Auto Insurance Law » Medical Bills

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

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

Why Is Insurance Good To have?

admin — Mon, 12 Apr 2010 03:12:47 +0000

Perhaps you are wondering why you need to have insurance. After all, you may be young and healthy, so why pay the money for an insurance policy? The answer to this question varies depending on the type of insurance your considering, but as a whole insurance is an important part of your financial plan.

First, some types of insurance are required by law or by lenders. If you have a mortgage, for instance, your lender will require you to have homeowners insurance. Lenders and state laws require auto coverage as well. For this reason, you really do not have a choice about purchasing auto insurance.

Insurance protects you from the things that you cannot anticipate. Accidents, natural disasters, or unexpected illnesses can strike without warning. The medical bills, repair bills, and other expenses caused by these events could wipe out your finances completely. Consider, for instance, if your home were to catch on fire. If you did not have insurance, you would have to pay for all of the repairs and replace all of your belongings out of your own pocket. Chances are you do not have this type of money.

Health insurance is one of the most common types of insurance to ignore, particularly for those who are in good health. Health insurance is expensive, but if you end up with cancer or some other devastating illness, you will not be able to afford the necessary treatment without health insurance. Cancer treatment, for instance, can cost millions of dollars. Without insurance, you would not be able to get access to the treatment that could potentially save your life.

Life insurance is another product you may not want to purchase. However, if you die without it, those you leave behind will have to pay thousands of dollars for your funeral expenses. You can purchase a small policy for an affordable price and be able to protect your loved ones after your death. As you can see, insurance is important for a variety of reasons, and living without it is a dangerous gamble that you should not make.

By: Cary Bergeron

Car Insurance Fraud and Scams – How to Avoid Them

admin — Thu, 08 Apr 2010 13:51:53 +0000

Being in a car accident is a difficult thing whether the accident was your fault or not. Unfortunately, there are individuals out there who make it their career to scam people in one way or another and they do it by endangering lives, causing financial pain, and causing mental anguish. That is why it is good to be aware of these frauds and scams because the unsuspecting are usually those who end up with higher insurance premiums, points against their license, and even canceled insurance. Don’t let this be you. Be aware of what these scammers do and do everything you can to avoid it.

The types of scams

There are several scams that are well known amongst law enforcement and the general public alike. These scams include:

• The Exaggeration Scam – This is the scam in which the individual doing the scamming has inflicted prior damage to their car to make it look like the damage occurred in their accident with you. These individuals stage the accident, although the crash may be legitimate. Because their vehicle was not appraised prior to the accident, the damage they inflicted on it cannot be proven to be or not to be part of the accident. They are given the benefit of the doubt and they receive payment for that damage from your insurance.

• Rear-ender Scam – The scammer will dodge out in front of you and will then slam on their brakes. They make sure that they do this when you don’t have enough time to brake and avoid hitting them. Unfortunately, the police and the insurance companies automatically assume the second car is at fault in a rear-end crash.

Another unfortunate thing about the rear-ender scam is the fact that a false medical claim usually follows. The scammer convinces a doctor that they sustained injuries in the crash. What happens is that your insurance pays for their pain and suffering, as well as their medical bills. Sometimes these scammers may even have a medical accomplice who receives a payoff for their cooperation.

• The Good Samaritan Scam – This is the individual that waves you on when you can’t see if traffic is coming. However, they wave you into the path of their partner and they ram right into you. What happens is that it looks like you drove out into traffic, which makes it look like your fault. When the cops arrive, the waver denies they ever waved you on.

How to avoid these scams

First and foremost, you need to be a defensive driver. You have to always stay alert and not always trust those around you. If someone waves you on, don’t trust them. You still need to creep out into the street until you can see. You can wave at them to thank them, but don’t gun it out into traffic. You also need to do everything you can to make sure there is plenty of space between you and the car in front of you. If someone darts out in front of you, you need to slow down just in case.

