Disputing the Insurance Company’s Findings

The payment you receive should be adequate for purchasing a car comparable to the one you are replacing. Having your adjuster explain to you how the compensation for your car insurance claim was determined will help you conclude whether the assessment is fair. If you believe the cash value to be unwarranted, explain the reasons why to your adjuster and perhaps you can negotiate a mutual settlement. Receipts you may have for special equipment installed on the car or for specific maintenance and repairs would also be helpful.

If you feel like a compromise is not possible and you do not agree with the cost analysis of the claim, most car insurance policies carry an insurance appraisal clause that allows an individual to dispute the insurance company’s claim by way of an independent appraiser. Likewise, the insurance company will hire their own independent appraiser, and the two appraisers will review the gathered material and try to resolve the differences. If the two independent appraisers cannot agree on certain items, a selected arbitrator will make a ruling on the decision. The dispute ends with a final resolution being made between the arbitrator and one of the independent appraisers.

Understanding Your Insurance Policy

With any luck you will never have to file an automobile claim, but if you do, understanding your car insurance coverage before an accident occurs can save you a lot of heartache if you are in a situation where you need to file a claim.

Moreover, it is more amiable to review the ins and outs of your insurance policy with your agent beforehand when you are not in the middle of an unpleasant claim. The car insurance you purchase is after all designed to protect you and provide peace of mind.

Repurchase From Your Car Insurance Company

Some car insurance companies consider a car totaled if the repair costs is more than 50% of what they consider the value of the car is at the time of the accident. You can choose to repurchase your car from the insurance company. You need to let the car insurance adjuster or claims department know that you want to keep the car. While they still have to pay you for what they consider to be the value of the car at the time of the accident, they of course will subtract any deductible that you would have had to pay should your car have been repaired plus the value they estimate they would have gotten when they sold the car at auction or to a salvage yard. This value is usually determined by the car insurance company obtaining bids on the car as is from salvage yards and utilizing the highest dollar amount.

Repair Your Car

The car is then yours to keep and you may do what you wish with it. Many people choose to have it repaired on their own or some even do the repairs on their own. With the insurance claim check, they purchase the parts to repair the vehicle on their own or they have the repairs done professionally, depending on the damage that was done as well as their mechanical ability.

Ownership

That being said, there may be a problem with retaining ownership of the car once the car insurance company has decided that it is totaled. Since the newer vehicle parts have a higher value, the car insurance company may wish to keep it and auction it off because it’s more beneficial to them financially to do so. In some states, anyone can attend the auctions and purchase whatever they want. However, in other states you must hold a special license to do so. Keep in mind that you will still need car insurance for your car.

When you are looking for car insurance quotes to see the amount of coverage you currently have it is very important to remember that your policy is divided into at least three separate elements. The first part is liability which covers property damage of other people who are involved in an accident involving you. Second there is collision which covers damage suffered to your vehicle when you may or may not be at fault. The third element is medical payments coverages. This is the amount that will be paid to cover individuals who are injured due to your involvement in an accident.

What Does Medical Payments Coverage Cover?

Medical payments coverage is the element of your car insurance policy that pays for the medical expenses of your passengers and the driver of the other vehicle involved in the accident as well as his or her passengers regardless of whether or not you are at fault.

How Much Will My Car Insurance Pay For Medical Bills?

The amount that your insurer will pay is usually set at a fixed price. There are also minimums set by each individual state. Usually the lowest rate is set at $25,000 per incident. This may seem very high but imagine being hospitalized for up to a month. Then it wouldn’t be hard to exceed this figure at all.

Are Pedestrians Covered Under Medical Payments Coverage?

Pedestrians are also covered under medical payments coverage. This includes you and any member of your household or an individual who is involved in an accident when you are the driver of the automobile.

How Much Medical Payments Coverage Should I Carry?

You should carry at a minimum $50,000 dollars in medical payments coverage. This will be higher than many of the car insurance state minimums but be sure to check the state you do live in to make sure you are at the legal threshold of allowable coverage.

Are There Any Statues Of Limitations To Medical Payment Claims?

There is a three year statue of limitations to receiving payment for injuries suffered in an automobile accident. This is so car insurance companies can more readily estimate their costs and also after three years it can be very difficult to prove the injuries are related to the accident in question.

