Posts Tagged ‘auto insurance deductible’

Auto Insurance Tips: Mechanical Breakdown Coverage

Tuesday, June 26th, 2012

Failing to plan for mechanical breakdowns is one of the quickest ways to find yourself in dire financial straits. While most of us purchase auto insurance to protect ourselves from a calamity, you will still want to consider mechanical breakdown insurance through your car insurer, dealer, bank or credit union. A standard auto insurance policy does not cover wear-and-tear maintenance should you need new major repair work.

What Does Mechanical Breakdown Insurance Cover?

You will need to save money on the side to cover wear-and-tear repairs like:

  • Transmission
  • Brakes & Rotors
  • Engine Parts (Oil Pump, Pistons, Timing Gears, Flywheel, Valves)
  • Drive Axles & Joints
  • Electrical Components
  • Cooling / Air Conditioning
  • Fuel System
  • Steering

If your vehicle should need towing or if you needed a rental car in the meantime, you will be glad to know this type of auto insurance would have you covered. You often will see roadside assistance and lock-out service added on as well.

How Much Does Mechanical Breakdown Auto Insurance Cost?

Unlike traditional auto insurance, your rate does not fluctuate if you make a claim. Instead, service contracts are based on the type of vehicle you own, the length of coverage, the number of miles driven, and the level of protection you desire.

Levels of Insurance

For instance, Mercury offers four levels of insurance all the way up to Platinum, which covers things like brakes, tires, shocks and windshield wiper blades. Like regular auto insurance, choosing a higher deductible (if possible) will lower your cost. It is important to know that this insurance is fully transferable should you decide to sell your car. If you do not want to transfer the policy, you will get a check back for the prorated amount of unused insurance.

auto insurance breakdown

Does your auto insurance policy cover normal wear and tear? You might want to consider adding this on. Until then, why not shop for a better auto insurance quote?

Auto Insurance Claims Adjuster Advice

Monday, June 25th, 2012

You may feel as though the auto insurance claims adjuster has arrived on the scene to act as your own personal lawyer. “Here is someone who has my best interests at heart because I’m the client,” you may think. It’s not that a claims adjuster is a crook, but keep in mind that this person’s job is to settle the case as quickly and affordably as possible. It’s up to you to ensure you get a fair deal.

Rule #1: Say As Little As Possible.

Talking too much is the biggest mistake people make. Drivers who’ve just been involved in an accident are often blabbing emotionally — which may not be the best recourse. Claims adjusters love to hear admissions of guilt and apologies, details that contradict what bystanders say, complaints about whiplash or what a “piece of junk” your car is, or background information about what a horrible day you’ve been having. Anything you say can and will be used against you!

Rule #2: When In Doubt, Hire Counsel.

You don’t have to answer questions that seem loaded. For instance, an auto insurance adjuster might ask:

  • How could you have avoided the accident?
  • How much do you think you are responsible?
  • Do you think the weather affected you?
  • Did you have any previous injuries or pain before the wreck?

Ask that all questions be directed through your legal representative first.

Rule #3: Take Your Time.

If you settle too fast, you may be forfeiting some of your consumer protections. An auto insurance claims adjuster might offer you a $1,000 check on-the-spot to fix your vehicle, plus another $500 for the inconvenience. But what if you have a soft tissue injury that hits you three days later like a ton of bricks? Once you take the money and settle, you are no longer entitled to compensation. Keep in mind you may be entitled to rental car reimbursement, which could buy you more time.

Auto Insurance Claims Adjuster Advice 1

Get a fair shake by surfing auto insurance quotes today.

Choosing The Right Auto Insurance Deductible

Friday, June 22nd, 2012

What deductible would you like — $250, $500, $1,000, $1,500? You’ll notice that is one of the questions we ask you when you’re looking up a free auto insurance quote online. Your answer to this question could save you as much as 40 percent, according to the Insurance Information Institute. By assuming more risk, you stand to save a lot.

What Is A Deductible?

In the world of auto insurance, a “deductible” refers to how much money you are willing to pay, should you get into an  accident. The deductible is the amount you pay before your insurance protection kicks in. So, if you rear-ended someone and caused $10,000 worth of damage, a $1,000 deductible policy would mean that you pay for the first $1,000 out of pocket and insurance will cover the other $9,000. Of course, when you file a claim, your premium will likely go up. Some people with high deductibles will not even bother to file a claim for something like a broken window or cosmetic damage from a hit-and-run.

When To Choose A Higher Deductible For Auto Insurance

Most personal finance experts would advise you to save a cushion in your bank account and opt for the higher deductible. If you have good credit and access to low-interest loans or more than $1,000 in your savings account, this is wise. If you are a relatively good driver with a clean record and rarely — if ever — get into an accident, then you are the prime candidate to reap great savings with a higher deductible.

