Many people assume that the reason it is called gap insurance is because it covers the difference between what you owe on your car and what the insurance will pay for in the event that you get into an accident and the car is totaled.  The word “gap” actually stands for “guaranteed auto protection”.  If you don’t already have gap insurance with your current policy, it might be something to think about adding, especially if you have recently purchased a new vehicle or are currently leasing a vehicle. 

When you drive a car off the lot it automatically depreciates.  If you pay $25,000 for the vehicle and you have an accident one month later, you probably have only made one payment.  If the car is determined to be totaled, you are at a loss because the insurance company will only pay you the market value of your vehicle.  So if your $25,000 vehicle depreciated by 20%, you would only receive $20,000 from the insurance company.  That leaves $5000 left that is uncovered.  If you took out a loan to pay for the vehicle, you are still responsible to pay off the loan, which means you will be paying for a car that you can’t drive.  Gap coverage can help cover the difference, but it frequently excludes things like “rollover” balances from trade-ins and is often capped at a percentage of the vehicle value, so make sure you understand all of the terms and conditions. 

As you can see, gap insurance is essential when purchasing or leasing a new vehicle.  For more information about gap insurance and free quotes, please contact a representative at our California auto insurance(link to www.aisinsurance.com) agency.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.

A recent study has shown that because of the down economy, many people are letting their auto insurance lapse because they can’t afford the premiums.  This means that you are more likely to get into an accident with someone who cannot cover the damage of your vehicle, or worse yet, your medical expenses. 

According to the Insurance Research Council, California ranks 7th on the list of most uninsured drivers.  As much as 18% of people are not paying, and that percentage goes up in large urban areas.  That means that 1 in 5 drivers are on the road, uninsured, and that number is expected to rise.

What does that mean for you, the consumer?  It means that if you get into an accident, then there is a 1 in 5 chance that the other person involved will not have coverage to pay for the damage to your car or your medical bills.

Now more than ever, you need to make sure that you are protected in the event that you are in an accident with an uninsured motorist.  Review your policy to see what your coverage is.  If you don’t already have uninsured motorist or underinsured motorist UM/UIM coverage, now is a good time to look into it.

If you have any questions about insurance you can always contact us at www.aisinsurance.com or call 888-772-4247

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.

In a rough economy, people are often looking to cut costs and reduce spending in as many ways possible.  Not knowing what the future has in store can leave many people nervous about spending money.  This can force them to make choices they wouldn’t have to make under ordinary circumstances.  In some cases, people may be tempted to reduce their spending by lowering or even dropping their car insurance.  While it may seem like a good idea, here are some reasons why you should never completely discontinue your car insurance.

• It’s Illegal – All states have laws that require drivers to carry minimal insurance while operating vehicles. This is to ensure that medical bills and repairs to damaged vehicles can be covered by the at fault party. States also have different penalties to punish those caught driving without insurance.

• Your license may be suspended – If you are caught driving without insurance one penalty may include losing your license. While this might not seem like a big deal financially, you will have to consider how you will get to work. Who will drive you? On top of that, if you lose your license and decide to drive, there are even more serious penalties that could lead to added costs.

• You are responsible – If you do not have auto insurance and you get into an accident that causes damage or bodily injury, you will likely be responsible for the entire amount. If you do not have sufficient funds to pay, your assets including your house could be in jeopardy. The purpose of insurance is to aid you in paying for damages if an event such as this occurs. Damages are apt to be more expensive than paying the premium of a policy as well as the deductible.

If you are looking to save money you should contact your provider to see if there are ways in which you can reduce your costs.  Ask if you qualify for any discounts, or if you think you are a safe driver, you may want to raise your deductible to reduce your premium.  

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.

 One component of insurance policies should be Uninsured or Underinsured motorist coverage (UM/UIM).  When purchasing or upgrading a policy, you will want to make sure that you have these as a part of a policy.  These coverages will protect you and your passengers in the car, in the event that you are in an accident and the other party involved has no or too little insurance to cover the damage to your car, medical bills and expenses. 

A handful of states require drivers to have this coverage as a part of their policy and California is amongst them.  However, you are allowed to waive this coverage with your signature.  UM/UIM insurance typically does not cover most property damage.  You should check the specifics of your policy to see what is covered.

For careful drivers’ who don’t carry collision coverage, you may want to add Uninsured Motorist Property Damage coverage (UMPD).  In most cases this is less expensive than carrying full collision coverage.  Carrying this type of coverage can help to repair damage to your vehicle in the event that the other driver does not have or carry enough insurance.

It is always important to consult your current agency to make sure you are clear as to what coverage you currently carry.  If you are thinking about switching agencies or would like more information, please contact an AIS insurance specialist at 888-772-4247 or request on online insurance quote. 

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.

For 2009, many people have made their new year’s resolution to lose weight, spend more time with family, or stop smoking.  These are great resolutions and should be followed through until the goal is met.  For those that haven’t set a new year’s resolution or are having trouble sticking to the ones they have already set, why not make this your new year’s resolution to save money? Now may be the perfect time to look into changing your California car insurance policy, or switching companies if you think you are paying too much.

