Friday, October 28, 2011

How Much Car Insurance Do You Really Need?

This is just to share you guys some basic information that I have gathered online. Thanks to Tonya Cunningham for sharing this.



Most people want to be adequately covered in case of a car accident, but choosing how much insurance to purchase without overspending can be a tricky decision. If you don't have enough coverage, you risk forking out a tremendous amount of cash if you are involved in an accident. If you take all precautions possible, you may be spending money for coverage you may never use. Figure out how much car insurance you really need before agreeing to a policy.

    Covering the Basics

There are some aspects of automobile insurance coverage that simply must be factored. Where you live, where you park your car at night, how old you are, how far you drive your car to work and other such basics will determine a large portion of your premium. If you don't have an anti-theft package or if your car is prone to particular damages, you could always consider buying a different vehicle, but spending more money to save on insurance costs may be self-defeating. The absolute lowest-cost, most basic insurance package will need to cover the liabilities involved in these statistically calculated risk factors.

    Explore the Minimums

Every state has its own set of laws regarding the minimum insurance required, regardless of circumstance. Prior to working with an insurance agent, you should call your attorney or look up your state's minimum insurance requirements. This will help you to be more knowledgeable going into the agent's office so that you are actively and consciously involved in deciding what you need, rather than being influenced by an agent trying to make a sale. While the insurance agent's expertise can certainly help you to make wise decisions that may go above your state's minimums for very logical reasons, you will still want to be well-informed through more than one source before signing a policy.

    Rental Reimbursement

Think in terms of what you will do if your car breaks down or has an accident that will put it in the shop for several days or longer. If you have a neighbor who works at the same place you do, maybe you can hitch a ride and this won't be an issue. If you have family whom you are confident will let you borrow their car in such a situation, you probably don't need to spend money monthly on "what if" scenarios. However, if you lack solutions to such scenarios, you will want to add rental reimbursement to your insurance package.

    Deductibles

Deductibles are the amount of money you pay on car repairs before your auto insurance policy kicks in. Choosing your deductibles is the single largest decision you will make when figuring out how much car insurance you really need. If you normally have a decent amount of cash saved in a bank account or in an easily accessible investment, you may not need to put much money into a monthly policy with low deductibles. You may feel that your risk of accident is low and even if this situation does occur, you can borrow from your own cash store until your insurance policy kicks in. If you know that you would probably not have a few hundred or thousands to put up-front into car repairs immediately following an accident, it would be wise to add the expense of a larger deductible into your insurance policy package.

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Why Do You Need Auto Insurance?


If you want to know the most important reason for buying auto insurance policy, then it is right there in your garage. Yes, your vehicle. If you own an automobile, then you ‘need’ an auto insurance policy. Simple and straight as that. Why would that be?
Let me give you an example here:
You buy a car and complete all formalities. You sit inside and proceed towards the main gates of agency, towards road. As soon as your car touches the road, a speeding vehicle smashes right into you. The driver of other vehicle runs away and you reach police station for filing complaint. After inquiry, you are told that the vehicle was reported stolen and hence, the damage of your vehicle cannot be paid by the owner of that vehicle. What can you do? Worst scenario can be, if you car was Rolls Royce, Jaguar or Porsche.
So, if you had bought auto insurance before you drove your brand new car out of showroom, then the damages would have been covered by the insurance provider. That is the reason why people prefer buying auto insurance right after you buy a car and before you take it on the road.
One more thing that may necessitate auto insurance coverage is more than one driver for your vehicle. If your kids, spouse or friends also drive your vehicle, then you need a policy that would offer coverage of all the drivers.
This would allow you to minimize your worries about other drivers and your automobile as well. Part of the reason is that you can never be too sure about the driving of another person, especially if the person is not-so-experienced or if you do not accompany that person every time. So, even if there is minor damage, your policy would easily cover it to save you from panic.

Saturday, October 22, 2011

Get Insured, Rest Assured: AN AUTO INSURANCE DECLARATIONS PAGE MEANING

As mine is coming up for renewal, I've been looking around at some different companies and getting quotes. One of the things I was a little unsure of is what all the different coverages were actually for and Patrick (Patrick) was kind enough to send me the following link and I share it herewith for your Information.
 

YOUR INSURANCE DECLARATIONS PAGE AND WHAT IT MEANS

Have you ever wondered what all of those numbers mean on your auto insurance declarations page? Your insurance agent tells you that you need to have certain coverages and oftentimes he or she helps you decide on the amount of the coverage, but do you really understand why? Many consumers pick insurance coverage according to their budget. We all know that the more insurance we carry, the higher the premiums and frequently we pick lower coverages because of financial constraint. Next time you purchase insurance or when your renewal comes due, keep the following in mind and carefully review your declarations page to see if you need to adjust your coverage.

