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.

Tags: Broken Bones, Car Accident, Car Insurance, Geico, House Sales, Independent Broker, Independent Insurance Brokers, Insurance Company, Insurance Limits, Insurance Policies, Liability Coverage, Liability Insurance Coverage, Liability Limits, Minimum Liability, New York State, Pedestrian, Personal Injury, Salesperson, Sell Car, Sole Purpose

Purchasing Car Insurance Online – Some Things To Know About Online Insurance

The Internet has been a blessing to both the Insurance Industry and consumers who want access to a wide range of providers quickly. The benefits of purchasing your car insurance online are many, here’s a few of them.

For starters, you have an unprecedented ability to compare and contrast between policies online, simply flicking between windows, or in some cases taking advantage of specialty brokers who will send you a comparative cost quote in very short order.

If the sheer convenience weren’t enough, Insurance companies usually offer discounts if you buy your insurance online and save them the hassle of having to deal with you directly. It’s not as if talking to insurance sales people ever made anyone’s day, so you won’t miss the experience, and you’ll save some money.

Insurance companies still offer very good customer service online if you’re stumped, and making a quick call whilst surfing is much easier than waiting several days for them to send you a bunch of paper work that you may or may not understand.

Do make sure however, that your details are processed over a secure server, and that full customer service is available once you have purchased your insurance. Don’t be afraid to ask plenty of questions, and hold out for a provider that offers you a good deal and makes you feel satisfied at the level of assistance you receive.

The Internet is also a good place to check out your intended companies reputation. Others may have had problems, or good things to say about the company. Consumer websites can also offer constructive recommendations to help you on your way, and advise you on ways to keep your premiums down, such as thinking about what sort of car you’re going to buy to stay in a lower bracket, or keeping your record clean.

Buying your car insurance online is a great way to save time and money. As always though, take your time and read those terms and conditions carefully.

Tags: Car Insurance, Constructive Recommendations, Consumer Websites, Consumers, Full Customer Service, Good Customer Service, Hassle, Insurance Companies, Insurance Industry, Insurance Online, Insurance Sales, Money Insurance, Online Insurance, Premiums, Reputation, Secure Server, Sheer Convenience, Starters, Time And Money, Unprecedented Ability

Everyone likes to save money! That fact is not a secret to anyone. When trying to save money on car insurance, a question that should be considered is, What will be the cost to me for saving money? This question is meant to help people realize that there is a difference between price and cost. While Company A may offer slightly lower or even much lower premiums than Company B, Company B may offer some services that you prefer, i.e. a local agent, 24 hour service, online service etc. These services may be worth the extra price to some people, and not for others. Thus, it is shown that services received may out-weigh the price paid.

Another factor to take into consideration is the quality of service you receive from an insurance company. While all auto insurance companies want you to believe that they are as good, or even better than the next company; that is simply not true. There are drastic differences in overall service, claim handling, and personality of individual companies. One company may offer exceptional claims service, but perhaps it is very difficult to actually get in touch with the companys claims department; while another company may have terrible claims service, but their claim department is easy to reach.

One must ask themselves, Is it worth paying lower premiums to receive a lower quality of service, or am I willing to pay a bit more to ensure that my service is exceptional? Dont misunderstand. Just because a company offers lower premiums, does not necessarily mean that companys level of service will be lacking. Great service can come at any price.

The most important item to remember while searching for lower premiums is to do your homework. Talk to your family, friends, and co-workers. Ask them where they are insured, and if they are pleased with their insurance company. Remember, not all insurance companies are created equally, for instance, a company that runs completely over the phone or internet will have different costs than a company that employs fulltime agents. That is because the cost of doing business is different for each of those companies. This brings the question again, What services do I value in my insurance company? Do I want the package Company A offers or that of Company B?

Low rate car insurance is in the eye of the beholder. Simply put, different services are worth different amounts to different people. So find the company with the services you desire and let the games begin.

Tags: Auto Insurance Companies, B Company, Car Insurance, Co Workers, Company B, Family Friends, Friends And Co, Homework, Individual Companies, Insurance, Insurance Company, Personality, Premiums, Quality Of Service, Saving Money

How much insurance should you buy? Any insurance agent worthy of their salt will tell you that you should buy as much as you can afford. While this is a good rule of thumb, it’s about as useful as a stock broker’s tip to buy low and sell high. It might be sound logic but it doesn’t get you any closer to an educated decision. There are a few filters that need consideration in order to make that educated decision. First, what is the state required minimum coverage where you live? Second, what does the minimum cover? Third, what other coverage is available and can you afford it? And fourthly, what are you protecting?

What do the minimums cover?

Now that you know what your state requires, what are you actually covered for once you purchase the minimum? Using the coverage definitions that follow, find the types of coverage required and see what your state says is the accepted minimum.

