Bryan Parker Insurance Agency Blog: auto
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THURSDAY, AUGUST 11, 2016
There are few things in life that are more emotionally tolling and draining than going through a divorce and separation process. Emotions are heightened, nerves are on end, and feelings are raw. As you begin to untangle your finances, this may be the right time to untangle insurance ties when it comes to your personal auto and homeowner’s policy as well.
The process of breaking up and obtaining your own separate insurance policies can come with downfalls. Often, being classified as being married or in a domestic partnership can provide a 5% or even 10% discount. You may lose those discounts, but if you are still living under the same roof, you may be able to keep it all under one policy while living together. If you are going with separate policies, it is important to know that most companies will want the car to be insured under whom the car is registered to. If children of driving age are involved, many companies will require the spouse that has them the majority of the time to have them under their policy. It is important to check with each individual company. They all have their own rules and guidelines to be met.
If you or your partner moves out or a way, its important to endorse your policy to reflect that. Remember that buying insurance is a legally binding contract and companies will want notice if the details are no longer correct. Some companies will require the policy to be rewritten since you and your spouse were named insureds on the policy, others will let you remove one of the named insureds names and continue on with the current policy. If you end up in a rental home, it’s important to purchase rental insurance to cover your personal property and have some liability.
Remember, each company is different, so it’s important to check with your agent and let them customize and walk you through the process. If you have questions about your insurance, ECI is always here. Get an Oklahoma City auto or home insurance quote.
THURSDAY, AUGUST 11, 2016
If you lease a car, you still need to buy your own auto insurance policy. The auto dealer or bank that is financing the car will require you to buy collision and comprehensive coverage. You will need to buy these coverages in addition to the others that may be mandatory in your state, such as auto liability insurance.
Collision covers the damage to the car from an accident with another automobile or object.
Comprehensive covers a loss that is caused by something other than a collision with another car or object, such as a fire or theft or collision with a deer.
The leasing company may also require "gap" insurance. If you have an accident and your leased car is damaged beyond repair, or "totaled," there's likely to be a difference between the amount that you still owe the auto dealer and the check you'll get from your insurance company. That's because the insurance company's check is based on the car's actual cash value which takes into account depreciation. The difference between the two amounts is known as the "gap."
On a leased car, the cost of gap insurance is generally rolled into the lease payments. You don't actually buy a gap policy. Generally, the auto dealer buys a master policy from an insurance company to cover all the cars it leases and charges you for a "gap waiver." This means that if your leased car is totaled, you won't have to pay the dealer the gap amount. Check with the auto dealer when leasing your car.
If you have an auto loan rather than a lease, you may want to buy gap insurance to protect yourself from having to come up with the gap amount if your car is totaled before you've finished paying for it. Ask your insurance professional about gap insurance; it may not be available in some states.