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Understanding State Laws and Vehicle Insurance Coverage

compare — Mon, 12 Nov 2012 17:18:02 +0000

Even though you may have mastered the rules of the road to pass the requirements to obtain your driver’s licenses, choosing car insurance coverage is often a little more complicated. If you’re just beginning your search, there are a couple of things to keep in mind before selecting a policy. It’s important to begin your decision process by learning the laws on insurance coverage in the state in which you reside. Laws regarding automobile coverage vary from state to state so it’s essential to educate yourself.

State Laws Regarding Insurance Coverage

Wisconsin is the 49th state across the U.S. that mandates motorists purchase a minimum of liability insurance coverage. Liability policies cover property damages (property and automobiles) and bodily injury (medical expenses, lost wages, pain and suffering) caused to others in the event of a vehicle accident. Liability also covers any defense and court costs. State laws not only establish the minimal insurance requirement, but in addition to insurance companies, states often regulate the maximum amount of liability insurance coverage that you may purchase.

Personal Injury Protection (PIP) Insurance Coverage

While the 49 states that require motorists to purchase a minimum of liability coverage, several states including Florida, New York and New Jersey also mandate purchasing additional Personal Injury Protection (PIP). Also referred to as “no fault” coverage, PIP covers lost wages and medical expenses of insured drivers in the event of an accident. The purpose of the automobile insurance coverage protection is to ensure PIP patients receive proper medical treatment and protects physicians providing treatment to patients unable to pay for medical care.

Consequences for Uninsured Drivers

If you’re driving without auto insurance coverage, be prepared for unsympathetic consequences. In most states driving uninsured is a crime with harsh penalties, especially if you’re at fault in a serious accident. On the scene of an accident you are required to show proof of insurance coverage. While presenting proof of insurance is admissible at your court case, the date on your insurance card must be valid at the time of the accident. If you lack proof of car insurance coverage, expect to go before a judge and more than likely endure hefty fines.

The consequences of venturing out without proper coverage for insurance may also include suspension of driver’s license or license plates, especially if you live in California or Ohio. The suspension of license plates typically means vehicles are impounded or immobilized for a minimum of 30 days. Perhaps the greatest risk of driving without insurance coverage is the fact it makes you vulnerable for liability in the event of an accident. Not only are you responsible for the property damages and medical expenses incurred due to the accident, but you’re also responsible for all other parties involved. Such scenarios leave you defenseless to lawsuits. If you can’t afford to pay for damages, then your property or other valuable assets may be seized to recoup damages.

With the numerous companies offering affordable insurance coverage, purchasing policies before an accident is a wise decision that prevents hefty fines, suspension of licenses or plates and lawsuits that could potentially cause you to file bankruptcy.

Insurance Coverage References:

-Auto Insurance coverage by state
-How car insurance works?
-State-by-State Car insurance requirements

Insurance Coverage for Mature Motorists: Knowing When to Hand Up the Keys

compare — Fri, 13 Apr 2012 23:12:42 +0000

The increasing number of older Americans behind the wheel leaves many family members wondering how much longer their loved ones will be able to keep auto insurance coverage. According to statistics provided by the Federal Highway Administration published in 2008 revealed that 10% of all motorists, or 21.6 million licensed drivers, in the United States was comprised of drivers over the age of 70. AARP, an insurance coverage provider for individuals over 50, projects by the year 2025 that drivers over the age of 65 will embrace 20% of all motorists.

Despite projections offered in 2003 by highway “experts” claiming as the average age of American drivers grew, so would the number of accidents involving mature motorist. In reality, however, the Insurance Institute for Highway Safety reveals 32% fewer fatal traffic accidents occurred in 2009 among drivers 70 and older as compared to data from 1997.

So what does the statistics mean for your aging loved one and insurance coverage possibilities?

Individual Insurance Coverage

The bottom line is there’s no set age that deems a person too old to drive or obtain insurance coverage. In fact, the above statistics indicate that older drivers are involved in less serious fender benders as well as improving their chances of being able to survive an accident. The improvements are in large part to modern technology installed in new vehicles as well as better insurance coverage.

