Posts Tagged ‘car insurance coverage’

Car Insurance Myths

Monday, April 23rd, 2012

An insurance policy can seem like a maze of mysterious factors leading to your premium and a complex array of different rules as to what is covered. You’ll find that car insurance rates vary widely from place to place, but some things are standard across the board. The best you can do is have realistic expectations for your policy. Beware: believing one of the following common car insurance myths could end up costing you a lot of money and aggravation!

Myth #1: Car insurance covers me if my car is stolen or vandalized.

Only people with comprehensive coverage will be protected in the event of theft, fire, hail damage, or intentional damage from vandals. Most states only require liability coverage to protect others from damage you’ve caused. If you hit a deer while driving, your collision coverage will take care of that. However, if your car is at rest and your dog jumps up, swiping his paw across the door, you will not be covered — unless you have comprehensive coverage.

Myth #2: Insurance will pay off my loan if my car is totaled.

A car is determined “totaled” when the cost of repair exceeds the car’s value. Many people are excited by the possibility of receiving a large sum of cash, but they must keep in mind that this isn’t all money in their pockets for a new vehicle. They will factor in depreciation, but you will be responsible for paying the outstanding amount due on your original vehicle loan. The only way to be fully protected in this scenario is to purchase “gap insurance.”

Myth #3: Car insurance pays for rental cars if my vehicle is damaged.

Not all car insurance automatically covers the use of a rental car. Many policies will let you add this optional coverage for an extra $1-2/month. Often when you are seeking car insurance quotes and selecting your preferred level of coverage, you will see this question come up. Keep in mind that  there are limits for how much you can be reimbursed for rental cars too. For instance, GEICO only reimburses you up to $25 per day to a limit of $750 per accident.

quotes for car insurance

Think you're guaranteed a rental car? Presume you'll walk away with $5,000 to buy a new car, even though you're still paying on your loan? Guess again! Check for car insurance quotes to dispel a few common myths.

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Posted in Car Insurance Rates, Discount Car Insurance, General Car Insurance |

How Much Do Auto Insurance Rates Increase After A DUI?

Monday, April 2nd, 2012

car insurance

You knew it was wrong, but you did it anyway. Now you’re faced with a DUI conviction, with the fate of your future driving privileges hanging delicately in the balance. It’s a terrible situation, but it doesn’t have to be the end of the world. Learn what  you can do about escalating car insurance following a DUI…

How Much Do Rates Go Up?

Rate hikes also vary from state to state, but the average increase ranges from 20 to 50 percent. “It’s not just a little hike in your rates,” says Penny Gusner, a consumer analyst who covers the car insurance industry. “Expect your premium amount to increase 30 to 100 percent, or even more.”

Is There Any Hope?

Usually, auto insurance companies take several factors into consideration, including:

  • Age (If you’re young, you’ll pay more!)
  • Arrest Circumstances (If you hit other cars, you’ll pay more!)
  • Driving History (If you’ve never been in trouble before, you’ll pay less than expected.)
  • State (If you in NY, CO, AZ, AK, FL, DE, NE, KS or UT, you may face tougher laws.)
  • Location (If you were busted on a highway, expect to pay more!)
  • Philosophy (Some companies will drop you, while others may calculate your risk in relation to other members.)
  • Coverage (If you had bare minimal coverage, you will pay an arm and a leg later!)
  • Number of DUIs (First-timers will have it easier than veterans.)

The Other Good News

States like Delaware, Kentucky, Minnesota, New Mexico, New York, North Carolina, Oklahoma and Pennsylvania don’t require SR-22 filings, which means that there is a slight chance your car insurance provider may not realize you have been convicted. DUIs that are successfully reduced to plea bargains or limited license suspensions of 30 days or less may not be reported.

It’s recommended that you check a comparison site for car insurance quotes to make sure you’re getting a fair deal.

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Posted in Car Insurance Rates, General Car Insurance, USA |

How Do I Cancel an Auto Insurance Policy

Thursday, March 8th, 2012

There may be times when you will need to cancel an auto insurance policy, and it is important to do this the right way to avoid a lapse in coverage. While not all auto insurance providers require their policyholders to inform them in writing that they wish to cancel their coverage it is a good idea to do so. That way, the policyholder has a written record of your request to cancel the policy and the date the cancellation should take effect.

