What Are The Different Types of Auto Insurance Policies?
Reader’s Question:
What are the types of auto insurance coverage that I should know about before I sign up for a policy here in California?
Justin
Oakland, CA
Auto insurance in the state of California has various types of coverage and this will be based on the kind of auto insurance claim that would be paid out to the policyholders and other people involved. A type of auto insurance coverage would be the personal injury protection or what is commonly known as PIP. PIP will give protection to the motorist or the policyholder and others, which depend as to who was in the vehicle when the accident happens. PIP will also give medical coverage no matter who caused the accident.
One other type of auto insurance coverage would be the liability insurance that will cover the damages sustained by the other driver in an accident wherein you are at fault. In case there will be a lawsuit filed against you, your auto liability insurance would also provide legal assistance. Bodily injury and property damage are two kinds of liability insurance. Majority of auto insurance providers in California offer the same auto insurance policies. These types of auto insurance coverage will pay for anyone who is injured or killed in the accident in which you are at fault. You might think that the price of auto insurance is expensive when you buy coverage; however, it would be nothing in comparison to the amount you would have to shell out in case you don’t have any auto insurance coverage.
Uninsured Motorist Car Insurance In Arizona
Reader’s Question:
In Arizona, what does uninsured motorist car insurance cover?
Andrea
Phoenix AZ
The Uninsured Motorist car insurance in Arizona covers you or passengers in your car for bodily injury you or your passengers sustain in an accident involving a motorist who has no car insurance. This is according to the Arizona Department of Insurance.
There is also Underinsured Motorist coverage which covers you or passengers in your car for bodily injury you or your passengers sustain in an accident involving a motorist who does not have enough insurance to cover the your injuries or your passengers.
This coverage also covers your medical bills, loss of earnings and pain and suffering if you suffer injuries due to negligent motorist who lacks auto insurance, including a hit-and-run driver.
First Time Driver Florida Vehicle Insurance Rates
Reader’s Question:
Hey, I’m from Florida. I’ll be getting my vehicle insurance for the first time in this state. How is Florida vehicle insurance different from those in other states?
Paris
Orlando, FL
Where did you used to live, Paris? Vehicle insurance is regulated at the state level, and they all have different ways of handling driver responsibility.
In a tort state, for instance, it must be determined who is at fault. This driver will thus be responsible for whatever physical injury or damage caused by the accident. On top of medical expenses and repairs for the vehicle, the driver at fault must also cover additional losses of income and others.
Florida is a no-fault state, which means it is no longer determined who is at fault. Each driver’s own vehicle insurance coverage will pay for all the above losses. This system reduces the number of lawsuits filed because of car accidents.
Florida requires then for each resident driver to carry Personal Injury Protection (PIP), which will cover medical expenses and hospitalization of the driver and passengers. In Florida, PIP must be set at $10, 000 at the minimum. Additionally, property damage liability of $10,000 is required.
In most states, Liability Insurance Coverage, which pays for the bodily injury of the other driver is mandatory. Paris, states with tort system find this necessary to ensure that the victims’ losses are covered. For Florida vehicle insurance, however, this is not a requirement.
I Want Cheap Auto Insurance In North Carolina
Reader’s Question:
I want to get auto insurance in North Carolina. What should it cover? Will my driving record affect my premium?
Liza
Chapel Hill NC
Every person getting auto insurance in North Carolina should have liability and uninsured/underinsured motorist coverage. If you obtained leased cars, you might be required by your lenders to obtain comprehensive coverage.
Liability coverage would pay for damages incurred by you and other people, as well as other properties, as a result of the accident regardless of who is at-fault. Uninsured motorist liability will protect you at times you get hurt in accidents caused by an uninsured driver.
Liability coverage comprises of third party liability for bodily injury and property damage. In North Carolina, the minimum requirement is $30,000 per person with a maximum of $60,000 per accident; and a property damage of $25,000.Uninsured motorist liability is $30,000 with $60,000 limit.
Regarding driving records, the answer to your question is yes. Driving records can greatly affect your auto insurance in North Carolina. According to the Department of Insurance, North Carolina follows a Safe Driver Incentive Plan or what they call as SDIP. Every violation you have will have corresponding points. Every time you earn a point, your premium will increase by a certain percentage. For example, you were caught driving while intoxicated. You will earn 12 SDIP points. The corresponding percentage for that will be 340%. Thus your insurance premiums will be 3.4 times the original amount.
