Auto Insurance: Nineteen Things You Need to Know
Posted by admin at 12:10 | Filed In Auto Insurance Broker
If you drive a car, you need to understand auto insurance. Believe me; its much better to learn now than it is after an accident. Here are 19 ways to get the most coverage for the least money:
1. Spend your money wisely
Put your money towards the things that could wipe you out financially.
Most people will spend a lot of money to get a $500 deductible and ignore the fact that a $500,000 lawsuit could bury them forever. You should raise your deductible and increase your liability coverage. The premium change will balance itself out to about the same amount you are paying now. Raising your total liability coverage from the standard $300,000 to $500,000 will only cost you about $60 more per year on two cars.
Look at the trade-off: what you are saving in premiums vs. how much risk you can accept. You can save on your premiums by shaving off your personal injury protection. This is often called the medical payments coverage. If you already have health insurance, it will pay your medical bills after an accident. You are basically paying for the same coverage twice.
2. Look at your liability coverage per person
Have your agent write your policy so that the total amount paid per accident and per person are the same amount.
If you have $300,000 in total liability, often only $100,000 is payable for each person injured. If you are sued by an individual for $200,000 you are responsible for half. Your $300,000 worth of coverage should reflect $300,000 worth of coverage.
3. Buy an umbrella policy
If you have a considerable amount of assets, or plan to, consider taking out an umbrella policy that covers both your home and autos for liability. These policies usually start at $200 to $300 annually for up to $1 million of coverage.
4. Good advice is worth looking for
Make sure that you get your advice from neutral, credited professionals. When shopping for an agent, look for experience. You dont want to necessarily go with an agent that has only had one weeks worth of training! Look at their education and industry credentials. Look for those who are members of the CPCU, CIC and AAI.
5. Good credit ratings count
Your credit rating is used to determine your insurability and your premiums. Good credit equals affordable insurance.
6. Your insurance company pays for your rental
If you have been in an accident and your car has to be in the shop, make sure that your policy covers the costs of renting a similar car. While a week with your car in the shop doesnt sound like all that long, one-week worth of rental fees can add up to the hundreds of dollars.
7. Shopping around pays off
Premiums vary widely from company to company. You can often pay more than double for the same insurance. Make sure that you call around for quotes from brand name companies and independent agents.
Dont assume that going with a well known company will cost you more. Insurance companies with the best ratings often have the best prices.
Dont just get a quote ask for the exact numbers on the exact coverage you need. You want to compare apples to apples.
8. Take advantage of discounts
Discounts can help to save you a lot of money. If you havent had an accident in years, if you store your car in your garage, if you dont drive many miles you may be eligible for a discount. Companies will also give you discounts for safety features and anti-theft devises. More than one car or more than one type of policy with a company gives you a discount also.
Paying your premiums annually instead of monthly can save you over $100 a year. Driving classes and good grades while in school can save you also.
9. Teens that arent driving dont need to be insured
If you teen is away at college and is no longer driving your car, take them off of your policy. Teen drivers add anywhere from 50% to 500% to your premium. If your teen is driving, make him or her get their own insurance. Its time for them to start learning about insurance on their own.
10. Older cars dont need collision insurance
If you have an older car, you often dont need to carry collision insurance. You will be paying more in premiums for it than the car is worth. Ask your agent what your car is worth and how much of your premium goes towards collision insurance. Chances are you could just save the extra money for a year and have plenty set aside for replacing your car.
11. Shop for the best service
You need to find a company that is responsive, responsible and easy to deal with. Chances are that you are going to file a claim at some time in your life. You need an agent that will work with you towards a common goal: your satisfaction.
A good agent will act like a coach. He or she will advice you on how to present your claim to adjusters and will help you in any disputes. Dont settle for a 800- number that never lets you talk to a real person.
12. Understand the claims process
Have the agent explain to you the claims process before you chose which company to go with. Find out if your insurance pays for brand name, generic or used parts to fix your vehicle. Are you limited in your choice of garages? Make sure that you have everything in writing.
13. Diminished value ask about it
This is a very hot topic when it comes to auto insurance. Is a car worth less after an accident? If it is, should the insurance fix the car and pay you the difference in values? Ask your agent what your state regulations and rulings are regarding diminished value.
14. As soon as you have an accident, call your agent
There are time limits for most claim reports, usually 48 hours. If you want to ensure that all is being taken care of, call immediately.
15. Keep claim records
Write down everything that happens after an accident names, dates and what was said. Keep track of when and who you speak with regarding the accident. You may be able to record any phone conversations. Save all of your receipts, get estimates and pick up a copy of the accident report.
16. Keep your claim moving
Shop around and get any necessary estimates. By jumping right in and doing so, you will be prepared and save everyone time.
17. Include everything in loss estimates
If you total your car, you may be able to recover the entire cost, including your sales tax and registration fees. Contact your agent to find out what estimates you need to have.
18. Be patient with your adjuster, but keep pressuring
An adjuster is just like you or me, they make mistakes. If you keep your temper and politely work your way up the chain of command, you will get much further. Have all denials put in writing with reasons included. Compare the explanation with your policy.
Your agent is there to make calls on your behalf. Ask to have the matter reviewed. You can choose to go into arbitration, but you will pay half of the costs. This is often quicker than taking the matter to court. See what the record of customer satisfaction is with the companys arbitration hearings. Your last resort is suing.
19. If you switch companies, cancel your old policy
But dont cancel it before you have new insurance. You want to have no gaps. Some companies will report that you are driving without insurance and you may face a suspended drivers license. If you get a letter from the state, make sure that you provide your proof of insurance immediately.
Martin Lukac, represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!
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