Archive for the ‘Auto Insurance’ Category

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Understanding your Auto Insurance Policy

Wednesday, January 27th, 2010

An auto insurance policy is generally straightforward; however, it is important to fully understand the details of your policy so that you can be assured that you are adequately protected if you need to file an auto insurance claim.

Your Auto Insurance Policy: Understanding the Various Sections

  • The first part of your auto insurance policy involves three numbers separated by slashes. This section of an auto insurance policy is often the most confusing to auto owners. However, these numbers are quite easy to understand.

The first number is the maximum coverage for your policy, per person. In other words, the initial number equals the total amount of bodily injury coverage for each person. The next number is the total amount of bodily injury coverage. In other words, the first number may be $100,000 and the second number may be $300,000, so the total amount of coverage for bodily injury is $300,000, or $100,000 per person. The third number equals the total amount of property damage coverage for your auto insurance policy.

  • The next section of your auto insurance policy includes the policy’s declarations, and also includes information about your vehicle, the drivers on the policy, the monthly premium for your policy and details of the limitations of your coverage. This section also includes additional information on your policy, such as rental car reimbursement; these additional benefits are usually referred to as riders on your policy.

  • The next section on your auto insurance details and defines the language used in your auto insurance policy. This section is designed to help you understand your policy, so it is common to see auto insurance definitions in this section. This section will also help you understand the process of filing a claim and your responsibilities as the driver of the vehicle.

  • The last section of your auto insurance policy will detail your policy’s exclusions. In other words, this section describes situations in which your policy would not cover you. This is an important section to read and understand, as it will clearly detail your rights and limitations under your auto insurance policy.

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Why so many Auto Insurance Carriers are Making Paying Auto Insurance Easier

Wednesday, January 20th, 2010

The flailing economy has brought upon many changes, both for consumers and companies. For example, many auto insurance carriers are making it easier than ever to pay auto insurance premiums. This is due, in part, to the large numbers of uninsured drivers in the United States. For example, the number of uninsured drivers has increased from 10 percent in 2008 to 20 percent in 2009, largely due to the economy and the loss of many jobs.

Auto insurance companies are now making it easier for their policyholders to pay their insurance bills instead of letting the policy lapse. Many policyholders see these changes as welcomed ones, as many individuals are not only finding it difficult to pay their auto insurance premiums, but to pay them on time.

There are a number of ways in which insurance carriers are making it easier for individuals to pay their auto insurance premiums:

  • Automatic deductions - Automatic deductions are usually the easiest way for individuals to pay for their auto insurance, as the monthly premium is simply deducted from their bank account at the same time each month. This eliminates skipped or missed payments, and eliminates the need to remember to pay yet another bill.

  • Website payments - Many insurance companies now have easy-to-navigate websites that allows policyholders to pay their premiums. Many times, these websites allow customers to pay at their convenience throughout the month, either using a credit card, debit card or a withdrawal from their bank account. Website payments are also handy, as they eliminate the need to write checks, pay for postage and wait for a payment to be processed.

  • Pay-by-phone - Another convenient way to pay auto insurance premiums is over the phone, using either a bank account and routing number or a credit/debit card. Either way, it is a great way to cover your auto insurance premiums, even when you forget about it until the last minute. Most pay-by-phone systems allow your payment to post almost immediately, thereby eliminating late fees.

There are many ways in which you can handle your auto insurance premiums, so check with your auto insurance carrier about their payment methods, and about any fees and service charges that may accompany them.

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Tips for Keeping your Teenager Driver Safe while behind the Wheel

Monday, January 18th, 2010

Have a teenager is scary enough for most parents. Putting them behind the wheel just increases the fear and anxiety in parents even more.

In order to make sure your teenager stays safe behind the wheel, make it a point to detail your expectations. Don’t assume that because your teenager passed his or her driving test that he or she is prepared for what lies ahead out on the roads.

In fact, it is these real life situations that test them as drivers. Don’t assume that your teenage driver knows what to do or what is expected of them. Make it a priority to establish a set of rules that your teenager must follow each and every time he or she slips behind the wheel of a car:

  1. Don’t use your state’s minimum driving age as a gauge for your teenager - Your teenager may be more than ready to drive at 16, for example, or he or she may not be yet emotionally or mentally mature enough to handle this large responsibility. Only you know whether your teenager is ready to drive - not the state.

