Car Insurance Lingo

Posted on February 18, 2012 by admin

Reading your Auto Insurance policy often resembles reading Greek. Many specific terms and odd wording can lead you astray. Though learning Greek is optional, understanding your Auto Insurance policy is necessary. Since in forty-seven states it is a requirement to have some kind of Auto Insurance, being perfectly aware of what law requires is essential for all law-abiding citizens.

Here are some major commonly used terms and definitions you will come across while studying your Car Insurance policy. Recognizing what these terms mean makes it a lot easier to decipher this complicated document and feel assertive when you have to deal with the insured situations.

Deductible is the amount of money one agrees to pay for losses as part of a claim in the event of an accident. This is the payment that a person makes before the insurer pays the remaining cost associated with an accident. To set an example, your car may be subject to $1,000 of damage in an accident and your deductible sum could be $250. Accordingly, you would pay the first $250 and your insurer would pay the remaining $750.

Premium is the amount of money you as an insured person pay to protect your vehicle against certain risks. In other words, it is the cost of the insurance policy.

Covered Person is the term, which refers to the individuals who are insured under a policy contract and are eligible to benefits under their policy terms.

Benefit is the amount of money an insurance company pays to you or your beneficiary when you file a claim in case of an insured event.

Claim is the policyholder’s request for the reimbursement of a loss which is covered by their insurance policy. It is necessary to keep your policy updated to avoid unpleasant surprises when you actually file a claim.

Endorsements are special changes to the original insurance contract, attached to your policy to modify the terms of the insurance contract. Endorsement is also an amendment to the policy written to cover unique items for the policyholder. It can be a different deductible or an additional car or driver.

Exclusions are the descriptions of the situations under which you and your car are not covered by an insurance policy; they are usually listed on your insurance policy document.

Indemnity means a sum of money (compensation to the victim of a loss) paid for a covered loss.

Limits mean the maximum amount of money your insurance company will pay out for a specific insurance coverage for your losses. Many states specify the minimum limits an insured person must purchase.

Tort is a term used to describe the case when someone is found liable for injuring another person or damaging his/her property. It is a private or civil wrong leading to a lawsuit.

Lapse in Coverage (Policy Lapse) is a break in insurance coverage when a policy has been canceled or terminated due to nonpayment of premium.

Claims Adjuster is a person whose duties are to investigate the claim, i.e. evaluate the damage caused to property or people when an insurance-related accident occurs and then make recommendations to the Insurance Company.

Comprehensive is one of Car Insurance types, which offers protection against damage to the insured car caused by fire, theft, earthquake, flood, falling objects, missiles, explosion, riot and civil commotion. In other words, Comprehensive coverage pays for loss or damage to your covered car caused by any event other than collision.

Bodily Injury Liability is a type of Car Insurance which covers medical and rehabilitation expenses for injuries the policyholder causes to another party.

Property Damage Liability is the type of Car Insurance coverage which pays for the insured person’s financial loss if they are found responsible for damages to a third party in the event of an accident (someone not covered by the insurance policy).

Collision is one of the Car Insurance types, which protects against damage or loss resulting from any collision with another car or some object, no matter whether it was the insured person’s fault or not.

Gap Insurance is a type of Auto Insurance policy that offers coverage for the difference (gap) between a car’s actual cash value that your insurance company pays when your car is totaled or stolen and the amount the insured person owes the finance company.

Medical Payments is the type of Car Insurance which covers hospital and doctor bills, and may also cover funeral expenses resulting from an accident. Medical Payments may often overlap with your health insurance. Thus, it is important to check it prior to a new insurance coverage policy purchase.

Personal Injury Protection (PIP) is the type of Car Insurance which covers the cost of treatments for injuries not covered by the Medical Payments Insurance. They are lost wages, child care, etc.

Uninsured/Underinsured Motorist Coverage covers the cost of damages, repairs, or injuries caused to the policyholder or passengers in his/her vehicle in the event of a collision with an uninsured or inadequately insured driver.

“No Fault” coverage means that if you are injured in an accident or your car is damaged, you can make a claim, regardless of who is at-fault for the accident.

Towing Costs is a Car Insurance coverage that pays for the cost of towing of a disabled car.

