Reader’s Question:

I don’t need fancy insurance; just enough to comply with the law. However, I noticed that a lot of insurance companies here in the US are private, profit-oriented companies. What’s the deal? Why don’t we have national or state auto insurance company handle insurance?
Marco N. M.

Santa Fe, NM

A state auto insurance company (not to be confused with the privately owned insurance company with the same name, State Auto Insurance Company) is a proposal that may seem to solve attractive: setting national standards and rates for purchasing insurance. It all sounds perfect on paper.

However, there’s a major problem when everything about anything is left to one entity: competition. If there’s only one state auto insurance company, the resulting lack of competition will result to slips in quality that will go unnoticed in time.

With competition, insurance companies will be forced to ‘race’ with each other, trying to be the best in order to get customers. Keeping the customers in mind, private, profit-oriented companies will maximize the benefits they give to customers while minimizing costs to attract customers to sign up. Keeping the customers happy brings in the money for the company. Thus, both parties are happy.
Now private companies may seem to be expensive, but that’s because the fields they cover match the price tags that come along with their policies. You could apply for the cheapest insurance policy in a private company, but you’d also get the least coverage they could offer. The point is that you have a choice: get a better plan for a higher price, or get a cheaper price for less coverage.

Reader’s Question:

This new auto insurance company has just set up office nearby. They’ve been around for half a year now, and they’re offering great coverage for low premiums. Their premiums are even lower than what other older companies offer! They’re great! I wonder why the other insurance companies don’t match their price ranges.

Jack,

New York City, NY

Now you may be excited about the low cost of the auto insurance company’s premiums and the coverage they’re giving, but there’s always a rule of thumb that must never be forgotten.
If it sounds too good to be true, it probably isn’t.

There are plenty of so-called ‘companies’ that will set up shop for a year or two, offering unbelievably low premiums for excellent coverage. There are two possibilities with this sort of company: they are the sort that will either hide behind legal loopholes or will run with the money after a certain period of time.

You’re also making a gamble by signing up with relatively new insurance companies, even if they’re fully legitimate. The risk with new insurance companies is that they may not have enough capital to continue operations should they experience financial trouble. They may even fold, especially now that the global economy is sinking further and further. Older, more established insurance companies have a wider customer base and the experience to help them weather any financial turbulence that they experience.

The auto insurance company you mentioned may or may not prosper in the future, but it’s all up to your tolerance of risk. If you think it’s worth the risks of the company going bankrupt or being illegitimate, then go for it. If you want some assurance, stick with the older, more established insurance companies.

Reader’s Question:

I’ve recently lost my job and I need to find a cheap insurance company for my pick-up.

Don

New York City

To be able to find the right company to give you cheap insurance, you need to be aware of how companies compute premiums. Aside from your age, traffic violations, if any, and driving background, a cheap insurance company will put a lot of weight on the type and model of vehicle you are driving. Insurance firms prefer small-engine cars. Pick-up automobiles are considered big and fast. Big and fast are associated with accidents, thus, it’s not advisable for your vehicle to be categorized in that direction. You should seriously consider exchanging your pick-up for a four-cylinder engine. This will definitely lower your premium rate. Whether or not you decide to shift to a smaller car, you still can find a cheap insurance company for your vehicle. Just call your local insurance companies and ask for discount schemes or promos. You can also visit the online site of a cheap insurance company to obtain a more favorable quote. Do not limit yourself to one company, instead, get quotes from as many firms as you can so that you will have a variety of choices. From the quotes you get both online and from your local companies, you are now ready to find that cheap insurance you need.

Reader’s Question:

This is the first time that I am buying my car insurance and I have to admit that I am so excited about it. What do I have to decide on before I can say that I am ready to buy my own car insurance here in South Dakota?

Natalie

Sioux Falls, SD

Car insurance is required for driving that is why all drivers need it. Car insurance is not branded as controlled, the conventional foundation for price value and entry regulation. Car insurance is so vigorous that makes it nearly not possible to foresee more than six months ahead how much would be compensated for claims. Factors such as moving from place to place, sudden increase in fame of more damaging vehicles such as SUV’s and changes in driving behavior are normally could not be given an explanation for until the eleventh-hour.

Car insurance is merely about the amount you can shell out from your own pocket against the amount you want the car insurance company to provide coverage for you. If you have already decided about this, you are ready to buy your own car insurance in South Dakota. Car insurance provides coverage and protection and it can differ greatly from one policy to another. Car insurance is very important for every individual who owns a car as it will give financial protection in case of an accident. Car insurance is necessary and it is not just a treat. For you to get the highest amount of benefit, professionals suggest that you make a careful research to be able to shop for the best car insurance company.

Reader’s Question:

Hello! Mindy here! Got any good advice on finding the best auto insurance company in Texas? My husband is getting a new pick-up this holiday seasons…

Mindy

Houston, TX

Auto insurance is an obligation enforced by law in every state and this is a reason why we should consider the cost when it comes purchasing one. But besides the cost, we need to dig deeper beyond it. Online websites offering auto insurance quotes can be easily found and finding the best price is not that challenging. Still, calling and speaking to a live person is different and has its own benefits like for some reason there might be a chance you’d encounter a difficult query and only a customer representative can answer it. Service is an important factor and we all want to be dealt with fairness and respect. With these things in mind, it is never a bad idea to have a background check on the best auto insurance company in Texas. Everyone needs to make sure that when getting claims, it shouldn’t be a hassle. Nothing is more frustrating knowing you are saving so much but in the end, you get nothing.

