Monthly Archives: June 2018

Life Without Car Insurance Can Be A Nightmare

When going out for a drive, Car owners should take great care not just about their life but also of their car. But sadly not every car owner is cautious while driving which leads to road accidents and ultimately them ending-up paying unexpected expenses.

If you’re a car owner without car insurance you should consider buying one, as owning a car without an insurance policy can be a living nightmare full of bills that need paying.

1.) medical bills-

A car accident can lead to injuries which ultimately land you in a hospital where you spend time in recovering and paying your medical bills.

2.) medical bills of the people injured-

If the people around the incident were injured as well, you would also have to pay their medical bills.

3.) Repair costs of the property damaged-

Say for instance your car collided with the entrance of someone’s front gate. You end up paying for their damaged gate as well.

4.) Repair costs of the car-

And let’s not forget about the repair costs of your damaged vehicle.

5.) Totalled car

Say for instance you were driving a car that you just bought with an EMI plan. It’s the third month and your car is completely totalled because of an accident.

In other words, you lose your perfectly new car and would still have to pay the EMI amount every month.

You’ll be surprised to know that at times mishap to your car can also happen because of external factors like –

1.) Vandalism

Scratches, dents, broken glass, graffiti, glue in keyholes, and slashed tires are some of the most common types of vandalism faced in inner cities.

2.) Theft of car parts

Thieves find this to be an effective way of making easy money, as stealing car parts don’t require much skill and can be accomplished in minutes.

3.) Stolen cars

Every year, police make some progress in recovering stolen cars however, the recovery rate is still not close to the total number of cars stolen.

4.) Riots

Riot is a time when parked cars face maximum damage in the form of loots and vandalism.

5.) Flooding

From forming rust to damaged electronic wiring, floods are a natural disaster that can ruin your brand new car.

Yes, owning a vehicle comes with a lot of unexpected expenses that you need paying, especially if you don’t have car insurance. Which is why it is crucial that every car owner goes for car insurance.

Why Do You Need to Have an Adequate Car Insurance Coverage?

Nowadays, when you buy a car, you must also carry adequate insurance. You may be wondering why do you have to cover the extra cost of the insurance. Actually, the premium is affordable and you can get discount when you buy it online. It is common for people to get into accident every once in a while. Therefore, it is best to always equip yourself with adequate insurance coverage just to be on the safe side.

Driving a car without car insurance is illegal. If you get caught, you may get a hefty fine. The premium of your car insurance policy must meet the minimum requirement of your state. Every state has different insurance requirements. Most of the states require you to have liability insurance. Some states like New York and Florida require drivers to have a personal injury protection.

Having an adequate car insurance can protect your finance in case you encounter an accident. If your car collide with someone else’s car and you are at fault, you will have to pay an expensive damage fees. The damage fees will cover the other party’s car’s damages along with the hospitalization or medical fees of the driver or passengers.

The damage fees often reach up to a few thousands dollars. You will be broke if you use the money from your savings to pay the damage fees. If you don’t pay for the damages, the other party may sue you in the court. If you have an insurance policy, you just have to file a claim and they will reimburse the damage fees.

You may want to consider getting a comprehensive/collision car insurance as it not only protect the damages of the other party’s car but also the damage you suffer as a result of the accident. Many people who drive on the highway don’t carry enough car insurance. For this reason, if someone collide with your car and run away, you will at least can claim the damage fees from your insurance company.

Comprehensive/collision coverage provides coverage when you accidentally hit an animal that is crossing the road. It covers damages on the broken windshield, hail damage, fire damage or collision that happen as a result of a storm. Your comprehensive insurance will also reimburse the compensation on a stolen vehicle that has gone missing for over 1 month.

It gives you coverage over any type of vandalism performed on your car, for example, someone uses a key to scrap the paint off your car. It offers coverage when your car is damaged due to high flooding water caused by a hurricane. It is your comprehensive coverage that will pay for the damages when your car is being smashed by a fallen tree.

The comprehensive coverage will protect your vehicle when it is parked in place. Your home insurance will not provide coverage when the garage collapse or other physical damages happen when it is parked.

