Saturday 26 November 2011

How to shop Around for the Lowest Auto Insurance Rate




One of the ways to save money in your budget is to shop around for the lowest auto insurance rate. When you get the best price on auto insurance coverage, you are able to save money every month, or every six months, depending on your policy. However, you need to make sure you are shopping effectively. Here are some things to keep in mind as you compare your auto insurance options:

Actual Coverage

Sometimes, you see that one company is offering a price quote that is much lower than another. Whether you are looking for an online insurance quote, or are calling around to different agents, you might find a startling difference in price. Before you get too excited about a low rate, you should be sure that you are comparing apples to apples.
Make sure you understand what is actually covered so you can compare policies that are truly similar. This means that they should have similar coverage amounts for the same items. You don’t want to compare a policy with comprehensive coverage to one that has liability coverage only if that is something you are looking for.
You should also look at the other items that might be covered, including windshield replacement, car rental and towing. Sometimes a policy seems cheaper because it doesn’t have these coverages, and you are comparing it a policy that does.

Discounts

Don’t forget to find out about discounts for things like having good grades (usually for teenagers and college students on your policy), having more than one vehicle and having other types of insurance, like homeowners/renters and life, with the same company. Ask about discounts for remaining claim-free, as well as discounts for having good credit.
Compare the possibilities between different policies. In some cases, a policy that looks slightly more expensive on the surface turns out to be less expensive, due to discounts or bonus programs. You can also look for companies that offer a partial premium refund when you are claim-free for a certain period of time.

Service

Of course, if you are not happy with the service provided by the insurance company, no amount of money saved might be worth it. You should do a little background research on the top companies you are interested in. Check the Better Business Bureau for unresolved complaints. Most insurance companies are going to have complaints against them, but you can find out a lot by the types of complaints there are. You can also tell something about a company by the help you receive as you shop around.
Look for a company that provides reasonably good customer service, as well. You want to find a company that offers a 24-hour claim line so that you can speak with someone anytime you need. You should also find out about the claims process so that you understand it. Even if you get quotes online, try to talk to an agent so that you can gauge how friendly and helpful the company is. If you are going to forge a long-term relationship, it might be worth it to pay a little bit more for superior service.

2010 U.S. Auto Thefts Lowest in 43 Years

     2010 U.S Auto Thefts lowest in 43 years



A report released this week by the National Insurance Crime Bureau (NICB) revealed U.S. vehicle thefts dropped to the lowest level since 1967. The decline in thefts represented the seventh straight year that thieves were deterred from or failed to steal vehicles.

257 Urban Areas Report Fewer Thefts

The NICB released preliminary figures this week that showed thefts probably declined 7.2 percent last year from 794,616 in 2009. According to the non-profit trade group, 257 urban areas reported fewer thefts in 2010.
Declines in specific cities include:
  • 1.9 percent decline in New York City area (including northern New Jersey and Long Island) to 29,189
  • 14.5 percent decline in Dallas to 21,963
  • State College, Pa. had the lowest rate with 46 thefts–or 30 per 100,000 people
Other areas with decreases in thefts included Detroit, Los Angeles and Miami.

Enhanced Security Devices, Bait Cars and Insurance Discounts Decrease Auto Theft

While the decrease in auto thefts is encouraging, it is not a surprise to experts. The NICB and other insurance groups say there are a number of reasons for the declines:
  • Better security devices: More cars come with built-in security devices installed by manufacturers, including tracking devices and ignition disablers that make them more difficult to steal successfully.
  • Insurance companies offer discounts: Drivers are now being encouraged to use anti-theft devices by auto insurance companies that offer discounts. This has resulted in an increase in drivers installing their own security features.
  • Increase in bait programs: The NICB says law enforcement in different states are also using more “bait programs” in which officers leave cars unlocked with the keys in the ignition to tempt thieves. These programs have reported helped to reduce thefts significantly.
The adjustments made by automakers, insurance companies and law enforcement collectively have had a huge impact on thefts in the U.S. But experts say that in addition to their efforts, the easiest way to protect your car from theft is to simply lock your doors.

