Archive for the ‘Auto Insurance’ Category

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Summer Travel Safety and your Vehicle

Wednesday, June 30th, 2010

Along with summer come road trips in your vehicle. Whether you’re headed out of town for a long weekend or a weeklong trip to the shore, one thing’s for certain: you must make sure that your vehicle is in good working condition. A tip-top vehicle will protect you and your passengers, and may also protect your auto insurance rates.

Before you back out of the driveway, here are some of things you may want to pay particular attention to when it comes to your vehicle safety:

  • Tires - Your tires are the only thing that’s making contact with the road when you’re driving, so it only makes sense to give your tires a moment of your time. Before embarking on any kind of trip, head to your local tire shop and make sure that your tires are properly inflated and that you have an adequate amount of tread left on the tires. In addition, you may also want to make sure that your tires are properly aligned so that they will wear properly. Before checking the pressure of your tires, allow them to cool off, as hot air will expand inside your tires causing an increase in tire pressure.

  • Fluids - Check all of the fluids in your vehicle before embarking on a road trip, or have them checked by an auto repair shop. A lack of oil can result in a seized engine, and a lack of coolant can cause a car to quickly overheat on a hot day. In short, ignoring the fluids in your vehicle will likely give you a quick trip to the side of the road with a broken down car.

  • Battery - Extreme heat can cause additional strain on your car’s battery. Therefore, if your vehicle is more than three years old it is probably best to get a new battery before heading out on a road trip.

  • Wiper blades - It may seem quite insignificant, but worn wiper blades can cause big problems if you’re caught driving in inclement weather. If you want to protect yourself, your passengers and other motorists, and protect your auto insurance rates, as well, make sure to change out your old wiper blades with new ones before leaving on a summer road trip.

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Does your Auto Insurance Provide Coverage for a Rental Car?

Thursday, June 24th, 2010

It is the age-old debate: do you really need to purchase car rental insurance?

Many people, unsure about whether their car insurance will cover rental cars, also purchase rental car insurance. However, this may result in duplicate coverage and a waste of money.

The problem lies with the fact that many people simply don’t know the extent of their auto insurance coverage. In fact, a current study by the National Association of Insurance Commissioners found that nearly 42 percent of motorists were confused about the extent of their auto insurance coverage when renting a car. Another 24 percent of people who own credit cards were unsure of the rental car coverage through their credit card.

The best rule of thumb when renting a car is to research your current coverage (if any) that exists either with your auto insurance or with your credit card. Ask about the extent of the coverage when talking with your insurance agent or credit card company and ask about any limitations. Keep in mind that benefits vary greatly from one credit card and insurance company to the next, so never assume that because you have a similar credit card that the coverage will be the same.

The two most important factors to consider when talking of rental car insurance is liability and a collision damage waiver. If you don’t have this coverage, either through your credit card or insurance company, then it is usually best to purchase rental car insurance.

Collision Damage Waiver

The collision damage waiver, sometimes referred to as a loss damage waiver, covers your rental car expenses in the event of theft or damage. It is important to understand that many times your auto insurance will be the primary insurance in the event of an accident, with the credit card being the secondary coverage. In other words, a collision damage waiver through your credit card company will supplement your primary auto insurance, in most cases.

There is an exception to this, provided you take out the extra insurance through your credit card. Premium Car Rental Protection from American Express, for example, provides primary coverage for cardholders, thereby protecting their auto insurance policy from increased premiums in the event of an accident.

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Exploring Auto Insurance Discounts

Tuesday, June 22nd, 2010

Do you really know about auto insurance discounts?

Many individuals assume that a clean driving record is all that is necessary to achieve auto insurance discounts. However, there are a number of things that can help many motorists achieve lower rates; all it takes it a bit of research and a bit of your time to take advantage of these discounts.

In fact, auto insurance discounts can save you as much as 20 percent on your auto insurance policy, even before you factor in your driving record.

Here is our list of key discounts you may qualify for:

  • Ticket-free Discount- In addition to a clean driving record, you should also consider your tickets and other parking violations. Many motorists assume that they can achieve low auto insurance rates because they are free of moving violations; however, parking tickets may also tarnish your driving record and disqualify you from an accident-free auto insurance discount. Check out your state’s discounts for drivers with clean driving records; you can save as much as 30 percent!

  • Good Student Discount - If you have a teenage driver, you may be quite apprehensive about paying the hefty auto insurance rates that come along with insuring a teenage driver. However, there are a few factors that you may want to consider when thinking of auto insurance discounts. For example, you auto insurer may offer you a nice discount if your teenage driver took an advanced driver course. In addition, many insurance companies offer discounts for teenagers who receive good grades in school; students who receive at least a B average are often eligible for discounts of up to 15 percent.

