Auto Insurance Terms

Frequently Asked Questions

1. QUESTION:
   Auto Insurance Terms: What do they really mean?
   Can anyone help me make sense of this? Here are the key terms I'm looking to make sense of. Would these be decent for auto insurance coverage?

   Bodily Injury Liability: ,000/0,000
   Property Damage Liability: ,000
   Underinsured Motorist: ,000/0,000
   Underinsured Motorist Property Damage: ,000

   Also...Why does my premium go up when the above prices are reduced to ,000/,000 for Bodily Injury Liability/Underinsured Motorist & ,000 for Property Damage Liability/Underinsured Motorist Property Damage?

   Any other tips for good car insurance?

   • ANSWER:
     Since nobody else answered your question, I will

     Q. Bodily Injury Liability: ,000/0,000
     A. This means your policy would pay up to K for any one injured person. The most the policy will pay is 0K per Occurance.

     So lets say you are in a horrible car accident and 1 person has medical bills for over 0K(Remember just an example) the most your policy would pay for that one person is K. If there were 3 people injured the most the policy would pay(combined for all people) is 0K

     Q. Property Damage Liability: ,000
     A. Your policy will pay up to 000 for damages you cause to someone elses propert.

     Q.Underinsured Motorist: ,000/0,000
     A. If YOU/Your Passengers are injured in an accident and the at fault person does NOT have enough coverage on their policy, you policy will pay for YOUR/Your Passengers remaning medical bills.

     They will pay up to K per person and 0K per accident (just like the BI)

     Q.Underinsured Motorist Property Damage: ,000
     A. If YOU are in an accident and the at fault person does not have enough coverage on their property damage policy, your insurance company will pay the remainder up to K.

     Example, you own a lexus and its worth K (Example only). Its totalled. The other person only carries K in Property Damage Liability. His insurance pays you the limit of K and then your insurance will pay the extra K.

     Get it? I hope so.

     Its always better for yourself to carry more than the state minimum requires. That way you cannot be sued and someone take away your home and whatever else you own bc you wanted to pay for cheap insurance.

2. QUESTION:
   Auto Insurance Terms - Help Me Understand?
   Can you explain these terms?

   Comprehensive
   Collision
   Property Damage Liability
   Bodily Injury Liability
   Medical Payments

   Uninsured Morotists
   Bodily Injury

   Thanks

   • ANSWER:
     Comprehensive- pays for physical damage to your vehicle which is caused by losses not covered under Collision coverage. Frequently referred to as "Other Than Collision". Examples: glass breakage, deer collision, theft, vandalism

     Collision - pays for damage to your vehicle when it collides with another object.

     Property Damage Liability- pays for property damage that other people incur due to your negligence. This coverage does not pay for your car. You can not be liable to yourself.

     Bodily Injury Liability - pays for bodily injury/death that other people suffer due to your negligence. You (as the driver of your vehicle) can not recover from this coverage. Again, you can't be liable to yourself.

     Liability coverage is referred to in a fraction. Although the numbers may be different - their place in the fraction means the same thing. Using the fraction 50/100/25 as an example:

     The first number (50,000) is the most that can be paid to any one person as a result of bodily injury. So if you die - the most you can be paid is 50,000.

     The second number (100,000) is the most that can be paid to all parties involved in an accident for bodily injury. So if you cause an accident with a bus and every person on that bus is killed, your policy will pay no more than 100,000 for the total off all their claims (and no more than 50,000 to any one of them).

     The last number is property damage liability. This does not have a per person limit. This limit (25,000) is the most that can be paid for all property damage liabilty claims in any 1 loss.

     Medical Payments - pays for medical bills only for passengers in your vehicle. Will also pay if you are a pedestrian that is struck by another car. This coverage pays regardless of fault. This coverage does not pay for pain and suffering, lost wages. Usually sold with a limit of 1000 or 5000.

     Uninsured Motorist - bodily injury and property damage available. This coverage pays when you sustain bodily injury and/or property damage caused by another motorist. However that motorist does not have a valid insurance policy. This coverage steps in to pay what the other persons policy should have paid (had he had insurance).

     Under-Insured Motorist coverage - sometimes is a separate coverage from insured motorist. In some states, it is a part of uninsured motorist. This pays if you sustain bodily injury/property damage caused by another motorist who has a valid insurance policy, however, the limits of his coverage are not sufficient to cover the damages in the loss. This coverage will pick up where the other guys policy ran out.

     For more information, ask your insurance agent to give you a copy of your auto policy. The words are defined in there in more detail.

3. QUESTION:
   Can anyone tell me some key terms used in auto insurance?
   like words that are important or overlooked
   i need this for a project please help

   • ANSWER:
     How about "your insured vehicle", "duties as assigned", "actual cash value", "exclusions" just to name a few.

4. QUESTION:
   Help with general terms for most auto insurance policies.?
   I started working on this, but I want to double check my answeres before I submit it. Please help me.

   Bob Brown was recently involved in a minor auto accident. His car was hit from behind, and he, in turn, slammed into the car in front of him. He would like someone to explain his coverage and show him where, in his auto policy, each of his losses might be covered. The explanantion of coverage and the location of coverage should be in general terms for most auto insurance policies, please do not use only your personal auto insurance policy as your guide for your response.

   Help him out by doing that for each of the following items.

   The cost of a medical checkup for his passenger, Ruth
   The front and rear damage to his car
   The damage to the car in front of him
   The damage to the car behind him
   The total amount of liability protection for bodily harm and property damage

   • ANSWER:
     Assuming Bob was at a complete stop when he was rearended, he would not be at-fault for the accident. Let's also say, that Bob has Personal Injury Protection because he lives in a No-Fault state and also has medical payment coverage which covers the driver and all occupants regardless of fault. This would be on the Declarations Page.

     1.) The PIP coverage and/or medical payment coverage. Either of these coverages would pay for a percent or the entire amount of his passenger's check up.

     2.) The damage to Bob's vehicle is covered under his Collision Coverage, less his deductible. If he is not at fault, then his insurance company will subrogate against the at fault driver.

     3.) Property damage would pay for the vehicle in front of him, but given the accident scenerio, he does not have any liability.

     4.) The guy in back of him was legally liable for the damage to all vehicles including his own.

     5.) Refer to the Declarations page under Limits of Liability. They may read something like, ,000 per person/0,000 per accident/,000 property damage.

