Does your insurance premium go up if you file a claim for something you’re not at fault for?
Elaine from Minnesota asked us last week whether ”your insurance premium go up if you file a claim for something you’re not at fault for?” – The question is tricky, as it depends pretty much on the type of the claim and the circumstances. Anyways, here we go:
Filing claims for accidents you aren’t at fault for is a completely normal thing to do, but it is not ideal. You should first try to go through the at-fault party’s insurance company.
The at-fault driver is responsible for reporting the accident to his insurance company, but many times (for different reasons), they do not. Therefore, its a good idea for you to contact them also. To ensure that you are able to do this, at the scene of every accident, you should swap insurance information and contact information with the other party. Also, be sure to contact the police even in the event of a small accident. They will be able to determine who is at fault.
You should contact your insurance company in the event of an accident no matter what – just to report it. This does not mean you will be making a claim, it is just to let you insurance company know with is going on to keep them informed. This establishes good faith. (In event the at-fault party’s insurance company refuses to pay on the claim, your insurance party will cover damages.)
If you have exhausted all options with the other party’s insurance company, you can then file a claim with your own insurance company for the damages.
This is why it is a good idea to be equipped with “collision coverage.” If you are in an accident you are deemed to be “at fault” in, your “liability coverage” will pay damages you cause to other drivers. If you are in an accident you aren’t at fault in, but still can’t get the other party’s liability coverage to pay out on your claim, your collision coverage will cover the damages.
If you are afraid that these claims being made against your policy will result in a rise in your insurance costs, don’t be! In fact, it’s illegal for insurance companies to raise your rates from filing claims that aren’ your fault. Naturally, try and go through the at-fault insurer first, but if that fails, don’t worry – file a claim with your provider. That’s what insurance is for!
What are the most expensive cars to insure?
A classic and still interesting question was brought to us by Dan from Colorado: “What are the most expensive cars to insure?” The question is natural and the answers ever changing, at least to some degree. So let’s get started.
The list of most expensive cars to insure is kind of an obvious list. As you would expect, luxury cars, sports cars, and cars that would be expensive to repair always seem to top the list. As an American, you probably are aware of the stereotype that foreign cars (especially European) are expensive to repair and domestic cars are cheap to repair.
Before we reveal the list of most expensive cars to insure (for 2013), let’s first take a look at the least expensive cars to insure list:
1) Ford Edge SE
2) Jeep Grand Cherokee Laredo
3) Subaru Outback 2.5i Premium
4) Kia Sportage
5) Jeep Patriot Sport
6) Chevrolet Express 1500
7) Subaru Outback 3.6R
8) Hyundai Tucson GLS
9) Ford Explorer
10) Hyundai Tucson GL
As you can see, half the list is made up of American cars. The other half is made up of cars from “affordable” Japanese manufacturers. The Ford Edge SE at #1 only costs $1,128 yearly to insure. The Hyundai Tucson GL at #10 still only costs a modest $1,204 to insure.
If you are looking for cars that are cheap to insure, you should look in that direction. Generally speaking, you should look at safety ratings, repair costs, and affordability of the vehicle you are looking at to get a good idea of how much it will cost to insure.
Now for the list of most expensive cars to insure for 2013:
1) Mercedes Benz CL600
2) Mercedes Benz CL65 AMG
3) Mercedes Benz S65 AMG
4) Mercedes Benz SL65 AMG
5) Mercedes Benz CL63 AMG
6) Mercedes Benz S600
7) Mercedes Benz SL63 AMG
8) Mercedes Benz S63 AMG
9) Porsche 911 Turbo
10) Porsche 911 Turbo S
As you can see, luxury European cars dominate the list. The number 1 car costs an average of $3,357 per year to insure while the #10 vehicle costs $2,925 to insure. If you can’t afford to drop $3000+ per year on insurance, you should probably stay away from these cars!
How to chose the right auto insurance company for my car and specific needs?
Bob from Pennsylvania asks: How can I chose the best car insurance company for my vehicle? How do I know which rates are best for my situation and if the carrier does really deliver?
Insurance companies are a dime a dozen. Like with any other purchase you make, it’s best to do your research before you dive into a contract with an insurance provider you know nothing about. Let me give you a brief walkthrough on how you can find the right insurance policy from the right insurance company.
1) Know how much coverage you want and what type
There are many types of insurance coverage out there. The major types of coverage include liability, collision, comprehensive, uninsured motorist, and medical payments. To educate yourself further on these types of coverage, read the pages of Insurance Panda and explore our glossary.
More importantly, you should know your state minimum’s requirements for auto insurance. All states have at least some form of liability insurance requirement and usually some uninsured motorist or collision coverage is needed as well. It is illegal to drive without your state minimums, so in addition to the coverage you want, make sure you have the coverage you need.
2) Find the right provider
After you are equipped with the information you need to start shopping around, you need to do research on the companies you will be comparing quotes from. To make sure the providers you are looking at are reliable, there are a few different things you should look at:
- Licenses – Most likely, the insurance companies you find online or in your phone book will be licensed to insure. If you want to double check, however, you can check with your state’s department of insurance.
- Financial Stability – Checking the finances of an insurance company is a good way to find out how reliable they are. If you want to find a company that has a good reputation when it comes to paying out on claims, look up the insurer’s financial strength rating at agencies such as A.M. Best, Standard and Poors, or Moody’s.
- Consumer Satisfaction – Read reviews of the insurance companies online and see what customers are saying about them. Make sure there are not more complaints than compliments. A good way to start is to Google “insurance company reviews” and see what people like you are saying about them.
3) Compare Auto Insurance Quotes
You can start comparing quotes from different insurance companies easily online by using sites such as Insurance Panda. To start, scroll back up to the top of this page and enter your zip code to begin. After filling out our brief form, you will be given rates to compare from the most reputable insurance companies. All companies we work with are licensed professionals with strong financial ratings and high customer satisfaction scores. To get the best insurance rates possible, get quotes from Insurance Panda now.