Archive for the ‘Car Insurance’ Category
The only people who think they do not need auto insurance are those who don’t have a car or never survived a serious accident before. A car accident can leave both drivers and all their passengers with steep hospital bills and large car repairs. Even if the police determine the other driver was responsible, your insurance may need to kick in to cover the amount needed for all your bills. That is why you need to take a look at the minimum amount of coverage required by the state.
Minimum Coverage for Drivers
Bodily injury insurance kicks in and covers hospital bills and other medical expenses. California law requires that drivers have a policy with a minimum coverage amount of $30,000 per accident and $15,000 per person. You’ll also need a policy that includes property damage coverage. This coverage pays out for repairs that other drivers need after you cause an accident. It can also apply to minor property damage that you do such as knocking over a neighbor’s mailbox. California law requires that you have at least $5,000 worth of property damage coverage.
What if You Don’t Have Insurance?
If a police officer pulls you over and determines that you do not have insurance, you face a large fine and a ticket. That fine can range from a few hundred dollars up to $1,000. You may have the chance to obtain auto insurance and go to court to show that policy. While the court may drop your fine, it may require that you pay all court costs. Police officers also have the right to impound your vehicle until you get insurance, which can cost you more than $100 a day.
Before buying online insurance in California, consider signing up for a policy that includes uninsured motorist coverage. When you are in an accident with someone who does not have insurance, you cannot get compensation from the driver’s insurer. Instead of going over that individual in court, which can take months or even years, uninsured motorist coverage will compensate you for your medical bills and property damage. California also offers under insured motorist coverage that kicks in when a responsible driver lacks the necessary amount of coverage. Shopping for insurance online lets you compare rates for major insurers for all the coverage you need in your car insurance policy.
Whether you are just buying your first car or are looking to change insurance companies, you may have some questions about your car insurance. Here are some car insurance facts to point you in the right direction.
There are three basic kinds of car insurance:
- Comprehensive: This pays for any damage to your car from vandalism or theft and even fire and water damage. If you have paid off your car loan you may be able to drop your comprehensive coverage, especially if the Blue Book value of your car is less than $5,000.
- Collision: If you have a car loan, you are required to have this kind of insurance. This kind of insurance will pay for car repairs if you are in an accident.
- Liability: This kind of coverage is required in most states. It will pay for damage to another person’s property that may occur as a result of a car accident, as well as third-party personal injury and death-related claims.
There are also optional types of car insurance, if you feel you might need some extra coverage. These include:
- Medical payments and personal injury protection, which covers the cost of medical bills for passengers and the policyholder.
- Uninsured or underinsured motorist, which provides additional coverage in case you are involved in an accident with someone who doesn’t have insurance.
- Gap coverage, which will make up the difference between what you paid for the car and what insurance pays if something catastrophic happens to the car.
- Full tort or limited tort coverage means that you save some money on your insurance bill, but you agree not to sue after an accident.
For more information on car insurance, check out this article about insurance Myths and Misconceptions. If you have more questions or would like to get a quote, make sure you speak to someone who knows auto insurance in Austin.
In the United States of America, auto insurance is required for any vehicle that is registered with the department of motor vehicle. Although the requirements vary with each state, there are still some universal mandatory policies that must be purchased for all motor vehicles. The goal of any auto insurance is to protect the driver and passenger of a vehicle as well as other people that may be involved in a car accident. Additionally, auto insurance provides protection for the damages that are done to someone’s property. Auto insurance in the state of Delaware is an example of a location with strict regulations regarding motor vehicle insurance.
Every insurance policy provides a certain amount of money that can cover injuries as a result of a car accident. For example, an insurance company may pay up to $50,000 per person involved in a car crash. Similarly, car insurance can also provide coverage against damage that results from uninsured motorists. Such a policy is also useful for hit and run situations that involve someone striking a car and then driving off.
Auto insurance companies use a point system to evaluate the monthly premiums for a customer. A driver with a good record without any major traffic violations can receive fair rates on the monthly bill for car insurance. Defensive driving courses can also be applied towards reducing the cost of auto insurance premiums. Safety features such as antilock brakes and daytime running lights can also be used for car insurance reduction.
Car owners face a myriad of concerns and questions concerning their insurance policies. New as well as experienced owners often try to find answers but face confusing industry terms that only create more confusion. Being aware of the right information can significantly reduce the stress related to this issue.
