Sunday, January 31, 2010
Profitability collapsed last year after companies such as Suncorp-Metway and Insurance Australia Group had large payouts for a string of natural disasters, including bushfires and heavy storms.
At the same time, the global financial crisis caused earnings from insurers' investment portfolios to collapse, causing a drain on capital reserves.
Home insurance premiums are under the most pressure to rise, with rates projected to jump by about 9 per cent over the next year, according to the latest JPMorgan Deloitte general insurance industry survey.
House insurance premiums increased 10 per cent last year as insurers sought to reverse years of heavy discounting.
Car insurance premium rises are expected to match last year's 5 per cent increase.
The large number of payouts in recent years, including the more than $1 billion paid out in the wake of the Victorian bushfires, had insurers rethinking the cost of cover, said JPMorgan insurance research analyst Siddharth Parameswaran.
''The rate increases that have been pushed through are largely a reflection of re-estimation of how much these events cost and how frequently they are likely to occur,'' said Mr Parameswaran, one of the co-authors of the report.
Natural disaster payouts since 2007 of nearly $4.3 billion are more than twice the 20-year average.
Mr Parameswaran said the price increases marked ''a real turn'' in the insurance cycle after underwriters were locked in a discounting war for most of the past 10 years.
Elsewhere, compulsory third-party car insurance premiums in NSW are expected to increase by 10 per cent, rounding off the second year of double-digit gains, while Queensland motorists will be hardest hit with prices expected to soar by as much as 15 per cent, mostly due to more generous benefits.
While prices are tipped to run up, gains are likely to be tempered by competition in personal insurance, particularly among internet-based companies.
US company Progressive Direct has recently entered the Australian market, looking to snare a slice of the nation's $9 billion car insurance market with internet-only selling.
In Queensland, CTP is a mandatory part of registration for a vehicle. There is choice of insurer but price is government controlled in a tight band.
These state based third party insurance schemes usually cover only personal injury liability. Comprehensive vehicle insurance is sold separately to cover property damage and cover can be for events such as fire, theft, collision and other property damage.
Progressive Direct Insurance Co.  believes there is an opening in Australia's sophisticated insurance landscape for it to explore the online-service motor insurance segment.
Progressive Direct, a unit of U.S.-based Progressive Corp. , opts not to compete directly with established players in the traditional market but to gain a position among proliferating online businesses, said Simon Lindsay, country manager of Progressive Direct in Australia.
This market segment offers room to evolve in Australia, where a high number consumers enjoy the online experience for personal finance, given the country's high broadband penetration, said Lindsay in an interview.
In Australia, two major players -- Insurance Australia Group Ltd.  and Suncorp Metway Insurance Ltd.  -- have 75% of the market share for motor insurance. Nevertheless, Lindsay said smaller players can pursue "small yet compelling" market segments in the country.
A sound regulatory environment and stable market conditions contributed to Progressive Direct's choice of Australia as the first Asia-Pacific country in which to advance its online motor insurance business, said Lindsay. The market dynamic is suitable for international market exploration and for employing the insurer's Internet-based insurance know-how and online segmentation skills.
Progressive Direct Australia's online technology structure is being built up from scratch in Australia, based on skills acquired from parent company in the United States, said Lindsay. The model is designed to attract a growing alternative online market segment, rather than the general mass segment.
Web site technology is important to deliver quality and customer service. Lindsay said online functionality is a driver to attract customers who have not been offered the experience before.
A recent survey of Google found the proportion of people applying for car insurance online has been on the rise in Australia, with 68% applying online and three-quarters using the Internet at the initial research stage. Currently, Lindsay said the trend is to apply online for car insurance quote rather than buying the product or managing the policy online.
In the next five years, Lindsay said the trend for buying and managing online motor insurance will become more popular. Online claims management is still new in the market, according to Lindsay. The aim is to promote effective and efficient applications of the online platform as "A to Z" functions of motor insurance.
In Australia, Lindsay noted traditional motor insurers remain strong in the market, and this is not going to be changed in the short term. These traditional players launched their own online brands to attract new customer segments.
Progressive Direct's market position is "more independent" with online insurance, said Lindsay. The company recognizes a trend of rising online consumerism, hence its move to explore the segment.
In recent years, Australia's nonlife insurance sector has seen new players such as Australia Post and Virgin Money, an affiliate of U.K.-based conglomerate Virgin and supermarket Coles for the launch of car, home and content insurance
HOW DO YOU GET MONEY FROM AUTO INSURANCE Never what you owe or what it will cost you to replace it. So the answer to the problem is GAP insurance! Small amount to pay for peace of mind that pays you the difference between loan/cost and adjusters appraisals, (which start at the bottom, wholesale)The haggling is what the adjuster is paid to do, not to be fair, but to save the insurance company the most they can, they are not your pals! Wife rear ended, she's ok totalled car retail $20,000, offered $15,500
HOW DO YOU GET MONEY FROM AUTO INSURANCE You should get ACV (actual cash value)
Do your homework before settling with the adjuster. Check newspaper ads, dealers etc., to see what a car like yours, similar condition and like mileage is worth in your area. Have 3 or 4 bona-fide local examples to take with you and show the adjuster.
A new car should not be a problem unless you have over-financed.
Some folks borrow more than the vehicle is worth to pay off an old one and you are what is termed to be "upside-down", meaning you owe more on the vehicle than its worth. If this is your situation and the car is totalled, you will be paid off the value of the vehicle but not what you over-financed.
HOW DO YOU GET MONEY FROM AUTO INSURANCE Having been in this situation in WVa, the insurance people have a standrd which is used. Usually it involves the the NADA book value. The low value - a certain amount if the the engine milege is 100,000 or more = settlement. My experiance was not good as I did not receive enough to pay the vehicle loan principle, even though the loan was for less that the purchase price.
HOW DO YOU GET MONEY FROM AUTO INSURANCE Ok. So I have just been told by the Claims Agent that my car it totaled. In my case to repair the damage would cost $3500. The value of my vehicle was only $4200. If it cost more than 70% of the total car value to fix, it is considered totaled.
So now I have two things to do. 1)Check the value of my car for myself. 2) Locate what it would cost to replace my exact car in the market today.
For the first item I will use these three websites and take the best results to use as a basis for determining what I will expect to get paid from my Insurance Agency. www.kbb.com, www.edmunds.com, and www.nada.com. Be sure to include your milage and all your vehicle features before caculating a price with these sites. Also, always use the RETAIL price that they generate because that is what you will have to pay to replace your car in the open market.
The second item takes a little more leg work. But thankfully for the internet this process is now a lot easier. Use the website www.autotrader.com. This will allow you to locate your specific car to see what people are actually selling it for. Most often is will be selling for more money than what your first step revealed.
Note: If you are having trouble locating a vehicle within 200 miles of where you live, then try and find a similar replacement vehicle you are interested and use that as your leverage.
I have been told that by law, your insurance company is only require to pay out the wholesale price of the vehicle. This is usually at least half of what the blue book value is. So don't get your insurance company mad at you, but also stick to your guns when trying to get more money to replace or fix your vehicle!
I recently had my car totalled. We got rear-ended. Based on the condition of your car, you can negotiate a little to get a fair price for the vehicle. Honestly, the insurance company has already a price in mind. They will stick to it once they have decided the price. In my case, I got almost what I was targeting for a price. You should closely look at the features of your car and ensure that the Insurance company is comparing an apples to apples comparison. The Insurance Company looks at Actual Cash Value. This is a lot of legwork required on your end. All in all, I was able to settle with the Insurance Company on the Totalled price within a month for the property damage settlement portion. Also, it is easier to negotiate with your own Insurance Company as compared to the other party's insurance company. You can negotiate with your insurance company and firm up the price. Then, the other insurance company can provide you the deductible.