When purchasing car insurance, you have to choose a deductible. The deductible is the amount that you have to pay upfront when you want to claim a compensation. Higher deductible reduce your annual premium cost but lower deductible can increase your annual premium cost.

Traffic Violations, Auto Insurance, and Your Rates

Auto Insurance is expensive enough. You do not need a traffic ticket to make your premiums go up even higher. That is why it is important to drive carefully, courteously and within the legal speed limits. This way, you will give no reason for a police officer to pull you over and hand you a summons in regard to irresponsible driving patterns.

You may wonder. The ticket itself involves a fine. Why would you be penalized any further by your insurance company?

To be honest, your insurance company is not interested in punishing you. They are solely out for their own interests. When they see you have been convicted for a moving violation, they view that as a peril to their operations. Traffic violations demonstrate to the insurance company that you are at more risk of being a part of a car accident or collision than someone that has a clean driving record. A car accident, in insurance terms, means there will likely be a claim that they will cost them money. The insurance company balances the risk of an auto accident claim with a raised premium or added charge.

Of course each company gauges its response to a poor driving record individually. By and large though, they have a team that looks at the general behavior you have exhibited when you are behind the driving wheel.

And when deciding the amount of the rate increase, the insurance company will consider the severity of the traffic violation.

So, if you are committed of drunk driving, you will find yourself up against an extremely strict reaction in regard to a rate increase. If you have merely been ticketed for a broken headlight, judgement meted out against you will be mild. And if you have been found to be speeding 15 miles above the city limits, you will get a higher increase than if you would have been speeding only five miles beyond the posted mileage.

People often ask about parking tickets. For the most part, the motorist who receives a parking ticket need only worry about paying that ticket. The insurance company will not raise your rates if they see that you are responsible about your bill and they do not view a parking summons as a concern in regard to your likelihood of being involved in a car crash.

The line of thought goes far beyond a car. Whether you drive a truck, van, motorcycle or other type of vehicle, your rates can go up if you have been convicted of a moving or speeding violation.

Should You File an Auto Claim After Any Accident?

Auto accidents unfortunately can occur anytime and anywhere. Obviously, this is reason why it is important to have the right kind of protective car insurance. But sometimes, filing an auto claim is not the best thing to do.

Here’s an example.

A woman drove through an intersection at prime time. Suddenly, she saw a car approaching. It barely made a scratch to her automobile. Nonetheless, it made the otherwise perfect exterior less than perfect.

Naturally, she wanted compensation. The other driver wanted to discuss how he could pay out of the pocket and avoid an auto insurance claim. Being that it involved minor damage, she agreed to this mode of compensation, assuring the at-fault driver she would not notify her insurance company.

The other driver knew that the deductible alone was about the same as the total repair costs to the car he had scratched. He also was aware that by filing an auto claim, his rates would likely go up. Negotiating with the other driver to pay for damages without the involvement of the insurance companies would guarantee his premium would not be affected by the mishap.

Most would agree that this was a smart move.

In the majority of cases like the one above, it is far better to ship out payment to fix damages than report the incident to the insurance company.

Here is the inside story of what happens when the insurance company gets involved.
Insurance companies utilize complex calculations to figure what rate you should pay for your auto insurance.

Of the many involved aspects, multiple claim filings can make your premiums increase. In fact, even filing a claim the wrong way may cause your rates to go up or cancelled – not to mention if you’ve accumulated violations on your driving record!
Of note as well is the fact that even a simple conversation about an accident even if you do not end up filing a claim may cause your rates to go up. Many insurance obligate their employees to report a potential claim.

So, if you are involved in an episode like the one in the beginning of this article, you might want to consider follow the order of things there and just pay up front without involving the insurance company.

Of course, there is always the risk that the other driver may discover further damages or even resulting injuries later on. Without a timely claim submission, there’s a good chance you will not be covered for any resulting lawsuits.

Bottom line: if you are sure this is a minor matter, it may be in your best interest to go at it alone. If you have any doubt about it, the experts advise you to call your insurance company!

