Posts Tagged ‘Liability auto Insurance’

Auto Policy 101: What Is A Deductible?

Wednesday, April 11th, 2012

An auto insurance deductible is the amount of money you’re responsible for paying before your insurance covers the rest of the damages incurred in a claim. This amount may range from $100 to $1,500, depending on the state and insurance provider. So, for example: if you have a $250 deductible and you are in an accident that caused $2,500 in damages, you will pay $250 and your auto insurance company will pay $2,250.

Insurance Deductible Explained

So why would anyone choose to pay $1,000… if they could get away with paying only $100 instead? One way you can lower the total cost of your annual auto insurance coverage is by choosing a higher deductible. Since you will cost the insurance company less should an accident occur, they are willing to offer you a lower rate in return. Basically, you need to calculate the risks associated with owning and operating a vehicle.

  • What is the likelihood your car will be vandalized?
  • What is the likelihood someone will steal your belongings from your car?
  • What is the likelihood you’ll be involved in an accident?
  • What is the likelihood a natural disaster will cause damage to your car?
  • What is the likelihood you’ll hit a deer or another type of animal?

You want to make sure you are able to save enough money in reserve to cover whichever auto deductible you choose.

Other Factors For Auto Insurance Deductibles

In some cases, you won’t have as much freedom to choose your own deductible. For example, your car insurance company may require you to pay a higher deductible if you are considered a “high risk driver.” If you have had several incidents over the past three years — including traffic accidents, DUI, speeding violations, or reckless driving offenses, then you can bet you’ll be charged a higher deductible on your auto policy.

When To Pay A Deductible

Most auto insurance companies only ask you to pay a deductible in the event of an accident or claim. So you will not need to pay this money  up front when you buy your new auto policy. If you want to buy a particularly comprehensive policy or additional collision coverage, you may need to pay along with your annual premium, although this is rare.

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Posted in Auto Insurance Rates, General Auto Insurance |

Oregon Auto Insurance Coverage Options

Friday, September 23rd, 2011

Oregon auto insurance buyers have several options available to them when choosing coverage. The following types of protection are offered by insurance companies licensed to sell policies in the state:

Bodily injury liability coverage pays for personal injury claims made by the occupants of the other vehicle when an at-fault accident occurs. It pays for medical bills, rehabilitation expenses, funeral costs, and legal fees incurred in defending an action.

Property damage liability coverage is used to pay for the cost of repairs to the other driver’s vehicle. It pays for the cash value of other people’s property damaged or destroyed in an accident.

Uninsured and underinsured motorist coverage pays out when the at-fault driver in an accident either doesn’t have coverage or doesn’t have enough protection to pay for the damages caused in an accident. It covers personal injury claims made by accident victims.

Uninsured motorist property damage coverage is used to pay for repairs or the cash value of the policyholder’s car after a collision where the driver doesn’t have any coverage or cannot be identified.

Personal Injury Protection (PIP) coverage compensates the policyholder and the occupants of his or her vehicle for their medical bills and rehabilitation costs following an accident. It also compensates covered individuals for their lost wages and childcare costs. This type of insurance also pays out a funeral benefit if the accident was a fatal one.

Collision and comprehensive insurance coverage pays for physical damage to the policyholder’s vehicle. Collision insurance pays out when the damage is caused by striking another vehicle or an object. Comprehensive insurance pays out when the damage is caused by events such as flooding, hail, falling objects, wind, fire, vandalism and theft.

 

 

 

 

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Posted in Oregon, USA |

What Does Liability Auto Insurance Protect Drivers Against?

Thursday, September 15th, 2011

Liability auto insurance coverage is put in place to pay for damages that a policyholder causes in an at-fault accident. Rather than paying for the policyholder’s own claims, it covers the cost medical bills, rehabilitation expenses and lost wages. Depending on the state, a person who has been injured in an accident may also have the right to sue for compensation for his or her pain and suffering.

It is an important part of an overall financial plan, and having enough liability coverage in place is key to protecting the policyholder’s hard-earned assets. Without this type of protection in place, the at-fault driver in an accident will have to pay for these costs personally. Very few people have funds readily available to pay out several thousand dollars in damages if an accident occurs. Rather than having to consider selling off assets and withdrawing funds out of a bank account to pay these obligations, a much better choice for drivers is to buy a policy with a coverage limit which is high enough to cover the damages which could result from a serious accident.

A driver who cannot produce proof of insurance when stopped by police or at the scene of an accident will be liable for penalties which may include a fine, license and/or registration suspension and more. A lapse in liability insurance coverage can also make it more challenging to get coverage, since this incident will put him or her into a high-risk category.

 

 

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Posted in General Auto Insurance |

Liability Auto Insurance for Business Owners

Wednesday, July 27th, 2011

Liability auto insurance for business owners is an important part of a commercial policy. It protects the company’s assets if the owner or an employee is involved in an at-fault accident.

Third party liability coverage is required in most parts of the United States. Each state sets minimum coverage requirements for bodily injury and property damage insurance. The bodily injury part of the policy pays for personal injuries and economic losses claimed by the people traveling in the other vehicle when an accident occurs. It also pays a funeral benefit, if the accident was a fatal one.

Property damage liability insurance covers the cost of repairing the other driver’s vehicle. If the car is totaled in the accident, the insurer will make a payment based on its cash value. The property damage part of the policy also pays for repairs to public property damaged or destroyed in the accident, including sign posts, guard rails and fences.

The exact level of liability auto insurance business owners should have in place will depend on the level of assets the business needs to protect. It’s a good idea to have at least $100,000 in liability coverage in effect, and a number of business owners choose to buy a policy with a limit of up to $1 million per occurrence. For business owners who currently have a policy in place, reviewing the policy provisions at least once a year will help to ensure that the right level of protection is in place.

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Posted in USA |

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