Term assurance in its simplest form is one of the basic types of life assurance; whilst there are a lot of different variations to this type of policy they all have similarities.
They pay out a sum of money when the event covered occurs. This may be death, or diagnosis of a terminal or critical illness. It only pays out if the event happens within a stated period of time known as the term.
There are various forms as stated above, the first being a level term assurance policy. This type of policy has the sum assured amount constant throughout. You can usually take this cover out for a minimum of 1 year with a maximum age of 85. No surrender value is payable on these policies and once the sum assured and term have been selected they can not usually be altered.
The premiums can be guaranteed to remain the same throughout the policy term or they can be reviewable and could go up with the insurance provider’s mortality experience.
This type of life insurance is cheap and easy to understand.
Terminal Illness cover is normally provided as a benefit with these policies. This is where there is a high probability that an illness confirmed by a doctor will cause death within 12 months. If this benefit is included in the policy then the insurance provider will pay out the sum assured early to enable the person covered by the policy to start to put their affairs in order.
This benefit under current legislation and Inland Revenue regulations is paid tax free.
Decreasing term assurance is a popular way to cover an outstanding mortgage debt. The sum assured decreases each year by a stated amount, so at the end of the term the amount of cover will be nil.
The reduction can be either a fixed or variable amount but although the cover reduces the premiums normally remain the same. Because the insurance providers risk decreases each year this is normally one of the cheapest forms of life cover.
It is normally used to cover a mortgage on a repayment basis and the cover goes down together with the amount owed to the mortgage lender. However if the amount of decrease chosen at the outset of the policy decreases faster than the capital owed on the loan then if a claim is made there may be a shortfall.
Decreasing term assurance can also be of value in Inheritance Tax planning the term for these policies is usually 7 years and the sum assured covers the amount of Inheritance Tax that would be payable on a lifetime gift. This may mean the gift can be made without possible reduction as a result of this tax becoming payable.
These policies are called Inter Vivos Term Assurance Policies
Term assurance policies can also increase, this increase is usually linked to the retail price index or a fixed percentage each year. The premium normally goes up each time the sum assured is increased.
If the life insurance policy is being used to protect dependants then this ensures that the benefits keep pace with inflation.
If in doubt as to which policy you need, seek independent advice.
Wednesday, October 17, 2007
AUTOMOBILE INSURANCE
nsurance is a step that a person takes to avoid any kind of financial problems in coming future. Insurance can be of varied types, and Automobile Insurance is one of them. People can go in for the same with the help of many banks and financial institutions all around the country.
People while buying a vehicle should get the Automobile Insurance done, as you never know what can happen to your car in near future. Before getting the Automobile insured one should do a proper study about the bank he is going to take the help of. One should browse around and try to find out the best Insurance rates, quotes and prices.
Automobile Insurance can help you protect the investment in your new or old vehicle. One should browse around for quality Insurance as it is the foundation of good financial plan. In brief this tpye of Insurance can help you in several ways, i.e. it can cover the losses due to accident, pays the medical expenses and protects you from lawsuits.
There are many online sites where one can log on to get best as well as cheap Insurance quotes. Buying Automobile Insurance can protect the consumer from Comprehensive coverage and Collision coverage. This also enables him to have Personal Injury protection and pay the Medical bills.
People while buying a vehicle should get the Automobile Insurance done, as you never know what can happen to your car in near future. Before getting the Automobile insured one should do a proper study about the bank he is going to take the help of. One should browse around and try to find out the best Insurance rates, quotes and prices.
Automobile Insurance can help you protect the investment in your new or old vehicle. One should browse around for quality Insurance as it is the foundation of good financial plan. In brief this tpye of Insurance can help you in several ways, i.e. it can cover the losses due to accident, pays the medical expenses and protects you from lawsuits.
There are many online sites where one can log on to get best as well as cheap Insurance quotes. Buying Automobile Insurance can protect the consumer from Comprehensive coverage and Collision coverage. This also enables him to have Personal Injury protection and pay the Medical bills.
Auto Insurance For Any Vehicle Owner
If you are unlucky enough to have an accident in the UK, you will need to know some of the basics ins-and-outs of how to make a claim on your UK car insurance.
Most insurance companies will allow consumers seeking to insure their classic car the opportunity to drive their vehicle around 5000 miles a year.
It is usually compulsory to purchase car insurance before taking a vehicle on the road.
This policy goes above and beyond the typical coverage available to car owners, covering more than just the minimum liability.
Personal injury protection is mandatory in all no-fault states and uninsured motorist coverage.
