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Monthly Archives: August 2018

Classic Car Insurance

To this type of auto fan, it becomes an obsession that should flood his or her free moments – especially weekend time. So, for all of you that insurance companies write policies for – this is for you and your wonderful craze!

Exceptional Fun Facts for the Antique and Classic Car Lover

• Do you know the difference between the automobile term, horseless carriage, and the term vintage car? A horseless carriage is in reference to the antique cars that went public from 1896 to 1915 and a vintage car refers to cars made between the years 1916 and 1925.

• See if you can guess this one! How many Barracuda convertible cars were produced in all? The grand total will set you reeling: there were seven in all!

• If you managed to come up with the answer to the above, see how well you do on this one. How many 1940 Dual-Cowl Phaetons did the manufacturing auto company produce in all? The modest answer is six!

• The great and oftentimes revered Mustang car was initially presented by its manufacturer in the year 1964.

• Though car fans usually are associated with the color red, the very first Camaro car was actually bathed in the color black. (Black is beautiful, right?)

• Ever wonder where the English dictionary came up with that great word we reference to the car? Automobile is actually two words that are blended together. Auto means oneself and mobile means the ability to move. Hence, an automobile is that wonderful invention that allows an individual to travel via driving maneuvers!

• The renowned auto company began mass production of its reasonably priced Model T automobile in the year 1913.

• If you view movies about Fidel Castro’s dictatorship, you will be led to believe that the natives only drive classic cars. The reason for the large amount of older cars on the streets of this Latin American country is due to the infamous US Trade Embargo of 1960 that resulted in no new trade of automobiles between the nations.

• Want to know about cheap auto insurance for your classic vehicle? Talk to an experienced independent insurance agent. He will demonstrate how to choose the appropriate policy according to your driving needs and mile accumulation as well as other factors.

Don’t Mess With Car Insurance

1. Analyze your coverage

Understand and analyze your coverage. Make sure you cover your car adequately. We are not advising you to be covered insufficiently, however paying huge premiums also does not really make sense. For Example, third-party car insurance is mandatory by law. If your car meets with an accident, coverage is guaranteed to the third party only in the event of bodily injuries, permanent disability, and accidental death. What happens to your car now? In this case your assets could be at risk if it had to be a major accident. Hence going for a comprehensive insurance would now make sense to avoid the major repair expenses.

2. Go Shopping
With the variety of Insurance companies available, you can narrow down your search of selecting the correct insurance policy as per your requirement. Some online insurance portals like Coverfox.com provide good comparison of different insurers on the basis of premium, cashless garages, claim settlement ratio etc. By comparing the car insurance policies you save a lot of money since this involves less paper work. You also get a wider range of products. So compare car insurance and give a thumps-up for your wise decision.

3. Pay extra, go for Add-ons
When you own a car, getting it insured is the first step. However, protecting it wisely by going for suitable add-ons becomes like a cherry on cake. Insurance companies provide different add-ons, such as bumper to bumper, paid driver cover, engine protector, roadside-assistance and passenger cover to name a few. In short, you pay a little extra to cover all your risks. However again, check what add-on best suits your car and then opt for one.

4. Free Look Period

Free look period is a time frame decided by the Insurance companies during which you can decide whether to continue the policy or not. If you are unhappy with the policy terms and conditions or with the services of the Insurer, you may go for policy cancellation and ask for full refund.

5. Ask for discounts
Why feel shy to ask for discounts, if it can actually help you save some bucks? You can earn good discounts for being a good driver! The most costly parts of the car like the gear lock, safety equipment’s, air bags etc. can actually benefit the insurer since it reduces the cost thereby giving you rewards for your safe and responsible driving.

Info Terms and Conditions of Auto Insurance

An insurance covers the policyholder and in most cases it covers other people who use the car or the driver. However if the car gets into an accident which is not in the interest of the policyholder, or in violation with the agreement between the policyholder and the insurance company, the insurance policy will not cover the damages from such accident.

In instances where the insured vehicle gets sold to another person, the new owner is covered by the third party liability Insurance and also by the comprehensive car insurance policy (if there is any) within a period of 3 weeks after the change of ownership. When there is a new active insurance policy, all deductibles under the insurance will be paid by the new car owner.

Auto insurance does not cover damage to vehicles in company possession for purpose of sale

Depending on the car insurance policy agreement between you and your insurance company, there might not be a need for you to notify them when the terms in the policy agreement changed. The consequence of refusal to notify the insurance might be forfeiture indemnity and compensation if an accident occurs or reduction of the indemnity and compensation or lapses in the payment if indemnity and compensation.

