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.” (article from insurance.com)

....Read More......

The Consequences of Not Having Auto Insurance

When young adults graduate college they have aspirations of starting their first "real world" job, getting their own place and buying a brand new car - one that does not need a screwdriver to start. However, college students are also graduating with much more than just a college degree and a dream, they are graduating with a substantial amount of debt. In fact, many students graduate with an average of $3,262 in credit card debt - 10 percent of that group owing more than $7,000 in credit card charges.

Students forget to factor in other life costs, such as health care, 401K deductions, income taxes, car payments, auto insurance, rent, utility bills, student loans, credit card bills and food expenses into their monthly budget. "After you graduate and land your first job, you do not think about having to pay for all of these expenses," stated a graduate from Ohio University. "Unfortunately, reality sets in pretty fast and you realize you do not have the money to make ends meet - it is a hard lesson to learn!"

College Debt

Why is there so much credit card debt among college students? "Many credit card companies set up kiosks on college campuses offering free pizzas and t-shirts to try and entice students to sign up for a credit card," noted David Roush, CEO of Insurance.com. "The problem is many college students do not have the income or financial knowledge to manage a credit card - a problem that is leading students into a lifetime of financial despair."

In addition to the outrageous credit card bills, students are also graduating with student loans ranging from $10,000 to $52,000 or more. Often students figure they will be able to pay everything off once they get a job and start making "real" money, but that simply is not the case.

Not only are credit card and student loan bills financially crippling to many new graduates, it is also forcing grads to cut back on other necessary expenses, such as auto insurance - one bill you legally cannot drive without! "Driving without auto insurance is illegal in all 50 states, however, many young adults elect to go without auto insurance because they think they cannot afford to have it," stated Roush. "A scary thought when 15.3% of all automobile accidents are caused by drivers between the ages of 20 - 24."

While deciding not to pay for auto insurance may seem like a good idea at the time, graduates are not considering the expense of getting caught without auto insurance or the cost of getting into an automobile accident. "Imagine if you had to pay the medical bills of someone who gets injured in car accident when you are at fault - suddenly paying for car insurance does not seem so bad," says Roush.

The Penalty of Driving Without Auto Insurance

According to the Insurance Information Institute, the cost of driving without auto insurance can vary from state to state, depending on the percentage of drivers who are uninsured in that state. For instance, in Massachusetts residents can be charged anywhere from $500 to $5,000 in fines and receive a one-year jail sentence. In Florida, Louisiana, Connecticut and New Jersey, drivers operating a vehicle without the state required minimum will have their vehicles impounded - which can cost you thousands depending on how long it takes you to get your car out.

To find out the auto insurance state minimum and fines and penalties for driving without insurance in your state, visit the Department of Motor Vehicles' website.

How to Budget For Auto Insurance

As you look for auto insurance, make sure to check if the insurer offers a 6-month or 12-month payment plan to help you manage your auto insurance payments better. In addition, many auto insurance providers offer a variety of discounts, including alumni discounts. So make sure to ask if your college or university is eligible for a discount, because every bit helps when you are first starting out on your own.

To help make researching auto insurance rates easier, Insurance.com offers an auto insurance comparison application. Here, you will be able to evaluate multiple rates from best-in-class insurance providers - helping you find the best auto insurance coverage for your newly graduated budget.(insurance.com)

....Read More......

What is covered by a basic auto policy?

Your auto policy may include six coverages. Each coverage is priced separately.
1. Bodily Injury Liability
2. Medical Payments or Personal Injury Protection (PIP)
3. Property Damage Liability
4. Collision
5. Comprehensive
6. Uninsured and Underinsured Motorist Coverage

1. Bodily Injury Liability

This coverage applies to injuries that you, the designated driver or policyholder, cause to someone else. You and family members listed on the policy are also covered when driving someone else’s car with their permission.

