Why Wait to Save on Car Insurance?

Why Wait to Save on Car Insurance?

With car insurance, you don't have to wait for the new year to begin saving.

In today's economy, trimming your household budget might be one of your New Year's resolutions.

And you wouldn't be alone: According to a recent survey, 65 percent of people say they resolve to save money in 2009. Why? Not surprisingly, the majority (67 percent) say it's due to the unstable economy.

Why Wait to Save on Car Insurance?

Luckily, shopping around for car insurance is one way you can save big bucks. With this in mind, follow these six tips to help you manage your car insurance costs in the new year:

• Shop around. Rates can vary greatly from company to company, so shop around to find the best deal. Independent insurance agents represent more than one insurance company, so they can compare multiple policies and rates to find the one that's right for you. If you're a do-it-yourselfer, Web sites like Progressive.com will help you compare its rates with those from other companies. And switching can pay off. For instance, people who switched to Progressive last year saved more than $350 on their annual premium.
• Check to make sure your policy is up to date. If you've moved, gotten married or if it has been at least three years since your last driving violation, check with your insurance company. You may be eligible for lower rates.
• Know before you buy. Before you buy a new car, research what it will cost to insure. Generally, smaller cars with lower horsepower are less expensive to insure.
• Check coverages. Owners of older or inexpensive cars should consider dropping Comprehensive and Collision coverages. Doing that can save hundreds of dollars each year. Also, many auto insurers give you the option to add rental coverage to your policy, which pays for a rental car while your vehicle is being repaired following an accident. While conditions and costs vary from company to company, it may be unnecessary if you can find other transportation. The same goes for options like Roadside Assistance coverage; if you have AAA or a lease agreement, you likely don't need it on your auto policy.
• Raise your deductible. According to the Insurance Information Institute, raising your deductible to $500 could reduce your Collision and Comprehensive costs by 15 to 30 percent.
• Check for available discounts. Ask your carrier if it offers reduced premiums for certain car features like anti-lock brakes. You might also be eligible for discounts if you pay in full, are a loyal customer, sign up for paperless billing, list another car on your policy and more.

News

Esurance Ranked #1
Auto Insurance Web Site
for Consumer Experience
Change Sciences - Oct. 2008

Once again, Esurance has received top honors from
Change Sciences, a leading Web usability analysis firm. According to a report released by the group in October 2008, Esurance had the most usable, informative, and persuasive rate quote process. Of the 19 leading auto insurance companies evaluated, Esurance's Web site required visitors to enter the least amount of information to get an accurate quote, and also led the pack when it came to the ability to purchase an auto insurance policy online

Loan/Lease Payoff Coverage FAQs

How do I know if I need Loan/Lease Payoff coverage?

Compare what you owe on your vehicle (available from your lender or lessor) to the actual cash value of your vehicle. If the amount you still owe is higher than the actual cash value, the difference might not be covered by your insurance.

How can I determine the actual cash value of my vehicle?

A vehicle's actual cash value is determined by evaluating a number of factors, including the vehicle's age and condition prior to the loss, as well as any prior damage, improvements, or special equipment. Do some research in your area to see the sales price of vehicles similar to yours. You can also access edmunds.com or yahoo.com to get a general idea of your vehicle's actual cash value.

Am I eligible for Loan/Lease Payoff coverage from Progressive?

If you are a new or existing Progressive customer, you can purchase Loan/Lease Payoff coverage for vehicles that you lease or for which you have an unpaid loan. This coverage is only available if your loan or lease is held by a financial institution, not an individual. You must have Comprehensive and Collision coverage, as well.

How much will Loan/Lease Payoff coverage cost?

The actual premium will vary according to the type of vehicle insured.

Is there a dollar limit on the payoff?

After your Comprehensive coverage or your Collision coverage has paid you the actual cash value for your vehicle, less your deductible, your Loan/Lease Payoff coverage will pay the difference between the actual cash value and any additional amount you owe under the terms of your vehicle lease or loan (excepting fees and charges). However, the payment made under this coverage may not exceed 25 percent of the actual cash value.

How do I know when to drop this coverage?

If you purchase Loan/Lease Payoff coverage, you will receive an annual notice beginning three years after you purchase your policy. The notice informs you that you may no longer need the coverage, which you can drop from your policy.

Why wouldn't my insurance company just pay off the loan or lease?

Insurance companies do not ordinarily pay more than the actual cash value of the vehicle. If you owe more on your vehicle than the actual cash value, Loan/Lease Payoff coverage would provide you with protection for the difference.

Can I get this coverage from my dealer or lender?

Some dealers and lenders offer Loan/Lease Payoff coverage, but coverage through Progressive is billed as part of your total insurance premium. The claims process would be easier if you add this coverage to your existing policy because you would only have to deal with one company and one claims representative in the event of a loss.

Does Progressive offer Loan/Lease Payoff coverage in my state?