  2. Consider enrolling your teenager in a respected driving school - Although a driving school should not replace your time in the car with your teenager, it can provide a solid foundation for responsible driving, In addition, many auto insurance companies offer discounts for teenage drivers who complete driver training courses.

  3. Establish clear-cut driving rules - Many parents of teenage children, for example, prohibit them from driving a vehicle with more than one friend present in the car; other parents also prohibit their teenager from driving during the night until they have become more experienced behind the wheel. Strongly consider the rules that you want to establish with your teenager and make a point of enforcing these rules, each and every time.

  4. Discuss the consequences of drinking and driving - The concept of drinking and driving is an important conversation that parents absolutely must have with their teenage drivers. Having this conversation just once isn’t good enough, either. Keep an ongoing, open dialogue with your teenager regarding the dangers of drinking and driving.

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Your Most Common Auto Insurance Questions Answered

Thursday, January 14th, 2010

Auto insurance is a very important part of owning a vehicle. Operate without it and your breaking the law. Without adequate insurance, and you’re left holding a very expensive bill.

In other words, it is vital that you obtain the most comprehensive auto insurance that your budget will allow. With that said, there are a number of common auto insurance questions that many car owners ask when searching for the best auto insurance to suit their needs and their budget:

Q:  How do I determine what kind of protection I need?

A:  There are many factors that determine which kind of protection you need. If you are single, for example, your auto insurance needs will differ greatly from another individual of your age that has a teenager or a spouse, for example. When shopping for auto insurance, remember to inform your insurer about your family situation, as well as your past driving record, your automobile make and model and any other factors that you think may change your auto insurance needs.

Q: What are the different types of coverage available to me?

A: There are several different types of auto insurance coverage available to most individuals. The auto insurance coverage you choose will depend mainly upon the state in which you live and whether you own your vehicle outright or are financing it. First, find out about your state’s minimum auto insurance requirements; this is essentially the auto insurance coverage that your state requires for you to get behind the wheel of your vehicle. Second, decide how much you can afford to spend each month on auto insurance. And lastly, make sure your auto insurance coverage will protect you financially in the event of an auto accident.

Q: Where can I shop for auto insurance?

A: You have a number of options when it comes to shopping for auto insurance. You can call local companies for quotes, or even surf the web and request online auto insurance quotes. But perhaps the most important thing to remember when shopping for auto insurance is that auto insurance between companies can vary greatly, so it is always in your best interest to shop around for the best auto insurance rates.

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Do you have Adequate Auto Insurance? What to Look for

Friday, January 8th, 2010

You sign up for auto insurance, pay your premiums on time and take for granted that your auto insurance is fully protecting both you and your vehicle. But is it really?

You may be surprised to find that many auto insurance policies are less than thorough, thereby leaving you inadequately insured if you become involved in an auto accident. Many individuals choose less-adequate levels of auto insurance to save money, but the reality is that you could lose tremendously more than the few dollars it would cost you monthly for a better policy should you have extensive medical bills and auto damage.

A comprehensive auto insurance policy should be comprised of several, key segments, including:

  • Liability - Liability is the part of your auto insurance policy that is required by your state. Without it, and you’d be breaking the law. Liability covers the cost of property damage or bodily injury to others caused by you in an auto accident.

  • Collision - Collision is an important part of any comprehensive auto insurance policy, as it covers the cost of your auto repairs should you become involved in an auto accident. Collision may also cover the cost of repairs if your car has been vandalized or burned, as well.

  • Uninsured motorist - If you are hit by another driver that is uninsured your auto insurance will step in and cover your bodily injuries and auto damage, provided you are covered by the uninsured motorist section of your auto insurance policy.

  • Personal injury protection - If you or your passengers have medical expenses and lost wages as a result of an accident, the personal injury protection part of your auto insurance will cover these expenses.

  • Medical payments - The medical payments segment of your auto insurance policy will pay your medical bills immediately, and will also cover your medical bills if your or anyone in your household is in any type of accident involving a vehicle.

  • No-fault insurance -  No-fault insurance, which is required in some states, is designed to cover all expenses in an accident, regardless of which driver was at fault.

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Tips for Safer Winter Driving

Thursday, December 24th, 2009

Safe winter driving is a must, especially when you consider that just one accident can raise your auto insurance rates significantly.

