In Wisconsin, many people own auto insurance, even though it is not required by state law to carry it. While many people fill auto insurance policies, there are many who do not know what their policy provides coverage for. The following guide will be a basic overview of coverages available on an auto insurance policy and I will also provide some recommendations on what limits of insurance to carry.
Limits of Liability: Each auto insurance policy carries limits of liability. I like to describe liability insurance as “coverage for the other guy.” This fraction of your auto insurance policy provides monetary limits that will be paid out in the event of an accident that you are legally deemed responsible for. In most cases, these limits are broken down into three categories: Bodily Injury per person, Bodily Injury per occurrence, and Property Injure. Generally, your policy will list three numbers that represent how many thousands of dollars your policy offers under each category.
For example, if your liability limits are listed as 100/300/100, this translates as $100,000 is the maximum amount your policy will pay out for bodily injury damages sustained by any one person in any single occurrence. $300,000 would be the maximum paid out for bodily injury damages sustained by all people in any single occurrence. Lastly, $100,000 would be the maximum paid out for any damage you do to someone else’s property in any single occurrence.
Recommendation on choosing your liability limits.When choosing your liability limits on your auto insurance policy, there are a couple things to keep in mind; the rising cost of health care and the “sue-happy” society in which we live. The state of Wisconsin requires that you carry limits of at least 25/50/25, however, this is NOT adequate coverage. If there are injuries resulting from an accident in which you are legally liable, $25,000 will not last long in a hospital these days. Also, if there is a law suit brought against you for the accident, $25,000 will be gone very quickly as well. My recommendation is to carry liability limits of at least 250/500/100 and possibly supplement your auto insurance policy with a Personal Liability Umbrella policy which would give an extra $1,000,000 of liability protection.
Medical Expense: This coverage is optional. It provides a limit for medical payments if you or anyone in your vehicle is injured in an accident, regardless of who is at fault. The limit that you settle will be provided on a per person basis.
Recommendation on choosing your medical expense limit.Even though this coverage is optional, I would recommend taking it, as it is very inexpensive. Even if you have health insurance and feel you have no need for this coverage, you never know if your passengers carry health insurance or not. Also, even if you have health insurance, many times you need to meet a deductible before anything will be paid out. Medical Expense coverage has no deductible. I recommend choosing a limit of $10,000 or higher. If your policy has a limit of less than $10,000, your policy will pay medical expenses for up to a year. However, if your policy limit is more than $10,000, your policy will pay medical expenses for three years. For a few extra dollars, you get two years of extra coverage.
Uninsured Motorist: Every auto insurance policy includes this coverage. This limit in your policy provides coverage for bodily injury for you and your passengers if you are distress in an accident with an uninsured driver, as long as they are at fault. Similar to liability limits, this coverage is displayed on your policy in two categories: Bodily Injury per person and Bodily Injury per occurrence.
Recommendation on choosing your uninsured motorist limit. Many people residence their uninsured motorist limit equal to the liability limits they carry. My recommendation would be to determine limits equal to or higher than your policy’s liability limits. The reasoning for this is simply, why take care of someone else better than you take care of yourself and your passengers?
Under Insured Motorist: This coverage is optional. This coverage is very similar to Uninsured Motorist and provides coverage for bodily injury for you and your passengers if you are hurt in an accident with a driver who does not carry enough insurance to cover your medical bills. This limit is required to match the limit set in your policy for Uninsured Motorist.
Recommendation on choosing your under insured motorist limit. Even though this coverage is option, I would recommend including it in your policy. Generally, the cost is about $2.00 a month, which is a small price to pay for the peace of mind it provides in knowing that you are taken care of even if there are irresponsible drivers on the road.
Comprehensive: This coverage is optional. Many people refer to comprehensive coverage as providing coverage against “acts of nature.” Some examples of covered instances would be windshield cracks, deer hits, hail damage, vandalism, etc. Your policy will list a deductible for this coverage, which means that you will be responsible for a location amount of money if there is a loss, and your insurance company will pay for the remaining reasonable costs to fix or replace the vehicle.
Collision: This coverage is optional. This coverage will cover repairs or the replacement of your vehicle minus any depreciation, if you are in an accident that is deemed your fault. If you carry this coverage on your policy, similar to comprehensive coverage, you will have a deductible, or set amount of money you will be responsible for before the insurance company will pay for the remaining reasonable costs left over for the repairs or replacement of your vehicle.
