Auto Insurance - 5 Costly Mistakes Commonly Made

Automobile Insurance is considered to be a "necessary evil" by many folks who feel that they will never or rarely use it. That's a really good thing because having an accident can mean that you might become injured with long recovery times or at the very least greatly inconvenienced by having to wait for your car to be repaired or replaced. Many folks tend to want to pay for the least amount of insurance that they have to and at the lowest price. Just be sure not to make these common auto insurance mistakes.
1. Assuming you need only minimum limits because "you don't own anything." Recent graduates starting their careers may not currently have a lot of assets to protect but they do have a lifetime of future wages. Judgments for damages caused to others can follow you and cause your wages to be garnished to satisfy them. The cost of higher limits can be extremely minimal. Be sure to evaluate the cost benefits of all your options.
2. Not matching your "Uninsured/Underinsured Motorist" liability limits with your "Bodily Injury" liability limits. The reason that you have liability insurance is to protect yourself by paying for the damage done to others if you cause an accident that is your fault. So what happens when the accident is someone else's fault and they don't have insurance or only have minimum limits? You should be protecting yourself with the same limits that you are protecting others.
3. You don't have all of your personal policies with one company or one agency. Most companies offer significant discounts for you to have all of your policies with one company and in most cases, it makes a lot of sense to try to do that to take advantage of every discount you can qualify for. In the cases where that may not be possible, at the very least have all of your policies with one agency to be sure that you have no "gaps" in your coverage. If you have assets to protect, (a home, cars, personal belongings) you should have an umbrella policy that will give you liability coverage in excess of what is offered on the standard auto policy. A million dollars of coverage may cost less that $200 annually and can buy an awful lot of "peace of mind." However, umbrella policies require certain limits be maintained on your auto and home policies in order to "seamlessly" payout. For this and many other reasons, you should have a professional agent manage your insurance program.
4. Assuming all contracts and insurance companies are alike. Insurance is basically a promise made by an insurance company to pay a loss in exchange for premium. Insurance companies have different financial ratings and reputations. Paying your premium doesn't mean you are going to be satisfied with the handling of your loss. If you own a nice vehicle- lets say a BMW for example: unless you have specific coverage for "original equipment manufacturer" (OEM) parts, generally aftermarket parts will be used on your vehicle after a loss. This is not a bad thing. Many times the warranties and quality of these parts are the same or perhaps better than the original part but if you are concerned that new windshield has "BMW" stamped on it, you need to specifically have that coverage.
5. Assuming you don't need "Medical Payments" coverage because you already have "great" medical insurance. What about all the other people in your car? Most contracts include any family member and any other person occupying your vehicle. It also usually covers funeral expenses and the coverage limit applies to each injured person. The limit can also "double" the amount if a seat belt was being worn. There is also no deductible unlike most health insurance.
Auto insurance is a very important part of your personal insurance program. Many considerations go into being properly covered. You don't need to "over pay" for proper coverage but being with a great company, with great coverage that exactly fits your needs is what you should be striving for. Here's hoping you never have to use it!

Sharon L Graeter, CPCU is Co-Founder and Director of Development for West Connect Insurance Solutions. She has 35 years experience in the Insurance Industry and is a contract expert. If you would like to sign up to receive her free informational e newsletter, please go to http://www.sharongraeter.com

