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The Insurance Institute for Highway Safety's 2007 Top Car Safety Picks
The results are in on The Insurance Institute for Highway Safety's Top Car Safety Picks for 2007 - and let's just say that the criteria to win this prestigious automobile award was tougher than ever before. That's because this year's winners had to offer electronic stability control as an option, in addition to passing the Institute's standard car safety criteria. This new addition was based on the Institute's research indicating that electronic stability control (ESC) significantly reduces crash risk by helping drivers maintain control of their vehicles during emergency maneuvers.
Continue reading "The Insurance Institute for Highway Safety's 2007 Top Car Safety Picks" »
How do I know if I am being charged the right premium?
The beginning of your policy describes the coverages included in your policy and the charge for each one. If you need more explanation than that, ask your agent or write to your insurance company for an explanation.
In buying or leasing a new car, How can I be confident I will be able to insure it?
Call your insurance agent and ask. Give your agent all the information and get a quote on the premium. If it looks like there will be a problem getting affordable insurance, you will be happy you found out before you made the purchase.
Am I covered if I use my car in a car pool?
Yes, if it is a normal car pool where drivers take turns and are reimbursed for their expenses by the other drivers - but not if it is a profit-making service. You may want to increase your liability coverage, however, because of the extra passengers.
Is my personal auto policy good if I drive to Canada or Mexico?
Most U.S. policies cover you if you drive in Canada, but you must remember to have evidence of insurance with you. Before driving in Mexico, you should check with your insurance agent about getting coverage for Mexico. Mexican traffic laws are so significantly different from those in the U.S. and Canada (some accidents may come under criminal statutes) that Mexican coverage is required.
You probably are. Most policies have provisions that make your insurance comply with the insurance laws of the states you visit.
If I lend my car to a friend, Is he or she covered by my car insurance policy?
Yes. Even if you did not explicitly give permission each time, as long as the friend had reason to believe that you would have allowed the loan.
Will my car insurance policy pay for a rental car for me if my car is stolen?
Yes. Your comprehensive coverage under your car insurance policy will normally pay for a stolen rental car after 48 hours.
GAP insurance provides coverage in the event the car is totaled. It pays for the gap between the amount due under the lease and the actual cash value of the car at the time of the accident. That way, you are protected if the insurance payout is less than what you still owe on the lease.
What kind of car insurance do I need for a leased car?
The insurance requirements are basically the same as for a financed car. In addition, you might want to consider getting GAP insurance for your own protection.
Any time your son or daughter is driving someone else's car, they are covered under the car insurance policy of the person whose car they are driving.
My son has left for college. Do I still have to include him on my policy?
If you are still supporting your son in college, you should continue to maintain insurance (auto, health, and life) for him. If your son will not have a car at school, his insurance can be discontinued for that time period. If he has declared his legal independence and is supporting himself, he should pay for his own insurance.
This is something you should decide with your former spouse. The one with the greater financial resources would be the most likely choice to add your teenage son to the car insurance policy.
If someone steals your car and wrecks it or injures someone, they are responsible for the damages - not you and not your insurance company.
Yes. However, if you eventually become a permanent resident of that state, you should get a driver's license, registration and insurance from your new state.
When I buy an additional car, Is it automatically covered by my car insurance policy?
No. You should notify the insurance company as soon as possible. It is usually advisable to talk to your agent and get an estimate of the price of the new coverage before finalizing the purchase of the car. The price of the insurance could be a factor choosing any new vehicle.
Can I get liability insurance if I don't have a car?
Possibly. Check with your insurance company about the availability of an umbrella policy. Umbrella policies provide an extension to the liability coverage under a homeowner's or auto policy. In addition to providing extended liability coverage, umbrella policies also add additional types of coverage such as libel.
If the vehicle is a van or pickup, you may be covered under your car insurance policy. If it is a truck, you will need additional coverage, which you can purchase from the rental company.
What happens if I am driving someone else's car and become involved in an accident?
You are covered by the car owner's insurance while driving his or her car. So the car owner should contact his or her insurance company and file a claim.
Yes. If you are renting a car on vacation, your personal car insurance policy will cover you.
Yes. In general, your policy covers you or other family members and friends who drive your car. Your son may have a problem with the law for driving without a license, but he should be covered.
Who pays for the rental car while my car is in the body shop?
When your car has been damaged in an accident, your comprehensive coverage will normally pay for a rental car after 48 hours. Check your policy, however, because some insurance companies require that you elect this coverage and pay an extra premium.
If the car is getting routine maintenance not related to insured damage, you will have to pay for the rental car yourself.
