Open Market Value of a Car and Insurance Cost

May 15th, 2014

Sometimes it may not be as important what you think and you may need to understand what is acceptable. You may think that your automobile is worth a lot of money. But when it comes to claims what really matters is its open market valuation.

Unfortunately, car lose their value faster than you may think. You have paid tons of money for it only few years ago but how much you can offload it for now? It may be hard to swallow but within days of bringing your brand new automobile, you stand to lose at least ten percent of its value.

It is helpful to understand how companies will calculate the premiums and claims. For example, what would happen if your vehicle was totaled. The payout may disappoint the owner, but the logic is undeniably sound behind using the market price instead of some false notion of value placed to it by its owner.

Vehicle insurers will only pay you enough money so that you can buy a similar car to the one you lost. If they were to pay more than its open market value, there would be a few people deliberately crashing their vehicles as soon as they get a little old.

auto valuations & insuranceThis may result in the firm deciding quickly to write of the vehicle rather than fix it. Many companies choose to total a vehicle as soon as the repair costs are about eighty percent of the value. In such cases, the owner my like to buy the salvage and get it repaired. But, the car will be recorded salvaged and it may have some disadvantages in the future. Therefore, you should follow this route if the car is a classic car or you are particularly fond of it.

The value, in dollars, is decided by a variety of elements, the most important being the “blue book”, or sometimes called “Kelly’s Blue Book”, value which lists the ballpark value of all automobile models and makes by year. The carrier will look at the value and they may checked other sources as well.

Also, they take into account things like how many miles the auto has been driven, what options or upgrades has been purchased, and what service it has received so far. What they discover will either decrease or increase what they believe to be the value of the auto. If the company arrives at a dollar value that is less than the price tag to fix it, the car will be written off and the customer paid around open market value at the time.

This fast depretiation of new cars present a unique problem when you get a loan on it. There can be a serious difference between the outstanding loan and how much the insurer would pay for a totaled car. You can solve this problem by buying a GAP insurance. It will pay the difference between how much you would receive from your a claim and how much you owe to the loan provider.

The gap could be a few thousand dollars in the early years. As the time pass outstanding loan can come down sufficiently to close the gap. That time you may consider cancelling this cover. This coverage will probably be required by lenders and leasing companies anyway.

There is no point in overestimating how much your automobile is if it will not be taken into account anyway. This will prevent you from getting the best auto insurance rates and offer no real benefit.  you will only be paid the market price, not how much you get it covered.

In some cases, it may not even be worth keeping the collision and comprehensive covers. If the car is worth only few hundred dollars, what is the point in paying that much money extra for insuring it? There are a few ways of saving money on premiums but you need to have the right approach to it.

Having a good understanding of how car values affect insurance costs help reduce costs and you will be prepared for what is likely to happen in case it is totaled. Many drivers get disappointed with claim payments because what they think doesn’t match with reality.

Procedures For Filing Auto Insurance Claims

February 25th, 2014

Nobody wants to be involved in an accident, but by their very nature, they can happen at the most unexpected time and place. Hopefully, all parties involved have planned for this contingency and have active car insurance policies.

Most policyholders consider their auto insurance policy as some sort of a touch-and-go contract: signed once, and hopefully, never to be seen or needed again. So if and when the time comes they are involved in an accident, they are at a loss how to go about the process.

That is quite forgivable, considering the driver having walked through a potentially life-threatening accident. So here are some reminders to help make the insurance claim process as painless as possible.

  1. Supplying all relevant information

The first step is to inform the insurer or agent that you have been involved in an accident. Remember that most agents may not be able to handle the claims themselves; they may just connect you with the claims department of the company.

At this point, you must provide basic information to the insurer regarding the accident: the identity of all the parties involved in the accident, their contact information, a short description of the incident, what damages resulted from the accident, what injuries were caused, and similar information.

Someone from the claims department of the insurance company will take charge at this point. He or she will guide you through the next steps of the process, and set up inspections when necessary. You will then discuss any type of coverage that applies, depending on your policy.

  1. Determining liability

The next step is usually the assessment of the adjuster, who determines which party is liable for the incident. Depending on the extent of the accident, there may be several adjusters involved, who will determine which or what caused the specific damages and/or injuries.

The adjusters will get information from the involved parties, with the police, and with other witnesses. They will also conduct any other investigations and physical examination of the evidence in order to determine liability.