Again, if you are carrying the same coverage’s as listed above, 4 of the 6 people would be covered by your state minimum policy because everybody was under the $20,000 per person limit, but you maxed out your per accident bodily injury at $40,000, so you would need to take care of $20,000 of bodily injury on your own
California state car insurance minimums are $15,000 for the death/injury of one person in an accident and $30,000 for the death/injury of all the people involved in an accident plus an additional $5,000 of insurance to compensate for property damage.
Did you know that in order to drive legally in most states, drivers are required to purchase a minimum of liability insurance, including property damage and bodily injury? Car insurance is required in all states, to one extent or another, but drivers are still free to choose to what extent they cover their personal property and health.
A simple Internet search will lead you in the right direction if you’re looking for companies that will give you online car insurance quotes.
Buying car insurance online saves time and money—you just fill in your details, get a quote, do a comparison between quotes from different providers, choose the most beneficial one, fill the application, save it, pay the premium and in some states even print out the insurance card yourself.
If you are a first time buyer, or you have a limited budget for your car, you should carefully investigate the different insurance policies available, as some might suit you better financially.
In the past many uninsured drivers have slipped under the radar for car insurance in Los Angeles by carrying fraudulent proof of insurance statements.
One of the simplest ways to realizing affordable car insurance is by paying a higher deductible.
Did you know that your good driving record could actually help you get a low cost car insurance? Cheap car insurance is offered by companies to drivers who have a squeaky clean record and have never made a claim in all their years of driving.
Young people who want to renew their car insurance policy might have to pay more if they have been recently involved in any accident or a serious traffic violation like drunk driving.
Most insurance companies will allow consumers seeking to insure their classic car the opportunity to drive their vehicle around 5000 miles a year.
It is usually compulsory to purchase car insurance before taking a vehicle on the road.
This policy goes above and beyond the typical coverage available to car owners, covering more than just the minimum liability.
Personal injury protection is mandatory in all no-fault states and uninsured motorist coverage.
Again, if you are carrying the same coverage’s as listed above, 4 of the 6 people would be covered by your state minimum policy because everybody was under the $20,000 per person limit, but you maxed out your per accident bodily injury at $40,000, so you would need to take care of $20,000 of bodily injury on your own
California state car insurance minimums are $15,000 for the death/injury of one person in an accident and $30,000 for the death/injury of all the people involved in an accident plus an additional $5,000 of insurance to compensate for property damage.
Did you know that in order to drive legally in most states, drivers are required to purchase a minimum of liability insurance, including property damage and bodily injury? Car insurance is required in all states, to one extent or another, but drivers are still free to choose to what extent they cover their personal property and health.
A simple Internet search will lead you in the right direction if you’re looking for companies that will give you online car insurance quotes.
Buying car insurance online saves time and money—you just fill in your details, get a quote, do a comparison between quotes from different providers, choose the most beneficial one, fill the application, save it, pay the premium and in some states even print out the insurance card yourself.
If you are a first time buyer, or you have a limited budget for your car, you should carefully investigate the different insurance policies available, as some might suit you better financially.
In the past many uninsured drivers have slipped under the radar for car insurance in Los Angeles by carrying fraudulent proof of insurance statements.
One of the simplest ways to realizing affordable car insurance is by paying a higher deductible.
Did you know that your good driving record could actually help you get a low cost car insurance? Cheap car insurance is offered by companies to drivers who have a squeaky clean record and have never made a claim in all their years of driving.
Young people who want to renew their car insurance policy might have to pay more if they have been recently involved in any accident or a serious traffic violation like drunk driving.
The Luxury of Limo Services
Treat yourself with the utmost relaxation you need as you traverse your destination leading to the most important occasion or event of your lifetime by availing to the best limo services in town.
Sit back and unwind as people in the streets turn their heads to your direction. Be proud as they try to gaze at the back of your window and led them wondering who the VIP is sitting in the backseat of that elegant stretch limo. Whether you are taking your girlfriend to a date or dinner, or treating your group of friends to a nightclub anywhere in New York, there are a number of best NYC limo services options, leading you to the most memorable experience of a journey, letting you enjoy the course of a night out.
A limousine, known for its unusual length, has become the luxury cars of choice for different events. It’s a vehicle most commonly driven by chauffeurs. A limousine ride has already bridged its gap from being exclusive to the wealthy to ordinary persons alike, through the establishment of limo services.
Limousine services provide its clients a transportation service that defines luxury, style, and safety, embodying features of prompt, courteous service, lavish limo features, and reliable transportation. Limousines’ extra features include the following: air-conditioning and climate control systems, entertainment equipment (video, computer and stereo systems), tinted windows and plush leather upholstery.