Top Mistakes When Insuring Teen Drivers

1. Letting teens drive too soon

It is no secret that kids develop at different rates when growing up and it is no different for driving. While some kids are ready to drive younger than others (I was 14 when I started driving to school) it is definitely a conversation parents should have with their children. Some should wait to begin driving because they are simply not ready for the considerable responsibility. When you are driving, you are in control of an object that is extremely large and fast moving and can cause serious damage and even death.

2. Insuring your home and vehicles with two different agents

When you are shopping your insurance, in 99% of cases it is best to have everything with one company. When you have your policies with multiple different providers, you are most likely not getting the best rate. Almost every company out there gives you discounts for having everything bundled together with the most common being auto and home. As time has passed, companies are giving discounts for having policies in addition to just the auto and home. Many providers offer significant discounts for having multiple policies, such as life, business, umbrella, off-road, marine and even rental properties.

Outside of price, having one agent also will make your life a lot easier because you are not having to deal with two different people, which will generally lead to two answers for everything. Not all agents are created equal, so finding someone you can trust-who has the knowledge to help you with any questions you might have, as well as recommending what is best for you-is just as important (if not more important) than price.

3. Having a low liability coverage

One of the biggest mistakes you can make with your insurance is having low liability limits. In this day and age, lawsuits are more prevalent than ever and the payouts are only getting higher as medical costs are constantly going up. If medical costs have gone up 25 percent in the past five years, but you still have the same liability limits, you are now 25 percent more likely to have a claim exceed your liability cap.

There are a lot of assumptions when it comes to insurance, and one of them is that having high liability limits is going to cost an arm and a leg. In reality, that is the farthest from the truth. In many cases, you can double or triple your liability for less than a trip out to dinner each month. Is that meal really worth hundreds of thousands of coverage in the event of a liability claim? I don’t think so.

So, what liability limits should you have? While it will vary from state to state, I recommend having at least have $500,000 on your auto policy and a $1,000,000 umbrella policy as well. I know, you’re probably thinking why on earth would I need $1.5 million worth of coverage?

The first reason is that depending on what state you live in, you may not be able to file bankruptcy on liability claims. What does this mean? This means that if you have $25,000 worth of liability on your auto and were to severely hurt someone causing $300,000 worth of damage, you would be on the hook for $275,000. They can take your car, house, checking and even garnish wages until the claim is paid off. You have to not only think about what you have to lose now but also all of the potential future earning that could be lost.

The second reason is that the average death claim is over $750,000 which means that even if you had $500,000 worth of liability on your auto, which is generally the most an auto policy offers, you could still be on the hook for a quarter of a million dollars.

With insurance, you do have to consider worst case scenarios because that is why we have insurance. By ignoring this fact and purchasing low limits because you’re not willing to spend the equivalent of a trip out to dinner is only doing yourself a disservice.

4. Not informing your insurance company you have a new teen driver

If you are knowingly withholding drivers, it could result in the denial of a claim. You could be paying for insurance but because you did not disclose a driver because you didn’t want to pay the extra premium, you might be on the hook for a claim in its entirety. Sometimes it is hard to stomach that extra $100 a month for that new driver, but I can guarantee you it would be much more difficult to stomach the repossession of your home if your child got into a serious accident and your company denied the claim because the household was rated inaccurately.

The national average annual rate increases for male teens, according to insuranceQuotes.com:

• 16 years old: 109.65 percent

• 17 years old: 99.12 percet

• 18 years old: 90.45 percent

• 19 years old: 69.08 percent

Rate increases for females are much lower than for their male counterparts:

• 16 years old: 81.63 percent

• 17 years old: 72.69 percent

• 18 years old: 64.81 percent

• 19 years old: 47.58 percent

Understanding the Auto Insurance Claims Process

If you own a car, truck, motorcycle or any other vehicle, you know you need related insurance. All is good as long as you pay your monthly premium and do not make a claim.

Then you are involved in an accident. What then?

For many auto insurance policyholders, the auto insurance claim process is very, very complicated. Here, we bring you the basics of understanding with the following oft-repeated questions.