When To Choose A Lower Auto Insurance Deductible

On the other hand, some people are not very financially disciplined and rely on a bi-annual bill in the mail to help them sock away savings. These people would need a low auto insurance deductible to ensure they are fully covered. If you’ve ever needed to file more than one claim per year, you will want a lower deductible. If you have young drivers on your policy, live in a high-crime urban area, or live in a place that is constantly struck by natural disasters, you will probably want to pay a little more on your premium to know that you are covered for multiple events each year.

Choosing The Right Auto Insurance Deductible 2

Lots of disasters in your area? Better stick with a low deductible unless you have a good savings cushion.

Theft Drives Up Auto Insurance Rates in Washington State

Friday, June 15th, 2012

Washington state is a hotbed for auto thefts, according to National Insurance Crime Bureau statistics. Even though there has been a 1.6 percent decline in auto thefts since last year, Spokane is still fourth-highest in the nation for auto theft rates again. Yakima jumped five places from the 10th spot to the 5th. The Seattle-Tacoma-Bellevue area is responsible for 54 percent of all stolen vehicles in the nation — up 18 percent since 2009. This is bad news for Washington consumers    who are looking for affordable auto insurance rates.

How Many Vehicles Are Stolen In Washington?

Last year, 28,833 vehicles were reported as stolen. That’s 79 vehicles stolen every day or more than 3 per hour! NW Insurance Council President Karl Newman says, “American consumers continue to pay billions of dollars each year for auto theft.” He explains that the cost of replacing stolen vehicles and repair the recovered vehicles gets reflected in our auto insurance rates. It costs Washington auto insurance providers more than $170 million per year, in fact, with most reimbursements costing around $6,500.

How Can Consumers Protect Themselves?

When buying a new vehicle, consumers should elect for anti-theft technology. The NICB recommends four layers of protection:

1. Common Sense – Which means removing keys from the ignition, locking your doors, closing your windows and keeping valuables out-of-sight.

2. Warning Device – Which means choosing a steering column collar, audible alarm, brake lock, VIN etching, or decaling.

3.  Immobilization Device – Which means smart keys, fuse cut-offs, kill switches or wireless ignition authentication.

4. Tracking Device – Which means enabling the vehicle to be tracked via monitoring station.

Sick of Overpaying on your Auto Insurance?

You may be able to save thousands off your current auto insurance rate by switching providers. It is a very competitive market out there. It will only take you a few moments to enter your information into the search engine to get the best possible deal.

WA auto insurance

Protect yourself by adding anti-theft protection to your vehicle and shopping for the best auto insurance rates!

5 Reasons To Shop Around For Auto Insurance

Thursday, June 14th, 2012

Everyone is looking to save money these days. Taking just a few moments can save you hundreds — if not thousands — on your auto insurance policy. Here are five situations where shopping around for the best rates online is wise.

You Just Got Married.

In all your excitement about the Big Day and your Honeymoon, you may have forgotten that marriage opens up an opportunity to potentially save money on your auto insurance policy. Most companies offer multiple car discounts. If you get your homeowner’s insurance or life insurance through the same company, you will be eligible for a multiple line discount as well.

You Just Moved.

If you are moving to the suburbs or a more favorable part of town, you can save money on your auto insurance rate. National studies in big cities find that the discrepancies can vary by the hundreds of dollars!

You Just Retired.

Statistically speaking, retirees drive far less than their commuting peers. You may be eligible for special discounts if you are 55 and older or recently retired. Furthermore, your decades of driving experience and years of clean records can stack up in your favor too.

You Got A New Job.

Engineers, scientists, mathematicians, educators and military members statistically get in fewer accidents and are rewarded with lower rates at some auto insurance companies.

You Got A New Car.

New cars can sometimes increase your rate if you were driving your old junker around with collision insurance. However, increased safety features and the willingness to pay a higher deductible can offset those increases and actually end up saving you money.

5 Reasons To Shop Around For Auto Insurance 3

Retire recently? You could be saving on your auto insurance rate!

Auto Policy 101: What Is A Deductible?

Wednesday, April 11th, 2012

An auto insurance deductible is the amount of money you’re responsible for paying before your insurance covers the rest of the damages incurred in a claim. This amount may range from $100 to $1,500, depending on the state and insurance provider. So, for example: if you have a $250 deductible and you are in an accident that caused $2,500 in damages, you will pay $250 and your auto insurance company will pay $2,250.

Insurance Deductible Explained

So why would anyone choose to pay $1,000… if they could get away with paying only $100 instead? One way you can lower the total cost of your annual auto insurance coverage is by choosing a higher deductible. Since you will cost the insurance company less should an accident occur, they are willing to offer you a lower rate in return. Basically, you need to calculate the risks associated with owning and operating a vehicle.

