Collision Insurance Current Rates, News & Information

I Wrecked My Car, Now What?

Posted in Auto Insurance , Collision Insurance , Comprehensive Insurance , Liability

August 5th, 2010
No Comments

Wrecking a car is something no one wants to experience, but causing the wreck and only carrying liability insurance coverage is definitely one of the worst types of accidents a person can have. Luckily, you won’t be responsible for paying for the damage to the other person’s vehicle, but if the damage to your own car is too costly to repair, you’re left with the dilemma of what to do with your car.

What to Do with a Wrecked Car

The worst has already happened; you’ve caused an accident and wrecked your car with only liability coverage. Now it’s time to figure out what to do with it since your auto insurance won’t cover the damage. Here are a few options to consider:

1. Part It Out

One option that you have as the vehicle owner is to “part it out” or dismantle the vehicle sell it for parts. Even though the body of your car may be wrecked, there are still working parts that an experienced person could take advantage of (battery, engine, transmission, exhaust system, seats, etc.). Many mechanics and car junkies love to piece cars together at their leisure and would be willing to buy the parts instead of the whole thing.

2. Sell It to a Junkyard

If you don’t feel experienced enough to part out your car, you could try selling the whole thing to a junkyard. Junkyards are always in need of cars and are willing to part them out to individuals who come looking for parts. Unfortunately, junkyards typically don’t pay a whole lot for cars. You might get lucky if you receive $200 for your car. Keep this in mind as you decide what you want to do.

3. Donate It to Charity

Another option that you have as the vehicle’s owner is donate your car to a charity. Many organizations offer services like fixing up cars and giving them to needy families. If your car is in good enough shape, the organization might fix the car up and give it away. If it’s not, it might be parted out to restore other cars.

The good news with taking this route is that you could receive a sizable tax deduction if you donate vehicle parts or the whole car. Of course, you’d need to keep your receipt to claim the deduction.

Are There Any Other Options?

While most of your options would be exhausted above, there are a few other things you could try to redeem the fact that you didn’t have comprehensive and collision auto insurance for your car before causing an accident:

• Sell it “as is”: Many people are willing to purchase vehicles in an “as is” state. This is an option you might consider if you have valuable parts on the car (i.e. expensive wheels and tires or audio system) and want to get something for the vehicle without parting it out. You’d be surprised by how much someone would pay for your “as is” vehicle knowing that they could pull some valuable pieces off and maybe even part it out on their own.
• Take out a loan and fix the car: This is probably not an option many would consider, but if you’re dedicated to keeping your car and know that it would be cheaper to take out a personal loan and get the repairs fixed than buy a new car then it could be worth a try.

It’s no secret that collision and comprehensive coverage are more expensive that liability, but it still doesn’t hurt to upgrade to full coverage, especially if you’re a not-so-great driver. This way, your liability policy doesn’t have to be the reason that you have a car one day and a bus pass the next.

Five Outrageous Celebrity Car Accidents

Posted in Auto Insurance , Auto Insurance Claims , Collision Insurance

June 24th, 2010
No Comments

In Hollywood, celebrities are usually known for their prestige, wealth and luxurious lifestyle. However, some have managed to become synonymously linked to their car accidents that have often times exposed the life of a troubling Hollywood starlet. Here, we gathered five notable celebrities along with their damaging car accidents that have occurred over the past several years.

1. Hollywood’s Repeat Offender

Damage costs to Spears’ Mercedes: approximately $1,000

Photo by: Pitxie

Beware of Britney Spears…on the road.Many of us know her as the “It” girl of our generation in Hollywood. She holds the title for several chart-topping hits as well as multi-million dollar endorsement deals. However, we’ve deemed this pop celebrity as Hollywood’s Repeat Offender. Spears has been involved in several fender benders over the last few years. After rear-ending another vehicle on one occasion, she recklessly pulled into a parking lot, side-swiping a different parked car. As if that isn’t bad enough, she inspected her own car, making sure it was OK, then left without taking any responsibility for other damage she caused. Many of these cases are seemingly careless, occurring because Spears simply wasn’t paying attention to the road (or to the parked car). Let’s not forget about the infamous time when she allowed her infant son to sit in her lap while she was driving.

