What You Should Do After A Car Accident

What You Should Do After A Car Accident

Every driver involved in a car accident is legally required to remain at the scene. He or she must also offer aid and give necessary information to others involved and to law enforcement officers. If you’re involved in a car accident:

• Use all means possible to warn oncoming traffic of the danger at the scene.
  
• Give reasonable aid to the injured. Do not move them unless it is absolutely necessary.
  
• Notify the state patrol, city police or county sheriff, and if needed, request a doctor or aid unit and ambulance.
  
• Obtain and give necessary information for the accident report, including names of witnesses and police officers.
  
• If there is any injury or death, you must notify the state patrol, city police or county sheriff. If you fail to complete a written report, when required, it may result in the suspension of your driver’s license or instruction permit.
  

It is equally important that you promptly report the incident to your car insurance company. Also, you may be subject to other reporting requirements specified in your car insurance policy. It is vital that you read your policy and know what you must do to file a claim.

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How To Reduce Your Car Insurance Rates

How To Reduce Your Car Insurance Rates

How To Reduce Your Car Insurance Rates

Shop around
Each car insurance company has unique financial goals and costs. As a result, it isn’t uncommon to find rate differences between companies for the exact same insurance coverage. The cheapest insurance may not provide you with the degree of coverage you need. It is a good idea to discuss your coverage with your agent or auto insurance company.

Select the right vehicle
The type of car you own has a direct influence on your auto insurance costs. Before you buy a vehicle, check with your agent or broker to find out how much it will cost to insure.

Select higher deductibles
The amount of the deductible you select will affect your car insurance rate. For example, you may save money by increasing your collision and comprehensive deductibles from $100 to $500. To help keep your premiums down, you may want to think about paying for smaller claims yourself and using your car insurance to only pay for larger claims.

Special discounts
Ask each agent or insurance company if they offer special discounts. They often offer discounts to young drivers who are good students or who have completed a driver’s education course. Many companies will give you a discount on your premiums if you also insure your house through the same company.

Eliminate duplication
Your insurance coverage may overlap in some areas, such as medical, collision, and uninsured motorist property damage. Ask your agent or broker to explain your coverage and advise you if you are duplicating coverage.

Buying collision / comprehensive coverage
If you don’t think you could afford to fix your vehicle yourself if it was involved in a car accident, you may want to carry collision and comprehensive coverage. These coverages protect owners of expensive and late-model cars against the cost of repairs. Though coverage may increase your rates, you may want to think about it if the difference in what you pay would exceed your ability to pay the repair bills. Your lender may require these coverages until you’ve paid off your vehicle.

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The Segments Of The Car Insurance Market You Should Know About

The Segments Of The Car Insurance Market You Should Know About

The Segments Of The Car Insurance Market You Should Know About

Standard market: This market refers to the average driver who uses family-type cars and has a reasonably good driving record.

Non-standard market: This market includes young drivers with less experience, drivers with multiple tickets or accidents, and drivers with reckless or drunk driving histories.

Preferred market: This market features the lowest premiums and it is available to low-risk drivers with exceptional driving records.

Most auto insurers offer car insurance coverage that falls into the standard or the preferred markets. A few corporations have several companies within their group and establish tiers that range from the preferred market to the non-standard market.

You should:

• Know what types and limits of car insurance coverage you need.
  
• Ensure you’re dealing with an authorized company and a licensed insurance agent or broker.
  
• Make sure you have the make, model and other details of the car you wish to insure.
  
• Answer any questions about your driving record and car accident history fully and accurately.
  
• Shop for customer service and price.

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Total Loss | Vehicle Insurance

Total Loss | Vehicle Insurance

Total Loss | Vehicle Insurance

Total loss occurs when your vehicle is not repairable, or when it costs more to repair than what it is worth.

“Actual cash value” means your cost to replace your vehicle with a like vehicle. This includes the retail price, plus all applicable taxes and fees.

