When the Government sets a minimum coverage, it could tell us two things.
1 - How safe our roads are. If the minimum coverage increases, then we can assume that the government thinks the roads are less safe.
2 - It tells us how much cover we need to realy be covered.
Drivers in the state of Alabama are now expected by law to have a minimum of $20,000 for physical injury for an individual, $40,000 to cover all involved in the accident and $10,000 for property damaged.
That's quite a tidy amount to be covered for though some states have higher minimums that these. These amounts are high, what do I do?
You need to find an insurer that would give you this coverage at the best rates. Get quick auto insurance quotes from quotes comparison sites by filling out the online form. You would of course be asked to give some details. Be sure to provide correct information as this would help you get the right information.
You may also want to find out what discounts are available with your insurer and other insurers. if you qualify or can qualify for a number of discounts, then you would have succeeded in further reducing your rates.
That the state of Alabama has set these minimums does not mean that you have to stick with these for yourself. You could decide that you need more coverage either for yourself or for any member of your family say for example your teenage children. Whatever the amount of coverage you need, get it at a lower rate by getting and comparing quick auto insurance quotes.
Get covered at a lower rate and stay covered at a lower rate.
Author: Chimerenka Odimba
Online Guide To Car Insurance, Insurance Companies and Hydrogen Fuel Cells.
Thursday, November 5, 2009
When the Government sets a minimum coverage, it could tell us two things.
Sunday, December 28, 2008
Optional Auto Insurance Coverages
Collision coverage pays for physical damage to your auto as the result of your car colliding with an object, such as a tree or another vehicle. This insurance coverage is based on the value of your car and can be costly.
Car insurance policies only require the company to cover your financial losses, not to replace your car. In the case of an accident involving an older vehicle, the cost of repairing it can quickly exceed the value of the auto and your insurance carrier will pay you what the car was worth rather than fix it. In severe cases, the value of the vehicle may be less than premiums paid for the insurance coverage. Therefore, if your car is worth less than $2,000, there is little reason for you to purchase collision coverage, because you are likely to pay more money in premiums than you would ever receive as a result of your claim. This coverage may not pay the full replacement cost of the car or may not satisfy the balance of your auto loan.
Comprehensive coverage pays for damage to your vehicle from almost all other causes besides a car accident, including fire, severe weather, vandalism, flood and theft. Comprehensive insurance coverage also will cover broken glass, such as windshield damage.
Uninsured motorist coverage pays if you incur losses from a driver who does not have auto insurance or a hit-and-run driver. This coverage, when in effect, takes the place of the insurance that the other driver should have had but did not. The coverage comes at an automatic $250 deductible for property damage, regardless of the deductible you may have on your other insurance coverage.
Uninsured motorist coverage will have policy limits. It does not protect the other driver. Your insurance company may sue the other driver for any money the company pays to you because of the other driver’s negligence. You must have made a police report about the car accident in order to make a claim under an uninsured motorist policy.
Under-insured motorist coverage protects you if you are involved in a car accident that is not your fault and the other driver does not have enough insurance coverage to cover your loss. This coverage does not pay for damage to your car.
Towing and labor coverage pays the cost of towing your vehicle to the repair shop subject to the limit of your policy. Premiums for this insurance coverage are very inexpensive. However, if you are a member of an auto club, you probably already have this service.
Rental reimbursement coverage usually pays the cost to rent a vehicle after an accident, subject to the policy's terms. The premium will vary from insurer to insurer.
Thursday, December 18, 2008
Tips: Car Rental Insurance
Ask your insurance agent or car insurance company if there are any situations in which your existing insurance policy would not cover a rental vehicle.
If your current insurance policy doesn’t offer coverage for a rental car, see if an insurance rider can be added for a small fee.
Ask your credit card company if it provides rental car coverage and, if so, what the limits are. Many credit cards include some level of collision and theft protection. In most cases, these benefits are secondary to your personal car insurance or the car rental company’s insurance, meaning the credit card company will only pay claims after other insurance coverage has been exhausted.
If you lack personal car insurance and your credit card does not provide benefits, then it might be wise to purchase the liability insurance and collision damage waiver at the car rental counter.
Keep in mind that if it is a longer-term rental, there might be limitations on the coverage your existing car insurance policy provides. Check with your auto insurance company or agent for details.
When traveling on business, a personal car policy will generally not apply, so check with your employer for guidance.
