Q) If I let someone borrow my car and they are in an accident, whose (if any) insurance will apply? A) A good rule of thumb: "Liability follows the car." In most cases, the insurance on the vehicle will apply if the accident is sustained while the vehicle is being driven by someone with permission. In many cases, the liability insurance of the person driving the car will pay if the amount of the loss exhausts your policy's limits.
Q) If my child goes away to college with one of mom or dad's cars, are they still covered under my Personal Auto Policy? A) This is a very common scenario and may be viewed differently by different insurance companies. You should contact your insurance company and make sure the child is properly listed as a driver in order to avoid any future coverage disputes or prorated premium changes.
Q) My lender mentioned "gap" insurance. Do I need it? A) As long as the value of your vehicle is less than what you owe, yes. If the balance of the loan is less than the value of the vehicle, no.
Q) My teenager is approaching driving age. How can I cover him without breaking the bank? A) Drivers under 25 pose the greatest risk of causing an accident. It is difficult to add someone in this age group to your auto insurance without seeing a major premium change. Keep in mind that it is more expensive to insure a teen if the only car(s) on the policy are a sports car, SUV, or other more valuable, attractive, expensive-to-repair vehicle. Consider purchasing a lower-end vehicle for your teen to drive and insure it separately in his name.
Q) I just bought a new car and have yet to tell my insurance company. Am I still covered? A) Coverage may apply for newly acquired vehicles, but you should notify your insurance company immediately. Most companies have strict limitations on the types of vehicles to which coverage will apply, the type of coverage that will apply, and the amount of time that may lapse before coverage will not apply.
Q) My family is preparing for vacation and will be renting a car. Will my auto insurance apply? A) Many auto insurance companies will extend liability coverage to a non-owned vehicle when rented for personal use. However, restrictions may apply. Similarly, there may be restrictions to the coverage offered by the rental car company. Before taking your next trip, contact your insurance company to ensure that a restriction does not ruin your family vacation.
Bodily Injury Liability: Physical injury or death to a third party for which the policyholder is legally liable. This coverage is commonly referred to as "BI" and is usually written together with Property Damage Liability (see definition below).
Collision: This coverage pays for the damage and loss of use of the policyholder's vehicle resulting from an accident caused by collision with another vehicle or object, such as a sign.
Deductible: The amount predetermined by the policyholder that must be paid out-of-pocket before the insurance company will pay toward a loss.
Gap Insurance: An optional coverage that will pay the difference between the value of the vehicle at the time of a total loss and the amount remaining on the loan for the vehicle.
Insured: Those persons covered by the automobile insurance policy. Examples of an insured are the policyholder (also called the "named insured"), resident relative and someone using the vehicle with permission.
Medical Payments: This coverage pays for medical and funeral expenses resulting from an accident regardless of fault. Medical Payments coverage also will cover injuries to passengers in your car or someone else's car you are driving with permission as well as injuries sustained in an auto accident by you or a family member.
Other-than-collision: Commonly known as "comprehensive," this coverage pays for the damage and loss of use of the policyholder's vehicle resulting from an accident caused by an event other than a collision or overturn. Such events may include theft, vandalism and fire.
Physical Damage: A collective term commonly used to describe types of coverage that apply to damage to your vehicle. These types of coverage include collision and other-than-collision (a.k.a. "comprehensive")
Property Damage Liability: Damage to someone's physical property, including loss of use, for which the policyholder is legally liable. This coverage is commonly referred to as "PD" and is usually written together with Bodily Injury Liability.
Rental Reimbursement: An optional coverage that will reimburse the policyholder for the cost of a rental car if required due to a covered loss. This coverage may pay part or all the cost of a rental car.
Underinsured Motorist: Similar to Uninsured Motorist, this coverage pays for bodily injury sustained by a covered person resulting from an accident with an at-fault driver who does not have enough insurance to pay for the injuries.
Uninsured Motorist: This coverage pays for bodily injury sustained by a covered person resulting from an accident with an at-fault driver who is uninsured or flees the scene of the accident.
Learn how easy and convenient shopping for auto insurance can be. Get your free auto insurance quotes today!
Most people spend time researching before they buy the car that meets their needs. But, they should also spend time researching how to buy the right car insurance policy that meets their driving and lifestyle needs. This prevents them from spending money on coverage they don't need, or not having enough coverage to ensure they're adequately protected.
It doesn't take long to understand the basics of car insurance so that you're confident that you're choosing the right amount of coverage that also fits your budget. The following are details on the six categories of a typical auto insurance policy.
Liability:
Property Damage:
Comprehensive:
Collision:
Uninsured/ Underinsured Motorist:
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Car theft is a crime of theft generally understood to refer to the stealing of automobiles, buses, motorcycles, snowmobiles, trucks, trailers and the like; but not to aircraft, boats, bulldozers, and spacecraft. Motor vehicle theft is a crime that leads to the greatest number of fraudulent insurance claims.