5. QUESTION:
   how do i switch my auto insurance policy before my term is up?
   I currently have Direct Auto insurance, but i would like to switch companies to get a cheaper rate. i never had to cancel my insurance before the term is up, and my term isnt up till november 2010. my question is, how do i do that (if i can), and will i be charged for it?

   • ANSWER:
     You call or write your current agent and ask to cancel the policy on the date you want. (You may have to do this in writing; many companies won't accept a spoken request, for their protection and yours.) Make sure it's the same date that the new one starts so there's no gap.

     You may be penailzed a bit on the return premium, as many companies "short rate" the return (give back slightly less than the full due), just to discourage this sort of thing, so be sure the difference is enough to justify that--if it happens; it may not. If it's a six-month policy, and you're just at the beginning, the difference may be slightly more--2-5 percent.

6. QUESTION:
   how much would short term auto insurance normally cost in new york?
   say i have a bmw 530i
   im single, 35 years old, male
   and all my driver's license records are clean

   how much would it cost to insure the car for only one day?

   • ANSWER:
     Get on the phone and ask around, or do the comparison websites thing.

7. QUESTION:
   auto insurance what is the terms for medical coverage for your passenger.

   • ANSWER:
     Medical Payments Coverage (Med Pay) – pays for medical bills occupants of your vehicle incur as the result of an accident. It does not pay for pain and suffering or lost wages. It is usually purchased in limits of 1000 or 5000 per person. It is not required by most states.

     Personal Injury Protection (PIP or No Fault) - similar to Med Pay. Not every state has PIP. For the ones that do, PIP usually pays 80% of medical bills related to an accident. It can also pay for lost wages. It does not pay for pain and suffering. If you have Med Pay that will pick up the remaining 20%. Pays for medical bills as they are incurred for parties in your vehicle. In order to pursue a liability claim against someone else - you have to break threshold. In a PIP or No Fault state - this coverage will be required up to a minimum limit.

     Bodily Injury Liability (BI) - pays for bodily injury - including death- that you cause to someone else as a result of your negligence. It pays for medical bills, lost wages and pain and suffering. It does not pay for bills as they are incurred. Once you are done treating - the insurance company gathers up your medical bills/records and makes offer. Once settlement is reached - you and your spouse if married - sign a release in exchange for the money. Most states require this coverage up to a minimum limit. Although you can purchase more.

     Uninsured Motorist Bodily Injury coverage - (UMBI). Similar to BI. However this one steps in if you are injured in an accident by someone who does not have insurance. This coverage steps in to pay you what the other persons BI would have paid - had they had it. This coverage is frequently required as well by your state up to a minimum limit.

     Under-insured Motorist Bodily Injury coverage - (UIBI) - this coverage pays when someone else causes an accident. They have insurance but your injuries exceed their BI limits. Once the other company pays their BI limits - your UIBI is triggered. This coverage is not required by the state - but is a very good one to have.

8. QUESTION:
   Is there any short term auto insurance available for a 17 year old?

   • ANSWER:
     You can find the best options available in your area in this site

     bestinsurance.notlong.com

9. QUESTION:
   Can I get short-term/temporary auto insurance?
   I just bought a car last night and I need to take it in for an emissions test.

   I want to have insurance so I can drive it to enforcement but I don't want any long term insurance in case it doesn't pass emissions.

   Is there a reputable company that will insure it for only a week or so?

   I live in the US, btw.

   • ANSWER:
     There is no such thing as short term for a week or so insurance on a vehicle. You can either insure it, and cancel the insurance if you decide to junk it if it won't pass emissions, or you can tow or trailer it to the testing station.

     If you happen to be in CA, the seller must supply you with emission testing less than 90 days ago.

10. QUESTION:
    When may an insurance company cancel my auto insurance during the term of my policy?

    • ANSWER:
      for just about any reason.like if you have speeding tickets,
      or if you have a lot of claims. stuff like that

11. QUESTION:
    Visiting CA, do I need to get auto insurance?
    I have an IL driver's license but no auto insurance. I am planning to visit family in CA. Is it legal for me to drive my mom's car without having auto insurance? If not, where can I get short term (2-day) auto insurance?

    • ANSWER:
      The insurance is for the car, not your driver's license. If your Mom has insurance on her car, then it should cover you as a temporary driver.

12. QUESTION:
    I need short term auto insurance, since i will be on vacation for 45 days in southern california,?
    Now my insurance company doesn't cover me in the states

    • ANSWER:
      If you're not in the US, no, it won't. And no one in the US will give you a policy without a license issued from one of the states. It's probably going to be easier AND CHEAPER to just take a cab for six weeks.

13. QUESTION:
    Should I drop my daughter off auto insurance when she's at college?
    My daughter is four hundred miles away at college and doesn't have a car there. She comes home between terms and uses our car. My auto-insurance agent says I don't get a break even though for most of the year she doesn't drive. I'm not sure it's possible or practical for me to keep dropping her and putting her back for every vacation. Isn't there a standard way that auto insurance companies handle students who live far away from home?
    Thanks all of you for your answers. Just to clarify - My daughter does not have a car at school and does not drive there at all. The only time she drives is when she's off school.

    • ANSWER:
      No.

      For one thing, she might occasionally be driving a car there. For another, your carrier won't allow you to add/drop add/drop - they'll make you flat out exclude her from coverage. And many won't allow you to do that, either. Blame it on all the parents that lie, and DO provide a car for the kids away from school.

      Normally, most companies have an "away at school" discount they give to kids that are more than 100 miles from home, without a car.

14. QUESTION:
    Generally speaking, can you cancel and get a refund on auto insurance in the middle the term?
    I'm selling my car and am not going to buy a new one. I'm in the middle of a 6 month insurance agreement that I pre-paid. Does the insurance company have to refund my money for the unused portion or am I out of luck?

    • ANSWER:
      Generally you will be refunded any of the unused or unearned premium , MINUS the penalty for cancelling before the end of the term. MOST companies will charge you for cancelling early - phone your insurance company and they will be able to tell you exactly how much you will get back

15. QUESTION:
    the terms and conditions of bodily injury property damage comprehensive and collison of auto insurance?

    • ANSWER:
      This is really something you should take up with your insurance agent as to what specific limits you should carry based on your personal circumstance.

      In a nutshell though...

      Bodily Injury and Property Damage are liability coverages

      Collision and Comprehension cover your vehicle.

