The Different Types of State Liability Insurance Available

Liability insurance pays damages to other people and their property caused by the negligence of an insured person. There are many types of auto insurance liabilities.

Three types are included in a standard policy:

  • Bodily injury and property damage liability covers injuries to other people and property damage to their auto. This basic auto liability fulfills the statutory requirements of financial responsibility to operate a licensed vehicle, or higher limits can be purchased.
  • Uninsured motorist coverage pays the policy owner for damages when the other driver is uninsured.
  • Underinsured motorist coverage pays losses in excess of the other driver’s liability coverage in the event of a catastrophic claim.

The traditional liability plan covers the costs of at-fault accidents, referred to as a “First Party” policy.

Additionally, some states have a “No Fault” liability system for smaller claims. With this type of arrangement, the auto owner buys insurance, has a fender bender, and then collects under his own policy. The system is based on lowering claims costs by avoiding the determination of liability.

A no-fault system differs from a state plan. A state plan is an “insurer of last resort,” which means if the driver cannot find insurance in the standard market, the state will issue a policy. Commercial insurers participate in the profits and losses of the assigned risk pool.

Medical payments coverage is not liability coverage. Medical payments coverage reimburses, as an accommodation, small medical amounts for injuries involving an insured vehicle. This coverage would include incidents such as fingers pinched by a door as well as the result of an accident.

Although the various types of auto liability insurance can be confusing, the simple reason it exists is to protect your assets when you are liable in an accident.

Learn the Insurance Laws for Your State

Learn the Insurance Laws for Your State.Should you believe that “insurance is insurance wherever I live,” think again.While the primary components usually apply to insurance in general, individual states pass their own laws and publish specific regulations. Assume nothing. Learn about your state’s insurance laws and retain an experienced, licensed agent to advise you.

Whether you need auto, home or business insurance, become familiar with your state regulations to ensure that you purchase the proper coverage. For example, most U.S. states require a specified minimum of liability coverage for auto insurance coverage. However, the minimum amount of coverage can vary from state-to-state. Also, the necessity for multiple liability protection, including property damage and uninsured motorist coverage, may also vary.

Once you learn the minimum coverage your state requires, spend some quiet time thinking about the assets you are protecting. For example, if your state requires minimum liability insurance of $25,000 per person, $50,000 per accident and $10,000 property damage, consider this coverage in light of your personal assets. Should you own a home worth $250,000, an $18,000 boat, personal property valued at $30,000, and bank savings, checking and investment accounts with total balances of $75,000, your state’s minimum coverage is not sufficient.

As the cost of vehicle repair and medical treatment skyrockets, most state minimum coverage limits are too low to protect you should a serious accident occur. Understand that people who are injured in auto accidents can successfully sue you for their damages in excess of your liability coverage limits.

You should use a similar approach to your home insurance. If possible, insure your home for “replacement value,” instead of a specific amount only. Should serious damage occur to your home, the cost to make quality repairs often exceeds the amount of the covered loss, typically the pro-rated amount of coverage minus depreciation. With replacement coverage, your insurer should cover the total cost to restore your home to its former condition.

Always shop for the best deal within the parameters of your state laws and the amount of assets you must protect. You can save time using an independent agent with an interactive website. Instead of trekking all over town talking to agents, a multi-carrier insurance agency can give you multiple quotes from major companies that have attractive rates in your state.

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.

Passenger Seat – Does Your Car Insurance Cover?

Insurance cover for passenger SeatWhen you get into a neighbor or a friend’s car, you would not check what his auto insurance policy covers. Unfortunately, if you happen to meet with an accident then, will you be covered? As a passenger of any car, you need to know the kind of coverages required by the driver in order to protect you. Here are two instances where your driver is held responsible for the accident or the other driver is found guilty.

With Your Driver

If your driver is held responsible for causing an accident due to distraction, breaking signal, traffic violation or unexpected collisions with another car, are you as a passenger being covered? It depends and differs from one state to another. With no-fault states, you will be covered under PIP coverage where as with not a no-fault state, your driver needs to carry medical payments coverage. But be aware that unlike PIP, medical payments coverage won’t consider lost wages. It just bares your medical expenses and pays for hospital bills. Medical payment covers both the driver and his passengers. You can sue the driver if he is not able to cover all your medical expenses but as a passenger even you will be held responsible for the accident, if at all you encouraged the driver to break traffic rules or had distracted him while on the drive.

