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Why compare auto insurance quotes with different deductibles?

Thursday, March 18th, 2010 at  
Comments (1)
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Tiger Kenedy : Why should one compare auto insurance quotes with differnet dedutibles?

Compare auto insurance quotes with different deductibles is a good idea.

Response : It is a very good idea to compare auto insurance quotes using different deductibles and this can be done really easily. Let me give you examples to make it absolutely clear as to what is the effect of different deductibles on the auto insurance quotes. First let us understand what a deductible is.

What is an Auto Insurance Deductible?
A deductible is the amount of money you are responsible for paying in the event of a physical damage claim on your vehicle. The insurance company pays for the cost greater than the deductible to repair your car. If the total cost to repair the damage to your car is less than the deductible, you are responsible for paying for all the repair costs.

Secondly, deductibles are only paid for physical damage claims for your vehicle, not liability claims. So if you are found liable (at fault) for damage to another person’s car or injury to another person in an accident, you DO NOT have to pay a deductible.

Likewise let me also clarify that comparing different deductibles is a good idea only if you are going to take the own damage coverage of the auto. Incase you are not opting for own damage or comprhensive coverage which is another name given to this, than there is no use comparing deductibles and this option would not be given online.

There are several deductible amounts you can choose when selecting an insurance policy. The amount generally ranges between $250 and $1,000. Generally, a higher deductible will lower your insurance rate. You should choose the highest deductible you can afford. Keep in mind that the deductible is paid each time a separate claim is filed. The deductible amount is the amonut that you will have to bear each time you report an auto insurance claim. If you report three damages or place three claims in a year, you will have to pay three deductibles.

Example 1: Frank has a $1000 deductible for the physical damage coverage for his car. Frank crashes his car with a neighbours fence causing $3,000 in damage to his car. Frank would be responsible for paying the first $1000 to repair his car. Frank’s insurance company would pay the additional $2,000. It’s important to note that the cost to repair the neighbor’s fence would be covered by Frank’s liability coverage.

Example 2: Allison has a $250 deductible for the physical damage coverage for her car. Allison accidentally backs into her neighbor’s mailbox at a slow rate of speed, causing only $100 damage to fer car and no damage to the neighbor’s mailbox. Since Allison’s deductible is $250, she is responsible for all the repair costs associated with the accident. Her insurance company would only pay for damage in excess of $250.

Remember, the number of claims you file is held against you in the form of additional cost for insurance in the future. Also, insurers may sometimes choose to non-renew your policy after the initial policy term is up based on your previous filing claims. Circumstances can vary greatly, but it is a good idea to pay for all small damages to your vehicle with your own money.

It would be smart to opt for a higher deductible if you are a good driver and so you can save on your auto insurance premium and would get a low auto insurance rate or premium.

Happy Motoring.
thanks.
Kamlesh

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What not to do when you compare auto insurance quotes?

Tuesday, February 16th, 2010 at  
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Kim Jang : What should I not do when I indulge into auto insurance comparison to save my time and of course money?

Compare auto insurance not the general auto insurance companies.

Response : What not to do when you compare auto insurance quotes is important since no-one has all the time. We want to save time and money. Hence it is important not to waste your time. Get low auto insurance rates in seconds, once you know what not to do.

The myth for anyone when they start auto insurance comparison is that they first want to start with the comparison of the general auto insurance company. You are climbing the wrong tree and missing your objective. Your objective is to get low car insurance rates, compare auto insurance quotes or review car insurance coverage. Why start with the general auto insurance company first? Are you going to buy it? All you need from them is customer services, if or when you meet with an accident or their ability to pay for the claim. Let me assure you, that the Insurance Act which has been laid down by each of the state is good strong enough and also the auditing carried by them is strict so that they would not let anyone operate if they do not have the financial ability to do so.

In case you have already bought your insurance from an insurance company which is not stable, you need not worry since as per the prevailing regulations, any company that takes over would assume the assets and liability. You would be paid for your auto insurance claim, if you have one.

Yes, the general auto insurance company, matters to you when you compare auto insurance quotes or review car insurance coverage – but first you need to decide on the insurance company which is offering you the low auto insurance rate or the best car insurance coverage.

Once you are certain that this is the insurance company you want to go for -you need to ring up the insurance company so that you get an idea of their customer service. This is the most important part for you since you would be dealing with the staff directly incase of any accident. Of course, you can ask any of your friends for their experience on the customer services. Get your low auto insurance rate at compareautoinsurancequote411.com

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Afraid to compare auto insurance quotes online?

Thursday, January 21st, 2010 at  
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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

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Auto insurance: 8 Tips on auto insurance policy renewal or cancellation

Friday, November 27th, 2009 at  
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Jeff Walker: Can you give me some tips with regards to auto insurance policy?

Response: Sure Jeff, it is always a pleasure to talk about insurance at any time of the day. Here are some tips for auto insurance policy renewal or cancellation which most of us over-look, but are very important for any of us :

Car Insurance Policy Renewal :

  • The insurance company should send you the renewal notice approximately 30 days before it expires. This is basically to allow you to make the relevant changes in the policy, review auto insurance coverage, compare auto insurance quotes and shop aorund.
  • If you do not make payment of the premium before the renewal day, the policy coverage will lapse and your policy will be treated as a new coverage. You will loose the No claim discount or the accident forgivness condition might lapse.
  • If there is a lapse in your coverage due to cancellation of your policy because of non-payment of premiums, insurance companies may then charge you higher premiums for a future policy. Your automobile insurance rates are based on the information you have given to your broker, agent, or insurance company. An insurance company has the right to cancel your policy if the information you have given is not correct or complete.
  • Your car insurance rates are based on the information you have given to your broker, agent, or insurance company. An insurance company has the right to cancel your policy if the information you have given is not correct or complete. This is considered a misrepresntation and your auto insurance claim can also be denied.
  • The colour of your car would not affect the premium since the rating is based on the vehicle model, year of make, purchase price, theft frequency, repair cost , safety features and stablity in accident and claims data for such type and make of vehicles. Some insurers do consider higher rating for 2 door vehicles than 4 door vehicles based on the safety feature – four door vehicles have better chances of the occupants being able to leave the vehicle and get out in case of accident. However, this is not the rule of the thumb.
  • When you don’t want to renew your policy, you should notify your broker, agent, or insurance company immediately. Don’t just stop making payments: that will result in cancellation of your policy because of non-payment and possibly put you in a higher risk category.

    • Auto insurance Policy cancellation:

  • Your insurer can cancel your policy for non-payment of premiums, so long as it follows certain procedures. As required by the Insurance Act, the insurer must give you 15 days’ notice of termination by registered mail or five days written notice of termination if it’s personally delivered. If you pay the outstanding premium before the end of the notice period, the insurer may, but is not required to, keep the policy in force. If the insurer does not receive your payment before the end of the notice period, your policy will be cancelled for non-payment.
  • When you want to change your insurance company mid-way in your policy or before expiry of the present policy and cancel it, you may have to pay a penalty. You may instead want to have the new policy start once your existing policy expires.

    • Please review your auto insurance coverage, read your policy conditions for cancellation, before you take any step. Compare auto insurance quote and enjoy your low auto insurance premium.

    Thanks.



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