I have to say that my experience of dealing with insurance company to settle my total loss case was very unpleasant. The other party's insurance company wasn't straightforward with me at all, and they were the at fault party. I know a lot of folks who work in insurance industry will disagree with me, but from my own experience, insurance company's interest is not aligned with consumers at all regardless if you're at fault or not.
I didn't buy into the "fair market value" estimate -- it's just an arbitrary number determined by a "3rd-party" authority. I challenged this number, and was able to negotiate $1000 more back.
HOW DO YOU GET MONEY FROM AUTO INSURANCE My recommendation is not to accept the initial offer from insurance company, and always negotiate. You've nothing to lose, but have a lot to gain.
I am an auto insurance adjuster and the quickest answer to your question is - "it depends on the Owner of the vehicle's policy language". Most auto insurance policies WILL in fact cover ANY driver of the insured vehicle, UNLESS that driver has been previously excluded from the policy or UNLESS the driver has STOLEN the vehicle. This would have to be proved with a copy of a theft report filed by the owner. Now, most of the time this is the case - but NOT in all states, and NOT on all policies. I urge you to call your agent BEFORE you drive a friend's car or BEFORE you let a friend drive yours.
Here are more answers and opinions from other FAQ Farmers:
* The insurance will only cover you if you are listed under their insurance with the car owner.
* I had to find this out in a hard way. They will, if the car owner has given you permission to drive. But if not, they won't and I fell into the second case.
* A good rule of thumb is that 'insurance follows the vehicle' as far as coverage is concerned. The policy in force on the vehicle involved in a loss will cover the damage to the vehicle itself and provide the liability limits if other parties are involved. This does assume that you had the owner's PERMISSION to drive the vehicle involved.
* A lot also depends on the state. I'm insured through Progressive, in Texas - my policy specifically states that anybody that I allow to drive my vehicle is covered. At the same time, my policy will cover me in somebody else's vehicle (with the same coverages that I carry), and also cover any new car for 30 days, to allow time for me to give them the car information. They tend to be a lot more liberal than most companies though. And I don't carry collision anyway (my car is 15-years-old with 165k miles, not worth it), just theft, uninsured motorist and liability.
A car not the driver is insured under comprehensive insurance. for the car to be insured in the case of an acident there are stipulations placed on who can drive the car relating to driver age,experience, driving record etc. this may vary from policy to policy.
Generally not. While you're an insured driver, it's your vehicle that's specified in your auto policy. As such, the policy covers only your auto.
No. The person who owns the car and has it insured will be responsible through their insurance. However, they can take you to small claims court for the amount they had to pay and will win the case.
As with most questions like this, it depends. Specifically:
1. Auto insurance follows the vehicle. So, if you're driving your friend's car and rear-end somebody, your friend's liability insurance will take care of the other vehicle's damages.
2. But what if your friend doesn't carry insurance? Most likely your insurance will step in, but if Ohio requires vehicle owners to carry liability insurance, your carrier will most likely go after your friend for the money they paid to protect you because, by law, your friend should have paid for his own coverage.
3. Does the car belong to a relative? More specifically, a relative in your household? This would likely result in your carrier denying coverage for you because you didn't tell them a relative owns a car that you're driving. How often you drive the car could also affect your carrier's decision.
4. But what if you have full coverage, and you wreck your friend's car that doesn't have full coverage, and you don't normally drive the car? Most likely, your carrier will step in and pay for the damages to your friend's car. Your carrier is "excess," but if no other first-party coverage exists, they'll usually take care of it. See #3, though, because this wouldn't apply to a relative's vehicle.
insurance on the vehicle
The kind of Insurance you are speaking of is a Named non-owners policy. If you are driving someone's car that you borrow it needs to have insurance too. It is illegal to drive a car without insurance (for that car) The driver and owner could get a ticket for the vehicle not being insured.
In my experience as an auto insurance adjuster, the car carries the insurance. It would tie up the courts if settlements were partially on the vehicle and partially on insurance carried by the driver. If your car is involved in an accident while being driven a person who does not have your permission (as the Named Policy Holder) it is possible that your insurance company, after an in-depth investigation, including sworn statements by you, may try to subrogate against the unauthorized driver's insurance.
Here are more opinions and answers from other FAQ Farmers:
* I think this question could vary state to state. However, in WA, the insurance on the vehicle is primary, and if the drivers has insurance on another vehicle, or a broad form policy, theirs is secondary. Hope that helps, just my 2 .
* The vehicle's insurance is primary. If liability insurance on the vehicle is inadequate your own policy will come in as secondary and protect "YOU".
* The driver's insurance applies. Think of this: how can you lower your insurance premmium: you, the driver are experienced, good river (no accident, etc.) As soon as I add my daughter to my policy, it changes to inexperienced driver and not good driver category! SAME car....!
* The insurance follows the car. That is the general rule. However, in some states, there is case law that will hold the owner's and driver's insurers coprimary for liability coverage IN SITUATION WHERE THE DRIVER IS USING THE OWNER'S CAR AS A TEMPORARY SUBSTITUTE VEHICLE. Generally though, the driver's policy is excess or secondary.
There is an excess clause in nearly every auto policy. One particular Auto Insurance carrier is famous for trying to deny coverage based on this excess clause. But, as far as I know EVERY company's policy language includes this excess clause.
In MOST cases, where only PD or MD (property damage or material damage) are involved, companies will agree to pro rata shares of coverage.
The above-mentioned carrier tends to dig their heels in the sand, however, and prolongs the handling of such claims, which nearly ALWAYS translates to a costlier claim process.
most generally yes, your exact coverage will transfer over (if that vehicle is uninsured and there are MANY ''if's'' in this ) to this uninsured vehicle, if it meets the criteria of 'non-owned auto' 'temporary replacement vehicle' etc......but NOT on a continueing bases...you can't just insure one vehicle and drive a non insured one indefinately...understand?
In the state of AZ, the insurance follows the car. Your own coverage may extend to a vehicle that you are using with permission but only as secondary coverage.
Until this answer is improved by an expert, this layman's answer will have to suffice.
IF the driver is not named on the vehicle's insurance, the terms of the insurance policy will ditcate the handling of a liability claim for the accident in which the vehicle was involved.
Normally, if the driver is:
1. Legally licensed to drive, and
2. Has the permission of the owner of the vehicle to have been driving it at the time of the collision, then most policies will cover the "Permissive User."
Insurance follows the vehicle, not the driver. If the vehicle you borrowed does not carry insurance and you do, your insurance becomes secondary to cover the claim. The owner's insurance is primary.
Generally, throughout the insurance industry, if there is insurance on the vehicle involved in the collision, then that insurance is considered "primary,' and is the policy which will provide first coverage.
Then, IF the primary coverage is not adequate [not enough money], the driver's insurance [considered secondary] will kick in for the balance owed on the liability claim, until its limit is reached.
typcially the insurance on the car is primary.....if that policy has collision coverage (am assuming there is liability coverage as that is required).....the vehicle policy will repair that vehicle....if that vehicle does NOT have collison coverage and driver has a policy with collision coverage then drivers policy will step in (2nd)......if neither policy has collision coverage and the driver of your vehicle is at fault..........no company is repairing that vehicle..... and yes as mentioned which ever policy pays for the 'at fault' accident those rates are increasing......could be that both pay....yours for the other parties damage under liablity portion (if your vehicle is at fault) and drivers collision coverage (if your vehicle has no coll.cov)
That is determined by the coverage clauses in both parties policy. The person whose insurance company pays will be the one whose rates increase.
you usually are covered by the insurance for the car...if your friend drove your car and you had insurance on your car, they would be covered on your insurance, not their own
with permission from the owner, as long as there is no exclusion.........and you are not a 'regular' driver, if you are using the vehicle with any regularity, you would need to be listed as an insured driver.......
Answer from a General Insurance Agent
Any existing Auto Insurance policy on the borrowed car would be primary coverage in the event of a liability claim, Any existing auto policy covering the driver would be secondary coverage.