      Here are some definitions:

      Bodily Injury Liability (BI):

      Covers other people's bodily injuries or death for which you are responsible. It also provides for a legal defense if another party in the accident files a lawsuit against you. Claims for bodily injury may be for such things as medical bills, loss of income or pain and suffering. In the event of a serious accident, you want enough insurance to cover a judgment against you in a lawsuit, without jeopardizing your personal assets. Bodily injury liability covers injury to people, not your vehicle. Therefore, it's a good idea to have the same level of coverage for all of your cars. Bodily Injury Liability does NOT cover you or other people on your policy. Coverage is limited to the terms and conditions contained in the policy.

      Property Damage Liability (PD):

      Covers you if your car damages someone else's property. Usually it is their car, but it could be a fence, a house or any other property damaged in an accident. It also provides you with legal defense if another party files a lawsuit against you. It is a good idea to purchase enough of this insurance to cover the amount of damage your car might do to another vehicle or object. Coverage is limited to the terms and conditions contained in the policy.

      Comprehensive Coverage:
      Covers your vehicle, and sometimes other vehicles you may be driving for losses resulting from incidents other than collision. For example, comprehensive insurance covers damage to your car if it is stolen; or damaged by flood, fire, or animals. Pays to fix your vehicle less the deductible you choose. To keep your premiums low, select as high a deductible as you feel comfortable paying out of pocket. Coverage is limited to the terms and conditions contained in the policy.

      Collision Coverage:
      Covers damage to your car when your car hits, or is hit by, another vehicle, or other object. Pays to fix your vehicle less the deductible you choose. To keep your premiums low, select as large a deductible as you feel comfortable paying out of pocket. For older cars, consider dropping this coverage, since coverage is normally limited to the cash value of your car. Coverage is limited to the terms and conditions contained in the policy.

      You'll also want to check out Uninsured Motorist and Underinsured Motorist coverages.

16. QUESTION:
    why would an auto insurance company delay a ruling?
    Why would an auto insurance company delay a ruling in an issue of coverage for their policy holder who was liable for a car accident? It has been several weeks since the "supposed" policy holder hit my car and the insurance company says it is still doing an investigation regarding an issue of coverage. The police report already ruled that their policy holder was liable for the accident 100%; there were injuries involved. I have uninsured motorist coverage, but I cannot move forward in terms of closing this until the other party's insurance company verifies whether or not this person was covered at the time of the accident. I thought having computers was supposed to speed up the process. What benefit would an insurance company have in delaying the ruling?

    • ANSWER:
      They don't make rulings, they have "findings". If they aren't making the 'finding', that means they're missing some information, or something is unclear.

      Their policyholder isn't liable, until a judge says they are, or until they accept liability. Police do NOT determine fault - they only offer an opinion.

      If they say there's an issue of coverage, there are several reasons why they still wouldn't pay out, even if that car was at fault. Some of them are: The driver is an uninsured driver on the policy; the vehicle is an unlisted vehicle on the policy; the vehicle isn't owned by the person who holds the policy.

      The other person's insurance company has NO duty of good faith towards you. If you're in a rush to get this covered, put the claim through on your own policy.

      Since you know there's a problem (you just don't know what it is), I'd strongly suggest, in the end, this is NOT going to end up being a covered claim, and you're going to have to sue the owner of the car, and the driver of the car, in order to see any money.

      For collision, file the claim under your policy. For uninsured motorist, you're going to have to wait a while - meanwhile, file it under your pip or medical payments.

      If it makes you feel better, injury claims are NEVER settled within two weeks - or even four or eight weeks. So you're WAY early on looking to close. They won't close ANYTHING until after all the medical and therapy bills are in, and the healing has gone as far as it can.

      There's no benefit to the insurance company, delaying anything - but two weeks isn't really a delay here.

17. QUESTION:
    Can you be sued personally at the same time someone has an auto insurance claim against you?
    My wife was involved in an auto accident last October. The other party submitted a claim to our insurance company this February for personal injury. The insurance company has determined very little liability and have not been able to come to an agreement on the terms of settlement. We have just discovered the other party has filed a personal injury suit against my wife. Can this be done at the same time? Is the insurance company supposed to deal with this? If the other party gets paid by the insurance company, would my wife still be liable for damages? What if the insurance company and the other party never come to an agreement? Help?!

    • ANSWER:
      Turn over a COPY of any paperwork you receive concerning the lawsuit, to your insurance company. If the insurance company cannot reach an agreement, a mediator will be called in by the courts to settle it. The person cannot progress with a civil suit until the insurance coverage is finished and cannot draw two amounts for what has already been paid to satisfy the claim. (This is assuming damages were paid in full through the insurance.)

18. QUESTION:
    If I do not renew my auto insurance policy, am I technically cancelling it?
    I'm switching auto insurance companies next month, and rather than cancelling my current policy, I would just like to not automatically renew it. Is this the same as a cancellation? I would be using the entire term of my current insurance policy, and the new policy would kick in seamlessly.

    If it helps, I live in NJ.
    Thanks for the quick responses. To be more clear, I do not plan on lapsing on my insurance at all, and will definitely have proof that I was and am covered. I just need to know that I have a leg to stand on if they try hitting me with a cancellation fee.

    • ANSWER:
      NO ! it is not the same. You MUST cancel your old policy in writing. Do not simply not renew it. If you do, it will be considered lapsed and you may not be able to get other insurance without paying and arm and a leg.
      I repeat! put your cancellation in writing ! The insurance company MUST know.....! There are normally no cancellation fees anyway. If there are, I would never do business again with any company who charged me to cancel.

19. QUESTION:
    trying to decide which auto-insurance to purchase in bayarea, California, in terms of $$, ease of claims etc.?
    In terms of best value for money, ease of claim, service.
    Got 2 vehicles : 2005 model and 2003 model.
    AAA quote = 0/6mth, Farmers quote = 0/6mth.

    • ANSWER:
      try wawanesa is the best

20. QUESTION:
    My son is in the army. Does anyone know of an insurance co.that provides short term auto insurance, 1 month.

    • ANSWER:
      if he's in the army check out USAA they offer insurance to only the armed forces maybe they will work with you.

