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Tuesday, July 7, 2009
What Are Car Insurance Split Liability Limits?
We all know that car insurance is essential in today's society. Not only is liability insurance required by most states, but it is simply common sense to protect yourself in case you cause an automobile accident.
However, many drivers assume that their standard policy is enough to cover them in most situations. When you consider that a serious accident can result in significant medical cost (not to mention lost wages and pain and suffering), you realize that a typical liability insurance policy that covers, say, $100,000 in damages is not enough.
Not only that, but you need to be aware of any restrictions and limitations that are part of your insurance coverage. In particular, some policies have what are called split liability limits. In other words, the amount the insurance is willing to pay will differ depending on the circumstances of the accident.
Usually, you choose a limit for any injuries you cause to a single person. You then have another liability limit for any injuries you cause to multiple people in a single accident. Lastly, your policy will have a limit for the damage you cause to property in a single accident.
As you can tell, this can be pretty confusing when you have different amounts for different situations. More importantly, you may believe that you are adequately covered, but depending on the specific situation you may not have enough insurance to pay for damages.
For example, let's say your insurance policy has a total liability limit of $300,000. This is the maximum amount the insurance company will pay for any damage you cause in an accident, including property damage and physical harm to the driver of the vehicle. However, this particular policy has a limit of $50,000 per person.
Let's say you cause an accident in which two passengers are seriously injured. Let's also assume that their medical bills come to $100,000 each. The total cost is $200,000, so you might think that you are covered because your total limit is $300,000. However, remember that the limit per person is only $50,000, so the insurance company will only pay a total of $100,000. It would be your responsibility to pay the rest.
As you can see, split liability limits have their dangers, and you should be careful to completely understand your policy in case you ever need it. Odds are you will be involved in some sort of accident at some point during your driving career. You need to be prepared in case the worst happens, even though you should take precautions to avoid accidents. You may want to avoid split liability policies altogether.
However, many drivers assume that their standard policy is enough to cover them in most situations. When you consider that a serious accident can result in significant medical cost (not to mention lost wages and pain and suffering), you realize that a typical liability insurance policy that covers, say, $100,000 in damages is not enough.
Not only that, but you need to be aware of any restrictions and limitations that are part of your insurance coverage. In particular, some policies have what are called split liability limits. In other words, the amount the insurance is willing to pay will differ depending on the circumstances of the accident.
Usually, you choose a limit for any injuries you cause to a single person. You then have another liability limit for any injuries you cause to multiple people in a single accident. Lastly, your policy will have a limit for the damage you cause to property in a single accident.
As you can tell, this can be pretty confusing when you have different amounts for different situations. More importantly, you may believe that you are adequately covered, but depending on the specific situation you may not have enough insurance to pay for damages.
For example, let's say your insurance policy has a total liability limit of $300,000. This is the maximum amount the insurance company will pay for any damage you cause in an accident, including property damage and physical harm to the driver of the vehicle. However, this particular policy has a limit of $50,000 per person.
Let's say you cause an accident in which two passengers are seriously injured. Let's also assume that their medical bills come to $100,000 each. The total cost is $200,000, so you might think that you are covered because your total limit is $300,000. However, remember that the limit per person is only $50,000, so the insurance company will only pay a total of $100,000. It would be your responsibility to pay the rest.
As you can see, split liability limits have their dangers, and you should be careful to completely understand your policy in case you ever need it. Odds are you will be involved in some sort of accident at some point during your driving career. You need to be prepared in case the worst happens, even though you should take precautions to avoid accidents. You may want to avoid split liability policies altogether.
Do You Have Enough Liability Insurance?
Most of us prefer not to think of the danger involved when driving an automobile. After all, driving a car is the most common form of transportation in the United States. Most of us have to drive considerable distances each day to work, school, and everyday errands.
Although driving is so commonplace in our society today, that doesn't eliminate the danger involved. Traveling at high speeds on a highway can and often does lead to serious accidents. While it's best to avoid these situations if at all possible, it's important to be protected financially in case you cause an accident.
The insurance necessary for this type of scenario is called liability insurance. This is usually the minimum insurance required by your state, because it covers any injuries or damage to a vehicle that you might cause. (There are other types of insurance that also cover you if you are injured by an uninsured driver or if your car is stolen, but we won't get into those for now.)
You're probably already familiar with this type of insurance, but do you have enough?
A typical liability insurance policy covers you for about $100,000. Believe it or not, this amount is quite low and may not cover you in the event of a serious accident. Let's imagine that you cause an accident, and the other driver is seriously injured.
