AUTO CAR INSURANCE

Protecting Your Family - Buckle Up! Recent good news from Transport Canada statistics show an increase in seat belt use across

Canada. Ontario laws for the average person makes seat belt use mandatory. Seat belts have proven to save lives and reduce injuries. Newfoundland, Quebec and Saskatchewan lead the country with usage rates in excess of 90%. Ontario and British Columbia followed closely behind. In addition, all ten provinces achieved seat belt usage rates of more than 83%. So buckle up!

What Someone Else Is Doing..To Protect You!!!

Smile your on Candid Camera! Candid cameras to catch crazy drivers? It’s true.
Automatic cameras that take pictures at traffic intersections are an effective tool for reducing the number of drivers running red lights, the Federal Highway Administration (U.S.A.) An automated enforcement program for red light running people should translate into at least 20% and as much as a 60% reduction in violations. 

It is also believed that the new technology might also reduce the number of crashes in intersections.. Each year, red light running accounts for about 260,000 car crashes. It also accounts for about 121,000 injuries and more than 800 deaths across the United States. 

This information is from the Insurance Institute for Highway Safety. Fatal crashes at intersections with traffic signals have risen 24% from 1,888 in 1992 to 2,344 in 1997. A significant number of these violations are in rush hour traffic when people are in a hurry. 

When a car speeds through a red light, a magnetic relay beneath the pavement sends a signal and the camera’s shutter opens. A computer notes the time, date, vehicle speed, and amount of time the light was red. While the ticketing process varies from system to system, usually a technician retrieves the film from each camera daily and has it developed or scanned into a computer.

After license plate information is processed, the police print and verify a ticket which is then mailed to the registered car owner. In most states, drivers can go to court and testify they weren’t behind the wheel, but in New York, the registered owner is liable. 

Most of the programs used traditional film equipment, but some have experimented with digital cameras. Statistics show that about 250 cameras are set at intersections across the country and that number is expected to double per year.

A New York City program started in 1993 resulted in a 38% decrease in violations at 18 monitored intersections. Cameras in most states take photographs from the rear of the intersection, so the driver can’t be seen, but in California the system also used a picture of the driver’s face for identification. 

The cameras were used at crossings for a light rail line running between Los Angeles and Long Beach. Between 1990 and 1997,there were 353 crashes between trains and cars. They resulted in 33 deaths. At the initial three crossings using cameras the number of drivers running red lights dropped 92%, 78%, and 34% respectively.

Drivers who run red lights are involved in 89,000 crashes a year, causing nearly 1,000 deaths!

Tips To Understanding - "Betterment & Depreciation"

What is betterment and how does it affect me?

It was a hot sunny day, mid July, when Tom came out to his car in

the parking lot after shopping. But 5much to his surprise and disappointment there now was a scratch about 8 inches long on the fender. "I’ll just have the insurance company pay for repainting the whole car" he said. But such may not be the case! Otherwise, the owner would be advantaged by the accident through a new paint job.

In cases where the repairs or replacement as a result of an insurable loss end up giving the insured something better than he or she had before the loss ...the difference is known as "betterment". The concept of insurance does not allow the insured to profit or "better" from the loss. Then an appropriate value must be agreed on as to the owner’s contribution towards the betterment.

This is a difficult concept to explain or understand when someone has suffered a loss. Especially after an accident or loss when the policyholder played no role in the event. They have paid insurance premiums and now have the inconvenience of repairs. On older carsit’s simply not realistic to expect an update on a vehicle without some cost to the owner. 

Remember also that insurance companies rates are usually based on losses. This then would probably result in higher insurance rates for everyone. So the insurance company would have the 8 inches or so fixed and repainted, but, not the whole car.

Unfortunately, there may exist an attitude or misunderstanding sometimes that the insurance they were purchasing in their policy guaranteed them that their property would be repaired at no personal cost.

What is depreciation and how might it affect me?

Let’s look at the same situation, except that Tom finds his car tires have been slashed by vandals. Does Tom benefit from new tires on his car? You bet he does! So the insurance company would take into consideration, the mileage, wear and tear of the tires and Tom would have to pay the difference to get new tires on his car. After all, Tom had tires that had 20,000 miles on them and now he has new tires with zero mileage. In new condition. Tom won’t have to replace or worry about them for awhile.

Betterment and depreciation decisions on claims are made on a individual basis. They are dependent on the specific facts of each case. Always though, the object of the claim is to return the vehicle to its pre-accident/loss condition and shape and includes the body, tires, etc..

Please note: These are difficult concepts and often can be

an area of conflict during the claim settlement.

