Posts Tagged ‘Liability Coverage’

Do You Need Car Accident Insurance in Alabama

Published by author on July 28th, 2009 - in Auto Insurance Questions

Reader’s Question:

How important is car accident insurance in Alabama?

Iris

Montgomery AL

Private-owned insurance providers, such as car accident insurance companies, may deserve some of the negative reputation due to their capitalistic ways of seeking out for their own benefits. However, regardless of their unenthusiastic character, they are still important to everyone – especially to those who own cars.

Car accident insurance safeguards you from future liabilities. They act as firewalls for your assets when you get involved into car accidents. You are bound by contract to your insurance company; you pay for your insurance provider now, they pay for your car expenditures later on. There are various car insurance coverage being offered. But, before you settle on a particular coverage, you have to make sure the type of coverage the plan offers.

Liability Coverage. This provides reimbursement for grievance and property damage incurred unto other people – includes medical expenses, loss of income, pain and suffering. Do not confuse yourself with this coverage for there are ground rules to take note. First, this coverage applies to properties or individuals affected by such accident – not you. Second, you must be at fault in order for the company to pay the damages for you.

Personal Injury Protection. This is not obligatory. It does not matter who got affected or what. As long as the accident occurs, this coverage applies to both you and your passenger.

Collision and comprehensive. This too is not mandatory. This covers for the repairs that your vehicle accrues after an accident. Comprehensive coverage covers when your car gets stolen, damaged by flood, fire etc. Collision coverage pays damage when your vehicle is hit by a car or object.

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Do You Need Underinsured Motorist Auto Insurance?

Published by author on May 28th, 2009 - in Underinsured/Uninsured Motorist

Reader’s Question:

I’m new here in Connecticut and I have to get auto insurance ASAP and I just have a question about it. Is uninsured and underinsured motorist coverage required in this state or can you do without it? I just feel that it’s very important for every driver to have it and some other types of optional coverage so I think I’ll get it even if it will not be required.  I really need auto insurance at a very affordable price right now, please give me some pointers.

Luke

Stamford, CT

Several auto insurance carriers in Connecticut are battling against one another to provide the most competitive prices for your auto insurance. You could collect different quotes from several auto insurance carriers with the assistance of their agents and brokers and then select the most appropriate auto insurence for your automobile. For your auto liability coverage, you need to get $20,000 for one individual and $40,000 for all individuals for bodily injuries in one accident and $10,000 for property damage. You may opt to get higher auto insurance coverage to get the best protection for you and your vehicle.

In the state of Connecticut, it is required that you get uninsured and underinsured auto insurance coverage to protect you and the passengers in your vehicle in the event of an accident with someone who doesn’t have auto insurance or someone who doesn’t have enough coverage. The minimum coverage that you can get is $20,000 for one individual and $40,000 for all individuals in an accident. In the event that the auto insurance coverage of the at-fault driver is not enough, you could get your medical and other costs through underinsured motorist coverage.

Though not required, the other types of coverage that you can get for your auto insurance include collision, comprehensive, towing, rental charges, medical payments, etc.

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What Causes Your Car Insurance Premium To Increase

Published by author on May 26th, 2009 - in Auto Insurance Saving Tips

Reader’s Question:

I was wondering how car insurance is calculated by insurers and if you think it would be possible to know your rate based on the information to determine how much or how little a rate may be for a certain individual?

Marion

Philadelphia, PA

Car insurance companies base their calculation on statistics regarding your likelihood to get involved in an accident. These data are acquired by your carrier from government and private sources. Companies will usually classify your risk as:

Preferred: you are least likely to meet a road accident or other incidents that result to damages on your vehicle.
Standard: while you aren’t the safest motorist in town, you are not that awful either.

Non-standard: this tells you to be more cautious with your car because you are very likely to file a claim, something that nobody really wants.

So now you are wondering how come your company thinks you are prone to vehicular accidents. Take a look at the factors below that affect your car insurance rating:

Age

All insurance carriers charge teens higher than more experienced drivers. Statistically, drivers above 25 years old have less accident records than drivers under that age. Drivers aged 50 to 65 are rated the cheapest in relation to age. It is unfortunate that car crashes are the top cause of death for teenagers, especially 16 year-olds.They are three times more likely to engage in a fatal accidents.

Gender

Car insurance carriers are not gender biased-it’s pure statistics. Female drivers meet lesser accidents than male, plainly because males drive 60%-65% more.

Marital Status

Married drivers are granted lower rates because they have lesser claim statistics.

Geography

Car insurers do look into police records, or at least not literally. They charge higher to customers who reside in areas that are prone to theft, fire, and other non-collision related damages.

Vehicle Usage

Cars used for business, e.g. product delivery, are given more expensive rates. The opposite is true for cars used solely for leisure. This is because they are least used and the probability for accident is lesser. Therefore, your work will affect your rating.

