Automobile Insurance 101

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.

Because of the sky rocketing prices of premiums nowadays, every possible discounts available would be a great help to anyone’s budget. When you shop, it will not do you any harm to ask for whatever savings you can avail since there is a possibility that the agent will not tell you of any discounts you are a qualified for. Many auto insurance providers give discounts to premiums of liability, medical and collision policies if you are accident-free. By accident-free, it means that you are provided with the same company for at least ten years and throughout those years, you were never involved in any accident that was your fault. Discounts differ by states and by provider it is up to you to check.