Auto Insurance Law » Insurance Company

Gap Car Insurance Protects Your Auto Financing Investment

admin — Mon, 28 Jun 2010 16:41:58 +0000

What is Car Gap Insurance For?

If you have purchased a new or used car with a loan, you probably owe more than the book value of the car for the first several months you pay on your loan. If you did not put down a large down payment or if you rolled over a loan from your old car, you may owe quite a bit more than your car’s value. You are probably willing to accept this fact because you are really just making car payments, have a car you like, and know that you will get the car paid off in time. But the fact is, most cars lose 20% of their value the minute you drive them off of the car lot.

If you buy a $20,000 car, the actual value of that car may drop to $16,000 very quickly. You have just taken the 20% hit. However, accidents happen. If you have an accident, or your car is stolen, you may be asked to settle for the book value. That means, you still owe $4,000 more on a car you cannot use!

Car Gap Insurance closes the gap between a car’s value and your loan. You normal car insurance will still pay off the car’s value. The auto gap insurance policy will make up the difference. Now some comprehensive auto policies may pay the financed value, but most do not. Be sure to look at your policy or ask your agent to make sure.

Where do you Buy Car Gap Insurance?

When you buy a car, your dealer will offer you a car gap insurance policy. He or she may even offer to roll the price into your loan. However they will charge you a premium price. Some people choose to purchase auto gap insurance this way because it is simple, or because they don’t realize they even have an option!

However, you do have a choice. You do not need to pay $700 or $800 for car gap insurance from a car dealership. You can buy the same policy online, directly from the insurance company. Online car gap insurance policies ill cost less than half as much as car gap insurance from the dealer. You could pay $399 instead of $700 to $800!

Your other choice is to find a comprehensive car insurance policy that will cover your car’s financed value. You can call around, but it is easier to use an online quoting system. Look for an insurance quoting system that is BBB approved and has a stated privacy policy.

By: Marilyn Katz

The Stages in Filing an Auto Accident Insurance Claim

admin — Thu, 17 Jun 2010 18:47:09 +0000

Many auto accident victims are experiencing difficulties in dealing with their insurance companies. This is very true especially when the accidents involve complicated matters that are still needed to be settled. These scenarios occur when the liability in doubtful, the insurance coverage is insufficient or if the claimants disagree with the insurance adjuster’s settlement offer. Because of these instances, the process of negotiation with the insurance companies takes more time.

The following are the standard procedures that have to be accomplished in pursuing a much complicated auto accident insurance claim:

Formal Investigation of the Claim

Normally, if an auto accident claim cannot be settled thru a simple means, the adjuster will have to perform an investigation to evaluate the scope of the insurance company’s liability. This may entail:

- verifying the claimant’s policy,

- interviewing accident witnesses,

- having a dialogue with the other parties involved in the accident,

- looking at the report furnished by the police authorities,

- taking some photos of the accident scene as well as the damages incurred, and

- inspecting the claimant’s medical records and expenses

Settlement Proposal

After concluding his investigation, the adjuster is now set to send his settlement offer to the claimant. This will tell the amount of compensation that the insurance company is offering and willing to pay based on the claimant’s demand. Usually, insurance companies begin with low offers – knowing that doing the other way will cost them huge expenses and lesser income. However, some adjusters devise tactics to speed up the resolution of the case. This is by allowing negotiation if ever the claimant does not agree with the offer.

Letter of Demand

If the claimant is confident enough with his own calculation regarding the compensation that he should receive, then he has the right to submit a demand letter to his insurance company. This may include his own analogy of fault; damages and the amount that he demands to resolve his case. This process may be done before or after the adjuster sent his settlement proposal.

Claims Negotiations

Once the adjuster has sent the opening offer to the claimant, it is now the time to negotiate, particularly if the said offer is not that reasonable. In this process, both parties propose and defend their offers with evidences and facts until they have finally agreed with the amount.

