Do You Know the Auto Insurance Basics?

If you drive, you know how crazy it gets out there. Accidents happen, fenders get bent, people get hurt. Or you're innocently parked in your driveway and a tree limb crashes through your windshield. When disaster strikes, auto insurance is there to protect you.

Why buy auto insurance?

1.) Auto insurance protects you against the financial risk associated with personal injuries and property damage caused by auto accidents, theft, vandalism, or natural disasters.

2.) All states require you to purchase at least a minimum amount of liability coverage. Other types of auto insurance coverage may be optional or required, depending on state regulations.

3.) If you have a car loan outstanding, you'll generally be required by the lender to purchase at least a minimum amount of auto insurance.
Liability coverage
You'll be required by state law to purchase a minimum amount of some or all of the following types of liability coverage:

Bodily injury liability: Protects your assets if you are held liable for an auto accident in which other people are injured or killed.
Property damage liability: Covers repairing or replacing the autos or other property of other people.
Uninsured/underinsured motorist coverage: Unless you live in a "no-fault" state (where your own insurance will cover your losses), this coverage insures you against losses caused by other drivers with little (underinsured) or no (uninsured) auto insurance.

To adequately protect yourself, you may want to purchase much more than the minimum amount of coverage required in your state.

Collision, other-than-collision, and medical payments coverages
Although these types of coverage are optional in most states, it often makes sense to purchase them, unless you can afford to pay for damages yourself.
Collision: Pays to repair or replace your car if it's damaged in an accident.
Comprehensive: Insures your car against damage caused by something other than an auto accident (e.g., theft, fire, flood, vandalism).
Medical payments or personal injury protection: Covers various medical expenses not covered by your health insurance or your passengers'.

And then the insurance company pays for everything, right?
Wouldn't that be nice? But it's not always true. Here are some things you'll always need to cover yourself:
Deductibles: The amount of money that you've agreed to pay out of your own pocket before your insurance coverage kicks in.
Exclusions: Events or situations your policy specifically omits from coverage, such as property damage or personal injury you intentionally cause to others, or damage to your own car due to mechanical failure.
Costs above limitations: Any expenses for which you're responsible that exceed the caps on the dollar amounts of coverage you're entitled to receive under your policy.

Driving a good bargain
Many factors affect your auto insurance premium, including your age, the state in which you live, the make and model of your car, where your car is garaged, and your driving record. Although you can't do much about some of these factors, here are some things you can do to help lower your premiums:
Increase your insurance deductible.
Eliminate optional coverages (e.g., towing and labor, rental insurance) from your auto insurance.
Eliminate collision and comprehensive coverage if you drive an older car valued at less than $1,000 and could afford to pay for repairs if necessary.
Ask about available discounts (e.g., low-mileage discounts, discounts for safety or antitheft devices) for your auto insurance.
Avoid buying a vehicle that is prone to theft or expensive to repair.
Keep your car in a garage.
Drive safely to establish a good driving record.

Shop around
It's important to shop around for auto insurance coverage. Insurance premiums for the same coverage on the same car can vary widely among different insurers, even in states that regulate auto insurance rates. A particularly good time to investigate your alternatives is when your current insurance policy is up for renewal, but you can shop and change policies at any time. Get quotes from several reputable companies, but don't let price be your only consideration. Make sure the coverage offered by each insurer meets your needs, and find out whether the insurer has a good track record in the industry (contact your state's department of insurance for more information).
Read More ..

Save On Auto Insurance with a Hybrid

Between gas prices and the economy, American drivers are having trouble deciding what autos to buy. Many people are exploring alternatives, from bikes, to buses, to biofuels. One auto alternative is hybrid cars. But what exactly is a hybrid and why would you want one?


Gas Mileage. The reason most people want a hybrid is because of the great gas mileage they can get. How is this possible? Technology for hybrid autos varies, but higher fuel efficiency is usually accomplished with an electric motor. Batteries store energy recovered during braking and supply that energy back to the electric motor, cutting down on the amount of gas used. A 2008 Toyota Prius, for example, gets an EPA estimated 46 MPG for combined use, while a 2008 Honda Civic Hybrid gets an EPA combined rating of 42 MPG.