2.Best Recovery Accident

Damages to Ferrari: Totaled

Photo by: PajamaWolf

Back in 2009, famed Real Madrid (former Manchester United) soccer player, Cristiano Ronaldo, was involved in a destructive car accident. While driving through a Manchester airport tunnel, Ronaldo crashed into a barrier that totaled his red Ferrari. Fortunately, no other cars were involved and no one was hurt. Witnesses say that they were surprised to see Ronaldo walk out uninjured immediately after the crash. Ronaldo resumed practice and training that morning despite the scary incident that occurred earlier in the day.

3.Most Mysterious Accident

Damages to Sheen’s Mercedes: Totaled

Photo by: Ravens_2000

Charlie Sheen faced a variety of problems this year involving the domestic disputes with his wife, Brooke Mueller, as well as controversy regarding his contract negotiations for his CBS show, Two and a Half Men. However, one odd problem this year was the fact that his Mercedes was found by police overturned on a cliff, sparking rumors about a possible tragic celebrity accident. After conducting proper police investigations, it turns out that Sheen’s vehicle was stolen from his home in Sherman Oaks. He had called earlier that evening to report that his car was missing from his home.

4.Paparazzo’s Prey

Damage costs to Richie’s Range Rover: $700

Photo by: CarollinCalico

Many of these celebrities are the cause their own tragedies. However, in Nicole Richie’s case, she was simply an innocent victim who was prey to ruthless paparazzi. A couple months ago, Nicole Richie’s Range Rover was rear-ended by a paparazzo. She claimed injuries but police were not called to the scene. Instead, she opted to see her own doctor. The paparazzo was then investigated because he was unable to show proof of a proper driver’s license and consequently arrested. Thankfully, Richie’s passenger was not injured and her baby was not on board.

5.Hall of Fame

Damage to Woods’ car: $10,000

Photo by: Brashears

Tiger Woods tops the list for the Hall of Fame celebrity car accident of all time. During a very odd morning, Tiger Woods was reportedly involved in a car crash that occurred at 2:25 a.m. just outside his private gated community home in Florida. Police reports state that he lost control of his SUV and crashed into a fire hydrant as well as a tree in front of a neighbor’s yard. A breathalyzer test indicated that he was sober. More troubling than the accident was the story that emerged after that devastating morning. Woods was pulled out of the vehicle by his wife, Elin Nordegren, who had to smash the back windows of the SUV to pull him out. By the time paramedics had arrived, he was in and out of consciousness which made people suspicious because the accident was mild, yet he had lacerations on his lips and blood in his mouth. Woods’ celebrity car accident brought light to the five year affair he had been having with multiple different women.

Celebrities are no different than us. They all have their occasional fender benders as well. However, most importantly, make sure that you’re insured so that you are covered in the event of an auto accident. Find which type of auto insurance works best for you. Contact your insurance agent as soon as possible so that they may help you file a claim.

How Do I Know if I’m a High-Risk Driver?

Posted in Auto Insurance , Auto Insurance Claims , Collision Insurance

April 28th, 2010
No Comments

Not all drivers are created equal. There are some days where you just hop into your vehicle, drive around and realize that everyone else on the road is a menace to society. What you need to pay attention to are the days where everyone is seems well behaved as on those days, you may be the one ruffling feathers on the freeway.

We have all encountered vehicles being navigated by jerks, people on their cell phone or doing things that should only be done in the privacy of their home. Lawmakers and concerned citizens are working aggressively to implement laws to prevent distracted driving, but until things really change we all need to share the road. Included in that mix are drivers who only qualify for high-risk auto insurance.

We are all guilty of occasionally being a sloppy driver and before you start judging your neighbors, you need to determine your high-risk behaviors. For all you know, you may be on the way of being classified as a high-risk driver by your insurance providers and may be forced to secure coverage from the Facility Association.