There are a wide variety of limousines which are available for rent: Luxury sedans, which is also called Lincoln Town Cars, Van Limousine such as Excalibur, Bentley, Jaguar, Rolls Royce, Phantom and Escalad Cadillac limousines. Limousines can accommodate six persons stretch limo), eight persons (super stretch limo) or up to ten persons (super double stretch limo).
Limo services provide transportation to a variety of industries: business meetings, executive transportations, airport car service, weddings, proms, anniversaries, concerts, bachelor/bachelorette parties, birthdays, graduations, athletic events, golf outings, business meetings, dinners, sport events, tours and other professional and friendly events alike.
With stretch limo rentals availability, it has fulfilled the brides and grooms’ dream of an unforgettable wedding, to make them feel like Kings and Queens for their most special day. And that of a young girl’s taking the step to womanhood, as she really aspires to make over her supposed bland birthday party to an impressive debut celebration.
Limousine chauffeurs have to embody good customer service. They must know the city very well to assure that the clients will arrive at their destination quickly. He must know the fastest, safest routes to avoid problem areas, accidents and traffic situations. At its very best, chauffeurs must be multilingual, to cater to the variety of customers.
Limo services must also be assured of proper insurances that will cover its clients from damages and injuries just in case if an accident happens.
A limo service however has to be worthy of its price by adhering to a number of factors. First, it must practice strict punctuality so that the client would not miss the event such as an important corporate meeting. Second, it must also submit to its promise, like the promise of an arrival of a latest model of limo.
Sit back and unwind as people in the streets turn their heads to your direction. Be proud as they try to gaze at the back of your window and led them wondering who the VIP is sitting in the backseat of that elegant stretch limo. Whether you are taking your girlfriend to a date or dinner, or treating your group of friends to a nightclub anywhere in New York, there are a number of best NYC limo services options, leading you to the most memorable experience of a journey, letting you enjoy the course of a night out.
A limousine, known for its unusual length, has become the luxury cars of choice for different events. It’s a vehicle most commonly driven by chauffeurs. A limousine ride has already bridged its gap from being exclusive to the wealthy to ordinary persons alike, through the establishment of limo services.
Limousine services provide its clients a transportation service that defines luxury, style, and safety, embodying features of prompt, courteous service, lavish limo features, and reliable transportation. Limousines’ extra features include the following: air-conditioning and climate control systems, entertainment equipment (video, computer and stereo systems), tinted windows and plush leather upholstery.
There are a wide variety of limousines which are available for rent: Luxury sedans, which is also called Lincoln Town Cars, Van Limousine such as Excalibur, Bentley, Jaguar, Rolls Royce, Phantom and Escalad Cadillac limousines. Limousines can accommodate six persons stretch limo), eight persons (super stretch limo) or up to ten persons (super double stretch limo).
Limo services provide transportation to a variety of industries: business meetings, executive transportations, airport car service, weddings, proms, anniversaries, concerts, bachelor/bachelorette parties, birthdays, graduations, athletic events, golf outings, business meetings, dinners, sport events, tours and other professional and friendly events alike.
With stretch limo rentals availability, it has fulfilled the brides and grooms’ dream of an unforgettable wedding, to make them feel like Kings and Queens for their most special day. And that of a young girl’s taking the step to womanhood, as she really aspires to make over her supposed bland birthday party to an impressive debut celebration.
Limousine chauffeurs have to embody good customer service. They must know the city very well to assure that the clients will arrive at their destination quickly. He must know the fastest, safest routes to avoid problem areas, accidents and traffic situations. At its very best, chauffeurs must be multilingual, to cater to the variety of customers.
Limo services must also be assured of proper insurances that will cover its clients from damages and injuries just in case if an accident happens.
A limo service however has to be worthy of its price by adhering to a number of factors. First, it must practice strict punctuality so that the client would not miss the event such as an important corporate meeting. Second, it must also submit to its promise, like the promise of an arrival of a latest model of limo.
Car insurance – Hybrid cars
Part 2 : Continued from part one; “car insurance – Hybrid cars”
In the first part of this article we examined the hybrid car, looking at what the system is composed of, the way the separate components work and how it achieves its excellent fuel economy. We will now look at other ways in which the hybrid car improves its efficiency and the running costs incurred with this type of car.
One area where a noticeable difference can be made is aero-dynamics. A lot of the engines work is put into pushing the car through the air and the resistance it encounters (known as aerodynamic drag). One way this can be reduced is by reducing the frontal area of the car, the smaller this surface the less the drag effect, thus saving on fuel. In general any object that projects from the body of the car will produce some drag, you will usually find that this has been carefully thought through on hybrid cars. Some manufacturers have removed wing mirrors in favour of cameras to reduce potential drag.