Fleet Policy is a type of Auto policy which covers a multiple number of cars, often 5 or more.

Get your quote here.It’s free, simple, fast and imposes no obligations upon you.

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Liability Insurance

Posted on January 7, 2012 by admin

Understanding Liability Insurance

If future generations ever wonder what their predecessors’ worst fears were, the fear to be sued would definitely rank high along with a few other most dreadful universal phobias. It is accepted to be always on the lookout for such risks. The more active and successful a person is, the greater his or her stress and fear can get. To tackle potential problems other people might bring, you will need Liability Insurance.

Liability Insurance offers protection against third party claims, which means that payment is maid to someone who suffers loss caused by an insured person. It helps protect you from being held responsible for physical or personal injuries to people while they are on your premises. Intentionally caused damage is not covered by Liability Insurance policies. On purchasing Liability Insurance you agree to pay the insurance premium. In return, your insurance company agrees to pay for expenses such as medical bills of the injured person, rehabilitative therapy, lost wages, etc. or pay money on your behalf to someone whose property you might damage. When you purchase Liability Insurance, you also get legal defense.

Frequent Liability Insurance examples are Liability Insurance for drivers, malpractice insurance, and business Liability Insurance. It is a common practice for car owners to carry Liability Insurance along with Comprehensive and Collision insurance, which protects them from losses they might cause if they get in accident. Professional Liability Insurance will cover loss from errors and negligence. Business Liability Insurance will protect your business from injury claims, advertising claims and property damages.

Liability Insurance saves your money and covers the injuries of others. However, the more coverage you need, the more expensive this insurance will get for you. Mind also that history of past accidents, malpractice or other faults greatly increases the cost of Liability Insurance.

Liability Insurance for your Business

Liability Insurance is a must for all businesses. Even if your business is not prosperous enough to make people want to sue you, Liability Insurance is essential. It covers injuries to your employees and customers as well as legal charges in case you are sued for injury caused to someone on your premises. Some Liability Insurance can cover you from claims of personal injury, such as libel or other abuse undermining your reputation. Even if you think your business does not involve anything in the least dangerous and you take all preventive measures, the right Liability coverage can be very helpful. Remember that you are obliged to pay for injuries and property damages caused by your employees. You may even be held liable for injuries that unauthorized visitors who enter your business premises might get. Thus, carrying Business Liability Insurance protects you from financial crash and eases nervous strain.

Types of Business Liability Insurance

General Liability Insurance (Commercial General Liability)

You need this coverage to protect yourself from injury or property damage claims. In the insured event you will have ample cover to protect your business.

Professional Liability Insurance

Carrying Professional Liability policy is often a legal requirement. It protects you from claims of your clients who suffer losses resulting from your malpractice, advice, errors or negligence.

Product Liability Insurance

If you produce and sell goods, service or repair works, Product Liability Insurance protects your business in the event your product causes injury or damage to another business or person. The level of risks as well as the amount of coverage depends on your business type and products you sell. Though the need for Liability Insurance is not so obvious with some businesses, the right policy can save a policyholder a lot of money in the long run.

Some of Business Liability policies include: Commercial General Liability Insurance (CGPL); Business Automobile Policy (BAP); Employers Liability and Workers Compensation; Manufacturers and Contractors Liability (M&C); Owners, Landlords and Tenants Liability Insurance Policy (Ol&t); and Physicians, Surgeons and Dentists Professional Liability.

Personal Umbrella Insurance

This type of insurance pays for causing harm to other people, and protects an insured person’s assets. It provides coverage beyond your Homeowner or Auto policy and extends liability coverage when the liability protection on other policies is gone. If there is a young driver in your family or you are an owner of such assets as some recreational facilities, personal watercraft, or a swimming pool, the right Umbrella Insurance policy will give you the liability protection you require.

Comprehensive Personal Liability (CPL), Homeowners Insurance Policy, Personal Automobile Policy (Pap), Personal Umbrella Liability, and the Uninsured Motorist Endorsement comprise the list of Personal Liability policies.

