Auto Insurance Specialists

Auto insurance deductible is the amount that you agree to pay out of your own pocket before the insurance company pays the rest of the amount up to your coverage limit when you file a claim for damages to your car. So, if your car suffers damages worth $1200 in an accident and you have selected a deductible of $500, then that means you will have to pay $500 and your insurance provider will pay the remaining $700.

You would obviously want the company to pay all the expenses. So you may apparently prefer a zero deductible. But that may not work to your advantage because the lower your deductible, the higher your auto insurance premiums and vice versa.

This makes sense because every time you have an accident, it will cost your insurance company more money and you are more likely to file claims. So a higher auto insurance deductible will mean lower insurance premiums each year thus saving you significant amount of money annually.

However, when selecting your deductible you must remember that this is the amount you “have to” pay if you were to file claims with your insurance company for damages to your car. So, make sure that it’s an amount that you can afford to pay without any financial hardships. It’s always better to ask your insurance provider for auto insurance price quotes for both higher deductibles and lower deductibles so you can pick the one that suits you best.

A car is said to be totaled when the cost of repairing the car exceeds the cost of it’s replacement. This can happen if the car is so damaged in an accident that it’s considered beyond repair. This may also happen if the car owner is covered only by the minimum insurance and the insurance costs won’t cover the repair costs of the car.

For totaled cars, insurance companies prefer to make a settlement than paying for the repair costs. The totaled car value is calculated on the basis of the make, model, mileage covered by the car and condition of the car at the point of settlement. When determining the totaled car value, the depreciated value of the car is taken into account. Hence, insurance companies consider only part of the present market value of the car. This may vary from 60 to 80 percent depending on your insurance company.

If the car in consideration is totally beyond repair, then auto insurance specialists will advise you to settle for the salvage value of the vehicle. Once you accept the settlement amount, the car is then sent to the salvage yard where it’s parts are auctioned. The salvage value that you get paid should restore your financial condition to a point before the accident happened.

However, if are unsatisfied with the settlement amount being offered , then you can always approach the salvage yards in your locality to find out the approximate salvage value of your vehicle. You can average out the quotes to check whether your settlement amount is close to your estimated salvage value. It’s advisable to do your own due diligence for the ACV of your vehicle.
You should be aware that insurance companies themselves don’t calculate the totaled car value. They get it done through third party sources like certified collateral corporation, to be fair to the car owner and for protection against litigation. If you feel that the totaled car value is inappropriate and that your car qualifies for a higher settlement amount, then you can retain the salvage value and sell your car off at a higher salvage value. The second option is to get the repairs done yourself, if it’s financially viable, and get a few more years out of your car.

A car accident is always an unpleasant experience and can never be anticipated in advance. The financial implications of an accident can be taxing for the driver, if not adequately protected. However, there are steps that can safeguard you against the legal and monetary ramifications of an accident. As it’s difficult to think and analyze things after an accident, it helps to know what do to after a car accident well in advance.

Firstly, it’s important that you keep an emergency kit in your car. Car survival kits are available commercially and can help greatly till the medical help arrives at the spot. You should also have a pen and notepad in your car to take down the necessary information in case of an accident or other eventuality. Having a mobile phone also helps in immediately contacting your family or calling for medical aid, if necessary.

If the injuries are not serious, then try and move your car out of the way of traffic so that further accidents can be avoided. This is quite common on busy streets. But if you have suffered physical injuries and are not in a position to move your car , then it’s better to stay within your car till help arrives.

Although the trauma of an accident is often very disturbing, one needs to keep the composure to access the extent of damage caused in the accident. It is very important to get the name, telephone, address and driving license of the parties involved in the accident. In addition, information on the make, model and color of the vehicle, the license plate number, particulars of the insurance company and insurance policy can also be helpful. If possible, then take the name and phone of any person who might have been a witness to the accident.

In most accidents, a police officer visits the scene of accident to prepare an accident report and do the preliminary investigation. You should take the report number from the law enforcement officer. However, if no police officer visits the scene of accident, then make sure that you file an accident report at the nearest police station. Although this may appear trivial, it helps in the process of settling car accident compensation and claims.

Contact your insurance company and inform them about the accident and the car accident report number as soon as possible. Do this even if the accident doesn’t apparently result in any major injuries. Most insurance companies need their clients to report any accident to them. You should update your insurer even if you weren’t responsible for the accident because your premiums won’t be raised if it wasn’t your fault. But failing to report the accident may land you in trouble in future if you were to apply for new insurance policy.

Lastly, you should visit the doctor and get a thorough checkup done after the accident because all car accident injuries don’t usually become evident instantly. A checkup can reveal the extent of damage that you suffered physically , if any , and the early diagnosis can prevent it from becoming a serious injury. By preparing for a car accident you may not be able to stop it from happening , but you can surely be in a better position to react to it and suffer less damages , both physically and financially.