banktime.com

Sticking with the same insurance company year after year may seem like the right thing to do. You are comfortable with them, your agent is friendly and calls you by your first name and sending them a check month after month is easier than shopping around. But blind loyalty to an insurance company can cost you bundles of cash and leave you with less coverage than you could find with another company. In fact, a recent survey by Consumer Reports revealed that many drivers pay twice as much for an auto insurance policy at their current company than they would with a competitor.

Finding the Best Rates

The best tool for seeking the best insurance rates is the Internet. With websites like Quicken Insurance and InsWeb it is faster and easier than ever to compare insurance quotes from top providers. These services submit your information to multiple insurance companie and they compete for your business, each submitting their own quote. Such competition can save customers hundreds of dollars per year on auto insurance.

A smart shopper will compare insurance rates at least once a year. This does not mean that one should go switching insurance companies year after year. Loyalty can and does have its benefits. Many companies, after years without a citation or accident will qualify you as a “safe driver,” which greatly reduces your rates. On the other hand, given your driving record, some other companies may offer you safe driver status right off the bat. Also, discounts are often granted if you insure other vehicles or your home with the same company.

An accurate quote will require you provide basic information on the car or cars you intend to insure such as the make, model, year, trim line and vehicle identification number (VIN). Personal information is also necessary. Be prepared to share the age, sex and recent driving record of all drivers to be included in the policy. Other information such as the environment in which the car is typically driven, where it is parked, and any anti-theft devices you may have installed are important in your rate. With all of the information compiled, your potential insurer will most likely check your driving history via police and other public records along with your insurance history.

Buy the Appropriate Amount

Remember that when you “sit down” to negotiate with an insurance agent, their job is to make as much money for their company as possible. Chances are they will offer you a slew of other forms of coverage that are not necessarily essential. Below, we separate what we believe to be the essential from the not-so essential forms of coverage you are likely to encounter when shopping for auto insurance.

“Must Have” Coverage

Bodily Injury Liability- Nobody expects or wishes to get in a car accident, but with around 6.5 million auto accidents accuring every year, statistics show they are inevitable. Should you be the cause of a car accident that results in the injury or death of your passengers, the other driver or his or her passengers, Bodily Injury Liability insurance is invaluable. According to Consumer Reports customers should “buy coverage that will pay at least $100,000 per person and $300,000 per accident. If you have sizable assets, consider increasing those limits to $250,000 per person and $500,000 per accident.”

While such coverage will undoubtedly raise your premiums, but should anything go wrong, this is well worth the cost. It is also recommended to those with a high net worth to take a out a separate “umbrella policy” to cover lawsuit amounts that extend beyond auto insurance policy limits.

Property Damage Liability- This coverage should be purchased to pay for the repair or replacement of damaged property caused by your car. States vary on their requirements, ranging anywhere from $10,000 to $25,000, but we recommend going for $100,000 of coverage as accidents often exceed state minimum requirements.

Uninsured and Underinsured Motorist Coverage- In the event of a hit and run or your getting in an accident with one of the many uninsured drivers on the road, this type of insurance covers you and the passengers in your car for medical bills, rehabilitation, funeral costs and losses for pain and suffering. It is highly encouraged to get an amount equal to your bodily injury liability insurance so in the event you are involved in an accident with an uninsured driver, your medical bills are covered.

“Should Have” Coverage

Collision and Comprehensive- Considering that most car accidents are collisions, this type of coverage is highly recommended. Collision insurance pays for repairs to your vehicle regardless of the cause of the accident. Comprehensive pays for repairs or the replacement of your vehicle in the event that it is stolen or damaged as a result of a natural disaster. This type of coverage is applied to any amount exceeding your deductable. To keep your payments down, it is best to go with the highest deductible you can afford to pay out of pocket with $500 being the minimum. When coverage equals or exceeds 10 percent of your automobile’s book value, we suggest canceling this coverage as the maximum payout you can hope for is your car’s market value.

Personal-Injury Protection- Also referred to as PIP, this pays you and anyone else riding in your car a minimum amount per person for their injuries regardless of fault. The benefits typically include medical expenses, rehabilitation, work loss benefits, funeral expenses and survivor’s loss benefits.

This type of insurance is especially worthwhile in states that have “no-fault” laws. No-fault laws establish that there is no need to establish who is at fault to receive payments in the event of injury in a car accident.

Medical-Payments Coverage- Regardless of who is at fault, this covers medical bills for you and your passengers. Such coverage is not necessary if you have a good health insurance plan, but you might want to have a little bit of this to cover any passengers who don’t have medical insurance of their own.

“Don’t Need” Coverage

Roadside Assistance- This pays for your vehicle to be towed. Many drivers belong to auto clubs like AAA which include roadside assistance or have this service provided by their car’s manufacturer. If this is the case, there is no need to purchase this coverage.

Rental Reimbursement- While the security of having a car paid for while you wait for repairs sounds enticing, there is usually a cap on the amount of days this service will be paid for, but not a cap on the amount of years an insurance company will allow you to pay for it. With different travel websites offering tremendous discounts on rental cars, this is one type of insurance you can afford to live without.

