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Monthly Archives: October 2017

All about Auto Insurance Renewal

The countdown for renewal date starts as soon as the policy takes effect. In terms of renewal period, auto insurance policies are available in two choices:

· Annual Policy: an auto insurance policy that is valid for one year.

· Semi-annual Policy: some policies are valid for only 6-moths period. For policyholders, 6-months provide the chance to improve DMV records and reduce the premium for the next renewal date.

Auto insurance companies have the obligation to notice policyholder about renewal information. They can send it via mail or email within 45 – 30 days in advance of renewal date. Unless policyholders want to make changes to the current policy, renewal process should be quick and easy. Nonetheless, it is best for policyholders to do their due diligence and check for errors or unexpected surcharge. Before the renewal takes place, please make time to:

· Review the policy: the best time to verify discounts or make changes to coverage is on renewal date. It becomes more important when policyholders have practiced safety guidelines from the insurer as a requirement for discount eligibility. Auto insurers often reward good customers with lower premium as well. In many cases, it takes an insurance agent to see potential changes in the policy.

· Make payment: whether policyholders want to continue or cancel the policy, the best time to notify the insurer is on renewal date (or several weeks before). Some carriers do not allow for grace period on renewals, so they can cancel the policies because there is no payment confirmation. Even when policyholders want to switch to new carrier, it is important to notify the current insurer to avoid fines.

Premium Surcharge

An increase in premium rate is not uncommon. It happens for two main reasons. First, the insurance company increases the base rate. In this case, all policyholders should get premium surcharge. Even good drivers with clean records should pay more under this circumstance. Another reason is that the policyholder has higher risk than before in the previous period. Traffic tickets and bad credit score can lead to premium surcharge. Auto insurance claims for an at-fault accident almost always increase the premium as well.

Changes before Renewal

Insurers allow policyholders to make changes in the policies between renewals; this regulation applies only for auto/car insurance policy. Other vehicles such as RV, boat, and motorcycles may not have this option. Changes in policy for examples coverage omission or vehicle removal from the list can offset the premium surcharge from bad DMV records. In worst scenario where policyholders have records of involvement in accidents that cause severe injuries or deaths, the rate can go very high beyond affordability. To compensate for expensive premium, policyholders can choose to purchase only state’s minimum coverage requirements.

Odd Surcharge

There are times when auto insurance companies add small amount of money to the bill. It is normal for semi-annual policy with which insurer adds renewal fee. Late payment is also punishable by small fines (from 5 to 15 dollars). Late fee is one time fine, which means it will disappear as policyholder pays on time the next month. Anytime there is odd surcharge without information, it is good idea to ask helps from insurance agents. The additional fee is possibly a mistake to waive.

Auto insurance policy is not a one-time purchase effective for lifetime; all are subject to changes and renewals. The idea is to give the chance for good drivers to get lower premium and punish bad driver with premium surcharge. Cancellation is also common because the policyholders have DUI or felony convictions.

Information about Classification of Vehicles Insured

Act Policy

An Act Policy covers all risks for which a policy is necessarily to be taken by the owner of a vehicle under the Motor Vehicles Act. According to this Act, a policy must be taken to cover any liability which may be incurred by the insured in respect of the death of or bodily injury to any person caused by or arising out of the use of the vehicle in a public place. The extent of the amount to which a policy should be taken is also specified in the Act. Again a policy of insurance is also necessary to cover any liability arising under the provisions of the Workmen’s Compensation Act 1923, in respect of the death of or bodily injury to any paid employee engaged in driving or otherwise in attendance on or being carried in a motor vehicle. All these provisions together with the exceptions are printed on the policy itself. It should be seen that insurance is compulsory as to personal injury only and not as to damage to property.

Third Party Policy

This policy covers not only those third party risks for which an insurance policy is legally necessary as explained above but also covers such risks for which the insured may be held liable under various laws, such as Fatal Accidents Act 1855 and common law. Here the policy includes also the damage to property of third parties for which the insured is liable. The insurer undertakes to pay in addition to the compensation, all sums including claimant’s costs and expenses for which the insured becomes legally liable.