  • Defensive Driving Discount - If you are a senior and take a defensive driving course you may be eligible to receive a discount of about 5 percent; many of these courses are offered through AARP or you other state governmental agencies.

  • Military Discounts - An individual on active military duty, retired from the military or a member of the National Guard or reserves can receive an auto insurance discount through many different auto insurance companies.

  • Multiple Policy Discount - Purchasing multiple policies through the same company can save you big when it comes to auto insurance. Consider bundling your policies through the same insurance company (home, auto, life, etc.) and ask about the savings you will enjoy.

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Does your Auto Insurance Provide Coverage for a Rental Car?

Saturday, June 19th, 2010

It is the age-old debate: do you really need to purchase car rental insurance?

Many people, unsure about whether their car insurance will cover rental cars, also purchase rental car insurance. However, this may result in duplicate coverage and a waste of money.

The problem lies with the fact that many people simply don’t know the extent of their auto insurance coverage. In fact, a current study by the National Association of Insurance Commissioners found that nearly 42 percent of motorists were confused about the extent of their auto insurance coverage when renting a car. Another 24 percent of people who own credit cards were unsure of the rental car coverage through their credit card.

The best rule of thumb when renting a car is to research your current coverage (if any) that exists either with your auto insurance or with your credit card. Ask about the extent of the coverage when talking with your insurance agent or credit card company and ask about any limitations. Keep in mind that benefits vary greatly from one credit card and insurance company to the next, so never assume that because you have a similar credit card that the coverage will be the same.

The two most important factors to consider when talking of rental car insurance is liability and a collision damage waiver. If you don’t have this coverage, either through your credit card or insurance company, then it is usually best to purchase rental car insurance.

Collision Damage Waiver

The collision damage waiver, sometimes referred to as a loss damage waiver, covers your rental car expenses in the event of theft or damage. It is important to understand that many times your auto insurance will be the primary insurance in the event of an accident, with the credit card being the secondary coverage. In other words, a collision damage waiver through your credit card company will supplement your primary auto insurance, in most cases.

There is an exception to this, provided you take out the extra insurance through your credit card. Premium Car Rental Protection from American Express, for example, provides primary coverage for cardholders, thereby protecting their auto insurance policy from increased premiums in the event of an accident.

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Your Teen Behind the Wheel: What you need to Know about Teen Driving and Auto Insurance

Thursday, June 17th, 2010

As a parent, the safety of your teenage driver is certainly your biggest concern. However, you may also be quite concerned about the cost of auto insurance for your teen driver.

Although auto insurance rates for teenage drivers will almost always be higher than rates for older individuals, there are things you can do to ensure not your teenage driver’s safety behind the wheel, but also save on their auto insurance policy:

  • Talk safety before they even get behind the wheel – Safety, of course is the number-one concern of most parents of teenage drivers. With that being said, the safety discussion needs to start before they get their driver’s license and needs to continue on a frequent basis. It’s not enough to tell your teenage driver not to text and drive; it must be reiterated nearly every time they get into the car. Bottom line: teenage drivers have notoriously short attention spans, so remind them frequently about what you expect from them when they are behind the wheel.

  • Consider an advanced driver course – It is a great idea to have your teenage driver take an advance driver safety course, not only for their safety but also for a decrease in auto insurance premiums. Most auto insurance companies will consider a lower rate if your teen completes an advanced driver program.

  • Talk to your insurance agent about an appropriate vehicle – Not all vehicles are created equal in terms of safety. Four-door cars, for example, are usually considered safer than two-door vehicles in the eyes of auto insurance companies. SUVs also have a higher accident rate than sedans, and therefore come with higher policy rates for your teenage driver. Keep in mind, also, that newer vehicles with more safety features, such as dual airbags and anti-lock brakes, have lower rates than older vehicles.

  • Understand the laws and make sure your teenage driver understands them, too - Each state has different laws regarding teenage drivers. Make it a point to understand the laws in your state regarding junior operator’s licenses and the stipulations and laws that come along with them.

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Why it may make Sense to Increase your Auto Insurance Deductible

Monday, June 14th, 2010

We’ve all had to cut back on expenses. From the credit crisis to the housing market meltdown to the lousy economy and the loss of jobs, many Americans have had to find ways to cut the fat from their household budgets.

Is Decreasing your Auto Insurance Coverage a Good Idea?

In your search for budget cuts, you may have thought about decreasing your auto insurance coverage. Before you do this, you may want to think twice. Auto insurance, like many other types of insurance, may not be something you think too much about until the time comes when you need it. It is therefore best to keep your auto insurance coverage and to always carry what you can comfortably afford.

