Most consumers are confused by the types of auto insurance coverages available and often wind up going with the lowest cost option, which may ultimately lead to disaster down the line. During my 12 year career in auto insurance (defense litigation) and insurance fraud investigation, I handled countless claims for three very illustrious national carriers — some of which had expensive consequences. Here are several tips to keep in mind when shopping for auto insurance:
Don't Buy Minimum Liability Limits
Yes, the economy is reeling and money is tight so many people skimp on coverage. This may be the biggest mistake ever, especially if you own investment property. States that have low minimum liability limits (like California with 15/30/5) is usually not enough. The numbers refer to $15,000 bodily injury (BI) liability coverage for one party or $30,000 for all parties and the $5,000 is for property damage (PD). If you hit a Mercedes or another expensive vehicle, your property damage can be wiped out in a second. As for injuries, a family of four who are injured can easily go through $30,000 in BI coverage. With some hospitals charging astronomical rates for emergency services, spending a couple days with a broken leg in a hospital in Las Vegas can reach $100,000 or more. If you are wondering why personal medical insurance is not kicking in, most health carriers deny claims if there is another responsible party — i.e., car accident, workers' compensation, etc.
Don't Assume Your Insurance Covers Rental Cars
This is especially important if you buy insurance from budget carriers. Many contracts state they do not cover rental cars. People mistakenly take their credit card or personal insurance always covers them, but they often find the carrier denies the claim. Typically, insurance follows the car, not the driver. If your car is not in the shop or your policy has a rental car exclusion, you are on the hook for all damages to the rental vehicle and any parties if you caused the accident. Have any doubts on this? I spent seven years representing a worldwide rental car company at dinky claims court and working with attorneys on larger cases to collect against renters whose carriers denied their claims.
And another tip: unless you have a magical credit card that 99% of us don't, your credit card covers damage to the rental vehicle, NOT damages and injuries to other parties.
Consider Umbrella Coverage
Fill more than one home or have a business? Leer into umbrella coverage. This policy is not always that expensive and usually kicks in after $250,000 in BI on a personal auto policy and usually covers up to $500,000 or $1M. This policy is vital if you beget investment property or have your have business because you cannot homestead more than one home. Accidents happen and I've seen little business owners lose everything trying to come up with money to pay for damages in a serious accident when they only had $100,000 in BI.
Don't Skimp on UM/UIM, Med Pay (MP) and Rental Coverage
Unless you are independently wealthy, these are coverages many people skip over to save a few bucks. UM/UIM is uninsured and underinsured coverage. If you are injured and hit by another party, this is where UM/UIM comes into play. When checking into this coverage, be distinct to talk to your agent about your specific state laws and how offset/stacking works so you can figure out how much coverage you need — each state is different so it is best to discuss UM/UIM with your insurance professional.
MP covers medical bills for occupants of your vehicle, regardless of fault. I always recall my parents telling me to never prefer your friends will not sue if they're with you during an accident. I never believed that until I went to work in insurance and trust me — they sue. In states where it's legal to sue your spouse, I've even seen that more times than I can count. MP is an inexpensive coverage and certainly helps smooth the waters if you have friends who get injured.
Rental car coverage is the third one people forget about. Ask yourself this — can you afford to rent a car for 30 days at $30 a day if something happens to your vehicle? I hated hearing people on the phone break down when they realized they had no rental car coverage and unbiased had their car wiped out. Your fault or not, insurance companies take time to sort things out and sometimes parts may be out or even worse, your car ends up being declared a total.
Purchasing auto insurance does not have to be scary or confusing — just take the time to understand what your sincere needs are and what assets you have to protect. This is obviously not an exhaustive list of things to watch out for when purchasing insurance, but hopefully these tips will help you create educated decisions and understand what coverages you need.
Legal Disclaimer: Please impress, this is not to be construed at legal advice as I am a Certified Paralegal, not a licensed and practicing attorney.
Filed under Eastwood Auto Insurance by on Mar 13th, 2011. Comment. 
Do you sometimes wonder why some insurance rates are higher or lower than others? Auto insurance rates vary for various reasons. There are several factors that may affect your automobile insurance rate. Here is a brief list of some of the criteria that auto insurance rates are based on.
1. Your driving report. Automobile insurance companies base your rate very heavily on your driving portray. If you have a good driving record, you’ll receive a good driving discount, which will make your rate lower. People who drive safely are less likely to be involved in an automobile accident. However, if you have speeding tickets, accident records, or have filed an auto claim before, your rate is going to be higher.
2. Your vehicle. Auto insurance companies also take the make and model of your vehicle into consideration when determining your insurance rate. Some vehicles cost more to repair or replace than others, in which case the owners of such vehicles will receive higher insurance rates. This is why owners of convertibles, for instance, usually have a higher auto insurance rate. However, anti-theft devices and other security features can give you a discount on your rate.
3. Your annual mileage. Drivers who are on the road more are more likely to get in an auto accident simply because they are presented with more opportunities for accidents to happen. Therefore, the less you drive your car, the lower your auto insurance will be.
These three things are some of the most favorite reasons why auto insurance rates vary. Your driving record, vehicle, and annual mileage are all relevant to how likely you will be to file a claim and how expensive your claim would be. Therefore, they are all used by auto insurance companies to determine your auto insurance rate.
Filed under Types Of Auto Insurance by on Feb 26th, 2011. Comment.
For anyone that owns and drive a vehicle, the high cost of automotive insurance can certainly be frustrating. Some car owners pay thousands of dollars per years to insure their vehicles. For some, the high cost of insurance is justified, but for other drivers there is a low cost option that may make perfect sense for you.