In the event of a property damage loss on the vehicle being borrowed the same would apply. Bare in mind though that if you borrow someone else's property and damage it in the process, the only fair and dignified thing to do would be to repair the damages you caused.
Answer for the UK
In the UK - the general rule is that the driver's own vehicle insurance will pay for any accidents other than when the driver is driving a car with permission and is named on the car owner's policy of insurance to drive the vehicle. If the driver has no insurance the driver has a personal liability to pay for injuries and damage to third parties, but either the car owner's insurance can be used to meet a compensation claim or the Motor Insurers Bureau will step in to pay compensation if no car insurance is available from either the driver or the owner. See the related link entitled "accident car insurance" - for an explanation of all forms of car insurance in the UK and the function of the MIB.
Details (greatly simplied but still quite wordy): This story is set in November of 2008, but to understand it we have to go back two months earlier - to September. In September 2008 the clearing price of mortgage-backed securities implied a high rate of mortgage default with low recovery on foreclosed property - a decline in real estate values such as never seen before. Observers were still debating whether prices were correctly forecasting widespread defaults or whether prices were merely depressed due to illiquidity. For institutions levered to real estate the distinction was very important because it meant the difference between short-term liquidity problems and long run insolvency which would force bankruptcy
To understand liquidity problems, we need to understand collateral. In order to minimize credit risk to each other, financial institutions ask for collateral from each other. As trades slowly move up or down in value, cash and securities flow between institutions so that everyone owes each other approximately nothing and the effects of a sudden bankruptcy are much smaller than they otherwise would be. Having collateral in hand means not having to worry about why your counterparty's trades are marking down so low - you are 100% insured by the collateral and if prices rebound you'll just give it back. And if your counterparty goes bankrupt you won't take a loss. Lehman was long real estate and, due to falling prices and having to post collateral, come September they ran out of cash. Regulators shopped them to other banks whose traders pored over Lehman's books and concluded "the company is insolvent, not just illiquid" so "goodnight Lehman Bros".
AIG was in the same boat as Lehman however AIG is an insurance company - this opened up three problems. (1) Banks are usually regulated by federal entities like the Fed and the SEC, so they all fit into similar frameworks nationwide. However insurance companies are only regulated by states. States are not particularly great at regulating because they are small and every state does things differently. (As a side note for fans of health care reform, regulating insurance companies at the federal level and creating national competition is the single most important reform needed. Lack of this in the so-called reform bills is proof that the legislation is all about creating health care entitlement without any real reform.) You can't just call in JP Morgan or Goldman Sachs to tell you what to do here because a bank can't really analyze an insurance company over a weekend. (2) Next, the ratings agencies had assigned AIG their highest rating, AAA, meaning that people who didn't want to do a lot of their own credit analysis, but didn't want to take any risk of default, were the sort of people who bought AIG bonds - that is to say, AIG bonds were largely being held in accounts that were presumed to be taking no risk by their owners. If you go back to news stories from September 2008 you will find many shrill voices invoking the spectre of systemic melt-down, but those voices tend to come from holders of AIG bonds, not random investors worried about "the system". (3) As an insurance company the general public was very broadly exposed to AIG in pensions, annuities, home insurance, etc... and these people aren't holding any collateral at all, but would account for a lot of votes at the polls come November. So, because of these three complications, the same politicians who let Lehman go under decided, at about the same time, to bail out AIG.
Now, there are lots of ways to do a bailout. This very same month, the largest financial entities in the world, Fannie and Freddie, were bailed out - and basically by the federal government saying "we simply guarantee all the debts and obligations of Fannie and Freddie". (Note that, in the end, the agency bailout is where the "taxpayer" will take almost all his lumps. But the politicians don't talk about this too much because Washington spent decades exempting Fannie and Freddie from any meaningful regulation and encouraging them, via various acts of congress, to facilitate mortgage loans to people who probably couldn't afford homes, but would make U.S. home ownership "more diverse".) In the case of AIG the bailout took the form of an $85 billion loan. It is important to remember at this point the debate over whether real estate securities were down because a bunch of mortage defaults were coming or just because nobody wanted to own the bonds. The politicians were still hoping for the latter and hoping that a loan would tide AIG through its illiquid period and into a time when the securities recovered. The TARP legislation was debated this same month, and the original intent of TARP was to buy these securities, thus creating a market for them, and a recovery in their prices. (In the end, however, TARP was not used in this way. It was used to invest in banks, for which no legislation was required anyway, and auto companies - which was probably illegal.) The TARP debate informs us that in September the politicians were not believing the market-implied rate of mortgage default. So, AIG used its bailout money to keep collateral flowing on its real estate positions. The thinking on this was that it stopped the counterparties from closing out the trades and thus "locking in the loss".
Now let's move forward to November 2008, the subject of this post. By November those debating that real estate securities were down due to illiquidity rather than coming defaults had given up their argument. A wave of defaults was coming and everyone finally realized that a lot of people who took out sub-prime mortgages always had the intention of defaulting because they didn't want to own a home so much as speculate on real estate going up. Back at AIG, their positions had continued to go against them and it became pretty obvious that AIG was insolvent, not just illiquid, and a more aggressive bailout was going to be needed if they were not to declare bankruptcy. But now if AIG goes bankrupt the government is in for a loss too since it has made all these loans. So "in for a penny in for a pound" the feds decide to up the bailout. Among many issues to be sorted out in the fresh bailout is that AIG still has all these real estate positions which keep bleeding money and, since AIG made the wrong calls on this all along, the feds decide to close out all of these positions.
At this point, the "unlimited bailout" decision has been made, and the discussion over mopping up these positions is a sidebar, not super important at the time (but it will become very politically sensitive a year later). The feds would like to save a few bucks by negotiating the close-out on these trades with the banks. However, because all the banks are holding lots of collateral, and some of them are even insured against AIG defaulting, they expect to be paid in full just like everyone else exposed to AIG. The feds aren't calling PIMCO and asking them to take 80 cents for their AIG bonds, they are calling retirees and asking them to take 80 cents for their pension annuities, and the aren't calling up auto insurance holders and asking them to take 80 cents for fender-bender repairs. Further, the insured banks wouldn't take a loss even if AIG went bankrupt unless you buy the end-of-the-world systemic melt-down scenario. But, even if you believe that, why aren't all of AIG's creditors being asked to contribute? Indeed, why not everyone in the world, since all benefit from there being no global melt-down. The banks are not the primary beneficiaries of the bailout, the bondholders are - bondholders have no collateral. In essence, there is nothing for the fed to negotiate, so they abandon the effort.
So, back to Steve's question. AIG was going to go bankrupt without a bailout, and negotiating 80 cents on the dollar for its real estate positions would not have changed that either way - so no game of chicken. For political reasons, the decision was made to bail them out. The banks were not asked to pay a disproportionate amount towards that bailout, and intelligent minds can debate whether or not they should have, but the case is far from clear. Lastly, I will add that I am unconvinced that letting AIG go bankrupt would have created a systemic meltdown, but it is clear why those involved in the bailout would say that. It is human nature that when you make a convenient but unpopular choice, your first defense is likely to be that you didn't really have a choice. The choice to bailout AIG was convenient and unpopular, but I don't agree that it would have led to systemic meltdown, and the historical arguments on my side are quite strong. Panics happen every 10 to 20 years and it is never the end of the world.
Vehicle insurance (also known as auto insurance, car insurance, or motor insurance) is insurance purchased for cars, trucks, and other vehicles. Its primary use is to provide protection against losses incurred as a result of traffic accidents and against liability that could be incurred in an accident.
An auto insurance provider evaluates the premium of one person by the risk that is associated with him or her. This includes specific details of a policyholder including his or her level risk. Specific information like age, nature of work, educational attainment, civil status, and residence are all factors that are being evaluated. In the East Coast, minimum requirements for auto insurance may differ from other people in the West Coast. This may even differ significantly between states.
