The Price of Being at Fault: How Much Will Your Insurance Go Up if You’re In an Accident?

Raises Your Insurance PriceHere’s something you probably don’t ever want to think about. How much will your car insurance increase if you’re involved in an accident? Sure, it’s an unpleasant thought—but it’s something that you have to consider when you compare auto insurance premiums, if for no other reason than to make absolutely certain that you secure the cheapest deal possible. After all, what good are super low vehicle insurance rates if a fender bender will send them suddenly soaring?

The fact is, your car insurance premiums aren’t likely to go super sky high if you’re involved in an accident. But they can increase significantly, and painfully so if you’re already living on a tight budget. To find out what that amount’s going to be, be sure to read the small print on the policy to determine what the insurer’s surcharge schedule is. The average increase is somewhere between 20 and 40 percent if the accident is your fault, but since it’s up to the insurer the amount could end up being much higher or much lower. By performing a thorough comparison of surcharge percentages ahead of time, you could limit your financial exposure in the event of an accident.

But even if you’re able to ensure a low penalty surcharge by reviewing the fine details when you compare auto insurance plans, remember that you’ll very likely lose your good driver discount if you cause an accident. In some cases, those discounts can be pretty deep. Ultimately, the answer to saving money on car insurance is to drive safe and not cause accidents. If you can manage that, you’ll always find yourself in a good position to take advantage of low rates.

Exclusions Required On Your Policy in Delaware

Exclusions Over Damaged HomeDelaware home insurance gives the insurer protection against loss or damage to her or his contents,dwelling and also additional living expenses. Any damage or destruction of the house caused from disasters will be compensated by your home insurance. Many of the standard insurance companies do not cover certain types of disasters in certain areas, for example earthquake and flood which require additional coverages. Your home insurance must be updated to the existing value whether the inflation rate goes up or down and any appraisal made by the insurance company will be added to your insurance policy premium. Special premium charge are required for fire insurance as well as on site fire suppression systems to qualify and also the smoke detectors.

For every loss that happens the home insurance policy is not designed to pay for it. There are few exclusions in your policy in which there is an option as no coverage. Exclusions are specifically list in your policy so its required to read your policy carefully. There are four reasons for the events to be excluded:
If an event is not sudden and accidental then the home insurance policies will not cover the wear and tear damages of your home, rotting, age, or leaky pipes which are not maintained properly. The policy will not include any intentional acts that are committed by the insurer.

Any catastrophic event like flood, war, earthquake and nuclear disasters. Home insurance policies usually exclude the property damaged by the sewer back up, sump pump overflow or collapse of an underground mine.

The injuries caused by the animals or by the trampolines are not cover the liability coverage by most of the insurance companies. In case of a peril the insurance company does not want to cover for the premium.

By using the endorsements policy you can also buy some of the exclusions. When you have the endorsements in the home insurance policy then the contract changes and the additional premium will be added.

When Should I Compare Home Insurance?

Make A Smart Choice!If you’re like most homeowners, you want to save money without spending all day thinking about your insurance policy. But did you know that if you take a couple of hours to compare home insurance policies, you could wind up saving hundreds of dollars a year?

Not All Homeowners Insurance Companies are Created Equal

There can be significant differences in policies from different homeowners insurance companies depending on where you live and, more importantly, on the pricing, coverage, and kinds of services companies offer. And though you probably did your research before purchasing your policy, there can be unpleasant surprises later on. For example, you might suspect you’re paying far too much for your home insurance; you might be dissatisfied by your insurer’s service after filing a claim; or you might want coverage with higher limits. All of these, and more, can be reasons to compare home insurance from other companies to find out if you can get a better deal elsewhere.

