What You Need to Know After an Auto Accident

The worst thing has just happened to you. You have had an accident. There’s never a good time to have an accident but it always seems to happen at the worst possible time. So what do you do? First off you need to stay calm. It’s a totally natural reaction to lose your head or panic right when you need to be rational. Just after the accident is the time you should be taking note of all the information you will need to ensure that you are fully compensated and covered for any damage done to your property or to you. Talk to witnesses, get their contact details, make notes and take pictures if possible at the time of the accident. You’ll be glad you did as it will be difficult to accurately recall all of the details as time passes. Finally remeber not to admit that you caused the accident, even if you did.

Right after the accident this will all be the last thing you think of so make a checklist and keep it in the car.

While you are at the Accident Scene, note the following details You will need:

Driver Details of everyone involved in the accident. Don’t forgrt to add yours too. These details should cover the Drivers Name, driving license details and driver insurance details including the insurance company name, policy number and contact details. Finally remember to get the car license plate number.

If you are carrying a camera take pictures of the accident scene, the damaged vehicles and any injuries that were caused by the accident.

Note the contact details of any witnesses such as name, address, phone number and email address so that you can follow up with them later.

Post Accident Follow Up

Complete your own fully detailed description of the accident as soon as possible after it occurred. You can fill this in with the details and any pictures that you took at the scene of the accident. If you were injured then take pictures of your injuries.

Follow up with the witnesses to the accident and get their written details of the accident. If the Police attended the scene of the accident ask for their report.

After the Accident

If you were injured you will need to keep track of the following medical expenses and visits:

Any hospital visits and treatments at hospitals such as MRI, x-ray, physiotherapy and laboratory services.

Over the counter and prescription medications.

You should keep track of the dates, times and reasons you had to visit a doctor or the hospital and keep a note of the time off of work due to the accident. If the time off caused a loss of income you should get a letter detailing all of the lost income from your employer. Similarly if you are still in school you should keep track of all of the hours of missed schooling due to the accident.

While you are undertaking medical treatment you should take pictures of your injuries to show their progress over time. Keep a log of the date and time of the picture and add details of any pain that you are experiencing, how you are feeling, and any distress or discomfort that you experience as a result of the accident.

Keep track of all other expenses related to the accident. These will incluse some of the following: Property damages such as car repairs, damage to barriers, fences and signs.

Some other indirect expenses may also occur such as a cancelled vacation due to injuries sustained in the accident or the cost of a rental car while yours is repaired.Finally there are other miscellaneous costs, such as ointments,lotions to treat your injuries and bandages.

Finally

Never reply to any questions or queries from any other party involved in or related to the accident, such as insurance companies or attournies without first consulting your attourny. Do not settle any bills or sign any documents until you are sure of the extent of current and future medical expenses related to the accident, and have agreed it with your attourney.

We sincerely hope you never need this advice, but if you are involved in an accident it’s comforting to know that we are here!

We know we need it; it is required, after all. We just hope we never have to use it. Purchasing auto insurance may seem like the difficult part of the process, with all the legalese and fine print; however, if you actually ever need your auto insurance, you’re going to have to file an auto insurance claim. This can be the trickier part, if you aren’t prepared.

Below is some advice for filing an auto insurance claim. Although it’s best to brush up on this advice before you actually need to file an auto insurance claim, you may want to jot this advice down for future reference.

Get Answers

You really should know how much auto insurance you have before you’re involved in an accident; however, if you don’t, find out how much liability coverage you have. Liability coverage is the amount of money you have available to pay for the damages caused by an accident in which you are at fault. The liability insurance can cover vehicle repairs and hospital expenses for the other party, for example.

You also need to know the amount of your deductible for your collision auto insurance coverage, and your comprehensive auto insurance coverage if you have it. Simply put, this is the amount you have to pay before your auto insurance kicks in.

Contact Your Insurance Company

Contact your insurance company, and provide them with your name and address, as well as those of the involved parties, everything pertinent to the accident (date, time, location, damages, etc.), and the names and addresses of any witnesses. Your insurance company will advise you on what further steps to take, and then they will take it from there.

Keep Records

In the meantime, keep records of all paperwork, including repair receipts and hospital visits. Your insurance company may request this documentation later.

Being prepared before an accident will make the process after the accident much smoother.

