Howie : What are the additional coverage that you need to keep in mind when you review car insurance coverage or compare auto insurance quotes online?

Why we do not review car insurance coverage –other additional coverage?

It is common for all of us to focus on the basic car insurance coverage when we review car insurance or compare auto insurance quote online since we either do not know what other coverage are available and secondly most online blogs or websites also do not care to inform us about them and lastly the busy agents do not have the time to explain to us each of them.

Additional coverage are given as extra benefits at times by the insurance companies, but you need not ignore them when you review car insurance coverage or compare auto insurance quotes.

Other coverage to be considered when you review car insurance or compare auto insurance quotes online?

Let me inform you about some of the other online coverage that you need to focus on when you review car insurance or compare auto insurance quotes online and which would make a difference to you when you find that you are in a tight spot and in case of an accident or misshape, which is the very purpose of paying the auto insurance premiums.

Medical payments : Medical payments pays the deductibles and co-payments not covered by your health insurer, or the insurer of any of your passengers. It also covers some funeral and rehabilitation costs. It’s not useful unless you face very high health-insurance deductibles. If your state requires it, buy the minimum.

Review car insurance coverage and keep this coverage in mind when you compare auto insurance rates online since this is coverage.

Towing and labor : Some of the car insurance companies offer you towing and labor charges if your car is not in a condition to be driven away from the accident.
Rental insurance costs: This might be the most important coverage and proves to be a great benefit. Most insurance companies were providing this coverage at no cost, however as per the recent survey only a handful are now providing this coverage for free and it is only about 30% of companies that provide this coverage. Here you are provided with a rented car for free till your car is repaired in case of an accident. You can save $ equivalent to one month of you car insurance premium if you review car inusrnace savings or compare auto inusurance quotes for a month.

Last but least is the accident forgiveness coverage which would be useful especially if you are a new driver or have a new driver in the family or your teen just added to the policy.

Please review car insurance coverage and compare auto insurance rates after due consideration of opting for the right auto insurance coverage.

Keith Baxter: Hi again. If I compare auto insurance quote online and find that the rates given by an insurance company are very cheap, can I cancel my present auto insurance policy and get refund in full? 

Response: Keith, when you compare auto insurance quote online and find that the rate of auto insurance is very cheap as per the offer, before you cancel your present auto insurance policy please do the following:

1) Go to the General Conditions section of the policy and read the specific condition on the “Cancellation of your policy” . Please see if there is any penalty specified for cancellation of the policy and any time-line given there. The reason for asking you to do this is because at times insurance companies do keep a penalty for cancellation of the policy. Now, if the cost of cancellation of the policy is going to be higher than the savings you are presently getting on the new auto insurance quote, if would be advisable to continue with your present insurer.

2) Ring up your insurance agent or the present insurance company with whom you are insured and ask them the condition and the penalty for cancellation. When you speak to them, note down the customer service live agent name for future reference.

Once you are sure that the cancellation of the policy can be done without any loss of money, first insurer yourself with the other insurance company, connfirm your insurance policy and than cancel your policy. Here is an important tip, in case the cancellation of the policy is done and for some reason the other insurance company does not accept your risk, you will have to pay the penalty of driving a car without insurance. Secondly, your other insurer will consider that you are uninsured and your insurance is not in continuity and might charge you more for this.

Stephen (North Dakota): I would like to compare auto insurance quote online but am worried if it would affect my credit score? This is because I have heard that insurance companies check your credit worthiness before giving insurance. Would I not be insured if I claim bankruptcy?

Response: Stephen, I would advice you to compare auto insurance quote online since if you compare your auto insurance quote online than your credit score for auto insurance rating would certainly not be affected. This is because the insurance companies would just process the data online and give you a quote without verifying your credit score. Than once you apply for insurance they would check your credit score. Secondly this is a soft hit to your credit and hence will not affect your credit score.

The connection between a driver’s safety record and credit rating is not readily apparent to most. Many consumers feel that insurance companies are intrusive when they request such information on an automobile insurance application. Many legislators, insurance commissioners, and consumer rights advocates agree, and have questioned the practice in recent years. Still, insurance companies explain that credit information is needed to make a complete risk analysis when evaluating an insurance application.