It’s very important to have enough liability insurance, because if you are involved in a serious accident, you may be sued for a large sum of money. Definitely consider buying more than the state-required minimum to protect assets such as your home and savings.
2. Medical Payments or Personal Injury Protection (PIP)

This coverage pays for the treatment of injuries to the driver and passengers of the policyholder's car. At its broadest, PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accident. It may also cover funeral costs.
3. Property Damage Liability

This coverage pays for damage you (or someone driving the car with your permission) may cause to someone else's property. Usually, this means damage to someone else’s car, but it also includes damage to lamp posts, telephone poles, fences, buildings or other structures your car hit.
4. Collision

This coverage pays for damage to your car resulting from a collision with another car, object or as a result of flipping over. It also covers damage caused by potholes. Collision coverage is generally sold with a deductible of $250 to $1,000—the higher your deductible, the lower your premium. Even if you are at fault for the accident, your collision coverage will reimburse you for the costs of repairing your car, minus the deductible. If you're not at fault, your insurance company may try to recover the amount they paid you from the other driver’s insurance company. If they are successful, you'll also be reimbursed for the deductible.
5. Comprehensive

This coverage reimburses you for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer.

Comprehensive insurance is usually sold with a $100 to $300 deductible, though you may want to opt for a higher deductible as a way of lowering your premium.

Comprehensive insurance will also reimburse you if your windshield is cracked or shattered. Some companies offer glass coverage with or without a deductible.

States do not require that you purchase collision or comprehensive coverage, but if you have a car loan, your lender may insist you carry it until your loan is paid off.
6. Uninsured and Underinsured Motorist Coverage

This coverage will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver.

Underinsured motorist coverage comes into play when an at-fault driver has insufficient insurance to pay for your total loss. This coverage will also protect you if you are hit as a pedestrian. (iii.org)

....Read More......

What is auto insurance?

Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy.

Auto insurance provides property, liability and medical coverage:

* Property coverage pays for damage to or theft of your car.

* Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
* Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

An auto insurance policy is comprised of six different kinds of coverage. Most states require you to buy some, but not all, of these coverages. If you're financing a car, your lender may also have requirements.

Most auto policies are for six months to a year. Your insurance company should notify you by mail when it’s time to renew the policy and to pay your premium.
(iii.org)

....Read More......

Auto Insurance: What are my car insurance coverage options?

Understanding the types of car insurance coverage options will help you make choices that you feel are right for you. Learn how liability, property and injury protections can help protect you from loss, damage and lawsuits and how limits and deductibles work. Discover what new bundled features – like Accident Forgiveness and Deductible Rewards – might be available to you. Compare auto insurance coverage options below and then get an online car insurance quote. Or, find out more about motorcycle insurance.

Auto Insurance Liability Coverages: Protect yourself and others with liability coverages*

Liability Coverage – typically helps protect you for damages to others if you’re at fault in a covered accident.

Medical Payments Coverage – typically helps provide payment for your reasonable and necessary medical treatment for bodily injury caused by a covered accident.

Underinsured/Unisured Motorist Coverage – typically helps protect you for covered damage caused by drivers who don’t have auto insurance or don’t carry enough auto insurance.

Auto Insurance Property Coverages: Protect your car with property coverages*

Collision Coverage - typically helps pay to repair or replace your insured car after a covered accident.

Comprehensive Coverage – typically helps pay for covered damages to your insured car resulting from a peril other than a collision, such as theft, windstorm or flood, to name a few.

Additional Auto Insurance Coverages: Protect your assets with additional coverages*

Personal Injury Protection

Additional coverage options – Optional coverages such as Towing & Labor Costs* and Tape/CD Coverage* can help tailor your coverage to help fit your particular needs.
(allstate.com)

....Read More......

