Insuranceoncars

Why This Lawyer Says You Should Buy Car Insurance From An Independent Broker

I don’t sell car insurance, but as a lawyer practicing in the field of personal injury I frequently see people suffer because they have the wrong insurance coverage. Often, this happens because they purchased directly from an insurance company instead of an independent broker.

Many of my clients who have been seriously hurt in a car accident were struck by someone who had no insurance or only the minimum liability insurance coverage, which is 25,000 in New York and much less in many other states. Unfortunately, many of my clients were sold insurance policies with liability limits of 100,000 or 300,000, but were not sold matching uninsured and underinsured coverage.

Just this week, yet another new client had this problem. My client was a pedestrian crossing the street when she was struck by a car which fled the scene. The driver was caught shortly after leaving the accident, but the owner of the car only has the New York State minimum liability insurance of 25,000 and my client has serious injuries consisting of many broken bones including a fractured arm, leg and skull.

My client owns a car with liability insurance limits of 300,000, but she purchased the insurance from GEICO whose salesperson didn’t sell her underinsured coverage. GEICO does not use independent insurance brokers, but sells insurance directly to consumers through in-house sales agents.

For a small fee, my client could have purchased underinsured coverage of 300,000 which would have allowed her to recover 300,000 for her injuries instead of 25,000. Ironically, she did not need the 300,000 liability coverage to protect her assets. However, since you cannot buy underinsured coverage higher than your liability coverage, I would have advised her to purchase 300,000 liability coverage for the sole purpose of being able to purchase 300,000 underinsured coverage.

I have had many clients in this situation who lost their jobs because of serious injuries and incurred substantial debt. If they had matching underinsured coverage, the additional money available to pay their claim would would be a big help to pay their bills and get their life back together.

Underinsured motorist coverage will pay you money from your own automobile insurance policy if you have been hurt in a car accident by someone who was negligent for causing your injury and who had less liability insurance coverage than you did. Uninsured motorist coverage will pay you when the other car did not have any insurance coverage or the identity of the other car is unknown.

Underinsured and uninsured coverage is inexpensive and usually available in limits that match your liability insurance coverage. It is not available in amounts greater than your liability insurance coverage.

Underinsured and uninsured coverage is so important that a couple of states now require coverage limits matching your liability insurance limits, unless you decline the coverage in writing. Several years ago, I suggested to several New York State senators that they enact a similar law in New York.

I have also seen many clients who were not sold the maximum medical payments insurance, which costs me only 2.01 per month on my car insurance policy. This is particularly important for people who do not have a good health insurance policy. It is also beneficial for passengers who do not have health insurance.

Why should you buy car insurance through an independent insurance broker? The courts have defined the reason. There have been several “malpractice” lawsuits against insurance companies for failure to offer underinsured and uninsured motorists coverage limits matching the liability limits. However, when the insurance company sells directly to consumers, these cases have gone in favor of the insurance companies. The courts found that when a consumer buys insurance directly from an insurance company, rather than an insurance broker, the consumer is only buying insurance and is not paying for advice.

When you buy auto insurance from an independent insurance broker who represents several different insurance companies, you get the advantage of an insurance professional who can evaluate your needs and advise you accordingly. Additionally, only an independent insurance broker can provide you with a choice of insurance companies and premiums, so you get the best coverage at the lowest price.

Whether you buy your car insurance directly from an insurance company or through an independent insurance broker, always make sure that you purchase matching uninsured and underinsured motorist coverage and the maximum medical payment benefits.

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Car Insurance can be simplified once you begin to understand the declarations page. The declarations page is issued every time your car policy renews. The information on your renewal declarations page will give you all you need to know about how your policy is rated. The actual policy is very complicated because it is written in legal language. The declarations page is a synopsis of your protection and is divided into sections.

Section I Liability This section indicates the bodily injury and property damage liability limits. This section of coverage protects you in the event that you are found liable in an automobile accident. Most car insurance policies have split limits. 10030050 is a common split limit. The first two limits are the bodily injury limits. The 100,000 refers to the amount per person bodily injury liability limit and 300,000 is the amount per accident limit. The third limit is the property damage liability limit of 50,000.

Tort Option Some states have a tort option. Full tort gives you an expanded right to sue for pain and suffering. Limited Tort limits that right and also reduces your overall premium.

Section II Physical Damage – This section is all about the physical damage to your automobiles. It is divided into two basic benefits. Collision insurance covers damage to your vehicle in an automobile accident. Comprehensive insurance covers your vehicle for theft, hitting an animal, glass coverage, fire, and several other miscellaneous occurrences.

Section III First Part Benefits This section applies to the first party insured and all resident relatives. This can vary from state to state. Medical expense, income loss, and life insurance are examples of first party benefits.

Cost Savings Your greatest risk for financial loss is when you are liable in a car accident and so it is not wise to carry low limits for liability. Higher deductibles for collision and comprehensive are an excellent way to reduce costs. Make sure that your home policy is with the same company in order to qualify for the multiple policy discounts. The limited tort option can save you up to 20%. The tort discount is only available in some states.