However, there is one area that you may want to cut back on when it comes to auto insurance: your auto insurance deductible.

The auto insurance deductible you pay when it comes time to file a claim is often a huge indicator of your monthly premium. In other words, the auto insurance deductible you choose has a clear effect on what you pay each month to your auto insurance company.

Does it Pay to Increase your Auto Insurance Deductible?

If you choose to raise your auto insurance premium by as little as $500 and agree to take on more financial responsibility in the event of an auto insurance claim, you can save up to 15 percent on your auto insurance premiums.

Higher deductibles may be particularly appealing to motorists with older vehicles, as they often will not worry about a minor ding or flaw. Individuals with newer vehicles, on the other hand, are probably best served with auto insurance policies with lower deductibles.

In other words, individuals with newer cars will usually be more apt to repair their vehicle in the event of a minor fender bender.

In the end, you must decide which type of auto insurance policy and deductible you will carry. Always keep in mind, however, that you should save at least the amount of your deductible in a savings or money market account in the event of an auto insurance claim so that you won’t be caught off guard.

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Examining the Causes of Auto Insurance Rate Increases

Thursday, June 10th, 2010

We all want to know what we can do to lower our auto insurance rates. However, what many of us fail to realize is that we may be doing a lot to jeopardize our chances of good rates!

Good auto insurance rates are earned, and there are many ways in which we can achieve competitive auto insurance rates. However, at the same time, there are many mistakes we can make that are sure to send our rates through the roof:

  • Be responsible for a car accident - If you are at fault in a car accident, expect your auto insurance rates to increase. Your history with your auto insurance company, as well as the insurer’s policies, will likely dictate exactly how much you can expect your auto insurance rates to increase.

  • Modify your vehicle - If you like to modify your vehicle with “souped up” parts and accessories, your auto insurance company may end up raising your auto insurance rates. Often times, these types of modified cars are considered to be a higher risk for auto insurance companies because they assume that drivers who own these types of cars are more likely to drive recklessly.

  • Get convicted of a DUI - Expect your auto insurance rates to go through the roof if you get convicted of a DUI. In addition, many auto insurance companies will cancel your policy; particularly if it isn’t your first offense.

  • Marry someone with a reckless driving past - Although you may have a clean record when it comes to driving, if your spouse can’t say the same then you will likely be hit with high insurance rates.  If you add a driver to your policy who has a record of reckless driving your policy price will then be determined based on the other driver.

  • Purchase a sports car - Many types of vehicles that are deemed to be sports cars will come with higher auto insurance premiums. Other types of vehicles may also come with higher insurance premiums for different reasons. For example, some types of cars are stolen more often, while SUVs may come with higher premiums because of their risk of tipping over.

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Are your Distractions Raising your Auto Insurance Rates?

Monday, June 7th, 2010

We all like to think that we’re plugged in when we drive, but the fact of the matter is that many of us are guilty when it comes to distracted driving. In fact, it is estimated that distracted drivers caused nearly 6,000 fatal crashes in 2008 alone.

There are three types of driving distractions, according to Distraction.gov: visual, manual and cognitive. Have you eaten while driving? Have you made a phone call or texted a friend while driving? Have you applied lipstick or read a letter while driving? If so, then you, too, are guilty of distracted driving.

And your distracted driving may, in the end, cause you auto insurance rates to skyrocket. Here’s what you can do today to ensure your safety, your passenger’s safety and the safety of other motorists, all the while preventing an accident which can raise your insurance rates:

  • Although not engaging in any type of conversation is the best rule to follow while behind the wheel, it is also not very realistic. Therefore, you can protect yourself from distracted driving by not participating in any argument or heated discussion behind the wheel. In addition, if your children are misbehaving, instead of attempting to deal with the situation while driving, pull to the side of the road to take care of the situation. In addition, let your children know that you are unable to turn around and pick up toys or hand them items while driving.

  • Any type of technology that takes your mind or eyes off the road is best used only when your car is in park. If you have difficulty not addressing each text message you get while driving, turn off your phone to resist the temptation. In addition, let your friends and family know that when you are behind the wheel that you cannot partake in any conversations.

  • Manage your time better so that your driving time isn’t spent rushing from Point A to Point B and tending to multiple things. In other words, give yourself plenty of time to leave in the morning so you aren’t applying makeup, eating or rushing the kids to school at the last minute. When we are in a hurry we are often distracted, so make a point of turning over a new leaf and giving yourself plenty of time each day to accomplish your daily activities.

