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Often when you’re shopping for quotes from car insurance companies the phrase “incidence rate” will be brought up fairly frequently. Many consumers do not fully understand what this means, but in reality it’s just a easy procedure to determine the risk level of your vehicle by using the statistics that are given by auto industries that show how likely your car is to be involved in an accident, be stolen, or the severity of damage it suffers from a small accident.

When one applies for insurance the company is not only interested in their driving record, but also in the kind of car they drive. There are several factors that may affect the incidence rate of a car, such as its popularity among car thieves due to value after disassembly, weaknesses that could lead to accidents or failures, or the temptation that the driver will engage in reckless driving due to superior performance levels.

Any insurance company will have data that shows the likelihood of cars being stolen, how often they’ll be in accidents, etcetera. This is what your insurance agency will use to determine how high the risk level of your vehicle will be and the effect this will have on your policy rates, if you have a vehicle that falls in to one or more of the high risk categories for incidents then your rate will be dramatically higher than you would like.

It’s common knowledge that sporty cars are more likely to get speeding tickets but many people do not know that cars with light colors are involved in more accidents as well. This information should be available to everyone, not just your insurance agents. You can talk with a car dealer or do an internet search on why your rates might be higher than everyone else.

But what if you really had your heart set on a certain vehicle type, only to find out that the specific model was more prone to auto thefts than others? Obviously, your insurance rates will be higher than if you had chosen a different vehicle. If a vehicle is stolen, your insurance company must reimburse you for the full fair-market value of the vehicle. But by installing anti-theft devices, alarm systems, and even GPS systems, you can lower the theft risk and help lower your insurance premiums.

Vehicle color has a much lesser affect on determining premiums. While a white car may be more difficult for other motorists to see, and thereby more likely to be involved in an accidents, it will generally be the other driver who is at fault, and his insurance company, not yours, must reimburse you for any damages. It may be wise to purchase an Uninsured Motorist or an Underinsured Motorist policy in case the other driver either does not have insurance, or his insurance will not fully reimburse you. By having this additional coverage, you can greatly reduce, if not eliminate, the additional premiums that you would otherwise have to pay.

By knowing the incidence rates associated with your vehicle and the ways to offset them you can ensure lower rates, but it works both ways. It’s possible to research and seek out the cars that have the lowest theft rates and best safety records in order to get the lowest possible insurance rates. When advertisers note good performance and safety records they’re really drawing your attention to the possibility of lower rates.

Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za. South Arica’s leading car and vechile portal.

categories: Finance,Insurance,Cars,Automotive,Car Insurance,Money,Vechile Insurance

Car insurance is very important. When a vehicle is stolen or broken into, insurance plays a large role in reimbursement for lost property. Insurance also allows the victim to make a claim to their insurer and the insurer handles the costs of repairs and/or replacement of the damage to the vehicle; of course, there is generally a modest deductible depending upon the insurance plan one has.

The process for making a claim starts with informing your insurance company about the event that occurred. The insurance agent you contact will begin the initial examination checklist. Their job is to verify that the claim is legitimate and determine the amount of compensation one will receive. They also are responsible for determining the amount of your claim that the insurance company will cover. These checklists generally includes questions about the incident and your policy and coverage details.

The Status of your current Insurance, whether it is active and has up to date payment history is of prime importance along with the fact that it should not have been lapsed by then, is essential in case if you wish to claim the coverage .

Your policy has certain coverage amounts and there are items that are not covered, the insurance agent will go over your policy contract and determine if the claim you are filing is in fact covered by the policy. If you have only liability insurance or third party cover then you will not be able to collect on damages such as car theft.

You cannot claim the coverage amount if the exclusion criteria of the policy such as fire or flood is a part of the claim but you can claim coverage during a break in burglary or vandalism, in case if your expensive car accessories such as stereo or golf clubs are stolen, if it is covered or listed in the actual policy contract.

The insurance agent looks for violation of policy terms, ensures the driver stood up to their end of the policy requirements and checks for any perils or items that might be excluded for the claim. It might sound harsh, but the insurance company will look for any reason they should not pay the claim and if they find one you will be left holding the bill at the end of the day.

Other than looking out for policy reasons, the trained insurance agent might even carry a checklist to rule out suspicion in case of fraudulent claims. For example Expensive trunk load of goods carried in an old car, if reported as stolen and has been filed for a claim, the agent might raise a suspicion that it might be a fraudulent claim by the policy owner. Misleading facts and false information might lead to the coverage being denied. Once the checklist is complete along with the Initial examination, the agent forwards the case to its assessor along with his reports of examination, to assess and approve claim, if it is genuine.

Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading Car Insurance portal.

categories: Finance,Insurance,Cars,Automotive,Car Insurance,Money,Vechile Insurance