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.
Saturday, August 11, 2007
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)
