Do I need special coverage for my leased car?

It’s not out of the ordinary for leasing agents to require special coverage for leased vehicles. Such coverage is designed to protect you and your leasing company from damages and/or losses that could occur for the duration of the lease.

Without special coverage, you may find yourself on the hook for thousands of dollars if you’re involved in the accident that results in expensive repairs or a total loss of the vehicle.

If you decide to lease a car, you may be required by your leasing agreement to have the following auto insurance coverage in addition to the state-mandated liability limits:

  • Comprehensive – Covers damage and/or losses caused by fire, theft, vandalism and other incidents other than a car accident. For example, if your car is damaged in a tornado or hurricane, comprehensive insurance will cover the cost of repairing the damage or, if necessary, replacement of the vehicle. This coverage is usually paired with collision insurance.
  • Collision – Covers damage and/or losses if your car is damaged or destroyed an accident. Whereas liability coverage does not cover damage to your property, collision coverage will cover the costs of repair or replacement of your vehicle after the deductible is paid.
  • GAP Insurance – In the event of a total loss, this coverage bridges the gap between the value of the vehicle and what you owe on your loan or lease. For example, if you owe $15,000 on your loan and the value of the car is $12,000, GAP coverage will take care of the remaining $3,000.

In addition to the above coverage, you can work with your independent agency to add additional coverage to your policy that will provide you with even more protection in case the unthinkable happens. We can also help you find the best coverage for your money by comparing insurance quotes online from multiple carriers. As a responsible driver, it falls on you to purchase the right types of coverage for your specific need.

Learn the Insurance Laws for Your State

Learn the Insurance Laws for Your State.Should you believe that “insurance is insurance wherever I live,” think again.While the primary components usually apply to insurance in general, individual states pass their own laws and publish specific regulations. Assume nothing. Learn about your state’s insurance laws and retain an experienced, licensed agent to advise you.

Whether you need auto, home or business insurance, become familiar with your state regulations to ensure that you purchase the proper coverage. For example, most U.S. states require a specified minimum of liability coverage for auto insurance coverage. However, the minimum amount of coverage can vary from state-to-state. Also, the necessity for multiple liability protection, including property damage and uninsured motorist coverage, may also vary.

Once you learn the minimum coverage your state requires, spend some quiet time thinking about the assets you are protecting. For example, if your state requires minimum liability insurance of $25,000 per person, $50,000 per accident and $10,000 property damage, consider this coverage in light of your personal assets. Should you own a home worth $250,000, an $18,000 boat, personal property valued at $30,000, and bank savings, checking and investment accounts with total balances of $75,000, your state’s minimum coverage is not sufficient.

As the cost of vehicle repair and medical treatment skyrockets, most state minimum coverage limits are too low to protect you should a serious accident occur. Understand that people who are injured in auto accidents can successfully sue you for their damages in excess of your liability coverage limits.

You should use a similar approach to your home insurance. If possible, insure your home for “replacement value,” instead of a specific amount only. Should serious damage occur to your home, the cost to make quality repairs often exceeds the amount of the covered loss, typically the pro-rated amount of coverage minus depreciation. With replacement coverage, your insurer should cover the total cost to restore your home to its former condition.

Always shop for the best deal within the parameters of your state laws and the amount of assets you must protect. You can save time using an independent agent with an interactive website. Instead of trekking all over town talking to agents, a multi-carrier insurance agency can give you multiple quotes from major companies that have attractive rates in your state.

Will My Auto Insurance Cover My Friend if I Let Them Borrow My Car?

Will My Auto Insurance Cover My Friend if I Let Them Borrow My Car?Many people lend their vehicles to friends and family members they trust without giving it a second thought, but this decision can lead to major consequences without the right auto insurance coverage. Determining whether or not your auto insurance will cover a friend driving your car will vary from policy to policy. At the very minimum, the law requires you to purchase liability auto insurance coverage. Liability insurance would cover you from the expenses that you would be liable for in the event that you are involved in an auto accident that causes property damage or bodily injury to another party involved. Considering the high costs of medical care and legal fees if a lawsuit were to come of the accident, liability insurance can protect you from having to drain your savings for one accident.

Unlike collision coverage, liability insurance covers the driver and not the car. This means that if a person were to borrow your car, their own insurance policy would be responsible for covering the damages that occur as a result of an accident. Therefore, it wouldn’t be a significant risk for you to let someone borrow your car, as long as that person had some form of insurance on their own. Alternatively, a friend without a personal insurance policy would be solely responsible for any incurring damages while driving your car. Although this wouldn’t necessarily affect you, it is usually best to avoid this scenario.

