Auto Insurance Law » Bodily Injury Liability

Auto Insurance Simple Basics

admin — Sat, 05 Jun 2010 19:32:38 +0000

Auto insurance helps cover expenses caused by an automobile accident. You sign a contract with the insurance company that describes what type of expenses are covered and how much money they will pay. The cost for auto insurance is a premium which you pay to the insurance company. So you pay the insurance company money to help relieve you of the expenses of an accident should you have one.

Car insurance provides multiple types of coverage. Property coverage covers the damage or theft of your automobile. Liability covers your legal costs for damage to other people or their property. Medical coverage pays for the cost of injuries and rehabilitation. These are just a few types of coverage that an auto insurance policy can cover. You can learn more by talking to a car insurance company.

Most states today require that you have some type of auto insurance before you can legally drive. If you are financing a car, the lender will also require you to have insurance so that they get the rest of the car paid off in case it is in an accident. Vehicle insurance policies last anywhere from six months to a year, and you will get notified via mail or e-mail whenever your next premium is due.

Automobile insurance policies cover all types of expenses, and the amount you payee for each premium will be determined by what coverages your policy covers. Here are the 3 basic types of coverages an automobile policy may have.

Bodily Injury Liability

This type of insurance coverage pays expenses that you cause to others in an accident. You and any family members listed on the policy are also covered if you are driving someone else’s car with their permission. You want to be sure to have plenty of liability insurance because if you cause a serious accident, you may be sued for quite a bit of money. This is one area of coverage that you do not want to skimp on when it comes to auto insurance.

Personal Injury Protection (PIP)

But get coverage pays for injuries to the driver or passenger of the ensured car. It can cover any thing from a medical payments to lost wages to funeral costs.

Property Damage Liability

This liability coverage will pay for damage that you cause to someone else’s property. This could be damage to another person’s car, house, fences, buildings, livestock, etc. Basically if you damage it in an accident, property damage liability should cover it.

These are 3 of the 6 types of auto insurance coverages you should have and make sure that you get with your policy.

By: Christopher M. Hall

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

Minimum Levels of Required Auto Insurance

admin — Tue, 18 May 2010 09:45:43 +0000

All 50 states have different requirements when it comes to budget auto insurance. In some states, motorists can’t register a car without showing proof that they have liability insurance, while other states use an “honor system” that doesn’t ask for proof of insurance until drivers have accidents or tickets on their records.

Only two states do not require motorists to carry liability coverage, but those that do demand that drivers purchase at least the state’s minimum. In other words, if you live in a state that requires liability insurance, you can’t walk into your insurance agent’s office and buy only $2,000 worth of liability coverage. If you’re going to buy it, you must purchase at least the minimum amount required.

How to Read Liability Limits

The following information will help you understand the table of liability limits.

First number: bodily injury liability maximum for one person injured in an accident.

Second number: bodily injury liability maximum for all injuries in one accident.

Third number: property damage liability maximum for one accident.

The Insurance Information Institute provides a chart of minimum insurance requirements by state, including uninsured motorist coverage. So, looking at their table below, you find that in Alabama the minimum liability limits are $20,000 for injury liability for one person in an accident, $40,000 for all injuries in an accident, and $10,000 for property damage in an accident.

What is No-Fault?

Some states have “no-fault” laws, meaning your auto policy must pay medical bills for injuries suffered in an auto accident regardless of who caused the accident. The laws were enacted in an attempt to reduce auto-injury fraud and keep car insurance costs down.

By: Amy Danise

The Requirements for New York Auto Insurance

admin — Thu, 13 May 2010 07:27:55 +0000

To obtain New York auto insurance, it takes quite a number of requirements to be fulfilled. These requirements are in place to make sure that both the insured and insurer are fully covered for various practical aspects and scenarios that might result from owning a car, and having something happen to the insured in the process of using the car, whether driving or simply being a passenger. To enforce these requirements, the law in New York City demands that they are followed strictly by anyone who wishes to have a car in his or her name, and any ownership will be refused legally if the conditions are not met. It is advisable to consult an auto insurance specialist in New York while shopping for cheap online auto insurance in this state.

What are the important requirements that the law has in place for aspiring car owners in New York? These drivers will need to ensure that they have at least the five different coverage or policies in place to protect their own interests, which are for Property Damage, Bodily Injury liability and Death, Economic or Well-being Loss also known as No-fault Insurance coverage, Personal Injury Protection, and Uninsured Motorist Protection. If a driver does not meet these requirements by missing out on any one, their hopes of buying and owning a car will be dashed. While the sheer coverage required might seem over the top or plain preposterous, they were introduced for a reason, which is primarily to protect the car owner and his or her immediate family.