We carry insurance in case we are involved in an accident. The State of California requires that you carry Bodily Injury Limits (BI) of $15,000/$30,000 and Property Damage (PD) in the amount of $5,000. No other coverage is required by the State, but there are many more coverages available. An understanding of the types of coverage and what they actually provide is a necessity.

Bodily Injury - This is required by the State of California and it is the most expensive part of your coverage. Bodily Injury coverage protects you and your assets if you cause an accident and cause injury to another. This is the coverage that would be available to the injured person if they made a claim and/or filed a lawsuit against you. The State requires that you carry at least $15,000/$30,000. What this means is that your insurance company will indemnify (pay) personal injury damages of up to $15,000 per person per accident, but not more than $30,000 total per accident regardless of the number of persons claiming injuries.

Bodily Injury Limits come in many amounts, you can have $15,000/$30,000; $25,000/$50,000; $30,000/$60,000; $50,000/$100,000; $100,000/$300,000 and so on. To determine your coverage needs, consider that if you cause an accident and injure another, what coverage would you need to protect your assets, home, and your family? Bodily injury coverage is expensive, but it is one of the most important coverages on your auto insurance.

Property Damage - This coverage is for damage sustained to any vehicle (other than your own) or other property (highway signs, telephone poles, structures, etc) when you are involved in an accident. The minimum coverage is $5,000, an amount insufficient to repair most vehicles in a moderate accident. Furthermore, this coverage is for all damages in a single accident, so if you are involved in a multiple car accident, damage State, County or City property (i.e. traffic signs, signals, etc.), or you damage a structure, you may not have enough coverage. Property damage coverage is relatively inexpensive and you should ask your insurance agent about the property damage coverages available.

Comprehensive - This coverage covers your vehicle if it is broken into or sustains damage unrelated to an auto accident (i.e. a tree limb falls on your car, fire damage, or your car is burglarized or vandalized). Under this coverage, you will have to pay a deductible before the insurance company will repair the damage to your vehicle or replace stolen property. The deductible varies from $100.00 to $500.00 or more, and the cost of the coverage decreases as the deductible increases.

Collision - This coverage pays for damage to your vehicle when it is involved in a collision. This coverage will pay regardless of fault. Under this coverage, you will have to pay a deductible before the insurance company will repair the damage to your vehicle. As with comprehensive coverage, the deductible varies from $100.00 to $500.00 or more, and the cost of the coverage decreases as the deductible increases.

Medpay (MP) - This coverage is available to pay your medical bills if you are involved in an accident, regardless of fault. This coverage will pay up to its limit for a single accident for you and each person in your vehicle that sustained an injury. This portion of your policy can also cover you if you are in someone else's vehicle and either they do not have MP coverage or that coverage has been exhausted. This coverage is only for you and others in your vehicle. It does not cover persons in any other vehicle involved in the accident.

Also this coverage usually pays regardless if you have a group health insurance policy that would cover your medical bills. Medpay coverages vary because the State does not require it to be carried or even offered. Some policies will pay a set amount while others may require a deductible and/or co-pays. It is important that you read your policy or question your agent about the coverage.

Medpay coverage designated as Excess Medpay (MPX) will only pay after your group health insurance (if any) has paid. It will then pay your co-pays or out of pocket expenses not covered under your group health policy. It is usually less expensive than traditional Medpay because your group health insurance (if any) must pay before the MPX will even consider a claim.

Medpay coverages may contain a clause in your auto insurance policy that requires reimbursement to the insurer if you settle an injury claim against another party for the accident.

Coverages vary from company to company. To add or increase Medpay coverages will increase your premiums, but can be worth the extra expense to have additional assistance with your medical bills if you are involved in an accident.

Uninsured Motorist/Underinsured Motorist (UM/UIM) - After your BI protection this is probably the most important coverage. This protects you and your family if you are injured in an accident, that is not your fault, and the other party is either 1) Uninsured; or 2) Does not carry enough insurance to compensate you or your family for your injuries and damages. While the State of California requires all drivers to carry insurance, there are many uninsured drivers still out there. The minimum limits of insurance required by the State are $15,000/$30,000 and may not be enough to compensate you and your family if you are involved in an accident with someone who carries minimum limits.

A good rule of thumb is to carry as much UM/UIM coverage as you do in Bodily Injury (BI) coverage. You want to be sure that you adequately protect your assets with your BI coverage and you also want to be sure that you protect you and your family with your UM/UIM coverage. Under California Law, if you chose not to have UM/UIM coverage, you must sign a waiver denying this coverage. Denying this coverage can be a mistake.

