auto insurance deductible

We would all like to save money when it comes to buying auto insurance, but, as my mother always told me, don’t be penny-wise and pound foolish.  If you have never purchased auto insurance before, or even if you have, you should be aware that one of the important decisions you will have to make is at what dollar amount to set your collision and comprehensive deductibles.  For these two types of coverage, the deductible amounts will be a determining factor in how much your premium is. 

A central rule to remember with auto insurance is: the higher the deductible, the lower the premium–but the more you’ll pay out of pocket in case of a claim; the lower the deductible, the higher the premium–but the less you’ll fork over if you have an insured claim.

All auto insurance policies that cover collision and/or comprehensive have a deductible. The deductible is the part of your policy that you are responsible for paying. Auto insurance policies don’t simply take care of all of your damages or expenses. You are required to pay for some of the damages, but that amount depends on your deductible. Deductibles vary by state, but are most often in amounts of $100, $200, $500 or $1,000. How does it work?  If you are in an accident that causes $3000 worth of damage to your car, and your deductible is $500, you are required to pay the $500 and the insurance company will take care of the remaining $2,500.   If you carried a $100 deductible, you would pay the first $100, and then your insurance would pony up the remaining $2,400.

How to decide
It’s not always easy to decide how much you are willing to pay now (for your premium) versus later (for your deductible) should you need to make a claim.   Some of the factors to take into consideration are your:

•    income
•    credit
•    savings
•    comfort level
•    age of your car
•    driving history
•    premiums

Think about your household income, credit available and your personal savings. If you were to experience a car accident today- what amount of money would you feel comfortable paying as your deductible?  In other words, what do you have in the bank or available on your credit card, and how much can you get your hands on if you need to that won’t have a huge impact on you or your family?  If your current deductible is higher than that amount–make it lower! If you could easily afford to pay more–you might want to increase your deductible in order to lower auto premium.

Much of it has to do with risk.  Are you willing to take the risk by having a large deductible that you won’t have an accident, or if you do, that you’ll be prepared to cover that amount?  Are you comfortable with that, or are you going to fret over it? 
So you see that which option you choose (high deductible/lower rates or low deductible/higher rates) will depend on what you can afford, but it also depends on how often you expect to need your insurance.  While no one expects to have an accident, you know your driving history; if you tend to have a fender-bender of some sort every few months, you will likely want to pay the minimum amount and let the insurance company take on the majority of costs. For safer drivers who have an excellent driving record, it makes sense to go with the higher deductible and pay lower premiums instead.

Questions to ask yourself
Every so often, make sure to review your auto insurance deductible and consider these two questions:
•    Has my household income changed since I set this deductible?
•    Does this deductible still reflect the amount of money I would be able to pay in the event of a claim?

Purchasing car insurance doesn’t have to be confusing. Take the time to go over the numbers and figure out what you would be able to afford out of pocket in case of an accident and how much you can afford to pay on a monthly basis. A little research can go a long way. It’s also helpful to speak with the auto insurance agent who can give you a good idea of what the norm would be for your car’s age and your driving experience.

Lori Mandell is an attorney, writer and editor. Her specialty areas include insurance, personal injury and estate matters.

People want to gain deals, and better if freebies, in every expenditure they do everyday. But freebies are tricky to achieve, especially in the money section, thus you may as well happy at the fact that car insurance savings are possible through the many techniques to obtain discounts for insurance policies, which are going to be described below. 

Low-Risk Businesses

It is a number’s game, the whole insurance thing, a thus to the companies. As a part of the things they may be doing prior to providing insurance plan, they collect info on what kinds of customers usually get involved in mishaps. As an outcome of cautious study, a blueprint was experienced resulting in the fact that technical engineers would be the car drivers that get into mishaps smaller number of times than others. This is the cause why they often get lower fees in auto insurance policies because they are experienced as low-risk drivers. 

Teachers possibly will have the similar lower special discounts too. If you’re fascinated why these people appear more fortunate inside the insurance departments, it will never hurt to ask your insurance company. In fact, why not ask what other low-risk occupations they think worthy giving the cheap auto insurance policies? What do you know? You might be one of them also? of course you’ll do not know that, unless you start shopping around. 

