Auto Insurance Law » Minimum Liability

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

California Auto Insurance – Simples Steps to Help Lower Your Auto Insurance Rates

admin — Thu, 03 Jun 2010 18:18:29 +0000

California auto insurance is compulsory for all drivers in the state. California is a tort state, which makes you financially responsible for injuries and damages in auto accidents. Maintain a good driving record with higher deductibles to arrive at affordable California auto insurance with sufficient coverage. Of course, other factors like number of miles driven each year, driving experience, etc. play prominent roles in deciding your insurance rates.

What decides my financial responsibility?

You can prove your financial responsibility in any one of the following ways:
Have an automobile liability insurance policy Surety bond for $35,000 from insurance company to do business in California Self-insurance certificate of DMV, if you own more than twenty-five vehicles Cash deposit with DMV for $35,000

What is the minimum coverage available?

California auto insurance offers minimum liability insurance of $15,000 for physical injury or death per person per accident, $30,000 for all persons affected in an accident, and $5,000 for damages to property per accident. Your insurance coverage should have this minimum coverage; otherwise, you should provide alternative methods of paying for damages due to any accident. California law does not make other coverage like collision, comprehensive, medical payments, uninsured motorist, etc. compulsory.

How you can acquire auto insurance?

There are many insurance companies in California offering different insurance rates for their policies. Different companies calculate their rates according to their experiences, expenses, losses, etc. You need to scout around for various insurance companies, agents, brokers, etc. to get a fair idea of different rates in same geographical region. You can take help of the Internet or call up different insurance companies to gather information. Thereafter, you can choose the most suitable insurance company, which offers necessary coverage at rates affordable by you.

What if no company is willing to insure my vehicle?

It is possible that no California auto insurance company is willing to provide you coverage. You can then receive liability coverage through California Automobile Assigned Risk Plan (CAARP). You need to approach such agents or CAARP directly. They then assign your application to any licensed insurance company. All such insurance companies have to accept CAARP applicants and there can be no broker’s fees or charges. You can take up a regular insurance from standard companies after three years of clean driving record.

By: Austin Davis

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

Legal Requirements For Car Insurance – Houston, Texas

admin — Thu, 06 May 2010 16:18:40 +0000

If you live in Houston Texas and would like to take a drive down to a Texan farm, be careful. The law is severe and it prohibits anyone from driving a vehicle without specific car insurance. A car owner must have the minimum liability auto insurance policy while driving in Texas. This means that you must be able to provide for your own cover and the damages that may arise if your car is involved in an accident, which causes damage to third party property and personal injury to others. The Texan law requires minimum coverage, commonly referred to as 25/50/25. This means that coverage must be available to the extent of $25000 for each injured person, $50000 for every accident and $25000 for damage to property. A policy for car insurance Houston Texas may suitably cover the above limits but if the damages are more than the above limits, it is important to note that the party affected may sue the car owner to recover the costs.

A car insurance Houston Texas policy would also need to be updated as per the legal requirements. This means that if you are having a policy that provides for low damage provisions, you need to upgrade that policy immediately to be on the better side of the law. Failure to do so would mean that you stand a risk of your insurance getting revoked and your registration being cancelled. To once again apply for a registration involves the paying of a hefty penalty which might be delayed due to scrutiny of past records.

Major car insurance firms providing for car insurance Houston Texas policies advise their customers regularly about the updates that are available from time to time from the authorities. Immediate online quotes are also provided by most insurance companies providing for car insurance Houston Texas policies. It is always better to be on the safer side of the law and irrespective of whether you are a student or a veteran there are no provisions in the law that would provide you with specific exemptions because of your status. In fact if you receive a ticket for having no insurance while on the road, the second ticket would mean sure trouble which may even include cancellation of your registration certificate and excessive penalties. The internet is the best place to obtain all details about a Texas car insurance policy where you get online quotes as well.

By: Robert Linley

Virginia Auto Insurance – Stop Over Paying

admin — Sun, 11 Apr 2010 14:33:51 +0000

Virginia Auto insurance

Virginia auto insurance depends on specific laws and designates financial responsibilities on vehicle owners and drivers. If you drive in Virginia, you need to either have Virginia auto insurance with sufficient liability coverage or provide a solid proof to show you have adequate money to pay for all losses due to any accident. This is Financial Responsibility. This restricts drivers from speeding away on highways leading to accidents.

What are the available options of Financial Responsibility?

Three main options of Financial Responsibility of Virginia auto insurance are:

1. You need to register your vehicle with a licensed insurance company of Virginia with minimum liability insurance coverage.

2. Without such liability coverage, you should pay $500 Uninsured Motor Vehicle fee to Department of Motor Vehicles. This fee does not guarantee any insurance; it only allows you to drive your vehicle at your own risk. You however, need to renew your registration regularly.

