Auto Insurance Law » Collision Insurance

New York Car Insurance Quote Basics

admin — Wed, 30 Jun 2010 15:05:18 +0000

Moving brings lots of new challenges, particularly if you’re moving to a new state. If you’re new to the state of New York, you need to know all the ins and outs on important laws and regulations, including finding out all about a New York car insurance quote. You might get a little sticker shock moving to New York as their rates are a bit higher than the national average. But, there are always ways to save money on your New York car insurance.

New York has a “no fault” law, which means that, in general, each party’s insurance pays for their injury claims in the event of an accident, regardless of who caused the accident. For this reason, all drivers in New York must carry Personal Injury Insurance (PIP) in the amount of at least $50,000. Your PIP insurance will cover medical expenses, loss of wages, loss of services, and offers a death benefit.

In addition, New York drivers must also carry liability insurance to pay for property damage and bodily injury to the other party in the event that you are at fault in an accident. The minimum on liability property damage insurance is $10,000. The minimum on bodily injury is $25,000 per person or $50,000 per accident. In addition, New York car insurance laws require that you carry a minimum $25,000/$50,000 in uninsured motorist coverage, too.

Overall, New York car insurance typically costs the average driver about $400 per year more than the national average. This is due to the combination of higher limits being required by law and the fact that drivers are required to carry liability insurance to pay for the other party along with PIP insurance to pay for their own medical expenses.

In addition to carrying the New York car insurance required by law, you may also want to consider adding other coverage, such as collision insurance. Though your PIP insurance covers your injuries in an accident, without collision, you’ll have no insurance coverage for your vehicle in the event of an accident that you cause. Collision will cover your vehicle’s repair or replacement. In addition many drivers consider adding comprehensive insurance. Comprehensive insurance covers your vehicle for damage caused by fire, natural elements, vandalism and theft. You may also want to add items such as rental car coverage and roadside assistance to your policy.

Because rates on a New York car insurance quote are fairly high, it’s very important to shop around so that you can ensure the best deal. Take the time to gather several quotes before you choose an insurance policy. Asking each company to quote the exact same coverage will help you compare your quotes more easily.

Once you’ve gathered your quotes, be certain to ask around about the company’s customer service before you make your final decision. Great rates are always enticing, but it’s just as important to have a car insurance company that will be responsive when you have to file a claim.

By: Barry H Brenner

Auto Insurance Breakdown

admin — Mon, 01 Feb 2010 14:23:48 +0000

Auto insurance is an important, and, in most states, legally required protection for drivers. Auto insurance applies to vehicles such as cars, trucks, and motorcycles, but also applies to boats. It is primarily designed to protect motorists, but also protects individuals, such as pedestrians, who may be injured by an auto, or property owner’s whose property is damaged by an auto.

There are many different types of auto insurance, so I would like to give you a general overview of the available options. Fortunately, the different types of auto insurance can be easily broken down by the level of coverage that they provide. The levels range from the highest possible to the bare minimum required by law.

First of all, there are two basic categories of auto insurance: collision insurance and comprehensive insurance. Collision insurance covers damage to the vehicle if it is damaged in an accident. Comprehensive coverage offers more protection because it applies to a wider range of situations including theft of the automobile.

It is easiest to start with the minimum level, which is know as liability coverage. Liability insurance pays for injuries or damages sustained by other vehicles and people involved in an accident that is caused by the policyholder. For example, if the motorist causes an accident in which both party’s vehicles are damaged, liability coverage pays only for the damage to the vehicle of the driver who was not at fault in the accident, and not to the driver who was at fault.

Liability is required by law in many states because it also covers personal injury protection to people injured in accidents. Thus, it ensures that any person injured in an auto accident, through no fault of their own, is covered by the insurance of the responsible party.

Personal injury protection (PIP) and medical payments (MP) are not included in liability. However, the next level of insurance, collision insurance does covers these two expenses.