The National Insurance Crime Bureau (NICB) states on their website that, "In the past, vehicle thieves were content stealing cars and trucks the old fashioned way, such as forcing entry and circumventing ignitions. Today, they have new scams for stealing vehicles that are much more difficult to detect. Criminals use fraudulent techniques to steal cars that do not involve smashing windows, disconnecting alarm systems or racing from the scene of a crime."
In almost all jurisdictions, car theft is punishable as a felony owing to the emotional and economic distress it causes to the victim. But, according to the NICB, some of the most common car theft fraud schemes include:
Owner Give-Ups: The vehicle owner lies about the theft of her vehicle and then orchestrates its destruction to collect insurance money. She claims her vehicle was stolen, but then it is found burned or heavily damaged in a secluded area, submerged in a lake, or in extreme cases, buried underground.
30-Day Specials: Owners whose vehicles need extensive repairs oftentimes perpetrate the 30-day Special scam. They will report the vehicle stolen and hide it for 30 days -- just long enough for the insurance company to settle the claim. Once the claim is paid, the vehicle is often found abandoned.
Export Fraud: After securing a bank loan for a new vehicle, an owner obtains an insurance policy for it. The owner reports the vehicle stolen to a U.S. law enforcement agency, but in reality illegally ships it overseas to be sold on the black market. The owner then collects on the insurance policy, as well as any illegal profits earned from overseas conspirators who sell the vehicle.
Phantom Vehicles: An individual creates a phony title or registration to secure insurance on a non-existent vehicle. The insured then reports the vehicle stolen before filing a fraudulent insurance claim. Oftentimes antique or luxury vehicles are used in this scheme, since these valuable vehicles produce larger insurance settlements.
Fortunately, for genuine victims and insurance companies, car theft has been in decline in most states over the last decade. Even so, in order to arrest the crime, most US states require vehicle identification numbers (VIN) be registered with a vehicle licensing authority, making it difficult to resell a stolen vehicle or possess stolen parts.
Liability is one an integral part of coverage addressed in most automobile insurance policies. Understanding the purpose of automobile liability insurance can help determine how much coverage is needed to cover losses for which you are legally liable.
Legally Liable Automobile insurance can include liability insurance coverage for accidents involving bodily injury and/or property damage for which the policyholder is legally liable. It is coverage that pays for injuries and damage sustained by a third party and/or their property for which you are responsible.
Bodily Injury (BI) If you cause an accident and someone is injured, your liability coverage as part of your automobile insurance will pay for their injuries. Minimum amounts of liability are often required by state law, however higher limits are usually available. Policies with split limits (i.e. 25/50/10) of liability separate the amount of coverage available for each injured person and the amount of coverage available for the accident. For example, a policy with split limits of 25/50/10 means $25,000 is the maximum amount payable by the policy for the bodily injury per person; $50,000 is the maximum payable by the policy per accident (the third number deals with property damage, which is discussed below). Combined single-limit policies offer a single amount that is the maximum amount payable by the policy for bodily injury and property damage.
Property Damage (PD) If you cause an accident and someone else's property is damaged, your automobile insurance liability coverage will pay for the damage. Property damage coverage can also include damage to other types of property, such as a sign or light pole.
In policies with split limits (i.e. 25/50/10), the third number indicates the maximum amount payable by the policy for property damage per accident. Combined single-limit policies offer a single amount that is the maximum amount payable by the policy for bodily injury and property damage.
Some states require drivers to carry a minimum amount of liability insurance for property damage. Higher limits are usually available and are always recommended.
You've spent time researching carriers to find the right one for you, one that fits your needs and you can afford. Now it's time to understand the different types insurance that is available, so you can choose the right policy that fits your budget. And we're here to help.
Learn how rates can vary depending on where you live, your credit rating and other factors. Understand how to break down a policy, looking at each piece of coverage and deductible. This will help you to decide how to choose coverage that's designed for the way you live.
Whether you're curious to know if you're getting the best rate and quality of coverage with your current policy, or if you're shopping for a new policy, it's smart to stay informed. This gives you the confidence to know if you're getting the best deal and have the right insurance coverage that meets your need.
TrueQuoteCentral can help you understand insurance by suggesting ways to lower your costs and to shop for policies.
Learn how your deductibles can affect your insurance rate, plus other ways to save money, while also ensuring that you're not sacrificing quality to save on insurance. Being an informed shopper will empower you to find the right insurance company and policy that fits your needs and budget.
Studies have shown a direct correlation between your credit score and the likelihood that you will file a claim. For this reason almost all insurers pull your credit report. Your credit report also shows an insurer if you pay your bills in a timely fashion and have had the same credit accounts for a long time. Someone who does this is considered more stable than someone who pays late and frequently opens and closes accounts. This information is used to create your "insurance risk score," which is one factor that determines your insurance rate.
Tip: Your insurance-risk score is similar to your credit score. If your credit history is not strong, start cleaning it up. If there is unusual credit activity on your account, wait about a month for it to return to normal before shopping for insurance quotes.