“Like car” (or “like vehicle”) means a car that is the:

• same make and model;
• same or newer year;
• similar body style, options, and mileage as your vehicle; and
• in as good or better overall condition.

To achieve “likeness,” you or the company must itemize and confirm in a dollar amount any deductions or additions for options, mileage or condition. An insurer must consider information that you supply when it determines deductions or additions. However, shared information may not always produce a change in the value.

You have the right to payment of the actual cash value of your car, and to expect a prompt and fair settlement. Don’t be surprised if your “value amount” and the insurer’s “value amount” do not match. Be ready to negotiate with the insurer when this happens.

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Why are insurance premium rates for teenagers so high?

Why are insurance premium rates for teenagers so high?

Why are insurance premium rates for teenagers so high?

Immaturity and lack of driving experience are the main reasons. Compared with older drivers, teenagers as a group are more willing to take risks and less likely to use safety belts. They also are more likely than older drivers to underestimate the dangers associated with hazardous situations and less able to cope with such dangers.

Teenage drivers have very high auto insurance rates of both fatal and nonfatal crashes compared with drivers of other ages.

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Auto Insurance Terms (Glossary)

Auto Insurance Terms (Glossary)

Auto Insurance Terms (Glossary)

Agent: An insurance sales person. An independent agent does not work for any insurance company and sells the policies of more than one insurer; an exclusive agent sells the policies of only one insurance company.

Arson: The willful and malicious burning of, or attempt to burn, any structure or other property, often with criminal or fraudulent intent.

Automobile Insurance Plan: A state supervised insurance plan for people who cannot find automobile insurance (this may also be referred to as the Assigned Risk Plan). Each driver in the plan is assigned to an insurance company. The cost of this insurance is higher than in the regular market.

Automobile Physical Damage Insurance: Coverage to pay for damage to or loss or policyholder's automobile resulting from collision, fire, theft or other perils.

Binder: A temporary written or oral insurance contract which is effective until it is replaced by a regular policy.

Catastrophe: In insurance, a term applied to an incident or series of related incidents causing insured property losses totaling more than US$5 million.

Claim: A person's request for payment by an insurer for a loss covered under a policy. Your claims to your company are "first-party claim." Claims made by one person against another person's company are known as "third-party claims."

Claimant: A person who files a claim with an insurance company.

Collision Coverage: Optional insurance which pays for damage to your automobile caused by collision with another car or object, or by rolling the car over. Frequently required if you have a car loan.

Comprehensive Coverage: Optional insurance which pays for damage to your automobile caused by things other than collision or rolling the car over such as fire, theft, vandalism, flood or hail. This is frequently required if you have an car loan.

Compulsory Insurance: Any form of insurance which is required by law.

Conditions: Part of a car insurance policy which states your obligations and those of your insurance company in order for the policy to be in effect.

Coverage: The scope of protection provided under a contract of insurance; any of several risks covered by a policy.

Deductible: The amount which you agree to pay, per claim or per accident. This is subtracted from the total amount paid by your insurer. If the claim is $500 and you deductible is $100, you pay $100 and your insurance company will pay $400. The higher the deductible, the lower your premium will be for the policy.

Exclusions: Provisions that explicitly limit the coverage provided by an auto insurance policy.

Insurance: A system under which individuals, businesses and other organizations or entities, in exchange for a payment of a sum of money (a premium), are guaranteed compensation for losses resulting from certain perils under specified conditions.

Insurance Company: A company which, in exchange for a fee (known as a premium), agrees to pay all legitimate claims that may arise under your policy.

Insurance Department: Enforces rules for the insurance business in each state. Source of information about all types of insurance; also handles consumer inquiries and complaints.

Insured: Person or organization covered by an insurance policy.

Insurer: The provider of insurance, such as an insurance company or other organization.

Liability Coverage: Insurance which pays the losses of other people, which you caused unintentionally or through negligence.

Liability Limits: The largest amount of money an insurer will pay in case of a covered loss.

Loss: The basis on which an insurance claim is submitted and/or paid.

