Auto Insurance Law » Auto Insurance Coverage

California Rental Car Insurance

admin — Mon, 28 Jun 2010 22:04:13 +0000

When someone rents a car, the automobile rental companies hold the renter accountable under the rental agreement for damage to their car. They offer a Damage Waiver at an extra cost. This Damage Waiver is not insurance, but a contractual agreement between the renter and rental company. If a waiver is not purchased, it is important to review your own automobile policy to determine if any extension of coverage applies. Also, establish how the liability coverage afforded by your policy applies in the event you are at fault in an accident with the rented vehicle. In California, you are required to have auto insurance regardless of whether you are driving your own car or if you are renting one.

Rental car agencies do provide wide range of auto insurance coverage and it would not be prudent to blindly select rental car insurance as every policy offers its individual advantages under particular situations. You should examine each policy so offered and judge it against the requirements you have. It would be prudent to discuss the policy with the car rental agent, rather than just read the summary over the website.

Sometimes you are not required to purchase any car rental insurance because you are already covered by your car insurance. Usually, your coverage does remain the same with a rented car as it would if you would be driving your own vehicle. Also, you could be covered by auto insurance coverage under your credit cards. You should check with your credit card company about the coverage to which you are entitled.

Before you rent a vehicle, check the financial and insurance obligation you will face, and find out how these would be covered by your own auto insurance. In case you do need to exercise your insurance policy and realize that certain aspect is not currently covered, you should check if it would be covered under other insurance policies.

By: Eric Morris

Lowest Auto Insurance Rates – Simple Ways To Ensure You Get Them

admin — Wed, 23 Jun 2010 15:38:04 +0000

You really can’t drive in many parts of the US without a mandatory minimum auto insurance coverage. This means that for most people it is a compulsory purchase. However, everyone in their right mind will be happy to pay as little as possible for high quality coverage.

Some have found the secret to paying the lowest auto insurance rates for very high quality coverage. Others have yet to find out and their car insurance policy is putting a big (but avoidable) dent on their personal finances.

If you’re one of those who have been bearing the burden of paying too much, this piece will help you lower your rate by as much as 50% depending on your profile, coverage needs and how lucky you were when you bought your present policy. Here are things to do if you want the lowest auto insurance rates…

Do your utmost to drive carefully. Please, make sure you make it a policy not to drive if you so much as sip any alcoholic beverage. If you’re convicted for driving under the influence (DUI) you’ve said good-bye to affordable rates for a very long time. Even those speeding tickets do add up to make you pay higher rates on the long run. So, if it’s a violation of traffic laws, avoid it no matter how minor it may seem at the time.

And who says your credit rating does not affect your auto insurance rates? Most insurers now take your credit rating into consideration when deciding what you should pay. They claim to have found a correlation between credit history and risk. These insurers claim that they have statistical evidence to show that people who show irresponsible behavior in their finances are almost always reckless on the road.

Finally, do your best to get and compare quotes from not less than five reputable quotes sites. There are over 2,000 insurance companies in the US and no single site returns quotes from a tenth of them. In fact, you’ll typically get rate quotes from about five insurers at each site. The more sites you get quotes from the more your chances of getting the lowest auto insurance rates for your profile

So do your best to get many quotes because the difference between insurers could be as wide as several hundreds or even a few thousand dollars. Give it a try and see how much you’ll save.

By: Chimezirim Chinecherem Odimba

Auto insurance news guide

admin — Tue, 01 Jun 2010 01:22:58 +0000

Auto insurance is another name for security of your vehicle. As the name suggests auto insurance is all about insuring one’s vehicle against all kinds of threats for instance theft, accident and other related dangers. The basic types of auto insurance coverage are -

1. Bodily injury liability, which provides coverage for bodily injury claims from the people who might get injured in an accident with your vehicle.

2. Property damage liability covers any property damages to third parties such as another person’s car you damaged or are responsible for.

3. Medical expenses to the policy owner and other passengers in the policy owner’s car.

4. Uninsured and underinsured motorist coverage saves the negligent driver with or without insufficient insurance. In most states, this covers only bodily injury losses while in other cases property damage losses are also included. However it is quite important for everyone to get this coverage because it protects us from all expected as well as uninvited problems. For instance at some places an uninsured motorist caught driving with a suspended license in a car with a revoked registration goes to jail.

5. Physical damage stands for damage to your car that can be through accident or any other means such as collision, storm etc. In this the collision coverage pays for the physical damage caused to a person’s vehicle through collision.

However prior to purchasing an auto insurance policy there are quite a few things, which should be borne in mind. For instance- shop for the best policy available, always ask for high deductibles, check the insurance of the car or any other vehicle prior to purchasing it, coverage of the car varies with its worth, the profile of the company through which you will buy the insurance and last but not the least go with a low cost auto insurance for instance at places such as Santa Clara, San Marino Mateo and Alameda counties low cost auto insurance has arrived at premium rate of $322 and $355 respectively.

