The state of Florida in US urges all its residents to carry minimum personal injury protection coverage along with auto accident insurance coverage. This means that if any accident in Florida occurs, then PIP or Personal Injury Protection covers the health insurance of car insurance holder, family members and under some circumstances, they also cover the property loss. This policy ‘PIP’, regardless of other factors covers a large percentage of medical bills and lost wages due to injury and hospitalization.

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Now, let us look at those specific scenarios where fault of the accident does matter. The state of Florida was just an example of ‘no fault’ insurance policy. If the driver is at fault and has bought personal loss to you and your loved ones, then the driver’s bodily injury protection is triggered. This is a special type of insurance liability that covers present and future financial damages. It also covers intangible losses and sufferings like pain and mental agony. This essentially means that if a negligent driver causes damage to you or your loved ones, then BI or Bodily Injury would cover it. Most people are unaware of this scheme and don’t really claim. Only people, who are knowledgeable about these claims and hold a policy, can redeem a limit of USD 10,000. More basic info on basic insurance coverage can be found here:

http://www.progressive.com/customer-service/car-insurance-definitions/

Another important insurance coverage (link to internal) in this aspect is uninsured or under-insured motor coverage insurance that can be purchase by most drivers. This policy protects people from the harm that is caused because of other’s negligence on the road. This insurance steps in if the other party doesn’t possess insurance or their insurance is insufficient (aka under-insured) to meet the expenses. This policy caters to a household and covers all the relatives in the same household. Uninsured or under-insured motorist coverage (“UM,” for short) is important coverage for all Florida drivers to purchase. Whereas BI coverage provides protection if you negligently injure another, UM protects you and your family from harm caused by others. When a negligent driver carries no auto policy, or when the available BI insurance of a negligent driver is insufficient to cover all of your damages, UM insurance steps in. Typically, a UM policy covers you and any relative residing in your household. The scope of what UM coverage pays for mirrors BI coverage. This policy also covers the property loss but under some circumstances.

Most drivers and people don’t understand the specifics of these policies unless they meet an accident. Therefore, it’s always important to have an auto insurance coverage for the unforeseen future.

What’s Liability Coverage?

Consider liability coverage as the basic level of protection offered by an insurance company to protect other parties involved in an accident in which you caused. There are two basic types of liability coverage: bodily injury and property damage coverage. Assuming that you are responsible for an accident makes you the at-fault driver, which means your insurance company is liable for paying certain damages incurred to the injured party. Bodily injury covers the following damages from your insurance company:

1. Bodily harm
2. Sickness or disease as a result of the accident
3. Required home care following the accident
4. Loss of services (the injured party’s loss of income)
5. Death

Property damage is also included in liability coverage from your insurance company. Property damage liability covers damages to the other person’s vehicle, property, or any belongings damages in the event of the accident in which you were at fault.

Property damage does not cover the costs to repair your own vehicle. Instead, it’s necessary to purchase such policies as comprehensive coverage and physical damage coverage from your insurance company. For motorists with an outstanding loan on vehicles, physical damage coverage is usually a requirement.

What Liability Insurance Doesn’t Cover

Before purchasing a liability policy from an insurance company, it’s important to understand what’s not covered. Physical damage to your car such as body repairs or costs for replacing a totaled vehicle are not covered by your insurance company. Any medical expenses that you incur due to an accident are also not covered.

It’s also important to keep in mind that if the other party also carries liability-only coverage, chances are each will be responsible for their own bodily injury and property damages.

When to Consider Liability-Only Coverage?

If you’re considering liability-only coverage from your insurance company, there are a couple things to keep in mind.

1. Value of your vehicle – If your car is an older model with a lot of miles, chances are the value of the vehicles has significantly decreased; therefore, liability-only may be a cost-saving option.
2. Personal budget – Obviously, it’s important to purchase coverage that you can actually afford from an insurance company. Missing payments and lapses in coverage are a sure way to loose whatever coverage you do have.

For some, liability-only is the most practical coverage as it’s an affordable option to meet the required state motorists’ regulations. If you have questions about whether or not liability is the right choice for you, contact your agent or a reputable insurance company for more information.

Related Links to Insurance Company Liability Coverage:

-http://www.carinsurancelist.com/liability-insurance.htm
-http://www.allstate.com/auto-insurance/auto-insurance-coverage-options.aspx

There are several conditions and circumstances in which insurers determine drivers to be considered a higher risk than other drivers.  In most states high risk drivers must also abide by specific state Department of Motor Vehicle (DMV) guidelines in order to maintain driving privileges.

Are You a High Risk Driver?

Car insurance companies automatically classify you as a high risk driver if you find yourself in one of the following scenarios:

• 70 years of age or older
• 20 years of age or younger
• Have a history of repeated traffic accidents or moving violations
• Driver’s license were revoked or suspended
• Being at fault for an accident while driving uninsured
• Charged with a DWI or DUI
• Other serious traffic violation(s) requiring SR-22 Insurance.

What’s SR-22 Auto Insurance?