6 Tips to Reduce your Automobile Gas Bills

1) Always keep your engine well tuned. A poorly tuned engine can increase fuel consumption by 50% experts say.

2) Avoid fast jackrabbit style starts. They’re bad for your tires and terrible for your fuel consumption.

3) Don’t let your engine idle if you’re waiting for someone or in a line at a fast food restaurant. One minute of idling uses more fuel than restarting your vehicle engine.

4) Install a block heater to help warm your vehicle engine. A warm engine means easier starting with fewer emissions and less need for idling.

5) Plan you shopping and errands to combine multiple tasks on one outing to avoid several different separate trips/outings which can waste a lot of fuel.

6) Check your tire pressure regularly. Under-inflated tires can increase fuel consumption as much as 5%.

These few little tips can.....save you money at the gas pumps which results with ....more money in your pocket!

Interesting Tips.......Believe them or not! - Road Deaths Drop in ‘98

Transport Canada says statistics for 1998 show that fewer people are dying in traffic accidents. What is increasing though is the number of motorcyle and bicycle fatalities.

Statistics reveal that:

Are Sports Utility Vehicles Safe? You decide!

Are Airbags Effective?

According to the National Highway Traffic Safety Administration more than 2,920 people owe their lives to airbags. Driver deaths have been reduced by 14% and passenger deaths reduced by 11%. When combined with the proper use of a

seatbelt it reduces the risk for serious head injuries by 75%. Where seatbelts alone have a 38% risk factor.

However, since 1990 there have been 105 deaths that have been reported and a majority of these were children.

Believe it or not!!!

MORE INTERESTING STATISTICS

Despite a crackdown by York Regional Police(Ontario, Canada) it appears fatalities are on an increase. The statistics recently released are as follows:

Now................according to RIDE statistics:

This was up from 10 the year before.

Canadian Insurance Industry Facts of Interest

 

Property/Casualty industry in Canada:

Simple Tips.....How To Avoid Auto Insurance Problems

Not knowing how the automobile insurance system works can cost you money.

Here are a few Tips to watch out for!

1) Have all drivers listed!

Check your policy carefully on each renewal to make sure that all licensed operators of your vehicle are listed and shown on the policy.

For example - The vehicle and insurance is shown in the husbands name yet no where on the policy is the wife’s name even mentioned though she has driven for 20 years accident free. What if another car was bought for her and she has no previous insurance experience to confirm? Under age drivers (25 yrs old) might be another area of concern. People might believe they are saving money by not showing them as operators? But what happens when they do get their own vehicle and can’t provide accident free insurance experience. And they will get their own auto- it’s just a matter of time.

2) NSF Payment Cancellations.

Be responsible on payments for your auto insurance. Cancellations for non payment, non sufficient fund cancellations can be very negative and costly to you. It may even limit what insurance company you can place your insurance with! Be responsible and if a cancellation problem arises deal immediately with your broker to resolve it. Don’t ignore it!

3) Depreciation - what may happen on a claim.

Being prepared and knowledgeable can make a big difference with the results of a auto claim.

For example - If your car tires are stolen and you report a loss under your comprehensive coverage would your tires be replaced at full value. Not likely!

Such factors as age, condition, usage, wear and tear come into play. It only makes sense! Your tires might have 20,000 miles on them and yet you would be getting new tires. But how do you protect yourself so the claim is fair for you and the insurance company. A tip- keep the original bill of sale and have written on it the actual mileage of the vehicle at the time of installation by the tire installer!

4) What can I do to keep the cost of insurance down.

Contact your broker and discuss how your use of the vehicle(s) at present is rated and how your insurance company classes are determined. A potential problem could arise at the time of loss if your use is not properly classified. Also, you could be paying extra money by being wrongly rated.

Are you rated properly as your circumstances are today..... not in the past!

People Withholding Information!

Figures released by the Insurance Advisory Organization (IAO) suggest that a significant percentage of both personal and commercial policyholders are not disclosing past claims to their insurers when arranging insurance. The I.A.O. commercial based Claims Tracking System shows non-disclosed claims on more than 50% of inquiries while about 20% of the 150,000 monthly inquiries made to the Habituation Tracking System (home, etc.) uncover omissions. What that means is even if these figures are only half accurate then too many people are withholding insurance claims information and not disclosing it when arranging insurance.

In fact , statistics revealed that "seven to eight cases a day show up as suspicious". I can think of three possible reasons perhaps for this outcome.

1) One would be that some people simply don’t give the information as they believe they can hide it.

