Auto Insurance For Pimped Out Rides

With the popularity of custom car TV shows such as "Pimp My Ride," personalized cars are hotter than ever. Accessories have come a long way from simple paint jobs and fuzzy dice. Today, drivers want their cars to stand out from the crowd, and to express their personality and style. As a result, car owners are adding chrome rims and grills, customized murals, spinners, pipes, LCD monitors, DVD players, expensive stereo systems, ground effects, and hydraulics.

But what is the cost to insure these hot new accessories? And do you know if your auto insurance company will cover these often-expensive enhancements?

If you’re thinking of improving your car, these are some very important questions to ask! Modifying your car can be a huge investment, and you don’t want to find out after the fact that your vehicle is not covered.

Ask first, change your car later

The best course of action is to consult your insurance company before you start modifying your car. This will help you find out what your auto insurance company does and doesn’t cover, if they are willing to insure your new car, and the total cost of keeping your customized auto covered.

Most insurance companies will ask if your car has “substantial customization” that you would like to insure at an additional cost. If so, you can add an endorsement to your comprehensive and collision coverage for custom parts and equipment. An endorsement is a change to your auto insurance policy, and it can extend coverage to include your modifications.

Check the amount covered under your endorsement, because it can vary for different companies. If your new parts cost more than the covered cost, you may want to consider shopping around to explore your coverage options. Keep in mind that standard insurance companies insure the actual value of the parts, meaning that they will pay you what the parts are worth, not what it costs to replace them.

Safety is key

Always make sure that your parts are installed safely by a knowledgeable professional. Many drivers attempt to do the work themselves. As a result, parts could be installed improperly.

Your best bet is to have a professional do the work for you. It will save you a lot of money in the long run, in addition to keeping you safe.

Even if you don’t have a custom car, you can still get free car insurance rate quotes from multiple companies by filling out a single application. If you do have a custom car, most companies will cover you. Just make sure to select “Yes” for the question about substantial customization in the vehicle information section of the application.

Save On Auto Insurance with a Hybrid

Between gas prices and the economy, American drivers are having trouble deciding what autos to buy. Many people are exploring alternatives, from bikes, to buses, to biofuels. One auto alternative is hybrid cars. But what exactly is a hybrid and why would you want one?

Gas Mileage. The reason most people want a hybrid is because of the great gas mileage they can get. How is this possible? Technology for hybrid autos varies, but higher fuel efficiency is usually accomplished with an electric motor. Batteries store energy recovered during braking and supply that energy back to the electric motor, cutting down on the amount of gas used. A 2008 Toyota Prius, for example, gets an EPA estimated 46 MPG for combined use, while a 2008 Honda Civic Hybrid gets an EPA combined rating of 42 MPG.

Hybrid Types. However, make sure you understand what type of hybrid you’re buying. Some hybrids are designed not to save gas, but to increase performance. For example, there are sports autos that take the gas engine from another model and add an electric motor to increase power. This design uses less gas than an auto with a bigger gas engine, but could actually use more gas overall than the same auto without the electric motor. A 2008 Lexus GS 450h gets an EPA estimated 23 MPG combined, while the 2008 Ford Escape Hybrid gets an EPA rated 32 MPG. Buying a hybrid doesn’t automatically mean you’ll get better mileage than a big SUV does.

Discounts. You could be eligible for discounts if you buy a hybrid. Although their numbers are dropping quickly, some hybrid models may qualify for a federal tax incentive. In addition, many states offer tax incentives, parking incentives, and other toll or driving incentives. When you add these savings into the amount you can save in gas, suddenly a hybrid auto doesn’t seem as expensive.

Auto Insurance. Another great savings opportunity could be a discount on your auto insurance rate. Some companies have started to feature discounts of up to 10% for hybrid auto insurance rates, although it depends on the type of hybrid. You’ll need to shop around and compare auto insurance rates from different companies to see who has the best rate.

8 Things You Should Know About Auto Insurance

Dealing with the ins and outs of auto insurance can be as tricky and confusing as trying to untie the Gordian knot. Although we can`t help you with the knotty Gordian problem, the following recommendations could help you figure out some of the more complicated points of auto insurance.

1) Determine appropriate coverage.

Help control the price you pay, just ask American Insurance Association executive Dave Snyder. For example, Snyder notes that half of your auto insurance bill covers liability and "that has to do with how you are going to use the vehicle, such as for commuting to work and your driving record. If you`ve got a clean driving record, you figure to pay less for insurance than you would if you had a speeding ticket on your record. You can control the other half of your premium which covers damage or loss to your vehicle, comprehensive and collision coverage."

2) Shop around for insurance.

"In most states," Snyder reports, "there are hundreds of insurers competing for business, so it`s possible to save hundreds of dollars by obtaining quotes from different auto insurance providers." Picking up on Snyder`s theme is his AIA colleague, Nicole Mahrt. Mahrt urges you to work with your insurance provider to get more than one quote. "It pays you to shop around, especially if you feel you`ve been paying too much."

3) Look for insurance discounts.

"Many insurers will give you a discount if you buy two or more types of insurance from them, for example auto and home insurance," confirms John Marchioni, senior vice president of Personal Lines for Selective Insurance, in Branchville, N.J. More cost-saving suggestions from Marchioni: "Ask about discounts for air bags, anti-lock brakes, daytime running lights and anti-theft devices."

4) Consider taking a higher deductible.

"You could lower your insurance bill by increasing your deductible," Mahrt says. "But just make sure you can pay the higher deductible if you file a claim."

5) Look into "stacking" coverages if you file an insurance claim.

Insurance trade group officer Daniel Kummer explains that stacking uninsured/underinsured motorist coverages means "you can collect from more than one of your auto insurance policies. Most states prohibit this practice, but there are about 19 states that either allow stacking or don't address the issue either through legislation or litigation," according to Kummer, director of personal insurance for the Property Casualty Insurers Association of America. "Be sure to check your auto insurance contract to see if it's allowed. "Be advised that you`ll likely pay a higher insurance premium if you have stacked coverage. "It could be 10% to 30% more depending on the litigious nature of the state in which you reside," says Kummer.

6) Check with your insurance provider BEFORE buying a car.

"Your premium is based in part on the car`s sticker price, the cost to repair it, its safety record and the likelihood of theft," answers Selective`s John Marchioni. Remember to avoid shopping by price alone. "You want an agent and a company that answer your questions and handle claims fairly and efficiently," emphasizes Marchioni, senior vice president of Personal Lines for Selective Insurance.

7) Notify your auto insurance company as soon as you change companies.

"Be sure to cancel your old policy," suggests PCI`s Dan Kummer. "Do it the same day, but don`t cancel your old policy until you`ve lined up a new contract. That`s important because some states like New York will fine you for the number of days you go without insurance." One last thought from Kummer on the subject: "Most auto insurers specify in your contract that you can terminate your policy any time you want by informing your company in writing about the date you wish that coverage be terminated or you can do that over the phone.

8) Pick the insurance payment option that best fits your budget.

"Generally, most companies will give you the ability to pay over time, but that comes at a price," says Kummer. "Your payment could increase a few dollars each time you pay by installment. Insurers can accept payments monthly, quarterly, or every six months, what ever is most convenient for you. Remember, though, that the more you break down your payments, the more the cost adds up."