Top 5 Insurance Mistakes

Many times the only reason that people obtain insurance is because it is required. To obtain a home mortgage, the bank will require you to obtain homeowner's insurance. To drive in the United States, it is required to obtain some type of car insurance. Unfortunately, many see insurance as an unnecessary expense and do not pay much attention to the coverages they are obtaining or not obtaining. Below are 5 common insurance mistakes made by many.

1. Insuring a home for its market value and not the cost to rebuild. If the loan is higher than the cost to rebuild, then the bank will require you to insure the home up to the amount you owe. But if the market dips, like it has in recent years, the cost to rebuild will be higher than what you paid for the home. You need to have the home insured for at least the cost to rebuild or you could be left with a hefty bill to pay if your home burns down.

2. Only obtaining state-minimum liability limits on your car insurance. The state minimums will not sufficiently cover you if are involved in an accident involving significant damage. "I have never been in an accident and I don't plan on ever being in one," is a response I hear often. No one plans on being in an accident, but you cannot predict the future. State minimums will not be sufficient for many accidents.

3. Refusing to buy renter's insurance. I was counted among the many that felt renter's insurance was a waste of money, until I was robbed. Now I understand that renter's insurance provides peace of mind for a very minimal expense.

4. Lacking the understanding of what is covered. Most insureds do not take the time to read through the policies they have just purchased. To make sure you are insured correctly you need to actually read the policy and, if necessary, ask for clarification from your insurance agent.

5. Selecting insurance based on name recognition. Johnson Controls Inc. is a leading manufacturer of automotive interiors for cars and light-trucks and is worth 28 billion dollars, but have you heard of them? Many have not, but does that mean they are not excellent at what they do? Of course not. Just like Johnson Controls, there are many excellent insurance companies that you have not heard of, but that doesn't mean they are not excellent insurance companies. AM Best ratings, online reviews, and personal referrals are all excellent ways of researching an insurance company. I wouldn't recommend choosing an insurance company based on the entertainment value of their commercials.

Insurance protects you from financial ruin, if you are sufficiently covered. Don't make the five common mistakes above and you'll be well on your way to staying ahead of trouble. You may not like paying your insurance bill, but you'll be grateful you are properly covered if something does happen.