Professional Automobile club and companies

Maybe, you’ve seen paying lesser amount compared to the actual charge to a hotel or dining restaurant you visit? That’s because you’re most probably a part of some group which that lodge or restaurant is associated with, and therefore, provides discount to any consumer partnered with that as well. The impression is great, is not it? That also is applicable to insurance business. 

Certain organizations or clubs are associated with some insurance companies. the exact same mode they carry out with the hotel or cafe, they charge a certain proportion off the original policy rate to clients who are members of certain affiliations. In this instance, refer to your insurance broker what possible companies or club are associated with the business to get you additional savings. 

Car Safety Features

Anti-lock brake, automated seatbelt, air bags, alarm bell mechanisms, protection against theft gadgets, along with other parallel features integrated into your car are not only brilliant features that protect you while on the road but in addition make you able to score for discount rates on your auto insurance policy. But all the same, verify what the company stipulates in that particular area.

Driver Assumes Higher Risk

Asking for a elevated deductible, that can be offered if you request the corporation to pay for the heavy hits you make and you pay for the tiny dings as well as bumps since you go out the street, is one approach to have reduced auto insurance rate in the similar method you obtain discounted premium rates by dropping crash protection on your old vehicle. Note also that high-priced, flashier vehicles results the corporation to have reasons charge you elevated charge for the obvious reason that they’re easy on the eyes of thieves.

Renewal & Joint discounts Insurance organizations like consumers who do not had to file claims because they got involved in a highway accident. You can make the most of this incident also by demanding a renewal discount. The business which your vehicle is insured with will be just as happy to oblige. After all, all they do is mail you 6 or 12-month premiums invoice, gather & money from the payments.

You furthermore may get auto insurance savings when you combine your automobile insurance along with your house insurance in that same corporation. You can discuss this with your agent if that cut rate is available. 

Distracted driving and teen auto insurance

Courtesy of photo to Flickr ” From merfam”

Should distracted driving be an exclusion for teen auto insurance policies?

Distracted driving is becoming a very serious problem for the auto insurance companies not only for teen auto insurance but for even other auto insurance quotes – for teenagers as well as older drivers.

Luling : Authorities say three Hahnville High School students in Luling, La., remain hospitalized from a wreck when a driver lost control while allegedly texting on her cell phone.
St. Charles Parish sheriff’s deputies tell The Times-Picayune that one boy was sitting on a curb, one standing on the curb and another standing nearby in the street when they were hit Saturday evening in Luling.
They are identified as 15-year-old Joseph Kirch, 17-year-old Treval Dunmiles and 17-year-old Joseph Rafiel, all of Luling.
Authorities say 42-year-old Stephanie L. Clay of Luling was booked with texting while driving, reckless driving and three counts of negligent injuring.

This is one reason why distracted driving is becoming a big concern for teen auto insurance and also safety of teenagers.

Distracted driving is an error and so teen auto insurance companies should not exclude distracted driving.

Distracted driving is an error and this is what the teenagers and the parents are buying teen auto insurance and hence, it would be outrageous for the insurance companies to exclude them. Besides this the insurance companies are surcharging teen auto insurance quotes is the how the insurance companies are getting more auto insurance premium. Why should the insurance company worry about accidents? The next year, they would increase the [">teen auto insurance rates and balance their losses.

How can you still get best teen auto insurance quotes in the present scenerio?

In the present scenerio we need to act as parents and guide out teenagers so that we instill in their mind that driving a car is not just fun but a responsiblity.
The teens are responsible for their own safety and also for those around them. If you implement these strategies you get both teen safety and cheap teen auto insurance quotes for life time.

You need to explain and stress the importance of keeping a clean driving record. What is a clean driving record? It would mean that you have no speeding tickets, no traffic violations and no claims on your insurance record which would mean no accidents. You will definetly be rewarded with cheap teen auto insurance for this.

Explain to your teen that distracted driving is a biggest problem when you are driving and needs to be corrected. Undistracted driving is sure way of getting a clean driving record and cheap teen auto insurance quotes. You can also reduce their rates by purchasing insurance with a higher deductible. The higher the deductible is the lower the premium is.

If the teens are not indluging in distracted driving, would the insurance companies be justifed in keepin high teen auto insurance rates? Would they be justified in keeping distracted driving as an exclusion? What is your stake and opinion on this? Do you want your teen to be safe and get cheap teen auto insurances?