Should I Contact An Agent If A Minor Accident Occurs?
Drivers should contact their insurance company even if the accident features little to no damage. If may not be considered a top priority over serious accidents but it is important to inform insurers about the event. If another vehicle is involved, always remember to exchange information with the other driver should further problems occur due to the accident.
Does My Previous Driving Record Affect Coverage?
Insurance companies carefully review driving records before accepting a new policyholder. Good records with no incidents are viewed more favorably and customers are allowed to modify sections of their coverage. Any driver with a serious history of infractions could face a complete denial. Those who do receive a policy could face strict terms and conditions. They will also face much higher rates that could decrease if they work towards creating a safer record.
Can I Drive Without Insurance?
Many car owners think that auto insurance is not a requirement. In a majority of states, laws are in place that require every driver to have a policy with minimum amounts of coverage. State insurance agencies have the most up to date information about current regulations in place. Their websites feature detailed contact information for additional questions.
Are Used Vehicles Less Expensive To Insure?
Used vehicles carry their own set of standards that each company must evaluate. Most guidelines closely match those of new vehicles in the same category such as a safety features. The latest advances available on current vehicles offer insurers more security which could mean lower rates. Any used models closely matching those requirements should also see a favorable premium over time. Visitors to cashclunkers.com know the great selection of choices that come with a low rate for insurance coverage.
Does The Age Of A Driver Matter?
Companies are very concerned about younger drivers as well as older drivers. These two categories contribute to a great deal of accidents each year. For that reason, insurers will often impose high rates to cover the higher possibility that a claim will be filed. According to the Los Angeles Times, “Each insurer devises its own set of parameters to predict risk.” (URL: http://articles.latimes.com/2011/may/22/business/la-fi-perfin-20110522) Older drivers may also be subject to yearly exams that cover issues such as quality of vision. Policies may be dropped if someone fails to give correct facts or information concerning their health.
Auto insurance is something that every driver must have. It can be a confusing subject that creates many questions for any car owner. Knowing the answer to important coverage questions can mean the difference between a great rate with the right amount of coverage and paying too much for a policy.
Many older drivers are still facing an uphill battle when it comes to finding an insurer willing to offer them cover. It is this lack of providers which means that more and more senior drivers are being forced to stop driving, even though they are still perfectly competent behind the wheel of the car. But is this legally permitted? Here is a look at the rules.
What Should Happen
The government has acknowledged that insurers are entitled to stop offering cover to drivers at whatever age it believes is commercially correct for their company, but there are certain steps which should be taken if an individual is refused based solely on their age.
The government helped forge an agreement between trade bodies the Association of British Insurers and the British Insurer’s Brokers Association.
This agreement stipulated that if an insurer declined an applicant for being over their maximum age limit, then they would direct the individual to a broker who would be able to place them with a company more amenable to insuring older drivers. This process is called signposting.
What Happens in Practice
Research has revealed that the redirection to brokers is simply not happening and older drivers who represent no extra risk are being forced to hang up their car keys for good, simply because they don’t have the means to find an insurer willing to accept them.
Some insurers offer different practices for existing customers whilst others enforce strict age limits regardless of how long the motorist may have been with the company.
Studies have shown that more than eight out of ten older drivers were not signposted when they were rejected, leaving them uninsured and with no easy means of identifying firms willing to provide cover.
BIBA has reported that the signposting service is being used on some occasions, with more than 40,000 referrals during its first year of operation since the agreement was enforced in April 2012. However, many experts are suggesting that in the vast majority of cases older drivers are not being helped to find an alternative insurer as they should be under the terms of the agreement.
Although the Equalities Act helped to improve out-of-date legislation, insurers received an exception but are obliged to be able to justify their pricing structure and to produce evidence which supports this. The insurance industry has countered with the allegation that older drivers make the most costly claims.
Consumer advocate Which? has found that a very large number of car insurance providers simply don’t cover drivers who are aged 81 or over, regardless of their health or driving record.
This does not mean that all insurers adopt the same policy. Select insurers offer packages that meet the needs of specific age groups. They are designed for the purpose to address the specific needs of different age groups. For example, you can find more information about over 50s motor insurance packages here.
Having access to a car is more important than ever as we get older, so forcing able and healthy drivers off the road simply due to a refusal to insure them is an issue which is surely worth highlighting once again.