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Archive for the ‘Liability Insurance’ Category

The situation is like this:
I have Liability Insurance attached to my own car, but I am driving other car (for example my friend’s or rental car). If I hit somebody’s car when driving that other car, will my liability insurance cover the damage of that car that I hit?

It depends on the state, but in general, insurance follows the car, not the driver, so the vehicle’s Insurance would provide primary coverage. If you are driving a rental, then no, liability coverage only is not sufficient, you will need to purchase the additional collision and comprehensive coverage from the rental vendor.

Perhaps the most commonly purchased type of insurance is automobile insurance, also called driver’s insurance or Car Insurance. Although laws vary somewhat, virtually all states today require drivers to carry some sort of automobile insurance to legally operate a vehicle on public roads. The penalties for driving without insurance can range from fines to a suspended license or, in the case of repeated infractions, possibly even a short jail sentence. Given that driver’s insurance is required in pretty much every state, it’s worth having some basic knowledge about the subject.

Types and levels of Coverage

The type of insurance coverage a person needs, and how much they will pay for that coverage, vary depending on a number of factors, such as the age of the driver, his or her driving record, the age and value of the vehicle, the dollar amount of the coverage, and whether the vehicle is fully paid for. While Auto Insurance can get pretty complex, there are four types that everyone should be aware of.

Liability coverage is the most basic type of coverage; it protects the driver against any claims that might be brought after an accident or other incident that is the driver’s fault. This is usually the minimum coverage that a driver needs to be considered insured. Liability insurance usually has the lowest premiums, but it doesn’t cover any damage to the driver’s own vehicle; thus a lower monthly premium needs to be balanced against the risk of a potentially large financial burden. Also, most loan lenders require a driver to carry comprehensive coverage until the borrower has paid off the loan in full.

Collision insurance covers part or all of the cost of repairs to the driver’s vehicle in the event of a collision, based on an estimate of the project cost for the repairs. While collision insurance can definitely pay for itself in the even of a car crash, the monthly premiums are higher than simple liability. Most policies are also subject to a deductible, which means that the policy carrier is responsible for paying a set amount before the insurance company pays. Deductibles vary widely; generally speaking, though, the higher the deductible, the lower the monthly payments, and the lower the deductible, the higher the monthly payments will be.

Comprehensive coverage is typically required for vehicles that are still in the process of being paid for. Many vehicle owners also carry comprehensive coverage for expensive or otherwise valuable vehicles. Comprehensive coverage covers damage that isn’t the result of a collision – fire, theft, vandalism, and so on – although the exact items covered can vary quite a bit from one policy to the next.

Uninsured Coverage protects you if an uninsured or underinsured driver hits you or your vehicle. Although Insurance is a legal requirement in most places, that doesn’t mean that everyone on the road is insured. This type of coverage means that you won’t get stuck with the repair bill if someone less responsible than you involves you in an accident.

Each type of insurance is available at several different levels of coverage; the higher the coverage (in dollars), the higher the premium will be. Premiums will also increase if the driver is involved in an accident or receives tickets for traffic infractions. Additionally, premiums are higher for males than for females, for younger drivers, and for drivers in urban or higher-crime areas. Despite this, however, automobile insurance is a necessity for any responsible driver.

Martin Lukac
http://www.articlesbase.com/insurance-articles/what-you-may-not-know-about-automobile-insurance-138993.html

Parents can consider Car Insurance as expensive. But when the safety of your children is on the line, the cost does not really matter at all. However, there are factors involved when deciding to whether to include your children when getting a policy or purchase a separate one. And sometimes, the decision to make is a bit confusing.

To make your decision making easier, you have to weigh the following factors and decide which is most advantageous to you:

Cheaper rate – Auto insurance companies always offer cheaper rate when the added vehicle’s insurance is purchased under the parent’s policy. Also, it is assumed that younger and single drivers are more prone to accidents than older and married ones. So if your child will buy auto insurance under his or her name, he or she would certainly pay more money.

Discount – If you own one car in the past and have added another one, you can certainly have a multiple car discount under the same company. Added to that, you can also have a significant great student discount if your child is still in school.

Higher limits of liability – When you purchase your child’s auto Insurance under his or her name, your natural tendency is to lower the premium and thus, lowering the limits (regardless of who is going to pay). However, if you decide to add your child’s vehicle under your policy, your child’s vehicle would automatically assume the same limits of your vehicle’s coverage. Of course, since you have personal assets, you can have higher limits of liability and thus making your child’s vehicle more covered under your name.

Control – Given that you own the policy, you will certainly have the first hand knowledge on the communications and notices released by the auto insurance company.

Liability and Responsibility – In the event of an accident and your child is at fault, you will assume the whole responsibility if his/her auto insurance is under your policy. There is a possibility that your assets will be exposed. You can also be sued in the event of an accident even if your child is to blame. One the other hand, you can spare yourself with all of these if you decide to buy him Auto Insurance under his or her name.

Surcharges – Since you own the policy, once your child is involved in an accident or have been cited with traffic violation, all the negative effects will go against your policy and thus, crippling your status as a policyholder. Sometimes if the offense is great or the incidents are frequent, there is a possibility that your policy may be cancelled. The bottom line is, you will assume the responsibility of your child’s actions.

Learning process – In one way or another, your child has to learn things including learning how to purchase his or her own auto insurance and the duty that comes with it.
Since you know your child better than anybody else it is important to realize these factors before deciding on the choice you have to make. The decision therefore on whether to include your children when getting a policy or let him or her purchase a separate one is one that deserves careful consideration.

Anthony S.
http://www.articlesbase.com/finance-articles/auto-insurance-quote-should-i-include-my-children-when-getting-a-policy-or-purchase-a-separate-one-87667.html