Here are some tips you can follow to help cut the cost of your car insurance.

Keep your driving records and personal information up to date.  If you have had any tickets or auto related citations in recent years that have dropped off of your record, it is important to verify that your insurance company knows about these.  If you don’t keep your driving record up to date, you could be wasting money by paying extra for infractions that are no longer on your record.  By keeping your personal information up to date, you can save money as well.  When you hit certain age marks, get married, or even purchase a home, you can often save money each month.

Be sure you are taking advantage of any discounts you are eligible for.  These discounts can be for many different things including organizations you belong to, safe car features, or even the type of job you have.  Contact your insurance company to see if you can receive discounts for having a low risk occupation, driving a vehicle that is deemed “low profile”, or driving a car with advanced safety features.  You can also save by combining your coverage, assuming more risk on your vehicle, or if you are a senior citizen.

If you are unsure if you qualify for these discounts, have your information ready and contact Auto Insurance Specialists for more information.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.

For most car owners, there comes a time in life when you will have that unfortunate fender bender and you have to get the damage repaired.  For most people, picking a body shop and paying for the repairs is not an enjoyable experience.  While these tips will not make the process any more enjoyable, they will however help you to not spend more money than is necessary when it comes to body shop repairs.

Shop Around – One of the biggest differences you will see in body shops is the hourly rate they charge to perform the labor on your vehicle.  This can range from $30-60 an hour.  The rates can vary by the location you are in and the shop itself.  You might benefit by checking your next closest town for different rates.

Once you choose a shop and receive a quote, make sure you understand the quote you are presented.  Some shops use a computer system to generate the quote while others will do this by hand.  Whichever kind you receive, be sure the body shop technician goes over the quote in detail and that you understand it before you make a commitment.  A good shop will review this with you, but if they don’t, you should ask.  If you are not satisfied or their answers seem vague, move on to the next body shop.  Also, it never hurts to get multiple quotes from competing shops.  Some will match or beat the quote of their competitor to make sure you choose their shop.

After your car is repaired and it is time to pick it up, inspect the parts once you get to the shop.  Look to see that the old parts were in fact damaged.  If you can’t tell, ask the technician to show you what is defective and why it needed to be replaced.  If the quote calls for new parts, ask to see the old ones and make sure new parts were put onto your vehicle.  Some shops will use refurbished parts and call them new to save money for themselves. 

Most parts being put onto the car will need to be painted.  When you pick up your vehicle, inspect the parts and paint to make sure they were painted correctly.  If possible, try to inspect the paint in different lighting conditions.  When it is bright and sunny outside, the paint may look perfect, but moving the vehicle into an area with less light, and the same paint job could look different.  If this is the case, you may want to consider asking them to repaint this for you.

The last thing you should always remember is to ask a lot of questions.  Repairs can cost thousands of dollars, so you want to make sure you don’t have to come back to have the work redone at an added cost.  Many shops will warranty or guarantee their work.  Make sure you get the details in writing, so if you do have issues with the work performed you can use that as your back up.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.

 You know that you need to have insurance coverage for your personal vehicle – liability, collision and comprehensive, personal injury protection, and uninsured motorists’ coverage.  Did you know that you may need the same kind of insurance coverage for the vehicle you use in your business?

While there are similarities between the two, a commercial auto insurance policy differs from a personal auto insurance policy in many important ways.  Be sure to ask your auto insurance agency to explain all the technical details and your coverage options.

Additionally, check with your auto insurance agency to ensure you have sufficient auto liability coverage.  In the state of California, for example, commercial auto insurance is important for businesses to have on any vehicle used to transport employees.  Without such coverage, should an accident should occur, you could find that not only your business assets but also your personal assets are at serious risk.

Commercial auto insurance in California can cover the following types of vehicles:

• Trucks
• Vans
• Cars
• SUVs
• Heavy trucks and trailers
• Dump trucks
• Box trucks

To learn more, contact your auto insurance company to find out if you need a commercial auto insurance policy for your vehicle.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.

 Once you’ve done your research and have found an auto insurance company that you feel is right for you, you’ve likely reached the point where you want to speak to a company representative.  What are some of the best ways of getting in touch with an auto insurance agency?  Here are some tips to help you find an agency in your area.

• Call the company directly.  For example, at the State of California’s Department of Insurance website, the contact information for a number of auto insurance companies is provided on their “Toll Free Numbers” page.  Additionally, your Yellow Pages can also provide you with contact information for local agencies and/or brokerages.

• Check the company’s website.  Just as in the example above, the Internet can offer many ways to access information.  Check the website of the auto insurance company you are interested in for local agency and/or broker contacts.

• Check with an agency or brokerage association.  There are a large number of  associations across the United States.  Either the Internet or your Yellow Pages can help you find an agency or broker association who can help you locate a local auto insurance broker or agency.

Finding an auto insurance company doesn’t end with speaking to one over the telephone.  It is very important to check their license status before you make a final decision.  You can use either the representative’s name or insurance license number to find out their licensing history – this is especially easy with the California Department of Insurance.  Their website features a way in which you can perform a license status inquiry.  You can get an agency or broker’s insurance license number from the broker or agency’s business card and do a search by that number.

