The insurance industry is one of the most profitable and investors, not surprisingly, want to see those dividends continue. This is not to suggest the insurers were ever charitable in their intentions. Insurance has always been a business in the real sense of the word. The result is the wording of the policies allows the claims adjusters some wriggle room when it comes to deciding which claims to honor. In another article on this site, we note the insurers have grown increasingly reluctant to cover flooding. Most of the coastal areas where high tides combined with strong winds can overcome sea defenses, and all areas formally designated flood plains, are now no-go for private insurers. Yet, you will still see standard terms for wind and water damage. This creates the impression you have some protection while allowing the insurers to argue they are not liable at all should you claim or only liable for a small percentage of your losses.

This is all smoke-and-mirrors. You can see a listing of perils covered which will include wind damage but, when you look at the clause on deductibles, you will probably find there’s a mandatory hurricane deduction. Unlike the auto insurance policies, this is not a fixed amount. These deductibles are a percentage of the value of your home and some insurers pitch the deductible up to 5% of your home’s value, e.g. $15,000 if your value is $300,000. For homeowners to have to find 5% as a lump sum to trigger the payment of the rest of the claim can be a major financial strain.

Now let’s comes to the theme of this article. One of the reasons why the claims process can slow down to a snail’s pace is disagreements over the difference between wind damage and water damage. The majority of policies exclude or restrict water damage. So, as an example, suppose a strong gust of wind removes the roof from your home. That’s clearly wind damage and the cost of rebuilding will usually be covered. Why “usually”? When the wind exposes the timber frame of your home, it can get wet and this can cause the frame to warp. Now the question is whether replacing the frame is responding to the damage by the wind or damage caused by the subsequent rain. You argue that the timber would not have gotten wet had the roof not blown off, so the main cause is the wind. The insurer argues the wind did not cause the timber to twist out of shape. That was the rain.

It would be good if all such arguments could be quickly resolved but, after Katrina, insurers are more defensive faced with large weather events. Worse, they have also been reducing the number of claims adjusters and everything now takes longer. This puts a heavy burden on home insurance policyholders. You’re often forced to take emergency measures to protect your property, e.g. when the roof blows off. Keep a detailed photographic record to show the before and after situation, keep all the invoices and bills for the materials and labor, and make sure you keep a constant stream of updating messages going to the home insurance company. It must always have the chance to monitor this work.

The current hype for custom shop vehicles heavily promoted by dozens of TV shows and thousands of professionals all around the country has made a lot of people think that their generic cars can be used as a means to reflect their individuality and lifestyle. For some people it’s just a matter of body color or custom paint job but for others only radical customization is the right solution. There’s plenty of room to make your car look unique and the only limit is your imagination and your wallet, of course. Yet, not many people realize that by taking their car to a customization service they also need to customize their insurance policies. Why? Because without doing so you risk being rejected once you file a claim after customization.

When you insure a vehicle with an insurance company you sign a contract for a particular object with particular features. These features are uniform across the same car make and model, and usually varies through minor features that are usually mentioned additionally. And when you file a claim the insurance company covers your repair costs so that you could replace the manufacturer installed parts according to their current market price. And guess what happens when you replace the default parts with custom ones, which often cost more? The company can actually refuse to cover the claim because you’ve introduced modifications to your vehicle that could change its driving characteristics and alter the risk posed to the insurance company. So, as a result you can be left with a broken car that you will have to repair out of own pocket and which will cost you more to repair because of the custom parts. So how do you avoid such an unpleasant situation and keep your car insurance relevant and valid?

It’s really simple. All you have to do in terms of car insurance is to inform your insurer about the customization right after performing it. Your insurance company representative then will evaluate the modification and decide whether you can keep the current policy intact or have to buy additional weavers in order to cover all the custom parts. Usually, if your customization only concerns the exterior such as a paint job then you are likely to keep your current policy. But if you install a powerful stereo system or tweak your engine for additional HP then get ready cash in for keeping your car insurance relevant. That’s because you alter the characteristics of your car and add to its actual value that should be covered.

So as you see there’s no problem with vehicle customization form the insurance point of view if you do your paperwork on time. Just keep your insurance company informed about all the modifications and you can rest assured that the policy will pay out when you file a claim. Yet, if you tend to think that the coverage will be altered automatically and you don’t have to tell anyone about your visit to the custom shop then you’re in for a rather unpleasant surprise once you file a claim.

As we all know, car insurance serves the purpose of protecting us financially from numerous perils we may face as drivers on the road. The most common perils are obvious: car accidents, auto theft and damage due to bad weather and other circumstances. All insurance providers offer different types of policies that let you cover such perils effectively and it all boils down to comparing auto insurance quotes in order to get the most affordable deal for your wallet. However, sometimes car owners can face perils that are not so common and that don’t make part of the usual comprehensive coverage list. If you want to protect your car from such perils let’s take a look at them and explore your options.

Earthquake

Earthquake damage can often make the part of exclusion clause list in many policies even if you purchase comprehensive coverage. It is more likely to have this type of coverage excluded if you live in an area with a high risk of such peril (think California for example) and the insurance company will require you to purchase a weaver to include this coverage option. Earthquakes can be a serious threat to the car, especially when stationed, with the potential of totaling the vehicle beyond repair if it happens to stay near elements of infrastructure that are prone to collapsing. So make sure to ask your provider if you can purchase this coverage as an additional weaver.

