Car Insurancoe

InsuranceNavigator.com is for Sale for 2450 Euro

Our Partners

Ads on: Special HTML

Car Insurancoe

Uninsured Motorist Insurance

Written by MKlaebel

Tuesday, 14 July 2009 13:03

When drivers get on the road, they rarely think about whether or not the person in the vehicle next to them or behind them has vehicle insurance. If a driver does stop to consider this, he or she may assume the person does have insurance because it is typically a legal requirement. The driver may also believe this because, after all, he or she is responsible enough to have insurance so it stands to reason the other motorists on the road would be equally responsible. The sad truth of the matter is statistics show 1 out of 7 drivers at-fault for a vehicle accident is, in fact, uninsured.

A brief definition

Uninsured motorist insurance is usually an addition to a person’s auto insurance policy. It is the part of the policy which protects the insured driver from uninsured drivers as well as hit-and-run drivers. This insurance may be combined with a type of insurance known as underinsured driver insurance.

The importance of it

If drivers assume other motorists are also insured, they may not consider this addition to their insurance policy important. It is important for all insured motorists because of the ramifications of being hit by an uninsured driver. If the uninsured motorist is at fault, he or she does not have the coverage to pay for any damages caused by the accident. This leaves the insured motorist to pick up the costs of damage to his or her own vehicle and any personal injuries he or she sustains. While it is possible to pursue the uninsured motorist through civil lawsuits to help pay for damages, the likelihood of the uninsured motorist being about to pay any money awarded by the court is quite small. This isn’t even taking into account how long a civil lawsuit may last. It can take a few years for such a lawsuit to receive a judgment.

How the coverage helps

If an insured motorist with this coverage is involved in such an accident, he or she will find this policy add-on useful. Unlike collision insurance which only covers damages to the vehicle, uninsured motorist insurance covers both damage to the vehicle and the medical costs of any accident-related injuries. Depending on the policy, it may even cover the expense of a rental car while the damaged car is being repaired. Basically, if the at-fault driver is uninsured, the insured motorist’s insurance company takes the place of the uninsured motorist’s insurance company.

But what about the cost?

In today’s economy, a person can’t help but consider the cost of everything, including add-ons to a vehicle insurance policy. Because such coverage may seem unnecessary or a person is willing to take his or her chances with the uninsured motorists on the road, the expense of any additional coverage may be deemed superfluous. The motorist should consider the average additional cost per month is around $15. When held up against the cost of a new car and/or expensive hospital bills coming out of pocket due to an uninsured motorist, fifteen dollars a month may seem an affordable price for peace of mind.

Advantages and Disadvantages of No Fault Auto Insurance

Written by MKlaebel

Wednesday, 10 June 2009 18:51

Normal 0 MicrosoftInternetExplorer4 st1\:*{behavior:url(#ieooui) } /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman";}

Auto insurance is required by law in most of the 50 United States. However, some states have a form of auto insurance that stands out from the rest. This is no-fault auto insurance.

What is no fault insurance?

No fault insurance is a form of insurance that pays benefits to the insured regardless of who is at fault. This means that if you get into a car accident and it was your fault, your insurance would still pay for certain medical costs, lost wages and, to some extent, replacement services. These are services that would not have been required if not for the injuries a person sustained. For instance, a lawn service to cut the yard, when the injured individual usually handled that task. In order to have this type of insurance, you are required to carry at least a minimum amount of coverage.

The purpose of no fault insurance is to keep premiums low and reduce accident related litigation. Several states require this type of insurance, including Florida, Michigan, New York or California. However, it is best to talk to an agent to determine if your state has no fault insurance. The laws frequently change, and a qualified agent will know about new developments in your area.

Advantages of no fault insurance

Those in support of no fault auto insurance cite the following advantages to this type of coverage:

Lower premiums
Reduced number of accident related lawsuits
Pays medical costs even if other party was not insured and cannot pay damages
Provides basic medical coverage for people injured in car accidents

Disadvantages of no fault insurance

Critics of no fault insurance also have a list of reasons why it is not an advantage to have this type of coverage:

It does not adequately punish at fault drivers
Does not provide coverage for property damage
The coverage does not pay for pain and suffering, loss of consortium or other injury-related damages
The limits of the coverage make it difficult to recover a settlement for life-altering damages

Not all states have pure no fault insurance. Pennsylvania and New Jersey have a modified form of it, instead. Their plans allow you to choose whether to carry coverage that prohibits suing at fault drivers or not.

If you get into an accident with no fault insurance, you are still liable for any traffic ticket you receive. Also, if the injuries in the accident are severe enough, you can still be sued if you are at fault.

If you live in a no fault state, talk to a qualified insurance agent to find out if this is the right coverage for you and your family. As with all types of insurance-related, no-fault coverage and limitations vary from state to state, and depend on the state of vehicle registration. Questions about this coverage should be directed to the insurance company you usually use for your insurance needs.