If you have filled bankruptcy than your auto insurance premium would be very high. At times some personal lines insurer might decline your risk.  Recently in the revisios of auto insurance in Ontario it is proposed that the credit rating should not affect the insurance rate and this parameter should not be a ground for denying car insurance coverage.

 It seems that there is a connection between credit risk and safety risk. Some insurance company statistics show that drivers with derogatory credit, historically file more accident claims than drivers without derogatory credit. Insurers reason that a consumer who is careful with one aspect of their life (e.g., financial affairs) is also likely to be careful with other aspects of their life (e.g., driving habits). Credit information is also needed to determine whether an applicant is likely to pay premiums in a timely fashion.

As per the insurance companies they like to review the credit scrore since this is a right measure for the nature of responsiblity of a person. If he has a good score it would mean that he is likely to be responsible on the road also. This would decrease the probability of loss to a great extent.

Eben Pagan (New York): My auto insurance policy is going to be renewed by the end of this month and I live in New York. Can you please tell me about No fault car insurance in New York?

Response: Eben, I know you will find this odd, but the best way to get the best auto insurance rates is to compare auto insurance quote online and am sure you get the best deals. Online auto insurance is competitive and they offer you the latest discounts and best rates since they know that there are already a couple of  insurers offering their rates on the same page.

Let me shate another news with you which you might have read regarding No fault car insurance in New York.

New York’s auto insurers saw their typical no-fault payment for the medical care of accident victims rise by 56 percent to $8,748 per claim in the second quarter of 2009. This represents a dramatic increase from late 2004, when the average no-fault payment stood at $5,615 per claim, according to an Insurance Information Institute (I.I.I.) analysis.

The insurance industry, the New York State Insurance Department’s (NYSID) Frauds Bureau, the National Insurance Crime Bureau and law enforcement agencies continue to investigate suspicious claims vigorously, according to Dr. Robert Hartwig, the I.I.I. president and an economist. Yet loopholes in the no-fault system make it particularly vulnerable to fraud and abuse by a “no-fault industry” of corrupt medical professionals, attorneys, and street-level criminals who work on their behalf.

“In less than five years, New York’s auto insurers have seen an extraordinary 56 percent increase in the average cost of no-fault claims, to a great extent the result of abuse and, sometimes, outright fraud in the system,”

“The costs of fraud and abuse of the state’s no-fault system ultimately are borne by New York’s honest policyholders. New York’s no-fault claim costs are now the second highest in the country and are 111 percent higher than the U.S. average of $4,152.”

The reason for letting you know all these details is to explain why the auto insurance rates are likely to rise. This is because the insurance companies base their auto insurance rates on their expenses and no fault claims expenses are a part of the expenses which all the insurance companies have to share and pay for.

The insurance companies offer a higher discount online since they save their operating cost. When you compare car insurance quote online make sure that you are also comparing your coverages and the discounts offered. I am sure you will find a good quote here.

Thanks.

Kamlesh

Andy Jekins: My car insurance bill was due about 3 weeks ago, but I didn’t pay for it yet. Will anything happen? Will they tow my car or will they just make me pay an extra fee?

Some insurance give you a 30 day grace period and then send you a cancellation notice. The notice is usually 10 days before the cancellation date. Very few carriers actually cancel the policy one day after the due date.

In many states, there are strict laws concerning lapsed insurance. In Georgia, if policy is cancelled the Dept. of Motor Vehicles is notfied after 10 days and will be fined. If it is your first offense, just pay your insurer to reinstate  your policy. If it is a second offense, the fine is bigger. If you donot pay the second fine your license will be suspended and your registration revoked.

If your vehicle is financed, your lein holder can force insurance on you.

Now, the worst thing that can happen is if you have an accident without insurance , hurt or kill someone or damage a property the liablity can be very high. You will loose all your assets and the cost of the legal matters could be very high. You might be put behind the bars for not being able to pay or for the offence of being a reckless driver without any insurance. The consequences can be very bad.

Presently in USA 1 driver out of every six drivers is driving uninsured and the insurance companies are planning to have an extra fine for being without insurance and hence your insurance premium could also be very high in the future. Imagine hurting someone you love in an accident and not getting the money for their medical expenses.

Honestly, this is a very irriational step or even a thought. Please instead compare auto insurance quote online at compare auto insurance quote 411 and you will be amazed at the low auto insurance premiums available. These are free online car insurance quotes.