10 questions you should ask yourself about your car insurance -
Insurance can be confusing. I personally think the industry has done this with itself with ads that talk about everything except what is really important to most customers and their families. What do you really need to know? It seems like everything is a great mystery. This will help you to demystify the jargon and help you understand what is really important to you.
1. Cheap car insurance is good, is not it? - I know. I have seen all ads from T.V. Seen you have. Everyone trying to out-shout each other assert that it can save you hundreds on your car insurance. The price is important, but not everything. I often tell customers that it is the same as anything else: you always get what you pay for. If you are looking for a pair of sunglasses, and you found a pair for $ 5 at a convenience store - you would expect to get a pair of $ 5 sunglasses. So if you get lost or broke or not fit your face properly, you'd be fine with that because you know you bought a pair of $ 5 sunglasses. However, if you bought a prescription sun glasses, from your local optician for $ 200, you would expect to get something that did not break easily, scratch and very comfortable to wear. In essence, you can walk out the door with something of exceptional value. The same is true for car insurance and everything you buy. Anyone can sell you a stripped down policy for cheap. And you get that.
Fact. Cheap is only that: Cheap. Make sure you have the coverage you need at a price you can afford, the most important thing you can do before you pay your next insurance.
2. What is the most important individual reporting I need? - Most states have binding and binding boundaries for responsibility for one reason: promoting public prosperity! Liability is part of your policy that pays for medical bills and property damages that you are legally liable to if you are determined to be guilty of an accident. However, most of these limits were in the 1970s when the cost of health care and property were substantially lower than they are now. (The average yearly income in 1975 was $ 8,000! - Wed, as the times have changed ...) States have not kept pace with the limits of responsibility required with rising health care costs or even inflation! When is the last time heard of a lawsuit for less than a million dollars? If you have $ 15,000 to $ 30,000 to start on a claim of this size, where do you get the rest? Limitations of liability are offered by the state minimum requirements of up to $ 2 million for any bodily injury or property damage resulting from an accident. Without enough responsibility, you could be faced with devastating financial demands if you hurt someone wrong at an auto-accident.
Fact. Responsibility is the least expensive coverage on your policy and the most beneficial to you. For less than $ 0.99 per day, you can buy significantly more responsibility to protect your family from lawsuits and avoid the pain of bankruptcy.
3. What is a full coverage? - There is no such thing as "Full Coverage". If an insurance company sold you any cover that they had in their arsenal, there would still be things that would not be covered. An example of this is the use of the vehicle for illegal activities. Police, drug smuggling or other illegal substances or people and intentional criminal acts are good examples of things that are never covered when your vehicle has been damaged or destroyed. In the 1989 film "Steel Magnolias" the character of Shirley MacLaine caresses her car in another car, which she meets in a parking lot in the supermarket. All the time she says, "I have insurance!" The intentional destruction of personal property is a real crime, and that would not be covered by an insurance I know.
There are actually only two covers that you can buy commonly referred to as "full coverage".
Collision is the first of them. Collision is the only place in your policy that you can find the money to repair your vehicle if you ruin it and it is determined to be your fault. In faultless states like Colorado, if your vehicle is damaged in an accident, your collision insurance is the only place where you would find money to repair your car even if the accident was caused by another driver.
Full coverage is the second of these covers and protects your vehicle from non collision-induced losses such as fire, wind, hail, theft, vandalism, falling objects such as trees and falling rocks Hillside and beating the animals.
Usually, banking institutions force you to have these covers while you are financing a vehicle so that they (the bank) are financially protected from loss if your vehicle is destroyed or destroyed while still keeping the note on it.
Tip. If you have the book value of the vehicle in the low thousands, you can seriously consider these toppings. There is a point where the value of your vehicle no longer justifies payment extra to protect the depreciated value. Your agent can help you determine the value of your vehicle and show you how much you spend to protect that value.
4. If I am covered by my main medical care provider, like Blue Cross / Blue Shield, do I really need drivers without health insurance? - If you are paying someone else for healthcare cover, why would you want to give another insurance company more money for the same thing? In most cases, where vehicles are covered with Collision and Comprehensive, and where you are healthcare coverage for you and your family with a senior physician provider, it does not matter if an uninsured person meets you and hurts you. You know your medical bills will still be paid by your primary medical provider.
