Automobile Insurance 101

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A lot of reasons exist why you want to change your car insurance company. Maybe you are dissatisfied with the service given by your current insurance company or simply, there is another company willing to give you the same coverage at a significantly lesser price. Switching to a new car insurance company has never been easier. Get a new car insurance policy first before doing away with the old one. You don’t want to drive with an expired insurance - if you get caught, more problems are in store for you. It is also good to know when to change policies. Depending on your state rules, 3 to 4 weeks before your insurance expires, a renewal notice will be sent to you more or less a month before the new policy starts. The notice will tell you what your new premium and coverage will be including your discounts. You can now shop around for a new policy based on the data that was sent to you. This way, you have enough time to look for the insurance company that will give you value for your money.

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.

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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.

One major reason to automobile crashes is distracted driving and topping the list of distraction while driving is the use of cell phones. If you use a cell phone while driving may increase your chances of getting involve in a car accident. In the United States, from 4,000 to 8,000 crashes happening everyday are distracted driving related. Reports show that as many as 3 million U.S. crashes every year is being contributed by distracted driving. Actually, distracted driving is an old issue already. Ever since the introduction of windshield wipers in cars in the early 1900s distracted driving have been the topics of discussion.