5 Smart and effective tips to save on auto insurance policy
July 16, 2010
When you think of insuring your vehicle, then the first thing that comes to your mind is how to get the cheapest rates on the auto insurance policy. When it comes to finding the cheapest rates, you need to compare auto insurance quotes. There are some smart tips that will enable you to save money on auto insurance rates. Read on to know about them.
1. Shop for insurance quotes: Before taking an auto insurance policy, you must compare auto insurance quotes offered by various insurance companies. Experts are of the opinion that you should get at least three price quotes from three insurance companies. The more you choose from options, the better you can make a choice.
2. Maintain a good credit record: Insurers often use credit information to decide whether or not you qualify for a loan. You need to maintain a good credit score to become eligible for auto insurance. Pay your bills on time, don’t go for more credit than you need and try to keep your credit balances as low as possible, to keep your credit score intact.
3. Ask for high deductible: Deductible is the amount that you have to pay out of your pocket when you file a claim, before the insurance company starts paying. Hence, if you ask for a high deductible, then you will be charged less on the premiums every month.
4. Ask for low mileage discount: As you compare auto insurance quotes, you will see that there are various kinds of discounts. Check with your insurance company whether they offer a discount for drivers who drive lower than average number of miles per year. Try to drive less to save on your auto insurance premiums.
5. Avoid high theft cars: Try to avoid buying those cars which are more prone to theft or even to accidents. Sports cars can be driven very fast and hence it becomes more likely to face accidents. Such cars will cost you heavily on premiums. It is safe to buy a low-profile car.
Follow the above mentioned points to save those extra dollars on your auto insurance policy. Compare auto insurance quotes from different insurance companies to get the best results.
Different types of insurance and their purposes
July 9, 2010
Since the future cannot be predicted, it’s better to get it insured. There are different insurance policies, which you can choose according to your needs and urgency.
Types of insurance policies
All insurance policies are important since they are for the things you possess and don’t want to lose. So you should get them insured. Some of the most important insurance policies are cited below:
1. Life insurance
This policy ensures the family members of a sole bread earner financial security after his death. When you are the only person who has all the responsibility of your family, it’s always important to go for life insurance policy. This way, part of your premium is put into savings account so that money is not a problem in the future
2. Health insurance
This is also an important insurance policy that pays for all the treatments and medications if you are seriously injured. Suppose you are involved in an accident and don’t have health insurance, you will have to pay for the treatment from the money you have saved. If you don’t have the money required, you may fall in medical debt and the hospital may stop your treatment. It’s better to have a health insurance to ensure you a secured and healthy life.
3. Property insurance
This insurance policy ensures the property you own. This is also very important as you spend a good amount of money on the things you possess and so it’s only natural that you should have property insurance. This policy provides coverage against fire, earthquake, vandalism, etc. This insurance policy protects your assets which can be business or your personal property. Usually homeowners policy covers for most of the personal property.
4. Auto insurance
If you own a car or a vehicle, it’s important that you have auto insurance. This policy covers the cost of the damage caused to the vehicle and you in an accident. It also pays for the damage the other party incurs in an accident. This insurance policy also covers your vehicle from the damage caused by natural calamities and robbery, vandalism, etc.
The above list gives you an insight of the most important insurance policies you should go for.
The History Of Insurance In America
July 4, 2010
Insurance was a latecomer to the American landscape, largely because there were just too many known risks, and even more unknown ones. When it finally did make it over, it was supported by one of the most famous Americans in history. Let’s take a look at the history ofinsurance in the U.S.
Benjamin Franklin and American Insurance
Not content with the titles of statesman, scientist, inventor or author, Benjamin Franklin added insurer to his collection. In 1752, the Philadelphia Contributionship for the Insurance of Houses from Loss by Fire became the first mutual fire insurance company in America. Much like London in the 1600s, houses at this time were made almost entirely out of wood. Worse yet, the settlements that grew into the cities were built close together. This was originally done for security reasons but as cities grew, developers built homes very close to each other for the same reasons they do today – to fit as many homes as possible on their development plots.
The Philadelphia Contributionship for the Insurance of Houses from Loss by Fire set new standards for building houses because it refused to insure houses that were considered fire hazards. The criteria they used to evaluate buildings would one day be reworked into both building codes and zoning laws. Seven years later, Franklin was also instrumental in getting the first life insurance company, the Presbyterian Ministers’ Fund, off the ground. (To learn more about life insurance, read How Much Life Insurance Should You Carry? and Life Insurance Distribution And Benefits.)
