Do you have the right car insurance? Well, many people think that it is a must to have the right car insurance. It will be better if you get the best one with cheap auto insurance. While most people know whether they have liability, collision or comprehensive coverage, some people pay much attention to their insurance coverage until after they have been in an accident, the others just do not really care about it.
Shopping for car insurance is an important planning topic that is often overlooked since most teenagers are added to mom and dad's insurance policy when they first get behind the wheel and then later shop for the least expensive policy when they have to the pay the bill on their own. In this article, we will be discussing car insurance coverage and so you will get some tips to help you get the most for your money.
Cheap auto insurance has two primary benefits. The first one is protecting your assets and the second one is protecting your health. Getting the proper coverage is the first step in the process. These are the basic types of coverage with which most people are familiar:
1. Liability: This coverage pays for third-party personal injury and death-related claims, as well as any damage to another person's property that occurs as a result of your automobile accident.
2. Collision: This coverage pays to repair your car after an accident. It is required if you have a loan against your vehicle because the car isn't really yours - it belongs to the bank, which wants to avoid getting stuck with a wrecked car.
3. Comprehensive: This coverage pays for damage incurred as a result of theft, vandalism, fire, water, etc. If you paid cash for your car or paid off your car loan, you may not need collision or comprehensive coverage.
In addition to the coverage listed above, other optional coverage types include the following:
a. Full Tort/Limited Tort: Your insurance will be reduced by a few dollars if you give up the right to sue when you get an accident. However, giving up your rights is rarely a smart financial move.
b. Medical Payments/Personal Injury Protection: Personal injury protection pays the cost of medical bills for the policyholder and passengers. If you have good health insurance coverage, this may not be necessary.
c. Uninsured/Underinsured Motorist Coverage: This type provides for medical and property damage coverage if you are involved in an accident with an uninsured or underinsured motorist.
d. Towing: Towing coverage pays for a tow if your vehicle cannot be driven after an accident. If you are a member of an automobile service, or if your vehicle comes with roadside assistance provided by the manufacturer, this coverage is unnecessary.
e. Glass Breakage: Some companies do not cover broken glass under their collision or comprehensive policies. In general, this coverage is not worth the long-term cost.
f. Rental: This insurance option covers the cost of a rental car, but rental cars are so inexpensive that it may not be worth paying for this coverage.
g. Gap: If you demolish that $35,000 sport-utility vehicle 10 minutes after you drive it off the lot, the amount the insurance company pays is likely to leave you with no vehicle and a big bill. The same thing applies if your new set of wheels gets stolen. Gap insurance pays the difference between the blue book value of a vehicle and the amount of money still owed on the car. If you are leasing a vehicle or purchasing a vehicle with a low, or no, down payment, gap insurance is a great idea.
Having an adequate car insurance cover for your vehicle has become extremely imperative while driving on today's accident-prone, high traffic roads and dealing with uncertain conditions almost every day. Car insurance cover relieves your mind of the financial tension at least, takes your mind off the continuous worry of the expense that may occur from any unintentional damage occurred. So, one must be consciously aware of the car insurance term at any given point of time lest it expires and you are caught off guard with an unwarranted situation, only to find out that your car insurance is due for renewal.
While the mandatory renewal of car insurance every year may seem like a monotonous and rather tedious procedure but it is critical to get it done on time in an appropriate manner. Moreover, it is important to consider certain aspects in mind while renewing your car insurance policy; there are some do's and don'ts that can go a long way in helping you to have your car insurance renewal done in an informed manner. Let's have a quick at some of these points and help to smoothen out the process for you and also help in going for relatively cheap car insurance, at best price with the best services.
Do's - Get it right
1. Comparison among policies- The first and foremost thing to consider while renewing the car insurance policy is the fact that there is a wide variety of insurance covers in the market to choose from with absolutely no compulsion to continue with the same policy taken. In case you experience certain inadequacies in the interim of one year of the policy or you may wish to upgrade your policy as per the changing demands, then, you always have the option of switching to a new one. Before that, it is critical to take note of the varied policies available in the market and make a thorough comparative analysis.
2. Accurate Details in the Form- While filling up the form for car insurance renewal, it is utmost important to fill inaccurate details about your car and to the best of your knowledge so as to get a suitable policy by the company. Thus, it is advised to fill up the form in a relaxed state and on your own as you know your requirements better than any company agent.
3. Policy Record- Once you have renewed the policy, make sure to fill a copy in a file and keep it with for the record or if it's a soft copy, then save it with you on a hard drive so as to not lose it. It's important to maintain a proper record as it gives all information required at any point and leaves no room for any confusion when it comes to availing the No-Claim Bonus (NCB) or any other future claim.
4. Add on Covers- Before taking up any policy, it is vital to take note of all the add-on covers and go through them at length so as to choose wisely the ones that suit your needs instead of blindly going for everything and end up paying a huge amount unnecessarily.
5. Registration Certificate (RC)- While renewing your policy, also ensure that your RC is updated with your present address, name and other details. Also, see to it that the vehicle specifications are accurate and the details mentioned on the RC are in sync with the policy details.
