Comprehensive Insurance Current Rates, News & Information

I Wrecked My Car, Now What?

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

August 5th, 2010
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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.

Comprehensive Auto Insurance Deductibles Increasing Faster Than Collision

Posted in Auto Insurance , Comprehensive Insurance

May 8th, 2010
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Deductibles for comprehensive auto insurance are rising almost twice as fast as collision deductibles in the United States, according to Mitchell International, an auto insurance market research company. As noted by the company, comprehensive auto insurance deductibles are rising at a pace of 160 percent faster.

Deductibles from 2003 to 2009 Studied

The data that Mitchell used for analysis included auto insurance deductibles from 2003 to 2009 for collision and comprehensive losses. In its analysis, the company found that collision deductibles grew during that period by 10 percent while comprehensive grew by 26 percent.

This data means that a growing number of U.S. consumers are choosing higher comprehensive deductibles as their vehicles age, as opposed to collision deductibles. In other words, vehicle owners are more willing to absorb the financial impact of a potential comprehensive claim, but not so much so with a collision claim.

Why More People Are Increasing Comprehensive Deductibles

One reason that people may be increasing their comprehensive insurance may be due to the fact that it seems collisions are more likely to occur on the road than incidents that spark the more-inclusive comprehensive claim, including hail storms or deer head-butting your car.

Also, according to Mitchell, a lot of people chose to increase their deductibles during the recession to lower their monthly premiums. Since comprehensive coverage tends to cost more than collision, many people opted to increase the highest-costing optional coverage.

Lastly, some people seem to increase their deductibles as their cars age, meaning they’d rather pay a lower premium and take the chance that nothing will happen to their cars as they start to care less about the body damage that could occur.

Do you prefer a higher deductible for your comprehensive or collision coverage?

When Collision and Comprehensive Auto Insurance is a Bad Idea

Posted in Auto Insurance , Collision Insurance , Comprehensive Insurance

September 16th, 2009
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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.

FAQ: What is Comprehensive Auto Insurance?

Posted in Auto Insurance , Comprehensive Insurance

September 14th, 2009
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Before being able to legally operate your vehicle, all states tend to require a minimal degree of automobile insurance or at least require that the vehicle owner has a certain level financial assets enough to act as compensation in an accident. But what would happen if your car was not involved in a conventional collision and damage occurred to your vehicle in a different way? That is where comprehensive auto insurance would kick in to help you offset the costs.

What is Comprehensive Auto Insurance?

Comprehensive auto insurance is a type of policy that will provide you coverage regardless of the source of damage (excludingmoving accidents and theft). Unusual but common “alternative” car damage such as fire, vandalism, natural disasters, including storms and hurricanes, or “acts of god” are all types of damage that would by covered by a comprehensive auto insurance policy.

Comprehensive Costs

As with all varieties of car insurance rates, the cost of comprehensive auto insurance fluctuates based on a slew of reasons. Your personal driving record, the type of vehicle being insured, your age and where the insurance is being purchased can influence the rate you end up paying for comprehensive coverage. Since collision auto insurance is not included under conventional auto insurance policies, it costs you additional money to purchase. However, that extra amount has the potential of preventing a huge financial set back for you if your car is totaled by an act that cannot be claimed against your car insurance policy.

Life is filled with surprises, some which are fantastic and others that can make you break down and cry. One way to ward off the negative impact of an unexpected surprise, such as a tree falling over and crushing your car, is to insure your car with a comprehensive auto insurance policy. Comprehensive auto insurance can help provide you with the peace of mind where there may otherwise be none.

Best Comprehensive Auto Insurance Rates

Posted in Auto Insurance , Comprehensive Insurance

August 26th, 2009
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Finding the best auto insurance rates takes a lot of time, effort, and research. You’ve really got to dig and make constant comparisons between all the offers out there, and be on the lookout for special one-time-only deals on auto insurance rates that could really help to lower your bottom line. One component of your quest for the best auto insurance rates will be comprehensive coverage. Comprehensive auto insurance covers the repairs to your car should it be damaged by fires, vandalism or any other event that is not a collision with another car or object. Theft, for example, is covered by comprehensive auto insurance.

