Settling Auto Insurance Claims Without Lawyers

Posted on Dec 2nd 2009, 04:06 pm, under Auto Insurance 101

When you're involved in a car accident, you don't want it to be a financial headache. And the last thing you want to do is spend more money by getting lawyers involved. The average fee that a lawyer typically charges is around a third of your total claim amount. You'll end up with considerably less money than if you had successfully settled the claim on your own. Therefore, it is often in your interest to dispense with lawyers' services and settle your own auto insurance claims, especially when they are relatively small.

If you're thinking about settling your claim yourself, you should go through your insurance policy thoroughly. Focus on the necessary conditions section and familiarize yourself with the responsibilities of the insured party. If you don't uphold these duties (such as limiting losses), you may weaken your case later on.

Collect as documentation as possible on your accident. Take lots of photographs of injuries you may have sustained and of the scene itself. Keep your copy of the police report on the incident. If you weren't the one at fault in the accident, this latter document is especially important. 

After the accident, don't wait to visit a doctor. See one immediately and inform him or her of any injuries and pains the accident may have caused, no matter how trivial they seem. If you delay your medical checkup until after you file a claim, your insurance company will take this as a warning sign.

Furthermore, never miss any future appointments with your doctor. Follow all medical advice to the letter. Failure to do so will make your injury claim appear less serious to the insurance adjuster, and they could allege that you didn't do everything you could to take care of your health after the accident. (Wondering what an insurance adjuster does? See it here.)

When you are ready to file the claim, write a formal introductory letter addressed to the claims adjuster. Include all relevant photos and documentation, such as the medical report and police report. Here's a sample letter to help you get started.

So just how much should your claim be? There is no hard and fast rule for this, but a good rule of thumb is to base it on your total medical expenses, and then add all income lost due to inability to work multiplied by three. Then, it will depend on your evidence and negotiating skills from there. You may also let your insurance provider make an offer and then proceed from that amount. 

The Facts About No-Fault Insurance

Posted on Nov 17th 2009, 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 2009, 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.