Saturday, December 6, 2008
Types of Auto Insurance Coverage
There are many different types of auto insurance coverages available to meet your car insurance needs. Some are required and some are optional. Here are brief descriptions of the available coverages:
This covers bodily injury and damage to property that you cause to others while using your vehicle.
Personal injury protection
This covers a limited amount of medical and hospital costs, income continuation, funeral expenses, and loss of services. Coverage limits are defined in the policy.
This covers medical and funeral expenses (not all companies offer this coverage).
Uninsured/underinsured motorist bodily injury
This covers injuries an uninsured or underinsured driver causes to an insured person.
Uninsured/underinsured motorist property damage
This covers property damage an uninsured or underinsured driver causes to your insured car.
This covers damage to your car that is caused by a collision.
Comprehensive coverage (other than collision)
This covers damage to your car - except by collision. For example, this covers your vehicle if a tree falls on it or someone vandalizes it.
Emergency road service
This covers towing when your car breaks down.
Car rental expense
If you have a claim that is covered under your car insurance policy, this coverage pays to rent a car. Be sure to check your policy for any limitations.
Death, dismemberment and loss of sight
This pays for death and certain injuries to people named in your policy due to a car accident.
In the event your vehicle is a total loss, this pays the difference between the current market value of your car and the amount you still owe the lender.
Custom equipment coverage
This covers direct and accidental loss to custom furnishings or equipment.
Many companies also offer other endorsements (additional coverage). Ask your auto insurance agent or broker about:
- Trailer/camper body coverage
- Snowmobile coverage
- Limited Mexico coverage
- Joint ownership coverage
- Auto loan/lease coverage
Thursday, November 27, 2008
UIM - Underinsured Motorist Bodily Injury Coverage
Underinsured motorist bodily injury coverage is available in some states, where it is often mandatory. It is available in Washington as well and as an endorsed Umbrella coverage.
This type of car insurance coverage pays for your medical expenses, lost wages, and other damages when you or your passengers are injured in a car accident caused by a driver who has insufficient car insurance coverage.
This kind of auto insurance coverage typically pays the difference between the coverage limit you select and the other driver's bodily injury coverage limit. The amount covered by underinsured motorist bodily injury is capped at the limit you choose when you buy your car insurance policy.
Tuesday, November 18, 2008
Teenager Car Insurance
Why do I need a Teenager Car Insurance?
The first thing you should know is that you must complete driver education to be eligible for a probationary license.
To drive legally you also must comply with a law called “Financial Responsibility”. This law requires each driver to demonstrate an ability to pay for injuries to other people or damages to other people’s property if the driver causes an accident.
Most drivers comply with the financial responsibility law by purchasing car insurance. Types of coverage under auto insurance are described below:
• Liability insurance pays claims if you hurt someone else or damage another’s property.
• Uninsured motorists coverage pays claims for your injuries and damage to your vehicle if a driver without insurance hits you.
• Collision coverage (if you buy it) pays you if your own vehicle is damaged.
• Medical expense coverage (if you buy it) pays medical expenses for you and your passengers.
If you don’t have teenager car insurance, you could end up spending a lot more than the insurance would have cost.
Anytime you are stopped by a police officer for a traffic violation or other reason, the officer will ask you for financial responsibility proof.
When you buy auto insurance, the company will send you a card as proof that you are insured. Keep the card in your vehicle so you can show it to a police officer when requested.
If you cannot prove financial responsibility your license will be suspended and your vehicle will be impounded. It will cost you a very large sum of money to regain your teenager driving privileges.
Friday, November 14, 2008
A motorcycle owner and driver is required to carry the same minimum amounts of bodily injury protection, property damage and personal injury protection as any other vehicle. But motorcycles insurance companies often suggest different policies for motorcycle owners:
When inquiring about an insurance policy, an agent may give you a quote based on the minimum personal injury protection coverage (PIP) limit of $15,000, but with a $15,000 deductible. That means, unless you deliberately choose otherwise and pay an additional premium, you will essentially have no PIP coverage, as the coverage limit of $15,000 will be reduced to zero by the deductible. Consider other options which come at a higher premium but with lower deductibles.
A motorcycle insurance policy may provide only limited benefits. For example, a lower premium policy may provide medical and lost wage benefits for only those accidents which occur (a) on a highway and (b) when there is actual physical contact with another vehicle. To receive coverage for a greater range of potential accidents, you will likely have to pay higher insurance premiums. Ask your agent about the difference between restricted personal injury protection coverage and unrestricted PIP coverage.