Compare Home Insurance the Smart Way

The first thing to realize when researching homeowners insurance companies is that the level of coverage they offer has to be stated in the policy itself. So take your time and read the entire document, especially the fine print. If you don’t understand something, call the customer service department and ask them to clarify. Understanding a home insurance policy before you buy it can mean the difference between being adequately insured and being underinsured. In addition, you need to read consumer reviews for each company and check their reputations with the Better Business Bureau. Last, but not least, remember to never cancel your current policy before the term is up, otherwise you might end up paying a high penalty for early termination.

Nature’s Dangerous Act – Falling Trees

Be Aware of After Effects of Falling TreesTrees Falling are one of the common risk you could come across as a owner of the home during ice storms and snow, but the extra insurance coverage depends on the context. Ice storms, windstorms, lightning, fires and even insects damage could cause big branches  or trees to fall on your house and cause major property damage. Look out for trees that hang over the power lines, dead trees, trees with trunk cracks or hollows trees.

Know About the Important Coverages

Below are some of the ways as to how would the coverage work under few scenarios:

  • If the tree in your neighbor’s space fell and cause damage to your house and its contents, and other structures on the property. You can claim under your homeowners insurance policy.
  • In case a tree in your area fell on your free garage and roof is damaged. Standard homeowners insurance covers free structures. The removal and damage of the tree will be covered under your home insurance policy.
  • In case if a tree falls on your neighbor’s property or on the house and cause damage then under their insurance policy they can file the claim on their property.
  • If your neighbors tree fall on your compound then your insurer should go and consult your neighbors insurer to cover the damages of your compound. At that point of time you will be reimbursed for the amount of deductible you had insured with.
  • In case your car is damaged when a tree fell in your driveway. This would be covered in your comprehensive insurance. Any damage to your vehicle  will be paid from causes other than car accidents, such as natural disasters, vandalism, collisions with theft and animals.
  • The insurance company not only  pays if the tree has fallen on your home or other structures, it also pays if the tree is fallen on the road.

Pain in Switching Over Different Insurance Companies

Switch to the Best PolicyDue to many reasons you may wish to prorogate your car insurance policy. The reasons could be, you are not satisfied with the services given by the company you are bound with, if you are relocating to different state, sometimes you may be bugged with the car repairs and totally with car itself, so you no more require a car insurance. But it is better to intimate the insurance company in prior because later you may have to pay loads of money for the lapse. This will affect your credit score recordings also.

Before Switching

Written notice should be sent to the insurance company about the date of cancellation when the policy is active. Do not assume that you are safe by just canceling the insurance  not paying the next month’s bill. The next month’s payment will have to be paid in advance if prior notice is not given for the cancellation of the policy.
If you are planning to switch over to another insurance company, and planning to drive the car the entire process, make sure you do not miss to pay car insurance because lapse in the insurance will affect your premium. If your credit history is not good, insurance companies will list you in the risky zone. So make a note of the starting date of the new insurance policy and ending date of the old insurance policy. Therefore pay your premiums on time and be in the safe zone.

To cancel the policy, first call up your insurer and tell them that you want to cancel the policy. Give them the date when you want to cancel your policy. Insurer will give you cancellation form. Read and fill the  details properly before you sign. Also ensure by asking them whether they charge for canceling the policy in the middle  of the term. If you are fetching better benefits from other insurance company its better to switch .

Don’t Forget the Broker

Do not Forget !Shopping for auto insurance or homeowners insurance in California can be a very time-consuming activity. California auto insurance rates and California homeowner insurance rates can vary widely by insurer. There are so many insurance companies that do business in California that an individual may never know if he or she is getting the best deal possible.

One of the ways to avoid all of the confusion of trying to compare different insurance companies is to go to an insurance broker. An independent broker or a broker that only represents one company can be a great source of information when you need to buy insurance.

Brokers are well trained in all aspects of the insurance products that they sell. They must pass vigorous tests and receive a license from the state that certifies that they are qualified to sell a particular line or lines of insurance.

A California auto insurance or homeowners insurance broker can intelligently discuss all of the different types of coverage that might be appropriate for your particular situation. If you have any questions about whether it is wise to buy comprehensive coverage on an old car or what you can do to lower your premiums on your California homeowner policy, your broker can certainly answer them for you.