Personal Injury Protection covers the policyholder for time and medical expenses required for the maintenance of a vehicle. This covers lost wages should a person need to bring a vehicle to a mechanic and must miss work as a result.

Insurance can also cover medical payments, which refers to the cost of treatment if the policyholder is injured in an accident and the cost of that treatment exceeds the limits of personal injury protection.

Collision coverage includes the liability of the driver to other parties, personal injury protection, and medical payments. It also covers damage to the policyholder’s own vehicle in the event that it is damaged in an accident, regardless of whether the insured is at fault in the accident or not. Therefore, even in a single car accident, the policy of the driver covers the damage that his or her car incurs. In a two car accident, all damage is covered by the person found to be at fault in the accident.

If the policyholder’s vehicle is damaged so badly in an accident that it must be replaced, collision insurance will pay for the value of the damaged vehicle towards the purchase of a new one. However, collision insurance does not cover the theft of the vehicle, damage from a fire, or damage due to weather, such as hail.

Comprehensive coverage offers a higher level of protection for the policyholder. It covers liability, PIP, MP, and damage to the vehicle if it is involved in an accident. Comprehensive coverage will also pay for a new vehicle if the vehicle of the policyholder is stolen or damaged in a fire.

Although both collision and comprehensive coverage can protect the policyholder from the cost of vehicle replacement, it is not perfect. This is due to the fact that the value of vehicles depreciates over time. These types of insurance will only pay for the value of a totaled (destroyed) vehicle, regardless of the cost of the vehicle when new.

However, there is a third type of insurance that can protect the policyholder from this kind of depreciation. GAP insurance protects the consumer from the depreciation in value of a vehicle.

It is obvious that auto insurance is complex, and it is important to understand all of the available options before making a choice. Different states have varying requirements, so it is important to ask question not only about the type of coverage you are purchasing, but about the requirements of your state, as well. Remember, accidents are called accidents because they are not deliberate, and always come as a surprise. Make sure that you have the appropriate coverage for you and your family in advance, to protect against unforeseen events, such as accidents.

By: Gena Woodard

Guide to California Auto Insurance

admin — Mon, 01 Feb 2010 04:14:10 +0000

If you need California auto insurance, you might be a little confused by all the choices available today. California auto insurance, like in all other states, is available in numerous packages with many types of coverage. Some coverage is required by your state while other types are required by car lenders, so it’s wise to study up on insurance before making a choice. This guide briefly explains the types of coverage for California car insurance to help you grasp the basics.

Liability and Bodily Injury Coverage

Liability insurance for bodily injury protects you from claims against you if someone is injured in a car accident in which you are at fault. If you have an auto accident, this type of insurance covers the injured person’s medical costs resulting from the injury up to a certain dollar amount. There is usually one dollar amount for coverage of a single person in the accident, and another cap amount for the total payment for all persons injured in the accident. This insurance also covers your legal defense costs.

When shopping for California auto insurance, be sure to get as much liability coverage as you can afford. Check around to see which companies offer the best coverage plan within your budget. It’s better to be safe than sorry. Also keep in mind that for auto insurance, California laws require you to have a certain minimum amount of liability coverage even if you do not owe money on your car.

Property Liability Coverage

Property liability is similar to bodily injury coverage except it covers damages to the other person’s vehicle in an accident in which you are at fault. It also covers damages to other properties, such as houses, fences, lawns, and telephone poles. As with liability for bodily injury auto insurance, California state law also requires a certain minimum amount of property liability coverage.

Collision Coverage

Collision insurance is usually required by lenders and covers damage to your own vehicle in an accident with another automobile or if you wreck by hitting other objects, such as signs, trees, ditches, or buildings. This coverage protects you if the accident is deemed to be your fault. If the accident is caused by another driver, their insurance will need to cover any damages to your vehicle. Companies offering California car insurance will often charge a certain amount for liability only, and then extra for collision coverage. These are usually based on your driving record.