How much insurance does one need? You have the big four: home, health, life, and car insurance. Then there’s a second category, which starts getting a little hazy with credit card insurance, purchase protection plans, fraud insurance and more. Extended warranties, also called extended service contracts, or extended service policies fall into the mist of this second category.

Extended warranties are supposed to pay (in full or in part) for specified repairs for a specific period of time after the expiration of the factory warranty. They can be a great value. They can also be a significant waste of money. It gets quite foggy in the details. What exactly is covered? How long? How much? Are there hidden charges?

There are numerous extended warranty companies and an even wider variety of warranty packages available: silver, gold, platinum, platinum-plus, and a host of other confidence-building words. What’s the best plan, and are extended service contracts worth the money? Extended warranties, like life insurance policies, are a numbers game. They’re a gamble. You pay $2500-$4500 for a 2 year, 100,000-mile protection plan and hope that you get at least that back in warranty repairs. The provider on the other hand, hopes to pay out less than it insured.

There are three major types of plan providers: The manufacturer, the dealership/third party, and third party providers. Each one has its assets and liabilities (discussed ahead).

What exactly is covered in an extended service plan? As mentioned above, what’s covered depends on the package purchased. Some plans only cover the power train: the mechanical components of the engine, transmission, and rear-end. Others cover the power train plus some electrical components. Still others cover electrical, advanced electrical, and computer components. Some only cover what’s listed in the contract. This is called a “Stated” or “Named” contract. This means that if it’s not stated, it’s not covered. Some cover bumper-to-bumper, similar to a manufacturer warranty, except trim pieces, upholstery, exterior components, cosmetic items, and a number of other exclusions.

Never before has the adage, “The devil’s in the details,” been so applicable.

Manufacturer Extended Plans: Extended service plans from the manufacturer are the best in terms of coverage, convenience, and quality. Coverage is similar to the warranty while the vehicle was under its original factory warranty—with similar exclusions stated above. The billing is direct, meaning you don’t have to pay out-of-pocket, except for a deductible, if applicable. Quality is great too, as an extended warranty from the manufacturer will only use factory parts. They also have money, so there’s less risk of bankruptcy.

The down side of manufacturer extended service plans is that they are not cheap. These plans are generally the most expensive, require low mileage standards, and necessitate servicing your vehicle at a dealer for coverage.

Dealership/Third Party Plans: Extended warranties from a dealership are actually from a third party insurer. These providers are “generally” reputable, but not always. However, if there is an issue (such as the warranty provider filing chapter 11, which is quite frequent in the extended service contract business), the dealer “may” step in to cover any repairs that would have been covered under the defunct plan. Also, claims are easier: billing is direct because the dealership has a working relationship with the provider, and there is usually agreement on price.

Some dealers set up their own “internal extended warranty,” which is honored by the selling dealer. This is rare, and should not be confused with a manufacturer warranty. Important: extended warranties are often passed off as “manufacturer” warranties. They’re not. This is a sales trick. Also be aware that there is a significant mark up, as the dealership is merely acting as the middle man. Lastly, extended warranty companies often go bankrupt without warning.

Third Party Plans: These plans are called third party plans because they are outside the responsibility of the manufacturer and the service center performing the repairs (unless there’s a working relationship with a repair shop as stated above).

There are hundreds of extended service contract companies. Some have good reputations, some don’t. Third party plans are frequently sold by used car dealers. You may also receive an official looking notification in the mail stating that your warranty is expiring, and directing you to call an 800 number ASAP. This is a marketing tactic by an independent warranty provider. Despite the “official” appearance of the postcard or envelope, it’s not from the manufacturer. Manufacturers do not send out reminders about warranty expirations.

Given the wide-variety of third party plans there are numerous red flags.

1) Claims: Extended warranty companies will be quick to tell you that filing claims is easy, and that the service center gets paid immediately via a credit card. Thus, there’s no out-of-pocket expense for you. However, the warranty company can’t dictate a service center’s policies. Some service centers will only accept payment from the repair customer. Thus the burden is on the repair customer to fill out the forms, contact their warranty company, and await reimbursement via check, which can take 2-8 weeks.