Furthermore, you should be sure to document everything in case of an accident. Keep a disposable camera in your car to take pictures of the accident and make sure you listen to what all of the witnesses say to the police. You also want to acquire a copy of the police report when it is available so that you can tell your car insurance company about your suspicions. Insurance companies are experienced in stopping scammers, so provide them with everything you have so that you can turn the tables on the scammers.

By: Amy Nutt

Florida Auto Insurance – Full Coverage and Keeping Down Costs

admin — Wed, 07 Apr 2010 20:04:23 +0000

Automobile insurance, no matter how confusing, infuriating or expensive it may initially seem is one of life’s unavoidable problems. In fact, if you decide to either skimp on it or skip it altogether, you may well discover that doing so is one of the most expensive decisions you ever made.

At first glance, the law regarding auto insurance in the state of Florida can be confusing to many. It is easy perhaps to fall into the trap of believing that purchasing Full Coverage will automatically protect you from all eventualities and consequences if you get into an accident. Unfortunately, in Florida, it would be a mistake to believe this. By purchasing Full coverage, you merely avail yourself of the very basic coverage required by Florida state law. Such coverage would include Personal Injury Protection, which will pay up to 80% of your medical bills and up to 60% in lost wages, is payable by whoever is deemed to be at fault for the accident. The maximum pay-out would be $10,000. As Florida is a No-Fault State, you are obviously required to carry this coverage. Property Damage would also be included under Full Coverage. It provides protection in case of negligent injury caused to another person while you are driving. These two elements will probably not be enough on your policy by themselves, even if carrying them would make you technically legal in the state of Florida.

So, what should you so if you want to add aspects to your policy whilst keeping the cost of the premium as reasonable as possible?

Perhaps the most important thing is to cultivate – and maintain – safe driving habits as a clean (or otherwise) record is one of the very first things an insurance company will look at when considering the level of your premium. Any convictions or points on your license can drive the cost of your premium up considerably. This is perhaps especially important for younger drivers (those under 25) to take into account, as their premiums will be higher as a matter of course.

You might also consider taking a certified road safety course with a reputable provider and show a copy of your certificate of completion to the insurance company. This is certain to get you a much more favorable rate, as safety-conscious drivers will always pay less. Search online as well for a comprehensive list of local providers in your area to compare quotes and receive the best rates possible for you in particular – the potential savings far outweigh any time you might invest in this.

By: Marcel A Johnson

Why Auto Insurance is Important

admin — Sun, 21 Mar 2010 07:19:50 +0000

Many of us need automobiles to get from place to place, so we all know how useful they can be while also recognizing the fact that driving an automobile is dangerous. You might be careful in obeying traffic laws, but you never know when someone else will not and be the cause of an accident that involves you. Then again, mistakes do happen and you never know when something may occur that you will be at fault. These are reasons why it is important to have auto insurance.

However, auto insurance covers much more than just collisions. There are times when certain acts of nature may occur such as a hail storm or a falling tree that may cause damage to an automobile and it would cost too much money out of pocket to fix these things. The insurance will sometimes charge a small deductible depending on the type of accident that has occurred, but the cost is minimal compared to what it would cost to fix an automobile on your own.

A world without auto insurance

Just imagine what a world without auto insurance would be like. First of all, people who are at fault in accidents would be paying money to the accident victims out of their wages and other income for years to come. Those who have been injured in an accident at no fault of their own are entitled to have their medical bills, vehicle repairs, and other expenses paid by the insurance of the person who was at fault. If the person at fault does not have insurance, then they do have to pay those expenses out of their pocket. Many people have been known to lose major assets because they did not pay the minimal cost of having auto insurance to prevent such losses.

Then there are those natural disasters that we have absolutely no control over. There have been many overturned trees from high winds that have decided to fall the direction of someone’s brand new car. There have also been the occasional hail storms throwing golf ball-sized hail out of the sky at the many automobiles below. This can cause thousands of dollars in damage that goes beyond the scope of what most individuals can afford straight out of their pocket.

So why is it important?

It is probably already quite obvious to see why having auto insurance is very important. If not, then look at it this way:

• You are protecting your automobile, one of the largest investments you make in your life.

