Category Archives: Insurance

Insurance Totaled My Car

“Your vehicle is a Total Loss.” These words, more often than not, spark immediate controversy between an insured and their insurance company. The main cause of controversy between an insurance company and an insured as it relates to total loss is that most people feel their vehicle is worth more than it really is.

A vehicle, though historically not a good investment, is very personal to us. Many of us spend a great deal of time in our vehicles each day and grow attached to our car. Many others ”trick out” their cars and inherently feel that their modifications enhance the value of the car.

I thought it might help some folks if they heard exactly how an insurance company views this and how they go about compensating you for your car should it be determined to be a totaled. There are typically two main things involved in understanding this process: What exactly is a Total Loss and how is the value of a car determined. In this article I am going to discuss and define a Total Loss from an insurance companies perspective.

So, what exactly does it mean when your insurance company deems your vehicle a total loss? In general, there are two types or measurements if you will when it comes to making this determination: Financial or Economic Total Loss and an Obvious Total Loss.

Financial or Economic Total Loss
A vehicle is often declared an Economic Total Loss when the cost of repairs exceeds the value of the vehicle, plus sales tax, less your deductible. I am sure you have heard that there is a percentage used to determine if a car is an Economic Total Loss. You have probably heard numbers from 50% to 70%, or more. This is true, however, it is important to know that not all states set an actual percentage and that for the states that do not set percentages, it is up to the insurance company to determine what that will be.

Although all insurance companies that are free to set this number themselves are all different, a common number you will hear is 70%. What exactly does that mean? I thought a quick illustration might help:

Market Value $15,000
Plus tax $ 1,050 (7% used as example)
Sub-total $16,050
Less Deductible $ 500
Total Loss Value $15,550

Cost of Repairs $11,662
Repairs are 75% of the value

In the example above, your insurance company would likely determine your vehicle to be an Economic Total Loss. One thing to remember is that if you are paid the value of your vehicle, the insurance company will retain the salvage or damaged vehicle and then sell it to a vendor. Most insurance companies have negotiated contracts with salvage buyers and will use that avenue to recoup some of the money paid out for the total loss. In the example above, your insurance provider would know that your car had a salvage value of $3,000 (example). So, when making their total loss decision, they would factor in this amount and subtract it from the total amount paid of $15,550, bringing their net cost to $12,550.

One other brief point to make that is worth noting is that your insurance carrier will also factor in estimated supplemental damages were your car to be repaired. From my experience as an adjuster and claims manager, there are often supplemental or additional damages/repairs identified once a car begins the repair process. These damages are often discovered on “tear down” or after parts of the vehicle are removed and additional damages are more visible. In many cases it is almost certain that there will be additional damages based on the visible damages, however, an adjuster will only write for what they can see and note that additional damages are likely.

Obvious Total Loss
An Obvious Total Loss or OTL is in which the damages to a vehicle are so extensive in terms of repair and/or putting the structural integrity of the vehicle at risk with a repair, that the car is determined to be an OTL. Some examples of an OTL are:

  • Fire Damage
  • Rollover
  • A theft
  • Extensive Water Damage
  • High impact front-end collision
  • T-Bone or hard hit to the side of a vehicle at the center-point

In most cases, a claims adjuster will not have the direct authority to determine a vehicle to be an OTL. The two insurance companies I worked for required a manager approval to make this call. With today’s technology, that can be done easily in the field by simply sending some detailed photos to a Claims Manager or Property Damage Manager. In this case, there isn’t a cost of repairs necessarily but the valuation process is the same.

Hopefully this helps you understand what is meant when you are told that your car is a total loss. Your insurance claims adjuster should explain all of this to you, however, having a basis understanding will certainly help should you find yourself in this situation.

Marc Berry brings over 8 years of direct experience in the auto insurance field, having worked for 2 of the largest and most respected insurance companies in the nation.

Tips on How to Find the Best Deals

For those women who own a car, you really should have an auto insurance. It really is illegal to drive on the roads without having a valid car insurance policy. Oftentimes, lots of women don’t know how or where to find the best deals auto insurance. If you just went to a random insurance provider and then accepted the specific plan, then chances are high that you’re paying a lot more than you should pay. Even though an auto insurance policy is dependent on various variables, you can still obtain a cheap auto insurance quote. Here’s how you can find the best deals car insurance for women in a mere 3 easy steps

Step 1. Find multiple insurance quotes via online.

This is a crucial step, simply because you will discover lots of car insurance providers willing to provide you with a free quote online. You should not refrain from or overlook this or you will dupe yourself of having really expensive auto insurance. Insurance is an extremely competitive industry and because women drivers file fewer insurance claims when compared to male drivers, car insurance policy for women driver is justifiably cheaper for women. Select a few auto insurance companies based on either previous experience or a referral and the go into the site.

Step 2. Key in your own personal information into site’s form.

This is a critical step, thus lend it your whole attention. Here’s the technique of doing it right: You will need to key in your personal information to enable them to give you a free quote. The personal info required is things such as state of residence, driving habits and, of course, gender. The key reason would be to create a profile and provide you an estimate for the price of auto insurance coverage. Specifying that you’re a woman will immediately reduce the quote for reasons mentioned previously.

Step 3. Get In to More Auto insurance Comparison Website

At this stage, you should not stop at the first insurance policy quote website. Although they’ve already give you the estimate insurance quote at no cost, there’s no obligation to purchase from them. Hence it is worth your time to get a several quotes from several other car insurance comparison sites. You are absolutely unable to predict if there’s a better price offered by another insurance company should you don’t ask them.