Don'ts - Not to Mess Up
1. No blank columns in the form- Do ensure that you end up leaving no columns in the form blank or unanswered that may impact your policy renewal in an adverse way. Instead, one must provide all possible information, just to be sure to be taking the right help from the insurance company.
2. Not to miss timeline for renewal- Keeping in mind the expiry of the car insurance plan is critical not just from the perspective of any damage occurring in the interim when you are uncovered but also for saving up on the late renewal charges if any by the company. Moreover, it gives one time to think and then act rather than being in a hurry to insure with the first plan that comes your way.
3. No Incorrect Declarations- One must never make any incorrect declaration or give any wrong estimate to the car insurance company, intentionally, as that can end up in getting you the wrong cover. Tell them precisely what your requirements are, what the car condition and car value estimation is and your future claims will remain uninterrupted.
4. Not to forget about the transfer of name- In case of acquiring a pre-owned vehicle, make sure to have the policy transferred in your name and do not have it renewed in the previous owner's name itself by any chance.







Many people in the public sector find themselves in the stress-inducing situation of being responsible for the insurance function with very limited staffing resources to meet apparently insatiable demands, often now, as a result of recent restructurings, alongside other functions they are required to manage at the same time. In this article I pass on some of the things which I found worked for me when I was at the sharp end, which I hope you can adapt successfully to your situation.
The Problem.
Firstly let us agree as to the particular challenges arising in the management of the insurance function, especially when you have to combine it with other duties. Three factors contribute to the difficulty, often unrecognised by senior management.
· Lack of resources. Not only has there been a reduction in the number of your staff but some of the most experienced have left and not been replaced. Or else they have been replaced by inexperienced staff with little or no training in insurance. It is not easy to delegate with confidence.
· No reduction in demands. The number of claims has not reduced in proportion to your resources. The time required for annual renewals is the same as it was. The need to give departmental managers feedback about claims and advice about their risks or insurance cover is as great as ever. Or greater, since they too are under increased pressure.
· Fluctuations in workload accompanied by deadlines. It never rains, it pours! Claims and other demands on your time do not spread themselves out evenly over the year, but there are strict deadlines for claims and for renewals, so you cannot postpone some to let you deal with others, let alone any other work you may have to do, with its own deadlines.
The Solution
Follow these seven steps, preferably in this order, but any one of them should be of some help.
1. Review systems. Make the time to review all your systems. Remember "the Three E's": Efficiency, Economy, and Effectiveness. In the management of risk, effectiveness is more important than the other two. It is more efficient to pay every claim without investigating it, but not a good practice. Establish key indicators. Make them SMART (Specific, Measurable, Achievable, Realistic and Time-related) and especially remember R for realistic.
2. Consider carefully what to delegate. The advice almost invariably given is to delegate almost everything (to free you to manage). It is also almost always impractical when your staff are untrained and inexperienced, as well as each having a full workload possibly including other duties. Do not merely push all your problems onto your staff. But see (6) below.
3. Dump the rubbish. Find ways to stop doing things that are more time-consuming than they are worth. I increased the excesses on most property policies and greatly reduced the number of items insured on All Risks policies. The premiums saved more than paid for the resulting uninsured losses. This saved a lot of time for other managers as well as for me, by cutting out a lot of claims, as well as saving time spent checking endless lists. It also made the renewals process easier. Next, I amalgamated a lot of specific policies onto a few blanket ones to reduce time in checking whether something was covered, as well as reducing the risk of something being uninsured by omission.
4. Prioritise. Try to make time for things that might bring worthwhile results. Once I had reviewed cover to get maximum value for the premiums we were paying, I found that investigating liability claims was the most cost-effective use of my time. I also found that helping departments manage their risks better was worth the effort.
5. Get the most out of insurers, brokers, claims-handlers, and solicitors. This involves a bit of a balancing act. They can all be helpful in providing lots of useful advice and training, so work at cultivating good relationships with them. However, remember who you are working for and do not let these outside bodies dictate to you: insist on getting service, including feedback on claims, when you need it, and be prepared to question their decisions or advice if you are not happy. I learnt a lot by asking questions and not being satisfied with incomplete answers.
6. Train. Look out for free or low-cost training opportunities for yourself and your staff, including any shared or part-time staff. Then see what you can delegate.
7. Outsource selectively. Buy-in additional resources as and when needed to help iron out some of the fluctuations in your workload, and to obtain expertise you do not yet have. If carefully targeted and controlled, this can give good value for money.
Results.
If you do any or all the above things you should obtain the following benefits.
· Time. You can save enough of your time to enable you to do the things that really matter.
· Control. You will find yourself taking control of the situation rather than vice versa.
· Confidence. You will build your confidence and hopefully start enjoying the job.
· Savings! You will be able to save your authority money by reducing premiums, claims and uninsured losses (not necessarily in that order).
Summary.
Take the initiative, reclaim your time, take charge of the situation, and make real lasting savings. It can be done!
John Harvey Murray has worked in audit and accountancy in a number of local authorities and was the Insurance Officer at St Helens Council from 1990 to 2011 achieving considerable savings, comparing favourably with other authorities, according to CIPFA Benchmarking.
John is now offering his services to public and private sector bodies in the North West on a self-employed basis, trading as JHM Claims, including liability claims-handling, risk management and training services.
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