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Posts Tagged ‘Liability Coverage’


18.01.2011

When Car Insurance Is Your Friend

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Sadly, even today, people tend to be rather callous when the question of car insurance comes up. Many give the excuse that since they are good drivers they will not need insurance at all. However, road traffic is not what it used to be and you can never predict what is going to happen on the road even if you follow all the driving rules.

THE IMPORTANCE OF CAR INSURANCE

Why do you need a car insurance policy? It offers you coverage in the event of losses arising from traffic accidents. As an example, just look at the following. Let us say that your car was hit by a falling tree and got totally smashed. If you had taken out a car insurance policy, the loss would be written off by your insurance company. If this were to happen, you would be better advised to go in for a new car instead of trying to repair the old one.

COVERAGE OFFERED BY CAR INSURANCE

- Property Damage Liability Coverage: This policy type pays for accidental damage to someone else’s property (for example, their home fence,) in a collision. The insurance can help people pay off the legal fees in case they have to deal with a lawsuit for property damage.

- Bodily Injury Liability: If a third person is injured, this coverage takes care of it. It covers lawsuit expenses as well.

- Personal Injury Protection (PIP): This policy type covers for medical expenses, lost wages and other similar expenses arising in an accident, wherein there is no serious bodily injury.

- Comprehensive Coverage: This policy type covers for damages caused by theft, flood, and fire and so on. This coverage is very important as it covers non-collision related damages.

- Collision Coverage: This policy type offers coverage for damages happening as result of a collision or in situations where your car strikes another car or is struck by another vehicle.

- Underinsured Motorist Bodily Injury Coverage – This policy type pays for expenses that happen as a result of an accident in which the driver of the other car has insufficient insurance coverage.

- Uninsured Motorist Bodily Injury Coverage: This policy type pays for expenses that happen as a result of an accident in which the driver of the other car has no insurance coverage causes an accident with your car.

- Underinsured Motorist Property Damage Coverage: This policy type is applicable in case of an accident in which the driver of the other car has insufficient insurance coverage. If the other car requires repairs, your policy will help you take care of that as well.

When getting a car insurance policy, check out the different types offered. Look out for car insurance that will cover you for a wide variety of things. You can buy several policies together. Look around for the best rates being offered in car insurance. There is no dearth of great car insurance deals if you look around sincerely enough.

It would be a great idea to check with friends and family to find out which deals are worth looking at and which companies offer the best bargains. After all, you are looking at an option that will work out in the long run. Look at the bigger picture when you choose a car insurance policy.

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05.10.2010

On Vacation – Do You Need Rental Car Insurance?

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If youre in the planning stages of your next vacation and they include a rental car, you may want to talk with your insurance agent about the rental car insurance options that you may have.

When it comes to traveling and more specifically rental car insurance, the market is extremely competitive for your pound. This is because not only do the insurance companies compete for your pound, but so too do the rental car agencies, and your credit card companies as well. And while all this competition may sound as though it works to your advantage as a consumer, all the marketing hype may change if you have an accident.

Start by contacting your insurance agent and see if your policy includes rental car insurance. Most auto insurance policies do including covering you in a rental car as well. Of course, verify this with your agent. Make sure it includes collision and liability insurance (damage to your car and to the other vehicle). Make sure your current coverage doesnt fall short of the type of car you may be planning on renting. For instance, if you drive an older car with minimal coverage, you may be putting yourself at risk if youre going to rent a top level newer car. So, check on any limitations that your policy may have. Find out what the conditionals are ahead of time so you dont get caught short.

If you are considering getting your rental car insurance through one of your credits cards, then you should shop carefully. Call your credit car company and ask them to fax or mail the details to you. Either way get their coverage in writing. Again, ask specifically about collision and liability coverage and if there are any limitations or stipulations or complete exclusions. Dont assume that just because they offer you insurance that you will have the coverage completely protects you.

Thinking about getting your coverage directly from the rental car company? Youve got some more investigating to do. Insurance coverages from rental car companies are all over the place and generally can be fraught with all kinds of stipulations and exclusions and certainly not all rental car companies are not on equal ground.

Dont base parts of your decision to go with insurance from the rental car company thinking that if you are at fault in an accident that you can avoid a potential rate hike from your home insurance company. Your regular insurance company can raise your rates no matter who cuts the check. If you are involved in an accident make sure that you report this to your insurance company back home because if the credit card insurance or the rental car company insurance doesnt pay and you havent reported it to your insurance company, you could paying out of your own pocket.

Make sure you ask a lot of questions and get them answered well before you go on vacation. And as a side note, you may want ask your agent with whom you have your homeowners policy about what is the coverage in the event you have personal belongings stolen from a rental car. It may sound like a bunch to get done before you go on vacation, but getting yourself the proper insurance can literally save you financially.

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29.06.2010

Do You Make These 5 Mistakes When Buying Car Insurance?

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Do You Make These 5 Mistakes When Buying Car Insurance?

Here are some of the common mistakes many car insurance policyholders make. See if you recognize yourself:

You assume the insurance salesman is your friend.

