Automobile insurance rules vary from state to state. It is important to understand automobile insurance rules in your state to make certain that you are prepared if you are involved in an accident. One of the first questions you should ask prospective insurance companies is what their automobile insurance rating is. Insurance companies receive a rating based on their financial status. The purpose of auto insurance is to prevent you from having to pay out a large amount of money if you are in an accident — whether you are at fault or not. If the insurance-company takes your premium but does not have the resources or inclination to pay out your claim, you will be in little better shape than if you had no coverage at all.
Automobile insurance ratings are typically available through your state’s insurance commission, the state agency that oversees insurers. Other ways to determine the rating of a company are by asking the company directly, or asking your agent or broker.
Once you are certain that you are dealing with a financially responsible company, you are ready to buy. It is important to understand the different automobile insurance rules so that you purchase the coverage that best meets your needs. By following the rules in your state you can be certain that you are protected. Automobile insurance protects you in the following ways:
1. Coverage if your car is damaged or stolen.
2. Coverage of your financial obligations if others are injured or their property is damaged due to actions on your part.
3. Coverage of medical expenses for you or others if you are involved in an accident.
Understanding these different types of coverage ensures that you are covered in any instance. Once you have purchased the policy that best meets your needs, it is important to meet your part of the agreement with the issuing company. If you are involved in an accident, it is important that you contact the insurer immediately. Automobile liability insurance reporting rules vary from state to state, but the basic rules are the same. If you are involved in an auto accident, whether you believe that you are at fault or not, there are several things that you should do:
Automobile insurance rules differ from state to state and company to company, but if you understand the various types of coverage available, and follow the guidelines set forth by your company in the event of an accident, you should have no problems with filing or receiving a claim.
Posts Tagged ‘Insurance’
Understanding Automobile Accidents and Insurance
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When determining fault in an accident as well as if and which individual’s automobile insurance will cover the accident, it often comes down to litigation of tort claims, and is considered the framework for a defense settlement.
The system of automobile accident insurance that a state adopts answers the following question: Who pays when an automobile accident occurs? Three systems of insurance for automobile accidents are possible: no fault, at fault, and a combination of no fault and at fault.
A driver’s insurance company compensates an insured individual, whether responsible for the accident or not, for personal economic damages in a no fault system automobile accident; damages can range from funeral or medical expenses or lost wages.
This coverage of personal economic damages is called Personal Injury Protection or PIP. It is imperative that every vehicle driver has automobile insurance with them under this system. The tradeoff for each driver’s insurance company paying for their own insured’s economic damages is each driver is prohibited from suing the other driver for non-economic damages, such as pain and suffering or loss of companionship.
Theoretically, insurance rates or premiums should be lower in no fault states since insurance companies are saving money by not having to initiate lawsuits or defend their insured’s in court. However, no state has adopted a pure no fault system for automobile accidents.
Instead, states have either adopted an at fault system or a combination of no fault and at fault for automobile accidents. When an automobile accident occurs in an at fault state, the driver responsible for the accident – the driver who is at fault – or their insurance company pays for damages.
Although, determining the individual at fault for the accident can be a difficult and complicated decision. And in many accidents both drivers are to blame to some extent. Since each driver pays based on their own proportion of fault, drivers may sue each other to determine these proportions. In an at fault system, each driver retains the right to sue the other driver for damages, economic and non-economic, resulting from an automobile accident.
If a state has adopted a combination system or a modified no fault system for automobile accidents, drivers are compensated by their insurance companies for economic damages up to the policy limits and also have a right to sue the other driver in certain situations. Usually a driver may sue another driver for damages sustained in an automobile accident if the damages exceed a certain dollar amount that each state has set by statute. Some states also allow lawsuits in automobile accidents if a driver’s injuries meet a specified standard of severity, for example, “serious personal injury”.
A state can also choose to change their liability system for automobile accident insurance at any time through the state’s legislature. It is best, when determining insurance system types in a state, to speak with the insurance provider or state insurance board.
Why Traveling Without Insurance May Cost You More
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You are going traveling. You have lots of expenses to cover. You need to pay for your air fare, your accommodation, your food, your travel while away, cultural experiences and the list goes on. You want to save money so you decide not to bother with travel insurance. You are going on the trip of a lifetime so nothing will go wrong. It’s an unnecessary expense so you don’t need it. Wrong. Very wrong. Traveling with out insurance can be the biggest mistake you make when organizing your trip and a very costly one.
What is travel insurance? Well there are two kinds of insurance to look at when traveling.
1. Travel insurance, (sometimes called trip insurance) which covers cancellations, delays, lost baggage and emergencies.
2. Travel medical insurance protects you against any medical expense while traveling.
Ideally, you need a combination of the two when traveling.
Imagine these scenarios:
You are in Darwin, Australia when a cyclone hits the area. The city is devastated by the cyclone and all services shut down. You have to be evacuated and sent home. Your travel insurance will cover you for this. You do have travel insurance don’t you?
Your luggage goes missing in India. You need to buy new clothes and fast. Can you afford it in your budget? Of course you can, you took out traveler’s insurance – didn’t you?
Or what if you go surfing in Hawaii and take a big wipeout? You are so severely injured you need surgery and major medical assistance, and then are airlifted home. But that’s okay – your travel medical insurance covers all that. You have got it, haven’t you?
Travel insurance is there to protect you in case bad things happen on your trip. It is a necessary expense. Overseas medical costs can be astronomical if you are not insured. And if you are injured in a developing country, medical attention may not be as good as at home. If you are insured you can get flown home and attended to at no cost.
Every year the government deals with thousands of cases of travelers being injured, falling ill or dying overseas. This is a distressing situation for all involved, but made even worse when the travelers are not insured, often leaving them with huge bills to pay. Hospitalization in other countries can cost over one thousand dollars a day. Medical evacuations can be in the hundreds of thousands of dollars and if you die in Europe, it can cost over ten thousand dollars to bring your body back home. If you do not have travel insurance you have to cover these costs yourself (or your family will have to find the money).
Travel insurance is a cost you need to budget for. If you don’t take it out, your medical expenses could cost a whole lot more. Insure yourself and travel safe.
This article is brought to you by: Stuart S. Travel – Your Online Travel Guru
www.stuartstravel.com