When you think of the incredible cost of healthcare nowadays, it is not difficult to imagine that this driver might be stuck in the hospital for a couple of weeks and accumulate a huge pile of medical bills. And of course, you would be responsible for the pile.
Believe it or not, much of this depends on who you actually hit. If a driver has to undergo some sort of physical therapy and is unable to work for some time, you may have to make up for his lost wages. The higher the wages, the more you're responsible for. Then there is pain and suffering which is a real consideration in a serious accident.
It's best to be prepared for this kind of event, even though we hope it never happens. You should always practice safe driving in order to prevent accidents from happening. But a wise person would be prepared just in case. When you consider that you can increase your liability insurance for just a slightly higher annual fee, why take the risk of not having enough insurance?
Although driving is so commonplace in our society today, that doesn't eliminate the danger involved. Traveling at high speeds on a highway can and often does lead to serious accidents. While it's best to avoid these situations if at all possible, it's important to be protected financially in case you cause an accident.
The insurance necessary for this type of scenario is called liability insurance. This is usually the minimum insurance required by your state, because it covers any injuries or damage to a vehicle that you might cause. (There are other types of insurance that also cover you if you are injured by an uninsured driver or if your car is stolen, but we won't get into those for now.)
You're probably already familiar with this type of insurance, but do you have enough?
A typical liability insurance policy covers you for about $100,000. Believe it or not, this amount is quite low and may not cover you in the event of a serious accident. Let's imagine that you cause an accident, and the other driver is seriously injured.
When you think of the incredible cost of healthcare nowadays, it is not difficult to imagine that this driver might be stuck in the hospital for a couple of weeks and accumulate a huge pile of medical bills. And of course, you would be responsible for the pile.
Believe it or not, much of this depends on who you actually hit. If a driver has to undergo some sort of physical therapy and is unable to work for some time, you may have to make up for his lost wages. The higher the wages, the more you're responsible for. Then there is pain and suffering which is a real consideration in a serious accident.
It's best to be prepared for this kind of event, even though we hope it never happens. You should always practice safe driving in order to prevent accidents from happening. But a wise person would be prepared just in case. When you consider that you can increase your liability insurance for just a slightly higher annual fee, why take the risk of not having enough insurance?
Uninsured Motorists Are Not the Only Ones Who Can Hurt You
As an intelligent and sophisticated adult, you probably already realize that not everyone is as responsible as you. Even though the law may require you to do something, that doesn't guarantee that everyone will do it.
This could refer to a lot of things, but in this case I'm talking specifically about auto insurance. You see, most of us know that we are supposed to have car insurance, at least the minimum liability insurance, according to state law. However, many people simply ignore this because they don't care or they don't think they can afford it.
You may have even been involved in an accident with such a person, and since then you resolved to carry adequate insurance coverage to protect yourself in these circumstances.
If so, good for you. You took a big step towards protecting yourself from future financial hardships. I hate to burst your bubble, though, as there's something else you might have to consider. Uninsured motorists aren't the only ones you should be afraid of. Whom I talking about? I'm talking about underinsured motorists.
You see, a driver could be obeying the law by carrying the minimum liability insurance, but this may not be enough in a serious accident. If that driver crashes into you and causes you, let's say, $300,000 in damage, he may not have enough to pay for it. (In case you think that number was exaggerated, let me ask you one question - are you serious? Think about the possible medical bills, lost wages, pain and suffering... well, you get the picture.)
Anyway, a typical liability insurance might have $100,000 in coverage, which is obviously a lot less than the $300,000 we mentioned above. Guess who has to pay for that? You'll be left with the difference in cost for medical bills and your good old-fashioned pain and suffering. Suing the driver, by the way, is a real chore and may not get you anything if the driver doesn't have a lot of money.
So what's the solution? Well, you can go a long way towards protecting yourself by purchasing some additional coverage. Ask your insurance company about coverage for accidents involving underinsured drivers. Protect yourself and advance in case the worst happens.
This could refer to a lot of things, but in this case I'm talking specifically about auto insurance. You see, most of us know that we are supposed to have car insurance, at least the minimum liability insurance, according to state law. However, many people simply ignore this because they don't care or they don't think they can afford it.
You may have even been involved in an accident with such a person, and since then you resolved to carry adequate insurance coverage to protect yourself in these circumstances.
If so, good for you. You took a big step towards protecting yourself from future financial hardships. I hate to burst your bubble, though, as there's something else you might have to consider. Uninsured motorists aren't the only ones you should be afraid of. Whom I talking about? I'm talking about underinsured motorists.