• You are able to pay for medical bills if an accident occurs.

• You don’t have to feel the biggest part of an accident-related lawsuit.

• Protects assets that you’ve worked hard for from being lost due to a lawsuit.

• Protects you from those motorists that may not have insurance of their own.

• Not only pays for accidents and weather-related incidents, but also pays for vandalism and theft.

• You know you are protected every single time you hit the road.

However, this brings about another point. It is very important that you review your auto insurance policy and make sure you understand all of it since every policy is different. Depending on a person’s financial situation, they may choose a certain type of coverage over another for a variety of reasons. This can be because they want to cut premium costs because they simply cannot afford higher coverage or another reason that they find they don’t need extensive coverage. These things should be considered carefully because you never know when one accident may be the event that causes you to lose many of your assets in order to satisfy the cost of a lawsuit settlement.

By: Amy Nutt

Explore Your Options for Types of Auto Insurance

admin — Tue, 16 Mar 2010 05:38:37 +0000

Auto insurance is at its heart financial protection. You purchase insurance in order to prevent paying thousands of dollars in the event of a collision or other loss. Many different types of insurance are available, covering almost every conceivable means of loss or damage to your vehicle as well as others to which you may cause damage. Very few drivers need to purchase every single type of insurance, so it is helpful to understand each type in order to decide which ones you require.

Property Damage

Depending on jurisdiction, property damage insurance may also be called liability insurance or similar. This insurance covers damage that your vehicle may cause to someone else’s vehicle. Each state sets its own minimum requirement for how much property damage insurance you must carry, but the state minimum may not be enough in the event of an accident. If you cause damage that exceeds the limits of your insurance you may be sued for the difference. Always purchase as much property damage insurance as you can comfortably afford.

Personal Injury

This type of auto insurance is also generally required by law. Personal injury insurance pays a portion (usually 80 percent) of your medical bills and a different portion (often 60 percent) of your lost wages if you are injured in an accident. A small death benefit is often attached in case you are killed in the accident. This protection might extend to relatives, household members or even anyone who happens to be in the car, depending on state requirements and the individual insurance company’s policies.

Bodily Injury

Although bodily injury protection is not required by all jurisdictions it is highly recommended that this insurance be purchased. Bodily injury insurance protects you in the event that you are at fault in an accident. If the other driver is injured beyond the limits of his personal injury coverage, your bodily injury insurance will take effect. Otherwise, you could be sued for his medical expenses.

If you are injured in an accident that is someone else’s fault and your medical bills exceed your personal injury protection but the other driver does not have bodily injury coverage, your uninsured/underinsured motorist coverage will protect you. Your other option is to sue the other driver but lawsuits take both time and money. This insurance is reasonably priced and will pay relatively quickly. Purchase this insurance if you can.

Collision

Collision coverage is designed to reimburse you up to the actual cash value of your vehicle, less your deductible, if you are at fault in an accident. Collision insurance is usually required if your vehicle is financed. Premiums are high and the insurance is generally not worthwhile for older vehicles with a low cash value.

Comprehensive

Comprehensive insurance covers the loss of your vehicle to theft or acts of God. As with Collision insurance, Comprehensive pays the actual cash value of the vehicle less your deductible. Comprehensive is usually required on financed vehicles but not worthwhile on older low-value cars.

Other auto insurance products will cover everything from a rental car to medical payments beyond your personal injury protection. Most of these products are worthwhile but not strictly necessary. If you have any questions regarding your coverage options be sure to speak to your insurance agent.

By: Levi Quinn

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

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

Auto Accident Injury Cases – Common Myths

admin — Tue, 02 Mar 2010 16:16:00 +0000

Whether it’s a relative or friend’s past experiences, media exposure or general assumptions about lawsuits, no one can predict the outcome of an auto accident case. Many drivers would probably be surprised to learn just how different auto accident law is from any other type of law in this country. This unique area of law indicates that predicting the outcome of an auto accident case is impractical as experienced lawyers explain some of the common myths associated with these types of injury cases.

