Auto Insurance Law » Insurance Law

Car Insurance Pricing Plans

admin — Mon, 14 Jun 2010 20:17:33 +0000

The law requires liability insurance for all drivers and vehicles. This means that if you are involved in a serious accident, and it turns out that it was your fault, your insurance company will pay out any claims that are made against you. Extra coverage on your own vehicle, called comprehensive insurance, is optional.

Insurance companies based on a number of risk factors will calculate the price you pay for this insurance. Basically how it works is the more they feel you are at risk of crashing, and the more they think the resulting crash will cost them, the higher the premium you’ll pay.

Assessment

Common factors that will be used to assess the premium are the value of the car you’re driving, the safety of that vehicle, the coverage you want, will there be deductibles or limits etc.? How much you’ll drive the car, how your driving record stands, how long you’ve held your license, your age, and if you are young, also your sex.

The premium is then calculated. Usually there is a flat per car, per year rate that everyone pays, regardless of other factors. The other factors will then alter this rate, generally upwards. So if your car is especially fast or dangerous your rate will be increased by a set amount. If it is very old, your rate goes up. If you’ve had one or more accidents in the past, your rate will go up. If you’re young and male, your rate will go up. The more of these factors you satisfy, the more your rate will be going up.

Discounts

As a sales enhancement, many car insurers offer a “low estimated future mileage” discount to customers who predict that the car’s mileage will be below some stated limit during the next premium period. There is no verification involved and no additional charge if the car is subsequently driven more than the stated amount. This arbitrary discount tends to foster customer belief in the mistaken idea that “miles” are just one of many classification factors used to raise or lower prices from the territorial base rate. In fact, odometer miles (which insurers do not use) are not a factor but a metric – the only valid basis for measuring each car’s consumption of insurance protection in on-the-road use.

The best way to save on car insurance is to shop around, keep a good clean driving record, drive safely, and choose reliable cars that are not known for their power and speed.

By: Joseph Kenny

Connecticut Car Accidents and Insurance Law – Know the Facts

admin — Fri, 14 May 2010 14:54:57 +0000

If you drive a car or ride as a passenger on Connecticut roadways, do you understand the insurance laws? Most people understand that car accidents happen frequently, but few take the time to understand key facts about Connecticut car accidents before they are involved in one.

1. Statute of Limitations

Connecticut has a two-year statute of limitations in car accident cases. That means you have two years after suffering any injury to pursue legal action against the driver or other parties involved in your accident. It also means that contacting a Connecticut car accident lawyer sooner rather than later is in your best interest. Two years may sound like a long time, but when you are busy with the process of recovery, it can pass by quickly and leave you without the means to recover financial compensation.

2. MedPay Coverage

MedPay coverage is a factor in some Connecticut auto insurance policies. MedPay coverage helps people pay for medical expenses that result from a car accident, typically covering between $1,000 and $5,000. What makes MedPay issues complex is that other health insurance policies, such as insurance offered by an employer (Blue Cross Blue Shield, for example) will not cover injuries sustained in a car accident until they receive confirmation that either no MedPay coverage existed — or that it has been used to the full extent. So even if you pay for company health insurance out of every paycheck, that insurance isn’t automatically relevant when your medical issues result from a car crash.

This is further complicated by the fact that MedPay covers injuries regardless of fault, so if you are injured as a passenger in someone else’s car, your insurance company may refuse to pay for your medical care until you’ve established the status of any MedPay coverage. And what if you receive MedPay benefits — but then file a personal injury claim against the person responsible for the accident? In some cases you may have to pay back the benefits.

3. Subrogation Provisions

Roughly 50% of Connecticut health insurance companies have subrogation provisions in their policies. These allow the health insurance companies to receive payment for medical expenses associated with your accident, if you receive a financial settlement. You may have planned to use your settlement to pay for future medical treatments, but your health insurance company has different interests in mind.

Protect your rights

If you or a loved one has been injured from a car accident in Connecticut, you have the right to make sure the responsible parties are held accountable. Understanding how insurance law plays a role in any accident claim is important, but it can be complex. Insurance companies are big businesses with their own legal representation; trying to handle them on your own can often backfire.

Contact an experienced Connecticut car accident lawyer for an evaluation of your case and helpful advice on your legal claim.

By: Deirdre Reedy

Discrimination in Car Insurance And Your Rights Against It

admin — Sat, 08 May 2010 07:58:06 +0000

Law requires that every car insurance applicant is treated with equality as it is a must to have cars covered under insurance before you bring it on the road. Universally, car owners and drivers are protected against discrimination and here are the details you will need to guard yourself from. A car insurance company cannot deny, refuse to renew, limit, or charge you extra based on reasons like race, color, religion, or nationality.