While some drivers may be ready to hang up their keys after the age of 50 due to deteriorating health conditions, others may feel comfortable driving well past 90.

The National Safety Commission offers some signs that may indicate that your aging loved one may be ready to retire from the road and cancel existing insurance coverage. The warning signs include:

Difficulty paying attention to road signs and traffic signals.
More incidents of close calls and near-misses (indication of slower reaction time).
Driving below the normal speed limit.
Repeatedly forgetting to pay insurance coverage premiums.
Trouble navigating or frequently getting lost going to familiar destinations.
Receiving more traffic tickets or verbal warnings.
More dents and scrapes on the vehicle.

Proactive Steps to Ensure Safe Drivers and Insurance Coverage

There are some effective proactive steps being taken to ensure aging motorists are still eligible for insurance coverage as well as remaining to be safe drivers. Several states are now shortening the renewal cycle for driver’s licenses of motorists over the age of 65 or 70.

Also, mandatory vision testing is required for drivers once they reach a certain age to qualify for various insurance coverage policies. Programs are also available for mature drivers to improve driving skills.

AAA also offers several online skill assessments and self-rating resources that help to determine whether or not your loved one should renew insurance coverage. When the time does come to have the “talk” with your aging loved one about surrendering the keys, be sensitive and patient when discussing handing over the keys and cancelling insurance coverage.

The Pros and Cons of Accident Forgiveness Insurance Coverage

compare — Thu, 22 Mar 2012 13:43:54 +0000

Several companies are promoting vehicle insurance coverage that conveniently looks the other way if you have accident. Sounds too good to be true? Well, maybe it is. While there are some advantages to the accident forgiveness trend, there may be a few things agents don’t mention when you purchase the accident forgiveness.

The Pros of Accident Forgiveness:

Who wouldn’t appreciate a reputable insurance coverage provider simply forgiving an accident and alleviating any otherwise serious consequences? Motorists opting to test drive accident forgiveness coverage on insurance often make the buying decision based on appealing commercials without completely understanding how it works. In theory, companies offering accident forgives policies advertise no-risk coverage if you’re involved in a collision, rear-ender or fender-bender for qualified drivers.

If you have a clean driving record, then you may qualify for accident forgiveness coverage. For such drivers, in theory participating insurance companies will overlook the first accident without raising the insurance policy premium. Furthermore, insurance deductibles could be lowered by $100 annually for every year that your driving record stays clean after an accident.

Major Auto Insurance providers including Allstate, Nationwide, State Farm, GEICO, Liberty Mutual, and Progressive offer coverage with accident forgiveness insurance. Allstate, however, is among the leading provider advertising accident forgiveness benefit. With a top of the line option, as well as a mid-range policy, customers may opt for the coverage that fits their budget and insurance needs.

The Cons of Accident Forgiveness:

Thrifty consumers will soon discover accident forgiveness isn’t cheap insurance and it comes with a laundry list of stipulations. For example, Allstate offers two plans: the Gold and Platinum. Not only is there a difference in price for reach plan with the Gold costing an additional 8% and the Platinum 15% more, but there’s also different requirements for coverage on insurance. Customers opting for the Gold plan are required to keep a clean driving record for 3 years before being protected, while drivers willing to spend a little more to purchase the Platinum plan receive accident forgiveness insurance coverage immediately.

While it’s difficult to calculate exactly how much you’ll save because of individual state laws as well as various companies have different requirements for insurance coverages. If you’re considering purchasing accident forgiveness coverage, it’s important to always read the small print and compare insurance terms and conditions between participating companies. Keep in mind that some agents may not outline the cons of the policy in hopes of making a sale.

Accident forgiveness shouldn’t be viewed as a “get-out-of jail-free” card for only those who can afford it. Drivers still must be responsible and try to maintain a clean driving record in order to keep affordable insurance coverage premiums as well as retaining driver licenses.