  1. Inspection and settlement of claims

The vehicles will then be inspected by the adjuster, either at your home, at the auto shop, or at the accident site. The adjuster will assess the evidence and then discuss the price of the damage with you.

Deductibles will be subtracted from the repair cost and you will get a check for any difference. If you are not at fault for the damages and/or injuries, you may be able to file a claim against the insurance company of the other party; the adjuster will discuss if this is an available option.

In most cases, it could take weeks before the claim is settled and the funds released. Since each incident is caused by specific factors, and each of these varies from accident to accident, the claims process may be quite different from the one outlined above.

However, every claim follows this basic pattern. Fully knowing the extent of your policy before accidents happen is a good way to make the auto insurance claim process easier and less painful.

Auto Safety Is Important for Car Insurance Rates

November 16th, 2013

What comes into your mind when you decide to purchase a car? In many cases, one ought to consider the model and brand not knowing that there are other important factors which are supposed to be given a first priority. This is what makes it hard when a person starts shopping. Auto insurance cover for instance is one of the things required during the process of owning a car. In this case, it is advisable to consider choosing a vehicle that will favor your pocket by reducing premiums. Getting this is very easy especially if you know the type of a vehicle you want.

A new car attracts cheaper rates when compared with an older model and this is one way of saving your money. Maybe you are wondering how? One of the reasons is the fact that they have new features which are up to standards such as safety and security. In case you happen to be involved in an accident this cuts down possible injuries and damages.

Other features like a higher class alarm system instead of an anti-theft alarm which doesn’t offer much help to prevent carjackers, GPS and anti lock brakes are of high standards. All these are found in recent models which explain further why they are cheaper to get when considering their insurance cover.

safe and solid automobileNew auto has lower chances of breaking down; this is because they have not been driven by anyone a single mile. Another thing an insurer would look for is your driving record. If you have a clear record it is a sign that your vehicle has lesser chances of being involved in an accident. This is also an assurance to the vehicle user since they can drive for long hours with lower possibilities of making a claim.

When a new vehicle get into an accident, it is easier for an insurance company to have it repaired since the cost is not as high as for the older models. This is because they bear more contact outside than in the inside. Also, if it is hit by a bigger vehicle, some of the most likely damages includes dent which can be repaired easily. In a new model, the inside is made up in a way that only minimum damages can happen in case of any serious accident.

When you have a safer automobile you will be providing better protection for your family as well. This is one of the main reasons for buying safe autos. Reducing premiums do come second to this important factor in decision making. People do happily pay more money for them if they have to.

Another great advantage of owning a new car is the pleasure to drive it. It will not break down easily which will save you money on repairs. You can rely on it on the long distance journeys as well.

Now you have much knowledge on how to do a purchase. Always look for the new models and save money on insurance for another project. And be happy owning a car that is worth driving.

Searching for Low Cost Automobile Insurance?

July 6th, 2013

It is no surprise that your car insurance rates are coming down nicely as long as you have no claim or do not pick up moving violation tickets. Most people know that they are likely to get considerable discounts when they turn 25 as well. Moving out of city center to a nice suburb will save you ton of money and it would not come as a surprise either.

There are some other savings most people would not think available. A little here and there you could accumulate handsome discounts overall. Here are some of those savings.

Go Green And Save

Some companies offer savings to customers who buy their policies online and download their policy documents on to their computers. This save the company sending you printed documents. You can have around five percent savings this way.

Also, some companies would offer lower rates on their website. They encourage people do shopping on their own and save money. They cut the middlemen and telesales and therefore have no problem of sharing some of those savings with you.

lower premiumsMembership Discounts

Being a member of various organizations can save you money on vehicle insurance. For example, GEICO offers discounts to 275 different groups and organization members. Check any of your memberships qualify you for discounts. Also, your employer may be the member of scheme that allows employees low auto insurance rates.

Like Your Future Auto Insurer on Facebook

Companies run various campaigns on social media these days. The other day one company was offering ten percent discounts if you like them on Facebook. This is truly a click of a button discount for you. They change time to time and various new offers come. Do a quick search and you will find something, just like getting a coupon to buy something cheaper.

Renewing Coverage Early

Some companies offer five percent discounts to policyholders who renew their policy certain time before the renewal date. Generally, you would be advised not to rush into quick decision. That would be when it does not pay to be quick. By the way, within an hour of searching you would know if you can save money by moving somewhere else. So, you can still make your mind quickly with full knowledge.