With Another Driver

If another driver is found guilty, then his bodily injury coverage will cover you. This coverage is mandated in most of the states and every driver will carry it up to a certain limit as per Department of Insurance’s minimum requirements. A driver would opt for this coverage as this will act as a savior when he is being sued legally, to fight for claims. If the other driver is not having insurance, then uninsured motorist coverage if opted by your driver will cover you as a passenger. However, uninsured motorist coverage is optional in many states and your driver may not possess it. If you are in a no fault state, then you might be lucky as your driver would be having PIP which will cover you, no matter who is at fault. This covers medical bills, lost wages and even rehabilitation costs.

Required Austin Car Insurance

Austin InsuranceIf you live or work in Austin, Texas, and are looking for car insurance, you may wonder exactly how much coverage you actually need. You know there is a “state minimum,” but you are concerned that it might not be enough.

Only you can decide how much insurance coverage you will need, and that will depend on a number of factors. These factors include:

  • For example, if your car is not yet paid for, the lien holder may require you have full coverage, or if you use your car for business purposes, you employer may require you to have full coverage. If it is paid for, and is an older car, you may be able to get by with just liability.
  • Texas state minimum insurance requires that you have $25,000/$50,000 in bodily injury liability and property damage liability of $25,000. Again, unless you are required by your lien holder or employer to have full coverage, this is all the auto insurance coverage you need to be considered legally covered in Austin, TX.

If you want more coverage, you can choose from several options:

  • These include coverage for injuries caused by an uninsured motorist (coverage amounts are usually $25,000/$50,000), personal injury protection (usually $2,500), and medical payments ($2,000). Remember, these are optional; they are not required coverage requirements.

The best thing to do is to first determine if you are required by any other entity except the State of Texas to have full-coverage insurance. Then, get several quotes on both full coverage and liability alone. This will help you decide how much insurance you need.

FAQs About Online Car Insurance Quotes

About Online Car Insurance QuotesGetting car insurance quotes online is one of the easiest ways of comparing and buying car insurance. No matter where you are, so long as you have an Internet connection with your computer, laptop or smart phone, you can go to an online comparison site and request a free quote. What follows are five frequently asked questions about requesting car insurance quotes and buying insurance online.

  1. Does my car insurance policy have to be in the same name as my car loan? Yes, it does. Lenders require that the person responsible for the loan provide adequate insurance for the vehicle.
  2. I’m learning to drive with a learner’s permit. Do I still need insurance? Yes, you do. All vehicles on the road are required by law to be properly insured, which means that even if you don’t have your driver’s license, your name should still be on the car’s insurance policy.
  3. Do I need underinsured or uninsured motorist coverage? This depends on your state’s minimum coverage requirements and your own comfort level. Underinsured or uninsured motorist coverage can be invaluable if you’re involved in an accident with a driver who isn’t insured.
  4. Can I transfer my policy when I buy a new car? Yes, all insurance carriers will be happy to transfer your policy to your new car, though you’ll probably pay higher rates for a newer car.
  5. Are online quotes legally binding? No, they aren’t. If you like a quote, you can take the next step in buying car insurance, which is to fill out and sign the actual paperwork.


Facts About Uninsured Motorist Coverage

Facts to KnowIn a perfect world, you wouldn’t need uninsured motorist coverage. But as everyone knows, the world we live in is far from perfect—and there are some people on the road that either don’t have insurance at all, or carry insufficient car insurance coverage to reimburse you for their poor judgment when your paths unfortunately collide. This is the reason why most insurance companies will strongly suggest that you get uninsured motorist coverage.

Is uninsured motorist coverage required in all states?
The majority of states don’t require you to have coverage that’ll protect you in the event you’re hit by someone without insurance, or without enough insurance to pay for the damages they’ve inflicted on you. But this doesn’t mean that it’s not a smart idea to have it.

Won’t my medical insurance cover me for medical bills?
The fast and easy answer is: yes. But by taking a closer look at what you might face, it isn’t exactly a great comfort. The bottom line is, if you have health insurance, are injured in a car accident, and you wind up racking up thousands of dollars (or more) in medical bills, you’ll be covered. However there are a couple of things it won’t pay for.

  • Lost wages. Unless you’re lucky enough to be employed by someone that offers an excellent short- or long-term disability package, you could be out of luck if your medical injuries leave you unable to work while you recover. If you’re self-employed, having uninsured motorist coverage could be the very thing that keeps you afloat.
  • Pain and suffering. Your health insurance only covers your medical bills. If you’re hit by someone that doesn’t have an insurance policy or doesn’t have adequate insurance, the only other way to get compensation for your pain and suffering is to sue them in court—and odds are you won’t have much luck there, especially if that person’s lack of insurance coverage is a result of their inability to pay for it. Having uninsured motorist coverage covers you for pain and suffering in this event.