Author: Creed Anderson

What is a Car Insurance Grace Period?

A grace period can help you breathe a sigh of relief when you are late making a bill payment. When it comes to car insurance grace periods, they can vary from provider to provider. But it’s important to understand how they work, as well as the specific grace period (if there is one) with your policy. Otherwise, you risk serious consequences for missing your car insurance payment! What is a car insurance grace period? When it comes to car insurance, a grace period is a certain amount of time a car insurance company will give you after missing a car insurance payment before your policy is canceled for a late payment. There are all kinds of reasons policyholders might miss a payment. Sometimes, they simply can’t afford to make the payment or perhaps it slips their mind altogether. You’ll need to be sure of your specific grace period, but generally, it ranges from three to 30 days for most companies. Additionally, some companies allow the payment to roll into the next month, however you’ll then be subject to a late fee. Don’t miss your car insurance payments We understand that life happens, and sometimes it is difficult to make your payments. Whenever possible, give your insurance company as much notice as possible if you’re going to miss a payment. You may be able to make a payment arrangement and...

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Does Car Insurance Cover Basic Repairs?

When you get car insurance coverage, you usually already know it can cover the damage from accidents with other vehicles. But what about damage and repairs that come from other issues? Perhaps a lack of maintenance or regular wear and tear? Does car insurance cover basic repairs? Does car insurance cover repairs? This is a question we’re going to explore in today’s post, so you won’t want to miss it! Let’s start with the basics, including how auto insurance is something that’s required by law. The amount of coverage you’re required to have depends where you live, but in each state, it serves the same basic purpose. Having it means your insurance provider will help to pay for or cover any of the damages that may happen to your vehicle after you’ve paid your deductible. It also means other drivers aren’t left paying for damage to their own vehicle or property if you are at-fault for the damage in an accident. In Utah, you’re required to have: $25,000 in liability coverage for bodily injury per person $65,000 in liability coverage for bodily injury per accident $15,000 in liability coverage for property damage $3,000 for personal injury protection as a no-fault state Finally, if you decide to purchase underinsured or uninsured motorist coverage, it is required by law to have at least $25,000 per person and $50,000 per accident. So,...

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Why Did My Salt Lake City Car Insurance Rates Go Up?

If you’re a Salt Lake City driver who recently saw their car insurance rates go up (even if you haven’t been in an accident), this post likely caught your eye. The truth is, there are several reasons insurance premiums can go up, and we’ll tell you more about them in this post. Reasons Your Car Insurance Rates Go Up We’ll cover some of the common reasons for car insurance price increases, but if you would like to learn more about your specific policy or learning more about the best coverage options for you, call us for help. Car Insurance Fraud Unfortunately, car insurance fraud is on the rise across the country and it totals more than an estimated 40 billion dollars each year, according to the FBI. Because of these significant costs, many insurance companies have to increase their premiums alongside them. Trends Depending on where you live, there are several trends and events that could result in car insurance premiums going up for drivers in that area. For example, if crime rates have jumped, insurance premiums tend to go up along with them. This is because a large component of your premium is based on risk. When the risk is higher (in the case of higher crime rates), your policy premium will typically go up. Other Costs Are Also Rising Another reason your car insurance could go up...

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Important Information About Fraud & Car Insurance in Salt Lake City

Unfortunately, car insurance fraud is an all too common reality in the United States, and Salt Lake City is no exception. Statistics About Car Insurance Fraud Consider these startling statistics about car insurance fraud: Fraudulent auto insurance claims total billions of dollars each year. Some experts also estimate that 14% of all auto insurance claims are fraudulent. Insurance fraud costs the average American family between an estimated $400-$700 every year. Types of Car Insurance Fraud Today we’re going to discuss the different types of car insurance fraud so you know what to look out for when protecting yourself from fraudulent claims. Organized fraud This occurs when multiple parties work together to stage incidents to make fraudulent insurance claims. For example, if two drivers plan a collision with one another in order to benefit from the claim money and splitting it. Insurance companies collaborate with law enforcement to combat this type of fraud. Premeditated fraud Fraud is considered premeditated when a policyholder makes a claim for damage to their car that didn’t actually happen in an accident or how the report that it took place. It often also involves making claims for medical treatments for injuries after a collision that a policyholder didn’t actually have. Opportunistic fraud Opportunistic fraud can begin with a legitimate claim, but the damage is exaggerated or inflated to get a bigger insurance payout. It also...

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Are Car Insurance Settlements Taxable?

In the event you are injured or your property is damaged in a car accident, you might receive a settlement from the other driver’s insurance. This money can go toward repairing or replacing your vehicle, your medical bills, and other damages you sustained as a result of the accident. Howoever, you might also be left wondering if car insurance settlements are taxable so you are ready for this when tax season comes around. Are car insurance settlements taxable? As much as we would like to give you one answer to this question, the truth is there are a number of factors that are taken into account in order to answer it. The IRS can tax income that makes you wealthier before. So, in the event your settlement exceeds whatever your lost wages, medical bills, and other damages cost you, any surplus could be taxed. But in the event you receive a $10,000 settlement when your expenses were $12,000, this isn’t likely to be taxable. As for the specifics when it comes to coverage for different damages, this also plays a role. Here are some guidelines to keep in mind. Car insurance settlements for lost wages is taxable Auto insurance settlements for repair or replacement of car or other property is tax-exempt Car insurance settlements for medical bills are tax-exempt Tax laws vary for car insurance settlements for pain and...

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