Car Insurance Damage Claims

In this article I will discuss how to apply claims case of an accident insurance on your vehicle.When you are involved in a car accident and the other driver is at fault, you may choose to go through your own insurance company to have your vehicle repaired or the negligent driver’s insurance company. So what’s the difference? If you make a car accident claim with your own insurance company, you will likely be charged a deductible. If you have rental car coverage on your policy, you will have access to a rental car while your car is in the shop, up to a daily or weekly limit set out in your policy. When the claim is settled, your insurer will subrogate against the responsible party’s insurance company and get the money back. (See Subrogation: What It Is and How It Works) This may or may not include your deductible. If it does, you will eventually be reimbursed. If it doesn’t, you’ll be out the amount of your deductible (typically, $200-$500).

If, instead, you go through the other driver’s insurance, as long as liability is clear, they will pay for your car repairs and a rental car and you will not be charged a deductible. Either way, an adjuster will likely question you about the accident and then arrange for photos to be taken of your vehicle.

What if liability is unclear?

If you are partially at fault for the accident or it’s not clear who was at fault, it’s best to go through your own insurance company and then let the two insurance companies duke it out in subrogation. Your insurance company may get some of their money back that they paid out to repair your car, and you may get a percentage of your deductible back if the companies agree on how fault should be apportioned.

Where it will make more of a difference to you is with regard to your injuries (if you were injured) in the accident. If you were partially at fault, you will only collect a percentage of your damages, including your pain and suffering damages (compensation for the physical and mental distress suffered as a result of an injury). If it’s not clear who was responsible, it may have to be decided in court or by an arbitrator. If you were injured, and liability is not clear, even if the insurance companies decide on a percentage with regard to the property damage, you should hire a personal injury lawyer who will advocate for your position and get you a larger percentage of your damages for your injury.

How about if your car is a total loss?

If your car was a total loss (it would cost more to repair than the value of the vehicle), and you are making a property damage claim for it with the other driver’s insurance, don’t be surprised if you wind up having to negotiate with them regarding the value of your vehicle. (See What Your Options Are When Your Car is Totaled.)

What if you also have an injury?

If you are injured, when you talk to the other insurance company about property damage, be careful what information you give them. The adjuster may try to get you to state that you have no personal injury claim or try to have you minimize your claim. Talk to a personal injury lawyer so you avoid saying or signing the wrong thing and hurt your chances of making an injury claim down the road.

Fault vs. No-Fault state

The relationship between fault and who ultimately pays for damages and injuries determines the outcome in car insurance claims and car accident cases across most states. There are some states, however, that operate under no-fault laws. Essentially, under no-fault laws, it doesn’t matter who was at fault. Each person’s own insurance company pays for his or her expenses, depending on that state’s specific laws and rules. (See Fault and No-Fault Car Accidents: Who Pays the Bills? for information about the laws in particular states.)

No-fault does not usually apply to property damage. Even in a no-fault state, you may either go through your own insurance or the other party’s insurance if the other party is at fault. Only Michigan requires a PPI policy—Property Protection Insurance—which pays for damage to your vehicle no matter who was at fault. It is similar to collision, but you will pay no deductible.

Remember: Although the adjuster will likely take photos of your damaged vehicle, you should take your own pictures if you can in case there are any questions later on about the damage. 

Life Insuarnce

Lots of people who still do not understand the importance of lifeinsurance. So it was just an agency that just using their money only.Many frequently asked questions in general. The first question you should ask yourself about life insurance is whether or not you really need it. The purpose of life insurance is to provide a source of income, in case of your death, for your spouse, children, dependents, or other beneficiaries. It can also serve other estate planning purposes, such as giving money to charity when you die, paying for estate taxes, paying for funeral and burial costs, or providing for a buy-out of a business interest.

Do I Need Life Insurance?

Whether or not you need to buy life insurance depends on whether anyone is relying on your income. If you have a spouse, child, parent, or some other individual who depends on your income, you probably need life insurance.  

(You might also need life insurance for estate planning or if you need to make arrangements for your business after you are gone.) Typically, however, if you are single with no dependents, and you don’t own your own business, you probably don’t need life insurance.

Types of Life Insurance

If you determine that you do need life insurance, how do you know what kind of policy is right for you? See our article on Life Insurance: What Types are Available for a discussion on the different kinds of policies one can buy. In general, there are two categories of life insurance:

• Term, whereby you pay for coverage for a specified amount of time, and if you die during that time the insurer pays your survivors the death benefit specified; 
• Cash value — whole life or universal life (or variable life, or universal variable life) —, which, in addition to paying a death benefit, also provides you with some other redeemable value during your lifetime.

Using a Broker

If you know little about buying life insurance, it’s best to use a broker who deals with several companies and who can educate you about the different options available, how the cash values accumulate, and what the policy will cost you over different periods of time. The premium is based on your current age, but may increase over time.