If any of the actions below seem like common behavior for you, chances are you may be a high-risk driver and on your way to needing to secure a high-risk auto insurance quote:

• Gotten multiple moving violations over a short time span
• Fiddle with your cell phone, PDA and other electronic devices instead of keeping your eyes on the road
• Driving buzzed or drunk, regardless of whether or not you were caught by the authorities
• Are not an experienced driver
• Are the owner of a highly modified car
• Tends to be overly aggressive
• Have not been covered by auto insurance for any time period

Auto insurance premiums are determined by several factors. Your age, driving history and where you live are all part of the equation. If an insurance company is unimpressed by any of those characteristics you will end up paying significantly more or they may even deny providing you with coverage. If that is the case, you will need to explore other insurance options including finding a policy specifically designed to be a cheap high-risk auto insurance plan.

Collision Auto Insurance Rates

Posted in Auto Insurance , Collision Insurance

September 23rd, 2009
1 Comment

One area where people are always looking for savings is in collision auto insurance rates. When you think about it, car insurance is one of your big-ticket items, and most people end up spending a few thousands dollars per year on it. Those monthly payments can get high, so it makes sense to shop for the best insurance rates possible. When it comes to collision auto insurance rates, there are definitely things to think about before you commit to a policy.

Collision Insurance Basics

Collision car insurance, which covers the cost of repairing your car in the event of an accident with another car, object, or accident caused by an act of nature, is not required in most states. However, it will almost always be required by your bank if you have a car payment to make. After all, the bank actually owns your car until you’ve finished paying it off, and they want it to have full insurance protection.

Lower Insurance Rates

To get the best collision auto insurance rates, there are some key things to keep in mind.For instance, you can get lower auto insurance rates by getting a higher deductible. This means you’ll pay less every month for your collision insurance, but you’ll have to pay more should you get into an accident. That’s a judgment call that all drivers need to make, and everyone will feel differently about the risk involved. It’s also important to determine whether it’s worth it to get this type of insurance for your car if it’s old and not worth very much. Auto insurance providers will only compensate you for what your car is worth, so if your repair bills total $3,000 but your car is only worth $1,500, you’ll get the latter amount from your insurer.

It’s important to save money on lower auto insurance rates, but it’s just as important to have proper and complete coverage. It’s a balance that needs to be decided upon by each individual driver.

When Collision and Comprehensive Auto Insurance is a Bad Idea

Posted in Auto Insurance , Collision Insurance , Comprehensive Insurance

September 16th, 2009
1 Comment

Auto insurance typically requires a minimum level of bodily injury liability and property damage liability insurance, or the car owner must have the financial means set aside to meet minimum requirements in the event an accident occurs. Both collision damage insurance (pays for damages caused to your car if involved in an accident) and comprehensive insurance (pays for damages caused to your car due to alternative means like “Acts of God,” theft or vandalism) auto insurance are add-ons to a basic auto insurance policies and are not required by law. There are times when avoiding collision and comprehensive auto insurance is a smart idea.

Reasons to Avoid Collision and Comprehensive

If you have an older vehicle where the cost of repairing damage to it would exceed the actual value of the car, avoiding collision and comprehensive auto insurance is beneficial. Collision and comprehensive auto insurance can add hundreds of dollars worth of costs on top of an already pricey policy, and if you are driving around a low-value vehicle, the premiums paid for the vehicle might be worth more than the actual cost.

If your vehicle is is severely damaged, you would be required to meet your financial deductible, and then you would get a reimbursement from your insurance company. Depending on your insurance policy, the deductible amount can range from $500-$2000. Many older vehicles may only sell for that amount of money, so paying for the additional collision and comprehensive auto insurance does not make financial sense.

When Collision and Comprehensive are Necessary

If however you purchased and financed a new car, you must carry collision and comprehensive auto insurance. Technically, the financial institution that loaned you the money owns the car until you make the final payment and receive the title. Therefore, they require collision and comprehensive auto insurance to protect their asset.

Is Collision Coverage Required in Every State?

Posted in Auto Insurance , Collision Insurance

September 9th, 2009
1 Comment

Collision coverage, the optional type of car insurance that will pay for the physical damages to your car from an accident, regardless of who is at fault, is very important to have.