Assessing your Liability Needs

Like any serious decision and investment, shopping for Liability Insurance requires a thorough research. You should consult organizations in your production sphere as well as small business owners to find out what types of liability coverage are often claimed for. It is important to learn the liability risks for your industry or business, take into account the recent legal actions in your industry area and evaluate the possible risks of being sued. Having determined what is necessary to insure yourself against in your current business situation, you should talk to your insurance agent or broker about the level of protection you need.

You should compare liability coverage to select the best available package of policies for you or your business. Since every person’s and every business’ needs are unique, finding a specialist broker with experience in your sphere or industry is well-advised.

Get your quote here. It’s free, simple, fast and imposes no obligations upon you.

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HIV and Insurance

Posted on November 30, 2011 by admin

To meet the demands of the public and to correspond with the contemporary medical statistics, insurance industry now begins to offer more adequate insurance services to HIV-positive US residents. Fortunately, it has become possible to extend the lives of individuals with HIV thanks to the increasing effectiveness of AIDS medication, introduction of the highly active antiretroviral therapy (HAART), advancements in technologies and continuous medical research. HIV is more likely to be regarded as a manageable chronic condition, which brings some insurance companies to provide nearly the same level of insurance for people with HIV as they do for everyone else. At least, more and more insurers recognize the necessity to consider life coverage under specific conditions and acknowledge that HIV and insurance are no longer mutually exclusive.

The premiums of people with HIV are affected by the same variables that affect a healthy individual’s life insurance rates, i.e. the age, gender, smoking history, etc. The rates are normally set higher for HIV-positive people than for healthy applicants, but they are likely to be adjusted as soon as new successful medical advances in this area prove to be effective.

At present, a HIV-positive person’s eligibility for the insurance depends on the following criteria: their age, their ability to work and lead an active life, their medical condition and the manner in which such individual contracts the virus. Those who contract the virus through sexual contact or by an accidental needle stick are regarded as lower risk groups than intravenous drug users, for instance. A potential policyholder must be aged between 21 and 49 years old and have a limited amount of the virus within their bloodstream.

The most accessible way to get Life and Disability coverage for HIV-positive people is to obtain Group Life Insurance as part of an employee group at their full-time work. According to the Federal law, individuals with HIV have the right to access the same insurance coverage which is provided to healthy employees. Unlike Insurance plans, Large Group Plans rarely exclude people with serious illnesses. Most employers with over 15 employees offer a basic amount of Life Insurance, but in case you are HIV positive, they are likely to refuse to provide you with extra insurance.

In case you fail to obtain insurance through work, you can opt for an individual policy. Most insurance companies will ask you questions about your health; have you examined or even take your blood sample. However, in some states, HIV positive individuals can purchase small amounts on a “guaranteed issue” basis from “special risk” or “impaired risk” brokers. Private disability policies tend to be more liberal in giving the disability benefits to HIV-positive people. In many states, you will find special high-risk pools for uninsurable individuals. Check with your state insurance department and ask an insurance broker for a referral to such type of Life Insurance in your state. Remember that you may be subject to a waiting period for coverage of your pre-existing conditions.

Travel Insurance may also be difficult to obtain for individuals with a pre-existing medical condition such as HIV. Travel Insurance policies often withdraw certain medical and emergency benefits or exclude people with AIDS and HIV altogether. It is necessary to examine the terms and conditions of your policy, paying special attention to any pre-existing condition clauses. In case the conditions are declared in advance and thoroughly discussed with the insurer, a few Travel policies may provide specific HIV/AIDS inclusion clauses. Such policies cost more than standard premium rates. Depending on the situation, potential policyholders with HIV may be offered single trip coverage or annual trip insurance to have medical cover while they are abroad. It is important to include the needs of people with HIV in insurance coverage plans as one of the steps towards a more tolerant society.

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Securing your shed to avoid house insurance claims

Posted on November 18, 2011 by admin

Most garden sheds aren’t heavily secure structures, and more often than not the hinges can be taken off with a screwdriver or chisel, which will not make much noise allowing a thief to carry out the whole thing with little noise or attention. Older wooden sheds are also usually rundown from years of weather abuse, making removing screws even easier, and increasing the potential for individual boards or even whole walls to come down. Expensive items such as power tools gold clubs bikes and motorbikes could all be taken in this way, raising your insurance premiums and putting you through the rigmarole of having to claim back the money.
The Police recommend the following measures to help secure a shed:
• Install a purpose designed shed alarm, which could operate via a fob with arms and disarms the unit, or a keypad.

