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Ron Trumbo
Insurance Editor
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Your car is the largest source of risk for being sued for everything you own, and in some cases, what you will own. Every car accident is different depending on the type of car you hit, and more importantly, the passengers in that car at the time. Do you have enough car insurance coverage to protect against possible insurance claims?
Every car insurance company has unique underwriting guidelines for evaluating different drivers. As a result, the points on your record may have a more significant impact with one insurer versus another. As always, it pays to shop around. Once you have cheap car insurance with a particular company, your insurer likely has the right to review your driving record. In fact, some insurers will review your record very regularly; they may review as often as once a year on your policy renewal date.
When your car is damaged by collision, vandalism, theft, or fire, you will need to decide where to take it for repairs. Some auto insurance companies maintain lists of "preferred" auto body repair shops, which the insurance company might recommend the consumer use.
Thinking about donating your vehicle? Remember that you're still making a charitable donation, and don't simply give your automobile away to any charity, just because they're a charity. Do a little research, and find a high-performing charity that does the kind of work you like, in the region you wish to target, and does that work well. Also, there are a lot of little thing you must know, like, if your car is worth more than $500, you must complete IRS Form 8283 and attach it to your yearly taxes.
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Your car insurance policy is a finance tool, and the deductible is one the most important parts that determines both the cost, and how much you’ll pay in the event of an insurance claim. In many cases, raising your auto insurance deductible from a very low $200 to $500, can lower your policy approximately 15% to 30%.
Always make sure that you are protected with some form of car insurance when you rent a car, and ALWAYS understand the terms and restrictions of your insurance coverage. If you are not insured by your existing car insurance policy or by your credit card, then you should consider purchasing the collision damage waiver.
When you receive your policy in the mail, you'll notice that it's a very thick stack of documents. Take a few minutes to read it — it's important. If you need help understanding everything, here's a few "cliff notes" from the declarations page to policy medical payments.
Skyrocketing car prices, longer car loans, and the car leasing trend justify the need for GAP insurance. GAP coverages provide protection for consumers when literally a GAP exists between the actual value of their car and the amount of money owed to the loan or leasing company.
Except in a few states, budget-minded drivers like you need to understand that credit history can affect how much you pay for car insurance. In states where credit is used for underwriting and payment options, insurance companies use your basic credit information into formulas that also take into account your accident history, years you have been driving, where you live, your age, gender and assorted other relevant facts about you.
All drivers should take 5 minutes and review their car insurance policies and compare different insurance carriers and protections levels and find better and cheaper coverage. Most importantly, make sure that you have enough car insurance protection against the enormous population of uninsured motorists.
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