Going to an Independent Insurance broker in California is a little different than going to a broker dedicated to just one company. You will usually get a lower rate through an Independent broker because they deal with many different insurance companies. On the other hand, dealing with a single, national insurer may provide you with more stability and a wider array of insurance product.

So, in conclusion, if you do not like doing research and do not have the time to shop around, a broker may be the best choice when you need California insurance. You do not pay more for using the services of a broker than doing it yourself. It is also nice to know that you have someone to call just in case you have a problem with your insurance.

Overcome Obstacles in Your Claim Process

Overcome The ObstaclesObstacles during claim process can be truly frustrating. Consider these steps in order to overcome them:

  • No response from insurance company.Your Insurance company must respond to any claim made by you. If not then consider the below options:
    1. Pen down your request: Send the written request to the representative and look for his response. If he fails to do so, then pass on the letter to the president of that particular insurance company keeping the adjuster in loop.
    2. Contact State department of insurance: Also, insurance commissioner can help you out. Contact them directly, if found no result then proceed legally by contacting an attorney.
  • Claim denial If any of your valid claim is denied, then do the writing and raise a dispute. Contact your claims representative and stay connected till the matter is completely resolved.
  • Insurance company’s damage estimates are too low. You need not have to accept, with appropriate documentation proofs, demand your company for the required rebuild or repair costs.
  • Your policy gets destroyed. If your policy was destroyed in a fire, contact your insurance company or agent immediately to obtain a copy of the same

Tips for a Smooth Claim Process

  • Review your policy. Reviewing your insurance policy needs to understand the coverage type and how claims are filed and if any deadlines are applicable. If you cannot follow any single detail, call up your agent and get your doubts resolved immediately.
  • Manage your claim and save a copy. Keep a record of all calls made, letters written, mails sent across to anyone who is part of this claims process. Also, make sure to note the description and date of any interaction occurred. In case if you have to sue any insurance company, a detailed records maintained for claim process will benefit you.
  • Be in good terms with your insurance company Insurance company may ask for certain information or any documentation to be submitted before starting the claims process. Provide access to your home until it’s reasonable.
  • Process payment It completely differs depending on various losses you would have sustained. For any small loss, a check will be written by your insurer where as for any large loss, you might receive an advance by your insurer to bare the cost required to repair or rebuild your house throughout every process. Check with your agent in advance to plan better.
  • Time line. If you are not in comply with your insurer’s analysis of your policy, it is really important to contact them immediately and resolve those issues. Be in contact with your insurance company’s claim representative and ensure that you will be back in your home sooner with their help.

Cancellation Versus Non-renewal

Abide to The Policy RulesYour insurance company may cancel your insurance policy or may refuse to renew it sometimes. So one should first understand the difference between non-renewal and cancellation. There is lot of difference between the cancellation and non renewal of the insurance policy. Your insurance policy can be canceled in two ways, either by the insurance company itself or by you itself. Your insurance policy can be canceled if you feel that you do not need the policy any more. Just by inform the insurance company that your canceling your policy. The end of your insurance policy at the normal expiration date is non-renewal.

Watch How The Policy is Canceled ?

Your insurance policy must be canceled before your previous policy ends. Your insurance policy can be canceled after 60 days only with the following conditions:

  • You should always provide proper and accurate information to the insurance company when you are purchasing the policy. The insurance company itself can cancel your policy if you do not provide accurate information.
  • Any driver who stays with the insured person or operates your vehicle regularly, then the state will suspend driver license or vehicle registration. The company also should provide 45 days written notice before canceling the policy.
  • If the premiums are not paid monthly properly as specified then the insurance company will cancel your policy.

Be Safe with Non-renewal

Non renewal of a policy does not mean that the insurer has done something wrong. It means that company is focusing on different forms.