Also a car insurance company cannot deny, refuse to renew, limit, or charge you more because of your age, gender, marital status, geographic location, disability, either partial or complete, unless such a refusal, limitation, or higher charge is “based on measured undertakings or realistic principles.” If the insurance company were to discriminate against you, they would have to show cognizable evidence that you are a greater risk in comparison to others. This also includes that an insurer cannot refuse to renew your policy when some family member attains driving age.

This is not all. It is unlawful for a company to distinguish between individuals posing the same rate of risk or discriminate class in its rates, terms of policy, benefits, or claim settlements unless such refusals or discrimination is “based on sound and actuarial principles.”

However, these are fundamental in nature but deep down, the law has stretched its arms very far with a view to make sure the car insurance is available to everyone in all fairness. This includes points like past driving history, lack of driving experience or business.

What are your rights?

The law provides for suing an insurance company for failing to follow anti discrimination which also includes refusal of insurance. To make the procedure for filing a suit, the law allows you to file a suit in your district court. On your part, make sure that your litigation is in good faith, and is based on solid grounds. In case the court finds that the suit is baseless and filed for harassing the car insurance company, you will probably be ordered to pay the legal expenses to the company.

By: Alevoor Rajagopal

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

The Importance of Accurate Applications For Auto Insurance

admin — Sun, 11 Apr 2010 00:58:08 +0000

Auto insurance is something that every person who owns or leases an automobile must deal with. Not only is auto insurance required by law, but it also protects us in the event of an accident. In order to fully enjoy the benefits of that protection, however, it is critical that you are accurate and honest when initially completing your application. Whether it’s your first time shopping around for a policy or whether you’re looking to switch insurance providers, the information below will help you avoid some common pitfalls. It is extremely important to be accurate when completing the applications required by the insurance company. There are various sections within the application, each requiring different types of information.

Vehicle Information

First, the auto insurance company will want to know all about your car. Make and model are a given, but you may also be asked body type, number of cylinders or engine type. If you do not know the true answers to these questions, make sure to look in your car’s owner manual or to ask a trusted mechanic. Next, the insurance company will want the auto’s Vehicle Identification Number (VIN). This number will help them research to see if the car has ever been reported in an accident.

If the information you supply to your insurance company on the application is incorrect or inaccurate, you may end up insuring a vehicle that doesn’t even belong to you (in the case of writing the wrong VIN on the application) or forfeiting your coverage altogether.

Driver Information

In this section, the insurance company will want to know the name, birth date and driver’s license number of each person to be named on the policy. You may also be asked to note any persons who live in your household but will not be covered. It is very important to be honest and to include anyone who may drive your vehicle, no matter how seldom.

The application may contain some questions as to the driving history of each driver you want included on the policy. Generally insurance companies are most interested in any accidents you’ve had or insurance claims you’ve made within the last six years. It is important to be truthful and accurate with your account of each driver’s record. Insurance companies will either require you to provide or request directly from the DMV an official driving record. If you are perceived as trying to be dishonest in the application process, you may be denied coverage.

The Importance of Accuracy

Several things can happen if you are not thorough and accurate in the application process. Omission of pertinent information can result in denial of coverage. Also, since auto insurance applications include a statement confirming the completeness and accuracy of the information, you could be found guilty of breach of contract or fraud. If omissions are discovered, your insurance can be deemed invalid or be cancelled. Cancellation of your policy due to misrepresentation can also result in higher premiums down the road.

By: Amy Nutt

How to Find Cheap Washington DC Auto Insurance Rates

admin — Sat, 03 Apr 2010 22:43:38 +0000

Is it possible to find cheap Washington DC auto insurance rates? The car insurance required by law in Washington DC is more than that in many other states. This is probably part of the reason it is also in the top 10 for average auto insurance cost. Washington DC requires the same basic liability and property damage insurance as most other states. However, they also require uninsured motorist bodily and property damage. Don’t give up hope, though, there are some things you can do to reduce your insurance premiums.

1. First, investigate every possible discount available. There are many types of discounts, some are offered by most companies and other, lesser-known discounts, are only offered by a few. Be sure to ask each company you are investigating about their available discounts.

2. Second, take a look at yourself. Your driving record, your daily commute, your credit history and your vehicle can all affect your insurance rate. You can save yourself a lot of money in insurance premiums by driving safely, cleaning up any credit issues, using public transportation or car pools, and selecting a safe, low theft risk vehicle.