Letting a friend borrow your car occasionally is one thing, but if you live with someone who frequently drives your vehicle, you should consider adding him or her to your policy to ensure full coverage in case of an accident. If this situation applies to you, it’s best to talk to your insurance agent about authorizing this person to drive your car by officially designating it on your insurance plan. Having this authorization would guarantee that you both would be fully covered in case an accident were to occur.

Does My Insurance Cover Me if I Drive to Mexico?

Does My Insurance Cover Me if I Drive to Mexico?If your next vacation takes you beyond American borders, you’ll want to consider how this might affect your auto insurance coverage. For south of the border excursions, the U.S. State Department claims you should assume that your American auto insurance policy will not cover you for any traffic accidents that may happen in this region. To acquire proper coverage, you will have to purchase Mexican automobile liability insurance from an insurance company with proper authorization from the Mexican government.

According to the law in Mexico, drivers must be able to pay for all damages to the involved party when the accident occurs. Failure to purchase Mexican insurance can significantly limit your ability to pay for these damages, which AAA claims could even result in jail time while an investigation is being conducted. Although the consequences for not having Mexican auto insurance are harsh, the solution is relatively easy. According to AAA, you can purchase valid Mexican auto insurance fairly easily from a broker that sells it along the border. This is usually the most effective method, since you would not even have to cross the Mexican border to purchase the necessary insurance, which would drastically reduce your risk of getting into an uncovered accident.

Although Mexican law does not require you to purchase collision insurance, it is certainly worth considering to ensure protection on your vehicle in case of an auto accident. Collision coverage included in your American insurance policy may not cover damage that occurs while you’re in Mexico, so it’s important to understand the risk you are taking if you fail to purchase Mexican collision coverage. Some additional considerations to make when purchasing Mexican auto insurance is including coverage for legal aid and bail bond as part of your insurance policy. This may be necessary since Mexican law tends to assume that all parties involved in a crime are guilty until proven innocent, which could lead to your detainment until the police reach a consensus.

Is the Cheapest Type of Car Insurance Right for You?

Is the Cheapest Type of Car Insurance Right for You?Saving money on your insurance premiums is wise. Buying insufficient coverage just to save premium cost is not. Auto insurance coverage is not inexpensive and seems to consistently confuse shoppers. Those few remaining U.S. states that lack an insurance coverage requirement have financial standards that drivers must meet. Often, car owners need more financial assets than those who simply buy adequate insurance coverage in those states that accept no insurance protection.

However, if you are focused on obtaining the cheapest auto insurance available, you have some options. Understand that, in most U.S. states, insurance “follows the car.” Therefore, should you opt for the least expensive type of auto insurance, liability coverage, you may only be fully covered when you are driving your insured vehicle. Should you borrow a vehicle from a friend or family member and suffer an accident, the first line of defense will be the insurance (or lack thereof) on the borrowed car. Should you be deemed “at fault,” however, your personal liability coverage will probably be required to reimburse your friend’s company for paid claims.

The cheapest type of auto insurance coverage is liability. Do not misunderstand this statement, as liability insurance is not inherently “cheap.” Minimum state law typically requires, at least, liability coverage. Individual states determine he minimum limits each driver must carry. Common liability minimum coverages are in the $25,000 per person, $50,000 per accident (regardless of the number of injured persons involved), $10,000 property damage and around $10,000-$20,000 uninsured (or underinsured) motorist coverage.

Although the cheapest car insurance coverage, minimum liability policies are often insufficient for many drivers who have more valuable assets (homes, boats, bank accounts, etc.) to protect than the least expensive insurance can cover. Further, neglecting to purchase collision and comprehensive, e.g., theft, coverage will save you premium dollars. However, should your car suffer physical damage, broken windows or theft, costs to repair or replace your vehicle will come from your pocket and personal funds.

Liability-only coverage will be the cheapest coverage in all U.S. states. However, it may not protect you to the level you want or need. Yet, it will help. Something (liability insurance) is far better than nothing. Even if you seek the cheapest car insurance, shop via the Internet. Good options are often those independent agents with interactive websites that allow you to shop multiple companies and receive several quotes for identical protection.

Home and Auto Insurance: The Power of Law Compels You

Combine and Obtain BenefitsAlthough it’s probably fair to say that home and auto insurance companies get your business by appealing to your fear of what might happen without it, it’s not fair to say that getting yourself adequately insured is a fear-based decision. It’s actually a decision based on intelligence and practicality.

Home and auto insurance is unlike health insurance (so far) in that we’re compelled by law to have policies. There’s rarely ever an opt-out for car or home insurance. For example:

• If you want to drive, you’re required by law to have a certain amount of insurance coverage. This differs from one state to another, and before you go seeking out instant insurance quotes online it’s your responsibility to find out what the minimum requirement for coverage is in your home state.
• If you want to mortgage a home, you’re required by the lender to have a certain amount of home insurance. This is because the home actually belongs to the lender. Once the home’s yours and you’ve made your final payment, you can do whatever you want with your home insurance, including canceling the coverage.

