Do I Need More Liability Coverage?

Do I Need More Liability Coverage?Contrary to popular belief, you actually can purchase too much insurance. However, the amount of liability coverage that you need depends on several different factors that vary from driver to driver. All states have a minimum legal requirement that designates a limit for coverage per person and per accident. For example, a bodily injury coverage plan that is worth $150,000/ $450,000 means that each person involved in the accident could be compensated up to $150,000, but only $450,000 could be provided for just the one accident.

Although the standard liability coverage plans offered are usually pretty substantial, your own coverage amount should depend partially on the amount of assets you have to protect. For example, if you make $30,000 per year, rent an apartment, and have little savings in the bank, you will probably be best suited with a $50,000/ $100,000 plan. Alternatively, if you make $100,000 per year, are the owner of a house worth $200,000, and have $50,000 in savings, you should consider getting substantial coverage to protect your assets. It is recommended that you purchase at least $100,000/ $300,000 to ensure this protection.

One good tip when purchasing liability insurance is to forego personal injury protection, since these costs will usually be covered by your health, life, and disability insurance. In terms of property damage, some states require minimums as low as $5,000. Although this may appeal to your budget now, it likely won’t cover the full cost of getting into a car accident with a BMW. As a general rule, you should shoot for a minimum of $50,000 worth of coverage for each vehicle you own.

Collision coverage will pay for the full cost of repairs or replacement if your car is involved in an auto accident. Comprehensive coverage will cover damages caused by natural disasters, vandalism, or theft. In both cases, you will want to shoot for the highest deductible your can afford– preferably $1,000– to reduce your policy costs. Although this coverage option is important for newer, more expensive vehicles, you may be able to opt out of it completely if you have an older car that would be cheaper just to replace in the event of an accident.

Buying insurance online vs. in person

Buying insurance online vs. in personAre you the kind of person who likes to avoid the crowds and shop online? Do you prefer making dinner reservations through your tablet computer or ordering airplane tickets through your airlines’ Web site? Would you rather pick up the phone to make your hotel reservations or order your new living room couch?

These answers are important when you’re shopping for new insurance. Whether you’re purchasing homeowners, life, auto or health insurance, you can shop for and buy policies online. Doing so is quick. But some people still prefer to buy their insurance the traditional way, with meeting an insurance agent face-to-face.

Both methods have their advantages. Consider shopping for insurance online. If you’re strapped for time, you can log onto an insurance-comparison Web site and instantly compare insurance quotes and policy types from the biggest insurance providers across the country. When you find a policy you like at a price you deem fair, you can quickly purchase it.

For others, though, buying insurance directly from an insurance agent is the favored approach. When meeting with insurance agents in person, shoppers can ask the questions that won’t get answered — at least not quickly — from an online insurance provider. Some shoppers simply feel more confident that they’ll receive the best service when they meet with agents in person.

There is a third option, though. Some shoppers prefer to research insurance policies online and then make their actual purchases while meeting with an insurance agent in person. By logging onto an insurance-comparison Web site, consumers can quickly receive live quotes from insurance providers across the nation. Armed with this information, they can then visit a local insurance agent to discuss their options. This results in better-informed consumers who have boosted their odds of finding the right insurance policy for them.

The best news is that no one approach is right or wrong. It’s up to consumers themselves to determine which method of hunting for auto, health, life or homeowners insurance is best for them.

Will My Auto Insurance Cover My Friend if I Let Them Borrow My Car?

Will My Auto Insurance Cover My Friend if I Let Them Borrow My Car?Many people lend their vehicles to friends and family members they trust without giving it a second thought, but this decision can lead to major consequences without the right auto insurance coverage. Determining whether or not your auto insurance will cover a friend driving your car will vary from policy to policy. At the very minimum, the law requires you to purchase liability auto insurance coverage. Liability insurance would cover you from the expenses that you would be liable for in the event that you are involved in an auto accident that causes property damage or bodily injury to another party involved. Considering the high costs of medical care and legal fees if a lawsuit were to come of the accident, liability insurance can protect you from having to drain your savings for one accident.