Myth 1: Each state’s auto injury laws are the same

Insurance rates are regulated by state-run agencies and vary widely from state to state. Some states require that you purchase liability insurance, some do not. Some states have no-fault law, while others have at-fault laws. No-fault laws tend to be widely misinterpreted by residents who find the details of who pays for what fairly confusing.

No-fault in its simplest terms means that regardless of fault, a car accident victim is entitled to certain benefits. For example, a person’s own auto insurance company pays for the economic loss from his injuries (medical bills and lost wages) after an auto accident, regardless of which driver caused the accident.

At-fault states take into account who was at fault for an accident, and to what degree, when determining what each person (and their insurance companies) will pay for injuries and property damage.

All of these factors affect an auto accident case including settlement offers, jury verdicts and even appeals.

Myth 2: I can collect pain and suffering damages simply from being in pain

Some states have specific requirements that an injured car accident victim must first pass before she can recover non-economic (pain and suffering) damages from any automobile accident. This means that being in pain is not enough to receive compensation beyond your limited economic damages such as medical bills and lost wages. In order to qualify for additional non-economic damages in some states, the injured party has to have suffered any of the three types of injuries:

1. Death
2. Permanent serious disfigurement
3. Serious impairment of body function

“Death” is pretty self-explanatory. A “permanent serious disfigurement” is the loss of a body part, scarring, burning or any other type of injury that affects one’s outward appearance. A “serious impairment of body function” is an injury that generally affects the victim’s ability to lead his normal life. Still, the interpretation of serious impairment varies by case. For example, a broken finger may not negatively impact most people’s lives, but for a professional bowler or violinist, it would be considered an important body function.

Myth 3: Million dollar settlements are easy if you have severe injuries

Auto accident attorneys have seen plenty of cases thrown out with zero compensation for victims who had serious, life-altering injuries. With so many interpretations of the law and the impact of recent activities with key cases before each state’s Supreme Court, auto accident law is continually evolving. With the poor economy resulting in huge losses for many insurance companies, auto insurance defense teams are using dirty tactics and becoming more aggressive with challenging injuries. Every case is different and a good attorney will not guarantee you a specific award.

Myth 4: If I hold out long enough, my insurance company will settle for a higher amount

A victim’s injuries and circumstances can have a dramatic affect on an insurance company’s willingness to settle an impending lawsuit. There are numerous factors that can affect an insurance company’s reimbursement offer including their internal company protocol, the reputation of the victim’s attorney and the track record of the assigned judge. Discussion with an auto accident lawyer on your unique set of circumstances will help you have a better understanding of the viability of your case. Even then, auto insurance companies’ display of unpredictable behavior is making auto accident law one of the most challenging areas of law to interpret and predict.

Myth 5: Any personal injury lawyer can handle my case

The law defining what’s required to have a successful automobile accident case is always changing. With constant changes to car accident law in each state, there is a great deal of legal uncertainty for general practice lawyers seeking to understand what is necessary to have a “good” car accident personal injury case. There is no dependable body of case law to guide attorneys handling automobile accident cases today. This lack of a dependable law has left many personal injury lawyers confused by conflicting decisions interpreting each state’s automobile negligence laws.

That’s why it’s vital to have a personal injury lawyer who specializes in car accidents, truck accidents and motorcycle accidents. Keep in mind, in some states, one who markets himself as a personal injury lawyer does not need to hold any special qualifications, training, certification or licensure to say he is indeed, a personal injury lawyer. But a lawyer who specializes in auto accidents and has experience with these types of cases will be aware of the latest judgments and how they affect future litigation. Car accident lawyers also have more experience dealing with auto insurance companies and understand how to challenge their delay and deny tactics unjustly and routinely used on accident victims trying to make claims.

Good legal advice from the start will help you avoid devastating loss of your legal rights, medical benefits and ability to receive the best compensation for pain and suffering. Whether you go through a friend or find a reputable attorney through your states’ Bar Association, make sure you choose one who specializes only in auto accidents with a proven record of success.

By: Steve Gursten