Coverage Definitions

Bodily Injury Liability
Covers other people’s bodily injuries or death for which you are responsible. It also provides for a legal defense if another party in the accident files a lawsuit against you. Claims for bodily injury may be for such things as medical bills, loss of income or pain and suffering. In the event of a serious accident, you want enough insurance to cover a judgment against you in a lawsuit, without jeopardizing your personal assets. Bodily injury liability covers injury to people, not your vehicle. Therefore, it’s a good idea to have the same level of coverage for all of your cars. Bodily Injury Liability does NOT cover you or other people on your policy. Coverage is limited to the terms and conditions contained in the policy.

Comprehensive Physical Damage Coverage
Covers your vehicle, and sometimes other vehicles you may be driving for losses resulting from incidents other than collision. For example, comprehensive insurance covers damage to your car if it is stolen; or damaged by flood, fire, or animals. Pays to fix your vehicle less the deductible you choose. To keep your premiums low, select as high a deductible as you feel comfortable paying out of pocket. Coverage is limited to the terms and conditions contained in the policy.

Collision Coverage
Covers damage to your car when your car hits, or is hit by, another vehicle, or other object. Pays to fix your vehicle less the deductible you choose. To keep your premiums low, select as large a deductible as you feel comfortable paying out of pocket. For older cars, consider dropping this coverage, since coverage is normally limited to the cash value of your car. Coverage is limited to the terms and conditions contained in the policy.

Medical Payments
Covers medical expenses to you and your passengers injured in an accident. There may also be coverage if as a pedestrian a vehicle injures you. Does NOT matter who is at fault. Coverage is limited to the terms and conditions contained in the policy.

Uninsured Motorist Coverage
Covers bodily injuries to you and your passengers when the other person has no insurance or not enough insurance in a crash that is not your fault. In some states, there is also uninsured motorist coverage for damage to your vehicle. Given the large number of uninsured motorists, this is very important coverage to have, even in states with no-fault insurance. Coverage is limited to the terms and conditions contained in the policy

Personal Injury Protection Coverage
Covers within the specified limits, the medical, hospital and funeral expenses of the insured, others in his vehicles and pedestrians struck by him. The basic coverage for the insured’s own injuries on a first-party basis, without regard to fault. It is only available in certain states.

Property Damage Liability
Covers you if your car damages someone else’s property. Usually it is their car, but it could be a fence, a house or any other property damaged in an accident. It also provides you with legal defense if another party files a lawsuit against you. It is a good idea to purchase enough of this insurance to cover the amount of damage your car might do to another vehicle or object. Coverage is limited to the terms and conditions contained in the policy.

Rental Car Reimbursement
Covers renting a car if your car isn’t drivable or while your car is being repaired because of a covered accident.

What else is available and can you afford it?

Did you come across a coverage and think, “I need that but it isn’t required by state law” when you were reviewing the coverage definitions? Chances are you did. Can your budget afford the additional expense of these protections? Or maybe more to the point; can you afford NOT to have these additional protections? At CarInsurance.com it’s easy to get multiple quotes all with a click of your mouse. And during the quoting process, it’s simple to add or remove coverage to see how additional coverage will affect your budget.

What are you protecting?

What assets need to be protected from being plucked away if you cause injury or damage?
A) Your car itself. If this is a significant asset, or at least the bank you owe money to thinks so, then you will need comprehensive and collision.
B) Your net worth. Do you have an enormous net worth to protect. If so, either get it out of your name and into a trust or buy all the insurance you can. If you have little or nothing to protect, then you can get by with less and still be financially responsible.

However, after you determine how much protection to get, always ask how much more it is for the next level higher. Very often, you can get significantly more coverage for very little cost.

Car insurance isn’t flashy. There is no “wow” factor and the opposite gender isn’t going to be impressed by the size of your policy. But not having enough can be the difference between financial stability and financial ruin. For what its worth, CarInsurance.com finds financial stability incredibly appealing.

Tags: Accident Insurance, Bodily Injuries, Bodily Injury Liability, Car Insurance, Comprehensive Insurance, Definitions, Flood, Insurance Agent, Judgment Against, Losses, Medical Bills, Minimum Coverage, Other Vehicles, Pain And Suffering, Personal Assets, Physical Damage Coverage, Policy Coverage, Rule Of Thumb, Sound Logic, Stock Broker

Auto insurance in general, which includes car insurance is an insurance consumers can purchase for cars, trucks, and other vehicles. Its mainly meant to provide protection against losses incurred as a result of car accidents and also thefts of vehicle. It also includes losses arising due to natural calamities. To have your car insured is mandatory by law. When you insure you get a “policy” which is based on a variety of factors including the type of car you drive, as well as what kind of insurance you want, as these policies are actually a package of different types of insurance coverage. They can be classified as:

Liability – This coverage pays for accidental physical injury of the body and damage to others property. Injury damages include medical expenses, pain or suffering and lost wages. Property damage includes damages to the automobile. This coverage also pays for defense and court costs. State laws fix how much liability coverage you must purchase, but you can also get more coverage if you wish.

