Auto Insurance Law » Medical Costs

Massachusetts Car Insurance Requirements When Getting Quotes

admin — Tue, 29 Jun 2010 17:05:28 +0000

It helps to have a few things ready when shopping for car insurance in Massachusetts, including your current policy information. Also you should know what the minimum requirements are for Massachusetts auto insurance. Here is some helpful information.

Massachusetts requires car insurance by law and is a state with a no-fault system, meaning you need to have Personal Injury Protection which will pay for your injury claims — up to a limit– no matter who’s at fault.

Massachusetts’ compulsory — or required — coverages are (keep in mind these are minimums and you may want higher limits for better financial protection):

Personal Injury Protection, or PIP, which pays necessary medical costs if you are injured in an accident. Minimum coverage of $8,000.

Bodily Injury — $20,000 per person who is hurt or killed in an accident, and $40,000 per accident if several people are hurt or killed.

Bodily Injury Caused By an Uninsured Auto — $20,000 per person who is hurt or killed in an accident, and $40,000 per accident if several people are hurt or killed.

Property Damage Liability — $5,000 for property damage caused by you in an accident.

Car insurance rates in Massachusetts are strictly regulated by the state. However, Massachusetts Insurance Commissioner Nonnie Burnes is currently trying to pass a plan to deregulate the insurance industry in her state. This would bring in more car insurance companies and more competition which could bring down rates and costs to car owners.

However, you should always do some comparison shopping when looking for car insurance; you may be able to save on overall costs and you’ll certainly get a better idea of how each company’s service is going to be. Try to get at least three different comparison quotes. To get the most accurate comparison, make sure you provide the same information about deductibles and coverage limits to each company.

By: Justin Scott

Car Insurance is the Law in Canada

admin — Sun, 28 Feb 2010 11:44:21 +0000

In every Canadian province and territory, whether you are a first time driver or a senior driver, it is the law to have car insurance when you drive your vehicle. If a driver is pulled over by the police, or in a car accident, and found not to have car insurance, the ramifications can be serious. Fines can be severe, demerit points will be applied to the driver’s record, the driver’s license may be suspended or canceled, and the car may even be seized and a substantial fine may be given before one can get the car returned.

If you are involved in a car accident and you do not have car insurance, you find yourself serious financial turmoil. For instance, if another driver is seriously hurt and their car is severely damaged, you may be responsible to pay their medical costs, vehicle repairs, a new vehicle, or the driver may be awarded punitive damages. It could result in financial damages of hundreds of thousands of dollars. You will also be responsible for your own legal costs as well as the other driver’s legal costs.

As well, if you do not have insurance, you may not be able to afford to pay a lawyer to represent you if the other driver is found at-fault for the accident. In some provinces there is a capped amount for the amount of compensation that one can receive. For example, in Nova Scotia, the capped amount for pain and suffering is $2,500. Pain and suffering claims are not part of claims for loss of income, medical expenses, and damage to property.

Having car insurance will protect you against financial devastation. Two important types of car insurance coverage are Liability and Collision Coverage. In Canada, liability is mandatory in every territory and province. This type of insurance covers you if another driver, another person’s property, and the other driver’s car is damaged in the event of an accident. Collision coverage will cover you if your car is damaged in an accident as the result of a collision. Collision is not mandatory in Canada but is recommended for drivers with expensive cars.

There are a number of criteria that insurance companies take into consideration when determining the insurance premium for a particular driver. Drivers with a clean driving record will pay less for their insurance because they are considered low risk compared to drivers that have a history of speeding and other traffic violations. Teen drivers are considered ‘high risk’ because they are less experienced. However, most insurance companies will offer discounts for teen drivers who maintain a specific school grade average or have taken a driver training program.

As well, there are other discounts any driver can take advantage of such as: anti-theft device discount, a discount if one is a member of an auto club, multi vehicle discount, ‘green’ vehicle discount, discount for maintaining low mileage, and more. It is important to ask your insurance company what discounts they offer. As well, the make, year, and model of the car will affect the cost of insurance premiums.