The various religious authorities at the time were outraged at the practice of putting a value on human life, but criticism cooled when it was seen that insurance worked to protect widows and orphans. The industrial revolution then brought the necessity of both business insurance and disability insurance to the forefront. Throughout history, the types of insurance offered have been expanded in reaction to new risks. 1864 saw the Travelers Insurance Company sell its first accident policy. 1889 saw the first auto insurance policy. As time progressed, new types of insurance were blooming along with the risks of an increasingly modern life. (For more insight on insurance, see Five Insurance Policies Everyone Should Have.)
Original Content Courtesy Investopedia
The Harford Launches I-Phone App
July 4, 2010
The Hartford Insurance company recently joined the iPhone application race when they launched The Hartford Mobile for iPhone. According to their website,
- Access our auto accident checklist
- Collect and exchange driving and accident info, including accident photos
- Reference handy roadside guides, like an interactive Emergency Kit Checklist
- Locate an auto repair facility from our national network of approved shops if you are interested in this option
- Save and review accident history
- Find a replacement vehicle – new or used – and at a great price
- Get help for a cracked windshield through our national Glass Repair service – it’s fast and convenient
- Request help when you’re stranded through our RESCUE 1-800 roadside services
- Store your vehicle and insurance information for quick and easy access
- Special features for customers of The Hartford: express connect to our award-winning Claims Services to painlessly report an accident, as well as submit accident photos and notes directly from your iPhone
Original Content Provided by The Hartford
Progressive Auto Insurance Announces Android Mobile App
July 1, 2010
Car insurance giant, Progressive insurance, announced the launch of their new mobile application based on Google’s Android operating system. According to ComScore, Android is the currently the fasted growing smartphone segment today. Other companies including GEICO and Travelers have already launched applications for Blackberry and I-phone smartphones. Progressive auto insurance however, claims to be the first insurance company to launch applications for Android based smartphones.
Existing Progressive customers can use the application to make payments, manage their claims, and locate local agencies. While new clients can compare rates for different cars and get quotes using the android insurance application. Progressive also added the ability to watch their TV commercials.
Matt Lehman, Progressive Auto’s Web experience director stated, “We’ve seen a 30 percent increase in visits to our mobile Web site by Android users over the past four months. Our Adnroid app is designed to simplify the mobile experience for this fast-growing group of customers.”
Based on their press release at Progressive.com, users can:
- Get car insurance quotes and buy a policy
- Make payments and update policy information
- Get directions to a local independent insurance agent
- Get directions to the closest service center, where customers receive Progressive’s concierge level of claims service
- Research crash test results and recall notices
- Calculate and budget for monthly car loan payments
- Compare the relative costs to insure different types of cars
- Report and track claims
- Watch Progressive’s latest TV commercials
Tracking Hurricane Alex
June 30, 2010
- The coast of Texas south of Baffin Bay to the mouth of the Rio Grande River
- The coast of Mexico from the mouth of the Rio Grande to La Curz
WATCHES AND WARNINGS——————–CHANGES WITH THIS ADVISORY…
According to Weather.gov, tropical storm and hurricane warning remains in effect for to following: The coast of Texas south of Baffin Bay to the mouth of the Rio Grande RiverThe coast of Mexico from the mouth of the Rio Grande to La Curz
ALEX IS MOVING TOWARD THE WEST-NORTHWEST NEAR 7 MPH…11 KM/HR. A SLOW WEST TOWEST-NORTHWESTWARD MOTION IS EXPECTED OVER THE NEXT 24 TO 48 HOURS. ON THE FORECAST TRACK…THE CENTER OF ALEX WILL APPROACH THE COAST OF NORTHEASTERN MEXICO OR SOUTHERN TEXAS BY LATE THIS AFTERNOON OR EARLY EVENING…AND MAKE LANDFALL IN THE HURRICANE WARNING AREA LATE TONIGHT OR EARLY THURSDAY MORNING.
MAXIMUM SUSTAINED WINDS REMAIN NEAR 80 MPH…130 KM/HR…WITH HIGHER GUSTS. ALEX IS A CATEGORY ONE HURRICANE ON THE SAFFIR-SIMPSON HURRICANE WIND SCALE. ADDITIONAL STRENGTHENING IS FORECAST…AND ALEX COULD BECOME A CATEGORY TWO HURRICANE PRIOR TO LANDFALL. ALEX WILL BEGIN TO WEAKEN AFTER ITS CENTER CROSSES THE COASTLINE.