Top 10 Myths of Auto Liability Insurance

Let's address the top 10 myths of automobile liability insurance and how they relate to car accident claims. As a car accident attorney, I come across these issue quite frequently. This post is limited, however, to auto liability insurance and is not intended to address other types of insurance such as comprehensive and collision coverage. Let's take a simple auto accident as our example. Let's say you were involved in a car wreck where the other driver is at fault. The other driver gives you their insurance information. You contact the other driver's insurance company and report a claim for personal injury and car damage. This is called a third-party liability claim. You are a "third-party" because you are a stranger to the insurance policy between the other driver and their insurance company. It is a "liability" claim because you are claiming that the other driver is legally liable for the accident. Now that you understand the relationships between all the parties to the claim, here are my "Top 10 Myths" of liability insurance.
Myth #1. The insurance company is there to protect me. Wrong! Liability insurance is purchased by the policy-holder in order to protect the policy-holder against the injured person's claim. Since you are claiming that the other driver is liable for the accident, then the other driver's insurance company is there to protect the other driver against your claim. That why it is called "liability" insurance. It is purchased to insure and defend the other driver for their liability; not to protect the injured person.
Myth #2. I have to provide a recorded statement. You do not have to provide a recorded statement in a liability claim. As described in #1 above, the liability carrier is the other driver's insurance. Since they do not have any legal duties to you, you have no legal duties to them. The only reason the insurance company wants to take your recorded statement is because they want to use it against you in the future. If they are really interested in investigating the facts of the accident, they can just talk to you without recording the conversation. Don't let the insurance company tell you that you are required to give a recorded statement. You are not!
Myth #3. They have to provide a rental car. You are not entitled to rental car. However, they may decide to provide you with a rental if their insured's liability is fairly clear. They do this because they want to keep you happy. Otherwise, you might hire an car accident attorney which is something the insurance company always wants to avoid.
Myth #4. I have to use their repair shop. No. The Texas Insurance Code specifically provides that the insurance company cannot tell you where to get your car repaired and what parts to use. If you have trouble with the insurance company with these matters, the best thing to do is take your car to the body shop of your choice and give the shop manager the adjuster's contact information. Let the shop deal with the insurance company since they deal with these things on a daily basis.
Myth #5. I have to provide a medical authorization. Do not give the insurance company any authorization, especially a medical authorization. They normally send one to you with the typical claims paperwork and ask you to sign it. You are not required to do so. If you do, then you give the adjuster global permission to obtain any of your past medical records. It's just another ploy to dig up dirt on you. You are better off collecting your own medical records and bills that are related to the accident and sending them to the adjuster yourself.
Myth #6. I have to treat with their doctor. If you are injured in an accident, then it's your decision which doctor use. You are not required to go to the doctor recommended by the claims adjuster. You can go to the hospital, minor emergency clinic, family doctor, or any other doctor you choose to see.
Myth #7. The adjuster can close my claim. Sure they can close your claim. But, so what!?! Who cares!!! The only time limit applicable to your claim that is of any real consequence is the legal statute of limitations. In most personal injury cases, Texas law gives you two years to either settle your case or file a lawsuit. Don't let the insurance company pressure you into working on their time schedule. They want to pressure you to get the claim settled early before your medical bills get too high or distract you from hiring a lawyer.
Myth #8. They have to make a fair settlement offer. The insurance company has no duty to make any kind of settlement offer. However, there are two main factors that might (and I do mean "might") prompt an adjuster to try and settle your claim. First, insurance companies like to close claims in order to keep their workload and legal exposure at a manageable level. Second, if they don't try to settle, you might hire a lawyer. If you do, then the insurance company knows the claim may cost more to settle.
Myth #9. I can sue the insurance company directly. In an auto liability claim, it is the other driver that caused your injuries or damages. Therefore, your lawsuit is legally against the other driver. Some states do permit direct actions against the insurance company in a liability claim. But Texas law does not.
Myth #10. Getting a lawyer will hurt my claim. Of course not. Insurance companies would like you to believe that it would hurt your claim. They will tell you that a personal injury attorney will take a percentage of your settlement and you will end up with less. However, there are so many other factors that go into calculating attorneys fees than what the adjuster tells you. Besides, a lawyer is on your side fighting for your rights. The adjuster is on the other driver's side trying to defend against your claim. Who should you believe?

What to Know When Buying Your First Auto Insurance Policy

Insurance is one of our odd purchases. We buy it. Then afterward, we hope that what we bought is not a waste of money. Moreover, we hope we don't need to use it. But accidents do happen and when they do, be certain you are prepared for them. If you collide with somebody's car your auto insurance will cover the expenses, whether it's your fault or not. How much it can help you depends upon the options you choose in your insurance policy. Getting all the options is not necessary as you'll tend to spend more for your insurance if you do that. To get yourself the right auto insurance without overpaying, consider these factors:

Always put the safety of yourself and your family above anything else. Personal Injury or Personal Liability coverage should be given great importance when choosing an insurance package. When you are involved in an accident, the first thing that will get covered is your car insurance. If your car insurance doesn't cover the medical expenses, then your health insurance will.

Covers major accidents
What if your car gets in an accident that nearly destroys it? If it is the other driver's fault, his insurance will pay for the vehicle. However, don't rely on that alone. What if a natural calamity destroyed your vehicle? In that case, you need to have enough insurance coverage to either repair or replace your vehicle.

Deductible versus Premium
Your insurance's deductible is inversely proportional to the premium.
If your deductible goes up, then your premium goes down. If your premium goes up, then your deductible goes down. Deciding whether you want a lower deductible or a lower premium depends upon how much you want to pay to your insurance company.

Driving Experience
Insurance companies automatically recommend coverage for a particular driver. If you have a teen driver, it is better to have personal liability coverage with a lower deductible. Moreover, rates to cover teen drivers are automatically higher because of their lack of driving experience.

Where should I shop for car insurance?
If you don't have the time to research the best and cheapest car insurance rates in your area, you can use any number of comparison websites that check and compare car insurance deals.