2)The second possible reason is that people simply forget to mention a particular claim or incident.

3) The third possible reason is the insurance broker did not ask the right questions.

But, whether the non-disclosure occurring is due to genuine errors, insufficient information being requested , or deliberately omitted, the real problem might end up with the insurance companies basing their rates on inaccurate data. Thus, someone might enjoy lower rates for car insurance as having no claims when in fact they had at- fault claims and should be paying a rate based on that actual record.

While their might be the odd company which does not check the data base for each and every new application for any past claims experience, the simple fact is most do! Most do it with no exceptions.

To combat fraud and misrepresentation, the ICPB’s Aspect system is linked to the U.S. National Crime Intelligence Branch, recording all vehicle movement across the border. ICPB’s advises that false stolen vehicle claims have been uncovered utilizing the system

Warning! Is Your Driver’s License Still Valid!

In Ontario (Canada) all new drivers, regardless of age, must complete a two level "Graduated Licensing" program before they qualify for full license privileges. These drivers have a maximum of five (5) years from the start date of their Level One License to earn full license privileges. If they do not receive their Class G license ( full license) within this 5 year period, they must reapply and start the licensing process over again.

According to information provided by the Ministry of Transportation, an estimated 125,000 Ontario drivers will see their Level One and Level Two licences automatically expire this year. If you received your Level One or Level Two license in 1994/95 and have not "graduated" to a Class G License, your license may have already expired. This means you could unwittingly end up driving without a licence. Please check your license and with the local registration licensing office.

Having Third Party Insurance is a Wise Investment - If you drive in Australia then purchasing third party car insurance in addition to owning compulsory third party personal (CTP) insurance is one of the wisest choices you can make, especially if you are unable to purchase comprehensive coverage. Many drivers believe that having compulsory third party personal insurance is enough simply because it’s required by law and is included in your registration, but fail to remember that CTP insurance does have its limitations.

CTP insurance, or “green slip” insurance as it is more commonly called, only provides coverage for medical and healthcare claims made against the liable driver; it covers personal injury to another party when the owner of the vehicle or the person driving the vehicle is at fault. While CTP insurance covers your passengers and others that are using the road, it does not cover property damage or damage done to other vehicles by yours. This gap in coverage is where third party property car insurance takes over.

What does third party property insurance provide?

Third party property insurance covers damage done to any vehicles and the property of others by your vehicle in an accident were you are at fault. However, it does not cover damage to your own vehicle. Having third party property insurance is a no-brainer when you consider how costly even the slightest accident can be. Why risk paying thousands of dollars of out-of-pocket expenses when cheap third party insurance is widely available from a number of insurers in Australia?

Benefits of owning third party fire and theft car insurance

Motor vehicles are not just subject to being involved in accidents; fire and theft are also realities of automobile ownership. Third party fire and theft insurance is substantially cheaper than comprehensive coverage and owning a third party fire and theft policy definitely has its benefits- if you are involved in an accident and the other driver is at fault and your car catches on fire, live in an area that is considered high risk, or have your car stolen then you are covered by this insurance plan. Depending on which company you choose, sometimes property within the vehicle is also replaced by the insurance company.

Even if you can’t afford comprehensive car insurance coverage, third party car insurance provides a suitable alternative. There is no reason to risk financial ruin when third party insurance can provide you with just the coverage you need. Contact your insurer today to find out the best policy for your vehicle and your budget today.

We all know that having car insurance is a necessity, but did you know that shopping for affordable auto insurance has never been easier than it is today? Most drivers are familiar with the sometimes quirky and foreboding TV advertisements from the major car insurance companies, encouraging you to pick up the phone or visit your nearest car insurance agent today, but what you may not know is that you can purchase motor vehicle insurance right from the comfort of your own home. Shopping for car insurance online can save you time, money, and gas, and that’s even before you purchase the insurance policy!

If you asked the average consumer, when it comes to car insurance many people don’t think that the words “cheap” and “adequate” can go hand-in-hand when referring to car insurance, but it is possible. You need only to type in “car insurance in Australia” in your computer’s browser to find a myriad of insurance companies offering budget insurance and online quotes. Why is comprehensive car insurance, and other types of car insurance cheaper online than if you purchased it in the more traditional methods? Well, there a lot of factors that contribute to the more affordable auto insurance quotes you receive online, a couple of which include the insurance companies ability to eliminate the need for customer service positions and extremely expensive television ads, both which cost insurance companies lots of money, which is in return added to your premium costs.

