Car Insurance

Severe storms can cause enormous property damage to your home. They can also do the same thing to your car. With storms getting worse, what can you do? Take a look at your insurance policy. “Too often, people don’t notice they lack certain types of coverage until they try to make a claim,” says Ron Berry, seniSevere storms can cause enormous property damage to your home. They can also do the same thing to your car. With storms getting or vice president of the Council of Better Business Bureaus.

In fact, the number of reported claims for vehicle losses due to severe storms nearly doubled in the first five years of this century, according to ISO’s Property Claim Services (PCS) unit, the recognized authority on insured property losses from catastrophes in the United States.

Fortunately, the Insurance Information Institute (I.I.I.), a nonprofit organization, says comprehensive coverage will reimburse you for loss due to fire, falling objects, storms, vandalism, animals and floods.

Comprehensive insurance usually has a $100 to $300 deductible, though you may want a higher one to lower your premium. Comprehensive insurance will reimburse you if your windshield is cracked or shattered.

“But, even if you have comprehensive coverage, it is not always guaranteed to meet your individual needs,” says Carolyn Gorman, vice president of the I.I.I. “For example, you may be surprised to discover that after a storm your auto insurance does not automatically cover the cost of a replacement rental car while your car is in the repair shop or you wait for authorization for a new car.”

She added that an individual could pay as much as $1,000 to rent a replacement car. “Rental reimbursement coverage, which is only a couple of dollars a month, covers the cost of a rental car while your car is being repaired or you are waiting for authorization for a new car. Renting a car for one day can cost more than one full year’s coverage for rental reimbursement,” Gorman said.

The more you know about insurance and how it works, the more you’ll be able to save off your premiums. The good news is that www.kanetix.ca has compiled a list of the most common money-saving tips to get you started.

Insure all your cars on the same policy

Most insurance companies offer a “multi-car discount” for customers who insure more than one car on the same policy. This alone can bring you a savings of up to 10 per cent!

Insure your home and car with the same insurer

You can get up to 5 per cent off your premiums if you insure your car and your home through the same insurance company. This is commonly referred to as a “multi-line discount” and is offered by most insurance companies as an incentive to get your home insurance business too.

Increase your deductibles

A deductible is the portion of an insurance claim you agree to pay. Your insurance company picks up the rest. By taking on more financial responsibility, the insurance company considers you less of an insurance risk and will adjust your premiums accordingly.

In other words, the higher the deductible you choose, the lower your insurance rate. How much are we talking about? That depends, but online quotes through www.kanetix.ca show that increasing your deductibles from $500 to $1,000 you could save about 5-10 per cent!

Many auto rental companies include basic automobile liability and standard comprehensive insurance protection, including theft insurance, as a part of their service without added charge.

* Personal Accident Insurance (PAI) is optional at an additional charge. This provides both life and medical insurance for the driver and passengers. But check your personal car insurance policy-you might already be covered.
* Personal Effects Coverage (PEC) is also optional at an additional charge. It covers loss of, or damage to, personal property, such as luggage and cameras, in the car, with some limitations and exceptions. You should ask what is covered and what the reimbursement limits are.
* Collision Damage Waiver (CDW)-For a daily charge, the rental firm may offer you a CDW. CDW is not insurance. However, if you take it, the company waives the right to collect the deductible on collision insurance from you. Again, check your personal car insurance policy to see if it covers damage to rental vehicles. The CDW is optional, and it is illegal for a company to require you to purchase it.
* Loss Damage Waiver (LDW)-Provides coverage against theft and natural disasters, such as floods and lightning. Each company has its own limitations. You should ask what is covered and to what extent.

It is a good idea to examine, and be sure you understand, the insurance coverage and any waivers offered by the renting company. This is especially important when advertised rental rates are considerably lower than usual.

Be sure you give the vehicle a thorough examination for unusual dents and scratches before you take it out. Any damage should be noted on the contract before you leave the lot, even if this means going back into the rental office to make sure the damage is acknowledged in writing. Also, make sure that the spare tire and tools are in the trunk.

Do: Read and understand everything printed on the contract. Check the back of the contract-this is usually where the conditions and limitations are stated.

Don’t: Rent from a firm that stalls or refuses to provide insurance information, or rents vehicles with improper insurance coverage.

Do: Review your own personal auto coverage and major credit card member benefits.

Don’t: Rent from a company that refuses to provide specific information on what its waivers cover, and what exceptions apply.

