Auto Insurance Law » Liability 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

Why You Need Car Insurance

admin — Fri, 25 Jun 2010 18:55:18 +0000

Every car that runs on the roads is subject to a mishap. Be it your fault or some one else’s an on road accident is extremely unfortunate and unforeseen too. Hence, it is wise to keep yourself and your car insured and safe for future. Car insurance is important not only for your vehicle but also for the driver. There are several insurance policies available now, that insure the car driver or the victim of the accident along with the car.

Car insurance widely depends upon the kind of policy you are adopting. There are several insurance policies that a car owner can avail. These vary from individual to individual depending on their personal requirement and choices. Some of the most common car insurance policies are: liability coverage, comprehensive coverage, personal injury coverage, uninsured coverage, underinsured coverage, rent reimbursement and so on.

Car insurance policies usually vary from country to country and from state to state. In some states a licensed driver cannot register a car without showing a proof of his license whereas, there are other states where registering a car is comparatively much easier. One can choose an insurance policy that fits his/her requirement.

When deciding on a car insurance plan fro your vehicle, it is advisable to collect quotes and policies from various car insurance companies. These quotes will help in a comparison of which is the best suitable policy and quoted rates that match your requirement. A market study will also help you gain knowledge on the various policies that are available and shall come handy for future references.

There are several websites that provide knowledge on car insurance online. This is more convenient and feasible for people who do not have the time to go bargaining for policies with vendors. Online Car Insurance companies are equally safe and reliable as any other insurance agent who comes to your house with his plan.

By: Smith James

What to Look for in a Full Coverage Car Insurance Quote in Maryland

admin — Fri, 25 Jun 2010 16:37:35 +0000

Under Maryland state law all drivers must have 3 different kinds of automobile insurance. Each driver must have liability insurance, uninsured motorist (UM) insurance as well as personal injury protection (PIP) insurance.

The state mandated minimum liability coverage every driver must purchase is $20,000 of medical coverage for each person with $40,000 per accident, and $15,000 per accident for property damage. In the real world these minimum amounts may not cover all of the damages ensuing from even a small accident, which could leave many drivers who have such insurance still owing additional money as the result of an incident.

Depending on your financial situation, and the assets that an injured party could lay claim to, you may wish to consider much greater coverage amounts not only for your liability insurance but for your uninsured motorist coverage as well as your personal injury protection coverage.

In addition to the state-mandated minimum insurance coverage, any vehicle that is financed will be required to carry collision as well as comprehensive coverage. Again, the amount of such coverage can be determined based on how much protection of your personal assets seems reasonable as well as the replacement value of your vehicle.

Depending on the value of your vehicle and the amount of protection you purchase, your automobile insurance premium could be quite high. Fortunately there are a few things that you can do to help keep your monthly premium outlay under control.

First and foremost are your own driving habits. Tickets for speeding or reckless driving can, in some cases, as much as double your monthly insurance premium. Convictions for drunken driving or for driving while impaired can also cause your monthly premium to skyrocket and to remain in the stratosphere for quite some time.

Drivers under 25 are in a special risk category and, on the whole, have higher insurance premiums than most other drivers. Younger drivers who stay in school and maintain a “B” grade point average are often eligible for a Good Student Discount of up to 5% on their monthly car insurance premiums.

Older drivers, who are often also placed in a higher-risk insurance category, can often reduce their monthly premiums by up to 10% by taking and passing a special driver’s refresher course. Not all insurance companies offer such a program, so check with your agent.

Ask yourself how much you can afford to pay out of your own pocket for each claim against your car insurance company. The money you pay out of your own pocket following an accident is known as your deductible. The more money you can afford to pay — in other words, the greater your deductible – the lower your monthly premium will be.

Lastly, go online and find two or more websites that allow you to make side-by-side comparisons of auto insurance policies and their prices among a variety of insurance companies. In order to insure that you are comparing as many different companies as possible it will be necessary for you to fill out the form on at least two different websites and preferably three different sites.

Making comparisons on multiple sites is an added time expense, but the results can be worth it when you consider that the savings you receive will continue month after month.

