Amish Shah : How does modification of the vehicle affect the auto insurance quote? Do I need to compare auto insurance quotes if I make any modification to my vehicle?

Compare auto insurance quotes, for modified vehicles.
Response : A very good question, yes Amish I would certainly advice you to compare auto insurance quotes if you modify your vehicle. I will explain this why it is important to compare auto insurance quotes later. First let us talk about how modifictions would affect auto insurance.

The vehicle is the main thing you are insuring. Just as no two modified vehicle are alike, no two visits to the insurance man to protect those cars will turn out the same way. Insurance companies are in the business of assessing the risk and rating it as per their assesment. When modifications are made to a vehicle, the nature of the risk changes. It would either become a higher risk or the modifications are done to make the vehicle more safe. It would be in your best interest if you have all the details of the allterations made to your vehicle listed. This would help in informing the underwriter on a case-by-case basis for each. Facts are your friend in insuring a modified vehicle, followed closely by attitude.

First, do not, under any circumstances lie about a modification. Full disclosure is an absolute must. If you do not disclose a modification the company is within its rights to terminate your coverage in the event of an incident. This would be considered a misrepresentation by the insurance company and the auto insurance policy will be void. The company can claim that any change, even something as simple as changing out the front seats, alters the driver’s perception of the road thus creating an unsafe situation. The only way to counter that is to disclose the change with full documentation of exactly how the modifications affect safety and driving performance.

At the same time, while you should not lie, you should also couch your disclosure in terms the company wants to hear. A change that increases rpms and horsepower to enhance speed, while sexy to your ears translates to fast, reckless driving in the insurance world with a greatly increased chance of an accident and claim. Talk in terms of engine efficiency. Downplay the speed demon aspect of the change or emphasize that it is for on-track use only. Make it clear that the vehicle is always securely stored and not driven daily. This alteration is changing the nature of the risk to higher and you will have to compare auto insurance quotes and review car insurance.

The risk can become lower also if you add and highlight the presence of theft deterrent systems like GPS tracking and monitoring. Be prepared to negotiate every change individually and realize that some changes may counterbalance others. An improved braking system, for instance, may take some of the premium sting out of an engine modification that enhances speed. But also, be realistic. Some things the insurance company will not like no matter what you do. It’s hard to make a case for the safe use of a roll cage and a nitrous oxide injection system. If, however, that equipment can be removed for off track use, you may be able to negotiate a better rate.
After each modification, apprise the insurance agency of the change and review the terms of the policy. Be sure you understand the following insurance terms:
Actual Cash Value: A policy that will pay benefits at a depreciated “book” value. Modifications will not be covered.
Stated Value: A policy that accepts a value for the vehicle at the time the coverage is written but that does not bind the company to using that value in determining a claim payment.
Agreed Value: The only policy that gives the owner a complete return on modifications. Coverage considers the cost of totally rebuilding the car with identical specifications.
The most important thing to remember in a modification scenario is to never let the policy languish. In essence “modify” the coverage every time you modify the car. Disclose everything. Document everything. Be prepared, if necessary, to educate the insurance company. Review car insurance coverage and compare auto insurance quotes at all times to get low auto insurance rates. Be prepared to shop online and give yourself enough time for this.

Kim Roach : If I compare auto insurance quotes online and find low auto insurance rate, is the auto insurance claim information shared if I switch the insurance company? Will my information remain confidential if I compare auto insurance quotes online?.

Compare auto insurance quotes : reveal the truth.
When you compare auto insurance quotes online and find low auto insurance rate, do not hesitate to switch to another insurance company provided you keep in mind and follow the following steps.
1) All necessary information which can affect the auto insurance cost or rating is always asked up front in the application. You will have to give full details of any driving ticket or the accident that has taken place. It is best not to hid this information, since God-forbid, but should another accident or claim arise, the insurance company will go into all details and if they find out that you have concealed information, your claim would be denied. This is termed as “misrepresentation” as per the insurance termilogy and your insurance would also be cancelled. You will than, find it very difficult to get another auto insurance policy, since this is viewed very harshly even by the specialty insurers who take high auto insurance risk.
2) You should also keep in mind that the insurance company does have assess to your credit and also the police authorities and the DMV to find out information about vehicles or claims.
3) The insurance company can view your records online in the DMV and know of any offences from the records.
4) Sometimes the insurance companies use the same claims adjusters.

