SUVs are off the hook, either. Though some models have relatively low insurance costs, SUVs are more expensive than other cars. Worse, they are one of the most common targets of car theft. (The Nissan Maxima currently runs a close second to the Cadillac Escalade in the list of most-stolen cars.) In addition, SUVs cost a lot to repair, especially if the four-wheel drive is damaged in an accident. In the end, however, rates still vary widely, and companies still set them based on their experience and individual policies. What we've described above are just the general trends in premium pricing. This is why you still have to do your research and shop around for the best rates.
Insurance Advice and Resources
- Auto Insurance 101
- Find The Best Auto Insurance Quotes
- Improve Your Auto Insurance Rate
- Are You Covered?
- Car Warranty
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