Unlike collision coverage, liability insurance covers the driver and not the car. This means that if a person were to borrow your car, their own insurance policy would be responsible for covering the damages that occur as a result of an accident. Therefore, it wouldn’t be a significant risk for you to let someone borrow your car, as long as that person had some form of insurance on their own. Alternatively, a friend without a personal insurance policy would be solely responsible for any incurring damages while driving your car. Although this wouldn’t necessarily affect you, it is usually best to avoid this scenario.

Letting a friend borrow your car occasionally is one thing, but if you live with someone who frequently drives your vehicle, you should consider adding him or her to your policy to ensure full coverage in case of an accident. If this situation applies to you, it’s best to talk to your insurance agent about authorizing this person to drive your car by officially designating it on your insurance plan. Having this authorization would guarantee that you both would be fully covered in case an accident were to occur.

Excluding Someone From Your Insurance Policy

Excluding Someone From Your Insurance PolicyIn instances where a driver under your insurance policy has gotten into multiple auto accidents and received several traffic tickets, it may be in your best interest to exclude this person from your auto insurance policy. Any traffic violations that occur under your insurance policy, whether a fault of your own or another driver, will negatively affect your insurance rates and cause your premiums to increase dramatically. In order to exclude a driver from your insurance policy, you will have to deliver a written “named driver exclusion” to your insurance carrier to specify exactly which driver you would like to be excluded from your insurance policy. Once this person is excluded from your policy, he or she will not be covered under your personal auto policy for future accidents.

Although a driver may be excluded from your policy, you or the excluded driver will still be responsible for any damages or injuries that may result from an auto accident in which the excluded driver is at fault. However, you will only be personally responsible if the excluded driver was driving your vehicle at the time, regardless of whether or not he or she was covered under your insurance policy at the time of the accident. For this reason, you will want to exclude an at-risk driver as soon as possible, and make sure to terminate this person’s access to your vehicle after you have excluded him or her.

Your insurance company may recommend excluding a driver from your coverage policy if this person is responsible for any of the following:

  • Multiple vehicle citations
  • A suspended license
  • Several at-fault accidents
  • A DUI or DWI conviction
  • Impaired mental ability

If your own record is relatively clean, having someone on your policy who has any of the violations listed could cause you to pay higher insurance premiums that you otherwise wouldn’t have to pay. Excluding this person from your policy would allow you to enjoy all of the benefits that you earned as a good driver, while eliminating and negative affects that this driver has caused.

Do Not Let a Stroke Stop Your Driving

Do Not Let a Stroke Stop Your DrivingAsk a stroke affected person how it influences every single aspect of their life, from eating to communicating, muscle contraction to driving car. Stroke can make all your activities treacherous. Especially for the drivers, who incurred stroke will have trouble in even turning the wheel, applying brakes, clutch and even difficult making sudden decisions in case of emergencies.

State laws do not let any driver affected by stroke to go behind the wheels. Physicians will generally be asked to report to the state department of motor vehicles on patients having serious medical issues. Further the patients will be taken for a driving test post which they will be certified if they can continue to drive on Michigan roads.

Tests for Safety

Fortunately, a stroke cannot stop you from your daily activities and all your privileges to drive. As per a study in Neurology, after a series of tests being conducted on a stroke person should help him to get back on wheels. The tests will be administered in doctor’s office. The patient will be assessed on traffic knowledge, road signs, visual abilities, mental speed, span of attention and spatial abilities. Only when the driver is able to pass all these tests, he will be allowed to drive.

As the decision to drive is a complex decision to be made, it happens gradually. If at all you fail to follow traffic rules and cause any accident, it will have an impact on your driving record and thus your car insurance premium will increase. Below are some tips which will help you to drive after a stroke.