If you are driving a second-hand or pre-owned car, there might be some implications to it.
An owned car that costs less than $2000 will have good insurance if it has coverage for bodily injury and coverage under liability or property damage. If you are at fault in an accident, you will be able to claim benefits. Undoubtedly, this will be good because you will be saved from a lot of financial burdens. Of course, without one you will surely get a huge cut from your bank account. It may even get you bankrupt. It will even be better when you are involved in a large-scale accident.
Collision deductibles are also important to be safe in the pocket. However, you also need to qualify this. If the amount that you shell out on your collision deductible is a lot more than the worth of the vehicle itself, then it is not a good investment. When other sources of incidents like hail and vandalism are considered, you might go for a comprehensive deductible. These are actually two very important differences between them. Collision deductibles can be claimed when you are at fault while comprehensive deductible solves your costs even though you are not at fault.
You can save a lot more if you know these things. For best measure, be sure to check online to see the best insurance premiums.
To have your car adequately insured you do not need to waste time, efforts and gas visiting all the insurance companies in your area personally. All you need to do is to browse online and find several car insurance quote comparison websites. To use such tool as car insurance quotes comparison website you should know your car coverage needs. There is an online form you need to fill out so as to get information from different insurance companies. As a rule you are required to provide your commercial car model, year, capacity and make. You can choose your quote provided by a trusted insurance company providing services in your area.Dealing factors with your auto insurance premium
Some states, such as North Carolina, require that a driver hold liability insurance before a license can be issued.
Arizona Department of Transportation Research Project Manager John Semmens has recommended that car insurers issue license plates, and that they be held responsible for the full cost of injuries and property damages caused by their licensees under the Disneyland model. Plates would expire at the end of the insurance coverage period, and licensees would need to return their plates to their insurance office to receive a refund on their premiums. Vehicles driving without insurance would thus be easy to spot because they would not have license plates, or the plates would be past the marked expiration date.
 Coverage levels
Vehicle insurance can cover some or all of the following items:
* The insured party
* The insured vehicle
* Third parties (car and people)
* Third party, fire and theft
* In some jurisdictions coverage for injuries to persons riding in the insured vehicle is available without regard to fault in the auto accident (No Fault Auto Insurance)
Different policies specify the circumstances under which each item is covered. For example, a vehicle can be insured against theft, fire damage, or accident damage independently.
An excess payment, also known as a deductible, is the fixed contribution you must pay each time your car is repaired through your Auto insurance in America policy. Normally the payment is made directly to the accident repair "garage" (the term "garage" refers to an establishment where vehicles are serviced and repaired) when you collect the car. If one's car is declared to be a "write off" or "total loss"("write off" is commonly used in motor insurance to describe a vehicle the worth of which is less than the cost of repair), the insurance company will deduct the excess agreed on the policy from the settlement payment it makes to you.
If the accident was the other driver's fault, and this is accepted by the third party's insurer, you'll be able to reclaim your excess payment from the other person's insurance company.
A compulsory excess is the minimum excess payment your insurer will accept on your insurance policy. Minimum excesses vary according to your personal details, driving record and insurance company.
To reduce your insurance premium, you may offer to pay a higher excess than the compulsory excess demanded by your insurance company. Your voluntary excess is the extra amount over and above the compulsory excess that you agree to pay in the event of a claim on the policy. As a bigger excess reduces the financial risk carried by your insurer, your insurer is able to offer you a significantly lower premium.
Basis of premium charges
Main article: auto insurance risk selection
Depending on the jurisdiction, the insurance premium can be either mandated by the government or determined by the insurance company in accordance to a framework of regulations set by the government. Often, the insurer will have more freedom to set the price on physical damage coverages than on mandatory liability coverages.
When the premium is not mandated by the government, it is usually derived from the calculations of an actuary based on statistical data. The premium can vary depending on many factors that are believed to have an impact on the expected cost of future claims. Those factors can include the car characteristics, the coverage selected (deductible, limit, covered perils), the profile of the driver (age, gender, driving history) and the usage of the car (commute to work or not, predicted annual distance driven).
Men average more miles driven per year than women do, and consequently have a proportionally higher accident involvement at all ages. Insurance companies cite women's lower accident involvement in keeping the youth surcharge lower for young women drivers than for their male counterparts, but adult rates are generally unisex. Reference to the lower rate for young women as "the women's discount" has caused confusion that was evident in news reports on a recently defeated EC proposal to make it illegal to consider gender in assessing insurance premiums. Ending the discount would have made no difference to most women's premiums.
Teenage drivers who have no driving record will have higher Auto insurance in America premiums. However, young drivers are often offered discounts if they undertake further driver training on recognised courses, such as the Pass Plus scheme in the UK. In the U.S. many insurers offer a good grade discount to students with a good academic record and resident student discounts to those who live away from home. Generally insurance premiums tend to become lower at the age of 25. Senior drivers are often eligible for retirement discounts reflecting lower average miles driven by this age group.
Drivers who are unmarried are often charged higher insurance premiums as opposed to married drivers.
Owners of sports cars, muscle cars, some sport utility vehicles, and motorcycles would have higher insurance premiums as opposed to compact cars, midsized cars, or luxury cars. However, in the case of motorcycles, the chance of causing extensive damage to other vehicles is relatively low (as opposed to damage to oneself) and thus liability insurance premiums are often lower. Distance
Some Auto insurance in America plans do not differentiate in regard to how much the car is used. However, methods of differentiation would include:
Several Auto insurance in America plans rely on a reasonable estimation of the average annual distance expected to be driven which is provided by the insured. This discount benefits drivers who drive their cars infrequently but has no actuarial value since it is unverified.
Cents Per Mile Now(1986) advocates classified odometer-mile rates. After the company's risk factors have been applied and the customer has accepted the per-mile rate offered, customers buy prepaid miles of insurance protection as needed, like buying gallons of gasoline. Insurance automatically ends when the odometer limit (recorded on the car�s insurance ID card) is reached unless more miles are bought. Customers keep track of miles on their own odometer to know when to buy more. The company does no after-the-fact billing of the customer, and the customer doesn't have to estimate a "future annual mileage" figure for the company to obtain a discount. In the event of a traffic stop, an officer could easily verify that the insurance is current by comparing the figure on the insurance card to that on the odometer.
Critics point out the possibility of cheating the system by odometer tampering. Although the newer electronic odometers are difficult to roll back, they can still be defeated by disconnecting the odometer wires and reconnecting them later. However, as the Cents Per Mile Now website points out:
As a practical matter, resetting odometers requires equipment plus expertise that makes stealing insurance risky and uneconomical. For example, to steal 20,000 miles (32,000 km) of continuous protection while paying for only the 2,000 miles (3,200 km) from 35,000 miles (56,000 km) to 37,000 miles (60,000 km) on the odometer, the resetting would have to be done at least nine times to keep the odometer reading within the narrow 2,000-mile (3,200 km) covered range. There are also powerful legal deterrents to this way of stealing insurance protection. Odometers have always served as the measuring device for resale value, rental and leasing charges, warranty limits, mechanical breakdown insurance, and cents-per-mile tax deductions or reimbursements for business or government travel. Odometer tampering�detected during claim processing�voids the insurance and, under decades-old state and federal law, is punishable by heavy fines and jail.
Under the cents-per-mile system, rewards for driving less are delivered automatically without need for administratively cumbersome and costly GPS technology. Uniform per-mile exposure measurement for the first time provides the basis for statistically valid rate classes. Insurer premium income automatically keeps pace with increases or decreases in driving activity, cutting back on resulting insurer demand for rate increases and preventing today's windfalls to insurers when decreased driving activity lowers costs but not premiums.
In 1998, Progressive Insurance started a pilot program in Texas in which drivers received a discount for installing a GPS-based device that tracked their driving behavior and reported the results via cellular phone to the company. Policyholders were reportedly more upset about having to pay for the expensive device than they were over privacy concerns. The program was discontinued in 2000.