  • What is the likelihood your car will be vandalized?
  • What is the likelihood someone will steal your belongings from your car?
  • What is the likelihood you’ll be involved in an accident?
  • What is the likelihood a natural disaster will cause damage to your car?
  • What is the likelihood you’ll hit a deer or another type of animal?

You want to make sure you are able to save enough money in reserve to cover whichever auto deductible you choose.

Other Factors For Auto Insurance Deductibles

In some cases, you won’t have as much freedom to choose your own deductible. For example, your car insurance company may require you to pay a higher deductible if you are considered a “high risk driver.” If you have had several incidents over the past three years — including traffic accidents, DUI, speeding violations, or reckless driving offenses, then you can bet you’ll be charged a higher deductible on your auto policy.

When To Pay A Deductible

Most auto insurance companies only ask you to pay a deductible in the event of an accident or claim. So you will not need to pay this money  up front when you buy your new auto policy. If you want to buy a particularly comprehensive policy or additional collision coverage, you may need to pay along with your annual premium, although this is rare.

auto insurance

How Do I Choose an Auto Insurance Deductible

Tuesday, February 28th, 2012

All consumer interested in buying coverage will need to choose an auto insurance deductible. This is the amount that a policyholder agrees to pay him or herself. Auto insurance providers offer policies with deductibles at varying levels, ranging from $100-$1,000, depending on the state where the policy was issued.

When an accident causing physical damage to the vehicle occurs, the insurance company will pay for it, up to the amount of coverage listed on the policy. The policyholder is responsible for paying the policy deductible, and this amount is deducted from the insurance company’s portion. If the damage caused in an accident is $2,000 and the policy deductible is $500, the insurance company will pay $1,500 and the policyholder is responsible for the remaining $500.

Types of Auto Insurance Policy Deductibles

An auto insurance policy will have a policy deductible for the collision and comprehensive portions of the policy. The collision coverage pays for damage caused to the car when it strikes another object or someone hits the car and leaves the scene. Comprehensive insurance pays for damage caused by an event other than a collision, including:

  • Falling Objects
  • Fire
  • Hail
  • Hitting an animal
  • Theft
  • Vandalism
  • Wind

The deductible for each part of the policy does not have to be the same amount. For some policyholders, it may make sense to set a higher deductible for the collision part of the policy and keeping the deductible on the comprehensive coverage low.

Auto Insurance Deductible and Premium Rates

The level of the policy deductible has an impact on premium rates. Policyholders who agree to pay a higher amount toward settling a claim personally can qualify for lower premium rates. A person who decides to buy a policy with a $1,000 deductible will pay less for coverage than someone who has decided to limit the policy deductible to $100.

Choose an Auto Insurance Deductible

When shopping for auto insurance coverage, a driver should make a point of comparing rates for policies with different deductible levels. A consumer can go online to request quotes from a number of insurance companies. Once the quotes have been received, the driver should review them carefully by sorting them by deductible level. Taking the time for this step makes it easier to find the company which can provide the coverage the driver needs at the best rates.

An effective strategy for drivers who choose a high auto insurance deductible is to calculate how much they are saving each year and putting that amount of money into a savings account. The money can be used to pay the deductible if an accident or other type of loss occurs and the policyholder needs to make a claim.

This strategy will take some discipline, but it can make the financial cost of having to make a claim against an auto insurance policy a bit easier to manage. The drivers who will get the most benefit from putting the money they save in premiums aside are people who choose a policy with a high deductible.


Save Money on Your Virginia Auto Insurance by Raising Your Deductible

Thursday, February 3rd, 2011

One effective way to save money on the cost of your Virginia auto insurance coverage is to raise your deductible. This is the amount you agree to pay out of pocket before your insurance provider will pay out anything on a claim that you make. A policyholder who decides to pay more toward a claim personally is a lower risk for insurance purposes, which means that he or she will be able to get lower premium rates.

Before you decide to raise your VA auto insurance deductible, consider your personal financial situation. You want to be sure that you don’t set the level so high it will wreak havoc with your budget if you have to make a claim.

Another important consideration before you raise the deductible on your Virginia auto insurance policy is whether the amount you will be saving on premiums is worth agreeing to pay  a higher deductible. Make a point of getting quotes from a number of companies at different deductible levels so that you know exactly how your rates will be affected.

Once you have the numbers in hand, you can make the right decision about what deductible is right for you. If you are working with a tight budget and paying a higher deductible would be a problem, compare rates to find the insurance company that can give you the best pricing on one at a level you feel comfortable with.