Even the most experienced drivers can make poor decisions when it comes to winter driving. All it takes is one mistake when driving on poor road conditions to cause an accident and not only injure yourself, but damage your car, as well.

The following winter driving tips will help protect you - and your vehicle - from damage this winter season!

  • Use common sense - If the road conditions are less than ideal, and you don’t have to go out, stay inside! It certainly doesn’t make sense to take a drive on unsafe roads simply to run errands that aren’t necessary.

  • Slow down - When road conditions diminish, so should your speed. Simply reducing your speed when road conditions decline will help you to better control your vehicle. Steer gently, slowly accelerate and slowly come to a stop each and every time you get behind the wheel when conditions are less than ideal.

  • Leave early - If road conditions are bad and you must go somewhere, leave yourself plenty of time to get from point A to point B. Many times, car accidents are a direct result of individuals who are hurrying to get somewhere.

  • Learn how to use anti-lock brakes properly - Anti-lock brakes can help prevent slipping and sliding on slippery roads, but only if they are used correctly. Make it a point to learn how to properly utilize your vehicle’s anti-lock brakes before bad weather hits so you can best apply your brakes when road conditions deteriorate.

  • Don’t substitute safety devices for common sense - The best defense against slippery roads is your common sense. Many times, individuals assume that they are invincible because they possess safety features such as all-wheel drive and anti-lock brakes. Ironically, however, these individuals are often involved in car accidents because they are under the false assumption that they don’t have to change their driving habits when the weather gets bad.

  • Purchase good, all-weather tires - If there is one thing not to skimp on is a set of good tires. Head to your auto mechanic for a tire inspection and, if necessary, get new tires before the bad winter weather rolls around.

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Is your Car Driving up your Auto Rates?

Wednesday, December 23rd, 2009

Our cars are often an extension of our personalities. They define our taste and our sense of style and let’s face it, they often just make us look good.

However, our need for fancy cars may also be driving up the cost of our auto insurance. We all know that sports cars cost more to insure, but did you also know that expensive cars also cost much, much more to insure?

It is a smart idea to consider the cost of your auto insurance before purchasing a car. Many individuals don’t take into consideration the cost of auto insurance when budgeting for a car, thereby leaving many new car owners in a bind when it comes time to pay for costly auto insurance.

There are quite a few factors that come into play when an auto insurance company determines auto rates, including: your age, your driving record, where you live, how much you drive and perhaps most importantly, the type of car you drive.

The following cars have been ranked as the most expensive to insure in 2009:

  • 1 Lexus IS 300
  • 2 Land Rover Discovery Series II
  • 3 Audi S4
  • 4 Jaguar X-Type
  • 5 Mercedes SLK Class
  • 6 Lexus GS 430
  • 7 Land Rover Freelander
  • 8 Mitsubishi Montero
  • 9 BMW X5
  • 10 Toyota 4Runner

Many times, auto insurance companies take into consideration not only the cost of a vehicle when determining auto insurance rates but also its safety ratings (i.e. how it performs in crash tests); the rate at which it is stolen; the anti-theft features it possesses; and the overall flashiness of the vehicle.

If your vehicle is a high-performance vehicle and is capable to going very fast in a very short period of time, you can bet your car will be more expensive to insure. Regardless of your driving record, an auto insurance company will assume that your behavior behind the wheel of a high-performance vehicle will be more irresponsible than when driving a sedan or a minivan, for example.

Before you purchase your next vehicle, give your auto insurance representative a call to receive an auto insurance quote, as your auto insurance costs may play a role in your decision to purchase a particular vehicle.

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The Best Ways to Protect your Car from Theft

Monday, December 21st, 2009

Our auto insurance rates are affected by many things, including theft. If your car is stolen or damaged and you must make an insurance claim to have it repaired or replaced, your auto insurance rates will likely see an increase.

With this in mind, it is important to do what you can to prevent your car from being stolen:

  • Remove the keys from your ignition - This may seem like a bit of a no-brainer, but the fact of the matter is that many individuals leave the keys to their car in the ignition while the car is parked in their driveway. It is important to realize that car thieves are all too aware of this, which is why many individuals are shocked to find that their car was stolen from their driveway.

  • Lock your doors - Don’t rely on your vehicle’s security system to keep your car from being stolen; instead, make a point to ensure that every door on your vehicle is locked.