References on Insurance Coverages:

-Guide to car insurance Accident Forgiveness
-Truth behind Accident Forgiveness Insurance Coverage
-Available options for Car insurance coverage

No Fault Insurance Coverage: Legalized Hit and Run?

compare — Tue, 13 Mar 2012 01:00:53 +0000

No Fault Car Insurance coverage laws are popping up across the country, and consumers are quickly becoming the victims of much more than traffic accidents. There are a number of reasons why the true cost of this type of auto insurance coverage is higher than most drivers can or are willing to pay. The idea was to streamline the claims process and in some instances, requiring the claim to be paid in as little as 30 days.

What’s No Fault Auto Coverage?

No Fault Car Insurance is a new type of auto insurance coverage that places the responsibility for repairs arising from a traffic accident, not on the individual that is responsible for the accident, but on each individual automobile owner. This means that if someone runs into your car, you are responsible for the damages they caused to your vehicle. You will also be responsible for any injuries you sustain along with the injuries of any passengers in your vehicle, despite of who is at fault for the fender bender.

What Should You Know about No Fault Insurance Coverage?

Personal Injury Protection (PIP) is a mandatory choice in the states with No Fault Insurance coverage laws. These policies cover the insured for any injuries sustained. But in a “No Fault” system, it leaves a lot of room for fraud. There have been issues with the laws governing who can report the medical status of the claimant making it easy for bogus claims to be filed costing the insurance companies millions and increasing the premiums for the honest policy holder.

Clinics that provide the medical diagnoses for the insurance coverage claims are, in some jurisdictions, subject to extremely limited regulations in how they receive their licenses. In some cases, it has been found that these so called clinics do not even have medical personnel but are staffed by what amounts to be witch doctors.

In Detroit, policy holders have been required to purchase PIP policies that have no cap to the damages that are paid pushing premiums as high as $6000 per year. This has also increased the prospects for fraud, as the damages that are paid can now be for the life of the victim. Now all one has to do is find an appropriate clinic, who will claim that the victim requires lifetime care which then results in a fraudulent insurance coverage claim that can be valued into the millions quite easily.

No Fault Insurance coverage is about the same as letting people get away with a hit and run; however, in those cases there’s legal recourse should the perpetrator be apprehended. In the states that have chosen to require these types of insurance coverage policies, the victim of a car accident is then victimized again as they will most likely face an increased premium, even though they were not at fault.
Instead of calling it “No Fault” Insurance coverage, perhaps it should be renamed: “No Accountability” Insurance coverage.

Insurance Tips: What’s a Car Insurance ID Card?

compare — Mon, 13 Feb 2012 03:11:34 +0000

Many drivers don’t realize the importance of a Car Insurance identification card until the unfortunate event of being involved in an accident, especially in fender benders in which they are at fault. It’s also possible when being pulled over during a traffic stop to show proof of vehicle registration and Car Insurance coverage. Also, it’s mandatory before leaving the scene of an accident to provide some form of verification that you’re properly insured to both the state police and any other parties involved.

An auto insurance card is simply some form of documentation from your insurance company verifying the basic details of your current coverage. Usually, the ID documents are small enough to fit into your wallet; however, it’s recommended to store the ID safely in your vehicle’s glove box. It’s important to keep the ID in the correct vehicle, using the VIN to correctly identify which ID card belongs in which vehicle.

Upon purchasing auto insurance, your agent will provide you with an insurance ID card for each vehicle covered on your policy. Generally agents provide a temporary card, and then mail a permanent ID along with your policy within a few days of buying insurance coverage. Other insurers, however, don’t provide policyholders with instant temporary ID. In such situations until you receive the proper documentation, keep your insurer’s name and contact information in the insured vehicle in case of an accident. Fortunately, some states are opting to rely on an electronic- database tracking system to verify current insurance coverage.

What’s listed on an ID Card?

Although various companies handle the distribution and the specific information that’s included on Car Insurance ID cards, the following are basic details that are printed on most ID cards:

•   Name of the Car Insurance company
•   Name of insurance agency in which coverage was purchased
•   Date insurance went into effect
•   Date insurance expires
•   Policy number
•   Named insured covered by the policy (it’s possible for additional drivers to also be listed)
•   Make, model, and year of the vehicle covered
•   VIN number of vehicle covered.