You see, a driver could be obeying the law by carrying the minimum liability insurance, but this may not be enough in a serious accident. If that driver crashes into you and causes you, let's say, $300,000 in damage, he may not have enough to pay for it. (In case you think that number was exaggerated, let me ask you one question - are you serious? Think about the possible medical bills, lost wages, pain and suffering... well, you get the picture.)
Anyway, a typical liability insurance might have $100,000 in coverage, which is obviously a lot less than the $300,000 we mentioned above. Guess who has to pay for that? You'll be left with the difference in cost for medical bills and your good old-fashioned pain and suffering. Suing the driver, by the way, is a real chore and may not get you anything if the driver doesn't have a lot of money.
So what's the solution? Well, you can go a long way towards protecting yourself by purchasing some additional coverage. Ask your insurance company about coverage for accidents involving underinsured drivers. Protect yourself and advance in case the worst happens.
Getting Hit by an Under-Insured Driver
I remember my grandpa always used to say that life isn't fair. When it comes to buying car insurance, he was certainly right.
You see, most states require that drivers carry a certain amount of liability insurance in case they cause an accident. So if you're hit by another vehicle and it isn't your fault, you would expect the other driver to be properly covered by insurance. That insurance would cover any damage to your car and to yourself, and hopefully that would be the end of it.
Of course, we all know that life isn't so simple. There is always the possibility, and these days it seems like a very strong possibility, that the other driver will not be insured. If this is the case, you will have to pay for your own damages out of your own pocket. Sure, the other driver can get into trouble for not having insurance.
But that doesn't help you one bit when it comes to paying for your injuries. Likewise, you might think that it is appropriate to sue in this instance. Well, that is certainly your right, but what if the other driver doesn't have any assets? Pursuing a lawsuit can be a long and expensive process, and in the end you may not get anything.
The bottom line is that you should protect yourself by having adequate insurance coverage. Specifically, you should have uninsured motorist coverage which protects you in this type of situation we mentioned above.
No, it isn't fair. You shouldn't have to pay extra just to protect yourself in case someone else runs into you and doesn't have insurance to pay for it. It's not fair, but grandpa already told us that before. All we can do is protect ourselves just in case by purchasing coverage beyond our liability insurance.
You see, most states require that drivers carry a certain amount of liability insurance in case they cause an accident. So if you're hit by another vehicle and it isn't your fault, you would expect the other driver to be properly covered by insurance. That insurance would cover any damage to your car and to yourself, and hopefully that would be the end of it.
Of course, we all know that life isn't so simple. There is always the possibility, and these days it seems like a very strong possibility, that the other driver will not be insured. If this is the case, you will have to pay for your own damages out of your own pocket. Sure, the other driver can get into trouble for not having insurance.
But that doesn't help you one bit when it comes to paying for your injuries. Likewise, you might think that it is appropriate to sue in this instance. Well, that is certainly your right, but what if the other driver doesn't have any assets? Pursuing a lawsuit can be a long and expensive process, and in the end you may not get anything.
The bottom line is that you should protect yourself by having adequate insurance coverage. Specifically, you should have uninsured motorist coverage which protects you in this type of situation we mentioned above.
No, it isn't fair. You shouldn't have to pay extra just to protect yourself in case someone else runs into you and doesn't have insurance to pay for it. It's not fair, but grandpa already told us that before. All we can do is protect ourselves just in case by purchasing coverage beyond our liability insurance.
Calculating Comprehensive Car Insurance
Owning a car is something that everyone dreams of when they first learn of what one is, and it is important for a person to know as much as they can about them, as it is only a matter of time before they are behind the wheel themselves. This is not to say that we will all be mechanics someday, but basic knowledge is something that should be a requirement when owning a motor vehicle, even more so when it comes to adequate car insurance. There are many different things to be aware of in the world of car insurance, especially when it comes to calculating comprehensive insurance policies.
What is Comprehensive Insurance?
Comprehensive car insurance coverage basically covers your car and others (in certain situations) from damages incurred to you vehicle or theirs. This is not applicable to any accidents, but for instance, a potential policy holder would be protected in the event of car damage due to a flood or theft. This is important because it is best to be covered in every possible angle, whether or not these things are rare, it is still important to be prepared in the event that they do happen.
The Variables
There are a many different factors when it comes to calculating comprehensive coverage in a car insurance policy. The most common variables would be the age of the policy holder, the driving history, the distance that one usually travels by car, as well as the age and model of the vehicle. Obviously, the older or the better driver can expect to have some things in their favor, as there is the direct correlation of that and money. These things are taken into account in the production of a comprehensive coverage policy, which basically sets the rates the person can expect to pay.