Therefore to avoid the consequences stated above, whenever there is a change in the policy information notify your insurance company immediately.

You can purchase the same auto insurance from two different insurance companies without terminating the initial insurance with the first company but when an accident occurs, the agreement in your car insurance policy will applied, and this may mean that both companies pay half is the cost for the accident each.

Another important thing to note regarding auto insurance is the deductibles which are based on the agreement in the auto insurance policy. Deductibles are deducted only once in cases of an insurance event involving both third party liability and damages under the comprehensive auto insurance.

No deductible will apply in situations such as:

1. Damages from a known liable tortfeasor

2. Damages from fire, explosion, lightening or theft

3. Damages from items falling on the car.

Furthermore, there will be additional deductible if there is driving damage to the car by another person other than the policyholder, or any registered user of the three car under the auto insurance policy.

There are certain accidents which your auto insurance policy may not cover. Under the liability insurance, your auto inside policy does not cover;

1. Injury to the driver

2. Damage from the carriage of goods by road under the acts of contract

3. Damage to attached vehicle

4. Damage which occurred at the time the vehicle was rented out unless it can be proved that the damage is as a result of occurrence which is in accordance with the auto insurance policy

5. Damage to items belonging to the driver, policyholder, anyone stated in the auto insurance policy it a regular user.

The following accidents are not covered by the comprehensive auto insurance:

1. Damage resulting from weather conditions

2. Damage car parts during repairs unless it can be proved the damage had occurred during the driving or by fire

3. Damage in the electrician and mechanical parts the vehicle, unless it can be proved the damage occurred in accordance with the auto insurance policy

4. Damage resulting from reckless driving i.e. Overheating or no change of oil

5. Damage which occurred while the car was rented out

6. Damage which occurred from intoxication of the driver

7. Damage caused intentionally by grid negligence

8. Loss of the car due to seizure of the car by law enforcement authority

9. Damage under warranty and guarantee

10. Damage from usage of the car such as wear and tear, scratches on the car body and so on.

Story of the Uninsured Driver

When Sally was hit from behind she sustained serious injuries. She was able to utilize her own auto insurance policy to pay for medical costs because the state where the accident happened was a no fault state. Essentially, this means that almost every insurance policy must provide any drivers or passengers in the insured vehicle medical payments coverage up to $50,000. This coverage is commonly referred to personal injury protection, or PIP. A policyholder can purchase more PIP coverage above and beyond the standard $50K if they so choose. In Sally’s case, her policy only afforded her $50,000 of personal injury protection at the time.

After she exhausted her PIP coverage, she met with a lawyer about suing Jimmy for pain and suffering and making a claim on Jimmy’s policy, but Jimmy was driving uninsured at the time! Even still, Sally decided to sue Jimmy after all and go after his personal assets. After a lengthy court battle, Sally’s pain and suffering was valued at about $200,000 by a court of law and a judgement was issued against Jimmy. To Sally’s chagrin, Jimmy had no assets so his wages were set to be garnished whenever he got back to work (which wouldn’t be anytime soon)! Sally’s medical bills went far beyond the $50,000 that she received through her PIP coverage. Sally also did not have health insurance at the time and didn’t have a lot of money herself. So how was Sally supposed to pay for all of her bills? She certainly wasn’t going to wait around for Jimmy to get a job!

Well, insurance policies typically have another standard coverage called Supplemental Uninsured/Underinsured Motorists Liability (aka SUM coverage). At the time of the accident, Sally’s policy only had the minimum required SUM coverage, which is $25,000 per person and $50,000 per accident in her state. Basically, this coverage paid out $25,000 to Sally for her pain and suffering (which mainly went to her medical payment costs) but she was still on the short end of the stick for all the medical payment costs she had incurred. Could she have had more of this coverage? How does SUM coverage work?

Supplemental Uninsured/Underinsured Motorists Liability (SUM) coverage is auto insurance coverage that is mandatory on all car insurance policies in many states. The purpose of this coverage is to protect people who are either hit by a vehicle with a driver who has little to no insurance, or involved in a hit and run accident. In the example of Sally and Jimmy, Jimmy had no auto insurance at all. So, the SUM coverage on Sally’s policy is there to pay for her pain and suffering in the case that she is unable to collect from Jimmy’s insurance.

The ironic thing was that Sally had high bodily injury liability limits of $250k/$500k but they didn’t apply in this situation. For just a few dollars more she could have had increased her uninsured/underinsured motorist (SUM) coverage to match her bodily injury liability limits and she would have been able to pay for the cost of all her medical bills with the help of her own insurance carrier!