This coverage is offered in all states except New York and North Carolina. Progressive also offers Loan/Lease Payoff coverage in Washington, D.C.

The American Lawyer Awards

The American Lawyer Awards

Lifetime Achievement Awards
The American Lawyer celebrates the distinguished careers of individuals whose world-class practice and commitment to public service make them an inspiration to the rest of the legal profession.

A-List Awards
Each year 20 firms are named whose economic, pro bono, workplace satisfaction and diversity performance set them above the rest.

Corporate Counsel Best Legal Department
Corporate Counsel magazine names the best in-house law department and finalists, based not only on the achievements of the general counsel, but on an in-depth look at the entire corporate legal department.

Litigation Awards
The American Lawyer The American Lawyer celebrates the Litigation Department of the Year, as named in the January 2008 issue of The American Lawyer. Am Law 200 firms were invited to compete for the overall title as well as laurels in one of three specialties: Intellectual Property, Labor and Employment, and Product Liability.

Create your Watch List
on martindale.com

As a registered user of martindale.com you can add lawyers and law firms to your watch list. Securely add comments, compare lawyers and law firms in your watch list, and access these profiles with one click from your martindale.com homepage.

Q & A

Today's Q & A

Criminal Law Can the Second Chance Act Help My Dying Grandfather Get Early Release? Jeralyn Merritt Q. My Grandfather was convicted and has served 21 years of his sentence. He is dying of cancer and our family would like him to be able to live the rest of his life outside of prison. We were wondering if the second chance law would apply to him and how we would go about getting him clemency. -- Anonymous A. In March, Congress passed the Second Chance Act. President Bush signed it into law a few weeks ago. It's purpose is to help prisoners reintegrate into society when they complete their prison sentences, and to reduce recidivism. About 700,000 state and federal prisoners are released every year. The Act authorizes funds to be spent on programs such as education and drug treatment inside prison. Other programs will provide assistance with housing and employment after release. There are also programs aimed at strengthening family and community ties. One portion of the bill pertains to early release of federal elderly prisoners. It is a limited pilot program called the Elderly and Family Reunification for Certain Nonviolent Offenders. It will be in place at only one federal prison. In order to qualify for it, the prisoner must be at least 65 years old and serving a sentence of less than life in prison for a nonviolent offense that also is not a sex crime. He or she has to have served more than 10 years, or 75% of their original sentence, whichever is greater. Sound daunting? There's more. The prisoner can't have a past conviction for a state or federal violent crime or sex offense. And, the prisoner must be determined by the Bureau of Prisons not to have a history of violence or sexual misconduct even if conviction free. The prisoner must also have a record free of escape attempts. If the prisoner meets these qualifications, the Bureau of Prisons can release him or her to home detention, provided it believes that such release is not likely to endanger any person or the community. The program is likely to be in place around October, 2009 and last through 2010. If your grandfather is already ill, your better bet would be to contact a post-conviction lawyer in your state who can advise you if your grandfather is eligible for release under some other law or regulation. -- Jeralyn Merritt

Real Estate Disclosure Of Defects In Condo Purchase Michael T. Sawyier Q. My husband and I purchased our condo in May 2007. At that time, there were no scheduled special assessments on the property. However in November 2007, we learned that the building was to undergo a $1MM+ special assessment, to be divided amongst all the owners of the property. Our portion of the special assessment is to be between $12-18K. This special assessment came about as a result of an engineering report commissioned in 2005 to evaluate the state of the building. This report was commissioned for litigation the building's owners were involved in against the developer. While the results of the report were never divulged publicly to all the owners, we learned that the person who sold us our condo was the person who commissioned the report. This, of course, means that he was fully aware that the results of the report stated the building had structural defects in it. We can prove his knowledge of the defects by obtaining a copy of the engineering report which was addressed directly to him. He never disclosed this information to us during the sale of the condo. Additionally, the owner who sold the condo to us was also previously on the condo association's board and was the listing agent of the property. My question: Do we have any legal recourse here since we can prove that the owner did not disclose defects in the building that he had knowledge of? Keep in mind that these are defects to the overall building structure, NOT to our condo alone. -- Anonymous A. Illinois' Residential Real Property Disclosure Act is designed to protect buyers of residential real property, including condominium property, by requiring that sellers disclose certain known material defects in the property. Under the Act, a material defect is defined as a condition that would have a substantial adverse effect on the value of the property or that would significantly impair the health or safety of future occupants of the residential real property, unless the seller believes the condition has been corrected. The Act does not require the seller of condominium unit to disclose defects in the common elements of a condominium. However, in the case that you describe, the seller's failure to disclose these known defects that would lead to the special assessment may have violated a representation or warranty in the sales contract itself that the seller did not know of any such defects. In addition, a number of reported Illinois decisions have held that mere silence by a seller with knowledge of such material "latent" defects, when they are not know to or readily discoverable by a buyer, can constitute fraud and are actionable in court. -- Michael T. Sawyier