By: Larry Nez

How to Compare Low Cost Car Insurance In Michigan

admin — Sun, 13 Jun 2010 10:36:38 +0000

Most of us do some comparison shopping when we are looking for a big ticket item like a refrigerator or a television. However, many people in Michigan never take the time to try and find the best deal on car insurance. The best way to compare low cost car insurance in Michigan is to call up a few agents and ask for quotes. You do need to be aware of exactly what type of car insurance you need before you pick up the phone.

Purchasing the minimum coverage required by state law in Michigan may be sufficient if you drive an older vehicle on an occasional basis. If you are driving back and forth to work or school daily, you need to consider a policy that offers more types of coverage. The additional types of coverage include comprehensive and collision coverage, uninsured motorist coverage, and limited property damage liability coverage. Once you know exactly what types of coverage you feel are necessary you can then start gathering quotes.

Start with your homeowner’s insurance company. Explain that you already have a policy with them and you’d like to add on car insurance coverage. In most cases you’ll be offered a discounted rate because you are purchasing more than one type of insurance. Adding on a health insurance or life insurance policy can result in lower premiums for all of them. This is a great approach for someone who already has policies spread out over several companies.

Call agents that represent other companies as well though. Even if you suspect that you have already been offered a rock bottom price you may be surprised. Insurance in Michigan is a competitive business. There is a law in the state which prohibits one insurance company from contacting another just to compare rates. This means the consumer can expect to have several companies all clamoring for their business by offering a good rate. The resulting lower price for premiums is great news for all drivers.

By: Deborah Mills

Seeking Low Cost Insurance For Your Classic Car

admin — Tue, 08 Jun 2010 19:27:37 +0000

A low cost insurance policy for your classic car is easy to find with the right tools and information. Classic car insurance is for policyholders that rarely drive their cars. Insurance companies can afford to offer cheaper rates due to their reduced risk. When researching insurance for your car, you need to look for companies that understand the lifestyle and usage of classic auto insurance needs. For those who want a cheaper auto insurance policy, the good news is the law only requires you to have liability coverage. Depending on the value of your car, if your focus is full coverage then you will need a complete comprehensive policy.

Details to provide to an insurance company. You should provide a few pictures of the car, inside and out. You’ll want to have a list of modifications that would determine if the car is stock or not. You can get some discount points and a low cost insurance quote based on how many kilometers and the mileage you put on your car. Some insurance companies limit you between 2,500 and 3,000 miles per year, so you will need to think about your expectations regarding how often you plan to take your classic car on the road. The less you drive, the more savings you will have. If the car is used daily, then you will have to settle for standard insurance. You will also want to mention the value of your classic car. For the more expensive classic cars, the coverage will obviously be much higher. If your classic car does not hold a high value, then getting standard car insurance is your best bet for a low cost insurance quote.

Age can be a factor. Most insurance companies tend to offer lower insurance rates to women and older folks. If you are under the age of twenty-five and are seeking a low cost insurance policy for your classic car, you may see a slightly higher rate. This is not the case with all companies, so you will really need to shop around and see what companies use age as a determining factor to get the best low cost insurance rate.

The internet is your best tool for finding savings information on standard auto insurance as well as classic car insurance. When searching for companies, look for the companies that do a classic car comparison based on coverage and price. Once you have identified the insurance company that provides a low cost insurance quote, you will be on your way to purchasing your affordable auto insurance policy.

By: Kimberly Kochera

Auto Insurance – The Questions You Ask

admin — Sun, 30 May 2010 13:01:40 +0000

Once you own a car, it becomes mandatory by law that you get a minimum insurance cover at least to ensure the safety of other road users. Since it is compulsory, you need to note some these facts.

You need to first know the types of car insurance.

The first is Liability coverage which is actually compulsory because it protects other road users. You can in addition to this take up a collision coverage which pays you for damages to your car caused by accidents. You can also decide to take up a comprehensive coverage to take care of any damage to your car. Adding a personal injury coverage will ensure that whatever injuries sustained in an accident would be taken care of.

You need to decide exactly what you want and then look at the types of coverages that are available and pick policies that soot your need.