Comprehensive Coverage

You might also want to obtain comprehensive coverage for additional protection. This covers theft and fire, or damage to your car by other means such as tornadoes, vandalism, floods, or hitting a large animal (such as a deer, cow, or horse). California auto insurance policies offering this coverage often vary from one company to the next. Some may offer to cover certain items within the package that others won’t, so shop around to see what’s available.

Underinsured or Uninsured Motorist Coverage

If a driver hits your car and has no insurance, this leaves you in a bind. They will likely not be able to pay for the damages even if it is their fault. This is where underinsured or uninsured motorist coverage can be advantageous. It covers damages to your automobile in these cases and also in the case of “hit and run.”

Other types of coverage to consider, which may or may not be included in your normal coverage, include towing, no-fault personal injury protection (PIP), medical coverage for yourself and others in your car no matter who is at fault, full glass coverage (for damaged windshields or windows), and car rental if and when you need to leave your car for long-term repairs.

Understanding each of these and how they work will help as you shop around for California auto insurance. Use online resources to find the right coverage for you today!

By: Chris Robertson

California Auto Insurance Laws

admin — Sun, 03 Jan 2010 16:06:18 +0000

California law requires that drivers have evidence of auto insurance if they are driving their own car or someone else’s. People who own a vehicle but don’t drive it are still obligated to have auto insurance in California.

California’s Compulsory Financial Responsibility Law necessitates all drivers and owners of an automobile to be financially responsible for their actions. The statutory minimum limits of liability insurance in California are that the person responsible for an accident that results in the death or injury of one person is liable for $15,000, or $30,000 if there are multiple injuries in one accident. The responsible party is liable for $5,000 of property damage for any one accident.

There are four techniques to realize financial responsibility, including coverage by a motor vehicle or automobile liability insurance policy, a cash deposit of $35,000 with the Department of Motor Vehicles (DMV), a certificate of self-insurance issued by DMV to owners of fleets of more than 25 vehicles, or a surety bond for $35,000 obtained from an insurance company licensed to do business in California.

When a vehicle is in an accident for which the driver is established as a legally liable, bodily injury liability covers their liability to others for injuries to them, whereas property damage liability covers their liability for damage to someone else’s property.

All California drivers and owners need to have at least the statutory limits of minimum liability insurance or an approved substitute method to compensate for injury or property damage they may bring about. Penalties are extremely harsh for nonconformity with this segment of the vehicle code. Comprehensive coverage (other than collision), uninsured motorist, medical payments, and collision insurance are not required by law but can be a good investment.

By: Eric Morris

Car Insurance Tips For International Students

admin — Fri, 18 Dec 2009 13:01:55 +0000

When you are an international student studying in the US, it can be a bit confusing with the new culture and possibly even a new language. Often the simplest things can be difficult to get the hang of. Things like car insurance can be a whole new challenge when you are not familiar with the process or the rules.

If you`ll be driving in the country you plan to study in, you will want to have car insurance. Most students are on a budget anyway and having to deal with the cost of an accident, no matter how minor is usually a big dent in the budget, particularly if you were at fault.

- Look for a car insurance provider that doesn’t penalize international students. Many companies will insist on a minimum of 3 years US driving experience in order to qualify for lower rates and higher coverage. Since the majority of international students have little or no experience driving in the States, they will end up paying more for less coverage. A very few insurance companies will count foreign driving experience and offer lower rates and deductibles.

- While liability is the minimum requirement by law, it`s a good idea to find out how much more you`ll pay for collision insurance, as well as comprehensive. Liability covers your passengers or property that you damage in an accident, collision will cover repairs to your vehicle if you crash, even if the accident was your fault. Comprehensive insurance is meant to help you recover your financial losses if the vehicle is stolen or destroyed by means other than a car accident.

- Keep the age of your vehicle in mind. Older cars usually aren`t worth insuring for anything more than liability, since you would be better off replacing the vehicle than repairing it in most cases. Newer cars will need to be insured for more since it`s usually far cheaper to repair them than buy a new vehicle. The general rule of thumb is that a car older than 1989 should carry liability only.