3. Business vehicle owners need to secure surety or self-insurance bonds from Department of Motor Vehicles.

What will happen if I do not have any financial responsibility?

If you do not have any Virginia auto insurance or fulfill any options of financial responsibility, you can face suspension of your driving license. Further reinstatement of such license is possible only through payment of specific fees like statutory fee, reinstatement fee, etc. You also need to file certain documents with Department of Motor Vehicles for three years and get a proper insurance. Still, these do not help you pay for many valid claims against you and your assets in the event of any accident.

What should be my minimum coverage?

Minimum coverage should include bodily insurance of $25,000 per person each accident, $50,000 for all bodily injuries in an accident, and $20,000 for damages to property. Uninsured or Underinsured motorist coverage protects you from losses due to negligent driving of others. Auto insurance of Virginia pays only amount over and above what you receive as damages from other party in case of an accident. However, total reimbursement amount cannot exceed your uninsured or underinsured motorist coverage.

By: Austin Davis

Cheap Teen Auto Insurance

admin — Tue, 30 Mar 2010 21:55:29 +0000

Anyone looking to buy cheap teen auto insurance in Arizona should start by learning about the state’s auto insurance laws. In Arizona, all cars on the roadways should be covered by one of the statutory forms of financial responsibility. Because of this, drivers purchase auto liability insurance. The minimum liability insurance is $15,000 for bodily injury for one person per accident, $30,000 for two or more persons per accident and $10,000 for property damage.

Statistics show that the chances of an accident are much higher during your teen’s first year driving. This makes it harder get good rates on teen insurance. However, there are some ways in which you can qualify for discounts on teen insurance.

Maintaining good grades and taking driver education courses will help you buy cheap teen insurance in Arizona. Auto insurance companies offer discounts to students who study full-time and maintain at least a B grade. A teen that has completed a driver’s education course is considered a safer driver, and is able to save 10-15 % or more.

The state of Arizona offers several different “classes” of driver licenses. Teens have to fulfill some serious requirements before they can advance to the next level. These requirements range from certain amount of practice to maintaining an immaculate driving record. Teens, who maintain a good driving record for a year, are likely to get a discount on premiums. On the other hand, one DWI conviction is enough to raise the premium.

Choice of vehicle is also important for getting lower auto insurance rates. Buying a cheaper or a safer car can save you money. Going for a cheaper car means avoiding big cars and classics, as the insurance rate on them is much higher than other cars. The other option that you have is buying a car that is considered a safe car, such as Honda Civic or a car that is fitted with safety features (anti-theft, air bags, etc).

You can also cut your teen insurance costs by combing policies. For example, you can combine your house insurance policy with your teen’s auto insurance to save money on both.

A very good way to buy cheap teen auto insurance in Arizona is to visit an insurance quotation site. A quotation site gives you a comparison of the insurance rates in your area, so that you are able to identify the company that meets your needs best.

By: Paul Whitehead

Interesting Auto Insurance Law Facts

admin — Mon, 15 Feb 2010 00:26:32 +0000

The law regarding auto insurance Texas is as follows: The minimum liability for bodily injury liability limit is set at United States Dollars 25 000, a maximum of United States Dollars 50 000 for each accident and the limit for property damage is U.S. D. 25 000. This is generally termed 25/50/25 coverage.

Insurance coverage in Texas requirements for higher coverage went into effect in April first 2008. A tort system is followed in Texas, this means that someone has be found guilty of the accident and then they and the insurance company they are underwritten by is liable for the damages. The specifics of the tort system do differ from county to county.

There is priceless cover at hand to cover bodily damage caused by a driver of a motor vehicle that is either not insured or under insured. This is not mandatory in Texas however it is highly recommended to purchase this cover.

Certain online insurance companies offer the option of selecting the minimum required package for that particular state. You can also tailor make a package to suite your needs. Most companies have licensed agents to help you throughout the process of obtaining insurance.

Insurance premiums in 2008 in Texas averaged U.S. D. 846.93 this was 1.10 percent up from the year before.. Liability cover was on average United States Dollars 476.39, Collision cover was United States Dollars 321.19. Comprehensive cover was lower at U.S. D. 146.50 on average. The Texan average was lower than sixteen states and was higher than thirty three states.

Various factors such as speed limits in highways and cities, blood alcohol percentage. Also the driver and passengers are prevented from having open alcohol in their possession whilst in a moving vehicle. Hand held cell phones are not banned. Bus drivers need a licensed driver present if they are 17 years old.

People who are caught driving drunk have their licenses suspended for 90 days. There are instances whereby driving privileges are reinstated during the period of suspension. Data collated regarding insurance premiums is as follows:

2008 average premium United States Dollars 849.932007 average premium U.S. $ 837.402007 -2008 percentage change was 1.10 percent.

