Posted on : 28-12-2010 | By : admin | In : Insurance
Auto insurance is a contract that protects your financial security in case of an accident. Although it is not mandated by federal law, the purchase of auto insurance is usually a requirement in most states; every state (with the exception of New Hampshire and Wisconsin) have minimum insurance laws.
These two states, instead of having insurance requirements, have mandated financial responsibility laws, so that the owner of a car is required to show that he has sufficient funds to pay any necessary claims. If said owner cannot produce proof of satisfactory assets, then he must buy an auto insurance policy. Regardless of the law, having good auto insurance is practical for the driver who wishes to avoid lawsuits or immense repair bills.
According to the Insurance Information Institute (III), a basic auto insurance policy is comprised of six basic types of coverage. While some of these types of coverage are required by state law, some are considered optional.
These are: 1. Bodily injury liability 2. Property damage liability 3. Medical payments or Personal Injury Protection (PIP) 4. Collision 5. Comprehensive 6. Uninsured/Underinsured motorists coverage
Liability Insurance
Liability coverage is the foundation of any car insurance policy, and is required in most states. If you are at fault in an accident, your liability insurance will pay for the bodily injury and property damage expenses caused to others in the accident, including your legal bills. Bodily-injury coverage pays for medical bills and lost wages.
Property-damage coverage pays for the repair or replacement of things you wrecked other than your own car. The other party may also decide to sue you to collect “pain and suffering” damages.
Liability insurance (both bodily injury and property damage) is the foundation of most auto insurance policies and is ideal if you are seeking a low cost car insurance policy. Every state that requires auto insurance mandates the purchase of property damage liability, and Florida is the only state that requires auto insurance but does not call for bodily injury liability. If you are at fault in an auto accident, your liability coverage will pay all the expenses, bodily injury, property damage, and any legal bills. The bodily injury coverage would pay for medical bills and lost wages; the property damage coverage would pay for any auto repairs, or replacement. Property damage liability usually repairs damage to other vehicles, but can also cover damages to things such as lamp poles, fences, buildings, or anything else that your car may have struck.
Remember, although purchasing only the minimum can get you a cheap auto insurance rate, if you cause a serious accident, minimum insurance may not cover you adequately. That’s why it’s a good idea to buy more than what your state requires. If you own a home and have nest egg and a savings account, you should consider more liability insurance because, in most states, drivers are allowed to sue other drivers who injure them in car accidents. If you’re sued and your liability insurance doesn’t pay for all of the damages, your personal finances are on the hook, and it’s likely you’ll become a target.
Collision and Comprehensive Coverages
If you cause an accident, collision coverage will pay to repair your vehicle. You usually can’t collect any more than the actual cash value of your car, which is not the same as the car’s replacement cost. Collision coverage is normally the most expensive component of your car insurance rate. By choosing a higher deductible, say $500 or $1,000, you can keep your premium costs down. However, keep in mind that you must pay the amount of your deductible before the insurance company kicks in any money after an accident.
Insurance companies often will “total” your car if the repair costs exceed a certain percentage of the car’s worth. The critical damage point varies from company to company, from 55 percent to 90 percent.
Comprehensive coverage will pay for damages to your car that weren’t caused by an auto accident: Damages from theft, fire, vandalism, natural disasters, or hitting a deer all qualify. Comprehensive coverage also comes with a deductible and your insurer will only pay as much as the car was worth when it got wrecked.
Because insurance companies normally will not pay you more than your car’s book value, it’s helpful if you have a rough idea of this amount. Check the Kelley Blue Book or the National Automobile Dealers Association. If your car is worth less than what you’re paying for the coverage, you’re better off not having it.
Neither collision nor comprehension insurance is required by any of the states, but some lenders, when the owner finances the car, may require the purchase of collision and comprehensive in the loan agreement. Even when it is not required, collision and comprehensive coverage is highly recommended by the insurance industry, so that in the unforeseen event of damage or theft, the owner of the car can avoid heavy bills. Theft of cars is not as unusual as some people may think. In 2004, a car was stolen in the United States every 26 seconds, and a car had a 1 in 190 chance of being stolen.