That is why, it is most important to keep a clean record when it comes to driving. Every time you are caught repetitively for minor violations, you will still earn SDIP for that and eventually you will be categorized as a high-risk driver. In the end, it will be harder for you to achieve cheaper rates.
You might have heard of discounts. If you have one minor violation, you might be entitled to a discount depending on how long you have had the offense.
What Are The Penalties For Driving Without Auto Insurance Arkansas?
Reader’s Question:
I need help. I was caught driving without auto insurance in Arkansas for the fourth time and I am just wondering what the penalties are? Am I going to jail?
Janice
Little Rock, AR
All drivers in the state of Arkansas are required to have the minimum amount liability insurance coverage in the amount of 25/50/25. This stands for $25,000 for bodily injury coverage of one person per accident up to $50,000 per accident and $25,000 for property damage coverage. If you are found driving without auto insurance in Arkansas there is a graduating scale of penalties, all with mandatory fines. If you are caught driving without auto insurance for the first time you are required to pay between $50-$250. If you are caught driving without auto insurance in Arkansas for the second time you are required to pay between $250-$500. Any third or subsequent violation will result to imprisonment up to a year and a fine between $500- $1000 or both.
So If you get caught driving without auto insurance in Arkansas for the 4th time you will likely be required to pay the highest amount of fine and will likely serve jail time also. I suggest you contact the Arkansas Department of Motor Vehicle to get more information as to what the penalties will be for being caught driving without car insurance for the 4th time.
Tips For Getting Cheap Car Insurance in Dallas
Reader’s Question:
What do I need to know about getting car insurance in Dallas?
Bill
Dallas, TX
The amount of coverage for car insurance in Dallas, as well as in any other city in Texas, naturally follows the state’s minimum requirements. All drivers in Dallas ought to have liability coverage with at least $25,000 for bodily injury for a single person for one accident, $50,000 bodily injury for more than two people in one accident, and $25,000 for any property damage in a single accident.
This city has a population of over 1.2 million and is considered the largest metropolitan area in the state of Texas. That being the case, you can expect car insurance in Dallas to be quite high. Companies that provide car insurance in Dallas expect a large amount of claims because of the city’s dense population. In fact, the National Highway Traffic and Safety Administration (NHTSA) ranks Dallas as the 6th deadliest city in terms of car accidents. In year 2004, there were actually around 148 fatal crashes in this city. Dallas drivers really need to drive safely and get good coverage.
Car theft is another thing that keeps car insurance in Dallas at such a high rate. There were around 23,537 reported cases of car theft in this city in 2005. Although comprehensive car insurance is not required in the state of Texas, if you live in Dallas, you might want to greatly consider getting one.
Ohio Automobile Insurance Rate Information
Reader’s Question:
Can you give me some automobile insurance information for the state of Ohio? What do I need as far as coverage, costs and factors that determine costs?
Peter
Columbus, OH
Drivers in the State of Ohio need to obtain automobile insurance coverage to comply with the strictly enforced rule of financial responsibility. To have adequate insurance in Ohio, a driver has to be able to have minimum liability insurance. This will aid in financial concerns following a traffic mishap that the insured caused. This coverage provides up to $12,500 for any bodily injury to one person at any one accident, $25,000 bodily injury benefits to all passengers in the other party’s car, and $7,500 for any damaged property.
Being involved in an accident may mean that the liable driver may have sustained bodily injuries and damages to his or her car too. If this driver does not have the collision and comprehensive insurance effective during the accident, then he or she will have to personally shoulder all expenses for hospital treatments and car repairs. Liability coverage takes care of the other motorist. Collision and comprehensive coverage takes care of you. This will also be the case if a driver has no Personal Injury Protection (PIP) and was hit by a driver without the monetary capacity to pay for the damages. It is important to always buy as much insurance as you can afford and check for updates on automobile insurance information from your insurer or the state’s insurance regulator. Even the safest drivers can get the worst of luck.
Types of Auto Insurance Coverage
Reader’s Question:
Hi there. I’m trying to learn more about my auto insurance policy as I would like to know where I can cut costs, but I don’t understand some of the items in my policy. I only know about the Liability Insurance, which is what most states require. Can you help me out wit the others, and which ones can I cut down on?
Adam
Cleveland, OH
For the state of Ohio, you or anyone else who uses your vehicle will need proof of insurance or financial responsibility. This state requires a minimum coverage of $12.5K bodily injury per person with a maximum of $25K bodily injury in any one accident and a $7.5K coverage for property damage. If you do decide to cut down on some insurance, make sure you do not go below this minimum requirement.