  • Use your vehicle’s security system - Just like door locks, vehicle security systems only work when they are utilized. Use your vehicle security system every time you exit your vehicle, even if it’s just for a few minutes. Many individuals are surprised to find that their vehicle was stolen in the few minutes that it took them to stop into a grocery store or a bank.

  • Hide all valuables - Leaving valuables in plain view inside your vehicle tempts thieves to break into your vehicle, so don’t give them any reason to smash a window or damage your locks. Hide all valuables, including GPS systems, cell phones, purses and shopping bags.
  • Roll your windows up all the way - Make a point to check all of your windows before exiting the vehicle. Often times, a vehicle window that is open just slightly allows a car thieve to slide a tool through the window and unlock the door.

  • Park in well-lit areas - If at all possible, avoid dark parking lots and streets, not only to prevent a car theft, but to protect yourself, as well.

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How to use the Internet to Find Great Auto Insurance Deals

Friday, December 4th, 2009

We see it all the time: auto insurance companies touting their savings. So, how can you wind your way through all of this information and find the best deal on auto insurance?

The Internet may be your best bet when it comes to tracking down great auto insurance rates and, lucky for you, it is also the most convenient way to compare auto insurance companies and their rates.

Receive Online Insurance Quotes

Before you go online and visit the websites of the auto insurance companies, you should have all of your information readily available. This may include the make and model of your vehicle, the mileage of your vehicle and details about the condition of your vehicle. The website may also ask you about your personal information, including any previous parking tickets or moving violations.

Try Auto Insurance Calculators

You can also obtain fairly accurate auto insurance quotes by using an online auto insurance calculator, which is available on many of the auto insurance websites. Although these calculators can not provide you with the bottom line regarding your auto insurance rates, it can give you a general idea of what you will pay. These online auto insurance calculators are quite easy to use and take only minutes to complete.

Understand your Needs

It is important to fully understand which type of auto insurance you are interested in, as well. You will need to make a decision regarding your deductible and your coverage. If you are financing a vehicle, you will need to be fully insured; vehicles that are paid off, however, do not need to be fully insured, so it pays to learn about the different levels of auto insurance and which one is best for you and your budget.

Remember Customer Service

It is important to understand, however, that you may choose your insurance company for more than just budgetary reasons. Customer service is highly important to most drivers, as dealing with an unhelpful insurance company when you are trying to submit a claim can be downright infuriating. It is because of this that many individuals choose their insurance company based not only on their rates, but on their customer service, as well.

It is quite easy to search online for customer reviews of insurance companies. Often times, these community websites can provide you with plenty of information regarding the company’s overall reputation with its customers.

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How to Find Good Auto Insurance when your Credit is Bad

Wednesday, December 2nd, 2009

Good credit is essential for a wide variety of things, including auto insurance. A strong credit rating is often essential for securing the most competitive auto insurance rates, although finding car insurance when you have bad credit is still possible.

A good credit score often shows an auto insurance company that you are a responsible individual; convincing an auto insurer that you are responsible when your credit says otherwise, however, can be quite difficult.

You may encounter auto insurance companies who simply refuse to insure you when you have bad credit. You may also encounter auto insurance companies that demand upfront payments instead of monthly payments. Finally, you may pay much higher rates than individuals with good credit.

Auto insurance companies generally run credit checks on applicants because they want to be sure that they will pay their monthly premiums on time, without fail.

It is possible, however, to secure auto insurance, at a competitive rate, even if your credit rating is lower than average:

  • Shop around and get several quotes. Like motorists with good credit ratings, it always pays to compare rates from several auto insurers before deciding on a policy. However, it becomes all that more important when you have poor credit, as the rates and policy terms can vary widely from one company to the next. In other words, take your time and get quotes from at least three or four different auto insurance companies.

  • Research auto insurance companies online. It may be much easier to get quotes and information from several different auto insurance companies by visiting them online. Many auto insurers have user-friendly websites that feature online calculators; these calculators can provide you with a fairly accurate rate quote for auto insurance.

  • Work on your credit score. Don’t simply let your credit problems be forgotten. Work towards paying off your debts and improving your credit score so that you can revisit your auto insurance rates in a year or two in hopes of securing lower rates for your auto insurance. Remember: it is never too late to work towards better credit.

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