Auto Insurance Law » Motorists

Car Insurance Scam

admin — Thu, 17 Jun 2010 03:54:21 +0000

Have you wondered why your premiums are going up for your car insurance? There is a motoring scam currently sweeping across Britain’s roads with fraudulent motorists staging crashes in order to claim compensation. This is seen as making money quickly by criminals who deliberately slam on their brakes so the unaware driver behind them bumps into the back of them. Then it’s a case of faking whiplash symptoms to the doctor and claiming through the other driver’s insurance for damage and injuries.

This potentially lethal scam is not only increasing the premiums on the involved driver’s policy, but in fact, everyone’s policy. The estimated value of fraudulent cases per year is around £1.6 billion. This has resulted in the insurance companies increasing the cost of annual policies around £50 in a bid to balance the cost that the insurance companies are losing through the claims.

The police have warned people to be ever so vigilant on the roads and to keep a safe distance between other cars. This is a popular scam adopted by many well organised criminals.

Some fraudsters who are not even on the scene at the time of an incident are claiming compensation claiming they were a passenger in the vehicle, after one or two simple visits to the doctor/hospital; they can receive up to £2,500. An owner of a towing company has also been prosecuted as he had claimed he had towed hundreds of vehicles from crash scenes which had not even been involved in an accident.

This will no doubt lead to a review of the claiming process where claims will become a lot more complex.

By: Barry Loughran

Car Insurance for the Convertible

admin — Tue, 08 Jun 2010 13:19:53 +0000

With the warmer weather approaching, many Brits will be considering buying a convertible so that they can live the dream of driving on the open road with the wind in their hair.

However, before getting too carried away, it is important to make sure you take the time to choose comprehensive car insurance.

This is according to a leading comparison website which indicates that to insure a typical convertible vehicle you will be paying around £32 more every year than you would to insure an average hard-top car.

The site also said that they found many people who are considering a convertible don’t consider the more practical concerns and the costs involved.

As motor cover is becoming increasingly more competitive, it is important to spend the time searching for cheap car insurance to ensure that you are getting the best deal you can.

In addition to this, the website reminded motorists not to leave valuable items in their car and to make sure that it was parked in a secure place.

Another leading comparison site have recently revealed that rising car insurance costs are causing 8 per cent of vehicle owners to use their vehicle less often in order to try and keep the costs down.

In addition to people using their cars less, figures have been released which show that the sales of second-hand electric vehicles have risen by 473.5 per cent. The highest rise of sales was in East Anglia.

Hybrid cars have also seen a boost in sales as their popularity has gone up by 71.8 per cent and used diesel car sales have gone up by four percent.

Due to the effects the economy has had recently, more and more people are concerned about the extra costs of running a car and also their capacity to purchase a vehicle.

As a result of theses worries, many seem to have resorted to purchasing more eco friendly vehicles to ensure saving money.

Another way people are trying to save money on their car is by finding cheap car insurance and this seems to be a lot simpler if you are female, as women’s car insurance is a lot less due to women being statistically safer drivers.

By: Gill Critchley

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

Cheap Car Insurance in Miami, Florida

admin — Fri, 30 Apr 2010 14:19:41 +0000

If you live and drive in Miami, Florida, you need “Florida Coverage” car insurance. All this really means is that you have to have auto coverage that was issued in the State. You’ll need to have this in place when you go to the DMV to pay for the registration.

Although it is relatively simple to find and secure a car insurance policy, most motorists who live in Miami want to find the cheapest rates possible. Although anyone can find a low rate by only buying minimum coverage, this isn’t going to be enough should you find yourself in an accident.

If you’ve already been in one collision in Florida you may actually have to purchase coverage for bodily injury. This is decided on a case by case basis, but it’s important that motorists shopping for coverage be aware of that fact.

