Three Things You May Not Know About Your Auto Insurer

Posted on Jan 31st, 10:28 pm, under Auto Insurance 101

Buying auto insurance may seem like a straightforward thing: look for the deal that offers the features you want, for a price that you can afford. However, there are many other factors at play behind the scenes that customers are frequently unaware of. These are just a few of the tricks of the trade that buyers should know before they purchase auto insurance:

1. What agents are paid affects what they tell you.

Agents can help you make sense of auto insurance policies, but don't think they have your best interest at heart. The bottom line is that they're paid to sell you their products. Insurance firms offer agents two types of commissions: "steering commissions", which they get for successfully directing consumers to a specific insurance company; and profit-based commissions, for when customers don't file lots of expensive insurance claims. 

What are the potential issues with these? Profit-based commissions gives unscrupulous agents an incentive to discourage or delay claims. Steering comisions, on the other hand, can make them force certain policies on customers in order to get bigger commissions. Therefore, next time you buy a policy, ask agents to explain why they're recommending a certain plan and inquire about their commissions as well. 

2. Younger drivers are charged extremely premiums.

Insurance companies consider teenagers and drivers under 25 a high-risk group, especially males of this age. They get charged higher rates, as we've pointed out before, but what you may not know is that this can be almost 100 percent more than drivers between 60 and 74 (according to InsuranceRates.com).

There isn't much you can do about this, since insurance firms all over the country go by these general standards. Typically, younger drivers will need at least three years of experience if they want to avail of lower rates. It helps, however, to use cars with lower engine capacity and to complete a defensive driving course. And whatever you do, don't use a sports car. Ask your insurance provider about how you can further lower rates for younger drivers.

3. Your auto mechanic? That's their mechanic.

Like medical insurers and HMOs, auto insurers have their own affiliates among car repair facilities. So if you ever get into an accident, your insurance firm will refer you to their list of "preferred providers". What's more, some large auto insurers, such as Allstate, have even gone so far as to purchase their own nationwide chain of auto repair shops.

Of course, in almost all cases, it's still your choice whether you want to use your insurer's auto repair shop or not. It can be convenient to do so, and you can usually get your deductible waived or reduced. However, there's an incentive for these preferred providers to cut corners, since they're under pressure to keep repair costs low. Therefore, make sure you ask an independent inspector to examine the repairs and ensure that your car got what it needed. 

Five Ways Your Car Could Get Stolen (And What To Do)

Posted on Jan 22nd, 01:13 am, under Auto Insurance 101

According to the Insurance Information Institute, a car gets stolen in the United States every 24 seconds. It's an unfortunate truth that no matter how many types of anti-theft devices come out each year, auto theft still remains a thriving industry. 

This is not to say that you shouldn't bother using a car alarm. Besides lowering your insurance premiums, car alarms are still a necessary measure, provided you use them well.

So let's say you've already covered the basics: you've installed anti-theft protection and you're driving a model that doesn't attract thieves' attention. What else is there to do? Here are five of the most common car theft methods thieves employ. Get familiar with them so you can take the necessary precautions:

1. Cutting your steering wheel. If you use a steering wheel lock, car thieves can easily overcome this simply by sawing through the wheel itself. To prevent them from actually taking your car anywhere, it's more effective to use a starter disable switch. Make sure you keep it in a place only you can access.

2. "Accidentally" bumping your car. Car thieves will often bump up against a car to check if it has an alarm. And since car alarms these days are set off by practically anything, people have learned to ignore them when they go off (ironically). Instead of using a motion-sensitive device, use an alarm that pages you as soon as it's activated.

3. Breaking windows. This is one of the most common methods of entry. Alternatively, thieves may also jimmy your lock open. Don't tempt them by keeping your valuables inside your vehicle in plain sight. Always bring them with you, or if you can't, keep them out of sight (in the trunk, for instance). If your car stereo has a removable faceplate, take it with you instead of stowing it in your glove compartment.

4. Deactivating car alarms. Thieves will look for any exposed wiring that they can cut in order to disable your anti-theft alarms. The remedy lies in having your car alarm put in by a professional installer. If you can find a reasonably shady one, so much the better. Retail store employees don't know how to install your alarm in such a way that makes it harder for criminals.

5. Checking your car stickers. It's always a bad idea to display car decals that advertise what kind of alarm you have in your vehicle. This gives thieves a lead on how to disable your alarm. Furthermore, don't put any stickers that display the kind of audio system you've got; you'll only make it a more tempting target for theft. Use a hood lock cable so that they can't access your car battery or alarm mechanism.

Come back next week for more tips on how to counter car theft. Until then, stay smart and stay safe!

Know Your Rights: Possible Insurance Claims

Posted on Jan 12th, 06:03 pm, under Are You Covered?

If you've ever had to contest your insurance claim with a claims adjuster, you know that it's a long, uphill battle. You're up against an expert who does this for a living, after all. 

Fortunately, there are several possible insurance claims you can make that will increase your compensation after everything is settled. Take the time to familiarize yourself with six of the most important claims:

1. Emotional Distress - What is emotional distress? This refers to any problems caused by an accident that interfere with your personal and/or professional life. Emotional distress qualifies legally as pain and suffering, and therefore it is only right that you factor this in when asking for compensation. 

If you're suffering because of the aftereffects of an accident, see a specialist for as long as it takes to regain normality. When you've finished, get a written report and present this (along with the specialist's bill) at your negotiations with your claims adjuster. This is a completely legitimate expense.

2. Compensation for life disruptions - If complications or injuries from a car accident forced you to give up an important commitment (whether professional or personal), present written proof of this to your claims adjuster. Indicate how difficult it will be to make up for it (or how it may be even impossible to do so). For example, if you missed a wedding, vacation, or training seminar, get proper documentation and show these as evidence of the disruption you've had to endure because of the accident.

3. Emotional reactions to your injury - The main things to take note of here are the following characteristic symptoms: anxiety, confusion, denial, and depression. If you feel that you're experiencing any of these, or if your loved ones observe a change in your attitude after the accident, you may want to see a psychologist or psychiatrist. There's nothing to lose or be ashamed of, and you may come out feeling better for it.

Once again, as with cases of emotional distress, get your written report and medical bill from your specialist when you're discharged, and give them to your claims adjuster. They add legitimate value to your claim, and your adjuster legally cannot refuse to accept them.

4. Your age - Your age is always an element in your claims negotiation because your period of total or partial disability depends on how old you are. This period affects the duration of your treatment and the amount and cost of medication and pain killers you have to take. For example, if you're over 60, your disability period will be around 20 to 30 percent longer than average.

5. Pre-existing medical conditions - Don't forget to factor in any pre-existing medical conditions that you may have, such as high blood pressure, diabetes, arthritis, and previous injuries or operations that left you with chronic problems. If the accident aggravated this condition, consult with your doctor and get a medical report to back your claim up.

6. Visible damages to your car - Finally, the extent of the damage to your vehicle can significantly affect your claim and how much money you receive from your insurance company. If it was totaled or badly damaged, it greatly helps your claim about the severity of your injuries. 

Make sure you take several photos of your vehicle. (Take some in black and white, since colored pictures sometimes cannot be entered as evidence in court.) Then, give a copy of the photos to your claims adjuster, along with your auto repair bill.

Remember, your basic strategy is to provide your insurance claims adjuster with as much written evidence and documentation of your injuries as possible, as well as evidence of the other problems that the accident caused in your life. With any luck, you won't have to resort to hiring a lawyer to contest your case.