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Fender Bender? What to Do

Monday, May 31st, 2010

Everyone knows its common sense not to just drive off after a car accident. However, some people do just that, and you’d be surprised how many people don’t quite know the correct protocol following a wreck. Here are the dos and don’ts that can help you and the other persons involved to get help, have your damages paid for and avoid unnecessary entanglements with the law.

  • Never leave the scene of an accident. Whether you hit a parked car or were involved in a serious fender bender with others on the road, stay put.
  • Check to see if anyone was injured. If so, call for medical help immediately.
  • If it is a parked car, try to find the owner somewhere in the vicinity. If you can not locate the car’s owner, take responsibility by reporting the accident and ensuring your insurance and vital information is available to the owner. Leaving a note with your contact info is a good idea.
  • Assess the damage of each vehicle involved and exchange insurance and other important information with the other drivers. You also need to get license plate and VIN numbers, and it is a good idea to ask to see driver’s licenses and registrations. Do not give false information. This could easily land you in hot water.
  • This is not the time for you and the other party or parties to squabble. Save the story for the police. You and the other persons need to be concerned with damages, injuries and gathering information.
  • Be sure to get the names, addresses and phone numbers, as well as other contact info for any other passengers in the involved vehicles and any witnesses at the crash site.
  • Call the police. In some places, they may not come to every accident, depending on the seriousness, but typically they do show up. Your insurance company and that of the others is going to want a police report.
  • Videotape or photograph everything immediately. Use a camera phone or digital camera, if on hand. For those who do not own either of these, keeping a disposable camera handy is a great idea. Document the position of the cars, all damage done and any location landmarks and present obstacles.
  • Notify your insurance company and that of the other involved party, should they be at fault, to ensure that all claims are handled in a timely manner.
  • Get a handful of written estimates for damage repair. The insurance company is going to want to see a price range and will choose the most inexpensive route they can. If your car is totaled, you might simply receive the current cash value of your particular car. When it comes to your own policy, know the details, especially exclusions.
  • If the damages exceed $750.00, you will have to report the accident to your state’s Department of Motor Vehicles within 10 days. Failure to do so could find you without a license to drive.
  • Don’t sign any statements between you and the other party regarding fault or promise of payment or anything releasing the other party from further liability if they have promised to pay something. Let the insurance company handles this. That’s their job, after all. You could wind up paying more than you are liable for if you enter into such and agreement without the mediation of your insurance provider.
  • After filing your claim, follow-up. You want to be kept up to speed and the insurance company should not take long to get in touch with you. However, if you feel they are not getting on the ball, so to speak, contact your state’s Department of Insurance right away.

So, you had an accident. You don’t want it to affect your life for years to come, any more than it has to. Following this protocol will save you a lot of time, money,  hassle and headache and unnecessary  legal problems too.

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Risky Drivers and Auto Insurance

Friday, May 14th, 2010

Every auto insurance company has a set of rules and guidelines that determine how to charge for each individual policy. For high-risk drivers, this could mean a higher premium payment. These rates are determined based on the insurance company’s evaluation of the chances that you will be the cause of an accident or loss. It is to protect the policyholder as well as the insurance company. However, some risk factors can make insuring yourself as a drier downright unaffordable, even if some of the risk factors are beyond your control.

DUI

If you have gotten into trouble with the law for driving under the influence of drugs and alcohol, you are already aware of the risk you posed to yourself and others on the road during this activity. Hopefully, you are not a repeat offender. Unfortunately, whether it was once or several times, having a DUI on your driving record could result in paying the high-risk category premiums for insurance. It will take several years with no DUI offenses and no other violations, as well as possibly having gone through some kind of  awareness or educational program before you see your rates drop.

In this case, you pay for your behavior for some time to come. You can help this risk factor by not indulging or imbibing, or by decided to keep yourself out from behind the wheel under those conditions. Practice some self-control and the rest of us will thank you.

Statistics and Other Risk Factors

Unfortunately, there are also risk factors that you, as a consumer, may not be able to prevent. The car you drive, the area you live in, your age, your occupation and many other factors go into determining whether or not you fit high-risk criteria. Most of these factors are based on statistical data, so whether or not you are really a high risk driver, you still might find yourself paying those high-risk rates.

Bringing Auto Insurance to an Affordable Level for High-Risk Drivers

First, compare quotes from several companies to see who offers the best rate. Look for all the discounts you can qualify for to try and off-set the higher rate or at least balance things out a bit. There are insurers who specialize in high-risk drivers, however, you might find yourself paying even more. Still you should compare all their rates as well.

It is your duty, as a driver, to ensure that you have auto insurance coverage of some kind. Of course, you will want to save money, but it helps to know what risk factors affect you, what you can do to ease some of those factors and who offers the best rate for your situation.

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