What is Difference in Good & Not so Good Auto Insurance?

Selecting good auto insurance is important. You can choose from companies which have local or non local agents that you talk to on the phone. The services of the local agent may be important when you buy the policy or at the time of loss, when you have a claim. 

Car insurance protects you from paying for another driver’s injuries and repairs by yourself if you cause a collision. Some types of insurance also pay for damage to your own vehicle, and still other coverages can pay for your medical bills.

Without auto insurance one accident could cost you all your life savings if you injury someone. Not to mention it is required by law to have auto insurance to drive a vehicle, yet in some states a full quarter of all drivers are uninsured. 

The bottom-line is not only is auto insurance mandatory it is and important part of a responsible risk management program. So, if your agent or the insurance company wants to write you  the lowest limits possible and is giving you lower rates than anyone else you should dig deeper. Make sure that the liability coverage is enough to protect your assets and that it is a responsible amount that could pay reasonable damages for injuries and vehicle damages.

Think of it this way, if there is not enough coverage to protect you r assets, but the price is super low, that is like renting the cheapest boat that you can see holes in and it has no life preservers. That would be a dumb move to rent a boat that is defiantly going to sink and that doesn't have the safety gear you will need, even if it is half the price of the other boat.

Also look at the claims experience from real customers, in todays world there will always be someone unhappy with the results of a claim but you should be able to find good reviews too. The company and the agent are both important for you to be protected. Besides claims service you want stability in an insurance company so look for conservative solid companies.

When choosing an agent you should look for someone that will give you strait answers and not just try to be the cheapest guy in town. They should ask you questions and get to know you a bit before recommending liability levels and coverages. Ask your friends and family if they know their agent and if the agent knows them, that is the sign of a good agent, when they take the time to get to know their clients.

Below is a description of the coverages in an auto policy.

Auto Policy Protection

Auto policies typically provide the following types of coverage:

Bodily Injury Liability: 

Pays, up to the limits of the policy, for injuries to other people you cause with your car. usually this is a split limit with the first number being what is allowed per person and the second number being what is the limit per accident. If you are sued because of the accident this is also the amount available from your policy for legal defense as well.  The amount listed here should be enough to protect your assets (two times your annual income and the sum total of your assets). It should never be the state minimum of $25,000/$50,000, this is not a responsible limit to have given the cost of emergency care it is very likely that his will not be close to enough to provide for the medical care of a serious injury. 

Property Damage Liability:

Pays, up to the limits of the policy, for damage to other people’s property caused by your car.

Medical Payments:

Pays medical bills incurred by you and usually your passengers, up to the limits of the policy, if injured while riding in, entering or getting out of the car.

Collision:

Subject to a deductible. It will pay for damage to your car caused by collision or upset.

Comprehensive:

Pays for damages to your car caused by perils other then collision or upset. This includes such losses as theft, fire, a windstorm and glass breakage. A deductible may apply.

Other:

There are other coverage’s such as towing and car rental which may be available.

Auto Damages/Injuries from Uninsured Motorists

Each newly written Indiana auto liability policy must include uninsured and underinsured motorist’s coverage unless you reject this in writing. Minimum liability limits are:

Uninsured Motorists: Bodily Injury: $25,000/$50,000

Property Damage: $25,000

Under insured Motorists: Bodily Injury: $50,000

The uninsured and underinsured motorists coverage allows you to collect these damages from your own insurance company.

What does it not cover?

• Maintenance problems, like faulty wipers or a malfunction steering system
• Regular wear and tear like worn-out tires
• Mechanical failure or engine failure
• Electrical breakdown

Automobile Rates

Your agent does not set auto rates. If fact they can't even share their commissions with you to give you a better deal. Sharing commissions with an unlicensed client is called rebating and this not allowed, in fact it can cause the agent to lose their license or their appointments. However, insurance companies have to file their rates and forms with the Department of Insurance before they're implemented. As long as the rates are fair, adequate, and not excessive or unfairly discriminatory, the companies may use them. This allows for competition to exist and gives Indiana citizens a chance to buy insurance at a fair price. All rates are open for public inspection.

Automobile Rates vary according to many factors. When comparing costs, be sure each company is quoting on the same basis. The least expensive policy is not always the best policy. Some rating factors insurance companies may use are:

• Age and Sex
• Marital Status
• Driver Record
• Car Use
• Place of Residence
• Policy Limits
• Deductibles
• Type of Car
• Driver Training
• Claims History
• Credit Scores

Cancellation or Non-Renewal Restrictions

Insurance companies must follow certain guidelines to cancel or non-renew an insurance policy in Indiana. Insurance companies may cancel your policy within the first 60 days of a new policy. After your policy is in effect 60 days, the company cannot cancel except for certain reasons, such as your failure to pay the premium or losing your license to drive. At the end of the policy period, the company may refuse to renew your policy, but they must give you 20 days advance notice.

What is a Certificate of Compliance?

A Certificate of Compliance is a form that must be filed by your auto liability insurance agent after an accident or following a traffic violation if you don't have proof of insurance at the time of the incident. Filing this form certifies your financial responsibility.  This form is required by the Indiana Bureau of Motor Vehicles.

jasonedwards@shelterinsurance.com