Auto insurance » Liability Coverage

Liability Insurance and Asset Protection

admin — Fri, 11 Jun 2010 12:41:22 +0000

When it comes to protecting personal wealth and business assets, the first thing that comes to many people’s minds is insurance. There is no question that insurance can play an important role in asset protection. Not only is it often required by law, by your lender or by your landlord, insurance can be an effective first line of defense against liability lawsuits. However, to fully protect your assets, it is critical to understand what insurance is and what it does and does not do for asset protection.

Included within most typical insurance policies such as automobile, homeowner, landlord and business insurance are three main general categories of coverage:

Liability coverage – this is the coverage to compensate the other party for bodily injury or property damage caused by you. For example, if you cause an automobile accident and the other car is damaged and the driver is injured, your liability coverage will pay for the injury of the other driver and the repair of the other car. Property protection coverage – this is the coverage to replace or repair your property for any sudden and accidental loss or damage caused by a covered peril. For example, if your car is also damaged in the above accident, your property protection coverage will pay to repair or replace your car after you pay your deductible. Other additional protection – this is a broad category of coverages designed to help you get by during the period when your property is being repaired like a rental car when your car is in the shop as well as other miscellaneous coverages like towing and medical expenses for you and your passengers.

Liability insurance gives you a layer of protection against lawsuit and lost of assets. However, it has a number of limitations:
There are always limits on how much the insurance policy will pay for losses for which you are liable. If the court awards the person you’ve injured a judgment of $350,000 but your liability limit is just $100,000, the most the insurance policy will pay is $100,000. Guess who will have to come up with the remaining $250,000? That’s right: you! You will have to come up with the cash or face the real possibility of losing your home and/or other assets. There are many exclusions in your insurance policies. For example, any liability from an intentional or criminal act is excluded. Sexual harassment, employment discrimination or wrongful termination is typically excluded as well. Discharge of waste and other toxic materials is generally excluded. Liabilities arising from breach of contracts or agreements are typically not covered. Professional liabilities such as malpractice, errors and omissions are usually excluded unless a separate professional liability policy is in force. In other words, for a LARGE liability claim, the insurance company will try to find ways to avoid paying. So unless it is specifically and explicitly covered by the insurance policy, you are most likely on your own. In addition, any failure to disclose material facts in your application or failure to report any material changes after the policy is in force gives the insurance company a way out of paying a claim even if it is covered. Most insurance policies do not cover many more ways you can be sued. For example, you might be sued for misappropriation of other’s funds, fraud or allegation of fraud, breach of contract, slander, libel, copyright, trademark or patent infringement, divorce, accidents from a motorized speed race, a hostile working environment, a liability arising from a willful violation of an ordinance or a statute, suits from local, state or federal government agencies, just to name a few. You can’t even buy liability insurance for these risks in most cases. And if you can find insurance for these risks, they will likely cost a great deal.

There is no question that we should all carry the insurance required by law, the lender or landlord as the first line of defense against lawsuits and loss of assets. However, since there are limits on what insurance will pay and there are too many situations where insurance will not provide the coverage, you cannot rely solely on insurance to protect your assets.

Oftentimes, just having all your assets visible to an aggressive injury attorney invites lawsuits that might otherwise not be filed. There is no better way to stop a potential lawsuit from starting than to lead the injury attorney to think that there won’t be any money or assets for him to collect after spending all the time and money to go to trial even if he wins.

By: Carlos Lee

Cheap California Auto Insurance

admin — Sat, 30 Jan 2010 16:06:34 +0000

Californians are currently able to procure low cost, reduced limit automobile liability coverage. The California Low Cost Automobile Insurance Program (CLCAIP) is a new program that meets the financial responsibility laws of the State of California. These policies are accessible to competent citizens living in the counties of Los Angeles and San Francisco. To qualify, you need have a certain household income, driving record (the number of accidents and violations), and vehicle purchased value.

The voters of California enacted Proposition 103 (Prop.103) into law in November of 1988. Prop. 103 gives numerous consumer protections associated to buying and maintaining automobile insurance. Given below are some of the major provisions of Prop. 103 that protect your rights as an insurance consumer.

Prop.103 recognized a legal description of a “”Good Driver”" in this state. A Good Driver is someone who has been licensed for at least three consecutive years and has no more than one point on their driving record. Certain major violations may be considered for periods of seven years, such as a DUI (Driving under the Influence) conviction.