Aside from the minimum insurance, here are some more examples of auto insurance coverage terms and their definitions:
- Collision Damage insurance – This will pay for the cost of damage to your vehicle if a collision happens during an accident
- Comprehensive Insurance – This will pay for the cost of damage to your vehicle due to theft, fire, inclement weather, and other situations not covered by Collision damage insurance.
- Uninsured / Underinsured Motorist Property Damage or Bodily Injury – This will pay for the cost of injuries to you, your members of the household or your passengers caused by an accident where the party at fault is an uninsured or underinsured motorist . Or, for the cost of damages to your property, your vehicle.
- Rental Car Reimbursement – As the name implies, the auto insurance company will pay for the cost of renting a car while your vehicle is unavailable
- Custom Parts Equipment – Covers for the cost of damages to additional vehicle parts or equipment that does not come with the car company’s usual installed parts or equipment.
These are just some types of auto insurance coverage terms that are optional. You may want to check your auto insurance policy to see if you have these coverage assess whether you need them or need to lower the coverage on these depending on your situation.
PIP Insurance – Free Online Auto Insurance Quotes
Reader’s Question:
Do I need PIP insurance? If I get into an accident, will my auto insurance company pay all of my medical bills? I’d like to compare free online auto insurance quotes, their discounts and packages. How do I find companies that do this? I really hope you can help me because I’m new at this whole thing.
Kara
Wilmington, DE
That’s a common misconception. All auto insurance coverages have limits, so If I were you, Kara, I wouldn’t count on it to save me from financial responsibility completely. I think you are concerned about the possible medical expenses you might incur in an accident. To have that covered, you must have PIP or Personal Injury Protection. While it won’t pay everything, having this type of coverage would cut the costs of doctor’s fees and hospitalization for you. Personal Injury Protection will shoulder what insurers call “reasonable and necessary medical expenses,” the amount of which your auto insurance company will determine. So, if the medical procedure performed for you is not needed by their definition and standards, or if the specialist you’ve chosen charges really high rates, they won’t cover the cost completely or at all.
In Delaware, the minimum requirement according to state regulations is $15,000 for PIP. This will also, by the way, cover your passengers. If you want to be extra careful, you can also purchase Uninsured/Underinsured Motorist Bodily Injury, which is useful if the other party doesn’t have proper auto insurance. You would be surprised how many drivers out there don’t follow state requirements when it comes to auto insurance. Since I think you want to be prepared for such circumstances, you might consider this when you ask for free online auto insurance quotes.
Cheap Texas Auto Insurance
Texas auto insurance is a state need for all vehicle owners in Texas. There is certain minimum coverage available in Texas auto insurance and you can choose optional additional coverage to suit your needs like loss of income, medical expenses, etc. All additional coverage is then available to every accident irrespective of whose fault caused accident.
What decides insurance rates?
Texas auto insurance rates are not same all over the state. Your insurance premiums depend on your age, your area of residence, your driving record, for what purpose you drive your vehicle (commercial or personal), etc. All drivers across the state decide overall premium rates for your auto insurance.
You can lower rates for your Texas auto insurance by maintaining a good driving record. Texas laws have three different categories of drivers like preferred, standard, and nonstandard. Your previous and present driving standards, number of accidents, etc. decide your category. You receive further discounts in your insurance rates by mentioning your affiliation groups like AAA, etc. Certain agents offer higher premiums as they offer insurance for high-risk drivers. Avoid such agents to gain through lower premiums.
Finding suitable auto insurance
Internet is the best source to locate suitable Texas auto insurance. There are many companies selling insurance quotes with relevant questionnaire and policy choices on internet. You can study across different quotes, rates, available coverage, liabilities, etc. and then make your final decision. Additionally, you can consult car dealers, financial planners, and other insurance professionals to arrive at right decision. You can get such insurance through different national providers or local agents.
Coverage available
Texas auto insurance offers certain minimum coverage like liability insurance. This covers your liability for damages to property or other bodily injuries due to accident. It is $20,000 for bodily injury for each person, $40,000 for injuries in accident and $15,000 for damage to property. You can easily refer to this as 20/40/15. You can take additional coverage like collision, comprehensive coverage, etc. These save you of various additional financial expenses in the event of any accident.
Texas auto insurance rates depend on joint efforts of all drivers to drive safely. Follow traffic rules to reduce accidents and lower resultant auto insurance rates. Since it is not justified for you to pay for somebody s rash driving, Texas lawmakers are trying to arrive at individual policy rates for the benefit of all.
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