Dori Friend: Will the big oil spill affect auto insurance rates or how to compare auto insurance quotes? This question is asked since ultimately the insurance companies will have to bear some loss in this. Would we have to review car insurance coverage to get low auto insurance rates.

Auto Insurance : Compare auto insurance quotes, review car insurance to get low auto insurance rates.

Response : Dori, a good question but I know some readers will think this is not appropriate, since what connection would be there between the oil spill and the auto insurance rates or how to compare auto insurance quotes.

Being in the insurance field for a long time, I agree with part of your apprehension, because insurance is related to all walks of life. The past few years have been tough for the insurance companies and this definetly affects the insurance market.

The Mexico oil spill has been one of the biggest so far and the liability claim for this is already estimated at 400+ million dollars and there is already a talk in the insurance circles that we are heading towards a hard insurance market. However with the present economic scenerio this might not be the case.

Yes, once it becomes a hard market there will be changes in the auto insurance ratings and the number of players would also be reduced. This would mean that the consumers will have to compare auto insurance quotes online and offline to get the best quotes and reveiw car insruance coverage if they want to save and get low auto insurance rates.

strong>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.

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Mark Joyner : If I’m driving a rental car and have an accident where I hurt someone, am I covered?

Response : A very good question on auto insurance. The holiday season is coming and people will be travelling and so this will help all of them and you also. The personal auto insurance policy will provide coverage once a liaility coverage is there. All you need to do is to compare auto insurance coverage and limits and incase you so desire, increase your auto insurance liability limits if you have just taken minimum limits and the state which you are visiting has very high compulsory limits.

Let us assume that you and your wife went for holiday to Los Angles from New York and you and your wife both have auto insurance policy which has coverage for liability, medical payments, uninsured motorists, collision, and other-than-collision. As per the agreement arrangement of the auto insurance policy ” the named insured and his or her family members have coverage for the “ownership, maintenance, or use of “any auto or trailer.”
“Any” is the operative word here. Of course, there are some exclusions, but those come up in rare cases. We will be dealing with the typical, vacation car-rental situation—where the PAP named insured rents a car for a week or so of vacation fun. At Los Angles you rent a car at the hotel from the auto -rental company there. On the way back to the hotel, you miss the traffic red light and hit another car. You and your wife are unhurt, but the teenaged driver of the other car must be taken to the hospital. If that injured driver sues John over his injuries, John’s PAP will provide him with liability coverage and a defense. Your liability coverage will certainly provide you the coverage and your insurance company will pay for the medical expense, defense of any other liability to the teenager. The important thing to remember is that your PAP with liability coverage, you have full liability coverage when driving any auto.

The rental insurance company usually want to make money and will ask you if you want to pay for the insurance or the liability will be yours. Do not worry about this. Check your auto insurance policy, compare auto insurance coverage and your policy limits. Read the condition on rental car insurance under your car insurance policy. Infact, you can make a telephone call to the auto insurance company and seek their advice on what your auto insurance coverage are.

It would be a pleasure answering any of your questions.

Thanks.
Kamlesh

Elton John: How would I get a low auto insurance quote? How can I review car insurance quote and ratings?

Response: A good question since you need to know how to and what to look for when you are compare auto insurance quotes and review car insurance quote. You need to know the following things about Auto insurance :

1) Know what each of your auto insurance coverages are and than choice the ones which you would require. Let me give you a tip that the most expensive coverage is the collision coverage since this is one which the vehicle is most prone too. Optional coverages such as gap coverage, roadside assistance, rental reimbursement, uninsured/underinsured motorist coverage, and comprehensive coverage can provide a lot of protection for a little price increase. Comprehensive coverage is usually the most expensive of these coverages, but is still usually about half the price of collision coverage and a third the price of liability coverage.
2)If policy is allowed to lapse you will have to pay more: Insurance companies prefer to have a history on a policy so that they can know how to rate the policy. Once the policy has lapsed than the insurance company will charge you a very high premium since they have no history on the insurance.
3) Opt for a higher deductible : The higher the deductible, the more the discount you will get on the auto insurance rate and you save on auto insurance premium.
4)Review the auto insurance discounts that are available and see if you can opt for any of them.
5) Shop around on the internet for auto insurance quotes. This will let you know about the discounts offered by the other insurance companies, know about the insurance companies and what is more important is that you can see all the quotes at one time. This will help in comparing auto insurance quotes and coverages on the same page and at the same time. You can arrive at a decision on buying auto insurance quote.
Thanks.

Matt Domian : I am having a problem understanding what are the coverages for auto insurance policy? If I do not know the coverages how can I compare auto insurance quotes or review auto insurance coverage ?

Response : Matt, this is a very good question. Let me explain the basic coverages and then I will give you an idea as to what to compare. A  basic auto insurance policy is made up of five different kinds of coverage:

1. Bodily Injury Liability
2. Property Damage Liability
3. Medical Payments Coverage or Personal Injury Protection
4. Uninsured & Under insured Motorist Coverage
5. Physical Damage Coverage (Collision and Comprehensive)

Depending on the state where you live, you will find difference as to what is the legally required minimum coverage that you need.

All states require that you have some form of liability insurance when operating a motor vehicle. The basic insurance policy covers Bodily Injury Liability and Property Damage Liability. These coverages provide protection if you are found legally responsible for the injury or death of another person resulting from a car accident. Minimum auto insurance policy coverage amounts vary from state to state.

Medical Payments (or “Med Pay”) is an optional coverage that covers medical expenses for you and your passengers if injured in an accident (regardless of fault). Some states require that you carry Personal Injury Protection (a broader form of Med Pay that may include income replacement and disability benefits). Like Bodily Injury Liability, the amount of Med Pay you can purchase also varies from state to state.

Physical Damage Coverage, which is also optional, includes Collision and Comprehensive coverage. Basically, these two coverages protect your own vehicle from fire, theft (including contents), vandalism, or an upset with another vehicle or object – how much or how little you get depends on the value of what you’ve got.

Uninsured & Underinsured Motorist Coverage protects you and your passengers from people driving around with little or no insurance (or hit-and-run motorists). This coverage is required in many states.

Now let me tell you what to companre- first you will compare the coverages offered by the different companies for the same limits and compare the auto insurance rates and final premium charged by each one of them. Once, you have done this compare the other benefits given by each one of them – any additional coverages or services like road service, any electronic monitoring device for free. Last but not least compare the service reputation of the inusrance company. Many people worry about the stability and economic standing of the insurance company, however, this should not be a concern for the customer since the insurance regulatory bodies take care of this. Review auto insurance coverage and choice the right option for yourself.