It will be a pleasure to get your valuable opinion and poll on this. Just your email and Yes or No – to should distracted driving be an exclusion for teen auto insurance polices? Its up to you now.

Would teen auto insurance policy cover total loss?

Joey Smith : My car was totaled and my policy did not pay what I think my car was worth. Why? I have a comprehensive teen auto insurance coverages and collision coverage.

Teen auto insurance :policy coverage

Teen auto insurance policy claims assessment

Respones : Once you have taken a comphrensive teen auto insurance coverage and collison coverage and you meet with an accident, you can claim for own damage to your vehicle.

When the car is totally damaged and getting it repaired is going to be more costly than the insurance comapnies would prefer to pay the total value of the car instead of asking you to repair it. This is what “totalled means”. Most auto insurance policies pay the actual cash value (ACV) of a vehicle totaled in an accident. The ACV is equal to the market value of an auto immediately before the accident.

How the insurance companies determine teen auto insurance loss or car insurance losses?

You need to keep in mind that this is common for teen auto insurance policy loss or any other car insurance policy loss or claim as it is referred too. Insurers must use a fair and reasonable method to determine the value of your car. If you have concerns about their decision you may be able to negotiate with your insurer by telling them why your car may have had more value that what the insurance company originally determined.

Your vehicle’s value is determined by comparing your vehicle’s condition to similar vehicles. This may include input from local auto dealers, private parties or recent sales which the adjusters use in their valuation. Condition, equipment and mileage differences are also taken into consideration.

In addition, your insurance company may use a computerized evaluation process to assist them in determining the value of your vehicle. Some insurance companies have an in-built data base, which will help them to estimate costs in automotive claims and collision repairs. Third party software supplies insurers with software and a database that helps determine the value of a vehicle based upon automating the claims process. These systems have databases and systems that contain benchmarking tools to find the true value of a vehicle from repair shops and dealers.

At times some insurance companies would ask for the information from a loss assessor for estimating the value of the car in terms of present market value. A site www.nadaguides .com would also let you know the actual cash value.

Why is the market value of the car determined under teen auto insurance policy at time of claim?

You need to know why the market value of the car is determined under

teen auto insurance

pollicy and you can go back and check out whether the have been paid according to the present market value. You need to remember that the principle on which insurance is based is the principle of indeminty and hence the idea is not to let the insured go in a loss, but at the same time if insurance companies start paying more than the actual market value it would encourage moral hazzards of getting profits from the insurance.

It is benefical that you have a teen auto insurance policy which has a comprehensive coverage. Now, that you have a claims, to get cheap car insurance check out the quote here.

Thanks.
Kamlesh

Sandra Bullock : When to add teen to auto insurance policy? Should I buy a seperate teen auto insurance policy?

Teen auto insurance : When should you get teen auto insurance?

Respones : The teen driver should be added to the auto insurance policy as soon as the have acquired the license. As per the auto inusrnace application, you are required to declare all the drivers in your policy and add them to the policy, unless they have their own indivual auto insurance policies and would not be driving your vehicle. As per the insurance policy, in case you have already bought the auto insurance policy and the teen acquires the license at a later date, you are required to inform the insurance company of the change in the risk. This change of having additional drivers in the family is considered a material change and if you do not declare this it would be considered a misprepresentation.

Teen auto insurance is expensive and hence a lot of parents want to avoid including them however, there are ways of getting cheap car insurance for your teen by comparing auto insurance quotes for free- it is advisable to check out the quote and know the prevailing rates.Look up some tips on getting cheap car inusurance here.

Is a seperate teen auto insurance policy advisable?

If the teen is living with you or within 100 miles of your residents than you are offical entitled to add the teen driver as an additional driver under your existing auto insurance policy. Normally this is the prefered approach for getting cheap car insurance since the auto inusrance premium payable by you would be only about 50% the individual teen auto insurance policy premium.

In case you have a seperate vehcile for your teen and the vehicle is regiestered in the name of the teenager than a seperate policy for the teen would be required. Some parents prefer to have a seperate teen auto inusrance policy so that the teen is responsible for his own auto insurance payments. This makes them responsible and careful drivers, since they would bear the burden of the higher auto insurance cost and so would ensure their safety. This is an indirect methd of making teen drivers safe and responsible.

Thanks.
Kamlesh.