Other variables for your car insurance premium are:

  • Vehicle type, make, and model: more expensive means higher rates
  • Education: its pays to take advance driving courses
  • Distance from home to work
  • Years of driving experience
  • Credit record: pays to have a clean one
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Ways To Cut Your Car Insurance Cost

Published by author on May 26th, 2009 - in Auto Insurance Saving Tips

Reader’s Question:

I do not have the budget for continuing my auto insurance. Can I just be safe on the road and will not get car insurance?

Jane

Detroit, MI

No. First of all its illegal to drive without proof of financial responsibility. People want to reduce anything that makes us painfully spend more, including car insurance. Read on and learn ways to save on car insurance.

When shopping for car insurance, always compare, compare, compare. The technology today has afforded us ways on easier insurance shopping. Use your favorite search engine and be on the hunt for car insurance deals that doesn’t make you cringe. Compare at least three or four insurance companies. Cheap doesn’t mean substandard. Don’t let your quest for a good deal be waylaid by shady insurance companies. Do background checks. Does the company have numerous consumer complaints? How is the credit rating looking?

Consider getting all the available discounts. Bear in mind that discounts differ from one insurance company from the other. State laws also differ. Take defensive driving classes, and a 10% is taken from your premiums. Installing safety measures on your car merit discounts as well. Bottom line is, do your homework well. Know your basic state laws; you’ll be surprised how much discount you can avail.

Increasing your deductibles helps. A deductible is the flat amount an insured incurs before the companies make benefit payments. Since insurance is meant to pay the bigger amounts you can’t handle, it is wise to increase your deductibles. This drastically lowers your premium.

Purchasing the right vehicle counts a lot. Check the car reputation before buying anything. Do thieves prefer this car model over the other? How are the repair costs? Should you buy a brand new vehicle? Has a second hand vehicle crossed your mind? There are “safe” cars. The web is a rich source of information. Let your fingers do the work. Research and compare.

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What Auto Insurance Coverage Should You Buy

Published by author on May 23rd, 2009 - in Need auto insurance

Reader’s Question:

Im having a hard time deciding on what car insurance coverage to choose. I need some help on how to determine what car insurance coverage to choose.

Carl

Kansas City, MO

On purchasing insurance, one of the first few things you have to decide on is the auto insurance coverage. The coverage you will opt of must comply with your state’s least requirements. However, you may decide to go above the requirements and obtain further coverage which might serve you well in the future. Reflect on how much you will call for before picking any of the following auto insurance coverage:

1. Bodily Injury Liability

This covers you if you initiate an accident that result in other people’s injury or death. This will also covers you from charges should the injured party choose to take legal actions against you. Since this coverage involves persons, it is quite expensive.

2. Property Damage Liability

This covers you when you damage another person’s vehicle. Same goes if you plow a fire hydrant, a tree, a fence, or any other non-moving object.

3. Collision Coverage

This settles your bills when you car gets damaged in a crash with another automobile and immobile objects as well. You are not obliged by law to obtain this. However, it will help to have personal protection for your vehicle, especially if you are driving a Ferrari.

4. Comprehensive Coverage / Other than Collision

This shields you should your car get damaged from causes other than collision. This covers damages caused by natural phenomenon such as storms, earthquakes, hale, etc. This also protect you from fire and theft. If you are residing in a neighborhood that is prone to theft or natural disasters, expect your premium to be high on this one.

5. Uninsured Motorist Coverage

Assists you if the uninsured passenger in your car obtains injury during an accident.

There are further car insurance coverage but these are the most common and important. Take time to do research and decide prudently which coverage you will avail.

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Need SR22 Car Insurence

Published by author on May 13th, 2009 - in Need auto insurance

Reader’s Question:

I was convicted of driving under the influence and I was told that I need to get SR22 insurance? What is an SR22?

Richie

Chicago IL

If you have been convicted of DUI, the state will require you to file for an SR22 before you will be allowed to drive again. To get your license and driving privileges back, you need to provide the state Department of Motor Vehicle with an SR22 form certifying that you have motor vehicle liability coverage.

Generally, SR22 needs to be maintained for a period of three years. You are not going to file for the SR22 all by yourself. You need to get the SR22 form from your existing auto insurance company. When you go to your auto insurance company to request for an SR22, your company will consider you as a high risk driver and charge you with expensive premiums. If you are convicted of DUI, your car insurance premiums will double and in some insurance companies, even triple. Not all insurers provide services on SR22 insurance filing. So you may want to shop around first and look for car insurance companies that specialize in high risk auto insurance policies. You also need to be sure that you keep your SR22 in file until the DMV tells you that you no longer need to carry it. If your SR22 policy is canceled, terminated or has lapsed your auto insurance company needs to notify the state Department of Motor Vehicles under SR22 laws. If your SR22 insurance is not on file with your state, your driving license and privileges remain to be suspended.

The only way to avoid going through the auto high risk insurance status is to be a safe driver and lessen the number of violations on your driving record over a period of time. Improve your driving habits and work towards getting out of your SR22 status.

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