It’s important to keep in mind that your Car Insurance ID card may not list every driver included on the policy. For example if you give your friend permission to drive your car to work, the friend would be covered; however, your Car Insurance link to policy is considered secondary to your friend’s coverage.

If you have additional questions about obtaining a Car Insurance ID card, contact your agent or insurer for more information.

How Traffic Tickets Affect Insurance Coverage

compare — Mon, 30 Jan 2012 02:30:15 +0000

Although you may be a safe and responsible driver, accidents do happen that can negatively affect your insurance coverage. Depending on the traffic violation and state laws, the consequences are often felt in higher premiums or even potentially cancelling your insurance coverage altogether. While non-moving violations such as a parking ticket usually don’t affect coverage, several minor moving offenses occurred within a considerable short amount of time can prove as detrimental as one serious violation.

Understanding How Points Impact Insurance Coverage

The Department of Motor Vehicles (DMV) applies a point system to reflect any incurred driver infractions. Insurance coverage and premiums are based on your driving record, and any traffic violations on record. Obviously the more points you have on your record, the more you can expect to pay for insurance coverage.

The point system varies among states and insurance coverage providers when calculating points incurred from traffic offenses. In general, however, major infractions carry the maximum amount of points that go against your driving record. For example, a DUI may carry up to 12 points, whereas a speeding ticket may only rack up 2 points. Insurance providers typically review your driving record about twice a year or whenever your policy is up for renewal. Traffic violations remain on your driving record for 3 years, although the duration also varies according to state laws.

Also depending on the state and infraction, it may be possible to attend a defensive driving course to erase points from your record, as well as prevent your insurance coverage rates from dramatically increasing. If you accumulate a specific number of points within a certain time frame, don’t be surprised if you find your license suspended.

Tickets Sure to Catch Your Insurer’s Attention

Due to various state motor vehicle laws, there’s nothing set in stone regarding what does or doesn’t affect insurance coverage, however, the following tickets are almost always a guaranteed to negatively impact your vehicle insurance coverage:

•   Driving under the influence of alcohol or drugs
•   Responsible for an accident
•   Reckless driving
•   Racing
•   Intentionally fleeing the police
•   Leaving the scene of an accident
•   Driving with a suspended or revoked license
•   Speeding (assuming it’s your first in 3 years)
•   Driving illegally on a one-way street or wrong side of the freeway
•   Driving without insurance.

Traffic Tickets that Incur Less Points

While the tickets listed above carry the most points that go against your insurance coverage rates, the following infractions have a lesser impact on premiums:

•   First speeding ticket
•   Driving with an expired or restricted license
•   Expired vehicle registration
•   Driving in a HOV lane
•   Failure to wear seatbelt
•   Failure to secure a load on your vehicle
•   Broken tail light or cracked windshield
•   Loud exhaust/muffler
•   Littering while moving.

It’s always a good idea to check with your insurance coverage provider to review your driving record periodically or if you have questions or concerns.

Insurance Coverage – 7 Types of Auto Insurance Coverage

compare — Mon, 16 Jan 2012 02:40:12 +0000

If you have ever been in an auto accident, then chances are you have a greater appreciation of your auto insurance and provider. Yes, auto insurance coverage can be expensive, but so is the alternative. However, as the cost of living continues to rise, perhaps you are considering lowering the amount you spend on auto coverage. While this is a plausible budget solution, be sure that you have made sure your auto coverage includes the basic forms of protection. There are 7 types of auto Insurance Coverage that you should have. To help you determine if you have the Insurance you need, here is a basic description of each type of coverage.

