Optional Auto Insurance Coverages
Collision coverage pays for physical damage to your auto as the result of your car colliding with an object, such as a tree or another vehicle. This insurance coverage is based on the value of your car and can be costly.
Car insurance policies only require the company to cover your financial losses, not to replace your car. In the case of an accident involving an older vehicle, the cost of repairing it can quickly exceed the value of the auto and your insurance carrier will pay you what the car was worth rather than fix it. In severe cases, the value of the vehicle may be less than premiums paid for the insurance coverage. Therefore, if your car is worth less than $2,000, there is little reason for you to purchase collision coverage, because you are likely to pay more money in premiums than you would ever receive as a result of your claim. This coverage may not pay the full replacement cost of the car or may not satisfy the balance of your auto loan.
Comprehensive coverage pays for damage to your vehicle from almost all other causes besides a car accident, including fire, severe weather, vandalism, flood and theft. Comprehensive insurance coverage also will cover broken glass, such as windshield damage.
Uninsured motorist coverage pays if you incur losses from a driver who does not have auto insurance or a hit-and-run driver. This coverage, when in effect, takes the place of the insurance that the other driver should have had but did not. The coverage comes at an automatic $250 deductible for property damage, regardless of the deductible you may have on your other insurance coverage.
Uninsured motorist coverage will have policy limits. It does not protect the other driver. Your insurance company may sue the other driver for any money the company pays to you because of the other driver’s negligence. You must have made a police report about the car accident in order to make a claim under an uninsured motorist policy.
Under-insured motorist coverage protects you if you are involved in a car accident that is not your fault and the other driver does not have enough insurance coverage to cover your loss. This coverage does not pay for damage to your car.
Towing and labor coverage pays the cost of towing your vehicle to the repair shop subject to the limit of your policy. Premiums for this insurance coverage are very inexpensive. However, if you are a member of an auto club, you probably already have this service.
Rental reimbursement coverage usually pays the cost to rent a vehicle after an accident, subject to the policy's terms. The premium will vary from insurer to insurer.
Sunday, December 28, 2008
Optional Auto Insurance Coverages
Thursday, December 18, 2008
Tips: Car Rental Insurance
Tips: Car Rental Insurance
Ask your insurance agent or car insurance company if there are any situations in which your existing insurance policy would not cover a rental vehicle.
If your current insurance policy doesn’t offer coverage for a rental car, see if an insurance rider can be added for a small fee.
Ask your credit card company if it provides rental car coverage and, if so, what the limits are. Many credit cards include some level of collision and theft protection. In most cases, these benefits are secondary to your personal car insurance or the car rental company’s insurance, meaning the credit card company will only pay claims after other insurance coverage has been exhausted.
If you lack personal car insurance and your credit card does not provide benefits, then it might be wise to purchase the liability insurance and collision damage waiver at the car rental counter.
Keep in mind that if it is a longer-term rental, there might be limitations on the coverage your existing car insurance policy provides. Check with your auto insurance company or agent for details.
When traveling on business, a personal car policy will generally not apply, so check with your employer for guidance.
Saturday, December 6, 2008
Types of Auto Insurance Coverage
Types of Auto Insurance Coverage
There are many different types of auto insurance coverages available to meet your car insurance needs. Some are required and some are optional. Here are brief descriptions of the available coverages:
Liability
This covers bodily injury and damage to property that you cause to others while using your vehicle.
Personal injury protection
This covers a limited amount of medical and hospital costs, income continuation, funeral expenses, and loss of services. Coverage limits are defined in the policy.
Medical payments
This covers medical and funeral expenses (not all companies offer this coverage).
Uninsured/underinsured motorist bodily injury
This covers injuries an uninsured or underinsured driver causes to an insured person.
Uninsured/underinsured motorist property damage
This covers property damage an uninsured or underinsured driver causes to your insured car.
Collision coverage
This covers damage to your car that is caused by a collision.
Comprehensive coverage (other than collision)
This covers damage to your car - except by collision. For example, this covers your vehicle if a tree falls on it or someone vandalizes it.
Emergency road service
This covers towing when your car breaks down.
Car rental expense
If you have a claim that is covered under your car insurance policy, this coverage pays to rent a car. Be sure to check your policy for any limitations.
Death, dismemberment and loss of sight
This pays for death and certain injuries to people named in your policy due to a car accident.
GAP coverage
In the event your vehicle is a total loss, this pays the difference between the current market value of your car and the amount you still owe the lender.
Custom equipment coverage
This covers direct and accidental loss to custom furnishings or equipment.
Many companies also offer other endorsements (additional coverage). Ask your auto insurance agent or broker about:
- Trailer/camper body coverage
- Snowmobile coverage
- Limited Mexico coverage
- Joint ownership coverage
- Auto loan/lease coverage
Thursday, November 27, 2008
UIM - Underinsured Motorist Bodily Injury Coverage
UIM - Underinsured Motorist Bodily Injury Coverage
Underinsured motorist bodily injury coverage is available in some states, where it is often mandatory. It is available in Washington as well and as an endorsed Umbrella coverage.
This type of car insurance coverage pays for your medical expenses, lost wages, and other damages when you or your passengers are injured in a car accident caused by a driver who has insufficient car insurance coverage.