Denial of Claim

Not all auto accident claims reach in a negotiation procedure. The insurance companies for various reasons subsequently deny a great number of them. Hence, the claimants result in filing their cases in civil court wherein a judge is authorized by the law to sustain or reverse the decisions of the insurance companies.

Nevertheless, since almost all the insurance companies implement strategies to lessen their liabilities to the victims, it is therefore a wise option to consult an auto accident attorney from the very start of filing a claim. This will ensure the claimants that they will be properly compensated for the injuries, losses and expenses that the accident caused them.

Our trustworthy Auto Accident Attorney is your partner and ally in obtaining justice for your automobile or other motor vehicle accident cases. Please visit our website at http://www.personalinjurydefenders.com and fill up the Case Evaluation Form for a Free Case Analysis.

By: Rainier Policarpio

Car Insurance – Tips to Help You Make a Decision

admin — Wed, 16 Jun 2010 14:58:03 +0000

Often people do not have an auto insurance because they do not know what auto insurance policy to get, as there are many policies that you can choose. Or either, so it happens, that they do not have a clue about where to buy the insurance policy. If you own a car you should know that there are numerous options available for you, but you have to first figure out what you exactly need. Your goal is to find a coverage that will facilitate your specific demands.

Begin by looking at different auto insurance policies and compare the coverage rates. Keep in mind the money that you will be spending to get the protection, and make sure that your budget does not go overboard.

There will be many factors that will be taken into account when insurance companies are deciding on the premium rates. You will get a discounted price for have a clean driving record. If you mange to keep a stable driving history then, unlike many other people, you will not have to face increases in your premiums at the time of your policy renewal. There are many other aspects which can also be taken into account for which you get low rates, like your loyalty to your insurance company and having multiple policies with the same company.

You might also want to look at the discounts that are available to you if you are a senior citizen, or a student who has consistently shown a remarkable academic performance.

When deciding on the limits, try to have a conversation with your insurance agent regarding it. It is always a smart move to have a high deductible as it reduces your premiums significantly, and you should also enhance coverage of your liability insurance. By increasing your liability insurance you are also increasing the financial protection which you will receive if there is an unfortunate accident.

It might be interesting to note that there about 186 million motor cars in America and a significant percentage of this number are the cars which are driving somewhere uninsured. To guard yourself and your loved ones be sure to check online to see what may be available to you, as you never know what options may exist out there and how affordable coverage may actually be.

By: Marcel A Johnson

Rental Car Accident – The Process and Your Rights

admin — Tue, 15 Jun 2010 12:00:43 +0000

Getting into a rental car accident could be frustrating.
Usually you are in a city that you do not know, a state with laws that you are
not familiar with, and you are driving someone else’s car. This is a formula
that can give you a big headache. So here is an overview of how rental car
accident claims get handled and settled.

When you rent a vehicle, the rental company will ask you
for your proof of insurance. Many of them will ask for your
Declarations Page. They want to see what coverages you have. They will be
looking for liability, collision, and comprehensive, in your policy.
Liability is because it is required by law, but collision and comprehensive will
protect the car you will be driving. 99% of the companies out there will extent
coverage to the rental car and the rental company knows that.

Rental companies will want to know how much your
deductible is. Your deductible is the portion of the loss that you are “self
insuring”. For example, if the damage to the car is $5,000 and your deductible
is $500, then the insurance company will only pay $4,500 ($5000 – $500
deductible); you will have to pay the $500 out of pocket. Many rental companies
will require that your deductible be less than $500 or you will have to buy
extra insurance at the time of renting the vehicle.

When you rent the car, then rental agent will ask you if
you want extra insurance. Three things can happen: you decline all together, you
buy extra insurance, or you buy a collision damage waiver. Depending on which
option you select, the rental car accident will be handled differently by your
insurance company.

