Guide to Knowing Your Auto

Transcription

1 Guide to Knowing Your Auto & Homeowners Insurance Options Presented by:

2 1 When it comes to insurance, you can never know too much. What type of insurance is available and how much coverage you need? And what about deductibles? How do I find quality insurance that is affordable and provided by a reputable provider? The right length of insurance policy term also matters and the flexibility of making changes if you need to. And what about deductibles? If you need to lower your premium it s important to know your options. The wrong insurance policy can mean poor coverage and high premiums. The right insurance policy means you are paying what you should and are protected no matter what. Auto Insurance: Must Have Coverage The truth is auto insurance is state required, and an expense for every car owner. Unfortunately, thousands of insured drivers are paying too much for car insurance each year. There are two types of auto insurance coverage required with a minimum legal minimum limit: Bodily injury and property damange. Every state has different limits, coverage. all of the other driver s costs if you re in an accident. Other drivers could sue you to collect the difference. Consider buying more than the basic limits to protect yourself financially. Vehicle Physical Damange Collision covers your vehicle for physical damage when it hits, or is hit by, another vehicle, or another object. Collision also covers the upset of your vehicle, such as the unintentionally rolling or flipping of your vehicle. This is the coverage that gives you the ability to put in a claim with your auto insurer. less your deductible amount. Collision will pay out, according to the terms and conditions of your policy. Collision doesn t cover all damages that your vehicle may receive. To have full coverage on your car you would also need to carry comprehensive coverage, which covers your car if it is stolen; or damaged by State Requirements - Financial Responsibility Most drivers buy liability insurance to meet the state s financial responsiblity law. You must buy at lease the minimum amount of coverage. The current minimum liability limits are $30,000 for each injured person, up to a total of $60,000 per accident, and $25,000 for property damage per accident. This basic coverge is called 30/60/25 coverage. Because of car prices and the high cost of medical care, the minimum amounts might not be enough to pay

3 2 vandalism, flood, fire, or animals. Not every issue with your vehicle is covered by collision or comprehensive insurance. For instance, damages caused by wear and tear, freezing or mechanical breakdown are not covered by either coverage -- or any other portion of an auto insurance policy. TDECU can offer coverage in the form of towing and rental coverage. In addition, at the time of the loan, TDECU can offer coverage for GAP coverage and mechanical breakdown benefits. When receiving a quote for collision coverage, you will need to choose a deductible amount. A deductible is the portion of a claim that you re responsible for paying before your insurance coverage kicks in. Most collision deductibles range from $100 to $2,500. In general, the higher the deductible the less expensive your premium and the lower your deductible the higher your collision premium since the insurer is taking on more risk. When picking a deductible amount, find the right balance for your finances. For example, if you set your deductible at $1,000 and your car sustains damages totaling $1,500, you will pay $1,000 and your insurance company will pay $500. Deductibles are due per incident, so you will have your deductible amount due each time a collision claim is made. copy of your insurance policy which indicates they are the loss payee. This will help avoid having your lien holder place coverage to protect their interest in the vehicle. What Happens if I Don t Have Collision Coverage? Most states require bodily injury and property damage liability other people and their property, but states do not mandate that you carry coverage to pay for damages to your own car. However, if you have a loan or lease on your vehicle, then your lien holder usually require that you carry this vehicle damage (Comprehensive and Collision). Make sure that you provide your lien holder a current copy of your insurance policy which indicates they are the loss payee. This will help avoid having your lien holder place coverage to protect their interest in the vehicle. Is Vehicle Collision Coverage Mandatory? Most states require bodily injury and property damage liability other people and their property, but states do not mandate that you carry coverage to pay for damages to your own car. However, if you have a loan or lease on your vehicle, then your lien holder usually require that you carry this vehicle damage (Comprehensive and Collision). Make sure that you provide your lien holder a current

4 3 And What About Other Types of Coverage? Medical payments pays medical and funeral bills if you, a family member, or a passenger in your car is injured or killed in a car accident. Personal injury protection (PIP) pays the same as medical payments coverage, plus a percentage of lost income Uninsured/underinsured motorist (UM/ UIM) pays your expenses from an accident caused by an uninsured motorist, a motorist who did not have enough insurance, or a hit-and-run driver. Towing and labor coverage pays towing charges when your car can t be driven. It also pays labor charges, such as changing a flat tire or jump-starting your battery. Rental reimbursement coverage pays a set daily amount for a rental car if your car is being repaired because of damage that your policy covers. Scheduled equipment you may want to consider scheduling coverage for after market equipment in your vehicle Auto Insurance FAQ Q: What s the best way to shop for auto insurance? A: You can buy auto insurance from various sources, all of which have their own strengths and weaknesses to consider when comparing your car insurance options. Here are a few: Direct Writers are companies that let you buy insurance directly without going through an agent. You can either call them up and talk with a customer service rep on the phone or you can research your car insurance online on their website. Captive Insurance Agents work with only one insurance company so they can t give you car insurance quotes from around the market. On the other hand they really know the in s and out s of the policies of the company they represent Independent Insurance Agents work with several different insurance companies. Since they have contracts with different insurance companies there s less chance they have a vested interest in selling you a policy from one particular company. At TDECU, we are an independent insurance agency, which means you have the ultimate choice, along with our great Member support.

5 4 Q: How can I tell if a company has a good reputation? There are a couple of things to keep in mind. The insurance carriers are regulated by the Texas Department of Insurance and you are purchasing a contract (insurance policy). If you wish to check out an insurance companies financial strength is a good source. JD Powers will be another source to review. Q: How do I know I m getting the best deal? Many individuals want apples to apples comparisons. A question you may want to consider is do you have the right coverage? If insurance premiums are expensive, it would be frustrating not to have the right coverage when you need the policy to perform. At TDECU, we suggest that the best deal is a combination of coverage, service and cost. We look forward to working with you! Wes Wolff, Your Insurance Expert Q: How important is customer service after the fact? It s critically important. The ultimate service is the policy taking care of the claims you make. When you work with your agent, identify your exposures and choose your insurance coverage. If you understand how you are covered, the at claim s process time becomes less stressful. Ongoing service is equally important. Serving Members when they have questions, concerns and changes is an expectation. In addition, we are available to serve you as your needs change.