Hybrid Types. However, make sure you understand what type of hybrid you’re buying. Some hybrids are designed not to save gas, but to increase performance. For example, there are sports autos that take the gas engine from another model and add an electric motor to increase power. This design uses less gas than an auto with a bigger gas engine, but could actually use more gas overall than the same auto without the electric motor. A 2008 Lexus GS 450h gets an EPA estimated 23 MPG combined, while the 2008 Ford Escape Hybrid gets an EPA rated 32 MPG. Buying a hybrid doesn’t automatically mean you’ll get better mileage than a big SUV does.

Discounts. You could be eligible for discounts if you buy a hybrid. Although their numbers are dropping quickly, some hybrid models may qualify for a federal tax incentive. In addition, many states offer tax incentives, parking incentives, and other toll or driving incentives. When you add these savings into the amount you can save in gas, suddenly a hybrid auto doesn’t seem as expensive. Read More ..

When your car insurance claim is denied

There are many reasons a car accident claim can be denied, valid or not. If your car insurance claim was denied, take note of the reason(s) given in the insurance company’s denial letter. Then take out your insurance policy and begin reading. The denial could be an error based on a lack of complete information or misinformation. But it could also be a correct determination by the insurance company.


Some common reasons for denial are:

No car insurance coverage was purchased for the claim presented. For example, if you drive an older vehicle, you may carry only liability insurance and have no collision coverage because it is expensive. A claim under your policy for damage to your own vehicle will rightfully be denied.

You made an Uninsured Motorist Claim under your policy and it turns out the other party to the accident was insured.

You do not qualify as a named insured under the policy. For example, you are a teenager and you are specifically excluded under your parents’ policy because your parents do not expect you to drive their vehicle.

Your coverage has lapsed because you failed to pay your premium before the end of the grace period.

The amount of damage claimed exceeds your policy limits and the insurance company will not cover the excess.

You bought a new car and failed to notify the insurance company to add it to the policy within the specified time given in the policy.



If, after reading the insurance company’s reasons and reviewing your policy, you still believe coverage has been wrongfully denied, there are some steps you may take to try to remedy the situation. You have certain rights under your policy and under state law. Your insurance company has a duty to fairly and promptly settle your car accident insurance claim in good faith.

Steps you can take if coverage has been wrongfully denied:

Write back to the insurance company to tell them where their mistake is and provide them with documentation to support your response.

Appeal the company’s decision to the State Insurance Commissioner.

Hire an insurance bad faith attorney to discuss the error with the insurance company.

Sue the insurance company for bad faith, breach of contract, and/or violations of your state’s insurance code.



If the insurance company realizes its mistake, or you are correct in that the adjuster made an error, they will reopen your claim and move forward with their investigation. Where you don’t understand their reason for denial, ask for clarification. It would be wise to consult an attorney to make sure they are not erroneously denying your claim.

CAUTION: Your insurance company is required to act in good faith when handling your car accident claim. If the insurance company unnecessarily denies your claim or fails to promptly settle it, you can sue them for bad faith, breach of contract, and violations of your state’s insurance code. It is crucial that you seek out an auto accident attorney who is experienced in insurance coverage litigation if you believe your insurance company is not handling your claim fairly.

Note that if your car accident claim is with the insurance company for the other driver involved in the car accident, a failure to settle promptly or fairly is not a denial of the claim. You should contact an attorney to either negotiate a settlement for you or to file suit against the responsible driver. Under some circumstances and in some states, you may also file a complaint with the State’s Department of Insurance for Third Party Bad Faith. Seek advice from an attorney to see if yours is one of those states.
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Why you should compare auto insurance company rates anually.

Auto Insurance companies are always looking for reasons to increase what you pay for auto insurance. If you have an accident. If you have a teen driver. If you file certain types of claim. If you don't have a garage. If you buy a car that happens statistically to be stolen more often. If you change jobs and have a longer commute to work. These are all reasons that an insurance company may decide gives them the right to raise your auto insurance premium. The only way for you to stop them from increasing your rates is to make them compete for your business. As in all negotiations, Information is Power and more importantly, you have to be willing to Walk Away from a bad relationship.

