Pssst – Want To Know A Secret That Banks & Car Insurance Companies Don’t Share With You

Every single driver in the U.S. is required to have Car Insurance. And most of us drive around confident that we have adequate coverage to protect us should we ever be involved in an accident.

Yet, almost 97% of all drivers are not adequately protected….and don’t even know it. Here’s what I mean.

Let’s say you’re involved in an accident and it’s serious enough that the car is considered a “total loss” by your Insurance Company. Or, maybe your vehicle gets stolen. A few weeks later, you get a check from your Insurance Company.

When you look at the amount, you’re shocked. It’s thousands less than what you owe on your car. How can that be, you ask?

Well, like most, your policy has this short clause buried somewhere in all that legalese -

“In the event of a total loss, the policy holder will receive the actual cash value of the vehicle, minus any deductible.”

Did you catch the 3, very important words in that clause? The three words are – “actual cash value.”

Actual Cash Value means you’re going to get a get a check for….

“What it’s worth” not “What you owe.”

Isn’t that a nasty little surprise.

And like most, you owe quite a bit more than what the car or truck is worth. What would you owe your Bank or Credit Union if your car was totaled today?

So, how do you avoid this situation?

Well, when you buy a new or used vehicle, add a “rider” to your policy or purchase a separate “rider.”

If you have Homeowners or Rental insurance, a “rider” might sound familiar. For a homeowner’s policy, if you own expensive items, like fine jewelry, you need to add a rider to your policy. The reason – Insurance Companies won’t cover those types of items as part of a regular insurance policy.

So, you pay an extra $5 or $6 a month to have those items fully covered by the “rider.”

If anything ever happens to the jewelry, it gets replaced.

A rider for your car or truck is called GAP Insurance or GAP Protection. It’s just like the rider for your Home – except it’s only for cars, vans, trucks or suv’s.

It covers “What You Owe”, not “What its worth.”

It doesn’t matter what the reason is – if it’s ever totaled due to theft, fire, accident, flood, tornado, vandalism, hurricane, Read More »

Choosing the coverage and limits most suitable for oneself, family and one’s vehicle involves several variables including monetary coverage, types of coverage and cost saving factors. In addition, finding the right company, and agent may also be significant. This article will outline these variables and how they can affect one’s insurance coverage decision.

Monetary Coverage:

All the symbols on an insurance card and contract represent different types of coverage. These symbols, which are often in the form of letters, are important because they reflect the dollar amount an insurance company will pay under certain circumstances. The symbols also represent the amount the insurance holder will have to pay in the event of an accident. The types and levels of coverage an auto insurance policy holds can also affect the price of the insurance premiums. Understanding the potential costs involved and matching those costs with the insurance coverage can help ensure an insurance holder is not over or under covered.

Types of Coverage:

If one has health insurance, a high medical coverage may not be necessary via the car insurance. However, the other driver(s) in an accident may not be so well covered medically and may also exercise an option to sue. Thusly, a higher bodily injury coverage may be desirable for both insured and uninsured drivers. Some of the other types of coverage and reasons why they may or may not need to be adjusted are as follows:

*Death Indemnification

*Bodily Injury

*Emergency service

*Rental and Travel coverage

*Third party coverage

*Property damage and/or Theft

Cost Saving:

Another important variable in choosing the right insurance policy is the price. Several items within the insurance policy can affect the price one pays on a monthly, or bi-annual basis. For example, a driver less than 25 is going to pay more than an older driver with a good driving history for the same policy due to age related factors. These and other cost related concerns are listed below:

*Driving history

*Coverage levels

*Liability

*Reductions/Discounts

*Deductibles

*Age of driver

Higher deductibles usually translate into lower insurance costs all other variables held constant. Additionally, if on

Additional Considerations:

After deciding what types and levels of coverage one wants, a few other factors can come into play. For example, if one’s car is old and has little value, it may not make much sense to pay an extra amount every month to cover replacement costs in the case of total loss. What’s more, if one has a particularly good relationship with one’s insurance company, it may be worth a little extra in terms of monthly fees. What’s more the company may have a conveniently located office and/or the insurance holder may also have other insurance coverage with that company. These and other considerations are listed Read More »