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Insurance Coverage for the Oldies but Goodies

Written by Michele Wilmonen. Posted in Research Last Updated: 06/29/2016

Classic and antique cars can qualify for different insurance than regular everyday vehicles.

Older cars come in many different conditions. Some owners restore them to better-than-new condition and others look like they need to be stored in a Ziploc bag so they don’t lose anymore parts when they fall off. Other old cars fall in-between the two categories and are just there. The condition of your vehicle will determine exactly what type of insurance is best for you.

Classic Car and Antique Insurance Coverage

Classic cars actually have a special old car insurance of their own. This is due to the age and that some of these cars have been modified or restored to conditions that are better than when they were new. Most classic cars insurance coverages are on a stated value. A stated value is when the owner tells the insurance company the value of the car rather than the insurance company telling the owner.

There are also restrictions placed by the insurance company as to the use and the storage of the vehicle by the owner. If the owner does not comply they no longer qualify for this special category of old car insurance. They will instead have to get insurance coverage for their classic car under a normal car insurance policy which may not protect their car as well as the special classic old car insurance.

Insurance Coverage for Old, But Not Classic or Antique

Insurance coverage for those cars that are not classics, but aren’t junkers yet either depends on you and your financial situation. If your older model car is in good shape and is still retaining a good value, you may want to consider keeping comprehensive and collision coverage on it. There is no reason to go without this coverage if it will benefit you in the event of an accident.

However, keep in mind that your car insurance company is only going to pay out so much on your old car insurance. If the amount that you are paying exceeds the amount that they would pay out if your vehicle was a total loss, drop the comprehensive and collision coverage from your old car insurance. Just like with the junker, put that money in a bank account. Only use this money when you need to pay for damage to your old car or need to buy a new car.

There is just no reason to keep handing the insurance company money for old car insurance if you would be better off financially with paying for any damages yourself.

Earned Insurance Premium

Written by Michele Wilmonen. Posted in Ask An Insurance Question Last Updated: 06/29/2016

Question: I canceled my insurance with thr general they told me I was going to get a refund than days later I get an email tjat I owe them I cancel 5/26/16 last payment was 5/2/16 they say I have a balance of 633 but I don’t understand why they told me when I was canceling I was getting a refund of 200 and some I still don’t get why where dis they get the 633 from.

Answer: You need to contact them back and ask them how they got this number and also to make sure they have your cancellation date correct.  Now, with your last payment being made on 5/2 and a cancellation date of 5/26, you could still have earned premium. However, I don’t know your billing cycle or your premium to be able to tell you.

Earned premium is the insurance coverage that the insurance company provided for you, but that you had not paid for yet.

Finding Gap Insurance

Written by Michele Wilmonen. Posted in Ask An Insurance Question Last Updated: 06/29/2016

Question: Hi I have Chevy Malibu 2012 I owe 14000 but car worth 11000 my gieco insurance told me I don’t have gap my lean holder capital one told me is better to find insurance offers gap i can’t find one know do you have any advice thanks.

Answer: Getting insurance quotes from other insurance companies for Gap insurance is how you are going to find Gap insurance from an insurance company. The only thing I would advise you though, is that your vehicle is no longer a new car and many insurance companies do not offer Gap insurance on anything but new vehicles. However, some do have loan coverage that works like Gap that you can ask about.

Also, your lien holder is right about it being better to get Gap insurance through an insurance company as it is cheaper that way.

Change of Address and Your Insurance Rate

Written by Michele Wilmonen. Posted in Ask An Insurance Question Last Updated: 06/29/2016

Question: Why does my insurance rate go up $21 dollars when I just change my address and also my email?

Answer: Part of what makes up your insurance rate is where you live.  Insurance companies rate on the safety of a neighborhood, the likelihood of a claim in that neighborhood, as well as other factors.  Your insurance rate went up because where you moved to has higher rating factors than where you used to live.  Your email address has no affect on your insurance rate.

Raised Insurance Rates?

Written by Michele Wilmonen. Posted in Ask An Insurance Question Last Updated: 06/28/2016

Question: I live in Montana and have Geico. I’m 46 with a spotless record and great credit history, because I know that matters. Newer Harley lost traction around a corner, only doing 10-15 mph. No ticket, no other vehicles involved, just slid out on loose gravel. Estimate for damages around $1800. Deductible $500. What do you think? Raised insurance rates?

Answer: Most likely not going to see raised insurance rate.  It’s under $5,000 and your driving record is clean and you have a good credit score.  But, you just never know if you will have raised insurance rates or not until you get your renewal.

Car Insurance Guidebook Unravels the Car Insurance Mystery

Unless you work in the car insurance industry, the topic is probably a mystery to you. The words deductible, comprehensive, collision, liability, premium, loss of use and bodily injury are all gibberish when they reach your ears.

Unfortunately, insurance is something that you are required to have by law if you want to drive. Because of how confusing it is many people go around in almost an insurance daze while they get car insurance quotes from the auto insurance companies that they have heard of. In reality, they are completely lost as to what they are actually buying.

Instead of looking at what each insurance company offers in the terms of protection for both themselves and their car, they are instead looking for cheap car insurance. Finding the cheapest car insurance coverage makes having to buy the required product all that much less painful, but misses the whole point of having insurance.

Learning about insurance through your insurance agent or websites like Car Insurance Guidebook will give you the upper hand when you looking for car insurance. You can take your knowledge and not only find the best price for insurance, you can use it to find really great insurance to protect you and your assets. Then you aren’t stuck settling for just average car insurance that can hurt you financially if you ever need it because there isn’t enough protection.

For example, when looking for insurance the car insurance rates are just the first of many factors that need to be taken into account when you are shopping around for car insurance. You also need to take into account the type of vehicle that you are driving. Many people don’t know this.

Are you driving around a vehicle that is a new sedan and can be protected under any blanket insurance policy? Or do you have an old car that you fixed up that needs special protection and could be better covered under classic car insurance?

Don’t just assume that when you compare car insurance that it will be a one-size-fits-all policy. This is where the insurance knowledge will come in handy; you will know what you need to protect yourself and your vehicle.

You will understand what your insurance agent is talking about when they use insurance terms and you will actually be able to make an informed decision. This is much better for you instead of the “nod and smile” approach people take in their insurance agent’s office.

Also just like your life changes your insurance needs will change. This year you may just need to learn about the best deductible to have. Next year you may need to educate yourself on car insurance for young drivers. As the years pass, motorcycle insurance may be something you will need to know.

Many wise people say that you never stop learning, so take their advice and educate yourself on the insurance that you spend a lot of money on and can’t get away with not having.