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Like many people buying car insurance, you shop around and buy online. Youve found a really good, cost-efficient deal. So when it comes to the final checkout, do you choose to tick Yes or No in that Legal Expenses Cover box? It will add a little more to the total, and its not an absolute requirement, so you may be tempted to leave it out. Not least because its definitely not the most well-known part of insurance! It is, however, something we think you really should consider adding if its not in the policy as standard. And heres an example of why:

Earlier in the year Jake, one of our freelance writers, was involved in a car accident. His Golf Mark I is his pride and joy, and hes spent many happy weekends working on it. So naturally, he wanted total insurance coverage for every eventuality even legal expenses.

This certainly proved to be the right decision after the accident. The car was hit from the rear, so some of the vehicle damage could be fixed. The insurance company worked fast to deal with the claim. Unfortunately, Jake also suffered a broken wrist and some whiplash. If he hadnt taken legal expenses cover, the bill for a solicitor to pursue his compensation claim would have been solely his responsibility. Fortunately, since he had the cover, Jake was able to get his compensation quickly. Working as a freelance writer, Jake doesnt have the safety net of employer sick pay. Lost hours mean lost money. Jake was out of work for a month and a months wages. With legal expenses cover, however, Jake was able to claim for loss of earnings and will receive compensation for them any day now.

The total cost of this peace of mind and earnings security? An extra 2 a month on his premium, surely a worthwhile investment for anyones money!

Fully comprehensive car insurance ensures that your vehicle is well taken care of, but how about the driver? Jakes accident was not his fault, but he had to spend a month off work. Without legal expenses cover, the cost of getting compensation would have fallen to him. With it, he was as well protected as his beloved car, and didnt have to worry about being able to afford to make a claim.

Take another example of a typical accident: you are unharmed, but your car has to wait in the repair shop for two weeks while parts come in. Without replacement car hire as part of your insurance deal, you will have to rely on public transport not the reason you bought your own vehicle! With legal expense cover, you can use a hire car and know that your trouble and inconvenience will be compensated.

All you need to do when you claim on your legal expenses policy is to provide the accident details in the same way you normally would all the paperwork will be taken care of for you. Its possible that you may need to speak to your solicitor, or appear in the stand in the event of the case going to court, but you wont ever have to pay any legal fees.

And the cost is low, sometimes even free. Admiral include it as standard. Most insurers do make a charge, but it averages around 20 a year for example, More Than charge 17.85, and Budget add an extra 24. Consider the legal battles that have resulted from accident claims in the past especially those where serious injuries and claims were involved. Compensation and costs can run into millions. No-one can doubt that in cases like these, legal expenses cover is a worthwhile addition to any policy.

So next time you buy car insurance, make sure your policy includes legal expenses cover. Take it as an extra if its not part of the standard package. Youll barely notice the extra cost, but youll certainly be aware of the benefits if you ever need it.

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If you are unlucky enough to have an accident in the UK, you will need to know some of the basics ins-and-outs of how to make a claim on your UK car insurance.

Personal Injury

The first thing you should do following a car accident is to check and see if anyone in your car or any of the other cars has been injured. If they have, you should immediately call for medical assistance (ambulance). Once you have done this, keep in mind that you may need to include a medical report as part of the accident claim.

Call the police

Depending on the seriousness of the accident, you may know need to call the police.

24-Hour assistance

By law you should have a copy of your car insurance certificate with you in your car at all times. Included in this will be a 24-hour hotline contact number that you can call if you happen to be involved in an accident. You need to ring this number and ask them what the procedures are you should take. Remember, in the UK you can have one of several different classes of car insurance (for example, third party or fully comprehensive), so the steps you will need to take will vary depending on this and the procedures put in place by your specific car insurance policy provider.

While on the phone with your car insurance company, remember to ask them to send you an accident report form. The accident report form should be fairly self-explanatory, but if you have any problems completing this, then it is a good ideal that you call your insurer and clear up any misunderstandings before you submit this form.

Collect evidence of the accident

Having called your insurance provider and asked for assistance, it is a good idea to collect some evidence about the accident. This can include taking the names of any eye witnesses andor taking photographs of the accident (mobile phone cameras are useful for this purposes).

Repairs to your car

It is very important that you understand that any costs you incur with respect to your car following an accident are for your own account (i.e. you pay) unless you have agreed these beforehand with your insurance company. As such, it is not a good idea following an accident to just take your car off to a garage and have the repairs done as you may well find your car insurance company will not agree to reimburse you. Far more sensible is to phone the car insurance company first and ask them if there is any specific garage in your area where you need to take the car for repairs.

Keep receipts for all expenses

Even if you think that it is unlikely youll be reimbursed for the cost, if you have an accident and are going to make a claim with your car insurance company then it is vital that you keep a receipt of all the expenses incurred. Keep in mind that if you do not have a record of the expense, it is highly unlikely that your car insurance company is going to reimburse you.

Tags: Accident Claim, Accident Report Form, Ambulance, Car Accident, Car Insurance Company, Car Insurance Policy, Contact Number, Eye Witnesses, Ins And Outs, Insurance Certificate, Insurance Personal, Insurance Provider, Insurer, Medical Assistance, Medical Report, Misunderstandings, Mobile Phone, Personal Injury, Seriousness, Uk Car Insurance