What is the Difference Between Replacement Cost and Actual Value?

When thinking about auto insurance, be sure to work closely with your agent at XL Brokerage Inc. serving Selden, NY and the surrounding area. Keep your agent informed of any changes that are happening in your life, such as a job change or letting another person drive your vehicle Also, for enhanced protection, consider insuring the vehicle for replacement value.

The Benefits of Replacement Value Protection

Replacement value differs from actual value. The actual value is what a vehicle would sell for on the used auto market. This can be estimated by referring to some industry-wide statistics for auto sales. Replacement value is the amount needed to buy a new vehicle of the same model and type.

If a vehicle is involved in a major accident and severely damaged, it may not be worth repairing it if the cost to repair it is more than the vehicle is worth. In common terminology, this level of damage is described as a vehicle that is “totaled.”

If the insurance covers only the actual value of the vehicle, the claim will be limited to the actual value amount less any deductible. If the insurance covers the replacement value, the claim will be up to the cost of a new vehicle of the same model and type, less any deductible.

One thing to consider is how much and how quickly the value of a new car goes down. It is said that a buyer loses a few thousand dollars of value simply by driving a vehicle off the dealer’s lot.

A Wise Strategy to Consider

One strategy to discuss with your insurance agent is how to choose a deductible and balance this amount with the premiums for replacement cost coverage. The cleverness of this strategy is that the deductible limits the amount of loss to a certain figure and a new car of the same type replaces a vehicle that is totally damaged. Even in the worst-case scenario, you know how much it will cost.

Each year it is a good idea to conduct an auto insurance review to make sure your coverage is adequate. Contact your agent at XL Brokerage Inc. in Selden, NY for a quote for any auto insurance needs and to see how replacement cost coverage is well worth considering.

What to do when your check engine light comes on

The Check Engine light is a confusing and often frightening indicator on your dashboard, explains XL Brokerage Inc. serving Selden, NY. It can mean anything from a loose gas cap to something so serious that you need to pull over to the side of the road, stop, and call for a tow.

If the check engine light comes on, it will either blink or shine red or shine constantly or shine yellow or orange. If the light is blinking or shining red, it’s time to stop and call for a tow. If the light is shining steadily or orange or red, the problem isn’t immediate but needs to be looked at as soon as possible.

When the check engine light comes on, the vehicle’s computer, which controls almost all aspects of engine performance and sometimes how the transmission shifts, will store a trouble code. Any mechanic’s shop has the equipment to read the code that would point a trained technician to the problem’s source. One can also pick up a relatively inexpensive code reader if one is a do-it-yourselfer.

However, unless the problem is a loose gas cap, something one can check right away, the cause of the check engine light is something that only a professional will be able to track down and fix. Ignoring something that causes the light to come on is the worst of bad ideas. More than likely, the problem will get worse, and the engine will take on more damage, adding potentially thousands of dollars to the eventual repair bill. It is best to get one’s vehicle to a repair shop as soon as possible.

If you have any other questions about car insurance, contact XL Brokerage Inc. serving Selden, NY

Why does my lender require auto insurance?

One of the biggest purchases that you will ever make is when you buy a new or used car. When you are shopping for a car, you may find that they are too expensive to buy in cash. In these situations, you likely will require a loan to finance the purchase of the car. If you do take out a loan, you will have some responsibilities that need to be followed. One important responsibility that you need to comply with is the requirement to carry auto insurance. There are several reasons why your lender will require that you carry insurance at all times. 

Ensures Legal Compliance

One reason why your lender will want you to have auto insurance is that it will ensure that you stay in compliance with the law. All lenders will want you to have a valid license and stay in compliance with the law. Lenders are also aware that states have minimum auto insurance requirements. Because of this, they will want you to have liability insurance coverage at all times.

Protects Collateral

Your lender will also need to make sure that their collateral is properly protected. The lender will need to confirm that you have a full collision and comprehensive coverage policy at all times. This will help to ensure that their collateral is protected in the event of theft, vandalism or another issue that could cause a loss. 

If you need to get auto insurance for your Selden, NY area vehicle, you should speak with XL Brokerage Inc. first. The team at XL Brokerage Inc. can help you to review your loan agreement to figure out what your auto insurance requirements are. This will help to ensure that you have the right coverage for your Selden, NY area vehicle. 

Why some cars are cheaper to insure than others

There are a lot of factors involved when insurance companies set the rate for coverage on your car. Your age and driving history has a lot to do with it, but the car itself can go a long way in determining the cost of insurance. The XL Brokerage Inc. insurance agency in Selden, NY offers a variety of plans and can help you get the best coverage for your situation.