Auto Insurance: How do I choose the right auto insurance company? (an affer from allstate.com)

With so many companies offering auto insurance, how do you choose the one that's right for you? You deserve an auto insurance company that offers more than just auto insurance. What matters most is being able to feel confident that your insurance company will be there when you need it. When researching auto insurance companies, consider the following:

You want to be treated right when you buy car insurance. So seek out an insurance company with a large network of offices, claims centers, agencies, and helpful employees to serve you wherever and whenever you need. Allstate is dedicated to the highest levels of customer satisfaction. We've been serving satisfied customers since 1931 and we insure one out of every nine cars on the road. We’re the 2nd largest insurer of autos and homes in the U.S. We got there by serving customers like you quickly, fairly, and compassionately.

Your local Allstate agent provides personalized service and if you need assistance after hours, don’t worry. You can make a payment, file a claim or just get general information 24/7, through our online Customer Care Center or over the phone at 1-800-Allstate®. We’re always standing by.
Committed Agents
An insurance agent can assist you in making decisions for your changing needs.

Allstate offers a network of approximately 12,900 exclusive agencies and financial specialists in the U.S. and Canada to assist you with your insurance needs. Your Allstate agent offers personalized service in a local office. With a wide variety of policies, optional coverages and other products available, and as your insurance needs change, your local agent will take the time to help so you can make the choices that are right for you.
Responsiveness & Availability

It’s critical that your auto insurance company responds when you really need assistance. When you have an accident, need claims service, or road-side assistance, is help close by? After all, that’s what you’re paying for.

Allstate offers outstanding claims service 24 hours a day, 7 days a week. With 16,000 claim employees, 500 drive-in claim centers, and 150 claim offices, you’re never far from help. And you can be confident that your claim will be handled efficiently and professionally.
Stability

Choose a company that has been there, and will be there in the future. One way to determine financial stability is to do your research. Both A.M. Best and Standard & Poor’s offer financial ratings for insurance companies.

Allstate receives excellent ratings for our claims paying ability from A.M. Best, Standard & Poor's and Moody’s.* You can count on our outstanding financial strength and superior claims service to help protect what you value.
Allstate is the easy choice as your car insurance company

In addition to great service and reliability, you’ll get value for your money by purchasing a policy from Allstate. With auto discounts for safe cars and good students, you’ll be surprised how much you could save. Get an online car insurance quote today and find out if switching to Allstate could save you money.

....Read More......

Auto Insurance: What should I consider when choosing car insurance?

We understand. Auto insurance coverage needs vary depending on your situation. If you have a motorcycle, the insurance options you should consider will be different than if you're adding a teen to your car insurance policy. A new car requires different considerations than an older one.

In the scenarios listed below, we provide an overview of the auto insurance coverages you should consider. In addition to explaining the coverage considerations, we've even included information on the savings and discounts you may qualify for.

*
I am buying my first car and I need car insurance.
*
I need auto insurance for an older car.
*
I am adding my teenager to my auto insurance policy
*
I am just shopping around for car insurance.
*
I have a motorcycle and I need motorcycle insurance.

We're here to help you make the choices that you feel are best for you. For more information, contact a local Allstate agent today or get a car insurance quote online.
(source : allstate.com)

....Read More......

Auto Insurance: Why do I need auto insurance coverage?

Having auto insurance coverage can help protect the people and things that are important to you. From liability coverages that help protect you to comprehensive coverage that helps protect the investment in your new car, quality auto insurance coverage is the foundation of a good financial plan.

Car insurance can help:

*
Safeguard your investment in your automobile
*
Pay for medical expenses in case of an accident
*
Provide financial protection from lawsuits
*
Cover losses caused by uninsured or underinsured drivers
*
Pay for damage due to theft, vandalism or natural disasters
*
Auto insurance coverage helps you to meet whatever might be coming down the road with a greater peace of mind.

Remember, however, not all coverages are the same. When determining what kind of auto insurance coverage applies to you, consider your specific situation. Different types of coverage options and limits fit the different needs a person might have. When you have all the information you're looking for, get an online car insurance quote.
(source : allstate.com)

....Read More......