All automobile insurance companies licensed in California are required to tender coverage for Good Drivers. If you are a Good Driver and you are denied the opportunity to buy insurance from the company of your choice, then you can contact the California Department of Insurance for further action. Also, it is significant to note that your rates as a Good Driver should be lower by at least 20% to regular rates.

It also established new criteria that determine an insurer’s ability to cancel or non-renew your policy. There are only three bases on which an automobile policy can be canceled/non-renewed once it is issued: fraud/material misrepresentation, non-payment of the premium, or substantial increase in the hazard insured against.

By: Eric Morris

Personal Auto Insurance In Mexico

admin — Tue, 26 Jan 2010 15:52:02 +0000

When the traveler drives into Mexico, he or she must ride over strange roads. Such a driver views new, distracting sites and seeks guidance from street signs that bear words in Spanish. The traveler driving into Mexico enters a country where he or she is at increased risk for involvement in a car accident. That traveler needs personal auto insurance.

In Mexico an insurance policy that offers only collision coverage does not satisfy the requirements of Mexican law. Mexican law stipulates that anyone found at fault at the scene of an accident must show the financial means to cover the costs of that accident. A traveler in Mexico thus needs an insurance policy that provides liability coverage.

What should a driver expect when an insurance provider promises personal insurance in Mexico? A driver with such insurance should have no liability for damages or injury to persons other than those in the insured vehicle. The insurance policy normally refers to such persons as “a third party.”

A few tricks can facilitate completion of the process that guarantees delivery of insurance coverage. One trick involves the taking of photos at the scene of an accident. A second trick calls requesting a copy of the police report. Use of tricks can help a driver to benefit fully from personal auto insurance purchased in Mexico.

When the traveler secures personal auto insurance in Mexico, he or she has taken an important step toward aversion of possible problems. Still the possession of such insurance does not guarantee avoidance of troubles in the event of a car accident. An insurance provider can not cover a claim, unless the driver contacts the insurance provider before returning to the United States.

A driver with a cell phone might think that he or she should have little trouble calling-in information about a potential car accident. Travelers in Mexico must realize that a cell phone frequently fails to work properly in Mexico. Calls from Mexico to an insurance provider should be made from a land phone.

Personal insurance in Mexico can not always cover a lost or stolen vehicle. Such a policy can only cover the specified problem if the driver obtains the proper Mexican documents. What are those documents?

A driver who hopes to be reimbursed for a lost or stolen vehicle must obtain both a local and federal police report before leaving Mexico. Then after returning to the United States, the same driver must get something called a “Courtesy Report.” That Report must come from a State Highway Patrol Agency. All of the indicated documents should be sent to the insurance provider.

By: Robert Mall

Auto Insurance – The Questions You Ask

admin — Tue, 26 Jan 2010 00:08:39 +0000

Once you own a car, it becomes mandatory by law that you get a minimum insurance cover at least to ensure the safety of other road users. Since it is compulsory, you need to note some these facts.

You need to first know the types of car insurance.

The first is Liability coverage which is actually compulsory because it protects other road users. You can in addition to this take up a collision coverage which pays you for damages to your car caused by accidents. You can also decide to take up a comprehensive coverage to take care of any damage to your car. Adding a personal injury coverage will ensure that whatever injuries sustained in an accident would be taken care of.

You need to decide exactly what you want and then look at the types of coverages that are available and pick policies that soot your need.

Next know the implication of your deductible. What is this?

This is the amount you are required to come up with before the insurance company would make good on your claim. The rule for this is simply this. The higher the deductible you choose, the lower the rates you pay and the lower the deductible you choose, the higher the rates you pay. A lot of people rush into choosing the lowest deductible possible thinking they have a wonderful deal. You would likely be better of with a higher deductible and a lower premium.

Find out what is the minimum coverage for the state you live in as the minimum vary from state to state. Knowing this, you can the decide if it is okay for you or need to get more.

A lot of people pay a lot more than they should pay simply because they did not take enough time to compare several quotes before committing to one.

Free quotes are one of the most effective tools for getting the best deals on your insurance. Many don’t believe until they have tried it.