Insurance salesmen are exactly that — salesmen. And they do get compensated with bonuses and other rewards for selling certain types of policies. Those policies are not always the policies that are best for you. Remember that the next time you are shopping for auto insurance. Generally speaking, insurance salesman are rewarded for selling the smaller policies that leave the insurance company less exposed in the event that you want to make a claim. These are the policies that are most profitable for the insurance company. So, as surprising as it might sound, you may actually be under-insured.

To make sure this doesn’t happen to you, make sure that you have the basics: liability coverage, comprehensive coverage and collision coverage (see below).

Your deductible is too small.

Many consumers think that they need to protect themselves against every little scratch and dent. That’s a bad idea. You should only insure yourself for those things that you cannot afford to lose. If your car is only worth a few thousand pounds, don’t spend that much on premiums for collision coverage by buying a small deductible.

Another reason this is a bad idea is that you’ll be tempted to nickel and dime your insurance company with every little thing that happens to your car. Eventually, your premium will go up or they could say, “we’re declining future coverage.”

So seriously consider getting a much higher deductible — maybe even as much as 1000. You’ll save money and your coverage will probably extend to a much higher limit.

All your cars have the same insurance coverage.

If one of your cars is an old beater, don’t cover it the same way that you cover your other cars. For example, if you have an old pickup truck that you use to transport building materials and you don’t care if it gets dented or scratched or whatever, just get the minimum amount of coverage on it. Who knows? Maybe you just drive it a few miles a year. Get insurance that is appropriate for that vehicle and cover your other vehicles in ways that are appropriate for them.

All your cars are jointly owned.

There’s really no reason to own a car jointly. If you share ownership with your spouse, it’s possible that you could be exposed to liability if your spouse causes an accident. In other words, both of you could be sued. Similarly, when your child buys a car, or if you buy them a car, put the car in your child’s name. That way, you can avoid liability for any accidents caused by your child.

You forgot your umbrella.

Here’s how umbrella coverage works: if you’re in a very bad car accident that causes a lot of property damage that is beyond which your insurance policy covers, you may have to pay massive amounts of money out-of-pocket. This is what umbrella policies are for: to protect you from liability that is way beyond the limits of your standard auto insurance policy. These umbrella policies are usually pretty cheap (a couple of hundred pounds) and can give you important coverage.

Conclusion

Hopefully this article has showed you some things that you can do, that will help you avoid common mistakes that car owners make when they buy auto insurance.

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09.03.2010

Are All Car Insurance Companies Equal? Here Is What

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Are All Car Insurance Companies Equal? Here Is What To Look For.

Car insurance protects you against any financial loss that may happen due to an accident or theft of your car. It is a car insurance company that issues car insurance to you. A car insurance company will work up a car insurance policy for you after evaluating the various options like the make of your car, the premium that you are willing to pay, your insurance risk, etc. A yearly premium has to be paid by you to the car insurance company so that the company can pay for your loses that you may bear in the future. All the terms and conditions are mentioned in the contract and it is your duty as a car owner to look over all the points and ask the insurance agent any questions that you have in mind. It is only after all the terms and conditions are clear to you that you should sign on the dotted line and pay the premium.

Normally all car insurance companies have the same insurance policies. The premium to be paid and the percentage of losses to be covered in case of any accident may vary slightly. Since the car insurance market is very competitive, the premium rates and other terms and conditions almost remain the same.

A car insurance policy may provide property, liability and coverage depending on the type of policy. The property coverage covers losses for damage of the car or the theft of the car. Liability coverage pays for any legal liabilities to other people for bodily harm or property damage. And medical coverage covers expenses for treating injuries, medicine expenses and funeral expenses in case of a car accident. You may buy the different types of coverage depending on how much you want to spend on your policy.

A car insurance policy usually consists of 6 types of coverage. As mentioned before a customer can select from the different types of coverage. Most of the car policies last from 6 months to a year. Your car insurance company will bill you when it is time to renew your policy and be prepared for a rate hike.

The different types of coverage are :-

1) Bodily Injury Liability

This type of liability covers the expenses of injuries that you may cause to someone else while driving your car. Also the coverage includes injuries caused to a person while driving other persons car.

2) Medical Payments and Personal Injury Protection

This type of liability covers the expenses for the treatment of injuries to drivers and other passengers. The liability also covers medical expenses and funeral expenses in the case of death.

3) Property Damage Liability

This type of liability covers for damage to the other persons car and your car. It may also include damage to lamp posts, telephone poles, fences and other public property.

4) Collision

This type of liability covers expenses for damage to your car or the other persons car. Even if you are at fault, then also you will be reimbursed for the expenses of repairing the car.

5) Comprehensive

This liability covers loses due to theft or damage to the car by something other than collision with another object or damage to the car due to fire, falling objects, explosion, earthquake, etc.

6) Uninsured and Underinsured Motorist Coverage

This liability covers damages to your car by another driver who is uninsured.

The coverages mentioned above are offered by all car insurance companies. In almost all states, car insurance is mandatory. Therefore, it is your responsibility as a car driver to have a policy.

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