Living in a Retirement Community

One large company offers savings for people who live in a retirement community. They need to be over 55 and living in one of the homes specially designed for retired people.

Paying Premium in Full

Many companies offer around five percent discounts if you pay the premium in full. If you can afford it this is an easy saving. Most credit cards allow nearly two months interest free periods as long as you settle the full balance in your next payment date. This could be a good chance for you to extend the benefits.

There are similar discounts all the time. If you look around as you renewal nears you can get yourself a good deal somewhere. A quick online search may reveal all there is at the moment.

Finding Great Car Insurance Coverage

February 23rd, 2013

There is no single policy that will fit everyone’s requirements. Depending on many factors like your risk attitude, wealth, insured cars and other circumstances the ideal policy for you will be set. It is best that people look at what they need first and try to find the coverage needed. Otherwise, they may be persuaded to purchase something that is too expensive or insufficient for their needs.

One of the first areas to look at is the vehicles insured. Are they expensive or clunkers? When you own an expensive automobile you would want to insure it properly. That is why you would be considering at least the collision and comprehensive coverage. When you own a clunker you may want to go for liabilities only policy. There is no point wasting money insuring an auto which not worth much money anyway.

vehicle insurance quotesAvailable savings in the bank could be another important factor in peoples’ decisions. When you have some money for emergencies you may be more flexible with deductibles and extra coverage. If there is no spare money available to cover some of your losses people should be looking to insure their losses properly. People are highly dependent on vehicles to carry out basic household tasks and to go to work or run business errands. Not having money in the bank to buy a replacement car or not having sufficient insurance to pay compensations can put you in a difficult situation when the vehicle is damaged or lost otherwise.

Availability of other insurance arrangements like a health insurance to pay for traffic related injuries is another area to look at. If so, you may not mind non-existence of Personal Injury Protection. Otherwise, a question as to how you are going to pay for hospital bills if you get injured may need to be answered. Especially when you have a family it becomes extra important to have some sort of provision. Liability insurance coverage would not pay for your own or family members’ injuries when you are at fault.

Most experienced motorists can work out the policy they need and work towards arranging it economically. However, there is always help for anyone who may be finding it a bit confusing. They can talk to insurance companies direct, to a broker or financial advisor. This could be about their possible coverage needs or certain areas of the coverage they have in place.

Whichever way it takes it is advisable to spare a little time and make the effort to arrange the best policy for your circumstances. Then, it will be easier to review it every year and make small adjustments. Otherwise, a little neglecting can be costly when you desperately need the insurance to be there for you.

Basic Auto Insurance Requirements in Each State

November 24th, 2012

According to the laws in the United States of America, each and every driver must have the minimum liability car insurance. It doesn’t require you to have a full coverage but this one is a must have. This is because you may cause a lot of damages on the road including loss of lives. Third party Liabilities coverage is set to cater for any damages and injuries that you may cause.

Causing an accident is not any person’s wish but if it happens you have to compensate for the damages caused. If you drive without this coverage the police have authority to pull you out of the road and give you a traffic ticket which will affect your premium costs for a period of time.

If you get liability insurance and get involved in an accident with another vehicle or hit people, property or objects those people you caused loss and suffering will be demanding payment. At this point your insurer steps in to pay for them up the limit of your policy. These limits are set by each state separately.

It makes sense to link liabilities coverage with the legal permission to drive on any state roads. Otherwise, you will be stopped by police, get a ticket or your automobile may be taken to a compound until such time you come back with a proof of insurance. If you were to be allowed on the roads you must have means to pay for the loss or injuries you may cause. The best way of doing it is by buying insurance.

liability automobile insuranceIf they were left to decide on this essential part of auto insurance most people may skip it and insure their cars first. Now we see it to happen completely opposite. People have to buy the third party coverage and they give up on insuring their own autos if the money is tight.

Mostly, the state sets the amount that may be enough to compensate for the damages. It also ensures that the premium that each and every driver will be given are affordable. Drivers who understand the importance of this provision can actually buy more liability than the minimum though the cost may be a bit higher. The more the liability the more helpful it will be when you are caught at fault and compensation is demanded.

Full coverage is a good idea as well. However, auto owners are free to determine if they like to have any additions on their policies. It will depend on what they prefer and how well they want to protect their vehicle. This covers for damages that may happen to your car be it on the road, parking area, flood damage or any other kind of damage that may occur.