First, if you decline all together, then you better have
an active policy that will provide first party coverage for the rental car. Your
insurance company will be responsible for paying the rental company for the
rental car, but those payments will be subject to all the terms of your policy.
What this means is that your deductible will apply and you will have to pay that
to the rental company up front. It does not matter that you were not at fault
for the accident; the rental car company is entitled to get the car fixed as
soon as possible. Your insurance company will be responsible for going after the
responsible party

The restrictions of your policy can cause several
problems. Mainly it will be on the loss of use,

click here to learn more about the LOU in a rental car accident. If you do
not carry rental coverage on your policy, you will owe the rental expenses to
the rental company as if they had to rent a car. If the vehicle will take five
days to repair, then you will owe the five days rental. Also, if you do carry
loss of use coverage (rental car coverage) in your policy, but the limit is
below what the rental car would rent for, then you would owe the difference. For
example, your rental coverage is $40 per day, but the rental car cost is $50 per
day, you will owe the $10 difference between the two.

Second, you buy “extra” insurance. This is where things
can get a little complicated. The insurance adjuster must look at actual policy
that you bought (not given to you when you sign). The terms of that policy will
determine how the accident will be handled. Some rental insurance coverages
provide complete coverage any rental car accident as long as you pay the
premium. They would cover the car that you hit (if you are at fault), and the
rental car damage. You could still have a deductible. Your insurance company
usually will step in as a secondary form of coverage in case the rental car
insurance policy limits are low. However, you need to read both insurance
polices together to see which one would pay first and which one would pay as the
secondary.

Last, you buy collision damage waiver. Many people will
tell you that this is coverage for your deductible. This is not true. When you
rent a car, you agree that you will return the vehicle as it was given to you.
You also agree that in case of a rental car accident, you will pay for the car.
A collision damage waiver will waive that provision of your
contract. This means that you are no longer responsible for the rental car.
However, you still need to file a claim for your medical bills (in case of
injury) and to defend you or pay for the car you hit (if you are at fault).

By: Hector Quiroga, J.D.

Car Insurance Pricing Plans

admin — Mon, 14 Jun 2010 20:17:33 +0000

The law requires liability insurance for all drivers and vehicles. This means that if you are involved in a serious accident, and it turns out that it was your fault, your insurance company will pay out any claims that are made against you. Extra coverage on your own vehicle, called comprehensive insurance, is optional.

Insurance companies based on a number of risk factors will calculate the price you pay for this insurance. Basically how it works is the more they feel you are at risk of crashing, and the more they think the resulting crash will cost them, the higher the premium you’ll pay.

Assessment

Common factors that will be used to assess the premium are the value of the car you’re driving, the safety of that vehicle, the coverage you want, will there be deductibles or limits etc.? How much you’ll drive the car, how your driving record stands, how long you’ve held your license, your age, and if you are young, also your sex.

The premium is then calculated. Usually there is a flat per car, per year rate that everyone pays, regardless of other factors. The other factors will then alter this rate, generally upwards. So if your car is especially fast or dangerous your rate will be increased by a set amount. If it is very old, your rate goes up. If you’ve had one or more accidents in the past, your rate will go up. If you’re young and male, your rate will go up. The more of these factors you satisfy, the more your rate will be going up.

Discounts

As a sales enhancement, many car insurers offer a “low estimated future mileage” discount to customers who predict that the car’s mileage will be below some stated limit during the next premium period. There is no verification involved and no additional charge if the car is subsequently driven more than the stated amount. This arbitrary discount tends to foster customer belief in the mistaken idea that “miles” are just one of many classification factors used to raise or lower prices from the territorial base rate. In fact, odometer miles (which insurers do not use) are not a factor but a metric – the only valid basis for measuring each car’s consumption of insurance protection in on-the-road use.

The best way to save on car insurance is to shop around, keep a good clean driving record, drive safely, and choose reliable cars that are not known for their power and speed.