Recommendation on choosing whether or not to carry comprehensive and collision coverage: The first step is to ask yourself several questions about your vehicle and your financials. Is your vehicle over ten years former? Do you have a loan on it? How much would your vehicle be worth as blue book value? Would you be able to afford to pay for damages out of pocket if your vehicle was severely damaged or needed to be replaced? If your vehicle is over ten years old, unless it is in immaculate condition, it may not be worth paying extra for comprehensive or collision coverage. However, if you still have a loan on your vehicle, the bank usually will require you to carry this coverage on your policy, no matter what the value or age. Also, if your vehicle is not worth much anymore due to mileage, condition, or age, it may not be worth paying the premium for these coverages as compared to what you will actually get for the vehicle if something happens to it. A good rule of thumb is that if you can afford to make small repairs or replace the vehicle out of pocket, you should not carry these coverages, as it will cost you more money in the long run.
Emergency Roadside Service: This coverage is optional and usually varies from company to company. Many times it will include towing costs up to a certain distance or amount of money if your vehicle breaks down. Also, some policies may also cover costs for a locksmith and labor costs when you run out of gas or get a flat tire.
Recommendation on whether or not to carry emergency roadside service coverage: Many people carry this coverage on their auto insurance policies as it is usually the least expensive route when compared to companies who offer towing packages, such as AAA. However, if you have a package through AAA or through the dealership you purchased your car from, it would not be necessary.
Rental Reimbursement: This coverage is optional. If you carry this coverage on your auto policy, you will be allotted a specified amount of money to put towards a rental vehicle if your car is being repaired due to a covered loss. Many times the coverage will be listed in two categories: maximum payout per day and maximum payout per occurrence; for example, 30/750, means you would have $30 to put towards a rental vehicle per day with a maximum of $750 paid out per occurrence.
Recommendation on whether or not to carry rental reimbursement coverage: You should carry this coverage on your policy if you would have no other vehicle to use if yours was being repaired. Again, AAA or similar companies may offer this coverage in their packages, and if you have a package that includes it, it is not necessary to include this coverage in your auto insurance policy.
Overall, each auto insurance policy may be worded a bit differently and each person has a different need for the limit of insurance and which coverages they carry on their policy. The best advise would be to make sure and schedule a yearly insurance review with your agent, as life changes, and your policies should keep up. You agent will make sure your limits are adequate and that your policy includes personalized coverages that fit your particular needs. If you do not have an insurance agent or your agent does not provide these services, it is best you find another company, as you can pay really cheap rates…but chances are your coverage will fall short when you really need it and most people work too hard for a living to take that chance.
Filed under Car Insurance Questions by on Mar 14th, 2011. Comment. 
Unusual driver car insurance policies are typically priced higher than the average because the driver is at risk for getting into an accident. Inexperience and a lack of knowledge about the vehicle and roadways can make the driver more vulnerable to getting in a car accident, so most insurance companies extend a higher premium until the new drivers proves themselves with a consistent driving record.
As of 2010, the national average for auto insurance premiums for males and females between the ages of 18 and 25 years – the majority of original drivers – is $1,566. Average insurance rates from August 2009 to July 2010 for teen drivers range between $2,141 to $2,741, which is considerably higher than the national average.
Reasons Why New Driver Car Insurance Is So High
New driver car insurance rates are considerably higher than the national average because car insurance companies are investing in a driver who is at a high risk of being enthusiastic in a car accident. Here are some of the key reasons why new driver car insurance rates are so high:
- Teenage drivers are statistically more likely to be involved in both fatal and nonfatal crashes than other drivers.
- Modern drivers have yet to build up a proven driving record.
- New drivers may be too inexperienced to handle high-risk driving situations and have a higher chance of being involved in a collision or serious accident.
Getting a Lower New Driver Car Insurance Rate
Even though most recent drivers will not be eligible for the cheapest car insurance rates, they may be eligible for certain discounts that can lower their insurance premium. A new driver may be able to lop their car insurance rates in the following ways:
- Show a good student record. Student drivers who have a high GPA may be eligible for certain insurance discounts because they are proving that they are responsible.
- Apply for insurance as part of a multi-line insurance policy. Families who purchase a multi-line insurance policy may be able to get a lower-priced insurance policy for new drivers.
- Prove and gain a suited driving report. Even though a novel driver hasn’t had the chance to acquire up a strong driving recount, they can make sure they are not involved in any DUI incidents and take extra precautions to conclude superior while on the road. Maintaining a good driving record in the long-term can lower the new driver’s insurance rates.