Comprehensive Policy

A comprehensive policy covers a wide variety of risks under single coverage. There are some very common risks which alone are covered by this policy and if any other risk is to be covered it can be added to the risks insured after the payment of extra premiums. A comprehensive policy for private cars usually covers the following risks:

(a) Loss of or damage to car. The car including necessary Lamps, Tyre’s, and Accessories thereon is insured against loss or damage by accidental external means, fire, explosion, self-ignition, lightning, frost, burglary, housebreaking, theft, malicious act and in transit by road, rail, inland waterway, lift or elevator.

(b) Removal charges in respect of removal of the car to and from the premises of the nearest repairers for any accident up to a certain limit.

(c) Third party liability, i.e., risks covered in third party policy.

(d) Costs and expenses incurred with the consent of the company.

(e) Repair charges for the car due to accident for which company is liable upto a certain limit.

(f) Medical Expenses up to a certain limit incurred in connection with injuries sustained by the insured or any occupant of the car.

Tricks To Lower Auto Insurance

Raise Your Deductible

Instead of cutting your coverage, you can save money by increasing your deductible. This means that if you are in an accident, you will pay a higher amount out of pocket before the insurance coverage kicks in. Keep in mind that you shouldn’t raise your deductible so high that you can not pay it if an accident does happen. Most people can see a significant change in their premium amounts by raising their coverage amounts by several hundred dollars per year.

Ask About Discounts

You may be surprised to find how many discounts are available if you just ask! Many people don’t know this, and pay full price. For example, you may qualify for a decrease in your insurance based upon how much you drive your car, where you park the car at night, or even where you live! In some cases, having an alarm on your car can also earn you an insurance discount. For young drivers, taking a class on driver’s education or on the road training classes can also help to lower your insurance rates.

Go Insurance Shopping

If you do not like the rates that you are offered by your insurance company, you should go shopping. You can get quotes from other companies online quickly and easily. Of course, make sure that you are keeping the same amount of coverage before comparing costs. Some companies will actually assist you in comparing policy costs! In this case, you can shop for insurance, get personalized attention from an agent, and save money at the same time.

Some Types of Insurance Settlements

Insurance Settlements

Just like all other cases, insurance claim settlements vary in outcome. There are a few considerations to be aware of before moving forward with an insurance auto accident claim. For example, if you sustained only minor to moderate injuries, and only require a few doctor visits and check-ups, then a simple insurance claim should cover your damages. Damages include hospital bills, medical expenses, medication, and property damage. With regards to property damage, most insurance companies will pay to cover repairs and paint; but in the case of high-end cars that are expensive to repair, you may not receive an offer from the insurance company to cover all the related and incurred expenses following your accident. If this happens, it might be in your best interest to pursue an out-of-court settlement with the help of a licensed attorney, or take your case to court. Insurance companies want to settle as soon as possible, but quick settlements can be a mistake. This is because once a person signs and accepts the offer, the case is immediately close and cannot be brought back up ever again. If more injury or costs come up after the settlement is closed, the insurance company is not obligated to cover those additional or prolonged expenses. This is why it is important to hire a licensed attorney to facilitate your claim.

Out of Court Settlement

For claims that cannot be sufficiently covered by an insurance settlement offer, an out of court settlement through attorneys may be necessary. In order to receive the compensation that will fully cover all related expenses, medical and property damage, you must take your claim to a lawyer so they can put together a case to present it to the at-fault driver’s insurance company or other opposing party. Out-of-court settlements have a few advantages, like flexibility. There is no insurance policy limits to abide by or restrict a case, so you can pursue additional compensation for more related expenses, like time of work, lost wages, pain and suffering, and more. Out of court settlements are best for more serious accidents, damages, and injuries because more compensation can be recovered. For less serious cases, it is easier to just accept an insurance claim settlement.