 Tips
on Buying Auto Insurance
The following
information is provided as a courtesy.
While much of the information is generic and common
sense, not all of it may apply to every state. So when
in doubt about a topic (like a discount), seek the
advice of an insurance professional from within your
home state or from the state in which you plan to
relocate. For this reason we can not guarantee the
accuracy of all information.
Auto
Insurance Coverage
Depending on your
states' laws, auto policies may be "required" to include
some of the following coverage's at minimum pre set
limits or above. Other coverage's may be added or
removed at your own discretion or at the request of a
lender.
Bodily Injury
Liability: pays for bodily injury to another person due
to the negligent operation of your vehicle. It may also
pay if the damages was caused by a resident member of
your family, or a person who had your permission to use
your vehicle.
Property Damage
Liability: pays for the damage you caused, due to the
negligent operation of a vehicle. It may also pay if the
damages were caused by a resident member of your family,
or by a person who had your permission to use your
vehicle.
Uninsured Motorist
Bodily Injury Coverage: provides coverage for "Your"
physical injury that was inflicted by an uninsured
driver who was at fault or for injury you sustain as a
result of a hit-and-run driver who was at fault.
Underinsured
Motorist Bodily Injury Coverage: pays above the limits
of another insurance policy for physical injuries you
may sustain if your limits of Bodily Injury are higher
than the limits of the at fault motorist's policy.
Medical Payments:
covers medical and possibly funeral costs for you or
those riding in your vehicle who may be injured or
killed in an accident while in your vehicle. May also
pay for you or resident family members if struck by a
vehicle while walking or riding in another vehicle. This
coverage usually pays even if you were responsible for
the accident.
Collision Coverage:
pays the cost of repairing or replacing owner's vehicle
when damaged due to an accident. Cost of this coverage
is usually alterable by choice of a deductible. The
higher the deductible (the amount you agree to pay) the
lower the cost is for this coverage.
Comprehensive
Coverage: pays the cost of repairing or replacing
owner's vehicle when damaged due to Fire, Theft, Flood,
Wind, Vandalism, Riots, Storm, or Earthquake, etc..
Costs of this coverage is usually alterable by choice of
a deductible. The higher the deductible (the amount you
agree to pay) the lower the cost is for this coverage.
Optional
Coverage's
Towing Coverage:
pays for the costs towing or minor repair to your
disabled vehicle. (Limits vary from company to company).
Car Rental: pays for
the cost of a rental vehicle while yours is being
repaired due to a Collision accident or Comprehensive
loss. (Limits, usage and length of time available vary
from company to company).
Custom Equipment:
This coverage if available would cover custom
non-factory items such as CB radios, Cellular Phones or
Custom Sound Systems. This coverage may also be
available to cover customized features found of
Conversion Vans.
Rating factors
Many factors govern
the final cost of an auto insurance policy. Your age,
driving records, area where you live and the miles you
commute daily are a few that are based on the human
factor. Other factors are a result of the vehicle
itself. Horse power to weight, it's theft rate for your
area, parts costs and the availability and its initial
purchase price.
Keep a Clean Driving
Record: Tickets and accidents will normally be reflected
in the amount of premium you will eventually have to
pay.
The Vehicle: Sporty
High Performance vehicles will normally require more
money to insure. Give your agent a call before signing
on the dotted line to make sure the rates you will be
charged won't spoil your driving pleasure, the day after
you take delivery.
Age or Condition of
Vehicle: Mileage and age of a vehicle are directly
related to the amount payable to you for a total loss.
Take those factors into consideration when applying for
coverage. If the amount you stand to receive for your
vehicle when destroyed is low, you may want to consider
dropping or not taking Collision or Comprehensive
coverage's. This will lower rates considerably, It's
your choice.
Deductibles: Rule of
the thumb is to take the highest deductibles you can
afford. The higher the deductible (the amount you choose
to pay for repairs) the lower the premium for this
section of your policy. If you have a loan on your
vehicle, check with your lender before removing these
coverage's. Your installment loan contract may require
that these coverage's be maintained until your financial
obligation has been repaid.
Discuss Discounts:
Discounts vary widely from company to company, so ask.
Some companies allow discounts for safe drivers,
non-smokers, folks over certain age, multiple vehicle,
good students, drivers training, etc. (Some even give a
discount if you let them insure your home along with
your vehicle, so make sure you are receiving all the
ones you qualify for.
A Quotation received
from an insurance agent or agency is merely an estimate
of what the rate will be based on the accuracy of the
information provided to the agent or agency. The final
rate while usually the one quoted, may be altered by
information returned to the company by your state's
department of motor vehicles or from information
supplied by your prior company regarding losses. Don't
forget human error either, the rate quoted may have
resulted from faulty math, if so the company will
correct the math and "their" final figure is the amount
required.
To cover your bases,
an agent may be able to submit a "non-bound
application". The agent sends the application to the
company and after investigation they will let the agent
know at what rate you will be accepted. A non-bound
application, provides "NO-IMMEDIATE COVERAGE" and you
submit no money. This is a way you can be sure of the
rate, before you cancel your current policy.
Factors
To Consider When Looking at an
Insurance Company
Complaints: The
Insurance departments of many states calculate the
consumer complaint ratios of companies doing business
within their state. You may want to give them a call and
get those figures.
Financial Stability:
The financial stability of a company helps to ensure
that they can pay claims. Companies are rated on this
ability by a few independents. You can usually obtain
this information from a public library. The following
are the publications to browse;
- A.M. Best
Company Ratings
- Standard &
Poor's Insurance Rating Services
- Weiss Ratings,
Inc.
- Moody's
Investor Services
Service: Service is
an important consideration with any consumer purchase.
Ask around, word of mouth is a good indicator of a
company's service history. Another is their reputation
with local auto body repair shops. Both can be biased so
get more than one opinion. Checking the company's
Complaint Ratio as indicated above is also a very good
indication of service. Low complaints usually means that
the company's clients are being provided with good
service.
Eddy Muenster
Drivers: If your driving record is truly monstrous, you
may find it difficult to obtain coverage.
Notwithstanding, many states have "insurance pools" for
high risk drivers. The rates may be high but your
acceptability may be assured. Contact your states
insurance department to see if such an arrangement is
available where you live.
(Editorial) -- A road warrior attitude can not only hurt
you in your pocket book, it can hurt others as well.
Clean up your driving habits for the benefit of yourself
and others.. |