How Motor Legal Protection Can Help Young Drivers

Motor legal protection, also known as motor legal cover provides a revolutionary way to lower car insurance costs, and can help drivers of all ages. It's certainly not news to anyone that young motorists receive a lot of bad press, and recent findings by the RAC Foundation showed that one in five will be involved in a road accident within six months of starting out. Regardless of who is at fault, these figures emphasise that it is now more important than ever for drivers aged 24 and under to seriously consider covering their backs with motor legal protection.
Comprehensive Cover
Motor legal protection is designed to help you recover your losses in the event of a motor-related accident that wasn't your fault. The policy will pay lawyer fees up to £100,000 to help you recover any uninsured losses (such as claims for personal injury, vehicle repair costs, car hire charges, loss of earnings and any policy excess). A trend amongst young people is to opt for the most basic level of car insurance, third-party cover, to reduce the soaring premiums they're faced with. Motor legal expenses insurance provides a savvy way of increasing your level of cover on top of this, all without breaking the bank.
Confidence
A 2013 survey conducted by One Poll highlighted the lack of confidence many young motorists feel after passing their test. 29% reported feeling completely unprepared to drive alone after passing their test, and considering the statistics stacked against them, it's no surprise many feel this way. Motor legal protection can help relieve some of this anxiety and leave you knowing that, should you be involved in an accident that was not your fault, you'll have the support you need in claiming back your uninsured losses.
Parents
The average price of young drivers' first cars is also a cost that has risen, according to a One Poll survey conducted this year. It shows that, in contrast to their parent's generation, this figure has gone up by £1,225. A likely factor in this is financial support from parents, with 27% of kids admitting that their first car was bought for them. This compares to only 10% of people over 55 receiving help in buying their first set of wheels when they were setting out, and hits home the fact that, in order to protect their investment, parents should be ensuring their children have motor legal expenses insurance.
Shop Around
Many customers don't actually understand the benefits of having motor legal protection, seeing it more as a costly add-on pushed by their insurance providers. Often, this can be true: some companies will charge you as much as £30 for this service. Buying it as a stand-alone product instead can give you the freedom to find a better deal, as some providers will offer it from as little as £6.75 a year.

Get It or Regret It
No-one likes to spend unnecessarily, and managing money when you're young can sometimes seem like an impossible task. But I'm sure many of us have regretted not taking out insurance before it was too late, and with the peace of mind provided by motor legal cover, at least you'll know that you won't be stung by any unexpected fees. When you compare it to the amount you'd have to cough up without this cover, it's a no-brainer.
If you're interested in learning more about Motor Legal Protection and how it can benefit you or your family, visit Best Price FS today.

Underwriting Mistakes Can Cause Your Auto Insurance Rates to Increase!

Last year before it was time to renew my auto insurance, I received a letter from my insurance company telling me my renewal rates would increase by over 30% because I had received two speeding tickets.
I've been driving for over 40 years, and have never had a speeding ticket. I was furious, and decided to look into this myself before complaining to my insurance agent.
There is a website that allows you to research Maryland court cases. You simply type in a first and last name, and can see all cases-traffic, civic or criminal-that a person was involved in since the internet has been in use.
I was able to find out there was another woman with the same first and last name as me, who coincidentally had the same birth month and year as I do. (How scary because of identity theft, but that's a topic for another article.) However, her middle name is different, and she lives in another county in Maryland. She had two speeding tickets, and the dates matched what the insurance company referred to in their letter to me.
My insurance company apparently had found this name & these tickets, assumed it was me and didn't bother to look further to verify that it was me.
I sent a letter to the state Insurance Commissioner, complaining about this mistake that caused me to be put into a higher rate bracket. I also faxed copies of the court information to my insurance agent. Once their error was admitted, my insurance company did reduce my premium, but I decided not to renew with them since they had made such a lazy mistake.
I believe rewarding poor customer service by continuing to do business with that company only invites further poor customer service. It's okay to fire your insurance company, or any company that doesn't treat you like their Number One customer.
The lesson here... if you maintain a good driving record, avoiding accidents and tickets, be sure to read all correspondence from your insurance company at renewal time. Question any mistakes and follow up to make sure you are getting the best rate for your driving record.
It's also a good practice to shop for car insurance every year. I do, and I work with an insurance broker who has access to many different companies. Every year she finds a company that offers me a better deal.
You no longer need to remain loyal to same insurance company year after year. They spend a lot on marketing and advertising to get you to sign up with them, but don't spend the money to retain you as a customer. Shopping online for insurance is great, but you may want to spend the time on a phone call to a broker to find out if you can save more on your auto insurance.
I have a theory that if every driver would shop their rates every year instead of blindly accepting the higher renewal rates, the insurance companies would realize it's cheaper for them to keep their customers and they would reduce their rates for existing customer who maintain good driving records.
Don't let underwriting mistakes cause you to pay more for your auto insurance!

Copyright © 2014 Kay Swann
Kay Swann has over 35 years accounting experience managing the financial departments for several businesses. She grew tired of working for others, and now runs her own business providing consulting and accounting services for small businesses and individuals in the Annapolis area in Maryland.