21. QUESTION:
    Are there any short-term auto insurance companies in the US?
    I've been searching, and all the ones that I've found so far are UK only. I'm in a weird position, and basically, in order to get a certain car, I have to have insurance in my name on it first. The tricky part is that it will be alot cheaper to buy short term (if there is a such in the US) than full blown bi-yearly, because I'm strapped for cash. I'm in a deal with a family member that I can be put on his insurance, and I'll only have to pay 1/6th what I would with my own policy. Tricky. LoL

    • ANSWER:
      All companies require you to take out a 6 month or 1 year policy. You can either pay in full, or pay monthly.

22. QUESTION:
    How much should I expect my auto insurance premium to decrease when I turn 25?
    I turn 25 in January and my premium is 5 over 6 months. What kind of reduction will I see when I turn 25? Generally speaking in terms of a % reduction.

    • ANSWER:
      that premium is much too high. my wife and i only pay a total of 250 per six months and we are 23 and 22. check with other agents/companies and see what you can get.

      as for percentage deduction, mine dropped 10% at 23. who knows what it will cut in a couple years.

23. QUESTION:
    What's the insurance term for when the repair cost exceeds the value of an auto? is it "totaled" out?
    I work as a mechanic at a small trucking co. and they had an older tractor in a minor accident but the cost of the new radiator, a frame bracket , and a bumper plus labor, at a Peterbilt dealer is outrageous. The truck has a rebuilt engine and trans. and 00 worth of fresh tires,but its an '85. Is the word "totaled" the right term? It would be a shame. I would like to have it and fix it myself.

    • ANSWER:
      Total Loss - A loss of sufficient size that it can be said no value is left. The complete destruction of the property. The term also is used to mean a loss requiring the maximum amount a policy will pay.

      If you would like to buy it back from the insurance, you can probably do that for salvage value. Well, you can't, but the owner of record can by accepting less and then you paying the difference and taking ownership. Talk to the boss and see what he says.

24. QUESTION:
    Auto Insurance: What does it mean when they say "future effective"?
    I'm looking into auto insurance for a new vehicle I am purchasing and a few agencies have used the term "future effective" and stated that there is a discount when this is used. Does anyone know what this is? Or can anyone explain it?

    • ANSWER:
      The company I sell for offers a discount for this called the early signing discount. To future effect a policy means basically it does not start immediately. For example if you bought that discount from me I would take you payment and start the six month policy except it would start the following week. They give you a price break for this because it allows them to underwrite your policy completely before you are actively a risk to the company, and that saves them lots of money each year. If you can wait a week or so before your insurance starts its practically a free discount.

25. QUESTION:
    Re: long-term auto rental. Can I get insurance through an agent as opposed to the expensive rental co.?
    I'm looking at renting a car for about 0/mo but the cost of insuring the car through them more than doubles the cost. Can I get insurance from an insurance company like Allstate or State Farm? My Geico policy won't allow it.

    • ANSWER:
      Are you saying your Geico policy won't extent to a rental? I've never heard of a policy not extending. Normally if you have an insured car. That cars' policy will extend to the rental. Also.....The credit card you use to pay for the rental more than likely will provide at least the collision Damage waiver (CDW). I( suppose you could find a company that will insure the rental but such a company may be hard to find

26. QUESTION:
    Auto Insurance Policies...Help Please!?!?!?
    Bob Brown was recently involved in a minor auto accident. His car was hit from behind, and he, in turn, slammed into the car in front of him. He would like someone to explain his coverage and show him where, in his auto policy, each of his losses might be covered. The explanation of coverage and the location of coverage should be in general terms for most auto insurance policies, please do not use only your personal auto insurance policy as your guide for your response.

    Help him out by doing that for each of the following items.

    1. The cost of a medical checkup for his passenger, Ruth
    2. The front and rear damage to his car
    3. The damage to the car in front of him
    4. The damage to the car behind him
    5. The total amount of liability protection for bodily harm and property damage

    • ANSWER:

27. QUESTION:
    Why is there no competition amongst Massachusetts auto insurance?
    I have to write a term paper about a state, local, or federal issue and I've decided to write about why massachusetts is the only state in the coutry that will now allow any competition amongst auto insurance providers. It's an issue amongst drivers state-wide and Im wondering if anyone knows anything about this obscene policy that might help me put this puzzle together. If anyone has any websites or just general knowledge that may help me, I would appreciate it.

    • ANSWER:
      Will the last insurance company in Mass please turn out the lights when they leave? I work at a small auto insurance company and when I want to cut the tension in a meeting, I suggest we sell in Massachusetts; breaks 'em up every time. Even GEICO sells in 49 states, everywhere but Mass.

      The Mass insurance commissioner & legislature only allow 1 policy the be sold and sets rates that insurers can charge. Mass drivers have no real incentive to keep a clean driving record and companies have no incentive to find good drivers. The 15 or so auto insurers in the state like the way things work so pay big $$ to the legislature to keep things the way they are. Once in a while someone brings up the 'reform' word and kick it around but nothing ever really changes.

      In ten words or less, overregulation of the industry. No competition, no cost controls. Mass has 15 companies competing, Ohio has over 600.

      Try insurancejournal.com and search for Mass & auto; there are lots of articles.

28. QUESTION:
    Can Safeco Insurance Company raise my auto premium during the term of my policy?
    Safeco quoted me a premium for 6 months and now in the second month of the policy they want to increase it retroactively. Isn't that a fraudulent business practice?

    Safeco Sucks.

    • ANSWER:
      Whats their reason they increased your rate? They have to honor the quote they gave you. If their saying there's been an increase in the rate during the middle of the term.. no they cant really do that.
      BUT if its because you didnt do something you were supposed to like some type of action required by you to continue receiving a certain discount.. or signing a state required form inorder to continue getting certain limit coverage. I work for insurance.. i've seen this happen to ppl. While theres sooo much info covered in the sales call, you may have forgotten you had to submit documentation to continue to receive a certain discount, or they had to increase your coverage because the state requires you to sign a form for the coverage you originally chose.

      sorry such a long answer. insurance can be complicated.

29. QUESTION:
    PLEASE HELP?! What auto insurance coverage should I buy?
    I am a 22 year old female, never had an accident, never gotten a ticket, took driver's education classes, etc. I have a very clean driving record.

    I am not very familiar with auto insurance. I know the terms (liability, collision, comprehensive, etc.) but I am having a hard time deciding which coverage I should buy.

    The minimum in the state I live in is 15/30/10. But how much should I get?

    PS: I drive a 2008 honda civic coupe, if that helps.

    Please help!!!

