How Installing Aftermarket Parts On Your Vehicle Will Affect Your Automobile Insurance

Posted by on Dec 21, 2015 in Uncategorized

Partly due to recent trends in automobile customization, and partly due to the wide availability of parts, aftermarket automobile parts are being used more than ever before. In fact, it’s been estimated that up to 80% of auto repair shops are now using aftermarket products. If you’ve been in an accident and your body shop is using aftermarket products on your car, or if you’ve just decided to give your vehicle a little flair, you’re going to need to let your insurance company know about these changes. Why does your insurance company care about aftermarket parts? There are two main reasons: the value of your vehicle, and the vehicle’s safety. The vehicle’s value While installing a new aftermarket part (making an addition to a car) can often increase a car’s value, replacing an original part with an aftermarket part can actually hurt a vehicle’s value. Aftermarket parts are almost always cheaper than the manufacturer’s, meaning that a car with these parts is worth a little less than a car with factory installed parts. If you’ve made an addition to your vehicle or you’ve had parts replaced, let your insurance company know, and this affects the car’s value, which directly affects your insurance premium. The vehicle’s safety Another issue with the use of aftermarket parts is the issue of safety. Advocates of using only original manufacturer’s parts claim that aftermarket parts “aren’t subject to the same crash testing standards as OEM parts, and therefore are not as safe.” In some cases, this may actually be true. For example, adding an aftermarket sunroof is a great way to feel the breeze in your hair, but some insurance companies have claimed that adding a sunroof weakens a car’s structure, and makes damage during a rollover more likely. The Institute for Highway safety however argues though, that aftermarket parts are perfectly fine for cosmetic purposes and that they won’t compromise the safety of the vehicle. Insurance companies often will push for the use of aftermarket parts (because of the price), and may only cover a portion of the cost of original parts. But if the part being replaced is crucial to safety, it’s often best to stick with original parts. Whether an aftermarket part for a vehicle is being added simply to add some excitement to a car, or whether an auto body shop has recommended it, you’ll need to let your auto insurance company know. Adding aftermarket products could affect your rates if you tell your insurance provider, but not telling them could lead to a claim not being...

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3 Mistakes To Avoid When Trying To Save Money On Your Car Insurance

Posted by on Dec 4, 2015 in Uncategorized

It is generally a rule that you need to carry auto insurance if you own a car. Many people get frustrated with the fact that they need to pay for insurance and do everything that they can to lower their monthly premium. Although saving money is nice in many cases, you should never sacrifice a good policy to save a couple bucks. Here are a couple mistakes to avoid when trying to save money on your auto insurance. 1. Raising Your Deductible One of the simplest ways to save money on your monthly premium is to raise the amount that you pay in your deductible. In some cases this is a wise choice. If you are a safe driver who rarely gets tickets or is in a car accident, then this may be a good choice for you. However, in some situations it may hurt you more in the long run. For example, if you have a teenage driver in your home, you may want to keep the lower deductible. It will only change the amount you pay each month by a small portion, but it could actually save you money in the long run, seeing that younger drivers are more likely to have accidents that require you pay out of pocket to fix the damage. 2. Removing Clauses From Your Insurance Policy Another way to save money is to go through your policy and opt out of certain coverage. For instance, you can remove clauses that help to protect you when renting a car, comprehensive damage, medical expenses and so forth. By removing some of this coverage you will save a couple dollars each month, but you could be in a world of hurt if you are in an accident. Remember insurance is something you hope you never have to use, but if you do, you want good coverage so that you aren’t bankrupt when the time comes. 3. Opting Out Of Liability Coverage Lawsuits happen all the time, which is why it is so important that you protect yourself. If you are in a car accident and are sued by the other individual, it is vital that you have liability coverage. Never take out this clause in order to save a couple bucks. A lawsuit can range from a couple hundred dollars to thousands of dollars. This is why you should always carry liability insurance, especially on your car. By avoiding some of these mistakes you can be sure that you are getting the coverage that you...

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Five Ways To Make Your Current Auto Insurance Cheaper

Posted by on Nov 17, 2015 in Uncategorized

Having auto insurance is a must as a driver. Without auto insurance, not only are you driving illegally on the road, but you are not financially protected if you were to get into an accident. If you currently have auto insurance, but feel that the rate you are paying each month is too high, then you may want to look into these five ways to make the insurance rate a bit cheaper: Add Security Features: Most vehicles already come with security features, such as a car alarm and automatic locks. However, you may want to consider adding additional features that will help protect your car even further. This can ensure that you are provided with a hefty discount on your auto insurance. Consider adding window tinting, which prevents people from easily being able to look in your vehicle to see what you have inside. You can also install a tracking device that will ensure that if your vehicle is stolen, the police can locate it really easily before it potentially becomes wrecked or damaged.  ​Install a Usage Device: Ask your auto insurance provider if they will provide you with a usage device that will track how many miles you tack onto your vehicle. This device will also help your insurance company determine how safely you drive. For example, it can detect how hard you press on the breaks and how fast you drive. If you are a safe driver that doesn’t put many miles on your vehicle, this can be a great way for your insurance company to lower the amount that you pay for your insurance.  ​Always Choose a Yearly Policy: Choosing a yearly policy instead of a 6 month policy is always ideal because it ensures that you are paying less each month and the insurance companies usually provide a bit of a discount for yearly policies. This also ensures that you are paying a fixed rate for a whole year instead of potentially having to pay a higher rate in just 6 months time. Check for Group Discounts: Some insurance companies provide discounts to those who are associated with certain associations, such as credit unions. They may even provide a discount if you have a certain type of credit card.  Make Automatic Payments: Insurance companies would much prefer that their customers set up automatic payments, and because of this, they often provide discounts to customers who do this. This is because it guarantees that they will be getting paid instead of having to wait for you to send a check in the mail or call to make your payment.  By knowing some ways that you can lower your current auto insurance payments, you can make your payments more reasonable, thus ensuring that it isn’t so difficult for you to hold onto this policy each...

