Information about car, auto, motor and lorry insurance
Car Insurance : all you have ever wanted to know and even more. Find out !
Americans have a love affair with cars, and since Americans own more cars per capita than any country in the world, a good place to begin examining insurance risks is to look at those associated with the ownership, maintenance, and use of our beloved PTV (personal transportation vehicle). Unless you walk around with a loaded gun in your pocket, an automobile represents the most dangerous device you own. In one split second, you can experience lawsuits, death, long-term disability, major medical expenses, and major property darnage ! Pretty scary stuff! (source: Insurance for Dummies).
Americans and their cars
An accident is an unexpected, unforeseen event not under the control of the insured and resulting in a loss. The insured cannot purposefully cause the loss to happen; the loss must be due to pure chance according to the odds of the laws of probability. For example, under a PERSONAL AUTOMOBILE POLICY (PAP) if an accident occurs, the insured is covered for loss due to his/her negligent act or omissions resulting in bodily injury or property damage to another party (source : Dictionary of Insurance Terms)
What is an accident ?
Renting a car, whether for business or for pleasure, puts you face-to-face with risks that your Personal Auto policy sometimes does not cover. Here are the four main sources of liability you face when renting a car:
• You have direct liability for injuries or property damage that you cause to others while operating the rental car. If you run a red light and injure others or damage their vehicle, for
example, you're at fault and responsibIe. No surprises here.
• You are directly liable for damage to the rental car that you cause by your negligent driving. If you run a red light and damage the rental car, for example, you're responsible for the
repair costs.
• You are responsible for damage to the rental car - damage that you did not cause but for which you agreed to be responsible when you signed the rental contract. Every rental contract I have ever looked at makes the renter absolutely liable for all damage regardless of fault! This clause has always been non-negotiable.
This means that you are responsible for damages such as hall damage, someone else running a red light and hitting you, someone vandalizing the car by keying it, or someone hot- whiring the car and stealing it. In short, if you return the car with any darnage at all, you owe. With the cost of new cars today, that could mean more than $25,000 if the car is totaled or stolen.
• You are liable for the loss of revenues the car rental agency suffers as a resuIt of the car being unavailable to rent while being repaired. Again, you will owe this loss-of-revenue regardless of whether you actually caused the damage. You agree to be responsible when you sign the contract.
Here's a tip for the car rental industry: If you want to attract new customers, offer more reasonable contracts. (source: Insurance for Dummies)
Insurance and car rental
Basic principles of car / auto insurance
Welcome to Online Car Insurance Specialist, the online information portal about car, auto, motor and lorry insurance for the United States. In almost every state a driver needs insurance. Consequences of driving without insurance can be enormous. But like with everything you buy in life, you should know what you want and need and what the differences are between your choices. This website deals with insurance information and informs you about the latest offers of online car/auto insurers. W e hope you are not offended when we first want to explain to you the basic principles of auto insurance. Please read on and also read our disclaimer.
Why insure ?
Special Auto | Car Insurance Situations
Danger of split liability limits
Most liability coverage for homes, boats, recreational vehicles, and other personal policies is sold by insurance companies as a single limit (such as $300,000) that applies to all injuries and property damage you cause in a single accident, no matter how many persons are injured or how much property is damaged. In other words, if you're in an accident, you have one pool of money to pay for all your liability. Liability coverage for car accidents is also available as a single limit, but just as commonly it's sold with split limits.
With split limits automobile liability coverage, you select three limits. You select one limit - the maximum your policy pays - for injuries you cause to a single person. You select another limit for all injuries you cause in a single accident involving two or more people. And you select a third limit for all damage to property you cause in a single accident. The limit you are actually most likely to exhaust in a car accident is the injury limit per person. With split liability you could get into a situation where you your split limit is not enough to cover expenses like legal fees and costs of injury.
insuring, but the money you save is peanuts with reference to the possible claims you will receive when you are involved in a car accident, especially if permanent physical harm has been caused. One of the Golden Rules is : Don’t risk more than you can afford to lose. (source: Insurance for dummies, jack Hungelmann).
In most states it is a legal obligation to have car insurance when you drive a vehicle, even when it is a rental. Of course you could save money by not or under-
The financial consequences of liability can be enormous. Let’s look at a small example : you are in your car en drive right into a car, seriously injuring the other driver. The driver is taken to the hospital, undergoes emergency surgery, spends a month in hospital and spends two years in rehabilitation, missing 2 years of work. Do you know what that will cost ? A lot and is also depends on the persons occupation / personal income situation what it will cost you. Examples:
A teacher : $ 100.000 (medical bills) + $ 60.000 (lost wages) + $ 300.000 (pain/suffering) = total claim = $ 460.000. But for a doctor you pay $ 100.000 (medical bills) + $ 300.000 (lost wages) + $ 500.000 (pain)=total claim = $ 900.000.
Unfortunately the insurance business is a bit complex. Fortunately we are here to help you make sense of all those difficult insurance and legal terms. Based on renowned literature we try to help you understand special insurance situations. We will try to help you find your answers. Dealing from auto insurance until liability issues and forms to fill out. Insurance is a financial instrument - nothing more, nothing less - that plays a critical role in both personal and business financial planning. Click here to go to the main special auto insurance situations.