Without having car insurance when driving in Canada one runs the risk of serious financial loss. It makes sense to obey the law when it comes to car insurance because the premium you pay is much lower than what you will pay if you are caught driving without it.

By: Adriana N.

An Overview of New York Auto Insurance Requirements

admin — Thu, 25 Feb 2010 13:16:42 +0000

Laws and requirements for insurance are complicated and vary from state to state. There are numerous and varying types of coverage you choose from, whether full liability or personal injury protection. Some states require certain coverage types while others make it optional. New York has some some complicated requirements and options so lets review them.

Liability Coverage

Every states requires liability coverage, the most basic coverage , New York included. New York auto insurance laws require $25,000, $50,000 or $10,000 in coverage. These figures cover bodily injury liability per person, total bodily injury per accident, and property damage per accident, respectively.

New York State is different in that it requires twice the bodily injury liability limits in the event the accident results in death, taking the limits to $50,000/$100,000. Owning a car is expensive in NYC if you haven’t figured that out yet.

Personal Injury Protection

Personal injury protection or PIP is required in New York, as well as several other states. It is an extended type of auto coverage that assists with medical costs and can cover lost wages and other miscellaneous charges.

Medical Coverage

New York is what is referred to as a “no-fault” state. All individuals that have New York auto insurance are required to have this coverage. This covers the insured’s medical costs, regardless of fault. There is some controversy over this type of coverage as it is generally expensive and is thought to create redundant coverage when the insured also has regular medical insurance.

Uninsured/Underinsured Motorist Coverage

Uninsured/underinsured motorist coverage is optional in some states but, required in New York. This coverage will cover the insured, up to the limits they have purchased, if they are in an accident caused by another driver and that driver is not insured or does not have sufficient insurance to cover the full liability. Another common case that this type of insurance is helpful is in the event of a hit and run.

Other New York Auto Insurance Requirements

New York State requires that auto insurance remain in effect while a vehicle is registered, regardless whether or not the vehicle is being used. If a vehicle is not being used, New York State requires that plates are returned to the state to cancel the registration.

New York auto insurance law requires that New York drivers have insurance in the state, out of state insurance is not acceptable. This state also requires that the insurance must be in the same name as the registered owner. Neglecting to follow this requirement will result in a lapse of insurance and the registration will be suspended; the owners’ driver’s license will also be suspended if the lapse exceeds 90 days.

By: Rex Freiberger

Auto Insurance FAQ – To Sharpen Your Car Insurance IQ

admin — Mon, 22 Feb 2010 17:01:54 +0000

Auto Insurance FAQ – with Important Info for Today’s Motorist

Below you will find some frequently asked questions with constructive, money saving suggestions.

Question: What is meant by laws regarding “car financial responsibility?”

Answer: According to state law, you are required to bear responsibility for events that transpire while you are driving

Question: What if I decide to drive my vehicle without car insurance?

Answer: Depending upon which state you live in, refusal to buy insurance coverage may result in of fines, loss of drivers license or possibly serving a jail sentence. It is mandatory to have vehicle insurance in all states except Wisconsin and New Hampshire.

Question: Will my coverage protect everyone who drives my vehicle?

Answer: Yes, however this is true only if that driver has your permission to use the vehicle.

Be aware that some policies require all members of your household who drive your car to be named on your policy. In this situation, anyone living with you who drives your vehicle without being named on your policy, would not be covered.

Question: What liability limits do you recommend?

Answer: It is generally agreed among insurance agents that what state law requires is not sufficient.

My recommendation is 100:300:100.

·         $100,000 for bodily injury per person
·         $300,000 for bodily injury per accident
·         $100,000 for property damage per accident

In the US, medical costs are, for the most part, comparable from state to state. So the above bodily injury guidelines apply equally in all states.

You should consider increasing the property damage portion if you live or work in an area where property values are extremely high and the residents drive expensive vehicles. It doesn’t take many Rolls Royce or Lamborghinis to exceed $100,000.

