Car Insurance Coverage Explained

By: Raphael Locsin
Website: http://www.shiftins.com

Working as a California car insurance agent has help me realize people always want to get a good deal on their insurance premiums. What my job has also taught me is that people will spend more time trying to get a good deal than understanding what the deal actually is. Recently, I have been hearing an increasing amount of stories about someone's insurance nightmare. While plenty of these could actually be cases of "insurance gone wrong", I feel that some are actually attributed to the insured not knowing what their policy actually covers. By learning the different forms of car insurance coverage, you will be able to not only ensure you are receiving the best deal but you will also ensure you are properly protected.

Liability 
Covers: Damages done by the insured to other people or their property 
Limits of liability: Bodily Injury per person / Bodily injury per occurrence / Property damage 
Examples of limits: ($15,000 / $30,000 / $5,000) is the same as (15 / 30 / 5) 

·         15/30/5 

·         25/50/25 

·         50/100/50 

·         100/300/100 

·         250/500/250 

Bodily injury - If you cause an accident that injures other people, this insurance will pay the amount you are legally obligated to pay for those injuries and related costs, which can include:

·         Hospital and medical bills

·         Rehabilitation

·         Long-term nursing care

·         Funeral expenses

·         Lost earnings

·         Pain and suffering

·         Other damages

Property damage - If you ever cause an accident, your Property Damage Liability coverage will pay for the damage done to anyone else's property, whether it's another vehicle, a lamppost, or even a house, up to the selected amount.

Liability is the most basic form of coverage. In order to operate a vehicle, it is usually required by law to have liability insurance. Liability will take effect if you are driving your car and crash into anything or anyone (at fault accident). The policy will pay any damages you are found legally responsible for until the dollar limits specified. If you have a liability only policy and are at fault in an accident, it will not cover any damages to your car or any injuries you may have. If you have a liability only policy and you not at fault in an accident, the policy of the driver at fault will pay for any damages and injuries you may have.

Uninsured Motorist
Covers: Damages done to the insured by a driver with no insurance or insufficient insurance limits
Limits of liability: UMBI per person / UMBI per occurrence
UM Property Damage: Exists but is usually limited to low amounts like $3500. Anything more should be covered under comprehensive and collision. 
Examples of limits: ($15,000 / $30,000) is the same as (15 / 30) 

·         15/30

·         25/50 

·         50/100 

·         100/300 

·         250/500

note: UM limits may not exceed those of Liability but do not necessarily have to match the limits either. It is possible to have a liability of 50/100/50 and a UM of 25/50

Uninsured or under-insured motorist coverage is not always required by law to have but is extremely important to know about. In 2004, the California Department of Insurance calculated that 14.43% of drivers on the road were uninsured. If an uninsured driver were to injure you in an accident, who would pay for your medical bills? With some exception, the average person whom does not carry insurance will also not be able to afford $15,000+ of your medical bills. You will end up having to sue the person and try to collect money from them for what could be years and try to recover from your injuries at the same time. UM will pay for any injuries the policy holder has that is caused by a driver with no insurance or not enough insurance.

Full Coverage (comprehensive and collision) 
Covers: Damages or loss towards or of the covered vehicle 
Limits: Will pay to repair or replace the insured vehicle according to its current value 
Deductible: Is the amount you are required to pay after a covered loss in order for a claim to be covered
Examples of deductibles: ($500 / $500) is the same as (500 / 500)

·         250/250

·         500/500 

·         1000/1000 

Comprehensive coverage - will cover pretty much anything that can happen to the car besides a collision with another vehicle or form of property. This includes but is not limited to:

·         Theft

·         Vandalism

·         Fire

·         Windstorm

·         Collision with an animal

·         Glass breaking

Collision Coverage - will provide protection in the event that it is damaged in a collision and will pay out if your vehicle:

·         Collides with another object

·         Overturns or rolls

The common misconception about the term full coverage is that it is usually only referring to the vehicle not of every possible loss. Make sure to check your policy to see if what you have is what you are getting. You may think you have a full coverage policy when an uninsured motorist crashes into only to have injuries and find out you only had liability and comprehensive and collision. It is also important to remember that you will only have to pay your deductible if you want to have the insurance company pay for any damages or loss towards your vehicle.

Medical Payments
Covers: Any medical the insured may need as a result of an accident regardless of who is at fault.
Limits: Usually limited to treatment received within the first 3 years after an accident and limited to a specific dollar amount.
Common Med pay amounts:

·         $1,000

·         $5,000  

·         $10,000

·         $25,000 

·         $50,000

Med pay is usually very inexpensive and is sometimes considered the least expensive form of coverage to add on to a policy. The most common time med pay will take effect is if the insured is at fault in an accident and he or she is also injured. For instance if you are driving down the street and crash into a parked car (with nobody inside) and break your arm, med pay would cover your medical bills and property damage liability would pay for the car.

Road Side and Towing
Covers: road side services and towing for a vehicle
Limits: usually restricted to only vehicles listed on the policy and only after a covered claim

This is more of an add-on to your policy but it is worth mentioning. Road side and towing can save you money in the event of an emergency that requires a tow service to be hired.