It is the service center’s responsibility to contact the extended warranty company to let them know what’s wrong with the vehicle and to check coverage. This process can take anywhere from 20 minutes to 20 days, sometimes more, depending on the degree of repairs and especially the amount. (See $1000 and Adjusters ahead)

Service centers and extended warranty companies frequently battle over the “fair” price of repairs. Many repair shops no longer negotiate, and just state the price, leaving the contract holder (i.e., the service customer) responsible for the difference.

2) Rentals: Rental coverage is a great benefit. However, there are fixed rates and time limits. In other words, the warranty company is not going to pay to have you drive a Mercedes-Benz, even if you drive a Benz. Rental allowances range from $25 to $35 per day. Also, rental coverage is based on the number of hours it takes to repair the vehicle, NOT how long your car has been at the shop.

3) $1000 and Adjusters: Repairs that approach $1000, or that require a significant amount of work, will be cause for the warranty company to call in an adjuster to confirm the diagnosis. This will delay the repairs by a minimum of 24-48 hours. It may cost you additional money when an adjuster is involved. You may be charged to have your vehicle pulled back into the shop for inspection, as well as for the time spent with the adjuster.

4) Tear-down Charges: In many cases, an extended warranty company will require that a particular component be taken apart for inspection to determine if the repair is indeed needed and covered. This puts the service customer in a very awkward position. The customer will have to authorize potentially hundreds of dollars of tear-down expense in the hopes that the repair is covered. If it’s not, the customer is out the hundreds in tear-down PLUS the actual repair. This does happen!

Common Myths:

1) “Extended warranties cover maintenance services and brake work.”

No. Extended warranty plans do not cover maintenance or wearable items. Brake pads and rotors are wearable parts. Maintenance such as coolant, brake and transmission flushes, tune-ups, services, oil changes, bulbs, wipers, and more are not covered.

2) “They told me it’s bumper-to-bumper, so it covers everything right?”

Wrong. Not even a factory warranty covers everything. When pitching the sale for the extended warranty, one is very often lead to believe that he or she will have nothing to worry about. This is just not true on so many levels. For example, if your bumper falls off it’s not covered.

3) “I don’t have to pay anything, right?”

Wrong. Despite the claims of 100% coverage, there are many factors involved. The labor rates, labor hours, diagnostic times, parts prices, and machine work are just a few items that often conflict with a service center’s policies. Some extended contracts only pay a maximum of $55 per hour, and only allow one half hour for diagnostic time. This is generally unacceptable to the service center, as labor rates have skyrocketed to over $100 per hour at many dealerships, and average $75 at local shops. Moreover, with the complexity of today’s vehicles, diagnostic time is at a premium. The customer pays the difference.

4) “If I have an expensive problem, I can just purchase an extended service contract.”

It’s unethical, but it’s an option many attempt. However, most service contracts have a minimum time requirement before the first claim can be filed: usually three months. Also, many contracts require that your vehicle be inspected by a service center to check for pre-existing conditions—just like life insurance.

5) “My contract lasts up to 100,000 miles.”

Only if the time limit doesn’t run out first. All extended warranty plans have a time limit. For example, a typical contract will state that the vehicle is covered for two years or 100,000 miles, which ever comes first. During the sales pitch, however, the emphasis will be on the 100,000 miles, not the time.

6) “If my car breaks, it gets fixed like new.” Actually, depending on the contract, an extended warranty company can insist on installing remanufactured or even used parts.

Items commonly not covered by extended warranties: • Any component with a pre-existing condition • Any component related to a Technical Service Bulletin (TSB) • Many components that has been updated by the manufacturer • Extra components necessary “due to manufacturer updates” to complete the repair • Trim pieces: molding, cup holders, dashboard, console, body parts, glass • Many accessories: radios, DVD players, TVs • Many expensive electronics: climate control units, navigation assemblies

Service contract positives: Some service contracts are transferable, and may thus increase the resale value of a vehicle. Many come with trip interruption reimbursement, towing and 24-hour road side. Some plans can also be financed, or have E-Z Pay Plans. Others offer a money-back guarantee.

What should you do? You’ll get lots of advice about doing the research, comparing plans, and reading the fine print. This is all sound advice. But what about doing the math?

Let’s say a plan costs $2500 for 2 years or 100,000 miles, whichever comes first. To break even you’ll need a minimum of $1250 per year in covered repairs, excluding regular maintenance. Remember covered is the vital word here.