The collision cost in 2008 was United States Dollars 321.19. Liability cost for 2008 was United States Dollars 476.39. The comprehensive cost for 2008 was U.S. D. 146.50 whilst the premium rank was 17.

There are a variety of websites available on the internet where one can search for information and the best premiums available to you. You are sure to find something that will suit both your needs and your budget to an absolute.

By: Ted Kripps

Full Coverage Auto Insurance Quotes – Where to Get the Cheapest

admin — Wed, 10 Feb 2010 09:48:22 +0000

Looking for full coverage auto insurance quotes? Want to get the most coverage for the least amount of money? Here’s how …

Full Coverage Auto Insurance

Full coverage auto insurance pays for medical expenses, repair costs, and liability law suit expenses when you’re involved in an automobile accident. It also pays for expenses if you’re hit by an uninsured or underinsured driver. Here are the various coverages you should have and how you can save money on them.

Liability Insurance

Liability insurance pays for claims made against you, plus your legal fees, if you injure or kill someone. It also pays for claims made against you when you damage someone else’s property.

Imagine what would happen if someone won, say, a $500,000 lawsuit against you? Would you be able to pay it? Probably not. That’s why liability insurance is so important.

If you don’t own a lot of personal property you may want to carry the minimum liability insurance your state requires. If you do own a lot, then you’ll want to increase it to cover your assets.

Personal Injury Protection Insurance

PIP pays medical expenses for you and your passengers when you have an accident. It also pays for you and your family’s medical expenses if you’re in another car.

If you have medical insurance you may want to skip this coverage. But if you don’t, or if you live in a high-accident area, then you should purchase it.

Collision and Comprehensive Insurance

Collision coverage pays for damage to your car from an accident no matter who was at fault. Comprehensive coverage pays for damage to you car from fire, theft, vandalism, storms, etc.

To save money on collision and comprehensive coverage you’ll want to get the highest deductible you can afford to pay. If you drive an older car that’s worth less than your annual premium plus your deductible, consider dropping these coverages.

Uninsured Motorist Insurance

Uninsured motorist insurance pays for medical expenses and property repairs caused by an uninsured, inderinsured, or hit-and-run driver. This is good coverage to carry, especially if you live in states that have a large number of uninsured drivers like Alabama, Arizona, California, Mississippi, and New Mexico.

How Get The Cheapest Full Coverage Auto Insurance

The best way to get the cheapest full coverage auto insurance is to get quotes from an auto insurance comparison site. Here you can compare quotes from different companies and choose the best policy with the lowest rate.

By: Brian Stevens

Pennsylvania Auto Insurance Laws – 5 Car Insurance Laws in PA That You Need to Know

admin — Sat, 23 Jan 2010 09:31:32 +0000

It is important to understand the various Pennsylvania auto insurance laws. Why? Because understanding these laws may just end up keeping you safe and saving you some money! Laws regarding car insurance change greatly depending on the state you live in. Some places have very straight forward or even practically non-existent laws, while others have more complicated and detailed laws. No matter where you live it is essential to know certain laws regarding auto insurance if you own a car. The state of Pennsylvania is no exception. There are, in fact, 5 car insurance laws in PA that you need to know.

Law #1 – PA’s Minimum Requirements For Car Insurance

The state of Pennsylvania mandates that you carry minimum liability limits of $15,000 per person bodily injury, $30,000 per accident total bodily injury and $5,000 per accident property damage. It also requires you to carry $5,000 in medical expenses coverage. These limits are extremely low and not satisfactory protection for most people when involved in a serious accident.

Law #2 – PA Is A No-Fault Auto Insurance State – Sort Of

You need to choose if you will have a limited tort or full tort option on your PA car insurance policy. Choosing full tort gives you better coverage if you are hurt in an accident. Limited tort is less expensive but it prevents you from receiving compensation for pain and suffering by limiting your right to sue the other party.

Law # 3 – There Are Hefty Penalties For Not Having PA Car Insurance

If you are caught driving without liability car insurance in the state of Pennsylvania, you will get a 90-day suspension of your license and several fines and fees.

Law # 4 – Pennsylvania Has An Assigned Risk Plan

In Pennsylvania, there is an assigned risk plan that ensures everyone can get auto insurance, no matter how high-risk they are. If you have been refused coverage, cancelled, or are having trouble getting coverage, you may want to check into it.

Law # 5 – You Can Stack Uninsured Motorist Coverage For Extra Protection

If you have more than one vehicle on a policy, you can stack the UM coverage on them for an additional premium and get additional protection.

Compare Pennsylvania Car Insurance Policies

Now that you are familiar with these 5 PA car insurance laws, you are well prepared to start shopping around for your car insurance needs. Use a free online quote tool, and you can compare top companies that are ready to offer you the coverage you need.

By: James J. Robinson