How much is enough?

March 27, 2009 by Auto Insurance Editor
Filed under Auto Insurance Articles

It’s a sad fact that auto insurance is a boring subject. The only reason we tolerate it is that all but three states in the union have passed laws requiring us to have it. Were it not for that, we would all just let it die. So the eternal question we ask each other when we have nothing better to do is, “How much is enough?” Every state with a compulsory system starts off with a statutory minimum. This is the amount of liability insurance we must carry if we are to be lawful on the public roads. Failure to have this insurance in place results in a fine for the first offense. Repeat offenders face the risk of jail time with some states prepared to confiscate the vehicle and send it to the crusher. So, if the state sets the floor, is that enough, or should we all top up? Take Florida as a case in point. It requires local drivers to carry two policies, both in the sum of $10,000, for personal injuries and damage to property. Have you seen how fast the cost of medical treatment has been rising? Even everyday drugs are expensive. But the moment you set foot inside a hospital, the bill starts escalating faster than a Hummer burns up gas. And what about the cost of repairs in a body shop? How much will $10,000 buy if two other vehicles are involved in the same traffic accident? Now let’s go to Maine. Here the minimum is to carry $50,000 for one person injured. If two or more are injured, they share $100,000 to (hopefully) cover their medical expenses. The minimum for property damage is $25,000. These are slightly more realistic figures but, when you add in all the possible claims for consequential and incidental losses, both sets of numbers are inadequate. If you were to ask an agent for one of the auto insurance companies, he or she would tell you that you can’t have too much insurance. Since agents earn a commission on the sale of policies, this is not a surprising opinion. So it comes down to a simple rule. If you have a choice, you don’t need to top up your minimum liability policy if you don’t have assets to protect. Let’s say you live in a rental apartment with few items of furniture and no savings in the bank. If you get involved in a traffic accident, there’s no point in chasing you for money. But should you own an expensive house, have a portfolio of investments and enjoy a good lifestyle, you’re worth suing. It’s therefore in your interests to buy additional collision, comprehensive and uninsured/underinsured cover. As a final thought, you may not have a choice because lenders of auto loans always insist on full insurance. — David Mayer is always ready to share his professional point of view on a topic. To see what David Mayer has written about other things visit http://www.autoinsurance-guidance.com/auto-insurance-tips/how-much-is-enough.html .

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How much is enough?

Tags: auto, auto insurance, cost, david-mayer, expensive-house, florida, insist-on-full, interests, medical, possible-claims, professional, property-damage, sets-the-floor

Is honesty the best policy?

March 27, 2009 by Auto Insurance Editor
Filed under Auto Insurance Articles, Test

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When life is going along well, there are rarely temptations. You have everything under control and there’s no need to cut corners. But as the household budget comes under pressure, you have to keep the cost of essentials like auto insurance under control. No-one wants to risk driving out on the public roads without insurance. Cars are essential to most households. You don’t want to be put in the situation of having to choose between food and insuring the car. Yet, if you have picked up a traffic ticket, there’s a temptation not to pass the news on to your insurer. You’re almost certain the result will be a premium increase, particularly if it was a moving offense — insurers tend to think people who drive too fast or without paying proper attention to the rules of the road are more likely to get into accidents. So what are the issues? Most auto insurance companies treat the ticket as “important” for between three and five years, and raise your premium. The amount of the increase will depend on the offense. A speeding ticket where you were only a few miles per hour over the limit will not have a big effect. But if you were driving under the influence of drink or drugs, the effect will be significant. For starters, in many states, you will be caught up in the SR-22 scene. This is a certificate issued by your insurance company to your state’s Department of Motor Vehicles. It certifies that, even though you are a “problem driver”, you’re carrying the minimum liability covered required by your state. Except that many insurers are unhappy if you have a drink driving or DUI conviction and either refuse cover or charge a deterrent premium. That means getting the SR-22 can be expensive. So you’re tempted to keep quiet and hope your insurer will not notice the ticket(s). That keeps the premiums affordable. But, as and when the company finds out, your auto insurance policy will be cancelled. Your failure to disclose facts that were material to assessing the risks and setting the premiums can, if deliberate, be treated as fraud and you could find yourself the subject of prosecution or civil suit. Worse, no other insurance company will then insure you. It’s not that honesty is the best policy. It’s the only way you can get and keep a policy in place. — Want to read the latest news and discussions from David Mayer? Visit http://www.autoinsurance-guidance.com/auto-insurance-tips/is-honesty-the-best-policy.html to get his latest insights on many different subjects in the world.

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Is honesty the best policy?

Tags: articles, auto insurance, cover-or-charge, drink-or-drugs, insurance, insurer, latest, latest-insights, news, premiums, read-the-latest, state

Problems with tickets?

March 27, 2009 by Auto Insurance Editor
Filed under Auto Insurance Articles

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The road to the lowest possible auto insurance premiums is full of potholes. You can be riding along smoothly one minute and find a small crater opening under your wheels the next. It often comes in the form of a traffic cop whose flashing lights in your rear view mirror attract your attention. This happy soul has noticed some infraction. Perhaps you ran a red light or were traveling a little too fast through town. Whatever the reason, a traffic ticket is looming. Your once spotless driving record may now carry a blemish. In this situation, it may be worth paying an attorney to avoid both the ticket and the usual premium increases. If you get into a traffic accident and make a claim, your record also comes under pressure. It’s comforting to think that if the accident was not your fault, or you live in a state which operates a no-fault insurance scheme, your premium will not be affected. Unfortunately, the world is rarely fair and insurers frequently reward your claim with a premium hike. However, there’s a change in strategy from some auto insurance companies. To encourage customer loyalty, some now reward the good drivers alongside penalizing the bad. That means you can get an additional discount if your driving record remains spotless or the right to reduce the deductible if you prefer (remember you probably only agreed to a high deductible to get a low premium in the first place). If more companies followed this policy, it would give us all a real incentive to drive more safely and avoid accidents. It’s up to you to do a little research to find out which companies writing policies in your state offer these incentives. So let’s give you the good news in a single package. If you have no traffic accidents and no tickets, particularly those for moving violations, in your record, an insurer will quote a lower starting premium. The longer you go with a clean record, the more safe driver points you earn to justify a discount or deductible reduction. Many companies are sufficiently keen to poach safe drivers from their competitors, they will not only transfer your points but offer other incentives to move. The auto insurance industry is now offering perks to safe drivers similar to the reward schemes offered by credit card companies. Look carefully at the small print to find the scheme that gives you the rewards you actually want. If you already have a ticket or two, or you have made a recent claim, the best companies will start the clock running. A ticket or claim free period of three years or more will earn you relief. Some will reduce your basic premium. Others will reduce the premium conditionally, i.e. have another accident or pick up a new ticket and your higher premiums kick back in. — With people around the world thanking him for his professional approach of discussing the topic, Vasia is a frequent writer for http://www.autoinsurance-guidance.com/auto-insurance-tips/problems-with-tickets.html and is happy to share his vision with you there.

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Problems with tickets?

Tags: accident, articles, auto insurance, competitors, premium, professional, record, reward-the-good, rewards, ticket-or-claim, wheels-the-next, world

Couple argue for auto insurance changes - The Newark Advocate

March 27, 2009 by Auto Insurance Editor
Filed under Auto Insurance News

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Couple argue for auto insurance changes
The Newark Advocate, OH
Gerald Stebelton, R-Lancaster, the law governing auto insurance requirements is outdated. It was adopted, and since untouched, in 1969, the year Hottinger was born, the Newark Republican pointed out. Stebelton, who co-sponsored the bill, …

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