Why should I get collision coverage?

If you own a car, then you know you really need a vehicle in order to get around and do the things you need to do, as well as to hit the road and get out of town for a while. Because it’s so important to you, you will pay for collision coverage because you know that if you don’t have it, and there’s an accident leaving you with $5,000 in mechanic’s fees, it could really set you back financially. For most of us $5,000 is a lot of money. Collision coverage is probably required by the backer of your auto loan, but it is not mandatory in every state.

Collision coverage is still optional

As prudent as collision coverage may be, it is still considered optional in many places. The state of Florida, for example, does not require drivers to have collision coverage.

This does not mean that if you live in Florida you don’t have to get collision coverage: again, if you bought your car with a loan from a bank, credit union or other kind of lender, they will require you to get collision coverage in order to protect their car. You may be driving it, but technically, the car is theirs, and getting collision coverage will be stipulated in the terms of the loan.

How do I know if I have to get collision coverage?

Collision coverage requirements will vary from state to state, so if you’re wondering whether you have to have it or not, be sure to consult with an auto insurance expert. You can also simply make a call to your state’s Department of Motor Vehicles (DMV) and ask them what the state requires. Much of this information is also available on the internet. Collision coverage has many benefits as long as you are willing to explore the option.

Is Collision Coverage Always Important to Have?

Posted in Auto Insurance , Collision Insurance

August 5th, 2009
No Comments

Collision coverage, that part of your auto insurance that covers damages caused when you get into an accident, will be applicable regardless of who is it at fault. It’s very important to have collision coverage in order to protect your car. For some car owners it is crucial, if not mandatory – if their car is owned by a bank, the bank will require that the car have collision insurance. However, other drivers may want to consider whether they really need collision insurance in the first place.

If you’ve just bought a brand-new car then you probably did it with the help of a car loan from the bank. If that’s the case, then you’re paying off the loan over time, and that means that the bank is the true owner of the car. They have the right to require you to have collision coverage. If you drive an old clunker car, however, it may not make sense to get collision coverage. Why? Because your car insurance provider will only pay the value of the car. If your car is worth $1,000, and your damages come to $2,000, they won’t pay the difference – so why pay them every month for collision coverage? The amount of money you spend on the collision coverage will soon be worth more than your car. It just won’t make sense.

To learn more about car insurance, collision coverage, comprehensive coverage, and other aspects of car insurance, be sure to consult with an auto insurance professional. He or she can give you qualified advice regarding your auto insurance needs, and help you craft a policy that suits you best. It may include collision insurance and it may not. With expert advice, however, you’re more likely to make the right decision.

Why You Benefit from Collision Coverage Auto Insurance

Posted in Auto Insurance , Collision Insurance

July 24th, 2009
2 Comments

With collision coverage, everyone benefits. You, the owner of the car and the collision coverage policy, benefit because you will be financially protected (after paying your deductible) should there be an accident involving your car (and another good thing about collision coverage is that it applies even if you are responsible for the accident). In addition, if you’re paying for your car through an auto loan, the lender benefits because their asset – your car – is protected as well. No bank or other lending institution would be responsible for repairs to your car, but they definitely do not want to see their asset be damaged without insurance.

Why Collision Insurance

Have you recently bought a car? Whether you got it used or fresh off the showroom floor, this new car is a major investment on your part. Cars are expensive, and they’re incredibly important to us for their ability to make our lives so much easier. Have you ever been without a car for week, as an adult? Getting to work becomes an issue, going to the grocery story becomes an issue, getting the kids to school becomes an issue. The bottom line is that everything becomes an issue (throw in some bad weather on top of it and now you’re really looking at a bad mood). So, in order to protect your investment and your sanity, you need to get collision insurance coverage. Collision coverage will cost you, but you’ll get it all back in the form of peace of mind. In many instances, people don’t have a choice when it comes to getting collision coverage, because if you’ve got a loan for your car the lender will require as part of the loan terms.