Try it, get and compare as many quotes as you can before making a commitment and you would testify to how it saved you a lot of money.

Don’t take my word for it, get free online quotes now and decide for yourself if it is worth it. What do you loose, since it is absolutely free of charge and obligation.

In fact, start with these two.

By: Chimerenka Odimba

Auto Insurance In Texas

admin — Mon, 25 Jan 2010 01:04:32 +0000

If you are looking for auto insurance in texas, you might want to check out golden rule insurance company who offers cheap auto insurance online. Of course there are plenty of other companies that also offer affordable rates, but first you should understand Texas auto insurance requirements.

Texas is a tort state, which means that the driver is financially responsible for any damage and injury they cause in an accident. Purchasing Texas Auto Insurance will fulfill this legal requirement.

Texas auto liability minimums are 20/40/15 which translates to $20,000 per person for injuries you cause to the other party to a total of $40,000 for all claims and up to $15,000 for damage you cause another persons property. These are the minimum requirements and it is recommended that you carry much higher levels of liability insurance.

In addition to required liability coverage, Texas drivers may choose to purchase coverage for some “first party benefits”. These include compensation for medical expenses, loss of income, and loss of services. These benefits apply to every accident regardless of fault.

Uninsured and underinsured motorist policies also cover your expenses, but these apply in the event that you are struck by a driver with inadequate liability insurance. These policies are not required, but they’re relatively inexpensive, and can provide a lot of protection.

Texas auto insurance companies will also offer optional policies such as collision and comprehensive coverages.
Be warned the mandatory requirements are way too low for the average cost of serious injuries and financial loss from an automobile accident. All insurance agents recommend you purchase much higher levels of liability insurance.

Auto insurance companies also offer optional coverage such as medical payments, collision, comprehensive, and uninsured and underinsured motorist’s bodily injury coverage.

How your insurance rates are set in Texas is different than many other states. The rates are determined by the behavior and accident rates of all Texasn drivers. The cost of insuring Texas drivers’ including settlements and legal fees is totaled for the entire state and divide it up between everyone.

Of course these costs are not spread around evenly. The percentage of these costs that you are going to pay is determined by things like your driving record, your age, where you live, and the kind of car you drive.

Not all insurance companies compute their figures the same way so a driver with the same profile can land up with different rates depending on the insurance company. That’s why it is so important to get several quotes before purchasing insurance.

As mentioned previously liability is the most important element of your entire insurance policy. Make sure you purchase adequate liability insurance to protect your assets, because within a split second, the time it takes for an accident to occur, your life could be left in financial ruin if you are not adequately covered.

There are also other coverages you can buy such as collision, comprehensive, rental, and even towing and road side assistance. You will need to determine what your personal needs are.

When comparing insurance make sure you compare equal policies. Make sure the deductibles are the same, that the exemptions or fine print reads the same and that the liability is for the same amount. It is important to compare policies of equal quality to make sure your cheapest quote truly is your cheapest quote.

In less than a half hour you can have all the quotes you need and be on your way to buying cheap Texas auto insurance. Why waste time? Get busy!

By: Sher Matsen

California Auto Insurance Laws – CA Car Insurance Laws That You Need to Know

admin — Sun, 24 Jan 2010 06:51:46 +0000

What are some of the California auto insurance laws that CA residents need to know? California is a tort law state for auto insurance, which basically means you can sue the other party if you are injured in a car accident. There are several other car insurance laws that consumers in the Golden State should be aware of before looking for car insurance.

In California, the law requires you to carry at least liability coverage in the limits of 15/30/5, which means:

$15,000 bodily injury coverage per person hurt in a car accident

$30,000 bodily injury coverage per accident in total

$5,000 coverage for property damage liability

This coverage is to protect others in case of an accident where you are deemed to be at fault. However, the minimum limits are very low and are unlikely to be sufficient to cover the expenses of a serious car accident. In this case you could be personally sued for the excess. For this reason it makes sense to carry higher limits of liability coverage.

There is a California which law requires insurers to give the lowest price to the consumer that he or she is eligible for. All companies operating in the state must have a toll-free number and/or a web site with quote capabilities available to consumers in order to meet the requirements of this law.

CA car insurance laws state that when you purchase liability coverage the insurer must offer you uninsured motorist coverage. If you decide against it, you must actually sign a form stating that you have declined this coverage.