Another way to break it down is to anticipate having to pay $104.17 per month over the next two years in “covered” repairs. Do you want to take that bet?

What could happen? You could double your money or more in repair work. You could conceivably get a new engine and transmission (or used ones anyway). You could also easily spend $2500 for a service contract, and still have to pay another $2500 for repairs, which for a variety of reasons, were not covered under your plan. Now you’re out $5000.

Alternatively, you could keep the initial $2500. In many ways all an extended warranty does is prepay for repairs. You could stick the money in the bank and collect interest. Then you could withdraw the money for repairs as needed.

Another consideration that’s rarely discussed is the cause of the problems. Many car repairs problems are the result of wear and tear, neglected maintenance, physical damage, or acts of God—such as flood damage. None of this is covered. The gamble only covers failed components.

If the vehicle you’re driving does cost $2500 to $4500 in repairs due to outright failed components, is it a vehicle you even want to consider keeping? A vehicle that needs this kind of repair work due to mechanical, electrical, or computer failures may not be worth it. The $2500-$4500 would be better spent on an upgrade to a quality vehicle rather than insuring a lemon.

There’s no question that auto repair is expensive, and even quality cars break from time to time. But do they breakdown to the tune of $2500-$4500? That’s a hefty bet on a “possibility.”

Terence O’Hara from the Washington Post makes an excellent assessment about extended warranties in general. He writes:

…extended warranties play upon a basic human trait to avoid loss, even if it means sacrificing a possible future gain…the gain is all the other things of value that a consumer could buy with the money that was spent on a warranty

What’s the best plan? Money in your bank account!

The level of auto insurance that someone might need depends on the financial circumstances of the individual concerned and the cost of the car involved. Take for example someone who has a brand new $50,000 motor, it would be sheer folly to do anything other than take out one of the best auto insurance policies available and the cost of the auto insurance is likely to be insignificant when considering the overall annual cost of the car.

However, if you have a car that is nearing the end of its life, have a low cost car and previous claims or are a new driver then the cost of the auto insurance versus the benefits you might receive need to be given greater consideration. Comprehensive auto insurance premiums are likely to be disproportionately high for older vehicles, new drivers with low cost autos or drivers with accident history.

Whatever your circumstances you are legally obliged to take out a basic level of auto insurance that will cover you against third party claims and given the level of damages awarded seem to be increasing out of control then my advice would be to get the best possible third party liability auto insurance cover that you can afford.

The legal requirements for auto insurance does vary from state to state so you�ll need to clarify the level of cover you require when taking out auto insurance but only insuring to the legal minimum isn�t necessarily the best choice to make.

If you have a lot of money sunk into your car or your auto is leased then you really should take out comprehensive and collision auto insurance to cover you for things such as fire, theft, acts of god or collisions that are your own fault.

If you live in an area where cars are regularly vandalised you might want to consider comprehensive auto insurance when perhaps you wouldn�t have otherwise done so. The cost of your auto insurance will generally be higher if you live in such an area but that is something you have to weigh up against the cost of repair.

Personal Injury Protection is something that everyone should consider as this element of your auto insurance will cover medical costs associated.

Despite legal requirements some people still persist in driving around without auto insurance leaving the others with a need to insure against the uninsured motorist. Uninsured auto insurance will cover you for damages in the event of an accident with an uninsured motorist. Again, insurance that everyone should give serious consideration to given an auto accident could leave you unable to work or your family without any means to earn.

If you want a more comprehensive auto insurance policy but want to limit the cost then you could look at opting for a higher level of deductibles. Deductibles are the amount you would have to pay before you could make a claim against your auto insurance policy and generally, the higher level you agree to the lower your auto insurance premiums.

People have different opinions when it comes to leasing a vehicle and buying a vehicle, but here’s the basic gist of it: buying a vehicle differs from leasing a vehicle in that buying a vehicle requires you to pay for the entire vehicle, whereas leasing a vehicle requires you to pay for the amount of the vehicle you “use up” during a set period of time. Simply put, once the time period is up the person leasing the vehicle may decide to buy the vehicle, or move on.

There’s no difference, however, in purchasing automotive insurance for bought and leased vehicles. If you lease a vehicle and finance through the dealer or a bank, you’re still required to purchase automotive insurance for your leased vehicle. Just because you’re only paying for the portion of the vehicle that you use during a specific time period doesn’t mean you aren’t responsible for repairing the damages to the leased vehicle, or the damages your leased vehicle may inflict upon another person’s vehicle, or another person.