You may also wish to consider purchasing different policies from different companies, particularly if the protection you want exceeds $500,000. Each state has a life insurance guaranty corporation, required by state law, whose purpose is to protect insureds in the event an insurer is unable to pay a claim. There are, however, limits to this protection. These limits are typically $300,000 to $500,000 per insured individual. Policies that exceed that amount are not covered.

Here are some questions to ask of your broker or agent:

• How do cash values accumulate? (An early, rapid build-up is generally preferable).
• How has the policy’s cash value performed in the past? You can get this information from a publication called Best Review, Life and Health. Determine how the policy performed in comparison with the company’s projection and with other insurers. 
• If there are any special features in the policy, do they add value for you, or are they just bells and whistles that you’re paying for but don’t need? 
• What is the company’s rating with Best, Standard & Poor’s, and Moody’s? You can find these publications in public libraries or online. The rankings should be in the top three to ensure that a company has financial stability.

Note that everyone’s situation is different and your needs will not be the same as your neighbor’s even if you have similar lifestyles and family units. To choose the right policy, it is important to give your broker some important pieces of your financial information to help her understand your financial status and your current and future family needs.

Top 7 Cheap Auto Insurance “Tricks”

If you want to save a few bucks on your auto insurance, there are some specific auto insurance tricks you can do. Many folks pay way too much for their auto insurance, not realizing that there are usually a whole host of different discounts that they could take advantage of.

Of course, the biggest cheap auto insurance “trick” is to simply use the Internet to shop around and compare auto insurance rates online from competing insurance companies. Simply enter your zip code in on this page to get started right now!

Here are some of the top tricks for cheap car insurance when it comes time to renew your policy:

#1 Multi-Car Discounts

One of the best tricks to lower auto insurance is with a multi-car discount. In many cases, simply adding that second car in your household can save you as much as half on the second policy. If you have a second vehicle in your family, check into having them both insured at the same place. Fortunately, this isn’t the only trick to lower car insurance!

#2 Anti-Theft Devices

Some auto insurance companies will offer you a discount for having specific kinds of theft deterrent devices like“The Club” installed in your car. Depending on the companies in your area and the laws in your state, this can often wind up saving you hundreds of dollars a year, making the theft device pay for itself.

#3 Longer Terms

Some insurance companies will charge you extra if your contract is paid monthly or quarterly. Look into a yearly term as one way to save some money on your premiums. The best cheap insurance may offer some significant discounts this way.

#4 Electronic or Automatic Payments

Many auto insurance companies will give you a discount on your premiums just for signing up to have your premium payments automatically removed from your checking account or billed to your credit card on your renewal date. This makes your bill-paying day easier, and saves you money at the same time!

#5 Lower Your Coverage

This isn’t always the best way to lower your auto insurance premiums, but it’s definitely an option. You can lower things like liability, collision or medical coverage. Another car insurance trick, of course, is to raise your deductible. The key here is to make sure that you meet the requirements set forth by your bank if you have an auto loan on the vehicle.

#6 Multiple Line Discounts

What is the auto insurance trick that most people miss out on? In many cases, choosing the same company for your homeowners insurance as you do for your auto insurance, for example, can save you significantly on both policies.

In fact you don’t even have to stop at just purchasing home insurance and auto insurance from the same company.

Consider getting things like life insurance, renters insurance,medical insurance and even travel insurance from the same company that you get your auto insurance from to save some cash.

Of course, it may still end up being much cheaper to buy different types of insurance from different companies if the company that you have auto insurance through doesn’t have cheap rates for other type of insurance so be sure to shop around.

#7 Increase Your Credit Score

In most states, it’s perfectly legal for your auto insurance company to base your premium rates, in part, onyour credit score. In some cases, raising your credit score will actually help to lower your premiums.

State Farm Insurance

The Beginnings

State Farm insurance began in 1922, the invention of a man named George J. Mecherle. Mecherle thought that he could come up with a better insurance company than the rest, offering better coverage and great rates. So he did. Something about Mecherle's vision was right - more than eighty years later, State Farm Insurance is still going strong.

"In just over 80 years, State Farm Insurance Companies® has grown from a small farm mutual auto insurer to one of the world's largest financial institutions. But despite State Farm's growth, Mecherle's original philosophy of insurance coverage at a fair price coupled with fair claim settlement has remained."
State Farm web site, May 2006

State Farm, Today

With 25 operations centers in 13 zones, these days State Farm employs 79,200 people, including 16,700 plus agents. State Farm actively services 71.6 million insurance policies in the United States and Canada. Many awards have been received by State Farm for their equal opportunity employing methods, and for the number of jobs the company has created. State Farm strives to give back to the community, participating in many programs to further education and safety, including awarding grants and scholarships.