Medical Payments, PIP, and No-fault coverages
Medical payments (MedPay) coverage will pay for your and your passengers’ medical expenses after an accident. These expenses can arise from accidents while you’re driving your car, someone else’s car (with their permission), and injuries you or your family members incur when you’re pedestrians. The coverage will pay regardless of who is at fault, but if someone else is liable, your insurer may seek to recoup the expenses from him or her.
Personal Injury Protection (PIP) coverage is an extended form of MedPay. PIP may cover expenses that are related to injury, but not necessarily medical, such as lost wages, childcare and funeral costs. PIP coverage is currently required by sixteen states. If you are already insured under a good health insurance policy, then fortunately, there is no need to buy more than the minimum required amount of PIP or MedPay insurance.
If you have a good health insurance plan, there might be little need to buy more than the minimum required PIP or MedPay coverages, if at all. And, if you already have disability insurance, there’s little reason to purchase higher-than-minimum amounts of PIP.
Uninsured/Underinsured Motorists Coverages
Uninsured motorists (UM) coverage pays for your injuries if you’re struck by a hit-and-run driver or someone who doesn’t have auto insurance. It is required in many states.
Underinsured motorists (UIM) coverage will pay out if the driver who hit you causes more damage than his or her liability coverage can cover. In some states, UM or UIM coverage will also pay for property damages. Similarly, underinsured motorists insurance will cover any damage caused when you are struck by a driver who is not insured for a sufficient amount.
If you are hit, as a pedestrian, underinsured coverage will cover the expenses. Uninsured motorists insurance is currently required by twenty states, and Underinsured motorists coverage is required by only four: Connecticut, Minnesota, Maine, and Vermont.
You’ll probably want to have at least the minimal amount of UM/UIM because if you can’t find the other driver, you’ll at least have some coverage for pain-and-suffering damages.
Add-on Features
Several supplemental auto coverages are available, either as separate premium items or included in augmented policies. -Rental reimbursement, a common add-on, covers vehicle rentals required because your car is damaged or stolen. -Coverage for towing and labor charges in case of a road breakdown is also common. -Gap coverage for your new car will pay the difference between the actual cash value you receive for the car and the amount left on your car loan if your vehicle is totaled in an accident.
Basic auto insurance is required by virtually every state and is typically the cheapest auto insurance in the marketplace. Proof of insurance is required at different times throughout the life of a vehicle.
You may be asked for proof of insurance at any and all of these times: at vehicle registration, at the time of an accident, and any time when driving the vehicle. It is suggested that the owner of the car keeps proof of insurance in the car at all times, instead of on his or her person, so that it can be available at all times, no matter who is driving.
Any violations of state law regarding auto insurance could result in, at best, a hefty fine, and at worst, suspension of your driver’s license and/or time in jail. The dire consequences of driving while uninsured are not worth the neglect of paying for insurance. The chance that an uninsured driver will avoid detection is slim; he is likely to be caught and strictly punished.
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Should Christians be allowed to work jobs where if they were raptured it would result in the injury or mass death of people? I say NO! What do you think? Even though this video is a satirical/rhetorical exercise, in reality it is also valid. Many people are banned from certain types of employment because of their condition or religious belief already. I am sure that if one has epilepsy, narcolepsy, bipolarism, schizophrenia etc, they are not eligible for many critical occupations. The FBI, CIA and even the general public are not going to put fundamentalist Muslims into elected office or in positions where they can bring about mass death or compromise the security of the country. I for one would never have a Santeria family pet set my dog or let a Muslim mullah or Catholic priest baby sit my grand children. Why would anyone who believes they could be raptured any second work an occupation where their sudden absence would most likely result in a terrible event killing one or many of their fellow human beings? If they truely believe this doctrine and they are not evil to the core, they would quit such critical occupations and find more suitable work like flipping burgers or sweeping floors. 38K Sects Links christianity.about.com relijournal.com www.rev22-12.com
Help answer the question about insurance
Where can you buy insurance for connecting to the power grid with a wind generator in Texas?I have a friend who would like to install a wind generator for electricity, but the local power company will not let him connect to the power grid unless he can show that he has a million dollars insurance. Well, he cannot find any company that offers that type of insurance for any price. He has written to everyone he can think of but still no source of insurance. The reason he wants to connect to the power grid is to use it as his storage system so that he doesn't have to maintain a whole bank of storage batterys. Does anyone know where he can get this type of insurance for a system that will be in the state of Texas?