-An Consumer Safety Update.

Friday, October 7, 2011

Auto Insurance and Safety Tips For Hurricane Season

Hurricane season brings about the need for vigilance in monitoring the weather and for protecting your family and assets. Along with your home, your car is also susceptible to major damages during hurricane season. Getting your car ready for evacuation and having your auto insurance in place for financial protection is necessary if you live areas of the U.S. at the highest risk for these monster storms.
Here are some safety tips to help prepare for the hurricane season.

Hurricanes and Auto Insurance: Monitor the Situation Yourself

You should be aware of the situation if an impending storm is heading your way. If at all possible, get out before the announcement of evacuation. By waiting till evacuation is announced, you put yourself in the situation of crowded highways and interstates. This will surely waste valuable time and increase your stress level due to the massive traffic problem. In addition, the congested traffic leads to more time on the road and the increased possibility of an auto accident.

Hurricanes and Auto Insurance: Garage Vehicles Left Behind

If you have to leave vehicles behind, or decide not too leave your home, make sure you at least garage all vehicles. While it may not completely protect your vehicle(s), it will provide an extra layer of protection. The garage can stop most flying debris that can severely damage your vehicle. From broken windows to chipped paint to falling tree branches, the protection of your garage can save you in repairs and the resulting increase in rates that can accompany a large auto insurance claim.

Hurricanes and Auto Insurance: Prepare Your Travel Vehicle

If you are planning on evacuation, you need your vehicle to be in tip-top shape. It is best that you check your tires before hurricane season begins. Keep up with your oil change schedule so you don't find yourself in a situation where you have to evacuate hundreds of miles inland and the oil has not been changed in 6 months. It is also a good idea to gas up your vehicle several days before an evacuation. Long lines at the pumps and the possibility of a shortage are likely during an evacuation. It is also a good idea to take your car to the mechanic for a once over at the beginning of the hurricane season as a preventative measure.

Hurricanes and Auto Insurance: Make Sure Your Auto Insurance is Up-to-Date

Your auto insurance policy should be up-to-date at the beginning of the hurricane season. This means making sure you have the right protection for your vehicle. Comprehensive and collision coverage will be necessary in order to pay for repairs due to hurricane damage. Also, make sure that your car insurance company does not exclude coverage for hurricane damage. While most policies will cover hurricane damage, some may not and it is better to be safe than sorry. In addition, if a big storm is about to hit, make sure you are paid up on your premiums so there are no hassles if a claim must be maid.

Hurricanes and Auto Insurance: Shop Around for the Coverage You Need

You may need to make some changes to your auto insurance policy for hurricane season. You may need to add coverage options, or you may be moving to an area with a higher risk for big storms. This will require you to shop around for the best price on the policy that offers you the hurricane coverage your vehicle needs. Online rate quotes allow you to compare the costs of adding comprehensive and collision coverage to your vehicle. There is no easier way to find the lowest price on the proper auto insurance policy.

Monday, October 3, 2011

Get Best Insurance Deals With This Steps

In this article, we action 10 tips for award the best auto allowance rate. Simply chase the tips that are achievable for you, and you may be admiring with the ante that you find.
1. Increase the assurance of your car by installing an alarm, immobilizer, tracking device, anti-lock brakes, or added security/safety features.
2. If your car’s bulk is beneath $1,000, and you accept absolute and/or blow coverage, accede bottomward them.
3. If you accept airbags or automated seatbelts in your car, attending for discounts for these.
4. Attending for the all discounts that you may be acceptable for: a acceptable active record, acceptable student, chief citizen, accumulation discounts (organizations, unions, employees), “all beneath one roof”, assorted car in one domiciliary discounts.
5. Accede attaining arresting active courses and use the affidavit for discounts.
6. Set a college deductible and/or abate the advantage amount. These two are tricky, as they can put you into an abhorrent predicament, so use them with caution.
7. Attending into advantageous your premiums in agglomeration sums, such as annually or semiannually.
8. Lower your mileage.
9. Start parking in safer locations.
10. Compare as abounding quotes as you can find.
Quote allegory is one of the best options from our list, back it can advice a being of any age, with any car, and any active almanac to acquisition the best auto allowance rate. The antagonism is absolutely angry on the auto allowance market, and anniversary aggregation is accomplishing their best to allure clients. Some companies do bigger than others in attention to exceptional rates. Once you acquisition low rates, you can analysis the banking adherence and added ratings for the aggregation of your choice, to ensure that you are accepting absolute bulk for the money.