Question: Is auto insurance needed by newly licensed teenagers?

Answer: Yes…absolutely! All drivers must be insured. You must be named on the policy of someone in your household or have your own policy.

Question: In deciding to renew or cancel a policy, what guidelines do insurance companies go by?

Answer: The bottom line consideration is…are you a “worthwhile risk?” Do you have a clean driving record? How is your credit history? Have you filed any claims? These are the major factors, but every insurance company has their own criteria for evaluating risk.

Take a good look in your “visor” mirror. Do you see an A1 driver staring back at you?

Hope you enjoyed this auto insurance FAQ.

By: Joe Goodman

Michigan No-Fault Automobile Insurance Basics

admin — Fri, 22 Jan 2010 23:44:40 +0000

No-fault insurance is required by law in Michigan. Every auto owner must purchase certain basic coverages in order to register a vehicle in Michigan. It is against the law to drive, or let your car be driven, without no-fault insurance. The basic no-fault policy has 3 parts:

1) Personal Injury Protection (PIP)

If you are injured in a car accident, this part of your no-fault policy will reimburse all of your medical costs. It will also pay, up to a maximum amount, for the earnings you would have made if you had not been injured, for up to three years.

In 2007, the allowed amount under no-fault was $4,589 per month. If you are killed in an accident, your policy will pay your family up to the monthly amount for three years, based on what they would have received from your earnings and fringe benefits. You may also be entitled to up to $20 per day for replacement services, such as housekeeping, that you are no longer able to provide for yourself or your family because you are injured.

You may synchronize PIP coverage with any health or disability policy you have (except Medicaid, Medicare or a Medicare supplemental policy) to reduce your PIP premium. The health or disability plan then becomes the primary payer for medical or wage loss expenses, and the auto policy would cover remaining medical or wage loss expenses. These coverages are also called excess medical and excess wage loss.

2) Property Protection Insurance (PPI)

In Michigan, no-fault will pay up to $1 million for damage your car does to other people’s property, such as buildings and fences. It will also reimburse for damage done to other people’s properly parked vehicles.

3) Residual Liability Insurance Bodily Injury and Property Damage (BI/PD)

The no-fault law protects insured persons from being sued as the result of an auto accident except in certain special situations. These are some of the circumstances under which you could be sued:

One, if you cause an accident in Michigan in which someone is killed or seriously injured.

Two, if you are involved in an accident in Michigan with a non-resident who is an occupant of a motor vehicle not registered in Michigan.

Three, if you are involved in an accident in another state.

Four, you can be sued for up to $500 in damages to another person’s car, which is not covered by insurance, if you are 50% or more at fault in the accident.

A Michigan required no-fault policy will pay up to your coverage limit amounts if you are sued or are legally responsible for damages in these situations.

The minimum required Residual Liability Insurance Bodily Injury and Property Damage coverage limits are:

Up to $20,000 for a person who is hurt or killed in an accident.

Up to $40,000 for each accident if several people are hurt or killed.

Up to $10,000 for property damage in another state.

These limits are often called 20/40/10.

Courts sometimes award more than these amounts. If this happens, you would be responsible for paying the amount not covered by your policy. To look after themselves, many people buy extra liability insurance.

There are some optional insurance coverages you may wish to consider. Michigan state law does not require that these be purchased-

Collision Insurance which pays for repairs to your car when it is damaged in a crash, Comprehensive Insurance which pays for your car if it is stolen or for repairs if it is damaged by falling objects, fire, flood, vandalism, or collision with an animal, and Uninsured Motorists Coverage which covers you if an uninsured motorist seriously injures you or a member of your family.

An eligible person for auto insurance is a person who has a car registered in Michigan or has a valid Michigan driver’s license. However, there are times when a company can refuse to insure you.

You can be denied car insurance if:

-you are not required by law to have no-fault insurance.

-your driver’s license is suspended or revoked.