This kind of auto insurance coverage typically pays the difference between the coverage limit you select and the other driver's bodily injury coverage limit. The amount covered by underinsured motorist bodily injury is capped at the limit you choose when you buy your car insurance policy.
Thursday, November 13, 2008
Tips On Lowering Your Car Insurance Premiums
Tips On Lowering Your Car Insurance Premiums
1. Shop around and compare prices.
2. Maintain a good driving record.
3. Take the highest deductible you can afford on collision and comprehensive coverage. A higher deductible will mean lower premiums. But remember that you will be responsible for the deductible amount if you have an accident.
4. Take defensive driving.
5. Before buying a vehicle, call an agent for a quote on the cost of insuring it. Sports cars, luxury cars and more expensive cars cost more to insure. A quote is only an estimate of the premium.
6. Review your policy periodically and update coverage accordingly. As a car gets older and loses value, you may not need as much insurance for it. With some cars, it may make sense to only carry minimum coverage.
7. Ask whether there are discounts offered for:
a) Multiple cars on a policy
b) Good student drivers
c) Mature drivers
d) Airbags, anti-theft devices and other equipment
e) Accident-free record
f) Other insurance with same company
Monday, November 3, 2008
What can affect your car insurance rates in Delaware
What can affect your car insurance rates in Delaware
Amount of coverage: If you choose to carry coverage above the mandatory minimum, your premiums will be higher.
Deductible amount: Choosing a higher deductible will reduce the premiums of your auto insurance. However, your out-of-pocket expense will be higher if you have an accident.
Discounts: Auto insurers may offer premium discounts for numerous reasons, including for people who have taken an approved defensive driving course. Ask your agent what discounts are available to you.
Driving record: Drivers with previous violations or accidents are considered to be a higher risk.
Gender and age: Men have more accidents on the road than women; certain age groups tend to have more claims.
Marital status: Claims history shows that married persons tend to have fewer claims.
Type of vehicle: Luxury and sports cars average a higher number of claims; also the more expensive a vehicle, the more expensive it is to insure.
Usage of vehicle: The more you drive, the higher the risk and so the higher the premium.
Where you live: Urban areas have more claims than rural areas and some areas have more frequent accidents than others.
Tuesday, October 21, 2008
Connecticut: Auto Insurance Discounts for People Over the Age of 60
Connecticut: Auto Insurance Discounts for People Over the Age of 60
The legislature has made it easier this year for individuals over the age of 60 to be eligible for auto insurance discounts - by completing a safe driver course. The legislature has also eliminated the requirement of an in-person final exam for people using an Internet course. The minimum discount is 5 percent and shall apply to the premium charges for the automobile for at least 24 months. Some insurance companies provide a discount of more than 5 percent.
Contact your insurance company for more information. Those interested in an approved course should contact AARP, AAA or the Western Connecticut Driving Institute for details. If you meet the requirements for this premium discount, by law you cannot be denied the minimum discount regardless of your driving history.
Tuesday, September 30, 2008
Auto Insurance: Total Loss Replacement
Auto Insurance: Total Loss Replacement
You filed a car insurance claim and just found out your vehicle is totaled. Now what? Most auto insurance companies will cut you a check, then cut you loose. Not Progressive. We recognize shopping for a new car may not have been on your agenda. That's why we offer Total Loss Concierge, a complimentary service that anyone whose vehicle is totaled in a car insurance claim with Progressive can use.
With Total Loss Concierge, we shop for a vehicle replacement so you don't have to. You simply tell us what you're looking for, and we'll contact a network of car dealers and lenders to find a vehicle that meets your needs with finance options that are right for you.
Then you decide if you want to test drive, buy or pass on the cars. In most cases, we've found vehicles that meet customers' needs within 6 days.
Who Can Use This Service: Anyone whose vehicle is totaled in a car insurance claim with Progressive can use our Total Loss Concierge service. You don't have to have a policy with us to take advantage of this option.
Financing Options: Once you pick your replacement car, our network of lenders can help you choose how to buy or finance it. If your new car costs less than the settlement amount we give you, you keep the difference. If your new car costs more, you can work with our lender network to arrange financing or find financing on your own.
Friday, September 26, 2008
Why Should You Buy Car Insurance?
Why Should You Buy Car Insurance?
If you cause a car accident, you may be responsible for the losses of the other people involved. A claim may be made or a lawsuit filed against you for those losses. You may have to pay not only for the property damage you cause, but also for the medical expenses, lost wages, and pain and suffering of any injured person. The amount of money you may have to pay could be substantial.
If you don’t have an auto insurance, anything of value that you own, including your home, savings, future wages, and other assets, may be taken to pay for those losses. Auto liability insurance can help protect you so that this doesn’t happen. Liability insurance also pays for an attorney to defend you against any claim or lawsuit that may be payable under the policy.
You can also buy auto insurance to cover damages to your car. This optional coverage will help pay for your losses whether or not you were at fault.
Insurance is based on the theory that only a small portion of all drivers will be involved in accidents. The premiums paid by all drivers during the year are used to pay for the losses of those drivers who have accidents. When you buy auto insurance, you receive financial protection in case you become involved in an accident. You also make sure that a person injured through your fault will recover for losses you cause.