Now that you are fully aware of the California auto insurance laws that you need to know, you are ready to start shopping for California car insurance. You can get started quickly and easily by using an online quote tool. In no time, you’ll be comparing a variety of quotes from top CA insurers.

By: James J. Robinson

Alabama Auto Insurance Minimum Coverage Requirements

admin — Fri, 08 Jan 2010 08:17:03 +0000

Are you new to the State of Alabama? If so one of the most important aspects of moving to any new state is to determine what their car insurance regulations and requirements are. Are you maybe just looking for some Alabama car insurance basics in hopes of finding a low cost policy? The following information will provide you with basic information regarding what is expected of you as a licensed driver in the State of Alabama. Car insurance is required in AL so read on to find out what the State minimums are and then see if maybe you can put these basics to work in saving you some money.

Minimum Insurance Requirements

All drivers within the state of Alabama must have liability coverage when operating a vehicle within the state. The minimum amount of acceptable coverage is $20,000 for individual liability, $40,000 per accident, and $10,000 for property damage per accident.

Proof of Insurance

If you are driving within the state of Alabama you must have proof of insurance in your vehicle at all times. Types of proof that are acceptable are as follows: a permanent or temporary card from your insurance carrier; a premium receipt or binder; the declarations page of your current policy or the actual policy itself; or a recent proof of purchase of the vehicle, within the past 60 days, along with an up to date insurance card from your prior vehicle. Acceptable proofs of purchase are bills of sale if the vehicle was made before 1975; and if made after 1975 then your copy of the application for title. If you are driving a rental car then you must have a copy of the rental agreement showing the insurance coverage.

The penalty for failure to have your proof of insurance is suspension of your vehicle tag registration and a reinstatement fee of $100. Your tag registration will remain suspended until you present proof of insurance to the proper authority. After the initial suspension, if you are caught again driving without proper proof of insurance you will then face a mandatory four month suspension of your vehicle tag registration and have to pay a reinstatement fine of $200 upon providing proof of up to date insurance.

Alternate Forms of Coverage

Instead of carrying liability insurance you can get a motor vehicle liability bond or deposit of cash. In either case the minimum amount is $50,000. The bond is issued on the condition that it will be payment for any judgment against the holder with or without his consent as a result of any injury or damage committed by him. The bond must be executed by a surety company that is licensed to issue bonds and you as the driver must keep your Motor Vehicle Liability Bond Certificate on you as you would proof of insurance.

A cash deposit certificate is issued when you deposit the required $50,000 with the State Treasurer. You would also carry this certificate as you would any proof of insurance. If at any time this money is used to satisfy a judgment you would have 30 calendar days to reinstate your $50,000 balance with the State Treasurer.

Alabama Car Insurance Quotes

Be certain to compare Alabama car insurance quotes from at least 5 different companies before you purchase.

By: James J. Robinson

Auto Insurance St. Louis – Finding a Low Rate

admin — Tue, 05 Jan 2010 00:54:51 +0000

Before you start shopping for your auto insurance St. Louis, you should know what coverage the state of Missouri requires you to purchase. You will need to purchase liability coverage on your auto insurance St. Louis policy for a minimum of $25,000 per person, $50,000 per accident, and $10,000 for property damage. Don’t even contemplate purchasing your auto insurance St. Louis and then dropping it, because the Missouri Department of Revenue has begun tracking drivers to make sure they maintain liability coverage. Letting your auto insurance St. Louis lapse could cost you your driver’s license and vehicle registration.

However, liability coverage alone may not be the only auto insurance St. Louis coverage that you want for your vehicle. With the percent of uninsured drivers in Missouri counties ranging from over 11 percent to as low as half a percent, uninsured driver coverage can protect you from costly premium increases and accident repairs should you be involved in an incident with an uninsured driver.

Other coverage to consider for your auto insurance St. Louis coverage includes medical payment coverage, which will reimburse the insured and others for medical or funeral expenses. You may also want rental car reimbursement for your auto insurance St. Louis policy so that you are covered if you need to rent a vehicle while your damaged auto is being repaired. Plus, with so many things that could happen to your car besides a collision or theft, you may want to add comprehensive coverage to your auto insurance St. Louis to protect you in the case of fire, flood, or other disasters.

