Wrecked Your Car? How To Get Fair Compensation

Posted on Dec 9th 2009, 03:52 pm, under Are You Covered?

Let's say you were involved in a serious accident that left your car a complete wreck. After taking care of your health concerns, the next thing you want is fair compensation for your car. The car is formally called a "total loss" if the damage is irreparable, or if it's worth less than the cost of repairs. 

Before accepting total loss compensation from your insurance company, both you and your insurance provider must agree upon what your old car is worth. Sometimes, however, their assessment won't meet your expectations, and you'll have to bargain with them. Here's how you negotiate a total loss claim:

1. Keep in mind that it is your right to negotiate for and receive fair compensation. You want an amount that's enough to buy a car of similar year and model and roughly the same condition as your old car before it got wrecked.

2. Never accept your insurance company's offer for compensation without doing your own research first. Ask them to give you a copy of their own report and calculation, with a breakdown of how they came up with that amount, if possible. Don't start any negotiations with your insurance provider if you don't have any information yet. If you don't know exactly what your insurance plan covers, make it a point to find out.

3. Search online and get the sale value for a car model that's exactly the same as your old car. Make sure it's identical in all relevant aspects, including the year, model, make, and features. Most likely, you'll get varying prices, so get the average of everything you find.

4. Next, get the trade-in value for your car in its current state. You can easily find this out by checking it at Kelley Blue Book. However, though this is an important piece of information for strengthening your claim, you must keep in mind that insurance companies are not required by law to offer you the stated Blue Book value for your car.

5. If your car had any special features or add-ons (for example, new tires, low mileage, or heated seats), get the fair market value for a wrecked car of the same model and year, but without the extra features. Make a price comparison between these two. Tell your insurance provider of these features as well.

6. Use all of the information above when asking your insurance company for a higher compensation amount. If they won't budge, consider getting professional help. You may ask an independent arbitrator or attorney for assistance, but be aware that both these measures will cost you more money, so weigh the benefits against these first.

How to Change Your Insurance Provider

Posted on Dec 9th 2009, 03:46 pm, under Auto Insurance 101

A few weeks ago, we talked about the benefits of changing your auto insurance provider. There are several different reasons why you might do this. You may have found a company that offers the same coverage for less money, or your current provider doesn't give you satisfactory service. If you want to get the best insurance for your money, it really pays to reassess your coverage every few years and shop around for better deals on insurance.

Whatever your reason, once you decide to switch, you'll find that changing companies is relatively easy. However, the process does contain potential pitfalls if you're not careful. Here's what you have to do, step by step:

1. The most important thing to do, as mentioned in our previous article, is to ensure that you already have a new policy with your new provider before you cancel your old policy. If you forget this crucial step, it's considered a lapse in your auto insurance coverage. This can seriously damage your credit rating. In addition, a lapse in coverage is against state law, and you will probably face a heavy fine as a result.

2. Email or write your former insurance provider and tell them to cancel your plan. Ask them to provide you with a dated letter of confirmation as well. To prove that you already have new coverage, give them the name of your new insurance provider and the number of your policy with this firm. Otherwise, your former provider will have to report you as an uninsured driver to the Department of Motor Vehicles, as required by law.

Never walk away from an old insurance policy without canceling it formally. If you don't notify your provider, you'll just be billed continuously and your coverage will be canceled due to your failure to pay.

3. Try to cancel your old policy before the renewal date. This way, you won't have the additional hassle of getting back the unused portion of your premium. However, if you cancel your policy after the renewal date, remember that they owe you a return premium. Follow up with your old insurance company for this amount. The downside is that they may return it with a 5 to 10 percent surcharge (otherwise known as a short-rate return premium).

4. Finally, replace your insurance ID cards. If you replaced your old policy in mid-cycle, your auto ID cards will still have the original expiration date on them. Change these out for new cards as soon as possible. This way, you'll have valid identification in case you get into an accident. 

What You Need To Know When Insuring Imported Vehicles

Posted on Dec 9th 2009, 03:41 pm, under Auto Insurance 101

Buying an imported car usually carries more costs than just the one on the price tag. Insurance for imported vehicles can be expensive, and not all insurance firms provide coverage for them. Like vintage cars, imported cars have special requirements that you'll need to meet. We've made a short checklist of the things you'll need before you can insure an imported car:

1. One of the first things to do is to ensure that your car passes US auto standards, such as safety and emission tests. Some car models brought over from abroad (notably Mexico) may not meet US legal standards, and are therefore ineligible for insurance. You may have to spend on additional improvements for your car to meet these requirements. Consider this before buying any car abroad.

2. Naturally, you'll also need to get your car through US Customs. Before you can get any form of insurance, you'll have to present proof to insurance providers that you paid the necessary duties and taxes to bring your vehicle into the country legally.

3. Your car will also have to get an undercarriage wash before it can be allowed entry into the country. The US Department of Agriculture requires this precaution to prevent foreign pests and weeds from entering our domestic ecosystem. 

4. Remember that if your car fails to meet US standards or any one of the above requirements, it must be sent back, brought into compliance, or destroyed.

5. Unfortunately, many mainstream insurance providers won't insure imported cars. You'll need a firm that specializes in imported vehicles. Imported cars cost more to insure than domestic vehicles because they are usually expensive models, thus raising their premium; their parts are not easily available; their safety standards are usually below the domestic minimum; and fewer companies offer insurance for them, thereby raising the price.