Review your Car Insurance Policy

It is a good idea from time to time to review your current policy and be sure that your medical payments coverage is up to date. Car insurance is a major expense but in the long run offers security if you should ever need to use it.

Some policies additionally cover a loss of wages during the period of the injury, child care expenses, and possible funeral expenses. Many will find that these costs are not covered by their health insurance plan. It is a true must have when you are considering the consequences of what can happen if you do not have PIP coverage. A single car accident with injuries can run up costs to the hundreds of thousands of dollars for just days in a hospital. Health care costs have been and will continue to explode and an accident could possibly put a person into bankruptcy without PIP coverage. When shopping for car insurance quotes, it is incredibly important to ensure that PIP is included.

Importance of PIP

Those who lack familiarity with PIP may fail to see the importance of its inclusion on your car insurance policy. This additional insurance offering is no-fault which means that your insurance carrier is not legally able to increase your policy rates based solely upon a PIP claim. The ability to file a claim is also not dependent on who is at fault in the accident. If there are injuries on a policy with PIP, your car insurance will cover it.

PIP Options

You are able to choose an appropriate amount of coverage to fit your life and personal needs. You want to be sure that the amount that you choose will cover all of your injuries as you are responsible for anything over the specified limit. PIP protection generally covers the driver, but may be available to additionally include other occupants in the vehicle at the time of the accident. Also, it will cover any pedestrians who are hit by the insured’s vehicle. Your car insurance broker can provide you with the specific offerings that are available for your vehicle and applicable state. Some states do require that PIP coverage is included in all policies for motor vehicles that are sold within the state.

Impact of PIP on You

PIP can mean the difference between financial security and possible bankruptcy. Although we do not like to consider that we may be injured in an accident, it is a real possibility. Protecting yourself and your family is a priority and it is something that you should cover in detail with your insurance broker. Research your options for car insurance and ensure that you get a complete policy that meets all of your needs including PIP.

Who is covered?

The driver of the car and his family members are covered under the policy. So if someone in your household is stuck by a car as a pedestrian or injured while getting in or out of the car there medical expenses would be covered. Passengers who are not on the policy are covered if they are riding in the car but not as pedestrians.

Exclusions

There are some things the medical payment coverage on your car insurance does not cover. Those are called exclusions and are listed in the policy. Typical exclusions include unauthorized use of your car. If some car jacks your car they are not covered.

Not A Car

If you are injured while riding in a vehicle with less than four wheels such as a motorcycle or scooter you would need a separate medical payments policy for that motorcycle. Vehicles used as a residence are normally excluded. An example is a pickup with a camper that is being used as a residence.

Racing

For obvious reasons if you are racing your car in an organized race or even practicing for one you become high risk to the insurer so this is excluded in medical payment coverage car insurance policies. Special insurance is needed to race a car.

Other Exclusions

There are other more dramatic events that could cause injuries in your car that are also excluded. These instances may include wars, riots, rebellion, revolution, nuclear explosions, and radiation exposure. Although your medical coverage may not be the first thing on your mind if you are unfortunate enough to experience one of these events you should know that they are excluded.

Limit Of Coverage

Your policy also excludes any expenses above the limit set in your policy. Usually that limit is around $10,000 although you can choose various limits at the time you buy the policy. The limit of medical benefits coverage is stated in your car insurance policy.

Other Car Insurance Policies

Your medical expense coverage will be the secondary payor if you are injured in someone else’s car. Once their insurance has paid up to the policy limit your policy would begin to pay the balance up to the limit of your policy.

Conclusion

Understanding the exclusions in the medical payments portion of your car insurance policy will help you to be financially prepared in case you must file a claim.

Therefore, the car is not necessarily yours to do what you will with it. The lease is a legally-binding obligation between you and the dealership. This means you have an obligation to maintain the vehicle in top-notch condition, as well as fully reimbursing the dealership and/or finance company for any damages that might occur to it while it is in your possession. So how would this affect your insurance policy?