The Future of State Farm

"Our vision for the future is to be the customer's first and best choice in the products and services we provide. We will continue to be the leader in the insurance industry and we will become a leader in the financial services arena. Our customers' needs will determine our path. Our values will guide us."
- State Farm web site, May 2006

What State Farm Offers

State Farm can take care of all your insurance needs. They offer most types of insurance coverage. All the usual suspects of auto, home, life, renter's, and supplemental medical insurance are available through State Farm. Other insurance offerings include condo, long-term care, and Medicare supplement. The State Farm web site is very user-friendly and easy to use. Using the web site, consumers can obtain a quote on any type of policy named above, or find an agent, both within minutes. Answering a few quick questions will lead you to a free online quote, and a search feature makes finding an agent simple work.

You can also reach State Farm agents through online insurance quote web sites. This offers you the ability to compare rates from State Farm and from other independent agents or companies. Inquire with the site in question about the companies that will be providing a quote.

"State Farm's mission is to help people manage the risks of everyday life, recover from the unexpected, and realize their dreams."
- State Farm web site, May 2006

Other Services

Not only does State Farm provide you with quality insurance, but the web site is a wealth of tools and information. A helpful learning center exists online for any who would like to learn more about retirement planning, college planning, savings strategies, prevention and safety, or life stages such as having a baby, marriage, or buying a home. There's even a "kid's stuff" section. Consumers can learn about reasons to have car insurance and what insurance policies do for you, and what they can mean in your life.

Trust

State Farm is truly one of the oldest names in insurance, and theirs is a name you can trust. If State Farm did not provide excellent customer service and satisfaction, there's no way there would still be going strong. Often, it's much cheaper to buy all your insurance plans through one carrier than through several different companies. State Farm can provide for all your insurance needs, without making you spend a fortune. Isn't it better to use a company you know you can depend on?

Robert co-founded Insurance4USA.com, an insurance quote shopping service, in 1999. He has been a licensed insurance agent in New York State since 1990.

The Basics of Car Insurance

If you operate a motor vehicle, it's very important for you to understand the basics of car insurance. Driving a car is an important part of daily life for many people. No one likes to think about being in an automobile accident, but it's a fact that vehicle collisions occur quite frequently. Making sure that you are properly insured is an important part of being a responsible driver.


Understanding Insurance Requirements


If you finance the purchase of your car, your lender is going to require you to carry a collision and comprehensive insurance policy. This type of coverage provides protection that will defray the costs of repairing your vehicle in the event it is involved in an accident or other covered event.


Individuals who own their cars outright, you are not obligated to carry this type of coverage. However, it's important to realize that even a minor fender bender can result in very expensive vehicle damage. If your car is damaged in an accident that is your fault and you do not have collision coverage, you will have to pay for the entire cost of repairs on your own.




If you live in a state that has a mandatory insurance law, you are legally obligated to carry liability insurance. This type of insurance doesn't have anything to do with providing repairs to your own vehicle. Instead, it protects the interests of others whose property might be damaged through accidents that are your fault.




Making Sure You Are Fully Covered


When selecting car insurance, the best option is to choose a policy that provides you with a combination of liability, collision, and comprehensive coverage. When you have these types of coverage in place, you'll be protected against legal claims from individuals who experience loss related to accidents that might be your fault. You'll also be able to rely on your insurance company to cover the bulk of the expenses associated with repairing your car if it is damaged as a result of a situation covered under the terms of your policy.




Read the Fine Print


Before making a final decision about the best car insurance policy for your needs, make sure you read and understand the fine print of the agreement. What one company describes as full coverage might be very different from a policy that another provider defines with the same terminology.


Pay close attention to the deductible amounts associated with each type of claim, so that you know exactly how much out of pocket expense you will be expected to cover if you have to file a claim. It's also important to make sure you understand the limits of liability, so that you are aware of exactly how much protection you really have.


Additionally, it's important to pay close attention to the exclusions detailed in the fine print of your car insurance policy. For example, if you live an area where hurricanes are likely to occur, you probably don't want to select a car insurance policy that has an exclusion for wind damage in the comprehensive coverage.




Select a Reputable Insurance Provider


While choosing a policy that meets your needs is very important, it's also necessary to make sure you choose a reputable insurance company to handle your automobile coverage needs. Make sure the provider has the appropriate licenses necessary to operate in your state, and verify that the organization is in good standing with your state's insurance commission.

Car insurance doesn't have to be a hassle!

Vehicle insurance (or Auto insurance, car insurance, motor insurance) is insurance consumers can purchase for cars, trucks, and other vehicles. Its primary use is to provide protection against losses incurred as a result of traffic accidents. An insurance company may declare a vehicle totally destroyed ('totaled' or 'a write-off') if it appears replacement would be cheaper than repair.

Always remember these key terms: 
-auto insurance quotes 
-cheap auto insurance 
-auto accident attorney

An Automobile Coverage

Cars and other transportation equipment used in transporting supplies or products or visiting customers is not covered by the Business Owner’s Policy. A separate policy for automobile insurance will protect you from accidents that may occur while you’re on business. Likewise, A BOP doesn’t include workers compensation, health or disability insurance.