If any person purchases a car with a loan, the lender will demand that the car be covered with comprehensive coverage. Unless you have a clunker it is highly advised to buy full coverage. About two thirds of motorists go for full coverage that includes comprehensive, collision and uninsured driver coverage.

What to Tell Auto Insurance Providers when Got a Ticket

July 13th, 2012

One the things we are constantly scared of as motorists is increased auto insurance premiums. This is one of the reason why we don’t want to call to our carrier often with the changes in our life. Even there is a chance of saving money we don’t want them start digging into our lives concerned that they will find something to charge more money. They are already looking at our credit score and God knows what else.

This can actually be exactly the point why we need to come clean and work around the problems. They are going to find out about our driving history and accidents anyway. Most companies are as concerned about premium leakage as we are concerned about paying too much. If they are not collecting the premium correspond to the risk they will be losing out on rightful revenues. That is why they look at our lives and any available public records about us, listed drivers and cars.

If you get away with paying less for your premium by not telling everything to the carrier you are cheating in a way. For example, when you are in a shop, do you go and change the price tag of the item you want to buy with a cheaper one? This would be exactly the same when you are buying a cheaper insurance when you should pay more.

If we follow supermarket theme, you can actually buy things a lot cheaper. All you have to do is look for products are currently on promotion. There are hundreds of them and companies regularly do them. Alternatively, you can go and check a cheaper supermarket for essential items as well. These way you could save hundreds of dollars on your grocery bill every month. The buyer and seller has to agree to the price. Instead of trying to buy a product cheaper from a supplier who actually wants to sell them more expensively you go and find another supplier who is happy to do a deal with you.

caught speeding?So, What do you do when you just got a negative impact on your auto insurance? For example what do you do when you get a speeding ticket? Do you tell your insurer as soon as it sticks or do you wait for them to find out? Honestly, most people wouldn’t pick up the phone tell their insurers that they just got a traffic ticket. And most companies may be fine with finding it at the next renewal on their own searches.

However, you must remember that it is obligatory to let the companies know about the changes in your life. You cannot pick and choose which information to share and which ones to keep to yourself. This condition is written in every policy document and one of the common parts of insuring anything. The policyholders must share information with insurers. They must provide accurate information and keep it up to date.

What happens if you don’t tell them about the speeding and other tickets or any other material facts that will influence your car insurance rates? Usually companies let it slight by them and don’t make a big fuss. They charge you the right premium the next time by checking all the relevant information. But they could make a big deal out of it if they want to especially if you are hiding more than one ticket.

How to Find the Best Auto Insurance Companies

May 27th, 2012

There is no doubt that vehicles are very important in this life that we are living. Owning one has never been an easy job especially when you look at the process. One of the requirements is the insurance cover for it. This is one of the steps that many people don’t like going around. This is because they do not want to go through the trouble of shopping for the best insurer and a cheaper one.

This factor has led many people to insurers whom they do not know leaving behind others.  Some are very much stable with them because they have not had an encounter with accidents. Others are paying more than they should because of this same reason of not wanting to come into contact with an insurance agent. Some motorists may be limited by time to do a proper comparison. Others have no information on the company insuring their vehicles except what is on the papers.

auto insurersOne of the most effective methods that people are using nowadays is online. This is very favorable especially if you do not have much time and also convenient in case you want to do some quote rate comparison. In this way it would be hard to find a broker who is directing you to a certain company thereby cutting down some expenses. It is easy to find what favors you most and purchase it online.

Getting one of these auto insurance covers is very easy when you use comparison sites. This is where you go and compare different types of policies and make a quick decision on which you want. This tool is very proficient at any time.

An experienced driver does it better when doing a quotation comparison on these sites. This is because they know very well how the rules go. This makes it the most efficient platform for purchasing coverage without doubts.

In case your knowledge in choosing a quote is not enough and you are feeling it. Getting an experienced broker will do you good. This may also happen if you find something that you do not understand thereby hindering you from getting that coverage. But if you are knowledgeable in this field and you are ready to go you are welcomed to purchase what you choose.

When looking for a broker, it is necessary to find someone who is independent than one who is tied somewhere. Remember a tied agent works for a specific provider and may not give you many options as a broker would. Not forgetting you are looking for a person who will help you and not try and hard-sell in any way.

Searching for insurers may be tough for you and it doesn’t make sense since you will end up wasting a lot of time moving from one place to another and chatting with different agents and brokers who might not give you what you want. This leaves us with one option which is visiting insurance comparison websites. Here you will find whichever companies you want to compare in just a short time.