It is VERY important to read every document you sign, review every declarations page you receive, and read your policy when you get it.
The declarations page lists 1) who the policyholder is, 2) who the insured drivers are, 3) the vehicles covered, 4) the coverage for each vehicle and 5) endorsements to your policy.
An endorsement, or addendum, is extra coverage. For example, if your auto policy only pays $1000 for stereo equipment but your equipment cost $2000, you want an endorsement for $2000 so you have coverage.
A policy spells out what YOUR rights & responsibility are and what THEIR rights & responsibility are in the event you have a claim. This is dictated under each coverage and can vary from coverage to coverage. This is a legal and binding contract between both parties and in order for coverage to apply all terms of the policy must be met.
There is no such thing as 'full coverage' insurance. Each coverage is seperate and must be purchased seperate, and you should buy coverage based upon your particular needs. For example, if you have a clunker that's paid for may only want to carry liability and uninsured motorist property damage and uninsured motorist coverage(if you get hit by someone w/o insurance and they are at fault). If your car is relatively new you would want to purchase liability coverage, uninsured motorist coverage, collision coverage, comprehensive coverage, rental car coverage, and maybe even towing coverage. If you are making payments on your car to a bank, you may even want to buy GAP coverage.
Keep in mind that the higher your limits are, the less of an exposure you have to out of pocket expenses. Especially when it comes to your bodily injury and property damage limits (aka liability coverage).
You will have to select a deductible for your comprehensive and collision coverage. The lower your deductible, the higher your premium, the higher your deductible the lower your premium. Your deductible is what YOU agree to pay towards your vehicle repairs before the insurance company will pay. The standard deductible is $500. This means you pay the 1st $500 of damage, the insurance pays the rest.
Collision coverage pays for damage due to collision with another vehicle or object. Comprehensive coverage pays for damage caused by anything other than a collision, such as fire, theft, vandalism, shopping cart.
As the registered owner of the vehicle you are ultimately responsible for anything your car does whether you are driving it or your friend is. So don't let anyone drive your car unless it's an emergency, like you are too drunk to drive (just be sure they are sober).
Bodily Injury – this covers injuries to people in other vehicles if you're in an accident and are at fault. For instance, if you limits are 100/300, the insurance will pay $100,000/person up to $300,000/accident.
Property Damage – covers damage to property of others if you are at fault in an accident…such as the other person's vehicle.
Medical Payments – this is a no-fault coverage. It provides medical payments regardless of who's at fault to other people in your vehicle.
Uninsured Motorist bodily injury – provides payments for bodily injury to yourself and other passengers in your vehicle if you are hit by an uninsured vehicle
Underinsured Bodily Injury – this kicks in if the at-fault driver doesn't have enough insurance to cover your injuries. So, say someone else hits you and you have $50,000 of medical bills. The other driver only has $25,000 of bodily injury coverage on their policy. Underinsured motorist would kick in the other $25,000.
Liability coverage just means it covers the other people in an accident if you are at fault and provides no coverage for you or your vehicle.
Uninsured Motorist property damage – this would cover damages to your vehicle if an uninsured driver hit you.
Comprehensive – covers damages to your vehicle by anything other then collision, such as fire, animal hits, glass breakage, theft, etc. The deductible is the amount that you are responsible for paying and your insurance would pay anything over that amount.
