Should You Carry Collision Insurance?

Collision InsuranceLet’s talk about collision insurance for a moment, because “should I have collision insurance” is a question people often ask when they are buying car insurance. Or if one does have collision insurance on a car, how long should they keep the collision insurance?

What Is Collision Insurance?

Collision insurance is to protect you financially in the case of an accident. While liability protects you from getting sued if you hurt someone (or pays for damages to someone else’s property), collision insurance is to fix YOUR car in the event of an accident. Hence the name “collision insurance”.

The thing about collision insurance is it’s often (but not always) an option for the buyer. More on this in a second.

Who Needs Collison Insurance?

To start, anyone who would want their car fixed if they got into an accident is a candidate for collision insurance. But this will be tied to your car’s value as well. If your car is only worth, say, $2,000, it’s not worth paying the premium for collision.

Now, I mentioned earlier, you may not have the option to forgo collision insurance. If you took out a loan for your car, the lender will almost certainly insist that you carry collision insurance. This is to protect them in the case of an accident – since they technically own the car until you pay it off, it’s their asset that’s in the shop all wrecked, and yes, they’d like it fixed, please. So anytime you take a car loan, be prepared to pay for collision insurance.

But ok, you’ve had the car five years now, and you finally reached that great day when you make your last payment. Yay – the car is now yours, and yours alone. So, should you keep the collision insurance?

That’s going to depend on your threshold for risk, and, obviously, how much your car is worth. Think about if you got into an accident, and your car had $5,000 in damage – what would you do? Without collision insurance, that bill is on you. And if you don’t want to get the car fixed, then what? You have a useless piece of smashed metal that you can sell for parts, perhaps.

You have to balance the preceding with the cost of collision insurance, plus the deductible. Collision is probably the most expensive part of car insurance, often adding hundreds of dollars to your premiums. The deductible can range anywhere from around $500 to $2,000 (and, of course, the higher the deductible, the less the premium.)

Everybody is different, but I usually keep collision insurance on my cars until they are worth less than $8,000. At that point, I’ll take the risk that if something bad happens, I’ll just buy a new car. Because I look at collision as “catastrophic” insurance, I keep a high deductible. So my thinking is, if the car is worth $8,000, and my deductible is $2,000, that’s only $6,000 difference. Collision adds enough to my premium that I don’t want to spend $2,000 plus the premium to protect $8,000. For me, paying 25% of something’s value to insure it is a bad ratio. Again, everyone is different, but that’s me.

But until that point, yes, collision is a must-have.

Does an Umbrella Policy Make Sense?

shutterstock_185977205Have you ever heard of an umbrella policy? Or has your current insurance company reached out to you and offered one? Because depending on your needs and life situation, an umbrella policy could make very good sense for you.

First Things First – What is an Umbrella Policy?

An umbrella policy is an addendum to your current insurance. For homeowners and drivers, it’s usually offered when you have both your homeowner’s and auto insurance policies with the same company. For a fairly reasonable fee, they offer “umbrella” protection that extends the liability coverage of both to a certain dollar amount – usually a million dollars.

What this does is it protects you and your family in case you are liable, and get sued for an amount larger than your liability coverage.

To give a clearer example, let’s look at Harry. Harry has a home and a car, and is insured by ABC insurance for both. His policy limits in terms of liability are $250,000 for the house, and $100,000 for the car. So if Harry gets into a car accident and hurts someone or damages property, he’s covered for up to $100,000 in a lawsuit. For the house, if someone falls or gets hurt in his home or on his property, he’s covered for up to $250,000.

Any lawsuit / award over the above limits come out of Harry’s pocket. Or, more likely, will force him to lose his home, especially in the case of a bad accident.

What an umbrella policy does is it covers both the home and auto liability in a million-dollar umbrella. So if Harry got sued for $500,000, his homeowner’s insurance will cover the first $250,000, and the umbrella policy will cover the rest. Make sense?