Other way’s in which manufacturers seek to reduce fuel consumption are as follows: we all know that tyres encounter friction from the road surface; they are after all designed to allow the vehicle to apply its power to the road surface and hold the car steady when in certain driving conditions whilst retaining a smooth ride.
Here the hybrid car manufacturer has designed tyres that are more rigid and reinforced and inflated to a higher pressure to substantially decrease drag.
Of course one easy way to reduce fuel consumption in any car is to decrease the weight, this is done in hybrid cars by using materials such as carbon fibre and aluminium which are much lighter than traditionally used construction materials and just as strong. A lighter car expends much less energy when climbing a hill or accelerating as it has much less mass to effectively pull around.
If we take a look at the new Peugeot 308 hybrid which uses a 1.6 litre engine (a first in the hybrid market) we see that it returns an amazing 83 miles per gallon fuel in terms of combined fuel consumption. Carbon dioxide production is a tiny 90 grams per kilometre meaning that it is currently tax exempt under European guidelines as is any car which emits less than 100g/km.
The vehicle uses a 1.6 litre HDI engine which utilises a high pressure direct injection system which in practical terms means it is much more efficient than diesel engines of old. This is tuned to give an output of 110 brake horse power and the addition of the electrical motor delivers an additional 22 bhp.
The electrical motor powers the car from starting and continues to solely power the vehicle at low speeds. For motorway and non urban driving the diesel engine system is started and becomes the sole propulsion system. If extra acceleration is required both units operate at once providing maximum power when it is most needed.
As with most parallel hybrid systems the battery is recharched by utilising the kinectic energy normally wasted in braking. When light braking is required the battery is charged if more definitive braking is required the vehicles hydraulic system is used to give maximum braking efficiency.
As you can imagine, car insurance for this vehicle will probably be very reasonable as it not only has very low emissions but is fitted with a host of safety features that the majority of modern cars benefit from.
As you can imagine the hybrid car returns double the fuel efficiency in most cases of a standard petrol engine meaning your fuel costs are halved. You can expect to pay little or no tax depending on emissions; your motor insurance will undoubtedly be much cheaper and you will save a huge amount of money on general running costs. On average the hybrid car will be more expensive to buy but you will quickly regain this initial extra outlay in the amount you save running it. Who can say that doing your bit for the environment doesn’t make you smile?
In the first part of this article we examined the hybrid car, looking at what the system is composed of, the way the separate components work and how it achieves its excellent fuel economy. We will now look at other ways in which the hybrid car improves its efficiency and the running costs incurred with this type of car.
One area where a noticeable difference can be made is aero-dynamics. A lot of the engines work is put into pushing the car through the air and the resistance it encounters (known as aerodynamic drag). One way this can be reduced is by reducing the frontal area of the car, the smaller this surface the less the drag effect, thus saving on fuel. In general any object that projects from the body of the car will produce some drag, you will usually find that this has been carefully thought through on hybrid cars. Some manufacturers have removed wing mirrors in favour of cameras to reduce potential drag.
Other way’s in which manufacturers seek to reduce fuel consumption are as follows: we all know that tyres encounter friction from the road surface; they are after all designed to allow the vehicle to apply its power to the road surface and hold the car steady when in certain driving conditions whilst retaining a smooth ride.
Here the hybrid car manufacturer has designed tyres that are more rigid and reinforced and inflated to a higher pressure to substantially decrease drag.
Of course one easy way to reduce fuel consumption in any car is to decrease the weight, this is done in hybrid cars by using materials such as carbon fibre and aluminium which are much lighter than traditionally used construction materials and just as strong. A lighter car expends much less energy when climbing a hill or accelerating as it has much less mass to effectively pull around.
If we take a look at the new Peugeot 308 hybrid which uses a 1.6 litre engine (a first in the hybrid market) we see that it returns an amazing 83 miles per gallon fuel in terms of combined fuel consumption. Carbon dioxide production is a tiny 90 grams per kilometre meaning that it is currently tax exempt under European guidelines as is any car which emits less than 100g/km.
The vehicle uses a 1.6 litre HDI engine which utilises a high pressure direct injection system which in practical terms means it is much more efficient than diesel engines of old. This is tuned to give an output of 110 brake horse power and the addition of the electrical motor delivers an additional 22 bhp.
The electrical motor powers the car from starting and continues to solely power the vehicle at low speeds. For motorway and non urban driving the diesel engine system is started and becomes the sole propulsion system. If extra acceleration is required both units operate at once providing maximum power when it is most needed.