It is also a good idea to ask or check on when will a payment be on due or what are the consequences if you pay late. There are some auto insurance company in Texas that give grace period while others means dropping auto insurance immediately if not paid on time.

Remember, ask questions and check your options. Hope this helps you on finding not only a cost saving auto insurance company but also a good and trustworthy partnership with it.

Reader’s Question:

What kind of coverage could I get from an auto insurance company? I will be buying myself a car and I want to get more information about car insurance, thanks!

Irvine

Honolulu, HI

There is no doubt that auto insurance coverage is a necessity when owning and driving a vehicle. You will find that an auto insurance company will sell you a lot of options when it comes to car insurance and most first-time buyers are overwhelmed by terminologies and jargons that agents or brokers typically use. So here are a few things you should know about auto insurance:

An auto insurance policy aims to protect you in any kind of car accident scenario there in Hawaii, hence it consist of the following:

1. Liability Auto Insurance – undoubtedly one of the most important forms of auto insurance coverage. This protects you from having to pay huge amounts of money in the event you are sued for damages and injuries in a car accident that may have been your fault. Most states have financial responsibility laws that set a minimum limit on how much you should purchase, for Hawaii this is pegged at 20/40/10.

2. Personal Injury Protection – also known as Med Pay, this pays for medical or hospitalization and treatment of your injuries in a car accident.

3. Collision Insurance Coverage- provides settlement if your car is totaled in a car accident or pays for repairs to restore your vehicle to its original insured value.

4. Comprehensive – Covers you from loss of your vehicle due to other causes not related to a car accident, such as loss due to fire, theft or natural disasters.

Reader’s Question:

I have a loan on my vehicle here in Tennessee and I was told that I will be required by the finance company to purchase extra coverage, why is that?

Emil

Knoxville, TN

If you have a loan on your vehicle in Tennessee, the finance company would ask you to purchase extra insurance coverage. For instance, aside from the auto liability insurance, the finance company would ask you to buy collision and comprehensive insurance coverage that would provide coverage for the value of the loan that you have taken, and you would likely be asked to buy Uninsured Motorist coverage for the protection of the car against damage by another motorist who doesn’t have auto insurance or who doesn’t have enough insurance to cover the damage to your car.

The finance company would ask you to buy collision and comprehensive coverage since the required auto liability insurance would only provide coverage to other cars in the event of a car crash but would not provide coverage for the repair or replacement of your car. Collision insurance, as the name entails, would pay for the repair or replacement of your car in case it sustains damage from a crash with another car or with still object like a lamp post, especially if you were believed to be the one responsible for the crash. On the other hand, the comprehensive insurance would pay for any damage to your vehicle that is due to natural causes such as flood or storm.

Reader’s Question:

I have availed a Car Insurance for so many years now but then it is still confusing to me what will happen if I had an accident, how can I use my car insurance? What are the things to do when filing a claim here in Texas and what are the things to expect?

Christy

Arlington, TX

If an insured driver has had an accident, he should file for a claim in his or her car insurance company. There are things that the car insurance company has to follow whenever there is a claim from a driver. If the auto insurance company was not able to follow these rules, then they have to deal with the Texas law.

The first rule the car insurance company should do is to respond within 15 days starting from the day they had received your letter of claim followed by the details of your loss during the accident and then after submitting the documentation of the accident, the company has another 15 days whether to accept or reject your claim. If the car Insurance Company decided to accept your claim and agrees to pay, they will send you your check within 5 working days. If your car insurance company cannot meet these so called deadlines they have to at least send you a notice that explains things and then they have 45 days to accept or reject your claim. But you have to know if the other driver’s insurance is going to pay the claim for the prompt payment law does not apply if this thing happens. Car insurance companies in Texas should still act properly to make a fair settlement.

Reader’s Question:

Before signing up for a car insurance policy here in Michigan, what are the things that I can ask the car insurance company?

Reiniel

Grand Rapids, MI

It would be very critical that you understand the different facets of car insurance claims prior to signing up with a policy. You should ask a lot of questions from the car insurance company, such as: who would cover the damages in the event that your vehicle gets into an accident? You may also ask them if your vehicle will be covered if you are the one who caused the accident and the amount that they would pay to repair your vehicle. Also, you can inquire what will happen if there would be extra damages found during the repairs. These are just few questions that you have to ask the car insurance company in Michigan before signing up with them.

One other crucial thing that you have to know is how long will it take for the auto insurance company to answer back in case you file a claim. If you’re renting a car that is covered by your car insurance policy and you wait for two to three days for them to review your claim, it may not be worth it. As an insured individual, you also have to be aware on how to file a claim and when you have to file it. For instance, if the price to repair for your car is less than your deductible, it may not be a good idea to file a claim. You have to know that whenever you file a claim, it would be noted on your insurance report. If you have a lot of claims, they will surely make your premiums go higher.

Tags: auto insurance, auto insurance claim, car insurance company, car insurance policy