Will my premium increase in the ratio of the amount insurance is paying to fix the car whether it is my fault or not?

We all worry about whether or not our insurance premium will go up if we get into an accident and have to file a claim. When you file a claim with your insurance company and they issue you a check to fix your car, the amount of the check may or may not influence your insurance premium.

Each auto insurance company has their own set of rules for when a claim may result in an increase in a customer’s premium. The amount that the insurance company has to pay on a claim factors into the rate that you will have to pay when you renew your policy. Some insurance companies have a first accident forgiveness policy, where your rates won’t go up if you have a minor accident.

Fault sometimes enters into the equation. If you are found to be the cause of an accident, it is more likely that your premium will go up than if the other driver was at fault. There is no direct link to how much your insurance premium will go up based upon the amount of the payment you receive from the insurance company to fix your car.

Whether you are at-fault, or just the unfortunate victim of another driver’s negligence, only matters if the accident winds up costing the insurance company more money to settle a claim. Both the size and the number of claims you file have an impact on how much you will have to pay for auto insurance. One small fender bender, when you have been insured with the same company for five years, will probably not affect your premium. Two major accidents in two years will be more likely to result in a higher premium.

Can I get insurance when my homeowners policy was canceled due to non-payment?

When a homeowners insurance policy is canceled due to non-payment in Plano, TX, it may seem like your options are limited. In many cases, you may find that insurance providers are less willing to offer a reasonable rate or plan due to the lack of payment in the past. Even though it may seem challenging, some insurers may offer solutions to help you protect your home and property.

The Situation

Depending on the homeowners insurance policy and the details of the plan that you are considering, the ability to obtain coverage may vary. Some insurers may be willing to consider the specific situation and offer solutions based on the problem that caused you to miss a payment. For example, if you lost your job suddenly and you have obtained a new job recently, then you may be able to obtain a policy that is appropriate for your budget.

The situation can have an impact on your options, so it is important to explain the reason for the late or missed payment if it is necessary for coverage.

Different Policies

Even though a missed payment that causes a cancellation may have an impact on the options that you are offered, every insurer and policy is different. Some insurers may have options that are specifically designed to address your situation and concerns. Keep in mind that you may find that the rates you are offered are slightly higher due to the historical data.

Missing a payment on your insurance can result in the loss of coverage, but that does not necessarily mean that you cannot find a new plan after the situation changes. Contact us to speak to an independent agent for more details about your options and the plans that are available for your goals.

What is the difference between market value and retail value in terms of insurance?

When people file accident or loss claims, insurance companies often calculate the market value of the item. They often take an average of the items resale and retail values to come up with a payout for the loss.

What Is The Seller Asking?

The retail value of an item is the price retailers might ask for the item. For example, when you start the search for a new car, you’ll note dealers list the retail value for their cars. This isn’t necessarily the price you must pay for the car, but it is the amount dealers believe they can get for their vehicles. It often includes a markup, or additional amounts the dealer adds on to make sure they get a profit.

What Can Sellers Charge?

Market value is the amount sellers can get away with charging. It includes considerations such as the item’s condition and resale value. Although sellers can charge any price they want, this value limits the amount they charge because there’s only but so much that customers will pay for a given item. To figure out a selling price for your home, you need to consider its location, repairs and prices other buyers paid for homes in the area. For example, selling prices for homes in Plano, TX, might be considerably different from one neighborhood to the next. You might pay higher prices for homes in Willow Bend Lakes than you would for homes in Park Forest.

Insuring Your Items

These values are important when you insure your valuables. Your premium payments depend on these amounts, and so does your loss payouts. You can visit our website to get instant quotes for your home or auto insurance policy. Compare these quotes to see the best option for you. You also can call our office. A representative can help make sure you select the best coverage for your possessions.

I have two car insurances, if I have an accident with one car, do I have to report it to the other insurance?

It’s not uncommon for some drivers to own multiple cars that are covered by separate car insurance policies with different carriers. For instance, you may have a daily driver covered under one provider and an antique or classic vehicle insured under another insurance provider. In other cases, you may have purchased a second vehicle for yourself or a loved one and, for whatever reason, decided to create a separate policy with another provider for that particular vehicle.

If the above applies, the only insurance provider you have to report an accident to is the one under which your vehicle is specifically covered. Given that the other vehicle you own isn’t involved, filing a claim with the other insurance provider isn’t necessary.

Another common scenario involves switching from one provider to another. Although it’s best practice to have your new car insurance policy’s effective date coincide with the end date of your old policy to avoid gaps in coverage, the two policies may overlap. If you have an auto accident during this overlap period, you should consult with your independent agent to determine the best course of action to take.

Remember, different insurers can cover different vehicles in your household fleet, but having two active policies on the same vehicle can bring about complications in the event of a claim and even result in a denial of coverage by one or both companies, plus it may not be allowed in your state, by your insurer or both. Don’t forget that our agents are always available to help answer the tough questions and work out your car insurance issues with you.