Medical Payments Coverage: A form of insurance that pays for medical and funeral expenses regardless of liability.

Negligence: Failure to exercise a generally acceptable level of care and caution.

Policy: A contract of insurance.

Policyholder: The person who buys insurance.

Policy Period: The amount of time an insurance contract (policy) lasts.

Premium: The amount you pay for auto insurance coverage.

Pro Rata Cancellation: Cancellation of the policy by the insurance company. All unearned premium is returned to the insured.

Proof of Loss: Documents that you give to the insurer to support your request for payment of losses. The company uses these documents to determine whether and how much it will pay. (Ex.: Police report and written repair estimates from automobile body shops.)

Provisions: A list of actions a policyholder must take in order to make an insurance claim. Included in provisions can be additional specifications of the insurer's responsibility to the insured.

Rate: The pricing factor upon which the insurance buyer's premium is based.

Risk: The chance of loss.

Short Rate Cancellation: Cancellation of an insurance policy by the insured. Return premium is calculated on a short rate basis, meaning the insurance company keeps a portion of the unearned premium to cover expenses.

Substandard: A greater than normal risk to an insurer.

Surcharge: An additional charge allowed when a company pays a claim on your behalf.

Underinsured Motorist Coverage: A form of insurance which provides coverage when the liability coverage of the at-fault party is inadequate to cover the amount of damages or injuries.

Underwriting: The process of selecting risks for insurance and determining in what amounts and in what terms the insurance company will accept the risk.

Uninsured Motorist Coverage: A form of insurance which covers the policyholder and family members if injured by a motorist who carries no liability insurance, assuming the other driver is at fault, or if injured by a hit and run motorist.

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Optional Auto Insurance Coverage in Delaware

Optional Auto Insurance Coverage in Delaware

Optional Auto Insurance Coverage in Delaware

These types of car insurance coverage are not required by law in Delaware. However, if you take out an auto loan, your bank or lender will likely require collision and comprehensive coverage.

Collision coverage: pays for physical damage to your car as the result of your vehicle colliding with an object, such as a tree or another car. This coverage is based on the value of your car and can be costly.

Important information about collision coverage: Car insurance policies only require the company to cover your financial losses, not to replace your vehicle. In the case of an accident involving an older car, the cost of repairing it can quickly exceed the value of the car and your insurance carrier will pay you what the car was worth rather than fix it. In severe cases, the value of the car may be less than premiums paid for the coverage. Therefore, if your vehicle is worth less than $2,000, there is little reason for you to purchase collision coverage, because you are likely to pay more money in premiums than you would ever receive as a result of your claim. This coverage may not pay the full replacement cost of the vehicle or may not satisfy the balance of your auto loan.

Comprehensive coverage: pays for damage to your car from almost all other causes besides an accident, including fire, severe weather, vandalism, flood and theft. Comprehensive coverage also will cover broken glass, such as windshield damage.

Uninsured motorist coverage: pays if you incur losses from a driver who does not have auto insurance or a hit-and-run driver. This coverage, when in effect, takes the place of the insurance that the other driver should have had but did not. The coverage comes at an automatic $250 deductible for property damage, regardless of the deductible you may have on your other coverage.

Uninsured motorist coverage: will have policy limits. It does not protect the other driver. Your auto insurance company may sue the other driver for any money the company pays to you because of the other driver’s negligence. You must have made a police report about the accident in order to make a claim under an uninsured motorist policy.

Under-insured motorist coverage: protects you if you are involved in an accident that is not your fault and the other driver does not have enough insurance to cover your loss. This coverage does not pay for damage to your vehicle.

Towing and labor coverage: pays the cost of towing your car to the repair shop subject to the limit of your policy. Premiums for this coverage are very inexpensive. However, if you are a member of an auto club, you probably already have this service.

Rental reimbursement coverage: usually pays the cost to rent a car after an accident, subject to the policy's terms. The premium will vary from insurer to insurer.

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Car Insurance FAQ: State of West Virginia