I do not own a car, But occasionally rent one for my vacation. Do I need to purchase cdw coverage?
You probably do not have car insurance since you do not have a car. Even so, you might have alternatives to purchasing CDW coverage. For instance, if you are going on a business trip, company insurance could be in effect. And if you charge the rental on a credit card that provides automatic insurance coverage for car rental, save yourself the expense.
In most cases you can save money by declining the CDW coverage. But before you act you should make sure that you have adequate coverage. Your own auto policy may cover you adequately -- check your policy or ask your agent.
If you are traveling on business, your employer may have insurance which makes CDW coverage unnecessary -- ask your employer. Many credit cards provide this coverage when you use them to charge the rental -- read your credit card agreement.
If you only rent cars infrequently or are not sure if you have other coverage, you may find that it is preferable to pay the extra premium for the peace of mind.
Does my car insurance policy pay for damage to a rental car?
If you are renting a car on vacation, your personal car insurance policy will usually cover you. If you are traveling on business, you need to check with your insurance agent. When issuing personal policies, many companies have restrictions on business-related rental coverage.
Does rental reimbursement provide coverage if I take my car to a shop for mechanical repairs?
No. Rental reimbursement is for cars that are being repaired as a result of accidents or other insured damages (storm damage, etc.).
What does rental reimbursement insurance provide?
Rental reimbursement insurance pays a small amount (typically $10 to $15 per day) toward renting a car while your car is being repaired as a result of an accident.
Will my personal car insurance policy provide coverage if I use my vehicle for business purposes?
Business use is just one of the factors that affect your insurance premium. If you have properly reported to your agent how you use your car and the number of miles you drive, your policy should properly reflect your business use and you should be adequately covered. Of course, business use may cause your premium to increase.
Does collision and comprehensive cover mechanical breakdown or normal wear and tear?
No. Collision covers damage to your car resulting from an accident. Comprehensive covers damage to your car from a variety of causes, including theft, storm damage, and vandalism.
Yes. If you finance or lease a vehicle, the bank or leasing company will expect you to have enough comprehensive and collision insurance coverage to protect their interests. If you did not have such insurance and the vehicle was severely damaged or stolen, the bank or leasing company could look to you for the value of the remaining financing of the car. Since the car has been destroyed or stolen, you might, understandably, feel reluctant to pay for a vehicle you can no longer use. For these reasons, the insurance company will get secure coverages for you if you do not - and expect you to pay the premiums.
Will my auto liability policy cover the driving of an exchange student?
Your auto insurance policy normally covers you, your spouse, other relatives who live in your household, and others who have permission to drive your car. An exchange student living in your house, to whom you have given your permission to drive your car, would normally be covered. However, you should notify your insurance agent that you have an additional driver and confirm that the student will be covered.
How is the deductible for comprehensive or collision coverage applied?
You must pay the deductible amount before receiving money from the insurance company. In other words, the insurance company will deduct the deductible amount from any settlement. This means that if you have a $1,000 loss and your deductible amount is $400, the insurance company will pay you the amount in excess of the deductible, which is $600.
Under a verbal threshold, there is no specified dollar amount that determines the cases to be litigated. Rather, the threshold for suing -- instead of accepting a no fault settlement -- is described in words. For example, an accident that results in a permanent handicap might qualify for litigation.
What is a dollar threshold for no fault?
A dollar threshold for no fault coverage lets the dollar amount determine whether cases are litigated or not. Claims that fall below the threshold are quickly disposed of through the no fault mechanism. Claims that exceed the stipulated amount can be litigated.
May I sue for damages caused in a car accident in a no-fault state?
You may sue if the car accident damages exceed a threshold, which varies from state to state among no-fault states. The threshold is expressed as either a dollar amount or a verbal description of the type of accident where suits are allowed.
What is no fault car insurance?
The theory behind no fault car coverage is that most claims can be settled without litigation and without determining who is at fault. According to the no fault theory, this would eliminate major costs and speed settlement. Under no fault, your insurance company pays you for small claims. Litigation takes place only for the small percentage of cases that involve large claims. In addition, there are no awards for "pain and suffering." Several states have adopted some form of no fault insurance, but the details vary widely from state to state. In practice, some states have no fault plans that allow litigation for even relatively small claims, making them very similar to conventional insurance.
If I already have health insurance, Do I need to carry medical payments insurance on my auto policy?