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How The Stock Market (And Insurance Market Trends) Affect Your Home Insurance

Posted by on Oct 30, 2015 in Uncategorized

As the stock market rises and falls, you may notice your home insurance rates wildly varying. That’s because there is a strong connection between the stock market and the home insurance market. Understanding how they are connected can help you keep track of your insurance expenses. Thankfully, recent news seems to suggest that trends are looking up. Recent Stock Trends After a month or two of falling stock trends, a recent surge of more than 10% seems to promise the potential of a bullish market. Generally, recoveries of this type create an investor surge that helps to positively rally the market. In spite of this rally, positive stock market sentiment is still relatively low. Sentiment indicates how investors are regarding the market and it rests at 37.5%. While this is a positive rate, it’s still about half what you see in a strong rally. In spite of this low sentiment, positive market gains are still present and are projected to move upward. Recent Outlook On The Home Insurance Market As the stock market rebounds, the outlook for the home insurance market continues to improve. A recent report at InsuranceJournal.com indicates that the home insurance market has vastly improved over the last several months, including an average 8.6 percent increase in equity across the country. This improvement has been generated by a rate increase of about 4.0 percent across the nation. Another improvement leading to these increases is more precise risk-adjustment pricing, which lets insurers create more finely tuned insurance plans. How This Affects You Both of these trends bode well for your home insurance rates and your level of coverage. Generally speaking, insurance rates are inversely proportional to the direction of the stock market. This means that if stock prices go up, insurance rates go down. That’s because insurance companies invest much of their money in stocks and bonds: when the rates go up, they can afford to offer their customers discounted rates. An improved home insurance market can also result in stronger home insurance coverage. Though you may pay slightly higher rates, a stronger insurance market generates a decreased chance of reinsurance. Reinsurance is the process of transferring certain portions of your insurance coverage to other parties. Insurance companies do this to decrease the risk of paying large payouts. A strong market reduces the need for insurance companies to divide your coverage in this way, which streamlines and simplifies your coverage. Now that you have a better understanding of these two forces, you can better plan your home insurance payments. It may also help you choose a stronger home insurance company, as specific companies will fare better (or worse) in the highly variable stock market. To learn more about home insurance, contact a company like Trent Insurance Group...

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How To Keep Your Home Insurance Premium Low And Affordable

Posted by on Oct 20, 2015 in Uncategorized

When trimming your household’s budget, one of the best places to start is with your insurance premiums. You shouldn’t have to watch your premiums increase every single year, because there are things you can do about it. Here are 4 ways to get the best deal on your homeowners insurance. Bundle All Your Insurance Products Having multiple insurance policies with one company is a way to lower your premiums, because you typically get a discount for doing so. The individual policies may be slightly more expensive, but the discount could be what makes them cheaper overall. While automotive and homeowners insurance are frequently combined for a discount, other insurance policies can increase your savings as well. For example, if you are considering getting a life insurance police, check with your agent to see if you will see any savings if you get one through the same company as your homeowners insurance. Increase Your Deductible When you file a claim with your insurance company, you must first pay your deductible. This can be anywhere from $500 to 1% of the value of your home, depending on what your insurance company offers. The less you pay when filing a claim, the higher your premiums are each year. Consider upping the deductible, and if you go claim free for several years, you will come out ahead in savings even if you do need to make a claim with the higher deductible. The key to making this change is having the money on hand for the increased deductible. If you have a 1% deductible on a $300,000 home, make sure you have that $3,000 deductible stashed away in an emergency fund for if you need it one day. Evaluate Your Coverage Your initial home insurance policy was based on the items you had in your home at the time you bought your policy. Things most likely have changed since then, and updating the status of your home can lower your risk and how much you pay. For example, a dog can actually increase your premiums because of the risk they pose to others with a potential dog bite. If you no longer have a dog, update your police to receive a slight discount. Your new windows may be more resistant to hurricanes and strong winds, which make your home less likely to be damaged and eligible for a cheaper premium. Maintain Good Credit                                                                                         Credit history actually plays a big role in how much you pay for insurance. A recent study has shown that homeowners with poor credit pay 91% more than homeowners with great credit. Having poor credit shows that you are unable to pay your bills and are a greater risk to insurance companies. Following these tips are a sure way to see savings with lower insurance premiums. For more information, talk to a professional like Gateway...

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