Monday, January 28, 2008

Auto Insurance Broker & Auto Insurance Deductible

1.Auto Insurance Broker

Auto Insurance Broker is a person who sells Auto Insurance Policies and also manages the auto insurance matters of their customers. They actually work as authorized representatives of the people who have bought Auto Insurance Policy and who are thinking of buying one.

Auto Insurance Brokers are the persons who are trained in Insurance and help the aspiring Auto Insurance Policy buyers to choose the right insurance policy. Not only that the Auto Insurance Brokers also help their customers to get their well-deserved insurance money from the Auto Insurance Company when a situation of Insurance Claim rises. So, it is easily understandable that there are lots of advantages of appointing an Auto Insurance Broker.

The Benefits of having an Auto Insurance Broker:
• The first advantage is that the Auto Insurance Broker serves as the Communication Point of his customer with the Auto Insurance Provider.
• The Auto Insurance Broker answers all the Insurance related questions of his client. He pays heed to all the ideas and concerns that his client shares with him.
• An Auto Insurance Broker is always available to his clients whenever they need him. The Auto Insurance Policyholders who have an Auto Insurance Broker is not required to rush to the Insurance Company for every small issue.
• An Auto Insurance Broker works with the aspiring policyholder to provide him an Insurance solution according to his needs.
• A trained Auto Insurance Broker shares his knowledge with the policyholder and helps him to understand every minute detail of the Insurance Policy and Insurance Coverage.
• An Auto Insurance Broker advises his clients about how to keep the Insurance Costs low.
• The Auto Insurance Broker not only recommends the right Insurance Policy to his client but also guides him through out the Insurance Application Process.
• The Auto Insurance Broker helps in processing the Insurance Claim and a keep a track of the proceedings until the policyholder receives the Insurance Money.

2.Auto Insurance Deductible

When you purchase auto insurance policy, you have to determine your deductible. It is the amount of money you agree to pay for future damages in the event you break your or someone else’s car. An insurance company will pay the rest of the cost up to the coverage limit. Deductible is also used in non-collision related damages to the car.

If you low your deductible on your auto insurance policy, you will raise your premium. Ask your insurer for a quote for a high ($500/1000$) and a low (100$/250$) deductible and then estimate your costs. Remember, if the accident happens during the first year, your total costs may be higher with a high deductible.
In any case, doesn’t raise your deductible so high that, should you have an accident, you can't cover your part of the cost.

Consider your chances of sustaining damage to your car and then take a final decision. The better chances you have, the lower deductible should be. Besides it's usually more profitable to get a low deductible for comprehensive coverage than collision coverage.

3.Cancellation & Non-Renewal

Cancellation and non-renewal are very different things though they may seem like they have the same affect on you. Cancellation is when the insurance company stops a policy before the end of its term. Non-renewal is when the company determines it will not allow you to continue your policy to a new term. This affects on your future.

It is not allowed for insurance companies to cancel a policy that has been in force for more than 60 days except:
• If you fail to pay the premium.
• You have committed fraud or made serious distortions on your application.
• Your driver's license has been revoked or suspended.

Non-renewal is different from cancellation. Either you or your insurance company can determine not to renew the policy when it expires. Most states require that before insurance company drops your policy, it has to give you a particular number of days notice and explain the reason for non-renewal. Call the insurance company's consumer affairs division, if you think the reason is unfair or need a further explanation. If you don't get a sufficient explanation, call your state insurance department. Non-renewal reasons are restricted by regulations.

You shouldn't necessarily think the non-renewal is because of something you did. The insurance company may determine to drop that particular line of insurance or to write fewer policies where you live. On the other hand, if you did do something that enlarged the insurance company's risk considerably, like driving drunk, the premium may rise and you may not have your policy renewed.

If your insurance company did not renew your policy, it does not mean that you will be charged a higher premium at another insurance company. If your policy was cancelled, then you may be required to pay higher premiums elsewhere, or may even have trouble finding other coverage.