Types of Auto Insurance Coverage

Property Damage Liability Coverage – This type of Insurance protects you if your vehicle causes damage to someone else’s property. Although this is most often their vehicle, it also covers structures, landscaping elements or other property.
Bodily Injury Liability Insurance – This coverage option covers other people’s death or bodily injury for which you are responsible. In addition, it can be used to provide legal defense if another party involved in the accident take you to court. Claims that pertain to bodily injury lawsuits include medical bills, loss of income and pain and suffering of the other involved party, not you personally. Liability Coverage is required in most states.
Collision Coverage- This type of Insurance Coverage is for vehicular damage caused when your automobile hits, or is hit by, another vehicle or object. It pays to repair your vehicle, less the amount of the deductible you choose. This form of auto Insurance Coverage is not necessarily required, except in cases where the vehicle is rented or leased.
Underinsured Motorist Bodily Injury – If the person who hits your vehicle has insufficient Insurance Coverage to provide for injuries, death or damages to your family and passengers, this insurance policy makes up the difference, up to a pre-set amount.
Comprehensive Coverage Insurance – This type of coverage protects your vehicle(s) and occasionally those of someone else (scenario depending) in situations other than a collision. Examples of this coverage are damage caused by flood, fire, animals or theft. While it is not required to have collision insurance, if you rent or lease a vehicle, most of these companies will require it.
Uninsured Motorist Bodily Injury- When you are not at fault for the accident, but the offender has insufficient Auto Insurance this coverage option will cover members of your household and passengers for injuries, damages or death caused by the other driver’s negligence. This is also used in scenarios where the other driver has no insurance.
Uninsured Motorist Property Damage- This insurance policy is applied in situations where the offender caused property damage and has none/minimal coverage. It typically pays up to a specific amount (varies by state) based on the policy.

Having sufficient Insurance Coverage is simply part of being a good driver. Yes, it is an expense but it is not something that you can afford to skimp on. If you are shopping for new auto insurance, do your homework carefully so that you have all the types of Insurance Coverage you need.

Related resources for Coverage of Insurance

-Definition of Auto Insurance Coverage
-Car Insurance Coverage options – AllState
-Liability Insurance covered in detail
-Coverage characteristics of auto insurance

Are you aware of certain facts of gap insurance coverage?

compare — Wed, 21 Dec 2011 19:11:52 +0000

Whenever you’ll purchase an auto insurance policy, you must try to find out whether or not your policy includes gap insurance coverage. It’s because, your car value depreciates with the gradual progress of time. If you have brought a new branded car, then you must purchase gap coverage. Otherwise, your insurance company will reimburse you the depreciated value of your asset and you have to be responsible to repay the remaining loan. But with the help of this coverage you’ll be able to get the remaining amount to repay your auto loan. Try to know certain facts about this new coverage.

-Is it possible to get a gap insurance coverage without purchasing the primary auto insurance coverage?

If you have purchased a gap insurance coverage, you have to purchase the minimum auto insurance coverage required by your state. According to the auto insurance laws of your state, you surely have to purchase at least bodily injury liability and property damage liability coverage. In order to take advantage of the gap insurance coverage, you have to purchase a collision and a comprehensive coverage.

-Is it possible to get a gap insurance coverage on a loan that is not specifically used for a vehicle like the Home Equity Line of Credit (HELOC)?

It is not possible for you to get gap insurance for lines of credit which you’ll utilize for other purposes than a vehicle. You cannot take advantage of the gap insurance for mortgage loans, credit lines or other types of loan payments. Suppose, if you have used money from home equity line of credit to purchase your vehicle, then gap insurance will not help you to cover this type of loan as HELOC is not specifically meant to use for auto loan.

-Is it possible to purchase a gap insurance coverage for a car if you have to take out an auto loan from a private person?

If you have taken out an auto loan from a private individual instead of a reputed financial institution such as banks or finance company, then you won’t be able to take advantage of this coverage. It’s because a private loan lacks the proper structure that any financial institute provides and is required by the insurance company to provide you the benefits of gap insurance. If you take out a loan from a private party, then it becomes tough for the insurance company to become assured of the fact that whether or not, you have taken out the loan only for the vehicle.

Thus, it’s quite essential to have proper knowledge about the above mentioned facts. This will help you take the necessary preparations avoid the mistakes before you include this special coverage in your auto insurance policy.