Typical rates for new driver car insurance are much higher than the national average, but there are several things that the new driver can do to lower their rates over time. Shopping around for the best recent driver car insurance rate is the first step to ensuring the driver is getting the best available rate.
Sources:
“Teen Auto Insurance and New Driver Car Insurance,” State Farm.
“Car Insurance for Teens and Young Drivers,” CarInsurance.com.
“Average Annual Teen Premium Rates,” CarInsurance.com.
Filed under Farmers Car Insurance by on Mar 14th, 2011. Comment.
When you have a novel car you want to procure a great insurance company and policy that matches it. You might not know how to go about finding that. You need a car insurance shopping guide that will help you find the best rates for your car insurance. Here is a car insurance shopping guide for you so that you can find that perfect car insurance company and policy for your new car.
The first thing to note in this car insurance shopping guide is the choice of the legal policy. There are many car insurance policies out there today. They may offer great introduction prices. Be careful though. Many times those prices are great at first. Then after the introduction time is over the price goes up. Some of these policies can increase as much as fifty percent. That is really expensive to most people. It can also hit you as a huge surprise if you aren’t expecting it. Be determined that you know exactly what each company has in the fine print.
After you understand what the company is going to charge you after the introduction is over then be sure to ask about their coverage policies. Never bewitch that a car insurance policy covers everything. You have to ask about each aspect of your coverage. Exclusions and other things that can happen are essential to understand before the emergency calls for their use. Even road side assistance can be valuable and save you thousands of dollars in the event of a fracture down. Check ahead and make definite that your car insurance company has you covered. This is probably one of the most necessary points in this car insurance shopping guide.
The next thing that you have to understand when shopping for car insurance is the coverage that you require. All car insurance companies know that you are getting insurance to cover your emergency needs. They absolutely strive to make you vexed so they can make more money. This is because they know that the more troubled you are the more money they make. They of course want to make a lot of money. You of course know this and should consider carefully before you pick car insurance that is over priced and not required. In order to make clear that you have the proper amount of car insurance here the most important point to note for your car insurance shopping guide.
You must have uninsured motorist coverage. Even if your state does not require this you must have it. This is due to the increasing number of people that do not have car insurance. If you get in an accident with a person that is uninsured, you will have to pay for everything to cover yourself. If you have uninsured motorist then you will be completely covered. That is essential. Ask your insurance company what the options are. Make that a priority.
Now that you have that in area you must consider the following factors. Here is your next tip for you car insurance shopping guide. Pick Up enough coverage for property and bodily injury coverage. Failure to do so can be a nightmare. If you have no assets then it is less of a risk. If you do have assets though be ready with the suited amount of coverage.
Filed under Car Insurance Questions by on Feb 27th, 2011. Comment.
The biggest milestone a teenager reaches is getting their drivers license. From a teenagers’ perspective all they have to do is take drivers education and pass the driving test. They do not think about the costs acquainted with them driving. They do not judge about the soaring prices of gas or how grand money it takes to rob a car and retain it running. The only thing teenagers have on their mind is getting the keys and cruising around with their friends. Teenage drivers’ parents are left trying to figure out how to afford this great milestone in their teenagers’ life. Most parents can stomach the cost of a car and how distinguished it will take to gas it up. What very few realize is that auto insurance is expensive for these inexperienced drivers. Here are some tips for parents on how to find cheap auto insurance for their teenage drivers.
Before you launch looking for car insurance for your teen consider about the kind of car they will be driving. If you buy your teenage driver a 2010 Honda Accord the insurance will be sky high because you will be paying for comprehensive and collision coverage for a new untested driver. If you seize your teenage driver a 1999 Honda Civic you will feel more comfortable carrying only liability on the car because the car is not worth that much money anymore. This is the number one factor to look at when you start looking for cheap auto insurance rates.
The next step is to call your current carrier. If you have been with a good insurance company for a long time they will usually quote you a lower rate than if were to call a new carrier. Believe it or not insurance companies usually do reward loyalty and that includes cheaper pricing for teenage drivers. This is especially suitable if the parents have crystal clean driving records themselves. Most insurance companies will include good driving discounts on the teenage drivers’ rates if the parents themselves qualify for them.