How to choose your auto insurer
The first step in choosing the right auto insurer is choosing the right coverage. Once you have that, you need to look at the qualities of your auto insurer. These include:

Offering reliable and reasonable coverage
Some insurance companies have virtually similar rates and coverage due to state laws.However, most quote different prices for similar coverage. Check as many insurance companies as you can and inspect whether you are getting not only a reliable service but also a reasonable rate.

Covers your vehicle at all times
The worst part of a car insurance policy is the coverage is limited to a few situations. What could be more annoying than a denied insurance claim because the company claims it is not covered in their policy?

Basic Affordable Car Insurance - Does It Cover Your Needs?

The laws of the land require you to have auto insurance before you can take your vehicle out on the street. However, insurance payments can make quite a dent in your pocket, especially if you have taken out many different policies (multiple vehicles, home, life health etc.). It is quite common for people to search for the best car insurance quotes online in order to locate a company that offers affordable car insurance. As a matter of fact, you might be seriously tempted to take out a policy purely based upon its low cost.

If you have taken a bare bones insurance policy for your vehicle then you can certainly save quite a bit of money every year. Even so, it is very important for you to know exactly what benefits the policy gives you so that you are prepared for any eventuality involving your car. Keep in mind that the insurance laws can vary according to the state you live in and therefore should be purchased accordingly.

The most affordable car insurance policies obviously do not offer you any frills. They generally offer you only car liability insurance so that you have the ability to pay for damages caused by you to other people or their vehicles. Keep in mind that this type of insurance offers a limited amount of money to cover medical expenses or car repair expenses that you cause. In addition, it will not cover any expenses you have incurred as a result of the accident. In other words, you will have to pay your own medical bills as well as car repair costs if you have only the cheapest car insurance.

You do have to think long and hard about whether you need an enhanced level of auto insurance. After all, if you get into a very bad accident you will have huge bills to deal with. It is always best to prepare for any such eventuality even if you have to pay some money for it. The best thing to do is get the best car insurance quotes online, making a comparison of the different benefits offered by each one. This is also a good way to start negotiating with an insurer for a discount on rates offered to you in an initial quote. While it is too expensive to plan ahead for all your future needs in the event of an accident, you should certainly aim to reduce your risk.

Shopping for Car Insurance? Shop Wisely With These Tips

Many people believe auto insurance is downright confusing. The reality is that the more you understand about it the less perplexing it becomes, just like anything else in everyday life. The information shared in the following paragraphs ought to steer you in the right course toward saving on your premiums.

Retaining a clear driving record is the best vehicle insurance tip you may get. A vehicle crash will raise the rates quicker than just about everything in addition. When traveling, know about your limitations and weak spots and steer clear of any risky situations you can. By way of example, if you have problems with your sight during the night, steer clear of driving a vehicle after dusk.

Think about buying an insurance policy that covers a rental auto if needed on account of an accident. Should you not have a rental automobile provision within your insurance plan, you will need to pay money out of pocket for one when renting a car. Buy add-on rental car insurance this way may cost you another $20 every single day that the auto is in the shop.

Get automobile insurance tips from your community car maintenance shops. Automobile mechanics speak with insurance policy adjusters all the time. They can advise you on which carriers are simple to deal with and which are hard.

Don't jump at the very first low-cost estimate you see. The low-cost insurance you located may have gaps in coverage, but then again it could also be a gemstone in the rough. That's why should you do a proper analysis and authenticate the company's reputation, as well as the cost-to-coverage ratio.

Most states require liability insurance and vary as to coverage minimums so pay attention to your state regulations. You can expect to break state laws and encounter fiscal consequences if you have no insurance coverage and get into any sort of accident.

Carry out some research on your prospective insurance company's reputation. At times folks only concentrate on the price, but there is much more to consider when shopping for great insurance. Once you get cheap car insurance, you very often get first hand experience in the old adage of "getting the support you spend for." You usually discover later that the low price is at the cost of good service.

Discuss the way your miles influences your rates, and what to do about this with the insurance firm. There are numerous savings available like the discount for drivers that do not generate greater than 7,500 miles annually.