HURRICANE FORCE WINDS EXTEND OUTWARD UP TO 25 MILES…35 KM…FROM THE CENTER…AND TROPICAL STORM FORCE WINDS EXTEND OUTWARD UP TO 200 MILES…325 KM. NOAA BUOY 42055 LOCATED SOUTHEAST OF ALEX RECENTLY REPORTED SUSTAINED WINDS OF 54 MPH…86 KM/HR WITH A GUST OF 63 MPH…101 KM/HR.
THE MINIMUM CENTRAL PRESSURE MEASURED BY AN AIR FORCE RESERVE UNIT HURRICANE HUNTER AIRCRAFT WAS 959 MB…28.32 INCHES.
HAZARDS AFFECTING LAND———————-RAINFALL…ALEX IS EXPECTED TO PRODUCE TOTAL RAINFALL ACCUMULATIONS OF 6 TO 12 INCHES OVER PORTIONS OF NORTHEASTERN MEXICO AND SOUTHERN TEXAS…WITH ISOLATED MAXIMUM AMOUNTS OF 20 INCHES. THESE RAINS COULD CAUSE LIFE-THREATENING FLASH FLOODS AND MUD SLIDES…ESPECIALLY IN MOUNTAINOUS TERRAIN. RAINBANDS ASSOCIATED WITH ALEX ARE SPREADING ONSHORE IN NORTHEASTERN MEXICO AND SOUTHERN TEXAS.
WIND…TROPICAL STORM CONDITIONS ARE EXPECTED TO REACH THE COAST WITHIN THE HURRICANE AND TROPICAL STORM WARNING AREAS LATER THIS MORNING…MAKING OUTSIDE PREPARATIONS DIFFICULT OR DANGEROUS. STORM SURGE…A DANGEROUS STORM SURGE WILL RAISE WATER LEVELS BY AS MUCH AS 3 TO 5 FEET ABOVE GROUND LEVEL ALONG THE IMMEDIATE COAST TO THE NORTH OF WHERE THE CENTER MAKES LANDFALL. THE SURGE COULD PENETRATE INLAND AS FAR AS SEVERAL MILES FROM THE SHORE WITH DEPTH GENERALLY DECREASING AS THE WATER MOVES INLAND. NEAR THE COAST…THE SURGE WILL BE ACCOMPANIED BY LARGE AND DESTRUCTIVE WAVES.
TORNADOES…ISOLATED TORNADOES ARE POSSIBLE OVER PORTIONS OF EXTREME SOUTHERN TEXAS TODAY.
forecast courtesy of www.weather.gov
CAR INSURANCE MYTHS DEBUNKED
June 21, 2010
Is it more expensive to insure red cars? Is Comprehensive coverage really comprehensive? Should you and your neighbor be paying the same amount for car insurance?
Leading car insurer Progressive debunks a few of the more widely held myths:
Myth: Red cars cost more to insure.
Reality: Vehicle color is not a factor used to calculate car insurance rates. Factors that do matter are the year, make, model, body type, engine size and age of your car, as well as information about the drivers on your policy.
Myth: I only need the state-required, minimum amount of car insurance.
Reality: Many states have minimum car insurance requirements, but the required liability-only insurance may not cover all your costs. If you cause an accident, your insurance might not cover all the damages. Consult with your local independent agent to select the coverages and sufficient limits that meet your needs so that a fender bender doesn’t cost you big bucks.
Myth: Comprehensive coverage protects drivers in all situations.
Reality: Comprehensive coverage is one type of protection available on an auto insurance policy (others being Collision, Uninsured Motorist, etc.). Comprehensive coverage pays only for damage caused by an event other than a collision, including fire, theft, vandalism, weather and more.
Myth: My car insurance rates will be similar to my neighbor’s rates.
Reality: Car insurance rates are individually determined, so factors such as age, driving record, type of vehicle, and marital status are considered. Each person’s situation is unique and car insurance rates will vary because of this.
Myth: If I buy a new car, my auto insurance company automatically knows and my new car is covered.
Reality: No. Most insurance companies require that you notify them or your agent within a specified number of days. Generally, you have 30 days to add the new vehicle to your policy.
For more information, talk to your local agent or contact us at info@txinsurancepro.com.