Saturday 12 November 2011

Motorcycle Insurance Basics

Are you and your motorcycle insured well enough to satisfy your state’s legal guidelines, as well as your own risk tolerance? You owe it to yourself and those who care about you to be sure you are up to date.
It may also be a good time to shop around. Rates can vary, and different insurance companies may offer superior service, coverage, discounts, or simply a lower premium.
When you ask for price quotes from different companies, it is important to provide the same information to each so you are comparing apples-to-apples. To quote you an accurate rate, each company will typically ask the following: marital status, age, where you live, the year/make/model of your bike, your driver’s license number, Social Security numbers, and the coverages and limits you want.
Insurance companies calculate your premium based on what their underwriters estimate it will cost them to assume the financial responsibility for any potential claims.
Some key definitions:
Liability Insurance
Most states require you to at least have liability coverage.
Although variable by state, liability insurance consists of some or all of the following:
Do you have adequate coverage for you and your motorcycle?
Do you have adequate coverage for you and your motorcycle?

Bodily Injury and Property Damage (BIPD): This covers your legal liability where a crash causes injury to another person or damage to another person’s property.
Uninsured/Underinsured Motorist (UM/UIM): While considered a component of liability coverage, UM/UIM is optional in some states, and mandatory in most states. It covers you in the event another person causes an accident with you and is not insured, or his or her insurance doesn’t pay enough for your expenses, including medical payments and lost wages. UM/UIM coverage is intended to make up the difference between the at-fault person’s liability limits and the amount of your expenses.
Medical payments: This component of liability insurance is optional in most states. It pays for necessary medical care you receive as the result of a motorcycle accident, regardless who is at fault. In some states, this coverage only applies after other medical insurance is exhausted. 
With liability insurance, there are certain minimums required, and you can elect to raise coverage, or set limits when you sign up for the policy. “Limits” are the maximum amount your insurance company will pay under your BIPD coverage. For example, limits of 50/100/25 mean:
Maximum to be paid per person for Bodily Injury is $50,000.
Maximum to be paid per accident for Bodily Injury is $100,000.
Maximum to be paid per accident for Property Damage is $25,000.
“Full Coverage” Insurance
If you own your motorcycle outright, the following coverages are usually optional. If you financed it, you may be required to carry coverage over and above liability insurance.
Coverages vary by insurer, but usually include:
If you've added any aftermarket accessories to your ride, consider adding them to your coverage.
If you've added any aftermarket accessories to your ride, consider adding them to your coverage.

Comprehensive and Collision: Typically pays for repair or replacement of your motorcycle if it is damaged, regardless of who is at fault. Comprehensive covers your bike if it is stolen or damaged by fire, vandalism or the like. Collision typically pays for damage to your bike if you have an accident with another vehicle or object.
Custom Parts and Accessories: When you purchase physical damage coverage, most insurance companies also provide coverage of at least $1,000 for custom parts and accessories. If this of interest to you, check with companies to determine what they offer.
Roadside Assistance: Typically pays for towing to the nearest qualified repair facility and necessary labor at the place of the disablement when your motorcycle is disabled within 100 feet of the roadway due to mechanical breakdown, discharged battery, flat tire, insufficient gasoline, oil, water or other fluids, or (if applicable) getting stuck in snow, mud, water or sand.
A few tips:
Make sure your policy is up to date before you start riding in the spring.
Make sure your policy is up to date before you start riding in the spring.

Before riding, make sure your policy is up to date
Are all your coverages still in force? If you had your bike’s coverages restricted by a winter layaway, if applicable, you will want to call your insurance company to verify you are OK to ride once the weather is clear.
Also make sure to inform the insurance company if you have had any changes in your status, such as additional riders or a new address where you keep the bike.
Think about increasing your liability coverage limits
It may be smart to carry a higher limit if you have significant net worth. If you are involved in an accident with anyone or you damage property, you may be subject to liability. In today’s litigious environment, you will want to be covered.
Consider adding coverage for medical payments to your policy.
In most states, you can buy coverage limits up to $25,000 to pay medical bills for you and your passenger, if applicable.
Be sure aftermarket or custom equipment is covered
Do you have a cool paint job, additional installed accessories, chromed items, aftermarket wheels, or the like? Let your insurance company know, or you may only be entitled to replacement for a stock bike although you may have significantly more cash invested. Your agent can let you know you are covered, but do not take it for granted. 
Select your deductibles
If you are covered for comprehensive and collision, you may consider raising your deductibles to reduce your rate. This is usually a judgment call on your part. If the decreased premium is worth the savings, go for it. If it only lowers your premium a little, you may want to leave the deductibles lower, especially if you suspect one day you might use your coverage.