What Determines the Best Auto Insurance Rates?

Getting the best auto insurance rates will be influenced by several factors. One of the biggest will be the value of your car. Is it a brand-new lease? If so, it will be worth a lot, and you’ll want proper coverage to protect it. On the other hand, you may have an old clunker that gets you where you need to go, but it’s not worth more than $1,000. Your car’s worth will play a big role in determining which auto insurance rates could work for you. If you’ve got a car that’s worth less than the cost to insure it, you may want to think about whether comprehensive auto insurance is worth paying for – it’s usually not.

Importance of Deductibles

Another factor that will play a big role in determining your auto insurance rates is the deductible you select. The higher your deductible the less you’ll pay on a monthly basis; the lower the deductible the more you’ll pay every month. Bear in mind that if you opt for the high deductible/lower monthly payment option you’re taking a risk should you actually get into an accident. Everyone has different comfort levels when it comes to taking risks, but everyone loves paying lower auto insurance rates.

How Much More Expensive Is Comprehensive than Liability Insurance?

Posted in Auto Insurance , Comprehensive Insurance , Liability , Low Cost Car Insurance

August 11th, 2009
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If you own a car, or are thinking about buying one, then you probably know you have to have car insurance. Only a few states do not require it, but what they do require instead is proof that you can pay for any accident damages you inflict on others out of your own pocket. A few people here and there can afford repairs or hospital bills, but they would bankrupt the vast majority of us, so we need to have car insurance.

Two general components of car insurance are liability insurance and comprehensive insurance. Liability insurance is itself broken down into two parts: personal liability insurance and property liability insurance. Personal liability insurance will pay for medical bills stemming from an accident for which you are at fault. Property liability insurance will cover property repair or losses stemming from an accident for which you are responsible. Comprehensive auto insurance, on the other hand, will protect you should your car be stolen, for example, or damaged at a car show. The auto insurance policies will cost you, of course, but generally speaking, comprehensive car insurance will cost you more.

When you buy auto insurance, you select the level and amount of coverage protection that you want, or can afford. It’s a trade-off, really: the higher your monthly premium, the lower your deductible. So, if you get into an accident and it’s your fault, and you pay a lot of money every month for a low deductible, you will pay that deductible and then be relieved seeing the insurance company pick up the rest of the tab. Your strategy will have paid off. If you pay a low monthly premium and have a high deductible, you’ll really feel the bite when you have to cough up the first $5,000 the other party’s repair bill.

Generally speaking, comprehensive auto insurance is more expensive than basic liability insurance because it must cover the full price of your car should it be stolen or declared a total loss due to an act of nature. Policy prices vary from state to state and insurer to insurer, so be sure to check out all your options.

To learn more about comprehensive auto insurance and liability auto insurance, be sure to consult with an insurance expert.

Do I Need Comprehensive Auto Insurance?

Posted in Auto Insurance , Comprehensive Insurance

July 9th, 2009
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Comprehensive auto insurance is an optional aspect of most car insurance policies that will cover the repair of your car, for example, should you smash into a tree, or a wall. Basically, it will pay for the repairs to your car incurred by an accident that does not involve another driver. It will also cover the market value of your car should it be stolen. Because of this, many auto loan lenders will require you to get comprehensive car insurance because they want to protect their asset (that being your car, which technically the lender owns until you’ve paid off your loan).

Thinking Twice about Comprehensive Coverage

People who are driving older cars – often referred to as “beaters” or “clunkers” – may want to think about getting comprehensive car insurance, however. That’s due to the fact that since their car isn’t worth very much, and comprehensive auto insurance will only pay out the market value of the car should it be stolen, it may not make sense to pay a monthly premium for comprehensive auto insurance. If your car is only worth $2,000, and you pay that much in comprehensive auto insurance every year, you’re not spending effectively.

When it comes to cars, some of us are really into them and some of us aren’t. If you think of enthusiasm as a spectrum, at one end are the young teenage boys and boys in their early 20′s who customize their cars and take great pride in them. At the other end are those of us who simply see cars as a tool to get from Point A to Point B. The rest of us will fall somewhere in between. Regardless of how passionate you are about your automobile, you should probably think about getting comprehensive auto insurance to protect your car.