Car Insurance Types

Most people know and understand that car insurance policies are designed to meet state and federal regulations to ensure that the driver of the vehicle, other drivers on the road, and property owners are protected in the event of an accident. Auto accidents are not just a “what-if” scenario – they happen daily.

Some states allow “liability only” insurance coverage. This type of policy is great for people who own their own vehicle and can afford to fix any damages that might occur to it or choose not to do so with no legal obligation to anyone else to repair or replace the vehicle or parts if they are damaged.

While insurance policies differ, most comprehensive policies will cover the repair of damages, or reimburse the driver fully for the current blue book value of the vehicle if it has been deemed by the car insurance carrier to be “totaled”. Some policies even provide “gap insurance” for drivers who have financed their vehicle and owe more to the finance company than what the vehicle is worth.

Be Prepared

When making the decision to lease rather than purchase, it is important for you as a consumer to get the facts from both the dealership and your insurance carrier. Discuss the terms of your lease before signing on the dotted line – ask the dealership what kind of insurance coverage you are required to have.

Verify the information with any second or third parties involved. Lastly, check several car insurance companies in your state to compare pricing and coverage – not all policies are created equal and there may be some items not covered on one policy that are covered under another policy.

Doing your research ahead of time will help prevent some of the hassles that can come with leasing and purchasing car insurance.

When a vehicle covered by liability car insurance is involved in an accident, and the driver of that vehicle is deemed responsible, the liability insurance will pay for the other vehicle and the injured people in that vehicle. If the insured driver damages other property such as a home or lawn, the liability insurance will pay for those damages, too. Liability insurance will not cover damages to your vehicle or pay for medical costs for the passengers in your car if the accident is your fault. Liability insurance will only cover damages and medical bills in the amount of coverage you are carrying, so it is important to get car insurance quotes and information about liability coverage from your carrier before you make your choice.

There are two parts to automobile liability insurance: Bodily injury and property damage. Most states require a minimum amount that you must carry on your vehicle. The minimum varies from state to state. They set the minimum low for the prices of what it would cost in medical bills and auto repairs in these times, with this economy. Hence, it is a wise move to carry more than the minimum state requirements.

If You Are In An Accident

If you are involved in an accident there are two very important calls you need to make at once. First and foremost call the police. The second call you want to make is to your insurance company. It is very important that you report the accident immediately. Get the other drivers car insurance information. Your insurance company will want all that information. Take pictures of the accident if possible. This is something else your insurance company will find useful especially if it is not clear who caused the accident. Insurance companies determine who is at fault for the accident by the police report, your statement of events, the statements of the other driver, photos of the accident, and when available, witness statements.

What If You Cause The Accident

If the accident is found to be your fault, your car insurance will pay property damages and bodily injury damages to the other parties involved. If the cost of the damage or injury is more than your coverage, you must pay the remaining amount. If a lawsuit is filed because of a serious injury or death, your car insurance company will defend the lawsuit for you. They will provide the legal council needed and also manage that case then on for you. Having your automobile covered under full coverage protects your car and your passengers in case of an accident. It’s something you should think about and discuss with your car insurance company.

What Is Car Insurance?

For most drivers, car insurance is simply a policy they have to purchase in order to comply with the law. There are various types of coverage, including liability insurance and collision insurance. In most states, liability coverage is the minimum that drivers need to have for their car insurance policy. When a driver hits another driver, the at-fault motorist is required to pay all damages that the other one incurs. With liability insurance, the at-fault driver can cover those expenses through their policy, instead of using their own money. On the other hand, collision coverage covers all the expenses of fixing the at-fault driver’s vehicle. There are plenty of other types of auto insurance that cover various situations when an accident happens.

Who Are The Main Providers Of Car Insurance?

Most people know plenty of different auto insurance providers, and some companies are better than others. Luckily for motorists, there are local and national car insurance companies, so there are a ton of different choices for each person. Some of the better known providers include Geico, Progressive, and State Farm. Of course, there are over a hundred others. When looking for a provider, it’s smart to compare a handful of quotes from different companies to find the best rate. You can do this in a matter of minutes by using our form above. Also, you should pay close attention to reviews of the provider to avoid choosing one that has poor service.

What Happens If You Don’t Have Car Insurance?