Money Saving Strategies

Ask for “Top Tier”- According to Consumer Reports, “Insurers sort customers according to their likelihood of filing a claim, then assign them to one of several categories commonly referred to as tiers. Top-tier customers who have had few or no claims in the past several years and live in neighborhoods where auto-theft rates are low can easily save 15% or more off of the standard rate.” Unfortunately, simply qualifying for top-tier status does not mean you will receive such status immediately. Simply asking can give you that little nudge you need to get the savings you deserve.

Check Rates Before You Buy an Automobile- Believe it or not, your car can have just as much of an impact on the cost of your auto insurance as your driving record. If you’re in the market for a new car, keep your insurance rates in mind when you do your shopping. For example, the cost to fix a Porsche is significantly larger than fixing a Honda. So before you go to the auto mall, know your rates and find a car that not only suits your tastes, but your wallet as well.

Go To Traffic School- Consider taking a driver improvement class. Usually, because they tend to be long and have a reputation for being boring, these classes are only taken by people who were given a speeding ticket and want to avoid points on their license. But by taking attending traffic school before you get a ticket, most insurance companies will offer a discount of up to 10%. Given the low price of most traffic schools (typically between $15 and $30), you will recoup the investment in a month or two and the rest goes in your pocket.

Get a Discount Just for Being You- Sometimes in the expensive world of insurance, the best way to get a discount is to ask. Perhaps you are a good student or a college graduate with a B average or better? You may be eligible for an insurance discount. Maybe you’re married? Discounts are available. Served in the military? Or just have a clean driving record? Discounts are available if you take the time to look and have the guts to ask. There are so many special programs out there offered by different insurance companies you are bound to fit the bill for one of them so be sure to ask.

Last week, the blowup over Hollywood actor/director Kevin Smith’s ejection from a Southwest Airlines flight sparked a flurry of controversy over the way that larger Americans travel. Southwest, a notable low-cost carrier in the U.S., has a policy stating that obese flyers who cannot fit into a single airplane seat without being able to put down the armrest must purchase two seats, both for their own comfort and for the convenience of passengers seated next to them.

The man who is currently in jail for killing three people with his Toyota Camry could have a whole new defense, thanks to the now-notorious recalls of many Toyota vehicles. Koua Fong Lee, a Hmong immigrant, was convicted in 2007 of killing a man, his son, and his niece.

If you have a car, then you are supposed to have car insurance. It’s just the way of the world. Obtaining auto insurance can be one of the most time-consuming and costly activities undertaken by a consumer, to say nothing of frustrating. You might think that shopping for and buying a car insurance policy is fairly straightforward, but think again: you might be duped by a car insurer who isn’t giving you the full story.

Having poor credit can make you feel like a lot of doors have been closed in your face. One of those doors might be the dream of having your own car. Unless you live in a big city where the excellent and expansive public transportation system makes owning a car unnecessary, having your own set of wheels to get around is practically a requirement these days. If you don’t have the cash to buy a car outright, you will need an auto loan.

The number of auto loan delinquencies and defaults has long been acknowledged as one of the bellwethers of the economy’s condition. In the darkest days of the recession, people were failing to make the monthly payments for their cars in massive amounts.

The US government is acting like the mediator of a schoolyard fight as it tells the press to stop bashing the Toyota Motor Corp. But officials are not stepping in out of the goodness of their heart. They are actually worried about the impact that the further denigration of the Toyota name could have on the already fragile U.S. economy, according to reports. Toyota is currently in the midst of a major drop in consumer confidence.

The beleaguered Toyota Motor Corp. is said to be considering the modification of its proprietary push-button ignition systems, according to an American company representative. Brian Lyons, a spokesman, said that the auto manufacturer has been giving thought to changing the system so that drivers can more easily turn the car off in the event of an emergency, presumably one like the accelerator or brake malfunctions currently affecting many new Toyota vehicles.

If you’ve ever had to deal with an auto break down, then you know first-handed how frustrating and potentially scary this situation can be. But the truth of the matter is this: cars are machines, and machines will inevitably break down. Even the sturdiest, newest car or truck can encounter problems, especially during the coldest months of the year.

Are you, like myself, a Toyota owner? Bad news for us, folks – our Toyotas are losing value at a faster rate than normal as the news of the ongoing company recalls has the Kelley Blue Book (the foremost authority in the pricing of new and used vehicles) devaluing some of the formerly best-selling vehicles in the country at a rapid pace. According to a news story that I read recently, the KBB values of recalled Toyotas have dropped by as much as four percent, or several hundred dollars less on average.

In a surprise to exactly nobody, Toyota has announced the recall of almost a half-million Prius hybrids along with several foreign incarnations of its flagship “green” hybrid vehicle. The vehicles are experiencing brake problems that have caused some drivers to lose ability to stop or slow down their cars over bumpy or uneven roads. The news brings even more shame to the world’s largest automaker, which is still reeling from the recall of more than ten of its best-selling models last month.