Archive for category Types of Insurance
Rental Car Insurance Coverage – Should You?
Posted by Steve in Types of Insurance on May 14th, 2009
When you're renting, do you really need that rental car insurance coverage?
Should you get that rental car insurance coverage they always offer you before you run through the rain to pick up your nondescript transportation appliance? It is definitely something to consider, what with the insurance company’s propensity to jack your rates through the roof at the slightest sign of trouble. After all, you could avoid a claim on your own insurance that could be just the excuse they’d need to raise your rates (like they’re not high enough already!).
First of all, you should exhaust other options at your disposal, such as any such coverage that might be included with your credit card. Many credit cards include rental car insurance, provided you rent the car on the card in question (makes sense). One thing to be aware of, should you opt for your credit card’s insurance, is that the coverage may be limited to the rental car only. Just dinged a brand new S-550? Ouch! Looks like the damage will come out of your hide or your regular car insurance. That leads to the next point.
A loss damage waiver will help protect you if your rental is damaged, stolen, or abducted by aliens. Another nice feature that is included in many such waivers is a “loss of use” provision. That helps in case the rental car company decides to bill you for the time they can’t rent the car while it is in the shop because of something you were responsible for, such as running over a parking lot bump stop.
Make sure you contact your existing car insurance agent. They’ll be able to examine your present policy and let you know what the limits of your coverage are vis-a-vis rental cars. You don’t want to pay for something needlessly. Although it may give you some piece of mind not to make a claim against your insurance should you wad the rental into a Jersey barrier, you should know that if you are in an accident that was your fault, your insurance company will discover it at some point. In such a case they will likely raise your rates anyway, weather you made a claim or not.
Another thing to be aware of is that rental car coverage will probably not protect you if the accident was caused by excessive speed, DUI, or reckless driving. Unfortunately, bad behavior seems to follow many people when they rent a vehicle. Things they would never dream of while driving their own cars seem to happen regularly while they’re behind the wheel of that hot Hertz Camry. Don’t let this happen to you, no matter how much that 157hp 4-cylinder tugs at the reins.
So, do you need that rental car insurance? Only you can make that decision, but you should make sure you have all the right information before you do. Happy motoring!
What is the Definition of SR22 Insurance?
Posted by Steve in Types of Insurance on April 4th, 2009
You might not find an insurance company that would give you an SR22 if you drive this fine Boss 429.
SR22 insurance is insurance for high risk drivers that have typically been convicted of any number of serious driving offenses such as DUI and reckless driving. In many cases the state will require an SR22 certification from an insurer before reissuing a driver’s license after it has been suspended or revoked for one of theses offenses.
SR22 is actually a certificate the insurance company issues. It certifies the company will report to the state DMV should the insurance policy ever lapse or be cancelled. In most cases the DMV will not issue a driver’s or vehicle license unless they have the SR22.
The most common reason for the state requiring an SR22 filing is driving under the influence (DUI) or driving while intoxicated (DWI). These are basically the same offense as defined by the your state of residence. Reckless driving also commonly triggers the requirement. You can also be required to file an SR22 for less serious moving violations, such as driving without insurance, speeding, negligent driving, and failure to yield if you have too many per year and show a habitual offense pattern.
Another common trigger for the SR22 requirement is uninsured accidents. 48 of the 50 states require liability insurance to protect other motorists. The two that do not, as yet, have a mandatory insurance requirement are New Hampshire and Wisconsin. They do require that you prove financial responsibility however. Most drivers that do not have insurance can not prove financial responsibility either. Your state may require proof of insurance for vehicle registration, while others require it only at the time of a traffic stop.
Not all insurance companies write SR22 policies. This may require you change insurers if your state is requiring you to have SR22 insurance. In all cases this insurance is expensive, due to the increased risk presented by such drivers.
That is the definition of SR22 insurance. If you do need it, make sure you check around as some agencies charge less for it than others, and some actually specialize in it. As with all auto insurance, you should get multiple quotes to make sure you are getting the lowest rate.
What is Comprehensive Car Insurance – and Why Do I Need It?
Posted by Steve in Types of Insurance on March 31st, 2009
Get Cheaper Truck Insurance
Comprehensive car insurance is insurance that covers any damage to your vehicle that is not caused by the insured actually driving it. For example, if you wreck your car, that is not covered by your comprehensive policy. On the other hand, if your vehicle is stolen, or is damaged by a storm, a falling tree, or the neighbor’s kid with a spray can, that is all covered.
Theft is another province of comprehensive coverage. That is why cars that have been found more likely to be stolen cost more to insure than you may think. That is not always the most expensive car either. According to the National Insurance Crime Bureau (NICB) list for July, 2008, the most frequently stolen vehicle nationwide was the 1995 Honda Civic.
Stolen vehicle statistics vary by location. For instance, in California the top 5 most stolen vehicles were the 1991 Honda Accord, the 1995 Honda Civic, 1989 Toyota Camry, the 1994 Acura Integra, and the 1994 Nissan Sentra. The top 10 locations in the U.S. with the highest auto theft rate are all in the west. 4 are in California, 2 in Arizona, and one each in Texas, Washington, Nevada, and New Mexico. Look for higher insurance rates than you would otherwise expect to pay in these locations.
You’ll notice all of the vehicles on the list of the most frequently stolen are over 10 years old. Part of that is because older vehicles do not have modern anti theft systems, such as smart key systems. Another reason is that most vehicles are taken for their parts, not the car itself. That means the demand for parts drives some of the thefts, not the vehicle’s overall desirability.
Locations that are highly frequented by natural disaster are also more expensive to insure, because comprehensive policies must cover damage caused by storms, floods, and wild fires. If your region has frequent hail storms, wild fires, floods, tornadoes or hurricanes, you’ll see that reflected in your insurance rates.
You need comprehensive car insurance because most lenders will not give you a car loan unless their collateral (your car) is protected against damage or loss. If you buy your vehicle outright, you don’t technically need comprehensive insurance at all. However, if your vehicle is fairly expensive (and which vehicles aren’t these days?), protecting your investment is usually important enough to justify a comprehensive policy.
As with most types of auto insurance, a deductible applies before the policy begins paying. The higher the deductible is, the lower the rates in most cases. For example, if you have a $500 deductible, your insurance would pay the damage less $500. So, if your car is damaged in the parking lot and it costs $1,200 to repair the damage, you’ll pay $500, and the insurance company would pay the other $700. Typically you would not want to file a claim on the $1,200 though. If your car was damaged and the repair was $4,000, that would probably justify filing a claim.
Keeping a high deductible is a great strategy to keep your insurance rates low, because most people will see a rise in rates after a certain amount of claims are filed against the company anyway. As was touched on above, that means there is no reason to file relatively small claims, so it is best to structure the policy so it doesn’t cover small losses.
So, in a nutshell, comprehensive car insurance covers your vehicle for loss and damages not caused by driving it. It is required by lenders to protect the security on their loan, and that is why you need it.