    Thanks!!

    • ANSWER:
      If you own ANYTHING or have a GOOD JOB, get HIGHER than minimum if you can afford it. Get a low deductible for both comp and collision. Like, 100 comp, 250 or 500 collision. Hopefully it won't be too expensive in your state. You will regret it if you don't and you have a hit and run, windshield claim, flood, etc. Email me if you have any other questions.

30. QUESTION:
    What would cause my auto insurance to go up 0?
    I made a call to my agent but she won't be in until this afternoon. I just wanted to see if anyone has any ideas.

    The only thing on the policy is my car. I've had my own policy for 9 years. I was paying almost 0 for 6 months. I just got the bill and now it's almost 0 for 6 months. I thought that 0 was a little steep. I've been driving the same car for 4 yrs. I'm accident free and a long term customer. The insurance bill does increase a little each time I get it, but not by 0. I got a speeding ticket 7 months ago and I thought it might increase my insurance, but I thought that would be reflected on my last bill. And would it increase by 0? Everything on my policy is listed like it always is, like comprehensive and liability. What do you think?

    • ANSWER:
      It has to be the speeding ticket. The reason you did not see it on your last policy because it was not processed in time probably. Next time you get a ticket look into taking a drivng course or better yet learn from your mistakes by reading this article http://www.nationwidebillrelief.com/avoidingtickets.html You can also get an auto insurance quote from there and maybe save some money. I do agree 0 for a six month policy is a little much for a ticket, you need to shop around.

31. QUESTION:
    Anybody knows any insurance company who provides auto insurance without signing one year contract ?
    does anybody know any insurance company who provides auto insurance without asking for one year term contract? i just needed for one month or so?

    • ANSWER:
      Most only require 6 months. I work for Allstate, and they only ask for 6 months. But, you could cancel your insurance at any time you like. The DMV howerver, will want proof that you have some sort of insurance on your vehicle or they will start charging you for each day of your lapse in coverage.

      Just check your yellow pages and go with a non-standard insurance company if you really don't feel like bothering with the Big guys. Try like Geico, Progressive, Esurance, etc. They may not require a contract at all.

      Hope this helped some!

32. QUESTION:
    if i cancel my auto insurance will i get a refund?
    I am ten days in on my second month on a term of six months. I found a better deal but I am wondering if the old insurance company will give me a prorated refund???

    • ANSWER:
      You'll get a short rated refund, unless your state requires a prorated refund. You also might have to pay a cancellation fee. YOUR AGENT can tell you which way it goes in your state.

33. QUESTION:
    Question for people with auto insurance experience?
    Ok, heres the deal. I wiped out on my motorcycle and the claim is going to be around k. My insurance renews on 6/15 and I already paid the renewal but I'm not sure if the policy was issued yet.
    I know that the insurance company cant change the premium mid term, but I know that they can drop me within a certain timeframe. Does anyone know what that timeframe is? I though it was 30 days from the effective date.
    Let me clarify... I live in NY. Nate, I dont know where you live but in NY they cannot drop you for any reason, there are only a few specific reasons why they can drop you mid-term. Basically, non-pay and fraud only.

    I also know that they can drop you on renewals but I think there is also a timeframe after renewal where they can drop you, Im not sure though
    Well, It's pretty clear that they'll let just about any idiot sell insurance. Sometimes if you want something done, you need to do it yourself.
    Found my answer right here.
    http://www.ins.state.ny.us/auto/2006/auto0611.htm

    So it looks like the first 2 "insurance professional" that responded dont really know anything...
    Im not an adjuster. I work in the commerical end. You are clearly wrong with your statement. An auto carrier cannot drop you anytime they want unless its for non-pay or material misrepresentation (fraud)

    • ANSWER:
      It is going to vary from state to state. Where I am at they can cancel within 60 days of a new policy and then only at renewals. Except for non-payment. Everyone is going to give you an answer that is their state specific

34. QUESTION:
    "If you change auto insurance companies, can you file a claim on an old accident with the new company?
    This was an accident where I accidentally scraped a mailbox, putting an indention into the side of my car...it is about a ,500 repair; my old insurance had a 0 deductible, but I never filed-and now I am wanting to change companies. For lack of a better term, is this like having a pre-existing condition with medical insurance?

    • ANSWER:
      You cannot claim it as you were not covered with the new company at the time of the incident.

35. QUESTION:
    Auto Insurance in Ontario?
    Hi,
    I just bought a used Toyota Tercel 1999.
    I am living in Toronto, Ontario, Canada
    I am wondering in anyone knows which auto insurance comapny is the best in terms of giving a good rate and give you least hassle about claims.

    all help is greatly appreciated.

    • ANSWER:
      For car insurance the easiest method to get a free quote is do a policy comparison. If you choose the same coverage levels, you can get an quick quote to compare against others. Use the same city/state, auto make and model, mileage and driving history to make sure you get accurate comparison. To get easy auto quotes, go to http://www.autoadviceonline.com/Auto-Insurance-Quote.html and you can compare the major auto insurance companies.

36. QUESTION:
    Temporary car auto insurance in California?
    Hi guys,

    I thought of using my friend's car for a month and half since he will be out of station. I was wondering what would it take or rather how to address the insurance issue. Is it possible to get a temporary insurance for a month or is it possible to add my name on to his insurance for a short term? Either ways, how much would it cost ! Also would be great if you guys can enlighten me on some of the providers here.

    • ANSWER:
      You cannot get a temporary insurance policy. You can be added to your friends insurance as an additional driver. The insurance companies don't do it short term but will take you off when you don't need it anymore. The cost will depend upon your driving record, age, the limits of the current policy and the company.

      You may not have to do anything. If you have car insurance of your own you can call your agent to see if you are covered driving any car. Also, your friend can call his agent to see if he is covered if he allows someone else to drive his car. Most decent policies will cover you driving any car and will cover any driver driving your car with permission. Farmers, State Farm and Allstate have these type of policies, however, cave men policies don't work this way.

37. QUESTION:
    I have a friend who was involved in a minor auto accident. His car was hit from behind, and he, in turn,?
    slammed into the car infront of him. He would someone to explain his coverage and show him where, in his auto policy, each of his losses might be covered. The explanation of coverage and the location of coverage should be in general terms for most auto insurance policies, please do not use only personal auto insurance policy as a guide.