As with most parallel hybrid systems the battery is recharched by utilising the kinectic energy normally wasted in braking. When light braking is required the battery is charged if more definitive braking is required the vehicles hydraulic system is used to give maximum braking efficiency.
As you can imagine, car insurance for this vehicle will probably be very reasonable as it not only has very low emissions but is fitted with a host of safety features that the majority of modern cars benefit from.
As you can imagine the hybrid car returns double the fuel efficiency in most cases of a standard petrol engine meaning your fuel costs are halved. You can expect to pay little or no tax depending on emissions; your motor insurance will undoubtedly be much cheaper and you will save a huge amount of money on general running costs. On average the hybrid car will be more expensive to buy but you will quickly regain this initial extra outlay in the amount you save running it. Who can say that doing your bit for the environment doesn’t make you smile?
Car insurance – Hybrid cars
Part 1
The Hybrid car was for a long time seen as belonging to the science fiction genre.
These days it is in actual fact a reality with many manufacturers releasing their own version of this environmentally friendly car.
The hybrid car has now largely overtaken the electrical car due to the shortcomings of the latter. The solely electric car tends to be sluggish and suffer from a lack of range between charges which can themselves be extremely slow. Obviously the electrical car is much better for the environment as it has no emissions whatsoever. Of course by charging from your mains supply you are increasing your carbon footprint but charging by solar energy will negate this issue, although unfortunately this is again a very slow method of charging.
The question is; how much more economical and emission friendly are hybrid cars, how is this achieved and how does this impact on your running costs such as car insurance?
Before we can look into this we need to understand how the hybrid car works.
Power is, in most cases provided by a standard petrol engine (which drives the front wheels) combined with one or two electric motors (which power the rear wheels). This is known as a parallel hybrid system and is the most commonly used system and the one that we will focus on for the purpose of this article. The less common hybrid is called the series system and in this case the petrol motor powers a generator which can either charge the batteries or directly power the electrical propulsion system. In this example the petrol motor never directly powers the vehicle.
Getting back to the parallel system, selection of propulsion type depends on the speed you are driving, for example; Many hybrid cars will use the electric motors for city and urban driving and at higher speeds utilise the traditional petrol engine. In some vehicles the system will automatically shut of the petrol engine when waiting at a red light or in a traffic queue. In general if a short burst of rapid acceleration is required the propulsion systems will act in synergy giving maximum power.
Usually the Power supply for the electric motors is charged directly from deceleration or braking of the car, meaning you should have a pretty constant supply of electrical energy for most journeys. This is done by capturing the kinetic energy that is normally released by the brake pads in the form of heat. The battery is charged by harnessing regenerative braking, whereby the electric motor is engaged to slow the wheels of the car down, forcing the wheels to effectively drive the motor and create energy much in the same way as a dynamo on a pedal bike draws its power to light the lamps.
In the majority of parallel hybrid systems the petrol engine is a smaller and lighter than standard version built to return higher efficiency and performance.
If you imagine 2 identical cars, one with a 1 litre engine and one with a 2 litre engine the reason the smaller engine uses less fuel when driven at the same speed as the larger engine is actually quite simple. Both cars have to output the same amount of power to drive the car at that speed, but the smaller engine uses less power to drive itself meaning that in total it uses less power and returns a higher fuel economy. This usually impacts on your motor insurance policy as a car with a much bigger engine will usually be much more expensive to ensure.
Continued in part 2; the other way’s in which a hybrid car improves its fuel efficiency, an example of a hybrid car and running costs.
The Hybrid car was for a long time seen as belonging to the science fiction genre.
These days it is in actual fact a reality with many manufacturers releasing their own version of this environmentally friendly car.
The hybrid car has now largely overtaken the electrical car due to the shortcomings of the latter. The solely electric car tends to be sluggish and suffer from a lack of range between charges which can themselves be extremely slow. Obviously the electrical car is much better for the environment as it has no emissions whatsoever. Of course by charging from your mains supply you are increasing your carbon footprint but charging by solar energy will negate this issue, although unfortunately this is again a very slow method of charging.
The question is; how much more economical and emission friendly are hybrid cars, how is this achieved and how does this impact on your running costs such as car insurance?
Before we can look into this we need to understand how the hybrid car works.
Power is, in most cases provided by a standard petrol engine (which drives the front wheels) combined with one or two electric motors (which power the rear wheels). This is known as a parallel hybrid system and is the most commonly used system and the one that we will focus on for the purpose of this article. The less common hybrid is called the series system and in this case the petrol motor powers a generator which can either charge the batteries or directly power the electrical propulsion system. In this example the petrol motor never directly powers the vehicle.