An even more practical reason that you would receive a better car insurance quote online is, because you would have access to more car insurance companies to comparison shop. Many times as drivers we simply request a quote and take whatever premium rate that we are offered, often because we mistakenly believe that the quote we are offered is the best one that we can receive or because we are just unwilling to do the leg work and shop around. With the help of the internet you can enter your personal information and driving record and receive online quotes from a number of car insurance companies all at once, guaranteeing that you are receiving the best coverage for your money.

Affordable car insurance is no myth, don’t be fooled into believing that you have to pay big bucks to get the coverage you need and deserve. Use the internet to shop, compare, and purchase your next auto insurance policy, you won’t regret it.

Florida Auto Insurance is Mandatory - Consider Additional Coverage Not Just the Minimum - Today, almost all states have made it mandatory to carry at least the minimum limits of liability coverage in order to protect the losses that might occur in the future due to automobile accidents. Florida has also determined their minimum limits of liability that anyone intending to own or drive a vehicle must carry.

The minimum limits have two parts: Bodily injury and property damage. The prescribed limits of protection have been set as 10/20/10 which means:
$10,000 for one person in any accident
$20,000 for two or more people in any accident

Property Damage Liability (PD)$10,000 for property damages caused to others

The above mentioned protects the victim of any automobile accident caused by the policyholder. There is no compensation for the insured's property or injury. Therefore, in order to protect one's own property, one can also purchase additional car insurance policies such as collision and comprehensive coverage.

Also, an automobile policy is bought to cover the risks associated with traffic accidents. Therefore, if someone who uses s vehicle rarely has least risk and therefore even the basic liability may be sufficient. However, someone who uses a vehicle daily and extensively may have enhanced risk and the minimum may not be sufficient for such people. Therefore, one should also consider additional coverage based on one's risk and needs. Few of the popular additional options are:

o Comprehensive
o Collision
o Uninsured/Underinsured Motorist (UM)
o Rental Reimbursement
o Medical Payments
o Towing

There are many insurers and their brokers and companies in Florida who offer auto insurance. However, an effective method to shop and compare is to visit the website of any reputed insurer/broker and seek quotes from multiple insurers. After receiving these quotes, compare them on various parameters such as cost, coverage, deductibles, discounts, etc. in order to choose the cheapest and the most suitable protection. These websites can further help one to complete the purchase only and become insured instantly.

If considering additional coverage options, completing auto insurance comparisons can be an effective way to find affordable rates. There are many companies that are able to issue Florida auto insurance and the more one has to choose and compare from the more likely they can find the right price from a reliable insurer.


By John Pirro

Renewing Car Insurance Policies - Do's and Don'ts - Having an adequate car insurance cover for your vehicle has become extremely imperative while driving on today's accident-prone, high traffic roads and dealing with uncertain conditions almost every day. Car insurance cover relieves your mind of the financial tension at least, takes your mind off the continuous worry of the expense that may occur from any unintentional damage occurred. So, one must be consciously aware of the car insurance term at any given point of time lest it expires and you are caught off guard with an unwarranted situation, only to find out that your car insurance is due for renewal.


While the mandatory renewal of car insurance every year may seem like a monotonous and rather tedious procedure but it is critical to get it done on time in an appropriate manner. Moreover, it is important to consider certain aspects in mind while renewing your car insurance policy; there are some do's and don'ts that can go a long way in helping you to have your car insurance renewal done in an informed manner. Let's have a quick at some of these points and help to smoothen out the process for you and also help in going for relatively cheap car insurance, at best price with the best services.

Do's - Get it right

1. Comparison among policies- The first and foremost thing to consider while renewing the car insurance policy is the fact that there is a wide variety of insurance covers in the market to choose from with absolutely no compulsion to continue with the same policy taken. In case you experience certain inadequacies in the interim of one year of the policy or you may wish to upgrade your policy as per the changing demands, then, you always have the option of switching to a new one. Before that, it is critical to take note of the varied policies available in the market and make a thorough comparative analysis.

2. Accurate Details in the Form- While filling up the form for car insurance renewal, it is utmost important to fill inaccurate details about your car and to the best of your knowledge so as to get a suitable policy by the company. Thus, it is advised to fill up the form in a relaxed state and on your own as you know your requirements better than any company agent.

3. Policy Record- Once you have renewed the policy, make sure to fill a copy in a file and keep it with for the record or if it's a soft copy, then save it with you on a hard drive so as to not lose it. It's important to maintain a proper record as it gives all information required at any point and leaves no room for any confusion when it comes to availing the No-Claim Bonus (NCB) or any other future claim.

