Car Insurance FAQ: State of West Virginia

Car Insurance FAQ: State of West Virginia

My vehicle is several years old and has been paid off. Is physical damage coverage still useful?

The answer depends on whether or not you could afford to repair or replace your vehicle if it was damaged in an accident that you caused. It may be helpful to check your vehicle’s value by referring to used car listings in the newspaper or on the Internet for vehicles similar to yours and compare this value with your annual collision coverage cost.

What is the difference between a nonrenewal and a cancellation?

Insurance policies are issued for a specific term or period of time. Companies will usually issue either a six or twelve month policy. Nonrenewal occurs when an insurer terminates you insurance coverage at the end of the policy’s term. Cancellation occurs when an insurer terminates your coverage before the policy’s term ends.

Can my car insurance company cancel my policy or late payment?

Yes, your company may cancel you for nonpayment of a premium, even if the payment is just one day late. Some insurers have guidelines for late payment and may reinstate you when the payment has been made. The best practice is to pay your premiums before the due date to avoid being cancelled.

Will I receive a notice after my policy has been cancelled or nonrenewed?

No. Insurance companies are not required to send an additional notice after your coverage has expired. The company is only required to send a notice prior to taking this action.

What happens if there is a lapse in my coverage? Will I have to pay a penalty?

State law requires that West Virginia vehicle owners purchase the minimum coverage for liability and uninsured motorist protection. The West Virginia Department of Motor Vehicles conducts a random sample of registered vehicles to ensure that vehicle owners have purchased the minimum required auto insurance coverage. If the Department of Motor Vehicles cannot verify coverage, it will suspend your license and vehicle license plate.

What should I do after an accident or when I have to file a claim?

• Dial 911. Give the operator detailed information about the incident, including if you or others involved need medical assistance.
  
• Remove your vehicle from the roadway, if possible.
  
• Take notes. Write down the location and time of the accident/incident and any other details (summary of what happened). Exchange insurance information with others involved in accident. Write down the make, model and license plate number of the other vehicles involved. If possible, take pictures or draw a diagram of the scene.
  
• Talk to witnesses. Obtain names, addresses and phone numbers of those who witnessed the incident.
  
• Cooperate with the police. Provide all information that is requested of you. Be sure to write down your incident or accident number and the officer’s name and badge number.
  
• Contact your insurance company or agent as soon as possible. Ask your company what documents are needed to support your claim. Provide all information that is needed. Keep records of all paperwork related to your claim (copy of accident report, notes from accident scene, expenses, etc…).
  

What if my insurance company determines that my car is a “total loss”?

Insurance companies will determine that your car is totaled if the cost of the damage approaches or exceeds the car’s worth. Companies will determine your vehicle’s average retail value before the accident occurred. The company must use an official used car guide approved by the West Virginia Insurance Commission to determine this.

Ask your insurance company how it arrived at its decision, and ask for a written copy of the valuation. Make sure that the company has all the necessary information. Review your vehicle’s maintenance records and look for any upgrades or new items. For example, had new tires recently been purchased? Had you recently installed a new CD player and stereo? It also will help if you can show the insurance company that your vehicles had been well maintained and serviced throughout your years of ownership. Many policies provide you the option of hiring an independent appraiser to evaluate you loss and then, along with the insurance company’s adjuster, select a person to referee the dispute. Independent appraisers are listed in the Yellow Pages. Because you must pay the independent appraiser’s fee and share the cost of the referee, this option can be costly.

Can my company repair my vehicles with used parts?

In most instances, the answer is “yes”. Your company can have your vehicle repaired, with parts of like kind and quality, which includes used parts.

Do I have the right to choose whether or not my vehicle is a total loss?

The auto insurance company determines whether or not your vehicle is a total loss in accordance with West Virginia Division of Motor Vehicles guidelines.

Do I have to use a specific repair shop?

No. West Virginia law prohibits an insurance company from requiring that a certain shop be used or from recommending a particular shop without notifying the policyholder that their vehicle may be repaired by the auto shop of their choice. Your insurance company only will pay the amount of damage it already has determined for your vehicle, which is based on estimated parts and labor expenses.