-within the past five years, you have been convicted of attempting to defraud an insurance company, or have been denied payment of a claim over $1,000 because there is evidence of fraud on your part.

-within the past three years, you have been found guilty of a felony with a motor vehicle, driving under the influence of alcohol or drugs, failing to stop at the scene of an accident, or reckless driving.

-the car you want to insure does not meet Michigan safety requirements.

-within the past two years, your auto insurance has been canceled because of non-payment of premium. This can be waived if you pay the entire premium on the policy you are buying in advance.

- the insurance you would like to buy requires you to be a member of a group, club or organization and you are not a member of the group or do not join the club or organization.

-your driving record has more than the allowable number of “eligibility points.”

-you do not meet the requirements of a company’s underwriting rules.

Insurance Eligibility Points

Insurance companies assign insurance eligibility points for certain traffic violations.

These points are not the same as points on your official driving record. You can be turned down for auto insurance if you have seven or more eligibility points from violations within the past three years.

How insurance companies assign eligibility points:

-Driving more than 15 mph over the speed limit (careless driving) – four points

-Driving 11-15 mph over the speed limit – three points

-Driving 15 mph or fewer over the speed limit on freeways that used to have a maximum speed limit of 70 mph – two points

-Other moving violations – two points

-The first accident in which you are more than 50% at fault – three points

-The second and all following accidents in which you are more than 50% at fault – four points

Company Guidelines

Insurance companies also use certain guidelines, called underwriting rules, to help determine whether they will insure you. These rules may be different for each company, but each company must apply its rules in the same way to everyone.

Ineligible Persons

If you find you are not eligible for auto insurance, you may want to ask your agent to apply to the Michigan Automobile Insurance Placement Facility for you. The Facility was created to offer insurance to those persons who have difficulty finding insurance through regular companies. Any licensed agent can help you apply for insurance through the Facility.

By: Marie Wakefield

Michigan Car Insurance Quotes And The Minimum Requirements

admin — Fri, 25 Dec 2009 15:47:33 +0000

If you need a Michigan car insurance quote but you’re not sure what to quote on, here are a few tips to get the right quotes and save money. This includes the minimum state requirements for auto insurance.

By law, Michigan requires that you purchase no-fault car insurance if you own a vehicle. According to Michigan’s official state Web site, they have the most comprehensive no-fault auto insurance system in the country.

With this system, vehicle owners and their families are provided with unlimited medical and rehabilitation benefits, wage loss benefits and $20 per day for replacement services for up to three years if injured in an auto accident — no matter who was at fault.

The minimum parts of a no-fault policy that must be carried on your vehicle are:

Personal Injury Protection, or PIP, which pays necessary medical costs if you are injured in an accident.

Property Protection, or PPI, which pays up to $1 million for damages your car does in Michigan to other property.

Residual Bodily Injury and Property Damage Liability Insurance, also known as BI/PD. This pays for defense costs and damages if you are found liable in an accident. The minimum limits you must purchase are:

Bodily Injury — $20,000 per person who is hurt or killed in an accident, and $40,000 per accident if several people are hurt or killed.

Property Damage — $10,000 for property damage in another state.

You can also increase your limits to provide more financial protection, and add optional coverages such as Uninsured Motorist and Comprehensive.

Since car insurance companies in Michigan charge different rates from company to company, one of the best ways to save money is to get several quotes. Provide the same information and request the same coverages for each quote in order to get the most accurate comparison.

By: Scott Lunt

Rules for Insurance Coverage

admin — Fri, 04 Dec 2009 09:32:35 +0000

Insurance is essentially a contract between the insurer and policy owner. Insurer agrees to pay an amount to the person insured or his nominee at any unfortunate event (according to the policy) or at the date or maturity or at death of the policy owner. Policy owner has to pay a fixed amount called premium in periodic intervals (monthly, quarterly, half yearly or yearly). Premium amount varies depends on many factors like age of the policy owner, scheme, type of the policy, sum assured etc.