For example, if your leased vehicle is involved in an accident that is your fault and involves another party, you’re responsible for paying to repair not only the damages to your leased vehicle, but the damages to the other party’s vehicle, as well. At the same time, if your leased vehicle is involved in an accident but no other party is involved, you’re responsible for repairs to your leased vehicle if the accident was your fault.

Too, your leased vehicle may be involved in an accident that wasn’t your fault with a party that doesn’t have automotive insurance. By having automotive insurance for your leased vehicle, you are safeguarding yourself against drivers who don’t have automotive insurance.

The purpose of automotive insurance is universal. Regardless of whether you buy or lease your vehicle, and regardless of your reasons for buying or leasing, you must still purchase automotive insurance.

Most of us realize that used cars are usually less expensive than new cars. But we often still shy away from that kind of bargain because we may be intimidated by just what we may be buying. Could it be a great deal, or a lemon? And how do you know? Well, there actually is a way to work through the process of buying a great used car if you follow a few simple steps and stick to your guns. Would it surprise you that your first stop should be your credit union? Well, it should be.

You need to know how much car you can afford, and what the terms will be before you go car shopping. When you talk to your credit union, make sure you understand the difference in rates, if any, between various car model years. Newer car loans are generally lower than the interest rates charged for older models. Why? The lender assumes more risk with an older vehicle, and they pass some of that risk on to you in the form of a slightly higher rate. Does that mean you should only buy newer models? Not necessarily. That newer car will probably cost more, so even at a lower interest rate your payments could be higher than the payments on a less expensive older model at a slightly higher interest rate. Of course, your individual credit-worthiness will impact the loan rate you are quoted, as with any other financial product. Be sure you ask, too, if the credit union is sponsoring a used car sale any time soon. These events can give you a great place to comparison shop for dozens and dozens of vehicles. The prices are usually marked on (or in) the cars, and may be purported to be “non-negotiable.” But ask anyway. You may be able to negotiate a lower price, so why not check it out?

One more thing to check about car models you may be interested in is car insurance. It may be worth a call to your insurance agent to get a sense of what differences you might see in car insurance rates for different types of vehicles and models. Should you buy that Mustang or Taurus? It’s not really a surprise that a very powerful engine might be more expensive to insure, is it? So check that out before you buy. You may also want to ask your agent what differences in rates you might see depending on who is driving the car. If your 17 year old son will be one of the drivers, find out what that means to your insurance costs on the vehicle models you are considering.

What’s next? You are ready to start your additional homework. Sounds a little boring? Think about this. The salesman you are buying a car from has sold hundreds of them—or even thousands. How many have you bought? It makes some sense for you to spend a little time in research to even the playing field a little. And if you buy from a private owner, you still need to do your homework to know what little problems to look for that the owner himself may not even be aware of.

Fortunately, there are some disclosure regulations on your side. Some states require safety inspections and require that the results of those inspections be made available to prospective purchasers. Check with your state’s transportation department web site or your state secretary of state’s office or justice department as places to start looking for what help your state’s regulations may provide you. The Federal Trade Commission also has a Used-Car regulation which says that dealers must disclose whether or not used cars have any unexpired warranty protection. These same agencies can provide you information about any lemon laws which may exist in your state.

When you are looking for your car, you will generally find that similar vehicles are more expensive from dealers than from private parties. There are several reasons for this. Dealers often recondition cars. Some offer warranties. And consumers may actually have more recourse if something does go wrong with a purchase from a dealer than from a private party. Consider, also, your own knowledge about cars. If you are a shade-tree mechanic in your own right, you may be able to evaluate a car with more confidence than someone without that knowledge. If that’s your situation, it may be quite logical for you to gravitate toward purchase from a private party.

Most of us have some idea of what kinds of vehicles appeal to us. Make your short list, and hit the computer. You have a better resource than ever before to do some basic research about the models you are considering. One of the most popular such sites is http://www.edmunds.com/, but there are many others including Consumer Reports.