INFORMATION IS POWER - The Internet provides consumers the opportunity to learn about their insurance options. First of all, you can get multiple insurance quotes without having to talk to an insurance agent or sales representative. There are many sites now that allow you to provide driver, vehicle, claims and violations information online in order to show you insurance quotes from multiple companies. You can also visit each company site individually and request a single quote from each. You should be wary of individual companies that promise to give you other company's rates, in insurance, there are people they want to sell policies to and people they don't want to sell policies to, can you really trust them to provide quote information that isn't in their company's best interest. Secondly, just because you shop online with out talking to an agent doesn't mean you have to buy online without talking to an agent. Most online services give you the option of talking to a licensed agent before you buy.

WALKING AWAY - if you aren't willing to end a bad relationship, then the abuse will never end. We need to show insurance companies that they can't just raise rates when ever they feel like it. Insurance companies know that a rate increase will only motivate a small number of their policyholders to look else where. They count on your apathy. Don't let them get away with it. Shop your auto insurance today. Read More ..

Do You Know the Auto Insurance Basics?

Do You Know the Auto Insurance Basics?

If you drive, you know how crazy it gets out there. Accidents happen, fenders get bent, people get hurt. Or you're innocently parked in your driveway and a tree limb crashes through your windshield. When disaster strikes, auto insurance is there to protect you.

Why buy auto insurance?

1.) Auto insurance protects you against the financial risk associated with personal injuries and property damage caused by auto accidents, theft, vandalism, or natural disasters.

2.) All states require you to purchase at least a minimum amount of liability coverage. Other types of auto insurance coverage may be optional or required, depending on state regulations.

3.) If you have a car loan outstanding, you'll generally be required by the lender to purchase at least a minimum amount of auto insurance.
Liability coverage
You'll be required by state law to purchase a minimum amount of some or all of the following types of liability coverage:

Bodily injury liability: Protects your assets if you are held liable for an auto accident in which other people are injured or killed.
Property damage liability: Covers repairing or replacing the autos or other property of other people.
Uninsured/underinsured motorist coverage: Unless you live in a "no-fault" state (where your own insurance will cover your losses), this coverage insures you against losses caused by other drivers with little (underinsured) or no (uninsured) auto insurance.

To adequately protect yourself, you may want to purchase much more than the minimum amount of coverage required in your state.

Collision, other-than-collision, and medical payments coverages
Although these types of coverage are optional in most states, it often makes sense to purchase them, unless you can afford to pay for damages yourself.
Collision: Pays to repair or replace your car if it's damaged in an accident.
Comprehensive: Insures your car against damage caused by something other than an auto accident (e.g., theft, fire, flood, vandalism).
Medical payments or personal injury protection: Covers various medical expenses not covered by your health insurance or your passengers'.

And then the insurance company pays for everything, right?
Wouldn't that be nice? But it's not always true. Here are some things you'll always need to cover yourself:
Deductibles: The amount of money that you've agreed to pay out of your own pocket before your insurance coverage kicks in.
Exclusions: Events or situations your policy specifically omits from coverage, such as property damage or personal injury you intentionally cause to others, or damage to your own car due to mechanical failure.
Costs above limitations: Any expenses for which you're responsible that exceed the caps on the dollar amounts of coverage you're entitled to receive under your policy.

Driving a good bargain
Many factors affect your auto insurance premium, including your age, the state in which you live, the make and model of your car, where your car is garaged, and your driving record. Although you can't do much about some of these factors, here are some things you can do to help lower your premiums:
Increase your insurance deductible.
Eliminate optional coverages (e.g., towing and labor, rental insurance) from your auto insurance.
Eliminate collision and comprehensive coverage if you drive an older car valued at less than $1,000 and could afford to pay for repairs if necessary.
Ask about available discounts (e.g., low-mileage discounts, discounts for safety or antitheft devices) for your auto insurance.
Avoid buying a vehicle that is prone to theft or expensive to repair.
Keep your car in a garage.
Drive safely to establish a good driving record.