The trick, then, is to do everything in your power to get home and auto insurance coverage that won’t break the bank. Using online engines that will give you instant insurance quotes is a great way to begin your search.

Required Austin Car Insurance

Austin InsuranceIf you live or work in Austin, Texas, and are looking for car insurance, you may wonder exactly how much coverage you actually need. You know there is a “state minimum,” but you are concerned that it might not be enough.

Only you can decide how much insurance coverage you will need, and that will depend on a number of factors. These factors include:

  • For example, if your car is not yet paid for, the lien holder may require you have full coverage, or if you use your car for business purposes, you employer may require you to have full coverage. If it is paid for, and is an older car, you may be able to get by with just liability.
  • Texas state minimum insurance requires that you have $25,000/$50,000 in bodily injury liability and property damage liability of $25,000. Again, unless you are required by your lien holder or employer to have full coverage, this is all the auto insurance coverage you need to be considered legally covered in Austin, TX.

If you want more coverage, you can choose from several options:

  • These include coverage for injuries caused by an uninsured motorist (coverage amounts are usually $25,000/$50,000), personal injury protection (usually $2,500), and medical payments ($2,000). Remember, these are optional; they are not required coverage requirements.

The best thing to do is to first determine if you are required by any other entity except the State of Texas to have full-coverage insurance. Then, get several quotes on both full coverage and liability alone. This will help you decide how much insurance you need.

Understanding Texas Auto Insurance Liability Coverage

Texas Auto InsuranceWhen you start comparing Texas auto insurance coverage benefits and rates, you will see the word “liability” listed as one of the coverage benefits. Simply put, liability coverage means that your insurance company will pay for damages to other vehicles or property that were caused by your vehicle.

What is Liability?

The liability portion of your Texas auto insurance is what pays for the repairs to the other person’s car, as well as medical and other expenses, if the accident was your fault or if it occurs in a “no-fault” state.

What is No-Fault Insurance?

A very simple explanation of a “no-fault” state is one in which drivers involved in an accident file claims with their individual insurance companies, no matter who was at fault. Depending on the insurance laws of the 12 states which have no-fault insurance (they’ll be listed later in this article), each driver’s insurance companies pays for their covered driver’s repairs, and in some cases medical expenses and lost income.

No-fault insurance also means that neither driver can sue nor otherwise file a claim against the other person unless or until the costs incurred in the accident have exceeded a certain amount. Then, and only then, can lawsuits or other actions be taken.

What Are The No-Fault States?

The 12 no-fault states currently are: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.

How Does Liability Coverage Work in Texas?

As you can see from the list above, Texas is not a no-fault state. This means that in most circumstances fault will be placed on one of the drivers involved in an accident, and it is that driver’s liability coverage that will pay for repairs and other expenses to other vehicles.

 

Understand your texas insurance options

Understand The Policy

When you start shopping around for Texas home or automobile insurance coverage, you may think that it is necessary to take out as much insurance as possible to cover as many incidents as you can This is not necessarily the case. You should carefully consider which options are best for you personally. Some of these options for Texas home and auto insurance coverage are:

  • Medical coverage in case someone is injured in your home. Some Texas insurance companies make this an option, and it can save you money on your premiums. However, you should be aware that if an injury to someone else occurs at your home, they can file a lawsuit or other claim asking you to pay medical and other expenses. For this reason alone, many Texas residents go ahead and include at least a small amount of medical coverage.
  • Coverage on unattached buildings (sheds, garages, barns, etc). Some insurance companies include these in the homeowner policy; others do not, and you can decide if you want to have coverage on those buildings. If your house still has a mortgage, you may not have options; the mortgage company may require you to have the most complete coverage possible.
  • For Texas auto insurance: Full coverage or liability only: depending on the age of your car, and whether or not it is paid off, you can sometimes choose to just take out liability insurance. This pays only for damages to other vehicles or property as well as other expenses that happened as a result of an accident; it does not pay for repairs to your car or medical expenses for you. If your car is not paid off, you may have to take out full coverage.

AgentInsure Makes Auto Insurance Easy

Find Car Insurance Quotes with AgentInsureWhen you are shopping for your auto insurance it is important to get various car insurance quotes and home insurance quotes from agents. This will allow you to find the most comprehensive coverage for you and your family at an affordable price.

To find an AgentInsure agent in your area for auto insurance please visit AgentInsure and get a free quote now for auto insurance.

Drivers are required under the law to have and maintain auto insurance coverage. If you own a vehicle you have to carry the proper insurance coverage. Without the proper coverage you could face stiff fines and penalties. That is why you should make sure you completely understand the legal requirements and make sure you are protected.