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Tips to Help Consumers Lower their Car Insurance Premiums

Tips to Help Consumers Lower their Car Insurance Premiums

Tips to Help Consumers Lower their Car Insurance Premiums

Consider safety devices if you're buying or leasing a new car. For example, getting a automobile with anti‐lock brakes, side air bags, automatic seat belts and daytime running lights can help you save on car insurance premiums.

Install anti‐theft devices on your car, such as an alarm system or global positioning system so that your car can be located if stolen. Notify your auto insurance provider if you have these devices or have recently installed them.

Maintain a good driving record, as the number of accidents, DWI/DUI citations, claims and tickets directly affect your auto insurance premiums.

Call your insurance provider and ask about eligible discounts such as a multi‐car discount, good grades (for students under 25 years of age) and mature driver (for consumers between 50 and 65 years of age) among others.

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What Affects Auto Insurance Rates?

What Affects Auto Insurance Rates?

What Affects Auto Insurance Rates?
by Jon Arnold

There are several factors that can affect the rate you receive from an online auto insurance quote. Among these factors are:

• Your age
  

• Male or female?
  

• Your car's make and model
  

• Where you live
  

• The frequency with which you drive
  

• Tickets for moving violations
  

• Accidents
  

All of these factors will have an impact on the price you are charged by the insurance companies. One thing that can offset the age factor is if you have been on your parent's insurance policy and have had no accidents or tickets. This can show an established pattern of good driving and may allow you to have a better rate on your insurance as long as you do not receive any tickets or are not involved in an accident. Being a safe driver does have its rewards.

Also for drivers still in school, many auto insurance companies are offering additional discounts, sometimes up to 10-15% if you maintain a 3.0 grade point average while you are in school. The insurance company may not offer it, but you may find it is available if you ask.

One of the ways of decreasing your premium is by increasing the deductible. This means more money out of your pocket in the event of a claim but it can save money at the time you need it.

A good insurance agent can explain all the charges that are required and the ones that are optional. An online auto insurance quote can give you an idea of what your insurance is going to cost. Although the company that you go to purchase your insurance from sets their own rates according to the claims it has had to pay, this is just one more reason to shop around when you are trying to decide which company from which to purchase your insurance.

The following is an example of the coverage that you can purchase. These are the deductibles and coverage that you should check with each and every insurance company from which you request a quote. If you do not ask about exactly the same deductibles and coverage you may not be getting a quote for the same type of insurance so you will not know if one is cheaper than the other or not.

• Liability coverage: bodily and property damages are covered.
  

• Personal injury protection: covers medical treatment, rehab, lost wages from your job, funeral expenses, legal fees and court costs
  

• Medical: also pays for treatment or funeral expenses if the accident is auto related.
  

• Collision: pays for damage to the car which is covered under the policy in the event of collisions with vehicles, objects, or a rolled vehicle.
  

• Comprehensive: pays for damage or loss of an auto not covered under the above, such as flood, wind, hail, striking an animal, vandals, auto theft, or fire.
  

• Uninsured Motorist: pays for coverage if you are in an accident and it is caused by the other driver who does not have insurance.

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Guide: How Does Car Insurance Work?

Guide: How Does Car Insurance Work?
by Colin Cherry

Car insurance is designed to protect the insured person against losses. Unlike other insurance, it is also intended to protect other people against losses arising from an car accident that was the fault of the insured person.

An car insurance policy is made up of coverages that are mandatory for everyone and coverages that are optional at the discretion of the insured person.

Each state stipulates what the minimum mandatory coverages are. They are included in the auto insurance policy in order to make sure that all people injured in an car accident (drivers, passengers and pedestrians) are covered for such things as bodily injury and property damage due to an accident caused by the insured person.

Taking Delaware as an example, the minimum coverage required is $30,000 for all people injured in an car accident up to a maximum of $15,000 for each individual and $10,000 for property damage.