Let’s assume you have identified the vehicle of your dreams, you know what it will cost to insure, and you have a good idea of how to check it out. These sites can also give you vehicle reports on specific individual vehicles when you input the vehicle’s VIN number. The VIN number (Vehicle Identification Number) is usually visible just at the base of the windshield on the driver’s side. A vehicle history report on each candidate is absolutely critical when you have narrowed your choice to 3 or 4 cars. You may also want to circle back to your credit union again to find the ideal vehicle. Many large credit unions have buying services where they will take the information you provide about what vehicle you want and they will search for it for you. Then you can input the VIN and make sure the car is worth pursuing before you even go look at it. Make sure you know what, if any, fees such buying services will cost you.

Another source for your vehicle could be from companies such as Hertz and Avis which sell “program cars,” or cars which have come out of their rental fleets. They often have low mileage and are far less expensive than new cars, but even these vehicles should be thoroughly researched if you are considering purchasing one.

Would you believe that you may want to make one more pass at your credit union once you’ve found the perfect car? Suppose you’ve identified one at a local dealer, you are convinced you have their best price, and you’ve checked out the VIN number and talked to your insurance agent. And you know how much your credit union will lend you at what terms. But you don’t know what they will lend you on THIS car. A great way to confirm that “the price is right” is to ask your credit union exactly what they will lend on the car you want to buy. If it’s considerably less than what the asking price is, you may not have such a good deal after all.

Sound like a lot of work? It’s really not when you consider that our vehicles are going to transport us and our loved ones at 65 miles per hour (or more!) for what we hope is a good long time. Do the work up front to find a safe, reliable, affordable vehicle for your family. It’s a great use of your time!

As summer draws to a close, around 10,000 UK bikers start to think about laying up their motor bikes for the winter months. >From the end of October through until Easter, the thought of motor biking is not so appealing and there is little point in taxing and insuring the bike. Bikes are winterised and stored away at the back of the garage awaiting the better weather. Sadly, thieves are aware of this and so some 600 bikes are stolen every month.

Obviously if you have totally cancelled your policy you will be unable to claim for this theft. You can, however, reduce the cover to a minimum for fire and theft and this is worth considering.

If you�re more used to insuring cars than motor bikes, you�ll find some of the features of bike insurance very odd. For instance, it�s not possible to accumulate bonuses over time, as with a car. Occasionally you may find an insurer who will give you some discount if you don�t claim for a certain period with the same insurer, but this is not the norm.

There are various policies. Specified Bike Policy, Specified Rider Policy, Comprehensive and Third Party Insurance. With a specified bike policy you are covering the bike and not the rider. This means you could insure a number of riders on the same bike.

A specified rider policy covers the rider, but not the bike. This means the rider is covered on any motor bike up to the size specified on the policy.

Comprehensive and third party insurance are more familiar terms. Comprehensive is the most expensive. Apart from paying for repairs to the bike in the case of accidental damage, it may offer some extras such as breakdown cover. In the event of a claim, you will only pay the excess as stated on the policy. With third party you simply buy the minimum legal insurance. This means you are covered for any property you may damage or people you might injure. You would not be reimbursed for your bike or anything else and an excess would still be payable. Third party is the cheapest form of insurance.

Younger riders will be charged higher premiums for their policies due to their inexperience and the increased risk of motor cycling. There is a frighteningly high accident rate and statistics tell us they are much more likely to be involved in an accident than more mature riders. Damage caused to themselves is often costly and lifelong.

The more hours spent on the road, the higher the risk and riders using their bikes to travel from one location to another as far as their work is involved will be likely to be charged higher premiums. Claims made in recent years for driving-related accidents will have an adverse effect on your premium too.

Other factors that will influence the premium will be the power and make of the bike. There are some very expensive bikes around and obviously this will mean a higher premium will be charged. If you have any penalties for speeding or dangerous driving your premium will rise and if you were to be disqualified for a length of time, insurance would be extremely expensive when your licence was re-instated.

To try and get the cost of premiums down, consider security devices such as immobilisers, alarms and steering locks. It may also be possible to get discounts for any training courses you have completed.

Be completely honest with your insurance company. Failure to disclose something which the company later discovers can invalidate your insurance. Not only would you not receive payment for any claim, but you could be prosecuted for driving without insurance.

An internet broker will be able to offer you plenty of advice when it comes to choosing an insurer. They�ll find a choice of policies to suit your circumstances and their experience will be invaluable. There are internet-only deals and discounts which they�ll be able to offer too.