When you do want more coverage than what the law suggests as minimal, consider using these money saving tips:

• If you only use the car for recreational purposes, tell the car insurance agent this. This often applies to stay-at-home parents as well as the elderly. It costs more to insure a vehicle that is driven back and forth to work each day.

• Elderly drivers can also take a defensive driving course. Miami is a haven for the retired and many Miami based insurance companies realize that more mature drivers may pose a risk. If those motorists take a defensive driving class to proof they are still competent behind the wheel, they may be eligible for a discount.

Although it can be tedious to call different agents to ask for car insurance quotes the savings you can enjoy will be worth the trouble. Many motorists are shocked when they realize that quotes for the exact same coverage can vary by hundreds and even thousands of dollars a year depending on the company. When you know this, it becomes much less of a task to gather those quotes.

By: Deborah Mills

Don’t Let Naked Drivers ‘Lay You Up’

admin — Sun, 14 Mar 2010 20:37:36 +0000

Someone once referred to motorists driving on the highway without insurance as “naked” drivers. Well, there’s a lot more of them driving on the roadway today than ever before and its only getting worse.

As of 2004, 14.6% of all the drivers on the road today don’t have automobile insurance according to the Insurance Research Council (IRC). So if you get hit by one of these drivers, instead of the at-fault driver’s auto insurance policy covering the costs of the victim’s vehicle repairs and replacement rental car; it ends up being YOUR responsibility to pay for everything! What happens is that the responsible drivers who purchase insurance end up paying for injuries caused by uninsured drivers. Now that has really made me a defensive driver. And what I mean by defensive is protecting my family and vehicle from the damage they cause.

Not carrying auto insurance is against the law in most states but it happens more often than most people realize. The (IRC) reports that about one in seven at-fault drivers in a collision with another vehicle will be uninsured. The 5 States with the highest uninsured driver estimates were Mississippi (26%), Alabama (25%), California (25%), New Mexico (24%), and Arizona (22%).

According to Steve Cox, Vice President of the Council of Better Business Bureaus based in Arlington, VA, what happens to you after this type of accident can be upsetting and expensive. “Despite the fact that you are the victim, if an uninsured driver slams into your car, YOU are obligated to pay the deductible and YOUR auto insurance will be used to cover repairs.” Many drivers have to ‘Ad On’ uninsured, underinsured motorist and replacement rental car coverage to their auto insurance policy just to cover the naked drivers.

Since the most two most frequent vehicle accidents on the highway today are getting hit while parked and the rear end collision you can at least start protecting your family, vehicle and insurance from these drivers with a few aftermarket products. So how long will a typical rear end accident ‘lay you up’? Well, here are the averages: you’ll spend 35 minutes at the accident scene filling out forms; 78 minutes filling out forms after your accident; 4 hours getting repair estimates and 2 days without your car.

Uninsured drivers say a combination of lack of money, the necessity of driving, and feeling that insurance is one thing they can do without is usually what keeps them from stopping. When short on cash, most people would rather screw the insurance company. And the chances of going to jail are slim to none.

You can’t afford to let these drivers ruin your day, cripple your family, wreck your vehicle, steal your deductible or jeopardize your insurance! Don’t be victimized twice! You can take a proactive approach to this and protect your family, vehicle and insurance before the “auto body shops” get you or you can wait until it happens and wish you’d done something about it. There are products on the market today that will prevent a lot of this damage and with a $500 deductible or more it’s defiantly worth your time to try to find them.

By: Jeff Mohr

Comparing Auto Insurance Coverage – Liability Or Full Coverage?

admin — Fri, 12 Mar 2010 00:15:28 +0000

If you are a first-time driver, locating reasonable auto insurance can be one of the major challenges after the initial purchase of your car. There is no shortage of car insurance companies standing ready to offer you competitive rates as well as different kinds of insurance policies. There are two types that are most readily used by motorists: liability and full coverage. These two types of coverage represent the bottom line. Any other particulars of certain policies are built off of these. What are some of the differences? Is one better than the other?