The term SR-22 Insurance is somewhat of a misnomer.  In reality, it’s simply a term that is associated with high risk auto insurance policies that require drivers to complete a SR-22 form.   A SR-22 filing is a paper or electronic certification verifying to the state that as a high risk driver, you have a car insurance policy which covers the state’s minimum limits of liability.

Contingent upon the state and seriousness of the violation, however, typically SR-22 filings are required for three years.  Upon cancellation of the policy before the SR-22 cessation date, your car insurance provider is required to file a SR-26 form alerting the state you’re no longer an insured driver.

Filing a SR-22 Insurance Form

In most states the SR-22 certification of financial responsibility is required to be submitted to the state’s DMV following an accident in which you were involved with no coverage or a significant number of driving violations.  If you’re required to complete and submit a SR-22 form, you will receive notification from the state’s DMV.

While the majority of states have strict vehicle insurance policies, the following states don’t require filing a SR-22 form:

•    Delaware
•    Kentucky
•    Minnesota
•    New Mexico
•    New York
•    North Carolina
•    Oklahoma
•    Pennsylvania

For drivers residing in states that do require a SR-22 filing, your car insurance provider is typically responsible for submitting the appropriate certification paperwork to your state’s DMV to verify your policy coverage.  Upon receiving the SR-22 form, DMV restores driving privileges; however, if your car insurance lapses or cancelled during the required period of a SR-22 filing, insurers are legally required to notify DMV in which license may be suspended or revoked again.
Ask your local agent if you have any questions or concerns about high risk car insurance or contact your state’s DMV for more information on SR-22 car insurance.

References for High Risk Car Insurance and SR-22:

http://www.carinsurancerates.com/high-risk-auto-insurance.html
http://www.thegeneral.com/car-insurance/basics/high-risk/

With the seemingly infinite number of competing insurance coverage providers vying to win over new customers while retaining loyal policyholders, there’s a lot of confusion between fact and fiction. Although word of mouth is a powerful marketing tool, dissatisfied or confused customers may share unreliable information to family, friends, or co-workers when offering advice on insurance coverage. The following are three common myths regarding vehicle insurance coverage:

Red Car vs. White Car

We’ve all heard that red vehicles cost more to insure, but is that exactly true?

Fiction: The color of a vehicle, specifically cheery red, doesn’t cost any more in order to purchase insurance coverage.

Fact: The make, model, and year in which the vehicle was manufactured are considered factors when calculating premiums.

Perhaps the myth evolved from the fact that while red vehicles don’t hike up premiums, a red sports car is a different story. Insurance companies tend to look at sports car with higher premiums in mind due to the fact they are often more expensive to repair and involved in more accidents.

Popular Insurance Coverage Providers are the Best

Just because your favorite actor is promoting an insurance coverage provider, that’s not really a good incentive to purchase a policy.

Fiction: A well-known personality representing a company wouldn’t mislead customers about car insurance coverage.

Fact: Actually, it simply means the insurance company has enough money to pay a popular figure to be a spokesperson for their company and repeat whatever is on the script.

The only way to really determine a company’s performance is do some independent investigation. The first place to begin is the Better Business Bureau. Online insurer rating agencies are also a great tool to educate customers when opting to purchase insurance coverage including:

•    A.M. Best
•    Fitch Ratings
•    Moody’s Investor Service
•    Standard & Poor’s

Lawsuits Can’t Exceed the Amount of Policy Limits

Think you can’t be sued for unlimited amounts of money if you’re responsible for damages incurred in an accident? Think again!

Fiction: Many policy holders believe that their insurance coverage acts as an umbrella in the unfortunate event of a lawsuit, protecting at-fault drivers from being sued for amounts exceeding policy limits.

Fact: The true is policy holders can theoretically be sued for any amount to recover damages received in accident, often awarded by a jury. For additional protection against potential substantial lawsuits, opt for a personal umbrella policy or higher liability insurance coverage.

While there are numerous myths swirling around insurance coverage it’s always important to direct any questions or discuss concerns with your local agent.

References:

http://www.thetruthaboutinsurance.com/top-10-auto-insurance-myths/

Does your policy consist of minimum liability coverage required by your state?

The Compulsory Financial Responsibility Law of California requires every owner of a motor vehicle must be financially responsible for their actions. The minimum liability insurance you’re required to purchase are 15/30/5. That means, if you meet with an accident for which you were found to be legally liable, you’re required to pay $15,000 for injury of one person or $30,000 for all persons in an accident and $5,000 for any property damage. According to the insurance laws of this state, you must carry the statutory limits of minimum liability coverage else you may be charged sever penalties.

Are you carrying the proof of insurance?

As per the laws of your state, you must carry a proper proof of insurance while you’re driving. It’s because, any time a traffic police can ask you to show the poof of your auto insurance. However, your state laws also allow you to get your vehicle self insured. In order to do so, you must carry a letter authorized by the California departments of motor vehicles (DMV).

Are you ready to shoulder financial responsibility?

Other than purchasing the minimum liability insurance coverage, you’re also required to provide financial responsibility if you meet with an accident. This law has been implemented to remove all the uninsured vehicles from the roads of the state. You have to obtain a surety bond or a certificate of self insurance from DMV for $35000 so as to meet the legal requirements under this law.

