heather locklear: My car has meet with an accident. How would the insurance company decide on the auto insurance claim.? Would my auto insurance rate change?

How car insurance companies decide on the auto insurance claim.

Response : Great question Heather. This is a very common question for most people. Your auto insurance is not cost effective to get your heavily damaged vehicle on the road again decide after an accident.

Instead, the insurer can carries an amount of present value of the vehicle.

If someone else in you crashed, you will probably make a claim on this person auto insurance. If you are by your own car – crash in a tree or some other mishap damaged “You need collision insurance to compensate by your auto insurance.”

How to determine an auto insurance of the vehicle value exactly?

“The important thing to remember is that you could have in essence similar cars differently measured” depending on of their State, says Rick Ward, Director of auto claims for MetLife Auto & home.

If you find a value, the insurer advises publications, which depreciated car values listed. It can go online or visit the car dealer to find out the current prices of comparable brands and models.

Provides an insurer a low cash value for your vehicle a total loss, get you to pay to buy an existing auto loan or another vehicle might not have enough money of the claim.

To challenge such a decision, and get a higher settlement, you have to prove the automatic. Age and mileage are important factors, but good maintenance and mechanical upgrades can increase an older car value.

Insurers often declare a total loss, if the present value of the vehicle exceeds 80 percent of the cost of repairs, but there is not only an industry standard, says Peter Foley, Vice President of business administration at the American International Association trade group claims.

Insurers must often total loss policy set state insurance departments.

Some drivers believe that their motor insurance, entitling them, repairing a vehicle, regardless of the extent of the damage. But not everyone is struggling, save a badly mangled car from the scrap heap.

Some drivers can their cars total losses like explains, if they, that the damage is so much fear that security is compromise. But if you do not agree, amount insurer’s assessment you sure that your reasoning is based on facts, says Ward.

“Information available that have justified your request”, says Ward.

You, that to check Internet sites – such as NADAguides.com – to the selling prices of similar brands and models. If you have no agreement on the car in value, you can submit protest with your auto insurance provider, says Ward.

Most disputes are settled amicably. If an agreement cannot be reached, consumers often take the matter of the State Insurance Department, which deals with formal complaints against insurance companies

When shopping for car insurance, questions about the process for the settlement of disputes. Some car insurance a formal arbitration you outline an impasse over the value of a damaged vehicle should reach, says Ward.

“This means that an independent third party review your case,” he says. It is, some individual companies may contain them not part of the default automatic.

A ruling may be either binding or non-binding. Your auto insurance is represented probably by legal counsel, so hiring an experienced attorney.

Your auto insurance rate

Your auto insurance rate would be higher in the next renewal since the insurance company would consider the cost of the claim and also the fact that you are not a precautious driver. As per the insurance companies statastics a driver who has an accident is more likely to have another one within the next three years and besides they get three years within which to recover the amount for the claim, hence loading contionus mostly for 3 years, some insurance comapnies want the loading for 6 years.

You can always compare car insruance your teen car insurance or young drivers car insurance here and get the best quote.

After an accident, your auto insurance company may decide it’s not cost-effective to put your badly damaged vehicle back on the road.

Instead, the insurer may choose to pay you an amount equal to the vehicle’s cash value.

If someone else has crashed into you, you’ll likely be making a claim on that person’s auto insurance. If you’ve damaged your own car – by crashing into a tree or some other mishap ‘ you’ll need collision insurance in order to receive compensation from your car insurance company.

So how does a car insurance company accurately determine a vehicle’s value?

“The important thing to remember is you could have substantially similar cars that are valued differently,” depending on their condition, says Rick Ward, director of auto claims for MetLife Auto & Home.

When determining a value, the insurer consults publications that list depreciated car values. It may also go online or visit car dealers to learn the current sales prices of comparable makes and models.

If an insurer establishes a low cash value for your total-loss vehicle, you may not receive enough money from the claim to pay off an existing car loan or purchase another vehicle.

To contest such a decision and receive a higher settlement, you must prove the auto’s worth. Age and mileage will be important factors, but good maintenance and mechanical upgrades can increase an older car’s value.

Insurers frequently declare a total loss when the repair cost exceeds 80 percent of the vehicle’s cash value, but there isn’t a single industry standard, says Peter Foley, vice president for claims administration at the American Insurance Association trade group.

Insurers often are required to follow total loss guidelines set by state insurance departments.

Some drivers believe their car insurance entitles them to a repaired vehicle, regardless of the extent of damage. But not everyone fights to save a badly mangled car from the scrap heap.

Some drivers may be happy to have their cars declared total losses if they fear the damage is so severe that is compromises safety. But if you don’t agree with an insurer’s valuation amount, make sure your argument is based upon facts, says Ward.

“Have information available that substantiates your claim,” Ward says.

Kelly blue books – to check the selling prices of similar makes and models. If you can’t reach an agreement on the car’s worth, you can lodge a protest with your auto insurance provider, Ward says.

The majority of disputes are settled amicably. When an agreement can’t be reached, consumers often take the matter to their state’s insurance department, which handles formal complaints against insurance companies

When shopping for car insurance, ask about the process for dispute resolution. Some auto insurance policies outline a formal arbitration process should you reach an impasse over the value of a damaged car, Ward says.

“This means that an independent third party would review your case,” he says. While it’s not part of standard auto policies, some individual companies may include it.