It must be stressed that these are the minimum coverages you must have. As any shortfall between the minimum coverage and the actual amounts claimed may have to come out of your pocket, it would be wise to consider increasing these minimum amounts.

The optional insurance coverages are intended to provide the insured person protection for things not included in the mandatory requirements. Below is a list of the most common options available. In some states these are not optional but are mandatory.

PIP - Personal Injury Protection

This is mandatory in several states and is intended to provide coverage for injuries sustained by the insured person irrespective of who caused the car accident.

Collision Coverage

This covers the insured person for damages to their car when involved in a collision with another vehicle or object. Note: In some states where collisions with deer are common, a special option for just such an event may be needed over and above the normal collision coverage.

Un-insured Coverage / Under-insured Coverage

When the insured person suffers bodily injury or property damage as a result of an vehicle accident caused by an uninsured, underinsured or hit and run driver, this cover will pay for any expenses involved.

Of course, these options will increase the cost of the car insurance policy. When it comes to the amount of money you pay for your policy (the premium), the insurance company will take into account many factors to arrive at the total cost. Your age, driving record and the type of car you are insuring will all be considered. Where you live also has an impact on your insurance premium cost.

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Examine Your Free Auto Insurance Quote

Examine Your Free Auto Insurance Quote
by Jon Arnold

Whether you shop online or face to face with a representative, getting the best premium does not always mean you got the best price. If that seems a bit odd, it isn't. Many times companies and representatives use standard coverage when they quote car insurance. Their standard coverage isn't necessarily the same as everyone else's.

When you request a free auto insurance quote, whether it's online or in person you need to be very specific about what you want the representative to quote. If you presently carry single limit liability coverage of $300,000 and someone quotes split limit coverage of 50/100/20 you aren't comparing the same thing.

Split limit coverage has three numbers. The numbers are in thousands. The first number is the maximum amount that they'll pay for each person injured in an accident. The second number, the 100 is this case, is the total amount they pay for bodily injury and the third number the 20 is the amount that the company pays for property damage that you caused to another. The single limit is the total that the company pays for property damage and bodily injury. If one person is injured and there's no property damage, which could happen if you hit a pedestrian, then they would have access to the full $300,000. In split limit the maximum the company pays one injured party is only $50,000 in this scenario. You easily see the difference. What if you have a split limit of 300/300/100 and someone tries to sell you a single limit of 300,000? The split limit is better because you have $100,000 more insurance. It is just for property damage, but it doesn't come off the $300,000 that you have for bodily injury.

Make certain that the uninsured/underinsured motorist coverage is equal for all free auto insurance quotes. You and your passengers receive this money if someone that doesn't have insurance hits you.

The comp (comprehensive) and collision section is easier to compare. The deductibles must be the same for both sections or you aren't comparing the same thing. If you have a lower deductible on the policy you carry and someone quotes a lower price for insurance, but the deductible is higher, it may not be a bargain. The higher the deductible goes, the lower the cost of the insurance becomes. Your present company also lowers its price as the deductible increases, and they actually could be lower than the free auto insurance quote you just received.

Check whether there extra coverages on your policy that aren't included in the free auto insurance quote. Towing and car rental are two that appear frequently. These items cost premium dollars and if omitted, and of course bring the price lower.

If a representative suggests you adjust your coverage and it sounds like a great idea, get a new quote from the competitors, including your own company.

The most important thing when you get a free auto insurance quote is to start soon enough so you can apply for coverage a month before your policy premium comes due. This gives the new company time to evaluate your driving record and make decisions on the real cost of the policy and whether they want you as their customer. If the rate increased after underwriting, you still have time to cancel the new policy without charge and keep your old one.

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How To Get The Best Car Insurance Rates

How To Get The Best Car Insurance Rates
by Aaron Powell

Once you have purchased your new car you will need to get an car insurance policy. You should research many insurance companies so that you can get the best deal. Even if you are not buying a new car and you are not happy with your current insurance you can check out different insurance companies and see which ones have the best rates. You can get insurance information from other agents in your area or you can check online insurance companies to see who is offering the best deal. Then when your current policy is about to expire and you have found another company with better rates you will be ready to do so.