Getting back to the parallel system, selection of propulsion type depends on the speed you are driving, for example; Many hybrid cars will use the electric motors for city and urban driving and at higher speeds utilise the traditional petrol engine. In some vehicles the system will automatically shut of the petrol engine when waiting at a red light or in a traffic queue. In general if a short burst of rapid acceleration is required the propulsion systems will act in synergy giving maximum power.
Usually the Power supply for the electric motors is charged directly from deceleration or braking of the car, meaning you should have a pretty constant supply of electrical energy for most journeys. This is done by capturing the kinetic energy that is normally released by the brake pads in the form of heat. The battery is charged by harnessing regenerative braking, whereby the electric motor is engaged to slow the wheels of the car down, forcing the wheels to effectively drive the motor and create energy much in the same way as a dynamo on a pedal bike draws its power to light the lamps.
In the majority of parallel hybrid systems the petrol engine is a smaller and lighter than standard version built to return higher efficiency and performance.
If you imagine 2 identical cars, one with a 1 litre engine and one with a 2 litre engine the reason the smaller engine uses less fuel when driven at the same speed as the larger engine is actually quite simple. Both cars have to output the same amount of power to drive the car at that speed, but the smaller engine uses less power to drive itself meaning that in total it uses less power and returns a higher fuel economy. This usually impacts on your motor insurance policy as a car with a much bigger engine will usually be much more expensive to ensure.
Continued in part 2; the other way’s in which a hybrid car improves its fuel efficiency, an example of a hybrid car and running costs.
Saturday, August 11, 2007
Why You Need Uninsured/Underinsured Motorist Coverage
Hope you`re covered if you get into a fender-bender and discover that the at-fault driver is uninsured. In that unpleasant situation, your auto insurance will kick into gear if you have uninsured/underinsured motorist protection, and among those who would steer you in the direction of those sentiments are auto insurance industry representatives such as Nicole Mahrt, Dave Snyder, Dan Kummer and Sharon Cooper.
Think of uninsured/underinsured motorist coverage as an important self-help tool that generally is pretty affordable. It`s important for people to protect themselves in case they get into an accident with someone who either has no auto insurance or doesn`t have enough coverage, says Mahrt, western regional public affairs director for the American Insurance Association. "You probably can`t afford to drive without it."
"Everyone does need it if you live in a state that mandates that coverage, and about a dozen states do," says Mahrt`s colleague, Dave Snyder, vice president and assistant general counsel for the American Insurance Association in Washington, D.C. "Your auto insurance provider should be able to tell you whether that coverage is mandated or is optional. Beyond that, if you buy it, you need to determine how much coverage you need. How much you need depends on whether you have health insurance and whether you want to be compensated for ‘pain and suffering,` which you get with UM/UIM."
"You can protect yourself from being hurt financially by buying uninsured/underinsured motorist protection," points out Kummer, director of auto insurance for the Property Casualty Insurers Association of America in Des Plaines, Ill. "Without uninsured/underinsured motorist coverage, you have little likelihood of gaining payment for damages you or your vehicle sustain if you`re involved in an accident with a driver who is either underinsured or driving without any coverage," says Kummer.
Selective Insurance Senior Vice President Sharon Cooper characterizes uninsured/underinsured motorist protection as "an important coverage for consumers because it protects them in situations they can`t plan for. Without the coverage, their only recourse may be to sue an individual to cover their losses if (that other driver) doesn`t have insurance or enough insurance."
Uninsured coverage also covers you if a hit-and-run motorist hits your vehicle. "With this coverage," Kummer continues, "you and your passengers receive compensation for medical expenses, lost wages and other injury-related losses. You can sue that person, but if that driver has nothing, you`ll get nothing even with a favorable judgment."
Underinsured motorist protection pays you for damages that surpass the amount of coverage carried by a driver who is underinsured. "That's valuable, because many drivers carry minimum limits, and that may be insufficient to cover your injuries and lost wages," notes Kummer.
The Insurance Information Institute's Carolyn Gorman extolled the virtues of such catastrophic coverage. "You absolutely need this coverage, because, if you get into an accident with someone who is driving without insurance or doesn`t have enough of it, you want to be made financially whole again. You have to protect yourself fiscally and physically, and uninsured/underinsured motorist protection can help you in that regard."
Uninsured motorist protection can help you in another way. "Let`s say you`re a pedestrian. If you carry this coverage and you get hit by a car while you`re trying to cross the street, the coverage could pay your medical expenses and lost wages," says Gorman, vice president for III, based in New York.