By: Joshua Miller

Cheap Full Coverage Auto Insurance

admin — Sun, 06 Dec 2009 20:22:50 +0000

If you are in the market for cheap auto insurance, you are bound to be confused by the wide variety of choices available. It pays to take some time before you make a decision. It is therefore important that you consider several aspects before you take a definite decision. Once you are armed with the basics, you will be ready to go ahead and choose the perfect auto insurance plan for your needs. You can — and should — of course, seek some help. When you hear the phrase “full coverage auto insurance”, do you know what it means? This is simply a comprehensive coverage that would cover you, personally, in every aspect and possible type of insurance the company offers.

For example, coverage for medical costs may be optional with some insurance policies. But if you have a full coverage auto insurance policy, you can have your and your passengers’ medical costs covered, should you be in an accident where injuries are sustained.

A full coverage auto insurance policy also covers liability. This means if you are at fault during an accident, the coverage will enable your policy to compensate for the damages caused by you. It is always advisable to have liability coverage in your auto insurance. Although you may always claim that you had never been at fault, you can never be sure where the blame will ultimately be placed in an accident. It is always better to be on the safer side with auto insurance.

The premium to be paid and the policy period will differ based on the insurance company, your age and also your gender. The age of your vehicle also determines whether you should go for full coverage or not. Supposing yours is an old vehicle on its last legs, it is not necessarily a good decision on your part to go for full coverage, as you will end up paying a higher premium. You may end up paying more premiums than the current market value of your car. Newer cars, or any vehicle for that matter, are better served with cheap full coverage auto insurance policies. There are other comprehensive policies that can cover you in cases of vandalism or arson, as well, though they are not as commonly purchased by people.

You can always check out the various online resources available for more details on cheap full coverage auto insurance. Also, don’t be afraid to get in touch with insurance agents, as they can provide you great information on the current trends in cheap auto insurance.

By: Jennifer Bailey

Online Auto Insurance Quotes For Full Coverage

admin — Tue, 01 Dec 2009 16:50:39 +0000

When comparing online auto insurance quotes, it’s wise to compare policies to see what each company’s “full coverage” offer includes. When auto insurance agencies mention “full coverage” this means you’ll receive full coverage within that particular company’s guidelines and policies.

If you obtain a car insurance quote online and only look at the premium rate and the statements made by the company, you might be in for a big surprise when you need to make a claim. Never blindly enter into a policy agreement merely because it is called “full coverage.” A full coverage policy does not mean the company will cover any and every thing that could possibly happen to you or your vehicle.

Every auto insurance policy has limitations and exclusions. Limitations are often based on your car maintenance habits. If you neglect your automobile or fail to meet certain requirements for mechanical maintenance (such as oil changes or brake maintenance), then the company will not cover certain types of damage. When reading a full coverage policy and when comparing car insurance quotes online, don’t only read what’s covered but also read over the company’s limitations and exclusions carefully.

Full Coverage Policies Explained

A full coverage policy will usually include the following: liability (coverage amount is dependent upon the legal requirements in your state), collision, comprehensive coverage, towing, rental reimbursement, roadside assistance, coverage for uninsured and underinsured motorist, and coverage for medical payments. The policy may also include property damage and bodily injury coverage. Though all these may be covered by two different insurance agencies, this doesn’t mean the policies are identical. Each auto insurance company is different, and these types of coverage are offered within a company’s own policy limitations and requirements.

When obtaining auto insurance quotes online for full coverage, you must factor in your driving record, the age and value of your car, your age and gender, discounts, where you live, and possibly even your credit rating. Look for quotes on policies that offer all the coverage you need within your budget. When comparing liability, buy more coverage than you feel you’ll need if possible.

Examine Policies

Before signing on the dotted line, examine the full coverage policy carefully and be sure you understand all the coverage provided as well as the agency’s limitations. Ask for an exact quote based on your personal and vehicle information, and also determine a payment plan that will work for you. There should be no unpleasant surprises!

Some online companies might provide a downloadable list of coverage types you’ll receive and a policy outline. Print these and keep them for your records in case there are discrepancies in your actual policy. You’ll find that online auto insurance quotes for full coverage are the most expensive, but full coverage also gives you the most protection for your money. Compare quotes and policies online today to save hundreds per year for this thorough coverage!

By: Chris Robertson