Whereas the auto insurance rates are concerned the American Farm Bureau suggests that the insurance rates for a driver should be based on the risk of that the driver should be based on the risk that the driver confronts for having an accident or loss and since rural drivers in the rural areas are less prone to risks, they should not be asked to pay more for their auto insurance.

In California there is a debate over the auto insurance policy rates. While on the one hand due to the rules offered by California Department of Insurance the rates of auto insurance are expected to touch the sky, on the other hand the California Farm Bureau strongly opposes it and claims that the new rates presses rural residents to shell out more money in order to subsidize the cost for urban residents.

However nowadays auto insurance companies are troubled with excess of crime or fraud in this area. Lately in North Carolina thirteen people were arrested accused of staging motorcycle wrecks to collect insurance money. Many such cases are reported in other parts of the world. As a result the government of different countries is looking for ways and means to combat the crime situation.

By: Mansi Aggarwal

Lower Auto Insurance Rates – New Ballot Could Reduce Rates 20%, Causes Insurance Comp Unrest

admin — Sun, 30 May 2010 06:35:46 +0000

Wisconsin is currently facing a large debate over whether automobile insurance rates should be slashed by 20% in accordance with a new law that may be passed soon. The petition for the law is attempting to force insurance companies to reduce automobile insurance rate while backers are currently out on the streets seeking 304,000 signatures to get it on the next voting ballot. On the opposite side, insurance companies highlight the disadvantages that could result from such an action such as increasing the unemployment rate and decreasing service quality for all customers. For perspective, reports have come in from East coast big-hitter New York State that automobile insurance rates have already declined 20.3% in 2009.

While it is a fact that people in New York are tending to pay much less for their auto insurance coverage than before in all actuality New York drivers are only roughly saving 2% more than the national rates, referring that now the average auto insurance rates throughout the U.S. Has declined 18.1% in the past year. Studying the statistics we can note three key features features that may affect rates for you in particular:

In regard to gender, men in virtually all states are more willing to pay more on average for auto insurance than female drivers, on average paying 12% higher rates throughout the year. In regards to age, most car accidents happen with a young driver who does not have as much driving experience. Teenagers typically pay insurance rates roughly 100% higher than drivers aged 60 to 74. As a fact, among all the states, New York is the 5th most expensive state to pay for automobile insurance while Wisconsin who is currently facing the large insurance debate comes close to the top as well. Usually the average median annual income of New York is $42,414 while six-month median automobile insurance costs $970.25 a year, therefore this takes up approximately 4.58% of a New York driver’s gross income. Currently, Massachusetts is the most affordable state with a factor of 1.96%, while Louisiana is the most expensive state with a factor of 6.70%. Wisconsin falls between these two, but leaning more towards Louisiana than Massachusetts. Despite of the uproar from insurance companies most people still support the petition and there are currently thousands of people giving their signatures in support every day. If the number increases at this step making the insurance companies reduce auto insurance rates is just the matter of time. If they really succeed in the future and the legislature does not address it or reject it the measure would go before voters in November 2010. For low-income families this means affordable automobile insurance is just around the corner, and to keep best informed on what is happening now visit various online insurance websites [http://insurethepoor.com/] that can help you find providers and options in your area that can help you save money now.

By: Marcel A Johnson

Colorado Auto Insurance Minimum Coverage Requirements

admin — Tue, 11 May 2010 20:02:59 +0000

Are you aware of the Colorado auto insurance minimum coverage requirements? The minimum levels of auto insurance coverage requirements are set by CO lawmakers. Driving without the required insurance is a very serious matter and can result in penalties and unwanted hassle.

Bodily Injury Liability

As a Colorado driver, you must have at least $25,000 in individual bodily injury liability insurance in place. This type of insurance pays for the medical expenses of a person injured in an automobile accident where you are considered the at-fault driver. Your policy must also have a cap of at least $50,000 to pay the medical bills for two or more people injured in the same accident.

Property Damage Liability

The property damage liability portion of your policy pays for damage caused to objects, such as the other driver’s vehicle, a mailbox, a fence, or a shed. The minimum level of coverage required by law in CO is $15,000.

Please keep in mind that the minimum levels of insurance coverage set out here are just that. Drivers in Colorado do have the option of buying more coverage if they want to. Before you make a decision about what level of coverage to buy, you will need to keep in mind that if you at the at-fault driver in an accident, you will be responsible for paying for damages above your policy limits.

It makes more sense to insure your vehicle properly and not take the chance that you will have to consider tapping into your savings or liquidating your assets after an accident. Your insurance company or agent can help you to figure out how much coverage you should have in place.