What is coverage of property damage? It is to protect any owner of a property or belonging that might be damaged as a result of the accident caused by the insured car owner’s automobile. While this might seem less relevant to the protection of the car owner, it might actually protect him or her from having to shell out more money in the event of being sued or having to pay over-assessed damages demanded by the property owner. In light of such possibilities, the state laws require that the minimum coverage for such a plan is not less than $10,000. Many car owners baulk at the amount, but on hindsight, it might be reasonable considering the potential of large scale property damage from a car accident.

It is common fact that car accidents normally cause human injuries or fatalities. Thus, it is common sense to include Bodily Injury liability and Death coverage in any insurance plans for car owners. These injuries or death caused to another party are often irreversible, and large amounts can be claimed by them in each event. Moreover, the traffic situation in New York City is also a hotbed for accidents with the dense car population and traffic flow. The coverage required for this category is therefore wide ranging and high in value. For example, a minimum coverage of $50,000 is mandatory for death of a person resulting from the accident, while the same amount if necessary in the case of two or more individuals who suffer injuries following the accident. Again, the numbers are huge and seem unnecessary, but hindsight can quickly reason the figures out.

A very important coverage required by New York auto insurance is that of Economic and Well Being Loss cover, also known as No-fault coverage, as this protects the car owner from potential financial oblivion as a result of claims from the injured party who demand compensation as a result of an inability to support him or herself due to the injuries sustained from the accident. The coverage can be quite substantial, as it extends to primary economic loss benefits of not more than $50,000 for the individual in question. Imagine having to compensate someone without an auto insurance plan to assist you in such a situation. You could face possible financial ruin as a result of having to support someone else’s livelihood for any amount demanded by a court ruling. Having coverage in place can soften the blow considerably, and is a well advised required by the New York State.

In the case of the car owner encountering injuries or any physical harm as a direct result of the accident, having a Personal Injury Protection plan will help to cover the medical cost required for treatment and any related procedures. The coverage also extends to any passenger present in the car during the course of the accident. The sum required is not less than $50,000 and is one of the most important requirements for any car owner. The final requirement for Uninsured Motorist Protection is an important coverage for the car owner in the situation whereby the other driver involved in the accident is at fault but unfortunately, uninsured. It is to protect yourself and can be extremely helpful in such situations whereby you will not be covered by the uninsured party for any injuries or other loss of income resulting from the accident. If this coverage is not in place, you will likely have to suffer financial loss without any possibility for compensation unless a complicated and tedious legal process is taken up.

By: Tim Cahill

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

Car Insurance in New Jersey – Know the Basics

admin — Wed, 05 May 2010 02:02:23 +0000

Auto insurance is mandatory in New Jersey, but the type and cost of that coverage can vary considerably. Every day, consumers are finding that there are options available to make it easier to comply with the law. The New Jersey Automobile Insurance Cost Reduction Act mandated that a basic policy be available to all drivers.
It is essential to realize that you are breaking the law if you drive uninsured. The penalties for driving uninsured are getting more severe – in addition to risking economic loss by not having insurance protection, you risk fines, suspension of driver’s license or registration and even time in jail. In the future, your car could be impounded if you are caught behind the wheel without coverage.

The Basic Policy should be considered by those with few family responsibilities and few real assets. It can provide a transition for younger drivers who are just beginning work, providing a basic, minimum protection when they may be least able to afford more comprehensive coverage.

Let’s review the New Jersey auto insurance Basic Policy. The Basic Policy offers less protection, but at a lower cost than the Standard insurance policy.

Bodily Injury Liability

Coverage for claims and lawsuits by people injured as a result of an accident you cause. Coverage is not included but $10,000 coverage for all persons, per accident is available as an option.

Property Damage Liability

Coverage for claims and lawsuits by people whose property is damaged as a result of an accident you cause. Coverage of $5,000 per accident is provided.

Personal Injury Protection

Coverage for injuries sustained in an automobile accident by you or other persons covered under your policy. Coverage of $15,000 per person, per accident and up to $250,000 for permanent or significant injury is provided as defined in the policy.

Uninsured/Underinsured Motorist Coverage

This type of coverage would pay for property damage or bodily injury if you are in an accident caused by an uninsured motorist (a driver who does not have the minimum level of insurance required by law) or a driver who is insured, but who has less coverage than your underinsured motorist coverage. This is not included in the Basic Policy.