Flood

Flood is also one of those things that can seriously damage your vehicle and cause a serious financial impact if you’re not insured against it. As in case of earthquake damage flood can be excluded from the list of circumstances covered by comprehensive coverage in areas and states where the risk of such peril is higher. So if you live in designated flood area (near rivers, lakes, dams and other bodies of water) it would be useful to get this coverage type as a weaver. Sure, it will give you higher auto insurance quotes in the first place but you will be able to protect your car against a significant.

Tornado

Tornadoes are a very devastating act of nature that causes billion dollar losses annually and destroys thousands of homes in several states of the US. With the power to shatter a typical wooden house an lift cars off the ground this peril is one of the least liked by insurance companies because they know how devastating these things can be. Tornadoes are never included into comprehensive coverage and you have to buy the coverage separately. Moreover, you should do it prematurely because if you start looking for tornado coverage right before the tornado season (April, May, June) most insurers will deny your application because of the high risk.

Car contents during theft

Another aspect of comprehensive coverage that doesn’t get covered in most cases are the contents of the car being stolen. If you happen to have any valuable things in your car their cost won’t be reimbursed by the insurance company even if you get comprehensive coverage. The insurer will pay the value of the stolen car but all the things that were in it won’t be paid for. There’s only one opportunity to cover these things as well – check if your home insurance policy includes the items on your property, not only in your house. So if you’re unlucky to have the car stolen from your garage or front yard you will be paid by the home insurance policy for the contents of the car.

Are you tired of wondering whether you’re paying too much for your car insurance? It’s hard not to wonder when you see all the television commercials that promise you can save hundreds by switching to their company. But you can spend hours researching different companies only to find out in the end that you already had the best deal around.

What Does Determine Your Rates?

Insurance companies look at a lot of factors when they determine what your car insurance rates will be.
Did you know that even the weather at your location can affect your insurance? Drivers in areas of ice and snow will obviously be expected to pay higher rates than those living in warm, dry locations. Areas with more rain are also a cause for higher rates. If you live in a city, you’ll pay more than drivers in less populated areas.

Age is a factor: we all know insurance is higher for teenage drivers. But so is marital status. If you are divorced or single, you are going to pay more for your auto insurance, because the companies assume that you will be out more. Doesn’t seem fair, does it?

Then there’s your driving record. If you have a safe driver record, your rates will be lower. If you have accidents and points or tickets on your license, you will pay for them.

Your car is a consideration, too. Do you drive a car with a good safety record? That can lower your rates.
You can take a driver safety course to lower your rates, or move your homeowner’s insurance policy to your auto insurance company. Having all of your cars with the same company may get you a multiple car discount.

Some companies now consider how much you drive and when you drive when they fix your rates. If you drive infrequently, you may be able to get a lower rate. This is also true if you don’t drive during “rush” hours, when accidents are more likely to happen.

Choosing a Good Auto Insurance Company

After considering all of these factors, maybe you feel you could do better than your current rates.
So what do you do then? Most of us don’t have the time to shop around for insurance companies. But fortunately today there are websites you can go to where you can compare different companies advantages and rates quickly and efficiently. Problem solved.

This leaves you with only one more thing to consider. And that is how to choose the best insurance company for your needs.
With insurance, as with so many other things, cheaper is not always better. First and foremost you need a reputable company. If you are going with a company whose name you don’t recognize because they offer amazingly low rates, stop and think. How can they offer those rates? They may be a fly-by-night company that takes your money and then closes as fast as they opened. They may be a company with a reputation, but a reputation for not paying claims. What good is that? The point of auto insurance is to have the money you need to fix your car and pay your medical bills if something unforeseen arises. So go with a reputable company.

Anyone that is looking for auto insurance for their vehicle has a lot to take into consideration when it comes to finding the right cover. The auto insurance market can be a confusing one for those that are not experienced in this particular area, which is why many people end up simply opting for the first auto insurance plan that comes along as long as it is cheap.

However, whilst price is a very important consideration for the vast majority of people that are looking for auto insurance cover it should never be the only aspect of the cover that you look at. If you focus solely on the cost of the cover there is a good chance that you could end up with cover that is not really suited to your needs. So, although you may be paying less for your cover you will not be getting the protection that you need, which defeats the object altogether.

In order to get the right cover as well as the right price you need to look at all of the important aspects of the auto insurance plans that you are considering. Some of the things that you should make sure you take into consideration include:

• How much the auto insurance cover costs. This will always be an important part of choosing the right auto insurance for any consumer, as affordability is of the utmost importance, particularly in the current financial climate. You therefore need to compare the cost of the cover from one provider and plan to another in order to get the most competitive deals.
• The level of cover that you get. In addition to looking at the actual cost of the auto insurance cover you will also need to look at the level of cover that you get and ensure that it is suited to your needs. If you fail to take out the right level of cover you could end up paying for it in the long run in the event that your vehicle is involved in an accident, so this is of the utmost importance when choosing auto insurance cover
• The benefits and the features of the plan. These can vary from one provider to another, and some plans may prove to be better value for money than others because of the benefits and features that are included. For example, some policies may include breakdown cover or a courtesy vehicle in the event that yours is off the road whereas others may not. By looking closely at the various benefits that you get with the plan that you are considering you can work out whether it truly does offer good value for money
• The exclusions and restrictions that come with the plan. Again, you will find that these can vary from one plan and provider to another, although many will be pretty standard. However, by making sure that you check them before you commit you will ensure that you know exactly what you are getting with your auto insurance policy.