While you are shopping around for vehicle insurance policy, make sure you include residence damage accountability inside your coverage. In the event you don't, you might find you are spending far too much out of pocket for your damages when you have a crash. Combining your car and home insurance policies under the same carrier can also help you save a great deal of cash.

Tickets and points from mishaps will definitely reflect negatively upon your driving record requiring you to pay much more for your coverage. As soon as these negative marks expire form your driving record, your insurance premium will be reduced. As soon as these details are removed from your driving history, be sure to get new auto insurance estimates.

Aim for insurance coverage that is affordable and offers an adequate amount of financial security. Expecting the best in life while preparing for the worst will help you rest better at night.

New Driver? Insurance Tips for Lower Premiums

It's taken a while, but you finally passed your test! Yay! No more expensive driving lessons. I hate to break up the party, but if you have your own car, the overheads have only just started, and one of the biggest, as a new driver, is arranging car insurance.

Now insurance is always a pricey overhead but new drivers aren't exactly a good bet for insurance companies. I'm sure you're the best driver your instructor ever had the pleasure of teaching, but let's face it, he's probably passed out a fair few bad ones too. New drivers are generally young, impetuous, impatient and foolhardy. Insurers see an accident waiting to happen and statistically, new and young drivers are involved in more road accidents.

So it's no surprise that insurance premiums for new drivers are painfully high.

A Few Tips to Help New Drivers Reduce the Cost of Insurance

Black Box Policies

Do you believe you're a good driver? Inexperience doesn't necessarily equate to bad driving. If you're prepared to have your driving monitored there's an option which can prove to insurers that, even as a new driver, you're a better risk than the average. It's called a Black Box insurance policy.

A small device in your car monitors your driving behaviour and patterns; how fast you drive, how hard you brake; how often you break; do you drive during the day or at night? Do you drive on motorways or country lanes?. All this data, and more, paints a picture to the insurance company of what sort of driver you are.

A Black Box insurance policy (also called Telematics insurance) might go some way to lowering your premium if it shows you are a careful, low risk driver.

Advanced Driver Training

Pass Plus is a practical training course which aims to improve a new driver's ability in the first year of driving.

Going that extra mile can prove to an insurance company that you're committed to being a safe driver. If you finish Pass Plus training, you might be able to get a reduced premium on your insurance.

Have Your Own Insurance Policy

Isn't it far cheaper for a new driver to be added to mum and dad's insurance?

Only in the short-term. There are a couple of reasons why you should seriously consider taking out an insurance policy in your own name as soon as possible.

Firstly, whilst your car insurance is likely to be more expensive for that first year, the sooner you get it over with (without having any accidents!), the sooner you'll start to earn a no claims bonus in your own right. That's when the real savings will start to be made, with anything from a 10% to 30% discount typical after 12 months.

Secondly, if the car actually belongs to you and you are the main or only driver, you MUST take out your own insurance policy. Your parents cannot insure your car, with you as a named driver, if they are not the owners and/or the main drivers. Your insurance wold be invalid and you could be prosecuted.

Don't Drive Without Insurance

Even though car insurance is expensive for new drivers, don't neglect to arrange it altogether. The government is clamping down on the rising number of uninsured drivers on the UK's roads; you could risk prosecution, a fine, a criminal record and having your car taken away.

How to Find the Cheapest Insurance

Quite simply, leave it to those who know the insurance market inside out and have all the best deals at their fingertips. An insurance broker can find you the cheapest quotes in just a few minutes. This will save you a lot of time trawling websites and making phone calls.

A broker can also advise you about the type of cover that's best for your situation.

Affordable Car Insurance - 5 Tips To Minimize Your Expenses

One way of curtailing your overall expenses is to buy cheap car insurance. Even though you very well cannot avoid buying insurance for your vehicle you could still reduce the amount of premium you pay. One approach to getting cheap auto insurance is to cut down on your overall coverage. This is no doubt a risky approach since it exposes you to major expenditure in case you end up having an auto accident. Another approach is to ask and qualify for all possible discounts offered by insurers. Most people use a combination of both approaches to reduce the amount of premium they pay.