To learn more about who needs comprehensive auto insurance, be sure to consult with an insurance expert.

Are you looking for the best comprehensive car insurance rates? If so, fill out our online car insurance form and within minutes Go Insurance Rates will provide you with free rate quotes from leading insurers competing for your business. It’s absolutely safe and secure.

Who Needs Property Damage Liability?

Posted in Auto Insurance , Auto Insurance Claims , Compare Auto Insurance , Comprehensive Insurance , Property Damage

May 11th, 2009
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If you are a new driver in the process of purchasing your first car, aside from the vehicle price tag there are other factors you need to include in your transportation budget. Car maintenance, fuel expenses and car insurance are all mandatory expenses that need to be worked into the final price. When it comes to car insurance, that cost will be influence by the type of vehicle you buy, your driving history, age, gender and the state’s minimum requirement for proper levels of insurance. Every state has their own laws governing the amount of insurance drivers must carry, and the state requirements for property damage liability is generally $5000-$25,000.

Why Property Damage Liability?

Everyone needs some degree of property damage liability as mandated by the local laws of the state in which they reside and insure their vehicle.Property damage liability will provide you with auto insurance coverage in the case you are found at fault of causing an accident. The insurance will kick in and provide financial coverage for the repair or replacement of vehicles and other structures (such as homes, buildings and telephone poles).

How Property Damage Liability Can Save You

Typically, a small level of this insurance is required by law, however, your personal needs may vary greatly and you may need more property damage liability auto insurance coverage then your state calls for. Consider if you are a homeowner with $10,000 of property damage liability car insurance. If you end up causing an accident with a luxury vehicle valued at $40,000 and their car is totaled beyond repair, you will be found responsible for making retributions. That means you may have to mortgage your home to the tune of $30,000 and up to pay off the remainder of the debt that you caused.

Even if you have a spotless driving record and feel 100% confident with your skills, you need property damage liability insurance to protect yourself and your financial assets in a worst case scenario. Not only may it be the local law of your state, it is a wise level of protection to add to your car insurance policy.

What Does Personal Injury Protection (PIP) Generally Cover?

Posted in Auto Insurance , Auto Insurance Claims , Comprehensive Insurance , Personal Injury Protection

April 28th, 2009
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If you want to legally drive your car, you need to secure your license, obey all the laws of the roads and make sure to have the proper auto insurance policy required by your state. In many states, personal injury protection (PIP) is mandatory and offers a great layer of insurance protection during your time of need. Not only will having the proper minimums of auto insurance help you to be a law abiding citizen, it can end up preventing financial ruin that can be triggered by a severe auto accident.

Personal Injury Protection Coverage

PIP in your auto insurance policy coverage generally covers costs incurred as the result of an accident without having to assign fault to any one of the participating parties involved in a collision in no-fault states. No fault states require that a driver’s own insurance policy will cover their damages regardless of who caused the accident or has been determined “at fault” by the police. The purchase of personal injury insurance is commonly required in addition to liability coverage in no-fault states. PIP coverage typically kicks in for smaller auto accident insurance claims, usually up to around $10,000 worth of claims.

PIP Requirements

If you and your passenger are injured in an accident, personal injury coverage is the portion of your insurance policy that will help cover some expenses. PIP covers the medical expenses incurred by the accident for both you and your injured party, plus any lost wages that may come from not being able to work and funeral expenses in the worse case scenario collision. 16 states require personal injury protection in their insurance coverage. They are:

• Colorado
• Delaware
• Florida
• Hawaii
• Kansas
• Kentucky
• Maryland
• Massachusetts
• Michigan
• Minnesota
• New Jersey
• New York
• North Dakota
• Oregon
• Utah

Even in the states that require personal injury protection coverage, there are some exceptions to what the policy will cover. They are:

• Injuries caused by farm equipment, recreational vehicles or motorbikes.
• Voluntary self inflicted intentional injuries
• If a felony was occurring the time of the accident

Understanding Diminshed Value Payments

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

April 16th, 2009
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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.