By: Joseph Kenny

How to Compare Low Cost Car Insurance In Michigan

admin — Sun, 13 Jun 2010 10:36:38 +0000

Most of us do some comparison shopping when we are looking for a big ticket item like a refrigerator or a television. However, many people in Michigan never take the time to try and find the best deal on car insurance. The best way to compare low cost car insurance in Michigan is to call up a few agents and ask for quotes. You do need to be aware of exactly what type of car insurance you need before you pick up the phone.

Purchasing the minimum coverage required by state law in Michigan may be sufficient if you drive an older vehicle on an occasional basis. If you are driving back and forth to work or school daily, you need to consider a policy that offers more types of coverage. The additional types of coverage include comprehensive and collision coverage, uninsured motorist coverage, and limited property damage liability coverage. Once you know exactly what types of coverage you feel are necessary you can then start gathering quotes.

Start with your homeowner’s insurance company. Explain that you already have a policy with them and you’d like to add on car insurance coverage. In most cases you’ll be offered a discounted rate because you are purchasing more than one type of insurance. Adding on a health insurance or life insurance policy can result in lower premiums for all of them. This is a great approach for someone who already has policies spread out over several companies.

Call agents that represent other companies as well though. Even if you suspect that you have already been offered a rock bottom price you may be surprised. Insurance in Michigan is a competitive business. There is a law in the state which prohibits one insurance company from contacting another just to compare rates. This means the consumer can expect to have several companies all clamoring for their business by offering a good rate. The resulting lower price for premiums is great news for all drivers.

By: Deborah Mills

Finding the Top Auto Insurers

admin — Sat, 12 Jun 2010 07:20:39 +0000

Everyone has someone to answer to, as do insurance companies. Finding the top auto insurers is very easy to do, especially with the help of the Internet and all the online insurance websites. People who have had trouble or are dissatisfied with the services of their insurers or their broker have a place to submit their complaints which will be seen and judged by other potential clients.

These complaints are registered in special departments of each state, as insurance happens to be governed by state law. Therefore, all complaints registered against any insurance body will be listed there. This will simplify your quest to find the top auto insurers, because the top rated insurance companies will have the fewest complaints listed against them. A few complaints against the particular company may be just simply some disgruntled clients who were unhappy with the turnout of their own situation.

Others who have numerous complaints listed, especially about the same issue, should probably be avoided. The truth is, you would like to avoid working with an insurance company who is more than happy to take your premiums, but delays your repairs or payments in the event of a claim. Experiencing an accident or being the victim of vandalism can be frightening and frustrating enough, without having to deal with a less than satisfactory service from the part of your insurer.

With that said, you can find the top auto insurers by entering that key phrase in your search bar of your browser. An entire list will be populated from the search engine of your choice. However, the first in the list is not necessarily the best. Finding the best is completely up to you.

That means that you will have to delve further into your research and find all the complaints listed against this insurer. But don’t stop there. You must find all the positive points and compare the quotations regarding the premiums against other top rated insurers.

If you go further by asking friends, family and other acquaintances. If they have ever used or heard of any positive or negative traits that that particular insurer may have. You’d be surprised as to how many people have both good and bad stories regarding insurance companies, premiums, services rendered, and the like. Just as quickly as people would like to share with their sad story, others would like to share their knowledge about how well they were treated in their own situation.

By: Felix Fassbinder

Seeking Low Cost Insurance For Your Classic Car

admin — Tue, 08 Jun 2010 19:27:37 +0000

A low cost insurance policy for your classic car is easy to find with the right tools and information. Classic car insurance is for policyholders that rarely drive their cars. Insurance companies can afford to offer cheaper rates due to their reduced risk. When researching insurance for your car, you need to look for companies that understand the lifestyle and usage of classic auto insurance needs. For those who want a cheaper auto insurance policy, the good news is the law only requires you to have liability coverage. Depending on the value of your car, if your focus is full coverage then you will need a complete comprehensive policy.