Note. To make a sound decision about whether or not to bring Uninsured Motorist coverage, talk to your agent about the actual risk you now have.
5. I have expensive tires and tires installed after the market or stereo equipment in my vehicle. Are these points covered by my policy? - I know customers who spend a substantial amount of money to customize their vehicle. Some spend more than $ 10,000 to get accessories that will make your vehicle different. The basic rule for determining whether these valuables are covered under your policy is simple. If it is installed in the same location as the factory-installed material, it is covered. Tires and tires will obviously be installed in the same location as the tires and tires that comes with the factory vehicle. Stereo equipment can be installed in the same location as the factory stereo system, but some of the accessories, such as amplifiers and speakers placed elsewhere (under sitting, in the trunk of the car, etc.) are not covered by your staff with vendors.
Top. If you add accessories to your vehicle, ask your agent if they are covered or not.
6. Is my Tom-Tom GPS, mobile phone or radar detector covered when my car is broken and stolen? - Your policy covers only the vehicle. Personal property stolen in a vehicle will never fall under the policy of the vehicle. Only a personal property policy such as homeowner, tenant or household insurance cover your personal belongings within the vehicle.
Top. As a general rule, most everything not installed in your vehicle is not covered in your motor insurance. Ask your agent how your real estate policy works in conjunction with your car to get the greatest protection.
7. What can immediately deny my automatic claim? - Car insurance companies have the same basic rules for this, which they describe in the policy document. The main reasons for rejecting your claim are: 1) driving without license or on a locked license; 2) the insurance had expired at the time of the accident; Or 3) a newly acquired vehicle has not been added to the policy within 30 days after the purchase of the vehicle.
Top. Be sure to ask anyone to drive your vehicle if your license is active and valid, pay your premiums on time, and be sure to add any new purchased vehicle to your policy as soon as you are using your agent Connection.
8. When my car is total, how much will my insurance company pay to cover the loss? - Usually, most major insurance companies cover your vehicle for its "effective cash value". The current present value is the value that the value of the vehicle has calculated at the time of the accident. Each insurance company has its own vehicle evaluation system. The next one you will be able to achieve this rate is through the averaging of your Kelly Blue Book values for trade-in and private party. This will give you a good idea of the average value that an insurance company will pay you when your vehicle is total. This is the highest value and the lowest value available to you as a vehicle holder. Some guidelines, usually for classic cars, you can insure the vehicle for the stated value, or "agreed value". Most personal car policies do not allow you to insure a vehicle for the stated value.
Tip. Check with your agent to find out what the actual cash value of your vehicle is. No one likes day-shock when they get a damage test for a total loss.
9. When I need new parts for my car, does my insurance cover original parts (OEM) parts? - In the recent past, many insurance companies have guaranteed OEM parts. When the big car companies crashed into the recession, many of them were amazed that these parts would be available. As insurance companies were exposed to a national shortage of vehicles manufactured by companies that were now bankrupt, they all changed the text of their policy to change this to protect themselves from attempts. Now it is the standard for spare parts used to repair vehicles as they are more readily available and no noticeable difference is visible in the repairs of most body shops.
Fact. Many insurers strongly restrict the use of OEM parts in their repair estimates.
Top. If you want to know which parts are actually used to repair your vehicle, the best option is to ask your body shop what kind of parts they want to use for the repair. If OEM parts are available, you can consider asking your insurance company to cover the additional cost of OEM parts.
10. If I am killed in a car accident, what does my family get? Most people assume that if they are killed in a car accident their family will get some sort of death benefit from the auto insurance. This is simply not true. Some states offer a small death allowance on their medical payment / bodily injury cover, but most do not. Medical payment coverage will only pay up to the policy limits for medical bills.
Fact. Life insurance is the only way to ensure that your family gets some money when you happen as a result of a car accident.
Tip. Some insurance companies offer discounted rates on their auto insurance if they also have a life insurance with them, and vice versa. To ensure that you are getting the best deal, contact your agent.
I know the insurance world can be confusing but it is important to know the right questions to ask your agent so he is in a better position to make informed choices for you and your family. Our belief is that if you are properly educated about the insurance of a real consumer attorney, your experience with our industry as a whole will be much more satisfying for you.