Find Colorado Auto Insurance Coverage Today

Now that you know what the Colorado auto insurance minimum coverage requirements are, why don’t you get take the next step and make sure you have enough protection for your needs? Spend a few moments comparing rates from some of the top companies and you can be on your way to the best Colorado car insurance in a jiffy!

By: James J. Robinson

Auto Insurance – Arizona Goes Tough on Uninsured Drivers

admin — Sun, 02 May 2010 22:10:05 +0000

If you have been driving around Arizona without auto insurance coverage, then be aware that you may be in for a rough time as the state has taken a tough stance on this issue. It’s no more business as usual.

Starting from 1st of October 2009 the bill simply called HB2224 was put into effect. The main gist of it is that there was no more leniency for drivers driving without the basic insurance cover. Cases that were hitherto dismissed or reduced would receive full punishment which would range as follows:

$720 for a first offender. $970 for offending a second time, and for the old timer (offending a third time) a fine of $1200. That’s not all. This third time offender would also get a one year license suspension. To be sure the lesson has been thoroughly learnt, you would need to file an SR22 documentation which you would of course also file, showing your present car insurance coverage and your coverage for three years ahead. Without these, the license would most likely remain suspended.

Have really taken time to look at these figures and facts? Is it worth risking? Car insurance is as much for your good as it is for the other driver. If you are in Arizona and you have not taken out an auto insurance coverage, now might be your best chance of getting a good, cheap coverage.

Your auto insurance coverage doesn’t have to be so expensive. Get quick auto insurance quotes today and begin to compare them to find a cheap coverage. Quick auto insurance quotes help you find that insurer who would give you the coverage you need at the lowest rate.

Be covered, stay covered and stay away from the long arms of the law.

By: Chimerenka Odimba

Liability Auto Insurance

admin — Fri, 30 Apr 2010 09:33:55 +0000

Auto insurance is a contractual agreement between you and your insurance company. To acquire an insurance policy, you must pay an what is called a yearly “premium” to your insurance company. In exchange for the premium, the insurance company agrees to pay for certain types of financial losses when you are involved in an auto accident while driving your car. These financial losses include items such as property damage, medical coverage, and legal fees.

Driving without auto insurance is not only risky; it is against the law. If you are caught driving without auto insurance, you may have your license suspended, face severe fines, or – in the case of an auto accident, you can potentially go to jail if your car is not properly insured at the time of the accident. Car insurance is a necessary evil, and although we may get frustrated with having to pay for it, the fact is we need it. Auto insurance is a “cost of driving” that simply cannot be avoided.

The absolute minimum auto insurance coverage you are required to carry varies from state to state. This minimum coverage is generally referred to as “liability insurance”. This insurance covers bodily injury and property damage.

When quoting or discussing liability insurance, there are three numbers that are used to describe the policy limits. The first number refers to bodily injury limits, the second refers to total medical liability coverage, and the third number refers to property damage limits. For example, a 15/50/20 liability policy is defined as: fifteen thousand for
personal medical liability per person, fifty thousand maximum medical liability coverage, and twenty thousand maximum property damage liability.

Bodily Injury Liability covers injuries that occur to you or any other person involved in an accident when it has been determined that you are the “at fault” driver. Typically, this also covers you while you are driving another person’s car (with their permission of course) or when someone else is driving your car (with your permission).

Property Damage Liability covers the cost of damage you cause (or a person driving your car with your permission) to someone else’s property in an accident when it has been determined that you are the “at fault” driver. This refers to damage caused directly to someone else’s car and also covers damage to city property (light posts, telephone poles, fences, etc) and other structures such as houses, apartment buildings, etc.

The minimum liability limits set by your state are low. It is highly recommended that you purchase a liability limit that is much higher than the state minimum in case a third party sues you for amounts above and beyond your insurance policy’s maximum coverage. Although purchasing your state’s minimum liability insurance allows you to legally register and operate your car, it is recommended that you acquire at least five times the minimum liability limits set by your state. This helps protect your assets such as your personal savings, your home equity, your personal property, etc. Depending on your total assets, you may wish to purchase even higher liability limits. You should check with a licensed insurance agent to determine the proper liability limits for your insurance policy. He or she can help you determine limits based on your assets and lifestyle.

Liability insurance can be costly for young drivers or for drivers with a poor driving record (accidents, speeding tickets, etc.) When acquiring insurance for a teenage driver or for someone with a poor driving record, you should check with your state’s Department of Insurance. They might have programs to help drivers purchase liability insurance at a discounted rate. For example, at the time of this writing, the State of California’s Department of Insurance has a low-income, liability insurance program that can be purchased for approximately $400 per year.

By: Christian Rios

Auto Insurance – Proven Ways of Getting Cheap Rates

admin — Wed, 21 Apr 2010 12:24:34 +0000

We have since passed the stage where we begin to ask if we really need auto insurance. Today, hardly is there any state without a minimum coverage required by law. So rather try to beat the law, focus on getting this much needed coverage at the best rate.