Details to provide to an insurance company. You should provide a few pictures of the car, inside and out. You’ll want to have a list of modifications that would determine if the car is stock or not. You can get some discount points and a low cost insurance quote based on how many kilometers and the mileage you put on your car. Some insurance companies limit you between 2,500 and 3,000 miles per year, so you will need to think about your expectations regarding how often you plan to take your classic car on the road. The less you drive, the more savings you will have. If the car is used daily, then you will have to settle for standard insurance. You will also want to mention the value of your classic car. For the more expensive classic cars, the coverage will obviously be much higher. If your classic car does not hold a high value, then getting standard car insurance is your best bet for a low cost insurance quote.

Age can be a factor. Most insurance companies tend to offer lower insurance rates to women and older folks. If you are under the age of twenty-five and are seeking a low cost insurance policy for your classic car, you may see a slightly higher rate. This is not the case with all companies, so you will really need to shop around and see what companies use age as a determining factor to get the best low cost insurance rate.

The internet is your best tool for finding savings information on standard auto insurance as well as classic car insurance. When searching for companies, look for the companies that do a classic car comparison based on coverage and price. Once you have identified the insurance company that provides a low cost insurance quote, you will be on your way to purchasing your affordable auto insurance policy.

By: Kimberly Kochera

Rental Car Insurance

admin — Mon, 07 Jun 2010 21:26:17 +0000

Are you going to be renting a car in the near future? Do you understand exactly what you will be charged for? Many times there are additional costs added to your daily rate. In many cases you are forced to buy extra insurance in addition to your daily rate. The purpose of this article is to explain what types of car insurances there are and explain which ones you should and should not buy.

One of the most common types of car rental insurance is for collision. This is to cover you in case you have an accident. The rates vary. Sometimes, the insurance rate is low but you have to pay the first 500-1000 dollars in damages to the car regardless of who is at fault. One thing you should definitely look into is if your credit card offers insurance for rental cars. Many of them do and it could save you loads of money.

Another type of car rental insurance is comprehensive. Generally, this is optional but you are responsible for the car in the event it is stolen. Again, look into what insurance your credit card provides. You may find they offer full coverage.

If you’re planning to have others drive the car in addition to yourself, they must be covered. You must list all drivers and have insurance for them. It is important that you do this. In the event of an accident, if the other driver is not listed, and he or she is driving, the insurance company will refuse to pay for the damages. This will leave you liable for all of the costs.

When renting a car, be careful of the types of insurances you buy and what they do. Only get what you need but don’t ignore them. They will cover you if something should go wrong.

By: Rebecka Whitlock

SR22 Auto Insurance

admin — Sun, 06 Jun 2010 11:11:33 +0000

SR22 auto insurance is in most cases only required for those convicted of a DUI or drunk driving offense. It is considered a type of ‘high risk’ auto insurance policy.

The most common question we receive concerning SR22 auto insurance is how does one go about getting the best auto insurance rate possible when you’ve just been convicted of a DUI or a drunk driving related offense? How are you supposed to comparison shop for auto insurance when you’ve just been given the worst classified risk label possible, the label of “high risk” due to your recent DUI offense.

How to Get The Cheapest SR22 Auto Insurance

Even though you’ve just been given the worst label in auto insurance; ‘high risk’ you still have options when it comes to your SR22 auto insurance. What you need to remember is that there are many companies that specialize in these types of auto insurance policies and more specifically DUI auto insurance policies. They realize that there is a big market need for those who happen to get convicted of a drunk driving offense and they design their business around it.

So when shopping for SR22 auto insurance the way to get the cheapest policy is to get rate quotes from as many different sources as possible. The SR22 quotes are free and there is no obligation to use any insurance company by getting a quote from them. So the way to get the best SR22 auto insurance deal is to seek out quotes from as many providers and/or brokers as possible and then you can simply select the best deal!

Even if you get canceled or rejected from any of the big auto insurance carriers just know that there are still plenty of options for your SR22 auto insurance. The first thing you need to do is to visit a qualified broker who can provide you with rate quotes from insurance companies that would be willing to insure you. Then you can compare policies and see which one suits your needs.

By: Tim H