Cheap Car Insurance For Young Drivers

When a young driver is involved in accident, it can be very costly because the price of the policy will rise drastically and this is why it is important to find cheap car insurance for young drivers. Nowadays, finding a cheap car insurance coverage for young drivers is no longer an impossible job due to the highly growing competitions among insurance providers. Online shopping is one of the best ways to find cheap car insurance for new drivers in the sense that there are lot of free websites that provide free online insurance policies and quotes.

One of the requirements for a young driver to get a cheap car insurance policy is to pass one or more advanced driving courses as a means of proving that you are a good and safe driver as well. For parents, it is better to send your young children to driving school instead of teaching them by yourselves so that they will not only be able to learn to drive properly but at the same time they will also be entitled for a driving school discount which most insurance companies offer.

Another thing to consider is the model and the brand of the car of the young driver. The older the model that the young driver drives, the cheaper the insurance policy will be. Although most teens would want a brand new sports car, it is probably not a good idea as the insurance premiums will be sky high. A better alternative is to give them an older model vehicle that is reliable.

Imposing a driving curfew for teenage drivers is also a better idea in order to avoid the probability of an accident or collision which might be a result on alcoholic drinks and other vices that most teenagers are engage in. So parents, be strict with your young drivers regarding “drinking and driving” as they may be more prone to engage in such behavior.

Finally, use the internet in search of insurance quotes, invite quotes from a number of online insurance websites and conduct comparisons among them. This would not only enable you to acquire a good insurance policy for young drivers but also familiarize one with the general terms and conditions pertaining to the form of insurance. New drivers usually have lesser disposable income than the older drivers and often are supported by parents therefore being able to secure a cheap automobile insurance policy can ease the pressure on the budget.

The Best Ways to Get Online Car Insurance Quotes

You should not be surprised to know that you can get online car insurance quotes. If you are interested in that, you have landed the correct page. Here, you can find a couple of tips for getting the comprehensive quotes for car insurance.

There are several websites on the internet, which provide online car insurance for you. You can contact them without any difficulty to provide you a car insurance quote by just signing up on their site. At the same time, the cheap online car insurance quote should not carry you away. Although the quotes are comparatively low, but the actual cost will depend on the condition of your car, its make and model and the mileage traveled. All these factors determine the present worth of your car for evaluating the insurance quote. For getting online quote, you will be required to furnish all the details of your car in a prescribed form to receive a correct quote.

Many insurance companies also provide the online calculators, which give you the online quote after filling all the relevant detail of your car. In many cases, these quotes may not be very accurate, as the company has not updated the calculator. This can lead to an incorrect and invalid quote in such a case. You need to confirm that the calculator is updated one. Though the companies may be renewing their sites regularly, it is better to take the quote as approximate cost that you may have to pay.

The very common car insurance companies also keep their agents who may contact you on phone for getting all the details of your car. You can confer with the agent to get online car insurance quote and find out all the relevant details and information including their payback policy that may be useful. You should not just sign up for a company based on their online quote, it is better to negotiate the discounts and bonuses and compare the overall cost with other offers.

One more option to get the online insurance quotes is contacting the online insurance providing companies on their toll-free 1-800 phone numbers. These companies work online, but it is better to ensure their policies for reimbursement. There are frauds as well. You need to be cautious about some fraudulent operators who may cheat you and swindle your money. However, there are reputed and reliable companies that provide online car insurance quotes; you should go for a company only after getting a proper feedback.

It is very essential to obtain insurance quote from a number of companies rather than getting a single quote. This way you can take the advantage to obtain the best offer and at the same time select a reputed and dependable company in this time of recession. Moreover, you should compare the offers and policies to make a best deal to meet your requirements after getting proper feedback so that you save the money and are not deceived. Always ask for the bonuses and the discounts offered by them. You have to put your efforts to get all the information about their reliability and best offers.

If you follow these guidelines, you can get the best online car insurance quote from a reliable company to insure your car to be safe and save your money.

Online Car Insurance is Cheap and the Best Insurance

Many drivers are not sure of the differences concerning liability auto insurance and complete coverage for their car, particularly if you are contemplating online car insurance. These two sorts of coverage are actually polar opposites of one another. Understanding the benefits and restrictions of each variety of insurance coverage will make it easy for an individual to decide which form of insurance coverage is the best choice for their own situation. The level of insurance that your automobile needs to stay within the limits of the legislation is established by the federated state that you live in.

For that reason, guidelines vary among federated states. In spite of the discrepancies in these guidelines, the main point here remains that one must maintain vehicle insurance in order to drive your automobile lawfully. Liability coverage is designed to pay for the expenditures that are related with repairing a car involved in an accident for which you’re responsible, as well as any medical expenditures that happen to be incurred by the other motorists or his passengers. Each and every federated state has a minimum monetary amount of liability insurance that every single individual ought to keep. It’s essential to note that liability coverage will not help you with any kind of health expenditures or repair costs you may receive in the car accident.

Full coverage insurance consists of two main components; collision insurance coverage and complete insurance coverage. Collision insurance coverage is meant to pay out for repairs that your vehicle incurs in an accident, regardless of who is to blame in the automobile accident. Thorough insurance coverage is made to fix your automobile in the even that’s damaged by vandalism, theft, or an act of nature. There are a lot of online car insurance possibilities you should consider.

If you own a vehicle that has a balance owed on it or an outstanding loan, you will be required by regulation to maintain these types of coverage. Typically, an insurance coverage business will not pay to repair a motor vehicle in which the expenditures of the repairs exceeds the automobile’s current market value. Instead, they are going to choose to total the car. Due to this fact, these types of coverage may not be the most monetarily viable to maintain on older automobiles. As a way to ascertain that you’re finding the greatest premiums on the forms of coverage you actually need, you should engage in assessment shopping on the net between multiple car insurance coverage firms. For additional info, ensure you check out our online car insurance website.