It is very true that a lot of people would rather use the funds they have for other things. However, since we need our auto insurance coverage, let’s see two proven ways to get this coverage at the most affordable rate.

The first method is talking with an insurance agent. An insurance agent would help you get quotes from top insurers in your area from which point, you can decide on who you want to go with. The major down side to this method is the time it would take especially in this age where there is a much faster alternative. If you have all the time to move around, then by all means, take this route.

This second method is for those who do not want to waste all the time on this issue. With the internet, you can simply visit a quotes comparison site and you would receive quick auto insurance quotes from several insurers. These quick auto insurance quotes would give an insight to the cost the coverage you have chosen costs with each insurer whose quotes you have received. For better effectiveness, get quick auto insurance quotes from up to 4 quotes comparison sites.

It is very interesting and sometimes unbelievable to know that this task that would take you just a few minutes to complete can save you hundreds of dollars every year on your car insurance policy premium.

By: Chimerenka Odimba

Comparing Auto Insurance Coverage – Liability Or Full Coverage?

admin — Fri, 12 Mar 2010 00:15:28 +0000

If you are a first-time driver, locating reasonable auto insurance can be one of the major challenges after the initial purchase of your car. There is no shortage of car insurance companies standing ready to offer you competitive rates as well as different kinds of insurance policies. There are two types that are most readily used by motorists: liability and full coverage. These two types of coverage represent the bottom line. Any other particulars of certain policies are built off of these. What are some of the differences? Is one better than the other?

Each state has its own guidelines and specific provisions that govern the use of car insurance. The regulations declare what minimum amount coverage is required by law. If you want to drive legal in most of the states, you will need liability insurance coverage. Liability insurance coverage provides the motorist protection against damage and injuries which were caused by you, including property damage.

This type of coverage is described in terms of numbers. Each of these numbers represents the components of the liability coverage. They are written like so: 20/60/10. The first number is the maximum amount your insurance company will pay to cover bodily injuries sustained by a single person, per accident. The second is the maximum amount that your insurance provider will pay for every injury caused by a single accident. The third number is the total amount that will be paid to cover property damage.

With full coverage you have far more provisions available to you. Yet there is a misconception that if you have “full” coverage, that all circumstances will be covered. This is not true. Full coverage includes two additional areas or components of insurance coverage besides liability called collision and comprehensive. Full coverage has a degree of flexibility about it. You do not necessary need both of these additional components. For example, comprehensive can be added by itself. In order to have to collision coverage you must have comprehensive.

With comprehensive coverage you have protection against other forms of damage such as those that come from natural disasters, fire, vandalism, and theft. For those who add collision coverage, they do so because they want protection in auto collisions.

There are clear differences between liability and full coverage. What type you decide to purchase depends on different factors like whether your car or truck is new, used, or under financing. It may also be a matter of how much coverage you want to buy. The costs will be higher if you opt for fuller coverage rather straight liability. If there are other features or special areas of coverage provided by the individual auto insurance provider, you may decided to pay for some parts but not others.

It is important to understand what type of coverage you need as well have a working knowledge of other types of coverage available and what each one offers you, the motorist.

By: Joseph Kenny

Auto Insurance and the Uninsured Motorist

admin — Fri, 26 Feb 2010 17:48:52 +0000

Auto insurance is actually a great thing. I realize it gets old when you’re required to purchase anything – especially insurance you might not even use. Since you’re required by law to purchase auto insurance anyway – you should take a serious look at purchasing uninsured motorist insurance.

Often, the extra coverage doesn’t add much money to your policy – but the consequences of not owning uninsured motorist with your auto insurance policy could be devastating.

Just as people are legally required to obey the speed limit – often folks make the choice of exceeding that speed limit…..right? Well, just as auto insurance is required by law – sometimes people make foolish decisions to drive without auto insurance – the uninsured motorist. It happens – don’t be fooled. Every day people drive without proper auto insurance coverage. Sure, they’ll most likely get caught sooner or later. But think about the potential consequences to you if they happen to cause an auto accident – causing serious damage to your vehicle?

Will your auto insurance policy cover the damage to your vehicle? If you only have liability auto insurance – your coverage will probably only apply when you cause an auto accident and damage to another person’s vehicle. This means the uninsured motorist will have caused serious damage to your vehicle – and nobody is going to help you fix your auto. Sure, you can try to sue this person – however, if they’re driving illegally – without any auto insurance – you probably won’t be able to get a dime out of them anyway. Not good!

This is why I would recommend you take a look at your auto insurance policy and check to see if it covers damage from the uninsured motorist. If your auto insurance policy doesn’t cover uninsured motorists – you should ask how much money it will cost to add this coverage. It might only cost a few dollars extra per month.

E Lawrence Welch

By: Edward Welch