Thus, while you’ll purchase the liability coverage, you must try to invest more amount. It’s because, if you meet with a major accident, then the benefits that you’ll receive after a claim may not be sufficient to cover your entire damages.

Understanding How Points Impact Car insurance coverage

The Department of Motor Vehicles (DMV) applies a point system to reflect any incurred driver infractions. Car insurance coverage and premiums are based on your driving record, and any traffic violations on record.  Obviously the more points you have on your record, the more you can expect to pay for car insurance coverage.

The point system varies among states and car insurance coverage providers when calculating points incurred from traffic offenses.  In general, however, major infractions carry the maximum amount of points that go against your driving record.  For example, a DUI may carry up to 12 points, whereas a speeding ticket may only rack up 2 points.  Insurance providers typically review your driving record about twice a year or whenever your policy is up for renewal.  Traffic violations remain on your driving record for 3 years, although the duration also varies according to state laws.

Also depending on the state and infraction, it may be possible to attend a defensive driving course to erase points from your record, as well as prevent your car insurance coverage rates from dramatically increasing.  If you accumulate a specific number of points within a certain time frame, don’t be surprised if you find your license suspended.

Tickets Sure to Catch Your Insurer’s Attention

Due to various state motor vehicle laws, there’s nothing set in stone regarding what does or doesn’t affect car insurance coverage, however, the following tickets are almost always a guaranteed to negatively impact your vehicle insurance coverage:

1. Driving under the influence of alcohol or drugs
2. Responsible for an accident
3. Reckless driving
4. Racing
5. Intentionally fleeing the police
6. Leaving the scene of an accident
7. Driving with a suspended or revoked license
8. Speeding  (assuming it’s your first in 3 years)
9. Driving illegally on a one-way street or wrong side of the freeway
10. Driving without insurance.

Tickets that Incur Less Points

While the tickets listed above carry the most points that go against your auto insurance coverage rates, the following infractions have a lesser impact on premiums:

1. First speeding ticket
2. Driving with an expired or restricted license
3. Expired vehicle registration
4. Driving in a HOV lane
5. Failure to wear seatbelt
6. Failure to secure a load on your vehicle
7. Broken tail light or cracked windshield
8. Loud exhaust/muffler
9. Littering while moving.

It’s always a good idea to check with your car insurance coverage provider to review your driving record periodically or if you have questions or concerns.

Related Articles on Car Insurance Coverage:

-Car insurance coverage definitions
-Department of Motor vehicle and auto insurance
-How tickets affect your car insurance coverage

If you have ever been in an auto accident, then chances are you have a greater appreciation of your auto insurance and provider. Yes, auto insurance can be expensive, but so is the alternative. However, as the cost of living continues to rise, perhaps you are considering lowering the amount you spend on auto insurance coverage. While this is a plausible budget solution, be sure that you have made sure your auto insurance coverage includes the basic forms of protection. There are 7 types of auto insurance coverage that you should have. To help you determine if you have the insurance coverage you need, here is a basic description of each type.

Types of Auto Insurance Coverage

•    Property Damage Liability– This type of insurance coverage protects you if your vehicle causes damage to someone else’s property. Although this is most often their vehicle, it also covers structures, landscaping elements or other property.

•    Bodily Injury Liability – This policy covers other people’s death or bodily injury for which you are responsible. In addition, it can be used to provide legal defense if another party involved in the accident take you to court. Claims that pertain to bodily injury lawsuits include medical bills, loss of income and pain and suffering of the other involved party, not you personally. Liability insurance coverage is required in most states.

•    Collision Coverage – This type of insurance coverage is for vehicular damage caused when your automobile hits, or is hit by, another vehicle or object. It pays to repair your vehicle, less the amount of the deductible you choose. This form of auto insurance coverage is not necessarily required, except in cases where the vehicle is rented or leased.

•    Underinsured Motorist Bodily Injury – If the person who hits your vehicle has insufficient insurance coverage to provide for injuries, death or damages to your family and passengers, this insurance policy makes up the difference, up to a pre-set amount.

•    Comprehensive Insurance Coverage – This policy protects your vehicle(s) and occasionally those of someone else (scenario depending) in situations other than a collision. Examples of this are damage caused by flood, fire, animals or theft. While it is not required to have collision insurance, if you rent or lease a vehicle, most of these companies will require it.

•    Uninsured Motorist Bodily Injury – When you are not at fault for the accident, but the offender has insufficient auto insurance coverage this policy will cover members of your household and passengers for injuries, damages or death caused by the other driver’s negligence. This is also used in scenarios where the other driver has no insurance.

•    Uninsured Motorist Property Damage – This policy is applied in situations where the offender caused property damage and has none/minimal insurance coverage. It typically pays up to a specific amount (varies by state) based on the policy.

Having sufficient insurance coverage is simply part of being a good driver. Yes, it is an expense but it is not something that you can afford to skimp on. If you are shopping for new auto insurance, do your homework carefully so that you have all the auto insurance coverage you need.