As I mentioned, most umbrella policies are for a million dollars, and, in my opinion, that number was reached as that’s probably a good limit for the average person. When lawsuits are filed, the ability to pay is often factored in – in other words, it’s pointless to sue an average person for $50 million dollars. $500,000 is far more likely.

Who Needs an Umbrella Policy?

In my opinion, anyone who owns a home or property they want to protect, and also has their auto and homeowners insurance under the same carrier. This is because they can almost always extend the liability coverage to that million dollar threshold for a very modest fee. Of course, how much the fee is will depend on your circumstance – if you have a hot-rodding 17 year old on your policy, it’s probably going to be higher than if you were Driving Miss Daisy.

But all in all, an umbrella policy can make good sense, and I urge you to check it out.

New Study Reveals 90% of Auto Accidents are avoidable with Anti-Collision Technology (ACT)

Yet accident prevention experts say “It’s not that simple. You need the right Anti-Collision Technology”

A recent study by the National Highway Traffic Safety Administration (NHTSA) confirms what we always thought – having Anti Collision Technology in your car saves lives by preventing accidents.

But this does not apply to all types of anti-collision technology.

“This is one of the most common misconceptions.” says Rona Aharonson, CEO of Safe Drive Systems. “The idea that you can buy ‘any’ anti-collision system and expect it to keep you safe is simply untrue.”

Why is this?

Because not all anti-collision systems are created equal. Most lack adequate distance on their alerts, and fail to scan around the entire vehicle. But most important, many ACT’s will actually distract you, because they require you to look away from the road. And distracted driving is responsible for 80% of all crashes.

This is why Safe Drive Systems has developed Anti-Collision Technology that virtually addresses every flaw found in others.

  • Scan for danger up to 460 feet? Check!
  • Scan 20x per second? Check!
  • 360 degree scans? Check!
  • Intuitive alarms that naturally alert you? Check!
  • Anti-lane drift technology? Check!
  • Professional Installation by a local dealer and training in use? Check!
  • Extremely affordable (with insurance discounts too!) Check!

When drivers were asked what they wanted in an ACT, they listed 3 things—unprecedented safety, ease of use, and affordability. Safe Drive Systems provides you with all 3.

Add in generous insurance discounts (insurance companies love Safe Drive Systems), and the life-saving benefits for both adult and teenage drivers, and you have a real winner.

Be First in Line for Safe Drive Systems

Safe Drive Systems is available from local installers along most of the eastern seaboard of the US, with a growing waiting list developing nationwide. To find out when Safe Drive Systems will be available in your neighborhood (and also see how much of a discount your insurance company will give you) simply take 30 seconds to fill out this form.

This article sponsored by SafeDrive Systems

New Technology Designed to Keep Drivers From Getting Into Car Accidents

Technology has been making driving much safer for decades. From seat belts to anti-lock brakes to airbags, today’s cars are safer than ever.

But one thing technology hasn’t addressed is the prevention of accidents themselves – until now. Because it appears that the technology to prevent accidents not only has been invented, but it’s become readily available as well.

Making car accidents a thing of the past

This technology uses radar, and is designed to address the leading cause of car accidents: driver inattentiveness (otherwise known as “distracted driving”). In fact, according to a study released by the National Highway Traffic Safety Administration (NHTSA) and the Virginia Tech Transportation Institute (VTTI), 80% of crashes and 65% of near-crashes involve some form of driver distraction. And the distraction typically occurred within three seconds before the vehicle crash!

The reasons for distracted driving are varied, and are universal (meaning we all fall victim to them from time to time.) These can include:

  • Driving while tired
  • Following too closely
  • Not noticing a car in your blind spot, or perhaps even a pedestrian or bicycle
  • Being distracted by children, friends, the radio, or pets
  • Eating / drinking in the car
  • Talking or texting while driving
  • Drifting out of a lane
  • Merging too quickly

We all experience some of these from time to time. And any one of them could have life-changing repercussions. Even if you survive an accident, if you injure or kill somebody else, your life will never be the same.

