Smart Auto Insurance Blog

I found an article on NASDAQ that gives six good tips to keep in mind when looking for an auto insurance policy.  In “You might have less car insurance than you think,” Barbara Marquard says that some of the coverage you carry probably has exclusions and limits of which you are unaware.  It’s a good idea to keep these six things in mind not only when shopping for auto insurance quotes, but also check with your current auto insurance company, such as American Commerce, and see if any of these limits apply to your policy.  That way you can make changes before it is too late and you have to file a claim.  A consumer analyst recommends reading through your car insurance policy cover to cover.  While you may have more interesting reading materials in mind, this can save you quite a bit of hassle when filing a claim.

Some insurance companies lower your liability coverage to state minimum levels if a driver who isn’t on your policy uses your car.  Many people carry 100/300/50 liability coverage, but state minimums are much less than that coverage.  If someone uses your car and gets into an accident, you might be covered for far less than the 100/300/50 that you are paying for in your premiums.  Underinsured motorist coverage is important when you get into an accident with someone who is at fault and only carries state minimum coverage.  But when it comes time for your underinsured motorist coverage to kick in, car insurance companies deduct anything paid by the underinsured motorist’s coverage from what they owe you.  For example, if your medical bills are $50,000 and you were paid $25,000 by the other driver’s insurance, your insurance company will deduct that $25,000 from the $25,000 they owe you.  Therefore, you wouldn’t get anything for your underinsured motorist coverage!

The majority of states have a law that allows auto insurance companies not to pay your medical bills if you were under the influence of drugs or alcohol at the time of your car accident.  If someone without a driver’s license crashes your car while driving it, some insurance policies will not cover any damage in the case of an accident.  A lot of policies do not include coverage when you are using your vehicle for any kind of business.  This includes pizza delivery, newspaper delivery and all other types of business.  If you are using your vehicle for any kind of business driving, make sure to compare auto insurance policies so that you include coverage while you are working.  There are also some restrictions related to car theft.  If there is no sign of forced entry, maybe because you didn’t lock your doors, many auto insurance companies will not pay out.  Also, if you have added things to your car that are not standard, like a new stereo system, some companies don’t cover those additions.

You may be surprised by some of the exclusions and limits related to your car insurance policy.  Check with your insurer and shop for new policies with these six tips in mind.

American Commerce Insurance, which offers auto insurance, has received an A+ rating from the rating agency Satndard & Poor.  According to the press release on the American Commerce website, the financial strength rating from increased from an A on MAPFRE USA’s subsidiaries - Commerce and Citation - and the outlook is promising.  They consider the companies to be strategically important and because of this their credit rating has been raised from BBB to BBB+.

AM Best also continues to rate MAPFRE companies as A+ Superior.  These high rating are truly key in the success of companies such as American Commerce.  Standard & Poor’s report says that the decision reflects their capitalization and states that their future is very strong.  The rating agency also says in their report that MAPFRE USA continues to have a strong competitive position in Massachusetts and they have a strong market presences in auto insurance specifically.  They carry about 29% of the personal auto insurance market and about 12% of commercial auto insurance products.

This report is a huge success for the company.  American Commerce and MAPFRE companies pride themselves on offering superior products and top notch customer service.  With their solid book of business, this continues to be the case.  The report also highlights the strength of their underwriting discipline and the strong management behaviors.

Written by Sara Smart

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Most car insurance companies, including Progressive and American Commerce, have their own calculation for determining car insurance quotes.  You may feel like the rate you end up paying is out of your control but that isn’t necessarily the case.  There are numerous factors insurers use that are within your control and knowing what they are can help you save money.

The biggest factor is often driving record, and although you cannot do anything about the past, you can control your future driving habits and wait until previous driving violations fall of your records, which they eventually do.  You can have a clean slate with a little patience and careful driving practices.  Another big one these days is credit rating.  Again, the past is the past, but derogatory marks fall off your file in about 7 years, and focusing on paying your bills on time and keeping your debt levels down will pay off in the long run.

Of course what type of car you drive is going to have a huge impact on your car insurance quotes.  In general, the more expensive the car the higher your quotes will be.  Take a serious look at how big of a car you need, and how important luxury really is considering the overall costs.  Not only will that actual car cost more money, but maintenance and insurance will be higher.  The extra money can add up to a lot over the years.

And make sure you are shopping around for the best rate.  Just because one car insurance company gives you a hefty price, doesn’t mean they all will.  Get at least 3-4 quotes, if not more, and compare any trends you may see.  You’ll also want to make sure your coverage is sufficient and meets your needs.

American Commerce Insurance offers a wide variety of insurance products including motorcycle, home, renters and auto insurance.  Most people carry different types of insurance policies to protect them in the case of different kinds of accidents.  But there isn’t really an insurance product for everything that can go wrong and that’s where umbrella insurance comes in handy.  American Commerce offers umbrella insurance and does a great job of explaining how it works on their website.

Basically umbrella insurance is a catch-all insurance product.  It takes care of larger incidents that are highly unlikely, but still can devastate you.  Some examples of these incidents are your dog biting a neighbor, your child accidentally causing a fire, or a guest trips on your steps and goes on permanent disability.  All of these scenarios are relatively rare, but they do happen regularly across the nation.  Some of these incidences can cause million dollar lawsuits which most consumers are not prepared for emotionally or mentally.

Umbrella insurance can help reduce some of this stress.  It provides an extra layer of protection that can put your mind at ease.  You can add up to $5 million in extra liability protection for your homeowners, watercraft or auto insurance policies.  It’s generally a very low annual cost at just a few hundred dollars per year.  It’s a great protection to ensure you are protected in the case of lawsuits, attorney fees or garnishment of wages.

Auto insurance companies are constantly changing their policies to compete with other insurers and to ensure they are offering the most up-to-date benefits.  There are many optional benefits that insurance companies use as leverage such as road side assistance, online bill pay and even pet insurance.  American Commerce has numerous unique policies which helps them to stand out.

One of the more interesting policies offered by American Commerce is called the Peace of Mind Package.  This is an optional upgrade to any auto insurance policy that offers immediate accident forgiveness from day one, an automatic deductible credit and the ability to drop your deductible up to $500 for remaining accident free.  This really gives a huge incentive for good drivers to gravitate towards American Commerce.  It makes sense that unique benefits will attract more customers.

Another policy option they offer is called AutoMaster Plus.  This is available for upgrade on standard policies and it provides some extended benefits.  Some of these additional benefits include covering items such as computers, cell phones, child safety seats, pet injury, glass chip and personal belongings.  It can also include death benefits and even more.  Check with your auto insurance company to see how your benefits stack up.