Auto Insurance Law » Pip

Auto Insurance Simple Basics

admin — Sat, 05 Jun 2010 19:32:38 +0000

Auto insurance helps cover expenses caused by an automobile accident. You sign a contract with the insurance company that describes what type of expenses are covered and how much money they will pay. The cost for auto insurance is a premium which you pay to the insurance company. So you pay the insurance company money to help relieve you of the expenses of an accident should you have one.

Car insurance provides multiple types of coverage. Property coverage covers the damage or theft of your automobile. Liability covers your legal costs for damage to other people or their property. Medical coverage pays for the cost of injuries and rehabilitation. These are just a few types of coverage that an auto insurance policy can cover. You can learn more by talking to a car insurance company.

Most states today require that you have some type of auto insurance before you can legally drive. If you are financing a car, the lender will also require you to have insurance so that they get the rest of the car paid off in case it is in an accident. Vehicle insurance policies last anywhere from six months to a year, and you will get notified via mail or e-mail whenever your next premium is due.

Automobile insurance policies cover all types of expenses, and the amount you payee for each premium will be determined by what coverages your policy covers. Here are the 3 basic types of coverages an automobile policy may have.

Bodily Injury Liability

This type of insurance coverage pays expenses that you cause to others in an accident. You and any family members listed on the policy are also covered if you are driving someone else’s car with their permission. You want to be sure to have plenty of liability insurance because if you cause a serious accident, you may be sued for quite a bit of money. This is one area of coverage that you do not want to skimp on when it comes to auto insurance.

Personal Injury Protection (PIP)

But get coverage pays for injuries to the driver or passenger of the ensured car. It can cover any thing from a medical payments to lost wages to funeral costs.

Property Damage Liability

This liability coverage will pay for damage that you cause to someone else’s property. This could be damage to another person’s car, house, fences, buildings, livestock, etc. Basically if you damage it in an accident, property damage liability should cover it.

These are 3 of the 6 types of auto insurance coverages you should have and make sure that you get with your policy.

By: Christopher M. Hall

Massachusetts Auto Insurance – The Facts

admin — Thu, 01 Apr 2010 01:03:23 +0000

Massachusetts if the fourth most expensive state in the U.S. for car insurance and it is one of the most stringent when it comes to the minimum mandatory auto insurance cover requirements. These requirements are examined in more detail below.

Personal Injury Protection (PIP)
In an attempt to cut the number of lawsuits arising from auto accidents, Massachusetts became a no-fault state som time ago. This means that every driver must have a minimum of $8,000 PIP coverage to pay for the driver’s own medical expenses, vehicle damage and time lost from work.

Bodily Injury and Property Damage to Others
There is also a requirement to have coverage for bodily injury and property damage sustained by others in an accident caused by the insured driver. The minimum level for this coverage is $20,000 for medical expenses incurred by a single individual and $40,000 for the combined medical expenses of all the occupants of the car at the time of an accident and $5,000 for property damage.
If the actual medical expenses and/or property damage expenses exceed these figures then the driver at fault is liable to make up the shortfall. Whilst the medical expenses of the driver at fault are covered by PIP, damages to his vehicle or other property are not. Because of this it is recommended that drivers carry more than the minimum cover.

Un-insured/Under-Insured Driver Coverage
It is mandatory in Massachusetts for each driver to have un-insured/under-insured driver coverage. This will pay for any damages to either vehicle or person resulting from an accident involving insured and another motorist who is either un-insured or under insured and unable to pay the damages incurred or who leaves the scene of the accident.

The Massachusetts auto insurance industry is highly regulated which discourages companies out of state to do business there. This lack of competition tends to drive auto insurance rates up. State laws have been enacted which have brought some liberalization of the market and more are being introduced which it is hoped will attract out of state auto insurance companies and thus force rates down.

By: Colin R Cherry

Florida Car Insurance Requirements

admin — Tue, 16 Mar 2010 02:28:06 +0000

Florida state law requires all drivers to carry Bodily Injury Liability Coverage; Property Damage Liability Coverage; and No-Fault Coverage.

In Florida the required minimum coverage for Bodily Injury Liability is:

• $10,000 per person injured in any one accident

• $20,000 for all persons injured in any one accident

The State of Florida also requires No-Fault Coverage which provides benefits (in a minimum amount) paid out regardless of fault. Per Florida statute drivers must purchase insurance which provides for Personal Injury Protection (PIP) with a limit of $10,000 per person for medical and disability expenses and $5,000 per person for death benefits. It should be noted that if monetary damages total less than the PIP monies issued, the policy holder will have no tort claim. A lawsuit may be brought, however, if the monetary damages are in excess of the PIP monies issued as well. A lawsuit may also be brought if there is any permanent injury; permanent loss of a vital body function; significant and permanent scarring and/or disfigurement; and death.