3. Third, compare companies. Rates vary widely between companies, even in the same areas. While you always want to contract with a company that has a solid reputation and good rating, you can find differences in the rates companies will charge even for similar policies.

4. Finally, though you do not want to compromise coverage, you can raise your deductible. Raising your deductible to the highest amount you can afford may save you hundreds each year on your premiums while still offering protection in the event of an unforeseen accident.

All of this searching may seem a bit overwhelming, but you can actually get rate quotes from insurance companies very easily online. Those who offer the features you need at rates you are happy with can also be checked easily for stability and ratings. You are really just minutes away from finding a cheaper DC auto insurance rate than you have now.

By: James J. Robinson

Why Is Auto Insurance Important?

admin — Mon, 15 Mar 2010 11:19:09 +0000

Auto insurance protects you from being financially responsible for an accident, but you’re required to pay monthly premiums to keep the insurance. By law you must have car insurance if you want to drive on the road and without it you can be fined, lose your license, go to jail and also be sued depending on the seriousness of the accident you caused. Even if you’re pulled over without car insurance you can be fined though which means you must have and maintain auto insurance.

There are lots of companies that offer auto insurance and you’ll need to research which is the best option for your specific needs. Auto insurance has many different types of policies and coverage so you need to make sure when you buy your car insurance that the policy makes sense for you. One thing you want to make sure of is that the monthly premium will fit into your budget and also that you’re getting the right amount of coverage for your vehicle. Don’t get to much coverage but also don’t get too little coverage, there is a very fine line between the two and you’ll need to determine which is suitable for your vehicles.

Typically if you get into a car accident and you’re at fault then you need to put the claim through your insurance. This will mean that your insurance company will pay the damages to the vehicles and also any medical expenses that anyone faces, if any. Without car insurance it makes you liable for the damages and medical bills and this is where it gets very serious. You can be sent to jail for injuring someone in an accident without any insurance and you will most definitely be sued by the family. This will often result in you losing everything you own.

Car insurance isn’t a joking matter and is one of the most important insurance policies you need. It’s also one of the insurance policies that are mandatory to have while driving. Having car insurance is also necessary to have in case somebody hits your vehicle. If someone hits your vehicle and you don’t have insurance then they won’t be liable for paying any damages to you.

As you can tell having car insurance benefits you in a lot of ways and also gives you a feeling of safeness while out on the road. It’s always better to drive focused and not sub-cautiously have to be thinking about the fact you’re driving without insurance. Car insurance can be bought for very affordable monthly premiums and offer great coverage, you just need to do a bit research beforehand so that you can find the best deal. There is highly competitive competition in this industry and there are many companies fighting for your business. Decide on a budget savvy auto insurance policy and I guarantee you’ll be saved a lot of hassles and unnecessary fines. You’ll also be ensured that you won’t be financially accountable for any damages to people or vehicles as your insurance will cover you.

By: Brenda Williams

Getting the Best Insurance Rates

admin — Mon, 08 Mar 2010 18:53:04 +0000

Buying insurance can certainly be a hassle. While it would be nice to think that a talking gecko could simply gather what information you would need and easily point the way, the real world is rarely that cut and dried. Let’s be honest. As much as paying insurance may be an expense few of us enjoy paying for, the reality is quite simple. When a car crash occurs, when a medical emergency happens, or when weather conditions damage our homes, the reality and importance of insurance becomes quite clear. Most importantly in the case of auto insurance, its the law. In the case of homes, its typically required as part of a mortgage agreement.

So, short of spending every free moment looking over rates, how does one fine the best insurance possible?

One issue many people fail to remember is to think about the quality of coverage that you are shopping for. While it would be wonderful to find the cheapest option, you have to ask yourself if the money you save now will cost you more in the long run. Many cheaper plans offer less coverage or higher deductibles, which means that you will either find yourself not covered, or paying so much up front that your additional coverage is almost nothing in return.

Look over the various coverage options, and choose the ones that apply to you and how you live your daily life; and never agree to deductibles that cost more than half of what the damage would be to repair or replace.

Another factor is the reliability and service that the company you are buying from offers. They may have great rates and excellent coverage, but if you have to chase them for information, or pay for items that are covered and then submit your receipts for reimbursement, you might find yourself harried and hassled, trying to get your claimed amount back from the company.