- Look for fixed rates. Some car insurance companies will let you sign up for 6 months or 12 months, where your rates will not go up, even if you have an accident during that time. Obviously, the longer the term, the better.

- Make sure you have an up-to-date international driver`s license. This will allow you to drive both in your home country and in the US. Most international students have no need for an American driver`s license, so an international one should be fine. Just be sure that it is good for at least six months after your stay ends so you`ll be able to get the best car insurance possible.

- Bring all paperwork that could be necessary with you when you apply for car insurance. You`ll need proof that you haven`t had an accident in the previous 18-36 months for the best rates. All driving related paperwork will help you out when applying for car insurance and can drastically cut the waiting time, as well, since you won`t be trying to get your papers from your home country.

Car insurance for international students might be a bit tricky, but it mainly comes down to doing some research to find which companies will give you a break, even if you haven`t been driving in the States for the past three years. The prices and amount of coverage should be fair and not hiked up just because you are only temporarily in the country.

By: Amy Nutt

Used Car Insurance – Do I Need It?

admin — Fri, 11 Dec 2009 01:28:17 +0000

So, you’re buying a used car, and are starting to look into some of the surrounding logistics, including car insurance. Insuring a used car requires a bit of a different decision making process than insuring a new car, but its not really that complicated. You just need to understand what the different components of car insurance are, and which ones you need to have, and which ones you might be able to do without as a used car owner.

First of all, though, let me state that yes, you absolutely need insurance for any car, new or used. It’s the law, and there is no getting around it. However, the most commonly required base level insurance is what is known as liability insurance. Liability insurance covers you against damages that you might be liable for in the event of an accident. For example, if you hit someone else and cause damage, you will be liable for this damage. With your insurance policy, the insurance company will be able to pay out to the required parties. This level of coverage is required, whether your car is new or used.

Things become a little fuzzier when you get to things like collision and comprehensive insurance. Collision insurance helps to repair or replace your car in the event of an accident. Comprehensive insurance covers your for things like weather damage, theft, vandalism, and more.

So, do you need these types of coverage for a used car? It really depends. If you’re driving a clunker, you can most likely do without these, since your premiums are likely to cost you much more than just buying another car would after a few years. However, if you’re driving a newer, few years old used car, these insurance policies can help protect your car against these issues.

In fact, it really all comes to your personal risk tolerance and preferences. As long as you have the insurance level required by law, whether or not you get extra coverage depends on how you feel about taking the risk of replacing the car yourself balanced with the expense of the insurance premium. Many people like to “self insure” by placing the money they would have spent on extra premiums into a special savings account to repair or replace the car in the event of an accident, theft, or other event.

So, I hope this gives you some idea of what you’re looking at in terms of choosing insurance for your used car. If you’re financing your used car, you’ll probably be required to fully insure the car, but otherwise, the decision is really up to you, as long as you meet the minimum legal requirements. Good luck in your decision making, and enjoy that money saving used car!

By: David C Wilson

Does The Coverage And Deductibles You Have On Your Personal Auto Policy Apply To A Rental Car?

admin — Fri, 20 Nov 2009 14:36:34 +0000

When you rent a car, there’s always that moment of truth, the moment when the salesperson asks you if you would like to purchase insurance (or more accurately, a loss waiver) through the rental company. According to most of these salespeople, if you do not purchase the insurance (which can bump the price of your rental up $20 per day or more) the consequences for the slightest scuff on the door will send you spiraling into bankruptcy. The cost of insurance at the rental car counter may also vary depending on the rental car company, state and the type of car you wish to rent. Car rental insurance can be complicated and you might even feel pressured into purchasing it, but before you commit yourself to spending the money on a loss waiver, take a moment to think about some other options.

Car Insurance

If you carry comprehensive and collision coverage, your personal auto policy will generally cover the cost of replacing or repairing a stolen or damaged rental car. Because each insurance company is a little different, however, it is a good idea to speak with your insurance agent and confirm that the rental car is covered by your existing policy.

