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Roughly half the cost of standard auto insurance comes from carrying Collision and Comprehensive coverage on your vehicles.  If your auto insurance is getting too expensive, dropping coverage is an easy way to save money and obtain more affordable auto insurance, but is it really the smartest thing to do?  Depending on your circumstances, where you live, and the type of vehicles you drive, it may actually be the smartest move to continue to carry the coverage despite the cost.

Comprehensive & Collision Coverage Overview

If you want the best protection for your car, you need to purchase two types of damage protection. The first is referred to as Collision coverage.  Collision coverage is just that; coverage for any damage caused by any sort of collision. Whether the damage is caused due to a vehicle-on-vehicle collision, or a vehicle-on-object collision, it’s all covered.  The second type of protection is referred to as Comprehensive coverage.  Comprehensive coverage was once referred to as Other Than Collision. Can you guess what it covers?  Any damage that occurs to your vehicle that is not the result of a collision is referred to as Comprehensive coverage.  A few examples of when Comprehensive coverage may be necessary are theft, hail, vandalism, etc.

When Should I Carry Collision Coverage?

Although Collision coverage is never required (unless you have a loan or lease on the vehicle), there are times when having it is very highly recommended.  First, if you have young drivers, you should carry collision coverage. Young drivers don’t have a proven track record when it comes to driver safety, and thus you should always have Collision coverage for at least the first five years you have a new driver.  Second, if you don’t have the cash available to repair your own vehicle, you need to purchase the collision protection.  Even if you think you are the best driver in the world, accidents can still happen.  In the event that you do have an accident, do you have the money to fork out $4,000 to fix the front end of your car?  If not, you should probably have the coverage.

When Should I Carry Comprehensive Coverage?

Comprehensive coverage is also not required (again, unless you have a loan or lease on the vehicle), but there are times when it is highly recommended.  The biggest reason to carry Comprehensive coverage is if there is an X factor in the area where you live.  For example, in certain areas of New Jersey, auto theft rates are extremely high.  Instead of buying a new car, if you have comprehensive coverage, you pay only your deductible.  As another example, if you have Houston auto insurance, you should carry Comprehensive coverage because of the large number of hail claims that are reported in the area each year.

Being unable to claim the full amount of money from insurance companies after being involved in a car crash is like adding insult to injury. Trying to get the rightful amount of money from car accident settlements is hard because insurance companies are known to try to get you to admit you are partly responsible for not avoiding the accident. Unless you are prepared to answer their every question and negotiate with supporting proof that you are not to be blamed for the crash, you will surely not receive the full amount of your claim.

Seeing is believing, therefore taking actual photos of the accident scene right after the incident happened will be the most powerful evidence you can have to win your case. If you do not a camera with you at the time, then use your mobile phone to take photos of the damages caused.

Take photos of the wreckage of your cars on the inside and outside and other things that may be caused by the accident such as tire skid marks and road signs that may indication any traffic violations by the other driver.  If you can present photos of your car before the accident to verify the damages caused it may help your case.

Admittedly most people dont take photos of their cars too often but if you have a digital camera just try and take one every 3-6 months. You can buy digital cameras for less than $50 now so it makes sense to buy one and keep it in your glove compartment for those horrible times when you have to use it.

When negotiating with the car insurance adjuster, insist that everything he says is being documented and put in writing. While you may not be familiar with insurance compensation terms and conditions, this will at least make the adjuster nervous as you could sue him for bad faith if he had presented the facts and laws in a way that cause you to receive less money from the accident claim. Putting everything in writing will ensure that your benefits are protected and will be able to bind the insurance companies to their words.

Getting the amount of money you deserve from insurance companies is not always easy, car accident claims have much more subjective detail than a claim for term life insurance, but it can be done with the proper documentations and some negotiation skills.

When the time of year rolls around for you to perform the necessary preventative maintenance to your auto to keep it in perfect running condition, it is also time to check our your insurance policy. You need to update your auto insurance policy annually to make sure you have enough protection as your situation may change. You should get on your computer and get quotes from other insurance companies to make sure you’re getting the best deal possible. Things might have changed in your life that affect your keystone auto insurance needs and an update will make sure that you are fully protected. The most important thing to check is the Insuring Agreement on your policy to see if any changes in your lifestyle affect your coverage.

The areas of your policy that should be reviewed are the liability coverage, of which part is mandatory. If your personal assets have increased since the last time you reviewed your policy you want to make sure that your coverage reflects that change. You wouldn’t want to come up short on your insurance coverage if you were involved in a serious accident and it was your fault. This could cause you to lose some of your assets, even your home. Your medical payments coverage is one that will cover you no matter who is at fault so you want to make sure you have the correct amount of coverage in this area also.
Another important option on your insurance is the uninsured/underinsured motorist coverage. If you don’t have enough of this type of insurance and you were in an accident with someone that fell in that category, again, you could lose your assets.

In regards to collision and comprehensive coverages, if your car is not worth much more than the $500 deductible you have, it is more cost-effective to cancel the these two option altogether. If you still would want to keep the car you could lower your deductible to $250 but your premium would then be higher.

It will payoff in the long run to have your car maintained in proper running condition to extend the life of the car and also to make sure it’s safe to drive. It is also important to make time to check out your insurance policy periodically so that you know that you have enough coverage to protect yourself and your property and also that you’re not paying more money than is necessary for your auto insurance coverage.

Unitrin Direct Insurance Company began in 1931 and offers its 6 million customers the friendliness of a hometown company along with the professionalism of a large organization. Unitrin has a large family of groups with over $9 billion in assets. To insure that they provide their customers with the best service possible they maintain a formal Code of Business Conduct and Ethics.

Also, the A.M. Best Company has given Unitrin an A for excellence. They are an independent firm that rates the performance of insurance companies and getting an A from them means that Unitrin Direct can be trusted for their stability and endurance. This type of rating from such a firm gives the insured confidence that their insurance company will always be there for them in times of stress such as a bad auto accident.

If you are in the market for auto insurance and don’t know which company to use you should go onto the internet and compare all the insurance companies against each other to find the one that is right for you. On the internet you will find that not only does Unitrin Direct have great Direct auto insurance options for your needs but they also offer drivers many types of discounts.

They offer many other discounts to their insured drivers such as: 1) a safe driver discount meaning you have kept a clean driving record by not getting into any accidents and avoiding moving vehicle citations; 2) discounts for mature drivers who have reached the age of 55 years of age because they have many years of driving experience and are thought to be more responsible while driving on the roads; 3) anti-theft device discount for having safety devices put on your vehicle and other devices such as the GPS which can be used to track you vehicle very quickly if stolen; 4) pay-in-full discounts for those who pay their annual premium all at once; 5) good student driver discount for those who are in school and keep their scholastic record high; 6) defensive driver training discount for anyone who takes a specialized course in how to avoid accidents; and 7) a homeowners discount for those who have their homeowners insurance with Unitrin along with their Sterling auto insurance.

Unitrin also offer many options above the regular auto insurance people usually have such as auto rental reimbursement which provides a rental car if yours is in the shop. Another type of coverage which is very important if you have recently purchased your vehicle and have a large debt against it, Unitrin has GAP insurance meaning if your vehicle is totaled they will pay the difference between what remains on your auto loan and the value of the vehicle. These two options alone can save you money in the long run and also a lot of stress if you are in an auto accident.