How long does it generally take to process an auto insurance claim?

A: If the insurance company has all the facts, a settlement should be achieved fairly quickly. By providing much of the details involved in the collision, the policyholder him or herself will help get the process off the ground. Any insurance company worth its reputation will do its utmost to process the claim as efficiently as possible.

Why is the estimated cost of repairs less than the actual payment check?

A: This is because the auto policyholder must first pay out-of-pocket for the deductible. Only after this, is the remaining balance given through a check.

What is the reason for the auto lien holder to be placed on the insurance payment check?

A: Many states make this a requirement for the simple reason that the lien holder has an insurable interest in the repair work done on the vehicle. In order for the policyholder to get the funding for the repair, he or she must be in touch with the lien holder.

What is the meaning of Direction of Payment?

A: Most auto repair shops require you to sign a Direction of Payment form so that they have documented evidence that the insurance company has permission to pay them for the repair work they complete.

What is common practice of insurance companies in regard to rental cars during the time the insured car is in the shop for repairs?

A: Most times, an insurance company will supply a rental car if the insured car is inoperable and in for repairs.

What about towing costs?

A: Generally speaking, towing is a covered service provided by the auto insurance company following an accident.

What is the procedure if the insured incurs injury during an auto accident?

A: The policyholder should be in touch with the insurance company if he or she is injured. The claims person will inform the policyholder about the related medical care and treatments that are covered under the policy.

What You Need to Know About Reporting a Stolen Car

Can you imagine how it would feel to park your car somewhere, only to find it missing later on? Many people experience this tragedy on a daily basis. In fact, according to CNBC.com, “Roughly 800,000 to one million cars are stolen in America every single year.” These numbers are extraordinary, making car theft a common occurrence all across the country. This also means that the insurance claim process can be quite complex and tedious.

If you are prepared to report your car as stolen, there are a few important things you should know about car insurance coverage for stolen vehicles, as well as the investigation process for car theft claims. Continue reading to learn what you need to know about filing an insurance claim for a stolen car.

FIRST: Was Your Car Really Stolen?

Once you have noticed that your car is missing, it is wise to reconsider all the possibilities before making an insurance claim and police report. You can check for parking signs to see if it had been towed, ask friends and family if they borrowed your vehicle, or call your car loan company to see if it was repossessed. When there is no other possible reason for your car to be missing, then it is safe to move forward with filing an insurance claim and police report.

Insurance Coverage for Stolen Cars

In order to have insurance coverage in the case that your car is stolen, you must have comprehensive coverage on your insurance policy. This is something that is required in all states. If your vehicle is stolen off of your personal property, you cannot file it under your home owners’ insurance policy; you must have an auto policy with comprehensive coverage to cover the loss.

Car Theft Claims Process

When you are sure your car has been stolen, you must report it to the police immediately for documentation. At the same time, you must notify your auto insurance carrier. Most carriers operate using a 30-day claim waiting period to see if the car is ever recovered, which generally begins on the date of theft. Furthermore, comprehensive coverage does not cover personal belongings that are stolen out of a vehicle. Items like phones, computers, clothing, jewelry, equipment, and more, could be covered in a renter’s or home insurance policy, but not in an auto policy.

Car Theft Investigations

Car theft claims are taken very seriously at insurance companies. They are investigated closely by adjusters to ensure that fraud is not at play. Filing a fraudulent car theft insurance claim is a felony punishable by prison time, fines, and more. They will record all conversations with clients, and ask very detailed and intrusive questions. As long as you are not committing a crime, you shouldn’t take the investigation process personally. The insurance adjuster is just doing their job.

Hire a Criminal Defense Lawyer for Fraud Charges

Fraud crimes are charged as either misdemeanors or felonies, depending on the particulars of a person’s case. If you were recently arrested on facing fraud charges in Indiana, you are facing hefty fines, imprisonment, and other severe penalties. The best step you can take toward securing your rights and protecting your freedoms is calling a licensed fraud lawyer for tough and aggressive criminal defense; otherwise, you risk be sentenced to the maximum levels of punishment in Indiana.