The various types of insurances are:

Car Insurance

If you use an automobile for your business activities – for example, transporting supplies or products, visiting customers, or ferrying employees or customers – you need to make certain your automobile insurance will protect you from accidents that occur while on business. Car insurance takes care of all this.

Health & Disability Insurance

Health insurance is needed to cover the medical costs if you fall ill or hurt yourself and Disability insurance is needed if you are unable to work because of sickness or injury.
Insuring Workers

Once you hire an employee, it becomes your duty to compensate to cover what it costs if the employee is hurt on the job and needs medical treatment and income until he can return to work. Compensating injured workers insurance policy takes this load off your head.
Umbrella Policies

An umbrella policy offers you extra liability insurance that pays for a loss when the limits of your policy are reached. Suppose, if you’re responsible for someone’s injury that requires Rs.1, 50,000 of medical treatment and the liability limit in your underlying policy is Rs.1, 00,000, your umbrella policy will pay the additional Rs.50, 000.

Four key rules of insurance coverage:

1. Insure against the big catastrophes and disasters only. Differentiate what you can’t afford to pay for out of pocket and always remember that “the cheapest insurance is self-insurance”.

2. Carry the largest possible deductibles you can afford. The larger the deductible, the more you are self-insuring and the cheaper the premium will be.

3. Trust only the best-rated insurance companies. You need insurance companies you can depend on and no hidden costs and conditions.

4. Choose your agent carefully. He should not be a mere third party, rather he should be the first person you contact in case of an emergency knowing that he will take a prompt action on the insurance front while you take care of the damage.

5. Study your insurance plan very carefully and discuss every situation possible. Also study the feedback given by previous or existing customers of the company.

By: Tarang Bhargava

What Is Auto Insurance And Why Do I Need It?

admin — Fri, 06 Nov 2009 11:16:26 +0000

Auto insurance provides financial protection in case you are involved in an auto accident. If an accident occurs, an auto insurance policy provides financial coverage to pay any resulting vehicle damages, property damages, and/or medical costs. The amount of money the policy provides versus the amount of money you pay out of pocket will depend on the type of coverage purchased, the financial limits of each coverage, and your deductible.

Because, all states have financial responsibility laws you must have at least auto liability insurance, or you must have sufficient funds and/or assets, based in you states requirements, to pay any damages you cause in an auto accident. In addition, many financial lenders require a certain amount of auto insurance until the car loan is repaid.

What type of auto coverage is available?

There are basically six types of coverages available through reputable insurance companies. Each coverage provides financial protection for different types of losses and damages, and is priced separately.

1. Bodily Injury Liability Mandatory in most states

Pays up to the coverage limits for damages due to injury or death of others you cause, and for legal costs.

2. Medical Payments or Personal Injury Protection (PIP) Optional in most states without no-fault coverage

Pays up to the coverage limits for physician, hospital and funeral expenses for you and/or your passengers injured or killed in an accident.

3. Property Damage Liability Mandatory in all states

Pays up to the coverage limits for someone else s damaged vehicle or property for which you or the operator of your vehicle is legally responsible.

4. Collision Required for vehicle loans

Pays for damage to your vehicle caused by a collision or rollover. Depending on your deductible, you will need to pay some of the expense out of pocket. Deductibles range from $250 to $1,000.

5. Comprehensive Required for vehicle loans

Pays damage to your vehicle caused by theft, fire, vandalism, flooding, hail, or collision with something other another car such as an animal. Deductibles range from $100 to $300.

6. Uninsured and Underinsured Motorist Coverage

Pays up to the coverage limits for injuries and damages an uninsured or an underinsured motorist causes to you, your family and your vehicle.

How much coverage do I need?

Most states only require the minimum amount of liability coverage. However, you should consult with your insurance company to discuss the best type and amount of insurance coverage you will need based you your driving habits. The minimum coverage may not be enough to pay for all the damages caused by you. The Insurance Information Institute (I.I.I.) recommends that you have $100,000 of bodily injury protection per person and $300,000 per accident.

By: Alexei Timchuk