Collision

Coverage for damage to your vehicle as the result of a collision with another car or other object. This coverage is not included in the Basic Policy.

Comprehensive

Coverage for damage to your vehicle that is not a result of a collision, such as theft of your car, vandalism, flooding, fire or a broken windshield. Comprehensive coverage also pays if you collide with an animal. This also is not included in the Basic Policy.

Collision and comprehensive coverage are available as options on policies issued through PAIP (Personal Automobile Insurance Plan) or on voluntary policies issued by some insurance companies. This is very significant for anyone who has a vehicle loan or lease that requires such coverage.

Another affordable car insurance option in New Jersey is the Dollar a Day Auto Insurance Policy or theSpecial Automobile Insurance Policy (SAIP). This is a new initiative to help make limited auto insurance coverage available to drivers who are eligible for Federal Medicaid with hospitalization. Such drivers can obtain a medical coverage-only policy at a cost of $365 a year.

People who are currently enrolled in federal Medicaid with hospitalization are eligible for the Dollar a Day policy. You are eligible if the Card Run Identifier on the upper left of your Medicaid ID card has an asterisk “*” after the code and “SAIP” is printed on the lower right of the card.

The SAIP policy can be obtained at most insurance agencies. There are two payment options: $360 if you pay up front or $365 in two installments.

The policy covers -emergency treatment immediately following an accident and treatment of serious brain and spinal cord injuries up to $250,000. It also provides a $10,000 death benefit. It does not cover -outpatient treatments such as doctors’ visits covered by Medicaid, damage you may cause to other persons or property, or damages to your own car.

The policy only covers those enrolled in Medicaid. If there is one car and several people in the household enrolled in Medicaid, they can all be covered by the same policy. However, there can only be one car per policy.

To apply for this policy, bring the driver’s licenses for all operators of the vehicle to be insured and the vehicle’s registration and your Medicaid identification card that shows that all persons to be covered under the policy are enrolled in Medicaid.

Remember for both of these types of New Jersey car insurance policies, if you do not have any liability coverage; you are responsible for paying for the personal hardships and some economic damages, such as lost wages, that you cause. The insurer will not provide or pay for a lawyer to represent you if you are sued. Your assets will be at risk, including the risk of having money deducted from your wages if a judgment is entered against you. And, if you lack coverage and someone hits you, you cannot sue.

By: Marie Wakefield

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 Accident Attorneys, Serious Injury, and Personal Injury Law in New York State

admin — Mon, 12 Apr 2010 23:06:04 +0000

Auto accident attorneys in New York State know there’s something special about car accidents. Article 51 of the Insurance Law says car crash victims have to show they have a serious injury before they can get any money for pain and suffering. What does this all mean?

It means very little when it comes to medical bills, lost wages, and some other relatively minor items. New York No-Fault law guarantees that the injured person will be compensated in these areas. The insurance company for the car you were in should pay for your medical expenses and lost wages. In nearly all cases you will not need a lawyer. While we are starting to see insurance companies unreasonably refuse to pay in some instances, this is still rare. Also, for most of these denials, the amount of money involved is not enough to justify the legal expense. We advise our clients when it comes to any No-Fault denials, and in cases where the problem is substantial, we do represent them. Usually we fight the denial in an arbitration.

The auto accident serious injury threshold is a compromise, in theory at least. Since routine expenses were covered by the personal injury protection line of insurance under No-Fault, liability expenses were supposed to be reduced on the bodily injury liability line. There could be a vigorous debate about whether this compromise was wise or fair, but someone else can write that article.

The standard for what is a serious injury is fairly complicated. There are several categories of serious injury. The most common that we see involve fractures, other injuries that cause a significant limitation, or a substantial amount of time out of work.

You would think the fracture category would be pretty straightforward. In most auto accident cases it is. But there are a few kinds of fractures where it’s not so clear. Court decisions suggest that a fracture of a bone meets the criteria. Fractured cartilage normally will not qualify, and the same is true of a fractured organ. We had one case with a “liver fracture.” Sounds odd, but that’s what the doctors called it. The case settled so we never tested that in Court. The other issue is when is a fracture a fracture? A hairline fracture counts, but a “greenstick” fracture does not.