Collision – This insurance pays for damages to your vehicle caused by collision with another vehicle or object.

Comprehensive – This coverage pays for losses or damages to the insured vehicle that doesn’t occur in an auto accident. The possible types of damages comprehensive insurance covers include loss caused by fire, wind, hail, flood, vandalism or theft.

Medical Coverage – Pays medical expenses regardless of whose fault it was as long as the expenses are caused by an auto accident.

PIP – Personal Injury Protection (PIP) – This coverage pays medical expenses for the insured driver, regardless of whose fault it was, for treatment due to injuries arising in an auto accident.

Uninsured Motorist – Pays for your car’s damages when an auto accident is caused by another driver who doesn’t have liability insurance.

Underinsured Motorist Pays for your car’s damages when an auto accident is caused by someone who has insufficient liability insurance to settle all your claims.

Rental Reimbursement – This type of insurance will pay for a rental car if your rented car is damaged due to an auto accident. Often this coverage has a daily allowance to be paid for at the time of renting a car.

Certain insurance policies club together a number of these types of coverage. Depending on the laws that exist in your state you have to choose the insurance you want for your car. Even though the state may not require extensive insurance, extra coverage may be worth the expense as it is possible that you may be straddled with thousands of pounds because of an auto accident.

Tags: Auto Accident, Car Accidents, Car Insurance, Comprehensive Insurance, Fire Wind, Insurance Consumers, Insurance Coverage, Liability Coverage, Liability Insurance, Medical Coverage, Medical Expenses, Natural Calamities, Other Vehicles, Personal Injury Protection, Pip, Second Wife, State Laws, Types Of Insurance, Uninsured Motorist, Vandalism

Car Insurance. Optional Legal Expense Cover Is Well Worth The Extra.

Peter, our freelance journalists doesn’t take kindly to people driving into his beloved car. No, he doesn’t use his fourteen stone of gym-honed muscle to exact retribution nor is he into road rage. Of course he’s got his car comprehensively insured but he’s also covered another way. He’s got legal insurance. He included in his car insurance as an optional extra. This extra cover allows him to claim for costs and losses excluded covered from normal comprehensive and third party policies. So four months ago when his car was whacked from behind at the traffic lights, the legal profession swung into action! Not for free you understand, after all who’s heard of a solicitor labouring for free? No, but it was free to Peter his insurance company paid all his legal costs.

Whilst the garage appointed by his insurer made a beautiful job repairing his bent MX5, his comprehensive policy didn’t normally cover claims for personal injury or loss of earnings. So the extra 2 a month Peter forked out for legal expense cover, became money well spent. He’s already received compensation for the broken wrist he suffered and negotiations for his loss of earnings are well advanced. One-handed journalists aren’t much use in our office so he took a month off!

Legal expense insurance assists policyholders to claim back losses and compensation where the accident wasn’t their fault. The losses can include the cost of hiring a replacement car whilst yours is in the garage and, for those not comprehensively insured, the costs of having your car repaired. As in Peter’s case, legal expense insurance will also fund claims for personal injury and loss of earnings.

Cover for legal expense is one of those insurances that’s under rated until it’s called on. The insurer will run the claim for you and sends the settlement cheque at the end of the process. All you have to do is record the facts on the legal expense claim form, speak to the solicitor nominated by your insurer, be prepared to answer a few follow-up questions, and sit back. If the case goes to court, they’ll represent you and fight your corner although you may also have to attend.

Most car insurance policies sold on the Internet don’t automatically include legal expense cover it’s normally an optional extra. That’s because price competition on the net is so fierce that the insurers prefer to keep their headline premiums down as low as possible.

You’ll find that the optional cost of legal expense cover does vary from insurer to insurer. For example, More Than comes in at 17.85 per year, Direct Line 19.95, Churchill 21 and Budget 24 per year. Just a few insurance companies such as Admiral, include some legal expense cover for free.

So make sure you don’t forget legal expense cover when you buy car insurance. Complicated claims for compensation can drag on your years especially if severe injury is involved, and final settlements can end up in millions.