One factor is whether replacement parts are expensive. An export with expensive parts is going to cost more than a basic sedan made in the United States for that reason. Also, the popularity of the car, especially among thieves, has an impact.  Older cars are often less expensive to get insurance for, but an exotic sports car that is older will still cost more.

Sports cars, in general, cost more to insure than regular sedans. A special sports package on a sedan can also hike up the rates.  Sports cars go faster, and are often driven by younger people, and tend to have the most accidents. 

Expensive cars often have higher insurance rates as well because of the cost of replacing or repairing them. Parts cost more for a luxury car, so that makes the rates go up. Electric cars also have higher insurance rates because of the cost of the vehicle and the cost of repairs.

Trucks are often more expensive than cars in general, and the insurance rates are higher as well.  

The cheapest new car to insure would be a basic sedan or coupe. A lower cost car would also be cheaper to ensure. The website Nerdwallet.com says the Subaru Outback, Ford Escape, and Chevy Equinox are the cheapest cars to insure.

The XL Brokerage Inc. firm in Selden, NY has all the information you need to help you decide which car to get, and they have the policies to give you coverage once you have the car you want.

Why You Should Add Teenage Drivers To Your Auto Insurance Policy

Selden, NY residents with teenager drivers in their home often visit XL Brokerage Inc. with certain questions on their mind. Many wonder if XL Brokerage Inc. can provide them with insight about their current auto insurance policy and whether teenage drivers should be added.

In a word? Yes. Selden, NY teenagers who are planning to become motorists will benefit immensely from being added to their parent or guardian’s auto insurance policy. Let’s take a closer look at some of the advantages that are gained.

Avoiding Lawsuits

Let’s say that a parent has allowed their teenager to get behind the wheel without being added to the auto insurance policy. It’s just a quick trip around the corner, right? What’s the worst that could happen? A lawsuit could take place as the result of a seemingly minor accident and if these lawsuits are filed against the parent of a teen driver, all of their assets could end up being at risk as a result.

Tracking Their Driving Skills

There is a wide range of policies that allow parents the chance to track their teen driver with the use of electronics. These electronics are not used as a means of surveillance but they do provide the opportunity to collect important data. The insurer is able to find out more the rate of speed that the driver is traveling at and they can also make sure that the teen is not working the brakes too hard.

Student Discounts

Is your teen driver a top-notch student? If so, they may qualify for a good grades discount. There are also discounts available for teen drivers who are heading off to college soon. If the student is not going to be taking the car with them, a parent can save money by requesting a "distant driver" discount.


When Is A Good Time To Reduce Auto Insurance Coverage To Liability Only?

Everyone knows that it is mandatory in most states to carry insurance on your automobile. There is, however, some confusion when it comes to knowing how much coverage you need to carry, and when it is acceptable to reduce your coverage to liability only.

Is Liability Only Right For You?

The general rule of thumb for reducing coverage to liability only insurance is 10 years. This is only a general rule of thumb, and may not be right for some situations. Some things to consider before reducing your coverage include the age of your vehicle, if you have your financing paid off, the value of the vehicle and the amount of driving you do in your vehicle.

Finding The Right Coverage

Having the right automobile coverage is critical to your financial well being and safety. If you don’t carry coverage that is right for your situation, then you may find yourself in an unfortunate situation. Discuss your individual needs and consult a reputable insurance agent. They can help you to determine if reducing coverage to liability only is the right choice. If you live in or around Selden, NY, then you should consult XL Brokerage Inc. to find out if you should change your coverage.

XL Brokerage Inc. is an insurance provider that takes pride in providing excellent customer service for the residents in and around the Selden, NY area. They can help you find options that work for your need and offer insurance products that protect you and give peace of mind. For more information, call or stop by and speak to one of their knowledgeable agents.

Will Your Selden, NY Auto Policy Provide Adequate Coverage if Your Car is Totaled?

If you have ever been involved in an automobile accident where your vehicle is totaled, you may be painfully aware of the limitations that many policies have when it comes to vehicle replacement coverage. If you do not have comprehensive coverage, similar to the protection that an umbrella policy offers to commercial clients, you may be left with an unexpected and unwanted expense if your car is ever totaled.

The agents at XL Brokerage, Inc. serve the greater Selden and Mastic, NY areas and are available to review your auto coverage with you to ensure that all potential eventualities are covered. Clients who acquire full, umbrella-like coverage gain the peace of mind that comes with knowing that their policy will provide the protection that they need.

Depending on your needs, there are policies available that provide full-replacement coverage should your insured vehicle be totaled in a covered event. There are other levels of protection that are available that can ensure that you will not be out of pocket for the replacement costs of your next vehicle. Whether you prefer coverage that will replace the exact model of your current car with the latest model year, or are looking for coverage that will simply provide a safe and reliable replacement vehicle, both are available. In fact, there are options of coverage levels available depending on your needs. We can review the options with you and make sure that you find the appropriate coverage.

