Tag Archives: UMPD

The Proper Way to Save Money on Auto Insurance

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Saving money on your auto insurance and getting a good value for your premium dollar is not the same as getting “cheap” insurance. Believe me, there are differences between insurance carriers and there is plenty of “cheap” insurance out there. That does not mean you will have the coverage you expect when the worst happens and you need it most! There are however several ways to reduce your premiums. Let’s explore a few that might be beneficial to you:

Take physical damage coverage off your older vehicle. If you carry “Comprehensive” and “Collision” coverage on a vehicle that is over 10 years old, go to the websites for NADA or Kelly Blue Book and check out the vehicles current market value. You may be surprised to learn that you’re spending hundreds of dollars per year for coverage on a vehicle where the return on a total loss may not be a cost- effective investment. Be sure to add however a coverage called “UMPD” that will give you coverage for the market value of your vehicle if it becomes a total loss when in an accident caused by an uninsured motorist.

Increase your physical damage deductibles. The amount that you are responsible to pay when you have been in an accident that causes damage to your vehicle or when your car is stolen or any other covered cause of loss should probably be increased. On average, if you are a good driver, you will probably have a covered loss once in seven years or less so you may be spending hundreds of dollars per year for coverage used infrequently. Get the best value by increasing your physical damage deductibles to at least $1,000.

Insure multiple policies with one carrier. If you decide it is time to “shop” your auto insurance, you should be shopping both your auto and homeowners insurance. Carriers offer significant discounts on both the auto and home policies if they are with the same company. These discounts can be up to 25%. With the cost of insurance these days, that can be enough to pay for that tenants policy that you should have and maybe don’t or the cost of an extra million dollars of liability that you need to properly protect your assets.

Add “towing” coverage on your auto policy. Many carriers offer “towing” coverage that includes key lock out and delivering gasoline if you run out of gas, etc. for far less that purchasing the coverage separately through a “club.”

Having “proper” insurance is so much more cost- effective than not being insured properly, but if you follow some of these tips, you can make sure you have the coverage that makes “cents” for you over many years.

 

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Best Vehicle Insurance Coverage

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It is a legal obligation of every vehicle owner to have at least state liability insurance. This is applicable in all states except New Hampshire because of its delay in passing the insurance requirement laws for drivers in the state. However, there are some confusing laws like the R-S-A 264:3 statutes that suspend your driving license and registration if your car is uninsured and you are involved in an at-fault accident.

On the other hand, as a resident of the other 49 states which accommodate more than 99% of the population of the United States, you must get an insurance policy or face legal implications that can financially cripple you. It will, therefore, be wiser to obtain the best affordable vehicle insurance coverage for complete coverage, to satisfy your state’s insurance specifications, as well as a good match for your budget. Here is a summary of the basic types of vehicle insurance

Vehicle Liability Insurance

This basic type of car insurance covers you or another insured driver on your policy, in case an at-fault vehicle accident occurs, this will compensate for the cost or the bodily injuries and the repairs of the car of the third party. Individuals who usually obtain this form of coverage are on a tight budget and minimal assets.

In the event a fatal accident occurs, leading to severe damage, the chances are that the insurance claim will far exceed your policy. Hence the need for an extensive coverage as your assets increases.

Collision Insurance

This form of coverage pays for the damages sustained by your car as a result of a vehicle-related accident, regardless of who is at-fault. So, this policy covers you when you collide with another vehicle or your car gets damaged by some other elements different from colliding with another vehicle. Several scenarios may cause damage to your vehicle that is not resulting from an accident with another automobile and of which may require that you file a claim.

Such scenarios involve colliding with a pole, losing control of the wheels and running into a guard rail. Also, remember that a collision insurance covers only your damaged car and not liable for the third party’s damaged car or property. Liability insurance for damaged property would be responsible for the damaged properties of a third party.

Comprehensive Auto Insurance

This form of insurance offers you a critical cover that keeps your mind at rest. Comprehensive insurance will also protect you against damages not caused to your car by a vehicular crash, but by other causes like fire, water, or in the event your vehicle gets stolen.

A comprehensive cover is best if you reside in an area with high crime rate, where there is a high possibility of your car getting stolen.

Uninsured Motorist

In recent times, auto insurance rates have skyrocketed which makes a lot of people to take the risk of moving around without any vehicle coverage. Now, you could easily guess what would be the outcome in the event an uninsured driver damaged your car; could you afford the cost of replacement? Assuming you recently completed the payment for the vehicle, after six years of committed payment.

It is smarter to increase your premiums slightly and obtain an uninsured motorist protection. This insurance covers you, your passengers, and your car, in case you get hit by a motorist who is under-insured or uninsured. You may either get a UMPD or uninsured-underinsured motorist protection damage or collision deductible waiver (CDW). People with a liability are often the buyers of UMPD; they often ignore the comprehensive or collision policy.

Get Free Quotes for the Best Rates Only

The web is where you can find the most affordable vehicle insurance coverage. Most insurance firms have become aware that customers first search the web and compare different quote before deciding what coverage they will purchase. These carriers are competing to have you obtain their policies; hence, they offer amazing discounts online.