By doing your comparison research before hand, finding out information on an auto insurance agency or broker using the Internet, and in speaking with a representative over the telephone, you can help to ensure that you find the right auto insurance specialist for you.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.

 Should you accept or decline coverage the rental agency usually offers to sell you?  Such insurance is offered in order to help to cover accidents while you are on your trip.  In most cases, you’re safe to decline, it providing you have the same or better protection from your personal automobile insurance company.  Also, you may already have rental-car insurance provided by the credit card that you use.  Both options can give you substantial savings over the rental agency’s coverage.  Before declining the coverage, however, you should be certain that your personal auto insurance or credit-card coverage covers you – otherwise you could be driving your rental uninsured.

Since insurance is state regulated, the cost and coverage will vary from state to state.  The following types of coverage are those that are generally available – you should check with your auto insurance company to be sure which coverage you either have or need:

Loss Damage Waiver (LDW)

While an LDW is not technically an insurance product, it does, however, “waive” renters of financial responsibility if their rental car is damaged or stolen.  In most cases, waivers also provide coverage for “loss of use,” in the event the rental car company charges the renter for the time a damaged car can not be used because it is being fixed.  It may also cover “diminution of value”: the decline in value a repaired vehicle incurs.  Additionally, it may also cover towing and administrative fees, so check with your auto insurance company as these are all things your personal auto insurance policy typically will NOT cover when renting a car.

Liability Insurance

By law, rental companies must provide the state required amount of liability insurance.  This is an instance where, if you have sufficient amounts of liability protection on your own car, you might decline the additional liability protection.  Again, this is something that you should check with your auto insurance company on, in order to know if the amount of liability protection on your car is enough to cover a rental.

Personal Accident Insurance

Personal Accident Insurance offers coverage to you and your passengers for medical and ambulance bills for injuries caused in a car crash.  Your health insurance or your personal injury protection insurance under your auto insurance policy may cover the costs of this.  You should check with your health care insurance provider as well as your auto insurance company to make certain.

Personal Effects Coverage

Personal Effects Coverage provides insurance protection for the theft of items in your car.  If you have a homeowners or renters insurance policy that includes off-premises theft coverage, you are generally covered for theft of your belongings away from home, up to a certain limit and minus the deductible.  This is another area where, depending on your auto insurance or homeowners or renters’ insurance, you may be able to save money at the car rental counter.

When all is said and done, the options for properly insuring a rental car can be a confusing process.  This is why it’s a good idea to make two calls before you rent a car.  One call should be to your auto insurance agency or auto insurance provider, and the other should be to the credit card company you will be using to pay for the rental car.  By finding out beforehand how much coverage you currently have on your own car, as well as finding out the insurance benefits offered by your credit card company, you can save yourself both time and money.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.

 Major changes to your life can affect many things including your auto insurance rate.  Big events such as marriage, buying a new home, or retiring can mean that it is also time to reevaluate your auto insurance policy.

Overall there are seven events that can affect your auto insurance:

• Relocating
• Getting Married
• Getting Divorced/Being Widowed
• Buying a Home
• Buying a New Car
• Having Children
• Retiring

How do those seven life changes affect your auto insurance?  Here are some of the ways:

• Relocating: If you are moving out of state, you may find that your new state has different laws about required auto insurance coverage.  Your current auto insurer might not even be licensed there.  This is a time when you should check with your current insurer and to determine who could provide you with the right coverage for your new area.

• Getting Married: Many insurance companies offer discounts for multiple cars – by getting the cars of you and your spouse under one policy you can save money through joint policies and multi-car discounts.

• Getting Divorced or Becoming Widowed: As difficult and upsetting as a divorce or becoming widowed can be, this life altering event is also a time when you should reevaluate your auto insurance coverage.  The joint policies and multi-car discounts you received while married won’t be applicable once you are single, so you will need to check with your insurer to find out what type of coverage and what kind of discount could be provided to you.

• Buying a Home: The purchase of a home can mean that you might qualify for multi-policy discounts.  Additionally, factors such as a new neighborhood or being able to garage your car can affect your auto insurance rates.

• Buying a New Car: When buying a new car, consider how much it costs to insure different models. Some companies classify the same car differently, so rates may vary. Rates also are affected by the car’s safety rating, crashworthiness and how attractive that model is to thieves.

• Having Children: The safety of your children is always paramount.  In keeping your children safe, you might upgrade to a better car, or to get the best child restraint system.  Taking these steps to protect your children can mean you may qualify for better auto insurance rates.  Also, as your children get older and start to drive, putting them on your policy or insuring their car can be another major expense.

• Retiring: Retirement can mean either more driving or less driving depending on your lifestyle.  You might travel the country or stay close to home – you might even decide that you no longer need a car.  When planning for your retirement, you should consider how much coverage you will need to protect your assets and to save money.

Regardless of what kind of change may be occurring in your life, it’s always a good idea to do some comparison shopping, especially when it comes to auto insurance.  By keeping in mind your auto insurance costs during some of life’s major events you may be able to save yourself considerable money over time.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.