Collision – just as it sounds, covers your vehicle if you run into another vehicle or object. Again, the deductible is the amount that you are responsible for paying before insurance kicks in.
Emergency Road Service – usually this just covers towing, but could also include, lockout, gas delivery, etc.
Rental Car Limits – if you have a covered accident, your insurance company will pay for the rental car. There is usually a per day limit up to a total amount they'll pay. So, $30/$900 would be mean they'll pay $30 per day for the rental car up to $900 for the total time you have it.
Customized Parts & Equipment – this would cover any non-factory add-ons that you have on your vehicle, such as that subwoofer in your trunk.
Loan/Lease Gap coverage – if your vehicle is a total loss and you owe more to the finance company then the vehicle is worth, this coverage would pay the difference.
@ajbrown100 If you want change vote for UKIP or the Lib Dems. Honestly its not that hard to understand. Labour and the Conservatives are one and the same. Christ, they are so unoriginal that they have literally ripped off Barack Obamas “Hope and Change” phrase. Don’t be fooled.
UKIP are the only vote with no NI contributions and no tax on income lower than £11500 a year, a 30% tax on top earners. How will they pay for this? By getting out of the EU £45 million a day. Also by following the Austrian rule of economics, if you tax people less the income of the nation’s collected tax is higher.
Why would ordinary working people in the UK, living from one bill to the next, vote for an ex Etonian chinless wonder like Cameron? He does not have the remotest idea of the lives of ordinary people, and there is no reason to suppose he cares. He represents nothing more than the old boy’s network greasing each other’s palms
labour forever
And the Tories just definitively proved today that they are one and the same as labour. A vote for the Tories(or Labour) is a vote for your own enslavement by these filthy communists.
You do not receive benefits immediately if you sign up under the delayed entry program. Most recruits when they sign up now they sign up under the delayed entry program.
Once you sign the final paperwork at MEPS and leave to go to Basic Training you will start receiving benefits such as health and dental care. You are on your own when it comes to auto insurance.
Get away from an interest-only loan as soon as you financially can. Sounds like a pretty good fixed mortgage.
The Tories are so small minded and anti Europe that it is rumoured they plan to use all means possible, if they win the election, to toe Britain into the colder north Atlantic so as to say Hooray! We,re Real Little Brits at last because we are no longer geographically attached to Europe! What separatist, without co-operative vision, those Nasty Party plonkers are?
Prices Per mile vary on gas prices & trucking routes. There are many auto transport brokers who make a good living if they serve the customers best intentions professionally. You can find links to governemnt websies to get your broker bond which is required. Once bonded you will also need a place to get new business like haulingdepot.com or movecars.com.
Get your license right away. Go take the classes that your boss is going to pay for. They are pretty easy. Being that your company handles both P&C and Life, tell them that you want to get both licenses. This will make you more valuable. I think I did my studying through Dearborn, but there are several good companies to use.
lol debt is money,and money is debt. if everyone paid their debts there’d be no money. The economy and the monetary system are the most overlooked (and corrupt) systems ever. I doubt many people have actually asked who created money?.. Money itself has created all this global mess. It does not matter whos voted in, politicians arent here to make change because theyre not capable of real change, they just keep the things going as they are.. put it this way without resources,money would be useless
There is no such place in St. Petersburg or anywhere. All you can do is to call for quotes
The basics are that the insurance company has to indemnify the loss, that is, make it whole. They can do this by paying to have the car fixed, or by paying you for the loss in value of the car (which is the amount it would cost to have it fixed).
However, since you're indicating that you want to "pay the car off so that I won't be required to keep full coverage any more" then the finance company will be involved in the decision. They may not let you take the money – but it might be possible for the settlement money be paid directly to the finance company to pay off their interest in the car.
At that point, though, you're driving a damaged car. Is it all cosmetic damage? Is the car safe and roadworthy? If it's not, then you're the one who will have to pay for the repairs necessary to make it so….
why vote for labour, they have messed up this country and we need change now!!! vote conserative party.
VOTE LABOUR