If you are a parent with a less than stellar driving record your insurance company may actually charge more for your teen because they consider your teen higher risk than the young driver whose parents have clean records. This is a good time for you to start shopping around for cheap auto insurance for your teenage driver.
As you shop for cheap car insurance your best bet is to shop for the whole family. Most insurance carriers will not insure anyone under 18 by themselves. Also, if you separate one car from your policy that car will lose a multi-vehicle discount that works in your favor to preserve your insurance costs cheap.
So, make a list of 3 top nationally recognized auto insurance companies and call them all. Make sure you mention you have a teenage driver in the beginning of the call as some insurance companies will reject policies that have new drivers on them. Also make sure you have your current policy with you so you can request rates based off your true coverage’s.
While talking to the various insurance agents have them give you high, medium, and low coverage package quotes. It is suggested people who own a home and have assets, like many parents do, carry their bodily injury limits at 100/300. This is very important because higher coverage’s protect your assets the best. But, when trying to find cheap auto insurance for teenage drivers, you may explore Bodily Injury limits at 50/100 or even down to your state minimum requirement (which would give you the low quote).
If you did buy your teenage driver a newer car that requires comprehensive and collision (or full coverage), have the car insurance agents quote you with higher deductibles like $750 or $1000. While it is not recommended to carry high deductibles, sometimes you have to when dealing with the high cost of insurance for teenage drivers.
If you do all this and are still having trouble finding cheap car insurance for your teenage driver call an auto insurance broker in your area. You can find them listed in the yellow pages. These brokers deal with smaller insurance companies and will shop amongst them for you to find the cheapest rates. While these smaller companies may not get the highest customer service ratings or be nationally recognized they sometimes do give cheap rates for teenage drivers. Smaller companies may even insure your teenager on their fill policy so you do not have to leave the carrier you have been with for years. While this is not recommended it may be the only affordable choice.
While there are cheap car insurance rates for teenage drivers available it just may take some time to score them. A lot of parents avoid expensive insurance rates by requiring their teenage driver contain a 3.0 GPA in school as many insurance companies reward good grades with a massive discount. Make sure your current insurance company is including all discounts available and ask them what you need to do to qualify for additional discounts in the future. Further, while the initial auto insurance rates may be expensive at first they could become cheap after the teenage driver has maintained a clean recount for their first year or two of driving.
*All tips given here are based on author Kirstin Filliez’s experience while working as an auto insurance sales agent for the last 7 years. None of the tips guarantee lower rates, they are objective some ideas that have worked for other insureds in the past.
Filed under Farmers Car Insurance by on Feb 27th, 2011. Comment.
If you are looking to add a novel credit card to the collection in your wallet, look no further than Bank of America. Bank of America credit cards come with a Visa or Mastercard logo, so they are approved everywhere. They offer a wide selection of programs to fit virtually any need. You will see that they offer a crude APR credit card, as well as credit cards that allow cash advances.
Try a low APR credit card for expansive savings
APR refers to the annual percentage rate of the money you are charged to use the credit card. This is also called the interest rate. Interest rates on credit cards can be variable or fixed, so you will want to check each low APR credit card offer to resolve the spot. Variable-rate cards’ interest rate can be based on changes in the prime rate, so the rate you are charged on the card would be the prime, with an additional percentage added on. The prime rate is the interest rate charged by banks.
Bank of America provides several credit cards that offer a zero percent interest rate for an introductory period. This is usually six months after your application has been approved, and may be applied to purchases or to balance transfers, depending on the particular card offer specifications.
How can credit cards help me with cash advances?
During introductory periods of certain Bank of America credit card offers, the card holder is offered a zero APR on not only balance transfers and purchases, but it can also be applied to cash advances. You may borrow a certain amount of money based on the line of credit you are offered on your specific credit card.
This money can be worn in any way you wish. Cash advances offer the convenience of a short-term loan without the hassle of going through the process of obtaining a loan through a bank. However, if you do not pay the balance in full by the end of the monthly grace period, you will pay interest on the outstanding balance, so the cost should be compared to the benefits. Nevertheless, entrepreneurs sometimes secure money for the start-up costs of their new businesses through cash advances on their credit cards.
Not only does Bank of America offer a low APR credit card and the benefit of a cash advance, but many of the cards offer special rewards. They can include travel points, cash back on gasoline purchases or other specified purchases, or discounts on hotel rooms, merchandise and gift certificates.
Filed under Infinity Car Insurance by on Feb 25th, 2011. Comment.