If a person is involved in an accident and doesn’t have car insurance, then tons of things can happen. For starters, if they caused the accident, then they have to pay for the other driver’s expenses with their own money. Expenses include the damaged vehicle, hospital bills, and any lost wages due to the injury. For most people, these bills are too high to be able to pay them out of pocket. Also, the person without insurance would have to fix their own vehicle with their own money.

Should a police officer pull over someone without insurance, they will most likely get their car impounded and receive a citation. The fines and penalties of not having insurance are brutal, so everyone needs car insurance if they intend to drive.

The age old rule for car insurance quotes is there are two major life changes which can lower your rate: getting married and turning 25. These are both said to indicate a higher level of responsibility and therefore, a lower probability that you’ll have an accident. But do all car insurance companies abide by these golden rules?

All car insurance companies will ask for your date of birth when you are receiving quotes, but a surprising number of them do not even ask your marital status. How can you receive a discount for something they never even ask for? With these companies, the discount comes in the form of a multi-vehicle discount. This means that once you and your spouse combine your vehicle policies into one, you may receive a small discount for having two or more vehicles on one policy.

Multi-Vehicle vs. Marriage Discounts

But does a multi-vehicle discount compare to the savings of a marriage discount? Really, that depends on your personal situation. The age of you and your spouse, how many tickets or accidents you have between you, and how long each of you has had car insurance all factor in to your overall quote. In most cases, a couple over the age of 25 with a clean driving record and at least three years of uninterrupted coverage, can save as much as 50% once they are married. The average savings for that same couple who only receives the multi-vehicle discount is about 25-30%.

A couple who is under 25 and has a few accidents, tickets, and a break or two in coverage in their history may not save much at all with a marriage discount. The discount for a multi-vehicle policy will still be about the same, though, so it may be in their best interest to go with that until the blemishes clear off their records. Car insurance companies always look at the big picture when delivering a quote, and marriage is only a small part of that big picture.

Shopping Around

If marriage is in your near future, or recent past, it may be a good idea to shop around for insurance. The company that either you or your spouse is currently with may not be the best option anymore, as switching to a new car insurance company may save you more money.

The largest factors to look at when deciding which company to go with is what is the average savings for a multi-vehicle policy versus what is the average discount for a married couple. Remember that in some cases, you may even be able to stack up these car insurance discounts for maximum savings!

Determining the reliability of a car insurance company can mean a variety of things to many different people. Is the company reliable when it comes to payouts, are the premium payments in line with comparable car insurance quotes and is there an 800 number that is easily accessible 24 hours a day, 7 days a week? All these questions and any other fears need to be addressed before settling on an insurance provider.

What is My First Step?

It is best to first decide what type of coverage you need. One way of doing this is by going on-line and studying the different types of car insurance provisions. Know the difference in coverage terms like bodily injury, property damage, comprehensive, uninsured motorist, and underinsured motorist just to name a few. Research these items carefully so there are no surprises later on.

Is there Really a Difference Between Insurance Companies?

While on the surface offers may sound similar, this is far from the truth. Find the companies you would like to research and narrow them down to no more than five or six and study their statistics carefully. Have there been any complaints against the company? Is there a question about their solvency? Are they prompt on pay-outs? You can find this information by visiting your state’s department of insurance website. Use the complaint ratios of any providers you are looking into as a resource for your decision.

Should I Seek Other Opinions?

Ask friends and relatives about their car insurance providers and their relationship with them. An important source might be a visit to bodyshops. While this may seem very time consuming, keep in mind that you will be relying on this important decision for car protection should you need it. J.D. Powers is among the sources for reliable car insurance ratings. Don’t assume that a company has your best interest in mind. Research as many sources as you can.

Is there a Benefit in Going with an Independent Agent?

An independent agent works as a broker representing several car insurance companies. They have no vested interest in a certain company and will seek out the best benefits for you. You can also change carriers without changing your agent if you so desire down the line. Still some like the protection they feel that a reliable mainstay car insurance agent offers with their high-profile.

In the end the decision is all yours. Never feel pressured by an agent to act. Tactics like the hard-sell should send warning signals that this company is not right for you. As you can see, there is a lot to think about when determining a reliable car insurance company to suit your needs.