The Actuary
There is also the probability of loss to think of, something that is important to insurance companies in comprehensive car insurance policies and others alike. This person, the actuary, is one that determines how likely that something detrimental to the vehicle will happen. This is done by factoring in all of the variables, which affects the premium that the driver will have to pay in the event of loss. Although there are other factors that the actuary determines, these are the most essential variables that they consider when preparing the policy.
The importance of car insurance is something that just about everyone will have to deal with in their lives, and there is extreme importance in one being as well-versed in the way that these policies work as they possibly can. If not, they can expect to pay more than what they are expecting to, and since they can be quite expensive at times, this is something that not many people can afford. When choosing the right insurance, it is always best to compare rates with as many different insurance companies as a person can, as they will generally differ greatly on a company by company basis.
What is Comprehensive Insurance?
Comprehensive car insurance coverage basically covers your car and others (in certain situations) from damages incurred to you vehicle or theirs. This is not applicable to any accidents, but for instance, a potential policy holder would be protected in the event of car damage due to a flood or theft. This is important because it is best to be covered in every possible angle, whether or not these things are rare, it is still important to be prepared in the event that they do happen.
The Variables
There are a many different factors when it comes to calculating comprehensive coverage in a car insurance policy. The most common variables would be the age of the policy holder, the driving history, the distance that one usually travels by car, as well as the age and model of the vehicle. Obviously, the older or the better driver can expect to have some things in their favor, as there is the direct correlation of that and money. These things are taken into account in the production of a comprehensive coverage policy, which basically sets the rates the person can expect to pay.
The Actuary
There is also the probability of loss to think of, something that is important to insurance companies in comprehensive car insurance policies and others alike. This person, the actuary, is one that determines how likely that something detrimental to the vehicle will happen. This is done by factoring in all of the variables, which affects the premium that the driver will have to pay in the event of loss. Although there are other factors that the actuary determines, these are the most essential variables that they consider when preparing the policy.
The importance of car insurance is something that just about everyone will have to deal with in their lives, and there is extreme importance in one being as well-versed in the way that these policies work as they possibly can. If not, they can expect to pay more than what they are expecting to, and since they can be quite expensive at times, this is something that not many people can afford. When choosing the right insurance, it is always best to compare rates with as many different insurance companies as a person can, as they will generally differ greatly on a company by company basis.
Sunday, September 7, 2008
Caravan Tyres Causing Insurance Claims
You may think wear and tear on caravan tyres only occurs when they are being used frequently. However, most damage occurs when the caravan is not in use. For example, caravans that are stood for long periods may cause their tyres to become misshapen with the weight of the 'van, not to mention damage to the rubber caused by exposure to sunlight.
This kind of tyre damage can make the tyres more at risk of punctures and in the worst cases 'blowouts'. Even a slightly deflated tyre can cause the caravan and tow car to become unstable and it is rare for a caravan to survive a 'blow-out'.
Insurance claims relating to burst tyres are not uncommon, but there are precautions you can take to help prevent it happening to you:
* Tyres over 5 years old should be replaced. You should be able to find the manufacture date on the tyre itself
* When the caravan is not in use for long periods, e.g. during the winter months, check tyre pressures regularly to ensure they don't get too under inflated.
* The sidewalls of the tyres should be inspected for any signs of damage such as cracks or damage from impact.
* Should the worst happen, a crash can be avoided if using Tyron wheel-safety-bands which are proven to reduce the risk of an accident should the caravan's tyres become deflated. Although they do not prevent the puncture occurring, they enable the driver to stay in control of the vehicle and find a safe place to change the tyre.
This kind of tyre damage can make the tyres more at risk of punctures and in the worst cases 'blowouts'. Even a slightly deflated tyre can cause the caravan and tow car to become unstable and it is rare for a caravan to survive a 'blow-out'.
Insurance claims relating to burst tyres are not uncommon, but there are precautions you can take to help prevent it happening to you:
* Tyres over 5 years old should be replaced. You should be able to find the manufacture date on the tyre itself
* When the caravan is not in use for long periods, e.g. during the winter months, check tyre pressures regularly to ensure they don't get too under inflated.
* The sidewalls of the tyres should be inspected for any signs of damage such as cracks or damage from impact.
* Should the worst happen, a crash can be avoided if using Tyron wheel-safety-bands which are proven to reduce the risk of an accident should the caravan's tyres become deflated. Although they do not prevent the puncture occurring, they enable the driver to stay in control of the vehicle and find a safe place to change the tyre.