Car Insurance and the Budget 2014

In India today, many people are earning more money than they were earlier, and are able to afford a higher standard of living. This means that not only are there more cars on the road, there are also a lot of expensive and high-end cars on the road. Unfortunately, the roads in most cities in India are far from perfect, and road rage is not uncommon. This generally leads to cars being bumped and scratched more often than anybody would like. Getting your car fixed is always costly, but luckily it has been made compulsory for all vehicle owners in India to have insurance on their automobiles. While this means that people who buy cars might have to shell out a little extra money for the insurance policy, it is beneficial in the long run, as most insurance policies also take care of damage caused by natural calamities like floods and earthquakes.
The Union Budget 2014 has addressed a large number of issues, some of which are related to the motor industry. The Finance Minister announced that steel prices would be reduced, and the custom duties levied on auto parts would be discontinued. This of course works in favour of the car sector, as the parts used to assemble cars will be available at a lower cost. This straight away means that car prices will probably not see a rise in the coming year. As motor insurance depends on the cost of the car getting insured, it is very likely that the cost of insurance will also remain static in the coming year.
Apart from the policies that directly affect the cost of cars, the Budget has also addressed the issue of insurance in general. The Budget has proposed to increase the Foreign Direct Investments into India to 49%. This was done in the hope that the insurance sector would be easily exposed to international players who operate in large global markets. While this does not necessarily mean that the price of auto insurance will decrease, it does mean that it will not become more expensive.
The changes that have been made so far by the government have all been advantageous to the automobile sector. However, it is important to remember that the Union Budget will only last for another 6 months, and a new Budget will have to be put in place after that. While we hope that the Government continues to take positive steps to help development, it is left to be seen whether the rates of car insurance in India will increase or decrease eventually.

Technology Makes Buying Insurance Easy and Convenient!

Advancement in technology has brought forth significant and positive transformation in the modes of transportation. The speed of movement has increased by leaps and bounds and continuous inventions are further going to add to the existing pace.
The vehicles being launched in the recent times are ultramodern in style and include a variety of features to make the journey easy and convenient. They are also delicate and are prone to numerous risks. Thus it's important to guard them with an appropriate insurance cover.
Many countries got a bad reputation when it comes to road safety. Percentage of fatalities in road accidents is on a rise. Every month approximately 4 lakh people meet accidents. The mentioned figures are sufficient to wake up the concern of people regarding their security. Thus it's a must for everybody to buy the best online motor insurance for their vehicle.
Online Motor insurance provides a cover for cars, trucks, motorcycles, and other road vehicles. The policy also fulfills legal liability arising on injury or death of a third party or property damage caused due to an accident involving your vehicle. It protects your vehicle against financial losses arising from accidents, theft and other natural calamities like cyclone and earthquake. The surety of the vehicle being secure gives peace of mind to the car owner and he is able to focus on more important affairs of life.
Online motor insurance is an effective tool for vehicle owners to guard their asset against unforeseen risks. Vehicles these days are very expensive and they require servicing and maintenance on regular intervals. With an appropriate insurance cover, there is guarantee of your investment staying safe and secure. Motor insurance guards the vehicle against any financial loss resulting from an unforeseen event.
All the renowned names in the insurance industry these days issue digitally signed insurance policies to their customers. The customer is thus able to enjoy easy access to this document from his laptop, computer and even mobile phone. A photocopy of the digitally signed policy, wherever attached, is accepted as an authentic and reliable document. Also there is no restriction on the number, so a customer can always keep additional copies of the same to submit in case of an urgent requirement.
The customer who buys Online Motor insurance receives regular updates from the company about various exciting plans that are being offered. Also he receives auto reminders about the date of premium payment. Such notifications greatly help a customer in planning his expenses in an organized manner.
The benefits of Online Motor insurance are massive. Apart from yielding tax benefits, the option to buy policy online also saves a lot of time of the customer. The policy seeker is not required to visit the company's office. Rather he can complete all the formalities online and also make a payment for the same using online money tools. Most of the insurance companies have high standards of security and are SSL certified. Thus your investment stays safe and helps you successfully in hour of need.

She is an expert writer who has been writing on various kinds of insurance policies. She has been earning and following the insurance market trends closely and wants people to know more about insurance which are there for their benefits only. Read the article as she talks about various aspects of a motor insurance policy and its benefits.