Tags: Beloved Car, Car Insurance, Four Months, Freelance Journalists, Insurance Company, Insurances, Insurer, Labouring, Legal Expense Insurance, Legal Insurance, Legal Profession, Loss Of Earnings, Party Policies, Personal Injury, Policyholders, Replacement Car, Retribution, Road Rage, Solicitor, Traffic Lights

Although these days it’s pretty easy to arrange your car insurance online, comparing quotes at the click of a button and paying by credit card for instant cover, one ever present difficulty still remains: the high cost of insurance policies. The fact that having car insurance in place is both a legal requirement and a sensible idea doesn’t detract from the annoyance of having to pay what seems to be an exorbitant sum, and most of us would jump at the chance of reducing the bill.

To do this we need to know what factors insurance companies use when deciding how much our premiums will be.

Perhaps the most important influence on the level of your premium is your own history as a driver. If you’ve a history of having accidents, then naturally you’re a higher risk to the insurer and so they’ll charge you more. Worse, if you’ve been convicted of a motoring offence such as speeding or driving while under the influence, then your insurance will cost you even more – especially if your licence was withdrawn.

On the plus side, a history containing no black marks such as accidents will result in cheaper insurance as you build up a ‘no claims’ discount over the years.

The next most important factor is what kind of car you’re trying to insure. Naturally, more expensive cars will cost more to replace, and so the insurance will cost you more too. This isn’t the whole story though, as other features such as engine size, the availability of cheap spares, and the difficulty of repair will have an influence too. Finally, some models of car are well known for being easier to break into or steal than others – the insurance companies are well aware of this and will adjust their quotes accordingly.

How you use your car will also affect the price you pay for cover. If you rarely drive and have a low annual mileage, then your premiums can be cut as you’re on the road for less time, and therefore have less chance of needing to make a claim. City drivers may also have to pay more compared to those who drive in quieter areas.

Where you keep your car is important too – if you have a secure parking area, preferably one that keeps your vehicle out of sight and under cover, then your risk is lowered, as will be your premiums. Cars that are regularly parked at the roadside are at a higher risk of being stolen or involved in collisions, and so will be more expensive to insure.

One final point to cover is that of how attractive your car is to thieves, and not just in the obvious way of how desirable your vehicle is! An expensive car with a good security system including an alarm and window etching etcetera will be more of a hassle for criminals to profit from, and so is less likely to be stolen than a cheaper car with little or no security. Also, a car featuring plenty of gadgets such as an expensive audio system or satellite navigation will attract greater interest from potential thieves.

So as we can see, even though car insurance is an expensive business, it’s not always as simple as it seems, and by looking at what insurers want in a ‘perfect’ customer, you may be able to drive down your premiums.

Tags: Accidents, Annoyance, Car Insurance, Car Quotes, Cheaper Insurance, City Drivers, Click Of A Button, Exorbitant Sum, Expensive Cars, Insurance, Insurance Companies, Insurance Cost, Insurance Online, Insurance Policies, Insurance Quotes, Insurer, Mileage, Motoring Offence, Online Quotes, Premiums

Affordable Car Insurance What To Do To Keep The Rates Down

Automobile insurance is one of those things in the budget that is always going to be there. There are very few places in America that permit you to drive vehicles without insurance and so it behooves each and every one of us to get a better handle on our own auto insurance coverage. The industry is changing a bit because the competition is strong. There are new and creative auto policies on the market today. The trend that has gained the most momentum is the self-insuring concept. Higher deductibles is the weapon that the customer can use to lower rates significantly. Higher deductibles means that the policyholder has decided to take on more of the risk for the automobiles insured. The day of low collision deductibles is all but gone. Lower deductibles no longer warrant the high premiums. There is too much money to be saved with higher deductibles.

Lowering the Rates for Young Drivers

Young drivers on newer vehicles that have a lien holders interest will raise the auto rate significantly. The collision and comprehensive rates for drivers under 21 years of age are very high. A young driver on an older vehicle without the collision and comprehensive coverage will lower the rate significantly. There are discounts for young drivers who have completed a qualified drivers training course. Some companies have good student discounts on students with a grade point average of 3.0 or better. When the young driver reaches 21 the rates begin to drop for most companies.

Senior Citizen Discounts Most companies have discounts for people age 55 and older who are retired or work less than 20 hours a week. There are mature driving courses that can also give the senior citizen a discount.

Multi-Policy Discount This discount is available when you insure both your auto and home with the same insurance company.

Tort Options Some companies offer discounts for a limited tort option. Tort is your ability to sue for pain and suffering. Limited tort rates in some states reduce the overall premium of the policy up to 30%. Ask your insurance company about the tort options in your state.

Tags: Auto Insurance Coverage, Auto Policies, Auto Rate, Automobile Insurance, Automobiles, Car Insurance, Citizen Discounts, Deductibles, Drivers Training, Grade Point Average, Insurance Company, Insurance Industry, Lien Holders, Momentum, Policyholder, Premiums, Senior Citizen, Student Discounts, Tort, Young Drivers