Auto Insurance Requirements

Reader’s Question:

For a new driver like me who needs to get auto insurance here in Kansas, what are the important things that I need to know about my getting coverage?

Brent

Wichita, KS

There are some important things that you have to understand and remember before you get your auto insurance in Kansas. The very first thing is that in the event of an accident, the medical expenses of each driver would be covered by their auto insurance policy no matter who was at fault since Kansas is a no-fault state. You also need to know the state’s minimum coverage which is $25,000 for one person and $50,000 for all persons for bodily injury in a single accident and $10,000 for property damage liability.

Aside from the required auto liability coverage, you are also required to get at least $4,500 for Personal Injury Protection (PIP) in Kansas. This coverage would help pay for the needed medical fees for you as well as your passengers. Another required coverage on your auto insurance would be the uninsured and underinsured motorist coverage. You have to carry at least $25,000 for one person and $50,000 per accident for bodily injury incurred by a driver who doesn’t carry auto insurance or who doesn’t carry enough coverage.

Remember that these types of coverage are just the minimum requirements in the state of Kansas and you have the option to get more than the required coverage for your auto insurance. This is to make sure that everyone in your household is well protected in case you get involved in an accident.

Auto Insurance Company Reviews

Reader’s Question:

What are the usual complaints of people against motor vehicle insurance companies? is there a place that shows auto insurance company reviews?

Ted

Jefferson City MO

 

Some people have this negative perception towards motor vehicle insurance companies because they thought they just get their money without getting much value in return. Motor vehicle insurance companies provide insurance policy, to owners of vehicle, which is specifically to answer the damages to property or people caused by the car being insured. So getting vehicle insurance is actually a sign that you are a responsible driver. The driver means he or she will answer the unexpected damage his or her car might cause to other properties or person. It’s the reason why government required owners to get vehicle insurance as a confirmation that they are indeed responsible car owners. You do not want irresponsible drivers running around your street, right?

Having vehicle insurance implemented as a law, car owners are obliged to get one. Unfortunately, some insurance providers take advantage of this need by luring people with cheap insurance rates but then have no intention of fulfilling their part of deal. This kind of insurance companies gives a bad impression to the good motor vehicle insurance companies.

Following are most complaints of people they have towards their motor vehicle insurance companies.

• Refusal to release claims. They will find ways to avoid paying you the claims.
• Slow and unsystematic settlement process. One sign of this is that they cannot provide a specific timeframe of when the processing will be done. The pay-out that you might receive is not enough to compensate for the time you wasted on making follow-ups.
• Shortchanged on claims. Some insurance companies will do pay but then less than what you originally agreed upon.
• No flexibility in choosing repair shop. Some insurance providers will not pay claims to repairs if car owners opt the service of other repair shops.
• Poor service quality from the repair shops preferred by insurance companies.
• High premiums but has low return of values.
• Insurers unexpectedly raised premium rates after accident.
• Bad customer relations.
• Inconsistency with their policies.

It’s good to be aware of these issues so you can avoid being trapped into a bad deal.

Auto Insurance Totaled Vehicle Value

Reader’s Question:

I would like to know how auto insurance agents or adjusters determine how much money they will pay me for my totaled vehicle here in Kansas. Thanks!

Milton

Lawrene, KS

Interesting question. It is always advisable to have a good idea of how much your can expect to get from your totaled vehicle before meeting up with auto insurance agents or a claims adjuster. These individuals are hired to always look out for the best interest of the company in every car accident claim they handle (which may not always be aligned with what is best for their policyholders).

A reasonable auto insurance company would pay you the amount of money or settlement equal to the market value of the said vehicle during the time of the accident. You can refer to web sites such as www.kbb.com or www.nada.com to get an idea of how much your vehicle costs. Of course, you will have to factor in all the administrative expense and deductibles involved when filing a claim that might be subtracted from the reimbursement check you will get.

Another effective way would be to look up the current value of your vehicle there in Kansas. You could also look up the current price of a very similar vehicle, if you can’t seem to find out how much your car model is worth these days. Don’t have false expectations that you can milk out more money from the auto insurance company since they will have all the necessary resources to know exactly how much your vehicle is currently worth.

Auto Insurance Law – The Risks/Consequences of Driving Uninsured

Reader’s Question:

Will my wife get in trouble if she drives around Ohio without her auto insurance card? She doesn’t have insurance yet on her vehicle and I don’t think she has any plan of getting one anytime soon.

Arthur

Cleveland, OH

Driving around without carrying auto insurance coverage is the last thing that you’re wife (or anyone else who drives) should be doing. Ohio, like most states today that have financial responsibility laws, requires everyone of its driver to carry adequate amounts of auto insurance at all times while on the road. So technically, you’re wife is breaking Ohio auto insurance law for continuing to drive without coverage.

If she does get caught driving (or is involved/caused an automobile accident) and is unable to show proof of auto insurance coverage on the spot then she can immediately lose her driving privileges, among other things. Aside from serving a suspension period (that can be as long as a year) she would need to settle a reinstatement fee. Your wife may also need to acquire an SR22 form and maintain it along with adequate insurance or a surety bond with Ohio’s Bureau of Motor Vehicles (BMV) before any form of driving privilege can be reinstated.

Aside from administrative penalties, both you and your wife are also exposed to a huge financial risk for not carrying auto insurance. The cost of a major automobile crash can easily run up to tens of thousands of dollars. She could be sued for bodily injuries and property damages to any third-party she happens to injure during an accident. Unless both of you are capable and willing to shoulder these costs, then it is highly recommended that you help your wife understand the significance of auto insurance.