The significant limitation category has led to hundreds of cases discussing when a limitation is significant, and what the injured person has to prove to show it. The defendant’s attorney will often move for summary judgment to dismiss the case. After having the injured person looked at by their own doctor in an independent medical examination (also known as an IME, and many of us dispute the use of the word “independent”), the defense attorney submits the expert’s report which generally indicates the injured person is fully recovered. Then the plaintiff’s auto accident attorney responds, usually with a report from the treating physician, describing the details of the injury and why it is, or was, significant. If the plaintiff’s response is insufficient, the case often gets dismissed. To avoid this, the evidence must show that the injury was more than mild, minor or slight, and that this is connected to objective findings (like an abnormality on an X-ray or MRI, or in many cases a finding of spasm.

The category about being out of work is known among attorneys as the 90/180 category. This refers to the law which requires that the person be impaired from substantially all of their daily activities for 90 or more days out of the 180 days following the accident. Most of the time this means three months out of work in the six months after the accident happened. Responding to a motion, the plaintiff attorney must show, through medical evidence, that the person had to stay out of work for the three months, and that this was connected to objective medical findings.

For both of the latter two categories, we often win the motion by pointing out a key flaw in the IME. In most cases the IME doctor does not discuss much about the past problems and treatment. We argue that this means the defense did not meet their burden on their motion. They didn’t show the Court that the limitation was not significant, or that the time out-of-work was inappropriate, because the IME doctor doesn’t discuss those issues. In our experience, most judges understand this and keep the case alive.

There are other categories and a number of other complex issues that can come up in car accident cases involving the serious injury threshold, but that’s a good start.

By: Warren Redlich

Florida Car Insurance Requirements

admin — Tue, 16 Mar 2010 02:28:06 +0000

Florida state law requires all drivers to carry Bodily Injury Liability Coverage; Property Damage Liability Coverage; and No-Fault Coverage.

In Florida the required minimum coverage for Bodily Injury Liability is:

• $10,000 per person injured in any one accident

• $20,000 for all persons injured in any one accident

The State of Florida also requires No-Fault Coverage which provides benefits (in a minimum amount) paid out regardless of fault. Per Florida statute drivers must purchase insurance which provides for Personal Injury Protection (PIP) with a limit of $10,000 per person for medical and disability expenses and $5,000 per person for death benefits. It should be noted that if monetary damages total less than the PIP monies issued, the policy holder will have no tort claim. A lawsuit may be brought, however, if the monetary damages are in excess of the PIP monies issued as well. A lawsuit may also be brought if there is any permanent injury; permanent loss of a vital body function; significant and permanent scarring and/or disfigurement; and death.

Consumers have the option of purchasing Uninsured Motorist Coverage which also includes Underinsured Motorist Coverage. If this choice is made, the UM must be in an equal amount to the Bodily Injury Liability Coverage unless a specific rejection has been made.

By: Elizabeth Newberry

Mandatory Auto Insurance For Drivers

admin — Sun, 07 Mar 2010 13:57:57 +0000

It is mandatory to have MI auto insurance if you drive a car. This type of mandatory insurance is necessary to cover any damage to another car or person that may have been hurt in an accident. Who pays for damages is determined by using the no fault system. Other states may use the tort system.

For a no fault system the insurance company will pay for any damages no matter who caused the accident. If for some reason you are in an accident and feel that you should not have to pay then you can sue the person that was responsible for the accident.

In Michigan it is required that you have the mandatory insurance that is required by law. For bodily injury liability the minimum coverage you need is twenty thousand dollars for each person in the accident and the total coverage per accident you need is forty thousand dollars. The property damage coverage you need is a minimum of ten thousand dollars.

Property damage and bodily injury can amount to millions of dollars so this minimum coverage is just that the minimum. It is recommended that you have more coverage then the minimum so you will insurance for all costs. There are other types of insurance you can have to cover lost wages and medical bills. This type of insurance comes under personal injury protection insurance.

There are some things you can do to get good insurance coverage without paying a fortune in insurance premiums. You can buy several insurance plans from one company, such as bundling your home insurance, car insurance and more. All insurance companies will give you some kind of a discount when you do this.

Also having a good driving record will result in lower premiums. There are two things you can do to subtract points form your driving record if you have ever been in an accident or gotten a ticket. You can attend a driver’s education class or take a defensive driving class. The cost of these classes is minimal but you will save a lot of money on your insurance.

The type of car you drive will also affect your insurance. If it is very difficult to get parts for your car or only a limited amount of models were made then you can expect to have very high car insurance. Older cars that are more common and easier to fix will have much less expensive insurance.

By: Felix Fassbinder