FOUR QUESTIONS TO GET THE RIGHT TEXAS AUTO INSURANCE COMPANY
June 17, 2010
Using the right tool for a job is key to success in any profession. Experts say the same principle applies when selecting a Texas auto insurance policy. Having the right type of policy can help ensure that you, your employees and your business are all protected in the unfortunate event that one of your vehicles is involved in an accident.
If you’re a business owner and you or your employees use a vehicle for business-related deliveries or to carry certain materials to and from a job site, you may need a commercial auto insurance policy that’s tailored to more closely suit the needs—and risks—of a business vehicle operator.
Here are some questions that can help you determine if you might need a Texas commercial auto policy instead of a personal auto policy:
- Do you need more liability coverage than your personal auto policy provides? Generally, a commercial auto policy provides higher limits of liability, but less or no coverage in areas that are typically not associated with commercial auto risks.
- Do you need special coverage for situations associated with conducting business? Commercial auto policies also usually offer certain coverages—such as hired and non-owned auto coverage and coverage for towing a trailer for business use—that are not available with personal auto policies.
- Do you need to list any employees as drivers? You can do this with a commercial auto insurance policy.
- Do you use your vehicle for business purposes? If you use your vehicle for things like pizza or newspaper delivery, catering, door-to-door consulting service, landscaping or snowplowing service, logging business, day care/church retreat van service and/or farm-to-market delivery, you might need a commercial auto policy.
Your independent insurance agent TXINSURANCEPRO.COM can help match you with the type of policy that best suits your needs and those of your company.
Does your Texas auto insurance company offer accident forgiveness?
June 15, 2010
If you have auto insurance in Texas, you have probably heard insurance companies making claims that they will forgive your first accident. That is right. I said many Texas auto insurance companies will forgive your accident. Before you run to the nearest parking lot and hit back into your neighbor’s car, you’d better check the fine print.
Each company has a different definition of accident forgiveness. Here are a few questions to ask when your auto insurance company says that they will forgive your accident.
- What’s the threshold? Some Texas Insurance companies will forgive all your accidents under a $400 or $500 payout. So if you bump into your neighbor’s car and they insist on calling your insurance company, low cost claims under $400 will be completely forgiven. As a result, your rates won’t change.
- Will I lose any discounts? Some Texas auto insurance companies like to play games with the accident forgiveness. Their pricing is so complicated that even if they forgive an accident, you still lose an accident free discount. As a result, even though they forgave your accident, you still got a rate increase because you lost the accident free discount. Is that confusing or what?
- Do I pay more for accident forgiveness? Some car insurance companies actually make you purchase a higher level of coverage so that you can get “unlimited” accident forgiveness. This may be a good package if you have a teenager with a bad driving record. However, if you have a clean driving record, I thought the purpose of the exercise was to save money on your car insurance. So if your agent says that you have the Gold or Platinum package, you might want to continue looking around.
- How long does it take to earn accident forgiveness? Some auto insurance companies offer accident forgiveness only been claims free or “surcharge” free for a number of years. While other companies offer accident forgiveness after you have been insured with them for a number of years without an accident. Each Texas insurance company has their own version of earning accident forgiveness.
Accident forgiveness can be an extremely useful tool on your Texas auto insurance policy. As we previously mentioned, each company has different definitions for their accident forgiveness and claims free discounts. The next time you shop for insurance in Texas, these four questions can go a long way into helping you decide which insurance company and insurance agent is best for you.
2 Texas auto insurers top complaints list and face investigation
June 15, 2010
By TERRENCE STUTZ / The Dallas Morning News
tstutz@dallasnews.com
AUSTIN — Larry Randall was one of thousands of Texas drivers in accidents last year that weren’t their fault. But unlike many, the Richardson engineer’s problems were just beginning after the collision. The driver who sideswiped his 2006 Chrysler Sebring and forced him off the road in May 2009 had a policy with an insurer that Randall later discovered was among the worst in handling claims. Loya Insurance, a Texas auto insurance company, initially balked at assuming responsibility for its policyholder — who tried to flee the scene — and then said it would pay just $270 for damages and expenses that Randall estimated was nearly $1,700.
“They tried to ignore me from day one, and then they finally sent me a check covering a fraction of my claim. When’s the last time you heard of major damage to the side of a car being fixed for $300?” Randall said, noting he has not cashed the company’s check.
Loya is one of two large Texas auto insurers that had a complaint record well above the state average in 2009, according to a new listing of “justified” complaints handled by the state Insurance Department. Those complaints from Texas drivers included such practices as delays in processing claims, unsatisfactory offers or settlements, denial of claims and liability disputes An analysis of the Insurance Department figures by The Dallas Morning News showed that 10 of the 25 largest auto insurers in the state — those with more than 100,000 policies — had worse-than-average customer service records.