Shop around
It's important to shop around for auto insurance coverage. Insurance premiums for the same coverage on the same car can vary widely among different insurers, even in states that regulate auto insurance rates. A particularly good time to investigate your alternatives is when your current insurance policy is up for renewal, but you can shop and change policies at any time. Get quotes from several reputable companies, but don't let price be your only consideration. Make sure the coverage offered by each insurer meets your needs, and find out whether the insurer has a good track record in the industry (contact your state's department of insurance for more information).

Read More ..

8 Things You Should Know About Auto Insurance

Dealing with the ins and outs of auto insurance can be as tricky and confusing as trying to untie the Gordian knot. Although we can`t help you with the knotty Gordian problem, the following recommendations could help you figure out some of the more complicated points of auto insurance.

1) Determine appropriate coverage.
Help control the price you pay, just ask American Insurance Association executive Dave Snyder. For example, Snyder notes that half of your auto insurance bill covers liability and "that has to do with how you are going to use the vehicle, such as for commuting to work and your driving record. If you`ve got a clean driving record, you figure to pay less for insurance than you would if you had a speeding ticket on your record. You can control the other half of your premium which covers damage or loss to your vehicle, comprehensive and collision coverage."

2) Shop around for insurance.
"In most states," Snyder reports, "there are hundreds of insurers competing for business, so it`s possible to save hundreds of dollars by obtaining quotes from different auto insurance providers." Picking up on Snyder`s theme is his AIA colleague, Nicole Mahrt. Mahrt urges you to work with your insurance provider to get more than one quote. "It pays you to shop around, especially if you feel you`ve been paying too much."

3) Look for insurance discounts.
"Many insurers will give you a discount if you buy two or more types of insurance from them, for example auto and home insurance," confirms John Marchioni, senior vice president of Personal Lines for Selective Insurance, in Branchville, N.J. More cost-saving suggestions from Marchioni: "Ask about discounts for air bags, anti-lock brakes, daytime running lights and anti-theft devices."

4) Consider taking a higher deductible.
"You could lower your insurance bill by increasing your deductible," Mahrt says. "But just make sure you can pay the higher deductible if you file a claim."

5) Look into "stacking" coverages if you file an insurance claim.
Insurance trade group officer Daniel Kummer explains that stacking uninsured/underinsured motorist coverages means "you can collect from more than one of your auto insurance policies. Most states prohibit this practice, but there are about 19 states that either allow stacking or don't address the issue either through legislation or litigation," according to Kummer, director of personal insurance for the Property Casualty Insurers Association of America. "Be sure to check your auto insurance contract to see if it's allowed. "Be advised that you`ll likely pay a higher insurance premium if you have stacked coverage. "It could be 10% to 30% more depending on the litigious nature of the state in which you reside," says Kummer.

6) Check with your insurance provider BEFORE buying a car.
"Your premium is based in part on the car`s sticker price, the cost to repair it, its safety record and the likelihood of theft," answers Selective`s John Marchioni. Remember to avoid shopping by price alone. "You want an agent and a company that answer your questions and handle claims fairly and efficiently," emphasizes Marchioni, senior vice president of Personal Lines for Selective Insurance.

7) Notify your auto insurance company as soon as you change companies.
"Be sure to cancel your old policy," suggests PCI`s Dan Kummer. "Do it the same day, but don`t cancel your old policy until you`ve lined up a new contract. That`s important because some states like New York will fine you for the number of days you go without insurance." One last thought from Kummer on the subject: "Most auto insurers specify in your contract that you can terminate your policy any time you want by informing your company in writing about the date you wish that coverage be terminated or you can do that over the phone.

8) Pick the insurance payment option that best fits your budget.
"Generally, most companies will give you the ability to pay over time, but that comes at a price," says Kummer. "Your payment could increase a few dollars each time you pay by installment. Insurers can accept payments monthly, quarterly, or every six months, what ever is most convenient for you. Remember, though, that the more you break down your payments, the more the cost adds up." Read More ..