Automobile Insurance 101

Image Source:lawyers747.com

It can be quite of a confusing task to search for your car’s insurance plan. Most especially when you are clueless of any insurance and commercial knowledge. It can be a big help to look through the internet to learn some basic knowledge in car insurance policies and terms. This is very important in purchasing a plan because it will save you from all the trouble when you most need it. Here are some terms you should try to understand to help you start off with your search.

• Property Damage - If you happen to be the party fault in a traffic accident, and you have damaged the other party’s vehicle, this policy will be responsible for paying up for the other party’s car over all repair.
• Personal Injury - It will cover your own medical expenses at a certain price range, according to the term. Sometimes it also covers salary compensation for the time you spent out of work.
• Comprehensive Insurance - This is the most common and popular insurance policy. It specifically pays up every expense that might arise due to the accident. You have complete peace of mind.
• Bodily Injury - This will take care of the other driver ifever he gets hurt in the accident.
• Collision - This will cover only the vehicle damaged in the accident because of your mistake. It does not provide medical expense support.

It is good to know some of these terms so that you can opt for the best policy that will suit your needs.

Would you be willing to pay additional premiums on your car insurance? According to an article on ajc.com, Georgia Insurance Commissioner John Oxendine said he is considering the addition of fees on car and other forms of insurance to support trauma care services for car accident victims and others. This is because the state is desperately in need of more funding for trauma care services. And Oxendine says it makes sense since most trauma cases are a result of car crashes and work accidents.

There is opposition, of course, since insurance industry advocates argue that this would raise the costs and premiums of their products, as well as add new and unfair taxes to the industry. Since such fees are normally passed on to the consumers, it would be a double whammy for responsible citizens who religiously pay their taxes and get car insurance. Moreover, this fee would not be specific to car insurance, but may also apply to health insurance and worker’s compensation.

Image Source:www.rdhinstl.com

In car insurance as in any other form of insurance coverage, there exists what is commonly called as the doctrine of utmost good faith which forms as the founding principle for the execution of any insurance coverage. This doctrine accentuates the reciprocal faith that exists between the insurer and the insured. This doctrine is based on two principles; Duty of Disclosure and Representations and Warranty.

Duty of Disclosure simply states that the insured is obligated by law to disclose to the insurer any information that will have an influence on the issuance of an insurance contract. Representations and Warranty is a declaration executed by the insured that all information provided to the insurer are true and complete to the best of his knowledge and understanding.

Bodily Injury Coverage (BI) - BI pays for injuries to other people when the insured vehicle’s driver is legally at fault. This coverage is required in Colorado, New Mexico, Utah and Wyoming. The mandatory minimum limit is $25,000 per person.

Collision Coverage - Coverage for when your car is damaged as a result of colliding with another object-a brick wall, for example, or a rollover. This insurance applies only to the car. It doesn’t cover whatever the car collided with (that’s what your property damage liability is for). This coverage is optional.

Read the rest of this entry »

Limits - The most an insurance company will pay for a specific insurance coverage. Individuals can choose the limit that meets their needs. Many states have laws that specify the minimum limits an insured must purchase.

No-Fault Auto Insurance - Laws permitting the individual automobile accident victim to collect monies directly from their own insurance company for medical and hospital expenses regardless of whose fault the accident was. The idea is to discourage lawsuits by allowing policyholders to recover financial losses from their own insurance company without having to prove that anyone is at fault in an accident. Motorists may only sue for severe injuries and for pain and suffering if their case meets certain conditions. Eight states, including Colorado and Utah, require that you meet a minimum dollar threshold to be able to bring a lawsuit over damages over and above your economic losses. Florida, Michigan, New Jersey, New York and Pennsylvania use a verbal description as a threshold (i.e. severe disfigurement, disability or death). In New Jersey, Pennsylvania and Kentucky, when they buy insurance, motorists may choose to reject the lawsuit threshold and keep their right to sue for any auto-related injuries.

Read the rest of this entry »

by: Christine Zafra

If you have car insurance, lucky you.

According to Sainsbury car insurance’s latest data, about 1.15 million drivers have driven their cars for the past year without car insurance. But that’s not the most disturbing fact in their data. According to the same recorded evidence, almost half of those drivers were from the 17 – 24 age group. It is a fact that the people belonging to this age group are considered to be the most dangerous drivers since, they are either ignorant of the traffic laws or they are too aggressive on the road (DUI rates are high within this age group).

Photo taken from http://www.utvet.com

by: Christine Zafra

The rising costs of premiums and policies have made six million people in the United States switch car insurance companies for the past six months. According to MoneyExpert.com, these people tried to look for another one when their own insurance company announced that there will be an increase in their insurance premiums. MoneyExperts predicted that there will be about 10% increase this year because a lot of claims have been made (and rising!). Of course, MoneyExperts said that for these insurance companies to attract new clients, they will still give out discounts—at the expense of the old policyholders for sure.

Photo taken from http://www.weeklygripe.co.uk

by: Christine Zafra

GIECO, an automobile insurance company, has reported that according to their gathered data, catalytic converters are the leading parts that are stolen in today’s cars. These converters can be sold to junk shops and auto car dealers, who may or may not be part of the scheme.

Basically, the gadget plays an important role. It “converts” the toxic gases produced by the car itself by filtering it before it shoots out of the car’s exhaust pipe. Normally, these thieves position themselves in a parking area or perhaps, a busy street with parallel parked cars to eliminate suspicion from other passersby.

Photo taken from http://static.howstuffworks.com

by: Christine Zafra

Insurance fraudsters are getting ingenious day by day. There is actually a new trick these people are employing. Here’s how they operate so better read on.

If you have been following a vehicle in front of you, and that car has no break lights, watch out. If that person inside is a fraudster, he or she will floor the breaks and chances are, if you drive too near its tail, you’ll crash to it. This requires the fraudster to have a conniver since he or she cannot just floor the breaks for nothing. The conniver will try to swerve at the direction of the fraudster’s car to make him or her step on the breaks.

To prevent this from happening, do not ride the tail of the car in front of you. Keep some distance and drive carefully. Be cautious of your surroundings.

Photo taken from http://www.vti.se

by: Christine Zafra

Forensic paint analysis is an anti-crime division of the authorities in charge of tracking down bad guys who have utilized cars in their crimes. If ever you wonder how they do it, here’s how.

The paint of the car is coated many times. The first coating (direct to the metal casing of the car) is the electron coating. This coating is dark gray in color. Then another batch of paint is added, this time, the color is either light gray or red brown. Then, the third and final batch is added (the color that is visible to the eye).

Now, here’s the coolest trick. Have you heard of the color spectrum? No matter how alike the colors of the cars are, the spectrum says otherwise. If the car bumps another car, or a post or a person, a part of the car paint chips away and sticks to the other. Forensic paint analysts use the spectrum method to determine the color of the car, the model (some car manufacturers only use a certain type of paint) etc.

When enough data is gathered, they go search for the culprit and believe me, this has been proven effective.

Photo taken from http://mediagods.com