The two Texas auto insurance companies at the top of the list — Loya and Old American County Mutual — are now being investigated by the Insurance Department for violations of state regulations, an agency spokesman said. Loya, which collected more than $283 million in premiums last year, performed nearly four times worse than a typical Texas insurer, according to the state-calculated “complaint index.”
Market value
Edgar Meza, vice president of claims for Loya, said many of the complaints stem from differences over the market value of cars that are totaled and from accidents involving a person driving a Loya-insured vehicle who has been excluded from coverage. Meza also said Loya serves a unique customer base, typically lower-income drivers who have trouble obtaining insurance He also said complaints against the insurer are down significantly in 2010 — and that Loya takes those complaints seriously.
Old American County Mutual, a Dallas-based company that collected nearly $539 million in premiums, had a complaint index of 3.42 — or about three and a half times worse than a typical company. Old American declined to comment on the complaint numbers. No other company besides Old American and Loya broke 2.0, which would be twice the average. The two insurers have a business relationship, and Loya is listed as one of several managing general agents for Old American on its website.
Hospital administrator Peggy Bryant of Rockwall also had troubles with Loya after her Volkswagen was hit by a driver insured by the company. “It was quite an ordeal,” she said. “They low-balled the damage by over a thousand dollars, and then the games began. They told me they weren’t going to pay the difference even though their client took responsibility for the accident.” Bryant, who had to sue to get her claim paid, said of her experience: “I hope to God I never get hit again by somebody with Loya insurance. If I do, I’ll probably hire a lawyer right away.”
Arlene Gillespie of Dallas was driving with her 3-year-old daughter in a Dodge Caravan a year ago when a Loya-insured driver ran a stop sign and broadsided her. The driver, who Gillespie suspected had been drinking, ran off but dropped his wallet and cellphone, allowing police to determine his identity. “They just gave me the run-around when I called,” she said of Loya. “At one point they told me someone had stolen [their client’s] vehicle and they couldn’t find him — so they weren’t going to pay.” When the insurer finally agreed to compensate her for the car — which was totaled — they denied her claim for leg injuries she sustained in the collision.
When Gillespie complained to the Texas Department of Insurance, Loya said they made a mistake in paying for her car and insisted they really owed nothing. Gillespie is still trying to recoup her medical expenses and is considering legal action. Old American County Mutual has similar complaints on file.
Jack Montoya of Rowlett battled the company and one of its subsidiaries over damage done to his 2005 Cadillac STS by a driver insured by Old American who rear-ended his vehicle a year ago. “Just trying to get hold of them was near impossible,” he said of his efforts to contact the company and get his car repaired. “When I finally got in touch with them, they went straight to the point and said they weren’t going to pay for all the damage — and I’d have to live with it.” Most of the damage was to the rear bumper and muffler.
When he threatened to complain to the Insurance Department, “they told me to go right ahead,” he said. He eventually received about $2,000 but still had to pay about $300 out of pocket because the company depreciated the value of the muffler.
Agency’s role
Ben Gonzalez, an Insurance Department spokesman, said the agency is limited in how it can respond to consumer complaints. For example, the department cannot force a company to pay a disputed claim if there is no violation of the law. Also, the agency cannot decide who is at fault in an accident. “We cannot resolve every case,” he said. “Complaints do help us identify issues of concern with a particular company.”
Gonzalez said the department “has pending enforcement cases” against Loya and Old American. He said he could not discuss the Loya case, but he released documents indicating that Old American has been cited for canceling hundreds of auto policies after claims were filed on each. The company says the policyholders made false representations in applying for insurance, according to state documents. A hearing on the allegations is later this year.
HOW TO FILE AN INSURANCE COMPLAINT
•Consumers must file a complaint by phone (1-800-252-3439), e-mail ( consumerprotection@tdi.state.tx.us) or the complaint form on the agency’s website ( www.tdi.state.tx.us).
•After studying the complaint, the consumer protection division sends the insurer a copy and asks for a detailed written response to the complaint.
•The Insurance Department staff then determines if the claim or any other issue was handled properly under the policy.
•The staff also reviews the file to assess whether laws were violated.
•If violations are found, the department institutes an enforcement action that can result in sanctions ranging from a fine and restitution to revocation of the insurer’s state license.
SOURCE: Texas Department of Insurance
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