If a Thief Decides to Break Into Your Car, What’s Your Auto Insurance Really Going to Pay For?

Do you really like writing hundred dollar checks? Of course you don’t. No one does. There are so many other things you could be doing with that money that sometimes it’s almost physically painful to drop the check in the mail each month to pay off the bill to your auto insurance. But the consequences of not having insurance coverage really doesn’t bear thinking about, especially if you live in a high crime neighborhood.

The question is, if your car is broken into how much is your auto insurance company really going to pay for?

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California Commercial Vehicle Insurance

If you drive a commercial vehicle (big rig, delivery truck, bus, etc.) in California you should be aware there are certain legal requirements for vehicle insurance that you must maintain. Because commercial vehicles can often carry hazardous materials or precious cargo (such as our children) the insurance requirements for them are much higher than traditional automobile coverage.

Not all insurance companies offer commercial vehicle insurance. Some companies that specialize in auto coverage have a separate division that handles heavy vehicle insurance underwriting. Many times you can consult with your agent who can inform you of their coverage availability or refer you to another insurer who may be able to handle your commercial needs.

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The Effects of Bankruptcy on Auto Insurance Rates

Financial crisis has become a major concern in the society. This situation poses a risk among people who are paying insurances. Such consumers have no choice but to file bankruptcy. One crucial issue is the effect of bankruptcy in auto insurance rates.

A car insurance company has specific terms and conditions for individuals availing of insurances. At unexpected circumstances, a car insurance holder who suddenly files bankruptcy has certain conditions to be met. A dilemma arises on its effect to the car insurance rates. However, certain factors are being considered in the process. The driving documentation of the client, type of car and amount of speeding are determined. The residence of the client can also be an additional basis for study. Credit document and the score are vital elements to excogitate for car insurance to increase rates or not. Bankruptcy can influence credit rating. This yields to an insurance risk wherein the consumer is being delegated, his capacity to pay and handle an insurance account. There are two types of bankruptcy. These are Chapter 7 and Chapter 13. These bankruptcy protections are utilized to make greater car insurance premiums. According to statistics of year 2007 and 2008, 34 percent of individuals had engaged to bankruptcy. Chapter 13 has been extensively used than Chapter 7. It provides privileges for minimum earners to sustain their investments and settle debts. This also serves as a security from collectors of former due bills. The utilization of Chapter 7 or 13 shall manifest in a consumer’s credit report for seven to ten years. Thus, every decision has its own corresponding result. A client’s relationship with the insurance company is an essential instrument to foster trust and understanding.

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