The following tips will help you minimize your insurance payments:

1. Most car insurance companies give a discount to people who drive less than a specific number of miles every year because of the assumption that they are less likely to have an accident; the limit varies according to the insurer. You should try to stay within this limit by using public transportation or carpooling whenever possible.

2. Take only as much insurance as you need. For instance, if you already have medical insurance then you do not need to take a car insurance policy that will pay your medical bills. Limit your policy to covering the cost of repairing a vehicle involved in a collision and also medical costs of other people involved in the accident caused by you.

3. Avoid filing minor claims with your insurance company. You can probably get them repaired for a small fee and will therefore be allowed to ask for a 'no-claim' bonus or discount.

4. On a related note, you should keep your deductable very high in order to reduce premiums. You'll have to pay out of your pocket for small expenses but you will at least get insurance cover for major accidents.

5. Do not pay for insurance cover that offers towing or a spare car. It is cheaper to get your car towed away if you ever need to do it. If you have another vehicle or easy access to public transportation or a shared ride then you will not even need the spare car.

As you can see, there are quite a few things that you can do in order to get cheap car insurance. It is definitely necessary to do some homework before you renew your auto insurance because you will save quite a bit of money this way without depriving yourself of the cover you need.

SR22 Insurance for Drunk Driving

If you are arrested and convicted of DUI, in numerous states your car insurance rates are more than likely going to increase for a minimum of three years and you will probably be learning at lot about something called SR22 insurance.

Whether your state calls it DUI, driving while intoxicated or driving under the influence, if you are convicted of any of those offenses, it is likely are your insurance rates will go up before you can drive again.

SR22 Insurance Laws Differ by State
The penalty regarding drunk driving varies from state to state, although in every state if you are convicted of driving impaired, your driving privileges will be suspended for a minimum of 30 days to a entire year, even for the first offense.

In a lot of states, to acquire your driver's license and privileges back, you will have to supply the licensing agency with an SR22 insurance form, which proves that you have motor vehicle liability insurance. Under SR22 insurance laws, the insurance company is mandatory to notify the licensing agency, typically the DMV, if the policy is terminated or cancelled.

It is Possible Your Premiums Could Triple
When you go to your car insurance representative to get an SR22 insurance form, your company will regard you as a high-risk driver and boost your insurance premiums. This is particularly true if you were formerly in a preferred class or had gotten safe-driver discounts.

If you are convicted of DUI, your car insurance premiums can double, and in a lot of states, could even triple. You might want to shop around; some companies specialize in high-risk policies.

SR22 Policies are Not Offered by All Insurance Companies
There are a few insurance companies that do not offer SR22 insurance policies. If you are convicted of DUI and your company does not offer SR22 insurance, the company will cancel or not renew your current policy. You will have to look for some other company that will offer SR22 insurance and when you do, it is a fact that your rates are going higher, because then you would also have a cancellation on your claims history.

A lot of states have laws that forbid insurance companies from canceling policies before the term expires, even if you are convicted of a DUI charge. You should check the laws in your state.

How Long Should Your Rates Go Up?
Again, laws differ from state to state, but normally a drunk driving conviction will affect your insurance status for at least three years in most states for a first offense. For ensuing convictions, the length of time is considerably longer.

Most states now have drunk driving laws that provide improved penalties for special circumstances, like if someone was hurt, if a minor was in the vehicle, if your blood alcohol concentration was above a certain level or if you were under the age of 21 at the time of your arrest.

For instance, in all 50 states, a blood alcohol concentration of.08 is the level considered legally impaired. But in 40 states, penalties for a DUI conviction are doubled if the driver registers a high BAC level (usually over .15 or .20).

Is it Possible to Avoid Increase Rates?
Increased rates for auto insurance only come into play if you want your driver's privileges restored. You can stay away from those extra costs by taking public transportation or even walking. Some states still permit the operation of mopeds without a license.

Even if you do not individually own a vehicle, but hope to have your driving privileges restored after a DUI conviction, you still have to provide an SR22 insurance form by buying a non-owner policy. In other words, you will have to purchase insurance for a car that you do not even own.

The best way to steer clear of increased insurance premiums is easy. If you are intoxicated then do not get behind the wheel. Get a taxi or a safe driver to take you where you need to go.