Each state has its own guidelines and specific provisions that govern the use of car insurance. The regulations declare what minimum amount coverage is required by law. If you want to drive legal in most of the states, you will need liability insurance coverage. Liability insurance coverage provides the motorist protection against damage and injuries which were caused by you, including property damage.

This type of coverage is described in terms of numbers. Each of these numbers represents the components of the liability coverage. They are written like so: 20/60/10. The first number is the maximum amount your insurance company will pay to cover bodily injuries sustained by a single person, per accident. The second is the maximum amount that your insurance provider will pay for every injury caused by a single accident. The third number is the total amount that will be paid to cover property damage.

With full coverage you have far more provisions available to you. Yet there is a misconception that if you have “full” coverage, that all circumstances will be covered. This is not true. Full coverage includes two additional areas or components of insurance coverage besides liability called collision and comprehensive. Full coverage has a degree of flexibility about it. You do not necessary need both of these additional components. For example, comprehensive can be added by itself. In order to have to collision coverage you must have comprehensive.

With comprehensive coverage you have protection against other forms of damage such as those that come from natural disasters, fire, vandalism, and theft. For those who add collision coverage, they do so because they want protection in auto collisions.

There are clear differences between liability and full coverage. What type you decide to purchase depends on different factors like whether your car or truck is new, used, or under financing. It may also be a matter of how much coverage you want to buy. The costs will be higher if you opt for fuller coverage rather straight liability. If there are other features or special areas of coverage provided by the individual auto insurance provider, you may decided to pay for some parts but not others.

It is important to understand what type of coverage you need as well have a working knowledge of other types of coverage available and what each one offers you, the motorist.

By: Joseph Kenny

Cheap Car Insurance in Atlanta, Georgia

admin — Tue, 09 Mar 2010 07:49:04 +0000

Although many states in the union have laws that state that insurance companies have to offer a discount for having an anti-theft device in the car, such as an alarm system, Georgia doesn’t. The people of Atlanta need not fret though as many car insurance companies in this area of state, actually encourage their clients to purchase and install a safety device by offering them cheaper car insurance. This is a great way for motorists to enjoy lower premiums and decrease the chances of their car turning up missing.

In addition to having a car alarm, many car insurance companies offer additional discounts that can help in the quest for cheap car insurance in Atlanta, Georgia. One discount that many newly-married couples don’t take advantage of. Although marriage is a blending of two lives it also should be a time when two car insurance policies become one. Many insurers offer a discount for families that insure two or more cars. Even if you’re not married you can take advantage of this particular discount by taking out one policy with your roommate, sibling, child or anyone else living in the same home with you who drives.

If you’ve been negligent when it comes to obeying traffic laws, such as speeding restrictions, you may have noticed your car insurance costs going up. Many insurance companies now offer a discount to clients who have a history of citations, if they take a defensive driving course. Taking a course like this illustrates to the insurance company that the individual wants to improve their reckless driving habits. It’s best to ask about the discount before investing in the cost of the course.

Remember that driving better in the future will ultimately lower the premiums. Insurance companies offer the cheapest rates to the best drivers, so if your record isn’t spotless, adopt better driving habits.

By: Deborah Mills

Auto Insurance in America

admin — Mon, 01 Mar 2010 11:19:01 +0000

Driving without auto insurance is against the law in 48 out of 50 in the United States. All states have laws on the books mandating, or at least strongly recommending, that drivers carry vehicle insurance. However, two states, Wisconsin and New Hampshire only require motorists to stipulate they have enough money to take financial responsibility in the event of an accident. According to the experts, driving without car insurance poses a threat to the other motorists on the road, as well as to yourself.

One accident has the potential to financially wipe out an individual or family, causing them to lose everything, up to and including their house. While mandating or recommending auto insurance, not all states require drivers to show proof of insurance during a routine traffic stop. Auto insurance may be required, but only in the event of an accident. The rule of thought behind this is that the government has no right to penalize a citizen for a crime that has not been committed.

