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Is there ever a good time to cut down on your auto insurance? Maybe. Here are a few points to consider before reducing your auto coverage:
The first rule in insurance is that you always want to buy as much liability coverage as you can afford. There is no "price tag" on how much you will get sued for if you are liable for another's injuries. One person might ask for $100,000 and another person might ask for $1,000,000. You want to have as much coverage in place as you can.
Property coverage. Tangible property has a value. It's easy to insure because the limit of coverage matches the value of the property. There are two places in the Auto policy that deals with "property coverage". In this case, the "property" is either your vehicle or someone else's vehicle. When it comes to the other person's vehicle, again, you won't know the value of a vehicle you haven't hit yet but it's safe to assume the value based on the area you are in and the most frequent places you travel. Would you say the most expensive vehicle you commonly see is $25,000, $60,000 or $100,000? Whatever you feel that number is can be your limit of insurance to replace someone else's car.
Your vehicle. This is where you can think about reducing coverage safely. Comprehensive and collision coverage provides money to repair or replace your car in the event of an accident or other included type of damage.
Do you have a loan on the car? If there is a loan on your vehicle, the bank may require you to carry Comp and Collision insurance.
The next important consideration is the year of the vehicle. If you have an older car that would be more expensive to repair than replace, you can drop Comp and Collision coverage. If the car is a total loss, keep in mind that the insurance carrier will only pay you the Actual Cash Value of the car they are insuring. If you have a 2000 Honda, you will get enough money to replace a 2000 Honda, not a new 2012 Honda.
Generally, vehicles that are less than ten years old are still cost effective enough to repair or replace. In this case, you may still want to carry the physical damage coverage even after there is no loan on the car.
In short, if you feel that you want to replace your vehicle with a brand new one after an accident, it might be worth it to you cut down on your Comp and Collision coverage. You will save money now and could even put that savings toward your dream car!
What else can I help you with?
Can you have 2 auto insurance policies at the same time?
No, you generally cannot have two auto insurance policies for the same vehicle at the same time. It is considered insurance fraud to have overlapping coverage.
if your subcontractor is involved in an auto accident is your business liable?
Absolutely your business could be liable if the person is working for you at the time. Their insurance would be primary but you could be found secondarily liable. You can purchase a coverage called hired and non-owned coverage as an amendment to your business auto or liability insurance which would provide you coverage for this type of incident. The coverage is usually very inexpensive as it is secondary coverage.
How much time do you have to report a new auto to your insurance company?
It depends when you would like your auto to be covered in case of an accident. Would the coverage be the same as with your old car?
What are some auto warranty coverage options?
Auto warranty coverage is a necessity when buying a new or used car. The warranty usually covers parts and repairs for the first 3 years or 36,000 miles. There is also an option to take an extended warranty which will extend the length of the time period.
Do you have to give someone else auto insurance company your auto insurance information?
Some states do require you to provide it to the other carrier because they need to prove you had valid liability coverage at the time of the accident.
Is it possible to have two different auto insurance policies at the same time?
Yes, it is possible to have two different auto insurance policies at the same time. This is known as "double coverage" and can provide additional protection in case one policy does not fully cover a claim. However, it is important to review the terms and conditions of both policies to ensure there are no conflicts or gaps in coverage.
A Consumer's Guide to Understanding New Jersey's Auto Insurance Requirements?
New Jersey's auto insurance laws feature unique provisions that give drivers much leeway in how they obtain auto insurance coverage. Many drivers take advantage of this freedom to choose an auto insurance policy that meets their needs.However, New Jersey drivers who refuse to carry auto insurance face stiff fines that can make life difficult. As a result, here is a brief consumer guide about New Jersey's auto insurance requirements that can help New Jersey drivers take full advantage of their ability to choose whatever auto insurance they wish to purchase.New Jersey's auto insurance laws feature no minimum coverage requirements.New Jersey's auto insurance laws require drivers to carry some sort of auto insurance coverage. However, New Jersey's auto insurance laws do not stipulate the type or the amount of coverage drivers must purchase to comply with these laws. These provisions were put into place in to give drivers the flexibility they need to purchase affordable auto insurance that suits their individual needs.As a result, New Jersey drivers can choose from any combination of auto insurance coverage policies they believe will provide them adequate coverage against the risks of driving in New Jersey. These policies can include casualty coverage, collision coverage, property damage coverage, bodily harm coverage and nearly any other type of auto insurance coverage that covers the risks associated with driving.Moreover, New Jersey drivers can also purchase as little as $0.01 of auto insurance coverage if they believe that is enough to cover their potential liabilities. However, auto insurance providers in New Jersey are required to provide Garden State drivers a list of potential auto insurance coverage options to ensure that drivers understand the risk of carrying very little insurance coverage.New Jersey also requires drivers to provide proof of auto insurance coverage on demand.New Jersey state auto insurance laws require drivers to carry verifiable proof of their auto insurance coverage. As a result, drivers must be able to provide proof of their auto insurance on demand during a routine traffic stop, during a routine inspection, or after an accident.The penalties for failing to comply with these requirements can be stiff.For example, first time offenders face fines of up to $250 and up to 15 days of community service. Habitual offenders face fines of up to $1,000 and one year of community service. However, drivers in New Jersey are given a 10 day grace period to provide proof of insurance coverage to avoid these penalties in most cases.For advice on choosing a New Jersey auto insurance policy, please visit your nearest branch of the New Jersey Motor Vehicle Commission for flyers that contain helpful advice about how to choose an auto insurance policy.
Where can one find salvage cars for sale?
Salvage cars can be found at local auto junk yards. They can also be found from time to time at police and government auctions. Online sources include Pro Salvage and eRepairables.
What purpose does an auto extended warranty serve?
An extended auto warranty is a type of insurance. When the manufacturer's warranty expires, an extended warranty picks up to provide coverage of certain expenses relative to the repair of the vehicle. There are all kinds of extended-coverage auto warranties, each with various allowances, restrictions, etc. Be careful to read the fine print and understand exactly what the warranty offers. The purpose of an auto extended warranty is to increase the time to a regular warranty on cars. Thank you.
Does having full coverage auto insurance in MI mean if my car is totaled and I wasn't at fault the car will be paid off?
Firstly, there is no such thing as full coverage auto insurance. This is just a term that developed over time to mean whether or not you wanted physical damage coverage on your vehicle or not. Secondly, if you have physical damage coverage this has nothing to do with what you owe on your vehicle. the physical damage section of an auto policy says that the insurance company has the option to repair, replace, or pay the actual cash value of your vehicle. I suggest if you purchase a new vehicle to consult your agent about GAP coverage which will pay the difference between the ACV of your vehicle and the amount owed. Never purchase this from the dealer and it will cost you several times what you can get it from your insurance company for.
What insurance covers the driver who is at fault?
Assuming that the at-fault driver maintained it at the time of the collision, his/her auto liability coverage would be triggered.
What is full coverage Auto insurance?
Full coverage auto insurance is a policy which covers first party and third party injury to the body or damage to car. It covers physical damages to the car if it has been leased at the time of accident, death or physical injury to the body of people involved in the accident, also property damages caused by the insured person's car to someone's property,
