The Facts About No-Fault Insurance

Posted on Nov 17th, 12:56 am, under Are You Covered?

No-fault insurance can be a misleading or confusing term. Contrary to what the term implies, it does NOT mean that drivers will not be found at fault in accidents; some or all parties involved will always have to take responsibility, whether full or partial. 

What no-fault insurance really means is that benefits are paid to insurance policy carriers, no matter who caused the auto accident. This means that you get financial assistance (up to a specified limit) when you need it most, immediately after the accident, without having to wait for the insurance companies of those involved to decide who was ultimately responsible for the damages. In return, you surrender some of your rights to sue the other party.

This special form of insurance is available in many countries, but only the following thirteen US states have adopted it: Colorado, Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.

There are several benefits to having a no-fault system. These include the aforementioned faster payment of claims, elimination of costly and time-consuming lawsuits, lower insurance rates (legal fees count for 12 percent of premium costs), and accessibility to people with less financial means (due to the lower rates).

However, no-fault insurance also has its drawbacks. Critics argue that most of its benefits don't really get applied in reality, and that no-fault encourages bad drivers since they can't be sued for the damages they cause. It also doesn't offer compensation for non-economic damages, such as paralysis, pain, and suffering. In addition, insurance premiums in no-fault states average at 25 percent higher than those in traditional insurance states, thus eliminating any savings from the lower rates.

The thirteen states listed above have adopted a modified no-fault system, meaning that you will be automatically compensated for damages up to an amount specified in the policy, but you may still sue for non-economic damages if these exceed a particular limit. It can often be a complex issue. You can get more detailed information about no-fault auto insurance here and here. If you live in a state that requires no-fault insurance, you may also want to ask your attorney for professional advice on this special form of insurance. 

Car Insurance for Senior Citizens

Posted on Nov 16th, 02:46 pm, under Find The Best Auto Insurance Quotes

Usually, a vehicular accident is one of the first signs that a senior citizen should stop driving. Now this can be a really difficult thing to do; it's always hard to give up one's independence. But it is also an indisputable fact that a person's vision, coordination, and reaction time deteriorate with age. Drivers over the age of 75 have among the highest rates of fatal daytime accidents. If you're a senior citizen who still wants to keep on driving, it's absolutely imperative that you maintain your driving skills.

Just like any other driver, you'll also be needing auto insurance if you want to get on the road. Check out our quick list of tips for lowering your insurance rates for senior citizens: 

1. Pass a defensive driving course. Eight-hour classes are offered by local and state agencies at a cost of $10 to $30 an hour. You may also ask your insurance agent about the availability of these driving courses, inquire at the nearest AAA chapter, or check the web site of the National Safety Council. The good news is that most states mandate insurance policy discounts for these classes, and several insurance firms offer them of their own accord.

2. Check for other discounts. If you are already retired and don't have a full-time job, you may be able to get a 5% discount off your auto insurance. However, the specific age requirement for benefits like this varies according to insurance companies and state laws, so ask your insurance agent for more information. You may also get discounts for air bags, anti-lock brakes, and other safety features.

3. Do some comparison shopping. Use consumer auto insurance information from your state's insurance department. To find your state's auto insurance information, you can check the National Association of Insurance Commissioners website.

4. Drop some insurance policy components. This is more advisable for owners of older vehicles. You can generally afford to dispense with collision and comprehensive coverage. Consider increasing your deductibles as well.

5. Don't get into accidents. Keeping a clean driving record is one of the best ways of keeping your insurance rates down, no matter what age you are.

In the end, remember that medications, health problems, and physical conditions may keep you from operating a vehicle properly and safely. Conditions that have been tied to auto accidents include the following: diabetes, joint inflammation, vision issues, neurological disorders, and foot problems. Always be realistic about your capability to keep driving. Ask your doctor for the final verdict on whether you're fit enough to drive yourself. 

Getting Auto Insurance With A Poor Driving Record

Posted on Nov 8th, 10:30 am, under Improve Your Auto Insurance Rate

The best way to get a good deal on your auto insurance is to keep a clean record. But no matter how poor your driving record is, you still need to get auto insurance. If you have a less-than-perfect personal history behind the wheel, you can probably expect your premiums to be high as a result of your past recklessness (or misfortune; even a collision where you weren't at fault can still hurt your record). But don't lose hope just yet. There are still ways for you to save money on your auto insurance, even with a bad record. 

First of all, try reducing the amount of insurance you carry. This can be achieved by driving a less expensive car, for example (no SUVs or sports cars, please). In doing so, you can afford to dispense with some of the less essential components of insurance, such as collision coverage (which covers any damage your car sustains by hitting another object), and comprehensive coverage (which protects against damages to your vehicle from non-collision causes, such as fires and floods).

Although you should never drive without liability coverage, you may choose to reduce the amount you carry, as long as you do not go below the minimum requirement required by your state. When reducing your liability insurance, be especially careful if you own other assets, such as a personal business or a home. If a serious and costly auto accident exceeds your liability coverage, you might lose those vital assets.

In addition, the sooner the improve your driving record, and the longer you keep it that way, the lower you can expect your coverage to cost. Insurance firms won't hold your past mistakes against you forever. Still, you must never lie about your driving record when applying for insurance. All applicants are thoroughly investigated, and getting caught lying will make it even harder for you to get insurance.

Finally, always search for the best deals possible online. Though some companies claim to specialize in insuring high risk drivers, you can never go wrong by checking sites that offer multiple quotes for your comparison