If you are a resident of the greater Selden and Mastic, NY areas, the fully trained and helpful agents at XL Brokerage, Inc. are here to help you meet all of your insurance coverage needs. Please call us or stop by today to learn more!

Why You Should have Auto Insurance in Selden NY

Having auto insurance is a requirement of all states of United States, and Selden, NY is not an exception. The primary benefit of car insurance is that it provides you with the peace of mind you need while on the road and that it ensures that you stay on the right side of the law. At XL Brokerage Inc. we provide car owners with comprehensive auto coverage that matches the value of their premiums. Other than meeting the legal requirements, there are more reasons why you need to have auto insurance.

Helps preserve the value of the car

When you have auto insurance, you can easily maintain your car for durability and retain a high resale value. Car owners without auto insurance might at times avoid repairs if they feel like it costs more than they can afford. Having auto insurance coverage ensures that repair expenses catered for, and you will not have to worry about the cost as long as your vehicle is kept in excellent condition.

Proper car maintenance helps to preserve its value, and this ensures that you get a good deal during a resale. Loss of equity from avoiding repairs may cost more than you would have spent on insurance premiums.

Liability protection

You can never predict what will happen to you once you are on the road. No matter how careful you are it could be your unlucky day, and you may find yourself hitting a pedestrian or another individual’s car. In such case, you will be required to pay for the damages you cause to other people. This may include medical bills and funeral cost. Also, if the affected sues you, the coverage helps you pay the legal fee.

Ensure you have auto insurance in Selden, NY and enjoy these benefits plus more. Contact XL Brokerage Inc. today to get a quote and get started.

What Can Happen if You Drive Without Auto Insurance?

Driving without auto insurance is a risk that many people do not want to take. Not only is it required by law in the state of New York to have auto insurance to operate a vehicle, but you can also face some serious consequences if you are caught driving without it in Selden, NY. According to XL Brokerage Inc. these are a few of the things that can happen to you if you are caught driving without auto insurance.

  • You could pay fines. Whether you are caught driving without insurance or someone else is driving your car without insurance, you could face fines that range anywhere between $150 and $1,500 every time it happens.
  • Your vehicle could be impounded. Not only will you face fines, but the officer can even impound your vehicle if they see fit. Additionally, you could potentially go to jail for up to 15 days.
  • Your license and registration could be revoked. This is another very serious penalty but you could have your drivers license and registration taken away from you. This will result in a suspension of your driving privileges and you will have to pay $750 to the DMV in order to get your driving privileges back. However, you will not have the option of paying this fee if your insurance has lapsed for more than 91 days or you have already paid the fee at a previous time in the past three years. You will then have to wait until the suspension period has passed in order to have your license reinstated.  

Now that you know and understand what the risks for driving without auto insurance in Selden, NY are, you are likely thinking twice about opting out of getting it. If you would like a free quote so you can become covered, be sure to contact XL Brokerage Inc. today.

How A Teenaged DUI Can Affect Your Car Insurance

If you are a Selden, NY teen or the parent of a teen who has suffered from a DUI charge, it is important to know how this will affect your car insurance. Unfortunately, there is a chance it could seriously impact your rates for years to come. At XL Brokerage Inc. we can offer you the guidance you need to avoid excessively expensive insurance.

Teenage DUI Charges Can Stick Around

When a teenager gets a DUI charge, it isn’t like other types of juvenile charges that may be taken off their record: it will stick around into adulthood. The seriousness of the crime (especially if it is pursued as a felony) makes it one that courts tend to keep on records. While it is possible in some states to have this charge expunged or removed from a record, most teens will possess them long into adulthood.

The Immediate Insurance Impact

When a teen suffers from a DUI charge, their insurance will likely go up very quickly. Teenage car insurance is very high in general, but a DUI charge may double the cost. This is the kind of cost increase that a teenager simply cannot afford. Unfortunately, this increase, while not as high as it is during the teen years,  may last into their adulthood.

Affect On Adult Insurance

Teens with a DUI on their record are likely to have higher insurance as an adult. Why? Insurance companies consider someone with that charge a risk to insure. As a result, rates are likely to be higher. The longer the driver shows safe behavior, though, the less severe that increase will be over time. That said, the best way to avoid this problem is to simply not drink and drive.

At XL Brokerage Inc. we can provide you with the help you need to get fair insurance and keep it. So if you live in Selden, NY or the surrounding areas, make sure to contact us today to learn more about what we can do.