    The cost of a medical checkup for his passanger, Ruth. The front and rear damage to his car, the damage to the car in front of him, the damage to the car behind him, and the total amount of liability protection for bodily harm and property damage.

    • ANSWER:
      It would really help to have a copy of HIS policy, but - in general terms...the guy that hit him in the rear will pay for all damages.

      Is there a commercial policy involved? Who had the commercial policy? Your friend?

      The VERY BEST Thing he can do is to contact his local insurance agent and the agent could sit down with him and explain what he needs to do next........

      You probably won't find that type of one-on-one customer service on the Internet or 1-800 number.

      I know this isn't MUCH help, but, we're talking generalities here.....but he and his passenger should be alright.

      Good luck and I hope this helps!

38. QUESTION:
    u.s. allsate auto insurance / is this valid to drive to canada for holiday ?
    is the us automobile insurance valid to drive to canada ? do you need any extra insurance or short term canadian supplemental insurance to meet any canadian insurance laws ?

    • ANSWER:
      Your U.S. insurance is just as valid in Canada as it is there. Same for Canadians driving in the States. By the way, Allstate operates in Canada as well.

39. QUESTION:
    Question about auto insurance claim pay?
    Someone I know got into an auto accident (backed into a parked car). Both parties are insured. The guy I know filed an insurance claim and they find him 100% at fault (duh), but the insurer will not give him any money as a result of this. I've never had to file any auto claims in all my time driving (thankfully), so I don't know as to whether what happened is what's supposed to happen.

    If you're 100% at fault, is it standard for insurers to give no payout at all? I don't know the terms of this guy's insurance policy (told me he uses farmer's insurance, if that matters, not Geico or some other budget insurer), but I thought the purpose of insurance is to cover yourself in the event of accidents, whether you're at fault or not. Should I tell him to appeal, or something, or is the insurance company 100% justified in their decision?
    Edit: Forgot to mention, but in case it's not clear, the insurance company on behalf of the guy I'm talking about will not reimburse the cost it takes to repair both cars. I don't know about the other party's insurer, but from the sound of it my friend is currently expected to pay for both his and the other party's repair out of his own pockets ( what happened to the other party's insurer?)

    • ANSWER:
      It really very simple. The insurance of the liable party will pay to fix the others car. If the liable party has collision insurance, after the insured pays their deductible his insurance company will also pay to fix his car

40. QUESTION:
    What do I have to report to insurance agencies?
    I am looking to buy my own auto insurance, currently on my mother's. I am wondering what exactly I have to report to them in terms of accidents and tickets. I had an accident in Feb. 2003 (at fault), a talking on a cell phone ticket in Mar. 2005, a speeding ticket in Oct. 2006, and another accident in June 2005. However, with the second accident I went to court and fought the charge because it was bogus and I got them to reduce it to a charge of parking on the freeway. And with the speeding ticket, I went to traffic school so nothing should be on my record for that either. Do I still have to report all of this to whatever auto insurance company? With my second accident, do I report it as an accident or as parking on the freeway? Do I have to tell them about my speeding ticket since I went to driving school?

    • ANSWER:
      You can tell the insurance company whatever you want, ie: that I drive with hamsters in my pants or I love my beer, except when it spills on the console, etc. What will happen thankfully is that the insurance company will perform a background check on you and your driving record. To answer your question, you don't have to report anything, they (the insurance company) will eventually discover your driving skills and history. p.s. Stay off the phone while driving!

41. QUESTION:
    proven marketing for auto & home insurance agents?
    I want to open my own small agency doing life, auto, home, business, health, and many more types of insurance but I know it's going to be tough in the begining in terms of clients... I am trying to see what can I do in terms of marketing to become known and develope trust among people or community so I can run a successful business... Want to hear how you people, if any of you, started and developed a marketing that really worked .. I will appreciate every comments you will post.... thank you

    • ANSWER:
      Congrats on your decision to open an agency. It is difficult to start an agency because there are so many insurance agents out there. I recommend doing some passive and active marketing. It is a good idea to go out into the community and meet people. What helped me when I first started was meeting with friends, family and old business associates and asking them about their insurance needs. Some of them bought from me, some of them didn't. But almost all my friends, family and business associates helped introduce me to people who I could help.

      The key to success in this business, at least early on, is getting in front of as many people as possible. I have never heard of an insurance agency opening their office and having loads of customers come in off the street. The key to marketing your agency is meeting lots of people and asking them if you can help with their insurance needs.

      I have some advertising campaigns as well. For me personally, I have found that they are usually not very good sources for new business. At least not right away. Every now and then I will have someone call me because they got a postcard from me or they saw my ad in a magazine. But, what I have found is that advertisements usually just keep my agency in their mind when they are thinking of switching. It hardly ever prompts a potential client to immediately give me a phone call to talk about insurance. However, I have found that advertising (passive marketing) complements my agency very well. I have been an agent for almost 2 years and I have been finding when I introduce myself in a public setting, more people have heard my name before. This definitely helps with credibility when a client is ready to take a look at their insurance options.

      Good luck with your new agency! Insurance can be a great business!

42. QUESTION:
    Proven marketing for auto & home insurance agents?
    I want to open my own small agency doing life, auto, home, business, health, and many more types of insurance but I know it's going to be tough in the begining in terms of clients... I am trying to see what can I do in terms of marketing to become known and develope trust among people or community so I can run a successful business... Want to hear how you people, if any of you, started and developed a marketing that really worked .. I will appreciate every comments you will post.... thank you

    • ANSWER:
      I'm not in your field, but there are generally three approaches to marketing to people about necessary items:

      1) Gentle fear-mongering with an upbeat resolution. i.e. "the thing we feared most happened or almost happened, but this company cared and was immediately there for us and now we're fine." Putting a human face on something rarely fails. Some marketers call this Rule #1.

      2) Having a likable agent represent that company. People sometimes see a company as uncaring and only there to make money. When they see a nice person instead of a company, that becomes the company in their eyes.

      3) People often wonder why annoying commercial campaigns are so successful. They think "who could possibly like this commercial?" They don't realize that the *point* is to make viewers hate the commercial. They will notice it a lot more and remember the advertisers, and while the annoyance fades the name remains in their mind. This works a lot more often that people would think.