Keep insured and safe.

Statistics say that 10,000 bikers in the UK cancel their insurance policies over the winter months every year.

Many bike owners will lock away their two wheels but unfortunately, even when locked in a garage, their bikes remain at risk.

Thieves are quite aware that many motorbikes are stored in garages over the winter months and over 600 bikes are stolen every month.

If you have cancelled your policy and your bike is stolen you cannot make a valid claim. However, it should be possible to reduce the cover, save money and still maintain the essential minimum cover against fire and theft over the winter.

An annoying feature of existing motorbike insurance policies is that discount bonuses are not able to be accumulated over time. You may be able to get some form of discount should you remain claim free for a certain period with the same insurer, but this is a rare occurrence.

There are a few types of motorcycle insurance policy, Specified Rider Policy, Specified Bike Policy, Third Party Insurance and Comprehensive Insurance. A specified rider policy will specifically cover the rider and not the bike. The benefit of this policy is that it will allow you to ride any motorcycle up to a specified size.

A specified bike policy is directly the opposite and will only cover the motorbike and not the rider. This would be a suitable policy if you wish to insure a number of riders on the same bike.

Unfortunately for motorbike riders, particularly younger riders, they will have to pay higher premiums for their insurance policies due to the increased risk of their chosen method of transport.

Third Party is the legal minimum type of insurance and the cheapest. The ‘third party’ is any person you might injure or property you might damage. You will not be paid for anything else and you will still have to pay the excess.

Comprehensive Insurance is the most expensive and the one that pays for repairs to your motorcycle if it is damaged in an accident. It also means that if the accident was not your fault you do not need to wait for the other party’s insurance to come through as your insurance will pay anyway. However, you will have to pay the excess but you will get it back when the others party’s insurance reimburse your insurance company. These policies often include extras such as breakdown cover included.

Some of the key factors affecting premiums are age. Young motorcyclists have an alarmingly high accident rate and, according to statistics, are far more likely to be involved in an accident than more mature riders. The damage they can cause to themselves is very often costly and long lasting.

Occupation is also a deciding factor of premiums. Workers who spend many hours on the road travelling from one location to another will be subject to much higher premiums the more hours that are spent on the road the more likely accidents occur.

If you have made any claims in recent years for driving related accidents you should expect this to be reflected by a higher than average premium. Security devices such as immobilisers, alarms, steering locks and other security devices are only useful if they are activated. However their presence will result in a significantly lower premium, particularly in inner city areas.

As with any motor insurance, the more powerful the bike, the higher the premium is likely to be. The make of the bike may influence the premium also. Expensive bikes are also likely to attract higher premiums.

As with cars, most motorbikes will depreciate quite rapidly. In the event of a material damage claim, insurance companies will only pay the current market value of your bike. In these circumstances it may not be worth paying the additional premium for comprehensive cover over third party, fire and theft only.

If you get points on your license for speeding, dangerous driving etc your premium will go up, if you are disqualified for a period you will find insurance is very expensive when you get your license back.

You can sometimes get discounts because of the training you have done, passing an advanced test will usually get you a discount.

All of the above affect your premium, but it will also vary when the insurance companies are trying to balance their risks and you will usually find big differences in prices. Do your research though and don’t just go for the cheapest as sometimes, insurance company’s try to reduce premiums by reducing the cover.

Remember it is illegal to ride without insurance and always remain honest with insurance companies. If they were to discover that you have not told them something that they should have known, you may find that your insurance is invalid. Aside from the fact that they would not pay a claim, this could also leave you to prosecution for driving without insurance.

Learn the secrets today of what you need to know if you or someone in your family is involved in a car accident. Learn from the pros on what to look for when having your car repaired, what you are entitled to and how to handle a personal injury accident claim. Learn what the insurance companies don’t want you to know.

CarAccidentSecrets.com will help you with settling your own claims resulting from a car accident. Injured parties know their case better than anyone, so why should you have to explain your case to another party (the lawyer) just so that they can just repeat it to a claim adjuster at the insurance company ? You can talk to the adjuster directly and settle your claim by yourself. Insurance companies would rather settle a case with you than pay large court costs and additional lawyer’s fees.

[PRWEB Nov 30, 2005]