If you are not in a no-fault state, you are probably not required to have medical payments insurance. Medical payments insurance pays medical expenses that result from an auto accident, regardless of who is at fault. It covers people riding in your car. It also covers you and your family if you are hit by a car while you are walking, or if you are injured while riding in someone else's car (after the limits of the driver's insurance are reached). Medical payments insurance will also pay for funeral expenses in the event of a death.
No-fault states have a form of medical expense coverage called Personal Injury Protection (PIP). In addition to medical bills, PIP covers lost wages, certain services (such as child care) that the covered individual is unable to perform, and some funeral expenses.
Some no-fault states allow you to make your health insurance your primary medical coverage, reducing your premiums for PIP significantly.
If you have adequate insurance for life, health and disability, you should consider saving money by not taking medical payments insurance (if your state allows) or minimizing medical payments insurance/PIP coverage.
Yes. It pays for losses resulting from a driver's negligence, whether you are in a vehicle or not. If a car strikes you, the driver's bodily injury liability insurance would pay.
Does my bodily injury coverage cover me while I am a passenger in someone else's car?
No. Your bodily injury liability coverage pays for losses resulting from death or injury in an accident that is your fault. For it to be your fault, you must be driving.
Does bodily injury damage coverage apply even if I drive someone else's automobile?
No. Bodily injury liability insurance covers damage resulting from an accident involving any of your covered autos, for which you are responsible. Members of your family and others with permission to drive your car are also covered. Likewise, if you are driving someone else's car, their liability policy would normally provide the coverage.
Can I add insurance coverage for a motorcycle to my auto policy?
Yes. Many companies offer an endorsement for "miscellaneous" vehicles in an existing auto insurance contract. In addition to motorcycles, those vehicles can be mopeds, motor homes and dune buggies.
My car is old, And not worth much do I need collision coverage?
If you have an older car that is not being financed, you can probably save money on your monthly premium by dropping collision coverage from your car insurance policy. Your agent can tell you how much. The agent can also tell you approximately how much that same coverage would pay if your car was totaled. For an old car, you may find that collision coverage would pay only a nominal amount in the event of a major accident, while eliminating it would mean significant savings.
No. Collision insurance pays for damage to your car resulting from an auto accident. It does not matter who was at fault. If the other driver was at fault, your company may try to recover the amount they paid for your damages from the other driver or his insurance company.
What is the difference between uninsured and underinsured motorist coverages?
Uninsured motorist coverage will usually reimburse you and anyone in your vehicle for any bodily injury and medical expense or death from an auto accident caused by:
1. a driver with no insurance
2. a hit-and-run driver
3. a driver of a stolen car
It does not cover property damage.
Underinsured coverage provides bodily injury coverage when the negligent driver has some insurance, but it is insufficient to cover your bills. Underinsured motorist coverage pays the balance -- up to the limit on your policy.
Split-limit coverage uses three numbers to specify the limits for:
1. bodily injury liability for each person
2. bodily injury liability for a single accident (regardless of how many people are involved)
3. property damage liability
The single-limit coverage gives one number that is the maximum coverage for bodily injury and property damage altogether - regardless of the number of people involved or amount of property damage.
What are the basic types of auto insurance coverage?
The basic types of auto insurance coverages are:
1. bodily injury liability, which provides coverage for bodily injury claims from the people you might injure in an accident
2. property damage liability, which covers any property damages to third parties -- such as another person's car you damage -- which you cause or are responsible for
3. medical payments to the policy owner and other passengers in the policy owner's car
4. uninsured and underinsured motorist coverage, which protects you when the negligent driver has no insurance or insufficient insurance (in most states, this covers only bodily injury losses -- though some states also include property damage losses)
5. physical damage covers damage to your car
a. collision, which covers losses to your car when you are involved in a collision
b. comprehensive, which covers most non-collision physical damage to your car (if your car is damaged in a storm, or a windshield breaks, for example).
The Insurance Institute for Highway Safety's 2007 Top Car Safety Picks
The results are in on The Insurance Institute for Highway Safety's Top Car Safety Picks for 2007 - and let's just say that the criteria to win this prestigious automobile award was tougher than ever before. That's because this year's winners had to offer electronic stability control as an option, in addition to passing the Institute's standard car safety criteria. This new addition was based on the Institute's research indicating that electronic stability control (ESC) significantly reduces crash risk by helping drivers maintain control of their vehicles during emergency maneuvers.
Continue reading "The Insurance Institute for Highway Safety's 2007 Top Car Safety Picks" »
How do I know if I am being charged the right premium?
The beginning of your policy describes the coverages included in your policy and the charge for each one. If you need more explanation than that, ask your agent or write to your insurance company for an explanation.