Consumers have the option of purchasing Uninsured Motorist Coverage which also includes Underinsured Motorist Coverage. If this choice is made, the UM must be in an equal amount to the Bodily Injury Liability Coverage unless a specific rejection has been made.

By: Elizabeth Newberry

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

California Car Insurance Requirements

admin — Tue, 16 Feb 2010 03:25:26 +0000

California Law requires all motor vehicle owners to have insurance which provides Bodily Injury Coverage and Property Damage Coverage.

In the State of California the required minimum coverage for bodily injury is $15,000 per person injured in any one accident and $30,000 for all persons injured in any one accident.

The required minimum coverage for property damage is $5,000 for injury to or the destruction of property of others in any one accident.

Optional insurance may include Uninsured Motorist Coverage. If the policy holder makes this choice, the actual coverage purchased must be at least the amount of the required Bodily Injury Coverage. If the policy holder purchases more than the required amount of Bodily Injury Coverage, Underinsured Motorist Coverage may then be purchased in a lesser amount. The State of California does not require insurance companies to provide Uninsured Motorist Coverage in any amount greater than $30,000 per personal injury in any one accident and $60,000 for all persons involved in any one accident.

As well, if Uninsured Motorist Coverage is purchased, then the policy must also include Underinsured Motorist Coverage. California requires insurance companies to offer for purchase Underinsured Motorist Coverage in an amount equal to that purchased for Uninsured Motorist Coverage. Insurers may, however, offer a greater amount of Underinsured Motorist Coverage than the Uninsured Motorist Coverage actually purchased by the policy holder.

California requires liability limits of 12/30/5 which represent $20,000 for bodily injury coverage per person and $30,000 for bodily injury coverage per accident which will pay for medical bills and lost wages. The last number of 5 represents $5,000 for property damage coverage per accident which will pay for repairs and/or replacement of objects damaged or destroyed other than the policy holder’s own vehicle.

Personal Injury Protection (PIP) and No-Fault Coverage are not required by the state.

Adding Collision Coverage as well as Comprehensive Coverage to an insurance policy is optional as well in California.

By: Elizabeth Newberry

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

Auto Insurance Breakdown

admin — Mon, 01 Feb 2010 14:23:48 +0000

Auto insurance is an important, and, in most states, legally required protection for drivers. Auto insurance applies to vehicles such as cars, trucks, and motorcycles, but also applies to boats. It is primarily designed to protect motorists, but also protects individuals, such as pedestrians, who may be injured by an auto, or property owner’s whose property is damaged by an auto.

There are many different types of auto insurance, so I would like to give you a general overview of the available options. Fortunately, the different types of auto insurance can be easily broken down by the level of coverage that they provide. The levels range from the highest possible to the bare minimum required by law.

First of all, there are two basic categories of auto insurance: collision insurance and comprehensive insurance. Collision insurance covers damage to the vehicle if it is damaged in an accident. Comprehensive coverage offers more protection because it applies to a wider range of situations including theft of the automobile.

It is easiest to start with the minimum level, which is know as liability coverage. Liability insurance pays for injuries or damages sustained by other vehicles and people involved in an accident that is caused by the policyholder. For example, if the motorist causes an accident in which both party’s vehicles are damaged, liability coverage pays only for the damage to the vehicle of the driver who was not at fault in the accident, and not to the driver who was at fault.

Liability is required by law in many states because it also covers personal injury protection to people injured in accidents. Thus, it ensures that any person injured in an auto accident, through no fault of their own, is covered by the insurance of the responsible party.

Personal injury protection (PIP) and medical payments (MP) are not included in liability. However, the next level of insurance, collision insurance does covers these two expenses.

Personal Injury Protection covers the policyholder for time and medical expenses required for the maintenance of a vehicle. This covers lost wages should a person need to bring a vehicle to a mechanic and must miss work as a result.

Insurance can also cover medical payments, which refers to the cost of treatment if the policyholder is injured in an accident and the cost of that treatment exceeds the limits of personal injury protection.

Collision coverage includes the liability of the driver to other parties, personal injury protection, and medical payments. It also covers damage to the policyholder’s own vehicle in the event that it is damaged in an accident, regardless of whether the insured is at fault in the accident or not. Therefore, even in a single car accident, the policy of the driver covers the damage that his or her car incurs. In a two car accident, all damage is covered by the person found to be at fault in the accident.

If the policyholder’s vehicle is damaged so badly in an accident that it must be replaced, collision insurance will pay for the value of the damaged vehicle towards the purchase of a new one. However, collision insurance does not cover the theft of the vehicle, damage from a fire, or damage due to weather, such as hail.

Comprehensive coverage offers a higher level of protection for the policyholder. It covers liability, PIP, MP, and damage to the vehicle if it is involved in an accident. Comprehensive coverage will also pay for a new vehicle if the vehicle of the policyholder is stolen or damaged in a fire.