In 2008, The Progressive Corporation launched MyRate to give drivers a customized insurance rate based on how, how much, and when their car is driven. MyRate is currently available in Alabama, Kentucky, Louisiana, Michigan, Minnesota, Maryland, New Jersey and Oregon. Driving data is transmitted to the company using an on-board telematic device. The device connects to a car's OnBoard Diagnostic (OBD-II) port (all automobiles built after 1996 have an OBD-II.) and transmits speed, time of day and number of miles the car is driven. There is no GPS in the MyRate device, so no location information is collected. Cars that are driven less often, in less risky ways and at less risky times of day can receive large discounts. Progressive has received patents on its methods and systems of implementing usage-based insurance and has licensed these methods and systems to other companies. Progressive has service marks pending on the terms Pay As You Drive and Pay How You Drive.
Auto insurance in America
The consumer may be protected with different coverage types depending on what coverage the insured purchases. Some states require that motorists carry liability insurance coverage to ensure that their drivers can cover the cost of damages to people or property in the event of an automobile accident. Some states, such as Wisconsin, have more flexible �proof of financial responsibility� requirements.
In the United States, liability insurance covers claims against the policy holder and generally, any other operator of the insured vehicles, provided they do not live at the same address as the policy holder, and are not specifically excluded on the policy. In the case of those living at the same address, they must specifically be covered on the policy. Thus it is necessary, for example, when a family member comes of driving age that they be added to the policy. Liability insurance sometimes does not protect the policy holder if they operate any vehicles other than their own. When you drive a vehicle owned by another party, you are covered under that party�s policy. Non-owners policies may be offered that would cover an insured on any vehicle they drive. This coverage is available only to those who do not own their own vehicle and is sometimes required by the government for drivers who have previously been found at fault in an accident. Non-owners policies are also known as Named Operator Policies. The policies are useful for people whose drivers license has been suspended and they have to have insurance for their license to be reinstated.
Generally, liability coverage extends when you rent a car. Comprehensive policies ("full coverage") usually also apply to the rental vehicle, although this should be verified beforehand. Full coverage premiums are based on, among other factors, the value of the insured�s vehicle. This coverage, however, cannot apply to rental cars because the insurance company does not want to assume responsibility for a claim greater than the value of the insured�s vehicle, assuming that a rental car may be worth more than the insured�s vehicle. Most rental car companies offer insurance to cover damage to the rental vehicle. These policies may be unnecessary for many customers as credit card companies, such as Visa and MasterCard, now provide supplemental collision damage coverage to rental cars if the transaction is processed using one of their cards. These benefits are restrictive in terms of the types of vehicles covered.
Liability coverage is offered for bodily injury (BI) or property damage (PD) for which the insured driver is deemed responsible. The amount of coverage provided (a fixed dollar amount) will vary from jurisdiction to jurisdiction. Whatever the minimum, the insured can usually increase the coverage (prior to a loss) for an additional charge.
An example of Property Damage is where an insured driver (or 1st party) drives into a telephone pole and damages the pole, liability coverage pays for the damage to the pole. In this example, the drivers insured may also become liable for other expenses related to damaging the telephone pole, such as loss of service claims (by the telephone company), depending on the jurisdiction. An example of Bodily Injury is where an insured driver causes bodily harm to a third party and the insured driver is deemed responsible for the injuries. However, in some jurisdictions, the third party would first exhaust coverage for accident benefits through their own insurer (assuming they have one) and/or would have to meet a legal definition of severe impairment to have the right to claim (or sue) under the insured driver's (or 1st Party's) policy.
In some jurisdictions: Liability coverage is available either as a combined single limit policy, or as a split limit policy:
Combined single limit
A combined single limit combines property damage liability coverage and bodily injury coverage under one single combined limit. For example, an insured driver with a combine single liability limit strikes another vehicle and injures the driver and the passenger. Payments for the damages to the other driver's car, as well as payments for injury claims for the driver and passenger, would be paid out under this same coverage.
A split limit liability coverage policy splits the coverages into property damage coverage and bodily injury coverage. In the example given above, payments for the other driver's vehicle would be paid out under property damage coverage, and payments for the injuries would be paid out under bodily injury coverage.
Bodily injury liability coverage is also usually split into a maximum payment per person and a maximum payment per accident.
In the state of Oklahoma, insurance companies must carry at least state minimum liability limits of $25,000/$50,000/$25,000. If an insured driver hits a car full of people and is found by the insurance company to be liable, the insurance company will pay $25,000 of one person's medical bills but will not exceed $50,000 for other people injured in the accident. The insurance company will not pay more than $25,000 for property damage in repairs to the vehicle that the insured one hit.
In the state of Indiana, the minimum liability limits are $25,000/$50,000/$10,000, so there is a greater property damage exposure for only carrying the minimum limits.
Full coverage is the name commonly referred to as Comprehensive and Collision.
Collision coverage provides coverage for an insured's vehicle that is involved in an accident, subject to a deductible. This coverage is designed to provide payments to repair the damaged vehicle, or payment of the cash value of the vehicle if it is not repairable. Collision coverage is optional, however if you plan on financing a car or taking a car loan, the lender will usually insist you carry collision for the finance term or until your car is paid off. Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) is the term used by rental car companies for collision coverage.
Comprehensive (a.k.a. - Other Than Collision) coverage provides coverage, subject to a deductible, for an insured's vehicle that is damaged by incidents that are not considered Collisions. For example, fire, theft (or attempted theft), vandalism, weather, or impacts with animals are types of Comprehensive losses.
Uninsured/underinsured Motorist coverage
Underinsured coverage, also known as UM/UIM, provides coverage if an at-fault party either does not have insurance, or does not have enough insurance. In effect, your insurance company pays your medical bills, then would subrogate from the at fault party. This coverage is often overlooked and very important. In Colorado for example, it was estimated in 2007 that 24% of drivers did not carry the state minimum liability limits required by law. Unfortunately, this number goes up significantly during recessions. In some areas, it is estimated that 1 out of every 3 drivers don't carry insurance. Usually your limits match your liability limits. Some insurance companies do offer um/uim in an umbrella policy.
In the United States, the definition of an uninsured/underinsured motorist, and corresponding coverages, are set by state laws.
Loss of use
Loss of use coverage, also known as rental coverage, provides reimbursement for rental expenses associated with having an insured vehicle repaired due to a covered loss.
Loan/lease payoff coverage, also known as GAP coverage or GAP insurance, was established in the early 1980s to provide protection to consumers based upon buying and market trends.
Due to the sharp decline in value immediately following purchase, there is generally a period in which the amount owed on the car loan exceeds the value of the vehicle, which is called "upside-down" or negative equity. Thus, if the vehicle is damaged beyond economical repair at this point, the owner will still owe potentially thousands of dollars on the loan. The escalating price of cars, longer-term auto loans, and the increasing popularity of leasing gave birth to GAP protection. GAP waivers provide protection for consumers when a "gap" exists between the actual value of their vehicle and the amount of money owed to the bank or leasing company. In many instances, this insurance will also pay the deductible on the primary insurance policy. These policies are often offered at auto dealerships as a comparatively low cost add-on to the car loan that provides coverage for the duration of the loan.
Consumers should be aware that a few states, including New York, require lenders of leased cars to include GAP insurance within the cost of the lease itself. This means that the monthly price quoted by the dealer must include GAP insurance, whether it is delineated or not. Nevertheless, unscrupulous dealers sometimes prey on unsuspecting individuals by offering them GAP insurance at an additional price, on top of the monthly payment, without mentioning the State's requirements.
In addition, some vendors and insurance companies offer what is called "Total Loss Coverage." This is similar to ordinary GAP insurance but differs in that instead of paying off the negative equity on a vehicle that is a total loss, the policy provides a certain amount, usually up to $5000, toward the purchase or lease of a new vehicle. Thus, to some extent the distinction makes no difference, i.e., in either case the owner receives a certain sum of money. However, in choosing which type of policy to purchase, the owner should consider whether, in case of a total loss, it is more advantageous for him or her to have the policy pay off the negative equity or provide a down payment on a new vehicle.