An example of a situation where a driver may wish to cancel or not to renew his or her policy of his plan is when he or she has decided to switch providers. Some drivers decide to cancel their policy if they sell their vehicle and will not be replacing it, or have decided to take the car off the road for a time. In the latter instance, the driver will likely need to surrender his or her plates to the Department of Motor Vehicles for the time the car will not be driven.

Cancel an Auto Insurance Policy When Changing Providers

A policyholder who has decided to change auto insurance companies will want to shop for and buy the new policy before canceling the existing one. This strategy is important to avoid a lapse in coverage.

The policyholder who wants to buy coverage from a new company would buy a policy online, over the phone or through an agent, and make the first payment. A driver should always make sure that the new policy has been issued and that coverage is in effect before canceling the old one.

To officially cancel the old auto insurance policy, the driver should send a letter to the company indicating the date he or she would like the coverage stopped.  It is a good idea to confirm the mailing address for the insurance company and whether the cancellation letter should be sent to a specific person or department.

Sending the cancellation letter by registered mail or by courier is also a good idea. The policyholder will have a record that the letter arrived at the company.

Cancel an Auto Insurance Policy without Switching Companies

A driver who is not switching auto insurance providers can cancel his or her coverage at any time. It is still a good idea to inform the company in writing and to include the effective date for the cancellation.

If the driver paid for auto insurance premiums in advance, here she would be entitled to a refund on the unused portion. The insurance company may charge an administrative fee if the policy was canceled before the renewal date, though. To find out what a specific companies rules are regarding midterm policy cancellations, the driver should look at his or her auto insurance policy documents or contact the company’s customer service department to find out whether extra fees will be charged in this instance and how much he or she would have to pay.

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Posted in General Car Insurance |

How Do I Find the Best Auto Insurance Company

Tuesday, February 21st, 2012

Auto insurance buyers who are looking for the best deal on their coverage need to determine which auto insurance company is best for their needs. The decision is made individual one, since each driver may have different criteria about what they’re looking for an insurance provider.

Before starting to shop for auto insurance coverage, the consumer should sit down and make a list of exactly what he or she is looking for in a company. Having a list of criteria before starting to shop will make the process much easier. There are many companies licensed to sell policies in each state, which means that consumers have many choices available to them.

Choose the Best Auto Insurance Company

Auto insurance buyers should take the time to consider their options before choosing a provider. There are local and national auto insurance companies offering coverage, and both types have something to offer consumers.

Some buyers feel more comfortable dealing with a local company where they can call or stop into the insurance provider’s office to deal with any questions or concerns. Other consumers don’t mind getting their coverage from the national company if it means that they can qualify for better rates on their coverage.

While price must be a consideration when shopping for auto insurance, it should not be the main one. A company which offers cheap rates but does not have a good record of paying policyholders’ claims in a timely manner may not offer the best deal on coverage. No one expects to be involved in an accident or circumstances which cause damage to his or her car but when the worst happens, delays in getting the claims settled can be stressful and expensive if the policyholder does not have replacement vehicle coverage.

When an incident requiring making claim does occur, a good auto insurance company will make it easy for policyholders to report it. Look for a company which offers a dedicated claims line where policyholders can report an incident quickly and get an adjuster assigned to their claim right away.

Another consideration when choosing the right auto insurance company is its financial health. Looking at the “About Us” or “Company History” section of an auto insurance providers website may indicate the auto insurance companies financial rating. A company with an A+ or an A rating is one which has the financial reserves in place to pay out on its policyholders’ claims. If the financial rating information is not indicated on a company’s website, a consumer can find out what it is one of the leading agencies, such as Standard & Poor’s or Moody’s.

Consumers may have different ideas about what the best auto insurance company is at different times in their life. Young drivers who are paying higher rates for coverage may be more focused on a company which can offer better pricing, while older consumers who have several years of driving experience may want to do with the company which provides a better level of customer service.

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Posted in General Car Insurance |

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