Next know the implication of your deductible. What is this?

This is the amount you are required to come up with before the insurance company would make good on your claim. The rule for this is simply this. The higher the deductible you choose, the lower the rates you pay and the lower the deductible you choose, the higher the rates you pay. A lot of people rush into choosing the lowest deductible possible thinking they have a wonderful deal. You would likely be better of with a higher deductible and a lower premium.

Find out what is the minimum coverage for the state you live in as the minimum vary from state to state. Knowing this, you can the decide if it is okay for you or need to get more.

A lot of people pay a lot more than they should pay simply because they did not take enough time to compare several quotes before committing to one.

Free quotes are one of the most effective tools for getting the best deals on your insurance. Many don’t believe until they have tried it.

Try it, get and compare as many quotes as you can before making a commitment and you would testify to how it saved you a lot of money.

Don’t take my word for it, get free online quotes now and decide for yourself if it is worth it. What do you loose, since it is absolutely free of charge and obligation.

In fact, start with these two.

By: Chimerenka Odimba

Chicago Used Car Insurance

admin — Wed, 26 May 2010 08:22:02 +0000

Chicago insurance companies tend to set an average driving amount for each car type. Insurance companies normally charge more for high-performance cars because of their increased susceptibility to accidents and theft. As a general rule of thumb, there is some flexibility in the types and amount of coverage you need for a used car, but Chicago has insurance laws and you will need some kind of coverage regardless of what it is worth.

Chicago law states that you have to carry liability insurance. It provides financial protection from claims when you cause an accident that results in bodily injuries to other people or damage their property. The feeling is that if you caused the problem, you insurance should compensate victims. Because liability fees can be high (way beyond what you have to have), you might consider taking out a greater amount of liability coverage. In Chicago, collision and comprehensive insurance is optional. It covers physical damages to your vehicle form a crash of fire or falling object, etc.). If you’ve purchased an older used car, this type of insurance is expensive and probably not necessary.

In Chicago, like any other big city, it is important to update the information that your insurance company has on fine for you, your car and your driving record. You may be eligible for a rate reduction if you have gotten married, moved to the suburbs, no longer insure a younger driver, installed an anti-theft device, or if it has been at least three years since your last violation.

Used car insurance rates can vary widely by hundreds of dollars from company to company because of various claims experience, cost of doing business. Car insurance is priced to cover the costs of accidents that may happen in the future. Information about the past claims experience is used to see the future of a company.

By: Eric Morris

Auto Insurance FAQs: Your Questions Answered

admin — Thu, 20 May 2010 04:56:02 +0000

When it comes to auto insurance, most consumers have questions about the kind of coverage they buy, what they’re required to have and if there are options for high-risk drivers.

Learning the answers to these and other questions can help you make better purchasing decisions when it comes to car insurance. And now, finding answers is easier than ever!

Frequently Asked Questions about Auto Insurance

Can I drive without car insurance?

No! Almost every state requires its motorists to carry liability insurance, which covers damages to people and property resulting from an accident for which you are at fault.

All states also have financial responsibility laws, which require you show the state that you have the funds to pay claims if you have a bad accident. If you don’t have proof of sufficient funds (which varies by state), you’ll need to purchase at least the minimum state-required coverage.

What are the minimum insurance requirements?

While minimum coverage amounts vary by state, all state-required insurance will cover your liability for bodily injury and property damage.

For example, if the minimum auto insurance requirement in your state is listed as 25/40/15, this means that you’ll have coverage up to $40,000 for all motorists injured in an accident, up to a $25,000 for one person in an accident and $15,000 for damaged property.

While this may seem like a healthy amount of coverage, purchasing the state minimum is really purchasing a bare bones insurance policy. The Insurance Information Institute (I.I.I.) recommends carrying at least $300,000 liability coverage per accident and $100,000 per person–and your insurer will encourage you do to the same.

What happens if I can’t find car insurance?

If you’ve applied for car insurance and been turned down because of your driving record or other factors, fret not–you still have options available to you. According to the I.I.I., you have two options: join a state assigned risk pool or buy a policy from a non-standard insurer.