Labels: Caravan Tyres Causing Insurance Claims
The Best Insurance For Your Corvette
Do you have a classic Corvette that your drive very seldom? Are you sure that if your vehicle was totaled or stolen that you would get the full vale of the vehicle? Let's consider the different types of insurance available for your sports car: standard insurance policies and collector's policies.
With a standard insurance policy, you are paid the Actual Cash Value or Retail Value of your vehicle upon total loss or theft. If your car is damaged in an accident, they will pay for you to have it fixed up to the Actual Cash Value amount. If the amount of damage exceeds the Actual Cash Value, they will simply write you a check for the Retail Value and consider your claim settled. The problem with this on collector's cars is that they have such a wide range of values, and you will almost certainly not get the full value you would need to replace your vehicle.
Enter your second option, a collector's policy. These policies are sold by specialty brokers and offer a clause called "Agreed Value". This value is stated in your policy, and is agreed to by the insurance company and you. If your policy states the agreed value is $25,000, then upon theft or total loss you are compensated with a $25,000 check from your insurance company. These collector's policies have certain stipulations, such as the vehicle must be garage kept, driving infrequently (typically less than 5,000 miles per year), driven very infrequently by youthful drivers, and you must have a very good driving record.
Another benefit of the collector's policy is you can choose the repair shop that will fix your damaged car and ensure you receive original parts. Original parts are not as important on a newer car, but for a collector's car they add so much value. Most standard insurance policies do not understand this, and simply use generic parts to repair the vehicle and do so in "their" repair shops.
These specialty brokers sometimes offer a third variation, though. You must be weary of the "Stated Amount" collector's policies. Under these policies, you state the amount of coverage needed for your vehicle. What the insurance company actually covers is the lowest of these three figures: "stated amount", cost to repair (without exceeding "stated amount", or "actual cash value". The last one is where you can lose a large amount of money. The "actual cash value", as stated earlier, is usually what a typical vehicle would cost to replace, and this number is usually much lower than your "stated value".
Total losses and thefts do occur, and you need to ensure you are adequately covered. If you have a newer Corvette, you should be fine utilizing a standard coverage policy, but if you drive a classic, make sure you cover yourself properly. Look into a collector's policy.
Remember, if you own a collectible Corvette, insist on your insurance coverage being for the "Agreed Value", otherwise you may be out a large sum of money, in addition to your vehicle, if you suffer a theft or total loss.
With a standard insurance policy, you are paid the Actual Cash Value or Retail Value of your vehicle upon total loss or theft. If your car is damaged in an accident, they will pay for you to have it fixed up to the Actual Cash Value amount. If the amount of damage exceeds the Actual Cash Value, they will simply write you a check for the Retail Value and consider your claim settled. The problem with this on collector's cars is that they have such a wide range of values, and you will almost certainly not get the full value you would need to replace your vehicle.
Enter your second option, a collector's policy. These policies are sold by specialty brokers and offer a clause called "Agreed Value". This value is stated in your policy, and is agreed to by the insurance company and you. If your policy states the agreed value is $25,000, then upon theft or total loss you are compensated with a $25,000 check from your insurance company. These collector's policies have certain stipulations, such as the vehicle must be garage kept, driving infrequently (typically less than 5,000 miles per year), driven very infrequently by youthful drivers, and you must have a very good driving record.
Another benefit of the collector's policy is you can choose the repair shop that will fix your damaged car and ensure you receive original parts. Original parts are not as important on a newer car, but for a collector's car they add so much value. Most standard insurance policies do not understand this, and simply use generic parts to repair the vehicle and do so in "their" repair shops.
These specialty brokers sometimes offer a third variation, though. You must be weary of the "Stated Amount" collector's policies. Under these policies, you state the amount of coverage needed for your vehicle. What the insurance company actually covers is the lowest of these three figures: "stated amount", cost to repair (without exceeding "stated amount", or "actual cash value". The last one is where you can lose a large amount of money. The "actual cash value", as stated earlier, is usually what a typical vehicle would cost to replace, and this number is usually much lower than your "stated value".
Total losses and thefts do occur, and you need to ensure you are adequately covered. If you have a newer Corvette, you should be fine utilizing a standard coverage policy, but if you drive a classic, make sure you cover yourself properly. Look into a collector's policy.
Remember, if you own a collectible Corvette, insist on your insurance coverage being for the "Agreed Value", otherwise you may be out a large sum of money, in addition to your vehicle, if you suffer a theft or total loss.
Labels: The Best Insurance For Your Corvette
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