***Buying a car is a big deal, and so is getting collision coverage. Before you do either one, speak to a car insurance expert. Also make sure you are getting the best auto insurance rates possible by comparison-shopping for quotes often. Go Insurance Rates offers free auto insurance quotes in only a few minutes. Fill out our online form and you could be on your way to saving hundreds each year on car insurance. The process is fast and easy.***

Considerations Before Filing an Auto Insurance Claim

Posted in Auto Insurance , Auto Insurance Claims , Collision Insurance , Liability , Property Damage

April 20th, 2009
No Comments

Auto insurance is supposed to be simple: you get into an accident, you file a claim and let your insurer handle it. But in reality, this is not always the case as there are things you should consider before filing an auto insurance claim.

Although state laws mandate certain types of insurance coverage to legally drive, there are no laws on record thatrequire you to report accidents to your insurance company. Every time you do file a claim with your insurance company, it is marked on your permanent record. Although your premium may not go up immediately, if there are enough reports over time there can be a negative impact to the total cost of your auto insurance.

Before You File a Claim

When deciding between filing a claim with an insurance company, there are some things to consider during the decision making process. For example:

• Will the repairs cost less than your deductible?
• Do you have a large history of auto insurance claims?
• Was your vehicle solely involved in the accident?
• Have you had a previous accident that you were found at fault for and filed a claim?

If you cause minor damage to your vehicle and there are absolutely no other cars involved in the collision, you may opt to pay for the repair out of pocket. If the deductible of the insurance is greater than the total cost of the repair, you would end up paying the expenses anyway. In this case, there is no need to report the incident to your insurance company as you are the only one who suffered any damage and the choice is entirely up to you.

Reasons You Should File a Claim

However, if you were in a collision with another vehicle, it may behoove you to file a claim and risk the increase to your auto insurance rates. Even if the other driver involved in the collision begs you for mercy you should think twice. By not filing a claim with your insurance company, the other driver still may come around and sue you for their costs and if you never made the claim to your company, they will have a harder time fighting to protect you. Many people involved in a car accident will immediately assess the damage and make their own estimates of how much it will cost to repair, and they may be grossly underestimating the costs.

Understanding Diminshed Value Payments

Posted in Auto Insurance , Auto Insurance Claims , Collision Insurance , Comprehensive Insurance , Liability , Property Damage

April 16th, 2009
No Comments

Once a car is damaged in an accident, it will truly never be as “good as new,” because of the diminished value caused by the wreck. Once a car is involved in a collision, although auto insurance may cover the repairs of the vehicle, the car will never be worth its full value again because repair work for an accident lowers the value of your vehicle. Your car will now have a permanent history of being wrecked, and consumers will not be willing to pay full price for a previously damaged vehicle, no matter how well the repair job was done.

Calculating Diminished Values

Typically the decline in value is 18% between thepre-crash and post-crash estimate. That difference is officially called the “diminished value.”Whether or not your auto insurance company will cover the difference of the diminished value payments depends on local state laws. In most states, the insurance coverage willguarantee that a car will be repaired to pre-accident condition, and unless state courts mandate otherwise, the diminished loss value is your loss to deal with.

No Laws Requiring Diminished Value Payments from Insurers

Although consumer advocates fight insurance companies to pay for a diminished value payment to policyholders (assuming their vehicle is restored and repaired), not all states agree it should happen. Because of the different views between policyholders, consumer advocates and insurance providers on this matter, there are a plethora of court cases battling out the rights in question.

45 states have language on the books limiting the coverage provided by the insurance coverage to exclude diminished value from the realm of their responsibility. TheInsurance Services Office (ISO) composed policy language that officially releases insurers from making diminished value payments in physical-damage coverage claims. OnlyGeorgia, Hawaii, Kansas and Maryland have not adopted this language, while Massachusetts does not use this language but followed an advisory committees policy ensuring no diminished value payments.

The only way to possibly claim a diminished value payment is if someone else hits you and is found in fault for the accident. Their insurance will take effect to cover your losses, and since you do not have a direct contact with their insurance provider, the language preventing you from claiming diminished value payments will not apply to you. This process is alsocalled a third-party claim.