How to Get Cheap Vehicle Insurance Quotes

March 6th, 2012

When doing shopping for insurance policies, you are likely to get an insurer whom you will like but be hindered by the amount of premium demanded. However, there are various ways in which you can apply to bring the premium down and have your auto insured there. The most important thing is to know the basic principal of insurance contracts.

This will help you in choosing the best policy and the right amount of coverage needed. You will also be able to point out the important coverage that you need most and leave the one that will not be of great effect. The whole process will be the beginning of saving some dollars every month which will serve you the rest of your life.

We will look at the two basics of auto insurance policy that will contribute in lowering your premium. One of these ways is by managing your deductibles. You have come across the name deductibles in the insurance vocabularies. This is the amount of money that an insurer will not be liable on if an accident or incident happens. By decreasing this amount, you as a policyholder are increasing the premium. The higher your deductibles will go the lower your premium will be.

Nevertheless there are people who do not have to increase their deductibles in order to lower their premium. These are people who live in places where the rate of car theft is not high and those who live in less congested areas since the chances of car crash are low. The principal for this is also simple. If you want to save in your insurance be a good driver and stay away from possible risks and risky areas.

The second way of lowering your premium is by coverage limits. There is basic liability insurance in every state and it differs depending on the laws of the land. The best thing to do is get to know different types of coverage that are set. There is minimum coverage which you may go for if you want low premium and the amount of money that you will be required to pay for it. Remember you are also supposed to know all the requirements involved in car insurance policy in your state. In case you relocate and go to another state you will need to get another policy and familiarize yourself with the state coverage limits.

cheap automobile insuranceIn most cases, this type of coverage is applied by young people who are driving old cars; and can as well be used by drivers who have a 10 years experience in driving. One thing that you have to put in your mind is that this kind of a liability does not cater for any damages to your car that may occur in case you are involved in an accident or incident. Driving an expensive car with this kind of coverage will be more risky. That is why it is better to consider a coverage that can allow your insurer to compensate you.

When you are busy finding different quotes online, be careful to gather more information on how to get a suitable coverage. The agents may offer their help on this but remember that most of them are marketing their companies thereby lowering your deductibles so as to profit them. This will force you to paying more premiums.

How to Enjoy Benefits of Being Insured

February 23rd, 2012

It may be easier to concentrate on the premiums charged than the actual policy. The premium is a money sum and of course people can quickly come up with an opinion about its burden on budgets. However, motorists buy policies just in case they suffer financial loss. Then, the auto insurer would step in compensate them. And the coverage and its limits will be set within the policy.

The best way of shopping for vehicle insurance it to start with knowing what is required. If you are going to cook something you will need all the ingredients for it to be taste and enough for everyone you invite. The same can be applied to policies. You want it to cover most of your damages and any claims against you.

The costs can sometimes be only couple of hundred dollars between a great policy and below average one. The more coverage bought the lower car insurance rates go down. This principle should be kept in mind when you are buying automobile insurance. Most of the initial setting up costs are absorbed within the basic package that when you add onto it you only pay for the coverage.

insure carsAlso, most of the policies sold are quite typical products. Companies and brokers know what average motorists would be looking for. Therefore, combined policies with liabilities, collision, comprehensive and uninsured driver coverage are popular. When you are looking for a decent vehicle insurance cover and you are a good driver you have plenty choices. Companies know this fact and make these types of policies pretty attractive in terms of price and content.

You should start with understanding the policy documents. The schedule will allow policyholders to have a quick glance at what they are insured for. Any additional requirements you had and specific restrictions placed will be mentioned in the endorsements section. Terms and conditions are quite typical in the market place. Reading and understanding one policy will give an idea as to who auto insurance works. Its provisions and limitations will be slightly different among different packages. Once you grasp the concept you will be able to judge another package very easily.

It would be highly advisable for a new driver to seek independent advice. You may have a lot of questions at the beginning and you can ask them to agents and brokers. Remember that they get many silly questions every day and you are only trying to learn. Most drivers go through this phase of learning.  Along the way, you will pick up useful tips and come up with an affordable arrangement.

Experienced drivers can drive in straight online with many car insurance comparison sites. Even then, you need to follow one or two basic rules. First of all, you should decide on a minimum policy to stick with. It would be great if you could achieve a lot more than that with your budget. But you should not be tempted to go any lower than the minimum needed. It is essential that you get at least three quotes before considering the options.