You need not be afraid to compare auto insurance quotes online, since technology is changing fast and your information is safe. The insurance company does have the privacy commitments and cannot sell your information. Secondly, most online quotes do not require you to put in all your personal information also.
Yes, online comparing auto insurance quotes is safe.
Thanks.
Kamlesh

Jim Edwards : I find that the auto insurance company demand information about people who live with you? Can they really do this? If I do not declare this when I compare auto insurance quotes online is it fine?

Response : The insurance companies do not want to get any information from you which is not pertaining to the risk. Since the insurance companies are insuring your car, they need to know who lives with you only to know who would be using the car. The car cannot run by itself and it is the driver who is steering the vehicle and so the main risk is the driver of the vehicle. It is important to know how many drivers are there in the family and their driving history so that the auto insurance rating can be done properly. Since this directly affects the auto insurance rating and the insurance companies decision of accepting or declining the risk, any information concealed would be a misrepresentation. This would mean that the insurance company can cancel your policy and deny the claim.

Also technically the National Highway Traffic Safety Administration (NHTSA) requires the insurance companies to do so as part of the agreement of being a legitimate licensed insurance carrier.

Now when you compare auto insurance quotes online if you do not put in the information your insurance quote will be different from what they would give you, once you give the correct information. You need to put in the information correctly than it would be considered as a misreprenstation.

Thanks.
Kamlesh

Andy Edmonds: I live in New York and was reading your blog on “No fault insurance“, when I decided to compare auto insurance quotes online. Are there any expected changes for this.

Response: As per the latest information received from on 24th November 2009, New York as per the statement of Superintendent James J. Wrynn said that they have made all efforts to stop the abuse of no fault insurance. The cost of each no-fault claim has gone up by more than half in the past five years, and all New Yorkers with auto insurance are paying for this. The department said its fraud investigations bureau received more than 11,000 complaints alleging no-fault fraud this year to date, a 7 percent increase over the total for all of 2008. The number of no-fault arrests in 2008 was 52 percent greater than in 2007.

As per Paul Magaril, regional manager of Property Casualty Insurers Association of America (PCI) the New York auto insurance rates are the second highest auto insurance premiums in USA. This is almost 50 percent more than the rest of the country. As per PCI the cost of the no fault system of New York the cost of claims is estimated $1.2 million per day. This is the result of frauds like over-utilization of health system. The medical cost is very high.

The Insurers think it is time to stop the frauds and make some changes which will come into effect from January 1st 2010. The changes would take time to be implemented and passed. However, here are the changes which are porposed :

The main idea behind this is to protect consumers the auto insurance frauds have to be stopped so that the low auto insurance rates are available for the customers.

I am sure we all would appreciate the changes, in the long run once we get low auto insurance quotes and start saving on car insurance.

Taylor Swift: What is underinsured motorist coverage? How would taking all the auto insurance coverage of underinsured motorist help me.

Response: Taylor, we discussed this already but let me tell you this again that you need to compare auto insurance quote and coverages before you buy auto insurance. Each of the coverage has its own  risk which is covered, in short you are paid a claim only if you have the coverage for the same. The underinsured motorist protection pays you for damages that exceed the amount of coverage carried by a driver who is considered underinsured. Remember that UIM will only pay up to the limits of your policy after subtracting the amount paid by the other driver’s insurance. This means that the amount listed as your UIM limit is the total amount paid by both insurance companies, not the additional amount your insurance company will pay after the other driver’s insurance pays. Both UM and UIM apply to you and any passengers in your car, and to you and others listed on your insurance policy (including family members) when in other cars.

Uninsured motorist property damage (UMPD) coverage may seem strange, especially considering many people already have collision coverage on their car insurance. However, for careful drivers who don’t have collision coverage, UMPD can be a good way to protect their car from uninsured drivers without raising their premium a lot. In addition, a lower deductible for UMPD is frequently cheaper than collision coverage with the same low deductible. UMPD does not apply in hit-and-run accidents, because UMPD coverage is cheaper than collision coverage—making it very tempting for some drivers to make a “hit-and-run” claim under their UM coverage instead of their collision coverage, or to purchase UM coverage and not have collision coverage at all.

Uninsured motorist bodily injury (UMBI) protection can help you in another way. If you’re a pedestrian and you carry this coverage and you get hit by a car while you’re trying to cross the street, the coverage could pay your medical expenses and lost wages. That could be important, because even if you have medical payments coverage and health insurance, those still won’t pay for lost wages. You could get coverage for your lost wages by purchasing disability insurance, which many people have through their employer, but it would not cover your passengers or family members, and could disappear if you switch jobs. In addition to protecting you as a pedestrian, UM/UIM can also protect you and your family members traveling in other cars.

One thing to remember is that you should first inform the insurance company of the accident before you take action.