Typically, cars are insured through a large automotive insurance company. The customer selects the type of insurance that they steal and they pay a yearly premium based on the amount of coverage chosen, the type of vehicle insured, and the driving record of the owner. There are several other factors that affect your individual rate, but they are not essential to discussing obtaining cheap insurance.
Most owners select collision coverage for their vehicle. Collision coverage basically means that if your vehicle is eager in an accident, your insurance company will cover either part or all of the repair costs. Collision coverage is required if your vehicle is a lease of financed by another party. Collision coverage is costly and mainly make financial sense for cars 5 years old or less.
Stepping down from collision coverage is something referred to as comprehensive coverage. This type of insurance will not conceal expenses from repair involving the collision between your vehicle and another vehicle. However, comprehensive covers your vehicle for theft, vandalism, fire, and acts of nature. This coverage is significantly less expensive than collision coverage.
Now we will move on to the next manufacture of coverage which also is the cheapest insurance you can purchase. This coverage is referred to as PL/PD. PL/PD stands for personal liability and property hurt. This type of automotive insurance does not actually cover damage to your vehicle. It covers any damage that your vehicle may partake in. For example, you drive your vehicle into a building a end the building. Your insurance will cover the damage done to the building but will not cover the damage done to your vehicle. Liability coverage also protects you from lawsuits that may reach forth involving damage done by your vehicle.
PL/PD insurance is significantly cheaper than either comprehensive or collision insurance. However, this type of insurance also has its downsides. Weighing the costs against the benefits is a tough choice to make, but for those on a tight budget who currently absorb an older model vehicle, PL/PD may be the right choice for you. It can save you thousands per year over other forms of insurance and may be perfect for you.
Filed under Types Of Auto Insurance by on Feb 24th, 2011. Comment.
On January 2, 2009, the Utah Utes take on the Alabama Crimson tide in the Sugar Bowl. These two teams have proven themselves worthy of the prestigious Sugar Bowl, both ending up ranked in the top ten (Alabama placed #4 in the polls, while Utah finished at #6).
Nick Saban has proven himself yet again in the SEC by taking a struggling Alabama team and turning them into a powerhouse team. Saban has only been with Alabama for two seasons, and both times the Tide has gone to a bowl game. They won last year’s Independence Bowl over Colorado, and they are hungry for another one this year.
The Utah Utes hail from the Mountain West Conference, where they finished up their season 12-0 (8-0 in their conference). Kyle Wittingham has a 3-0 bowl record with the Utes, winning last year’s Poinsettia Bowl against the Navy. The Utes have not lost a game yet this year, and would esteem to effect out their season on a win.
Both teams have had remarkable 2008 seasons. Utah, of course, has gone an entire season without a single loss, which is remarkable in itself. The Mountain West conference is definitely not the strongest in the nation, but the Utes beat several worthy opponents. Included in their schedule were Michigan, TCU, BYU and Oregon Space. While they may not be in a tough conference like the SEC, they have indeed proven themselves worthy of a top place. Alabama lost only one game in 2008, to a tough Florida team in the SEC Championship game. They play in one of the toughest conferences in the country, the SEC, and won their season out.
As far as weaknesses go, Alabama’s key weakness is their passing game. Their quarterback, John Parker Wilson, has thrown for only 2,096 yards in all 13 games this season. The Utes simply haven’t been up against an opponent like Alabama yet. No one really knows if they can or can’t hang with the substantial boys. Their players may step up, or Alabama may burn them. Offensively and defensively, their opponents have not had the accelerate, strength or size of Alabama. Their lack of experience may hurt them.
So, who will take home the victory? Rest assured it will be a pleasant game if both teams show up in their best build.
The Vegas odds and spread on the Sugar Bowl on January 2, 2009 according to The Spread shows Alabama as a 10.9 point favorite over the Utes. Most people believe that Utah’s lack of obliging opponents will hurt them in the demolish.
Alabama and Utah statistics for the 2008 football season can be found at ESPN.
The home page for the 2009 AllState Sugar Bowl has all pertinent information regarding the game and game day activities.
Filed under Auto Insurance Quotes by on Feb 21st, 2011. Comment.
We have all received those offers in the mail from AAA for their Roadside Assistance program, which advertises peace of mind for traveling the open road. While it is easy to contemplate the need for such services, it can seem tempting to decide a similar conception through your auto insurance carrier in order to save money. After all, this only adds about $3-10 to your insurance bill on a six month policy. Similar coverage will cost you $50-100 per year through a company like AAA. Surely insurance is a better deal, right? Consider again!
What you may not know is that insurers withhold track of your roadside assistance claims and in some cases, you may secure yourself paying a higher premium if your car blows a tire one too many times. While it is unlikely that a one-time jump start will raise your rates, many insurers consider roadside assistance claims as one predictor of risk, which can impact premiums. Remember the money you thought you were saving by using your auto insurance instead of AAA? You can kiss that money good-bye.
In addition, automobile towing claims are reported to a national database run by Atlanta-based ChoicePoint, which provides insurers with claims information on consumers to help insurers process insurance applications. This database is checked each time you apply for a new policy in order to choose whether or not you have been truthful in regards to your application. However, it can be nearly impossible to distinguish a towing claim made for roadside assistance from one made after a motor vehicle accident. This means that flat tire you had that required a tow could make future inquirers think that you were in an accident you did not fully disclose. Interestingly, Choicepoint does not keep a relate of towing claims made through companies like AAA.
These reasons alone are reasons to resolve AAA over your auto insurance provider, but also keep in mind that AAA offers discounts on hotels, car rentals, and other move expenses which can quickly add up. Plus, you can be guaranteed that your insurance premiums will not increase, and your records will be kept private. That kind of peace of mind is worth a little extra money to me. Is it worth it to you?
Filed under Aaa Auto Insurance by on Feb 19th, 2011. Comment.