Think of uninsured/underinsured motorist coverage as an important self-help tool that generally is pretty affordable. It`s important for people to protect themselves in case they get into an accident with someone who either has no auto insurance or doesn`t have enough coverage, says Mahrt, western regional public affairs director for the American Insurance Association. "You probably can`t afford to drive without it."
"Everyone does need it if you live in a state that mandates that coverage, and about a dozen states do," says Mahrt`s colleague, Dave Snyder, vice president and assistant general counsel for the American Insurance Association in Washington, D.C. "Your auto insurance provider should be able to tell you whether that coverage is mandated or is optional. Beyond that, if you buy it, you need to determine how much coverage you need. How much you need depends on whether you have health insurance and whether you want to be compensated for ‘pain and suffering,` which you get with UM/UIM."
"You can protect yourself from being hurt financially by buying uninsured/underinsured motorist protection," points out Kummer, director of auto insurance for the Property Casualty Insurers Association of America in Des Plaines, Ill. "Without uninsured/underinsured motorist coverage, you have little likelihood of gaining payment for damages you or your vehicle sustain if you`re involved in an accident with a driver who is either underinsured or driving without any coverage," says Kummer.
Selective Insurance Senior Vice President Sharon Cooper characterizes uninsured/underinsured motorist protection as "an important coverage for consumers because it protects them in situations they can`t plan for. Without the coverage, their only recourse may be to sue an individual to cover their losses if (that other driver) doesn`t have insurance or enough insurance."
Uninsured coverage also covers you if a hit-and-run motorist hits your vehicle. "With this coverage," Kummer continues, "you and your passengers receive compensation for medical expenses, lost wages and other injury-related losses. You can sue that person, but if that driver has nothing, you`ll get nothing even with a favorable judgment."
Underinsured motorist protection pays you for damages that surpass the amount of coverage carried by a driver who is underinsured. "That's valuable, because many drivers carry minimum limits, and that may be insufficient to cover your injuries and lost wages," notes Kummer.
The Insurance Information Institute's Carolyn Gorman extolled the virtues of such catastrophic coverage. "You absolutely need this coverage, because, if you get into an accident with someone who is driving without insurance or doesn`t have enough of it, you want to be made financially whole again. You have to protect yourself fiscally and physically, and uninsured/underinsured motorist protection can help you in that regard."
Uninsured motorist protection can help you in another way. "Let`s say you`re a pedestrian. If you carry this coverage and you get hit by a car while you`re trying to cross the street, the coverage could pay your medical expenses and lost wages," says Gorman, vice president for III, based in New York.
8 Things You Should Know About Auto Insurance
Dealing with the ins and outs of auto insurance can be as tricky and confusing as trying to untie the Gordian knot. Although we can`t help you with the knotty Gordian problem, the following recommendations could help you figure out some of the more complicated points of auto insurance.
1) Determine appropriate coverage.
Help control the price you pay, just ask American Insurance Association executive Dave Snyder. For example, Snyder notes that half of your auto insurance bill covers liability and "that has to do with how you are going to use the vehicle, such as for commuting to work and your driving record. If you`ve got a clean driving record, you figure to pay less for insurance than you would if you had a speeding ticket on your record. You can control the other half of your premium which covers damage or loss to your vehicle, comprehensive and collision coverage."
2) Shop around for insurance.
"In most states," Snyder reports, "there are hundreds of insurers competing for business, so it`s possible to save hundreds of dollars by obtaining quotes from different auto insurance providers." Picking up on Snyder`s theme is his AIA colleague, Nicole Mahrt. Mahrt urges you to work with your insurance provider to get more than one quote. "It pays you to shop around, especially if you feel you`ve been paying too much."
3) Look for insurance discounts.
"Many insurers will give you a discount if you buy two or more types of insurance from them, for example auto and home insurance," confirms John Marchioni, senior vice president of Personal Lines for Selective Insurance, in Branchville, N.J. More cost-saving suggestions from Marchioni: "Ask about discounts for air bags, anti-lock brakes, daytime running lights and anti-theft devices."
4) Consider taking a higher deductible.
"You could lower your insurance bill by increasing your deductible," Mahrt says. "But just make sure you can pay the higher deductible if you file a claim."
5) Look into "stacking" coverages if you file an insurance claim.
Insurance trade group officer Daniel Kummer explains that stacking uninsured/underinsured motorist coverages means "you can collect from more than one of your auto insurance policies. Most states prohibit this practice, but there are about 19 states that either allow stacking or don't address the issue either through legislation or litigation," according to Kummer, director of personal insurance for the Property Casualty Insurers Association of America. "Be sure to check your auto insurance contract to see if it's allowed. "Be advised that you`ll likely pay a higher insurance premium if you have stacked coverage. "It could be 10% to 30% more depending on the litigious nature of the state in which you reside," says Kummer.