An assigned risk pool consists of insurers in your area, who under state law, are required to participate in proportion to the amount of voluntary business they accept. As a result, insurers must accept motorists assigned to them and write policies accordingly. But because insurers have to take a substantial risk on insuring high-risk drivers, premiums are significantly more expensive.

Non-standard insurers may also be able to write you an auto insurance policy. These types of private insurers typically write policies for motorists with a poor history of accidents, people who live in “high-risk” neighborhoods and those who drive high performance cars.

While both of these options may have you forking over some extra cash, they might be your only source of auto insurance until your circumstances improve. Just remember to keep shopping around so you can switch insurers once you find a better premium price.

What are the differences between nonrenewal and cancellation of a policy?

You or your insurer can choose not to renew your auto insurance policy after it expires for a variety of reasons. You might decide not to renew your policy if you find a better deal somewhere else or weren’t happy with the service you were receiving.

An insurer may not renew your policy if you did something to substantially increase their risk to cover you–or if the company decides to write fewer policies in your area.

Cancellation, on the other hand, is more serious. According to the I.I.I., insurers cannot cancel a policy that’s been in force for more than 60 days unless:
You fail to pay your premium You defraud the company Your driver’s license is suspended or revoked
Cancellation of your policy may also make it harder to find insurance in the future, thus forcing you to buy a high-risk policy for a more expensive premium.

What if I’m not satisfied with my insurer?

As a consumer, you have rights when it comes to your auto insurance. If you’re not satisfied with your agent, let him or her know. If your complaint still goes unchecked, see if the insurer has a consumer complaint department and file a complaint.

If your issues remain unsolved, contact your state department of insurance. The department of insurance exists for consumer education and protection, and they can provide you with help and resources to take your complaint to the next level, or find a new insurer. You can contact your department of insurance by phone or find them online for more information.

A knowledgeable consumer is a powerful consumer!

Finding questions to your auto insurance answers is the first step to becoming an educated consumer–allowing you to make wise purchasing decisions about affordable car insurance. Find more answers to your auto insurance questions by contacting your state department of insurance!

By: Megan Mahan

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

Missouri Car Accident Insurance

admin — Fri, 14 May 2010 21:49:38 +0000

The most common response to why Missouri residents have car insurance is, “to protect oneself in the event they cause a Missouri car accident.” This is certainly on reason but not inclusive of all reasons. Car insurance should also protect the policyholder from an uninsured and/or underinsured driver that causes a car accident, as well as any third-party to whom the policy holder may be liable.

In Missouri, Liability coverage protects the policyholder in the event they cause a car accident or truck accident which results in property damage and/or bodily injury to another party. Missouri requires minimum liability coverage of 25/50 for car insurance policies. This means the policyholder has automobile liability coverage up to $25,000.00 per person and up to $50,000.00 for any group of people injured in the same car accident. If the Missouri car accident results in serious injuries and claims exceed the 25/50 limits, personal assets will be at risk.

Missouri insurance agents rarely adequately explain the different types of car insurance coverage to their policyholders. It is common to see clients during a free consultation with who believe they have adequate car insurance because their agent told them they had full coverage. The words “full coverage” are extremely misleading to the general public. “Full coverage” is not always “proper coverage.”

Uninsured motorist coverage is one way the general public can protect themselves from drivers that are uninsured. An uninsured motorist policy provides coverage to the policyholder when injured in a Missouri car accident by an uninsured driver.

Underinsured motorist coverage protects the policyholder if they are injured in a car or truck accident by a driver with inadequate insurance coverage. Typically, an underinsured motorist policy provides coverage when the policyholder is in a car accident and the liable party has coverage that is equal to or less than the policyholder. Underinsured motorist coverage is specific and the language changes from policy to policy.

Medical payments coverage (also known as med-pay coverage) is designed to pay medical bills incurred as a result of a car accident or truck accident.

Trying to save a few dollars per year on insurance premiums could cause major problems if a serious accident occurs. Don’t assume that your insurance company will be looking out for you, they will not.

By: John J Page