Remember that any deductibles you have will apply to the rental car. For instance, if you have a $500 deductible and sustain $450 worth of damage, you will be responsible for the full cost. If you have a $500 deductible and sustain $1000 worth of damage, you will be responsible for the first $500 and the insurance company will pay for the balance.

Remember, too, that for your rental car to be covered you must carry comprehensive and collision insurance. If your insurance protects you only against liability, it will not cover the cost to repair or replace a rental car if it is wrecked or stolen. You may also want to take note that in the event of a car accident with the rental car, your personal insurance premium may go up in cost.

Credit Cards

Some credit card companies offer rental insurance benefits. To find out what each of your credit cards offer, simply call the customer service and ask. You may want to shop around a little to find out which of your cards offers the best insurance benefits. When you find the best deal, ask for a copy of the insurance policy in writing. This will allow you to look the policy over carefully to determine that it offers the coverage you need. Having the policy in writing will also put a stop to the he-said-she-said that may occur if a loss does happen.

It’s easy and often tempting to sign on the dotted line and let car rental insurance take care of everything. But if you do so without stopping to investigate other avenues available, you may find yourself paying for car insurance coverage you may already have. Fifteen or twenty minutes of easy research can save you a hefty sum of money and offer you piece of mind.

By: Amy Nutt

Do You Need to Buy Rental Car Insurance?

admin — Sat, 07 Nov 2009 10:32:46 +0000

Do not wait until you are in a quandary at the rental counter. Before your next business trip, find out if you are covered through your own automobile insurance policy or through your credit card company.

Business Use

Since the expense is for business use, take the coverage the rental agency offers for at least two reasons: 1) If you have an accident, your insurance carrier will not be aware of it and thus it will not affect your personal auto policy rates. 2) It is a deductible business expense whereas your personal auto policy is not.

Auto Insurance

Call your agent to find out what your auto insurance policy covers when you rent a car. To be properly covered in your rental, your existing policy must include liability, comprehensive and collision coverage for rental vehicles. Liability insurance covers you if you injure another person in an accident, and comprehensive and collision insurance cover the rental car if you are responsible for the damage.

Credit Cards

After you know what your auto policy covers, check with your credit card company. Some credit card companies offer collision and theft insurance when you use their card to pay for a rental, but this coverage is usually secondary to your personal auto policy. Significant restrictions may apply: For example, the card company may require that you decline the rental agency’s collision damage waiver — a provision of your rental agreement that limits your liability for damages to the car.
Remember, a credit card will only cover damage to the car, not liability claims against you. That means your credit card will not protect you if you injure others or destroy property. In addition, this coverage might exclude business use or be limited to a certain period of time and geographic area.

Rental Insurance

If you do not have adequate coverage through your auto insurance policy or credit card, you should purchase coverage. The most misunderstood part of rental insurance is the collision damage waiver. A collision damage waiver isn’t really insurance; instead, it is a guarantee that the rental company will pay for certain damages. Rental agencies offer collision damage waivers or loss damage waivers for about $14 to $20 per day. If you decline the collision damage waiver, you accept responsibility for all damages.

The collision damage waiver also covers “loss of use” — the money a rental agency loses when the vehicle cannot be rented due to damages. In most states, an automobile insurance policy will not cover this cost and you could find yourself personally responsible for it.

In addition, when you damage a rental car, some agencies will expect you to pay up front for repairs or replacement costs. This means the money comes from your pocket and you must get reimbursed by your auto insurance company. The collision damage waiver protects you from these up-front costs.

In addition to the collision damage waiver, most rental agencies offer:

• Supplementary liability insurance, which acts as secondary coverage to your personal policy

• Primary liability insurance for drivers who don’t have auto insurance policies or don’t want to use them

• Personal accident insurance

• Personal effects protection that insures your belongings

So, ultimately, it depends on your situation, but do carefully consider all of these possibilities and most of all, make sure you are covered!

By: Matt McWilliams