I.I.I. Dispels Top Eight Auto Insurance Myths to Help Consumers Save Money
When purchasing car insurance, you probably already have a good idea about the factors that affect your car insurance premium rates and coverage. But how do you differentiate between truth and fiction?
The Insurance Information Institute (I.I.I.). dispels common myths about auto insurance and shows you how you can save money:
Myth 1. Color determines price of auto insurance.It doesn't matter if your car is red, green or purple. What does matter is the type of car you select. Before you buy a new or used car, check into insurance costs. Auto insurance premiums are based on make, model, body type, engine size, the age of the vehicle, age of the driver, driving record and credit history. They are also based, in part, on the car's sticker price, the cost to repair it, its overall safety record, and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft. These include daytime running lights and anti-theft devices.
"For years there has been this notion that color plays a significant part in calculating insurance premium costs, many people believing that red cars cost more to insure because they're linked to aggressive driving or speeding," said Loretta Worters, vice president with the I.I.I. "The fact is, insurers have no interest in the color of a car, but they are interested in knowing if you have had any previous car accidents, the number of miles you drive annually and where you live," she explained.
Myth 2. It costs more to insure your car when you get older.Many drivers over 55 years of age can qualify for a reduction in auto insurance rates, typically for three years, if they have successfully completed an accident prevention course. Insurance companies will usually provide up to a 10 percent discount on car insurance, but check with your provider before you sign on. Mature driving courses are available through local and state agencies as well as through the AAA and AARP. You can also check with your insurance agent to find out which defensive driving courses are approved by your insurer. If you are retired or are not employed full time, you may also be eligible for a discount of up to 5 percent off your car insurance. Age requirements for this type of discount vary by state and insurance carrier.
Myth 3. Your credit has no effect on your insurance rate.Your credit-based insurance score does matter. An insurance score is a measure of how well you manage your financial affairs, not your financial assets. Many insurance companies take your insurance score into consideration when you want to purchase, change or renew your auto insurance coverage. Because the majority of people have good credit, and insurance scores are derived from a person's credit history, most people pay less for insurance when insurance scores are entered into the pricing equation.
Myth 4. Your insurance will cover you if your car is stolen, vandalized or damaged by falling limbs, hail, flood or fire.Comprehensive and collision coverage are optional coverages. Lenders frequently require drivers to buy comprehensive and collision coverage as a condition of a car loan agreement. Those driving older cars sometimes drop these coverages as a way of saving money. If a car is worth less than $1,000 or less than 10 times the insurance premium, purchasing the optional coverages may not be cost effective. But bear in mind, you need to purchase both collision and comprehensive coverage in order to fully protect your vehicle from all types of damage.
Myth 5. You only need the minimum amount of auto liability insurance required by law.Almost every state requires you to buy a minimum amount of auto liability coverage. Chances are that you will need more liability insurance than the state requires because accidents often cost more than the minimum limits. In today's litigious society, buying only the minimum amount of liability means you are likely to pay more out-of-pocket for losses incurred after an accident—and those costs may be steep. The insurance industry and consumer groups generally recommend a minimum of $100,000 of bodily injury protection per person and $300,000 per accident.
Myth 6. If another person is driving your car, his or her auto insurance will cover them if they get in an accident.In most states, the auto insurance policy covering the vehicle is considered the primary insurance, which means that the auto insurance company for the vehicle must pay for damages caused by an accident. Policies and laws differ by state, and you should become familiar with these differences when allowing another person to drive your car.
Myth 7. Soldiers pay more for insurance than civilians.No matter what branch of the military you are in, you qualify for a discount on auto insurance. In some situations you might be able to have your commanding officer make a phone call on your behalf, but for most auto insurance companies, you will need to supply documentation that lists your name, rank and the time that you will be enlisted in the service. This allows insurance companies to determine how long you will be eligible to receive a military discount. Many auto insurance companies provide discounts for former members of the military and their families as well.
Myth 8. Personal auto insurance covers both personal and business use of your car.If you're self-employed and use your vehicle for business purposes, personal auto insurance may not protect you. While auto insurance geared for businesses can be more costly than a personal policy, one of the best ways to keep your auto rates down is by having a good driving record. If there are others using your car they need to have good driving records too. Check the records of your employee drivers at least twice a year to ensure they maintain a clean driving record.
FOR MORE INFORMATION ABOUT INSURANCE: www.iii.org
or to get competitive car insurance quotes, please call NOVA Insurance Group, Chantilly / South Riding, VA
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Labels: 20151 Car Insurance, 20152 Car Insurance, Auto Insurance in South Riding / Chantilly
Rental Car Insurance
Do you need rental car insurance?By Tara Baukus Mello • Bankrate.com
Many people think they have adequate insurance coverage when driving a rental car, either through their personal car insurance policy or via extended coverage on a credit card. In many cases, that's not true.