An arbitration decision can be either binding or nonbinding. Your car insurance company likely will be represented by legal counsel, so consider hiring an experienced attorney.

Insurance carriers use a variety of reasons to raise your teen auto insurance premiums . These include cost of business increases, changes in risk, and your driving or claim history to name a few. There are a few things that you can do in order to combat the premium increase.

This is something you need to worry but deal with in the right way. Take the following steps.

1. Call the insurer. Ask them why the premium has increased and what they can do to decrease the cost of your policy. Beware though, this may involve the representative trying to lower your premiums by altering or dropping coverage that might not benefit you in the long run.

2. Avoid accidents and tickets. This is an obvious one, but the most common reason a policy premium increases is an at-fautl accident, a ticket or moving violation.

3. Raise your deductibles . A basic step that you can use to lower your premiums  is to raise the deductible on your comprehensive and collision insurance. Keep in mind though, that this can hurt you in the long run if you can’t afford the higher out of pocket expense if you do have an accident.

4. Change Insurance Companies. This is one thing most insurance companies hate to hear and sometimes they will work with you a little in order to retain you as a customer. It takes an insurance company, on average 2-3 years to make your policy profitable and the longer you are a policy holder without a claim; the more profitable you are to them. As a result, it is usually in the best interest to try and keep you as a policy holder.

5. Lower or drop your coverage. This is another way to lower your premiums but not something I would advise since it lowers the amount of protection the insurance company will provide you if an accident does occur.

6. Drive your car less. In several states, your premium is partially based on the number of miles you drive yearly. The average is usually between 12,000 to 15,000 miles per year. If you drive less, inform your insurance company and they should be able to provide you auto insruance rates that reflect your lower than average yearly mileage.

7. Drive an older vehicle. As a car gets older, the premium goes down. Avoid purchasing a new car  if you don’t need it because your premium will most likely go up if you acquire a newer vehicle. You can get a car insurance loan also easily.

8. Drop your collision and/or comprehensive coverage on an older vehicle. If you have a car that isn’t worth much, look to see what you are paying for the coverage. If you are driving a 15 year old Honda Civic, the value of the car may not be high enough to justify having the coverage on there since you will still need to pay the deductible before the insurance company will step in and pay for repairs. Add up the cost of the premium and deductible and compare that cost to the value of the vehicle as a beginning measure.

9. Are you getting all your car insruance discounts?  Find out if the increase was because the insurance company took off a teen auto insurance discounts  because they hadn’t received the information needed. Did you forget to send in your son or daughter’s school grades and lost the “good student discount”? Did you change insurance companies on a different policy?

10. Do all people listed on your policy operate your vehicle? Most insurance companies ask for you to list all persons close to driving age or of driving age on your policy. If these people do not operate your vehicle, you can exclude them. This means that they will not be covered by your policy if they operate your vehicle.

Last but not least and most important compare teen auto insurance or young drivers car insurance here.

bob sanders : Friends are great but when they are driving your car and crash, it becomes a big deal. What should you do?

Punching someone in the pocketbook can cause more pain than spreading nasty rumors or posting a mean Facebook message. A bad “friend” who crashes your car can affect your finances for years: Auto insurance follows the car, not the driver. And if your so-called friend is uninsured and you have low auto insurance liability limits, you’re both in hot water.

“If you lend someone your keys, you’re lending your insurance, too,” explained Robert Passmore, senior director of personal lines at the Property Casualty Insurers Association of America, an industry trade group.

Here’s how a friend can wreck car insurance havoc.

Scenario No. 1: Your friend crashes your car, and you both have low liability limits.

Let’s say you loan your car to a friend and he crashes it, causing an accident with another vehicle. Both you and your friend have auto insurance with low liability limits. The accident exhausts the liability limits on both policies.

Once this happens, the person who was hit can sue you for medical or property-damage bills that weren’t covered by insurance.

For repairs to your own car, you’ll have to use your collision insurance (if you have it). But you’ll have to pay your deductible on a collision claim, which can be costly.

Your friend may be found to have partial liability for the accident damages, but “states and insurers have different rules for deciding partial liability,” said Passmore. “You’re lending your friend a major asset. You should be cautious.”

Scenario No. 2: Your uninsured friend crashes your car, and you have low liability limits.

This is the worst-case scenario. Your own auto insurance limits will be exhausted, and then the liability shifts to your friend — but you can both be sued.

“Attorneys are looking for liable parties,” warned Michael Barry, a spokesperson for the Insurance Information Institute. He adds that when there’s bodily injury to someone else, your exposure for having loaned your car dramatically increases. “It can be open-ended,” said Barry.

And to top it off, your car insurance rates could go up as a result of the claim, depending on your recent claims history.

Scenario No. 3: Your friend crashes your car, and you both have high insurance limits.

This is the best scenario because all damages are likely to be covered, but your insurance limits are still exhausted before your friend’s policy is tapped. As in the first scenario, you’ll have to pay your deductible for any collision claim for repairs to your own car.

In the final analysis, the best strategy is to guard your car like you’d guard your money: Loan it sparingly, and don’t always expect to get it back.

You need to make sure that you must have the optimum car insurance coverage and limits so that you would not have any issues with being underinsured if an accident happens. Check out our post on limits of liability at  the blog teenautoinsquote and we will fill you in up with lots of more information on getting teen auto insurance and information on insurance. For sure, managing risk is equally important and is money in your pocket- since it prevents money going out!! Save on teen auto insurance or car insurance.

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