Points To Consider With Cheap Auto Insurance

The word "cheap" means different things to different people, so the first thing you will want to do is to define what "cheap" means in your vocabulary. If it means that you want the bottom line lowest of the low prices to get cheap auto insurance, and the only thing you are concerned about is what the policy costs, then this may not be for you. But if you are looking for the best value to get the most bang for the bucks, then there are multiple places, online and offline, where you can find cheap auto insurance.

You need to understand that not all auto insurance policices are done the same way. The standard policy from one insurance carrier is significantly different than the standard policy from another insurance provider. You also need to know that whatever you get, everything comes at a cost, and sometimes if you do not pay that cost up front, you will pay it later, and there is no getting around that.

For example, the reason you are carrying cheap auto insurance is because you need the coverage, either for peace of mind or to comply with your state laws, but what happens when you get into an accident? If you have a good policy, then things are taken care of with minimal effort on your part. However, with some of the cheap auto insurance policies that are available out there, getting the insurance company to pay on a claim is going to take significant time and effort on your part. If you value your time at all, sometimes think about it and attach an hourly rate to it, you will realize that after factoring in the personal time you had to spend on getting them to cover a claim, you have not saved any money at all . In fact, you paid MORE for it!

Auto insurance policy coverage is not an exact science. First of all, you have the deductible, and the amount of the deductible could be different for the various kinds of coverage. For example, you may have it set up for $ 500 deductible on collision, but a $ 1500 deductible on comprehension or fire. The deductible amount has a drastic impact on the rate that you pay, and is the amount that you will pay out of your own pocket before the insurance company pays anything. To give an example, let's say you have $ 500 deductible on collision and you get into a minor fender bender, but the estimate to repair only comes to $ 400. The insurance company will not pay anything on that, since it is less than your deductible, and in fact, that is a case where you probably do not even want to tell your insurance company about it.

There are also differences in liability. For example, if you get into an accident where the other person sustains various severe flaws. It is not unusual these days for hospital costs to go well into six figures or more. If the ceiling on your liability insurance is only $ 200,000 you could be in deep sneakers in a case like this, so be sure to check out liability limitations as well.

Shopping for cheap auto insurance is not wrong, that is a sign of a frugal shopper and is a good trait. But you need to understand what the tradeoffs are. If you are going to have insurance at all, you obviously do not want to pay more than you need to, but make sure you are getting the coverage that you think you are getting.



Source: Wikipedia.org article, adapted under license.

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The liability insurance crisis in the United States of America refers to a volatile economic period during the mid-1980s. During these years, until about 1990, rising insurance premiums and an unavailability of coverage for several types of liability insurance led to a crisis that has been attributed, among others, to the expansion of tort doctrines for insurer liability and the McCarran-Ferguson exemption from antitrust laws.

During the period from 1984 to 1987, premiums for general liability increased from about $6.5 billion to approximately $19.5 billion. In addition to increases in premium, many insurers took the following measures to limit the number and cost of claims: 1) changed policy coverage from an occurrence to a claims-made basis; 2) expanded exclusions; 3) raised deductibles; and 4) lowered policy limits on a per-claim basis, and 5) introduced the notion of aggregate total exposure.

The resulting crisis adversely affected a diverse range of organizations, including municipalities, social service providers and pharmaceutical, aircraft, sports equipment, and medical device companies. Many organizations in the nonprofit and government sector could no longer offer social, medical or recreational services due to the prohibitive cost or unavailability of liability coverage.

Reaction to the crisis was widespread in the public media. Public policy advocates expressed concern about the impact on human services. In California, for example, testimony was given before the California Assembly regarding the significant loss of human service programs such as foster care, group homes, and health services caused by soaring premiums and widespread policy cancellation.

Various theories among academics, government, insurers, consumers, and regulators have been put forth regarding the causes of the crisis.

1. Collusion: the argument that the crisis was engineered by insurance companies themselves, through price-fixing and/or manipulation of insurance reserve accounts.
2. Losses: Decrease in interest rates and investment returns forced insurance companies to raise premiums in order to make up for the loss of profitability.
3. Litigation: Proliferation of tort litigation and large settlements drove the cost of liability insurance premiums to excessive levels.
4. Reinsurance: Disruption of supply in reinsurance markets cited as a contributing factor.

As a result of widespread economic disruption, a large number of states adopted tort reforms to limit the dramatic surge in insurance losses and premiums. Congress enacted legislation that expanded the ability of companies prone to similar risks to join together and either form their own insurance risk pool or purchase insurance collectively. Some states, such as Vermont and Hawaii, enacted laws to encourage the development of alternative methods to manage risk, such as captive insurance or risk retention groups.

Pet Insurance – What You Need to Know

It's a common mistake thinking that pet insurance is a new thing. The first policy was actually written in the late 19th century. It's important to point that out because as a potential buyer you need to know this industry has had its time to grow up and learn its own tricks and it's your job to see through each of those.

Being able to tell which policies benefit the insurance companies and which benefit you is a daunting task. Writers are hired to cleverly word points to mask the downsides and the self interest that the company does not want you to see.

To illustrate this point I'll give you a few examples:

You decide to get insurance on your mischievous dog, you're worried that his tendency to weasel his way out of your yard will cause him to get hit one day and you want to make sure you'll have the money to help him through it . You get an insurance plan and one day when it does escape it almost gets hit. Thankfully the driver swerves out of the way and misses your dog. Unfortunately he also hit a parked car and through your particular contract offers no liability insurance so now you will end up paying a fortune. Did you know your insurance should cover you for that?

For another example you buy a brand new puppy and decide that you'd better insure it right away. What you failed to realize is that neutering your puppy and vaccinating it was considered elective procedures and are not covered by your insurance plan. Now not only are you paying for insurance, but you're also still paying for procedures that could have been covered had you even known about electrical procedures.

Lastly did you know that if your pet has previously been through a certain procedure that if you do not have the right plan the insurance company can refuse your pet going through the same procedure again?

Do not be fooled into thinking it will be simple because it is pet insurance . The fact of the matter is that you are buying insurance, and like every other kind of insurance you can buy it comes with it's quirks and back-aches.

Finding the right plan can often be a difficult time depending on the needs of you and your pet, and to make matters worse finding the wrong plan for a few years then switching is more likely to make the cost go up with the age of the pet . Pet insurance can be tricky business!