Category ArchiveAuto Insurance
Auto Insurance 11 Jul 2008 03:08 am
Auto Insurance Money Saving Tip
When Do you remove the “Comp” & Collision coverages from your car?
I was talking to a friend about this just the other day. First of all and most importantly, there is no “time” to do this. It has to do with what we call your threshold of pain. The coverage on your car is about the best insurance for all the things it covers. It covers collision and the “COMP” coverage basically covers the car for anything other than a collision. The usual things are not covered, such as, intentional acts, act of war, nuclear detonation, wear and tear and others. Your car (in most cases) will depreciate over time and at some point policy holders remove the “comp” and collision because it just isn’t worth it. This is when you have to figure out your threshold of pain. Here are the economics of it. First you need to determine what is the ACV value of the car. What can the car be sold for? Or most importantly, what will the insurance company pay for the car? There is no sure fire way to get this “right” but there are some ways to get close. First, try looking up the value at NADA to try to determine the “neighborhood” of the price range it will fall into. Be honest about the condition of the car, and use the lower value, remember we are talking about insurance companies here. Try Auto-Trader to see if you can find the exact year, make, and model of your car and try to get as close to the same mileage as your car. This is an excellent way to help prove why you think your car is worth what you think it is worth. Once you determine the value of the car then factor in the following: your deductible will not be paid to you, and look up your collision premium, because you have also paid that out of pocket.
Look at this example: The ACV of your car is $2,000 and you have a $500 deductible, and your collision premium (already paid) was $58, you will only benefit $1,442. Now this number is your threshold of pain number. What this means is, is the $58 savings worth the CHANCE of not getting $1,442? What would you do with the $1,442? For some people who have not had a claim in 10 years, they would much rather take the risk and save the premium because they can live with the POSSIBILITY of having a total loss and not getting any money from the company. Every one’s threshold of pain is different when it comes to money, so it is a very personal decision. It is YOUR policy, YOUR premium dollars your paying so make the best decision for what you are comfortable with. If there is a loan or lien on the car, the bank will most likely not allow removal of the Comp or collision. The State requires liability on any currently registered auto so removing comp and collision will not effect the liability coverages.
Talk to your agent and find out what your premium savings would be and figure out if it is worth the savings.
Auto Insurance 08 Jul 2008 01:06 am
High Gas Prices/ Drive Less and Lower Insurance rates
| I Pulled this article from the Ohio Department of Insurance web site. Check your auto policy to see HOW you are rated. Look for commute, or to and from work, and more specifically how many days per week and how many miles each way. If you stop your daily commute in exchange for car pooling, or public transportation, let your agent know and you could save money on your car insurance as well as fuel costs. | |
| Wednesday, June 25, 2008Driving Less Because of High Gas Prices Could Lead to Lower Insurance Premiums
COLUMBUS — As gas prices hover around $4 a gallon across the state, many Ohioans are driving less, using public transportation or car pooling to get to work. Ohio Department of Insurance Director Mary Jo Hudson is encouraging Ohioans to tell their insurance agents if they are using their cars less, as it may result in a decrease in their auto insurance premiums.
“How much a person drives their car is one of the key factors insurance companies use to determine auto premiums,” said Director Hudson. “Changing your car’s designation from ‘work’ to ‘pleasure’ could result in a lower premium.”
Most insurance companies divide drivers into three categories: pleasure drivers, those who drive 15 miles or less one way to work and those who drive 15 miles or more one way to work. Drivers who drive as part of a carpool may be eligible for pleasure driver status if they drive less than two days a week or two weeks in a five week period. Also, Ohioans who have recently moved closer to their jobs or have switched jobs to a location closer to their home may also be eligible for lower premiums.
A change in designation could save a driver anywhere from 5-15% depending on the insurance company. A quick call to your insurance agent will determine whether or not you qualify for a rate reduction and how much that reduction will be.
Ohioans with questions concerning insurance are encouraged to call the Department’s consumer services hotline, 1-800-686-1526. Additional tips and more information about insurance, including a link to the Insure U web site, can be found at the Department’s web site, www.ohioinsurance.gov.
# # # |
|
Auto Insurance 04 Jul 2008 11:37 pm
The 10 Easiest Cars to Get Insured
I found an interesting article from CarInsuranceRates.com entitled “The 10 easiest cars to get insured.” Which might also translate to the least expensive models for insurance. Each make and model will vary from company to company.
“The first thing an insurance company looks at when offering you a quote is your driving history. Have a spotless one, and you’ll definitely get a better rate than a guy who has a glove box full of tickets.
The insurance companies also considers the sort of car you drive, including its sticker price, the cost to repair the vehicle, replacement value, safety features, and how well it will withstand an accident. The lower the cost of claims for a vehicle, the lower the rates, and therefore the easier it is to get insured.
Here is a list of the top ten least expensive vehicles to insure, that have a sticker price of less than $50k, according to the Highway Loss Data Institute (HLDI):
1. Oldsmobile Silhouette
2. Pontiac Montana
3. Saturn L Series Wagon
4. Chrysler PT Cruiser
5. Saturn L Series Sedan
6. Chevrolet Venture
7. Chevrolet Astro
8. Saturn Vue
9. Jeep Wrangler
10. Oldsmobile Bravada
The HLDI also lists vehicles that are the least expensive based theft, injury and collision claims. The least expensive theft claim models are:
1. Buick LeSabre
2. Mercury Grand Marquis
3. Buick Century and Saab 9-5 four-door (tie)
4. Buick Park Avenue and Pontiac Montana (tie)”
It is always a good idea to call your agent BEFORE you buy and ask for quote on the model or models you are considering.
I found an interesting article from CarInsuranceRates.com entitled “The 10 easiest cars to get insured.” Which might also translate to the least expensive models for insurance. Each make and model will vary from company to company.
“The first thing an insurance company looks at when offering you a quote is your driving history. Have a spotless one, and you’ll definitely get a better rate than a guy who has a glove box full of tickets.
The insurance companies also considers the sort of car you drive, including its sticker price, the cost to repair the vehicle, replacement value, safety features, and how well it will withstand an accident. The lower the cost of claims for a vehicle, the lower the rates, and therefore the easier it is to get insured.
Here is a list of the top ten least expensive vehicles to insure, that have a sticker price of less than $50k, according to the Highway Loss Data Institute (HLDI):
1. Oldsmobile Silhouette
2. Pontiac Montana
3. Saturn L Series Wagon
4. Chrysler PT Cruiser
5. Saturn L Series Sedan
6. Chevrolet Venture
7. Chevrolet Astro
8. Saturn Vue
9. Jeep Wrangler
10. Oldsmobile Bravada
The HLDI also lists vehicles that are the least expensive based theft, injury and collision claims. The least expensive theft claim models are:
1. Buick LeSabre
2. Mercury Grand Marquis
3. Buick Century and Saab 9-5 four-door (tie)
4. Buick Park Avenue and Pontiac Montana (tie)”
It is always a good idea to call your agent BEFORE you buy and ask for quote on the model or models you are considering.