The Internet has changed the ways companies do business, and as a result, it's easier than ever for you to shop around for insurance from the convenience of your home, anytime you like. All you need to do is take advantage of resources that are available to not only inform you, but help you to effectively shop for the right insurance coverage that's also affordable.
TrueQuote can help you learn about how to effectively shop for insurance online, what to look for, and how to receive and choose the best insurance quote from competing insurance companies.
Whether you're looking for a new policy or just want to ensure you're getting the best price on your current insurance rate, it's smart to do your research. Being an informed shopper will empower you to find the right insurance company and policy that fits your needs and budget.
If you go to TrueQuoteCentral.com you can type in your information and get a list of comparative quotes. The form takes about 6 minutes to complete. Keep in mind, when you use quote sites, you may not get instant insurance quotes. Some companies may contact you later by e-mail, or call you to discuss your personal needs.
Always remember that you shouldn't always buy the cheapest insurance out there; but to buy the cheapest insurance and still receive adequate coverage and service.
Start shopping right here and learn how easy and convenient shopping for auto insurance can be. Get your free insurance quotes today!
Shopping online for the best insurance quote enables you to receive multiple quotes back from a number of insurance companies. The next step is to then compare those insurance quotes to determine which one is the best for you.
Learn how to comparison shop for insurance online, what factors play into the rates you receive, and how to effectively review each insurance quote.
Whether you've received a few insurance quotes or are just starting to compare them, it helps to understand what to look for. Being an informed shopper will empower you to compare policies and decide on the best car insurance coverage that also fits your budget.
There are several things that can affect the rates of your insurance quote, so it’s a good idea to know what those are before you get that first quote. You’ll also what to know what parts of your insurance coverage you can change to lower your rates, and which ones are harder to work around.
If you didn’t already specify what amount you wanted for your insurance deductible and for your liability limits, then the agent probably chose those for you. Adjusting those amounts on your insurance policy can raise or lower your insurance rate.
When it comes to your insurance, you want to make sure that you are partnering with a reputable, financially stable insurance company.
It's important to learn what to look for in an insurance company, how they determine the rate on your insurance quote and the best ways to work with an insurance agent, so you receive the level of service you deserve.
Whether you already have insurance or are in the process shopping around for a new insurance policy, being an informed shopper will empower you to compare and choose the right insurance company and coverage for you.
One of the founding principles of the insurance industry is that customers or policyholders have to be informed about the financial status of the insurance company from which they have bought their policies. This is essential because that knowledge will help a customer decide whether s/he eventually wishes to buy an insurance policy from the insurance company. The equation is simple: financial strength equals smoother disbursement of claims.
This is where A.M. Best insurance rating comes in, because it furnishes customers with information about the financial situation of a particular insurance company. However, a question remains: how does one know that the information one receives from a rating company is authentic and based on scientific techniques?
A. M. Best, the oldest operator in the insurance industry, offers comprehensive corporate profiles and fiscal details on a large number of insurance companies operating all over the world. And scientific methods are involved at every step of the assessment process, which is based on detailed reviews and a whole range of financial data and information. A company is evaluated taking into account factors such as governmental policies, exchange risks, financial reserves, current interest rates and nation-specific insurance regulations. Once the data has been accumulated, the analysis process begins. This phase involves quantitative and qualitative factors like balance sheet strength, operating performance and business profile.
The quantitative evaluation is founded on the financial reports of the company spanning five years. In addition, A.M. Best insurance rating uses over 100 other financial tests and secondary data. Key sources of information are the annual and quarterly statutory financial statements filed with state insurance departments and the National Association of Insurance Commissioners (NAIC). Other sources include audit reports, loss reserve reports, US Security and Exchange Commission (SEC) filings and confidential information supplied by the company management.
An A.M. Best insurance rating analyst team comprises at least one primary analyst and team leader. The analyst team forwards its findings to an A.M. Best rating committee, which then undertakes a review process. After a decision has been taken on the rating, the client company is informed about the decision. The issuer has the option of accepting the rating or appealing against it. In case of a change in rating, A.M. Best will publicize the matter through a press release. In case of an appeal, the issuer team must present valid reasons to consolidate the rating.
Thus an A. M. Best insurance rating is the result of a complex procedure based on a committee analysis comprising senior officers of the executive committee of A.M. Best. The ratings are reviewed annually and in the interim, A.M. Best representatives keep in touch with the company management to track the current performance of the company. Given the exhaustive nature of the process, there is no scope for malpractice or manipulation and we can safely conclude that the ratings provided by A.M. Best insurance rating are completely authentic and scientifically derived.
The highest rating assigned by A.M. Best is A++ or Superior and the lowest is F, which means the company is in liquidation. The companies are also divided into two broad categories – Secure and Vulnerable. This rating is based on A.M. Best’s Insolvency Studies, whereby Secure-rated companies are expected to be at lower risk of failure, while Vulnerable-rated companies obviously run a greater risk. Moreover, the claim-paying ability of a Vulnerable-rated company is restricted only to the current period, whereas Secure-rated companies are capable of rising above fluctuations in the economy and honor their commitments in the long run.