And of course, there are the rates to consider, which most people spend a great deal of their focus on. The best advice here is to find the second-cheapest rates possible, as long as said company still offers the customer service you require, and the overall coverage that will protect you in the situations you require. If you aren’t successful in finding these things, your insurance isn’t a “good gamble” to protect you in case of an emergency – it’s simply throwing money away.

By: Jacob Lumbroso

Colorado Personal Injury Lawyers – New Colorado Insurance Law Punishes Unreasonable Delay and Denial

admin — Mon, 22 Feb 2010 22:11:56 +0000

Colorado’s New Law Regulating Insurance Companies for Unreasonable Delay and Denial-Effective August 6, 2008

The new law provides Colorado citizens the power to make sure insurance companies pay claims in a reasonable and timely manner.

What is this new law? House Bill 08-1407. The objective of the law is to put a stop to unreasonable denials or delays by insurance companies. The law increases the penalties on insurance companies for their unreasonable conduct with respect to claims.

“A first-party claimant whose claim for payment of benefits has been unreasonably delayed or denied may bring an action in a district court to recover reasonable attorney fees and court costs, and two times the covered benefit.”

Who benefits from the new law? Colorado citizens claiming insurance benefits from their own insurance company. Injured people in Colorado have been powerless to bring large claims against insurance companies because attorneys’ fees could eat up much of their settlement money. The new law provides Colorado citizens the power to make sure insurance companies pay claims in a reasonable and timely manner by requiring unreasonable insurance companies to pay the owed benefits, double damages, and attorneys’ fees.

For example, let’s say your claim has damages of $30,000 and the insurance company unreasonably delayed or denied the claim. Under the new law you could receive double the $30,000 plus attorneys’ fees (let’s say $10,000). Therefore the insurance company would have to pay you $70,000 ($10,000 of which would pay your attorneys’ fees) for their violation of the new law.

“A person engaged in the business of insurance shall not unreasonably delay or deny payment of a claim for benefits owed to or on behalf of any first-party claimant.”

What type of insurance companies can be penalized by this new law? The law applies to health insurers, disability insurers and nearly any other kind of insurance. The law does not apply to workers’ compensation insurance, life insurance and title insurance. If you believe that workers’ compensation, life insurance, and/or title insurance has unreasonably denied your claim you cannot use this new law, however, you may be able to use other laws to help you seek benefits.

When does the new law go into effect? The new law goes into effect on August 6, 2008. However, the language of the law is not clear as to how that date practically plays out. It is unclear whether the law applies only to claims after August 6, 2008 or if it applies to claims that have been ongoing for the past year or two.

If you’d like to view this Bill:
go to Colorado General Assembly website http://www.leg.state.co.us/ Follow the “Bill Digest” link Go to 2008 Bill Digests The “Digest of Bills – 2008″ is categorized; follow the “Insurance” link

By: Brian M. Weiss

California Motorcycle Insurance

admin — Wed, 17 Feb 2010 13:45:33 +0000

There are several insurance companies that cater to all kinds of motorcycle insurance in California. They offer dozens of useful hints that save you a lot of dollars. If you want to buy motorcycle insurance, it is advisable to shop more than 25 top rated, best service insurance companies for the lowest premium. Additional discounts are given for being a safe rider, insuring more than one bike, and touring bikes. A bike owner is very likely to get a medical expense policy without any hospitalization insurance.

The coverage for motorcycle insurance is very different from that of an automobile insurance policy. Motorcycles give less protection than automobiles, so the chance of severe injuries is high. Motorcycle insurance serves to reduce a high percentage of money loss in accidents.

There are various types of motorcycle insurance coverage in California. Liability (bodily injury), property damage, uninsured or underinsured motorist, comprehensive, collision, and medical expenses are among them. If an accident occurs due to the fault of the motorcyclist, the liability coverage pays the injured person. According to California motorcycle insurance law, the insurance companies have to spend $15,000 per person for an injured person and $30,000 for all injured persons in a single accident. Property damage coverage will pay for the property that is damaged by your motorcycle. The law requires $5,000 for the destruction of property of others. Collision coverage requires comparatively large amount of deductible than that for standard bikes.

If an accident is caused by an uninsured person or those who do not have enough bodily injury coverage to satisfy your claim, uninsured or underinsured motorist coverage will pay for you. It also meets your medical bills, pain and suffering, lost wages and future damages. The coverage pays around $30,000 per person and $60,000 for all persons injured in any one accident. Comprehensive coverage pays for losses due to theft, flood and fire, while medical expenses coverage meets all medical expenses.

By: Eric Morris