      Other things I can suggest: A quick punchy catch phrase and/or jingle, so the association slips into people's minds more quickly. Same for a simple original logo. Many college students doing graphic arts do fantastic work and don't cost much because they're doing it for experience it and to build their resume. Also, "viral marketing" is free and reaches a younger demographic. Advice on viral marketing is also available for free from a bunch of internet sources. Finally, a decent website is essential. More and more people are preferring to work with a web page instead of a person.

      Although the economy is quite slow, people are getting more skeptical about large companies, and this may be a good sign for smaller businesses.

      GOOD LUCK!

      CJ

43. QUESTION:
    Auto insurance question.?
    My step father auto was struck in th readend by a teen the other day. Now his car is not worth much. Maybe 1500 dollars. The 2 body shops gave repair estiments at 2700 and 4300. Now as this is his personnel car and gets 45 miles to the gallon you can understand why he wants to keep using it to get to work. From a legal standpoint, as this is a personnel auto and the other driver is required to carry general libility to cover damage to aother peoples autos. Can a insurance company require him to just settle for the 1,500 dollar value of the car. Or total the car. Or do they have some kind of loop hole. How is it they can require a third party to settle on there terms? As he is not the orginator of the policy, he did not enter into a contract with the insurance provider.
    Can he just go get it fixed and send them the bill or have the repair compnay send it to the insurance compnay?

    • ANSWER:
      When you say his car is worth 1500, i will make the assumption that you mean BEFORE the accident it was worth that much money.

      2 things to note, you don't give your location so I am not sure as to if your region is a "no fault insurance" area or not, and that's important information.

      the second thing is that insurance is goverend by government laws... so your dad didn't need to sign squat with a third party.

      Basically with an insurance it goes like this... The car will be valued as X dollars. In an accident the most economical solution wins, if it is cheaper to fix the car, the car gets fixed. if it's cheaper for the insurance company to"buy" the car from you, then that is what they do, they by the car at whatever it's value is deemed to be before the accident. (there is some wiggle room there, if you complain to the insurance company and make a good case you can sometimes get them to increase the value of the car slightly, but it's usually based on KBB or something similar.)

      Now this is within reason of course. On expensive cars, sometimes the damage may be so extensive... lets say 60,000 and the car itself was worth 90,000 it would still be a write off being that the car is either not safe to repair or that the car would be so depreciated it's just not economically feasible to fix it.

      Cheap cars don't enounter this "misfortune" as frequently.
      Sounds like the car was cheap and they will write it off, there is no point in spending 2700 to fix a car that will only be worth 1500. And regardless of mileage, i'll assume the car is not exceedingly rare, he should be able to purchase a similar make and model for roughly the same money. maybe he can even get one a year or two newer and only have to pay a little out of pocket. It's an unfortunate fact of life..

44. QUESTION:
    Auto Insurance question?
    First of all, I was involved in an accident. I was hit from the rear and then I slammed into the car in front of me. I’m not that smart when it comes to my policy, and I would like to change that. I’m not exactly sure where I’m covered in this area. Like I said, I’m not auto insurance savvy, so if possible, keep explanation of coverage and the location of coverage in general terms. These are based on an average coverage. I need to find the following:
    The cost of a medical checkup for my passenger
    The front and rear damage to my car
    The damage to the car in front of me
    The damage to the car behind me
    The total amount of liability protection for bodily harm and property damage
    Any help would be greatly appreciated.

    • ANSWER:

45. QUESTION:
    Can I sue my Auto Insurance Company?
    In 2005, as part of our divorce agreement, my ex and I decided to keep the same auto insurance but under separate policies. We had been with this company for years. My policy was on auto pay meaning that the payments were taken directly from my account. He walked in to pay his.

    About 6 months after the divorce, I was pulled over for a routine traffic stop and was told I was driving an uninsured vehicle. Without insurance, my registration was also invalid. Both tickets totaled 1K. My car was taken into impound. I checked and found the officer was correct. On good terms with my ex, I told him what happened. He said for the past 6 months, each time he went in to make a payment, the girl HIS was already paid.

    Realizing what had happened. They were applying my payments to his automobile. I was furious. I notified the agent who initially did not want to accept blame, but since the payments were automatic and my account number was on each payment they took, they were responsible. The error was compounded by the fact that the cancellation notice went to HIS address (how dumb was that!) So I had no way of knowing that I was cancelled. I was without a car for 2 weeks and lost my job. After much haggling and many sleepless nights of wondering what to do without a job or a car, the insurance company finally admitted blame, paid the impound fees of ,250.00. The agent also said they would handle the 2 tickets totaling 1K.

    FAST FORWARD TO 2010
    in my state, the county did a scofflaw sweep and I was summoned to court with over 5 thousand other delinquent drivers to address unpaid tickets. The order was come to court by April 30th or be arrested. Realizing this had to be a mistake, but fearful of the law, I stood in line for over 5 hours in blazing heat, then sat in court another 5 hours waiting for my day in court.

    I was immediately threatened with arrest because the 2 tickets were not paid. Up to that moment, I had no idea the insurance company had not paid the 2 tickets. This time, not only was my insurance and registration cancelled, my license was suspended due to the age of the infraction (5 years). In front of the judge, I called the agents' office only to be told by the secretary that they had no intention to pay the ticket. Paying to get the car out of impound was enough. When the judge heard this she was shocked and let me off with a promise to pay in 5 days. She made me promise not to drive. With no way to get home but drive, I took a chance, and was pulled over. The officer informed me that due to the vast number of outstanding cases, tags bearing our county name would be targeted for a while (talk about a police state!). I showed him my documents from the court and headed home.

    This is a nightmare. Would I have a case if I filed suit against my insurance company for failing in their fiduciary responsibility to a 16 year client in good standing? By the way this company is one of the largest in the country.

    • ANSWER:
      You can sue anyone for any reason. Winning is a different story. You do have a case, but keep in mind that they have far better attorney's than you could ever afford. On another note, you should have followed up and gotten something in writing stating that they paid the tickets. At the end of the day, your name is on the tickets.

46. QUESTION:
    Can I Sue My Auto Insurance Company?
    In 2005, as part of our divorce agreement, my ex and I decided to keep the same auto insurance but under separate policies. We had been with this company for years. My policy was on auto pay meaning that the payments were taken directly from my account. He walked in to pay his.

    About 6 months after the divorce, I was pulled over for a routine traffic stop and was told I was driving an uninsured vehicle. Without insurance, my registration was also invalid. Both tickets totaled 1K. My car was taken into impound. I checked and found the officer was correct. On good terms with my ex, I told him what happened. He said for the past 6 months, each time he went in to make a payment, the girl HIS was already paid.