• Lock any tools and equipment that belong there back in the shed after use, particularly at night time, and never leave ladders outside of the shed in the garden as they can be used to reach upstairs windows.

• Link larger items together with a chain and padlock, making them a lot harder to carry away.

• Always double check the shed is locked.

A hasp – which is the device through which padlocks are inserted – should always have covered screws to make it more difficult to remove, or at least security screws. Shackle padlocks also make it more difficult to use bolt cutters to gain access to , whereas a mortise lock is more effective on a strong door and door frame.
High walls or hedges around back gardens, gravel on walkways, and locked gates wherever possible will make it difficult to get any stolen goods out of the vicinity, and the gravel will act as a deterrent as well as a natural alarm. The structure itself should be placed somewhere that can be seen from inside that house by you or neighbours; a shed that is hidden is a far more attractive target for burglars.
Shed windows should be covered with a screen or sheet, to stop people from being able to see what is inside, and a visible alarm unit on the outside should have a deterrent effect.
In general sheds aren’t very secure buildings, but with a few simple precautions like these, your shed can present an unattractive and difficult prospect for would-be thieves.

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Types of Car Insurance

Posted on November 10, 2011 by admin

The major Auto Insurance types include:

Liability (Bodily Injury Liability Insurance and Property Damage Liability Insurance):

The only states that don’t require liability coverage are New Hampshire, Tennessee and Wisconsin, and if you don’t reside in one of those states, this coverage is imperative.

Liability Car Insurance protects your bank account in case you are liable for damaging the other person or his/her car. It covers any injuries or damages to property that you might cause during an accident.

In case you get in an accident and you are at fault for other people’s bodily injuries or death, Bodily Injury Liability (BI) will cover medical bills, pain or suffering, loss of income of another party in an accident and a legal defense if they file a lawsuit against you. Mind that Bodily Injury Liability does not cover you or other people on your policy and is strictly limited to the terms and conditions of your policy.

Property Damage Liability (PD) will provide you with legal defense and cover you if you get in an accident and your car happens to damage someone else’s property: another party’s car, a house, a fence, or any other property. It is important to have enough coverage for the amount of damage your car might do to another party’s property.

Collision: This coverage protects you regardless of who is at fault for an accident. It will pay for any repairs your car requires as well as for the replacement of its market value if after an accident your vehicle is beyond repair. The principle difference between Collision and Liability Insurance coverage is that Collision covers damage caused to your own car while Liability pays for damage you cause to the other party. Basically, the safer a driver you are, the less you need this type of insurance.

Comprehensive (Fully Comprehensive Insurance Coverage):

This is the most expensive optional coverage. However, finance companies and lessors require that the car owner insure their car fully comprehensive. This coverage pays for repair works or the replacement of your car if it is stolen or damaged. Comprehensive coverage protects against disasters, such as theft, falling trees, and most acts of nature, fire, vandalism, animal accidents, etc.

Many Car Insurance companies choose to insure only 80% of the value, refusing to cover 100%. It is done to prevent fraudulent losses of cars when some car owners just feel like recovering their fininacial position. Therefore, it is necessary to thoroughly scrutinize what is covered and what is not covered in your policy.

There are several other types of Car Insurance. For instance, Medical Payments Coverage pays medical bills and funeral costs following road accidents. Injured person (including cases when it is a pedestrian or biker) is covered regardless of who is at fault for the accident. Medical insurance may or may not include disability insurance and pain and suffering compensation. Personal Injury Protection (PIP) is very similar but can also cover the cost of care after the accident and up to 80% of lost income.

Uninsured or Under-insured Drivers Insurance pays any costs due to damage and injuries caused by a driver who is uninsured or underinsured. It also covers damages by hit-and-run accidents. This type of coverage is a good idea, taking into account that abut 17% of drivers fail to have an adequate insurance coverage.

There are also Glass Replacement Insurance, Towing and Labor Coverage and Rental Reimbursement Coverage, and other Car Insurance low-cost additions, which you can add to your policy as your situation requires.

http://allinsuranceinfo.org/auto/

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