Probably the most convenient way to check out different insurance companies is to go online and get quotes for your car. By checking out car insurance company rates online you can check out many companies in a shorter amount of time from your own computer than you would by going to the many different insurance companies directly. Therefore, by checking out your options on the internet you will be able to get the best price for your insurance and you will save time and money.

What Goes Into Deciding The Cost of Your Car Insurance?
There are things about your car that will affect the cost of your car insurance like whether it is a new model car or older model car. A sports car will be a much higher cost of insurance than a regular car, just because it is a sports car. The size of the car and the size of the engine will also aide in the outcome of your quote. The safety features that are installed on your call like side air bags, proper head restraints and the type of brakes like the anti lock braking systems (ABS) will help reduce the cost of your insurance. Other things that can affect the cost of your insurance will be the age and sex of the person who is driving the car. A man's insurance under the age of 25 is usually much higher of a woman of the same age because according to statistics women are safer drivers and therefore, their insurance prices are much lower. Some insurance companies will give discounts for drivers who have taken a driving school course also some insurance companies offer discounts for teenage drivers who have good grades, a B average or better!

Choosing The Right Type of Insurance
Before choosing which insurance company you want you will need to decide what type of insurance you need. For example if you owe money on your vehicle the bank will want you to have a full coverage policy which is higher, but will cover you much more if you were to have an accident. However, if you have an older car that you do not owe money on you may only want to get liability insurance which is only a minimal amount of coverage, but is much cheaper on the cost.

With all of the information you have now been given you should be able to make a more informed decision on what type of insurance you need and the different things you can do to help lower the cost of your insurance. You should also check out the companies to see if they have any complaints against them and you can do this by checking with the Better Business Bureau in the state where there company is located.

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How to Avoid Auto Insurance Fraud and Scams

How to Avoid Auto Insurance Fraud and Scams
by Amy Nutt

The types of scams

There are several scams that are well known amongst law enforcement and the general public alike. These scams include:

• The Exaggeration Scam: This is the scam in which the individual doing the scamming has inflicted prior damage to their car to make it look like the damage occurred in their accident with you. These individuals stage the accident, although the crash may be legitimate. Because their vehicle was not appraised prior to the accident, the damage they inflicted on it cannot be proven to be or not to be part of the accident. They are given the benefit of the doubt and they receive payment for that damage from your insurance.
  

• Rear-ender Scam: The scammer will dodge out in front of you and will then slam on their brakes. They make sure that they do this when you don't have enough time to brake and avoid hitting them. Unfortunately, the police and the insurance companies automatically assume the second car is at fault in a rear-end crash. Another unfortunate thing about the rear-ender scam is the fact that a false medical claim usually follows. The scammer convinces a doctor that they sustained injuries in the crash. What happens is that your insurance pays for their pain and suffering, as well as their medical bills. Sometimes these scammers may even have a medical accomplice who receives a payoff for their cooperation.
  

• The Good Samaritan Scam: This is the individual that waves you on when you can't see if traffic is coming. However, they wave you into the path of their partner and they ram right into you. What happens is that it looks like you drove out into traffic, which makes it look like your fault. When the cops arrive, the waver denies they ever waved you on.

How to avoid these scams

First and foremost, you need to be a defensive driver. You have to always stay alert and not always trust those around you. If someone waves you on, don't trust them. You still need to creep out into the street until you can see. You can wave at them to thank them, but don't gun it out into traffic. You also need to do everything you can to make sure there is plenty of space between you and the car in front of you. If someone darts out in front of you, you need to slow down just in case.

Furthermore, you should be sure to document everything in case of an accident. Keep a disposable camera in your car to take pictures of the accident and make sure you listen to what all of the witnesses say to the police. You also want to acquire a copy of the police report when it is available so that you can tell your auto insurance company about your suspicions. Insurance companies are experienced in stopping scammers, so provide them with everything you have so that you can turn the tables on the scammers.

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