Vehicle insurance (also known as auto insurance, car insurance, or motor insurance) is insurance purchased for cars, trucks, motorcycles and other road vehicles. Its primary use is to provide financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise there from. The specific terms of vehicle insurance vary with legal regulations in each region.
Thursday, 9 May 2013
benefits of car insurance
Automobile insurance policyholders don't need to worry if they purchase a new vehicle and forget to notify their insurance company right away. Car insurance typically provides 30 days of coverage for newly acquired vehicles.
That and many other less obvious benefits typically are included in auto insurance policies.
Others include benefits ranging from limited reimbursement for transportation if you can't reach your destination because of a crash to paying for windshield repair. These items are included with most car insurance policies.
"Most drivers figure that car insurance pays for auto crash injuries, repair of cars damaged in crashes, and for vehicles that are stolen," said Bernie Schick, a Nationwide Insurance director in charge of product development.
"But car insurance -- especially full coverage -- pays for a wide range of services. The purpose is to try to get the policyholder, and others affected in car crashes, back to normal as soon as possible," Schick added.
Coverage also is extended to others who drive the insured car.
For example, relatives who live with the insured and drive the insured's car, with or without permission, are covered. So are others who have permission to drive the car.
Other benefits of car insurance:
·The deductible for collision coverage is waived when the crash involves two cars insured by the same company.
·Payment for a chipped windshield that's repaired instead of replaced; the deductible may also be waived.
·Payment up to a specified amount for wages lost during court testimony regarding a crash.
·Stereo equipment damaged in a crash may be covered up to a specified amount if the primary control unit is installed in areas specified by the insurance company.
·Payment for travel expenses up to a specified amount when a car is damaged or stolen.
·Insurance companies may have a waiting period before this benefit can be received.
·Coverage for personal effects damaged in a crash such as clothing and luggage, up to a specified amount.
·Bail bond premiums for traffic-related violations.
·Policyholders are advised to read their insurance policies or seek information from company representatives for specific amounts and terms of coverages.
One of the largest problems facing the auto insurance industry is the continued rash of fraudulent or exaggerated claims made by unscrupulous policyholders. Cheap car insurance may become a thing of the past as more and more of these claims are made and insurance companies have to pay out millions not only to try to prevent the fraud from happening, but also to those who are successful in getting a fraudulent claim through. Florida car insurance rates in particular may change after a recent fraud crackdown in the state aimed at cleaning up some of the issues surrounding their no-fault policy.
In Florida, a no-fault insurance policy has been adopted, which means that in an accident, neither driver is declared to be "at fault," no matter the circumstance. This means that suing another driver in court is almost an impossibility, and all costs for each driver–the repairs of the vehicle, medical bills and any other personal damage costs–will be paid by the respective insurance companies, rather than by the insurance company whose insured is deemed at fault. In some respects, this makes for a more streamlined insurance system, but it can also lead to a situation in which clients try to claim fraudulent injuries in conjunction with a doctor who does not act honestly, or in which policyholders choose to stage accidents to claim more damages than actually occur. This fraudulent activity has led to millions of dollars being paid out by Florida insurance companies to those who did not deserve it.
As a result, Florida has made efforts to crack down on these types of accidents and claims, and requires a far higher level of diligence and attention from insurance companies–requiring them to adopt anti-fraud plans or hire fraud investigators. With this crackdown comes the possibility for change in the Florida insurance market, as companies are forced to spend greater amounts of money on defending against fraud rather than simply providing insurance. Florida drivers may see their rates increase across the board, even if they have never made a fraudulent claim, as companies are forced to spend more money both to deal with outstanding claims that are potentially fraudulent and to prosecute those that are responsible. Insurance fraud is pernicious, and it is in the best interests of Florida drivers to ensure that they report any potential abuse of the system immediately so that those committing these crimes can be dealt with and Florida car insurance rates can remain relatively low.
Cheap car insurance is something every Florida driver wants, and while the recent insurance fraud crackdown may limit the amount of overspending done by companies, it may also raise basic insurance rates
Vehicle insurance is an insurance purchased for cars, trucks, motorcycles and other road vehicles. Its primary use is to provide financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise there from. The specific terms of vehicle insurance vary with legal regulations in each region.
Vehicle insurance can cover some or all of the following items:
The insured party (medical payments)
The insured vehicle (physical damage)
Third parties (car and people, property damage and bodily injury)
Third party, fire and theft
In some jurisdictions coverage for injuries to persons riding in the insured vehicle is available without regard to fault in the auto accident (No Fault Auto Insurance)
The cost to rent a vehicle if yours is damaged.
The cost to tow your vehicle to a repair facility.
Two of the most important factors that go into determining the underwriting risk on motorized vehicles are: performance capability and retail cost. The most commonly available providers of auto insurance have underwriting restrictions against vehicles that are either designed to be capable of higher speeds and performance levels
Steps to getting Auto Insurance
When it comes to auto insurance, you want to be adequately covered if you get in an accident, but you don't want to pay more than you have to. Unfortunately many people are doing just that, simply because they don't want to spend time shopping for car insurance. It's not inherently enjoyable, after all, despite how it looks in commercials featuring disgruntled cavemen and joke-cracking spokespeople.
But by doing some comparison shopping, you could save hundreds of dollars a year. When one of our editors used a rate-comparison service, he got basic coverage quotes for his two old cars that ranged from $1,006 to $1,807 — a difference of $801 a year. If you're paying thousands to your current insurance company because you have a couple tickets, an accident or an out-of-date and unfavorable credit rating, shopping your policy against others might be well worth the effort. Look at it this way:
Gather Quotes and Company Information Annual and monthly rates for the different types of coverage. Make sure to keep the coverage limits the same so you can make apples-to-apples comparisons for cost and coverage.
The insurance company's 800 telephone number, so you can get answers to questions you couldn't find online.
The insurance company's payment policy. When is the payment due? What kinds of payment plans are available? What happens if you're late in making a payment
Carry Your Proof After you have secured the auto insurance policy you want, cancel coverage with your existing insurance company. If your state requires you to carry proof of insurance, make sure you put the card in your wallet or the glove compartment of your car.
oDetermine your state's minimum insurance requirements.
oConsider your own financial situation in relation to the required insurance and consider whether you need to increase your limits to protect your assets.
oReview the status of your driving record — do you have any outstanding tickets or points on your driver license?