For example, assuming a total loss of a vehicle valued at $15,000, but on which the owner owes $20,000, is the "gap" of $5000. If the owner has traditional GAP coverage, the "gap" will be wiped out and he or she may purchase or lease another vehicle or choose not to. If the owner has "Total Loss Coverage," he or she will have to personally cover the "gap" of $5000, and then receive $5000 toward the purchase or lease of a new vehicle, thereby either reducing monthly payments, in the case of financing or leasing, or the total purchase price in the case of outright purchasing. So the decision on which type of policy to purchase will, in most instances, be informed by whether the owner can pay off the negative equity in case of a total loss and/or whether he or she will definitively purchase a replacement vehicle.
Car towing coverage is also known as Roadside Assistance coverage. Traditionally, automobile insurance companies have agreed to only pay for the cost of a tow that is related to an accident that is covered under the automobile policy of insurance. This had left a gap in coverage for tows that are related to mechanical breakdowns, flat tires and gas outages. To fill that void, insurance companies started to offer the car towing coverage, which pays for non-accident related tows.
Personal items in a vehicle that are damaged due to an accident would not be a covered under the auto policy. Any type of property that is not attached to the vehicle should be claimed under a homeowners or renters policy. However, some insurance companies will cover unattatched GPS devices intended for automobile use.
Behavior based insurance
The use of non-intrusive load monitoring to detect drunk driving and other risky behaviors has been proposed. A US patent application combining this technology with a usage based insurance product to create a new type of behavior based auto insurance product is currently open for public comment on peer to patent
Saturday, January 30, 2010
1. Quality:Compare auto insurance in allstate
Make sure first that will diipilih insurance including insurance categories have received prediket Best General Insurance, Indonesian Best Brand Award, Indonsian Customer Satisfaction Award. Because with this certification clearly shows that the insurance is reliable, trustworthy, and proven responsibility in serving the customer claim.
2. Cost Own Risk (Own Risk):Compare auto insurance in allstate
Sometimes back and forth to the repair shop insurance is also something that makes lazy customers, especially some of the insurance claim the system to apply to the payment of fees OR (Own Risk) or the risk itself is an average of Rp 100,000 .- one based on per event, per collision, and so of course it makes you be much burdened with the cost claim to pay OR if frequent back and forth to the shop insurance, not necessarily satisfying the customer's machine shop work done by the workshop for the mock or non-authorized. Sometimes the paint striped body image Betong make your car as if it had tremendous impact this would make your car selling points decline. Although the customer can complain to the insurance, but how long the loss of your time wasted. It's good for a very busy and lazy Bulak insurance back to the workshop should select an insurance can receive 1 (one) claim it but a collection of some of the impact / collision events within different, so maybe in a year enough time to 1 garage insurance and pay a one time OR your car body back smoothly because the garage was done by a trusted or authorized repair shop (authorized). Save and efficient.
3. Claim Process:Compare auto insurance in allstate
As to the insurance claim process should be examined first, there are several car insurance when the customer receives the claim so convoluted it is to have it ready lah lah surveyornya wait, sometimes have to argue is the first survey. Yet sometimes take a few days just to wait for SPK (Work Warrant) issued the insurance to the repair shop could fix our cars. Things like this sometimes customers feel ignored and a lot of time to wait tebuang just a piece of paper / letter. Leave a process like this is already old, you should select an insurance claim is not complicated as fast less than 30 minutes of PRS was in your hands so you stay in the shop when menenetukan insurance.
4. Work:Compare auto insurance in allstate
Many are applying some insurance rates cheap, but what if the result of the workshop was not qualified associates mock alias and not satisfying the customer. Sometimes paint your car look even striped body image Betong make your car as if it had tremendous impact this would make your car selling points decline. Although the customer can complain to the insurance, but how long the loss of your time wasted. Pay attention to this and select the insurance with a trusted partner workshops and official (authorized). Remember that your vehicle is a valuable asset, do not Sepelekan using dubious insurance services just because the difference in price premiums just a few dollars
5. Spare Parts (Spare Parts):Compare auto insurance in allstate
Spare parts are the most important part in your car, make sure the insurance guarantee spare part that used the original with warranty. Be careful with insurance that does not guarantee this so fatal consequences.
6. Responsibility to Third Parties (TJH / TPL) and the PA (Personal Accident):Compare auto insurance in allstate
This feature should be observed carefully because at the time of the accident hit a motorcycle crash example sometimes - sometimes 3rd party even more severe damage than us. Here dipelukan role of this feature, we suggest you choose an insurance with the responsibility to the big three, so you tebebebani no extra cost. Likewise with personal accident protection features driver / passenger it is also very necessary. Select insurance which is included with this feature.
7. Free Service Protection 24 Hours:Compare auto insurance in allstate
This is a very, very important when we choose car insurance, car insurance that many rely on and provide cheap rates only protection but service was not satisfactory, no 24-hour service, no telephone service sometimes difficult to be reached even nothing is said, sometimes Sometimes the area is also very limited protection was sometimes only Jabotabek area only. Out of your Jabotabek can ketar-ketir if there is a problem with your car like a strike on the highway due to a flat tire, need a crane, a key left in the car, run out of fuel, etc.. Leave this concern, select the insurance with 24-hour alert and wide area protection in Indonesia. So if you are touring out of town as far as to Medan or Bali not worry if there is a problem with your car. This feature needs to be considered for those of you who love to travel far (touring).
8. SRCC (Strike, Riot and Civil commotion - Riots, Strikes and Huru Hara & Flood):Compare auto insurance in allstate
This feature is highly recommended insurance that will ensure the risk resulting from a disturbance of public order committed by a group of people, and the actions the authorities in taking actions against such interference, whether related to the strike and counteraction to work, and civil unrest which took political bemotif. Also ensure the expansion of insurance losses caused by water overflowing out of the normal limits of the river, lakes, swamps, jebolnya floodgates, dams jebolnya, continuous rain that can not be accommodated by water channels. Damage due to flooding include damage to the interior, exterior, dashboard panels, mechanical, electrical and other damage to the insured vehicle bemotor. Select insurance already included this feature.
9. Flexibility In Payment:Compare auto insurance in allstate
Choose your car insurance premium payments flexible, can be done with cash, transfer, or credit card (Visa / Mastercard). This may help your financial management.
For that to meet the security needs, you can choose the car insurance product that can provide protection against the risks that might occur in your car.
Auto insurance costs continue to rise, and there are so many options available that you may not know which to choose.
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Compare auto insurance in allstate
Auto insurance is mandatory in every state. This necessary expense, while it may often appear to be a nuisance, can come in handy if you are involved in an accident. With medical costs and law suit judgments soaring, a solid auto insurance plan can offer the best protection of your precious assets.
No, all states do not require car insurance but they do require financial responsibility to operate a vehicle on the roadway. While not all states require drivers to buy liability insurance to show financial responsibility, 48 states (plus Washing DC) do. These states do not have compulsory auto insurance liability laws:
What states do have mandatory auto insurance?
Every state but Wisconsin and Tennessee, both states have bills that would require insurance in 2009
1. New Hampshire
All 50 states have different requirements when it comes to auto insurance and the minimum insurance requirements. Almost every state requires you to have Bodily Injury Liability insurance and every states has financial responsibility laws that require you be able to have sufficient assets to pay for any liability you cause in an incident.
There are two auto insurance systems mandated by the states: The No-Fault system and the Tort System. The No-Fault system- utilized by most states- requires your insurance carrier to pay your injury claims regardless of who caused the accident (up to a specified limit) if you are in an accident. In contrast, under the Tort System people injured in auto accidents will be forced to seek out-of-pocket medical care, and then sue the at-fault driver's insurance company for reimbursement. They must be able to prove that such medical care was reasonable and medically necessary; under this law, the at-fault party cannot sue for reimbursement of medical costs.