6) Check with your insurance provider BEFORE buying a car.
"Your premium is based in part on the car`s sticker price, the cost to repair it, its safety record and the likelihood of theft," answers Selective`s John Marchioni. Remember to avoid shopping by price alone. "You want an agent and a company that answer your questions and handle claims fairly and efficiently," emphasizes Marchioni, senior vice president of Personal Lines for Selective Insurance.
7) Notify your auto insurance company as soon as you change companies.
"Be sure to cancel your old policy," suggests PCI`s Dan Kummer. "Do it the same day, but don`t cancel your old policy until you`ve lined up a new contract. That`s important because some states like New York will fine you for the number of days you go without insurance." One last thought from Kummer on the subject: "Most auto insurers specify in your contract that you can terminate your policy any time you want by informing your company in writing about the date you wish that coverage be terminated or you can do that over the phone.
8) Pick the insurance payment option that best fits your budget.
"Generally, most companies will give you the ability to pay over time, but that comes at a price," says Kummer. "Your payment could increase a few dollars each time you pay by installment. Insurers can accept payments monthly, quarterly, or every six months, what ever is most convenient for you. Remember, though, that the more you break down your payments, the more the cost adds up."
1) Determine appropriate coverage.
Help control the price you pay, just ask American Insurance Association executive Dave Snyder. For example, Snyder notes that half of your auto insurance bill covers liability and "that has to do with how you are going to use the vehicle, such as for commuting to work and your driving record. If you`ve got a clean driving record, you figure to pay less for insurance than you would if you had a speeding ticket on your record. You can control the other half of your premium which covers damage or loss to your vehicle, comprehensive and collision coverage."
2) Shop around for insurance.
"In most states," Snyder reports, "there are hundreds of insurers competing for business, so it`s possible to save hundreds of dollars by obtaining quotes from different auto insurance providers." Picking up on Snyder`s theme is his AIA colleague, Nicole Mahrt. Mahrt urges you to work with your insurance provider to get more than one quote. "It pays you to shop around, especially if you feel you`ve been paying too much."
3) Look for insurance discounts.
"Many insurers will give you a discount if you buy two or more types of insurance from them, for example auto and home insurance," confirms John Marchioni, senior vice president of Personal Lines for Selective Insurance, in Branchville, N.J. More cost-saving suggestions from Marchioni: "Ask about discounts for air bags, anti-lock brakes, daytime running lights and anti-theft devices."
4) Consider taking a higher deductible.
"You could lower your insurance bill by increasing your deductible," Mahrt says. "But just make sure you can pay the higher deductible if you file a claim."
5) Look into "stacking" coverages if you file an insurance claim.
Insurance trade group officer Daniel Kummer explains that stacking uninsured/underinsured motorist coverages means "you can collect from more than one of your auto insurance policies. Most states prohibit this practice, but there are about 19 states that either allow stacking or don't address the issue either through legislation or litigation," according to Kummer, director of personal insurance for the Property Casualty Insurers Association of America. "Be sure to check your auto insurance contract to see if it's allowed. "Be advised that you`ll likely pay a higher insurance premium if you have stacked coverage. "It could be 10% to 30% more depending on the litigious nature of the state in which you reside," says Kummer.
6) Check with your insurance provider BEFORE buying a car.
"Your premium is based in part on the car`s sticker price, the cost to repair it, its safety record and the likelihood of theft," answers Selective`s John Marchioni. Remember to avoid shopping by price alone. "You want an agent and a company that answer your questions and handle claims fairly and efficiently," emphasizes Marchioni, senior vice president of Personal Lines for Selective Insurance.
7) Notify your auto insurance company as soon as you change companies.
"Be sure to cancel your old policy," suggests PCI`s Dan Kummer. "Do it the same day, but don`t cancel your old policy until you`ve lined up a new contract. That`s important because some states like New York will fine you for the number of days you go without insurance." One last thought from Kummer on the subject: "Most auto insurers specify in your contract that you can terminate your policy any time you want by informing your company in writing about the date you wish that coverage be terminated or you can do that over the phone.
8) Pick the insurance payment option that best fits your budget.
"Generally, most companies will give you the ability to pay over time, but that comes at a price," says Kummer. "Your payment could increase a few dollars each time you pay by installment. Insurers can accept payments monthly, quarterly, or every six months, what ever is most convenient for you. Remember, though, that the more you break down your payments, the more the cost adds up."
Subscribe to:
Posts (Atom)