  • Talk to your physician. The doctor will help you in determining your capabilities to drive again.
  • Start slowly. Drive short distances and check how far you will be able to handle it. Practice in empty roads first before getting on highways.
  • Always have someone beside you while driving. Do not drive alone unless you are confident. Ask for honest evaluation and then proceed.

Reasons Affecting Car Insurance Premium

  • Reasons Affecting Car InsuranceEducation Qualifications :
    While education may not make one a better or safer driver, it says a lot about what kind of person the applicant is. Education Qualifications and employment directly influence income, income affects lifestyle and lifestyle is a very important consideration for car insurance companies. Not only does lifestyle showcase the scale of living, it also influences the sort of money at one’s disposal. The kind of car or vehicle to be insured is one of the most important factors that influence how much you pay as premium. The costlier the vehicle, the more the car insurance will cost as the cost to repair a high end vehicle is a lot.
  • Credit details :
    The relationship one has with the bank says a lot about the person. The insurance company may ask to see bank documents. However, most of the time, the New Jersey car insurance company will run a background check on a person’s credit history. While most of these details may provide tangential information, not directly saying anything about a person’s character or driving technique, they do count to create an overall picture of the applicant. It might make some sense to manipulate your credit rating and maintain a decent credit history profile, considering this detail is scrutinized by insurance companies.
  • Use of the Vehicle :
    This is important to note. It should be obvious that the more a vehicle is used, the higher the chances of meeting with an accident. Even though a person may lead a high flying lifestyle and need to travel distances to work and back, he or she may have limited use for the vehicle. Several New Jersey car insurance companies provide transport to their officers. So a person possessing an expensive car may have one because he or she has the means to but may not get much use out of it. The insurance company may charge a lower premium in such cases and provide a policy that has limited coverage.

Lapse in Your Oregon Car Insurance Policy

Lapse in Your Oregon Car Insurance PolicyMost Americans, in an attempt to hold onto savings they cut down on their daily expenses. An inclusion of even car insurance premium into the block list, affects you. If you are not owning a car insurance, it simply means you are going uninsured. This does cause trouble to the other person involved in any accident with you as he will have to turn to uninsured motorist coverage under his own policy. Do not try and save on that little money.

Lapse in Coverage and It’s Penalties

If there is any lapse in coverage then it will easily trigger penalties. This is often expensive and becomes difficult for you to obtain a policy in future. Unfortunately, it so happens that drivers who are uninsured tend to often meet with accidents. Such instances, with no insurance or a gap in coverage easily burns your pocket. You will be labeled as risky by the insurance companies and will end up paying heavy fines when you decide to get insured again.

Be it any state, driving without an insurance is illegal. With high number of uninsured drivers, Oregon state has rolled out stringent measures for those who fail to get covered and heavy fines for lapse in their coverage. Any driver can be easily held by the cops by just running down on the number plate of the vehicle and be punished severely for lapse or failure to hold a policy.

Financial Hardship and Insurance

There are drivers who cannot afford insurance due to unemployment, without work permit or even relying on other members for commuting. With small paychecks they are unable to pay premiums and obtain a car insurance policy. In such situations, talk to your agent or the insurance company and tell them about your financial condition. They would raise your deductible on comprehensive or collision coverages, cut down on policy rates to reach required state minimum liability and reduce your premium rate. You will also be given an option to pay premium only for the miles driven, framing an affordable insurance rate.

Liability Insurance of Pennsylvania – Bodily Injury and Property Damage

Liability Insurance of Pennsylvania – Bodily Injury and Property DamageLiability provides protection to you or anyone driving your car with your concern. When any claim is made against you by a third person labeling you to be responsible for the accident caused, this coverage will make payments to him on your behalf, if found that your vehicle is involved and resulted in injury or damaged any of the property of the third person. In addition, it will also provide legal support and will defend you when a law suit is filed. Hence do not reduce limits on your liability coverage.

Minimum limits mandated on bodily injury liability coverage for third-party by Pennsylvania’s Vehicle and Traffic Law are:

  • bodily injury of $15,000 for each person or $30,000 for causing death due to any injuries, sustained in an accident by one person
  • bodily injury of $30,000 for two or more in one accident or $60,000 resulting in death of two or more persons due to injuries from one accident.