Having Auto insurance not only keeps you covered in case something happens, it also lets you have peace of mind that you are covered. After all, consider the alternative. Do you know what happens if you don't get car insurance? Law enforcement officers will ask you for proof of insurance at the time of traffic stops or accidents. Insurance companies notify the department of motor vehicles of all policy cancellations, non-renewals, and new policies. If this is the case with you, the law enforcement officer will know it and it could cause you huge fines or worse. Failure to maintain proper insurance could lead to the suspension of your vehicle registration and/or driver license. This can be expensive to the vehicle owner. Be sure that you follow your state's auto insurance laws!
Shopping For Auto Insurance Quotes
When looking at Auto insurance quotes, you will want to find the best and most coverage possible. Although most states auto insurance laws do not require a minimum Personal Injury Protection (PIP), for example, there are advantages to having this type of coverage. If you ever have an accident, PIP will pay for you and your passengers' medical expenses. Another type of optional coverage you can consider getting is Uninsured/ Underinsured Motorist Coverage. This coverage will help pay for any injury resulting from an accident caused by an uninsured driver. It's estimated that approximately 14% of American drivers are uninsured, despite the fact that most states have laws against driving uninsured vehicles. A car accident occurs approximately every five seconds in America; it is simply safer to have comprehensive auto insurance on the vehicles you drive.
compare auto insurance in usa For your free auto insurance quotes, simply fill out a short form, and we give you multiple free auto insurance quotes from some of the best insurance carriers in the business. compare auto insurance in usa Then, we require no further obligation whatever from you. You can compare the offers you receive, and then you can purchase the auto insurance policy that best meets your needs- without having to leave the comfort of your home! If you're looking for a better rate with better coverage, just try our free quote system and find the auto insurance policy that fits you. There is no charge, and it will take only a few minutes of your time.
There are plenty of reasons to insure your vehicle, but what kind of insurance should you get? The first place to start is to become thoroughly acquainted with your vehicle. It is a good idea to know as much about your vehicle as possible, including its general state of repair. Most auto insurance companies will give you discounts if your vehicle is equipped with properly functioning safety features, like safety belts and air bags. Be sure to let your auto insurance agent know about these details when getting your quote. These details can result in differences of hundreds of dollars, depending on the auto insurance company and their familiarity with your vehicle. Be sure to note whether you are entitled to other bonuses. You can get discounts for being a non-smoker, or for taking driver's safety courses. Also try to find a company that has a good, financially stable reputation and one that will process claims quickly.
Getting those free rate quotes is the first step in getting that good rate on your auto insurance. All of the auto insurance carriers you receive quotes from want your business, but it is up to you to decide which one is going to be the best for you and for your budget. With the current economic trends, having auto insurance premiums that are as low as possible is just one more way to save money that might be needed somewhere else in your life.
It is possible to save money, even hundreds of dollars on your auto insurance premiums. Every auto insurance company says this, but they are actually correct! You can save money on your auto insurance, from just a few dollars up to as much as five hundred or sometimes even more. But you can't expect to find that deal unless you look for it. So give us a chance to help us help you find that rate you desire! is easy to use, and our short form to get free auto insurance quotes online gives you access to free quotes which will give you the information you need to make an educated decision.
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Alabama Auto Insurance (AL)
According to the Insurance Information Institute, in the year 2005, people living within the boundaries of Alabama typically spent approximately $678.00 on automobile insurance premiums. The latter figure actually reveals a relatively small increase in insurance rates when compared to those rates paid by Alabama residents in the year 2004: the average cost of insurance was roughly $677.00 that year. This relatively small increase can be identified from one year to the next as a 4 percent increase for the residents of Alabama.
In contrast, the year 2005 was the first year that residents of Alabama began to notice a slight decrease in the average cost of insurance, and it is believed that is significantly responsible for the price decreases due to increased competition enforced by for the consumer dollar.
In terms of auto insurance there are some minimum state requirements for the state of Alabama. Alabama uses a tort system, which means that an individual has to be found at fault for the cause of an auto accident. That person found at fault, as well as their auto insurance carrier, are responsible for the damages that result from that accident.
You should know that the tort system differs for each state and you should look at the system in the state you live in with your state insurance regulator. Visit the links page for State Insurance Regulators on for all state insurance regulators websites.
Under state law in Alabama there is a requirement of a minimum Bodily Injury Liability coverage in the amount of $20,000 or each person injured in an accident and $40,000 for each accident. There is a requirement of Property Damage Liability coverage with a minimum limit of $10,000. This type of coverage is often called 20/40/10 coverage.
Personal Injury Protection (PIP) in your auto insurance coverage will help pay for medical expenses for both you and your passengers that is "reasonable and necessary". Alabama state law does not require that a premium have PIP protection but there are some insurance companies that will offer this type of protection. You can use to find the insurance companies that offer this type of protection.
You can also receive Uninsured/Underinsured Motorist coverage for any injury that is caused by a driver that does not carry auto insurance. Alabama state law does not require this type of coverage but you can purchase Uninsured/Underinsured Motorist coverage for more protection. You can use to find the insurance companies that offer this type of protection.
There are many compare auto insurance in usa states where you can receive quote and buy an auto insurance policy online, so do not sit back and waste your money when you do not have to. Simply enter your zip code and you can find out how much money you can save on your auto insurance in Alabama.compare auto insurance in usa
Thousands of drivers on the nation's roads don't carry auto insurance, despite laws in all but two states requiring it. Critics of President Barack Obama's health overhaul plan ask: What are the chances scofflaws will treat a requirement to carry health insurance any differently?
Nearly 40 years of car insurance mandates � which the insurance industry says have failed to make roads safer or lower auto insurance costs � raise questions about how well such mandates work.
"Not everyone complies," said Scott Harrington, a professor of health care management and risk management at the University of Pennsylvania. "The auto insurance mandate is almost everywhere. But it's not rigorously enforceable."
David Sampson, president and CEO of the Property Casualty Insurers Association of America, said drivers' personal financial situations, not the rules of their states, are a better indicator of whether they carry insurance.
States with higher poverty rates show a corresponding rise in uninsured drivers, he said. Simply put, people skirt car insurance when they can't afford it.
They may do the same with health insurance, so the trick for Congress will be how to enforce a mandate without scuttling the program.
Set fines too low and healthy folks may decide to simply pay them and not buy insurance. But if fines are too high, voters may reject the plan or worry they could end up in jail for not getting coverage.
The House version would fine people up to 2.5 percent of adjustable income by 2017, while a Senate version would fine adults up to $750 a year.
Requiring everyone to buy health insurance can help spread the responsibility for medical costs. With proposed subsidies to help the poor buy into it, the so-called "individual mandate" gets Democrats closer to moving millions of uninsured into coverage plans.
Obama did not support an individual mandate in his campaign, but now says his thinking has evolved.
"We're not going to have other people carrying your burdens for you any more than the fact that right now everybody in America, just about, has to get auto insurance," Obama said in September on ABC's "This Week" show.
Auto insurance mandates started cropping up in states in the 1970s, becoming virtually standard by the 1990s.
Forty-eight states require drivers to carry some sort of liability insurance, and when Wisconsin's mandate starts next summer, New Hampshire will be the only state left where drivers can legally drive without auto insurance. Even in those states, though, drivers must provide proof that they can pay minimal levels of damage.
Despite that, 14 percent to 16 percent of drivers don't have auto insurance, according to insurance industry estimates. That's about the same percentage as Americans without health insurance � 15 percent by recent U.S. Census estimates.
Peter Urbanowicz � a former general counsel for Tenet Healthcare and the U.S. Department of Health and Human Services under former President George W. Bush � said the car insurance analogy is "an appealing argument."