Although both collision and comprehensive coverage can protect the policyholder from the cost of vehicle replacement, it is not perfect. This is due to the fact that the value of vehicles depreciates over time. These types of insurance will only pay for the value of a totaled (destroyed) vehicle, regardless of the cost of the vehicle when new.

However, there is a third type of insurance that can protect the policyholder from this kind of depreciation. GAP insurance protects the consumer from the depreciation in value of a vehicle.

It is obvious that auto insurance is complex, and it is important to understand all of the available options before making a choice. Different states have varying requirements, so it is important to ask question not only about the type of coverage you are purchasing, but about the requirements of your state, as well. Remember, accidents are called accidents because they are not deliberate, and always come as a surprise. Make sure that you have the appropriate coverage for you and your family in advance, to protect against unforeseen events, such as accidents.

By: Gena Woodard

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

Understanding Automobile Insurance Laws

admin — Sun, 17 Jan 2010 02:57:36 +0000

The no-fault potion of your coverage pertains to bodily injuries, which means that in the event of an accident, each party is responsible for their own medical bills and other costs related to the injuries sustained in the accident. As a result, your abilities to sue the other party for damages are limited.

Automobile insurance laws also require all drivers to carry Property Damage Liability and Personal Injury Protection (PIP) coverage.

Property damage liability covers the damage you cause to another person’s property. You must carry a minimum of $10,000 in coverage.

PIP covers your injury-related expenses, regardless of who was at fault in the accident. Covered benefits include some compensation for necessary medical expenses, lost wages, lost services, and funeral expenses. $10,000 worth of PIP is mandatory, although you may be able to increase your benefits by purchasing increased limits. Some drivers may choose to decrease their premiums by applying a deductible to their PIP coverage or by excluding the loss of wages benefit.

Auto insurance laws may also require that certain drivers carry Bodily Injury Liability. This coverage helps pay for the cost of injuries you cause to another in an auto accident. Drivers with previous accidents or violations may be required to carry this type of coverage.

Bodily injury liability coverage carries a minimum limit of 10/20; which means $10,000 per person for injuries you cause to the other party, up to $20,000 in total.) However, these are only minimums, and higher limits are recommended. Drivers who aren’t required by law to purchase BIL are strongly urged to consider doing so for their own financial protection.

Auto insurance companies will also offer optional coverages such as collision, comprehensive, and uninsured and underinsured motorists coverage.

More news, information, and insurance tips visit QuickQuoteUS.com

By: Mary Hilf

Auto Insurance 101

admin — Fri, 20 Nov 2009 06:53:02 +0000

Auto insurance, as the term suggests, is insurance that you can purchase for your vehicle (cars, trucks, SUVs, motorcycles, etc.). It provides protection against losses incurred as a result of vehicle accidents. While the product seems simple, there are many different types of auto insurance policies available for purchase. Depending on the policy that you choose, your coverage levels and types will vary. Broadly speaking, these are the types of auto insurance programs on the market today:

Coverage:

• ‘Comprehensive coverage’ (Comp) – This kind of insurance insures your vehicle against the cost of purchasing a new vehicle if it is stolen or destroyed in a fire.

• ‘Collision coverage’ (Coll) – This kind of insurance insures your vehicle against the cost of repairing the vehicle following an accident or the cost of purchasing a new vehicle if it is damaged in an accident beyond economic repair.

Protection:

• Personal Injury Protection (PIP) – This insures against the cost of medical expenses and lost wages related to the use, ownership or maintenance of a motor vehicle. This insurance is mandatory in some U.S. states.

• Medical Payments (MP) – insures against the cost of medical expenses for bodily injury sustained in an accident beyond any expenses that may be covered by PIP.

• Legal liability claims against the driver or owner of the vehicle following the vehicle causing damage or injury to a third party.

While ‘Liability insurance’ covers only legal liability, ‘comprehensive insurance’ covers PIP, MP, as well as legal liability. In the United States, liability insurance covers claims against the policyholder and any other operator of the insured’s vehicle. If, however, any other operators live at the same address, they must specifically be covered on the policy. For rented vehicles, most rental car companies offer insurance to cover damage to the rental vehicle.

While comprehensive insurance covers most aspects of damage which can affect the car itself or the driver, there is one risk associated with buying a new car is not covered even by comprehensive insurance – once the car is bought, there is a sharp decline in its value. During this period (immediately after a car is bought), in which the remaining car payments exceed the value of the vehicle and thus the compensation the insurer will pay for a ‘totaled’ (destroyed, or written-off) vehicle, customers may consider purchasing ‘GAP insurance’. GAP insurance was established in the early 1980’s to provide protection to consumers based on buying and market trends.

By: Chris Tolamalu