Why do you need to buy non-owners auto insurance?
Posted on September 21st, 2012
It’s common knowledge that if you buy a car, you ought to get auto insurance for it, but to think that you also need to buy insurance for a car you don’t own but merely rent often is strange. Well, not really, if you consider that this insurance covers any damages caused due to an accident to a rented car or due to theft for which you will be held responsible. In such a scenario, if you have bought non-owners auto insurance, you won’t feel the pinch so much as the claims against you can be really high.
For this reason, it makes sense to invest in non-owners auto insurance in either a monthly or yearly plan. But how do you know which one is the best for you? The b
Tags: Auto Insurance, Insurance
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Most States Allow Auto Insurance Scoring
Posted on August 22nd, 2012
Did you know that your auto insurance company can charge you higher rates if you are close to the limits on your credit cards or have filed bankruptcy in the past? In most states, they can. In 47 states and the nations capital, credit-based car insurance pricing is allowed and is commonly used. This so-called insurance scoring has been used for more than a decade, but will be outlawed soon if some opponents have their way. According to Insurance News Nets OAI: Auto Insurance Scoring Bill Highlights Controversial Practice, three Democratic House members have a bill they hope will end the process of insurance scoring.
Currently, when you are looking to get a quote on auto insurance, in most states insurers will look into your financial history before making your quote. They can increase your premium based on your applications for new credit, how close you are to your debt limits, and other financial factors. Many different states have already tried this type of bill on the state level to no avail. If state auto insurance legislation is any indicator of how this bill will fare federally, it has quite a difficult path to follow. Massachusetts is the only state that has passed a recent ban, but it was just an update of an existing ban on this insurance practice.
There are two hotly debated sides to this issue and both have their points to be made. Supporters of insurance scoring say that studies show that people with bad finances tend to file more auto insurance claims and bigger claims than those with a sound financial history. Based on this they say that pricing is more fair and accurate when insurance scoring is used. Without it, those with strong financial backgrounds would be paying more than they should to compensate for those with poor financial histories. Opponents of the program say that lower income drivers are already struggling and this will catastrophically hurt those who are trying to do the right thing by carrying auto insurance. Well keep you updated with where this bill goes.
Tags: Auto Insurance, Insurance
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CA Auto Insurance Code Seems Like No-Brainer
Posted on July 11th, 2012
After reading The San Francisco Chronicles What insurance companies can do to you by Jon Carroll, I am left scratching my head. Its quite apparent that comparing auto insurance companies is more important than ever, not only for good premium prices, but to find a company with ethical practices. The author received a legal form letter from his auto insurance company after filing a claim detailing Insurance Code 790.03.
The code has long, wordy sentences that seem to go around in a circle without really getting to a definitive point. Carroll says that it basically infers that auto insurance companies should not lie to their consumers or cheat them at all. But it is quite vague and doesnt say that insurance companies should never lie or cheat. It states that they shouldnt do it as a common practice. Its almost saying that it is okay to deceive consumers once in awhile, just not regularly.
Sixteen items are listed on the form detailing what California auto insurance companies should not do. One of the items says that insurers should not push consumers to take legal action in order to receive their settlement if the court will simply deem that what the consumer was fighting for was actually a fair amount. To me, the chances that someone will take an insurance company to court to prove they were expecting a fair amount of reimbursement is absurd. That costs a lot of money.
There is even a code saying that insurance companies shouldnt alter your paperwork, making it so that you dont get paid as much or at all. The author points out that this should actually be fraud or illegal, not simply a frowned upon practice. The bottom line is that you want to make sure you choose an auto insurance company that is ethical and follow all of your claims closely. Lets hope that these Codes dont actually need to be used by many consumers in fighting their insurer.
Tags: Auto Insurance, Insurance
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Tips About Auto Insurance Companies
Posted on June 3rd, 2012
Some basic tips for understanding auto insurance and choosing auto insurance companies are available on CNNs website through a collaboration with Fortune and Money. They first want you to know that you are often a statistic, rather than a person. Auto insurance companies tend to see you as a risk based on certain risk factors like your job and where you live.
Even if the coverage appears the same, prices are always different through different auto insurance companies. Shopping around is one of the best tips related to finding the best auto insurance premiums. Dont shop only on price though. Just because a company has the cheapest price, it doesnt mean that they have quick and reliable customer service. Those are very important as well.
Its smart to get more than the minimum coverage required in your state because most state requirements are really just the bare minimum. Always ask your insurer for discounts. They are available and most companies will lower your auto insurance rates if you have a good driving record and you simply ask.
Some auto insurance companies force you to use replacement parts that are not made by the original equipment manufacturers. This can cause problems in your vehicle, so make sure that your insurer will cover original parts. The article reminds the reader that while the insurance company does want you to recoup your financial losses, you may not have the same ideas of what is fair compensation. Make sure that your plan is updated and that you know all of the details before filing a claim.
Tags: Auto Insurance, Auto Insurance Companies, Companies, Insurance Companies
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The essential details about teen auto insurance you need to know
Posted on May 29th, 2012
The teen drivers now can also get insurance. This insurance for the teenager drivers are a bit costly than the normal one. There are certain reasons for the teen auto insurance to be comparatively more expensive. The first and most important reason is that the teen aged drivers are considered as somewhat not much experienced so there is always more possibility of them to meet with an accident. As the probability of the teen aged drivers to have an accident is most so the rates of the teen auto insurances are always very high. It has been reported several times that the normal premiums of the car insurance has been raised to over 50% when it becomes teen auto insurance.
Tags: Auto Insurance, Insurance, Teen Auto, Teen Auto Insurance
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More transparency needed in pricing of Michigan No-Fault auto insurance
Posted on April 13th, 2012
Michigan drivers know very little about why Michigan No-Fault auto insurance companies charge the high prices they do.
We deserve to know more. Much more.
I’ve been an insurance lawyer for almost 20 years. Here’s what I wish I could tell everyone: in Michigan, No-Fault insurance companies can effectively charge whatever they want, for whatever reason they want, and make as much money as they want, with pretty much absolute impunity. (MCL 500.1615(5); 500.2109(1)(a))
In other words, want to know why we have such expensive insurance in Michigan? That’s why.
For example, even if a Michigan Insurance Commissioner were inclined to rein in auto insurance prices, Michigan law makes it practically impossible to do so. Excessive
Tags: Auto Insurance, Insurance
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Shop for the most affordable auto insurance rates
Posted on March 19th, 2012
Auto insurance can be your saving grace when it comes to covering damages or repairs that result from auto accidents, theft or acts of vandalism. However, many drivers balk when it comes to choosing a policy because there are several options available to consumers. When it comes to choosing the right auto insurance policy for you, its important to know what youre looking for and weigh your available options carefully.
Several factors will influence your premium, some of which are under your control and others are out of your hands. The latter includes your age, gender and location. However, you can control other factors, such as your driving record, credit score and the type of car you drive.
Tags: Auto Insurance, Insurance
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