April 21, 2011

How Auto Insurance Rates Have Been Affected By The Tsunami

What the recent Japanese tsunami might do to your auto insurance rate doesn't appear to have settled out yet. There are some indications that international rates will go up. That's easy to see when one considers the devastation that shows up nightly on news programs. For the auto insurance industry the many hundreds of cars and trucks floating aimlessly with the powerful sea surge means one thing: many millions of dollars will be needed to make things right.

Cheap auto insurance seldom covers damage caused by most natural catastrophes. But the solution to this problem is for those seeking a less expensive auto insurance rate to make sure nature's onslaughts are part of the policy's coverage. If that isn't done up front, you have no one to blame but yourself if a falling tree demolishes your car.

Japan's auto-making industry has taken a huge hit. The tsunami put a real slowdown on producing cars. That apparently is giving Japanese car makers a reason to increase prices on vehicles right off the assembly line because there aren't enough to go around and satisfy worldwide demands. If that trend takes hold, not only will Japan be selling cars for more money, but other auto industry leaders could seize the opportunity to make a little extra on their own products as they take up the slack created by Japan's tsunami.

Another expense connected with the tsunami concerns the many man-hours it will take to sort out all the insurance claims that will be filed. Insurance adjusters can count on long days and few days off as they plow through the process of explaining to claimants exactly what they are entitled to for the damage done to their cars. Somebody has to pay for the mess left by the ocean surge, and international rates charged by insurance companies are likely going to reflect that financial certainty.

In the U.S. there are millions of vehicular accidents each year. Cold weather is blamed for a substantial number of those mishaps, and figures show that more auto insurance claims are filed in winter months than at any other time of the year. It's wise to conduct a cold weather check on your car insurance policy to ensure that you are covered sufficiently, in line with your financial status. Mother Nature doesn't necessarily have to create an earthquake to create a disaster. Icy roads and careless driving attention can be deadly. The recession has produced fewer accidents in recent months. But that hasn't prevented auto insurance rates from climbing. Drive safely to help keep your rates on an even keel.