Radar technology addresses every one of these issues, because it warns you when you are drifting out of your lane, when you are too close to another object or car, and so on. It’s almost like a shield around your car that alerts you to anything wrong within its vicinity, and prevents most accidents by completely eliminating the dangers posed by distracted driving. You could say this new technology will “undistract” you.

Radar Safety Available in New York, New Jersey, Pennsylvania & Connecticut

This radar technology has been cropping up in high end luxury cars. But now it’s become available to everyone. Well, almost everyone – as long as you live in one of these states – New York, New Jersey, Pennsylvania & Connecticut. A company called SafeDrive Systems has released a radar system that is easily affordable by anyone, and can make distracted driving accidents a thing of the past. Once you fill out your name, email and phone number, you will get free safety information specific to your car model/make so you can see for yourself how this can help you, your children, and/or your elderly parents avoid accidents, now and forever.

To see if the radar system is available for your car model, fill out the short form on the next page.

This article sponsored by SafeDrive Systems

Are You Being Overcharged For Your Car Insurance?

Car insurance is one of those items that most people overpay for. And the biggest reason is because they don’t pay attention to the little things.

We all know the obvious things, like having no tickets. But it goes beyond that. The trouble is, most people simply don’t think about their car insurance. In fact, they typically get their car insurance from whomever they get other insurances from, or they just go to a local broker. If this sounds like you, then you are probably paying too much.

We mentioned above that people pay too much because they don’t pay attention to the little things. What most people don’t realize is an insurance agent typically makes money off of the policies they sell, which means the higher the insurance premium, the more money that agent makes. Thankfully, smart drivers have found out how to drastically cut their insurance bill by using online tools to get unbiased quotes.

Here are a few points that will help lower your car insurance expenditures.

  • Realize that you can always switch insurance companies – Most people think they are locked into their car insurance policy until renewal time. That’s 100% false. You can cancel any car insurance policy at any time, and get a prorated refund. This encourages shopping around (more on this later).
  • Drive less than 35 miles per day – We’ve found that many car insurance companies don’t ask how much you drive (they’ll leave it up to you to ask them.) Make sure you bring this up, and ask if there are discounts if you don’t drive very far (like less than 35 miles a day).
  • Your credit may matter, also – If you have good credit, it could lower your premium. Ask about it if your credit score is 650+.
  • Ask about other discounts, like occupation and hybrid cars – Some companies offer discounts to “low risk” occupations (like engineer, teachers, scientists, etc.) Ask if your occupation qualifies. Some companies also offer discounts for electric cars / hybrids.
  • Compare, compare, compare – We cannot stress this enough. Remember earlier where we said you can get out of your current policy? That makes shopping around for the best rates very easy. The savings to be had by doing a little comparison shopping can be huge – often hundreds, if not thousands of dollars!

Comparing the different options the old way can be a time-intensive process and not really efficient, as there are 100’s of insurers out there. Thankfully, new online services now make it remarkably quick and easy to get multiple competitive quotes, so that you can easily find the lowest quote for you.

One of the most common of these free new services is called Insurance.Comparisons.org, which is remarkably fast and easy to use. You just need to enter your zip code, and then fill out a simple online form. It takes less than 5 minutes to get the auto insurance companies, all trusted names, compete over you (which encourages them to offer you their very best rates). You’ll be surprised at what you can save.

According to ComScore’s 2012 U.S. Online Auto Insurance Shopping Report, “nearly 70 percent of shoppers reported getting an online quote”. The report also found that “the online channel remains the preferred channel for customers shopping for auto insurance policies”.

If you too would like to receive the benefits of using a free car insurance comparisons service you can simply visit one of the top comparison websites, enter your zip code and some basic information and within minutes you will gain access to the system’s no obligation quotes. Once you go through a few questions, you will have the opportunity to compare the best carrier quotes available in your area. Fast, Easy & Free.