Most states demand that motorists carry proof of insurance and proof of vehicle ownership and registration, in the glove compartment of the car. Failure to produce these documents can get you jailed on the spot and your license and registration suspended down the road, along with heavy fines being levied. That is in addition to what you may be faulted for, if you caused the accident. For this reason, most drivers choose to buy liability auto insurance in case of an accident. Liability insurance covers damages to the other driver and his or her vehicle.

Studies have shown that drivers who drive without insurance do so because they cannot afford the auto insurance premiums, not because they are so wealthy that they can absorb any cost. The big question at the end of the day is how much insurance does anyone need? Well, that is always left to the individual motorist, but you never really know how much you need until you get into an accident and by then it is too late.

By: Chad R Fisher

Easy Online Auto Insurance

admin — Thu, 11 Feb 2010 10:59:07 +0000

In 47 of the 50 United States, it is illegal to take a car onto the road without auto insurance. Motorists in the state of Texas must be aware that it is mandated by law that car owners have auto insurance policies. As you shop online for the best deals you may begin to ask yourself what exactly is required by law when it comes to auto insurance.

After checking on the auto body shop and you need to ask them about the insurance company that accredits them. There are two groups of people that we call if we are unfortunate enough to find ourselves in an auto accident – the car insurance company with whom we took out our personal policy and the local body repair shop. If you carry compulsory insurance and are judged to be at fault in an auto accident, your insurance company will pay the medical bills and lost work time and other damages for the other driver and passengers in both his car and yours that are not immediate blood relatives.

After all, if your car is involved in an accident and the back seat is full of office supplies, there’s a good chance that your insurance company is going to ask some rather awkward questions. One of the advantages of getting online quotes is the fact that you can collect your thoughts in the privacy of your home or office before you talk to an insurance company representative. After you’ve found a quote that you like purchasing online allows you to either accept the quote right then and there or you can opt to receive the rate provided in the mail.

Once you have found the quote that suits you the most and feel like purchasing, you can either choose to receive the rate online or by mail later and you are also guaranteed to save money. After all, the most difficult decision you need you need to make is which online insurance provider to choose from so that you can receive free quotes right away. Probably the most difficult choice will be which provider to choose from in order to receive your free quotes.

Getting a reliable online auto insurance quote, might be a little tricky, due to the many different options available to you. Shopping for the easiest and quickest and as a result the most painless way to shop for insurance is to go on the internet. When you wheel and deal directly with those companies, the “middleman” is taken right out of the equation, and this helps a company keep their rates as low as they can.

Body shop managers and other personnel deal with insurance adjusters from several companies as a natural part of the course of their day. Some insurance companies will give a price reduction in premium if your vehicle is equipped with the most current safety equipment such as air bags and automatic seat belts. If they are using your automobile for business purposes the odds are very good that your provider will require a commercial insurance policy should the vehicle be damaged while an employee is behind the wheel.

It is important to remember, however, that even occasional business outings may require a commercial insurance policy, depending on the regulations in your jurisdiction. Your Residence – It’s a pretty safe bet that you’ll pay more for your auto insurance policy if you live in a big city when compared to a nice farm out in the country. Vehicle Model and Driving Mileage – If your interested in that fancy new sports car you may want to check how much it will effect your insurance price.

If you are visiting and bringing in your car, you must immediately arrange for an auto insurance coverage if you do not have one yet. Another factor for you to look into before you finally settle and pay your very first premium is the financial strength rating of the company that you are considering.

One of the most commonly sold auto insurance company policy is PAP (Personal Automobile Policy), which offers coverage for liability, uninsured/underinsured motorist coverage, medical payments, and physical damage protection. Something you may not of figured int purchasing a commercial business based auto insurance policy is your credit rating. Learn more about comprehensive auto insurance coverage and free quotes make sure you click the link at resource box below.

By: Tsuyoshi E. Suzuki