Understanding what forms of coverage are on your policy is vital to understanding the type of "deal" you are getting. Sometimes it is not always beneficial to go after the "lowest price" when you are skipping out on coverage that is important to you. Become familiar with the different forms of coverage and determine what fits your needs then shop for the best deal on the proper coverage. You will feel safer knowing that you not only saved money but that you are also properly protected.

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Car Insurance Los Angeles

The City of Los Angeles is a one of the top US cities for business, international trade, entertainment, culture, media, fashion, science, sports, technology, and education. It is also the second most populated city in the United States, after New York City. According the the 2010 United States Census there are 3,792,621 people residing in Los Angeles city alone and 12,828,837 people living in the entire L.A. county. It is no surprise that The City of Angels is also known for its traffic. Car Insurance in Los Angeles is just as notorious.

The most popular type of auto insurance coverage in Los Angeles is comprehensive. (The next most popular is collision.) Comprehensive coverage might be optional depending on a few different factors, but many people opt to add it to their auto insurance policy. If you have never heard the term comprehensive coverage, you may know it by its other name – OTC coverage (other than collision). This type of coverage takes care of most all types of damages that are incurred by things other than accidents involving other vehicles.

Adding comprehensive coverage is not something that everyone opts for. The people who do add it to their policy typically have vehicles that are new or costly models. Those driving these types of cars find that comprehensive coverage is well worth the extra added expense, while others who have less than new and low to moderately priced cars may not see the point in making their rates go up. If you do choose to add this to your policy, there are many good things that it can do for you if the need for it arises. The following are some of the things for which comprehensive coverage will offer protection:

• Your vehicle is stolen.
• You vehicle is damaged in a flood or other natural disasters such as hurricane, earthquake or tornado.
• Someone has vandalized your vehicle.
• Your vehicle is damaged by a fire.
• Your vehicle is damaged from hitting an animal.

Having protection from these types of incidents can be highly desirable because you never know when disaster can strike. People who live in places that are prone to natural disasters will find comprehensive coverage to be a necessity that they cannot afford to be without.  When putting your policy together, make sure that you read all the fine print to make sure that everything you want your comprehensive coverage to take care of is present.

Comprehensive Coverage Advice and Recommendations

If you are having a difficult time deciding if you want or need to have comprehensive coverage on your auto insurance policy, here is some advice from the professionals.

• If you have a vehicle that is financed or leased, having comprehensive coverage may be required. Check your state laws to find out if this applies to you. The reason that this may be true in your state is that the finance company wants to ensure that everything is covered for every possible scenario. They do not want to lose any money on their investment. After all, the vehicle technically belongs to them until you have it paid off.
• If you have a newer model car, it is worth getting comprehensive coverage. This is for your protection and may come in handy one day.
• If you have a vehicle that is older, comprehensive coverage is not something that is very important in most cases because it is not financially sound. The only older car that would benefit from comprehensive coverage is a classic.

Take all of the above into consideration and you will have an easier time deciding if you need comprehensive coverage or not. The road ahead may be tough to navigate but your car insurance Los Angeles doesn't have to be.

California Car Insurance

Many people are looking for ways to save money on their auto insurance in California and there are many ways that this can be achieved. Reducing your auto insurance costs frees your money up for more pressing needs, and in today’s economy this has become increasingly important. Listed below are some steps that can significantly reduce your rates.

Step 1: Comparison Shop

You have surely heard this before, but it bears repeating. When you are in the market for a new car you visit several lots before choosing one. Some lots are cheaper than others, and even if you are only saving $500 on the model you want, that is $500 that you do not have to spend. The same principle stands for auto insurance. Comparison shopping for insurance used to be something that took a great deal of time. However, with technology being what it is, looking for multiple insurance quotes is as simple as sitting down at your computer. The more you have to choose from, the better deals and discounts you will find.

Step 2: Combine Your Policies

If you have your auto, life and home owners insurance at different agencies, make sure you see what can happen if you put them all together during your comparison shopping. You may find putting them all in one company to be advantageous.

Another way you can go is to talk with your current auto insurance company and see what type of discounts you can get if you also put your homeowners and life insurance with them. This would show loyalty and many companies will reward loyalty.

Step 3: See About Family Discounts

 If your family has more than one car, and each policy is with a different company, see what type of discounts you can get for putting all the family vehicles with one company.

Step 4: Change Your Coverage

If you have a car that is older, you may want to check out quotes without collision. It is rarely worth keeping collision on an older model vehicle as the deductible is likely more than the car is actually worth. Dropping collision can really lower your quote so this is certainly worth looking into.

Step 5: How Safe is Your Vehicle?

How safe your vehicle is can make a great deal of difference in what your auto insurance quote will look like. For instance, where is your car parked when you are at home? If you have it in a garage enclosure you may qualify for a discount. If you have an alarm system, that can also make a difference. Make sure to check with each company to see if they can offer you anything in this realm.

All of these steps can help you to save a substantial amount of money on your California car insurance. However, the best thing you can do to get a good rate and make sure you keep it, is to be a safe driver. An insurance company’s favorite customer is the one that never has to file a claim. If you have not had to do so for the last few years, your chances of getting a lower rate are much higher. Keep this in mind each time you drive so you can keep your insurance rates at the best price possible.