State law also requires a minimum of $5,000 for any damage caused to vehicle or it’s parts or any damage to the property during an accident. Thus the minimum liability limits in Pennsylvania is referred to “15/30/5” or “$15,000/$30,000/$5,000”.

For any bodily injury or property damage caused during an accident, if it is due to other driver’s negligence then you can claim under the other driver’s car insurance policy, where the automobile insurance policy provides coverage for each person involved in the accident and hence a liability coverage. However, when an injured person in your vehicle is your spouse unlike the purchase made, you need to opt for Supplemental Spousal Liability Insurance. Remember, your wife is still eligible for No-Fault as discussed above. Hence, it becomes necessary to check with your insurer or the insurance agent much before buying a car insurance policy.

Inexpensive Homeowner Add-on

InExpensive HomeOwners Add-OnBackup of Sewage and Water Damage Coverage: Most of the home insurance policies do not include this coverage but as a rider it can be purchased . This won’t cover physical loss caused directly due to insurer’s negligence but covers water damage or sewage or drainage blockage resulting from floods.

Credit Card, Forgery, Fund Transfer and Counterfeit Money: This provides coverage to instances such as loss incurred due to forgery or theft, swapping of check, misuse of credit cards by an unauthorized person, funds transfer made electronically and many as such. This pays for the legal obligation up to a certain limit.

Personal Property Replacement Cost and Special Personal Property Coverage: This provides security for those losses incurred by personal property and gets paid only for it’s replacement cost but not the actual cash value. The Special Personal Property coverage on your home insurance policy covers all risks due to few named perils certainly with exceptions.

Claims

Any insurance company will be happy to assist you and guide you in knowing about your insurance policy, it’s terms and conditions much before you sign a bond with them. It is very important for any person to know about claim procedure, cancellation, renewal or issue of new policy. If any claim is made against your policy, it takes 45 days for the policies in effect to be canceled or renewed or even to increase premium. Claims has its own defined set of rules and conditions and it differs from one company to another. Make sure to check with your agent before you sign a bond and make a claim. If multiple claims are made then the companies may prohibit the surcharges. You can make claims on add-ons provided you have enough proof and help the insurance company with every required detail for the loss incurred.

Understanding No-Fault Insurance Benefits (Personal Injury Protection)

No-Fault Insurance BenefitsNo-Fault, also called Personal Injury Protection (PIP), pays for the losses up to $50,000 to individual person who is injured in an accident, be it a pedestrian, passenger or the driver. The purpose of Wyoming’s No Fault law is purely to restore health, assets and productivity, though slowly yet steadily for every individual who are hurt in an auto accident. It also ensures that economic losses are met and not exceeding the law’s benefits.
No-Fault is a coverage mainly to cover personal injury and not to pay for any car repair or damage to parts of vehicles or any personal property. No-Fault pays first for injuries when an accident occurs hence standing much before a health insurance.

Inclusions

Any basic No-Fault car insurance coverage includes:

  • Necessary and reasonable rehabilitation and medical charges related to an accident.
  • 80% of earnings which you have lost from work, pays up to $2,000 per month for 3 years, count starts from accident date; it also offers disability benefits on statutory offsets for Wyoming Worker’s Compensation, State disability, and Federal Social Security.
  • Pays up to $25 per day, from accident date up to an year, to reimburse necessary and other reasonable expenses resulted from an auto accident.
  • Death benefit of $2,000 payable to eligible person’s beneficiary who was killed in the accident.

However, a person will not be eligible under few car insurance policies for No-Fault benefits. If,

  1. DUI comes into picture i.e. a driver is under intoxication and accident occurs.
  2. Causing injuries intentionally.
  3. A felony committed and is injured.
  4. Injured when in a stolen vehicle.
  5. An uninsured vehicle is owned by you.