4. Add on Covers- Before taking up any policy, it is vital to take note of all the add-on covers and go through them at length so as to choose wisely the ones that suit your needs instead of blindly going for everything and end up paying a huge amount unnecessarily.

5. Registration Certificate (RC)- While renewing your policy, also ensure that your RC is updated with your present address, name and other details. Also, see to it that the vehicle specifications are accurate and the details mentioned on the RC are in sync with the policy details.

Don'ts - Not to Mess Up

1. No blank columns in the form- Do ensure that you end up leaving no columns in the form blank or unanswered that may impact your policy renewal in an adverse way. Instead, one must provide all possible information, just to be sure to be taking the right help from the insurance company.

2. Not to miss timeline for renewal- Keeping in mind the expiry of the car insurance plan is critical not just from the perspective of any damage occurring in the interim when you are uncovered but also for saving up on the late renewal charges if any by the company. Moreover, it gives one time to think and then act rather than being in a hurry to insure with the first plan that comes your way.

3. No Incorrect Declarations- One must never make any incorrect declaration or give any wrong estimate to the car insurance company, intentionally, as that can end up in getting you the wrong cover. Tell them precisely what your requirements are, what the car condition and car value estimation is and your future claims will remain uninterrupted.

4. Not to forget about the transfer of name- In case of acquiring a pre-owned vehicle, make sure to have the policy transferred in your name and do not have it renewed in the previous owner's name itself by any chance.



By Amit Sethi

Auto Insurance - Uninsured and Underinsured Motorist Coverage - What is Uninsured Motorist coverage? Well, it tends to be self-explanatory to some degree. Very simply, if the at-fault driver is uninsured and causes injury and damage to you, your Uninsured Motorist coverage - known as UM - will take the place of the at-fault driver's financial responsibility and pay your claim. Again, that's the simple definition. There is much, much more to the rules, conditions and exclusions of the coverage.

Uninsured Motorist coverage affects two categories - one is Bodily Injury (UMBI) and the other is Property Damage (UMPD). Let's discuss UMBI first. Your policy limits for UMBI will be the applicable limits for you and those family members considered first party insureds per your policy definitions. The applicable limits for others in your vehicle who sustain injury in this situation would be the state's minimum required limits for BI. So, if you were in a state that had minimum limits of 15/30 for Bodily Injury but you had UMBI limits on your policy of 30/60, these higher limits would only apply to first party insureds (read your policy definitions!) and all others in your vehicle who sustained injury in an accident caused by an uninsured motorist would only have the 15/30 - regardless of the severity of their injuries. Make sense?

UMPD is for the damage to your vehicle caused by the uninsured motorist. This is a separate coverage so don't think that if you opted for the UMBI that you get both. Typically, if you have Collision coverage, you cannot have UMPD but may opt for Collision Deductible Waiver, which will pay the deductible in regard to an accident with an identifiable uninsured motorist. Same outcome. People who don't have Collision will usually take the UMPD, which may carry a stated amount as maximum that will be paid out under the coverage.

"Identifiable" brings up some important points - requirements for UMPD to be used:

1) Your vehicle must have direct contact with the uninsured vehicle

2) The owner or the operator of the uninsured vehicle must be identified, or

3) The other vehicle must be indentified by its license plate number

Now that you have some understanding of what UM is, there is also UIM - which is Underinsured Motorist coverage. This is part of your UM and only applies to the bodily injury part of the coverage. If you are severely injured and the at-fault party only has, say 15/30 Bodily Injury coverage (for which you are only entitled to $15,000), and your UMBI coverage is 50/100, there is an additional $35,000 available to you to satisfy your claim (the underlying $15,000 is subtracted).

UM Coverage is simple on the one hand but complicated in that there are many definitions, conditions, and exclusions that apply. The coverage is designed to prevent the non-fault parties from financial loss when hit by an uninsured party but has safeguards to prevent abuse.

Finley Keller has spent nearly 30 years in the insurance industry, beginning as a licensed agent with a CLU then moving into claims. Auto, homeowner, worker's comp and other liability-only type policy claims. Casualty and material damage. Her last ten years were spent in SIU (Special Investigative Unit), working with fraud detection. The last four years she was manager of SIU, responsible for working fraud cases and the training of employees in compliance with state regulations as related to fraud. She is a retired member of NCFIA, Northern California Fraud Investigators Association. She has a Senior Claims Law Associate (SCLA) designation through the American Educational Institute, Inc. She writes about insurance in an effort to educate and assist people in understanding the basics and key principles of insurance. Please visit The Insurance Detangle.