My Personal Finance Blog

Doesn’t it feel sometimes that when it comes to auto insurance it’s like playing the game no one tells you how to play it right and where the rules are written without your consent? Well, to ease the situation, here are some auto insurance rules most insurance companies won’t tell you about.

1. If your credit rating is good you will have better rates.

Most of the insurance providers, whether big or small, use credit information to determine the rates you will be charged with. That’s because numerous studies have shown that there’s a direct link between a person’s credit rating and the probability that the very same person would file an insurance claim. Those who have poor credit scores tend to file claims more often than drivers with good credit reports. And we know how insurance companies don’t like insurance claims.

Tip: If your credit report is not that good, don’t haste with buying auto insurance. First, make sure you have settled all your debts and closed unused credit lines. After doing this wait for a month and your rates will be much lower than you would expect.

2. The model of your car affects your premiums.

Insurance companies don’t disclose the exact methods they use to calculate their rates, but your car make and model certainly plays an important part in the equation. All insurance providers have charts on all car models and their respective insurance cost based on theft rates, repair costs and overall safety.

Tip: Try purchasing a car with reasonable repair costs, good safety scores and low theft rates in your area in the first place. This will always give you the chance of having cheap car insurance.

3. Bad driving means higher rates.

Most insurance companies will raise your rates up to 40% of the initial premium you’ve paid if you have a single at fault accident. However, not all companies follow this rule.

Tip: There are insurance providers that have higher tolerance for first-time accident drivers. So when you purchase your cheap auto insurance policy or ask the provider if they have such incentives and what are their rules.

4. If your friend borrows your car and ends up in an accident you will still have to pay higher premiums.

It doesn’t matter who was driving the car if it was with your own consent. It will be you who will file the claim and this will eventually lead to increase in your premiums.

Tip: In case you didn’t give consent on using your vehicle your friend will be liable for the accident. However, if he or she doesn’t have own insurance or the damage resulted exceeds the amount of coverage contained with his or her policy the other party may come to you in order to settle additional medical and repair costs.

5. Official cancellation is required when switching providers.

You are free to cancel your policy any time you feel the need to. All that is required is to inform your current provider in written form.

Tip: After you have searched for cheap auto insurance and chosen another provider you can simply contact your insurance agent and inform him that you want to cancel your current policy from a certain day. In most cases the company will send you a filled out form where only your signature will be required.

Tornadoes are a type of natural calamity that is quite characteristic for the US, namely its South-Eastern part. And if you have a policy for insuring your house and living in that area you really want to make sure you are covered to the right extent before the disaster strikes. Here are some useful and very helpful tips regarding tornado coverage that will be quite interesting to those who risk with their property every time the hurricane season comes their way.

Step 1: review your insurance policy

In contrast with storm and flood coverage, the insurance details connected with tornadoes are less complicated due to the fact that wind damage (which a tornado eventually delivers) is included into a standard insurance policy. Moreover, tornadoes are usually characterized by less devastation due to surge or flood that is associated with typical hurricanes.

Still, it never hurts to find and analyze your insurance policy. Even those who do not live in “Tornado Alley,” the part of the US spreads across the north of Texas through east of Nebraska and northeast of Indiana, can suffer damage due to tornadoes. Texas, Oklahoma and Kansas are the states where the appearance of twisters is more likely but this doesn’t mean that you are perfectly safe in other areas.

Step 2: clear the things up afterwards

After the tornado has gone away contact your home insurance company immediately. There are time limits with some insurance policies, setting a certain period during which you are able to file a claim. This period usually varies from one state to another, as well as between companies. Inform your insurer about the degree of damage delivered by the calamity. Insurance claims are usually processed with the cases of the most severe damages being processed first and then carrying on with less serious impact.

Provide your insurance company with all the contact information you can. The insurer should be able to contact you immediately if they make a decision or need additional information. The period of time that will be required for processing your claim strongly depends on how complicated your case is and how bad the damage was. It could be a couple of days, or a couple of months.

Step 3: document the damage

When you have the opportunity take pictures of the damage delivered by the tornado, preferably immediately after it goes away. This will be a great assistance for processing your home insurance claim. Record any conversations and store any receipts you receive after the storm. Your personal degree of organization is directly related to how swiftly any problems will be resolved. In case you forgot the value of some items that were lost or damaged by the tornado you can contact your credit card provider and check the purchase list for the numbers.

Step 4: be on the lookout

Some service hunt for tornado victims, offering costly or temporary repairs that won’t do much good in the long run. Don’t rush off signing contracts and letting the people do their job. Investigate the offers, compare them just like you would compare home insurance quotes, address your local Better Business Bureau and hire the professionals who have good feedback and working experience rather than those who will show up first near your devastated property.

Replacing a windshield can be very costly. Depending on the model of vehicle you drive, windshields can cost up to $1,000. Windshields in cars today have inserts of all kinds – heating coils, radio antenna, satellite antenna and more. These inserts drive up the cost of the windshield considerably, leaving replacement an extreme expense.

There is good news – you can get glass coverage included on your auto insurance policy that will cover repairs and replacements of your windshield, and if you have an expensive windshield, this is a viable option.

Auto glass insurance claims can differ from policy to policy, so it is important that you understand how your insurance coverage is set. Many auto glass insurance policies allow for free repairs of chips and cracks in your windshield, thusly offsetting the cost of expensive replacements.

Most auto glass insurance policies will require you to pay a deductible for windshield replacement, a set amount that you pay and then insurance kicks in for the rest of the cost to replace your windshield. While you will still have to pay some money out of pocket, in most cases, it’s not nearly as expensive as paying for the replacement fully.

With your auto glass insurance policy, you will need to be careful though. Before you get auto glass insurance, there are a few things you need to find out. Firstly, find out from an auto glass repair shop how much a windshield will cost to replace in your vehicle.

Find out how much a factory windshield costs and a standard windshield. Then find out if your windshield could be repaired (some can not be repaired). You will also need to find out how much your insurance will cost you to add auto glass coverage (in yearly premium) and how much your deductible will be.

Most vehicle owners replace their windshield once per year. The total cost of your yearly premium coupled with your deductible is how much money you will pay each year for a replacement windshield. If that cost is higher than a replacement windshield paid for out of pocket, then it is more worth it to bypass the auto glass insurance all together.

Your insurance rates will escalate as you use them, including for auto glass replacement. However, many insurance companies will pay for free repairs, you will have to gauge on your own whether the monthly premium is worth the free repair (most repairs cost around $50.00).

If you need to have your windshield replaced or repaired, contact your insurance agent to find out if they prefer one auto glass repair shop over another and how the claim will be covered. Your insurance agent can give you the name of a Houston Texas auto repair or replacement shop that you can take your vehicle to have your windshield repaired.

It is best if you do some math and request the input of your insurance agent when deciding on whether or not to purchase auto glass insurance for your vehicle. In some cases, paying the premiums for glass coverage is not a viable option – if you will end up paying more in premiums than for the cost of replacement, then auto glass insurance is not for you.

Catching a chip or crack early is best as well for you, and your pocket book. Having a chip or small windshield crack repaired is cost effective and gives you back integrity in your windshield.

In most cases, the repair can hardly be seen, and in some cases, the repair is nearly invisible. Windshield repair is a cost-effective solution to windshield cracks and chips – staving off the need to replace the windshield completely.