But he warned that a health overhaul dependent on a mandate could unravel if a court decides that just because state governments can require car insurance doesn't mean the federal government can require health coverage.
"It's apples and oranges" to compare health insurance to car insurance mandates, said David Rivkin, former counsel to President George H.W. Bush and a critic of health mandates.
People who don't want to pay car insurance can simply choose not to drive, he said. But with health insurance, no one could avoid paying without breaking the law, Rivkin said.
"It's imposed on you simply because you exist," he said. "If the federal government can impose this kind of mandate, it can impose any kind of mandate."
Even Congress' own lawyers acknowledge compulsory health insurance is complicated.
In a July report on whether a mandate would be legal, the nonpartisan Congressional Research Service concluded that it "seems possible" � but noted it's something the federal government has never attempted to do.
Mandate supporters said because health care makes up some 16 percent of the national economy, Congress can successfully argue that compelling coverage is within its power to regulate commerce.
Massachusetts became the only state to mandate health insurance in 2006. It has passed legal muster and led to 97 percent of residents having some form of coverage, said Alan Sager, director of the Health Reform Program at Boston University's School of Public Health.
"It has been shown the mandate can be administered and implemented simply," he said.
Insurance Companies Listed in Alphabetical Order
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Compare auto insurance in allstate
Tuesday, January 26, 2010
21st Century Insurance Company $XX Rating of "A+" (Superior) About Drive from Progressive
GMAC Insurance Company $XX Rating of "A-" (Excellent) About GMAC
Infinity Insurance Company $XX Rating of "A" (Excellent) About Infinity
Bristol West Insurance Company $XX Rating of "A+" (Superior) About Bristol West
Unitrin Insurance Company $XX Rating of "A" (Excellent) About Unitrin
Yet, we also found many insurance firms in which high commissions convert into lofty rates, with no increase in service quality," J. Robert claimed. "Great online insure rates as well as good service might be found in case consumers take the time to compare companies."
Consumer Federation of America reviewed commission data from the twenty most popular writers of insurance for both individual passenger insurance policy as well as homeowners insurance. This sum commission information combined regular commissions and dependent commissions (paid after policies are sold and based on special sales or on profitability goals).
The report compared sum commissions with cost, insurer profitability and service quality according to grievance data and consumer contentment indices. Consumer Federation of America (CFA) found that:
1. Insurance companies having lower commissions often have lower charges. This is not always the situation, so consumers have to shop cautiously.
2. There is no evidence that paying higher fees to an agent or broker derives either better service or higher customer satisfaction. Actually, there appears to be no correlation between the amount of commission disbursed and the value of service supplied.
3. Some insurers propose high-quality deals. Other insurance providers have rates that are almost always high.
In less competitive businesses, some insurers may be tempted to attract market share by offering higher fees to agents or to brokers with higher costs and, sometimes, higher gains for the insurance provider. Credit insurance is one area where this kind of `reverse competition` is particularly frequent.
Instructions for Customers
We propose several tips for customers when shopping for web insure:
1. Shop around! This study revealed that monthly payment charges usually ascend with commissions, though this isn`t always correct. Consumers should be sure to get quotes from several of the lowest premium insurance companies, including the direct writers of insurance that typically don`t disburse commissions.
2. Consumers don`t need to disburse more to get excellent service. Some of the companies with the most excellent service records have low prices and low or no commissions. It is worthwhile to shop among the firms which have the lowest prices and the highest customer contentment/lowest complaint ratios.
3. In order to get information about insure policy rates, check state cost information guides. Most of the states have cost information guides. Regularly, customers are able to download these guides from the country`s insurance department site.
4. In order to receive grievance information on insurance providers, check in the National Association of Insurance Commissioners` web-site, www.naic.org.
5. Be cautious with going to just a single insurance agent or broker for web insurance, even if that insurance agent represents several insurance firms. Customers must be aware that some agents who represent more than one insurance provider might put the customer in a higher priced insurance company with larger commissions even if the customer meets the requirements for a lower cost. States don`t necessitate agents or brokers to place the customer with the most excellent insurance plan for him.
6. Ask agents or brokers the important questions:
Do you represent me or do you act for the insurance firm you are suggesting me to use?
What commission are you earning compared to the price of the online ins policy policy you are recommending me to buy?
Am I getting the lowest price between all the web ins companies that you represent for which I meet the requirements?
What other insure on line providers do I qualify for that you act for? What are the costs I would disburse at those insurance firms and what fee would you earn with every insurance provider?
Do you have a contingency commission agreement with the insurance provider you`re recommending? Please completely clarify it to me.
In case I have a claim, do you act for me or the insurance firm in the claim process? Is your reimbursement in any way connected to claims filed by me and other clients of yours?
Inquiring about Car Insurance articles? Locate below...
1. Best Ins Information
2. Get Free Insurance Quote: detailed directions for Get Insurance Agent
3. Home Insurance extensive information
We look forward to the prospect the text above which reviews the matter of car insurance is going to serve you well in your effort to reach a fresh angle on the characteristics of car insurance, which is often misunderstood.
Monday, January 25, 2010
Are you going through short financial hardships? Is your payday still at distant from your reach? If you are looking for ways to kick these short financial needs, then you certainly don't need to ponder as payday loans are available without faxing.
People often avoid going through the lengthy faxing procedure which further exacerbates their financial situation. But, now whenever any unforeseen expense arises in front, you don't need to take any help from others instead can easily apply for payday loans and obtain an instant cash.
However, it is my experience with such loan that is urging me to speak some words in its favor. Payday loans are short term loans and are especially designed to meet urgent cash requirement.
As its name suggests, this loan has to be paid back on your next payday or in other words these are an instant cash that is tide to you until your next wage.
Since, this form of borrowing amount do not require any kind of document faxing, so it is also known as payday loans no faxing. It has motivated people to borrow amount on short terms and that also without facing any faxing hassle.
Nevertheless, in order to get through the process of payday loans you are required to qualify the eligibility criteria. The grounds are as follows:
You should fall between the age group of 18 � 85.
You should have a regular source of income and should earn minimum income of �1000 per every month.
You should be the citizen of the UK and
should have a valid checking account in which all your transactions could be determined.
Therefore, once you have been through the eligibility criteria, then you can certainly obtain an instant cash ranging from �100 to �1500. Since, these are short term loans, the repayment period is also quite shorter and has to be completed within 14 to 31 days.
Hence, payday loans can also be termed as a true financial friend which always stands at your side in crucial times.
Monday, January 18, 2010
Do you own a house and still seeking monetary assistance? If you are falling under such circumstances, then you certainly do not need to ponder about the arrangement of fund. However, owning a house in a country like Britain is like a blessing as you automatically become entitle to attain higher loan amount.
Similarly, few months back I was going through a very tough phase of my life when I was in an urgent need of cash to meet the medical charges. Since, I was already loaded with number of debts, so I was finding it quite tough to overcome the financial short come.
The depression was literally clouding my happiness, but the moment my eyes got struck at my own house I realize that I do have a solution for my problems. Homeowner loans was the only possible medicine for my illness and it was certainly less complicated.
Nevertheless, in order to qualify the process of homeowner loans, I had to cross the eligibility criteria that is determined on certain grounds such as:
you should fall between the age group of 18 � 85.
you should be the domiciled of the UK.
Should be a homeowner with a house value of �60k.
Should have a regular source of income and
should have a valid checking account in which the amount can be transferred directly.
Therefore, if you carry all the above mentioned criteria, then you are certainly eligible to attain the loan amount.
Therefore, after the application got approved I got the chance to attain an amount ranging from �5,000 and �100,000, which was quite sufficient to meet the medical charges. However, the most amazing part of homeowner loans is that the repayment period is extended up to five to 25 years.
However, after seeking such a huge amount I also got the privilege to consolidate my other debts which further helped me in improvising my credit profile.
Therefore, homeowner loans have really lived up to its status and helped me in overcoming the problems.