Without adequate coverage, you could be held responsible for all or some of the expenses associated with an accident -- even if the accident is deemed not your fault or is the result of a defect associated with the car. And the possibility of driving an unrepaired rental car that's been recalled is substantial. A recent report by the National Highway Traffic Safety Administration said that 30 percent of recalled cars in the U.S. aren't repaired, since there is no law requiring recalled cars to be repaired.
Determining if you have adequate rental car insurance coverage is not as simple as confirming you have rental car coverage on your personal car insurance policy. This coverage can vary widely by state and insurer. For example, drivers who have some rental car coverage on their personal car insurance policy may find that it only covers rentals when your car is in the shop -- but not if you rent a car for travel. Other policies may not provide enough coverage due to policy limits. For instance, in the event of a total loss you may be limited to the value of your personal car, which may not be enough if the car you are renting is worth more.
Many credit card companies offer the "perk" of added rental car insurance when the cars are rented using that specific credit card. However, the most common perk is the reimbursement of your deductible, which is usually only reimbursed after your insurance company settles the claim.
If your credit card company provides rental car coverage beyond reimbursing the deductible, make sure you read the fine print carefully. Some cards require you to pay the bills first and will reimburse you later. Some limit or don't cover cars that are rented for an extended period of time, and some credit cards won't cover certain types of cars that are rented.
Even if you do have adequate coverage, you will still be responsible for your deductible, if applicable, and your coverage will be limited to the coverage and amounts you have purchased. If this coverage is not enough, you will be held liable for the remainder by the rental car company and potentially by any injured parties.
If you learn that you are not adequately covered when renting a car, you can purchase additional coverage from the rental car company. Most rental car companies offer a wide variety of coverage, ranging from those to cover the deductible on your personal auto insurance policy to extensive coverage that would protect you, your passengers, the rental car, your belongings and the other people and cars involved. Ask about these optional products and be sure to read all the documentation to understand the coverage you are purchasing before you sign the rental agreement.
For all your car insurance needs, please call NOVA Insurance Group in Chantilly, (South Riding), VA at tel: 703.263.7800. http://agent.allstate.com/ku/Welcome
Labels: Allstate South Riding, Auto Insurance in South Riding / Chantilly, Chantilly Auto Insurance, Chantilly Car Insurance
Red Light Cameras!
Red-light traffic cameras are reducing the number of fatal crashes in some cities, according to a new study.The report by the Insurance Institute for Highway Safety concluded that from 2004 to 2008 red-light cameras saved 159 lives in 14 of the biggest U.S. cities. If cameras were installed in all large cities during that period, a total of 815 deaths would have been prevented, the study says. "The cities that have the courage to use red-light cameras despite the political backlash are saving lives," said Adrian Lund, president of the Institute for Highway Safety. The study, which was released this week, looked at 99 cities with populations over 200,000 and concentrated on two four-year time periods, 2004-08 and 1992-96. Researchers compared collision rates in cities with red-light cameras to those without.
Red-light cameras have stirred controversy with some officials claiming the technology is just a source to generate revenue while others argue cameras do not reduce crashes. The National Motorists Association has been vocal in its opposition to red-light cameras. On its website, a spokesperson for the association said, "Intersection accidents are just that, accidents. Motorists do not casually drive through red lights. More likely, they do not see a given traffic light because they are distracted, impaired, or unfamiliar with their surroundings ... Putting cameras on poles and taking pictures will not stop these kinds of accidents."
For some law-enforcement officials, red-light cameras are essential for traffic enforcement. "The red-light cameras are tools that help us enforce traffic laws because we have a limited number of resources and a large volume of traffic, especially during peak hours," Santa Ana police Cpl. Anthony Bertagna said. Santa Ana has 20 red-light cameras at 15 intersections. A 24 percent drop in the fatal crash rate occurred in signalized intersections after red-light camera devices were installed, the report said. The rate of fatal red-light violation crashes dropped 44 percent.
"The number of accidents in intersections that have cameras has reduced at a higher rate than the intersections that don't have cameras," Bertagna said. But, at the same time, in Anaheim, the fatal crash rate at intersections with signals dropped by 29 percent despite not having red-light cameras.
The biggest drop in the rate of fatal red-light violation crashes came in Chandler, Ariz., where the decline was 79 percent, the report says. Steve Finnegan, government affairs manager for the Automobile Club of Southern California, said traffic-law enforcement needs to be done in a way that focuses on safety: "Some of the automated enforcement programs are being implemented in ways that are designed for revenue generation instead of safety." If red-light cameras are implemented properly, then they can improve safety, Finnegan said.
Contact the writer: amolina@ocregister.com or 714-704-3795.
For all your auto insurance needs, Please call NOVA Insurance Group, located in Chantilly, VA at Tel: 703.263.7800Labels: 20151 Auto Insurance, 20152 Auto Insurance, Allstate South Riding, Auto Insurance in South Riding / Chantilly, Chantilly Car Insurance