With hundreds of auto insurance companies writing policies offering a variety of coverage options, shopping for a policy has become such a confusing ordeal that many people don’t bother to comparison shop, ending up paying more than they need for premiums. Driving expensive high-performance cars, getting stopped for moving violations, putting a lot of miles on your car each year, and having a young driver at home can run up your insurance costs sharply. But how big a premium you pay also depends on the levels of coverage you buy, so consider your choices carefully.

There are discounts available to auto owners that could help shave dollars off your premium. In most instances, you’ll have to inquire about the rate reductions for which you may qualify; agents don’t always volunteer this information. To help you save money on your premium, the Better Business Bureau suggests you consider the following:

* Combine policies with one carrier. Most owners with two or more cars will know that it makes sense to insure all their vehicles under one policy. But you can also get a multi-vehicle discount if you insure a trailer or recreational vehicle on the same policy as your car. Also, many auto insurers will reduce your car premium if you buy other coverage from them, such as, homeowners’ and life insurance. But don’t switch carriers unless the rates for the other policies are competitive.

* Buy a car that costs less to insure. Expensive high-performance cars are fun to drive, but they’re costly to repair and the premiums can run two to three times higher than less expensive cars.

* Equip your new car with safety gear. An approved alarm system or other devices that deter thefts can get you a savings of five to ten percent. Air bags for both driver and passenger can reduce injury, and costly medical bills in an accident, and may qualify you for a discount.

* Maintain a good driving record. No claims or traffic tickets for 36 months may qualify you for a reduced premium. Drivers over the age of 50 with a clean driving record may also claim a rate reduction.

* Use public transit or a carpool to get to work. Drivers who hold their driving below 7,500 miles a year generally qualify for a discount, and lessening or eliminating your use of a car to commute can trim your premium.

* Having a teenage driver in your home with a good academic record, can qualify you for a discount. Also if your child attends a college that is more than 100 miles from home and doesn’t take a car along, that may qualify you for a discount. If you own more than one vehicle ( and your insurance company allows it), add the teenager to your policy as the occasional driver of your least expensive car - and make sure he or she drives that car only.

Who sells auto insurance?
You can buy car insurance in different ways, from a variety of sources, depending on the insurance company. Does it make a difference how or where you buy? It might. Let’s take a look.

There are essentially four ways to purchase auto insurance. They are:

* From an agent (employed representative) of an insurance company
* From an independent agent
* From an online broker
* Directly from an insurance company

Some insurance companies use only one of these methods of selling to customers, others may use a combination of methods. Let’s look at the advantages and disadvantages of each.

From an insurance company agent
Some national or regional auto insurance companies employ agents who are commissioned sales and support people, and who work directly for the insurance company from small offices located around the country. Allstate, State Farm, and Farmers are examples of companies who work this way. Some people feel that there are benefits to being able to talk to a familiar voice regarding policy questions, billing concerns, renewals, and claim advice. Good agents will even call customers about new discounts or program options that offer cost savings. Just be aware that agents don’t administer claims.

From an independent agent
This type of agent is an independent business person or company, often called a broker or agency, that represents a number of different insurance companies. This is most common way that auto insurance, and other types of insurance, are sold in the United States. Many insurance providers only sell through independent agencies or insurance brokers, and don’t have exclusive agents working for them. The benefit of using an independent agency or broker is that they can do your shopping for you and find you the best insurance that meets your needs. There are thousands of local insurance brokers around the country. Check your telephone yellow pages for listings.

From an online broker
With the coming of the Internet, many existing local brokers took their services online. New and larger national brokers also set up shop and began to offer insurance comparison shopping and other services online. These companies all offer coverage from major insurers such as Hartford, GMAC, Travelers, and many others. Some companies, such as Insurance.com , offer instant free insurance quotes at the touch of a few buttons on your computer keyboard. Many of these sites allow you to compare companies, learn about insurance basics, provide expert advice, and buy insurance products without leaving the site.

Directly from insurance provider
Buying directly from an insurance company wasn’t very practical until the Internet came along. Before, you always had to go through an exclusive agent of the company, or an independent agent. Now, companies like GEICO and Progressive, provide convenient web sites that allow customers to do research, get quotes, buy coverage, and even submit claims right from the web site. This is one of the most significant advances in the insurance industry in a long time.

After you choose a company
Many of the differences between car insurance companies are hidden in the details of their policies. Before you sign, make sure you read and understand these details. If you have questions or concerns, get it resolved before you sign. Later may be too late.

Also understand that, regardless of where or how you buy your insurance, claims are always handled directly by the insurance company, not the agent or broker from whom you may have purchased.