  • Overweening accidents or claims – If you have done more number of accidents the insurer may not renew his policy. If the underwriting guidelines are not met then also you policy is not renewed. If you have only one not at fault accident within three years then the company will not reject to renew your policy.
  • Traffic violation – If a insurer has done a major violation like DUI then also the insurer does not renew the insurance policy. If you have many minor convictions then also the company will not renew your policy.
  • Guidelines from Company – If you do not qualify for any coverage then the company has all rights to deny renewal of your policy. Few instances such as more of comprehensive or towing claims, coverage for your sports car and etc. do affect your renewal process.

Tips for Shopping Cheaper Insurance in Texas

multi cars on  single policyJust about everyone these days has had to pay closer attention to the price they pay for the goods and services they want and need. Whether we are purchasing a plane ticket, buying a TV or shopping for groceries, we are always looking for the best price possible. That is also very true when shopping for insurance. The following are some helpful tips for shopping for cheaper insurance in Texas.

Shop Around

In a competitive market in which there are many insurance companies from which consumers can choose, each insurer may have quite different prices on similar insurance coverage. They may prioritize risk differently when evaluating each person, which can lead to placing that individual in a different risk category. The more one is willing to shop around and compare prices, the better the deal they might find.

Discounts

Texas insurance companies are always offering discounts based on the applicant being able to meet certain criteria. Statistical data shows that people with an unblemished driving record are a better risk than those that have had moving violations or been involved in accidents. They also show that young drivers are high risk, but students that earn high grades in school are lower risk. Look for insurance companies that reward you for your positive actions and activity.

Bundling

Buying insurance coverage for two cars can result in a significant reduction in cost per car for insurance. For example, you might be able to insure one car for $1,000, but if you add a second car, the total bill would only be $1,500. That would work out to $750 for each car insured.

Do Not Buy Too Much Insurance

Some people mistakenly over-insure themselves by buying more insurance than they need. Why pay $200 for comprehensive and collision insurance on a 20-year-old car that is only worth $500. Think before you buy.

Tricks To Cut The Cost

Cut Those Extra CostWe Should go through the factors that may influence our car insurance premiums, but sometimes we are bounded by the things that we cannot change few things easily. We should always ensure that our idea is to get the best deal and low car insurance premium, so we should not restrict ourselves for anything. Drivers tend to get baffled as to how precisely auto insurance premium are estimated. Drivers will have a basic understanding as to what factors are influencing premiums. Auto insurance premiums are fairly unchangeable across the industry.

Ways to Tone Down – Auto Insurance Premiums

Credit score- keep up a good one
This will be of little benefit to you only if you think to pay your premium at one shot. You can also pay your premiums on a monthly term and this can be thought as monthly loan. The insurance company that you have selected can reject or they can even account you an huge amount for having a bad credit rating.

Devices for car security
You will be eligible for discounts if the engine of your vehicle is equipped with an alarm or an immobilizer. It depends on insurer to another insurer for discounts to be qualified on an devices.

State your Car Mileage
Every company might have their own set of rules on the vehicles mileage and o what extent it would effect your premium, by maintaining the annual limit of your car insurance premium to an average of less than 13/15k you can see that it would start reflecting the cost of your car.

Car Modifications
It is always safe to keep the car modifications to a direct minimum. The extra security devices like alarms and immobilisers can normally lower the cost of premiums, this can be a one of the modifications that can reduce the premiums.

Discounts on zero claims
The most dependable way to reduce the car insurance cost is probably to have no claims as bonus. Always try to maintain or build a no claims discount.

Choose large deductibles
The higher your deductible, the lesser the insurance company will need to pay out. Opt out of comprehensive coverage for older cars.

Pay semi annually rather than monthly
Your always benefited by saving a lump of money by paying the premiums for the 6 months in advance instead of monthly payments. Rather than paying the more cash directly to any of the bulk item you can make use of the discounts that are provided by your auto insurance company.