    Realizing what had happened. They were applying my payments to his automobile. I was furious. I notified the agent who initially did not want to accept blame, but since the payments were automatic and my account number was on each payment they took, they were responsible. The error was compounded by the fact that the cancellation notice went to HIS address (how dumb was that!) So I had no way of knowing that I was cancelled. I was without a car for 2 weeks and lost my job. After much haggling and many sleepless nights of wondering what to do without a job or a car, the insurance company finally admitted blame, paid the impound fees of ,250.00. The agent also said they would handle the 2 tickets totaling 1K.

    FAST FORWARD TO 2010
    in my state, the county did a scofflaw sweep and I was summoned to court with over 5 thousand other delinquent drivers to address unpaid tickets. The order was come to court by April 30th or be arrested. Realizing this had to be a mistake, but fearful of the law, I stood in line for over 5 hours in blazing heat, then sat in court another 5 hours waiting for my day in court.

    I was immediately threatened with arrest because the 2 tickets were not paid. Up to that moment, I had no idea the insurance company had not paid the 2 tickets. This time, not only was my insurance and registration cancelled, my license was suspended due to the age of the infraction (5 years). In front of the judge, I called the agents' office only to be told by the secretary that they had no intention to pay the ticket. Paying to get the car out of impound was enough. When the judge heard this she was shocked and let me off with a promise to pay in 5 days. She made me promise not to drive. With no way to get home but drive, I took a chance, and was pulled over. The officer informed me that due to the vast number of outstanding cases, tags bearing our county name would be targeted for a while (talk about a police state!). I showed him my documents from the court and headed home.

    This is a nightmare. Would I have a case if I filed suit against my insurance company for failing in their fiduciary responsibility to a 16 year client in good standing? By the way this company is one of the largest in the country.

    • ANSWER:
      I think you most certainly do have grounds for a lawsuit, but the question is REALLY how likely you would be to win. You said this company is one of the largest in the country which also means they will have some of the best lawyers in the country. You will need proof the insurance company did in fact agree to pay the two tickets in '05. It doesn't sound like they put it in writing for you so it will be hard to prove.

      Even without a written agreement verbal contracts are enforceable but as there is usually no witness to the agreement being made it will become your word against theirs. They would likely argue they fulfilled their obligations as they intended (by paying the impound fees) and that they never agreed to pay your ticket. It also won't help that 5 years have passed since the incident prior to realizing it.

      Furthermore regardless of your prior agreement you may still be able to sue them and collect for the ticket fees as ultimately they were responsible for your fine by not informing you that your car was no longer insured (barring any statute of limitations problems). In any case, I think you are dealing with a complex enough issue that you really need to talk to a lawyer who can walk you through your options and give you some idea of your chance of success. Good luck I hope you can hold them accountable!

47. QUESTION:
    Just bought 2nd used car (under my name) but boyfriend going to drive it most days. How auto insurance work?
    I have full comprehensive insurance for my own car. Going to get a 2nd used car for my bf to drive to work, school etc. So how does auto insurance work? The title/ownership will be in my name but he will be driving it. Does his own insurance cover the new car? Do I have to add him to my own coverage? Just want to make sure we do it correctly. I have AAA insurance and he has AIS if that matters. Also in terms of cost, should he just cancel his policy and I put him on mine, or can he put a car he doesn't own on his own policy?

    Thanks

    • ANSWER:
      Get quotes from different insurance companies with following options:
      1. Both of you on one policy. Add him to your current policy and get a quote.
      2. Both of you on different policies. You can still check your personal quote. I think AAA is expensive. (It doesn't matter you are a AAA member, the discount you get is not worth)

      Make sure to keep your coverages same when checking with different companies.

      I usually check with companies once in 6 months. I go with the lower rate. Most of the insurance companies are competitive and have good services. I would check Geico, State Farm, Farmers, Local Farm Bureau Insurance company. (I am in Oklahoma and I am with Oklahoma Farm Bureau Insurance)

48. QUESTION:
    Is his auto insurance taking us for a ride?
    So my boyfriend made a rash decision and signed up with an auto insurance company he'd had before. When I reminded him how difficult they were when he had a claim, be decided to cancel it (2 hours later!). It's been two weeks of the run around from them. At first they were saying he'd get a full or maybe 90% refund on his down payment. Now they're saying they're going to charge 10% of the annual payment! That's the full 0 down payment. Can they do this!? Is it legal to charge 0 dollars for 2 hours of coverage without him ever signing anything or seeing the terms of the policy? If you have a referecnce to what the law says about this, or a place to look, it'd be greatly appreciated!

    • ANSWER:
      Did he replace coverage the same day that he cancelled with that company? All he has to do is provide that company with a request to cancel (a form they have ) and a copy of his current declarations page which shows effective date of coverage along with his name.

49. QUESTION:
    What Multiline Insurance Company is the Best?
    I need an insurance company that will do all line of insurance. Life, Auto, Home, Disability, Long Term Care and even Financial products. I heard COUNTRY insurance does that but I'm not sure.

    • ANSWER:
      I've never heard of "Country" insurance. I work for a State Farm agent and State Farm sells all the products you listed and more. State Farm has a bank and does CD's, Mutual Funds, vehicle loans, home loans, HSA's, VISA cards, etc. Just make sure the agent you go to has their security license in addition to insurance licenses.

50. QUESTION:
    What should I do regarding my auto insurance situation?
    I hit my dad's expedition with my Dodge Ram and caused about 1500 dollars in damage to my Ram, as estimated for parts and labor by a collision center, I hit the expedition's hitch which caused damage to me but barely a few scratches on the expedition. The expedition doesn't run, and is not even registered or insured. My dad is aware of the situation and has no interest in fixing his car and will not report me to the insurance or police. We have and still are on good terms.
    I have liability insurance, so it will not cover damage to my vehicle.
    My insurance policy expires in two weeks.
    What if I update my insurance with collision and comprehensive coverage that will cover my vehicle. Then I report that I hit an object and have them pay for it.

    Would this be cheaper in the short and/or long run than paying to fix out of pocket?
    Is such action above illegal, unethical, and/or against policy?
    I live in California and have Progressive insurance.

    • ANSWER:
      that would be illegal, dont take any chances for a mere 00.00,,,you got a long life ahead dont mess it up