In the end, you have to realize that you can save $100’s a year if you just do a little homework in regards to car insurance. Forget the ads that say there are “tricks” – there really are no tricks except the things we mention above. Be aware of what you can do, learn about what kind of discounts you may be eligible for, and let the insurance companies come to you with their best offers, like they will when you compare them.

Best of luck, and happy savings!

This article sponsored by Insurance.Comparisons.org

New Rule Leaves Drivers Furious and Shocked

Do Not Pay Your Next Car Insurance Bill Until You Read This…

() – Are you being scammed by your current insurer? New policies are indicating that for years many drivers have likely overpaid on their car insurance coverage.

This is the one simple truth your car insurance company doesn’t want you to know. If you are currently insured, drive less than 35 miles/day and live in you may be eligible for some huge discounts. Did you know that? Or DUI’s… if you have no DUI’s, you can get even more discounts. But do you think your auto insurance company will tell you that? Fat chance.

When Miranda entered her zip code at Insurance.Comparisons.org, she got the surprise of her life. She found out her local insurance agent was ripping her off, and she could get car insurance much cheaper.

We managed to reduce our insurance premium by 50%! I only wish we had discovered this sooner.” Miranda exclaimed.

What Miranda did was visit an independent car insurance rate comparison website – Insurance.Comparisons.org, and entered in some basic information. Within seconds, she was shown the different rates that all of the popular insurance companies offered for the criteria she put in. And that’s when she found out she was overpaying.

Does this mean Miranda was being scammed by her former insurance agent? She would not say one way or the other, but the truth is most agents are paid on commission which means the higher your insurance premiums, the more money your agent makes. You can be sure, however, that your insurance company is not going to call you up to offer you a discount.

Did you know that car insurance rates have dropped?

Comparing insurance companies is especially important now, because rates have dropped over the last year or so. In fact, thanks to new program policies, you may be able to save $100’s on your current rate.

So, what is the “One Simple Rule?” NEVER buy insurance without comparing all of the discounts available to you through an unbiased source. Out of the 100’s of insurers out there, only a handful will give you really big discounts. But they ARE out there, and they WANT to insure you – you just can’t find each other.

FACTDrivers who compare rates are saving on average $368 each year.
Click here and save now!

You can automatically compare auto insurance companies – it’s fast, it’s easy, and it’s FREE. Heck, it’s even fun (well, as fun as insurance can be!)

Alex Rosner, a former executive in a leading insurance company, has done some research and found out that it is possible to save even hundreds of dollars if you compare many different offers side-by-side before you buy. With average savings of 32%, these online services are gaining massive popularity. One of the most trusted, secure and effective free online services that provides drivers with lower insurance rates is Insurance.Comparisons.org. Over 2,000,000 U.S. drivers have already trusted Insurance.Comparisons.org to help find and compare discount insurance rates.

Indeed, these insurance comparison websites are very easy to use. Customers just need to enter their zip code, and then fill out a simple & short online form. It takes less than 5 minutes, and the insurance company rates that are delivered for your side-by-side comparison are all trusted names you know. It couldn’t be any easier.

In the end, it’s the smart, diligent consumer that gets the best deals. This is true when shopping for a TV, and it’s true for buying car insurance. If you just go to your local agent and have him or her write what’s available, you are probably paying too much (and also subsidizing the agent’s tropical vacation). But again, the only way to find out for sure is to be a smart consumer and look at insurance companies side by side on an independent comparisons website.

This article sponsored by Insurance.Comparisons.org
Disclosure:

A new survey found that the #1 reason people switch is because they found a cheaper rate. Click Here for Survey. A second survey which analyzed car insurance quotes for 1,000 zip codes across the U.S. found that within a given zip code, rates vary by 154% on average, allowing drivers to find an average of 32% and $368 per year in savings. Click Here For Survey.